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MIL-OSI: Western New England Bancorp, Inc. Reports Results for Three and Nine Months Ended September 30, 2024 and Declares Quarterly Cash Dividend

Source: GlobeNewswire (MIL-OSI)

WESTFIELD, Mass., Oct. 23, 2024 (GLOBE NEWSWIRE) — Western New England Bancorp, Inc. (the “Company” or “WNEB”) (NasdaqGS: WNEB), the holding company for Westfield Bank (the “Bank”), announced today the unaudited results of operations for the three and nine months ended September 30, 2024. For the three months ended September 30, 2024, the Company reported net income of $1.9 million, or $0.09 per diluted share, compared to net income of $4.5 million, or $0.21 per diluted share, for the three months ended September 30, 2023. On a linked quarter basis, net income was $1.9 million, or $0.09 per diluted share, as compared to net income of $3.5 million, or $0.17 per diluted share, for the three months ended June 30, 2024. For the nine months ended September 30, 2024, net income was $8.4 million, or $0.40 per diluted share, compared to net income of $12.6 million, or $0.58 per diluted share, for the nine months ended September 30, 2023.

The Company also announced that the Board of Directors declared a quarterly cash dividend of $0.07 per share on the Company’s common stock. The dividend will be payable on or about November 21, 2024 to shareholders of record on November 7, 2024.

James C. Hagan, President and Chief Executive Officer, commented, “We believe our Company continues to be well positioned with strong capital and access to various liquidity sources. Our financial performance has been largely impacted by the unprecedented interest rate cycle and higher funding costs in response to the sustained increase in interest rates over the last 18-24 months. While it remains unclear whether the recent decrease in interest rates represents an end to this trend, the balance sheet is positioned to benefit from this decrease and the challenge will begin to subside as our liabilities begin to reprice lower. As we continue to manage the balance sheet in this uncertain interest rate environment, we remain focused on expense management initiatives to mitigate top line pressures and improve efficiencies over the Company’s long-term. The Company also continues to focus on our core business to grow loans and deposits as well as retention of our customers. Total deposits increased $80.5 million, or 3.8%, and total loans increased $21.7 million, or 1.1%, from year-end. Our asset quality remains strong, with nonperforming loans to total loans of 0.24% at September 30, 2024.”

Hagan concluded, “The Company is considered to be well-capitalized as defined by the regulators and we remain disciplined in our capital management strategies. During the nine months ended September 30, 2024, we repurchased 714,282 shares of the Company’s common stock at an average price per share of $7.61. We continue to believe that buying back shares represents a prudent use of the Company’s capital and we are pleased to be able to continue to return value to shareholders through share repurchases. Although the banking environment has been challenged, our capital management strategies have been critical to sustaining growth in book value per share, which increased $0.44, or 4.0%, while tangible book value per share increased $0.43, or 4.2%, to $10.73. The management team remains focused and well positioned to serve our community and to enhance shareholder value over the long term.”

Key Highlights:

Loans and Deposits

At September 30, 2024, total loans were $2.0 billion and increased $21.7 million, or 1.1%, from December 31, 2023. The increase in total loans was due to an increase in commercial real estate loans of $3.0 million, or 0.3%, an increase in residential real estate loans, including home equity loans, of $26.4 million, or 3.7%, partially offset by a decrease in commercial and industrial loans of $7.0 million, or 3.2%.

At September 30, 2024, total deposits were $2.2 billion and increased $80.5 million, or 3.8%, from December 31, 2023. Core deposits, which the Company defines as all deposits except time deposits, decreased $8.3 million, or 0.5%, from $1.5 billion, or 71.5% of total deposits, at December 31, 2023, to $1.5 billion, or 68.5% of total deposits at September 30, 2024. Time deposits increased $88.8 million, or 14.5%, from $611.4 million at December 31, 2023 to $700.2 million at September 30, 2024. Brokered time deposits, which are included in time deposits, totaled $1.7 million at September 30, 2024 and at December 31, 2023. The loan-to-deposit ratio decreased from 94.6% at December 31, 2023 to 92.1% at September 30, 2024.

Liquidity

The Company’s liquidity position remains strong with solid core deposit relationships, cash, unencumbered securities, a diversified deposit base and access to diversified borrowing sources. At September 30, 2024, the Company had $1.1 billion in immediately available liquidity, compared to $615.0 million in uninsured deposits, or 27.7% of total deposits, representing a coverage ratio of 183%. Uninsured deposits of the Bank’s customers are eligible for FDIC pass-through insurance if the customer opens an IntraFi Insured Cash Sweep (“ICS”) account or a reciprocal time deposit through the Certificate of Deposit Account Registry System (“CDARS”). IntraFi allows for up to $250.0 million per customer of pass-through FDIC insurance, which would more than cover each of the Bank’s deposit customers if such customer desired to have such pass-through insurance.

Allowance for Loan Losses and Credit Quality

At September 30, 2024, the allowance for credit losses was $20.0 million, or 0.97% of total loans and 409.5% of nonperforming loans, compared to $20.3 million, or 1.00% of total loans and 315.6% of nonperforming loans at December 31, 2023. At September 30, 2024, nonperforming loans totaled $4.9 million, or 0.24% of total loans, compared to $6.4 million, or 0.32% of total loans, at December 31, 2023. Total delinquent loans decreased $1.7 million, or 28.3%, from $6.0 million, or 0.30% of total loans, at December 31, 2023 to $4.3 million, or 0.21% of total loans, at September 30, 2024. At September 30, 2024 and December 31, 2023, the Company did not have any other real estate owned.

Net Interest Margin

The net interest margin was 2.40% for the three months ended September 30, 2024 compared to 2.42% for the three months ended June 30, 2024. The net interest margin, on a tax-equivalent basis, was 2.42% for the three months ended September 30, 2024, compared to 2.44% for the three months ended June 30, 2024.

Stock Repurchase Program

On June 10, 2024, the Company announced the completion of its previously authorized stock repurchase plan (the “2022 Plan”) pursuant to which the Company was authorized to repurchase up to 1.1 million shares, or approximately 5% of its outstanding common stock, as of the date the 2022 Plan was adopted. On May 22, 2024, the Board of Directors authorized a new stock repurchase plan (the “2024 Plan”) under which the Company may repurchase up to 1.0 million shares, or approximately 4.6%, of the Company’s then-outstanding shares of common stock.

During the three months ended September 30, 2024, the Company repurchased 244,441 shares of common stock under the 2024 Plan, with an average price per share of $8.18. During the nine months ended September 30, 2024, the Company repurchased 714,282 shares of common stock with an average price per share of $7.61. As of September 30, 2024, there were 692,318 shares of common stock available for repurchase under the 2024 Plan.

The repurchase of shares under the stock repurchase program is administered through an independent broker. The shares of common stock repurchased under the 2024 Plan have been and will continue to be purchased from time to time at prevailing market prices, through open market or privately negotiated transactions, or otherwise, depending upon market conditions. There is no guarantee as to the exact number, or value, of shares that will be repurchased by the Company, and the Company may discontinue repurchases at any time that the Company’s management (“Management”) determines additional repurchases are not warranted. The timing and amount of additional share repurchases under the 2024 Plan will depend on a number of factors, including the Company’s stock price performance, ongoing capital planning considerations, general market conditions, and applicable legal requirements.

Book Value and Tangible Book Value

The Company’s book value per share was $11.40 at September 30, 2024 compared to $10.96 at December 31, 2023, while tangible book value per share, a non-GAAP financial measure, increased $0.43, or 4.2%, from $10.30 at December 31, 2023 to $10.73 at September 30, 2024. See pages 19-21 for the related tangible book value calculation and a reconciliation of GAAP to non-GAAP financial measures.

Net Income for the Three Months Ended September 30, 2024 Compared to the Three Months Ended June 30, 2024

The Company reported net income of $1.9 million, or $0.09 per diluted share, for the three months ended September 30, 2024, compared to net income of $3.5 million, or $0.17 per diluted share, for the three months ended June 30, 2024. Net interest income increased $258,000, or 1.8%, the provision for credit losses increased $1.2 million, non-interest income decreased $693,000, or 18.1%, and non-interest expense increased $92,000, or 0.6%. Return on average assets and return on average equity were 0.29% and 3.19%, respectively, for the three months ended September 30, 2024, compared to 0.55% and 6.03%, respectively, for the three months ended June 30, 2024.

Net Interest Income and Net Interest Margin

On a sequential quarter basis, net interest income, our primary driver of revenues, increased $258,000, or 1.8%, to $14.7 million for the three months ended September 30, 2024, from $14.5 million for the three months ended June 30, 2024. The increase in net interest income was primarily due to an increase in interest income of $1.0 million, or 3.9%, partially offset by an increase in interest expense of $780,000, or 6.3%.

The net interest margin was 2.40% for the three months ended September 30, 2024, compared to 2.42% for the three months ended June 30, 2024. The net interest margin, on a tax-equivalent basis, was 2.42% for the three months ended September 30, 2024, compared to 2.44% for the three months ended June 30, 2024. The decrease in the net interest margin was primarily due to an increase in the average cost of interest-bearing liabilities, which was partially offset by an increase in the average yield on interest-earning assets. During the three months ended September 30, 2024 and the three months ended June 30, 2024, the Company had a fair value hedge which contributed to an increase in the net interest margin of seven basis points. Excluding the interest income attributed to the fair value hedge, the net interest margin was 2.33% and 2.35%, for the three months ended September 30, 2024 and the three months ended June 30, 2024, respectively. The fair value hedge is scheduled to mature in October of 2024.

The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, was 4.54% for the three months ended September 30, 2024, compared to 4.49% for the three months ended June 30, 2024. The average loan yield, without the impact of tax-equivalent adjustments, was 4.90% for the three months ended September 30, 2024, compared to 4.85% for the three months ended June 30, 2024. During the three months ended September 30, 2024, average interest-earning assets increased $40.6 million, or 1.7% to $2.4 billion, primarily due to an increase in average loans of $21.5 million, or 1.1%, an increase in average short-term investments, consisting of cash and cash equivalents, $17.7 million, or 123.6%, and an increase in average other investments of $1.6 million, or 11.0%.

The average cost of total funds, including non-interest bearing accounts and borrowings, increased eight basis points from 2.16% for the three months ended June 30, 2024 to 2.24% for the three months ended September 30, 2024. The average cost of core deposits, which the Company defines as all deposits except time deposits, increased six basis points to 0.93% for the three months ended September 30, 2024, from 0.87% for the three months ended June 30, 2024. The average cost of time deposits increased five basis points from 4.39% for the three months ended June 30, 2024 to 4.44% for the three months ended September 30, 2024. The average cost of borrowings, including subordinated debt, increased five basis points from 5.00% for the three months ended June 30, 2024 to 5.05% for the three months ended September 30, 2024. Average demand deposits, an interest-free source of funds, increased $10.4 million, or 1.9%, from $548.8 million, or 25.7% of total average deposits, for the three months ended June 30, 2024, to $559.2 million, or 25.7% of total average deposits, for the three months ended September 30, 2024.

Provision for (Reversal of) Credit Losses

During the three months ended September 30, 2024, the Company recorded a provision for credit losses of $941,000, compared to a reversal for credit losses of $294,000 during the three months ended June 30, 2024. The provision for credit losses includes a provision for credit losses on loans of $609,000 and a reserve on unfunded loan commitments of $332,000. The increase in the provision for credit losses on loans was due to changes in the economic environment and related adjustments to the quantitative components of the CECL methodology as well as growth in the loan portfolio. The provision for credit losses was determined by a number of factors: the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve’s actions to control inflation. The increase in reserves on unfunded loan commitments was due to an increase in commercial real estate unfunded loan commitments of $33.5 million, or 20.7%, from $161.8 million at June 30, 2024 to $195.3 million at September 30, 2024. Management continues to monitor macroeconomic variables related to increasing interest rates, inflation and the concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment.

During the three months ended September 30, 2024, the Company recorded net charge-offs of $98,000, compared to net charge-offs of $10,000 for the three months ended June 30, 2024.

Non-Interest Income

On a sequential quarter basis, non-interest income decreased $693,000, or 18.1%, to $3.1 million for the three months ended September 30, 2024, from $3.8 million for the three months ended June 30, 2024. Service charges and fees on deposits were $2.3 million for the three months ended September 30, 2024 and the three months ended June 30, 2024. Income from bank-owned life insurance (“BOLI”) decreased $32,000, or 6.4%, from the three months ended June 30, 2024 to $470,000, for the three months ended September 30, 2024. During the three months ended September 30, 2024, the Company reported $74,000 in other income from loan-level swap fees on commercial loans and did not have comparable income during the three months ended June 30, 2024. During the three months ended September 30, 2024, the Company sold $20.1 million in fixed rate residential loans to the secondary market and reported income from mortgage banking activities of $246,000 and did not have comparable income during the three months ended June 30, 2024. During the three months ended September 30, 2024 and the three months ended June 30, 2024, the Company reported unrealized gains on marketable equity securities of $10,000 and $4,000, respectively. During the three months ended June 30, 2024, the Company reported a gain on non-marketable equity investments of $987,000 and did not have comparable gains or losses from non-marketable equity investments during the three months ended September 30, 2024.

Non-Interest Expense

For the three months ended September 30, 2024, non-interest expense increased $92,000, or 0.6%, to $14.4 million from $14.3 million for the three months ended June 30, 2024. Salaries and employee benefits increased $211,000, or 2.7%, to $8.1 million, software expenses increased $46,000, or 8.1%, data processing expense increased $23,000, or 2.7%, FDIC insurance expense increased $15,000, or 4.6%, and debit card and ATM processing fees increased $6,000, or 0.9%. During the same period, these increases were partially offset by a decrease in professional fees of $41,000, or 7.1%, a decrease in advertising expense of $68,000, or 20.1%, a decrease in occupancy expense of $1,000, or 0.1%, and a decrease in other non-interest expense of $99,000, or 7.0%.

For the three months ended September 30, 2024, the efficiency ratio was 80.6%, compared to 78.2% for the three months ended June 30, 2024. For the three months ended September 30, 2024, the adjusted efficiency ratio, a non-GAAP financial measure, was 80.7% compared to 82.7% for the three months ended June 30, 2024. The increases in the efficiency ratio and the adjusted efficiency ratio were driven by lower revenues, defined as the sum of net interest income and non-interest income, during the three months ended September 30, 2024. See pages 19-21 for the related adjusted efficiency ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.

Income Tax Provision

Income tax expense for the three months ended September 30, 2024 was $618,000, or an effective tax rate of 24.5%, compared to $771,000, or an effective tax rate of 18.0%, for the three months ended June 30, 2024. The increase in the effective tax rate for the three months ended September 30, 2024 was driven by the Company’s projections of pre-tax income for the year ending December 31, 2024.

Net Income for the Three Months Ended September 30, 2024 Compared to the Three Months Ended September 30, 2023.

The Company reported net income of $1.9 million, or $0.09 per diluted share, for the three months ended September 30, 2024, compared to net income of $4.5 million, or $0.21 per diluted share, for the three months ended September 30, 2023. Net interest income decreased $1.7 million, or 10.1%, provision for credit losses increased $587,000, non-interest income decreased $471,000, or 13.0%, and non-interest expense increased $288,000, or 2.0%, during the same period. Return on average assets and return on average equity were 0.29% and 3.19%, respectively, for the three months ended September 30, 2024, compared to 0.70% and 7.60%, respectively, for the three months ended September 30, 2023.

Net Interest Income and Net Interest Margin

Net interest income decreased $1.7 million, or 10.1%, to $14.7 million, for the three months ended September 30, 2024, from $16.4 million for the three months ended September 30, 2023. The decrease in net interest income was due to an increase in interest expense of $3.6 million, or 37.8%, partially offset by an increase in interest and dividend income of $1.9 million, or 7.5%. Interest expense on deposits increased $3.5 million, or 44.9%, and interest expense on borrowings increased $133,000, or 7.3%. The increase in interest expense was a result of competitive pricing on deposits due to the continued higher interest rate environment and the unfavorable shift in the deposit mix from low cost core deposits to high cost time deposits.

The net interest margin was 2.40% for the three months ended September 30, 2024, compared to 2.70% for the three months ended September 30, 2023. The net interest margin, on a tax-equivalent basis, was 2.42% for the three months ended September 30, 2024, compared to 2.72% for the three months ended September 30, 2023. The decrease in the net interest margin was primarily due to an increase in the average cost of interest-bearing liabilities and the unfavorable shift in the deposit mix from low cost core deposits to high cost time deposits, which was partially offset by an increase in the average yield on interest-earning assets. During the three months ended September 30, 2024 and the three months ended September 30, 2023, the Company had a fair value hedge which contributed to an increase in the net interest margin of seven basis points. Excluding the interest income from the fair value hedge, the net interest margin was 2.33% and 2.64%, for the three months ended September 30, 2024 and three months ended September 30, 2023, respectively. The fair value hedge is scheduled to mature in October of 2024.

The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, was 4.54% for the three months ended September 30, 2024, compared to 4.28% for the three months ended September 30, 2023. The average loan yield, without the impact of tax-equivalent adjustments, was 4.90% for the three months ended September 30, 2024, compared to 4.64% for the three months ended September 30, 2023. During the three months ended September 30, 2024, average interest-earning assets increased $38.2 million, or 1.6% to $2.4 billion, primarily due to an increase in average loans of $31.3 million, or 1.6%, an increase in average short-term investments, consisting of cash and cash equivalents, of $9.7 million, or 43.4%, an increase in average other investments of $3.7 million, or 30.8%, partially offset by a decrease in average securities of $6.5 million, or 1.8%.

The average cost of total funds, including non-interest bearing accounts and borrowings, increased 60 basis points from 1.64% for the three months ended September 30, 2023 to 2.24% for the three months ended September 30, 2024. The average cost of core deposits, which the Company defines as all deposits except time deposits, increased 23 basis points to 0.93% for the three months ended September 30, 2024, from 0.70% for the three months ended September 30, 2023. The average cost of time deposits increased 98 basis points from 3.46% for the three months ended September 30, 2023 to 4.44% for the three months ended September 30, 2024. The average cost of borrowings, including subordinated debt, increased 24 basis points from 4.81% for the three months ended September 30, 2023 to 5.05% for the three months ended September 30, 2024. Average demand deposits, an interest-free source of funds, decreased $32.7 million, or 5.5%, from $591.9 million, or 27.5% of total average deposits, for the three months ended September 30, 2023, to $559.2 million, or 25.7% of total average deposits, for the three months ended September 30, 2024.

Provision for Credit Losses

During the three months ended September 30, 2024, the Company recorded a provision for credit losses of $941,000, compared to a provision for credit losses of $354,000, during the three months ended September 30, 2023. The increase was primarily due to an increase in the loan portfolio, specifically unfunded commercial real estate loan commitments, as well as changes in the economic environment and related adjustments to the quantitative components of the CECL methodology. The provision for credit losses was determined by a number of factors: the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve’s actions to control inflation. Management continues to monitor macroeconomic variables related to increasing interest rates, inflation and the concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment.

The Company recorded net charge-offs of $98,000 for the three months ended September 30, 2024, as compared to net charge-offs of $78,000 for the three months ended September 30, 2023.

Non-Interest Income

Non-interest income decreased $471,000, or 13.0%, from $3.6 million for the three months ended September 30, 2023 to $3.1 million for the three months ended September 30, 2024. Service charges and fees on deposits increased $196,000, or 9.1%, and income from BOLI increased $16,000, or 3.5%, from the three months ended September 30, 2023 to the three months ended September 30, 2024. During the three months ended September 30, 2024, the Company reported $74,000 in other income from loan-level swap fees on commercial loans and did not have comparable income during the three months ended September 30, 2023. During the three months ended September 30, 2024, the Company reported income of $246,000 in mortgage banking activities due to the sale of fixed rate residential loans and did not have comparable income during the three months ended September 30, 2023. During the three months ended September 30, 2024, the Company reported $10,000 in unrealized gains of marketable equity securities and did not have comparable income during the three months ended September 30, 2023. During the three months ended September 30, 2023, the Company reported a gain on non-marketable equity investments of $238,000 and did not have comparable non-interest income during the three months ended September 30, 2024. During the three months ended September 30, 2023, non-interest income included a non-taxable gain of $778,000 on BOLI death benefits. The Company did not have comparable income during the three months ended September 30, 2024. During the three months ended September 30, 2023, the Company reported a loss on the sales of premises and equipment of $3,000 and did not have comparable expense during the three months ended September 30, 2024.

Non-Interest Expense

For the three months ended September 30, 2024, non-interest expense increased $288,000, or 2.0%, to $14.4 million from $14.1 million, for the three months ended September 30, 2023. Salaries and employee benefits increased $157,000, or 2.0%, to $8.1 million, debit card and ATM processing fees increased $87,000, or 15.5%, software expenses increased $83,000, or 15.7%, occupancy expense increased $58,000, or 5.0%, data processing expense increased $45,000, or 5.5%, other non-interest income increased $54,000, or 4.3%, and furniture and equipment related expenses increased $1,000, or 0.2%. These increases were partially offset by a decrease in professional fees of $103,000, or 16.0%, a decrease in advertising expense of $91,000, or 25.1%, and a decrease in FDIC insurance expense of $3,000, or 0.9%.

For the three months ended September 30, 2024, the efficiency ratio was 80.6%, compared to 70.6% for the three months ended September 30, 2023. For the three months ended September 30, 2024, the adjusted efficiency ratio, a non-GAAP financial measure, was 80.7% compared to 74.4% for the three months ended September 30, 2023. The increases in the efficiency ratio and the non-GAAP adjusted efficiency ratio were driven by lower revenues during the three months ended September 30, 2024, compared to the three months ended September 30, 2023. See pages 19-21 for the related adjusted efficiency ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.

Income Tax Provision

Income tax expense for the three months ended September 30, 2024 was $618,000, or an effective tax rate of 24.5%, compared to $1.0 million, or an effective tax rate of 18.7%, for the three months ended September 30, 2023. The effective tax rate for the three months ended September 30, 2023 included $778,000 in non-taxable BOLI death benefits.

Net Income for the Nine Months Ended September 30, 2024 Compared to the Nine Months Ended September 30, 2023

For the nine months ended September 30, 2024, the Company reported net income of $8.4 million, or $0.40 per diluted share, compared to $12.6 million, or $0.58 per diluted share, for the nine months ended September 30, 2023. Return on average assets and return on average equity were 0.44% and 4.74% for the nine months ended September 30, 2024, respectively, compared to 0.66% and 7.19% for the nine months ended September 30, 2023, respectively.

Net Interest Income and Net Interest Margin

During the nine months ended September 30, 2024, net interest income decreased $7.2 million, or 13.9%, to $44.5 million, compared to $51.7 million for the nine months ended September 30, 2023. The decrease in net interest income was due to an increase in interest expense of $14.1 million, or 62.3%, partially offset by an increase in interest and dividend income of $6.9 million, or 9.3%. The $14.1 million increase in interest expense was primarily due to an increase of $12.9 million, or 72.3%, in interest expense on deposits as a result of competitive pricing and an unfavorable shift in the deposit mix from low cost core deposits to high cost time deposits.

The net interest margin for the nine months ended September 30, 2024 was 2.46%, compared to 2.88% during the nine months ended September 30, 2023. The net interest margin, on a tax-equivalent basis, was 2.48% for the nine months ended September 30, 2024, compared to 2.90% for the nine months ended September 30, 2023. The decrease in the net interest margin was primarily due to an increase in the average cost of interest-bearing liabilities and the unfavorable shift in the deposit mix from low cost core to high cost time deposits, which was partially offset by an increase in the average yield on interest-earning assets. During the nine months ended September 30, 2024 and the nine months ended September 30, 2023, the Company had a fair value hedge which contributed to an increase in the net interest margin of seven and three basis points, respectively. Excluding the interest income from the fair value hedge, the net interest margin was 2.39% and 2.85%, for the nine months ended September 30, 2024 and the nine months ended September 30, 2023, respectively. The fair value hedge is scheduled to mature in October of 2024.

The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, was 4.49% for the nine months ended September 30, 2024, compared to 4.14% for the nine months ended September 30, 2023. The average loan yield, without the impact of tax-equivalent adjustments, was 4.86% for the nine months ended September 30, 2024, compared to 4.49% for the nine months ended September 30, 2023. During the nine months ended September 30, 2024, average interest-earning assets increased $14.5 million, or 0.6%, to $2.4 billion, from the same period in 2023. The increase was primarily due to an increase in average loans of $23.4 million, or 1.2%, an increase in average short-term investments, consisting of cash and cash equivalents, of $5.7 million, or 44.2%, and an increase in other interest-earning assets of $1.7 million, or 13.7%, partially offset by a decrease in average securities of $16.3 million, or 4.4%.

The average cost of total funds, including non-interest bearing accounts and borrowings, increased 80 basis points from 1.32% for the nine months ended September 30, 2023 to 2.12% for the nine months ended September 30, 2024. The average cost of core deposits, which the Company defines as all deposits except time deposits, increased 24 basis points to 0.86% for the nine months ended September 30, 2024, from 0.62% for the nine months ended September 30, 2023. The average cost of time deposits increased 160 basis points from 2.72% for the nine months ended September 30, 2023 to 4.32% for the nine months ended September 30, 2024. The average cost of borrowings, including subordinated debt, increased 15 basis points from 4.84% for the nine months ended September 30, 2023 to 4.99% for the nine months ended September 30, 2024. Average demand deposits, an interest-free source of funds, decreased $52.1 million, or 8.6%, from $607.3 million, or 28.0% of total average deposits, for the nine months ended September 30, 2023, to $555.3 million, or 25.8% of total average deposits, for the nine months ended September 30, 2024.

Provision for Credit Losses

During the nine months ended September 30, 2024, the Company recorded a provision for credit losses of $97,000, compared to a provision for credit losses of $386,000 during the nine months ended September 30, 2023. The decrease was primarily due to changes in the loan mix as well as economic environment and related adjustments to the quantitative components of the CECL methodology. The provision for credit losses was determined by a number of factors: the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve’s actions to control inflation. Management continues to monitor macroeconomic variables related to increasing interest rates, inflation and the concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment.

During the nine months ended September 30, 2024, the Company recorded net charge-offs of $41,000 compared to net charge-offs of $1.9 million for the nine months ended September 30, 2023. The charge-offs during the nine months ended September 30, 2023 were related to one commercial relationship acquired in October 2016 from Chicopee Bancorp, Inc. The Company recorded a $1.9 million charge-off on the relationship, which represented the non-accretable credit mark that was required to be grossed-up to the loan’s amortized cost basis with a corresponding increase to the allowance for credit losses under the CECL implementation.

Non-Interest Income

For the nine months ended September 30, 2024, non-interest income increased $1.5 million, or 17.9%, from $8.2 million during the nine months ended September 30, 2023 to $9.6 million. Service charges and fees on deposits increased $328,000, or 5.0%, and income from BOLI increased $37,000, or 2.7%.

During the nine months ended September 30, 2024, the Company reported a gain of $987,000 on non-marketable equity investments, compared to a gain of $590,000 during the nine months ended September 30, 2023. During the nine months ended September 30, 2024, the Company reported income of $246,000 from mortgage banking activities due to the sale of fixed rate residential real estate loans and did not have comparable income during the nine months ended September 30, 2023. During the nine months ended September 30, 2024, the Company reported $74,000 in other income from loan-level swap fees on commercial loans and did not have comparable income during the nine months ended September 30, 2023. During the nine months ended September 30, 2024, the Company reported $22,000 in unrealized gains of marketable equity securities and did not have comparable income during the nine months ended September 30, 2023. Gains and losses from the investment portfolio vary from quarter to quarter based on market conditions, as well as the related yield curve and valuation changes. During the nine months ended September 30, 2024, the Company reported a loss on the sales of premises and equipment of $6,000 compared to $3,000 during the nine months ended September 30, 2023. During the nine months ended September 30, 2023, the Company recorded a $1.1 million final termination expense related to the defined benefit pension plan (the “DB Plan”) termination. The Company did not have comparable income or expense during the nine months ended September 30, 2024. During the nine months ended September 30, 2023, non-interest income included a non-taxable gain of $778,000 on BOLI death benefits. The Company did not have comparable income during the nine months ended September 30, 2024.

