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Category: Business

  • MIL-OSI Global: Human rights advocate Alexander Lapshin: No place to go, but still fighting for global freedom

    Source: The Conversation – Canada – By Frederick John Packer, Associate Professor of Law and Director of the Human Rights Research and Education Centre, L’Université d’Ottawa/University of Ottawa

    Global freedom has been in decline for nearly two decades, according to Freedom House, an American non-profit organization devoted to supporting democracy around the world.

    That means the role of high-profile freedom activists, including activists in exile — people who are displaced from their countries of origin due to their activism but continue to affect change through various means — has become ever more crucial.

    A recent incident involving Alexander Lapshin, a Soviet-born Israeli travel journalist turned human rights advocate, at Armenia’s Yerevan airport highlights the ongoing persecution faced by activists even in seemingly secure environments.

    On Sept. 21, during Armenia’s Independence Day celebrations, Lapshin said he was detained at the request of Belarusian authorities, accused of insulting the honour and dignity of Belarusian President Aleksandr Lukashenko by highlighting the authoritarian nature of his regime in social media posts.

    Though not formally expelled from any one country, Lapshin’s circumstances have effectively left him with no safe or stable place to settle. He says legal and political pressures in both Ukraine and Israel prevent him from returning.

    Armenia ultimately refused to arrest him, but Lapshin and his family were forced to endure four hours of distressing uncertainty at the Yerevan police station before his release was formally registered by Armenia’s Prosecutor General’s Office.

    This provocation underscored the persistent threats activists face even in countries offering relative safety.

    Extradited to Azerbaijan

    Just weeks before his arrest in Yerevan, we met with Lapshin in Ottawa to learn about his odyssey, and by extension, the suffering of his family resulting from his work as a travelling journalist.

    It’s not the first time Lapshin had been targeted by authoritarians. In 2016, while in Minsk, the capital of Belarus, Lapshin was detained by the authorities at the request of the Azerbaijani government. He was subsequently extradited to Azerbaijan on charges related to his travel in 2012 to the disputed region of Nagorno-Karabakh/Artsakh — an area claimed by both Armenia and Azerbaijan.

    The Azerbaijani government accused Lapshin of violating its laws by entering the enclave without permission and promoting its independence. However, at that point Lapshin had never been involved in politics nor called for the region’s independence. The Azerbaijani court dropped this charge, though convicted him of taking an unauthorized journalistic trip.

    The story of Lapshin’s arrest and extradition drew widespread condemnation from human rights organizations and various governments, who viewed it as a blatant violation of his rights to freedom of movement and expression.

    Lapshin was nevertheless found guilty and sentenced to three years in prison. However, following significant international pressure and diplomatic negotiations, he was pardoned and released in September 2017.

    Lapshin’s Azerbaijani ordeal

    In his subsequent testimony to the Centre for Truth and Justice, a U.S.-based non-profit organization, Lapshin detailed the severe abuse he endured during his imprisonment in Azerbaijan.

    Upon arrival at Kurdakhani prison — known for holding political prisoners — Lapshin was subjected to humiliating strip searches and invasive medical checks. For seven months, he was confined to a small, windowless cell, kept under constant artificial light and allowed only one hour of exercise in a similarly confined yard. His diet was minimal and of poor quality, leading to significant physical and psychological distress.

    Lapshin testifies about how he was treated in Azerbaijan. (The Centre for Truth and Justice YouTube channel)

    The most harrowing part of his imprisonment came on Sept. 10, 2017, when four masked men brutally assaulted him in his cell. Lapshin described the attack in detail:

    “I felt three of them holding my legs and chest while one strangled me. They punched my ribs, my head and my genitals. I lost consciousness within seconds.”

    He sustained severe injuries, including broken ribs, a broken wrist and multiple broken teeth. Azerbaijani authorities maintained that he had attempted suicide.

    Lapshin’s further testimony about how he was treated in Azerbaijan. (The Centre for Truth and Justice YouTube channel)

    The European Court of Human Rights eventually examined his complaints and found a violation of his “right to life.” The United Nations Human Rights Committee found multiple violations of his rights (including freedom from torture) under the International Covenant on Civil and Political Rights.

    According to Lapshin, Azerbaijan released him not because of the European Court’s decision, but due to his near death following an attempted murder in custody. He believes the president of Azerbaijan decided to release him without formalities to avoid international tension if he’d died in prison.

    Broader implications

    Lapshin’s recent detention in Armenia is part of a continued pattern of harassment against him as he’s morphed from a travel blogger to a human rights advocate.

    Despite the ordeal, Lapshin sees these provocations as an opportunity to create greater public awareness. The media coverage generated from such incidents often works to his advantage, drawing more attention to the plight of political prisoners and the excesses of authoritarian regimes.

    Lapshin sees his ordeals as helping to raise public awareness about authoritarians.
    (WikiMedia), CC BY

    Lapshin’s collaboration with Jivan Avetisyan, a prominent film director focusing on human rights issues, exemplifies his strategic approach to advocacy — turning personal trauma into powerful narratives that reach a global audience.

    Such collaborations contribute significantly to keeping human rights abuses in the spotlight.

    Activists like Lapshin are crucial figures in the global struggle against authoritarianism. Despite enduring harsh persecution, they persist in their advocacy efforts from the relative safety of democracies, and work to raise awareness among policymakers and the public.

    Lapshin’s recent trip to Ottawa is one example of this. He met with Global Affairs Canada officials and presented them with a sanctions list targeting Azerbaijani officials he alleges are responsible for war crimes and abuses, including those involved in his prison mistreatment.

    Impact and challenges

    Activists like Lapshin employ diverse strategies to advance their causes, such as social media engagement and public mobilization, as well as partnerships with global human rights organizations.

    These efforts often result in positive changes, including the release of detained activists and the imposition of sanctions on oppressive governments. Lapshin’s resilience, along with that of notable exiled activists like Chinese-born Chen Guangcheng and Belarus’ Sviatlana Tsikhanouskaya, demonstrates the power and influence that individuals can wield against repressive regimes from afar.



    Read more:
    Fighting for a future: The Belarusian regiment in Ukraine is staking its claim on democracy

    Activists, in particular those in exile, face numerous challenges, including transnational repression and a lack of resources. Authoritarian regimes employ measures like surveillance, intimidation, physical assaults and even murder to target activists beyond their borders. These activists must also navigate legal, financial and cultural barriers in foreign countries when they seek asylum, find work and try to integrate into new societies, all while continuing their advocacy.

    Lapshin’s experiences illustrate these challenges. The ongoing threats and harassment against him continue even today. Nonetheless, his dedication to human rights advocacy remains unwavering.

    I am a member of various professional / academic associations and some human rights NGOs including (pro bono) the Canada Committee of Human Rights Watch. None of these would be affected by this article nor would I gain any benefit as a result.

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

    – ref. Human rights advocate Alexander Lapshin: No place to go, but still fighting for global freedom – https://theconversation.com/human-rights-advocate-alexander-lapshin-no-place-to-go-but-still-fighting-for-global-freedom-241550

    MIL OSI – Global Reports –

  • MIL-OSI New Zealand: Business – The Sustainable Business Council celebrates 25 years of ambition and progress

    Source: Sustainable Business Council

    25 years ago, a group of business leaders with bold ambitions got together and put a stake in the ground on sustainability.
    The Sustainable Business Council (SBC) was first conceived in 1999 as a coalition of leading businesses with a mandate that reflected the era and a shared commitment to sustainable development.
    Current SBC Chair, Claire Walker, commented on the value of keeping an eye on the long game.
    “Reaching 25 years is something to celebrate. Over that time SBC has provided a place for business to learn, to forge powerful partnerships and to be challenged and stretch – the role it has played has adapted to different environments,” said Walker.
    Then known as the New Zealand Business Council for Sustainable Development (NZBCSD), the organisation was (and remains) the only NZ-based Global Network Partner of the World Business Council for Sustainable Development, headquartered in Geneva.
    The next significant era involved BusinessNZ, the peak body for New Zealand business, which in 2009 established a Sustainability Forum.
    SBC Executive Director Mike Burrell noted, “The idea was to provide a platform for companies wanting to define and lead sustainable business matters rather than simply respond to government-led initiatives.”
    Two years later, NZBCSD merged with the Sustainability Forum and became SBC.
    “Many current SBC members have been part of the membership since very early days – and the fact that we have stood the test of time is a credit to them,” said Burrell. “This includes Deloitte, Fonterra, Meridian, The Warehouse Group, Toyota NZ, and more.
    “Our focus now is on leadership, action on climate, nature, and thriving people. We support the fundamentals, advocate for change, and help broker large scale projects led by SBC member businesses who include some of the biggest organisations in New Zealand.”
    Significant milestones include the establishment of the Climate Leaders Coalition (CLC) – a CEO-led community of around 80 organisations leading the response to climate change. The combined emissions reduction achieved by current CLC signatories between signing up to the Coalition and November 2023 is 3.6 million tCO2e, a cumulative reduction of 29%.
    Another key achievement is the establishment of AgriZeroNZ, which began as an SBC-led collaboration and has gone on to become a world-first public-private partnership helping farmers reduce emissions, while maintaining profitability and productivity.
    “SBC member businesses have made big strides over the years, in terms of how they operate,” said Burrell.
    “The conversation has shifted a lot – from whether climate change is real, to the need to measure and report on an organisation’s operations, to levers for supporting sustainable decision making more broadly.”
    Sir Stephen Tindall, founder of The Warehouse Group and founding member of SBC also noted the shift since its formation.
    “When we set up the Sustainable Business Council we had no idea how much climate change would have advanced,” said Tindall.
    “Business needs to play its part along with bipartisan government to attempt to slow down global warming. We can only do this by working collaboratively with everybody to create a real ‘nationwide ambition’.”
    SBC will formally mark the milestone of 25 years with an Anniversary event at Parliament hosted by Minister of Climate Change, Simon Watts, on 22 October 2024.
    “Not only can businesses lead – it’s in our interests, and will mean New Zealand continues to achieve its potential over the next 25 years and beyond,” said Burrell.

    MIL OSI New Zealand News –

  • MIL-Evening Report: King Charles arrives in Samoa for ‘resilient environment’ CHOGM

    By Susana Suisuiki, RNZ Pacific journalist in Apia

    King Charles III and his wife Queen Camilla have landed in Apia, Samoa.

    The monarch has been greeted by a guard of honour at the airport before being escorted to his accommodation in Siumu.

    Local villagers have lined the roadsides with lanterns to welcome His Royal Highness.

    King Charles will deliver an address to the Commonwealth Heads of Government Meeting (CHOGM) on Friday.

    The royal office said as well as attending CHOGM, the King’s programme in Samoa would be supportive of one of the meeting’s key themes, “a resilient environment”, and the meeting’s focus on oceans.

    The King and Queen were to be formally welcomed by an ‘Ava Fa’atupu ceremony before meeting people at an engagement to highlight aspects of Samoan traditions and culture.

    Charles will also attend the CHOGM Business Forum to hear about progress on sustainable urbanisation and investment in solutions to tackle climate change.

    He will visit a mangrove forest, a National Park, and Samoa’s Botanical Garden, where he will plant a tree marking the opening of a new area within the site, which will be called ‘The King’s Garden’.

    Queen Camilla’s engagements include visiting an aoga faifeau to see first-hand how pupils are taught to read and write, and will visiting the Samoa Victim Support Group, an organisation which assists survivors of domestic violence and sexual abuse.

    Since 1969, King Charles III has visited 44 of 53 Commonwealth countries, many of them on several occasions.

    His visits to the Pacific — before he was King — included representing his mother, Queen Elizabeth II, at Fiji’s independence celebrations in 1970; and visiting Papua New Guinea, Australia and New Zealand as part of the Queen’s Diamond Jubilee celebrations in 2012.

    Queen Elizabeth II visited the Pacific multiple times during her reign.

    This article is republished under a community partnership agreement with RNZ.

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI Security: Defense News: Secretary Del Toro As-Written Remarks at the Georgia Tech Research Institute

    Source: United States Navy

    Introduction/Thank You

    Good afternoon, everyone!

    It is wonderful to be with you at Georgia Tech Research Institute, the future of engineering, science, and technology.

    President Cabrera, thank you for your leadership of the students here at Georgia Tech, the future scientists, engineers, innovators, and problem-solvers of our country.

    Dr. Hudgens, thank you for your leadership and vision for the Georgia Tech Research Institute, and all that you are doing to advance our national security interests.

    I thank the future Navy and Marine Corps Officers from the NROTC consortium here with us today.

    Thank you for answering the call to service—for choosing a path both challenging and difficult. I look forward to you joining our Fleet and Force.

    To all of our Georgia Tech faculty and students, distinguished visitors, and guests—welcome, and thank you for your time today.

    World Today

    As you have read in the news, we face challenges in every corner of the world—from the Indo-Pacific, to Europe, to the Red Sea.

    In Europe, we are approaching the third anniversary of Russia’s full-scale and illegal invasion of Ukraine.

    Ukraine is fighting not only for their own liberty and freedom—they are fighting to protect democracy in Europe and indeed around the world.

    We proudly stand beside them in support for their just and noble cause.

    For the first time since World War II, we face a comprehensive maritime power—our pacing challenge—in the Indo-Pacific.

    The People’s Republic of China continues to exert its excessive maritime claims through their navy, coast guard, and maritime militia.

    In the Red Sea and Gulf of Aden, we have been working tirelessly alongside our NATO allies and Middle Eastern partners to protect innocent civilian mariners and commercial shipping from Iranian-aligned Houthi attacks.

    Following the October 7th attacks in Israel one year ago, our Navy and Marine Corps were swiftly deployed to the region, forming an integrated force capable of responding to any threat.

    Carrier Air Wing Three, our “Battle Axe,” played a pivotal role in protecting civilian mariners, deploying over sixty air-to-air missiles and over 420 air-to-surface weapons.

    We mourn the loss of two trailblazing, combat-decorated naval aviators from Carrier Air Wing Three who passed away during a training event last week: Lieutenant Commander Lyndsay “Miley” Evans and Lieutenant Serena “Dug” Wileman.

    Their sacrifice reminds us that what we ask of our Sailors and Marines is anything but routine.

    And our hearts go out to the families and friends of these brave and selfless warfighters.

    The Bataan Amphibious Ready Group, with the embarked 26th Marine Expeditionary Unit, made significant contributions in the region by deterring hostile Houthi attacks and preventing the conflict from escalating throughout the region.

    Our warships—including the Carney, Mason, Gravely, Laboon, Eisenhower, and Thomas Hudner—have demonstrated exceptional performance under fire, successfully deterring and defeating missile and drone attacks targeting innocent maritime shipping.

    Two of our highly capable destroyers, the USS Cole (DDG 67)—a warship which carries a proud legacy of standing tall to acts of terrorism—and the USS Bulkeley (DDG 84)—which will always have a special place in my naval carer as her first Commanding Officer—aided our Israeli allies in shooting down Iranian ballistic missiles. 

    I am incredibly proud of the professionalism, dedication, and resilience shown by our Cole and Bulkeley Sailors.

    These brave young men and women illustrate the consistent excellence and effectiveness expected of our United States Navy.

    Our Navy-Marine Corps Team remains at the center of global and national security—maintaining freedom of the seas, international security, and global stability.

    DON Innovation Initiatives

    To win the fight of the future, we must embrace and implement emerging technologies.

    We stand on the shoulders of giants in innovation.

    And delivering technology which changes the very nature of warfighting is in our DNA.

    A little over a year ago, I stood in the courtyard of the Pentagon to celebrate the 100-year anniversary of the Naval Research Lab—the place that invented radar, GPS, and the first satellite tracking system—and a place I worked at as a young lieutenant commander.

    At that time, I challenged the research, engineering, and technology developers of today to take their place in the company of those innovation giants.

    I challenged my team to innovate at the speed of relevance to deliver concepts of operations and capabilities which bolster deterrence and expand our warfighting advantage.

    I challenged my Chief of Naval Research to align the Office of Naval Research’s investment in science and technology research—including the research conducted here at Georgia Tech—with each effort aimed at addressing issues we face as a maritime nation.

    Within three months of my challenge to the Chief of Naval Research, he delivered.

    Our new Naval Science and Technology Strategy now drives our Navy and Marine Corps’ innovation investments in science and technology research during this decisive period.

    This strategy is a global call to service for scientists, engineers, inventors, and innovators from academia, industry, and government to work with us in solving naval problems to ensure our freedom and way of life.

    And the Georgia Tech Research Institute has answered this call.

    During this past fiscal year, ONR completed 22 grants here at GTRI worth $23.6 million, and Georgia Tech currently has 72 active contracts and grants with the Navy worth $216 million.

    These ONR grants support research and development of technology in cyber, AI and autonomy, materials and electronics, as well as ocean, atmosphere, and space—focus areas in our Naval S&T Strategy.

    Service to our national security is indeed the engine of GTRI.

    Another critical investment we have made as a result of our strategic change is the establishment of the Naval Innovation Center at the Naval Postgraduate School.

    The NIC will enhance and accelerate the innovation process at NPS by driving “ideas to impact,” bringing research concepts out of the lab and into the field faster by empowering students and partners across the entire Naval Research and Development Establishment to work with the Naval innovation ecosystem and industry—in a whole-of-Navy approach—to speed the delivery of warfighting advantages to our Naval forces.

    Furthermore, we are supporting the construction of a purposefully-designed facility to house the NIC at the Naval Postgraduate School, providing a space for collaboration, defense-focused experimentation, and demonstration of operational use cases to ensure the right technology is evolving.

    S&T Board One Year Update

    Last fall, I also announced the establishment of the Department of the Navy’s Science and Technology Board, with the intent that the board provide independent advice and counsel to the Department on matters and policies relating to scientific, technical, manufacturing, acquisition, logistics, medicine, and business management functions.

    Our Science and Technology Board just completed its inaugural year.

    Under the expert leadership of former Secretary of the Navy Richard Danzig, this impressive group of thought leaders with expertise in government, industry, and academia has completed an ambitious research agenda to identify new technologies for rapid adoption.

    Since I signed out the Board’s initial tasking in February, they have achieved the impressive feat of undertaking and concluding six studies, delivering near term, practical recommendations, that the Department of the Navy can quickly implement.

    I have accepted recommendation reports from the Board and issued implementation guidance related to the path forward on unmanned systems, improving sailor physical and mental health, mission assurance of digital infrastructure, and capitalizing on opportunities for additive manufacturing.

    In fact, Georgia Tech’s own Chief Manufacturing Officer and Manufacturing Institute Executive Director Dr. Tom Kurfess, lent his breadth and depth of expertise in leading a study on additive manufacturing which I accepted last month.

    It is a testament to the Board’s energy and dedication, that it is already embarking on additional projects to keep our Navy at the leading edge of technology and innovation.

    Innovation Closer to the Fight

    Similar to the focus of our S&T Board of Advisors, who are looking at today’s problems and ways that technology can provide new ways to tackle our operational challenges, I chartered a Disruptive Capabilities Office last January to look at already-available or emerging technology to address the Fleet’s capability gaps. 

    And they have delivered.

    DCO identified meaty organizational, doctrinal, and technological advancements that the Navy has implemented, within six months, to close an emergent warfighting gap in Counter-UAS base defense for the CENTCOM area of responsibility.

    DCO is also leading an effort to combine innovative commercial space-enabled capabilities in coordination with the National Reconnaissance Office, the National Geospatial-Intelligence Agency, U.S. Coast Guard, and other governmental agencies to enhance Maritime Domain Awareness for the Department of the Navy along with our allies and partners.

    Replicator and Capability-Based Delivery

    My call to innovation has also put more “ready players on the field” as we look to grow force structure in the near term.

    In the last twelve months, I have fielded varying sizes of unmanned surface vessels into the hands of our operators for use in experimentation, CONOP development, and for operation.

    We are expanding our systems to include not only homogeneous but also heterogeneous collaborative autonomy.

    I am extremely proud of my team’s leadership in this domain, to include our leadership in identifying and quickly procuring the capabilities that support Deputy Secretary of Defense Hicks’s “Replicator” initiative.

    It is no accident that four of the five selected “Replicator” systems came out of the Department of the Navy’s innovation ecosystem.

    And over the last year, our Department has expended more missiles than we have since the Second World War.

    My Program Executive Office for Integrated Warfare Systems has been at the forefront of this fight.

    Last year, I challenged that office to operate and field its systems as a “portfolio of capabilities”—and they have delivered.

    The IWS RCO has been working hand-in-hand with our operators in the fight in the Red Sea to deliver innovations, in near-real time, as we continue to innovate—at speed.

    Call to Action/Closing

    I am extremely proud of everything our department has accomplished over the last three years, and I am excited for our Navy-Marine Corps team as we chart a course for the future—a future that will require us to respond and adapt to whatever geopolitical challenges our Nation may face.

    To those Georgia Tech, Spellman, and Morehouse College students who are not affiliated with the NROTC program—if anything that I said today interests you, I encourage you to speak with me or a member of my staff to learn more about how you can join our team in the Navy or Marine Corps.

    Service in the Navy and Marine Corps is more than just a job—it represents a chance to serve and become something much bigger than yourself.

    And the Department of the Navy also provides numerous opportunities for public service beyond serving in uniform—we need engineers, scientists, and analysts in our Department.

    As our Department continues to re-imagine and refocus our innovation efforts, I encourage all of you—our nation’s scientists, engineers, researchers, and inventors—to join us.

    No matter how you serve, you’ll be part of a team working together toward a shared goal.

    We are indeed in an innovation race—and it is one we must win.

    Innovation must permeate every aspect of our Department’s approach to deliver technologies and capabilities at a speed and scale necessary for our Navy and Marine Corps to confront the challenges of today and the future.

    Thank you all for your commitment to the Department of the Navy, the maritime services, and indeed our Nation.

    May God continue to bless our Sailors, Marines, Civilians, and their families stationed around the globe with fair winds and following seas.

    MIL Security OSI –

  • MIL-OSI Australia: Albanese Government to provide scam victims clear pathway for redress

    Source: Australian Treasurer

    The Albanese Government is making Australia the hardest target for scammers – sending a clear message that this harmful practice won’t be tolerated here, and making sure victims know we have their backs.

    Today, the government is announcing further steps by providing $14.7 million over two years to the Australian Financial Complaints Authority (AFCA) to establish a clear single pathway for scam victims to seek compensation.

    The Government has already announced its intention to nominate AFCA to operate the external dispute resolution scheme for the first three designated sectors under the Scams Prevention Framework – banks, telecommunication service providers and digital platforms providing social media, paid search advertising and direct messaging.

    Scams victims will be able to seek compensation through a single door if they have been unable to reach a satisfactory outcome through internal dispute resolution, even if the complaint is against multiple regulated industries.

    This means if a person is the target of a scam on social media and loses money from their bank account, both the bank and the social media platform could be liable if they failed to put adequate protections in place.

    Currently social media companies have no internal or external dispute resolution mechanism and redress is close to impossible.

    This is a major uplift in consumer protections for scam activity.

    Today’s announcement will support the significant expansion of AFCA’s remit involved with, adding scams complaints against telcos and certain digital platforms.

    AFCA receives more than 100,000 complaints about financial firms each year. In 2023–24, approximately 11,000 of these were scam‑related complaints.

    AFCA will continue to operate its existing EDR jurisdiction for non‑scam complaints in relation to financial services, as will the Telecommunications Industry Ombudsman in relation to non‑scam complaints about telecommunications service providers.

    This funding announcement builds on the government’s landmark Scams Prevention Framework legislation. The Framework creates core obligations designed to prevent, detect, disrupt, and respond to manipulation tactics used by scammers to target Australians.

    Initially banks, telcos, and some digital platforms will be subject to mandatory sector‑specific codes and face significant penalties for non‑compliance.

    Consultation on the exposure draft of the Framework legislation concluded on 4 October 2024. The Government is considering the feedback provided during consultation to inform development of a final bill for introduction to Parliament this year.

    Quotes attributable to Assistant Treasurer and Minister for Financial Services, Stephen Jones

    “Our scams crackdown will cut off the avenues scammers use to target Australians by setting a high bar for what businesses must do to prevent them.

    “Scam victims will have a clear pathway for redress.

    “We want victims of scams to know the Government has their backs, and we want businesses to understand that they have a responsibility to protect Australians from these often devastating scammers.”

    MIL OSI News –

  • MIL-OSI Australia: Interview with Matt Shirvington, Sunrise, Channel 7

    Source: Australian Treasurer

    MATT SHIRVINGTON:

    Welcome back. Well, the Department of Finance has announced over $14 million worth of funding in an effort to make Australia the hardest target for scammers. The new proposals come as the government aims to crack down on fraud, ensuring victims are able to seek compensation through a new, streamlined service. For more Financial Services Minister Stephen Jones joins us now. Great to have you with us. So, how will this new funding benefit victims straight off?

    STEPHEN JONES:

    The situation at the moment is the law is really grey on what the obligations on banks, on telecommunications companies and social media platforms are to keep their customers safe. I’m introducing new laws into parliament in the next few weeks which will raise the bar significant new protections for consumers, but also ensuring they have a single front door to go through when something goes wrong and they’re unable to resolve their complaint. That front door will be the Australian Financial Complaints Authority. Significant uplift in funding, $14.7 million so they can deal with a caseload of complaints that they’re going to have to deal with. So, if I could put it simply, new obligations, new – new avenues for redress, Australian consumers better off.

    SHIRVINGTON:

    The main thing, I think, for most people when they get targeted and scammed is the speed of some sort of resolution. Is it going to speed that up?

    JONES:

    Absolutely. There’ll be stronger obligations on banks, dispute resolution processes and an independent tribunal if things can’t be resolved. And I’ll ensure that there’s a fast track process in there as well, to ensure that people can raise their complaints. A lot of it will be, I want my money back, but a lot of it will also be, can you pull down that fake webpage?

    SHIRVINGTON:

    Yes.

    JONES:

    That is impersonating me. That is impersonating a bank or a telecommunications company. Pull down that material because people are being lured into losing money through that. So, there’s a range of complaints, new avenues to be able to deal with that.

    SHIRVINGTON:

    That’s fantastic. Thank you so much for joining us. The other thing that piques my interest too is the SMS sender ID registry that you’re implementing, which will mean it won’t pop up on those SMS threads from the banks as well. Appreciate your time this morning.

    JONES:

    Good to be with you.

    MIL OSI News –

  • MIL-OSI Video: Ahead of the Threat Podcast: Episode One

    Source: Federal Bureau of Investigation (FBI) (video statements)

    In December 2021, UKG Kronos was hit with a ransomware attack that impacted thousands of business customers.

    On this episode of Ahead of the Threat, co-hosts Bryan Vorndran, assistant director of the FBI’s Cyber Division, and Jamil Farshchi, a strategic engagement advisor for the FBI, speak to Aaron Ain, former CEO and current Executive Chair at UKG, who gives a firsthand account of what it’s like to lead a multinational technology company during major cyber incident. Learn how Aaron handled the extreme pressure of the situation, prioritized transparency to rebuild customer trust, and made enduring structural reforms to supply-chain security and cybersecurity at the board level.

    At the start of the episode, Bryan and Jamil discuss trending topics like Iran’s brazen effort to interfere in the 2024 U.S. presidential election, the Salt Typhoon hack of U.S. telecoms, and recent supply chain compromises.
    —————————————————
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    https://www.youtube.com/watch?v=xOsOCAaH2Ms

    MIL OSI Video –

  • MIL-OSI USA: ICYMI: US Navy: Projecting Strength and Building the Fleet of Tomorrow

    US Senate News:

    Source: United States Senator for South Carolina Lindsey Graham

    US Navy: Projecting Strength and Building the Fleet of Tomorrow

    By Senator Lindsey Graham and Morgan Ortagus

    Fox News

    October 23, 2024

    https://www.foxnews.com/opinion/us-navy-projecting-strength-and-building-fleet-tomorrow

    It’s time for all Americans to grasp a hard truth: in a world that may be on the brink of World War III, our military budgets are inconsistent with the threats we face. This is especially the case with the budget of the Department of the Navy.  

    The bad news: the current Navy budget will not make a stronger military or a larger U.S. fleet a reality. The good news: through American innovation and more agile products, we can build a bigger and more efficient Navy.  

    However, President Biden’s proposed FY2025 budget of $257.6 billion for the Department of the Navy is well below inflation and does not provide for a more lethal Navy. 

    As both President Biden and President Trump certified, the most direct challenge facing the U.S. Navy today is from the People’s Republic of China. Therefore, strong investments must be made now to ensure the Navy, and most importantly the United States, can meet this threat head-on.

    It comes as no shock to the reader that America and its allies and partners are facing an unprecedented deluge of maritime threats by the People’s Republic of China. The Chinese Navy alone has provoked a U.S. destroyer in the Taiwan Strait with dangerous maneuvers, harassed Taiwan with aggressive military exercises, entered America’s Exclusive Economic Zone in the Bering Sea, developed a jam-resistant submarine torpedo, and injured several Filipino sailors at and around Second Thomas Shoal.  

    These developments incrementally set the conditions for a direct conflict on the open seas. Meanwhile, Washington has been lulled into complacency by decades of maritime supremacy. Most concerning, the United States lacks the political resolve to shed the Navy’s Soviet-era mentality and adapt to the new era of great power competition. 

    To meet the moment’s maritime threats, America must choose between tough and tougher: make significant investments in our fleet or face the costs of inaction.

    Section One: Expanding U.S. Shipbuilding Capacity and Cooperation with Allies

    Our shipbuilding industrial base is grappling with significant delays and challenges, affecting major programs like the Columbia-class submarines, Constellation-class frigates, and Ford-class carriers. These delays are not only impacting the procurement of new ships, they are also impacting the ability to maintain the current fleet. 

    A great first step to combating the maritime threats our nation faces is to expand the physical footprint of the U.S. shipbuilding industry.  

    The U.S. shipbuilding industry is first in its class and the men and women that come to work every day in our nation’s shipyards build the world’s most lethal and capable warships. In states like South Carolina, there are a wealth of maritime industry suppliers and shipbuilders diligently producing the necessary components to construct our nation’s ships.  

    But that alone is not enough. China’s Bohai Shipyard boasts an annual capacity exceeding the total number of ships our Navy has launched since 2014.  

    In addition, China is rapidly expanding its existing shipyards and according to experts “has been investing so much in shipbuilding over the past 18 years that it can now build more ships in a month than the United States can in a year.” 

    By comparison, America only has four public shipyards and these yards focus on maintenance of submarines and aircraft carriers and not the construction of new vessels.

    The Department of the Navy should look at states like South Carolina to build new shipyards to maximize the U.S. shipbuilding capacity and our maritime industry. 

    In addition, the Navy must expand maintenance capacity here in the states as well as in the Pacific. The U.S. Navy has already decided to augment its capacity by placing a submarine maintenance facility in Guam. This should be replicated for other vessels elsewhere. 

    It is clear that the need for more shipbuilding capacity is great and immediate. Investing here at home will certainly help address the need. At the same time, our nation should also not discount opportunities to work with others when the opportunity presents itself.  

    The U.S. Navy cannot afford to leave any stone unturned when thinking of innovative ways to grow the fleet as quickly as possible.

    Section Two: Fleet Requirements and Capabilities

    A fundamental step toward a 21st-century U.S. Navy is improving both the size and modernity of our existing fleet. The fleet currently consists of carriers, surface combatants, submarines, amphibious warships, combat logistics ships, fleet support vessels and mine warfare assets.  

    Yet this fleet is hardly agile or scalable enough to meet a Chinese maritime threat that includes drones, hypersonic missiles and other high-tech tools of warcraft.

    Persistent gaps also remain in amphibious warfare and in contested logistics. Amphibious combat vehicles, landing vessels, and light warships are all needed in higher quantities for rapid and effective landings. 

    Unmanned and underwater systems are especially relevant to modern naval operations. Often at a fraction of the cost of manned vessels, these vessels – both large and small – perform intelligence, surveillance, reconnaissance missions, logistics and strike operations.  

    They also relieve pressure on our high-demand, low-density assets while augmenting the fleet. The proof is in their success in Ukraine, where naval drones have successfully countered Russia’s Black Sea Fleet, forcing them into safe harbors and destroying dozens of Russian vessels.

    In addition to their combat roles, unmanned systems are revolutionizing naval logistics. Unmanned logistics platforms can autonomously deliver supplies, ammunition, and fuel to forward-deployed forces, significantly extending the operational reach of our fleet.  

    These systems reduce the need for manned resupply missions, which are often vulnerable to enemy attacks, thereby enhancing the safety and efficiency of our operations. By integrating unmanned logistics into our naval strategy, we can maintain sustained operations in contested environments, ensuring our forces remain equipped and ready for extended engagements.

    A possible way to advance the construction of these unmanned vessels is through an international partnership. Such a partnership could be modeled after the trilateral security partnership between the United States, the United Kingdom and Australia (AUKUS) for submarine production in Australia. An AUKUS-like agreement for unmanned systems could create a new pathway for faster construction of these unmanned platforms and increase the integration between partners.

    China’s naval power is growing at an alarming rate, with close to 400 ships currently in service and projections of 435 by 2030. The impact of this expansion is worsened by our diminishing technology gap, as China advances its naval technology while the U.S. Navy struggles to build ships.  