Non-Interest Expense

For the nine months ended September 30, 2024, non-interest expense decreased $63,000, or 0.1%, to $43.5 million, compared to $43.6 million for the nine months ended September 30, 2023. The decrease in non-interest expense was primarily due to a decrease in professional fees of $513,000, or 23.3%, a decrease in salaries and employee benefits of $218,000, or 0.9%, a decrease in advertising expense of $159,000, or 14.2%, a decrease in other non-interest expense of $120,000, or 2.9%, and a decrease in furniture and equipment related expense of $10,000, or 0.7%. These decreases were partially offset by an increase in software related expenses of $309,000, or 19.7%, an increase in debit card and ATM processing fees of $264,000, or 16.7%, an increase in data processing of $208,000, or 8.8%, an increase in FDIC insurance expense of $88,000, or 9.0%, and an increase in occupancy expense of $88,000, or 2.4%.

For the nine months ended September 30, 2024, the efficiency ratio was 80.3%, compared to 72.7% for the nine months ended September 30, 2023. For the nine months ended September 30, 2024, the adjusted efficiency ratio, a non-GAAP financial measure, was 81.8% compared to 73.0% for the nine months ended September 30, 2023. The increases in the efficiency ratio and the non-GAAP adjusted efficiency ratio were driven by lower revenues during the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023. See pages 19-21 for the related adjusted efficiency ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.

Income Tax Provision

Income tax expense for the nine months ended September 30, 2024 was $2.2 million, representing an effective tax rate of 20.9%, compared to $3.4 million, representing an effective tax rate of 21.3%, for nine months ended September 30, 2023.

Balance Sheet

At September 30, 2024, total assets were $2.6 billion, an increase of $75.9 million, or 3.0%, from December 31, 2023. The increase in total assets was primarily due to an increase in cash and cash equivalents of $44.0 million, or 152.4%, an increase in total loans of $21.7 million, or 1.1%, and an increase in investment securities of $8.7 million, or 2.4%.

Investments

At September 30, 2024, the investment securities portfolio totaled $369.4 million, or 14.0% of total assets, compared to $360.7 million, or 14.1%, of total assets, at December 31, 2023. At September 30, 2024, the Company’s available-for-sale (“AFS”) securities portfolio, recorded at fair market value, increased $18.8 million, or 13.7%, from $137.1 million at December 31, 2023 to $155.9 million. The held-to-maturity (“HTM”) securities portfolio, recorded at amortized cost, decreased $10.1 million, or 4.5%, from $223.4 million at December 31, 2023 to $213.3 million at September 30, 2024.

At September 30, 2024, the Company reported unrealized losses on the AFS securities portfolio of $24.6 million, or 13.6% of the amortized cost basis of the AFS securities portfolio, compared to unrealized losses of $29.2 million, or 17.5% of the amortized cost basis of the AFS securities at December 31, 2023. At September 30, 2024, the Company reported unrealized losses on the HTM securities portfolio of $30.7 million, or 14.4%, of the amortized cost basis of the HTM securities portfolio, compared to $35.7 million, or 16.0% of the amortized cost basis of the HTM securities portfolio at December 31, 2023.

The securities in which the Company may invest are limited by regulation. Federally chartered savings banks have authority to invest in various types of assets, including U.S. Treasury obligations, securities of various government-sponsored enterprises, mortgage-backed securities, certain certificates of deposit of insured financial institutions, repurchase agreements, overnight and short-term loans to other banks, corporate debt instruments and marketable equity securities. The securities, with the exception of $4.6 million in corporate bonds, are issued by the United States government or government-sponsored enterprises and are therefore either explicitly or implicitly guaranteed as to the timely payment of contractual principal and interest. These positions are deemed to have no credit impairment, therefore, the disclosed unrealized losses with the securities portfolio relate primarily to changes in prevailing interest rates. In all cases, price improvement in future periods will be realized as the issuances approach maturity.

Management regularly reviews the portfolio for securities in an unrealized loss position. At September 30, 2024 and December 31, 2023, the Company did not record any credit impairment charges on its securities portfolio and attributed the unrealized losses primarily due to fluctuations in general interest rates or changes in expected prepayments and not due to credit quality. The primary objective of the Company’s investment portfolio is to provide liquidity and to secure municipal deposit accounts while preserving the safety of principal. The Company expects to strategically redeploy available cash flows from the securities portfolio to fund loan growth and deposit outflows.

Total Loans

Total loans increased $21.7 million, or 1.1%, from December 31, 2023, to $2.0 billion at September 30, 2024. The increase in total loans was due to an increase in commercial real estate loans of $3.0 million, or 0.3%, an increase in residential real estate loans, including home equity loans, of $26.4 million, or 3.7%, partially offset by a decrease in commercial and industrial loans of $7.0 million, or 3.2%. During the three months ended September 30, 2024, the Company sold $20.1 million in fixed rate residential loans to the secondary market with servicing retained.

The following table presents the summary of the loan portfolio by the major classification of the loan at the periods indicated:

	September 30, 2024		December 31, 2023
	(Dollars in thousands)

Commercial real estate loans:
Non-owner occupied	$	878,265	$	881,643
Owner-occupied		204,524		198,108
Total commercial real estate loans		1,082,789		1,079,751

Residential real estate loans:
Residential		631,649		612,315
Home equity		116,923		109,839
Total residential real estate loans		748,572		722,154

Commercial and industrial loans		210,390		217,447

Consumer loans		4,631		5,472
Total gross loans		2,046,382		2,024,824
Unamortized premiums and net deferred loans fees and costs		2,620		2,493
Total loans	$	2,049,002	$	2,027,317

Credit Quality

Management continues to closely monitor the loan portfolio for any signs of deterioration in borrowers’ financial condition and also in light of speculation that commercial real estate values may deteriorate as the market continues to adjust to higher vacancies and interest rates. We continue to proactively take steps to mitigate risk in our loan portfolio.

Total delinquency was $4.3 million, or 0.21% of total loans, at September 30, 2024, compared to $6.0 million, or 0.30% of total loans at December 31, 2023. At September 30, 2024, nonperforming loans totaled $4.9 million, or 0.24% of total loans, compared to $6.4 million, or 0.32% of total loans, at December 31, 2023. Total nonperforming assets totaled $4.9 million, or 0.18% of total assets, at September 30, 2024, compared to $6.4 million, or 0.25% of total assets, at December 31, 2023. At September 30, 2024 and December 31, 2023, there were no loans 90 or more days past due and still accruing interest. At September 30, 2024 and December 31, 2023, the Company did not have any other real estate owned.

At September 30, 2024, the allowance for credit losses as a percentage of total loans was 0.97% as compared to 1.00% at December 31, 2023. At September 30, 2024, the allowance for credit losses as a percentage of nonperforming loans was 409.5% as compared to 315.6% at December 31, 2023.

Total classified loans, defined as special mention and substandard loans, increased $3.7 million, or 9.4%, from $39.5 million, or 1.9% of total loans, at December 31, 2023 to $43.2 million, or 2.1%, of total loans at September 30, 2024. We continue to maintain diversity among property types and within our geographic footprint. More details on the diversification of the loan portfolio are available in the supplementary earnings presentation.

Deposits

Total deposits increased $80.5 million, or 3.8%, from $2.1 billion at December 31, 2023 to $2.2 billion at September 30, 2024. Core deposits, which the Company defines as all deposits except time deposits, decreased $8.3 million, or 0.5%, from $1.5 billion, or 71.5% of total deposits, at December 31, 2023, to $1.5 billion, or 68.5% of total deposits, at September 30, 2024. Non-interest-bearing deposits decreased $10.9 million, or 1.9%, to $568.7 million, money market accounts increased $1.5 million, or 0.2%, to $635.8 million, savings accounts decreased $8.2 million, or 4.4%, to $179.2 million and interest-bearing checking accounts increased $9.3 million, or 7.1%, to $140.3 million. Time deposits increased $88.8 million, or 14.5%, from $611.4 million at December 31, 2023 to $700.2 million at September 30, 2024. Brokered time deposits, which are included in time deposits, totaled $1.7 million at September 30, 2024 and at December 31, 2023.

The table below is a summary of our deposit balances for the periods noted:

	September 30, 2024		June 30, 2024		December 31, 2023
	(Dollars in thousands)
Core Deposits:
Demand accounts	$	568,685	$	553,329	$	579,595
Interest-bearing accounts		140,332		149,100		131,031
Savings accounts		179,214		186,171		187,405
Money market accounts		635,824		611,501		634,361
Total Core Deposits	$	1,524,055	$	1,500,101	$	1,532,392

Time Deposits:		700,151		671,708		611,352
Total Deposits:	$	2,224,206	$	2,171,809	$	2,143,744

During the nine months ended September 30, 2024, the Company continued to experience an unfavorable shift in deposit mix from low cost core deposits to high cost time deposits as customers continue to migrate to higher deposit rates. The Company continues to focus on the maintenance, development, and expansion of its core deposit base to meet funding requirements and liquidity needs, with an emphasis on retaining a long-term customer relationship base by competing for and retaining deposits in our local market. At September 30, 2024, the Bank’s uninsured deposits represented 27.7% of total deposits, compared to 26.8% at December 31, 2023.

FHLB and Subordinated Debt

At September 30, 2024, total borrowings decreased $4.1 million, or 2.6%, from $156.5 million at December 31, 2023 to $152.4 million. Short-term borrowings decreased $11.7 million, or 72.7%, to $4.4 million, compared to $16.1 million at December 31, 2023. Long-term borrowings increased $7.6 million, or 6.3%, from $120.6 million at December 31, 2023 to $128.3 million at September 30, 2024. At September 30, 2024 and December 31, 2023, borrowings also consisted of $19.7 million in fixed-to-floating rate subordinated notes.

The Company utilized the Bank Term Funding Program (“BTFP”), which was created in March 2023 to enhance banking system liquidity by allowing institutions to pledge certain securities at par value and borrow at a rate of ten basis points over the one-year overnight index swap rate. The BTFP was available to federally insured depository institutions in the U.S., with advances having a term of up to one year with no prepayment penalties. The BTFP ceased extending new advances in March 2024. At December 31, 2023, the Company’s outstanding balance under the BTFP was $90.0 million. There were no outstanding balance under the BTFP at September 30, 2024.

As of September 30, 2024, the Company had $452.0 million of additional borrowing capacity at the Federal Home Loan Bank, $404.9 million of additional borrowing capacity under the Federal Reserve Bank Discount Window and $25.0 million of other unsecured lines of credit with correspondent banks.

Capital

At September 30, 2024, shareholders’ equity was $240.7 million, or 9.1% of total assets, compared to $237.4 million, or 9.3% of total assets, at December 31, 2023. The change was primarily attributable to a decrease in accumulated other comprehensive loss of $3.4 million, cash dividends paid of $4.5 million, repurchase of shares at a cost of $5.6 million, partially offset by net income of $8.4 million. At September 30, 2024, total shares outstanding were 21,113,408.

The Company’s regulatory capital ratios continue to be strong and in excess of regulatory minimum requirements to be considered well-capitalized as defined by regulators and internal Company targets. Total Risk-Based Capital Ratio was 14.4% at September 30, 2024 and 14.7% at December 31, 2023. The Bank’s Tier 1 Leverage Ratio to adjusted average assets was 9.61% at September 30, 2024 and 9.62% at December 31, 2023.

Dividends

Although the Company has historically paid quarterly dividends on its common stock and currently intends to continue to pay such dividends, the Company’s ability to pay such dividends depends on a number of factors, including restrictions under federal laws and regulations on the Company’s ability to pay dividends, and as a result, there can be no assurance that dividends will continue to be paid in the future.

About Western New England Bancorp, Inc.

Western New England Bancorp, Inc. is a Massachusetts-chartered stock holding company and the parent company of Westfield Bank, CSB Colts, Inc., Elm Street Securities Corporation, WFD Securities, Inc. and WB Real Estate Holdings, LLC. Western New England Bancorp, Inc. and its subsidiaries are headquartered in Westfield, Massachusetts and operate 25 banking offices throughout western Massachusetts and northern Connecticut. To learn more, visit our website at www.westfieldbank.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the Company’s financial condition, liquidity, results of operations, future performance, and business. Forward-looking statements may be identified by the use of such words as “believe,” “expect,” “anticipate,” “should,” “planned,” “estimated,” and “potential.” Examples of forward-looking statements include, but are not limited to, estimates with respect to our financial condition, results of operations and business that are subject to various factors which could cause actual results to differ materially from these estimates. These factors include, but are not limited to:

unpredictable changes in general economic conditions, financial markets, fiscal, monetary and regulatory policies, including actual or potential stress in the banking industry;
the duration and scope of potential pandemics, including the emergence of new variants and the response thereto;
unstable political and economic conditions which could materially impact credit quality trends and the ability to generate loans and gather deposits;
inflation and governmental responses to inflation, including recent sustained increases and potential future increases in interest rates that reduce margins;
the effect on our operations of governmental legislation and regulation, including changes in accounting regulation or standards, the nature and timing of the adoption and effectiveness of new requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, Basel guidelines, capital requirements and other applicable laws and regulations;
significant changes in accounting, tax or regulatory practices or requirements;
new legal obligations or liabilities or unfavorable resolutions of litigation;
disruptive technologies in payment systems and other services traditionally provided by banks;
the highly competitive industry and market area in which we operate;
changes in business conditions and inflation;
operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity, technological changes, vendor issues, business interruption, and fraud risks;
failure or circumvention of our internal controls or procedures;
changes in the securities markets which affect investment management revenues;
increases in Federal Deposit Insurance Corporation deposit insurance premiums and assessments;
the soundness of other financial services institutions which may adversely affect our credit risk;
certain of our intangible assets may become impaired in the future;
new lines of business or new products and services, which may subject us to additional risks;
changes in key management personnel which may adversely impact our operations;
severe weather, natural disasters, acts of war or terrorism and other external events which could significantly impact our business; and
other risk factors detailed from time to time in our SEC filings.

Although we believe that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from the results discussed in these forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We do not undertake any obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except to the extent required by law.

WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES Consolidated Statements of Net Income and Other Data (Dollars in thousands, except per share data) Unaudited)

	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,
		2024			2024			2024			2023			2023			2024			2023
INTEREST AND DIVIDEND INCOME:
Loans	$	25,134		$	24,340		$	24,241		$	23,939		$	23,451		$	73,715		$	67,230
Securities		2,121			2,141			2,114			2,094			2,033			6,376			6,276
Other investments		189			148			136			140			166			473			418
Short-term investments		396			173			113			597			251			682			424
Total interest and dividend income		27,840			26,802			26,604			26,770			25,901			81,246			74,348

INTEREST EXPENSE:
Deposits		11,165			10,335			9,293			8,773			7,704			30,793			17,876
Short-term borrowings		71			186			283			123			117			540			1,466
Long-term debt		1,622			1,557			1,428			1,444			1,444			4,607			2,513
Subordinated debt		254			254			254			254			253			762			760
Total interest expense		13,112			12,332			11,258			10,594			9,518			36,702			22,615

Net interest and dividend income		14,728			14,470			15,346			16,176			16,383			44,544			51,733

PROVISION FOR (REVERSAL OF) CREDIT LOSSES		941			(294	)		(550	)		486			354			97			386

Net interest and dividend income after provision for (reversal of) credit losses		13,787			14,764			15,896			15,690			16,029			44,447			51,347

NON-INTEREST INCOME:
Service charges and fees on deposits		2,341			2,341			2,219			2,283			2,145			6,901			6,573
Income from bank-owned life insurance		470			502			453			432			454			1,425			1,388
Unrealized gain (loss) on marketable equity securities		10			4			8			(1	)		–			22			–
Gain on sale of mortgages		246			–			–			–			–			246			–
Gain on non-marketable equity investments		–			987			–			–			238			987			590
Loss on disposal of premises and equipment		–			–			(6	)		–			(3	)		(6	)		(3	)
Loss on defined benefit plan termination		–			–			–			–			–			–			(1,143	)
Gain on bank-owned life insurance death benefit		–			–			–			–			778			–			778
Other income		74			–			–			–			–			74			–
Total non-interest income		3,141			3,834			2,674			2,714			3,612			9,649			8,183

NON-INTEREST EXPENSE:
Salaries and employees benefits		8,112			7,901			8,244			7,739			7,955			24,257			24,475
Occupancy		1,217			1,218			1,363			1,198			1,159			3,798			3,710
Furniture and equipment		483			483			484			494			482			1,450			1,460
Data processing		869			846			862			788			824			2,577			2,369
Software		612			566			699			598			529			1,877			1,568
Debit/ATM card processing expense		649			643			552			559			562			1,844			1,580
Professional fees		540			581			569			674			643			1,690			2,203
FDIC insurance		338			323			410			338			341			1,071			983
Advertising		271			339			349			377			362			959			1,118
Other		1,315			1,414			1,250			2,020			1,261			3,979			4,099
Total non-interest expense		14,406			14,314			14,782			14,785			14,118			43,502			43,565

INCOME BEFORE INCOME TAXES		2,522			4,284			3,788			3,619			5,523			10,594			15,965

INCOME TAX PROVISION		618			771			827			1,108			1,033			2,216			3,408
NET INCOME	$	1,904		$	3,513		$	2,961		$	2,511		$	4,490		$	8,378		$	12,557

Basic earnings per share	$	0.09		$	0.17		$	0.14		$	0.12		$	0.21		$	0.40		$	0.58
Weighted average shares outstanding		20,804,162			21,056,173			21,180,968			21,253,452			21,560,940			21,013,003			21,631,067
Diluted earnings per share	$	0.09		$	0.17		$	0.14		$	0.12		$	0.21		$	0.40		$	0.58
Weighted average diluted shares outstanding		20,933,833			21,163,762			21,271,323			21,400,664			21,680,113			21,122,208			21,681,251

Other Data:
Return on average assets (1)		0.29	%		0.55	%		0.47	%		0.39	%		0.70	%		0.44	%		0.66	%
Return on average equity (1)		3.19	%		6.03	%		5.04	%		4.31	%		7.60	%		4.74	%		7.19	%
Efficiency ratio		80.62	%		78.20	%		82.03	%		78.27	%		70.61	%		80.27	%		72.71	%
Adjusted efficiency ratio (2)		80.67	%		82.68	%		82.04	%		78.26	%		74.38	%		81.79	%		72.98	%
Net interest margin		2.40	%		2.42	%		2.57	%		2.64	%		2.70	%		2.46	%		2.88	%
Net interest margin, on a fully tax-equivalent basis		2.42	%		2.44	%		2.59	%		2.66	%		2.72	%		2.48	%		2.90	%
(1) Annualized.
(2) The adjusted efficiency ratio (non-GAAP) represents the ratio of operating expenses divided by the sum of net interest and dividend income and non-interest income, excluding realized and unrealized gains and losses on securities, gain on non-marketable equity investments, loss on disposal of premises and equipment, loss on defined benefit plan termination and gain on bank-owned life insurance death benefit.

WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Dollars in thousands) (Unaudited)

	September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023
Cash and cash equivalents	$	72,802		$	53,458		$	22,613		$	28,840		$	62,267
Securities available-for-sale, at fair value		155,889			135,089			138,362			137,115			130,709
Securities held to maturity, at amortized cost		213,266			217,632			221,242			223,370			225,020
Marketable equity securities, at fair value		252			233			222			196			–
Federal Home Loan Bank of Boston and other restricted stock – at cost		7,143			7,143			3,105			3,707			3,063

Loans		2,049,002			2,026,226			2,025,566			2,027,317			2,014,820
Allowance for credit losses		(19,955	)		(19,444	)		(19,884	)		(20,267	)		(19,978	)
Net loans		2,029,047			2,006,782			2,005,682			2,007,050			1,994,842

Bank-owned life insurance		76,570			76,100			75,598			75,145			74,713
Goodwill		12,487			12,487			12,487			12,487			12,487
Core deposit intangible		1,531			1,625			1,719			1,813			1,906
Other assets		71,492			75,521			76,206			74,848			79,998
TOTAL ASSETS	$	2,640,479		$	2,586,070		$	2,557,236		$	2,564,571		$	2,585,005

Total deposits	$	2,224,206		$	2,171,809		$	2,143,747		$	2,143,744		$	2,176,303
Short-term borrowings		4,390			6,570			11,470			16,100			8,890
Long-term debt		128,277			128,277			120,646			120,646			121,178
Subordinated debt		19,741			19,731			19,722			19,712			19,702
Securities pending settlement		2,513			102			–			–			2,253
Other liabilities		20,697			23,104			25,855			26,960			25,765
TOTAL LIABILITIES		2,399,824			2,349,593			2,321,440			2,327,162			2,354,091

TOTAL SHAREHOLDERS’ EQUITY		240,655			236,477			235,796			237,409			230,914
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	2,640,479		$	2,586,070		$	2,557,236		$	2,564,571		$	2,585,005

WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES Other Data (Dollars in thousands, except per share data) (Unaudited)

	Three Months Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Shares outstanding at end of period		21,113,408			21,357,849			21,627,690			21,666,807			21,927,242

Operating results:
Net interest income	$	14,728		$	14,470		$	15,346		$	16,176		$	16,383
Provision for (reversal of) credit losses		941			(294	)		(550	)		486			354
Non-interest income		3,141			3,834			2,674			2,714			3,612
Non-interest expense		14,406			14,314			14,782			14,785			14,118
Income before income provision for income taxes		2,522			4,284			3,788			3,619			5,523
Income tax provision		618			771			827			1,108			1,033
Net income		1,904			3,513			2,961			2,511			4,490

Performance Ratios:
Net interest margin		2.40	%		2.42	%		2.57	%		2.64	%		2.70	%
Net interest margin, on a fully tax-equivalent basis		2.42	%		2.44	%		2.59	%		2.66	%		2.72	%
Interest rate spread		1.60	%		1.66	%		1.85	%		1.96	%		2.07	%
Interest rate spread, on a fully tax-equivalent basis		1.62	%		1.67	%		1.86	%		1.98	%		2.09	%
Return on average assets		0.29	%		0.55	%		0.47	%		0.39	%		0.70	%
Return on average equity		3.19	%		6.03	%		5.04	%		4.31	%		7.60	%
Efficiency ratio (GAAP)		80.62	%		78.20	%		82.03	%		78.27	%		70.61	%
Adjusted efficiency ratio (non-GAAP) ⁽¹⁾		80.67	%		82.68	%		82.04	%		78.26	%		74.38	%

Per Common Share Data:
Basic earnings per share	$	0.09		$	0.17		$	0.14		$	0.12		$	0.21
Earnings per diluted share		0.09			0.17			0.14			0.12			0.21
Cash dividend declared		0.07			0.07			0.07			0.07			0.07
Book value per share		11.40			11.07			10.90			10.96			10.53
Tangible book value per share (non-GAAP) ⁽²⁾		10.73			10.41			10.25			10.30			9.87

Asset Quality:
30-89 day delinquent loans	$	3,059		$	3,270		$	3,000		$	4,605		$	4,097
90 days or more delinquent loans		1,253			2,280			1,716			1,394			1,527
Total delinquent loans		4,312			5,550			4,716			5,999			5,624
Total delinquent loans as a percentage of total loans		0.21	%		0.27	%		0.23	%		0.30	%		0.28	%
Nonperforming loans	$	4,873		$	5,845		$	5,837		$	6,421		$	6,290
Nonperforming loans as a percentage of total loans		0.24	%		0.29	%		0.29	%		0.32	%		0.31	%
Nonperforming assets as a percentage of total assets		0.18	%		0.23	%		0.23	%		0.25	%		0.24	%
Allowance for credit losses as a percentage of nonperforming loans		409.50	%		332.66	%		340.65	%		315.64	%		317.62	%
Allowance for credit losses as a percentage of total loans		0.97	%		0.96	%		0.98	%		1.00	%		0.99	%
Net loan charge-offs (recoveries)	$	98		$	10		$	(67	)	$	136		$	78
Net loan charge-offs (recoveries) as a percentage of average loans		0.00	%		0.00	%		0.00	%		0.01	%		0.00	%

____________________________
(1) The adjusted efficiency ratio (non-GAAP) represents the ratio of operating expenses divided by the sum of net interest and dividend income and non-interest income, excluding realized and unrealized gains and losses on securities, gain on non-marketable equity investments, loss on disposal of premises and equipment, loss on defined benefit plan termination and gain on bank-owned life insurance death benefit.
(2) Tangible book value per share (non-GAAP) represents the value of the Company’s tangible assets divided by its current outstanding shares.

The following table sets forth the information relating to our average balances and net interest income for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023 and reflects the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.

	Three Months Ended
	September 30, 2024								June 30, 2024							September 30, 2023
	Average						Average Yield/		Average					Average Yield/		Average					Average Yield/
	Balance		Interest				Cost⁽⁸⁾		Balance		Interest			Cost⁽⁸⁾		Balance		Interest			Cost⁽⁸⁾
	(Dollars in thousands)
ASSETS:
Interest-earning assets
Loans(1)(2)	$	2,038,593		$	25,253		4.93	%	$	2,017,127	$	24,454		4.88	%	$	2,007,267	$	23,568		4.66	%
Securities(2)		354,696			2,121		2.38			354,850		2,141		2.43			361,216		2,033		2.23
Other investments		15,904			189		4.73			14,328		148		4.15			12,155		166		5.42
Short-term investments(3)		32,043			396		4.92			14,328		173		4.86			22,349		251		4.46
Total interest-earning assets		2,441,236			27,959		4.56			2,400,633		26,916		4.51			2,402,987		26,018		4.30
Total non-interest-earning assets		153,585								156,701							156,503
Total assets	$	2,594,821							$	2,557,334						$	2,559,490

LIABILITIES AND EQUITY:
Interest-bearing liabilities
Interest-bearing checking accounts	$	131,133			271		0.82		$	131,449		253		0.77		$	144,792		269		0.74
Savings accounts		179,844			38		0.08			185,690		51		0.11			195,020		41		0.08
Money market accounts		621,340			3,172		2.03			622,062		2,930		1.89			656,066		2,488		1.50
Time deposit accounts		688,797			7,684		4.44			650,054		7,101		4.39			563,135		4,906		3.46
Total interest-bearing deposits		1,621,114			11,165		2.74			1,589,255		10,335		2.62			1,559,013		7,704		1.96
Borrowings		153,317			1,947		5.05			160,484		1,997		5.00			149,507		1,814		4.81
Interest-bearing liabilities		1,774,431			13,112		2.94			1,749,739		12,332		2.83			1,708,520		9,518		2.21
Non-interest-bearing deposits		559,224								548,781							591,933
Other non-interest-bearing liabilities		23,466								24,453							24,504
Total non-interest-bearing liabilities		582,690								573,234							616,437
Total liabilities		2,357,121								2,322,973							2,324,957
Total equity		237,700								234,361							234,533
Total liabilities and equity	$	2,594,821							$	2,557,334						$	2,559,490
Less: Tax-equivalent adjustment(2)					(119	)						(114	)						(117	)
Net interest and dividend income				$	14,728						$	14,470						$	16,383
Net interest rate spread(4)							1.60	%						1.66	%						2.07	%
Net interest rate spread, on a tax-equivalent basis(5)							1.62	%						1.67	%						2.09	%
Net interest margin(6)							2.40	%						2.42	%						2.70	%
Net interest margin, on a tax-equivalent basis(7)							2.42	%						2.44	%						2.72	%
Ratio of average interest-earning assets to average interest-bearing liabilities							137.58	%						137.20	%						140.65	%

The following tables set forth the information relating to our average balances and net interest income for the nine months ended September 30, 2024 and 2023 and reflect the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.

	Nine Months Ended September 30,
	2024							2023
	Average Balance		Interest			Average Yield/ Cost⁽⁸⁾		Average Balance		Interest			Average Yield/ Cost⁽⁸⁾

	(Dollars in thousands)
ASSETS:
Interest-earning assets
Loans(1)(2)	$	2,025,858	$	74,058		4.88	%	$	2,002,485	$	67,586		4.51	%
Securities(2)		356,340		6,376		2.39			372,623		6,276		2.25
Other investments		14,248		473		4.43			12,528		418		4.46
Short-term investments(3)		18,634		682		4.89			12,922		424		4.39
Total interest-earning assets		2,415,080		81,589		4.51			2,400,558		74,704		4.16
Total non-interest-earning assets		154,894							154,525
Total assets	$	2,569,974						$	2,555,083

LIABILITIES AND EQUITY:
Interest-bearing liabilities
Interest-bearing checking accounts	$	132,708		759		0.76	%	$	142,716		780		0.73	%
Savings accounts		183,872		128		0.09			207,513		142		0.09
Money market accounts		623,216		8,689		1.86			711,173		6,813		1.28
Time deposit accounts		655,700		21,217		4.32			498,193		10,141		2.72
Total interest-bearing deposits		1,595,496		30,793		2.58			1,559,595		17,876		1.53
Short-term borrowings and long-term debt		158,183		5,909		4.99			130,796		4,739		4.84
Total interest-bearing liabilities		1,753,679		36,702		2.80			1,690,391		22,615		1.79
Non-interest-bearing deposits		555,253							607,338
Other non-interest-bearing liabilities		24,931							23,886
Total non-interest-bearing liabilities		580,184							631,224

Total liabilities		2,333,863							2,321,615
Total equity		236,111							233,468
Total liabilities and equity	$	2,569,974						$	2,555,083
Less: Tax-equivalent adjustment (2)				(343	)						(356	)
Net interest and dividend income			$	44,544						$	51,733
Net interest rate spread (4)						1.70	%						2.35	%
Net interest rate spread, on a tax-equivalent basis (5)						1.71	%						2.37	%
Net interest margin (6)						2.46	%						2.88	%
Net interest margin, on a tax-equivalent basis (7)						2.48	%						2.90	%
Ratio of average interest-earning assets to average interest-bearing liabilities						137.72	%						142.01	%

(1) Loans, including nonaccrual loans, are net of deferred loan origination costs and unadvanced funds.
(2) Loan and securities income are presented on a tax-equivalent basis using a tax rate of 21%. The tax-equivalent adjustment is deducted from tax-equivalent net interest and dividend income to agree to the amount reported on the consolidated statements of net income.
(3) Short-term investments include federal funds sold.
(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 rate spread, on a tax-equivalent basis, represents the difference between the tax-equivalent weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(6) Net interest margin represents net interest and dividend income as a percentage of average interest-earning assets.
(7) Net interest margin, on a tax-equivalent basis, represents tax-equivalent net interest and dividend income as a percentage of average interest-earning assets.
(8) Annualized.

Reconciliation of Non-GAAP to GAAP Financial Measures

The Company believes that certain non-GAAP financial measures provide information to investors that is useful in understanding its results of operations and financial condition. Because not all companies use the same calculation, this presentation may not be comparable to other similarly titled measures calculated by other companies. A reconciliation of these non-GAAP financial measures is provided below.

	For the quarter ended
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
	(Dollars in thousands)

Loan interest (no tax adjustment)	$	25,134		$	24,340		$	24,241		$	23,939		$	23,451
Tax-equivalent adjustment		119			114			110			113			117
Loan interest (tax-equivalent basis)	$	25,253		$	24,454		$	24,351		$	24,052		$	23,568

Net interest income (no tax adjustment)	$	14,728		$	14,470		$	15,346		$	16,176		$	16,383
Tax equivalent adjustment		119			114			110			113			117
Net interest income (tax-equivalent basis)	$	14,847		$	14,584		$	15,456		$	16,289		$	16,500

Average interest-earning assets	$	2,441,236		$	2,400,633		$	2,403,086		$	2,427,112		$	2,402,987
Net interest margin (no tax adjustment)		2.40	%		2.42	%		2.57	%		2.64	%		2.70	%
Net interest margin, tax-equivalent		2.42	%		2.44	%		2.59	%		2.66	%		2.72	%

Book Value per Share (GAAP)	$	11.40		$	11.07		$	10.90		$	10.96		$	10.53
Non-GAAP adjustments:
Goodwill		(0.59	)		(0.58	)		(0.58	)		(0.58	)		(0.57	)
Core deposit intangible		(0.08	)		(0.08	)		(0.07	)		(0.08	)		(0.09	)
Tangible Book Value per Share (non-GAAP)	$	10.73		$	10.41		$	10.25		$	10.30		$	9.87

	For the quarter ended
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
	(Dollars in thousands)

Efficiency Ratio:
Non-interest Expense (GAAP)	$	14,406		$	14,314		$	14,782		$	14,785		$	14,118

Net Interest Income (GAAP)	$	14,728		$	14,470		$	15,346		$	16,176		$	16,383

Non-interest Income (GAAP)	$	3,141		$	3,834		$	2,674		$	2,714		$	3,612
Non-GAAP adjustments:
Unrealized (gains) losses on marketable equity securities		(10	)		(4	)		(8	)		1			–
Gain on non-marketable equity investments		–			(987	)		–			–			(238	)
Loss on disposal of premises and equipment		–			–			6			–			3
Gain on bank-owned life insurance death benefit		–			–			–			–			(778	)
Non-interest Income for Adjusted Efficiency Ratio (non-GAAP)	$	3,131		$	2,843		$	2,672		$	2,715		$	2,599
Total Revenue for Adjusted Efficiency Ratio (non-GAAP)	$	17,859		$	17,313		$	18,018		$	18,891		$	18,982

Efficiency Ratio (GAAP)		80.62	%		78.20	%		82.03	%		78.27	%		70.61	%

Adjusted Efficiency Ratio (Non-interest Expense (GAAP)/Total Revenue for Adjusted Efficiency Ratio (non-GAAP))		80.67	%		82.68	%		82.04	%		78.26	%		74.38	%

	For the nine months ended
	9/30/2024			9/30/2023
	(Dollars in thousands)

Loan income (no tax adjustment)	$	73,715		$	67,230
Tax-equivalent adjustment		343			356
Loan income (tax-equivalent basis)	$	74,058		$	67,586

Net interest income (no tax adjustment)	$	44,544		$	51,733
Tax equivalent adjustment		343			356
Net interest income (tax-equivalent basis)	$	44,887		$	52,089

Average interest-earning assets	$	2,415,080		$	2,400,558
Net interest margin (no tax adjustment)		2.46	%		2.88	%
Net interest margin, tax-equivalent		2.48	%		2.90	%

Adjusted Efficiency Ratio:
Non-interest Expense (GAAP)	$	43,502		$	43,565

Net Interest Income (GAAP)	$	44,544		$	51,733

Non-interest Income (GAAP)	$	9,649		$	8,183
Non-GAAP adjustments:
Unrealized gains on marketable equity securities		(22	)		–
Loss on disposal of premises and equipment, net		6			3
Gain on bank-owned life insurance		–			(778	)
Gain on non-marketable equity investments		(987	)		(590	)
Loss on defined benefit plan curtailment		–			1,143
Non-interest Income for Adjusted Efficiency Ratio (non-GAAP)	$	8,646		$	7,961
Total Revenue for Adjusted Efficiency Ratio (non-GAAP)	$	53,190		$	59,694

Efficiency Ratio (GAAP)		80.27	%		72.71	%

Adjusted Efficiency Ratio (Non-interest Expense (GAAP)/Total Revenue for Adjusted Efficiency Ratio (non-GAAP))		81.79	%		72.98	%

For further information contact:
James C. Hagan, President and CEO
Guida R. Sajdak, Executive Vice President and CFO
Meghan Hibner, First Vice President and Investor Relations Officer
413-568-1911

The MIL Network –

January 25, 2025

MIL-OSI Video: Reducing Plastic Pollution and Improving Human Health

Source: United States of America – Federal Government Departments (video statements)

In this Bite-Size Learning session, “Reducing Plastic Pollution and Improving Human Health”, Erin Simon, Vice President of Plastic Waste and Business at the World Wildlife Fund (WWF), discusses the harmful impacts of plastic on human health and the environment and steps that WWF and its partners are taking to address it, including through WWF’s Resource: Plastic initiative.

The session also covers actions being taken by the Administration, including recently announced White House commitments to reducing plastic pollution within the federal government and the global plastics treaty process. The session provides an understanding about what federal agencies, businesses, and individuals alike can do to act on the plastics crisis.

Be Part of the Solution

The Go Green Get Healthy HHS program is challenging the U.S. Department of Health and Human Services (HHS) workforce to focus on small changes each of us can make to reduce plastic waste now and all year!

Besides creating an environmental nightmare, plastic pollution has a health impact. Plastic does not biodegrade, it just gets smaller and smaller, forming nano- and microplastics. Plastic is made from a derivative of crude oil and often contains toxic chemicals. As plastic breaks down, toxic chemicals are released into the ground, water, and air which affects the food we eat, water we drink, and air we breathe. To learn more about the effect of microplastics on your health, watch Earth Day 2024 presentations on this Go Green Get Healthy HHS playlist on the HHS YouTube channel https://www.youtube.com/playlist?list=PLrl7E8KABz1Ht0EWIT9IcaKpXKy8ViQ3m. Plus, you can view the FY 2023 HHS Green Champion Awards ceremony in the playlist.

Join the millions of people worldwide reducing plastic waste by choosing to refuse single-use plastic. BE part of the solution! As Confucius says, “The man who moves a mountain begins by carrying away small stones.”

Greater change occurs when a larger group makes smaller changes versus a smaller group that makes large changes. For example, if all HHS employees reduced plastic use by 90%, they would save nearly 11,000 tons of plastic waste annually! And, if the entire federal government staff reduced plastic use by just 10%, 45,000 tons of plastic waste would be reduced each year.
Use the Home Plastic Checklist https://www.plasticfreeseas.org/wp-content/uploads/2020/05/Plastic-free-living-checklist.jpg to get started.

So come on, step up and lead the way!

There were 665 attendees who benefitted from this session! The event was hosted by the Go Green Get Healthy HHS sustainability team on August 27, 2024. Gain knowledge and power by attending our Bite-Size Learning sessions! If you have any questions, please email GoGreen@hhs.gov.

—

U.S. Department of Health and Human Services (HHS) | http://www.hhs.gov

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https://www.youtube.com/watch?v=0_6ul0HnnOI

MIL OSI Video –

January 25, 2025

MIL-OSI United Nations: Experts of the Human Rights Committee Welcome France’s Efforts to Combat Homophobia, Raise Questions on Violence in New Caledonia and Rules Governing Identity Checks

Source: United Nations – Geneva

The Human Rights Committee today concluded its consideration of the sixth periodic report of France on how it implements the provisions of the International Covenant on Civil and Political Rights, with Committee Experts welcoming France’s national plan combatting hatred against lesbian, gay, bisexual, transgender and intersex persons and plans to combat homophobia, while raising questions on violence in New Caledonia and rules governing identity checks.

One Committee Expert said the Committee welcomed the national plan for equality and against hatred and discrimination against lesbian, gay, bisexual, transgender and intersex persons (2020-2026) and the government plan (2023-2026) to combat homophobia and discrimination based on sexual orientation and gender identity.

Another Expert said it appeared that the current violence in the non-self-governing territory of New Caledonia was linked to reforms of the Nouméa Accord and a lack of progress in the decolonisation process. What was the progress made on the issue of self-determination of the non-self-governing territory of New Caledonia as well as that of French Polynesia, and the participation and consultation processes put in place with the indigenous peoples living in these territories to obtain their free and informed consent and access to independence?

Another Expert asked if the State party could indicate whether mandatory training on racial and ethnic discrimination and profiling was systematically offered to law enforcement officials, both in metropolitan France and in the overseas territories? Did the State party systematically collect data to monitor the use of identity checks, both in metropolitan France and in the overseas territories? Would the State party be prepared to implement a template for all individuals subject to an identity check? Would it be willing to introduce a centralised record of all identity checks to have an overview of how they were used, with whom and where?

The delegation said France supported the recognition of indigenous peoples. New Caledonia was one of the most advanced examples of the French Government recognising the rights of indigenous peoples. Since the Nouméa Accord, an institutional framework had been put into place allowing for shared governance between the communities, representing the customs of the Kanak people. On 1 October, the Prime Minister announced the postponement of elections in 2025, which was unanimously agreed by Parliament. Since 1998, France had been cooperating with the decolonisation committee and the work had been fruitful.

The delegation said all French citizens were equal before the law. The code of ethics for the police and national gendarmerie prohibited discriminatory identity checks. When the law authorised an identity check, the police should not rely on any physical trait, unless there were specific grounds. Any act of discrimination could be reported by someone who believed they were a victim of discriminatory profiling. There were several ways to do this, including through the various controlling and monitoring authorities and the judiciary.

Introducing the report, Isabelle Rome, Ambassador for Human Rights of France and head of the delegation, said human rights were a priority for France. In December 2023, the President of the Republic announced that a House of Human Rights would be created in Paris to support civil society organizations. France had strengthened its public policies on the judiciary, democracy and the law enforcement agencies since 2022, paying particular attention to conditions for the use of force, and compliance with the rules of ethics during all police operations. Ms. Rome concluded by saying that France believed in its democratic model, in liberty, equality and fraternity, as illustrated this summer by the Olympic and Paralympic Games.

In concluding remarks, Ms. Rome thanked the Committee for the dialogue. France was deeply attached to the rule of law and the Committee’s recommendations would be scrupulously considered. The country was committed to renewing dialogue with the territory of New Caledonia and its inhabitants.

Tania María Abdo Rocholl, Committee Chairperson, thanked the delegation for the dialogue, which had covered a wide range of subjects under the Covenant. The Committee aimed to ensure the highest level of implementation of the Covenant in France.

The delegation of France was made up of representatives of the Ministry for Europe and Foreign Affairs; the Ministry of the Interior and Overseas; the Ministry of Justice; the State Council; the Interministerial delegation to the fight against racism, anti-Semitism, and hatred; the French office for the protection of refugees and stateless persons; and the Permanent Mission of France to the United Nations Office at Geneva.

The Human Rights Committee’s one hundred and forty-second session is being held from 14 October to 7 November 2024. All the documents relating to the Committee’s work, including reports submitted by States parties, can be found on the session’s webpage. Meeting summary releases can be found here. The webcast of the Committee’s public meetings can be accessed via the UN Web TV webpage.

The Committee will next meet in public at 3 p.m. on Wednesday, 23 October, to begin its consideration of the second periodic report of Türkiye (CCPR/C/TUR/2).

Report

The Committee has before it the sixth periodic report of France (CCPR/C/FRA/6).

Presentation of Report

ISABELLE ROME, Ambassador for Human Rights of France and head of the delegation, said human rights were a priority for France. In December 2023, the President of the Republic announced that a House of Human Rights would be created in Paris to support civil society organizations. Launched in 2021, the Marianne initiative for human rights defenders aimed to encourage the activities of human rights defenders, both in their country of origin, and by welcoming them in France. The fight against the death penalty was also a priority for France. France would host the ninth World Congress against the Death Penalty in Paris in 2026. France was also contributing to the organization of the first World Congress on Enforced Disappearances in Geneva on 15 and 16 January 2025.

The State’s new feminist diplomacy strategy would be published by the end of 2024. France was proud that the Paris 2024 Olympic and Paralympic Games were the first gender-balanced games in history. Through its diplomatic and consular network, France supported projects of democratic governance, respect for the rule of law, the fight against impunity, access to justice, and mechanisms to monitor the effective exercise of civil and political rights. In 2019, France launched the Partnership for Information and Democracy, which was joined by 54 States from all regions, to guarantee freedom of expression. In May 2024, the President of the French Republic and the Prime Minister of New Zealand announced the creation of a new non-governmental organization, the Christchurch Call Foundation, to coordinate the work of the Christchurch Call to eliminate terrorist and violent extremist content online.

France had strengthened its public policies on the judiciary, democracy and the law enforcement agencies since 2022, paying particular attention to conditions for the use of force, and compliance with the rules of ethics during all police operations. The national law enforcement plan published in 2021 provided for an adaptation of the employment strategies of the republican security companies and the mobile gendarmerie squadrons during public demonstrations. The right to demonstrate was guaranteed by the Constitution in France. By getting in touch with the prefects and police units involved in public demonstrations, journalists could be added to communication channels, allowing them to receive live information and ask questions.

Between 2020 and 2024, the Ministry of Justice’s budget increased by 33 per cent, from €7.6 billion in 2020 to €10.1 billion in 2024. In five years, the French Ministry of Justice would have recruited as many magistrates as in the last 20 years. To combat prison overcrowding, the Ministry of Justice was implementing a proactive prison regulation policy, based on the development of alternatives to incarceration, the strengthening of early release mechanisms, and an ambitious prison real estate programme creating 15,000 net prison places. An Interministerial Committee for Overseas Territories was set up in July 2023. France had mobilised authorities to enable and guarantee the return to calm and security of people in New Caledonia. Emergency measures were deployed last June. The mediation and work mission continued its work, with the aim of renewing political dialogue.

France had been implementing a new interministerial plan for gender equality 2023-2027, which contained 161 measures divided into four priority areas: the fight against violence against women; the global approach to women’s health; professional and economic equality; and the dissemination and transmission of a culture of equality. The law of July 2023 aimed at strengthening women’s access to responsibilities in the public service. It increased the mandatory quota of first-time female appointments to senior and management positions to 50 per cent. On 8 March 2024, France became the first country in the world to enshrine the freedom to have access to voluntary termination of pregnancy in its Constitution.

Questions by Committee Experts

A Committee Expert welcomed that France’s report was prepared in consultation with the National Consultative Commission on Human Rights, whose role was to monitor France’s international commitments and the implementation of recommendations issued by international and regional bodies. In May 2024, despite the provisions of the Nouméa Accord which provided for a process of gradual transfer of power from France to New Caledonia, the National Assembly voted in favour of expanding the electorate of New Caledonia. Thousands of Kanak demonstrators mobilised to denounce these reforms, which were allegedly passed without adequate consultation or free, prior and informed consent. In the absence of sufficient dialogue on the part of the authorities, a violent conflict had been raging since that date.

The French Government had deployed considerable military resources to restore order, but at the cost of numerous allegations of excessive use of force that led to several deaths among Kanak protesters and security forces, as well as injuries. According to information received by the Committee, at least 11 people were shot dead and 169 others were injured; 2658 demonstrators were arrested, many of whom were arbitrarily arrested and detained, dozens of them were also transferred to metropolitan France.

It appeared that the current violence in the non-self-governing territory of New Caledonia was linked to reforms of the Nouméa Accord and a lack of progress in the decolonisation process. What was the progress made on the issue of self-determination of the non-self-governing territory of New Caledonia as well as that of French Polynesia, and the participation and consultation processes put in place with the indigenous peoples living in these territories to obtain their free and informed consent and access to independence?

There had been several prominent court cases regarding the removal of headscarves in France. In the opinion of the French State, should the Committee’s Views be followed only in the case where the Committee considered a complaint to be inadmissible or agreed with the arguments presented by the French Government? Were there intentions to lift reservations to the Covenant? Who currently appointed the magistrates of the courts? What was the current state of the constitutional reform initiated with a view to making the Prosecutor’s Office independent of the executive? How could the full independence of judges and prosecutors be guaranteed?

Since 2015, France had put in place measures to combat terrorism, which had been seen over the years to be increasingly detrimental to people’s rights and freedoms.

Was the new legislation accompanied by sufficient guarantees against the risk of arbitrary and discriminatory implementation of these measures? What independent and impartial expertise did public authorities have to assess the impact of new technologies on the exercise of the rights and freedoms recognised by the Covenant?

It was understood that mass surveillance technology was used during the Olympic and Paralympic Games. How did the State party ensure that it did not lead to profiling that disproportionately affected racial, ethnic and religious minorities? How did the State party ensure that continuous surveillance by algorithm-based systems did not violate the right to privacy and respected the requirements of proportionality and necessity? For how long could the data collected in this way be kept?

What were the current conditions for the communication of information to the intelligence services, particularly in the area of sensitive data? What information could be transmitted and what traceability requirements were in place? Under what conditions could information provided by the intelligence services be made available to the judicial authority and the Public Prosecutor’s Office? What means of access was available to defendants and those accused of acts of terrorism?

Another Expert said the Committee was informed that people of colour were subjected to identity checks by the police about 20 times more often than other citizens. They also faced discriminatory treatment during police stops and searches, including direct fines, often without objective suspicion and without being informed of the reasons. What could be done to ensure that the use of identity checks and fines was not left to the discretion of law enforcement agencies, and was based only on objective and individualised conditions, and not on racial origins? Did the State party have explicit guidelines for law enforcement agencies that clearly prohibited racial profiling in police operations as well as discriminatory identity checks?

Could the State party indicate whether mandatory training on racial and ethnic discrimination and profiling was systematically offered to law enforcement officials, both in metropolitan France and in the overseas territories? Did the State party systematically collect data to monitor the use of identity checks, both in metropolitan France and in the overseas territories? Would the State party be prepared to implement a template for all individuals subject to an identity check? Would it be willing to introduce a centralised record of all identity checks to have an overview of how they were used, with whom and where?

The Committee had received extensive information that showed the persistent problem of systemic racial discrimination, as well as the use of negative stereotypes against minorities. What measures had the State party taken to effectively combat all forms of hate speech and hate crimes against racial, ethnic and religious minorities? What training was provided to law enforcement officers, judges and prosecutors, and what awareness campaigns were organised to prevent and combat hate crime and hate speech? Would France develop data collection and research in compliance with data protection rules, to effectively identify cases of racial or ethnic profiling and offences in metropolitan France and overseas?

The Committee welcomed the national plan for equality and against hatred and discrimination against lesbian, gay, bisexual, transgender and intersex persons (2020-2026) and the government plan (2023-2026) to combat homophobia and discrimination based on sexual orientation and gender identity. How would the State party ensure adequate resources and the active participation of civil society in the implementation of these plans? Did these programmes sufficiently take into account minorities within minorities, such as lesbian, gay, bisexual, transgender and intersex asylum seekers?

The Committee was informed that some of the measures granting extensive powers to the administrative authorities, developed in the context of the state of emergency, had been granted permanent status. What measures had the State party taken to ensure that initial emergency measures were in conformity with the Covenant in terms of necessity and proportionality? How did the State party promote the accessibility of judicial procedures and ensure that they were effective?

How would France ensure that anti-terrorism legislation did not disproportionately target Muslims and that actions were based on alleged criminal behaviour rather than religious practices? How did the State party ensure that house searches and dissolution of organizations were conducted by the courts? What was the percentage of terrorist offences in relation to criminal offences committed in the last five years? The Committee was informed of the law establishing a new security regime, which subjected the accused to certain obligations, with a view of ensuring their reintegration. How did France ensure that this monitoring system, which was based on the rather vague notion of “dangerousness”, was not arbitrary and did not disproportionately infringe on the rights of persons who had served their sentences?

One Committee Expert said the Committee particularly welcomed the State party’s commitment of significant financial resources to address the needs of vulnerable groups during the health crisis of COVID-19. What was the impact of the measures described in the State party’s report, to ensure that the COVID-19 pandemic did not exacerbate inequalities, discrimination and exclusion, including among vulnerable groups? Specifically, regarding domestic violence against women, which was said to have increased during the pandemic, what was the assessment of the effectiveness and impact of the measures taken?

While noting the information provided by the State party, including on the judicial review of the restrictions imposed, could the proportionality of the measures imposed to address COVID-19 be explained, including the ban on any gathering of more than 10 people imposed for a certain period? What assessment did the State party make of this experience for a better consideration of human rights in future crises?

Another Expert said the State party had reported on humanitarian repatriations from Syria of women and children of French nationality. With regard to returns, according to public reports, there was still a significant number of women and children detained or held in camps and rehabilitation centres in Syria. What was the number, the current situation, and the measures taken by the State party to ensure the full repatriation of all French women and children still in detention camps and rehabilitation centres for minors in Syria?

What was the estimated number of detained men and women in Syria who participated as Islamic State fighters? Had measures been taken to ensure that due process standards were strictly respected in the trials before the Syrian national courts? According to information, in May and June 2019, 11 French nationals had been sentenced to death in Iraq for their involvement as Islamic State fighters. Could the delegation provide an update on that information and indicate what steps the State party had taken to prevent the continued imposition of death sentences on its nationals in that country? What other penalties had been applied to these French nationals in lieu of the death penalty?

The Committee had requested information related to the Arms Trade Treaty, in order to know whether the State party carried out an evaluation for the granting of export licenses aimed at determining that the recipient country used the weapons included in the respective license within the framework of respect for the right to life. Did the evaluation of an arms export take this into account? Had any measures been taken to ensure a total ban on arms sales to countries where there was a clear risk that such weapons could be used to violate international human rights law? Was it possible to access information on arms exports so that civil society could carry out oversight? What measures had been taken to prevent the negative effects on the right to life of the operations of French companies abroad, especially in the province of Cabo Delgado in Mozambique?

A Committee Expert said the Committee was informed that there had been a rise in police violence in recent years, with multiple incidents resulting in fatal outcomes, some of them young boys. Could more information be provided on trainings on racism for police officers? Had improvements been made, bearing in mind previous incidents? The Committee was informed that investigations and legal procedures of unlawful killings by law enforcement officials were not expeditious, sometimes even leading to de facto police impunity, or that sentences were not commensurate with the gravity of the crime.

Had there been plans to amend legal norms and review legal conditions for the use of firearms by the police and the gendarmerie, aiming to reduce the risks of disproportionate use of lethal force, and to strike a better balance with the principles of absolute necessity and strict proportionality? What was the status of investigations of fatalities and injuries, including those related to alleged excessive use of force, which emerged during conflicts that started in May 2024 in New Caledonia? Had trainings been undertaken for those operating in France’s overseas territories?

The Committee welcomed the reported introduction of the new right to appeal introduced by article 803-8 of the Code of Criminal Procedure, as a step forward. However, Experts had been informed that there were several challenges preventing its full use and benefits. Since the right to a judicial remedy against undignified conditions of detention was introduced in 2021, what were the steps taken by the State party to disseminate it within the incarcerated population? Was the information on the creation of a new legal tool easily reachable in all penitentiaries under the jurisdiction of the State party? Had legal aid been introduced to those incarcerated persons who could not afford a lawyer or judicial taxes? Were there plans to introduce wider use of alternatives to detention or a more restricted use of detention as a last resort?

Responses by the Delegation

The delegation said France supported the recognition of indigenous peoples. New Caledonia was one of the most advanced examples of the French Government recognising the rights of indigenous peoples. Since the Nouméa Accord, an institutional framework had been put into place allowing for shared governance between the communities, representing the customs of the Kanak people. On 1 October, the Prime Minister announced the postponement of elections in 2025, which was unanimously agreed by Parliament. Since 1998, France had been cooperating with the decolonisation committee and the work had been fruitful.

Since 2015, the technical intelligence community had been working on a specific legal framework. The law included respect for the private lives of citizens and had a strict principle of proportionality. The law set forth the procedures to be respected when it came to implementing intelligence techniques, including prior authorisation by the Prime Minister. There were restrictions on how long the data could be held. The enhanced video surveillance was enacted in advance of the Olympics and Paralympics Games. France chose to engage in a rigorous oversight mechanism regarding this surveillance. This was a tool for detecting events without having to resort to facial recognition.

All French citizens were equal before the law. The code of ethics for the police and national gendarmerie prohibited discriminatory identity checks. When the law authorised an identity check, the police should not rely on any physical trait, unless there were specific grounds. Any act of discrimination could be reported by someone who believed they were a victim of discriminatory profiling. There were several ways to do this, including through the various controlling and monitoring authorities and the judiciary.