    Meanwhile, the U.S. Navy’s latest shipbuilding assessment calls for 381 battle force ships (carriers, destroyers, amphibious ships, submarines, etc.) and 134 unmanned vehicles, totaling 515 vessels.  

    While it is great to have a roadmap, the U.S. Navy’s own shipbuilding plan projects that we would not reach 381 battle force ships until 2043 under the best scenario. This delay poses an unacceptable risk to our national security and could force our sailors into a fight they are underequipped to win.

    To avoid that scenario and reduce the exposure of manned ships to enemy attacks, we must expedite shipbuilding with a focus on unmanned surface and subsurface systems that are affordable and quick to produce. America does not have to win a shipbuilding foot race, but we must strategically invest in both the capabilities and capacities to counter China’s growing maritime capabilities and protect our interests.

    Section Three: Funding the Department of the Navy

    The U.S. military budget is woefully underfunded for the threats our nation faces today. The U.S. is on target to spend only 3.1% of total GDP on defense in Fiscal Year 2025 and that percentage is projected to fall to a paltry 2.4% in 2034 under the Biden-Harris budget plan.  

    Budgetary “business as usual” will only widen the gap between U.S. and Chinese naval capabilities. With China’s defense budget growing in both size and sophistication, it is imperative the United States make greater, and smarter, investments of our own. 

    Increasing funding for the Navy’s ship procurement, known as the Shipbuilding and Conversion account, alone will not be enough.  In order to address the shipbuilding problem, Congress should consider a comprehensive approach that includes strong and consistent funding across procurement, operations and maintenance, research and development, personnel and military construction accounts.  

    In order to do this, Congress will need to think outside the box as the current budgetary restraints limit the needed investments. Congress should form a “Fleet Investment Fund” – codifying the Navy’s entire budget growth at least 5% above inflation and more than the department’s topline request – covering all aspects of naval development and readiness. 

    Most importantly, this account should not be subject to any caps or restrictions within the president’s budget request to Congress each fiscal year. The formation of this account must be seen as a national imperative.

    Conclusion

    There is no doubt that the costs of these investments are great and will require tradeoffs and significant political capital, but the costs of inaction will be far greater. History demonstrates that adversaries are emboldened by America’s hesitation and deterred by its resolve. History proves that the U.S. Navy can adapt to evolving defense needs. 

    Since 1945, America has served as the global guarantor of open seas and freedom of navigation in contested waterways and critical trade routes. President Theodore Roosevelt stated before Congress in 1902 that “a good Navy is not a provocation to war. It is the surest guaranty of peace.”

    Morgan Ortagus is the founder of Polaris National Security and formerly served as the spokesperson for the U.S. State Department under President Trump. 

    Republican Lindsey Graham represents South Carolina in the United States Senate. 

    MIL OSI USA News –

  • MIL-OSI USA: Disaster Recovery Center Opens in Rutherford County

    Source: US Federal Emergency Management Agency 2

    strong>RALEIGH, N.C. –  A Disaster Recovery Center (DRC) will open Thursday, Oct. 24 in Lake Lure (Rutherford County) to assist North Carolina survivors who experienced loss from Tropical Storm Helene.  
    The Rutherford County DRC is located at:  
    Mountains Branch Library (Rutherford County Library System)
    150 Bills Creek Rd.
    Lake Lure, N.C. 28746
    Open: 8 a.m. – 7 p.m., Monday through Sunday
    A DRC is a one-stop shop where survivors can meet face-to-face with FEMA representatives, apply for FEMA assistance, receive referrals to local assistance in their area, apply with the U.S. Small Business Administration (SBA) for low-interest disaster loans and much more.  
    FEMA financial assistance may include money for basic home repairs, personal property losses or other uninsured, disaster-related needs such as childcare, transportation, medical needs, funeral or dental expenses. 
    Centers are already open in Asheville, Bakersville, Boone, Brevard, Hendersonville, Lenoir, Marion, Sylva, Waynesville, Jefferson, Newland, Old Fort, Sparta, Morganton and Charlotte. To find those center locations, go to fema.gov/drc or text “DRC” and a zip code to 43362. Additional recovery centers will be opening soon. All centers are accessible to people with disabilities or access and functional needs and are equipped with assistive technology.  
    Homeowners and renters in 39 North Carolina counties and tribal members of the Eastern Band of Cherokee Indians can visit any open center, including locations in other states. No appointment is needed.  
    It is not necessary to go to a center to apply for FEMA assistance. The fastest way to apply is online at DisasterAssistance.gov or via the FEMA app. You may also call 800-621-3362. If you use a relay service such as video relay, captioned telephone or other service, give FEMA your number for that service. 

    MIL OSI USA News –

  • MIL-OSI USA: Boston Globe: ‘That’s just not right’: Sen. Warren presses Stop & Shop on grocery prices after study showing differences across neighborhoods

    US Senate News:

    Source: United States Senator for Massachusetts – Elizabeth Warren
    October 01, 2024
    For more than a year, youth organizers with the Hyde Square Task Force in Jamaica Plain have pressed grocery giant Stop & Shop on pricing differences at its Greater Boston locations, alleging that grocery costs in its stores located in more affluent neighborhoods are cheaper than stores that are not.
    On Monday, the teen sleuths received reinforcements after members of the Massachusetts congressional delegation sent a letter to Stop & Shop’s parent company demanding it provide answers.
    In a four-page letter addressed to Frans Muller, CEO of Ahold Delhaize, Senator Elizabeth Warren wrote that the popular grocery chain could be “engaging in corporate profiteering schemes that squeeze residents and families in Massachusetts,” based on the youths’ report that was first published in the Globe in June of 2023. The letter asks Muller for information on what factors impact pricing differences among the state’s Stop & Shop stores, where the highest and lowest prices for the teens’ original shopping list are in Massachusetts, and the steps the company has taken to make groceries more affordable for customers.
    …
    Read the full story here.
    By:  Tiana WoodardSource: Boston Globe
    Previous Article

    MIL OSI USA News –

  • MIL-OSI USA: “Grave Concern”: Senator Reverend Warnock and Rep. Johnson Question BioLab’s Leadership Over Safety Concerns at Conyers Facility

    US Senate News:

    Source: United States Senator Reverend Raphael Warnock – Georgia

    “Grave Concern”: Senator Reverend Warnock and Rep. Johnson Question BioLab’s Leadership Over Safety Concerns at Conyers Facility

    In a letter to Michael Sload, CEO of KIK Consumer Products, the owner of the lab, Senator Reverend Warnock requested details regarding the September fire and what the company is doing to ensure it doesn’t happen again
    Additionally, the lawmakers inquired about the company’s plans to work with residents in the community that were impacted by the smoke plume
    ICYMI from the AJC: Sen. Warnock, Rep. Johnson want answers from BioLab as pressure mounts following fire
    Senator Reverend Warnock, lawmakers: “This fire is just one of BioLab’s safety violations, and BioLab cannot continue to put the Rockdale community in this position”
    Washington, D.C. – Today, U.S. Senator Reverend Raphael Warnock (D-GA), led a bicameral push alongside U.S. Congressman Hank Johnson (D-GA-04) to Michael Sload, the CEO of KIK Consumer Products, the company that owns and operates the BioLab in Conyers, GA, urging responses to a series of questions about the company’s plans to address long-standing safety lapses and prevent future emergencies at the facility, as well as its efforts to compensate local families following the September 29th fire that produced a chemical smoke plume over the surrounding area and impacted local residents. 
    “We write with grave concern regarding BioLab’s September 29, 2024, fire at the company’s Conyers, Georgia facility, the resulting chemical plume and debris, and the immediate and potential long-term effects on communities in Georgia. This fire is just one of BioLab’s safety violations, and BioLab cannot continue to put the Rockdale community in this position,” wrote the lawmakers.
    “While any fire of this magnitude is concerning, we are particularly alarmed that the September 2024 fire was the third major chemical event at BioLab’s Conyers facility in the past two decades. In May 2004 and again in September 2020, chemical incidents at this exact facility caused residential evacuations and shut down U.S. Interstate 20 (I-20)—just as we saw on September 29. Chemical incidents are not the only failures to occur at BioLab.” continued the lawmakers. 
    Specifically, the lawmakers requested the company’s leadership respond in detail to questions regarding the events of September 29, BioLab’s prior safety failures and workplace violations, and BioLab’s plan to address any financial, health, and potential environmental harms to the Rockdale County and metro Atlanta community.
    “BioLab must correct its pattern of safety failures to prevent similar incidents from occurring in the future,” the lawmakers concluded.
    This latest effort to hold BioLab accountable for the September 29 fire and its impact on the local community follows a letter sent recently, led by Senator Warnock and Congressman Johnson urging the Environmental Protection Agency (EPA) to strengthen federal oversight of facilities manufacturing or storing certain hazardous chemicals. The lawmakers pushed EPA Administrator Michael Regan to enhance federal oversight of facilities that manufacture and/or store Trichloroisocyanuric Acid (TCCA), which is at the heart of the incident at the BioLab plant in Conyers. 
    The letter can be found HERE.

    MIL OSI USA News –

  • MIL-OSI: Bold Eagle Acquisition Corp., Led by Eagle Equity Partners’ Harry Sloan, Jeff Sagansky and Eli Baker, Announces Pricing of $250 million IPO

    Source: GlobeNewswire (MIL-OSI)

    Bold Eagle Will Feature a Warrantless Structure

    Each Unit Includes One Class A Ordinary Share and
    One Eagle Share Right to Receive 1/20th of a Class A Ordinary Share

    Sponsor to Reduce Founder Shares in an Amount Equal to the Shares Underlying the Eagle Share Rights

    NEW YORK, NY, Oct. 23, 2024 (GLOBE NEWSWIRE) — Bold Eagle Acquisition Corp. (the “Company”), the ninth public acquisition vehicle sponsored by Eagle Equity Partners, which is led by Harry Sloan, Jeff Sagansky and Eli Baker, today announced the pricing on October 23, 2024 of its initial public offering of 25,000,000 units at a price of $10.00 per unit. Each unit consists of one Class A ordinary share and one Eagle Share Right to receive one twentieth of one Class A ordinary share upon the consummation of an initial business combination. There are no warrants issued publicly or privately in connection with this offering and, after the closing of the initial public offering, the Company’s sponsor will reduce its founder shares in an amount equal to the Class A ordinary shares underlying the Eagle Share Rights. An amount equal to $10.00 per unit will be deposited into a trust account upon the closing of the offering. The units will be listed on the Nasdaq Global Market (“Nasdaq”) and trade under the ticker symbol “BEAGU” beginning on October 24, 2024. After the securities comprising the units begin separate trading, the Class A ordinary shares and Eagle Share Rights are expected to be listed on Nasdaq under the symbols “BEAG” and “BEAGR,” respectively. The offering is expected to close on October 25, 2024.

    Bold Eagle Acquisition Corp. is a blank check company whose business purpose is to effect a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. The Company’s efforts to identify a prospective initial business combination target will not be limited to a particular industry, sector or geographic region. While the Company may pursue an initial business combination opportunity in any industry or sector, it intends to capitalize on the ability of its management team to identify and combine with a business or businesses that can benefit from its management team’s established global relationships and operating experience.

    The Company’s sponsor is Eagle Equity Partners IV, LLC, of which Harry Sloan, Jeff Sagansky and Eli Baker are Managing Members. Harry Sloan and Jeff Sagansky are the Co-Chairmen of the Company. Joining Mr. Sloan and Mr. Sagansky in the management of the Company is Eli Baker, the Chief Executive Officer, who has served in various capacities in seven of Eagle Equity’s prior public acquisition vehicles, most recently as Chief Executive Officer of Screaming Eagle Acquisition Corp. Also joining Mr. Sloan, Mr. Sagansky and Mr. Baker in the management of the Company is Ryan O’Connor, the Chief Financial Officer, who previously served as the Vice President of Finance of Screaming Eagle Acquisition Corp.

    UBS Investment Bank and Jefferies are acting as the representatives of the underwriters for the offering. The Company has granted the underwriters a 45-day option to purchase up to an additional 3,750,000 units at the initial public offering price to cover over-allotments, if any.

    The offering is being made only by means of a prospectus. When available, copies of the prospectus may be obtained from UBS Securities LLC, Attention: Prospectus Department, 1285 Avenue of the Americas, New York, NY 10019, by telephone at (888) 827-7275 or by email at ol-prospectusrequest@ubs.com or from Jefferies LLC, Attn: Equity Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New York, NY 10022, by telephone: 877-821-7388 or by email: Prospectus_Department@Jefferies.com.

    A registration statement relating to these securities has been declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on October 23, 2024. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any State or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State or jurisdiction.

    Cautionary Note Concerning Forward-Looking Statements

    This press release contains statements that constitute “forward-looking statements,” including with respect to the initial public offering and search for an initial business combination. No assurance can be given that the offering discussed above will be completed on the terms described, or at all, or that the proceeds of the offering will be used as indicated. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s registration statement for the initial public offering filed with the SEC. Copies are available on the SEC’s website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

    # # #

    INVESTOR AND MEDIA CONTACT:

    Ryan O’Connor
    t. (424) 284-3519 
    e. roconnor@eaglesinvest.com

    The MIL Network –

  • MIL-OSI Australia: Qube’s proposed acquisition of MIRRAT raises preliminary concerns

    Source: Australian Competition and Consumer Commission

    The ACCC has published a Statement of Issues outlining preliminary competition concerns with Qube Holdings Limited’s (ASX:QUB) proposed acquisition of Melbourne International RoRo & Auto Terminal Pty Ltd (MIRRAT).

    The ACCC is also seeking views on a court-enforceable undertaking offered by Qube, which it has put forward to remedy competition concerns.

    MIRRAT operates the automotive/Roll-on Roll-off terminal at Webb Dock West in Melbourne. The proposed acquisition would permit Qube to acquire sole operating rights for roll-on roll-off trade through the Port of Melbourne.

    Qube, through its wholly owned subsidiary, Australian Amalgamated Terminals Pty Ltd (AAT), operates automotive cargo terminals at the Port of Brisbane and Port Kembla, as well as a general cargo terminal at Appleton Dock at the Port of Melbourne.

    Qube is Australia’s largest provider of import and export logistics services including port-related activities of terminal management, stevedoring, processing, pre-delivery inspection (PDI) and delivery. 

    Webb Dock West is the key facility for the processing of automotive and roll on-roll off cargo through the Port of Melbourne, according to feedback received by the ACCC.

    “The proposed acquisition would result in Qube, which is one of Australia’s largest integrated terminal and freight logistics providers, owning a further interest in a critical component of the automotive delivery supply chain at the Port of Melbourne,” ACCC Commissioner Dr Philip Williams said.

    “We are concerned that the proposed acquisition may have a significant effect on competition in downstream services such as automotive stevedoring and pre-delivery inspection (PDI) services.”

    “If this transaction goes ahead, Qube would be operating the terminal while also being in active competition with other automotive stevedores or PDI providers,” Dr Williams said.

    The ACCC is concerned that Qube could raise the costs of access for rival stevedores and PDI operators, preventing them from competing effectively.

    Qube could do this by restricting access to the terminal or related services, raising prices and lowering the quality of terminal services.

    Concerns were also raised with the ACCC that Qube would have access to rivals’ commercially sensitive information as the terminal operator.

    Proposed undertaking

    Qube’s proposed undertaking, which would vary the current court-enforceable undertakings in place at Port Kembla and Port Brisbane, would:

    • require AAT to not discriminate between terminal users in favour of its own interests in the automotive supply chain by providing for certain price and non-price dispute resolution processes, ring fencing certain confidential information and report periodically on its compliance with the undertaking
    • provide independent oversight (including by an independent auditor), and
    • impose restrictions on AAT’s ability to introduce or change certain tariffs.

    “We are now seeking feedback on both the preliminary competition concerns associated with the acquisition identified in the Statement of Issues and the proposed undertaking, which has been put forward by Qube,” Dr Williams said.

    “While the ACCC has decided to publicly consult on the undertaking, this should not be interpreted to mean that this or any undertaking will ultimately be accepted.”

    The Statement of Issues and proposed undertaking is available on the ACCC’s public register here: Qube Holdings Limited (Qube) – Melbourne International RoRo & Auto Terminal Pty Ltd (MIRRAT).

    The ACCC invites submissions in response to the Statement of Issues by 7 November 2024.

    Background

    MIRRAT’s ultimate parent company is Wallenius Wilhelmsen ASA (WW). WW is a Norway-based global provider of roll on roll off shipping and vehicle logistics and operates automotive terminals in Europe, the UK, the US and the Asia-Pacific. MIRRAT’s only operation in Australia is the automotive/RoRo terminal at Webb Dock West.

    MIRRAT operates Webb Dock West subject to a section 87B undertaking accepted by the ACCC on 27 March 2014 (MIRRAT Undertaking). The MIRRAT Undertaking was accepted by the ACCC in relation to MIRRAT’s acquisition of a long-term lease to operate the Webb Dock West Roll on Roll off terminal at Port Melbourne. The MIRRAT Undertaking commenced on 1 January 2018. It expires when MIRRAT ceases to operate the Terminal, which may occur on or before 30 June 2040, and when the ACCC confirms this in writing.

    The MIRRAT Undertaking includes a provision regarding change of control of MIRRAT’s business (that is, the operation of the Roll On Roll Off terminal at Webb Dock West). Under the change of control provision, control of the operation of the automotive terminal at Webb Dock West may only change to a new person or entity, if that person or entity has given a s87B undertaking to the ACCC that:

    • requires it to comply with the same obligations as are imposed on MIRRAT pursuant to the MIRRAT Undertaking, or
    • on terms that are otherwise acceptable to the ACCC,

    unless the ACCC has notified MIRRAT in writing that a s87B undertaking under the change of control provision is not required.

    The full text of the existing MIRRAT Undertaking can be found on the ACCC’s s87B undertakings register.

    Qube is Australia’s largest integrated provider of import and export logistics services. Its port-related activities include facilities management, stevedoring, processing, PDI and delivery. It manages and develops strategic properties such as inland rail terminals and related logistics facilities. It provides road and rail transport of freight to and from ports, operation of container parks, customs and quarantine services, warehousing, intermodal terminals, and international freight forwarding.

    In addition to being a terminal operator, Qube provides general stevedoring, automotive stevedoring and PDI services at each of its eastern seaboard ports. It provides general and automotive stevedoring through its affiliated entity ‘Qube Ports’. Qube provides PDI services through its 50% interest in K Line Auto Logistics which owns and operates PrixCar.

    AAT (Qube) operates automotive cargo terminals in Port of Brisbane and Port Kembla, as well as a general cargo terminal at Appleton Dock in Port of Melbourne.  The facilities are operated under a s87B undertaking accepted by the ACCC in 2016 (AAT Undertaking).

    The AAT Undertaking was accepted in relation to Qube’s acquisition of a 50 per cent shareholding in AAT, resulting in Qube holding 100 per cent of AAT. The AAT Undertaking commenced on 23 November 2016 (and was varied on 25 June 2018). It has no end date.

    The AAT Undertaking requires that any stevedore or transport operator may apply to have access to the site to service their customers. The access is on a non-discriminatory basis so that all parties are provided services to the same level. Stevedores or transport operators seeking access to the terminal can apply through AAT who will provide a stevedore licence or permit access to approved applicants. The full text of the AAT Undertaking can also be found on the ACCC’s s87B undertakings register.

    The proposed acquisition will give rise to a Change of Control for the purpose of the MIRRAT Undertaking. AAT does not propose to enter a section 87B undertaking with identical terms to the MIRRAT Undertaking. Instead, AAT (Qube) proposes that its operation of the Terminal would be subject to the AAT Undertaking already in place for its existing terminals with additional clauses including in relation to the Price Dispute Resolution Process.

    MIL OSI News –

  • MIL-OSI New Zealand: 30,000 households get FamilyBoost payments

    Source: New Zealand Government

    Almost 30,000 households have now received their first payments under the FamilyBoost childcare payment scheme and thousands more will receive them soon, Finance Minister Nicola Willis says.

     “In total, $11.5 million has been paid out to 29,805 households after only three weeks of claims being open,” Nicola Willis says.

     “High housing, food and childcare costs have made life tough for many families in recent years, so I am delighted that at the same time as interest rates are coming down, we are able to relieve more of the pressure on people’s wallets. 

     “Around 100,000 households a year are estimated to be eligible for FamilyBoost, which is a payment to parents and caregivers of 25 per cent of their early childhood education costs – up to $150 a fortnight. 

     “I encourage all eligible parents and caregivers to register and make a claim – I want households receiving the money that is available to them. To do so, people simply need to register for FamilyBoost in myIR and submit their early childhood invoices to Inland Revenue.”

     For more information about FamilyBoost, including how to register and claim, visit ird.govt.nz/FamilyBoost 

    MIL OSI New Zealand News –

  • MIL-OSI New Zealand: Speech to Institute of Public Administration New Zealand

    Source: New Zealand Government

    Good morning, kia ora koutou. 

    Thank you, Liz, for your introduction, and to you all for the opportunity to speak to you today. 

    It’s a pleasure to be here. And it’s a particular pleasure to continue a tradition that was started by one of my predecessors Sir Bill English. I’m told the finance minister has presented this address every year since 2009. 

    I would like to acknowledge the role the institute plays in promoting excellence in the public sector. 

    I also want to take the opportunity to voice my appreciation for the work public servants do to keep New Zealanders safe and ensure people receive the public services on which they depend. 

    I respect your enduring commitment to public service and the integrity with which you approach your work, remaining focused on the New Zealanders we each serve, evolving and adapting as the political tides come and go.

    As a – still – proud Wellingtonian, I have had the pleasure of knowing and working with a broad spectrum of public servants throughout my career. I admire the thoughtfulness, tenacity, and earnestness I have seen in so many of you.

    I am grateful that while our Government is facing into a particularly challenging set of economic circumstances, we do so with wise and experienced public servants at our back and by our side.  

    This is not as easy time for our country.  A sustained cost of living crisis has left New Zealand with highly constrained government finances, recessionary conditions, rising unemployment and a range of new pressures for everyday Kiwis, both in their family and working lives.  

    That’s not a political observation, so much as a statement of reality.  

    Nor is it a reflection on the professionalism, skill or commitment of New Zealand’s public service. 

    The nation’s position today is a consequence of a global pandemic and of choices made by the previous Government.   

    This is not the forum for politics, and it is not my intention to make a political speech. The facts speak for themselves. In the past six years, there has been an 82 per cent increase in government spending and an additional $118 billion of debt added to the government books. As a country we have been living beyond our means. And now, we must correct course. 

    The good news is that there is light at the end of the tunnel. Inflation has returned to the Reserve Bank’s target range of 1 to 3 per cent for the first time in more than three years, interest rates are coming down and business and public confidence is increasing. 

    There is no escaping the reality, however, that many families and businesses are doing it tough. Inflation has increased household costs and squeezed business margins. 

    Partly for that reason, and also because it is good practice, our Government’s focus on fiscal discipline is going to continue. It is not a one-off, one-Budget affair. It is an ongoing state of mind. 

    As a government we are committed to getting the books back in order and bringing debt down, but our aspirations go far beyond changing the colour of the ink in the government’s accounts. We want to do more than simply deliver better value for money. And we are interested in far more than simply ticking off actions or delivering to targets.  

    We are intent on improving lives. 

    You and your colleagues in the public service have a critical role to play in this because, frankly, what we’ve been doing in recent years hasn’t worked for too many New Zealanders. Some of those who most need help haven’t been getting it. 

    That comes at an economic cost to the country, but more importantly it comes at a human cost. People are our greatest asset and delivering for people is our greatest purpose. In recent times, New Zealand has failed too many of its people: both economically and socially. Falling levels of educational achievement, poor housing, rising welfare dependency and an economy that is not growing quickly enough have denied opportunity to those who most need it. 

    I’ve said this a couple of times before to particular groups of public servants. Now, I’ll say it to a broader group. 

    Now is the time for your best and boldest ideas. As a government we are not interested in treading the same path that has denied opportunity to some of our most vulnerable. We want to make a difference to lives. 

    That’s the reason the Government has brought back public service targets: to focus the public sector on driving better results in health, education, law and order, work, housing and the environment. We understand targets aren’t a perfect mechanism, but past experience has shown they do help to focus attention on the things that make a difference.

    It’s also why this Government is determined to scale up the efforts that have gone into social investment so far.  

    The philosophy underlying social investment makes sense to everybody. 

    Given the choice, what New Zealander would choose to pay for an ambulance at the bottom of the cliff when we could instead build a fence to prevent the fall? They key is working out where the fences are needed and for who, ascertaining who is best placed to build those fences, and then rigorously testing whether they’re actually preventing the fall.

    This is a moral imperative, and it’s also a fiscal one.

    The difference to the taxpayer between a life in and out of the prison system and a life spent in productive activity is in excess of a million dollars. More importantly, for the individuals concerned, and their families, it can be the difference between a life of fulfilment and a life of misery. 

    Thanks to the work started by Bill English we now have a very good idea of where to direct our efforts.  

    For example, Stats NZ’s Integrated Data Infrastructure research database enables us to identify common factors in the lives of those who interact most frequently with state agencies. The factors themselves won’t come as a surprise to anyone. They include poor education, benefit dependency, multiple admissions to hospital emergency departments, being victims of violence and being perpetrators of violence. 

    But put the data together and you get a compelling case for targeted intervention. The IDI tells us that a 22-year-old with eight to 10 of these factors is, by the age of 27, 116 times more likely to have a child placed in care, 69 times more likely to have served a prison sentence, 22 times more likely to have been the victim of family violence and five-and-a-half times more likely to have been hospitalised for attempted suicide.       

    The data is not determinative. Many outstanding New Zealanders have emerged from extremely challenging circumstances and some of those who end up falling foul of our justice system and dependent on welfare come from privileged backgrounds. 

    But the data does give us a good sense of where to direct the scarce resources of the government. No country can afford to fund every good thing. Every dollar spent comes at the opportunity cost of a dollar spent elsewhere. We must always be working to focus funds where they can have the most profound and enduring impact. The prize for that effort is the most important prize of all: it is a child fulfilling the full human potential with which they entered this world. 

    There is no shortage of data in government. The challenge we must now address is how we use this this data to practically make a difference to lives.

    Social investment approach

    In July this year, the Government established the Social Investment Agency to lead, build, and demonstrate a social investment approach. 

    As a mark of the importance we attach to this work, the agency was established as a central agency. That is because the Government wants to see system change across the public service.

    To this end we are asking the public service to think about service delivery in a different way. We are asking for more purposeful thought about how we invest for the New Zealanders in most need. Going beyond the easy platitudes of good intentions and instead moving towards a world of far greater accountability for what results are delivered. 

    This demands us to think much more purposefully not just about what we want to change but how best to make it happen. We want to see more devolution of power, more clarity about what works for who, and much more space for innovation. In accountant-speak, our focus is shifting from outputs to outcomes. That means asking ourselves the right questions.

    First: what are the outcomes we want to achieve? That is a different question from the question that is often asked by governments – ‘what can we give people’. And it is a question that leads to different outcomes. 

    Second: who needs help? Not ‘how shall we distribute these services that we already have?’ That means putting the needs of the people who need help ahead of the needs of organisations providing services.

    Third: what services should be prioritised? Not ‘what shall we add to the service mix?’ That means identifying what is working and, just as importantly, what is not working. 

    This is one of the most challenging issues governments face because stopping programmes that are not performing well affects the people involved and can be interpreted as an admission of failure. 

    But, if we are serious about making a difference to the lives of our most vulnerable, we have to be rigorous about directing resources away from initiatives that are not making a difference towards initiatives that are. 

    Fourth: how do we enable providers to achieve the outcomes we want? Not, ‘how do we manage providers so they do what we want’ but how do we empower them to achieve the outcomes we all want to see?

    And fifth and finally: ‘How will we know if what we are doing is working?’ This is a question that is not asked often enough and the failure to do so is at the root of too much inefficiency in our social system.  

    Drawing on evidence and being clear about the answers to these questions, gives us the best chance of changing lives. It also ensures we get value for the money we spend.  

    Social outcomes contracts

    Another important aspect of social investment is recognising that not all the answers to the challenges we face can be found in Wellington office blocks, or the Beehive, for that matter. 

    Communities often know what the best solutions for their people are. We need and want to foster genuine partnership between the public service and proven community-based providers. 

    I’ve heard time and time again from those working with communities that the way the government contracts and commissions programmes is broken.

    I know that you too will have received feedback from service users, non-government organisations, iwi, and communities that current contracting arrangements fail to focus on the thing that really matters – whether the service makes a difference for people.

    When I talk to and visit providers, they tell me about the multiple overlapping contracts that they have with different agencies who do not seem to be talking to each other.

    They tell me about how government ties their hands by requiring specific outputs that prevent them from innovating to provide services more effectively. 

    They tell me about the time they waste producing reports that don’t seem to inform future conversations and contracting decisions, and the teams of people they have to employ to produce reports that aren’t read.

    They tell me about being forced to ‘contract farm’ to secure piecemeal funding across multiple contracts in order to ensure they can stay afloat and serve their communities.

    All of this is a drain on their resources which means they have less time to deliver outcomes for vulnerable New Zealanders. They have less time to think creatively and less ability to adapt and flex how they deliver. 

    Social investment suggests that one of the solutions to these problems is contracting with providers to deliver outcomes rather than outputs. 

    That means that once contracts have been negotiated, providers can choose how best to achieve the outcomes everyone wants. Outcomes-based contracts allow providers to flex their services around the needs of the people they are working with and to develop new solutions. To move away from a focus on serving the needs of a government department and instead take radical accountability for the results they deliver for the people they serve. 

    Outcomes-contracting also creates data-rich feedback loops to inform ongoing improvements to service delivery and future contracts. 

    It requires a conversation and agreement between funders and providers about data. What outcomes will be measured? How will those outcomes be measured? How will providers demonstrate that they are learning what works and doing more of it? How will funders use this data to inform decisions about future investments? 

    It’s not about elaborate evaluations and literature reviews – it’s about real-time insights into what’s working, what’s not working and what to do next to get the result that matter for the people we serve.  

    Changing the way that social services are commissioned will be a critical component of the social investment approach.

    Therefore, I have asked the Social Investment Agency to lead work with other agencies to develop prototype outcomes contracts to replace the current set of criss-crossing and overlapping outputs-focused contracts. This will provide a blueprint for other commissioners and providers of services to follow. 

    Contracting in this way has the potential to raise the bar for investment decisions across the public service. Not only does it require agencies to understand the needs of different groups, it requires them to assess the impact of the services they have delivered by measuring and comparing results.

    The Government is also progressing work to establish a Social Investment Fund that will directly commission outcomes for vulnerable New Zealanders and work with community, non-government organisations and iwi providers. 

    The fund will be managed by the Social Investment Agency and will serve as a testing ground for innovation which – when successful – can be applied more broadly to the social sector.

    Initially the fund will be small and targeted, but I anticipate it will grow over time and become an increasingly important vehicle for empowering innovation and testing new approaches. My ambition is that the fund will eventually be an effective vehicle not just for Government investment in changing people’s lives, but also as a home for funding from philanthropists, investors and anyone who wants to deploy their money in service of social good.  

    Not every initiative it funds will be successful, but that is the point of a testing ground, to identify what works and, just as importantly, what does not. Better to fail fast in a test environment and learn from the results than to keep doing the same thing that history has shown does not deliver results. 

    Conclusion

    In conclusion, this is a government that is intent on making a difference. We are not going to keep doing things simply because that is the way they have always been done. We want to make New Zealand a better place for everyone, particularly our most vulnerable citizens.

    We know change can be unsettling and we know we are asking a lot of you and your colleagues in the public service. 

    At the same time that we’re making savings across the public sector, we’re not just asking you to deliver business as usual, we’re challenging you to think and operate differently. For me, wrestling with that reality conjures up a phrase attributed to that great New Zealand pioneer, Ernest Rutherford: We haven’t got the money, so we’ll have to think.

    I am confident in your ability to rise to the challenge. 

    What I am hearing from many public servants is that you welcome the opportunity to think differently about how we tackle some of our biggest and most entrenched challenges. 

    That does not surprise me. I know the reason most, if not all of you, joined the public service is to serve your fellow New Zealanders and contribute to making New Zealand a better place. 

    I encourage you to be bold and put forward your best advice. I also encourage you to work as closely and openly as you can with those you are seeking to serve – local decision makers, iwi and Māori providers, as well as the private sector. Central government does not have a monopoly on good ideas. 

    Together, we have an opportunity to reduce welfare dependency, improve health, raise educational achievement, lower rates of offending and address increasing rates of inequality. Without adding to the spaghetti of bureaucracy.

    Let’s seize that opportunity with both hands. Thank you.

    MIL OSI New Zealand News –

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

    Source: GlobeNewswire (MIL-OSI)

    NOTABLE ITEMS FOR THE QUARTER INCLUDE:

    • DILUTED EARNINGS PER SHARE WERE $0.16 FOR THE CURRENT QUARTER COMPARED TO $0.14 FOR THE TRAILING QUARTER, AND $0.19 FOR THE THIRD QUARTER OF 2023.
    • NET INTEREST MARGIN REMAINED RELATIVELY STABLE AT 2.08% FOR THE CURRENT QUARTER AS COMPARED TO 2.09% FOR THE TRAILING QUARTER.
    • AVERAGE YIELD ON INTEREST-EARNING ASSETS DECREASED ONE BASIS POINT TO 4.38%, WHILE THE AVERAGE COST OF INTEREST-BEARING LIABILITIES REMAINED STABLE AT 2.95% FOR THE CURRENT QUARTER AS COMPARED TO THE TRAILING QUARTER.
    • DEPOSITS (EXCLUDING BROKERED) DECREASED MODESTLY BY $5.1 MILLION, OR LESS THAN 1% ANNUALIZED, COMPARED TO JUNE 30, 2024, AND INCREASED $15.0 MILLION, OR 0.5% ANNUALIZED, FROM DECEMBER 31, 2023. COST OF DEPOSITS AT SEPTEMBER 30, 2024 WAS 2.07% AS COMPARED TO 2.10% AT JUNE 30, 2024.
    • LOAN BALANCES DECLINED BY $27.2 MILLION, OR 2.7% ANNUALIZED, FROM JUNE 30, 2024, WITH DECREASES IN COMMERCIAL, MULTIFAMILY AND RESIDENTIAL REAL ESTATE LOANS OFFSET BY INCREASES IN HOME EQUITY, CONSTRUCTION AND LAND, AND COMMERCIAL AND INDUSTRIAL LOANS.
    • ASSET QUALITY REMAINS STRONG DESPITE AN INCREASE IN NON-PERFORMING LOANS IN THE CURRENT QUARTER. NON-PERFORMING LOANS TO TOTAL LOANS WAS 0.75% AT SEPTEMBER 30, 2024 AND 0.42% AT JUNE 30, 2024.
    • THE COMPANY MAINTAINED STRONG LIQUIDITY WITH APPROXIMATELY $597 MILLION IN UNPLEDGED AVAILABLE-FOR-SALE SECURITIES AND LOANS READILY AVAILABLE-FOR-PLEDGE OF APPROXIMATELY $699 MILLION.
    • THE COMPANY REPURCHASED 560,683 SHARES FOR A COST OF $6.3 MILLION. THERE IS NO REMAINING CAPACITY UNDER THE CURRENT REPURCHASE PROGRAM.
    • CASH DIVIDEND DECLARED OF $0.13 PER SHARE OF COMMON STOCK, PAYABLE ON NOVEMBER 20, 2024, TO STOCKHOLDERS OF RECORD AS OF NOVEMBER 6, 2024.

    WOODBRIDGE, N.J., Oct. 23, 2024 (GLOBE NEWSWIRE) — NORTHFIELD BANCORP, INC. (Nasdaq:NFBK) (the “Company”), the holding company for Northfield Bank, reported net income of $6.5 million, or $0.16 per diluted share for the three months ended September 30, 2024, compared to $6.0 million, or $0.14 per diluted share, for the three months ended June 30, 2024, and $8.2 million, or $0.19 per diluted share, for the three months ended September 30, 2023. For the nine months ended September 30, 2024, net income totaled $18.7 million, or $0.45 per diluted share, compared to $29.4 million, or $0.67 per diluted share, for the nine months ended September 30, 2023. For the nine months ended September 30, 2024, net income reflected $795,000, or $0.02 per share, of additional tax expense related to options that expired in June 2024, and $683,000, or $0.01 per share, of severance expense related to staffing realignments. For the nine months ended September 30, 2023, net income reflected $440,000, or $0.01 per share of severance expense. The decrease in net income for the nine months ended September 30, 2024, compared to the comparable prior year period was primarily the result of a decrease in net interest income, which was negatively impacted by higher funding costs, partially offset by improved interest and non-interest income.

    Commenting on the quarter, Steven M. Klein, the Company’s Chairman, President and Chief Executive Officer stated, “In the third quarter, the Northfield team continued to focus on financial performance, serving the businesses and consumers in our marketplace, and improving upon our operating efficiencies.” Mr. Klein continued, “We delivered solid financial performance for the quarter, increasing our net income, and earnings per share, as we manage our strong capital levels, core deposit and loan relationships, asset quality, and operating expenses. While significant risks remain, the decrease in short-term market interest rates late in the third quarter should provide increased economic activity in our marketplace and opportunities for our Company.”

    Mr. Klein further noted, “I am pleased to announce that the Board of Directors has declared a cash dividend of $0.13 per common share, payable on November 20, 2024 to stockholders of record on November 6, 2024.”

    Results of Operations

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

    Net income was $18.7 million and $29.4 million for the nine months ended September 30, 2024 and September 30, 2023, respectively. Significant variances from the comparable prior year period are as follows: a $10.9 million decrease in net interest income, a $1.3 million increase in the provision for credit losses on loans, a $1.5 million increase in non-interest income, a $3.2 million increase in non-interest expense, and a $3.1 million decrease in income tax expense.

    Net interest income for the nine months ended September 30, 2024, decreased $10.9 million, or 11.4%, to $84.8 million, from $95.7 million for the nine months ended September 30, 2023 due to a $34.8 million increase in interest expense, which was partially offset by a $23.9 million increase in interest income. The increase in interest expense was largely driven by the cost of interest-bearing liabilities, which increased by 96 basis points to 2.93% for the nine months ended September 30, 2024, from 1.97% for the nine months ended September 30, 2023, driven primarily by a 114 basis point increase in the cost of interest-bearing deposits from 1.42% to 2.56% for the nine months ended September 30, 2024, and a 31 basis point increase in the cost of borrowings from 3.58% to 3.89% due to rising market interest rates and a shift in the composition of the deposit portfolio towards higher-costing certificates of deposit and a greater reliance on borrowings. The increase in interest expense was also due to a $277.1 million, or 7.0%, increase in the average balance of interest-bearing liabilities, including an increase of $149.8 million in the average balance of borrowed funds and a $127.1 million increase in average interest-bearing deposits. The increase in interest income was primarily due to a $156.1 million, or 2.9%, increase in the average balance of interest-earning assets coupled with a 47 basis point increase in the yield on interest-earning assets, which increased to 4.35% for the nine months ended September 30, 2024, from 3.88% for the nine months ended September 30, 2023, due to the rising rate environment. The increase in the average balance of interest-earning assets was primarily due to increases in the average balance of interest-earning deposits in financial institutions of $111.7 million, the average balance of other securities of $91.6 million, and the average balance of mortgage-backed securities of $88.5 million, partially offset by a decrease in the average balance of loans of $133.4 million.

    Net interest margin decreased by 34 basis points to 2.07% for the nine months ended September 30, 2024, from 2.41% for the nine months ended September 30, 2023. The decrease in net interest margin was primarily due to interest-bearing liabilities repricing at a faster rate than interest-earning assets. The net interest margin was negatively affected by approximately 12 basis points due to a $300 million low risk leverage strategy implemented in the first quarter of 2024. In January 2024, the Company borrowed $300.0 million from the Federal Reserve Bank through the Bank Term Funding Program at favorable terms and conditions and invested the proceeds in interest-bearing deposits in other financial institutions and investment securities. The Company accreted interest income related to purchased credit-deteriorated (“PCD”) loans of $1.1 million for the nine months ended September 30, 2024, as compared to $1.0 million for the nine months ended September 30, 2023. Net interest income for the nine months ended September 30, 2024, included loan prepayment income of $648,000 as compared to $1.3 million for the nine months ended September 30, 2023.

    The provision for credit losses on loans increased by $1.3 million to $2.3 million for the nine months ended September 30, 2024, compared to $1.1 million for the nine months ended September 30, 2023, primarily due to an increase in the specific reserve component of the allowance for credit losses, which was partially offset by a decrease in the general reserve component of the allowance for credit losses. The increase in the specific reserve was related to a single commercial and industrial relationship totaling $12.5 million that experienced credit deterioration and was placed on non-accrual during the current quarter, which has a specific reserve of $1.3 million and incurred a charge-off of $878,000. The decline in the general reserve component of the allowance for credit losses resulted from a decline in loan balances and an improvement in the macroeconomic forecast for the current period within our Current Expected Credit Loss (“CECL”) model, partially offset by an increase in reserves related to changes in model assumptions, including the slowing of prepayment speeds, and an increase in reserves in the commercial and industrial and home equity and lines of credit portfolios related to an increase in non-performing loans in these portfolios and higher loan balances. Net charge-offs were $4.7 million for the nine months ended September 30, 2024, primarily due to $3.9 million in net charge-offs on small business unsecured commercial and industrial loans, as compared to net charge-offs of $5.2 million for the nine months ended September 30, 2023. Management continues to closely monitor the small business unsecured commercial and industrial loan portfolio, which totaled $31.0 million at September 30, 2024.

    Non-interest income increased by $1.5 million, or 18.7%, to $9.8 million for the nine months ended September 30, 2024, compared to $8.3 million for the nine months ended September 30, 2023. The increase was primarily due to increases of $790,000 in fees and service charges for customer services, related to an increase in overdraft fees and service charges on deposit accounts, $260,000 in income on bank owned life insurance, and $874,000 in gains on trading securities, net. Partially offsetting the increases was a $303,000 decrease in other income, primarily due to lower swap fee income. Gains on trading securities in the nine months ended September 30, 2024, were $1.6 million, as compared to $723,000 in the nine months ended September 30, 2023. The trading portfolio is utilized to fund the Company’s deferred compensation obligation to certain employees and directors of the plan. The participants of this plan, at their election, defer a portion of their compensation. Gains and losses on trading securities have no effect on net income since participants benefit from, and bear the full risk of changes in the trading securities market values. Therefore, the Company records an equal and offsetting amount in compensation expense, reflecting the change in the Company’s obligations under the plan.

    Non-interest expense increased $3.2 million, or 5.2%, to $65.7 million for the nine months ended September 30, 2024, compared to $62.5 million for the nine months ended September 30, 2023. The increase was primarily due to a $3.3 million increase in employee compensation and benefits, primarily attributable to higher salary expense, related to annual merit increases and higher medical expense, and an increase of $874,000 in deferred compensation expense, which is described above, and had no effect on net income. Employee compensation and benefits expense also includes severance expense of $683,000 for the nine months ended September 30, 2024, as compared to $440,000 for the nine months ended September 30, 2023. During the second quarter of 2024, due to current economic conditions, the Company implemented a workforce reduction plan which included modest layoffs and staffing realignments. The annual estimated cost savings of this plan is $2.0 million, pre-tax. Partially offsetting the increase was a $461,000 decrease in stock compensation expense related to performance stock awards not expected to vest. Additionally, non-interest expense included a $727,000 increase in credit loss expense/(benefit) for off-balance sheet exposure due to a provision of $337,000 recorded during the nine months ended September 30, 2024, as compared to a benefit of $390,000 for the comparative prior year period. The benefit in the prior year period was attributable to a decrease in the pipeline of loans committed and awaiting closing. Partially offsetting the increases was a $552,000 decrease in advertising expense due to a change in marketing strategy and the timing of specific deposit and lending campaigns.

    The Company recorded income tax expense of $7.9 million for the nine months ended September 30, 2024, compared to $11.0 million for the nine months ended September 30, 2023, with the decrease due to lower taxable income partially offset by a higher effective tax rate. The effective tax rate for the nine months ended September 30, 2024, was 29.7% compared to 27.2% for the nine months ended September 30, 2023. In June 2024, options granted in 2014 expired and resulted in additional tax expense of $795,000, contributing to the higher effective tax rate for the nine months ended September 30, 2024.

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

    Net income was $6.5 million and $8.2 million for the quarters ended September 30, 2024 and September 30, 2023, respectively. Significant variances from the comparable prior year quarter are as follows: a $1.5 million decrease in net interest income, a $2.4 increase in the provision for credit losses on loans, a $1.5 million increase in non-interest income, a $189,000 decrease in non-interest expense, and a $513,000 decrease in income tax expense.

    Net interest income for the quarter ended September 30, 2024, decreased $1.5 million, or 4.9%, to $28.2 million, from $29.7 million for the quarter ended September 30, 2023, due to an $8.0 million increase in interest expense, partially offset by an $6.6 million increase in interest income. The increase in interest expense was largely driven by the impact of rising market interest rates and a $227.0 million, or 5.7%, increase in the average balance of interest-bearing liabilities, including increases of $158.4 million and $68.4 million in the average balance of interest-bearing deposits and borrowed funds, respectively. The increase in interest income was primarily due to a $155.1 million, or 3.0%, increase in the average balance of interest-earning assets coupled with a 38 basis point increase in yields on interest-earning assets due to the rising rate environment. The increase in the average balance of interest-earning assets was due to increases in the average balance of mortgage-backed securities of $240.3 million, the average balance of other securities of $64.0 million, and the average balance of interest-earning deposits in financial institutions of $26.8 million, partially offset by decreases in the average balance of loans outstanding of $172.8 million and the average balance of Federal Home Loan Bank of New York stock of $3.2 million.

    Net interest margin decreased by 17 basis points to 2.08% for the quarter ended September 30, 2024, from 2.25% for the quarter ended September 30, 2023, primarily due to the cost of interest-bearing liabilities increasing faster than the repricing of interest-earning assets. The cost of interest-bearing liabilities increased by 64 basis points to 2.95% for the quarter ended September 30, 2024, from 2.31% for the quarter ended September 30, 2023, driven primarily by a 77 basis point increase in the cost of interest-bearing deposits from 1.82% to 2.59%, and a 30 basis point increase in the cost of borrowings from 3.63% to 3.93%. The increase in the cost of interest-bearing liabilities was partially offset by an increase in the yield on interest-earning assets, which increased by 38 basis points to 4.38% for the quarter ended September 30, 2024, from 4.00% for the quarter ended September 30, 2023. Net interest income for the quarter ended September 30, 2024, included loan prepayment income of $87,000, as compared to $183,000 for the quarter ended September 30, 2023. The Company accreted interest income related to PCD loans of $327,000 for the quarter ended September 30, 2024, as compared to $325,000 for the quarter ended September 30, 2023.

    The provision for credit losses on loans increased by $2.4 million to $2.5 million for the quarter ended September 30, 2024, from a provision of $188,000 for the quarter ended September 30, 2023, primarily due to an increase in the specific reserve component of the allowance for credit losses, which was partially offset by a decrease in the general reserve component of the allowance for credit losses. The increase in the specific reserve was related to a single commercial and industrial relationship that experienced credit deterioration and was placed on non-accrual during the current quarter, which has a specific reserve of $1.3 million and incurred a charge-off of $878,000. The decline in the general reserve component of the allowance for credit losses resulted from a decline in loan balances and an improvement in the macroeconomic forecast for the current period within our CECL model, partially offset by an increase in reserves related to changes in model assumptions, including the slowing of prepayment speeds, and an increase in reserves in the commercial and industrial portfolio related to an increase in non-performing loans and higher loan balances. Net charge-offs were $2.1 million for the quarter ended September 30, 2024, and included $1.4 million in net charge-offs on small business unsecured loans, as compared to net charge-offs of $2.9 million for the quarter ended September 30, 2023.

    Non-interest income increased by $1.5 million, or 68.7%, to $3.6 million for the quarter ended September 30, 2024, from $2.1 million for the quarter ended September 30, 2023, primarily due to a $294,000 increase in fees and service charges, primarily related to higher overdraft fees, a $1.0 million increase in gains on trading securities, net, and a $185,000 increase in other income, primarily due to higher swap fee income. For the quarter ended September 30, 2024, gains on trading securities, net, were $710,000, compared to losses of $295,000 in the quarter ended September 30, 2023. Gains and losses on trading securities have no effect on net income since participants benefit from, and bear the full risk of, changes in the trading securities market values. Therefore, the Company records an equal and offsetting amount in compensation expense, reflecting the change in the Company’s obligations under the Plan.

    Non-interest expense decreased by $189,000, or 0.9%, to $20.4 million for the quarter ended September 30, 2024, from $20.6 million for the quarter ended September 30, 2023. The decrease was primarily due to decreases of $386,000 in occupancy expense, attributable to lower real estate taxes, common area maintenance and electricity costs, $214,000 in data processing costs, attributable to a decrease in ongoing core processing costs related to a prior technology-related contract renewed at favorable terms, and $132,000 in advertising expense. Partially offsetting the decreases was a $504,000 increase in compensation and employee benefits, which included a $1.0 million increase in expense related to the Company’s deferred compensation plan which is described above, and had no effect on net income, that was offset by lower medical expense.

    The Company recorded income tax expense of $2.4 million for the quarter ended September 30, 2024, compared to $2.9 million for the quarter ended September 30, 2023, with the decrease due to lower taxable income. The effective tax rate for the quarter ended September 30, 2024 was 26.6%, compared to 26.0% for the quarter ended September 30, 2023.

    Comparison of Operating Results for the Three Months Ended September 30, 2024 and June 30, 2024

    Net income was $6.5 million and $6.0 million for the quarters ended September 30, 2024, and June 30, 2024, respectively. Significant variances from the prior quarter are as follows: an $458,000 decrease in net interest income, a $3.2 million increase in the provision for credit losses on loans, a $719,000 increase in non-interest income, a $2.6 million decrease in non-interest expense, and an $850,000 decrease in income tax expense.

    Net interest income for the quarter ended September 30, 2024, decreased by $458,000, or 1.6%, primarily due to a $902,000 decrease in interest income, partially offset by a $444,000 decrease in interest expense on deposits and borrowings. The decrease in interest income was primarily due to a $124.4 million decrease in the average balance of interest-earning assets. The decrease in the average balance of interest-earning assets was primarily due to decreases in the average balance of interest-earning deposits in financial institutions of $91.6 million, the average balance of other securities of $60.5 million, and the average balance of loans outstanding of $48.1 million, partially offset by an increase in the average balance of mortgage-backed securities of $76.5 million. The decrease in interest expense on deposits and borrowings was primarily due to a $105.8 million, or 2.5%, decrease in the average balance of interest-bearing liabilities attributable to a $73.2 million decrease in the average balance of interest-bearing deposits and a $32.7 million decrease in the average balance of borrowed funds.

    Net interest margin decreased by one basis point to 2.08% from 2.09% for the quarter ended June 30, 2024, primarily due to a one basis point decrease in yields on interest-earning assets whereas the cost of interest-bearing liabilities remained level. Net interest income for the quarter ended September 30, 2024, included loan prepayment income of $87,000 as compared to $210,000 for the quarter ended June 30, 2024. The Company accreted interest income related to PCD loans of $327,000 for the quarter ended September 30, 2024, as compared to $321,000 for the quarter ended June 30, 2024.

    The provision for credit losses on loans increased by $3.2 million to $2.5 million for the quarter ended September 30, 2024, from a benefit of $618,000 for the quarter ended June 30, 2024. The increase in the provision for the current quarter was primarily due to an increase in the specific reserve component of the allowance for credit losses, attributable to a single commercial and industrial relationship that experienced credit deterioration and was placed on non-accrual during the current quarter, higher reserves related to changes in model assumptions during the current quarter, including the slowing of prepayment speeds and higher net-charge-offs. Net charge-offs were $2.1 million for the quarter ended September 30, 2024, as compared to net charge-offs of $1.6 million for the quarter ended June 30, 2024.

    Non-interest income increased by $719,000, or 25.1%, to $3.6 million for the quarter ended September 30, 2024, from $2.9 million for the quarter ended June 30, 2024. The increase was primarily due to a $522,000 increase in gains on sales of trading securities, net, and a $192,000 increase in other income, primarily due to higher swap fee income. For the quarter ended September 30, 2024, gains on trading securities, net, were $710,000, compared to gains of $188,000 for the quarter ended June 30, 2024.

    Non-interest expense decreased by $2.6 million, or 11.4%, to $20.4 million for the quarter ended September 30, 2024, from $23.0 million for the quarter ended June 30, 2024. The decrease was primarily due to a $2.0 million decrease in compensation and employee benefits, primarily attributable to a decrease in salaries and medical expense due to lower employee headcount, partially offset by a $522,000 increase in expense related to the Company’s deferred compensation plan which had no effect on net income. Also contributing to the decrease were decreases of $192,000 in occupancy expense, $397,000 in data processing costs, attributable to a decrease in ongoing core processing costs resulting from a prior technology-related contract renewed at favorable terms, $200,000 in advertising expense, and $122,000 in other non-interest expense. Partially offsetting the decreases was a $262,000 increase in professional fees, primarily due to an increase in outsourced audit services.

    The Company recorded income tax expense of $2.4 million for the quarter ended September 30, 2024, compared to $3.2 million for the quarter ended June 30, 2024. The effective tax rate for the quarter ended September 30, 2024 was 26.6%, compared to 35.0% for the quarter ended June 30, 2024. During the quarter ended June 30, 2024, options granted in 2014 expired and resulted in additional tax expense of $795,000, contributing to the higher effective tax rate for the quarter ended June 30, 2024.

    Financial Condition

    Total assets increased by $132.5 million, or 2.4%, to $5.73 billion at September 30, 2024, from $5.60 billion at December 31, 2023. The increase was primarily due to increases in available-for-sale debt securities of $268.0 million, or 33.7%, and cash and cash equivalents of $3.4 million, or 1.5%, partially offset by a decrease in loans receivable of $139.7 million, or 3.3%.

    Cash and cash equivalents increased by $3.4 million, or 1.5%, to $232.9 million at September 30, 2024, from $229.5 million at December 31, 2023. Balances fluctuate based on the timing of receipt of security and loan repayments and the redeployment of cash into higher-yielding assets such as loans and securities, or the funding of deposit outflows or borrowing maturities.

    Loans held-for-investment, net, decreased by $139.7 million, or 3.3%, to $4.06 billion at September 30, 2024 from $4.20 billion at December 31, 2023, primarily due to decreases in multifamily, commercial and one-to-four family residential real estate loans, partially offset by increases in home equity and lines of credit, construction and land, and commercial and industrial loans. The decrease in loan balances reflects the Company remaining strategically focused on both managing the concentration of its commercial and multifamily real estate loan portfolios and disciplined loan pricing, as well as lower customer demand in the recent elevated interest rate environment. Multifamily loans decreased $110.1 million, or 4.0%, to $2.64 billion at September 30, 2024 from $2.75 billion at December 31, 2023, commercial real estate loans decreased $51.4 million, or 5.5%, to $878.2 million at September 30, 2024 from $929.6 million at December 31, 2023, one-to-four family residential loans decreased $11.1 million, or 6.9%, to $149.7 million at September 30, 2024 from $160.8 million at December 31, 2023, and other loans decreased $925,000, or 35.8%, to $1.7 million at September 30, 2024 from $2.6 million at December 31, 2023. Partially offsetting these decreases were increases in commercial and industrial loans of $19.1 million, or 12.3%, to $174.4 million at September 30, 2024 from $155.3 million at December 31, 2023, home equity and lines of credit of $8.4 million, or 5.2%, to $171.9 million at September 30, 2024 from $163.5 million at December 31, 2023, and construction and land loans of $2.1 million, or 6.6%, to $33.0 million at September 30, 2024 from $31.0 million at December 31, 2023.

    As of September 30, 2024, non-owner occupied commercial real estate loans (as defined by regulatory guidance) to total risk-based capital was estimated at approximately 447%. Management believes that Northfield Bank (the “Bank”) maintains appropriate risk management practices including risk assessments, board-approved underwriting policies and related procedures, which include monitoring Bank portfolio performance, performing market analysis (economic and real estate), and stressing of the Bank’s commercial real estate portfolio under severe, adverse economic conditions. Although management believes the Bank has implemented appropriate policies and procedures to manage its commercial real estate concentration risk, the Bank’s regulators could require it to implement additional policies and procedures or could require it to maintain higher levels of regulatory capital, which might adversely affect its loan originations, the Company’s ability to pay dividends, and overall profitability.

    Our real estate portfolio includes credit risk exposure to loans collateralized by office buildings and multifamily properties in New York State subject to some form of rent regulation limiting rent increases for rent stabilized multifamily properties. At September 30, 2024, office-related loans represented $183.6 million, or 4.5% of our total loan portfolio, with an average balance of $1.7 million (although we have originated these type of loans in amounts substantially greater than this average) and a weighted average loan-to-value ratio of 59%. Approximately 41% were owner-occupied. The geographic locations of the properties collateralizing our office-related loans are: 50.7% in New York, 47.8% in New Jersey and 1.5% in Pennsylvania. At September 30, 2024, our largest office-related loan had a principal balance of $90.0 million (with a net active principal balance for the Bank of $29.9 million as we have a 33.3% participation interest), was secured by an office facility located in Staten Island, New York, and was performing in accordance with its original contractual terms. At September 30, 2024, multifamily loans that have some form of rent stabilization or rent control totaled approximately $447.5 million, or approximately 11% of our total loan portfolio, with an average balance of $1.7 million (although we have originated these type of loans in amounts substantially greater than this average) and a weighted average loan-to-value ratio of 51%. At September 30, 2024, our largest rent-regulated loan had a principal balance of $16.9 million, was secured by an apartment building located in Staten Island, New York, and was performing in accordance with its original contractual terms. Management continues to closely monitor its office and rent-regulated portfolios. For further details on our rent-regulated multifamily portfolio see “Asset Quality”.

    PCD loans totaled $9.3 million and $9.9 million at September 30, 2024 and December 31, 2023, respectively. The majority of the remaining PCD loan balance consists of loans acquired as part of a Federal Deposit Insurance Corporation-assisted transaction. The Company accreted interest income of $327,000 and $1.1 million attributable to PCD loans for the three and nine months ended September 30, 2024, respectively, as compared to $325,000 and $1.0 million for the three and nine months ended September 30, 2023, respectively. PCD loans had an allowance for credit losses of approximately $2.9 million at September 30, 2024.

    Loan balances are summarized as follows (dollars in thousands):

      September 30, 2024   June 30, 2024   December 31, 2023
    Real estate loans:          
    Multifamily $         2,640,944     $         2,665,202     $         2,750,996  
    Commercial mortgage           878,173               896,157               929,595  
    One-to-four family residential mortgage           149,682               151,948               160,824  
    Home equity and lines of credit           171,946               167,852               163,520  
    Construction and land           33,024               32,607               30,967  
    Total real estate loans           3,873,769               3,913,766               4,035,902  
    Commercial and industrial loans           174,253               165,586               154,984  
    PPP loans           160               202               284  
    Other loans           1,660               2,322               2,585  
    Total commercial and industrial, PPP, and other loans           176,073               168,110               157,853  
    Loans held-for-investment, net (excluding PCD)           4,049,842               4,081,876               4,193,755  
    PCD loans           9,264               9,344               9,899  
    Total loans held-for-investment, net $         4,059,106     $         4,091,220     $         4,203,654  

    The Company’s available-for-sale debt securities portfolio increased by $268.0 million, or 33.7%, to $1.06 billion at September 30, 2024, from $795.5 million at December 31, 2023. The increase was primarily attributable to purchases of securities, partially offset by paydowns, maturities and calls. At September 30, 2024, $869.4 million of the portfolio consisted of residential mortgage-backed securities issued or guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae. In addition, the Company held $74.9 million in U.S. Government agency securities, $118.5 million in corporate bonds, substantially all of which were investment grade, and $684,000 in municipal bonds at September 30, 2024. Unrealized losses, net of tax, on available-for-sale debt securities and held-to-maturity securities approximated $19.6 million and $219,000, respectively, at September 30, 2024, and $32.5 million and $279,000, respectively, at December 31, 2023.

    Equity securities were $10.7 million at September 30, 2024 and $10.6 million at December 31, 2023. Equity securities are primarily comprised of an investment in a Small Business Administration Loan Fund. This investment is utilized by the Bank as part of its Community Reinvestment Act program.

    Total liabilities increased $132.3 million, or 2.7%, to $5.03 billion at September 30, 2024, from $4.90 billion at December 31, 2023. The increase was primarily attributable to an increase in borrowings of $131.6 million, partially offset by a decrease in total deposits of $2.9 million. The Company routinely utilizes brokered deposits and borrowed funds to manage interest rate risk, the cost of interest-bearing liabilities, and funding needs related to loan originations and deposit activity.

    Deposits decreased $2.9 million, or 0.1%, to $3.88 billion at September 30, 2024 as compared to December 31, 2023. Brokered deposits decreased by $17.9 million, or 17.9%, due to maturities that were replaced by borrowings. Deposits, excluding brokered deposits, increased $15.0 million, or 0.4%. The increase in deposits, excluding brokered deposits, was primarily attributable to increases of $80.9 million in time deposits, partially offset by decreases of $14.9 million in transaction accounts, $14.7 million in savings accounts, and $36.3 million in money market accounts. Growth in time deposits was attributable to the current interest rate environment and offering competitive interest rates to attract deposits. Estimated gross uninsured deposits at September 30, 2024 were $1.71 billion. This total includes fully collateralized uninsured governmental deposits and intercompany deposits of $859.3 million, leaving estimated uninsured deposits of approximately $852.2 million, or 22.0%, of total deposits. At December 31, 2023, estimated uninsured deposits totaled $869.9 million, or 22.4% of total deposits.

    Deposit account balances are summarized as follows (dollars in thousands):

      September 30, 2024   June 30, 2024   December 31, 2023
    Transaction:          
    Non-interest bearing checking $         681,741     $         685,574     $         694,903  
    Negotiable orders of withdrawal and interest-bearing checking           1,230,176               1,251,342               1,231,943  
    Total transaction           1,911,917               1,936,916               1,926,846  
    Savings and money market:          
    Savings           911,067               916,598               925,744  
    Money market           265,800               255,550               302,122  
    Brokered money market           —               —               50,000  
    Total savings           1,176,867               1,172,148               1,277,866  
    Certificates of deposit:          
    $250,000 and under           585,606               568,809               525,454  
    Over $250,000           119,033               120,601               98,269  
    Brokered           82,146               —               50,000  
    Total certificates of deposit           786,785               689,410               673,723  
    Total deposits $         3,875,569     $         3,798,474     $         3,878,435  

    Included in the table above are business and municipal deposit account balances as follows (dollars in thousands):

      September 30, 2024   June 30, 2024   December 31, 2023
               
    Business customers $         869,990     $         866,403     $         893,296  
    Municipal (governmental) customers $         799,249     $         815,086     $         768,556  

    Borrowed funds increased to $1.05 billion at September 30, 2024, from $920.5 million at December 31, 2023. The increase in borrowings for the period was primarily due to a $205.5 million increase in borrowings under the Federal Reserve Bank Term Funding Program, which included favorable terms and conditions as compared to FHLB advances. Management utilizes borrowings to mitigate interest rate risk, for short-term liquidity, and to a lesser extent from time to time, as part of leverage strategies.

    The following table sets forth borrowing maturities (excluding overnight borrowings and subordinated debt) and the weighted average rate by year at September 30, 2024 (dollars in thousands):

    Year   Amount (1)   Weighted Average Rate
    2024   $25,000   4.71%
    2025   483,184   4.00%
    2026   148,000   4.36%
    2027   173,000   3.19%
    2028   154,288   3.96%
        $983,472   3.92%
             
    __________________________________________________
    (1) Borrowings maturing in 2025 include $300.0 million of FRB borrowings that can be repaid without any penalty.

    Total stockholders’ equity increased by $119,000 to $699.6 million at September 30, 2024, from $699.4 million at December 31, 2023. The increase was attributable to net income of $18.7 million for the nine months ended September 30, 2024, a $14.1 million increase in accumulated other comprehensive income, associated with an increase in the estimated fair value of our debt securities available-for-sale portfolio due to the increase in market interest rates, and a $1.9 million increase in equity award activity, partially offset by $18.1 million in stock repurchases and $16.5 million in dividend payments. On April 24, 2024, the Board of Directors of the Company approved a $5.0 million stock repurchase program, which was completed in May 2024, and on June 14, 2024, the Board of Directors of the Company approved a $10.0 million stock repurchase program. During the nine months ended September 30, 2024, the Company repurchased 1.8 million of its common stock outstanding at an average price of $10.03 for a total of $18.1 million pursuant to the approved stock repurchase programs. As of September 30, 2024, the Company had no remaining capacity under its current repurchase program.

    The Company’s most liquid assets are cash and cash equivalents, corporate bonds, and unpledged mortgage-related securities issued or guaranteed by the U.S. Government, Fannie Mae, or Freddie Mac, that we can either borrow against or sell. We also have the ability to surrender bank-owned life insurance contracts. The surrender of these contracts would subject the Company to income taxes and penalties for increases in the cash surrender values over the original premium payments. We also have the ability to obtain additional funding from the FHLB and Federal Reserve Bank of New York utilizing unencumbered and unpledged securities and multifamily loans. The Company expects to have sufficient funds available to meet current commitments in the normal course of business. The Company’s on-hand liquidity ratio as of September 30, 2024 was 16.4%.

    The Company had the following primary sources of liquidity at September 30, 2024 (dollars in thousands): 

    Cash and cash equivalents(1) $ 218,733
    Corporate bonds(2) $ 104,633
    Multifamily loans(2) $ 699,343
    Mortgage-backed securities (issued or guaranteed by the U.S. Government, Fannie Mae, or Freddie Mac)(2) $ 491,985
       
    __________________________________________________
    (1) Excludes $14.2 million of cash at Northfield Bank.
    (2) Represents estimated remaining borrowing potential.