At the end of the state of emergency, which followed the attacks carried out on France in 2015, the Government acknowledged the need to keep these tools in place due to the possibility of other attacks. Four new measures had then been created. These laws were only for preventing terrorism and were accompanied with significant guarantees for citizens. The law of 30 July 2021 on preventing acts of terrorism gave these measures permanency. The Constitutional Council believed this was a balanced approach that ensured achieving the goal of preventing terrorism while respecting private life. House searches could not be instigated unless there was prior authorisation from a judge; 1,447 remedies were presented for the state of emergency. The law of 2021 applied to people who had been sentenced to acts of terrorism. Sentences for terrorist activities represented around 0.04 per cent of all criminal activities.

A plan had been developed to prepare the plan on combatting lesbian, gay, bisexual, transgender and intersex hatred, involving members of civil society. The plan contained 16 key measures, including a ten-million-euro fund by 2027 to improve the host centres for these individuals. The goal was to have two centres per region in France. For hate speech, the legislation provision had recently been strengthened. In 2021, there was a vote to govern the digital space and that law had a set of provisions on combatting online hate speech to better regulate illegal behaviour. There had been significant progress made in this area, given that a bill had been introduced in the European Parliament to regulate heinous content online.

In France, 2020 was the year that the State had the lowest rate of femicide. This meant that the measures set up were effective, and that the police and justice systems were able to act swiftly to combat family violence. There were also provisions which allowed complaints to be raised.

Measures adopted during the pandemic were considered to be proportional. The measures taken to address the pandemic did not overturn other measures in place. During COVID-19, the number of calls to victim support groups for violence had increased. The accelerated measures implemented by France to support victims included electronic bracelets to ensure restraining orders were complied with. In 2021, emergency plans were implemented to ensure people were protected. At the end of the pandemic, the State provided hotlines 24/7 and reception centres in shopping malls. More specialised support was also provided in courts.

International commitments by France to human rights did not involve a repatriation of citizens in an area where France had no control. Authorities responded systematically to requests for repatriation made by French citizens. Since 2019, repatriation efforts for minors had been organised. France exported weapons to countries that wished to strengthen their armies, only with strict national oversight.

Force was only used when necessary in cases set forth by law and in a manner which was proportional to the threat. A police or member of the gendarmerie would only use force if it was essential in their work, such as in cases of self-defence. Police had additional guidelines on the use of weapons. There should never be doubt regarding the reasons of an arrest warrant.

France had a law which allowed for all inmates to request guarantees for their detention conditions, ensuring they were dignified. A provision was in place which allowed individuals to benefit from jurisdictional support, in place since 2023. Template forms for this purpose were provided to all detainees upon their detention.

Questions by Committee Experts

A Committee Expert said the problem with the New Caledonia information was the outcome of the projects which arose in France in 1984. The idea of postponing elections to 2025 was a positive sign as this would allow for mediation between the local and French authorities. Over recent years, there had been a considerable strengthening of anti-terrorist measures. However, the majority of terrorist threats were foiled by international cooperation efforts. Were the measures justified by the threats the State faced? How could this be transmitted between different intelligence branches? How long was intelligence data stored and what measures were provided to keep the information secure?

Another Expert asked for disaggregated data on what law enforcement officials had been charged with? Were inmates allowed to apply to a collective appeal so that others could benefit?

An Expert said there were laws which prohibited discrimination in identification checks; how was it ensured that this legislation was implemented?

Another Committee Expert asked for the delegation to bear in mind the matter of redress granted to victims of violence.

One Expert asked for a more specific response to the measures adopted to comply with the rulings of the European courts against certain cases against France? How did the State party ensure effective judicial control and parliamentary oversight in weapon exportation?

Responses by the Delegation

The delegation said the French overseas territories met all international criteria under the law. France had completed the decolonisation process and no longer administered non-self-governing territories. As for French Polynesia, in 2023, France decided to speak before the General Assembly, illustrating ongoing dialogue between the State and French Polynesia. France supported the development of French Polynesia.

The French Government followed the individual communications procedure before the Committee. Any communications were the subject of broad consultations among many ministries and institutions.

When France ended the state of emergency of 2015 to 2017, the risk of terrorism in the country was still high. While this risk had come down, threats still persisted; 45 attacks had been foiled between 2017 and now.

In 2022, over 700 people brought cases to court regarding acts of violence committed by people in public authority. Over 200 of these led to convictions.

The Ministry of Education and Youth was currently creating a programme to consider the new kinds of racism and anti-Semitism which had cropped up in recent years.

The French law enforcement force represented the population and was diverse. Inmates could ask for specific improvements to detention conditions which impacted their dignity. Improvements had been carried out in several penitentiaries as a result of this. Several inmates could present these complaints together.

Questions by Committee Experts

A Committee Expert said since the end of the state of health emergency on 10 July 2020, the situation of exiled people in Calais had deteriorated. The nearly 1,200 homeless men, women and children in Calais had seen their living conditions deteriorated due to the brutal “evacuations” of several large camps, and the dramatic reduction in vital services such as food distributions, and lack of access to showers and water points. Additionally, around 100 unaccompanied minors had settled in tents in Jules Ferry Square to highlight that they had been abandoned by the State. Could the State party comment on this?

According to information received, journalists and media organizations were reportedly facing increasing challenges in carrying out their duties, including restrictions on reporting, potential abuses of power, and other pressures that undermined press freedom. Reporters without Borders reported that police reportedly assaulted several “clearly identifiable” journalists. There were several cases cited to support these allegations, including journalists in New Caledonia who stated they were constantly harassed for their coverage of the riots. Could the delegation comment on these allegations? What measures did the State party intend to take to better protect journalists and human rights defenders in the exercise of their work? Had the perpetrators of the mentioned cases been prosecuted and what was the outcome, including convictions and reparations?

Another Expert noted the numerous allegations of prison overcrowding in the State party and the serious health risks during the most critical period of the COVID-19 pandemic, asking what were the reasons for providing, through decree-law 2020-303, for the full continuation of pre-trial detention, which even affected minors? What were the conditions for the application of the measure of full maintenance of pre-trial detention to children and how many children were affected by this measure? How did law no. 2021-646 of 25 May 2021 on global security preserving freedoms effectively guarantee respect for privacy, especially in the use of portable cameras by law enforcement officers and cameras installed on unmanned aerial vehicles? Did it include the principles of proportionality and necessity? In the case of the use of surveillance devices in public demonstrations by law enforcement officers, were there safeguards or limitations to prevent their use from affecting the right to peaceful assembly and freedom of expression?

It was alleged that four former national secretaries of the General Confederation of Labour were being investigated for defamation and public slander following a complaint filed against them by the Directorate of the National School of Prison Administration. Could information on this be provided? The Committee would also like information on the processes followed against various union, political and community leaders for the crime of glorifying terrorism after the Hamas attacks of 7 October 2023. It was reported that during the recent Olympic Games, there were many cases of systematic Islamophobia that mainly affected Muslim athletes and communities, a situation exacerbated by the security measures adopted. Could the delegation comment on this? What measures had the State party taken to combat hate speech against lesbian, gay, bisexual, transgender and intersex persons?

One Expert said the Committee had unfortunately been informed that the situation of migrants in Calais and Grande-Synthe was still very worrying, with authorities continuing to apply the “zero point of fixation” policy, under which temporary shelters were systematically dismantled, sometimes with excessive use of force, every 48 hours. How were migrants informed of the 48 hour rule and the possible dismantling of their temporary shelters? Could the State consider the use of more humane and proportionate alternatives to dismantling these shelters, including increasing the capacity of reception centres? What measures had been adopted to facilitate reporting on police abuses?

The Committee was concerned by reports that migrants had been detained at the French-Italian border without having obtained legal documents explaining their detention. How did France ensure that such detentions were not arbitrary and that all migrants were informed of their procedural rights? The Committee was also informed that the immigration law of 2 January 2024 expanded the criteria for expulsion to include minor offences, and allowed authorities to place a foreign person in administrative detention for reasons related to a potential threat to public order without justification, as well as allowing detention to be extended and reducing procedural rights. How was it ensured that these measures were compatible with the provisions of the Covenant?

The Committee had received information that the State party continued to issue expulsion notices for the return of persons to countries where they were at risk of serious violations of their rights. How did the State party ensure respect for the principle of non-refoulement in all cases of expulsion? Regarding the internal borders of the Schengen area, in particular the issue of rapid refoulement at the border between France and Italy, the Committee noted with appreciation the State party’s follow-up to the conclusion of the Court of Justice of the European Union. The Committee welcomed the annulment by the Council of State, in February, of certain parts of the Code on the Entry and Residence of Foreigners and the Right of Asylum.

However, information had been received that foreign nationals continued to be forcibly returned to Italy without having had access to a proper asylum procedure. How did France ensure the individualised examination of all applications and effective access to asylum procedures? Did the State intend to end the use of bone tests in law and in practice? What was the objective of the January 2024 law to establish files to identify unaccompanied minors suspected of a criminal offence? Who controlled these files and who kept them? What measures had been taken to ensure adequate temporary accommodation and emergency accommodation for unaccompanied minors?

One Committee Expert said France had adopted the third national action plan against human trafficking (2024-2027) at the beginning of 2024. Could the evaluation of achievements from the second action plan be provided and what goals were set for the third plan? What were the measures developed to combat trafficking? Could victims receive compensation within the criminal procedure, or did they have to undergo civil suits for compensation? What safeguards were in place to protect victims themselves from criminal accountability? What methods had been developed for victims’ identification? Had trainings been organised for prosecutors, judges and lawyers on human trafficking?

The Committee was concerned by numerous reports that the ban on manifestation of religious beliefs by means of clothing, headgear or other religious symbols was a source of tension in French society and was seen by some as disrespect for multiculturism, fuelling the sense of discrimination, racism, anti-Semitism, and Islamophobia. What measures were being taken to ensure that the ban on expressing religion by means of religious clothing, headgear or symbols did not have a discriminatory effect in practice? How was it ensured that all visible religious symbols were treated equally? What criteria was used to decide what symbol should be treated as conspicuous and thus be banned, while others were treated as discrete and allowed? How did the State party avoid that the ban on manifestation of religious beliefs by means of clothing affected predominantly Muslim girls and women?

What safeguards were in place to ensure that provisions on the dissolution of association would not be broadly interpreted and end in violating the right to freedom of assembly? There had been examples of associations, such as Uprisings of the Earth, labelled as eco-terrorists. Could the delegation provide its views on this? The Committee was concerned at the expansion of police powers to stop and check persons in the vicinity of protests, and the effect that this could have on the effective enjoyment of the right of peaceful assembly. A significant number of protesters had been arrested and detained and a small percentage of the protesters arrested had been charged. What was the position of the State party on these allegations? How were personal dignity and respect understood by the courts?

Another Expert said the year 2023 was marked by a succession of bans on demonstrations, particularly related to the mobilisation against the pension reform, or those carried out in support of the Palestinian people. In October 2023, the Minister of the Interior issued a memo calling on local authorities to pre-emptively ban all demonstrations of solidarity with the Palestine people. The ban was challenged before the Council of State, which determined that local authorities had to judge on a case-by-case basis the risks to public order and thus avoid repression by invoking public order, excessive force or arbitrary arrest. This had had repercussions, even in the area of the right to information, which was concerning.

Did the National Law Enforcement Scheme adopted in September 2020 mention the path of “de-escalation”, as a strategic principle for policing political manifestations in Europe, supported by the European Union? The Committee had expressed concern about allegations of ill treatment, excessive use of force, and disproportionate use of intermediate force weapons, in particular during arrests, forced evacuations, and law enforcement operations. A 2017 law (the Cazeneuve law) created a common framework for the use of weapons, allowing police to use armed force in five different cases. However, the number of deaths had increased fivefold after the 2017 law, causing France to become the country in the European Union with the largest numbers of people killed or injured by shots fired by police.

Could the delegation explain the extent to which law enforcement agencies followed the applicable protocols in practice, with supporting statistics, and respected the principles of necessity, proportionality, precaution, non-discrimination and self-defence in the use of weapons? What measures, in terms of training for law enforcement agencies, were envisaged? Would the State party be willing to review the legal framework on the use of weapons and limit the use of firearms within the Security Code? What follow-up had been given to decision 2020-131 of the Defender of Rights on general recommendations on law enforcement practices with regard to the rules of ethics?

According to a decision by the Ombudsman, France was the only country in Europe to use stun grenades to keep demonstrators at bay. Would grenades continue to be used despite the serious mutilations and injuries they caused? Could the delegation provide updated information on the number of persons who had died as a result of police operations during arrests, including through the excessive use of force, and on the outcome of investigations into such deaths, sanctions imposed, and reparations provided to victims and their families? Could statistics be provided on the number of proposals for sanctions presented by the Defender of Rights and what became of them, in particular the number of prosecutions?

Would the Brigades for the Repression of Motorised Violent Actions be dissolved? The State party’s report provided information on complaints and investigations initiated concerning members of the security forces. What measures would be taken to make the relevant statistical data more reliable, disaggregated and complete?

Responses by the Delegation

The delegation said the evacuations of camps in Calais which took place were done through either a legal or an administrative decision. These decisions were carried out with proper supervision and were overseen by the Government and social organizations. Unaccompanied minors were housed in emergency shelter systems when possible and the same for adults when possible.

France guaranteed the right to protest and freedom of collective speech and expression of ideas. The French State allowed journalists free circulation. France was seeking to strike a balance because there were now many journalists without press identification who ran risks, placing themselves between protesters and law enforcement officials. Law enforcement officers were called on to show professional behaviour at all times, including in situations where protests were violent.

Videos in public spaces were used to call attention to pre-determined actions; they did not have any impact on the right to protest. France supported the European plan for protecting journalists against violence. This had allowed for additional guarantees to be provided in certain cases.

French authorities were mobilised to support efforts against hate speech, and there were efforts to address this phenomenon within the Ministry of Justice. When cases were thrown out, they could be appealed before the appeals court. Investigations into allegations of hate speech were underway.

The administrative police were evacuating camps, which were aimed at putting an end to illegal occupation and squatting of lands. These operations on the ground involved parameters being established. Regarding expulsions in Calais, 36 operations had taken place. They were based on the same legal foundations; the anti-squat laws had been utilised to proceed with the evacuation. Minors were always supported. The State was aware of the situation of unaccompanied minors in Calais. Systems had been put in place to address these realities and identify the unaccompanied minors. Work was being done with associations on the ground in Calais, including Doctors without Borders. The shelters were only 20 minutes from Calais and allowed for daily operations and support. This distance was far enough to protect unaccompanied minors from traffickers found in these camps.

When foreigners were not eligible for asylum seeking procedures, they could then be placed under administrative detention in administrative detention centres. These decisions were subjected to oversight by judges. During the detention period, foreigners benefitted from health care support and legal counsel. Voluntary returnees received financial support. Some countries were not considered to be safe, and therefore returns were only on a voluntary basis. Since October 2022, the Government was active in Mayotte, allowing active participation in the asylum-seeking process.

There were 2,100 victims of trafficking and exploitation in 2023, a six per cent increase compared to 2022. Around 882 people had been sentenced for exploitation and trafficking. France thanked civil society for helping contribute to the National Action Plan against Trafficking. Training was an important part of the strategy to combat trafficking; there was a training course on human trafficking with a focus on modern slavery. Training was provided to 150 different professionals. To care for the victims of human trafficking, several mechanisms were in place, including an early detection mechanism.

France guaranteed the rights of citizens at the highest level, and any restrictions applied to all religions equally. There was freedom for an individual to display religious signs, but this needed to be assessed on a case-by-case basis. Any restriction on a religious symbol was only imposed if they were identified as a risk to the public service.

Freedom of expression was guaranteed in France, but this could result in some groups promoting racist and hate speech. The law of 2021 amended the list of cases where a dissolution could take place, broadening the list of discriminatory measures which could lead to a dissolution.

The Public Ministry could carry out prosecutions. Sometimes the Prosecutor could enact educational measures instead, which was used in some cases of minors. The judges of France were required to argue for their decisions, given that there were no automatic sentences in the State. This was also true for those found guilty of threatening public order.

France was one of the first countries to call for a ceasefire in Gaza. There had been a significant increase in anti-Semitic acts since October 2023. Freedom to demonstrate was a fundamental right protected by the Constitution and protests were not subjected to authorisation. There should be a notification to law enforcement around 15 days before to protect the safety of those participating and those living in the area. The prohibition of protests was only carried out if it was believed they were a threat to public order, and this was done with the oversight of a judge. Exceptionally, some protests had been prohibited due to the risk they posed to public order.

The use of firearms in France was regulated by the Criminal Code. This allowed a gradual response to respect necessity and proportionality to the violence and the threat. The goal was to reduce the risk of threatening life and the integrity of people. The police and gendarmerie were trained on how to use these weapons. Regarding the brigades, several changes in the practices of demonstrators, including the increase in use of social media, had meant that for three years, the strategy had changed. On average, there were two to three protests every day in Paris. To meet this challenge, the brigades were developed and had been used to break up certain disruptive groups. Since October 2023, the Ministry of Justice had circulated a document on combatting offences related to terrorist activities.

The fight against Islamophobia was a strong State policy. The strong Muslim community in France should be able to live with their beliefs peacefully to enjoy their religion. Any law which might be seen as a restriction did not target any specific population or any specific religion.

Questions by Committee Experts

A Committee Expert asked if minors in Mayotte could be afforded the same protections as in metropolitan France?

Another Expert said hate speech online affected artists and activists in the lesbian, gay, bisexual, transgender and intersex community. What had been done to prevent this?

An Expert said there had been a significant increase in those killed or wounded during protests or police operations. Were grenades and defensive bullets still used? What happened when police used these weapons? Was there a compulsory inquiry? Was there oversight regarding each use of weapons?

Responses by the Delegation

Minors were subjected to an age evaluation before they were recorded as minors. If recorded as a minor, they should not undergo another evaluation. The dismantling of camps was based on public legal rulings. The individuals were informed, and efforts were made to help them find shelters or to change their immigration status. Readmission into the Schengen space was a complex issue.

There was a doctrine for the use of medium weapons which allowed gradual and proportionate use. Recent changes allowed France to address the risk of wounds with these weapons. Law enforcement officers needed to be clearly trained on each type of weapon on a regular basis. There was a proposal to replace grenades with non-lethal “flash-bangs”. Random visits were undertaken to police and gendarmerie stations as a form of auditing. Efforts were made to identify the amount of time weapons were used.

Closing Remarks

ISABELLE ROME, Ambassador for Human Rights of France and head of the delegation, thanked the Committee for the dialogue. France was deeply attached to the rule of law and was a living democracy; the Committee’s recommendations would be scrupulously considered. France would continue to progress with an open-minded spirit, in partnership with civil society and the national human rights institution. The country was committed to renewing dialogue with the territory of New Caledonia and its inhabitants.

TANIA MARÍA ABDO ROCHOLL, Committee Chairperson, thanked the delegation for the dialogue, which had covered a wide range of subjects under the Covenant. The Committee aimed to ensure the highest level of implementation of the Covenant in France.

__________

CCPR.24.024E

Produced by the United Nations Information Service in Geneva for use of the information media; not an official record.

English and French versions of our releases are different as they are the product of two separate coverage teams that work independently.

MIL OSI United Nations News –

January 25, 2025

MIL-OSI USA: Federal Judge Rebuffs Pittsburgh Post-Gazette’s Claim That U.S. Labor Law Violates Constitution

Source: Communications Workers of America

PITTSBURGH, Pa. – A motion by representatives of the Pittsburgh Post-Gazette arguing that the National Labor Relations Act (NLRA) is unconstitutional was rejected by U.S. District Court Judge Cathy Bissoon on Tuesday.

The Post-Gazette (“PG Publishing Co.”) is facing an injunction hearing on Monday, Oct. 28, in which the National Labor Relations Board will seek a ruling from Judge Bissoon ordering and enjoining the PG to stop violating federal labor law, bargain with its workers in good faith, and pay for their health care costs until a new collective bargaining agreement (CBA), or health care plan, is agreed.

With its rejected motion, the PG joined Elon Musk, Trader Joe’s, and Amazon in claiming that the NLRA, which has regulated labor relations in the U.S. since its passage in 1935, violates the constitution. Judge Bissoon dismissed these arguments.

“While PG’s positions are not outlandish by contemporary standards, this Court declines its invitation to ignore nearly a century’s worth of settled jurisprudence. See NLRB v. Jones & Laughlin Steel Corp., 301 U.S. 1 (1937),” Bissoon wrote in her order. “Although respect for stare decisis appears less ‘in vogue’ as of late, there is something to be said for tradition. The undersigned will continue to respect it.”

Striking pressworkers, advertisers, and mailers have been on strike since October 6, 2022, following the PG unilaterally canceling the health care of its production and distribution workers over an increase in costs of $19 per week per person.

Editorial workers in the Newspaper Guild of Pittsburgh joined them on Oct. 18 on an unfair labor practice strike stemming from the company’s illegally unilateral decision to tear up the Guild’s contract in July of 2020 and from the company’s other illegal behavior.

“The Post-Gazette’s owners have gone beyond breaking the law and have argued that there should be no law at all,” said CWA District 2-13 Vice President Mike Davis. “It would be laughable at this point if it wasn’t causing real damage to the Post-Gazette’s workers and their families and undermining the news coverage that the people of Pittsburgh deserve. We are pleased that Judge Bissoon has rejected the Post-Gazette’s frivolous attempt to eliminate the National Labor Relations Act so we can focus on the real issue—the Post-Gazette’s failure to follow the law.”

Monday’s hearing in front of Judge Bissoon is scheduled to begin at 10 a.m. at the federal courthouse at 700 Grant St. in Downtown Pittsburgh.

###

About CWA: The Communications Workers of America represents working people in telecommunications, customer service, media, airlines, health care, public service and education, manufacturing, tech, and other fields.

cwa-union.org @cwaunion

MIL OSI USA News –

January 25, 2025

MIL-OSI USA: SBA to Help Michigan Businesses Affected by Drought

Source: United States Small Business Administration

ATLANTA – The U.S. Small Business Administration (SBA) announced today that federal Economic Injury Disaster Loans (EIDLs) are available in Michigan for small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations with economic losses from drought that began on Oct. 8.

The declaration includes the primary County of Lenawee, and the adjacent counties of Hillsdale, Jackson, Monroe and Washtenaw in Michigan, and Fulton and Lucas in Ohio.

“When farmers face crop losses and a disaster is declared by the Secretary of Agriculture, SBA working capital loans become a lifeline for eligible small businesses,” said Francisco Sánchez, Jr., associate administrator for the Office of Disaster Recovery and Resilience at the Small Business Administration. “These loans are the backbone that helps rural communities bounce back and thrive after a disaster strikes.”

Under this declaration, the SBA’s Economic Injury Disaster Loan (EIDL) program is available to eligible farm-related and nonfarm-related entities that suffered financial losses as a direct result of this disaster.  Apart from aquaculture enterprises, SBA cannot provide disaster loans to agricultural producers, farmers, and ranchers. Nurseries are eligible to apply for economic injury disaster loans for losses caused by drought conditions. 

The loan amount can be up to $2 million with interest rates of 4% for small businesses and
3.25% for private nonprofit organizations, with terms up to 30 years. Interest does not accrue, and payments are not due, until 12 months from the date of the first loan disbursement. The SBA sets loan amounts and terms based on each applicant’s financial condition. Eligibility is based on the size of the applicant, type of activity and its financial resources. These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits.

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

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

For information and to apply online visit SBA.gov/disaster. Applicants may also call the SBA’s Customer Service Center at (800) 6592955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

Submit completed loan applications to SBA no later than June 16, 2025.

###

About the U.S. Small Business Administration

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

MIL OSI USA News –

January 25, 2025

MIL-OSI USA: Administrator Samantha Power at a Press Conference in Phnom Penh

Source: USAID

ADMINISTRATOR SAMANTHA POWER: Thank you all. It is great to see everyone this evening.

It has been a great pleasure for me to be back in Cambodia for my fourth visit. In previous visits, of course, I have been awed by the majesty and rich culture of Angkor Wat, the incredible power and importance of the Tulsa Lang Genocide Museum, and, of course, the beauty of the Mekong River.

Being back here and discussing the deepening engagement between our two countries has been very enlightening for me. The partnership of today builds on several decades of investment by USAID in support of the dignity and prosperity of the Cambodian people.

I feel, personally, very fortunate to be the first USAID Administrator to visit Cambodia while in this role, and I have taken many notes about the priorities of the Government officials, students, and civil society leaders that I’ve had the chance to engage with.

Over the past few decades, the Cambodian people have made really remarkable strides to improve health, education, and economic growth. We, in the United States, again, have been able to support these efforts, including with a total of $3 billion in assistance over the past more-than-30 years.

We, in these years, supported the efforts of public health heroes like Mr. Yang Chiang, this country’s first entomologist, who I had the honor of meeting today. A man who has dedicated his life to trying to eliminate malaria here in Cambodia, and an individual who has been able to see with so many of you that Cambodia now has marked six straight years without a single death from malaria, and thus, again, is on the cusp of meeting this goal of eliminating malaria in this country.

We also have supported Cambodia’s education system to get more kids into school. Since 2007, the number of children enrolled in preschool programs has more than doubled, and Cambodia is close, in fact, to achieving universal access to primary education. USAID programs have doubled reading scores among the children that we have worked with, and we are now seeing the Cambodian Government using these same approaches to help even more young people.

We worked as well to increase trade between our two countries, and today, the United States is Cambodia’s largest export market. Over the past five years, indeed, Cambodia’s exports to the United States have more than doubled. There is meaningful progress like this to celebrate, and on this trip, I am glad to announce over $50 million in new funding from across the U.S. government to try to build on some of this progress.

With these funds, we will invest in helping Cambodian farmers connect with markets and adopt new technologies to keep producing plentiful and safe food, even as the climate changes. We will invest in keeping the Cambodian people safe by clearing landmines and other unexploded ordinances, building on decades of efforts to address the dangerous legacies of war. And importantly, we will invest in supporting civil society, labor, and independent media, investments that will not only support Cambodia’s democratic future but its economic future, as well.

On this visit, I have met with Cambodians from all walks of life – families fostering kids with disabilities, students and environmentalists, workers who care for some of this country’s most sacred sites, doctors, nurses and community health workers, labor activists, and brave individuals who seek to hold those with power accountable to the principles enshrined in this country’s constitution: democracy, human rights, transparency.

There is great potential for the relationship between the United States and Cambodia to grow stronger, and, as is the case in all of our important relationships, there are also concerns, including about unjustified arrests and threats to basic rights. We are following the case of journalist Mech Dara very closely, including some potential developments today. I had a chance to both meet with Dara’s family, and to raise this issue, along with other concerning cases, in my meeting with the Prime Minister today.

All of these cases are sensitive, but I will just underscore that we have emphasized our support for finding positive resolutions. More broadly, as I discussed with Prime Minister Hen Mannet earlier today, American and international companies see real opportunity here in Cambodia. But, in order to invest here, they want to see meaningful improvements in the business enabling environment, to tackle corruption, to improve respect for labor rights, and to address the cyber scam operations plaguing Cambodia’s international reputation.

Working toward greater transparency, accountability and protection of human rights can unlock extraordinary prosperity for the Cambodian people. That can be the promise of a new generation, and we, in the United States, will be eager partners in working together to achieve it.

Thank you so much, and I look forward to taking your questions.

QUESTION: Thank you. Hi, I’m Prak Chan Thul from Kiripost. So, you said you announced $50 new million for Cambodia. What? What have you heard from the authorities of the Cambodian government that in return of this new aid and what have you – what will you promise in the case of Mech Dara, will he be released? Thank you.