    The Company and the Bank utilize the Community Bank Leverage Ratio (“CBLR”) framework. The CBLR replaces the risk-based and leverage capital requirements in the generally applicable capital rules. At September 30, 2024, the Company and the Bank’s estimated CBLR ratios were 12.03% and 12.26%, respectively, which exceeded the minimum requirement to be considered well-capitalized of 9%.

    Asset Quality

    The following table details total non-accrual loans (excluding PCD), non-performing assets, loans over 90 days delinquent on which interest is accruing, and accruing loans 30 to 89 days delinquent at September 30, 2024, June 30, 2024, and December 31, 2023 (dollars in thousands):

      September 30, 2024   June 30, 2024   December 31, 2023
    Non-accrual loans:          
    Held-for-investment          
    Real estate loans:          
    Multifamily $         2,651       $         2,691       $         2,709    
    Commercial           8,823                 10,244                 6,491    
    One-to-four family residential           66                 69                 104    
    Home equity and lines of credit           1,123                 1,124                 499    
    Commercial and industrial           15,117                 2,570                 305    
    Other           6                 6                 7    
    Total non-accrual loans           27,786                 16,704                 10,115    
    Loans delinquent 90 days or more and still accruing:          
    Held-for-investment          
    Real estate loans:          
    Multifamily           —                 —                 201    
    Commercial           1,161                 —                 —    
    One-to-four family residential           304                 136                 406    
    Home equity and lines of credit           343                 467                 711    
    Commercial and industrial           835                 —                 —    
    Total loans held-for-investment delinquent 90 days or more and still accruing           2,643                 603                 1,318    
    Total non-performing loans/assets $         30,429       $         17,307       $         11,433    
    Non-performing loans to total loans           0.75   %             0.42   %             0.27   %
    Non-performing assets to total assets           0.53   %             0.30   %             0.20   %
    Accruing loans 30 to 89 days delinquent $         16,057       $         6,265       $         8,683    

    The Company’s non-performing loans at September 30, 2024 totaled $30.4 million, or 0.75%, of total loans as compared to $11.4 million, or 0.27%, at December 31, 2023. The $19.0 million increase in non-performing loans was primarily attributable to an increase in non-performing commercial and industrial loans of $15.6 million and an increase of $3.5 million in non-performing commercial real estate loans. One commercial and industrial relationship with an outstanding balance of $12.5 million at September 30, 2024, experienced credit deterioration and was placed on non-accrual status during the third quarter of 2024. The loan is currently in the process of being restructured and we expect to receive a partial payment of $10.0 million on or before October 31, 2024, with the remaining $2.5 million to be repaid over three years. The loan was individually evaluated for impairment, we charged off $878,000 and provided a specific reserve of $1.3 million. Additionally, management evaluated the collateral from the Company and assets subject to personal guarantees and, based on current estimates, believes there is adequate collateral and assets to support the current value of the loan absent the expected repayment of $10.0 million. Another commercial and industrial relationship with an outstanding balance of $750,000 is in the process of maturity extension. Additionally, there was an increase in non-performing unsecured small business loans. Unsecured small business loans totaled $31.0 million and $37.4 million at September 30, 2024 and December 31, 2023, respectively. Management continues to closely monitor the small business unsecured commercial and industrial loan portfolio.

    The increase in non-performing commercial real estate loans was primarily attributable to one loan with a balance of $4.4 million, which was put on non-accrual status during the first quarter of 2024. Based on the results of the impairment analysis for this loan, no impairment reserve was necessary as the loan is adequately covered by collateral (a private residence and retail property, both located in New Jersey), with aggregate appraised values totaling $8.7 million.

    Accruing Loans 30 to 89 Days Delinquent

    Loans 30 to 89 days delinquent and on accrual status totaled $16.1 million, $6.3 million and $8.7 million at September 30, 2024, June 30, 2024, and December 31, 2023, respectively. The following table sets forth delinquencies for accruing loans by type and by amount at September 30, 2024, June 30, 2024, and December 31, 2023 (dollars in thousands):
      

      September 30, 2024   June 30, 2024   December 31, 2023
    Held-for-investment          
    Real estate loans:          
    Multifamily $         2,259     $         168     $         740  
    Commercial           5,689               1,557               1,010  
    One-to-four family residential           2,286               1,769               3,339  
    Home equity and lines of credit           1,369               786               817  
    Commercial and industrial loans           4,450               1,977               2,767  
    Other loans           4               8               10  
    Total delinquent accruing loans held-for-investment $         16,057     $         6,265     $         8,683  

    The increase in multifamily delinquent loans was primarily due to two relationships totaling $1.5 million that became current subsequent to September 30, 2024. The increase in commercial real estate delinquent loans was primarily due to two participation loans totaling $5.6 million that matured, and the lead bank is in the process of extending their maturity and should become current in the fourth quarter of 2024. The increase in commercial and industrial delinquent loans from December 31, 2023, was primarily due to two loans to one borrower totaling $1.5 million which we expect to become current in the fourth quarter of 2024, and, to a lesser extent, an increase in delinquencies in unsecured small business loans.

    Subsequent to the quarter end, $1.1 million of home equity and lines of credit loans, $1.5 million of one-to-four family residential loans, and $1.5 million of commercial and industrial loans became current.

    PCD Loans (Held-for-Investment)

    The Company accounts for PCD loans at estimated fair value using discounted expected future cash flows deemed to be collectible on the date acquired. Based on its detailed review of PCD loans and experience in loan workouts, management believes it has a reasonable expectation about the amount and timing of future cash flows and accordingly has classified PCD loans ($9.3 million at September 30, 2024 and $9.9 million at December 31, 2023, respectively) as accruing, even though they may be contractually past due. At September 30, 2024, 2.1% of PCD loans were past due 30 to 89 days, and 24.6% were past due 90 days or more, as compared to 2.9% and 27.1%, respectively, at December 31, 2023.

    Our multifamily loan portfolio at September 30, 2024 totaled $2.64 billion, or 65% of our total loan portfolio, of which $447.5 million, or 11%, included loans collateralized by properties in New York with units subject to some percentage of rent regulation. The table below sets forth details about our multifamily loan portfolio in New York (dollars in thousands).

    % Rent Regulated   Balance   % Portfolio Total NY Multifamily Portfolio   Average Balance   Largest Loan   LTV*   Debt Service Coverage Ratio (DSCR)*   30-89 Days Delinquent   Non-Accrual   Special Mention   Substandard
    0   $         286,728             39.1   %   $         1,166     $         16,603     51.0%   1.57x   $         1,709     $         534     $         782     $         874  
    >0-10             4,745             0.7                 1,582               2,128     51.4   1.46             —               —               —               —  
    >10-20             18,681             2.5                 1,437               2,865     49.2   1.59             —               —               —               —  
    >20-30             19,585             2.7                 2,176               5,512     54.1   1.64             —               —               —               —  
    >30-40             15,183             2.1                 1,265               3,088     48.3   1.63             —               —               —               —  
    >40-50             22,208             3.0                 1,306               2,740     48.2   1.84             —               —               —               —  
    >50-60             9,452             1.3                 1,575               2,341     39.9   2.03             —               —               —               —  
    >60-70             19,201             2.6                 3,200               11,339     53.0   1.46             —               —               —               —  
    >70-80             22,405             3.1                 2,489               4,914     48.0   1.53             —               —               —               —  
    >80-90             20,820             2.8                 1,157               3,148     46.6   1.71             —               —               —               —  
    >90-100             295,256             40.1                 1,779               16,909     52.6   1.65             —               2,117               1,204               4,482  
    Total   $         734,264     100.0   %   $         1,454     $         16,909     51.2%   1.62x   $         1,709     $         2,651     $         1,986     $         5,356  

    The table below sets forth our New York rent-regulated loans by county (dollars in thousands).

    County   Balance   LTV*   DSCR*
    Bronx   $         118,400     51.7%   1.64x
    Kings             191,745     51.5%   1.66
    Nassau             2,176     36.2%   1.88
    New York             49,871     47.3%   1.64
    Queens             38,864     44.3%   1.81
    Richmond             28,790     60.6%   1.64
    Westchester             17,689     61.8%   1.37
    Total   $         447,535     51.4%   1.65x
                 
    * Weighted Average

    None of the loans that are rent-regulated in New York are interest only. During the remainder of 2024, one loan with an aggregate principal balance of $1.8 million will re-price.

    About Northfield Bank

    Northfield Bank, founded in 1887, operates 38 full-service banking offices in Staten Island and Brooklyn, New York, and Hunterdon, Middlesex, Mercer, and Union counties, New Jersey. For more information about Northfield Bank, please visit www.eNorthfield.com.

    Forward-Looking Statements: This release may contain certain “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and may be identified by the use of such words as “may,” “believe,” “expect,” “anticipate,” “should,” “plan,” “estimate,” “predict,” “continue,” and “potential” or the negative of these terms or other comparable terminology. Examples of forward-looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of Northfield Bancorp, Inc. Any or all of the forward-looking statements in this release and in any other public statements made by Northfield Bancorp, Inc. may turn out to be wrong. They can be affected by inaccurate assumptions Northfield Bancorp, Inc. might make or by known or unknown risks and uncertainties as described in our SEC filings, including, but not limited to, those related to general economic conditions, particularly in the market areas in which the Company operates, changes in liquidity, the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio, competition among depository and other financial institutions, including with respect to fees and interest rates, changes in laws or government regulations or policies affecting financial institutions, including changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, changes in asset quality, prepayment speeds, charge-offs and/or credit loss provisions, our ability to access cost-effective funding, changes in the value of our goodwill or other intangible assets, changes in regulatory fees, assessments and capital requirements, inflation and changes in the interest rate environment that reduce our margins, reduce the fair value of financial instruments or reduce our ability to originate loans, cyber security and fraud risks against our information technology and those of our third-party providers and vendors, the effects of war, conflict, and acts of terrorism, our ability to successfully integrate acquired entities, adverse changes in the securities markets, and the effects of the COVID-19 pandemic. Consequently, no forward-looking statement can be guaranteed. Northfield Bancorp, Inc. does not intend to update any of the forward-looking statements after the date of this release, or conform these statements to actual events.

     
    (Tables follow)
     
    NORTHFIELD BANCORP, INC.
    SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA
    (Dollars in thousands, except per share amounts) (unaudited)
                   
                  At or For the
      At or For the Three Months Ended   Nine Months Ended
      September 30,   June 30   September 30,
      2024   2023   2024   2024   2023
    Selected Financial Ratios:                  
    Performance Ratios (1)                  
    Return on assets (ratio of net income to average total assets)         0.46   %           0.59   %           0.41   %           0.43   %           0.71   %
    Return on equity (ratio of net income to average equity)         3.74               4.74               3.45               3.59               5.69    
    Average equity to average total assets         12.24               12.49               12.00               12.09               12.44    
    Interest rate spread         1.42               1.69               1.44               1.42               1.91    
    Net interest margin         2.08               2.25               2.09               2.07               2.41    
    Efficiency ratio (2)         64.07               64.65               72.89               69.44               60.06    
    Non-interest expense to average total assets         1.43               1.49               1.60               1.53               1.50    
    Non-interest expense to average total interest-earning assets         1.50               1.56               1.68               1.60               1.57    
    Average interest-earning assets to average interest-bearing liabilities         128.75               132.21               128.47               128.63               133.66    
    Asset Quality Ratios:                  
    Non-performing assets to total assets         0.53               0.19               0.30               0.53               0.19    
    Non-performing loans (3) to total loans (4)         0.75               0.24               0.42               0.75               0.24    
    Allowance for credit losses to non-performing loans         115.67               378.67               200.96               115.67               378.67    
    Allowance for credit losses to total loans held-for-investment, net (5)         0.87               0.91               0.85               0.87               0.91    
    (1) Annualized where appropriate.
    (2) The efficiency ratio represents non-interest expense divided by the sum of net interest income and non-interest income.
    (3) Non-performing loans consist of non-accruing loans and loans 90 days or more past due and still accruing (excluding PCD loans), and are included in total loans held-for-investment, net.
    (4) Includes originated loans held-for-investment, PCD loans, acquired loans and loans held-for-sale.
    (5) Includes originated loans held-for-investment, PCD loans, and acquired loans.
     
    NORTHFIELD BANCORP, INC.
    CONSOLIDATED BALANCE SHEETS
    (Dollars in thousands, except share and per share amounts) (unaudited)
     
      September 30, 2024   June 30, 2024   December 31, 2023
    ASSETS:          
    Cash and due from banks $         14,193     $         14,575     $         13,889  
    Interest-bearing deposits in other financial institutions           218,733               138,914               215,617  
    Total cash and cash equivalents           232,926               153,489               229,506  
    Trading securities           13,759               12,939               12,549  
    Debt securities available-for-sale, at estimated fair value           1,063,486               1,119,439               795,464  
    Debt securities held-to-maturity, at amortized cost           9,681               9,749               9,866  
    Equity securities           10,699               13,964               10,629  
    Loans held-for-sale           4,897               —               —  
    Loans held-for-investment, net           4,059,106               4,091,220               4,203,654  
    Allowance for credit losses           (35,197 )             (34,780 )             (37,535 )
    Net loans held-for-investment           4,023,909               4,056,440               4,166,119  
    Accrued interest receivable           19,299               19,343               18,491  
    Bank-owned life insurance           174,482               173,483               171,543  
    Federal Home Loan Bank of New York stock, at cost           37,269               41,785               39,667  
    Operating lease right-of-use assets           28,943               29,305               30,202  
    Premises and equipment, net           22,973               23,628               24,771  
    Goodwill           41,012               41,012               41,012  
    Other assets           47,516               51,785               48,577  
    Total assets $         5,730,851     $         5,746,361     $         5,598,396  
               
    LIABILITIES AND STOCKHOLDERS’ EQUITY:          
    LIABILITIES:          
    Deposits $         3,875,569     $         3,798,474     $         3,878,435  
    Securities sold under agreements to repurchase           —               —               25,000  
    Federal Home Loan Bank advances and other borrowings           990,871               1,089,727               834,272  
    Subordinated debentures, net of issuance costs           61,386               61,331               61,219  
    Lease liabilities           33,529               34,035               35,205  
    Advance payments by borrowers for taxes and insurance           22,492               26,113               25,102  
    Accrued expenses and other liabilities           47,440               43,657               39,718  
    Total liabilities           5,031,287               5,053,337               4,898,951  
               
    STOCKHOLDERS’ EQUITY:          
    Total stockholders’ equity           699,564               693,024               699,445  
    Total liabilities and stockholders’ equity $         5,730,851     $         5,746,361     $         5,598,396  
               
    Total shares outstanding           42,904,342               43,466,961               44,524,929  
    Tangible book value per share (1) $         15.35     $         15.00     $         14.78  
    (1) Tangible book value per share is calculated based on total stockholders’ equity, excluding intangible assets (goodwill and core deposit intangibles), divided by total shares outstanding as of the balance sheet date. Core deposit intangibles were $90, $111, and $154 at September 30, 2024, June 30, 2024, and December 31, 2023, respectively, and are included in other assets.
     
    NORTHFIELD BANCORP, INC.
    CONSOLIDATED STATEMENTS OF INCOME
    (Dollars in thousands, except share and per share amounts) (unaudited)
     
      For the Three Months Ended   For the Nine Months Ended
      September 30,   June 30,   September 30,
        2024       2023       2024       2024       2023  
    Interest income:                  
    Loans $         46,016     $         46,213     $         45,967     $         138,030     $         135,220  
    Mortgage-backed securities           8,493               3,664               7,355               20,246               11,170  
    Other securities           2,684               1,095               3,506               10,031               3,593  
    Federal Home Loan Bank of New York dividends           914               933               935               2,819               2,125  
    Deposits in other financial institutions           1,211               831               2,457               7,060               2,225  
    Total interest income           59,318               52,736               60,220               178,186               154,333  
    Interest expense:                  
    Deposits           20,304               13,614               20,664               60,241               31,918  
    Borrowings           9,949               8,593               10,041               30,653               24,182  
    Subordinated debt           836               837               828               2,492               2,484  
    Total interest expense           31,089               23,044               31,533               93,386               58,584  
    Net interest income           28,229               29,692               28,687               84,800               95,749  
    Provision/(benefit) for credit losses           2,542               188               (618 )             2,339               1,082  
    Net interest income after (benefit)/provision for credit losses           25,687               29,504               29,305               82,461               94,667  
    Non-interest income:                  
    Fees and service charges for customer services           1,611               1,317               1,570               4,796               4,006  
    Income on bank-owned life insurance           999               920               976               2,939               2,679  
    (Losses)/gains on available-for-sale debt securities, net           (7 )             —               1               (6 )             (17 )
    Gains/(losses) on trading securities, net           710               (295 )             188               1,597               723  
    Gain on sale of loans           —               99               51               51               134  
    Other           265               80               73               441               744  
    Total non-interest income           3,578               2,121               2,859               9,818               8,269  
    Non-interest expense:                  
    Compensation and employee benefits           11,424               10,920               13,388               37,577               34,310  
    Occupancy           3,030               3,416               3,222               9,805               10,032  
    Furniture and equipment           450               479               477               1,411               1,393  
    Data processing           1,780               1,994               2,177               6,104               6,308  
    Professional fees           943               883               681               2,433               2,622  
    Advertising           282               414               482               1,282               1,834  
    Federal Deposit Insurance Corporation insurance           626               591               649               1,863               1,763  
    Credit loss expense/(benefit) for off-balance sheet exposures           151               160               103               337               (390 )
    Other           1,692               1,710               1,814               4,891               4,598  
    Total non-interest expense           20,378               20,567               22,993               65,703               62,470  
    Income before income tax expense           8,887               11,058               9,171               26,576               40,466  
    Income tax expense           2,364               2,877               3,214               7,882               11,019  
    Net income $         6,523     $         8,181     $         5,957     $         18,694     $         29,447  
    Net income per common share:                  
    Basic $         0.16     $         0.19     $         0.14     $         0.45     $         0.67  
    Diluted $         0.16     $         0.19     $         0.14     $         0.45     $         0.67  
    Basic average shares outstanding           41,028,213               42,866,246               41,999,541               41,794,149               43,848,873  
    Diluted average shares outstanding           41,088,637               42,918,174               42,002,650               41,829,230               43,927,350  
     
    NORTHFIELD BANCORP, INC.
    ANALYSIS OF NET INTEREST INCOME
    (Dollars in thousands) (unaudited)
     
      For the Three Months Ended
      September 30, 2024   June 30, 2024   September 30, 2023
      Average Outstanding Balance   Interest   Average Yield/ Rate (1)   Average Outstanding Balance   Interest   Average Yield/ Rate (1)   Average Outstanding Balance   Interest   Average Yield/ Rate (1)
    Interest-earning assets:                                  
    Loans (2) $         4,079,974     $         46,016             4.49   %   $         4,128,105     $         45,967             4.48   %   $         4,252,752     $         46,213             4.31   %
    Mortgage-backed securities (3)           901,042               8,493             3.75                 824,498               7,355             3.59                 660,753               3,664             2.20    
    Other securities (3)           273,312               2,684             3.91                 333,855               3,506             4.22                 209,341               1,095             2.08    
    Federal Home Loan Bank of New York stock           38,044               914             9.56                 38,707               935             9.72                 41,278               933             8.97    
    Interest-earning deposits in financial institutions           99,837               1,211             4.83                 191,470               2,457             5.16                 73,005               831             4.52    
    Total interest-earning assets           5,392,209               59,318             4.38                 5,516,635               60,220             4.39                 5,237,129               52,736             4.00    
    Non-interest-earning assets           275,342                       265,702                       248,315          
    Total assets $         5,667,551             $         5,782,337             $         5,485,444          
                                       
    Interest-bearing liabilities:                                  
    Savings, NOW, and money market accounts $         2,417,725     $         12,717             2.09   %   $         2,490,372     $         13,183             2.13   %   $         2,408,218     $         8,865             1.46   %
    Certificates of deposit           700,763               7,587             4.31                 701,272               7,481             4.29                 551,904               4,749             3.41    
    Total interest-bearing deposits           3,118,488               20,304             2.59                 3,191,644               20,664             2.60                 2,960,122               13,614             1.82    
    Borrowed funds           1,008,338               9,949             3.93                 1,041,035               10,041             3.88                 939,922               8,593             3.63    
    Subordinated debt           61,350               836             5.42                 61,294               828             5.43                 61,127               837             5.43    
    Total interest-bearing liabilities           4,188,176               31,089             2.95                 4,293,973               31,533             2.95                 3,961,171               23,044             2.31    
    Non-interest bearing deposits           683,283                       691,384                       739,266          
    Accrued expenses and other liabilities           102,233                       103,082                       100,103          
    Total liabilities           4,973,692                       5,088,439                       4,800,540          
    Stockholders’ equity           693,859                       693,898                       684,904          
    Total liabilities and stockholders’ equity $         5,667,551             $         5,782,337             $         5,485,444          
                                       
    Net interest income     $         28,229             $         28,687             $         29,692      
    Net interest rate spread (4)                 1.42   %                   1.44   %                   1.69   %
    Net interest-earning assets (5) $         1,204,033             $         1,222,662             $         1,275,958          
    Net interest margin (6)                 2.08   %                   2.09   %                   2.25   %
    Average interest-earning assets to interest-bearing liabilities                 128.75   %                   128.47   %                   132.21   %
    (1) Average yields and rates are annualized.
    (2) Includes non-accruing loans.
    (3) Securities available-for-sale and other securities are reported at amortized cost.
    (4) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
    (5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
    (6) Net interest margin represents net interest income divided by average total interest-earning assets.
       
      For the Nine Months Ended
      September 30, 2024   September 30, 2023
      Average Outstanding Balance   Interest   Average Yield/ Rate (1)   Average Outstanding Balance   Interest   Average Yield/ Rate (1)
    Interest-earning assets:                      
    Loans (2) $         4,127,409     $         138,030             4.47   %   $         4,260,827     $         135,220             4.24   %
    Mortgage-backed securities (3)           791,850               20,246             3.42                 703,320               11,170             2.12    
    Other securities (3)           332,831               10,031             4.03                 241,280               3,593             1.99    
    Federal Home Loan Bank of New York stock           38,781               2,819             9.71                 41,093               2,125             6.91    
    Interest-earning deposits in financial institutions           184,420               7,060             5.11                 72,683               2,225             4.09    
    Total interest-earning assets           5,475,291               178,186             4.35                 5,319,203               154,333             3.88    
    Non-interest-earning assets           269,180                       244,319          
    Total assets $         5,744,471             $         5,563,522          
                           
    Interest-bearing liabilities:                      
    Savings, NOW, and money market accounts $         2,457,320     $         38,231             2.08   %   $         2,443,400     $         19,194             1.05   %
    Certificates of deposit           685,510               22,010             4.29                 572,283               12,724             2.97    
    Total interest-bearing deposits           3,142,830               60,241             2.56                 3,015,683               31,918             1.42    
    Borrowed funds           1,052,589               30,653             3.89                 902,802               24,182             3.58    
    Subordinated debt           61,294               2,492             5.43                 61,164               2,484             5.43    
    Total interest-bearing liabilities $         4,256,713               93,386             2.93       $         3,979,649               58,584             1.97    
    Non-interest bearing deposits           691,406                       788,991          
    Accrued expenses and other liabilities           101,639                       102,765          
    Total liabilities           5,049,758                       4,871,405          
    Stockholders’ equity           694,713                       692,117          
    Total liabilities and stockholders’ equity $         5,744,471             $         5,563,522          
                           
    Net interest income     $         84,800             $         95,749      
    Net interest rate spread (4)                 1.42   %                   1.91   %
    Net interest-earning assets (5) $         1,218,578             $         1,339,554          
    Net interest margin (6)                 2.07   %                   2.41   %
    Average interest-earning assets to interest-bearing liabilities                 128.63   %                   133.66   %
    (1) Average yields and rates are annualized. 
    (2) Includes non-accruing loans. 
    (3) Securities available-for-sale and other securities are reported at amortized cost.
    (4) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
    (5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
    (6) Net interest margin represents net interest income divided by average total interest-earning assets.

    Company Contact:
    William R. Jacobs
    Chief Financial Officer
    Tel: (732) 499-7200 ext. 2519

    The MIL Network –

  • MIL-OSI United Kingdom: New data laws unveiled to improve public services and boost UK economy by £10 billion

    Source: United Kingdom – Executive Government & Departments

    New Bill to unlock the secure and effective use of data for the public interest has been introduced into Parliament.

    • New government Bill will unlock the power of data to grow the economy and improve people’s lives
    • Measures will free up 1.5 million hours of police time and 140,000 NHS staff hours every year, potentially saving lives
    • The legislation will also support the creation of a national map of the UK’s underground infrastructure, reducing excavation accidents causing traffic jams and safety hazards on our streets

    A new Bill which will harness the enormous power of data to boost the UK economy by £10 billion, and free up millions of police and NHS staff hours has been introduced to Parliament today (Wednesday 23rd October).

    The Data Use and Access Bill will unlock the secure and effective use of data for the public interest, without adding pressures to the country’s finances. The measures will be central to delivering three of the five Missions to rebuild Britain, set out by the Prime Minister:

    • kickstarting economic growth
    • taking back our streets
    • and building an NHS fit for the future

    Some of its key measures include cutting down on bureaucracy for our police officers, so that they can focus on tackling crime rather than being bogged down by admin, freeing up 1.5 million hours of their time a year. It will also make patients’ data easily transferable across the NHS so that frontline staff can make better informed decisions for patients more quickly, freeing up 140,000 hours of NHS staff time every year, speeding up care and improving patients’ health outcomes.

    The better use of data under measures in the Bill will also simplify important tasks such as renting a flat and starting work with trusted ways to verify your identity online, or enabling electronic registration of births and deaths, so that people and businesses can get on with their lives without unnecessary admin.

    Vital safeguards will remain in place to track and monitor how personal data is used, giving peace of mind to patients and victims of crime. IT systems in the NHS operate to the highest standards of security and all organisations have governance arrangements in place to ensure the safe, legal storage and use of data. 

    Technology Secretary Peter Kyle said:

    Data is the DNA of modern life and quietly drives every aspect of our society and economy without us even noticing – from our NHS treatments and social interactions to our business and banking transactions.  

    It has the enormous potential to make our lives better, boosting our National Health Service, cutting costs when we shop, and saving us valuable time.

    With laws that help us to use data securely and effectively, this Bill will help us boost the UK’s economy, free up vital time for our front-line workers, and relieve people from unnecessary admin so that they can get on with their lives.

    The Bill, delivered by the Department for Science, Innovation, and Technology, has three core objectives: growing the economy, improving UK public services, and making people’s lives easier. The measures will be underpinned by a revamped Information Commissioner’s Office, the UK’s independent authority responsible for regulating data protection and privacy laws, with a new structure and powers of enforcement – ensuring people’s personal data will be protected to high standards.

    Improving public services

    The Bill will unlock the power of data to relieve front-line workers in the NHS and police forces across the country from bureaucracy and enable them to better serve the public.  

    Police officers across the country will benefit from measures that will remove unnecessary manual logging requirements whenever accessing personal data to work on a case, for example every time an officer needs to look up a suspect or person of interest on the police database, freeing up to 1.5 million hours of valuable police time for our officers, so that they can be on the streets fighting crime rather than being bogged down by admin. This will help save around £42.8 million in taxpayers’ money every year.

    The legislation will also ensure that healthcare information – like a patient’s pre-existing conditions, appointments and tests – can easily be accessed in real time across all NHS trusts, GP surgeries and ambulance services, no matter what IT system they are using. It will require IT suppliers for the health and care sector to ensure their systems meet common standards to enable data sharing across platforms. The measure will free up 140,000 hours in NHS staff time every year, providing quicker care for patients and potentially saving lives.

    Health and Social Care Secretary Wes Streeting said:

    The NHS is broken, but imagine its enormous potential if each part of the system communicated properly with each other.

    That starts with sharing vital medical records between healthcare providers, because it shouldn’t be the patient’s responsibility to join the dots for their doctor.

    How can a GP diagnose a problem without knowing about someone’s recent hospital surgery?

    This Bill and our Ten Year Health Plan will ensure important data flows safely and securely through the NHS, freeing up staff time and speeding up patient care.

    I know people worry about Big Brother, which is why data will only be shared to the most relevant staff and anybody using data must comply with strict security protocols.

    Minister for Crime, Policing and Fire, Dame Diana Johnson said:

    It is vital police officers are able to dedicate their time to protecting the public on the beat, not in the office.

    Freeing up this valuable resource will see more officers out on our streets, making a real difference in fighting and solving crime.

    As part of our mission to make streets safer, this government will bring back neighbourhood policing, ensuring thousands of additional police and community officers are out patrolling our towns and communities.

    Vin Diwakar, National Director of Transformation at NHS England, said:

    This Bill is a significant step in creating a more responsive and efficient healthcare system. As an NHS doctor myself, I know it is vital that NHS staff have quicker access to more accurate and comprehensive data, giving them more face-to-face time with patients who need it most.

    These changes will lay the foundations for patient information to flow safely, securely and seamlessly, which will improve clinical outcomes, make decision-making more informed and speed up the delivery of care. By simply using data more efficiently, we can save time and money, and create a modern, digital NHS that continues to improve care for patients.

    Growing the economy

    The Bill is expected to generate approximately £10 billion towards the UK economy across ten years by legislating on data sharing to generate a host of benefits for both consumers and businesses.   

    Delivering on a key government manifesto commitment, the Bill will create the right conditions to support the future of open banking and the growth of new smart data schemes, models which allow consumers and businesses who want to safely share information about them with regulated and authorised third parties, to generate personalised market comparisons and financial advice to cut costs.

    This will pave the way for the model to expand in sectors such as energy, which could give customers the ability to compare utility prices, find better deals, and reduce their energy use, as well as foster tech innovation and boost competition, which will ultimately grow the UK economy. This potential has already been demonstrated in open banking, where 82 firms alone have raised over £2 billion of private funding and created over 4,800 skilled jobs in the financial year 2022-2023.

    The Bill will also help reduce the risk of accidents on underground water and energy pipes and broadband cables, which currently amount to 60,000 every year and cause prolonged disruption of roadworks and access to key amenities like energy and broadband to homes.

    The National Underground Asset Register (NUAR) will be put on a statutory footing, mandating that owners of underground infrastructure, such as water companies or telecoms operators, register their assets on the NUAR, which is a complete map of underground pipes and cables.

    The use of the Register will mean that companies will know exactly where any underground asset is placed, reducing the risk of accidents on pipes and cables, making construction safer for workers and reducing the disruption – and hazards – caused by holes being dug up in the streets. This will generate approximately £400 million a year, boost construction and tackle accidental damage currently costing the economy £2.4 billion a year.

    Davey Stobbart, Water Networks Regional Manager, Northumbrian Water:

    Our field crews have found the way information is presented in NUAR to be more useful than anything they have seen or used before.  It has reduced the time taken for crews to understand what lies below the ground where they are about to dig.  

    In the field, we frequently find the precise point of excavation needs to be made not-quite where our office-based planners predicted and previously in this case the job would have been delayed whilst a new plan pack was prepared.  Now with NUAR, our crews are simply able to pan and zoom to that point instantly, seeing everything they would have seen on all those individual plans without the back-office cottage industry and without these delays.  In fact, they will be seeing more because we’re now able to easily access information from local authorities through NUAR too, such as street lighting, highways gulleys and tree preservation orders all in one place. 

    We have found NUAR to be a great additional tool in the toolbox to help us reduce the likelihood of high potential utility strikes.

    Making people’s lives easier

    The rules proposed in the Bill will make Britons’ day-to-day lives easier, by simplifying important tasks such as renting a flat, starting work, or registering births and deaths, so that people and businesses can get on with their lives rather than being bogged down by admin.

    The Bill will legislate on digital verification services, meaning companies who provide tools for verifying identities will be able to get certified against the government’s stringent trust framework of standards, and receive a ‘trust mark’ to use as a result. As well as increasing trust in the market, these efficiency gains will boost the UK economy by £4.3 billion over the next decade. 

    The trust mark will be a new logo to show digital verification services are approved by the new Office for Digital Identities and Attributes (OfDIA) within Department for Science, Innovation and Technology (DSIT).

    The Bill will help make sure digital verification services are inclusive, secure and privacy-preserving, and will make it easier for people to know which services they can trust.

    The Data Bill will pave the way towards modernising the registration of deaths in England and Wales from a paper-based system to an electronic birth and death register – in turn supporting people at one of the most challenging times in life. The new law will enable registrations, which are required by local authorities, to be carried out over the phone, removing the need for face-to-face registration while retaining that choice.

    Access to data for research into online safety

    The Bill will also boost the UK’s approach to tackling online harms through a power to create a researcher data access regime.

    This will support researchers in accessing data held by online platforms so they can conduct robust and independent research into online safety trends. The move will boost transparency and evidence on the scale of online harms and the measures which are effective in tackling them. 

    Further details on the specific measures can be found below:

    DSIT media enquiries

    Email press@dsit.gov.uk

    Monday to Friday, 8:30am to 6pm 020 7215 300

    Updates to this page

    Published 24 October 2024

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: Historic visit by UK Prime Minister paves way for closer economic ties for the Commonwealth

    Source: United Kingdom – Executive Government & Departments

    The Commonwealth has a once in a generation chance to be a driving force for opportunity and growth in an increasingly contested world, the Prime Minister is set to say on a landmark visit to the Pacific this week.

    • Prime Minister to make the case that the Commonwealth has a once in a generation chance to be a driving force for opportunity and growth during visit to Samoa 

    • New UK Trade Centre of Expertise set to bolster economic ties across the grouping and unlock markets for UK businesses  

    • Keir Starmer makes history as first ever sitting UK Prime Minister to visit a Pacific Island country

    The Commonwealth has a once in a generation chance to be a driving force for opportunity and growth in an increasingly contested world, the Prime Minister is set to say on a landmark visit to the Pacific this week.  

    It comes as the government uses its foreign policy agenda to deliver for people at home, working with partners across the globe on issues such as climate change, growth and energy security. 

    Keir Starmer will arrive in Samoa for the Commonwealth Heads of Government Meeting today [Thursday 24 October], joining 55 other Commonwealth delegations to discuss the shared challenges and opportunities faced by its members.  

    In doing so, he will make history as the first UK Prime Minister to ever visit a Pacific Island country.   

    The Prime Minister will use the trip to make the case that Commonwealth countries, no matter where they are in the world, need resilient and thriving economies to face the global challenges of the day.  

    And he will tell delegates that he believes the Commonwealth offers a unique opportunity to be able to build those economies, combining major traditional markets with rapidly growing economies and resilient, innovative communities.  

    By 2027, the Commonwealth is expected be home to six of the world’s ten fastest-growing economies – Guyana, Rwanda, Bangladesh, Uganda, India and Mozambique – and have a combined GDP exceeding $19.5 trillion, while more than 60% of the grouping’s 2.5 billion population will be under 30. 

    The Commonwealth, which includes some of the UK’s biggest trading partners such as India, Canada, Australia, Singapore and South Africa, already accounts for 9% of total UK trade, worth £164 billion in 2023. And its members benefit from a 21% average reduction in bilateral trade costs, as well as higher investment flows between Commonwealth members.  

    As part of the visit, the Prime Minister will announce a new UK Trade Centre of Expertise, operating out of the Foreign Office, to drive export-led growth across the grouping. Trade specialists will provide technical and practical assistance to developing countries to help them access and compete in global markets.  

    In turn, the partnership is expected to help UK businesses tap into some of the fastest growing economies in the world, such as Uganda and Bangladesh through strengthened economic ties. Over the long term, the project will also aim to lift economies out of poverty, reducing pressure on UK Aid and British taxpayers. 

    The Prime Minister is also expected to meet business leaders during CHOGM, as part of his personal campaign to drive investment into every corner of the United Kingdom. 

    The meeting, which will include business leaders such as Brian Moynihan, chairman and CEO of Bank of America, and John Neal, CEO of Lloyd’s of London, comes just 10 days after the UK hosted the International Investment Summit, which drove £63 billion of private investment and 38,000 jobs into the UK. 

    Prime Minister Keir Starmer said: 

    We have a once-in-a-generation opportunity to fix the foundations and change our country’s story to turn around the lives of everyday people in the UK, but we can’t do that with a protectionist approach.

    Under this government’s pragmatic and sensible approach, we must harness the opportunities to work with genuine partners – like our Commonwealth family – across the world to build resilient economies that offer real opportunity for our people, whether that is accessing untapped markets, or collaborating on grassroots innovations.

    The combined GDP of the Commonwealth is expected to exceed $19.5 trillion in the next three years, we cannot let that economic heft go to waste.

    Alongside the Commonwealth Secretary General, the Foreign Secretary is expected to convene Commonwealth foreign ministers to launch a new Commonwealth Investment Plan of Action to mobilise investment across the membership. 

    The plan will focus on small and vulnerable economies, easing barriers to trade and investment. The Foreign Secretary will also launch two new trade hubs to help female entrepreneurs in India and Sri Lanka access global markets.   

    Foreign Secretary David Lammy said: 

    The Commonwealth is a unique forum encompassing 56 countries and a third of the world’s population brought together through shared history and friendship.

    Representing some of the world’s fastest growing economies, forging stronger ties with these markets is crucial for delivering jobs and economic growth.

    This government is reconnecting Britain in the world and building partnerships that will unlock greater prosperity for all.

    During the three-day CHOGM summit, leaders will discuss some of the pressing issues facing Commonwealth nations, including climate change, education and democracy.  

    On Friday, the Prime Minister is expected to attend a lunch, hosted by the King for new heads of government, before attending two Commonwealth executive sessions, and the heads of government dinner.

    Updates to this page

    Published 24 October 2024

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: Only purchase safe and legal e-bikes: new Government safety campaign urges public

    Source: United Kingdom – Executive Government & Departments

    A new safety campaign to raise awareness about the dangers of buying faulty and unsafe e-bikes, e-scooters and components such as batteries has been launched

    Campaign image for DBT’s Buy Safe, Be Safe campaign

    • New campaign urges public to buy safe e-bikes and e-scooters and avoid rogue online sellers
    • E-bike and e-scooter causing fires every two days according to London Fire Brigade
    • New Product Regulation Bill beginning work to tackle dangerous goods sold online

    A new safety campaign to raise awareness about the dangers of buying faulty and unsafe e-bikes, e-scooters and components such as batteries has been launched today (Thursday 24 October).

    The Department for Business & Trade’s new “Buy Safe, Be Safe” campaign has been designed to urge the public to buy safe e-bikes and e-scooters and avoid rogue online sellers.

    E-bikes can be a cheap, healthy and modern method of travel throughout our towns and cities. However, unsafe e-bikes have resulted in hundreds of deadly fires and injured dozens of people across the UK. In 2023, the London Fire Brigade a fire every two days as a result of e-bike and e-scooter-related fires.

    Many of these fires are caused by parts incompatible with e-bikes and scooters, as well as the purchase of defective or poorly manufactured parts sold by rogue online sellers.

    The campaign focuses on three key areas encouraging consumers to only buy safe products from reputable sellers, only replace items with products recommended by the manufacturer and finally to seek professional help when converting or repairing e-bikes and e-scooters.

    The Department is partnering with retailers, manufacturers as well as online marketplaces, trade associations, consumer groups and businesses to promote the campaign. Find out more about the campaign here.

    Product Safety Minister Justin Madders said:

    E-bikes can be a great way to travel around the city, but we’ve all seen the tragic stories of unsafe e-bikes and e-scooters causing dangerous fires and taking lives.

    That’s why we’re urging everyone to check what you’re buying, check where you’re buying it from and ensure it’s safe to use.

    Local Transport Minister Simon Lightwood said:

    E-bikes have transformed our urban areas by giving people an accessible and healthy way to travel, but this is being ruined by a handful of untrustworthy online retailers.

    These rogue sellers not only risk bringing defective and dangerous batteries into people’s homes, but undermine confidence in active travel as a whole.

    That’s why I’m delighted that we are launching this campaign to make sure that people have peace of mind buying e-bikes and e-scooters from reliable sources.

    Under current laws, e-scooters are banned on public land from use except in Government rental trial areas, while e-bikes are legal to use across the country but must not exceed an output of 250 watts or travel faster than 15.5 mph.

    The public can expect to see an ongoing social media campaign including how-to video guides, as well as information materials being made available for retailers to use in stores and online to support consumers.  

    The campaign comes off the back of wider efforts to tackle dangerous goods being sold in online marketplaces. In September, the Government unveiled the new Product Regulation and Metrology Bill aimed at allowing the UK to take charge of its product regulations, boosting consumer safety and helping to further grow the economy.

    The Bill will also address the sharp rise in safety concerns around e-bikes and lithium-ion batteries and how they are sold via online marketplaces. The Bill will enable Government to better protect consumers who have for too long been at the mercy of unscrupulous suppliers, holding sellers and the online marketplaces to account if they fail to meet their responsibilities.

    And it will ensure products sold online or placed on the UK market are safe, while enabling market enforcement officials to clamp down on the sale of the product or the sellers where they are not.

    London Fire Brigade’s Assistant Commissioner for Prevention and Protection, Craig Carter, said:

    E-bikes and e-scooters are a green and sustainable way to travel around our city. However, e-bikes and e-scooters can pose a significant fire risk and particularly the batteries used to power them have become one of London’s fastest-growing fire risks. They have destroyed homes and families have sadly lost loved ones in these fires.

    From our investigations, we know many of the fires we’ve attended have involved second-hand vehicles or the bike has been modified using parts bought online.

    At this time, there is not the same level of regulation of products for e-bikes and e-scooters sold via online marketplaces or auction sites when compared to high street shops, so we cannot be confident that products meet the correct safety standard. We understand that people are trying to save money, but if you spot a deal that looks too be good to be true, it probably is.

    Halfords Head of Quality, Chris Hall, said:

    E-bikes offer numerous benefits for a healthier, greener commute. When e-bikes are purchased from reputable retailers, they’re properly certified and safe to use. Our priority is to ensure that everyone can enjoy the benefits of e-bikes without compromising on safety. The fire safety issues we’ve seen are linked to poorly manufactured, uncertified products typically bought online, as well as the use of incompatible components.

    Lesley Rudd, chief executive of consumer safety charity, Electrical Safety First said:

    E-bikes, e-scooters and their batteries are generally safe when purchased from reputable manufacturers and used correctly. However, poor-quality products – often sold via online marketplaces – improper charging, or misuse can cause ferocious fires and pose a serious risk to the buyer. Safety starts with where you shop. Sticking to reputable sellers will provide confidence that your e-bike is safe and manufactured to a high standard.

    It’s equally as important to ensure you use a charger that is designed to be compatible with your battery to avoid the risk of overcharging which may destabilise the battery and lead to a fire. We also urge consumers considering converting their push bike into e-bike to source a high-quality kit and that it is installed by a competent professional.”  

    Inga Becker-Hansen, Product Safety Advisor at the BRC, said:

    The popularity of e-bikes and e-scooters has greatly increased the number on our streets and in our homes. These products provide a convenient method of transport for many of us. However, consumers should ensure they purchase from reputable and responsible retailers, who will ensure that appropriate batteries are used and all necessary safety standards are met. We urge the public to follow government guidance and take appropriate storage and maintenance measures to ensure the safety and longevity of their purchases.

    Find full details about the ‘Buy Safe, Be Safe’ campaign here

    For our information on buying safely, how to store your product safely and best practice for charging, you can also find more information from the London Fire Brigade’s #ChargeSafe campaign.

    Updates to this page

    Published 24 October 2024

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: Northern Ireland’s innovators encouraged to apply for Horizon

    Source: United Kingdom – Executive Government & Departments

    The best of Northern Ireland’s research and development (R&D) sector will be on display in Lisburn today (Thursday 24 October) as part of a push to support bids for Horizon funding. 

    • Top innovators arrive in Lisburn to share their experience in applying for and receiving Horizon Europe funding in the hope of encouraging more successful bids 
    • Researchers, scientists and businesses based in Northern Ireland get the opportunity to network with potential collaboration partners and receive advice for their Horizon Europe applications.  
    • UK Government pushes more innovators from Northern Ireland to apply for Horizon Europe funding and realise their research ambitions – from new treatments to improved digital infrastructure. 

    The best of Northern Ireland’s R&D sector will be on display in Lisburn today (Thursday 24 October), as top researchers, scientists and businesses gather under one roof to exchange ideas and network with potential partners for the next successful bids for Horizon Europe funding. 

    Horizon Europe is the largest research collaboration programme in the world, worth over £80 billion. Through the UK’s association, researchers, innovators and businesses from up and down Northern Ireland can apply for funding grants that will help researchers fund projects across all sectors from health, to clean energy, to digital infrastructure.  

    Getting backing for their ideas could put the UK at the forefront of the next generation of technologies, which will be the foundations of the jobs and businesses of the future. Over £81 million was awarded to projects in Northern Ireland through its predecessor, Horizon 2020, so we know the opportunities are there. 

    The roadshow gives researchers and innovative businesses at all stages of their career from Northern Ireland the chance to speak to those who have been through the process of bidding for Horizon funding, gain support for their applications, and connect with likeminded innovators. This will highlight the opportunities available to both public and private sectors wanting to realise their research ambitions.  

    UK Science Minister, Lord Vallance said:  

    The discoveries and innovations on display in Lisburn today demonstrate the potential that researchers in Northern Ireland have to make the most of the UK’s association to Horizon. Their ideas are already attracting investment, driving  partnerships between some of the brightest minds from Europe, New Zealand, Canada and more.  

    With more successful bids for Horizon funding, researchers from the public and private sector in Northern Ireland could come up with the solutions we need to kickstart economic growth and improve living standards.

    Department for Science, Innovation and Technology Chief Scientific Advisor, Professor Chris Johnson said:

    Having made Northern Ireland my home and working at one of its great universities, I know what the brilliant minds here are capable of, and I am pleased to be here today to hear of the ambitious projects that have already been brought to life thanks to funding from Horizon. This roadshow is a great opportunity for researchers, scientists and businesses in the region to hear from innovators who have been through the application process and succeeded.  

    We want more researchers based in Northern Ireland to seize the benefits of Horizon Europe, to accelerate the discoveries that will boost our economy, and deliver new technologies that will improve all our lives.

    A litany of Northern Irish R&D projects received backing through Horizon’s predecessor, Horizon 2020. One example is the EYE-RISK project, a collaborative effort between a group of researchers based at Queen’s University Belfast (QUB) and several leading research centres around Europe to find a cure for Age-Related Macular Degeneration (AMD). AMD is a progressive and currently incurable disease leading to declining sight that progresses to the irreversible loss of vision. 

    The EYE-RISK team published many milestone papers and reviews, and the project is still considered as a flagship programme in Ophthalmology which focuses on the diagnosis and treatment of eye disorders. The researchers developed a computational model of potential risks, physiological activities, hazards, and the impact of aging on patients with AMD which can serve as the basis for future research initiatives. 

    Imre Lengyel and Tunde Peto, project leaders for EYE-RISK:

    The EYE-RISK project embedded the QUB ophthalmology cluster amongst the leading teams in Europe and gave us a leading edge worldwide. The academics and the early career scientists involved in this project have been given an excellent opportunity to be involved in breakthrough research and develop professional and personal friendships.

    An array of speakers from across government, including the Chief Scientific Advisors from both the UK Department of Science, Innovation and Technology (DSIT) and from the Northern Ireland Executive, are attending the roadshow. The roadshow which has been brought together in a collaboration between DSIT, Innovate UK, the Northern Ireland Government and Enterprise Northern Ireland.  

    Northern Ireland is already playing a big role in tackling the challenges facing the UK today, from driving cybersecurity through to seizing the opportunities of our push towards net zero. Queen’s University Belfast’s Centre for Advanced Sustainable Energy is looking at ways we can build the UK as a net zero superpower, supported by £4.5 million from the Northern Ireland Executive. Grants awarded through the Horizon Europe programme could allow researchers to discover more in this area and ultimately help us protect our planet. 

    Innovative companies are increasingly making Northern Ireland their home. Recently, ASOS set up a £14 million tech hub that will create over 180 jobs in the coming years.  

    The roadshow in Northern Ireland is the latest event in a series of roadshows, following 2 previous sessions in Birmingham and Glasgow, building on a range of campaign efforts to get more businesses, researchers and academics to make the most of the benefits we can grasp from our association to the world-leading programme. 

    Backing the science and technology sectors is a central if we are to achieve the missions of this new government. The discoveries and solutions that researchers bidding for Horizon funding can produce will help us improve the daily lives of people across the UK – from transforming our NHS and transport systems so that they are fit for the future to securing more funding that will help us rebuild our economy.  

    We know from recent history that the UK can be a leader in this area. We have 4 of the top 10 universities in the world, and the second-highest number of Nobel prize winners. A quarter of projects in which the UK participated, funded through Horizon’s predecessor, were UK led. 

    Further information, including practical support on how to apply, is available on Innovate UK’s website and UK Research and Innovation (UKRI) also host regular events that help guide businesses and researchers through the opportunities on offer and the application process. 

    Potential applicants can find Horizon Europe calls (funding opportunities) open to UK-based applicants using the European Commission’s funding and tender opportunities portal. They can apply for Horizon Europe funding through the European Commission’s funding and tenders portal, where the original funding call is found. More information on how to submit applications are available on the European Commission’s website. 

    NOTES TO EDITORS 

    The EYE-RISK project aimed to pinpoint who is at risk of developing the condition, and why loss of vision progresses in patients with the disease. This understanding is an important first step towards better diagnosis and treatment of the condition.

    Updates to this page

    Published 24 October 2024

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: Press release: Historic visit by UK Prime Minister paves way for closer economic ties for the Commonwealth

    Source: United Kingdom – Prime Minister’s Office 10 Downing Street

    The Commonwealth has a once in a generation chance to be a driving force for opportunity and growth in an increasingly contested world, the Prime Minister is set to say on a landmark visit to the Pacific this week.

    • Prime Minister to make the case that the Commonwealth has a once in a generation chance to be a driving force for opportunity and growth during visit to Samoa 

    • New UK Trade Centre of Expertise set to bolster economic ties across the grouping and unlock markets for UK businesses  

    • Keir Starmer makes history as first ever sitting UK Prime Minister to visit a Pacific Island country

    The Commonwealth has a once in a generation chance to be a driving force for opportunity and growth in an increasingly contested world, the Prime Minister is set to say on a landmark visit to the Pacific this week.  

    It comes as the government uses its foreign policy agenda to deliver for people at home, working with partners across the globe on issues such as climate change, growth and energy security. 

    Keir Starmer will arrive in Samoa for the Commonwealth Heads of Government Meeting today [Thursday 24 October], joining 55 other Commonwealth delegations to discuss the shared challenges and opportunities faced by its members.  

    In doing so, he will make history as the first UK Prime Minister to ever visit a Pacific Island country.   

    The Prime Minister will use the trip to make the case that Commonwealth countries, no matter where they are in the world, need resilient and thriving economies to face the global challenges of the day.  

    And he will tell delegates that he believes the Commonwealth offers a unique opportunity to be able to build those economies, combining major traditional markets with rapidly growing economies and resilient, innovative communities.  

    By 2027, the Commonwealth is expected be home to six of the world’s ten fastest-growing economies – Guyana, Rwanda, Bangladesh, Uganda, India and Mozambique – and have a combined GDP exceeding $19.5 trillion, while more than 60% of the grouping’s 2.5 billion population will be under 30. 

    The Commonwealth, which includes some of the UK’s biggest trading partners such as India, Canada, Australia, Singapore and South Africa, already accounts for 9% of total UK trade, worth £164 billion in 2023. And its members benefit from a 21% average reduction in bilateral trade costs, as well as higher investment flows between Commonwealth members.  

    As part of the visit, the Prime Minister will announce a new UK Trade Centre of Expertise, operating out of the Foreign Office, to drive export-led growth across the grouping. Trade specialists will provide technical and practical assistance to developing countries to help them access and compete in global markets.  

    In turn, the partnership is expected to help UK businesses tap into some of the fastest growing economies in the world, such as Uganda and Bangladesh through strengthened economic ties. Over the long term, the project will also aim to lift economies out of poverty, reducing pressure on UK Aid and British taxpayers. 

    The Prime Minister is also expected to meet business leaders during CHOGM, as part of his personal campaign to drive investment into every corner of the United Kingdom. 

    The meeting, which will include business leaders such as Brian Moynihan, chairman and CEO of Bank of America, and John Neal, CEO of Lloyd’s of London, comes just 10 days after the UK hosted the International Investment Summit, which drove £63 billion of private investment and 38,000 jobs into the UK. 

    Prime Minister Keir Starmer said: 

    We have a once-in-a-generation opportunity to fix the foundations and change our country’s story to turn around the lives of everyday people in the UK, but we can’t do that with a protectionist approach.

    Under this government’s pragmatic and sensible approach, we must harness the opportunities to work with genuine partners – like our Commonwealth family – across the world to build resilient economies that offer real opportunity for our people, whether that is accessing untapped markets, or collaborating on grassroots innovations.

    The combined GDP of the Commonwealth is expected to exceed $19.5 trillion in the next three years, we cannot let that economic heft go to waste.

    Alongside the Commonwealth Secretary General, the Foreign Secretary is expected to convene Commonwealth foreign ministers to launch a new Commonwealth Investment Plan of Action to mobilise investment across the membership. 

    The plan will focus on small and vulnerable economies, easing barriers to trade and investment. The Foreign Secretary will also launch two new trade hubs to help female entrepreneurs in India and Sri Lanka access global markets.   

    Foreign Secretary David Lammy said: 

    The Commonwealth is a unique forum encompassing 56 countries and a third of the world’s population brought together through shared history and friendship.

    Representing some of the world’s fastest growing economies, forging stronger ties with these markets is crucial for delivering jobs and economic growth.

    This government is reconnecting Britain in the world and building partnerships that will unlock greater prosperity for all.

    During the three-day CHOGM summit, leaders will discuss some of the pressing issues facing Commonwealth nations, including climate change, education and democracy.  

    On Friday, the Prime Minister is expected to attend a lunch, hosted by the King for new heads of government, before attending two Commonwealth executive sessions, and the heads of government dinner.

    Updates to this page

    Published 24 October 2024

    MIL OSI United Kingdom –

  • MIL-OSI New Zealand: $100m NZ-Brazil trade boost through 13 key partnerships

    Source: New Zealand Government

    Minister for Trade Todd McClay, today announced the signing of 13 Memorandums of Understanding (MOUs) between New Zealand and Brazilian companies as part of the New Zealand Trade Mission to São Paulo this week.
    “These partnerships mark a significant step in strengthening the trade relationship between the two nations and are set to generate over $100 million in revenue over the next three years,” Mr McClay says.
    “This will boost our economy and contribute towards achieving the ambitious target of doubling trade by value in 10 years.
    “These MOU’s will continue to increase market access to Latin America and deepen our people-to-people connections, while also contributing to Brazil’s economic growth. This is a win-win for both countries.
    The 13 MOUs signed today cover a broad range of sectors, including technology, healthcare, advanced manufacturing, and education, showcasing New Zealand’s diverse offerings and Brazil’s growing interest in Kiwi expertise.
    The MOUs include:

    New Zealand Brazil Business Council (NZBBC) and NZBBC Brazil – Establishing the NZBBC office in Brazil to foster further business ties.
     AD Instruments and UNESP Jaboticabal – Supplying telemetry technology to universities in São Paulo.
     AD Instruments and ANIMA Educacao – Renewing educational technology in ANIMA Group’s medical schools.
    Foot Science and IMPEC – Partnering to distribute Foot Science’s products across Brazil.
     Framecad and Placlux – Providing advanced construction technology to the InovaSteel Group.
     Framecad and Steel Corp – Delivering two Framecad systems to Steel Corp for further innovation in building systems.
     Gallagher Animal Management and D&Q Law – Launching Gallagher’s animal management operations in Brazil.
     Les Mills and Brazilian Trainer – Introducing Les Mills Pilates classes across Brazil.
    Loadscan and ASBZ – Expanding Loadscan’s presence with a new Brazilian entity.
    MindHive and ASBZ – Establishing MindHive’s Brazilian office to drive innovation and collaborative solutions.
    MindHive and JBS – Establishing MindHive’s technology in JBS processing.
    AROA and Nexgeen – Enhancing healthcare services with Nexgeen, a key healthcare provider in Brazil.
    Tait Communications and Santos Futebol Clube – Supplying communication systems to Santos Futebol ClubAROA and Nexgeen – Enhancing healthcare services with Nexgeen, a key healthcare provider in Brazil.

    “These partnership agreements highlight the importance of trade missions in driving collaboration and underscore the Government’s commitment to enhancing opportunities for innovation, trade, and shared prosperity.”

    MIL OSI New Zealand News –

  • MIL-OSI USA: Asheville Disaster Recovery Center Moving; Temporary Centers Available to Help

    Source: US Federal Emergency Management Agency

    Headline: Asheville Disaster Recovery Center Moving; Temporary Centers Available to Help

    Asheville Disaster Recovery Center Moving; Temporary Centers Available to Help

    RALEIGH, N.C. – The Disaster Recovery Center (DRC) at A.C. Reynolds High School in Asheville will be closing 7 p.m., Oct. 24 to allow the school to open and students to resume learning. A new fixed site in Buncombe County will be announced soon.In addition to a fixed site, Mobile Disaster Recovery Centers (M-DRCs) are opening with the first on Oct. 24 to provide in-person support. M-DRCs can be found at the following locations and operational hours:Swannanoa Fire Rescue – Bee Tree Fire Sub Station510 Bee Tree Rd. Swannanoa, NC 28778Open: Oct. 24 – 27, 8 a.m. – 7 p.m. Buncombe County Sports Park (Parking Lot)58 Apac Dr. Asheville, NC 28806Open: Oct. 28 – 31, 8 a.m. – 5 p.m. A Disaster Recovery Center is a one-stop shop where survivors can meet face-to-face with FEMA representatives, apply for FEMA assistance, receive referrals to local assistance in their area, apply with the U.S. Small Business Administration (SBA) for low-interest disaster loans and much more. Centers are already open across areas affected by Helene. To find those center locations go to fema.gov/drc or text “DRC” and a zip code to 43362. You can visit any open center. No appointment is needed.  It is not necessary to go to a center to apply for FEMA assistance. The fastest way to apply is online at DisasterAssistance.gov or via the FEMA app. You may also call 800-621-3362. If you use a relay service, such as video relay, captioned telephone or other service, give FEMA your number for that service.
    krystin.ventura
    Wed, 10/23/2024 – 23:06

    MIL OSI USA News –

  • MIL-OSI: Northrim BanCorp Earns $8.8 Million, or $1.57 Per Diluted Share, in Third Quarter 2024

    Source: GlobeNewswire (MIL-OSI)

    ANCHORAGE, Alaska, Oct. 23, 2024 (GLOBE NEWSWIRE) — Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the “Company”) today reported net income of $8.8 million, or $1.57 per diluted share, in the third quarter of 2024, compared to $9.0 million, or $1.62 per diluted share, in the second quarter of 2024, and $8.4 million, or $1.48 per diluted share, in the third quarter a year ago. The increase in third quarter 2024 profitability as compared to the third quarter a year ago was primarily the result of an increase in mortgage banking income and higher net interest income, which was only partially offset by higher other operating expenses and a higher provision for credit losses.

    Dividends per share in the third quarter of 2024 increased to $0.62 per share as compared to $0.61 per share in the second quarter of 2024 and $0.60 per share in the third quarter of 2023.

    “We had strong deposit-funded loan growth in the third quarter,” said Mike Huston, Northrim’s President and Chief Executive Officer. “Deposits and loans both increased 7% from the end of the second quarter. Our deposit market share increased by 4% in the past year and by 42% in the past five years as our investments in people, expanded branch network, and differentiated service continue to attract new customers and strengthen existing relationships.”

    Third Quarter 2024 Highlights:

    • Net interest income in the third quarter of 2024 increased 7% to $28.8 million compared to $27.1 million in the second quarter of 2024 and increased 9% compared to $26.4 million in the third quarter of 2023.
    • Net interest margin on a tax equivalent basis (“NIMTE”)* was 4.35% for the third quarter of 2024, up 5-basis points from the second quarter of 2024 and up 14-basis points from the third quarter a year ago.
    • Return on average assets (“ROAA”) was 1.22% and return on average equity (“ROAE”) was 13.69% for the third quarter of 2024.
    • Portfolio loans were $2.01 billion at September 30, 2024, up 7% from the preceding quarter and up 17% from a year ago, primarily due to new customer relationships, expanding market share, and to retaining certain mortgages originated by Residential Mortgage, a subsidiary of Northrim Bank (the “Bank”), in the loan portfolio.
    • Total deposits were $2.63 billion at September 30, 2024, up 7% from the preceding quarter, and up 8% from $2.43 billion a year ago. Non-interest bearing demand deposits increased 8% from the preceding quarter and decreased slightly year-over-year to $763.6 million at September 30, 2024 and represent 29% of total deposits.
    • The average cost of interest-bearing deposits was 2.24% at September 30, 2024, up from 2.21% at June 30, 2024 and 1.75% at September 30, 2023.
    • Mortgage loan originations increased to $248.0 million in the third quarter of 2024, up from $181.5 million in the second quarter of 2024 and $153.4 million in the third quarter a year ago. Mortgage loans funded for sale were $210.0 million in the third quarter of 2024, compared to $152.3 million in the second quarter of 2024 and $131.9 million in the third quarter of 2023.
    Financial Highlights   Three Months Ended 
    (Dollars in thousands, except per share data) September 30,
    2024    		 June 30, 2024 March 31, 2024 December 31,
    2023    		 September 30,
    2023
    Total assets $2,963,392   $2,821,668 $2,759,560   $2,807,497   $2,790,189  
    Total portfolio loans $2,007,565   $1,875,907 $1,811,135   $1,789,497   $1,720,091  
    Total deposits $2,625,567   $2,463,806 $2,434,083   $2,485,055   $2,427,930  
    Total shareholders’ equity $260,050   $247,200 $239,327   $234,718   $225,259  
    Net income $8,825   $9,020 $8,199   $6,613   $8,374  
    Diluted earnings per share $1.57   $1.62 $1.48   $1.19   $1.48  
    Return on average assets   1.22 %   1.31 %   1.19 %   0.93 %   1.22 %
    Return on average shareholders’ equity   13.69 %   14.84 %   13.84 %   11.36 %   14.67 %
    NIM   4.29 %   4.24 %   4.16 %   4.06 %   4.15 %
    NIMTE*   4.35 %   4.30 %   4.22 %   4.12 %   4.21 %
    Efficiency ratio   66.11 %   68.78 %   68.93 %   72.21 %   66.64 %
    Total shareholders’ equity/total assets   8.78 %   8.76 %   8.67 %   8.36 %   8.07 %
    Tangible common equity/tangible assets*   8.28 %   8.24 %   8.14 %   7.84 %   7.54 %
    Book value per share $47.27   $44.93   $43.52   $42.57   $40.60  
    Tangible book value per share* $44.36   $42.03   $40.61   $39.68   $37.72  
    Dividends per share $0.62   $0.61   $0.61   $0.60   $0.60  
    Common stock outstanding   5,501,943     5,501,562     5,499,578     5,513,459     5,548,436  


    *     References to NIMTE, tangible book value per share, and tangible common equity to tangible common assets, (all of which exclude intangible assets) represent non-GAAP financial measures. Management has presented these non-GAAP measurements in this earnings release, because it believes these measures are useful to investors. See the end of this release for reconciliations of these non-GAAP financial measures to GAAP financial measures.

    Alaska Economic Update
    (Note: sources for information included in this section are included on page 12.)

    The Alaska Department of Labor (“DOL”) has reported Alaska’s seasonally adjusted unemployment rate in August of 2024 was 4.6% compared to the U.S. rate of 4.2%. The total number of payroll jobs in Alaska, not including uniformed military, increased 1.8% or 6,400 jobs between August of 2023 and August of 2024.

    According to the DOL, the Construction sector had the largest growth in new jobs through August compared to the prior year. The Construction sector added 2,600 positions for a year over year growth rate of 12.9% between August of 2023 and 2024. The larger Health Care sector grew by 2,000 jobs for an annual growth rate of 4.9% over the same period. The Oil & Gas sector increased by 6.5% or 500 new direct jobs. Professional and Business Services added 1,000 jobs year over year through August of 2024, up 3.4%. The Government sector grew by 700 jobs for 0.9% growth, adding 500 Federal jobs and 200 Local government positions in Alaska. The only sectors to decline between August 2023 and August 2024 were Manufacturing (primarily seafood processing) shrinking 1,300 positions and Information, down 200 jobs.

    Alaska’s Gross State Product (“GSP”) in the second quarter of 2024, was estimated to be $69.8 billion in current dollars, according to the Federal Bureau of Economic Analysis (“BEA”). Alaska’s inflation adjusted “real” GSP increased 6.5% in 2023, placing Alaska fifth best of all 50 states. However, in the second quarter of 2024 Alaska decreased at an annualized rate of 1.1%, compared to the average U.S. growth rate of 3%. Alaska’s real GSP decline in the second quarter of 2024 was primarily caused by a slowdown in the Mining, Oil & Gas; and Transportation and Warehousing sectors.

    The BEA also calculated Alaska’s seasonally adjusted personal income at $55.4 billion in the second quarter of 2024. This was an annualized improvement of 4% for Alaska, compared to the national average of 5.3%.

    The monthly average price of Alaska North Slope (“ANS”) crude oil was at an annual high of $89.05 in April of 2024 and averaged $74.06 in September of this year. The Alaska Department of Revenue (“DOR”) calculated ANS crude oil production was 479 thousand barrels per day (“bpd”) in Alaska’s fiscal year ending June 30, 2023 and declined to 461 thousand bpd in Alaska’s fiscal year 2024. Starting in fiscal year 2025 it is projected to grow to 477 thousand bpd. The DOR projects the number to grow rapidly and reach 640 thousand bpd by fiscal year 2033. This is primarily a result of new production coming on-line in and around the NPR-A region west of Prudhoe Bay.

    According to the Alaska Multiple Listing Services, the average sales price of a single family home in Anchorage rose 5.2% in 2023 to $480,207, following a 7.6% increase in 2022. This was the sixth consecutive year of price increases.   In the first nine months of 2024 the average price continues to increase 6.8% to an average sale of
    $512,815.