ADMINISTRATOR POWER: Thank you. I’m not going to comment further on Mech Dara’s case beyond to stress the importance of independent media, of checks and balances, and of the rule of law.

With regard to the new investments that have been announced. They range from an additional investment in the prevention of tuberculosis. I was able, yesterday in Siem Reap, to witness a very energetic effort to reach at least some of the Cambodians who have tuberculosis, but often do not know they have TB until it is not only too late for them, but too late for others, given how the disease spreads. So, USAID is partnering with community-based organizations that will reach citizens where they are, not expecting citizens to experience a symptom and then travel a long way to get a diagnosis, but an effort really to make the diagnostic technology more mobile and more readily available. And, this is with an eye to helping Cambodia and Cambodians reach the goal that the government has set to eliminate TB by 2030. So, this is a $4 million investment in a local organization that is driving some of this community based work to get rid of TB.

In addition, just to stay in the area of public health, we have announced an additional $1 million to invest in doing a survey for the Cambodian people of blood lead levels. There is significant lead poisoning among children in many developing countries, including Cambodia, but understanding exactly where those elevated levels of lead in the blood are clustered, understanding the sources of lead poisoning is absolutely critical to eliminating lead poisoning going forward.

And, this was something – both this and TB and, of course, all of the work we have done together on malaria, were each topics that I had a chance to discuss with the Prime Minister, and sensed a lot of enthusiasm to go forward again with the efforts to eliminate TB, and the effort now to get a handle on precisely what the sources of lead poisoning are so as to embark on a multi-faceted effort to regulate lead and to ensure that Cambodia’s children are no longer exposed to something that can be very harmful to educational attainment, and can ultimately even cause premature death.

We also are announcing an investment of an additional $5 million to support workers, civil society, and independent media. And here, let me just note, obviously these are investments in non-governmental actors. But, one of the topics that we discussed at length with the Prime Minister was his broad ambition to attract more foreign investment, to take steps that will ensure that the economy continues to grow and even grows more, and creates jobs for all of the young people who are looking for jobs every year. But, it is really, really important for investors to have confidence in the rule of law, for corruption to be tackled, so that, for example, American companies can feel confident that they can invest here without having to pay bribes or engage in kickbacks, which are illegal in the United States.

And so, these investments in civil society, in media, in the dignity of work and workers – all of these are investments as well in Cambodia’s economic development and that broad ambition that so many Cambodians have for their children to enjoy a more prosperous future than they themselves.

QUESTION: Hi, my name is Danielle Keaton Olson. I’m a freelance journalist based in Phnom Penh, and I was wondering so, Cambodian-based labor rights organization called Central has gotten under fire for receiving foreign funding. The Cambodian government has criticized it for receiving foreign funding. And, of course, there’s been the arrest of our colleague and the U.S. recognized Trafficking-In-Persons report hero, Mech Dera. Are these raising alarms or concerns within USAID at this moment?

ADMINISTRATOR POWER: Well, I have had the chance on this visit to sit down with individuals from Central and to hear firsthand about the experiences that they have been having, the level of the scrutiny of their operations, and the concerns that they have about being able to continue doing the work that has proven so important for workers rights here in Cambodia. I also had a chance in Siem Reap to meet with individuals who have helped organize, those who actually maintain these cherished tourist sites, and who themselves have organized in order to secure better wages, better working conditions, better hours, et cetera.

President Biden is laser-focused on labor rights at home and indeed has shown tremendous initiative and leadership on promoting global labor rights. And so, it was very important in having this visit for us to sit down and dig into just those issues. And, one of the arguments that I made today with the government, and it’s an argument again that U.S. officials are making all around the world, is that labor rights and workers abilities – a worker’s ability and workers’ abilities to advocate for themselves without fear of persecution, is absolutely critical to growing the economy in a manner that expands livelihoods and prosperity for all Cambodians.

So, this is not simply an issue of human rights, which it is, it is also absolutely critical that the freedom to organize, the freedom to associate, the freedom to express one’s concerns, be protected. And, I think that is the foundation to an economy that will not only grow but grow in an inclusive manner that benefits ordinary Cambodians and not merely those who have benefited from growth in prior generations.

QUESTION: Sorry. Has it – just to clarify – Has it raised some concerns about USAID ability to support these values that, in terms of labor rights and independent media, that the U.S. government values?

ADMINISTRATOR POWER: Well, as I indicated in announcing additional support, you know, when these rights are challenged, it becomes all the more important for USAID to be working in partnership with those who are bravely defending those rights. And so, I actually think it underscores the importance of these investments, and I think that is certainly the message that I heard from the labor organizers that I’ve spoken with over the last few days – is both the resources to support those who are organizing, but also what we call the development diplomacy, you know, raising these – raising with senior government officials, the importance of these rights being protected and respected. And, the United States is not alone in raising these concerns. Obviously, other democracies are intent as well in raising concerns about, again, some of what appear to be the growing pressures on workers and on unions and on labor organizers.

QUESTION: Good evening, madam. My name is Hul Reaksmey. I am reporter from Voice of America. My question is, what is your observation about Chinese growing in Cambodia, when you talk about Cambodia effort to improve democracy?

ADMINISTRATOR POWER: Sorry, just a little bit hard to hear. Maybe just slow down, and I heard the first part, but just the last part of your question?

QUESTION: Does the Chinese growing influence undermine efforts of Cambodia to improve democracy?

ADMINISTRATOR POWER: Thank you. Well, one of the things that the United States stresses in the countries where it works around the world is the importance of transparency, a spirit of partnership, the importance of natural resources being protected and preserved. As we just discussed, the importance of civil society and non-governmental actors, holding government accountable, and maybe this is a point I would stress even the most strongly, the importance of the investments we make, strengthening a country’s path to independence, rather than any kind of dependence. And so, one of the things that really stands out for me in terms of the U.S. development model is that we provide our support by-and-large through grants.

It’s extremely important to us that when we invest in health programming or education programming or food security efforts, like the USDA program that I’ve announced on this visit; or demining, like the additional $12 million that I announced on this visit, that the Cambodian people understand that these resources are invested in a spirit of partnership.

We are listening to our Cambodian partners and trying to mobilize resources in support of their objectives. What we do not want is for Cambodia or the Cambodian people to be somehow indebted to us in a manner that actually impedes this country’s economic development.

So, just to give you one statistical example of this. The United States invests about nine dollars in grants for every dollar of loan that the United States provides. The PRC invests about nine dollars in loans for every dollar in grants. And, one of the challenges – and these numbers are lower, I think, than the actual number, but at least that is the ratio, at least – one of the challenges that can saddle future generations with the obligation to repay debt, often at high interest, debt that was incurred long before.

Again, our goal is for Cambodia to move, once and for all, from aid to trade. We know the capability of the Cambodian people. We see it in the incredible economic growth that this country has enjoyed. We see it in the resilience of the people who have gone through so much over the generations. And, what we seek to do is to be catalytic and responsive to our partners objectives, but the ultimate objective is for a sovereign and independent Cambodia to make its own choices about how to deploy its own resources, including its tremendous human capital.

QUESTION: Hello, good evening ma’am. And my name is Ko Ratha from the Cambodia-China Times, and we call in Khmer the CC-Times. And, I have some questions for you. I just would like to say, this is very busy trip to Cambodia. And my first question is, how do you think about the development in Cambodia? As you mentioned that this is your fourth trip to Cambodia. And the second one is, why Americans decided to support more aid to Cambodia? And the last one, what is your encouragement in order to use aid in the right way and now the U.S. purpose?

ADMINISTRATOR POWER: Well, I have only been USAID Administrator now for more than three and a half years, let’s say, but one of the things that is wonderful about visiting Cambodia is to see the way in which previous investments by USAID and really from the American people, have produced such significant results here.

I gave the example of the elimination of malaria. The work done to eliminate malaria was done by Cambodians. It’s Cambodia that achieved, is on the verge, I should say, of achieving that very, very significant accomplishment. But USAID has been present over the last several decades in supporting that work. I mentioned in education that USAID has made investments in looking to see what forms of education are having the greatest impact with students. That’s a, you know, relatively small program, but that produced really valuable information, and now the Ministry of Education is using that information to inform its decisions about curriculum.

I think these are two really important examples of how this assistance can flow. It starts with respecting the judgment and the priorities of the Cambodian people. One of the things about USAID that is not well known, and even that I was not aware of before I came to USAID, is that three quarters of our staff in the countries in which we work are nationals of the countries in which we work. So, here, of course, that means that the vast majority of our staff here in Cambodia are Cambodians who live in their communities – who listen to their neighbors, who understand the importance of making health progress, and also understand the importance of fighting corruption, and ensuring that political reform and economic development go hand in hand.

So, I think that is our posture going forward – as we have been present in the country in some form since just after the Paris Peace Agreements, since 1993-1994 – we have learned a lot, and the people from whom we have learned the most are the Cambodian people. So, I think our presence here is not about, you know, geopolitical competition, it is about advancing the dignity, prosperity, and peace for Cambodians.

QUESTION: I wanted to follow up on the aid that was rescinded and then reinstated last year after the election, which the State Department called the Cambodian election last year, neither free nor fair, and then $18 million U.S. aid was withheld. Then that decision was reversed two months later. The U.S. Embassy told Cambodian news at the time that the aid was reinstated to, “encourage the new government to live up to its stated intentions to be more open and democratic.” So, a year later, I just wanted to follow up and ask, do you think it worked?

ADMINISTRATOR POWER: Well, first, I think it’s important to discuss the aid itself, and I don’t need to repeat what we’ve already discussed here today, but when we invest $12 million in demining, that means fewer kids are going to run into unexploded ordinances. When we invest in moving diagnostic equipment that does X-rays of the lungs, that means fewer people are going to carry TB without knowing it. And, when we invest after COVID-19 and the horrible toll that that took here, not only on human health, but on the economy. When we invest in lab equipment and surveillance to prevent future global health security threats, that’s a really important investment in Cambodia’s health and stability, but also in America’s health. Every investment in global health security that we make internationally ultimately benefits us all, since we are connected.

So, I think that there absolutely is an effort to engage the government that has been now in office for 14 months, and to raise concerns about individuals who have, in some cases, exposed challenges in Cambodia that the Cambodian people benefit from seeing exposed like the scamming centers, like corruption, like human rights abuse by police or others.

We over this last or really over these last decades, but including with the new government, have made investments in labor organizing, in independent media, in these civil society organizations. At the same time, we have pressed these issues through our development diplomacy.

I don’t think that the United States, anywhere in the world, gives up on its efforts to promote human rights, to stress the linkage between economic progress and checks and balances, and again, the protection and promotion of human rights. And, of course, there are issues of concern, just as there were when the pause was put in place.

But, our programming resources do not go to the government. They go to non-governmental organizations. They go to the very organizations that, in many cases, are holding government accountable. In health, of course, goes to community based organizations that, yes, work alongside the Ministry of Health, but it is really important to take note that our assistance is to the people of this country, and that assistance, as we examine it, if it is advancing dignity, advancing checks and balances, it’s important to sustain those investments over time.

MIL OSI USA News –

January 25, 2025

MIL-OSI USA: RI Department of State to Host ‘Spooky State House’ on October 29

Source: US State of Rhode Island

PROVIDENCE, RI � Friendly frights, ghost stories, and lots of Halloween treats will soon return to the Rhode Island State House!

This year’s Spooky State House will take place on Tuesday, October 29. Trick-or-treaters are welcome to stop by the Rhode Island State House (82 Smith Street, Providence) between 5:30 p.m. and 7 p.m.

Those who dare to brave the halls of the Spooky State House will be greeted by decorations and treats from the offices of Secretary of State Gregg M. Amore, Governor Dan McKee, Lieutenant Governor Sabina Matos, Attorney General Peter F. Neronha, General Treasurer James A. Diossa, the Rhode Island Senate, and the Rhode Island House of Representatives.

Costumes are encouraged and admission is free. This is a family-friendly event; all ages are welcome. Attendees are encouraged to bring a non-perishable food item for the Rhode Island Community Food Bank.

More information is available through the Facebook event: https://www.facebook.com/share/nJ6hFxaVBNweY4XP/

RSVPs are not required.

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MIL OSI USA News –

January 25, 2025

MIL-OSI: DT Cloud Acquisition Corporation Announces Entering into a Business Combination Agreement with Maius Pharmaceutical

Source: GlobeNewswire (MIL-OSI)

New York, New York, Oct. 23, 2024 (GLOBE NEWSWIRE) — DT Cloud Acquisition Corporation (Nasdaq: DYCQU, DYCQ, DYCQR) (“DT Cloud” or the “SPAC”), a publicly-traded special purpose acquisition company, and Maius Pharmaceutical Co., Ltd. (“Maius” or the “Company”), a biopharmaceutical R&D company, announced that they had entered into a definitive business combination agreement (the “Business Combination Agreement”) for the merger transactions (the “Business Combination,” and the transactions in connection with the Business Combination collectively, the “Transaction”). As contemplated in the Business Combination Agreement, upon closing of the Transaction, Maius will become a wholly-owned subsidiary of Maius Pharmaceutical Group Co., Ltd., a newly formed holding company (“Pubco”), the securities of which will be listed on The Nasdaq Stock Market LLC (“Nasdaq”).

Maius is a biopharmaceutical R&D company focusing on innovative formulations and targeted small-molecule chemical drugs. The Company focuses on developing new drugs in three major areas: anticancer drugs, autoimmune medication and anti-infectives. Its core products include small-molecule chemical drug candidates and peptide drug candidates. It has independently established an integrated drug development platform, combining a chemical drug screening system with a drug delivery system.

Transaction Overview

Upon consummation of the Business Combination, the outstanding shares of DT Cloud and Maius will be converted into the ordinary shares of Pubco. The Business Combination Agreement provides for an equity value of $250 million for Maius at the time of the closing of the Business Combination.

The Transaction has been unanimously approved by the boards of directors of both DT Cloud and Maius and is expected to be consummated in the first half of 2025, subject to regulatory approvals, the approvals by the shareholders of DT Cloud and Maius, respectively, and the satisfaction of certain other customary closing conditions, including, among others, a registration statement (the “Registration Statement”), of which the proxy statement/prospectus forms a part, being declared effective by the U.S. Securities and Exchange Commission (the “SEC”), and the approval by Nasdaq of the listing application of Pubco. Upon the closing of the Business Combination, Pubco, the combined company, is expected to operate under the name of “Maius Pharmaceutical Group Co., Ltd.” and with a new trading symbol.

The description of the Business Combination contained herein is only a summary and is qualified in its entirety by reference to the Business Combination Agreement. A more detailed description of the transaction terms and a copy of the definitive Business Combination Agreement will be included in a Current Report on Form 8-K to be filed by DT Cloud with the SEC and will be available on the SEC’s website at www.sec.gov.

Advisors

Wilson Sonsini Goodrich & Rosati, Professional Corporation, Ogier (Cayman) LLP and Han Kun Law Offices are serving as legal counsel to DT Cloud. Sichenzia Ross Ference Carmel LLP, Appleby (Cayman) Ltd. and Beijing Yingke Law Firm Shenzhen Office are serving as legal counsel to Maius.

About Maius

Maius is a biopharmaceutical R&D company focusing on the research and development of innovative formulations and targeted small-molecule chemical drug candidates. The Company focuses on developing new drugs in three major areas: anticancer drugs, autoimmune medication and anti-infectives. Its core products under development include small-molecule chemical drugs and peptide drugs. It has independently established an integrated drug development platform, combining a chemical drug screening system with a drug delivery system.

About DT Cloud Acquisition Corporation

DT Cloud is a blank check company formed for the purpose of effecting a merger, share exchange, asset acquisition, stock purchase, reorganization or other similar business combination with one or more businesses. While DT Cloud may pursue an initial business combination target in any business or industry, it intends to focus its search on industries that complement its management team’s background. DT Cloud is led by Shaoke Li, its Chief Executive Officer, and Guojian Chen, its Chief Financial Officer.

Forward-looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained in this press release, including statements as to future results of operations and financial position, planned products and services, business strategy and plans, objectives of management for future operations of the Company, market size and growth opportunities, competitive position and technological and market trends, estimated implied pro forma enterprise value of the combined company following the Mergers (the “Combined Company”), the cash position of the Combined Company following the closing of the Transaction, SPAC and the Company’s ability to consummate the Transaction, and expectations related to the terms and timing of the Transaction, as applicable, are forward-looking statements. Some of these forward-looking statements can be identified by the use of forward-looking words, including “anticipate,” “expect,” “suggests,” “plan,” “believe,” “predict,” “potential,” “seek,” “future,” “propose,” “continue,” “intend,” “estimates,” “targets,” “projects,” “should,” “could,” “would,” “may,” “will,” “forecast” or the negatives of these terms or variations of them or similar terminology although not all forward-looking statements contain such terminology. All forward-looking statements are based upon current estimates and forecasts and reflect the views, assumptions, expectations, and opinions of SPAC and the Company as of the date of this press release, and are therefore subject to a number of factors, risks and uncertainties, some of which are not currently known to SPAC or the Company and could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Some of these factors include, but are not limited to: (1) the occurrence of any event, change or other circumstances that could give rise to the termination of the Business Combination Agreement; (2) the outcome of any legal proceedings that may be instituted against SPAC, the Company or others following the announcement of the Transaction, the Business Combination Agreement and other ancillary documents with respect thereto; (3) the amount of redemption requests made by SPAC public shareholders and the inability to complete the Transaction due to the failure to obtain approval of the shareholders of SPAC, to obtain financing to complete the business combination or to satisfy other conditions to closing and; (4) changes to the proposed structure of the Mergers that may be required or appropriate as a result of applicable laws or regulations or as a condition to obtaining regulatory approval of the Mergers; (5) the ability to meet stock exchange listing standards following the consummation of the Transaction; (6) the risk that the Transaction disrupts current plans and operations of the Company as a result of the announcement and consummation of the Transaction; (7) the ability to recognize the anticipated benefits of the Transaction, which may be affected by, among other things, competition, the ability of the Company to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; (8) costs related to the business combination; (9) risks associated with changes in applicable laws or regulations and the Company’s international operations; (10) the possibility that the Company or the Combined Company may be adversely affected by other economic, business, and/or competitive factors; (11) the Company’s estimates of expenses and profitability; (12) the Company’s mission, goals and strategies; (13) the Company’s future business development, financial condition and results of operations; (14) expected growth of the global digital trading and investing services industry; (15) expected changes in the Company’s revenues, costs or expenditures; (16) the Company’s expectations regarding demand for and market acceptance of its products and service; (17) the Company’s expectations regarding its relationships with users, customers and third-party business partners; (18) competition in the Company’s industry; (19) relevant government policies and regulations relating to the Company’s industry; (20) general economic and business conditions globally and in jurisdictions where the Company operates; and (21) assumptions underlying or related to any of the foregoing. The foregoing list of factors is not exhaustive. You should carefully consider the risks and uncertainties described in the “Risk Factors” section in the annual report on Form 10-K for the year ended December 31, 2023 of SPAC, and the “Risk Factors” section of the Registration Statement relating to the Transaction which is expected to be filed with the SEC, and other documents filed from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. There may be additional risks that neither SPAC nor the Company presently know or that SPAC or the Company currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In light of these factors, risks and uncertainties, the forward-looking events and circumstances discussed in this press release may not occur, and any estimates, assumptions, expectations, forecasts, views or opinions set forth in this press release should be regarded as preliminary and for illustrative purposes only and accordingly, undue reliance should not be placed upon the forward-looking statements. SPAC and the Company assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

Additional Information and Where to Find It

In connection with the Transaction, SPAC and the Company intend to cause the Registration Statement to be filed with the SEC, which will include a proxy statement to be distributed to SPAC’s shareholders in connection with its solicitation for proxies for the vote by SPAC’s shareholders in connection with the Transaction. You are urged to read the proxy statement/prospectus and any other relevant documents filed with the SEC when they become available because, among other things, they will contain updates to the financial, industry and other information herein as well as important information about SPAC, the Company and the Transaction. Shareholders of SPAC will be able to obtain a free copy of the proxy statement when filed, as well as other filings containing information about SPAC, the Company and the Transaction, without charge, at the SEC’s website located at www.sec.gov. This press release does not contain all the information that should be considered concerning the proposed business combination and is not intended to form the basis of any investment decision or any other decision in respect of the business combination.

INVESTMENT IN ANY SECURITIES DESCRIBED HEREIN HAS NOT BEEN APPROVED OR DISAPPROVED BY THE SEC OR ANY OTHER REGULATORY AUTHORITY NOR HAS ANY AUTHORITY PASSED UPON OR ENDORSED THE MERITS OF THE OFFERING OR THE ACCURACY OR ADEQUACY OF THE INFORMATION CONTAINED HEREIN. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

Participants in the Solicitation

SPAC, the Company and their respective directors, executive officers, other members of management, and employees, under SEC rules, may be deemed to be participants in the solicitation of proxies from SPAC’s shareholders in connection with the Transaction. You can find information about SPAC’s directors and executive officers and their interest in SPAC can be found in its Annual Report on Form10-K for the fiscal year ended December 31, 2023, which was filed with the SEC on March 28, 2024. A list of the names of the directors, executive officers, other members of management and employees of SPAC and the Company, as well as information regarding their interests in the Transaction, will be contained in the Registration Statement to be filed with the SEC by the Company. Additional information regarding the interests of such potential participants in the solicitation process may also be included in other relevant documents when they are filed with the SEC. You may obtain free copies of these documents from the sources indicated above.

No Offer or Solicitation

This press release is not a proxy statement or solicitation of a proxy, consent or authorization with respect to any securities or in respect of the Transaction and does not constitute an offer to sell or the solicitation of an offer to buy any securities of SPAC, the Company or the Combined Company, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended.

Contact:

For investors:

DT Cloud Acquisition Corporation
Shaoke Li
Chief Executive Officer
30 Orange Street
London
United Kingdom, WC2H 7HF
Email: jack.li@dtcloudspac.com

Maius Pharmaceutical Co., Ltd.
Mingfeng Shi
Chief Executive Officer
Room 913, Building 1, No. 515 Huanke Road, Pudong New District, Shanghai, China
Email: maius@maiuspharma.com

The MIL Network –

January 25, 2025

MIL-OSI: South Plains Financial, Inc. Reports Third Quarter 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

LUBBOCK, Texas, Oct. 23, 2024 (GLOBE NEWSWIRE) — South Plains Financial, Inc. (NASDAQ:SPFI) (“South Plains” or the “Company”), the parent company of City Bank (“City Bank” or the “Bank”), today reported its financial results for the quarter ended September 30, 2024.

Third Quarter 2024 Highlights

Net income for the third quarter of 2024 was $11.2 million, compared to $11.1 million for the second quarter of 2024 and $13.5 million for the third quarter of 2023.
Diluted earnings per share for the third quarter of 2024 was $0.66, compared to $0.66 for the second quarter of 2024 and $0.78 for the third quarter of 2023.
Average cost of deposits for the third quarter of 2024 was 247 basis points, compared to 243 basis points for the second quarter of 2024 and 207 basis points for the third quarter of 2023.
Net interest margin, calculated on a tax-equivalent basis, was 3.65% for the third quarter of 2024, compared to 3.63% for the second quarter of 2024 and 3.52% for the third quarter of 2023.
Nonperforming assets to total assets were 0.59% at September 30, 2024, compared to 0.57% at June 30, 2024 and 0.12% at September 30, 2023.
Return on average assets for the third quarter of 2024 was 1.05% annualized, compared to 1.07% annualized for the second quarter of 2024 and 1.27% annualized for the third quarter of 2023.
Tangible book value (non-GAAP) per share was $25.75 as of September 30, 2024, compared to $24.15 as of June 30, 2024 and $21.07 as of September 30, 2023.
The consolidated total risk-based capital ratio, Common Equity Tier 1 risk-based capital ratio, and Tier 1 leverage ratio at September 30, 2024 were 17.61%, 13.25%, and 11.76%, respectively. These ratios significantly exceeded the minimum regulatory levels necessary to be deemed “well-capitalized”.

Curtis Griffith, South Plains’ Chairman and Chief Executive Officer, commented, “I’m pleased with our third quarter results, which I believe demonstrate that the Bank is performing at a high level. We remain well capitalized and focused on managing our loan portfolio as the credit environment continues to normalize. Against this backdrop, we are maintaining our credit discipline and not stretching to chase loan growth. We are also building liquidity as we expect the Federal Reserve to continue reducing their market interest rate to stimulate economic growth looking to the year ahead. Importantly, we are seeing a level of optimism from our customers that we have not seen over the last seven to eight quarters and our new business production pipeline is the strongest that it has been in more than two years. Looking forward, we remain confident in the credit profile of our loan portfolio and are cautiously optimistic that we will see loan growth accelerate in the quarters ahead. Additionally, we are beginning to see deposit cost pressures ease, which we expect will be supportive of our net interest margin as well as continued deposit growth.”

Results of Operations, Quarter Ended September 30, 2024

Net Interest Income

Net interest income was $37.3 million for the third quarter of 2024, compared to $35.9 million for the second quarter of 2024 and $35.7 million for the third quarter of 2023. Net interest margin, calculated on a tax-equivalent basis, was 3.65% for the third quarter of 2024, compared to 3.63% for the second quarter of 2024 and 3.52% for the third quarter of 2023. The average yield on loans was 6.68% for the third quarter of 2024, compared to 6.60% for the second quarter of 2024 and 6.10% for the third quarter of 2023. The average cost of deposits was 247 basis points for the third quarter of 2024, which is 4 basis points higher than the second quarter of 2024 and 40 basis points higher than the third quarter of 2023.

Interest income was $61.6 million for the third quarter of 2024, compared to $59.2 million for the second quarter of 2024 and $56.5 million for the third quarter of 2023. Interest income increased $2.4 million in the third quarter of 2024 from the second quarter of 2024, which was primarily comprised of an increase of $934 thousand in loan interest income and an increase of $1.5 million in interest income on other interest-earning assets. The growth in loan interest income was due to a rise of 8 basis points in the yield on loans, partially offset by a decrease in average loans of $12.7 million. The increase in interest income on other interest-earning assets was predominately a result of increased liquidity from growth in deposits and a net decrease in loans during the third quarter. Interest income increased $5.1 million in the third quarter of 2024 compared to the third quarter of 2023. This increase was primarily due to an increase of average loans of $64.2 million and higher market interest rates during the period, resulting in growth of $5.3 million in loan interest income.

Interest expense was $24.3 million for the third quarter of 2024, compared to $23.3 million for the second quarter of 2024 and $20.8 million for the third quarter of 2023. Interest expense increased $1.0 million compared to the second quarter of 2024 and increased $3.5 million compared to the third quarter of 2023. The $1.0 million increase was primarily as a result of growth in average interest-bearing deposits of $64.4 million. The $3.5 million increase was primarily as a result of growth in average interest-bearing deposits of $111.2 million and a 43 basis point increase in the cost of interest-bearing liabilities.

Noninterest Income and Noninterest Expense

Noninterest income was $10.6 million for the third quarter of 2024, compared to $12.7 million for the second quarter of 2024 and $12.3 million for the third quarter of 2023. The decrease from the second quarter of 2024 was primarily due to a decrease of $1.5 million in mortgage banking revenues, mainly from a decrease of $1.4 million in the fair value adjustment of the mortgage servicing rights assets as interest rates that affect the value declined in the third quarter of 2024. Additionally, there was a decrease of $750 thousand in bank card services and interchange revenue mainly as a result of incentives received during the second quarter of 2024 and a decrease of $315 thousand in income from investments in Small Business Investment Companies. The decrease in noninterest income for the third quarter of 2024 as compared to the third quarter of 2023 was primarily due to a decrease of $2.7 million in mortgage banking activities revenue mainly from a decline of $2.7 million in the fair value adjustment of the mortgage servicing rights assets as interest rates that affect the value declined in the third quarter of 2024. Further, there was approximately $700 thousand in insurance proceeds received for property damage in the third quarter of 2024, which affected other noninterest income in both period comparisons.