    The average sales price for single family homes in the Matanuska Susitna Borough rose 4% in 2023 to $397,589, after increasing 9.9% in 2022. This continues a trend of average price increases for more than a decade in the region. In the first nine months of 2024 the average sales price increased 4.6% in the Matanuska Susitna Borough to $415,709. These two markets represent where the vast majority of the Bank’s residential lending activity occurs.

    The Alaska Multiple Listing Services reported a 1.2% decrease in the number of units sold in Anchorage when comparing January to September of 2023 and 2024. There were 5.4% less homes sold in the Matanuska Susitna Borough for the same nine month time period in 2024 compared to the prior year.

    Northrim Bank sponsors the Alaskanomics blog to provide news, analysis, and commentary on Alaska’s economy. Join the conversation at Alaskanomics.com, or for more information on the Alaska economy, visit: www.northrim.com and click on the “Business Banking” link and then click “Learn.” Information from our website is not incorporated into, and does not form, a part of this earnings release.

    Review of Income Statement

    Consolidated Income Statement

    In the third quarter of 2024, Northrim generated a ROAA of 1.22% and a ROAE of 13.69%, compared to 1.31% and 14.84%, respectively, in the second quarter of 2024 and 1.22% and 14.67%, respectively, in the third quarter a year ago.

    Net Interest Income/Net Interest Margin

    Net interest income increased 7% to $28.8 million in the third quarter of 2024 compared to $27.1 million in the second quarter of 2024 and increased 9% compared to $26.4 million in the third quarter of 2023. Interest expense on deposits increased to $10.1 million in the third quarter of 2024 compared to $9.5 million in the second quarter and $7.1 million in the third quarter of 2023.

    NIMTE* was 4.35% in the third quarter of 2024 up from 4.30% in the preceding quarter and 4.21% in the third quarter a year ago. NIMTE* increased 14 basis points in the third quarter of 2024 compared to the third quarter of 2023 primarily due to a favorable change in the mix of earning-assets towards higher loan balances as a percentage of total earning-assets, higher earning-assets, and higher yields on those assets which were only partially offset by an increase in costs on interest-bearing deposits. The weighted average interest rate for new loans booked in the third quarter of 2024 was 7.24% compared to 7.90% in the second quarter of 2024 and 7.44% in the third quarter a year ago. The yield on the investment portfolio in the third quarter of 2024 decreased slightly to 2.80% from 2.82% in the second quarter of 2024 and increased from 2.43% in the third quarter of 2023. “We continue to see the benefit of new loan volume and repricing outweigh the modest increase in deposit costs in the third quarter of 2024,” said Jed Ballard, Chief Financial Officer. Northrim’s NIMTE* continues to remain above the peer average of 3.13% posted by the S&P U.S. Small Cap Bank Index with total market capitalization between $250 million and $1 billion as of June 30, 2024.

    Provision for Credit Losses

    Northrim recorded a provision for credit losses of $2.1 million in the third quarter of 2024, which was comprised of of a $325,000 provision for credit losses on unfunded commitments and a provision for credit losses on loans of $1.7 million. The provision for unfunded commitments was primarily due to an increase in unfunded commitments, as well as an increase in estimated loss rates due to changes in mix and management’s assessment of economic conditions. The increase to the provision for credit losses on loans was primarily a result of loan growth, as well as an increase in the provision for loans individually evaluated and an increase in estimated loss rates. This compares to a benefit to the provision for credit losses of $120,000 in the second quarter of 2024, and provision for credit losses of $1.2 million in the third quarter a year ago.

    Nonperforming loans, net of government guarantees, increased slightly during the quarter to $5.0 million at September 30, 2024, compared to $4.8 million at June 30, 2024, and decreased from $5.1 million at September 30, 2023.

    The allowance for credit losses on loans was 394% of nonperforming loans, net of government guarantees, at the end of the third quarter of 2024, compared to 365% three months earlier and 326% a year ago.

    Other Operating Income

    In addition to home mortgage lending, Northrim has interests in other businesses that complement its core community banking activities, including purchased receivables financing and wealth management. Other operating income contributed $11.6 million, or 29% of total third quarter 2024 revenues, as compared to $9.6 million, or 26% of revenues in the second quarter of 2024, and $8.0 million, or 23% of revenues in the third quarter of 2023. The increase in other operating income in the third quarter of 2024 as compared to the preceding quarter and the third quarter of 2023 was primarily the result of an increase in mortgage banking income due to a higher volume of mortgage activity. See further discussion regarding mortgage activity during the second quarter contained under “Home Mortgage Lending” below. The fair market value of marketable equity securities increased $576,000 in the third quarter of 2024 compared to a decrease of $60,000 in the prior quarter and an increase of $12,000 in the third quarter of 2023. The increase in other operating income in the third quarter of 2024 as compared to the third quarter a year ago was due primarily to an increase in mortgage banking income as a result of higher volume of mortgage activity due to our expansion in Arizona, Colorado, and the Pacific Northwest markets, as well as an increase in fair value of marketable equity securities.

    Other Operating Expenses

    Operating expenses were $26.7 million in the third quarter of 2024, compared to $25.2 million in the second quarter of 2024, and $22.9 million in the third quarter of 2023. The increase in other operating expenses in the third quarter of 2024 compared to the second quarter of 2024 was primarily due to an increase in salaries and other personnel expense, including $653,000 in mortgage commissions expense due to higher mortgage volume and a $979,000 increase in profit share expense, which was partially offset by a $836,000 decrease in medical claims expense. The increase in other operating expenses in the third quarter of 2024 compared to a year ago was primarily due to an increase in salaries and other personnel expense, as well as an increase in OREO expense due to a gain on sale recorded in the third quarter of 2023 for proceeds received related to a government guarantee on an OREO property sold in December 2022.

    Income Tax Provision

    In the third quarter of 2024, Northrim recorded $2.8 million in state and federal income tax expense for an effective tax rate of 24.2%, compared to $2.5 million, or 21.9% in the second quarter of 2024 and $1.9 million, or 18.4% in the third quarter a year ago. The increase in the tax rate in the third quarter of 2024 as compared to the third quarter of 2023 is primarily the result of a decrease in tax credits and tax exempt interest income as a percentage of pre-tax income in 2024 as compared to 2023.

    Community Banking

    In the most recent deposit market share data from the FDIC, Northrim’s deposit market share in Alaska increased to 15.66% of Alaska’s total deposits as of June 30, 2024 compared to 15.04% of Alaska’s total deposits as of June 30, 2023. This represents 62 basis points of growth in market share percentage for Northrim during that period while, according to the FDIC, the total deposits in Alaska were up 2.3% during the same period. Northrim opened a branch in Kodiak in the first quarter of 2023, a loan production office in Homer in the second quarter of 2023, a permanent branch in Nome in the third quarter of 2023, and a branch in Homer in the first quarter of 2024. See below for further discussion regarding the Company’s deposit movement for the quarter.

    Northrim is committed to meeting the needs of the diverse communities in which it operates. As a testament to that support, the Bank has branches in four regions of Alaska identified by the Federal Reserve as ‘distressed or underserved non-metropolitan middle-income geographies’.

    Net interest income in the Community Banking segment totaled $25.9 million in the third quarter of 2024, compared to $24.3 million in the second quarter of 2024 and $24.1 million in the third quarter of 2023. Net interest income increased 7% in the third quarter of 2024 as compared to the second quarter of 2024 mostly due to higher interest income on loans. This increase was only partially offset by higher interest expense on deposits and borrowings and lower interest income on portfolio investments.

    Other operating expenses in the Community Banking segment totaled $19.1 million in the third quarter of 2024, up $588,000 or 3% from $18.5 million in the second quarter of 2024, and up $2.1 million or 13% from $16.9 million in the third quarter a year ago. The increase in the third quarter of 2024 as compared to the prior quarter was mostly due to an increases in salaries and other personnel expense, marketing expense, and professional fees. The increase in the third quarter of 2024 as compared to the third quarter a year ago was primarily due to an increase in OREO expense due to a gain on sale recorded in the third quarter of 2023 for proceeds received related to a government guarantee on an OREO property sold in December 2022, as well as increases in salaries and other personnel expense and marketing expense.

    The following tables provide highlights of the Community Banking segment of Northrim:

      Three Months Ended
      September   March 31, December September
    (Dollars in thousands, except per share data) 30, 2024 June 30, 2024   2024   31, 2023   30, 2023
    Net interest income $25,901 $24,278 $24,215 $24,456 $24,050
    (Benefit) provision for credit losses 1,492 (184)   197   885   1,190
    Other operating income 4,540 3,693   3,813   4,048   3,597
    Other operating expense 19,085 18,497   17,552   18,516   16,946
    Income before provision for income taxes 9,864 9,658   10,279   9,103   9,511
    Provision for income taxes 2,316 2,004   2,242   1,941   1,709
    Net income $7,548 $7,654 $8,037 $7,162 $7,802
    Weighted average shares outstanding, diluted 5,583,055 5,558,580   5,554,930   5,578,491   5,624,906
    Diluted earnings per share $1.34 $1.37 $1.45 $1.29 $1.39
      Year-to-date
    (Dollars in thousands, except per share data) September
    30, 2024    		 September
    30, 2023
    Net interest income $ 74,394 $ 71,502
    Provision for credit losses   1,505   2,957
    Other operating income   12,046   9,564
    Other operating expense   55,134   52,168
    Income before provision for income taxes   29,801   25,941
    Provision for income taxes   6,562   5,216
    Net income Community Banking segment $ 23,239 $ 20,725
    Weighted average shares outstanding, diluted   5,574,135   5,688,687
    Diluted earnings per share $ 4.16 $ 3.64

    Home Mortgage Lending

    During the third quarter of 2024, mortgage loans funded for sale increased to $210.0 million, compared to $152.3 million in the second quarter of 2024, and $131.9 million in the third quarter of 2023.

    During the third quarter of 2024, the Bank purchased Residential Mortgage-originated loans of $38.1 million of which roughly two-thirds were jumbos and one-third were mortgages for second homes, with a weighted average interest rate of 6.59%, up from $29.2 million and 6.82% in the second quarter of 2024, and up from $21.6 million and 6.60% in the third quarter of 2023. The increase in mortgage loans funded for investment has increased net interest income in the Home Mortgage Lending segment. Net interest income contributed $2.9 million to total revenue in the third quarter of 2024, up from $2.8 million in the prior quarter, and up from $2.3 million in the third quarter a year ago.

    The Arizona, Colorado, and the Pacific Northwest mortgage expansion markets were responsible for 20% of Residential Mortgage’s $248 million total production in the third quarter of 2024, 22% of $182 million total production in the second quarter of 2024, and 8% of $153 million total production in the third quarter of 2023.

    The net change in fair value of mortgage servicing rights decreased mortgage banking income by $968,000 during the third quarter of 2024 compared to a decrease of $81,000 for the second quarter of 2024 and a decrease of $310,000 for the third quarter of 2023. Mortgage servicing revenue increased to $2.6 million in the third quarter of 2024 from $2.2 million in the prior quarter and from $2.4 million in the third quarter of 2023 due to an increase in production of Alaska Housing Finance Corporation (AHFC) mortgages, which contribute to servicing revenues at origination. In the third quarter of 2024, the Company’s servicing portfolio increased $64.8 million, which included $87.3 million in new mortgage loans, net of amortization and payoffs of $22.5 million as compared to a net increase of $41.8 million in the second quarter of 2024 and $58.2 million in the third quarter of 2023.

    As of September 30, 2024, Northrim serviced 4,187 loans in its $1.17 billion home-mortgage-servicing portfolio, a 6% increase compared to the $1.10 billion serviced as of the end of the second quarter of 2024, and a 19% increase from the $982.1 million serviced a year ago.

    The following tables provide highlights of the Home Mortgage Lending segment of Northrim:

      Three Months Ended  
        September       March 31,     December     September  
    (Dollars in thousands, except per share data)   30, 2024   June 30, 2024   2024     31, 2023     30, 2023  
    Mortgage commitments $77,591   $88,006   $56,208   $22,926   $50,128  
    Mortgage loans funded for sale $209,960   $152,339   $84,324   $79,742   $131,863  
    Mortgage loans funded for investment   38,087     29,175     17,403     27,114     21,585  
    Total mortgage loans funded $248,047   $181,514   $101,727   $106,856   $153,448  
    Mortgage loan refinances to total fundings   6 %   6 %   4 %   4 %   5 %
    Mortgage loans serviced for others $1,166,585   $1,101,800   $1,060,007   $1,044,516   $982,098  
    Net realized gains on mortgage loans sold $5,079   $3,188   $1,980   $1,462   $2,491  
    Change in fair value of mortgage loan commitments, net   60     391     386     (296 )   (289 )
    Total production revenue   5,139     3,579     2,366     1,166     2,202  
    Mortgage servicing revenue   2,583     2,164     1,561     2,180     2,396  
    Change in fair value of mortgage servicing rights:                              
    Due to changes in model inputs of assumptions1   (566 )   239     289     (707 )   —  
    Other2   (402 )   (320 )   (314 )   (301 )   (310 )
    Total mortgage servicing revenue, net   1,615     2,083     1,536     1,172     2,086  
    Other mortgage banking revenue   293     222     129     99     117  
    Total mortgage banking income $7,047   $5,884   $4,031   $2,437   $4,405  
               
    Net interest income $2,941   $2,775   $2,232   $2,276   $2,300  
    Provision (benefit) for credit losses   571     64     (48 )   —     —  
    Mortgage banking income   7,047     5,884     4,031     2,437     4,405  
    Other operating expense   7,643     6,697     6,086     5,477     5,951  
    Income (loss) before provision for income taxes   1,774     1,898     225     (764 )   754  
    Provision (benefit) for income taxes   497     532     63     (215 )   182  
    Net income (loss) $1,277   $1,366   $162     ($549 ) $572  
    Weighted average shares outstanding, diluted   5,583,055     5,558,580     5,554,930     5,578,491     5,624,906  
    Diluted earnings per share $0.23   $0.25   $0.03     ($0.10 ) $0.09  

    1Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
    2Represents changes due to collection/realization of expected cash flows over time.

      Year-to-date
    (Dollars in thousands, except per share data) September
    30, 2024    		 September
    30, 2023
    Mortgage loans funded for sale $446,623   $296,412  
    Mortgage loans funded for investment   84,665     119,144  
    Total mortgage loans funded $531,288   $415,556  
    Mortgage loan refinances to total fundings   6 %   5 %
             
    Net realized gains on mortgage loans sold $10,247   $6,366  
    Change in fair value of mortgage loan commitments, net   837     194  
    Total production revenue   11,084     6,560  
    Mortgage servicing revenue   6,308     5,188  
    Change in fair value of mortgage servicing rights:            
    Due to changes in model inputs of assumptions1   (38 )   (215 )
    Other2   (1,036 )   (1,464 )
    Total mortgage servicing revenue, net   5,234     3,509  
    Other mortgage banking revenue   644     257  
    Total mortgage banking income $16,962   $10,326  
    Net interest income $7,948   $5,022  
    Provision for credit losses   587     —  
    Mortgage banking income   16,962     10,326  
    Other operating expense   20,426     18,020  
    Income before provision for income taxes   3,897     (2,672 )
    Provision for income taxes   1,092     (728 )
    Net (loss) income Home Mortgage Lending segment $2,805     ($1,944 )
    Weighted average shares outstanding, diluted   5,574,135     5,688,687  
    Diluted (loss) earnings per share $0.51     ($0.34 )


    1    Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
    2Represents changes due to collection/realization of expected cash flows over time.

    Balance Sheet Review

    Northrim’s total assets were $2.96 billion at September 30, 2024, up 5% from the preceding quarter and up 6% from a year ago. Northrim’s loan-to-deposit ratio was 76% at September 30, 2024, consistent with 76% at June 30, 2024,
    and up from 71% at September 30, 2023.

    At September 30, 2024, our liquid assets, investments, and loans maturing within one year were $1.07 billion and our funds available for borrowing under our existing lines of credit were $641.7 million. Given these sources of liquidity and our expectations for customer demands for cash and for our operating cash needs, we believe our sources of liquidity to be sufficient for the foreseeable future.

    Average interest-earning assets were $2.67 billion in the third quarter of 2024, up 4% from $2.57 billion in the second quarter of 2024 and up 6% from $2.52 billion in the third quarter a year ago. The average yield on interest- earning assets was 5.92% in the third quarter of 2024, up from 5.83% in the preceding quarter and 5.48% in the third quarter a year ago.

    Average investment securities decreased to $619.0 million in the third quarter of 2024, compared to $640.0 million in the second quarter of 2024 and $715.8 million in the third quarter a year ago. The average net tax equivalent yield on the securities portfolio was 2.80% for the third quarter of 2024, down from 2.82% in the preceding quarter

    and up from 2.43% in the year ago quarter. The average estimated duration of the investment portfolio at September 30, 2024, was approximately 2.3 years compared to approximately 2.8 years at September 30, 2023. As of September 30, 2024, $105.1 million of available for sale securities with a weighted average yield of 0.61% are scheduled to mature in the next six months, $73.0 million with a weighted average yield of 2.48% are scheduled to mature in six months to one year, and $177.8 million with a weighted average yield of 1.31% are scheduled to mature in the following year, representing a total of $355.9 million or 13% of earning assets that are scheduled to mature in the next 24 months.

    Total unrealized losses, net of tax, on available for sale securities decreased by $7.6 million in the third quarter of 2024 resulting in total unrealized loss, net of tax, of $7.6 million compared to $15.2 million at June 30, 2024, and $26.5 million a year ago. The average maturity of the available for sale securities with the majority of the unrealized loss is 1.3 years. Total unrealized losses on held to maturity securities were $2.1 million at September 30, 2024, compared to $3.0 million at June 30, 2024, and $4.5 million a year ago.

    Average interest bearing deposits in other banks increased to $28.4 million in the third quarter of 2024 from $17.4 million in the second quarter of 2024 and decreased from $42.3 million in the third quarter of 2023, as deposit balances increased and cash was used to fund the loan growth and provide liquidity.

    Portfolio loans were $2.01 billion at September 30, 2024, up 7% from the preceding quarter and up 17% from a year ago. Portfolio loans, excluding consumer mortgage loans, were $1.76 billion at September 30, 2024, up $105.2 million or 6% from the preceding quarter and up 14% from a year ago. This increase was diversified throughout the loan portfolio including commercial real estate nonowner-occupied and multi-family loans increasing by $33.2 million, construction loans increasing by $31.4 million, and commercial real estate owner-occupied loans increasing $29.0 million from the preceding quarter. Average portfolio loans in the third quarter of 2024 were $1.93 billion, which was up 5% from the preceding quarter and up 14% from a year ago. Yields on average portfolio loans in the third quarter of 2024 increased to 6.91% from 6.87% in the second quarter and from 6.61% in the third quarter of 2023. The increase in the yield on portfolio loans in the third quarter of 2024 compared to the second quarter of 2024 and the third quarter a year ago is primarily due to loan repricing due to the increases in interest rates and new loans booked at higher rates due to changes in the interest rate environment. The yield on new portfolio loans, excluding consumer mortgage loans, was 7.43% in the third quarter of 2024 as compared to 8.26% in the second quarter of 2024 and 7.75% in the third quarter of 2023. The drop in yields on new loan production was largely related to the large volume of new commercial real estate versus commercial loans, as noted above, as well as slightly better credit quality of the loans originated in the third quarter of 2024.

    Alaskans continue to account for substantially all of Northrim’s deposit base. Total deposits were $2.63 billion at September 30, 2024, up 7% from $2.46 billion at June 30, 2024, and up 8% from $2.43 billion a year ago. “The increase in deposits in the third quarter of 2024 were consistent with our customers’ business cycles and a result of continued acquisition of new relationships,” said Ballard. At September 30, 2024, 73% of total deposits were held in business accounts and 27% of deposit balances were held in consumer accounts. Northrim had approximately 34,000 deposit customers with an average balance of $48,000 as of September 30, 2024. Northrim had 22 customers with balances over $10 million as of September 30, 2024, which accounted for $978.4 million, or 38%, of total deposits. Demand deposits increased by 8% from the prior quarter and decreased slightly year-over-year to
    $763.6 million at September 30, 2024. Demand deposits remained consistent at 29% of total deposits at both September 30, 2024 and June 30, 2024 down from 31% of total deposits at September 30, 2023. Average interest- bearing deposits were up 4% to $1.80 billion with an average cost of 2.24% in the third quarter of 2024, compared to $1.73 billion and an average cost of 2.21% in the second quarter of 2024, and up 11% compared to $1.62 billion and an average cost of 1.75% in the third quarter of 2023. Uninsured deposits totaled $1.12 billion or 43% of total deposits as of September 30, 2024 compared to $1.1 billion or 46% of total deposits as of December 31, 2022. Since interest rates began increasing in 2022, Northrim has taken a proactive, targeted approach to increase deposit rates.

    Shareholders’ equity was $260.1 million, or $47.27 book value per share, at September 30, 2024, compared to $247.2 million, or $44.93 book value per share, at June 30, 2024 and $225.3 million, or $40.60 book value per share, a year ago. Tangible book value per share* was $44.36 at September 30, 2024, compared to $42.03 at June

    30, 2024, and $37.72 per share a year ago. The increase in shareholders’ equity in the third quarter of 2024 as compared to the second quarter of 2024 was largely the result of earnings of $8.8 million and an increase in the fair value of the available for sale securities portfolio, which increased $7.6 million, net of tax, which were only partially offset by dividends paid of $3.4 million. The Company did not repurchase any shares of common stock in the third quarter of 2024 and has 110,000 shares remaining under the current share repurchase program as of September 30, 2024. Tangible common equity to tangible assets* was 8.28% as of September 30, 2024, compared to 8.24% as of June 30, 2024 and 7.54% as of September 30, 2023. Northrim continues to maintain capital levels in excess of the requirements to be categorized as “well-capitalized” with Tier 1 Capital to Risk Adjusted Assets of 11.53% at September 30, 2024, compared to 11.68% at June 30, 2024, and 11.67% at September 30, 2023.

    Asset Quality

    Northrim believes it has a consistent lending approach throughout economic cycles, which emphasizes appropriate loan-to-value ratios, adequate debt coverage ratios, and competent management.

    Nonperforming assets (“NPAs”) net of government guarantees were $5.3 million at September 30, 2024, up from $5.1 million at June 30, 2024 and $5.2 million a year ago. Of the NPAs at September 30, 2024, $3.0 million, or 61%, are nonaccrual loans related to three commercial relationships.

    Net adversely classified loans were $6.5 million at September 30, 2024, as compared to $7.1 million at June 30, 2024, and $7.3 million a year ago. Adversely classified loans are loans that Northrim has classified as substandard, doubtful, and loss, net of government guarantees. Net loan recoveries were $96,000 in the third quarter of 2024, compared to net loan recoveries of $26,000 in the second quarter of 2024, and net loan recoveries of $96,000 in the third quarter of 2023. Additionally, Northrim had 11 loan modifications to borrowers experiencing financial difficulty totaling $3.1 million, net of government guarantees in the third quarter of 2024.

    Northrim had $127.4 million, or 6% of portfolio loans, in the Healthcare sector, $110.4 million, or 5% of portfolio loans, in the Tourism sector, $96.6 million, or 5% of portfolio loans, in the Accommodations sector, $83.6 million, or 4% of portfolio loans, in the Fishing sector, $70.6 million, or 3% of portfolio loans, in the Aviation (non-tourism) sector, $67.7 million, or 3% of portfolio loans, in the Retail sector, and $53.1 million, or 3% in the Restaurants and Breweries sector as of September 30, 2024.

    Northrim estimates that $82.0 million, or approximately 4% of portfolio loans, had direct exposure to the oil and gas industry in Alaska, as of September 30, 2024, and $1.6 million of these loans are adversely classified. As of September 30, 2024, Northrim has an additional $29.7 million in unfunded commitments to companies with direct exposure to the oil and gas industry in Alaska, and no unfunded commitments on adversely classified loans. Northrim defines direct exposure to the oil and gas sector as loans to borrowers that provide oilfield services and other companies that have been identified as significantly reliant upon activity in Alaska related to the oil and gas industry, such as lodging, equipment rental, transportation and other logistics services specific to this industry.

    About Northrim BanCorp

    Northrim BanCorp, Inc. is the parent company of Northrim Bank, an Alaska-based community bank with 20 branches in Anchorage, Eagle River, the Matanuska Valley, the Kenai Peninsula, Juneau, Fairbanks, Nome, Kodiak, Ketchikan, and Sitka, serving 90% of Alaska’s population; and an asset-based lending division in Washington; and a wholly-owned mortgage brokerage company, Residential Mortgage Holding Company, LLC. The Bank differentiates itself with its detailed knowledge of Alaska’s economy and its “Customer First Service” philosophy. Pacific Wealth Advisors, LLC is an affiliated company of Northrim BanCorp.

    www.northrim.com

    Forward-Looking Statement

    This release may contain “forward-looking statements” as that term is defined for purposes of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are, in effect, management’s attempt to predict future events, and thus are subject to various risks and uncertainties. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. All statements, other than statements of historical fact, regarding our financial position, business strategy, management’s plans and objectives for future operations are forward-looking statements. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect,” and “intend” and words or phrases of similar meaning, as they relate to Northrim and its management are intended to help identify forward-looking statements. Although we believe that management’s expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct. Forward-looking statements, are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include: potential further increases in interest rates; the value of securities held in our investment portfolio; the impact of the results of government initiatives on the regulatory landscape, natural resource extraction industries, and capital markets; the impact of declines in the value of commercial and residential real estate markets, high unemployment rates, inflationary pressures and slowdowns in economic growth; changes in banking regulation or actions by bank regulators; inflation, supply-chain constraints, and potential geopolitical instability, including the wars in Ukraine and the Middle East; financial stress on borrowers (consumers and businesses) as a result of higher rates or an uncertain economic environment; the general condition of, and changes in, the Alaska economy; our ability to maintain or expand our market share or net interest margin; the sufficiency of our provision for credit losses and the accuracy of the assumptions or estimates used in preparing our financial statements, including those related to current expected credit losses accounting guidance; our ability to maintain asset quality; our ability to implement our marketing and growth strategies; our ability to identify and address cyber-security risks, including security breaches, “denial of service attacks,” “hacking,” and identity theft; disease outbreaks; and our ability to execute our business plan. Further, actual results may be affected by competition on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy. In addition, there are risks inherent in the banking industry relating to collectability of loans and changes in interest rates. Many of these risks, as well as other risks that may have a material adverse impact on our operations and business, are identified in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and from time to time are disclosed in our other filings with the Securities and Exchange Commission. However, you should be aware that these factors are not an exhaustive list, and you should not assume these are the only factors that may cause our actual results to differ from our expectations. These forward- looking statements are made only as of the date of this release, and Northrim does not undertake any obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this release.

    References:

    https://www.bea.gov/

    http://almis.labor.state.ak.us/

    http://www.tax.alaska.gov/programs/oil/prevailing/ans.aspx

    http://www.tax.state.ak.us/

    www.mba.org

    https://www.alaskarealestate.com/MLSMember/RealEstateStatistics.aspx

    https://www.capitaliq.spglobal.com/web/client?auth=inherit&overridecdc=1&#markets/indexFinancials


    Income     Statement

    (Dollars in thousands, except per share data) Three Months Ended Year-t o-date
    (Unaudited) September 30, June 30, September 30, September 30, September 30,
        2024   2024     2023     2024     2023  
    Interest Income:                  
    Interest and fees on loans $34,863 $32,367   $29,097   $97,680   $79,104  
    Interest on portfolio investments   4,164   4,310     4,727     12,994     14,018  
    Interest on deposits in banks   389   232     584     1,459     2,901  
    Total interest income   39,416   36,909     34,408     112,133     96,023  
    Interest Expense:                            
    Interest expense on deposits   10,123   9,476     7,138     28,779     17,835  
    Interest expense on borrowings   451   380     920     1,012     1,664  
    Total interest expense   10,574   9,856     8,058     29,791     19,499  
    Net interest income   28,842   27,053     26,350     82,342     76,524  
    (Benefit) provision for credit losses   2,063   (120 )   1,190     2,092     2,957  
    Net interest income after provision for credit losses   26,779   27,173     25,160     80,250     73,567  
    Other Operating Income:                             
    Mortgage banking income   7,047   5,884     4,405     16,962     10,326  
    Bankcard fees   1,196   1,105     1,022     3,218     2,916  
    Purchased receivable income   1,033   1,242     1,180     3,620     3,175  
    Service charges on deposit accounts   605   572     550     1,726     1,512  
    Unrealized gain (loss) on marketable equity securities   576   (60 )   12     830     (445 )
    Other income   1,130   834     833     2,652     2,406  
    Total other operating income   11,587   9,577     8,002     29,008     19,890  
    Other Operating Expense:                            
    Salaries and other personnel expense   17,549   16,627     15,657     49,593     46,324  
    Data processing expense   2,618   2,601     2,589     7,878     7,321  
    Occupancy expense   1,911   1,843     1,857     5,716     5,611  
    Professional and outside services   903   726     803     2,384     2,326  
    Marketing expense   860   690     499     2,063     1,996  
    Insurance expense   596   692     640     2,067     1,844  
    OREO expense, net rental income and gains on sale   2   2     (784 )   (387 )   (766 )
    Intangible asset amortization expense   —   —     4     —     11  
    Other operating expense   2,289   2,013     1,631     6,246     5,521  
    Total other operating expense   26,728   25,194     22,896     75,560     70,188  
                                 
    Income before provision for income taxes   11,638   11,556     10,266     33,698     23,269  
    Provision for income taxes   2,813   2,536     1,892     7,654     4,488  
    Net income $8,825 $9,020   $8,374   $26,044   $18,781  
    Basic EPS $1.60 $1.64   $1.50   $4.73   $3.34  
    Diluted EPS $1.57 $1.62   $1.48   $4.67   $3.30  
    Weighted average shares outstanding, basic   5,501,943   5,500,588     5,569,238     5,500,703     5,630,948  
    Weighted average shares outstanding, diluted   5,583,055   5,558,580     5,624,906     5,574,135     5,688,687  
    Balance Sheet
    (Dollars in thousands)
    (Unaudited)    		 September 30, June 30, September 30,
        2024     2024     2023  
    Assets:            
    Cash and due from banks $42,805   $33,364   $31,276  
    Interest bearing deposits in other banks   60,071     21,058     79,952  
    Investment securities available for sale, at fair value   545,210     584,964     652,150  
    Investment securities held to maturity   36,750     36,750     36,750  
    Marketable equity securities, at fair value   12,957     12,381     10,615  
    Investment in Federal Home Loan Bank stock   4,318     4,929     6,334  
    Loans held for sale   97,937     85,926     63,151  
                       
    Portfolio loans   2,007,565     1,875,907     1,720,091  
    Allowance for credit losses, loans   (19,528 )   (17,694 )   (16,491 )
    Net portfolio loans   1,988,037     1,858,213     1,703,600  
    Purchased receivables, net   23,564     25,722     34,578  
    Mortgage servicing rights, at fair value   21,570     21,077     19,396  
    Other real estate owned, net   —     —     150  
    Premises and equipment, net   39,625     40,393     40,920  
    Lease right of use asset   7,616     8,244     9,673  
    Goodwill and intangible assets   15,967     15,967     15,973  
    Other assets   66,965     72,680     85,671  
    Total assets $2,963,392   $2,821,668   $2,790,189  
    Liabilities:            
    Demand deposits $763,595   $704,471   $764,647  
    Interest-bearing demand   979,238     906,010     875,814  
    Savings deposits   245,043     238,156     265,799  
    Money market deposits   201,821     195,159     230,814  
    Time deposits   435,870     420,010     290,856  
    Total deposits   2,625,567     2,463,806     2,427,930  
    Other borrowings   13,354     43,961     63,781  
    Junior subordinated debentures   10,310     10,310     10,310  
    Lease liability   7,635     8,269     9,673  
    Other liabilities   46,476     48,122     53,236  
    Total liabilities   2,703,342     2,574,468     2,564,930  
    Shareholders’ Equity:                  
    Total shareholders’ equity   260,050     247,200     225,259  
    Total liabilities and shareholders’ equity $2,963,392   $2,821,668   $2,790,189  

    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Composition of Portfolio Loans

        September 30,
    2024    		 June 30, 2024 March 31, 2024 December 31,
    2023    		 September 30,
    2023
      Balance % of
    total    		 Balance % of
    total    		 Balance % of
    total    		 Balance % of
    total    		 Balance % of
    total
    Commercial loans $492,414   24 % $495,781   26 % $475,220   26 % $486,057   27 % $492,145   28 %
    Commercial real estate:                    
    Owner occupied properties   412,827   20 %   383,832   20 %   372,507   20 %   368,357   20 %   359,019   21 %
    Nonowner occupied and                    
    multifamily properties   584,302   31 %   551,130   30 %   529,904   30 %   519,115   30 %   509,939   30 %
    Residential real estate:                    
    1-4 family properties                    
    secured by first liens   248,514   12 %   222,026   12 %   218,552   12 %   203,534   11 %   180,719   10 %
    1-4 family properties                    
    secured by junior liens &                    
    revolving secured by first liens   45,262   2 %   41,258   2 %   35,460   2 %   33,783   2 %   27,342   2 %
    1-4 family construction   39,794   2 %   29,510   2 %   27,751   2 %   31,239   2 %   32,374   2 %
    Construction loans   185,362   9 %   154,009   8 %   153,537   8 %   149,788   8 %   120,909   7 %
    Consumer loans   7,836   — %   6,679   — %   6,444   — %   6,180   — %   5,930   — %
    Subtotal   2,016,311       1,884,225       1,819,375       1,798,053       1,728,377    
    Unearned loan fees, net   (8,746 )     (8,318 )     (8,240 )     (8,556 )     (8,286 )  
    Total portfolio loans $2,007,565     $1,875,907     $1,811,135     $1,789,497     $1,720,091    