Noninterest expense was $33.1 million for the third quarter of 2024, compared to $32.6 million for the second quarter of 2024 and $31.5 million for the third quarter of 2023. The $556 thousand increase from the second quarter of 2024 was largely the result of a rise of $226 thousand in net occupancy expenses, primarily from increased utilities, growth of $155 thousand in marketing and development expenses, and smaller increases in other noninterest expenses – including operational and fraud losses, losses on disposal of fixed assets, settlements, and charitable donations. These increases were partially offset by a decrease of $432 thousand in personnel costs as there was an additional $350 thousand in accrued expense in the second quarter related to incentive-based compensation. The increase in noninterest expense for the third quarter of 2024 as compared to the third quarter of 2023 was largely the result of an increase of $274 thousand in IT and data services related to the Company’s cloud project, an increase of $247 thousand in professional services mainly from legal expenses, and smaller increases in other noninterest expenses – including losses on disposal of fixed assets, settlements, and charitable donations.

Loan Portfolio and Composition

Loans held for investment were $3.04 billion as of September 30, 2024, compared to $3.09 billion as of June 30, 2024 and $2.99 billion as of September 30, 2023. The $56.9 million, or 1.8%, decrease during the third quarter of 2024 as compared to the second quarter of 2024 occurred primarily as a result of the expected payoff of a $16 million short-term bridge note that was originated in the second quarter of 2024, the early payoff of a $17 million residential land development loan, and an $18 million decrease in consumer auto loans. As of September 30, 2024, loans held for investment increased $43.8 million, or 1.5%, from September 30, 2023, primarily attributable to strong organic loan growth, occurring mainly in multi-family property loans, direct-energy loans, and single-family property loans, partially offset by decreases in consumer auto loans and construction, land, and development loans.

Deposits and Borrowings

Deposits totaled $3.72 billion as of September 30, 2024, compared to $3.62 billion as of June 30, 2024 and $3.62 billion as of September 30, 2023. Deposits increased by $94.8 million, or 2.6%, in the third quarter of 2024 from June 30, 2024. As of September 30, 2024, deposits increased $98.7 million, or 2.7%, from September 30, 2023. Noninterest-bearing deposits were $998.5 million as of September 30, 2024, compared to $951.6 million as of June 30, 2024 and $1.05 billion as of September 30, 2023. Noninterest-bearing deposits represented 26.9% of total deposits as of September 30, 2024. The quarterly change in total deposits was mainly due to organic growth in both noninterest-bearing and interest-bearing deposits. The year-over-year increase in total deposits was primarily the result of organic growth in interest-bearing deposits, given the overall focus in the banking industry on improving liquidity, partially offset by a decline in noninterest-bearing deposits.

Asset Quality

The Company recorded a provision for credit losses in the third quarter of 2024 of $495 thousand, compared to $1.8 million in the second quarter of 2024 and a negative provision of $700 thousand in the third quarter of 2023. The provision during the third quarter of 2024 was largely attributable to net charge-off activity, partially offset by decreased loan balances.

The ratio of allowance for credit losses to loans held for investment was 1.41% as of September 30, 2024, compared to 1.40% as of June 30, 2024 and 1.41% as of September 30, 2023.

The ratio of nonperforming assets to total assets was 0.59% as of September 30, 2024, compared to 0.57% as of June 30, 2024 and 0.12% as of September 30, 2023. The previously disclosed $20.0 million multi-family property credit, which was placed on nonaccrual status in the second quarter of 2024 after the maturity date was accelerated, was subsequently modified during the third quarter. The modification included more stringent credit metrics. Although the loan remains in nonaccrual status, the loan continues to pay as agreed and is showing improving credit trends. Annualized net charge-offs were 0.11% for the third quarter of 2024, compared to 0.10% for the second quarter of 2024 and 0.05% for the third quarter of 2023.

Capital

Book value per share increased to $27.04 at September 30, 2024, compared to $25.45 at June 30, 2024. The change was primarily driven by $8.9 million of net income after dividends paid and an increase in accumulated other comprehensive income (“AOCI”) of $16.6 million. The increase in AOCI was attributed to the after-tax increase in fair value of our available for sale securities, net of fair value hedges, as a result of decreases in long-term market interest rates during the period. Tangible common equity to tangible assets (non-GAAP) increased 33 basis points to 9.77% in the third quarter of 2024.

Conference Call

South Plains will host a conference call to discuss its third quarter 2024 financial results today, October 23, 2024, at 5:00 p.m., Eastern Time. Investors and analysts interested in participating in the call are invited to dial 1-877-407-9716 (international callers please dial 1-201-493-6779) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call and conference materials will be available on the Company’s website at https://www.spfi.bank/news-events/events.

A replay of the conference call will be available within two hours of the conclusion of the call and can be accessed on the investor section of the Company’s website as well as by dialing 1-844-512-2921 (international callers please dial 1-412-317-6671). The pin to access the telephone replay is 13749147. The replay will be available until November 6, 2024.

About South Plains Financial, Inc.

South Plains is the bank holding company for City Bank, a Texas state-chartered bank headquartered in Lubbock, Texas. City Bank is one of the largest independent banks in West Texas and has additional banking operations in the Dallas, El Paso, Greater Houston, the Permian Basin, and College Station, Texas markets, and the Ruidoso, New Mexico market. South Plains provides a wide range of commercial and consumer financial services to small and medium-sized businesses and individuals in its market areas. Its principal business activities include commercial and retail banking, along with investment, trust and mortgage services. Please visit https://www.spfi.bank for more information.

Non-GAAP Financial Measures

Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets, and Pre-Tax, Pre-Provision Income. The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures.

We classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies.

A reconciliation of non-GAAP financial measures to GAAP financial measures is provided at the end of this press release.

Available Information

The Company routinely posts important information for investors on its web site (under www.spfi.bank and, more specifically, under the News & Events tab at www.spfi.bank/news-events/press-releases). The Company intends to use its web site as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD (Fair Disclosure) promulgated by the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, investors should monitor the Company’s web site, in addition to following the Company’s press releases, SEC filings, public conference calls, presentations and webcasts.

The information contained on, or that may be accessed through, the Company’s web site is not incorporated by reference into, and is not a part of, this document.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect South Plains’ current views with respect to future events and South Plains’ financial performance. Any statements about South Plains’ expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. South Plains cautions that the forward-looking statements in this press release are based largely on South Plains’ expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond South Plains’ control. Factors that could cause such changes include, but are not limited to, the impact on us and our customers of a decline in general economic conditions and any regulatory responses thereto; potential recession in the United States and our market areas; the impacts related to or resulting from bank failures and any continuation of uncertainty in the banking industry, including the associated impact to the Company and other financial institutions of any regulatory changes or other mitigation efforts taken by government agencies in response thereto; increased competition for deposits in our market areas and related changes in deposit customer behavior; the impact of changes in market interest rates, whether due to the current elevated interest rate environment or future reductions in interest rates and a resulting decline in net interest income; the resurgence of elevated levels of inflation or inflationary pressures, in the United States and our market areas; the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; increases in unemployment rates in the United States and our market areas; declines in commercial real estate values and prices; uncertainty regarding United States fiscal debt, deficit and budget matters; cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks; severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events; the impact of changes in U.S. presidential administrations or Congress; competition and market expansion opportunities; changes in non-interest expenditures or in the anticipated benefits of such expenditures; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; potential increased regulatory requirements and costs related to the transition and physical impacts of climate change; current or future litigation, regulatory examinations or other legal and/or regulatory actions; and changes in applicable laws and regulations. Additional information regarding these risks and uncertainties to which South Plains’ business and future financial performance are subject is contained in South Plains’ most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the SEC, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of such documents, and other documents South Plains files or furnishes with the SEC from time to time, which are available on the SEC’s website, www.sec.gov. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements due to additional risks and uncertainties of which South Plains is not currently aware or which it does not currently view as, but in the future may become, material to its business or operating results. Due to these and other possible uncertainties and risks, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized and readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Any forward-looking statements presented herein are made only as of the date of this press release, and South Plains does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, new information, the occurrence of unanticipated events, or otherwise, except as required by applicable law. All forward-looking statements, express or implied, included in the press release are qualified in their entirety by this cautionary statement.

Contact:	Mikella Newsom, Chief Risk Officer and Secretary
	(866) 771-3347
	investors@city.bank

Source: South Plains Financial, Inc.


South Plains Financial, Inc. Consolidated Financial Highlights – (Unaudited) (Dollars in thousands, except share data)

	As of and for the quarter ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Selected Income Statement Data:
Interest income	$	61,640		$	59,208		$	58,727		$	57,236		$	56,528
Interest expense		24,346			23,320			23,359			22,074			20,839
Net interest income		37,294			35,888			35,368			35,162			35,689
Provision for credit losses		495			1,775			830			600			(700	)
Noninterest income		10,635			12,709			11,409			9,146			12,277
Noninterest expense		33,128			32,572			31,930			30,597			31,489
Income tax expense		3,094			3,116			3,143			2,787			3,683
Net income		11,212			11,134			10,874			10,324			13,494
Per Share Data (Common Stock):
Net earnings, basic	$	0.68		$	0.68		$	0.66		$	0.63		$	0.80
Net earnings, diluted		0.66			0.66			0.64			0.61			0.78
Cash dividends declared and paid		0.14			0.14			0.13			0.13			0.13
Book value		27.04			25.45			24.87			24.80			22.39
Tangible book value (non-GAAP)		25.75			24.15			23.56			23.47			21.07
Weighted average shares outstanding, basic		16,386,079			16,425,360			16,429,919			16,443,908			16,842,594
Weighted average shares outstanding, dilutive		17,056,959			16,932,077			16,938,857			17,008,892			17,354,182
Shares outstanding at end of period		16,386,627			16,424,021			16,431,755			16,417,099			16,600,442
Selected Period End Balance Sheet Data:
Cash and cash equivalents	$	471,167		$	298,006		$	371,939		$	330,158		$	352,424
Investment securities		606,889			591,031			599,869			622,762			584,969
Total loans held for investment		3,037,375			3,094,273			3,011,799			3,014,153			2,993,563
Allowance for credit losses		42,886			43,173			42,174			42,356			42,075
Total assets		4,337,659			4,220,936			4,218,993			4,204,793			4,186,440
Interest-bearing deposits		2,720,880			2,672,948			2,664,397			2,651,952			2,574,361
Noninterest-bearing deposits		998,480			951,565			974,174			974,201			1,046,253
Total deposits		3,719,360			3,624,513			3,638,571			3,626,153			3,620,614
Borrowings		110,307			110,261			110,214			110,168			122,493
Total stockholders’ equity		443,122			417,985			408,712			407,114			371,716
Summary Performance Ratios:
Return on average assets (annualized)		1.05	%		1.07	%		1.04	%		0.99	%		1.27	%
Return on average equity (annualized)		10.36	%		10.83	%		10.72	%		10.52	%		14.01	%
Net interest margin ⁽¹⁾		3.65	%		3.63	%		3.56	%		3.52	%		3.52	%
Yield on loans		6.68	%		6.60	%		6.53	%		6.29	%		6.10	%
Cost of interest-bearing deposits		3.36	%		3.33	%		3.27	%		3.14	%		2.93	%
Efficiency ratio		68.80	%		66.72	%		67.94	%		68.71	%		65.34	%
Summary Credit Quality Data:
Nonperforming loans	$	24,693		$	23,452		$	3,380		$	5,178		$	4,783
Nonperforming loans to total loans held for investment		0.81	%		0.76	%		0.11	%		0.17	%		0.16	%
Other real estate owned		973			755			862			912			242
Nonperforming assets to total assets		0.59	%		0.57	%		0.10	%		0.14	%		0.12	%
Allowance for credit losses to total loans held for investment		1.41	%		1.40	%		1.40	%		1.41	%		1.41	%
Net charge-offs to average loans outstanding (annualized)		0.11	%		0.10	%		0.13	%		0.08	%		0.05	%

	As of and for the quarter ended
	September 30 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Capital Ratios:
Total stockholders’ equity to total assets		10.22	%		9.90	%		9.69	%		9.68	%		8.88	%
Tangible common equity to tangible assets (non-GAAP)		9.77	%		9.44	%		9.22	%		9.21	%		8.40	%
Common equity tier 1 to risk-weighted assets		13.25	%		12.61	%		12.67	%		12.41	%		12.19	%
Tier 1 capital to average assets		11.76	%		11.81	%		11.51	%		11.33	%		11.13	%
Total capital to risk-weighted assets		17.61	%		16.86	%		17.00	%		16.74	%		16.82	%

(1) Net interest margin is calculated as the annual net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.


South Plains Financial, Inc. Average Balances and Yields – (Unaudited) (Dollars in thousands)

	For the Three Months Ended
	September 30, 2024							September 30, 2023

	Average Balance		Interest		Yield/Rate			Average Balance		Interest		Yield/Rate
Assets
Loans	$	3,069,900	$	51,513		6.68	%	$	3,005,699	$	46,250		6.10	%
Debt securities – taxable		524,641		5,300		4.02	%		561,068		5,422		3.83	%
Debt securities – nontaxable		154,806		1,016		2.61	%		159,577		1,054		2.62	%
Other interest-bearing assets		336,887		4,032		4.76	%		325,201		4,031		4.92	%

Total interest-earning assets		4,086,234		61,861		6.02	%		4,051,545		56,757		5.56	%
Noninterest-earning assets		172,922							177,216

Total assets	$	4,259,156						$	4,228,761

Liabilities & stockholders’ equity
NOW, Savings, MMDA’s	$	2,247,299		18,143		3.21	%	$	2,223,014		16,061		2.87	%
Time deposits		431,307		4,510		4.16	%		344,395		2,904		3.35	%
Short-term borrowings		3		–		0.00	%		3		–		0.00	%
Notes payable & other long-term borrowings		–		–		0.00	%		–		–		0.00	%
Subordinated debt		63,891		835		5.20	%		76,077		1,012		5.28	%
Junior subordinated deferrable interest debentures		46,393		858		7.36	%		46,393		862		7.37	%

Total interest-bearing liabilities		2,788,893		24,346		3.47	%		2,689,882		20,839		3.07	%
Demand deposits		976,048							1,071,175
Other liabilities		63,661							85,713
Stockholders’ equity		430,554							381,991

Total liabilities & stockholders’ equity	$	4,259,156						$	4,228,761

Net interest income			$	37,515						$	35,918
Net interest margin ⁽²⁾						3.65	%						3.52	%

(1) Average loan balances include nonaccrual loans and loans held for sale.
(2) Net interest margin is calculated as the annualized net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.


South Plains Financial, Inc. Average Balances and Yields – (Unaudited) (Dollars in thousands)

	For the Nine Months Ended
	September 30, 2024							September 30, 2023

	Average Balance		Interest		Yield/Rate			Average Balance		Interest		Yield/Rate
Assets
Loans	$	3,055,679	$	151,031		6.60	%	$	2,892,887	$	128,724		5.95	%
Debt securities – taxable		537,425		16,096		4.00	%		574,159		16,027		3.73	%
Debt securities – nontaxable		155,489		3,062		2.63	%		194,492		3,870		2.66	%
Other interest-bearing assets		287,192		10,052		4.68	%		212,384		7,010		4.41	%

Total interest-earning assets		4,035,785		180,241		5.97	%		3,873,922		155,631		5.37	%
Noninterest-earning assets		176,230							183,149

Total assets	$	4,212,015						$	4,057,071

Liabilities & stockholders’ equity
NOW, Savings, MMDA’s	$	2,251,569		53,792		3.19	%	$	2,090,250		38,529		2.46	%
Time deposits		399,646		12,153		4.06	%		309,250		6,239		2.70	%
Short-term borrowings		3		–		0.00	%		111		5		6.02	%
Notes payable & other long-term borrowings		–		–		0.00	%		–		–		0.00	%
Subordinated debt		63,845		2,505		5.24	%		76,031		3,037		5.34	%
Junior subordinated deferrable interest debentures		46,393		2,575		7.41	%		46,393		2,402		6.92	%

Total interest-bearing liabilities		2,761,456		71,025		3.44	%		2,522,035		50,212		2.66	%
Demand deposits		964,829							1,085,345
Other liabilities		68,458							74,865
Stockholders’ equity		417,272							374,826

Total liabilities & stockholders’ equity	$	4,212,015						$	4,057,071

Net interest income			$	109,216						$	105,419
Net interest margin ⁽²⁾						3.61	%						3.64	%

(1) Average loan balances include nonaccrual loans and loans held for sale.
(2) Net interest margin is calculated as the annualized net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.


South Plains Financial, Inc. Consolidated Balance Sheets (Unaudited) (Dollars in thousands)

	As of
	September 30, 2024			December 31, 2023

Assets
Cash and due from banks	$	60,863		$	62,821
Interest-bearing deposits in banks		410,304			267,337
Securities available for sale		606,889			622,762
Loans held for sale		11,389			14,499
Loans held for investment		3,037,375			3,014,153
Less: Allowance for credit losses		(42,886	)		(42,356	)
Net loans held for investment		2,994,489			2,971,797
Premises and equipment, net		53,323			55,070
Goodwill		19,315			19,315
Intangible assets		1,882			2,429
Mortgage servicing rights		24,573			26,569
Other assets		154,632			162,194
Total assets	$	4,337,659		$	4,204,793

Liabilities and Stockholders’ Equity
Noninterest-bearing deposits	$	998,480		$	974,201
Interest-bearing deposits		2,720,880			2,651,952
Total deposits		3,719,360			3,626,153
Subordinated debt		63,914			63,775
Junior subordinated deferrable interest debentures		46,393			46,393
Other liabilities		64,870			61,358
Total liabilities		3,894,537			3,797,679
Stockholders’ Equity
Common stock		16,386			16,417
Additional paid-in capital		97,367			97,107
Retained earnings		371,782			345,264
Accumulated other comprehensive income (loss)		(42,413	)		(51,674	)
Total stockholders’ equity		443,122			407,114
Total liabilities and stockholders’ equity	$	4,337,659		$	4,204,793


South Plains Financial, Inc. Consolidated Statements of Income (Unaudited) (Dollars in thousands)

	Three Months Ended					Nine Months Ended
	September 30, 2024		September 30, 2023			September 30, 2024		September 30, 2023

Interest income:
Loans, including fees	$	51,505	$	46,242		$	151,008	$	128,703
Other		10,135		10,286			28,567		26,094
Total interest income		61,640		56,528			179,575		154,797
Interest expense:
Deposits		22,653		18,965			65,945		44,768
Subordinated debt		835		1,012			2,505		3,037
Junior subordinated deferrable interest debentures		858		862			2,575		2,402
Other		–		–			–		5
Total interest expense		24,346		20,839			71,025		50,212
Net interest income		37,294		35,689			108,550		104,585
Provision for credit losses		495		(700	)		3,100		4,010
Net interest income after provision for credit losses		36,799		36,389			105,450		100,575
Noninterest income:
Service charges on deposits		2,023		1,840			5,785		5,286
Income from insurance activities		28		30			92		1,478
Mortgage banking activities		1,890		4,602			9,232		12,146
Bank card services and interchange fees		3,302		3,157			10,415		10,156
Gain on sale of subsidiary		—		290			—		33,778
Other		3,392		2,358			9,229		7,236
Total noninterest income		10,635		12,277			34,753		70,080
Noninterest expense:
Salaries and employee benefits		18,767		18,709			56,954		61,400
Net occupancy expense		4,255		4,111			12,204		12,246
Professional services		1,807		1,560			5,028		4,924
Marketing and development		1,015		853			2,629		2,573
Other		7,284		6,256			20,815		23,206
Total noninterest expense		33,128		31,489			97,630		104,349
Income before income taxes		14,306		17,177			42,573		66,306
Income tax expense		3,094		3,683			9,353		13,885
Net income	$	11,212	$	13,494		$	33,220	$	52,421


South Plains Financial, Inc. Loan Composition (Unaudited) (Dollars in thousands)

	As of
	September 30, 2024		December 31, 2023

Loans:
Commercial Real Estate	$	1,120,448	$	1,081,056
Commercial – Specialized		406,255		372,376
Commercial – General		526,448		517,361
Consumer:
1-4 Family Residential		562,401		534,731
Auto Loans		253,509		305,271
Other Consumer		65,789		74,168
Construction		102,525		129,190
Total loans held for investment	$	3,037,375	$	3,014,153


South Plains Financial, Inc. Deposit Composition (Unaudited) (Dollars in thousands)

	As of
	September 30, 2024		December 31, 2023

Deposits:
Noninterest-bearing deposits	$	998,480	$	974,201
NOW & other transaction accounts		496,176		562,066
MMDA & other savings		1,780,337		1,722,170
Time deposits		444,367		367,716
Total deposits	$	3,719,360	$	3,626,153


South Plains Financial, Inc. Reconciliation of Non-GAAP Financial Measures (Unaudited) (Dollars in thousands)

	For the quarter ended
	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
Pre-tax, pre-provision income
Net income	$	11,212	$	11,134	$	10,874	$	10,324	$	13,494
Income tax expense		3,094		3,116		3,143		2,787		3,683
Provision for credit losses		495		1,775		830		600		(700	)
Pre-tax, pre-provision income	$	14,801	$	16,025	$	14,847	$	13,711	$	16,477

Efficiency Ratio
Noninterest expense	$	33,128		$	32,572		$	31,930		$	30,597		$	31,489

Net interest income		37,294			35,888			35,368			35,162			35,689
Tax equivalent yield adjustment		221			223			223			225			229
Noninterest income		10,635			12,709			11,409			9,146			12,277
Total income		48,150			48,820			47,000			44,533			48,195

Efficiency ratio		68.80	%		66.72	%		67.94	%		68.71	%		65.34	%

Noninterest expense	$	33,128		$	32,572		$	31,930		$	30,597		$	31,489
Less: Subsidiary transaction and related expenses		—			—			—			—			—
Less: net loss on sale of securities		—			—			—			—			—
Adjusted noninterest expense		33,128			32,572			31,930			30,597			31,489

Total income		48,150			48,820			47,000			44,533			48,195
Less: gain on sale of subsidiary		—			—			—			—			(290	)
Adjusted total income		48,150			48,820			47,000			44,533			47,905

Adjusted efficiency ratio		68.80	%		66.72	%		67.94	%		68.71	%		65.73	%

	As of
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Tangible common equity
Total common stockholders’ equity	$	443,122		$	417,985		$	408,712		$	407,114		$	371,716
Less: goodwill and other intangibles		(21,197	)		(21,379	)		(21,562	)		(21,744	)		(21,936	)

Tangible common equity	$	421,925		$	396,606		$	387,150		$	385,370		$	349,780

Tangible assets
Total assets	$	4,337,659		$	4,220,936		$	4,218,993		$	4,204,793		$	4,186,440
Less: goodwill and other intangibles		(21,197	)		(21,379	)		(21,562	)		(21,744	)		(21,936	)

Tangible assets	$	4,316,462		$	4,199,557		$	4,197,431		$	4,183,049		$	4,164,504

Shares outstanding		16,386,627			16,424,021			16,431,755			16,417,099			16,600,442

Total stockholders’ equity to total assets		10.22	%		9.90	%		9.69	%		9.68	%		8.88	%
Tangible common equity to tangible assets		9.77	%		9.44	%		9.22	%		9.21	%		8.40	%
Book value per share	$	27.04		$	25.45		$	24.87		$	24.80		$	22.39
Tangible book value per share	$	25.75		$	24.15		$	23.56		$	23.47		$	21.07

The MIL Network –

January 25, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

Third Quarter 2024 Highlights

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

Income Statement

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

Loans and Funding

Total loans were $8.0 billion at September 30, 2024, down 0.4% from the prior quarter-end. The decrease in total loans was driven by a reduction in commercial loans and income producing commercial real estate loans from the prior quarter-end, partially offset by increased fundings of ongoing construction projects for commercial and residential properties.
At September 30, 2024, income-producing commercial real estate loans secured by office properties other than owner-occupied properties were 10.8% of the total loan portfolio, down from 11.3% at the prior quarter-end.