    Composition     of Deposits

      September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023
      Balance % of
    total    		 Balance % of
    total    		 Balance % of
    total    		 Balance % of
    total    		 Balance % of
    total
    Demand deposits $763,595 29 % $704,471 29 % $714,244 29 % $749,683 31 % $764,647 31 %
    Interest-bearing demand   979,238 37 %   906,010 36 %   889,581 37 %   927,291 37 %   875,814 36 %
    Savings deposits   245,043 9 %   238,156 10 %   246,902 10 %   255,338 10 %   265,799 11 %
    Money market deposits   201,821 8 %   195,159 8 %   209,785 9 %   221,492 9 %   230,814 10 %
    Time deposits   435,870 17 %   420,010 17 %   373,571 15 %   331,251 13 %   290,856 12 %
    Total deposits $2,625,567   $2,463,806   $2,434,083   $2,485,055   $2,427,930  

    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Asset Quality   

        September 30,
    2024     		   June 30,
    2024    		   September 30,
    2023    		  
    Nonaccrual loans $4,944   $4,830   $6,492  
    Loans 90 days past due and accruing   17   17   28  
    Total nonperforming loans   4,961   4,847   6,520  
    Nonperforming loans guaranteed by government   —   —   (1,455)  
    Net nonperforming loans   4,961   4,847   5,065  
    Other real estate owned —   —   150  
    Repossessed assets 297   297   —  
    Net nonperforming assets $5,258   $5,144   $5,215  
    Nonperforming loans, net of government guarantees / portfolio loans   0.25 %  0.26 % 0.29 %
    Nonperforming loans, net of government guarantees / portfolio loans, net of government guarantees   0.26 % 0.28 % 0.31 %
    Nonperforming assets, net of government guarantees / total assets   0.18 % 0.18 %  0.19 %
    Nonperforming assets, net of government guarantees / total assets net of government guarantees   0.19 % 0.19 %  0.19 %
    Adversely classified loans, net of government guarantees $6,503   $7,068   $7,250  
    Special mention loans, net of government guarantees $9,641   $8,902   $5,457  
    Loans 30-89 days past due and accruing, net of government guarantees / portfolio loans   0.08 % 0.03 % — % 
    Loans 30-89 days past due and accruing, net of government guarantees / portfolio loans, net of government guarantees   0.09 % 0.04 %  — %
    Allowance for credit losses / portfolio loans   0.97 %  0.94 % 0.96 %
    Allowance for credit losses / portfolio loans, net of government guarantees   1.04 %  1.01 %  1.02 %
    Allowance for credit losses / nonperforming loans, net of government guarantees   394 % 365 %  326 %
    Gross loan charge-offs for the quarter $15   $—   $91  
    Gross loan recoveries for the quarter   ($111)   ($26)   ($187)  
    Net loan (recoveries) charge-offs for the quarter   ($96)   ($26)   ($96)  
    Net loan charge-offs (recoveries) year-to-date   ($164)   ($68)   ($134)  
    Net loan charge-offs (recoveries) for the quarter / average loans, for the quarter   —  %  —  %  (0.01) % 
    Net loan charge-offs (recoveries) year-to-date / average loans, year-to-date annualized   (0.01) %  (0.01)  %  (0.01) % 
           

    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Average Balances, Yields, and Rates                

      Three Months Ended
      September 30, 2024   June 30, 2024   September 30, 2023  
      Average Balance Average
    Tax
    Equivalent
    Yield/Rate    		 Average
    Balance    		 Average
    Tax
    Equivalent
    Yield/Rate    		 Average
    Balance    		 Average
    Tax
    Equivalent
    Yield/Rate
    Assets            
    Interest bearing deposits in other banks $ 28,409   5.28 % $ 17,352   5.27 % $ 42,273   5.39 %
    Portfolio investments   619,012   2.80 %   639,980   2.82 %   715,767   2.43 %
    Loans held for sale   93,689   6.20 %   65,102   6.08 %   62,350   6.34 %
    Portfolio loans   1,933,181   6.91 %   1,845,832   6.87 %   1,695,736   6.61 %
    Total interest-earning assets   2,674,291   5.92 %   2,568,266   5.83 %   2,516,126   5.48 %
    Nonearning assets   196,266       204,509       205,770    
    Total assets $ 2,870,557     $ 2,772,775     $ 2,721,896    

    Liabilities and Shareholders’ Equity

    		            
    Interest-bearing deposits $ 1,796,107   2.24 % $ 1,725,013   2.21 % $ 1,619,478   1.75 %
    Borrowings   43,555   4.07 %   38,390   3.92 %   76,681   4.73 %
    Total interest-bearing liabilities   1,839,662   2.29 %   1,763,403   2.25 %   1,696,159   1.88 %
    Noninterest-bearing demand deposits   722,000       706,339       747,147    
    Other liabilities   52,387       58,549       52,078    
    Shareholders’ equity   256,508       244,484       226,512    
    Total liabilities and shareholders’ equity $ 2,870,557     $ 2,772,775     $ 2,721,896    
    Net spread   3.63 %   3.58 %   3.60 %
    NIM   4.29 %   4.24 %   4.15 %
    NIMTE*   4.35 %   4.30 %   4.21 %
    Cost of funds   1.64 %   1.60 %   1.31 %
    Average portfolio loans to average            
    interest-earning assets   72.29 %     71.87 %     67.39 %  
    Average portfolio loans to average total deposits   76.77 %     75.92 %     71.65 %  
    Average non-interest deposits to average            
    total deposits   28.67 %     29.05 %     31.57 %  
    Average interest-earning assets to average            
    interest-bearing liabilities   145.37 %     145.64 %     148.34 %  

    Additional Financial Information
    (Dollars in thousands) (Unaudited)

    Average Balances, Yields, and Rates        

      Year-to-date
      September 30, 2024   September 30, 2023
      Average Average
    Tax Equivalent    		   Average Average
    Tax Equivalent
    Balance Yield/Rate   Balance Yield/Rate
    Assets          
    Interest bearing deposits in other banks $35,747   5.34 %   $79,362   4.82 %
    Portfolio investments   643,221   2.82 %     723,693   2.41 %
    Loans held for sale   63,917   6.14 %     40,433   6.06 %
    Portfolio loans   1,857,756   6.85 %     1,608,293   6.46 %
    Total interest-earning assets   2,600,641   5.81 %     2,451,781   5.30 %
    Nonearning assets   200,619         192,430    
    Total assets $2,801,260       $2,644,211    

    Liabilities and Shareholders’ Equity

    		          
    Interest-bearing deposits $1,751,179   2.20 %   $1,577,308   1.51 %
    Borrowings   35,327   3.76 %     52,075   4.23 %
    Total interest-bearing liabilities   1,786,506   2.23 %     1,629,383   1.60 %
    Noninterest-bearing demand deposits   711,197         746,251    
    Other liabilities   57,097         42,596    
    Shareholders’ equity   246,460         225,981    
    Total liabilities and shareholders’ equity $2,801,260       $2,644,211    
    Net spread   3.58 %     3.70 %
    NIM   4.23 %     4.17 %
    NIMTE*   4.29 %     4.24 %
    Cost of funds   1.59 %     1.10 %
    Average portfolio loans to average interest-earning assets   71.43 %       65.60 %  
    Average portfolio loans to average total deposits   75.45 %       69.22 %  
    Average non-interest deposits to average total deposits   28.88 %       32.12 %  
    Average interest-earning assets to average interest-bearing liabilities   145.57 %       150.47 %  

    Additional Financial Information
    (Dollars in thousands, except per share data)
    (Unaudited)

    Capital Data (At quarter end)

         
                September 30, 2024       June 30, 2024   September 30, 2023
    Book value per share           $47.27   $44.93   $40.60  
    Tangible book value per share*           $44.36   $42.03   $37.72  
    Total shareholders’ equity/total assets           8.78 %  8.76 %    8.07  %
    Tangible Common Equity/Tangible Assets*           8.28 %  8.24 %    7.54  %
    Tier 1 Capital / Risk Adjusted Assets           11.53 %  11.68 %    11.67  %
    Total Capital / Risk Adjusted Assets           12.50 %  12.58 %    12.58  %
    Tier 1 Capital / Average Assets           9.08 %  9.17 %    9.02  %
    Shares outstanding           5,501,943   5,501,562     5,548,436  
    Total unrealized loss on AFS debt securities, net of income taxes           ($7,617)   ($15,197)     ($26,526 )
    Total unrealized gain on derivatives and hedging activities, net of
    income taxes    		           $863   $1,212   $1,485  
         
    Profitability Ratios    
        September 30, 
    2024    		   June 30,
    2024    		   March 31, 
    2024    		   December 31, 2023   September 30,
    2023

    For the quarter:

    		    
    NIM         4.29%   4.24%   4.16%   4.06%     4.15%  
    NIMTE*         4.35%   4.30%   4.22%   4.12%     4.21%  
    Efficiency ratio         66.11%   68.78%   68.93%   72.21%     66.64%  
    Return on average assets         1.22%   1.31%   1.19%   0.93%     1.22%  
    Return on average equity         13.69%   14.84%   13.84%   11.36%     14.67%  
      September 30,   September 30,  
    2024   2023
    Year-to-date:      
    NIM 4.23 % 4.17 %
    NIMTE* 4.29 % 4.24 %
    Efficiency ratio 67.86 % 72.79 %
    Return on average assets 1.24 % 0.95 %
    Return on average equity 14.12 % 11.11 %


    *Non-GAAP     Financial Measures
    (Dollars and shares in thousands, except per share data) (Unaudited)

    Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although we believe these non-GAAP financial measures are frequently used by stakeholders in the evaluation of the Company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of results as reported under GAAP.

    Net interest margin on a tax equivalent basis

    Net interest margin on a tax equivalent basis (“NIMTE”) is a non-GAAP performance measurement in which interest income on non-taxable investments and loans is presented on a tax equivalent basis using a combined federal and state statutory rate of 28.43% in both 2024 and 2023. The most comparable GAAP measure is net interest margin and the following table sets forth the reconciliation of NIMTE to net interest margin for the periods indicated.

      Three Months Ended
        September 30,       March 31,     December     September 30,  
        2024   June 30, 2024   2024     31, 2023     2023  
    Net interest income $28,842   $27,053   $26,447   $26,732   $26,350  
    Divided by average interest-bearing assets   2,674,291     2,568,266     2,558,558     2,612,297     2,516,126  
    Net interest margin (“NIM”)2   4.29 %   4.24 %   4.16 %   4.06 %   4.15 %
    Net interest income $28,842   $27,053   $26,447   $26,732   $26,350  
    Plus: reduction in tax expense related to
    tax-exempt interest income    		   385     378     379     374     373  
        $29,227     $27,431     $26,826     $27,106     $26,723  
    Divided by average interest-bearing assets NIMTE2   2,674,291     2,568,266     2,558,558     2,612,297     2,516,126  
        4.35 %   4.30 %   4.22 %   4.12 %   4.21 %
      Year-to-date
      September 30, September 30,
      2024     2023  
    Net interest income $82,342   $76,524  
    Divided by average interest-bearing assets   2,600,641     2,451,781  
    Net interest margin (“NIM”)3   4.23 %   4.17 %
    Net interest income
    Plus: reduction in tax expense related to    		 $82,342   $76,524  
    tax-exempt interest income   1,142     1,202  
      $83,484   $77,726  
    Divided by average interest-bearing assets   2,600,641     2,451,781  
    NIMTE3   4.29 %   4.24 %


    2    Calculated using actual days in the quarter divided by 366 for the quarters ended in 2024 and 365 for the quarters ended in 2023, respectively.

    3Calculated using actual days in the year divided by 366 for year-to-date period in 2024 and 365 for year-to-date period in 2023, respectively.


    *Non-GAAP Financial Measures
    (Dollars and shares in thousands, except per share data)
    (Unaudited)

    Tangible Book Value Per Share

    Tangible book value per share is a non-GAAP measure defined as shareholders’ equity, less intangible assets, divided by shares outstanding. The most comparable GAAP measure is book value per share and the following table sets forth the reconciliation of tangible book value per share and book value per share for the periods indicated.

        September 30, 
    2024    		   June 30, 2024   March 31, 
    2024    		   December
    31, 2023    		   September 30,
    2023
    Total shareholders’ equity $260,050 $247,200 $239,327 $234,718 $225,259
    Divided by shares outstanding   5,502   5,502   5,500   5,513   5,548
    Book value per share $47.27 $44.93 $43.52 $42.57 $40.60
        September 30, 
    2024    		   June 30, 2024   March 31, 
    2024    		   December
    31, 2023    		   September 30,
    2023
    Total shareholders’ equity $260,050 $247,200 $239,327 $234,718 $225,259
    Less: goodwill and intangible assets   15,967   15,967   15,967   15,967   15,973
      $244,083 $231,233 $223,360 $218,751 $209,286
    Divided by shares outstanding   5,502   5,502   5,500   5,513   5,548
    Tangible book value per share $44.36 $42.03 $40.61 $39.68 $37.72


    Tangible     Common Equity to Tangible Assets

    Tangible common equity to tangible assets is a non-GAAP ratio that represents total equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets. The most comparable GAAP measure of shareholders’ equity to total assets is calculated by dividing total shareholders’ equity by total assets and the following table sets forth the reconciliation of tangible common equity to tangible assets and shareholders’ equity to total assets.

    Northrim BanCorp, Inc. September 30,     March 31,   December September 30,
      2024 June 30, 2024   2024     31, 2023     2023  
    Total shareholders’ equity $260,050 $247,200 $239,327   $234,718   $225,259  
    Total assets 2,963,392 2,821,668   2,759,560     2,807,497     2,790,189  
    Total shareholders’ equity to total assets 8.78 % 8.76 %   8.67 %   8.36 %   8.07 %
    Northrim BanCorp, Inc. September 30,   March 31, December September 30,
      2024 June 30, 2024   2024     31, 2023     2023  
    Total shareholders’ equity $260,050 $247,200 $239,327   $234,718   $225,259  
    Less: goodwill and other intangible assets, net 15,967 15,967   15,967     15,967     15,973  
    Tangible common shareholders’ equity $244,083 $231,233 $223,360   $218,751   $209,286  
    Total assets $2,963,392 $2,821,668 $2,759,560   $2,807,497   $2,790,189  
    Less: goodwill and other intangible assets, net 15,967 15,967   15,967     15,967     15,973  
    Tangible assets $2,947,425 $2,805,701 $2,743,593   $2,791,530   $2,774,216  
    Tangible common equity ratio 8.28 % 8.24 %   8.14 %   7.84 %   7.54 %

    Note Transmitted on GlobeNewswire on October 23, 2024, at 2:30 pm Alaska Standard Time.

       
    Contact: Mike Huston, President, CEO, and COO
      (907) 261-8750
      Jed Ballard, Chief Financial Officer
      (907) 261-3539

    The MIL Network –

  • MIL-OSI Economics: Transcript of Fiscal Monitor October 2024 Press Briefing

    Source: International Monetary Fund

    October 23, 2024

    SPEAKERS:
     Vitor Gaspar, Director, Fiscal Affairs Department
    Era Dabla‑Norris, Deputy Director, Fiscal Affairs Department
    Davide Furceri, Division Chief, Fiscal Affairs Department
    Tatiana Mossot, Moderator, Senior Communications Officer

    The Moderator (Ms. Mossot): Good morning, good afternoon, and good evening to our viewers around the world. I am Tatiana Mossot, the IMF Communications Department, and I will be your host for today’s press briefing on the Annual Meetings 2024 Fiscal Monitor, “Putting a Lead on Public Debt.” I am pleased to introduce this morning the Director of the Fiscal Affairs Department, Vitor Gaspar. He is joined by Era Dabla‑Norris, Deputy Director of the Fiscal Affairs Department, and Davide Furceri, who is the Division Chief of the Fiscal Affairs Department. Good morning, Vitor, Era, Davide.

    Before taking your questions, let me kick‑start our briefing by turning to you, Vitor, for your opening remarks. Vitor, the floor is yours.

    Mr. Gaspar: Thank you so much, Tatiana. Good morning, everybody. Thank you all for your interest in the Fiscal Monitor, covering fiscal policies all around the world. Deficits are high and global public debt is very high, rising, and risky. Global public debt is projected to go above $100 trillion this year. At the current pace, the global debt‑to‑GDP ratio will approach 100 percent by the end of the decade, rising above the pandemic peak. But the message of high and rising debt masks considerable diversity across countries. I will distinguish three groups.

    Public debt is higher and projected to grow faster than pre‑pandemic in about one third of the countries. This includes not only the largest economies, China and the United States, but also other large countries such as Brazil, France, Italy, South Africa, and the United Kingdom, representing in total about 70 percent of global GDP.

    In another one third of the countries, public debt is higher but projected to grow slower or decline compared with pre‑pandemic.

    In the rest of the world, debt is lower than pre‑pandemic. The Fiscal Monitor makes the case that public debt risks are elevated, and prospects are worse than they look. The Fiscal Monitor presents a novel framework, debt at risk, that illustrates risks around the most likely debt projection at various time horizons. Here we concentrate on the next 3 years.

    Our analysis shows that risks to public debt projections are tilted to the upside. In a severe adverse scenario, public debt would be 20 percentage points of GDP above the baseline projection. In most countries, fiscal plans that governments have put in place are insufficient to deliver stable or declining public debt ratios with a high degree of confidence. Additional efforts are necessary. Delaying adjustment is costly and risky. Kicking the can down the road will not do. The time to act is now. The likelihood of a soft landing has increased. Monetary policy has already started to ease in major economies. Unemployment is low in many countries. And, therefore, given these circumstances, most economies are well‑positioned to deal with fiscal adjustment.

    But it does matter how it is done. While the specific circumstances depend on—while specifics depend on country circumstances, the Fiscal Monitor and earlier IMF work provide useful pointers. For example, countries should avoid cuts in public investment. This can have severe effects on growth. Good governance and transparency improve the prospects of public understanding and social acceptance of fiscal reforms.

    Countries that are sufficiently away from debt distress should adjust in a sustained and gradual way to contain debt vulnerabilities without unnecessary adverse effect on growth and employment. However, in countries in debt distress or at high risk of debt distress, timely and frontloaded decisive action to control public debt or even debt restructuring may be necessary. Everywhere, fiscal policy, as structural policy, can make a substantial contribution to growth and jobs.

    What is the bottom line? Public debt is very high, rising, and risky. The time is now to pivot towards a gradual, sustained, and people‑focused fiscal adjustment.

    My colleagues and I are ready to answer your questions. Thank you for your attention and interest.

    The Moderator (Ms. Mossot): Thank you, Vitor. So, we will open the floor for questions. Thank you.

    Question: Good morning, given your findings on the increasing trend of spending across the political spectrum, how do governments then plan to balance the urgent need, as you stated, for investment in critical areas like healthcare and climate adaptation with the risks of what you also stated, overly optimistic debt projections?

    Ms. Dabla‑Norris: Thank you, global debt is very high, 100 trillion this year and rising. And debt risks, all the ones you mentioned, are also very elevated. So, policymakers are now facing a fundamental policy trilemma, to maintain debt sustainability, amid very high levels of debt in some countries, to accommodate the spending pressures for climate adaptation, for development goals, for population aging, and at the same time to garner support that is needed for reforms. This is why we are calling for a strategic pivot in public finances for countries to put their public finances in order. And why is this important? Because this can help create room that is needed for the priority spending. It can create fiscal space to combat future shocks that will surely come. And it can also help sustain long‑term growth.

    What this means is that for some countries, a very decisive implementation of reforms is needed now, under current plans. For many others, an additional adjustment is required that needs to be gradual but sustained. And yet for others with very high debt levels that are rising, a more frontloaded adjustment will be needed.

    These efforts, these fiscal efforts need to be people‑focused, because you want to balance the trade‑off between these measures adversely impacting growth and inequality. So, here it is important to seek to preserve public spending. It is important to seek to preserve social spending. And improving the quality, the composition, the efficiency of government spending can ensure that every dollar that is spent has maximum impact. It creates room for other types of spending without adding to debt pressures.

    Mobilizing revenues, setting up broad‑based and fair tax systems can allow countries to collect revenues to meet their spending needs. And this is particularly important in the case of emerging market and developing economies, which have considerable untapped tax potential.

    But I think it is also important to note that policymakers need to build the trust that taxpayer’s resources that are being collected will be well‑spent. This is why we are emphasizing strengthening governance, improving fiscal frameworks to build that trust that is needed for reforms.

    Ms. Mossot: We will go to this side of the room. The gentleman in the fourth row.

    Question: Thank you for doing this. I was wondering if you could please drive us a bit further to the debt‑at‑risk framework. Thank you.

    Mr. Furceri: Thank you. The debt risk is a framework that links current macroeconomic, financial, and political conditions to the entire spectrum of the future debt outcomes. So, in some sense it goes beyond the point focus that we typically provide, and it enables economic policymakers to first quantify what are the risks surrounding the debt projections and, second, what are the sources of this risk.

    The current framework estimates that in a severely adverse scenario but plausible, debt to GDP could be 20 percentage points higher in the next 3 years than currently projected. Why is this the case? This is because there are risks related to weaker growth, tighter financial conditions, as well as economic and political uncertainty.

    Another point that the Fiscal Monitor makes is that beyond this global level, the debt to risk associated to the global level, there is significant heterogeneities across countries. For example, in the case of advanced economies, our estimates of data risk are about 135 percent to GDP by 2026. This is a high level. It is lower than what we observed during the peak of the pandemic, but it is high, and it indeed is even higher than what we observed during the Global Financial Crisis.

    In the case of emerging market economies, what we see is that debt risk is increasing even compared to the pandemic and our estimate is about 88 percentage points of GDP.

    Summarizing, we think that this is a framework that could be useful to quantify a risk, identify the sources, and then make a response to this risk.

    Ms. Mossot: We will take another question in the room before going online.

    Question: Thank very much. I would like to know, Vitor, how can fiscal governance be strengthened to ensure long‑term fiscal adjustments, and while at it, what are the risks if fiscal adjustments are delayed, and how would that affect global financial markets? My second question, what lessons can be learned from countries that have successfully managed high debt levels in the past and how can transparency and accountability in public finance be improved to build trust and ensure effective debt management?

    Mr. Gaspar: Thank you so much. I will start with the timing. So I have already emphasized that delaying adjustment is costly and risky. You come from Ghana. If you allow me to place your question in the context of the sub‑Saharan Africa more broadly. I would argue that building fiscal space is not only crucial to limit public debt risks, but in many countries in sub‑Saharan Africa, it is key to enable this state to play its full role in development, which is, of course, a very important priority in the region.

    You asked about lessons from experience. I would say that fiscal adjustment should be timely. It should be decisive. It should be well‑designed. And it should be effectively communicated. And you have pointers on all of this in the Fiscal Monitor.

    You asked a very important question on governance. I would put it together with transparency and accountability. Era has already commented on why it is so important from a political viewpoint, but we have been working in this area for many years. For example, the IMF has a code on fiscal transparency that is extremely interesting. Something that also came up in a seminar that I participated in yesterday is the opportunities afforded by technology to make progress on governance. One of the speakers from India introduced this idea of three Ts that I found very inspiring. The three Ts are technology that is used to promote transparency. And if you have technology and transparency, you should expect to gain trust. And if you have trust, you have the citizens behind the government and, therefore, even willing to pay taxes, not necessarily happily, but in a quasi-voluntary way.

    Ms. Mossot: Thank you, Vitor. We have a question from Forbes, Mexico.” I have a question in countries like Mexico where fiscal consolidation is necessary. What are the biggest risks of this consolidation and how could it boost economic growth?” This is a question for Era.

    Ms. Dabla‑Norris: So, as we have said more generally, the design of fiscal adjustment is what really matters. And there is a right way to do it, and there are many wrong ways to do it.

    In the Fiscal Monitor, we illustrate how countries can undertake fiscal adjustment in a way that is what we call people focused. By that I mean, we want to trade off the negative impacts of the adjustment on growth and on inequality. And we do this by looking at different types of fiscal instruments. And different instruments have very different impacts. So, for example, progressive taxes have a very different impact on consumption and incentives to work and save as compared to other types of taxation.

    Similarly, cutting public investment has both negative short‑run effects on growth and wages, as well as more medium‑term impacts on growth. Cutting regressive energy subsidies similarly have much less of a deleterious impact on income and the consumption of the poor.

    So depending upon the country context, depending upon whether there is scope to raise revenues in non‑distortionary ways, depending upon the nature and the composition of public spending, there are ways for countries to do fiscal adjustment in a manner that is growth‑friendly and people‑friendly.

    Ms. Mossot: So, the last one we have from online is for you, Davide. “The report suggests that low‑income development countries should build tax capacity and improve spending efficiency. Given the high levels of debt and limited resources in these countries, how realistic are these recommendations without substantial international financial support?”

    Mr. Furceri: Indeed, many developing countries face significant pressing spending needs. For sustained development goals, to achieve climate goals, our estimate in the previous Fiscal Monitor suggests that the envelope of these spending needs could be as much as high as 16 percent of GDP.

    So, in this context, one important policy action is to increase revenue through revenue mobilization. Now, it is important that this revenue mobilization strategy is guided by the principle that make the tax system more efficient, more equitable, and more progressive. So policies could be, for example, to reduce informalities, broaden the tax base, increase efficiency in revenue collections, as well as progressivity.

    In the report, we also make the point that improving fiscal institutions, as also Era mentioned, is key to garner public support and to make sure that the debt system is indeed efficient.

    There is also policy on the spending side, improving the quality, the composition, and the efficiency spending to make sure that each dollar spent is well spent, is spent on the key priority areas, and maximizing it.

    Now, there are countries that will need help. The IMF as in the past years and as always has provided significant advice to countries from policy support, policy advice but also financing support. Just to give a number, over the past 4 years, about $60 billion of funding has been provided to African economies to help their challenge. And important, the IMF is also providing a variety of capacity development to support, including exactly in this area, for example, increase Public Finance Management, improve taxation, revenue mobilization, as well as a new area that are developing that are becoming more and more important, such as climate change.

    The Moderator (Ms. Mossot): Thank you. The gentleman with his book in the hand.

    Question: Thank you. You mentioned in the report that developed economies, including the United Kingdom, face risks if they do not bring debt down. We have a budget next week. Perhaps you could tell us what are those risks if the U.K. does not address its debt position quickly?

    Mr. Gaspar: So, when we think about the United Kingdom, the United Kingdom is one of the countries that I listed where debt is substantially higher than it was projected pre‑pandemic. It is also one of the countries where debt is projected to increase over time, albeit at a declining pace.

    If I were to give you my concern about the U.K., I would use what Kristalina Georgieva, the Managing Director of the Fund, emphasizes a theme through these Annual Meetings, the combination of high debt and low growth. For the case of the United Kingdom, I would put it as follows. The United Kingdom is living with interest rates that are close to U.S. interest rates, but it is also living with growth rates that are not close to U.S. growth rates. And that leads to a theme that has been amply debated in the United Kingdom, which is the importance of public investment.

    In the United Kingdom, as in many other advanced economies, public investment as a percentage of GDP has been trending down. And given challenges associated with the energy transition, new technologies, technological innovation, and much else, public investment is badly needed. The Fiscal Monitor emphasizes that public investment should be protected in the framework of a set of rules and budgetary procedures that foster sound macroeconomic performance. The fact that that debate is very much at the center of the debate in the United Kingdom right now is very much welcome.

    Ms. Mossot: We will take another question on this side. The lady in green.

    Question: Thank you. After 3 years of consolidation, fiscal deficits are widening in the western Balkans. The public expenditures are increasing but more on social debt—more on social spendings than on capital spendings. How do you evaluate the economic situation in this region?

    Ms. Dabla‑Norris: So, in western Balkans as a whole, growth has picked up since 2023, although there are differences across countries. For example, in North Macedonia, growth is projected to be 2.2 percent in 2024, down from 2.7 percent in 2023. But for the region, the growth momentum is expected to continue in 2025.

    Now, when it comes to inflation, we see that headline inflation continues to ease throughout the region, but core inflation remains stubbornly high in some countries.

    In terms of fiscal and debt, the differential—the interest and growth differential for the region is projected to remain negative over the medium term. And this is a good thing because it is favorable to debt dynamics, but this gap is closing. It is narrowing over time.

    So, what is important at this juncture for these countries is to sustainably lift their growth prospects. And the IMF has spoken at length about the importance of structural and fiscal structural reforms that are needed to improve the composition of spending, to lift public investment sustainably and to undertake the labor and product market reforms that are required to sustainably boost productivity.

    Ms. Mossot: Thank you. Back to the center of the room.

    Question: Thanks for taking my question. I wanted to ask about France. Do you believe that the French government’s plans to return to a budget deficit of less than 3 percent by 2029 is realistic, given the size of the deficit you project for France this year?

    Mr. Gaspar: So, when it comes to France, we have a country that is also in the group of countries where debt is considerably higher than pre‑pandemic. At this point in time, in our projections, the debt‑to‑GDP ratio in France is projected to increase by about 2 percentage points every year. So, given this path, we recommend in the case of France not only fiscal adjustment but fiscal adjustment that is appropriately frontloaded to enable France to credibly put public debt under control and inside the European framework.

    That is completely in line with our general recommendation because the European framework allows for a country‑specific path. It allows for risks to be considered. It allows for the impact of the investment and structural reform to be internalized through an adjustment period that varies, according to cases, from 5 to 7 years.

    We do believe that the government in France has presented ideas, proposals that move in the right direction, but we are waiting for more clarity coming from actual enacted measures in France.

    Ms. Mossot: Another one here, the lady in blue there.

    Question: Thank you. May I have an insight about public debt in Tunisia and reasons beyond not mentioning it in your report? Thank you.

    Mr. Furceri: For the specific numbers for Tunisia, I would defer to the regional press briefs that is coming in the coming days. What I would like to point out, that one of the challenges that we see in many countries in North Africa, it also relates with the untargeted subsidies. And one point that we make in the report is that, also as Era mentioned, that when you think about how to recalibrate spending, it is important to preserve public investment. It is important to present targeted transfers for those that are most vulnerable, and to recalibrate the spending, for example, from away from high wage compensation when this is not the case, and untargeted subsidies.

    Ms. Mossot: Thank you. This side, second row, the gentleman.

    Question: I just had a question about the U.S. election. As you know, both candidates are offering many tax breaks, no taxes on tips, no tax on social security on the Trump side. These would add to the deficit of the U.S. on the Trump side as much as $7 and a half trillion over 10 years. Some estimates more than 10 trillion. Kamala Harris’ plans would call for less debt because she would raise taxes in some cases. But I am just wondering, the worse‑case scenario, how concerned are you about the amount of debt that the U.S. could be adding here? It seems to be the opposite of what the IMF has been recommending for a long time. Do you have concerns about financial markets taking matters into their own hands and imposing some discipline?

    Mr. Gaspar: Thanks, I am clearly not commenting on specific elections or political platforms, but I point to you that the Fiscal Monitor in the spring was dedicated to the great election year, and there we do make a number of comments about the relevance of politics for fiscal policy. And Era, has very interesting research where she documents that political platforms on the left and on the right all around the world have turned in favor of fiscal support and fiscal expansion. And that makes the job of the Ministers of Finance around the world and the Secretary of Treasury here in the United States a particularly demanding job, but Era may want to comment on that.

    When it comes to the United States, the United States is one of the largest economies where it is a fact that debt is considerably above what it was pre‑pandemic. It is growing at about 2 percentage points of GDP every year. And so from that viewpoint, this path of debt cannot continue forever. We do believe that the situation in the United States is sustainable because the policymakers in the United States have access to many combinations of policy instruments that enable them to put the path of public debt under control. And they will do that at a time and with the composition of their choosing. The decision lies with the U.S. political system.

    Now, it is very important to understand that the United States is now in a very favorable economic and financial situation. Financing conditions are easing in the United States. The Fed has already started its policy pivot. The growth in the United States has been outperforming that of other advanced economies. The labor market in the United States shows indicators that are the envy of many other countries. And so the prescription that the time to adjust is now applies to the United States. It turns out that the Fiscal Monitor also documents that the United States is very important for the determination of global financial conditions and, therefore, adjustment in the United States is not only good for the United States, it is good also for the rest of the world.

    Ms. Mossot: Back to the center of the room. The lady with the red shirt, please.

    Question: My question is, whether you can comment on China’s recent stimulus package and as you mentioned in the opening, it seems that the largest economies, including China and the United States, is projected to keep raising its public debt, so I wonder how you are going to comment on the fiscal implication of the stimulus package, and do you have any other specific fiscal policy for China? Thank you.

    Mr. Gaspar: Thank you for your question. China is very important. China is one of the largest economies that I listed. The other is the United States. For China and for the United States, we say the same. Debt is growing. Debt is growing rapidly. That process cannot continue forever, but China, as the United States, has ample policy space. And so it has the means to put public debt in China under control with the policy composition and the timing that will be the choice of the Chinese political system.

    If I were to say what is most important for me for China, I would say four things. The first one is that fiscal policy, as structural policy, should contribute to the rebalancing of the Chinese economy in the sense of changing the composition of demand from exports to domestic demand. It is very important that the very high savings ratio in China diminishes so that Chinese households will be able to consume more and feel safe doing that. Making the social safety net in China wider would be a structural way of doing exactly that.

    The second aspect is to act decisively to end financial misallocations associated with the property sector crisis, the real estate crisis. That is very important to stabilize the situation in China but also to build confidence, which would help with the first dimension that I pointed out as well.

    Now, third, very much in the province of public finances, this is very important to address public finance imbalances and vulnerabilities at the sub‑national level. And now, there are sub‑national governments in China that are struggling with financial conditions—financial constraints, and it is very important to remove those constraints, and, again, is linked to my second point.

    Fourth and last, it is very important that fiscal policy, as structural policy, promotes the transition to a new growth model in China, a model based on technological innovation, a model that supports the structural transformation towards a green economy. And my understanding is that this fourth element has been emphasized by the political authorities in China at the highest level.

    Ms. Mossot: Thank you. Back to this side of the room.

    Question: As already mentioned, a novel assessment framework debt that is at risk varies from country to country. Please, could you provide me details, which risks are more important and more dangerous for Ukrainian debt? And one more related question. It is that you give advice for emerging markets to increase indirect taxes for revenue mobilization. And in the case of Ukraine, when we recently already increased our taxes, for example, war tax and tax for banks’ profits, which recommendations you can give us in our situation and the worse circumstances, and maybe there are other instruments despite tax increasing.

    Ms. Dabla‑Norris: Thank you. The debt‑at‑risk framework that has been presented in the Fiscal Monitor includes 70 countries, but we do not identify or quantify the debt at risk for all individual countries. Now, that said, the framework, as Davide mentions, shows that factors such as weak growth, tighter financial conditions, geopolitical uncertainty, or policy uncertainty can all add to future debt risks. This applies to Ukraine as it does to many other countries. And in the case of Ukraine particularly, the outlook, as you know, remains exceptionally uncertain.

    So, in terms of priorities, we believe that the authorities need to continue to restore debt sustainability. And in this regard, there is two important aspects. The first is to complete the restructuring of external commercial debt in line with program commitments. And the second is to really redouble efforts on domestic revenue mobilization and to accelerate the implementation of their national revenue strategy. Now, what is important here is the strategy is not only about aiming to raise revenues, mobilize revenues, but to fundamentally change the tax system. The strategy aims to reduce tax evasion, tax avoidance, to improve tax compliance, and more broadly enhance the fairness and equity of the tax system. And the IMF has long advocated for countries that it is not about raising rates. It is about broadening the base and making tax systems as fair and equitable as possible.

    Ms. Mossot: Back to this side. The gentleman on the second row.

    Question: I just want to ask a couple of questions, blended into one. In July, the IMF released calculations showing that the U.K. budget balance, excluding interest payments, would need to improve by between .8 and 1.4 percentage points of GDP per year to get debt under control, an adjustment of 22 to 39 billion pounds. Since then, we know that the Treasury has carried out an audit and discovered over‑spends it was not aware of, and the government has made decisions on things like public sector pay. So my question to you is, how has that changed the calculations you made in July? You talked about the importance of people‑focused adjustments. Would an increase in employer national insurance contributions be people‑friendly and growth‑friendly in your view?

    Mr. Gaspar: Thank you so much. So, your questions are very detailed and very specific, and so I am not in a position to comment on them at this point in time. Concerning the U.K., we believe it is very important to bring public debt under control. It is very important to control for public debt risks. In the Fiscal Monitor, we actually make the point that the risks that one should take into account when conducting a prudent fiscal policy go beyond the reference to the baseline that you made. So we believe that it is possible to make a stronger case for fiscal prudence than what was implicit in your question.

    Still, it is important how the adjustment is made, and Era has emphasized very much the importance of being people‑friendly. And we, all of us, have emphasized the important contribution of public investment. And there you do have specific estimates for the U.K., impacts of public investment on economic activity and growth from the Office of Budget’s responsibility. I do not know if you want to add something.

    Ms. Dabla‑Norris: No. Just to say that there are important tradeoffs, not just for the U.K., but for many countries, and there may be certain short‑term measures that see or appear to be less people‑friendly but that they improve the sustainability of the system for future generations. So there is an intertemporal aspect of this, referring to fiscal policy, that we often forget. So, pension systems, health systems, the sustainability, the fiscal sustainability of the system also matters for people because it is going to impact different generations in a different way.

    Ms. Mossot: The very last question.

    Question: Thank you. I would like to ask, what are the prescriptions on how developing countries can put their public debt in order, especially sub‑Saharan Africa? And, for example, Nigeria now and many other countries in Africa, their public debt has ballooned because of exchange rates devaluation. So what are your prescriptions? You also mentioned the tax systems should be friendly. In Africa, we are not seeing tax systems as being friendly now because a lot of people, they say, okay, why did not the tax base broaden? How much can you broaden since you have a lot of poor people? So, what kinds of tradeoffs do you do when incomes and people are also squeezed?

    The last one is from the report. $100 trillion of global debt. How much of that is from developing economies? Thank you.

    Mr. Furceri: Thank you very much. The challenges that Nigeria faces, as well as many other countries in the region, there are two. One is very low revenue‑to‑GDP ratio. For example, I believe that in the case of Nigeria it is about 10 percentage points. The second, one trend that we have seen, that we are a bit concerned, is that the ratio—the debt service obligation to revenue has been increasing. So for the average low‑income country, it is about 15 percent. What does it mean? It means that basically a large part of revenue in these countries goes to just finance the debt. And this is something that we would recommend to improve, or we can improve as we mentioned revenue mobilization. We think that it is important. It is important to broaden the tax base. But at the same time, and especially in countries like Nigeria that have been severely affected by the drought, we have seen also higher food price, it is important to put in place ex ante system and mechanisms that are transfer resources from the government to those that are most affected and those that are poor.

    Ms. Mossot: Thank you very much. We have to close this session. Thank you again Era, Davide, and Vitor. You can find the full report of the Fiscal Monitor on the IMF website and also a reminder that there is tomorrow at 8:00 a.m. the Managing Director’s press conference. Thank you, all.

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

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    MIL OSI Economics –

  • MIL-OSI Asia-Pac: MOH AND HSA CONTINUE TO STEP UP ENFORCEMENT AND CRACKDOWN ON E-VAPORISERS OFFENCES

    Source: Asia Pacific Region 2 – Singapore

    From 1 July to 30 September 2024, 3,840 persons were caught and issued composition fines for possession or use of e-vaporisers, a 52% increase from the previous quarter. These include 743 cases of students caught vaping that were referred by schools and Institutes of Higher Learning (IHLs), 591 cases caught during community enforcement patrols, 44 cases detected through enforcement operations in the vicinity of IHLs, and 16 cases detected at checkpoints.
    2. The Ministry of Health (MOH), Health Sciences Authority (HSA), Health Promotion Board (HPB) and Ministry of Education (MOE) are working together to ramp up efforts to tackle the problem of vaping. We also continue to work with the Immigration & Checkpoints Authority (ICA), National Environment Agency (NEA) and National Parks Board (NParks) to intensify enforcement on multiple fronts, including at the checkpoints, online platforms and in the community, schools and IHLs.
    Enforcement in the community
    3. HSA has been actively monitoring online content to identify persons who vape in public, and use or pose with e-vaporisers in photographs or videos. In July and August 2024, HSA identified and issued composition fines to five such offenders – four males and one female, aged 13 to 34, who posted videos and photographs of themselves with e-vaporisers on their Instagram and TikTok accounts. All the offending posts have been removed. 
    4. In September 2024, HSA also took enforcement action against a 49-year-old man who vaped in an MRT cabin. The incident was captured on social media. HSA raided the offender’s home in Tampines where one e-vaporiser and several drug paraphernalia were found. The man was also wanted by the Central Narcotics Bureau (CNB) and is currently assisting HSA and CNB in investigations.
    5. HSA has continued to intensify its community enforcement efforts and maintained a strong presence at major, high-profile events. HSA issued composition fines to about 200 individuals at the Formula 1 race weekend in September 2024 and more than 50 individuals at an outdoor music event in Sentosa in August 2024 for e-vaporiser offences. A total of 253 persons were caught through these targeted operations.
    Enforcement at checkpoints
    6. From 1 July to 30 September 2024, HSA and ICA conducted several joint operations at the air, land and sea checkpoints, checking more than 4,000 travellers. Of these, 16 persons were caught in possession of e-vaporisers.
    7. On 17 July 2024, a 32-year-old male Malaysian driver who was driving a Malaysia-registered lorry was stopped by ICA at the Tuas Checkpoint. The driver had attempted to smuggle more than 20,000 e-vaporisers and components with a street value of more than $300,000 into Singapore. The driver was detained and handed over to HSA for further investigations. While under investigation, he attempted to leave Singapore illegally, and was caught by ICA on 19 July 2024. He was sentenced to 28 weeks of imprisonment on 28 August 2024 for offences under the Tobacco (Control of Advertisements and Sale) Act 1993 and Immigration Act 1959.
    8. It is illegal for travellers to bring prohibited tobacco products like e-vaporisers into Singapore. Travellers found with e-vaporisers or their components will be fined. Transport companies and drivers bringing prohibited tobacco products into Singapore will be subjected to enforcement actions. Convicted foreigners will be deported and barred from re-entering Singapore.
    Enforcement against suppliers, online advertisements and sales of e-vaporisers
    9. HSA’s targeted enforcement against suppliers of e-vaporisers over the past few months have also resulted in continued disruptions to the illegal supply chain. These include:
    a) On 7 July 2024, HSA conducted a successful enforcement operation at Paya Lebar, targeting an e-vaporiser distribution ring involving foreign domestic workers. HSA officers intercepted 10 individuals – eight buyers, as well as two female sellers, aged 44 and 39, before any transaction took place. Eight e-vaporisers and assorted components, as well as illegal medicines intended for sale were seized.  The two sellers are currently assisting in investigations.
    b) On 21 August 2024, HSA disrupted an e-vaporiser distribution network at Tampines, seizing over 2,000 e-vaporisers and components with a street value exceeding $39,000. Eight individuals, aged 26 to 35, were caught distributing e-vaporisers in their vehicles at an open-air carpark. All eight individuals are currently assisting in investigations.
    10. In the same quarter, HSA also worked with the administrators of local e-commerce and social media platforms to remove more than 1,900 listings of e-vaporisers and components. This is more than three times the number compared to the same period in 2023.
    Continued school and public education efforts
    11. HPB continues to raise awareness and highlight the harms and illegality of vaping through its campaign ‘Vape is a toxic friend you don’t need’. This year’s edition was rolled out from end July 2024, and was pushed out across multiple platforms, from outdoor advertisements to digital and social media channels. To further educate the public and dispel widespread misconceptions, HPB has introduced a dedicated “Vaping mistruths” section on its vape-free webpage on HealthHub. The new tab serves as a resource to debunk common myths surrounding vaping, and provide information about the health risks and legal implications associated with e-vaporisers.
    12. HPB also works with schools to educate students in primary and secondary schools on the benefits of a nicotine-free lifestyle through assembly skits. From July to September 2024, HPB reached almost 37,000 students through these skits.
    13. HPB also provides cessation support and strategies to quit for students who are caught vaping through onsite counselling by Student Health Advisors, as well as QuitLine, a tele-counselling service. From July to September 2024, about 830 youths received smoking and vaping cessation counselling.
    14. Schools and IHLs have stepped up on preventive education to reinforce anti-vaping messages and the importance of maintaining a nicotine-free lifestyle. Students are educated that e-vaporisers are banned, and the harmful impact of vaping on individuals, families and the society.
    15. In Physical Education and Science lessons, students learn about the health effects of tobacco products, and the harmful substances in them. Common myths about vaping are also covered in Science lessons. Character and Citizenship Education lessons equip students with the ability to recognise impulsive and addictive behaviours that harm one’s mental and physical wellbeing and provide strategies for self-control and managing negative peer influences. To encourage early help-seeking, students are encouraged to inform a trusted adult if they are concerned about their classmates’ behaviour.
    16. Parents can refer to information on Parent Hub to educate their children about the harms of vaping.

    Penalties for e-vaporiser-related offences in Singapore

    17. Under the Tobacco (Control of Advertisements and Sale) Act, the possession, use or purchase of e-vaporisers carries a maximum fine of $2,000. Offenders who are given the opportunity to settle their offences out of Court via a Notice of Composition are strongly encouraged to do so. Those who fail to do so before the due date of the Notices will face harsher consequences in Court.

    18. It is an offence to import, distribute, sell or offer for sale e-vaporisers and their components. Any person convicted of an offence is liable to a fine of up to $10,000, or imprisonment of up to six months or both for the first offence, and a fine of up to $20,000, or imprisonment of up to 12 months or both for the second or subsequent offence. All prohibited tobacco items will be seized and confiscated.
    19. 21 persons aged between 14 and 48 years old were convicted in Court from 1 July to 30 September 2024 for selling e-vaporisers and related components in Singapore. The total fines amounted to more than $150,000. Please refer to Annex A for details.
    20. Members of the public who have information on the illegal possession, use, purchase, import, distribution, sale or offer for sale of e-vaporisers can contact HSA’s Tobacco Regulation Branch at 6684 2036 or 6684 2037 during office hours (Monday to Friday, 9:00am to 5:30pm).

    21. Information pertaining to prohibited tobacco products in Singapore is available on the HSA website. Persons who need help to quit vaping can join the I Quit programme.

    MINISTRY OF HEALTH
    HEALTH SCIENCES AUTHORITY
    23 OCTOBER 2024

    MIL OSI Asia Pacific News –

  • MIL-OSI Australia: Strengthening enforcement to tackle illegal tobacco

    Source: New South Wales Government 2

    Headline: Strengthening enforcement to tackle illegal tobacco

    Published: 24 October 2024

    Released by: Minister for Health

    The NSW Government will roll out reforms to better protect the community from the harms of illegal tobacco, including tougher penalties, more enforcement officers, and a new tobacco licensing scheme for retailers.

    A new licensing scheme

    Recent enforcement activities have observed a rise in illicit tobacco retailing including amongst rural communities in NSW, which adversely affects businesses that operate within the law. Illicit retailers undercut legitimate small businesses by selling illicit tobacco at lower prices and some have been found to be located in close proximity to schools.

    A new tobacco licensing scheme will also be introduced, to better protect those businesses doing the right thing and ensure greater oversight of the tobacco retail industry in NSW.

    Under these changes, retailers and wholesalers of tobacco and non-tobacco smoking products will be required to hold a tobacco licence and pay an annual fee.

    A licence will be able to be refused, or revoked, if the applicant has been convicted of a tobacco or vaping product related offence.

    The scheme will support comprehensive and targeted enforcement to identify and penalise those retailers and wholesalers doing the wrong thing.

    The proposed legislation includes penalties of up to $220,000 for corporations and $44,000 for individuals for selling tobacco without a licence under the new scheme.

    To ensure that applying for a tobacco licence is not burdensome for small businesses, a technical support phoneline will be available to everyone submitting an application.

    A tobacco licensing scheme will complement the NSW Government’s broader approach to tobacco compliance and enforcement.

    Tougher penalties

    The government will double maximum penalties for a range of tobacco retailing offences, including:

    • Individuals selling tobacco products to minors will be fined up to $22,000 for a first offence and $110,000 for a subsequent offence, with corporations liable for up to $110,000 for a first offence and $220,000 for subsequent offences;
    • Individuals selling tobacco products not in the required packaging or with the mandatory health warnings will be fined up to $22,000, and corporations up to $110,000; and
    • People impersonating or obstructing an inspector can be fined up to $1,100, up from $550.

    Enforcement & seizures

    NSW Health will also recruit an additional 14 enforcement officers to strengthen compliance efforts across the state. This doubles the number of authorised inspectors employed by the Ministry of Health. Ahead of these reforms, NSW Health boosted regional enforcement capacity by supporting the employment of four additional enforcement officers. This compliance workforce complements authorised staff who undertake inspections across local health districts

    From 1 July 2024 to 30 September 2024, NSW Health inspectors conducted 565 targeted retail inspections, seizing more than 3.2 million cigarettes and over 600kg of other illicit tobacco products, with an estimated value of over $3.7 million.

    NSW Health collaborates with NSW Police and other state and national regulatory agencies on enforcement related to illicit tobacco sales, including sharing intelligence, working on joint targets and joint operations.

    Information on NSW tobacco retailing laws can be found on the NSW Health website here: https://www.health.nsw.gov.au/

    Members of the public are encouraged to report suspected breaches of tobacco and e-cigarette retailing laws on the NSW Health website here: https://www.health.nsw.gov.au/tobacco/Pages/let-us-know-reports-complaints.aspx

    Quotes attributable to Minister for Health, Ryan Park MP:

    “I am very concerned by the prevalence of illegal tobacco and e-cigarettes in our community, and their proximity to our schools and children.

    “These new laws are the most significant tobacco retailing reforms in NSW in the last decade and will help us combat the scourge of illicit tobacco sales across the state.

    “We are introducing tougher penalties for retailers doing the wrong thing, and boosting our team of enforcement officers to strengthen our compliance efforts.

    “The increased tobacco penalties reflect the seriousness of these offences. Retailers should be put on notice that if they are caught breaking tobacco retailing laws they will be penalised.”

    “A tobacco licensing scheme in NSW will also further enhance our state’s strong approach to enforcement of tobacco retailing laws. It will allow us to have better oversight over the tobacco industry and will support our comprehensive approach to help reduce the use, impact and associated costs of tobacco in NSW.”

    Quotes attributable to Member for Wagga Wagga Joe McGirr MP:

    “After being made aware of the escalating problem of illegal tobacco in my electorate and across the state, I prepared a Private Members’ Bill to require the licensing of tobacco retailers and increased penalties for offences.

    “This Bill was prepared with widespread consultation with industry and the community, with strong support for my proposals to tackle this growing criminal activity which is undermining health messaging and taking an expensive toll on legitimate retailers.

    “So, I am delighted that the government has met this challenge by proposing its own Bill, reflecting the content of my Bill, and I look forward to supporting the government in this endeavour when parliament resumes.

    “Licensing on its own will not eliminate the black market trade in tobacco but it will provide a valuable structure that will help to reduce the damaging effects of this rapidly-growing problem.

    “I congratulate the government for taking this strong proactive stance and I look forward to working together on further steps to tackle the illegal tobacco trade.”

    Quotes attributable to NSW Health Chief Health Officer Dr Kerry Chant:

    “NSW Health supports a holistic approach to tobacco control, recognising reducing supply and access to illicit products is one component.

    “Operating a tobacco licensing scheme will ensure NSW Health has accurate, up-to-date information on tobacco retailing and wholesaling activities in NSW, facilitating more efficient and effective enforcement activity.

    “If you think a tobacco or e-cigarette retailing law has been broken by a retailer in NSW, you can report this via the NSW Health website.”

    MIL OSI News –

  • MIL-OSI Australia: Sequel to Sweet Country, among 19 projects supported by Screen Australia’s First Nations Department

    Source: Australia Government Statements 4

    24 10 2024 – Media release

    Warwick Thornton, director of Wolfram: A sequel to Sweet Country
    Screen Australia’s First Nations Department is thrilled to announce its latest funding slate, including Warwick Thornton’s sequel to Sweet Country titled Wolfram, alongside two powerful documentaries for NITV spanning sport and politics.
    In total, 19 new projects, including 16 funded for development, will receive over $3 million in funding. This investment reflects the agency’s ongoing commitment to amplify First Nations voices and stories, aligned with the Federal Government’s National Cultural Policy Revive and its First Nations First pillar – recognising and respecting the crucial place of First Nations stories at the centre of Australia’s arts and culture.
    Screen Australia’s Head of First Nations Angela Bates said, “Our First Nations creatives are at the forefront of Australian storytelling, with many incredible projects being celebrated on the world stage and even more in development. The demand for our funding has never been higher, which is a positive sign for the industry. Across the 23/24FY, our Department invested over $7.1 million of funding including 105 opportunities across development, production, initiatives, attachments and market support – highlighting the incredible talent and rich narratives within Indigenous communities. With films like Wolfram and documentaries Dreaming Big and One Mind, One Heart, I’m inspired by the depth of powerful screen stories authored by First Nations Australians.”
    “It’s an exciting time for First Nations content creators, and we’re witnessing a new wave of talent. Looking ahead, we will continue to create pathways for these storytellers to thrive and expand their careers in the competitive global marketplace, collaborating with industry to enhance project visibility and impact,” said Bates. 
    This funding announcement follows a year of significant achievements for First Nations stories and creatives. Feature films The New Boy and The Moogai have garnered international acclaim. The third series of the landmark drama Total Control captivated local audiences with it being the most watched First Nations series in 23/24. Additionally, the ground-breaking children’s show Little J & Big Cuz returned for its fourth series on NITV and ABC, featuring 17 language groups and providing a powerful voice for children across Australia. The feature length documentary Kindred premiered on NITV in June, further highlighting the power of cultural connection.
    In the past year, the Department has also invested $1 million into the Enterprise program, supporting four First Nations businesses and three practitioners. Collaborating with Instagram Australia, it launched the fourth iteration of the First Nations Creators Program, supporting emerging talent in the content creator economy to build their skills in the digital space. The Department also supported six projects for production through the First Facts: First Nations Factual Showcase initiative, providing emerging and mid-career Aboriginal and Torres Strait Islander filmmakers with opportunities to create 10-minute documentaries for Network 10.
    Warwick Thornton, director of Wolfram: A sequel to Sweet Country said, “This is my family’s story. My great grandmother and her daughters worked the Hatches Creek mines for whitefellas. Now a truth will come out and it’s called Wolfram.”
    The projects funded for production are:

    Wolfram: A sequel to Sweet Country: Set three years after Sweet Country, Wolfram continues the story of Philomac, now 17 and still living under the watchful eye of his ill-tempered master Mick Kennedy. After meeting Max and Kid, Philomac decides to free himself and the siblings from the white men’s brutality by running away into desert country. Along the way they are assisted by a pioneering family of Chinese Australian miners Jimmi and Wang Wei, who help reunite the children with their estranged mother Pansy. Wolfram is directed by Warwick Thornton and written by Steven McGregor and David Tranter, whose credits include Sweet Country. Also producing alongside Tranter is David Jowsey and Greer Simpkin of Sweet Country and Cecilia Ritchie (Limbo). It is financed with support from Screen NSW and the Adelaide Film Festival Investment Fund. Distributing is Dark Matter Distribution, with international sales managed by Memento.
    Dreaming Big: This six-part series for NITV takes an intimate look into the lives of gifted Aboriginal and Torres Strait Islander Australian youths on the cusp of becoming the nation’s next generation of sports stars. Each episode highlights two young elite athletes, showcasing their relentless pursuit to reach the pinnacle of their chosen field as they navigate family and cultural obligations while remaining focused on their goals. The series will be directed by Andrew Dillon (Le Champion) and Abraham Byrne Jameson (One by One), with writer/producer Richard Jameson (Strait to the Plate season 2) and producer Veronica Fury (And We Danced) also attached. It is financed in association with Screen Queensland.
    One Mind, One Heart: In this feature-length documentary for NITV, a historic political Yirrkala bark petition is discovered and makes its way home to Yolgnu country, evoking the spirit of decades of activism for change. The repatriation provides the opportunity to track the long political campaign – through petition, song, dance, campaigning – to keep culture strong and to have a voice for country. One Mind, One Heart is from writer/director Larissa Behrendt (The First Inventors) and producer Michaela Perske (Larapinta). It is financed in association with Screen NSW, with support from the Adelaide Film Festival Investment Fund, Spectrum Entertainment, Documentary Australia and Philanthropy via the Shark Island Institute.

    Also announced today are three television dramas, 11 feature films and two documentaries that will share in over $540,000 of development funding. The projects include feature film Native Gods from 2024 Enterprise Business recipient Djali House; comedy series Long Story Short from writer/director Tanith Glynn-Maloney (Windcatcher); documentary Fire Country, a transformative exploration of Indigenous fire knowledge and wisdom; and feature film RED, about eight Western Australian First Nations women who share the ugly secret of being surrounded by the missing.
    Click here for the full list of projects funded for Production and Development by the First Nations Department throughout the 2023/24 financial year.
    ABOUT SCREEN AUSTRALIA’S FIRST NATIONS DEPARTMENT
    Entirely led and staffed by First Nations Australians, the Department funds drama, documentary and children’s content across all platforms. The Department also identifies emerging First Nations talent, advocates for representation and funds skills development and career escalation opportunities. For more information on the First Nations Department and funding available, click here.
    Screen Australia is expanding the First Nations Department and is recruiting for the new position of Director of First Nations. This is to align with the Agency’s commitment to supporting authentic First Nations screen stories, to further champion industry practitioners and build opportunities for growth and visibility. For more information about the role, click here.
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    Media enquiries
    Maddie Walsh | Publicist
    + 61 2 8113 5915  | [email protected]
    Jessica Parry | Senior Publicist (Mon, Tue, Thu)
    + 61 428 767 836  | [email protected]
    All other general/non-media enquiries
    Sydney + 61 2 8113 5800  |  Melbourne + 61 3 8682 1900 | [email protected]

    MIL OSI News –

  • MIL-OSI: NEWS RELEASE: Calgary hosts Canada’s largest clean energy conference

    Source: GlobeNewswire (MIL-OSI)

    PHOTO: Vittoria Bellissimo, CanREA’s President and CEO, delivered opening remarks at Electricity Transformation Canada 2024 in Calgary, Alberta.

    CALGARY, Alberta, Oct. 23, 2024 (GLOBE NEWSWIRE) — More than 2,600 people attended Canada’s premier clean-energy industry conference and exhibition, the flagship conference of the Canadian Renewable Energy Association (CanREA), held again this year in Calgary, Alberta.

    Held from October 21 to 23, Electricity Transformation Canada (ETC) 2024 offered an in-depth educational program in which more than 125 speakers covered topics focusing on the risks and opportunities facing the industry, the affordability of renewables, growth across Canada, and much more.

    The three-day conference also featured more than 150 exhibitors showcasing new and innovative technology solutions from distributors, engineers, investors, installers and manufacturers in the sector of wind energy, solar energy, energy storage and other clean energy technologies.

    “We have now entered the Age of Electricity, in which affordability is paramount—and CanREA members are building the lowest-cost electricity generation sources in the world today. Complemented by energy storage, wind and solar will accelerate our transition to a sustainable energy future,” said Vittoria Bellissimo, CanREA’s President and CEO, in her opening remarks on Monday night.

    Her remarks echoed the International Energy Agency’s new World Energy Outlook, released last week, which states that clean energy is entering the energy system at an unprecedented rate, including more than 560 GW of new renewables capacity added in 2023, investment flows to clean energy projects approaching 2 trillion USD each year, and electricity use growing at twice the pace of overall energy demand over the last decade.

    “Globally, there has never been so much investment in new, affordable, clean sources of electricity,” Bellissimo pointed out, adding that, here in Canada, we need to make a commitment to clean energy, with a diverse energy strategy that will allow us to meet a rising demand for electricity.

    “In Canada, provinces across the country are actively investing in renewables and energy storage, with more than 10,000 MW of upcoming procurements currently either underway, being procured, or being planned, representing well over $20B in investment,” she said.  

    These procurements are all tracked in CanREA’s clean-energy procurement calendar, a central resource for wind, solar and energy storage procurement opportunities across Canada. CanREA launched a beta version of this calendar on day three of ETC, which is available here: https://renewablesassociation.ca/canreas-clean-energy-procurement-calendar/    

    With electricity’s role in Canada’s energy landscape growing ever-more significant, the discussions at ETC are more timely than ever.

    Don’t miss out next year, when ETC 2025 will be held October 6 to 8 at the Enercare Center in Toronto, Ontario.

    Quotes

    “We have now entered the Age of Electricity, in which affordability is paramount—and CanREA members are building the lowest-cost electricity generation sources in the world today. Complemented by energy storage, wind and solar will accelerate our transition to a sustainable energy future. Globally, there has never been so much investment in new, affordable, clean sources of electricity. In Canada, provinces across the country are actively investing in renewables and energy storage, with more than 10,000 MW of upcoming procurements currently either underway, being procured, or being planned, representing well over $20B in investment.”

    —Vittoria Bellissimo, President and CEO, Canadian Renewable Energy Association (CanREA)

    For interview opportunities, please contact:

    Bridget Wayland, Senior Director of Communications
    Canadian Renewable Energy Association
    communications@renewablesassociation.ca

    About Electricity Transformation Canada (ETC)

    Electricity Transformation Canada (ETC) is presented by the Canadian Renewable Energy Association (CanREA), in partnership with RE+ Events, the Italian German Exhibition Group and Deutsche Messe. CanREA is the voice of wind energy, solar energy, and energy storage in Canada. RE+ Events is a global event management organization with a focus on the clean energy industry. The Italian German Exhibition Group is one of the world’s largest and most active event organizers. Deutsche Messe, based in Germany, is one of the leading trade-fair companies worldwide.

    ETC’s mission is to support the accelerated transformation of Canada’s electricity sector by advancing innovative and practical solutions for a sustainable and resilient energy system. ETC aims to inspire attendees with a shared vision of innovation and collaboration to help Canada’s clean energy industry move forward. For more information: https://electricity-transformation.ca/

    About CanREA

    The Canadian Renewable Energy Association (CanREA) is the voice for wind energy, solar energy and energy storage solutions that will power Canada’s energy future. We work to create the conditions for a modern energy system through stakeholder advocacy and public engagement. Our diverse members are uniquely positioned to deliver clean, low-cost, reliable, flexible and scalable solutions for Canada’s energy needs. For more information on how Canada can use wind energy, solar energy and energy storage to help achieve its net-zero commitments, consult “Powering Canada’s Journey to Net-Zero: CanREA’s 2050 Vision.” Follow us on Twitter/X and LinkedIn. Subscribe to our newsletter here. Learn more at renewablesassociation.ca.mailto:bwayland@renewablesassociation.ca

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b3c64cd3-0d5d-4ec8-99b9-5ffad12e094c

    The MIL Network –

  • MIL-OSI USA: Casey, Boyle Deliver Funding to Modernize Pipeline in Philadelphia, Save Families $250 on Energy Costs

    US Senate News:

    Source: United States Senator for Pennsylvania Bob Casey
    More than 66 miles of cast iron pipeline will be replaced over five years to reduce methane leaks
    Funding made possible by Casey and Boyle-backed infrastructure law
    Washington, D.C. – U.S. Senator Bob Casey (D-PA) and U.S. Representative Brendan Boyle (D-PA-2) announced that Philadelphia Gas Works (PGW) will receive federal funding to help replace more than 66 miles of old cast iron natural gas pipes with modern materials to reduce gas leaks. The project builds on recent funding awards for additional pipeline replacement and will, taken together with those recent awards, create 120 jobs and save families an average of $250 per household on energy costs. This funding comes from the Pipeline and Hazardous Materials Safety Administration (PHMSA) and was made possible by the Infrastructure Investment and Jobs Act (IIJA). 
    “Thanks to the infrastructure law, we are making game-changing investments to make our communities safer. This funding will replace and modernize miles of natural gas pipeline to lower energy costs and protect Philadelphia neighborhoods from dangerous methane leaks,” said Senator Casey. “This project is another key example of how modernizing our Commonwealth’s infrastructure creates jobs, brings costs down for families, and keeps Pennsylvanians safe.”
    “I am proud to help deliver this funding for my district. Working with Sen Casey and others, we were able to pass the historic Infrastructure Investment and Jobs Act. Now, funding from this law is making a significant improvement to the aging infrastructure of Philadelphia and the region beyond. The replacement of these gas pipes will ensure a more secure transportation of hazardous materials that are essential to our daily lives. In addition to creating hundreds of jobs, this project will be the first of many in the future to bring Philadelphia’s aging infrastructure into the 21st century,” said Representative Boyle.
    The PHMSA Natural Gas Distribution and Infrastructure Safety and Modernization (NGDISM) program is a first-of-its kind grant program to help improve public safety, protect public health, and reduce methane emissions from natural gas distribution pipes in historically disadvantaged communities. Leaky natural gas pipes increase energy costs and cause extraneous methane emissions that are dangerous to communities and the environment. This funding will help Philadelphia Gas Works (PGW) complete an effort to replace more than 66 miles of publicly owned cast-iron natural gas pipe with new, polyethylene materials. The project will create 120 jobs in Philadelphia, save families an average of $250 per household on energy costs, and reduce methane emissions by more than 300 metric tons annually.
    PGW has received a total of  $125,000,000 to replace over 66 miles of cast-iron pipeline across Philadelphia.

    MIL OSI USA News –