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

Asset Quality

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

Capital

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

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

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

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

The listen-only webcast can be accessed at:

https://edge.media-server.com/mmc/p/79xpxyi2
For analysts who wish to participate in the conference call, please register at the following URL:
https://register.vevent.com/register/BI6cdce3c45a9f49219ea94a6f7c9fa083

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

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

Eagle Bancorp, Inc.
Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except per share data)

	Three Months Ended
	September 30,			June 30,			September 30,
		2024			2024			2023
Interest Income
Interest and fees on loans	$	139,836		$	137,616		$	132,273
Interest and dividends on investment securities		12,578			12,405			13,732
Interest on balances with other banks and short-term investments		21,296			19,568			15,067
Interest on federal funds sold		103			142			77
Total interest income		173,813			169,731			161,149
Interest Expense
Interest on deposits		81,190			76,846			70,929
Interest on customer repurchase agreements		332			330			311
Interest on other short-term borrowings		20,448			21,202			18,152
Interest on long-term borrowings	$	—			—			1,038
Total interest expense		101,970			98,378			90,430
Net Interest Income		71,843			71,353			70,719
Provision for Credit Losses		10,094			8,959			5,644
Provision (Reversal) for Credit Losses for Unfunded Commitments		(1,593	)		608			(839	)
Net Interest Income After Provision for Credit Losses		63,342			61,786			65,914

Noninterest Income
Service charges on deposits		1,747			1,653			1,631
Gain on sale of loans		20			37			(5	)
Net gain on sale of investment securities		3			3			5
Increase in cash surrender value of bank-owned life insurance		731			709			669
Other income		4,450			2,930			4,047
Total noninterest income		6,951			5,332			6,347
Noninterest Expense
Salaries and employee benefits		21,675			21,770			21,549
Premises and equipment expenses		2,794			2,894			3,095
Marketing and advertising		1,588			1,662			768
Data processing		3,435			3,495			3,194
Legal, accounting and professional fees		3,433			2,705			2,162
FDIC insurance		7,399			5,917			3,342
Goodwill impairment		—			104,168			—
Other expenses		3,290			3,880			3,523
Total noninterest expense		43,614			146,491			37,633
(Loss) Income Before Income Tax Expense		26,679			(79,373	)		34,628
Income Tax Expense		4,864			4,429			7,245
Net (Loss) Income	$	21,815		$	(83,802	)	$	27,383

(Loss) Earnings Per Common Share
Basic	$	0.72		$	(2.78	)	$	0.91
Diluted	$	0.72		$	(2.78	)	$	0.91

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

Loan Mix and Asset Quality (Dollars in thousands)

	September 30,					June 30,					September 30,
		2024					2024					2023
	Amount		%			Amount		%			Amount		%
Loan Balances – Period End:
Commercial	$	1,154,349		14	%	$	1,238,261		15	%	$	1,418,760		18	%
PPP loans		348		—	%		407		—	%		588		—	%
Income producing – commercial real estate		4,155,120		52	%		4,217,525		53	%		4,147,301		52	%
Owner occupied – commercial real estate		1,276,240		16	%		1,263,714		16	%		1,182,959		15	%
Real estate mortgage – residential		57,223		1	%		61,338		1	%		76,511		1	%
Construction – commercial and residential		1,174,591		15	%		1,063,764		13	%		904,282		11	%
Construction – C&I (owner occupied)		100,662		1	%		99,526		1	%		129,616		2	%
Home equity		51,567		1	%		52,773		1	%		53,917		1	%
Other consumer		169		—	%		4,431		—	%		2,457		—	%
Total loans	$	7,970,269		100	%	$	8,001,739		100	%	$	7,916,391		100	%

	Three Months Ended or As Of
	September 30,		June 30,		September 30,
		2024		2024		2023
Asset Quality:
Net charge-offs	$	5,303	$	2,285	$	340
Nonperforming loans	$	134,371	$	98,169	$	70,148
Other real estate owned	$	2,743	$	773	$	1,757
Nonperforming assets	$	137,114	$	98,942	$	71,905
Special mention	$	364,983	$	307,906	$	158,182
Substandard	$	391,301	$	408,311	$	219,001

Eagle Bancorp, Inc.
Consolidated Average Balances, Interest Yields And Rates vs. Prior Quarter (Unaudited)
(Dollars in thousands)

	Three Months Ended
	September 30, 2024								June 30, 2024
	Average Balance			Interest		Average Yield/Rate			Average Balance			Interest		Average Yield/Rate
ASSETS
Interest earning assets:
Interest-bearing deposits with other banks and other short-term investments	$	1,577,464		$	21,296		5.37	%	$	1,455,007		$	19,568		5.41	%
Loans held for sale ⁽¹⁾		4,936			1		0.08	%		8,045			100		5.00	%
Loans ^{(1) (2)}	$	8,026,524			139,835		6.93	%		8,003,206			137,516		6.91	%
Investment securities available-for-sale ⁽²⁾		1,479,598			7,336		1.97	%		1,478,856			7,048		1.92	%
Investment securities held-to-maturity ⁽²⁾		974,366			5,242		2.14	%		995,274			5,357		2.16	%
Federal funds sold		10,003			103		4.10	%		13,058			142		4.37	%
Total interest earning assets		12,072,891		$	173,813		5.73	%		11,953,446		$	169,731		5.71	%
Total noninterest earning assets		397,006								510,725
Less: allowance for credit losses		(108,998	)							(102,671	)
Total noninterest earning assets		288,008								408,054
TOTAL ASSETS	$	12,360,899							$	12,361,500

LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest bearing liabilities:
Interest-bearing transaction	$	1,656,676		$	14,596		3.51	%	$	1,636,795		$	16,100		3.96	%
Savings and money market		3,254,128			34,896		4.27	%		3,321,001			33,451		4.05	%
Time deposits		2,517,944			31,698		5.01	%		2,215,693			27,295		4.95	%
Total interest bearing deposits		7,428,748			81,190		4.35	%		7,173,489			76,846		4.31	%
Customer repurchase agreements		38,045			332		3.47	%		38,599			330		3.44	%
Other short-term borrowings		1,615,867			20,448		5.03	%		1,682,684			21,202		5.07	%
Long-term borrowings		824			—		—	%		—			—		—	%
Total interest bearing liabilities		9,083,484		$	101,970		4.47	%		8,894,772		$	98,378		4.45	%
Noninterest bearing liabilities:
Noninterest bearing demand		1,915,666								2,051,777
Other liabilities		160,272								151,324
Total noninterest bearing liabilities		2,075,938								2,203,101
Shareholders’ equity		1,201,477								1,263,627
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	12,360,899							$	12,361,500
Net interest income				$	71,843							$	71,353
Net interest spread							1.26	%							1.26	%
Net interest margin							2.37	%							2.40	%
Cost of funds							3.69	%							3.61	%

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

Eagle Bancorp, Inc.
Consolidated Average Balances, Interest Yields And Rates vs. Year Ago Quarter (Unaudited)
(Dollars in thousands)

	Three Months Ended September 30,
		2024								2023
	Average Balance			Interest		Average Yield/Rate			Average Balance			Interest		Average Yield/Rate
ASSETS
Interest earning assets:
Interest bearing deposits with other banks and other short-term investments	$	1,577,464		$	21,296		5.37	%	$	1,127,451		$	15,067		5.30	%
Loans held for sale ⁽¹⁾		4,936			1		0.08	%		—			—		—	%
Loans ^{(1) (2)}		8,026,524			139,835		6.93	%		7,795,144			132,273		6.73	%
Investment securities available-for-sale ⁽²⁾		1,479,598			7,336		1.97	%		1,554,348			8,126		2.07	%
Investment securities held-to-maturity ⁽²⁾		974,366			5,242		2.14	%		1,047,515			5,606		2.12	%
Federal funds sold		10,003			103		4.10	%		7,728			77		3.95	%
Total interest earning assets		12,072,891		$	173,813		5.73	%		11,532,186		$	161,149		5.54	%
Total noninterest earning assets		397,006								489,683
Less: allowance for credit losses		(108,998	)							(78,964	)
Total noninterest earning assets		288,008								410,719
TOTAL ASSETS	$	12,360,899							$	11,942,905

LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest bearing liabilities:
Interest bearing transaction	$	1,656,676		$	14,596		3.51	%	$	1,421,522		$	12,785		3.57	%
Savings and money market		3,254,128			34,896		4.27	%		3,113,755			32,855		4.19	%
Time deposits		2,517,944			31,698		5.01	%		2,162,582			25,289		4.64	%
Total interest bearing deposits		7,428,748			81,190		4.35	%		6,697,859			70,929		4.20	%
Customer repurchase agreements		38,045			332		3.47	%		36,082			311		3.42	%
Other short-term borrowings		1,615,867			20,448		5.03	%		1,610,097			19,190		4.73	%
Long-term borrowings		824			—		—	%		—			—		—	%
Total interest bearing liabilities		9,083,484		$	101,970		4.47	%		8,344,038		$	90,430		4.30	%
Noninterest bearing liabilities:
Noninterest bearing demand		1,915,666								2,248,782
Other liabilities		160,272								114,923
Total noninterest bearing liabilities		2,075,938								2,363,705
Shareholders’ equity		1,201,477								1,235,162
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	12,360,899							$	11,942,905
Net interest income				$	71,843							$	70,719
Net interest spread							1.26	%							1.24	%
Net interest margin							2.37	%							2.43	%
Cost of funds							3.69	%							3.39	%

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

Eagle Bancorp, Inc.
Statements of Operations and Highlights Quarterly Trends (Unaudited)
(Dollars in thousands, except per share data)

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

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

GAAP Reconciliation to Non-GAAP Financial Measures (unaudited)
(dollars in thousands, except per share data)

	September 30,			June 30,			September 30,
		2024			2024			2023
Tangible common equity
Common shareholders’ equity	$	1,225,424		$	1,169,459		$	1,215,884
Less: Intangible assets		(21	)		(129	)		(105,239	)
Tangible common equity	$	1,225,403		$	1,169,330		$	1,110,645

Tangible common equity ratio
Total assets	$	11,285,052		$	11,302,023		$	11,164,214
Less: Intangible assets		(21	)		(129	)		(105,239	)
Tangible assets	$	11,285,031		$	11,301,894		$	11,058,975

Tangible common equity ratio		10.86	%		10.35	%		10.04	%

Per share calculations
Book value per common share	$	40.61		$	38.75		$	40.64
Less: Intangible book value per common share		—			(0.01	)		(3.52	)
Tangible book value per common share	$	40.61		$	38.74		$	37.12

Shares outstanding at period end		30,173,200			30,180,482			29,917,982

	Three Months Ended
	September 30,			June 30,			September 30,
		2024			2024			2023
Average tangible common equity
Average common shareholders’ equity	$	1,201,477		$	1,263,627		$	1,235,162
Less: Average intangible assets		(24	)		(99,827	)		(104,639	)
Average tangible common equity	$	1,201,453		$	1,163,800		$	1,130,523

Return on average tangible common equity
Net (loss) income	$	21,815		$	(83,802	)	$	27,383
Return on average tangible common equity		7.22	%	(28.96)%				9.61	%

Net (loss) income	$	21,815		$	(83,802	)	$	27,383
Add back of goodwill impairment	$	—			104,168			—
Operating net (loss) income (Non-GAAP)		21,815			20,366			27,383
Operating Return on average tangible common equity (Non-GAAP)		7.22	%		7.04	%		9.61	%

Efficiency ratio
Net interest income	$	71,843		$	71,353		$	70,719
Noninterest income		6,951			5,332			6,347
Operating revenue	$	78,794		$	76,685		$	77,066
Noninterest expense	$	43,614		$	146,491		$	37,633
Add back of goodwill impairment		—			(104,168	)		—
Operating Noninterest expense (Non-GAAP)		43,614			42,323			37,633

Efficiency ratio		55.35	%		191.03	%		48.83	%
Operating Efficiency ratio (Non-GAAP)		55.35	%		55.19	%		48.83	%

Pre-provision net revenue
Net interest income	$	71,843		$	71,353		$	70,719
Noninterest income		6,951			5,332			6,347
Less: Noninterest expense		(43,614	)		(146,491	)		(37,633	)
Pre-provision net revenue	$	35,180		$	(69,806	)	$	39,433

Pre-provision net revenue	$	35,180		$	(69,806	)	$	39,433
Add back of goodwill impairment	$	—		$	104,168		$	—
Operating Pre-provision net revenue (Non-GAAP)	$	35,180		$	34,362		$	39,433

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

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

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

	Three Months Ended
	September 30,		June 30,			September 30,
		2024		2024			2023
Net (loss) income	$	21,815	$	(83,802	)	$	27,383
Add back of goodwill impairment		—		104,168			—
Operating Net (loss) income (Non-GAAP)	$	21,815	$	20,366		$	27,383

(Loss) earnings per share (diluted)⁴	$	0.72	$	(2.78	)	$	0.91
Add back of goodwill impairment per share (diluted)		—		3.45			—
Operating earnings (loss) per share (diluted) (Non-GAAP)	$	0.72	$	0.67		$	0.91

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

_______________¹ A reconciliation of non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP Reconciliation to Non-GAAP Financial Measure that accompany this document.
²Calculated as the ACL attributable to loans collateralized by performing office properties as a percentage of total loans.
³ A reconciliation of non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP Reconciliation to Non-GAAP Financial Measure that accompany this document.
⁴ For periods ended with a net loss, anti-dilutive financial instruments have been excluded from the calculation of GAAP diluted EPS. Operating diluted EPS calculations include the impact of outstanding equity-based awards for all periods.

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

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

The MIL Network –

January 25, 2025

MIL-OSI USA: ICYMI—Hagerty Joins Mornings With Maria on Fox Business to Discuss BRICS Summit, Biden-Harris Emboldening China, Stablecoin Bill

US Senate News:

Source: United States Senator for Tennessee Bill Hagerty
NEW YORK CITY—United States Senator Bill Hagerty (R-TN), a member of the Senate Banking and Foreign Relations Committees and former U.S. Ambassador to Japan, yesterday joined Mornings With Maria on Fox Business to discuss yesterday’s BRICS Summit, the Biden-Harris Administration’s weakness towards China, and his stablecoin legislation to establish a clear regulatory framework for the regulation and supervision of stablecoin issuers.

*Click the photo above or here to watch*
Partial Transcript
Hagerty on the BRICS Summit: “Were it not for the tremendous leadership void that exists today because of America’s exit from the international stage, we wouldn’t be seeing this happen. And under President [Donald] Trump, this would have never happened. They’ve expanded BRICS now to 32 nations, as you’ve said. This is all about Vladimir Putin trying to find a way to get around the type of sanctions regime that we will come back and put in place once President Trump is back in office. Interestingly, I noticed that the UN Secretary General Gutierrez is going to be there in Russia for this event. You know, were this event held anywhere else, Gutierrez, I think, would be obligated to enforce the arrest warrant that his own international criminal court has put out for Putin. It’s just shocking to me that these nations would step up and participate in this, and that Gutierrez himself would be involved in a situation where Iran is actually going to be brought into this group. It’s amazing. The only common bond, it seems, is that America’s not part of it, and they want to demonstrate their pushback. And the fact that the UN is engaged in this as well [is] really quite shocking and disturbing to me as it should be to all of us.”
Hagerty on China’s economic leverage against BRICS nations: “You mentioned China; that is another common bond here: China’s economic ties and leverage over these countries with the Belt and Road Initiative and the fact that they’re buying oil from Iran and from Russia. That is another common bond that these guys share. But if you think about how the Harris Administration would respond, look no further than what they did with the spy balloon that they allowed to fly over the entirety of the United States of America. And then send four cabinet members over to kowtow, just to beg them to come to San Francisco for a meeting, I’m very concerned. Americans should be deeply concerned what would happen and should Kamala Harris be put in a position to stand up to Xi. I’ve been with President Trump when he’s met with Xi. Xi respects Trump. President Trump will bring respect and order back to these types of relationships. I cannot imagine how Kamala Harris would stand up to that type of pressure.”
Hagerty on Obama’s former AG suing the Pentagon on behalf of a Chinse company: “This is exactly why President Trump has said we must drain the swamp. This is just another example of the revolving door. And the fact is that the first time this DJI was cited was back in 2017 when President Trump was in office—the Army took them down then—there’s no way that Loretta Lynch would be bringing the suit under the Trump Administration. But again, they’re trying to squeeze everything in that they can in the last days, the waning days of this Administration. You’ve got to ask yourself: who are they working for? Because every one of the foreign policies that Biden and Harris have pursued basically make China the net winner. We’ve got to stop this […] Ever since 2018, that’s been the case, because that’s what the Chinese National Security law says. Chinese companies that collect data anywhere in the world need to and have to expose that data to the Chinese intelligence services when asked. So, of course, that’s what it means. That’s the vulnerability that was seen back in the Trump Administration; that seems to be something that Loretta Lynch wants to undo and make these Chinese companies have access to the most sensitive data that our U.S. military would pick up. It’s unconscionable that she’d do this […] Barack Obama’s top law enforcement officer, the former Attorney General, is the one defending this Chinese company trying to get them off of this list, when she knows the exposure [and] the national security risk that would pose to America. It is just shocking.”
Hagerty on his stablecoin legislation to establish clear regulatory framework: “As you mentioned, this builds upon some excellent work that was done in the House of Representatives. I’ve come in and made some adjustments that I think it’ll make it easier to get through both bodies [in Congress]. The impact of this, though, actually gets back to the beginning of the story that you and I talked about. You think about the efforts that Vladimir Putin and these BRICS nations undertaking to get around the United States as the reserve currency of the world. This will actually strengthen our posture as a reserve currency. It will increase demand, not only for U.S. treasuries, but also the stablecoins will increase demand for U.S. dollars on a global basis. We need the proper regulatory framework in place here in America—we need legal certainty—the Biden and Harris Administration have done everything they can to destroy that sort of legal certainty. This will begin to chip away at the Democrats’ war on cryptocurrency and put us back in the driver’s seat when it comes to maintaining the reserve currency status that the dollar has enjoyed and should continue to enjoy […] The assumption is very clear that this legislation will move through and be ripe for a new Administration.”

MIL OSI USA News –

January 25, 2025

MIL-OSI: Horizon Bancorp, Inc. Reports Third Quarter 2024 Results, Including EPS of $0.41 and Continued Profitability Improvement, as well as Accretive Balance Sheet Initiatives

Source: GlobeNewswire (MIL-OSI)

MICHIGAN CITY, Ind., Oct. 23, 2024 (GLOBE NEWSWIRE) — (NASDAQ GS: HBNC) – Horizon Bancorp, Inc. (“Horizon” or the “Company”), the parent company of Horizon Bank (the “Bank”), announced its unaudited financial results for the three and nine months ended September 30, 2024.

Net income for the three months ended September 30, 2024 was $18.2 million, or $0.41 per diluted share, compared to net income of $14.1 million, or $0.32, for the second quarter of 2024 and compared to net income of $16.2 million, or $0.37 per diluted share, for the third quarter of 2023.

Net income for the nine months ended September 30, 2024 was $46.3 million, or $1.05 per diluted share, compared to net income of $53.2 million, or $1.21, for the nine months ended September 30, 2023.

Third Quarter 2024 Highlights

Net interest income increased for the fourth consecutive quarter to $46.9 million, compared to $45.3 million in the linked quarter of 2024. Net interest margin, on a fully taxable equivalent (“FTE”) basis¹, expanded for the fourth consecutive quarter to 2.66%, compared to 2.64% in the linked quarter of 2024.

Total loans held for investment (“HFI”) were $4.8 billion at September 30, 2024, relatively unchanged from June 30, 2024 balances. However, consistent with the Company’s stated growth strategy, the commercial portfolio showed continued organic growth momentum during the quarter, which was offset with planned run-off of lower-yielding indirect auto loans in the consumer loan portfolio.

Positive deposit growth of 1.7% during the quarter, to $5.7 billion at period end. The quarter was highlighted by stable non-interest bearing deposit balances and growth in core relationship consumer and commercial portfolios.

Credit quality remains strong, with annualized net charge offs of 0.03% of average loans during the third quarter. Non-performing assets to total assets of 0.32% remains well within expected ranges, with no material change in the loss outlook. Provision for loan losses of $1.0 million reflects continued positive credit performance.

“Horizon continues to execute well on its key strategic initiatives of consistently improving our operating performance through a more productive balance sheet, growth in non-interest income and continued disciplined in our operating model. As a result, we are optimistic on the positive momentum of the franchise through year-end 2024 and into 2025. During the quarter, our commercial team was able to deliver another quarter of quality loan growth, even coming off a strong end to the second quarter. The strength of Horizon’s core deposit franchise showed solid performance, and our credit metrics remain well managed. These efforts led to a third consecutive quarter of sequential growth in pre-tax pre-provision income,” President and Chief Executive Officer Thomas M. Prame said. “Importantly, we continue our efforts to optimize our business model, and are pleased to announce the repositioning of a portion of our securities portfolio and the intended sale of our mortgage warehouse business during the fourth quarter. These shareholder accretive actions are expected to yield sustainable improvement in the profitability of our business that will be evident in the fourth quarter, and positively impact Horizon’s financial performance in 2025.”

^{_________________________
1} Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

Accretive Fourth Quarter 2024 Strategic Actions

Horizon announced strategic actions taking place in the fourth quarter of 2024, which are designed to simplify its business, strengthen the balance sheet and improve long-term structural profitability. In October, the Company completed the repositioning of about $325 million of available-for-sale securities. Additionally, the Company has signed a letter of intent to sell its mortgage warehouse business, which is expected to generate a gain-on-sale. Details on these actions, the use of proceeds, and the expected financial impact are available in the Company’s third quarter 2024 investor presentation published at investor.horizonbank.com.


Financial Highlights
(Dollars in Thousands Except Share and Per Share Data and Ratios, Unaudited)
	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2024			2024			2024			2023			2023
Income statement:
Net interest income	$	46,910		$	45,279		$	43,288		$	42,257		$	42,090
Credit loss expense		1,044			2,369			805			1,274			263
Non-interest income		11,511			10,485			9,929			(20,449	)		11,830
Non-interest expense		39,272			37,522			37,107			39,330			36,168
Income tax expense		(75	)		1,733			1,314			6,419			1,284
Net income	$	18,180		$	14,140		$	13,991		$	(25,215	)	$	16,205

Per share data:
Basic earnings per share	$	0.42		$	0.32		$	0.32		$	(0.58	)	$	0.37
Diluted earnings per share		0.41			0.32			0.32			(0.58	)		0.37
Cash dividends declared per common share		0.16			0.16			0.16			0.16			0.16
Book value per common share		17.27			16.62			16.49			16.47			15.89
Market value – high		16.57			12.74			14.44			14.65			12.68
Market value – low		11.89			11.29			11.75			9.33			9.90
Weighted average shares outstanding – Basic		43,712,059			43,712,059			43,663,610			43,649,585			43,646,609
Weighted average shares outstanding – Diluted		44,112,321			43,987,187			43,874,036			43,649,585			43,796,069
Common shares outstanding (end of period)		43,712,059			43,712,059			43,726,380			43,652,063			43,648,501

Key ratios:
Return on average assets		0.92	%		0.73	%		0.72	%	(1.27) %				0.81	%
Return on average stockholders’ equity		9.80			7.83			7.76			(14.23	)		8.99
Total equity to total assets		9.52			9.18			9.18			9.06			8.71
Total loans to deposit ratio		83.92			85.70			82.78			78.01			76.52
Allowance for credit losses to HFI loans		1.10			1.08			1.09			1.13			1.14
Annualized net charge-offs of average total loans⁽¹⁾		0.03			0.05			0.04			0.07			0.07
Efficiency ratio		67.22			67.29			69.73			180.35			67.08

Key metrics (Non-GAAP)⁽²⁾:
Net FTE interest margin		2.66	%		2.64	%		2.50	%		2.43	%		2.41	%
Return on average tangible common equity		12.65			10.18			10.11			(18.76	)		11.79
Tangible common equity to tangible assets		7.58			7.22			7.20			7.08			6.72
Tangible book value per common share	$	13.46		$	12.80		$	12.65		$	12.60		$	12.00


⁽¹⁾ Average total loans includes loans held for investment and held for sale.
⁽²⁾ Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.

Income Statement Highlights

Net Interest Income

Net interest income was $46.9 million in the third quarter of 2024, compared to $45.3 million in the second quarter of 2024, driven by net growth in average interest earning assets of $117.5 million and continued net FTE interest margin expansion during the quarter. Horizon’s net FTE interest margin¹ was 2.66% for the third quarter of 2024, compared to 2.64% for the second quarter of 2024, attributable to the favorable mix shift in average interest earning assets toward higher-yielding loans and in the average funding mix toward lower-cost deposit balances. Interest accretion from the fair value of acquired loans did not contribute significantly to the third quarter net interest income, or net FTE interest margin.

Provision for Credit Losses

During the third quarter of 2024, the Company recorded a provision for credit losses of $1.0 million. This compares to a provision for credit losses of $2.4 million during the second quarter of 2024, and $0.3 million during the third quarter of 2023. The decrease in the provision for credit losses during the third quarter of 2024 when compared with the second quarter of 2024 was primarily attributable to less total loan growth in the current quarter relative to the prior quarter.

For the third quarter of 2024, the allowance for credit losses included net charge-offs of $0.4 million, or an annualized 0.03% of average loans outstanding, compared to net charge-offs of $0.6 million, or an annualized 0.05% of average loans outstanding for the second quarter of 2024, and net charge-offs of $0.7 million, or an annualized 0.07% of average loans outstanding, in the third quarter of 2023.

The Company’s allowance for credit losses as a percentage of period-end loans HFI was 1.10% at September 30, 2024, compared to 1.08% at June 30, 2024 and 1.14% at September 30, 2023.

Non-Interest Income

For the Quarter Ended	September 30,		June 30,		March 31,		December 31,			September 30,
(Dollars in Thousands)	2024		2024		2024		2023			2023
Non-interest Income
Service charges on deposit accounts	$	3,320	$	3,130	$	3,214	$	3,092		$	3,086
Wire transfer fees		123		113		101		103			120
Interchange fees		3,511		3,826		3,109		3,224			3,186
Fiduciary activities		1,394		1,372		1,315		1,352			1,206
Gains (losses) on sale of investment securities		—		—		—		(31,572	)		—
Gain on sale of mortgage loans		1,622		896		626		951			1,582
Mortgage servicing income net of impairment		412		450		439		724			631
Increase in cash value of bank owned life insurance		349		318		298		658			1,055
Other income		780		380		827		1,019			964
Total non-interest income	$	11,511	$	10,485	$	9,929	$	(20,449	)	$	11,830

Total non-interest income was $11.5 million in the third quarter of 2024, compared to $10.5 million in the second quarter of 2024, due primarily to higher realized gains on sale of mortgage loans and increased other income.

^{_________________________
1} Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

Non-Interest Expense

For the Quarter Ended	September 30,		June 30,		March 31,		December 31,		September 30,
(Dollars in Thousands)	2024		2024		2024		2023		2023
Non-interest Expense
Salaries and employee benefits	$	21,829	$	20,583	$	20,268	$	21,877	$	20,058
Net occupancy expenses		3,207		3,192		3,546		3,260		3,283
Data processing		2,977		2,579		2,464		2,942		2,999
Professional fees		676		714		607		772		707
Outside services and consultants		3,677		3,058		3,359		2,394		2,316
Loan expense		1,034		1,038		719		1,345		1,120
FDIC insurance expense		1,204		1,315		1,320		1,200		1,300
Core deposit intangible amortization		844		844		872		903		903
Other losses		297		515		16		508		188
Other expense		3,527		3,684		3,936		4,129		3,294
Total non-interest expense	$	39,272	$	37,522	$	37,107	$	39,330	$	36,168

Total non-interest expense was $39.3 million in the third quarter of 2024, compared with $37.5 million in the second quarter of 2024. The increase in non-interest expense during the third quarter of 2024 was primarily driven by a $1.2 million increase in salaries and employee benefits expense, which is partially attributable to a legacy benefits program expense, and a $0.6 million increase in outside services and consultants expense related to strategic initiatives.

Income Taxes

Horizon’s effective tax rate was -0.4% for the third quarter of 2024, as compared to 10.9% for the second quarter of 2024. The decrease in the effective tax rate during the third quarter was primarily due to an increase in net realizable tax credits for the current year, which reduced the Company’s estimated annual effective tax rate.

Balance Sheet

Total assets increased by $14.9 million, or 0.2%, to $7.93 billion as of September 30, 2024, from $7.91 billion as of June 30, 2024. The increase in total assets is primarily due to increases in federal funds sold of $79.5 million, or 230.6%, to $113.9 million as of September 30, 2024, compared to $34.5 million as of June 30, 2024. The increase in federal funds sold during the period was partially offset by a decrease in other assets of $46.6 million, or 28.1%, to $119.0 million as of September 30, 2024, from $165.7 million as of June 30, 2024.

Total investment securities remained unchanged, at $2.4 billion as of September 30, 2024, compared to June 30, 2024, as the positive market impact to available for sale securities was offset by normal pay-downs and maturities. There were no purchases of investment securities during the third quarter of 2024.

Total loans HFI and loans held for sale were relatively consistent at $4.8 billion as of September 30, 2024 compared to $4.8 billion as of June 30, 2024, as growth in commercial loans of $9.5 million were offset by a decline in consumer loans of $43.3 million.

Total deposit balances increased by $96.9 million, or 1.7%, to $5.7 billion as of September 30, 2024 when compared to balances as of June 30, 2024. Non-interest bearing deposit balances were essentially unchanged during the quarter.

Total borrowings decreased by $86.4 million, or 7.0%, to $1.1 billion as of September 30, 2024, primarily related to the repayment of a portion of Federal Home Loan Bank advances, when compared to balances as of June 30, 2024.

Capital

The following table presents the consolidated regulatory capital ratios of the Company for the previous three quarters:

For the Quarter Ended	September 30,			June 30,			March 31,			December 31,
	2024*			2024			2024**			2023**
Consolidated Capital Ratios
Total capital (to risk-weighted assets)		13.52	%		13.41	%		13.75	%		14.04	%
Tier 1 capital (to risk-weighted assets)		11.70	%		11.59	%		11.89	%		12.13	%
Common equity tier 1 capital (to risk-weighted assets)		10.74	%		10.63	%		10.89	%		11.11	%
Tier 1 capital (to average assets)		9.01	%		9.02	%		8.91	%		8.61	%
*Preliminary estimate – may be subject to change
**Prior periods were previously revised (see disclosure in Form 10-Q for the quarterly period ending June 30, 2024)

As of September 30, 2024, the ratio of total stockholders’ equity to total assets is 9.52%. Book value per common share was $17.27, increasing $0.65 during the third quarter of 2024.

Tangible common equity¹ totaled $588.5 million at September 30, 2024, and the ratio of tangible common equity to tangible assets¹ was 7.58% at September 30, 2024, up from 7.22% at June 30, 2024. Tangible book value, which excludes intangible assets from total equity, per common share¹ was $13.46, increasing $0.66 during the third quarter of 2024.

Credit Quality

As of September 30, 2024, total non-accrual loans increased by $5.3 million, or 29.0%, from June 30, 2024, to 0.49% of total loans HFI. Total non-performing assets increased $5.1 million, or 25.0%, to $25.6 million, compared to $20.5 million as of June 30, 2024. The ratio of non-performing assets to total assets increased to 0.32% compared to 0.26% as of June 30, 2024.

As of September 30, 2024, net charge-offs decreased by $0.2 million to $0.4 million, compared to $0.6 million as of June 30, 2024 and remain just 0.03% annualized of average loans.

^{_________________________
1} Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

Earnings Conference Call

As previously announced, Horizon will host a conference call to review its third quarter financial results and operating performance.

Participants may access the live conference call on October 24, 2024 at 7:30 a.m. CT (8:30 a.m. ET) by dialing 833-974-2379 from the United States, 866-450-4696 from Canada or 1-412-317-5772 from international locations and requesting the “Horizon Bancorp Call.” Participants are asked to dial in approximately 10 minutes prior to the call.

A telephone replay of the call will be available approximately one hour after the end of the conference through November 1, 2024. The replay may be accessed by dialing 877-344-7529 from the United States, 855-669-9658 from Canada or 1–412–317-0088 from other international locations, and entering the access code 9847279.

About Horizon Bancorp, Inc.

Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $7.9 billion-asset commercial bank holding company for Horizon Bank, which serves customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Horizon’s retail offerings include prime residential and other secured consumer lending to in-market customers, as well as a range of personal banking and wealth management solutions. Horizon also provides a comprehensive array of in-market business banking and treasury management services, as well as equipment financing solutions for customers regionally and nationally, with commercial lending representing over half of total loans. More information on Horizon, headquartered in Northwest Indiana’s Michigan City, is available at horizonbank.com and investor.horizonbank.com.

Use of Non-GAAP Financial Measures

Certain information set forth in this press release refers to financial measures determined by methods other than in accordance with GAAP. Specifically, we have included non-GAAP financial measures relating to net income, diluted earnings per share, pre-tax, pre-provision net income, net interest margin, tangible stockholders’ equity and tangible book value per share, efficiency ratio, the return on average assets, the return on average common equity, and return on average tangible equity. In each case, we have identified special circumstances that we consider to be non-recurring and have excluded them. We believe that this shows the impact of such events as acquisition-related purchase accounting adjustments and swap termination fees, among others we have identified in our reconciliations. Horizon believes these non-GAAP financial measures are helpful to investors and provide a greater understanding of our business and financial results without giving effect to the purchase accounting impacts and one-time costs of acquisitions and non–recurring items. These measures are not necessarily comparable to similar measures that may be presented by other companies and should not be considered in isolation or as a substitute for the related GAAP measure. See the tables and other information below and contained elsewhere in this press release for reconciliations of the non-GAAP information identified herein and its most comparable GAAP measures.

Forward Looking Statements

This press release may contain forward–looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp, Inc. and its affiliates (collectively, “Horizon”). For these statements, Horizon claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Horizon, including the information in the filings we make with the Securities and Exchange Commission (the “SEC”). Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance.

Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: current financial conditions within the banking industry; changes in the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing liabilities; increased interest rate sensitivity; the aggregate effects of elevated inflation levels in recent years; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon’s assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market values, collateral securing loans and other assets; changes in sources of liquidity; macroeconomic conditions and their impact on Horizon and its customers; legislative and regulatory actions and reforms; changes in accounting policies or procedures as may be adopted and required by regulatory agencies; litigation, regulatory enforcement, and legal compliance risk and costs; rapid technological developments and changes; cyber terrorism and data security breaches; the rising costs of cybersecurity; the ability of the U.S. federal government to manage federal debt limits; climate change and social justice initiatives; the inability to realize cost savings or revenues or to effectively implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; acts of terrorism, war and global conflicts, such as the Russia and Ukraine conflict and the Israel and Hamas conflict; and supply chain disruptions and delays. These and additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in Horizon’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s website (www.sec.gov). Undue reliance should not be placed on the forward–looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward–looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.


	Condensed Consolidated Statements of Income
	(Dollars in Thousands Except Per Share Data, Unaudited)
	Three Months Ended												Nine Months Ended
	September 30,			June 30,		March 31,		December 31,			September 30,		September 30,		September 30,
	2024			2024		2024		2023			2023		2024		2023
Interest Income
Loans receivable	$	75,488		$	71,880	$	66,954	$	65,583		$	63,003	$	214,322	$	178,961
Investment securities – taxable		8,133			7,986		7,362		8,157			8,788		23,481		26,253
Investment securities – tax-exempt		6,310			6,377		6,451		6,767			7,002		19,138		21,617
Other		957			738		4,497		3,007			1,332		6,192		1,960
Total interest income		90,888			86,981		85,264		83,514			80,125		263,133		228,791
Interest Expense
Deposits		30,787			28,447		27,990		27,376			24,704		87,224		58,481
Borrowed funds		11,131			11,213		11,930		11,765			11,224		34,274		30,713
Subordinated notes		830			829		831		870			880		2,490		2,641
Junior subordinated debentures issued to capital trusts		1,230			1,213		1,225		1,246			1,227		3,668		3,469
Total interest expense		43,978			41,702		41,976		41,257			38,035		127,656		95,304
Net Interest Income		46,910			45,279		43,288		42,257			42,090		135,477		133,487
Provision for loan losses		1,044			2,369		805		1,274			263		4,218		1,185
Net Interest Income after Provision for Loan Losses		45,866			42,910		42,483		40,983			41,827		131,259		132,302
Non-interest Income
Service charges on deposit accounts		3,320			3,130		3,214		3,092			3,086		9,664		9,135
Wire transfer fees		123			113		101		103			120		337		345
Interchange fees		3,511			3,826		3,109		3,224			3,186		10,446		9,637
Fiduciary activities		1,394			1,372		1,315		1,352			1,206		4,081		3,728
Gains (losses) on sale of investment securities		—			—		—		(31,572	)		—		—		(480	)
Gain on sale of mortgage loans		1,622			896		626		951			1,582		3,144		3,372
Mortgage servicing income net of impairment		412			450		439		724			631		1,301		1,984
Increase in cash value of bank owned life insurance		349			318		298		658			1,055		965		3,051
Other income		780			380		827		1,019			964		1,987		1,675
Total non-interest income		11,511			10,485		9,929		(20,449	)		11,830		31,925		32,447
Non-interest Expense
Salaries and employee benefits		21,829			20,583		20,268		21,877			20,058		62,680		58,932
Net occupancy expenses		3,207			3,192		3,546		3,260			3,283		9,945		10,095
Data processing		2,977			2,579		2,464		2,942			2,999		8,020		8,684
Professional fees		676			714		607		772			707		1,997		1,873
Outside services and consultants		3,677			3,058		3,359		2,394			2,316		10,094		7,548
Loan expense		1,034			1,038		719		1,345			1,120		2,791		3,635
FDIC insurance expense		1,204			1,315		1,320		1,200			1,300		3,839		2,680
Core deposit intangible amortization		844			844		872		903			903		2,560		2,709
Other losses		297			515		16		508			188		828		543
Other expense		3,527			3,684		3,936		4,129			3,294		11,147		10,255
Total non-interest expense		39,272			37,522		37,107		39,330			36,168		113,901		106,954
Income /(Loss) Before Income Taxes		18,105			15,873		15,305		(18,796	)		17,489		49,283		57,795
Income tax expense		(75	)		1,733		1,314		6,419			1,284		2,972		4,599
Net Income /(Loss)	$	18,180		$	14,140	$	13,991	$	(25,215	)	$	16,205	$	46,311	$	53,196
Basic Earnings /(Loss) Per Share	$	0.42		$	0.32	$	0.32	$	(0.58	)	$	0.37	$	1.06	$	1.22
Diluted Earnings/(Loss) Per Share		0.41			0.32		0.32		(0.58	)		0.37		1.05		1.21

	Condensed Consolidated Balance Sheets
	(Dollars in Thousands)
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Assets
Interest earning assets
Federal funds sold	$	113,912		$	34,453		$	161,704		$	401,672		$	71,576
Interest earning deposits		12,107			4,957			9,178			12,071			4,718
Interest earning time deposits		735			1,715			1,715			2,205			2,207
Federal Home Loan Bank stock		53,826			53,826			53,826			34,509			34,509
Investment securities, available for sale		541,170			527,054			535,319			547,251			865,168
Investment securities, held to maturity		1,888,379			1,904,281			1,925,725			1,945,638			1,966,483
Loans held for sale		2,069			2,440			922			1,418			2,828
Gross loans held for investment (HFI)		4,803,996			4,822,840			4,618,175			4,417,630			4,359,002
Total Interest earning assets		7,416,194			7,351,566			7,306,564			7,362,394			7,306,491
Non-interest earning assets
Allowance for credit losses		(52,881	)		(52,215	)		(50,387	)		(50,029	)		(49,699	)
Cash		108,815			106,691			100,206			112,772			98,843
Cash value of life insurance		37,115			36,773			36,455			36,157			149,212
Other assets		119,026			165,656			160,593			177,061			152,280
Goodwill		155,211			155,211			155,211			155,211			155,211
Other intangible assets		11,067			11,910			12,754			13,626			14,530
Premises and equipment, net		93,544			93,695			94,303			94,583			94,716
Interest receivable		39,366			43,240			40,008			38,710			37,850
Total non-interest earning assets		511,263			560,961			549,143			578,091			652,943
Total assets	$	7,927,457		$	7,912,527		$	7,855,707		$	7,940,485		$	7,959,434
Liabilities
Savings and money market deposits	$	3,420,827		$	3,364,726		$	3,350,673		$	3,369,149		$	3,322,788
Time deposits		1,220,653			1,178,389			1,136,121			1,179,739			1,250,606
Borrowings		1,142,744			1,229,165			1,219,812			1,217,020			1,214,016
Repurchase agreements		122,399			128,169			139,309			136,030			142,494
Subordinated notes		55,703			55,668			55,634			55,543			59,007
Junior subordinated debentures issued to capital trusts		57,423			57,369			57,315			57,258			57,201
Total interest earning liabilities		6,019,749			6,013,486			5,958,864			6,014,739			6,046,112
Non-interest bearing deposits		1,085,535			1,087,040			1,093,076			1,116,005			1,126,703
Interest payable		11,400			11,240			7,853			22,249			16,281
Other liabilities		55,951			74,096			74,664			68,680			76,969
Total liabilities		7,172,635			7,185,862			7,134,457			7,221,673			7,266,065
Stockholders’ Equity
Preferred stock		—			—			—			—			—
Common stock		—			—			—			—			—
Additional paid-in capital		358,453			357,673			356,599			356,400			355,478
Retained earnings		454,050			442,977			435,927			429,021			461,325
Accumulated other comprehensive income (loss)		(57,681	)		(73,985	)		(71,276	)		(66,609	)		(123,434	)
Total stockholders’ equity		754,822			726,665			721,250			718,812			693,369
Total liabilities and stockholders’ equity	$	7,927,457		$	7,912,527		$	7,855,707		$	7,940,485		$	7,959,434

	Loans and Deposits
	(Dollars in Thousands, Unaudited)
	September 30,		June 30,		March 31,		December 31,		September 30,		% Change
	2024		2024		2024		2023		2023		Q3’24 vs Q2’24			Q3’24 vs Q3’23
Commercial:
Commercial real estate	$	2,105,459	$	2,117,772	$	1,984,723	$	1,962,097	$	1,916,056		(1	)%		10	%
Commercial & Industrial		808,600		786,788		765,043		712,863		673,188		3	%		20	%
Total commercial		2,914,059		2,904,560		2,749,766		2,674,960		2,589,244		—	%		13	%
Residential Real estate		801,356		797,956		782,071		681,136		675,399		—	%		19	%
Mortgage warehouse		80,437		68,917		56,548		45,078		65,923		17	%		22	%
Consumer		1,008,144		1,051,407		1,029,790		1,016,456		1,028,436		(4	)%		(2	)%
Total loans held for investment		4,803,996		4,822,840		4,618,175		4,417,630		4,359,002		—	%		10	%
Loans held for sale		2,069		2,440		922		1,418		2,828		(15	)%		(27	)%
Total loans	$	4,806,065	$	4,825,280	$	4,619,097	$	4,419,048	$	4,361,830		—	%		10	%

Deposits:
Interest bearing deposits
Savings and money market deposits	$	3,420,827	$	3,364,726	$	3,350,673	$	3,369,149	$	3,322,788		2	%		3	%
Time deposits		1,220,653		1,178,389		1,136,121		1,179,739		1,250,606		4	%		(2	)%
Total Interest bearing deposits		4,641,480		4,543,115		4,486,794		4,548,888		4,573,394		2	%		1	%
Non-interest bearing deposits
Non-interest bearing deposits		1,085,535		1,087,040		1,093,076		1,116,005		1,126,703		—	%		(4	)%
Total deposits	$	5,727,015	$	5,630,155	$	5,579,870	$	5,664,893	$	5,700,097		2	%		—	%

	Average Balance Sheet
	(Dollars in Thousands, Unaudited)
	Three Months Ended
	September 30, 2024								June 30, 2024								September 30, 2023
	Average Balance			Interest⁽⁴⁾		Average Rate⁽⁴⁾			Average Balance			Interest⁽⁴⁾		Average Rate⁽⁴⁾			Average Balance			Interest⁽⁴⁾		Average Rate⁽⁴⁾
Assets
Interest earning assets
Federal funds sold	$	64,743		$	860		5.28	%	$	47,805		$	645		5.43	%	$	92,305		$	1,247		5.36	%
Interest earning deposits		8,781			97		4.39	%		7,662			93		4.88	%		8,018			85		4.21	%
Federal Home Loan Bank stock		53,826			1,607		11.88	%		53,827			1,521		11.36	%		34,509			618		7.10	%
Investment securities – taxable ⁽¹⁾		1,301,830			6,526		1.99	%		1,309,305			6,465		1.99	%		1,650,081			8,170		1.96	%
Investment securities – non-taxable ⁽¹⁾		1,125,295			7,987		2.82	%		1,132,065			8,072		2.87	%		1,220,998			8,863		2.88	%
Total investment securities		2,427,125			14,513		2.38	%		2,441,370			14,537		2.39	%		2,871,079			17,033		2.35	%
Loans receivable ^{(2) (3)}		4,775,788			75,828		6.32	%		4,662,124			72,208		6.23	%		4,280,700			63,254		5.89	%
Total interest earning assets	$	7,330,263		$	92,905		5.04	%	$	7,212,788		$	89,004		4.96	%	$	7,286,611		$	82,237		4.59	%
Non-interest earning assets
Cash and due from banks	$	108,609							$	108,319							$	100,331
Allowance for credit losses		(52,111	)							(50,334	)							(49,705	)
Other assets		471,259								508,555								587,514
Total average assets	$	7,858,020							$	7,779,328							$	7,924,751

Liabilities and Stockholders’ Equity
Interest bearing liabilities
Interest bearing deposits	$	3,386,177		$	18,185		2.14	%	$	3,334,490		$	16,814		2.03	%	$	3,267,594		$	12,661		1.54	%
Time deposits		1,189,148			12,602		4.22	%		1,134,590			11,633		4.12	%		1,271,104			12,043		3.76	%
Borrowings		1,149,952			10,221		3.54	%		1,184,172			10,278		3.49	%		1,180,452			10,399		3.50	%
Repurchase agreements		123,524			910		2.93	%		125,144			935		3.00	%		136,784			825		2.39	%
Subordinated notes		55,681			830		5.93	%		55,647			829		5.99	%		58,983			880		5.92	%
Junior subordinated debentures issued to capital trusts		57,389			1,230		8.53	%		57,335			1,213		8.51	%		57,166			1,227		8.52	%
Total interest bearing liabilities	$	5,961,871		$	43,978		2.93	%	$	5,891,378		$	41,702		2.85	%	$	5,972,083		$	38,035		2.53	%
Non-interest bearing liabilities
Demand deposits	$	1,083,214							$	1,080,676							$	1,159,241
Accrued interest payable and other liabilities		74,563								80,942								77,942
Stockholders’ equity		738,372								726,332								715,485
Total average liabilities and stockholders’ equity	$	7,858,020							$	7,779,328							$	7,924,751
Net FTE interest income (non-GAAP) ⁽⁵⁾				$	48,927							$	47,302							$	44,202
Less FTE adjustments ⁽⁴⁾					2,017								2,023								2,112
Net Interest Income				$	46,910							$	45,279							$	42,090
Net FTE interest margin (Non-GAAP) ⁽⁴⁾⁽⁵⁾							2.66	%							2.64	%							2.41	%

⁽¹⁾ Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities.
⁽²⁾ Includes fees on loans held for sale and held for investment. The inclusion of loan fees does not have a material effect on the average interest rate.
⁽³⁾ Non-accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees.
⁽⁴⁾ Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company’s performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax-exempt loans and securities to an FTE basis utilizing a 21% tax rate
⁽⁵⁾ Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

	Credit Quality
	(Dollars in Thousands Except Ratios, Unaudited)
	Quarter Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			% Change
	2024			2024			2024			2023			2023			3Q24 vs 2Q24			3Q24 vs 3Q23
Non-accrual loans
Commercial	$	6,830		$	4,321		$	5,493		$	7,362		$	6,919			58	%		(1	)%
Residential Real estate		9,529			8,489			8,725			8,058			7,644			12	%		25	%
Mortgage warehouse		—			—			—			—			—			—	%		—	%
Consumer		7,208			5,453			4,835			4,290			4,493			32	%		60	%
Total non-accrual loans		23,567			18,263			19,053			19,710			19,056			29	%		24	%
90 days and greater delinquent – accruing interest		819			1,039			108			559			392			(21	)%		109	%
Total non-performing loans		24,386			19,302			19,161			20,269			19,448			26	%		25	%

Other real estate owned
Commercial	$	1,158		$	1,111		$	1,124		$	1,124		$	1,287			4	%		(10	)%
Residential Real estate		—			—			—			182			32			—	%		(100	)%
Mortgage warehouse		—			—			—			—			—			—	%		—	%
Consumer		36			57			50			205			72			(37	)%		(50	)%
Total other real estate owned	$	1,194		$	1,168		$	1,174		$	1,511		$	1,391			2	%		(14	)%

Total non-performing assets	$	25,580		$	20,470		$	20,335		$	21,780		$	20,839			25	%		23	%

Loan data:
Accruing 30 to 89 days past due loans	$	18,087		$	19,785		$	15,154		$	16,595		$	13,089			(9	)%		38	%
Substandard loans		59,775			51,221			47,469			49,526			47,563			17	%		26	%
Net charge-offs (recoveries)
Commercial		(55	)		57			(57	)		233			142			(196	)%		(139	)%
Residential Real estate		(9	)		(4	)		(5	)		21			(39	)		(125	)%		77	%
Mortgage warehouse		—			—			—			—			—			—	%		—	%
Consumer		439			534			488			531			619			(18	)%		(29	)%
Total net charge-offs		375			587			426			785			722			(36	)%		(48	)%

Allowance for credit losses
Commercial		32,854			31,941			30,514			29,736			29,472			3	%		11	%
Residential Real estate		2,675			2,588			2,655			2,503			2,794			3	%		(4	)%
Mortgage warehouse		862			736			659			481			714			17	%		21	%
Consumer		16,490			16,950			16,559			17,309			16,719			(3	)%		(1	)%
Total allowance for credit losses	$	52,881		$	52,215		$	50,387		$	50,029		$	49,699			1	%		6	%

Credit quality ratios
Non-accrual loans to HFI loans		0.49	%		0.38	%		0.41	%		0.45	%		0.44	%
Non-performing assets to total assets		0.32	%		0.26	%		0.26	%		0.27	%		0.26	%
Annualized net charge-offs of average total loans		0.03	%		0.05	%		0.04	%		0.07	%		0.07	%
Allowance for credit losses to HFI loans		1.10	%		1.08	%		1.09	%		1.13	%		1.14	%

Non–GAAP Reconciliation of Net Fully-Taxable Equivalent (“FTE”) Interest Margin
(Dollars in Thousands, Unaudited)
		Three Months Ended
		September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023
Interest income (GAAP)	(A)	$	90,888		$	86,981		$	85,264		$	83,514		$	80,125
Taxable-equivalent adjustment:
Investment securities – tax exempt ⁽¹⁾			1,677			1,695			1,715			1,799			1,861
Loan receivable ⁽²⁾			340			328			353			314			251
Interest income (non-GAAP)	(B)		92,905			89,004			87,332			85,627			82,237
Interest expense (GAAP)	(C)		43,978			41,702			41,976			41,257			38,035
Net interest income (GAAP)	(D) =(A) – (C)		46,910			45,279			43,288			42,257			42,090
Net FTE interest income (non-GAAP)	(E) = (B) – (C)		48,927			47,302			45,356			44,370			44,202
Average interest earning assets	(F)		7,330,263			7,212,788			7,293,559			7,239,034			7,286,611
Net FTE interest margin (non-GAAP)	(G) = (E*) / (F)		2.66	%		2.64	%		2.50	%		2.43	%		2.41	%

⁽¹⁾ The following represents municipal securities interest income for investment securities classified as available-for-sale and held-to-maturity
⁽²⁾ The following represents municipal loan interest income for loan receivables classified as held for sale and held for investment
*Annualized

Non–GAAP Reconciliation of Return on Average Tangible Common Equity
(Dollars in Thousands, Unaudited)
		Three Months Ended
		September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023

Net income (loss) (GAAP)	(A)	$	18,180		$	14,140		$	13,991		$	(25,215	)	$	16,205

Average stockholders’ equity	(B)		738,372			726,332			725,083			702,793			715,485
Average intangible assets	(C)		166,819			167,659			168,519			169,401			170,301
Average tangible equity (Non-GAAP)	(D) = (B) – (C)	$	571,553		$	558,673		$	556,564		$	533,392		$	545,184
Return on average tangible common equity (“ROACE”) (non-GAAP)	(E) = (A*) / (D)		12.65	%		10.18	%		10.11	%	(18.76		)%		11.79	%
*Annualized

Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets
(Dollars in Thousands, Unaudited)
		Three Months Ended
		September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023
Total stockholders’ equity (GAAP)	(A)	$	754,822		$	726,665		$	721,250		$	718,812		$	693,369
Intangible assets (end of period)	(B)		166,278			167,121			167,965			168,837			169,741
Total tangible common equity (non-GAAP)	(C) = (A) – (B)	$	588,544		$	559,544		$	553,285		$	549,975		$	523,628

Total assets (GAAP)	(D)		7,927,457			7,912,527			7,855,707			7,940,485			7,959,434
Intangible assets (end of period)	(B)		166,278			167,121			167,965			168,837			169,741
Total tangible assets (non-GAAP)	(E) = (D) – (B)	$	7,761,179		$	7,745,406		$	7,687,742		$	7,771,648		$	7,789,693

Tangible common equity to tangible assets (Non-GAAP)	(G) = (C) / (E)		7.58	%		7.22	%		7.20	%		7.08	%		6.72	%

Non–GAAP Reconciliation of Tangible Book Value Per Share
(Dollars in Thousands, Unaudited)
		Three Months Ended
		September 30,		June 30,		March 31,		December 31,		September 30,
		2024		2024		2024		2023		2023
Total stockholders’ equity (GAAP)	(A)	$	754,822	$	726,665	$	721,250	$	718,812	$	693,369
Intangible assets (end of period)	(B)		166,278		167,121		167,965		168,837		169,741
Total tangible common equity (non-GAAP)	(C) = (A) – (B)	$	588,544	$	559,544	$	553,285	$	549,975	$	523,628
Common shares outstanding	(D)		43,712,059		43,712,059		43,726,380		43,652,063		43,648,501

Tangible book value per common share (non-GAAP)	(E) = (C) / (D)	$	13.46	$	12.80	$	12.65	$	12.60	$	12.00

Contact:	John R. Stewart, CFA
	EVP, Chief Financial Officer
Phone:	(219) 814–5833
Fax:	(219) 874–9280
Date:	October 23, 2024

The MIL Network –

January 25, 2025

MIL-OSI: HCI Group Assumes Over 42,000 Policies from Citizens, Representing Approximately $200 Million in Premium

Source: GlobeNewswire (MIL-OSI)

TAMPA, Fla., Oct. 23, 2024 (GLOBE NEWSWIRE) — HCI Group, Inc. (NYSE: HCI), a holding company with operations in homeowners insurance, information technology services, real estate, and reinsurance, announced today that its insurance subsidiaries have successfully assumed over 42,000 policies from Citizens Property Insurance Corporation, Florida’s state-backed insurance company. The policies assumed represent approximately $200 million of in-force premium.

“We successfully navigated a highly competitive Citizens’ depopulation process and exceeded our fourth quarter new business goal through the October assumption alone,” said Paresh Patel, HCI’s Chairman and Chief Executive Officer. “Our technology, which enables us to select policies that best fit our underwriting and profitability criteria, combined with our strong rate of policyholder adoption, allows us to forgo additional assumptions for the balance of the year.”

Homeowners Choice was approved for 25,000 policies and assumed approximately 22,000 policies – an 88% acceptance rate. TypTap Insurance Company was approved for 25,000 policies and assumed approximately 20,000 policies – an 80% acceptance rate. The assumption of policies by both insurance subsidiaries is effective as of October 22, 2024.

About HCI Group, Inc.
HCI Group, Inc. owns subsidiaries engaged in diverse, yet complementary business activities, including homeowners insurance, information technology services, insurance management, real estate, and reinsurance. HCI’s leading insurance operation, TypTap Insurance Company, is a technology-driven homeowners insurance company. TypTap’s operations are powered in large part by insurance-related information technology developed by HCI’s software subsidiary, Exzeo USA, Inc. HCI’s largest subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., provides homeowners insurance primarily in Florida. HCI’s real estate subsidiary, Greenleaf Capital, LLC, owns and operates multiple properties in Florida, including office buildings, retail centers and marinas.

The company’s common shares trade on the New York Stock Exchange under the ticker symbol “HCI” and are included in the Russell 2000 and S&P SmallCap 600 Index. HCI Group, Inc. regularly publishes financial and other information in the Investor Information section of the company’s website. For more information about HCI Group and its subsidiaries, visit www.hcigroup.com.

Company Contact:
Bill Broomall, CFA
Investor Relations
HCI Group, Inc.
Tel (813) 776-1012
wbroomall@typtap.com

Investor Relations Contact:
Matt Glover
Gateway Group, Inc.
Tel 949-574-3860
HCI@gateway-grp.com

The MIL Network –

January 25, 2025

MIL-OSI: Univest Financial Corporation Reports Third Quarter Results

Source: GlobeNewswire (MIL-OSI)

SOUDERTON, Pa., Oct. 23, 2024 (GLOBE NEWSWIRE) — Univest Financial Corporation (“Univest” or the “Corporation”) (NASDAQ: UVSP), parent company of Univest Bank and Trust Co. (the “Bank”) and its insurance, investments and equipment financing subsidiaries, announced net income for the quarter ended September 30, 2024 was $18.6 million, or $0.63 diluted earnings per share, compared to net income of $17.0 million, or $0.58 diluted earnings per share, for the quarter ended September 30, 2023.

Loans
Gross loans and leases increased $45.9 million, or 0.7% (2.8% annualized), from June 30, 2024, primarily due to increases in commercial real estate and residential mortgage loans, partially offset by decreases in construction and commercial loans. Gross loans and leases increased $163.5 million, or 2.5% (3.3% annualized), from December 31, 2023, primarily due to increases in commercial, commercial real estate and residential mortgage loans, partially offset by a decrease in construction loans.

Deposits and Liquidity
Total deposits increased $358.8 million, or 5.5% (22.0% annualized), from June 30, 2024, primarily due to seasonal increases in public funds partially offset by decreases in commercial, consumer and brokered deposits. Total deposits increased $478.4 million, or 7.5% (10.0% annualized), from December 31, 2023, primarily due to increases in commercial, brokered, and seasonal public funds deposits. Noninterest-bearing deposits totaled $1.3 billion and represented 19.3% of total deposits at September 30, 2024, compared to $1.4 billion representing 21.5% of total deposits at June 30, 2024. Unprotected deposits, which excludes insured, internal, and collateralized deposit accounts, totaled $1.4 billion at September 30, 2024 and June 30, 2024. This represented 20.3% of total deposits at September 30, 2024, compared to 22.1% at June 30, 2024.

As of September 30, 2024, the Corporation reported on balance sheet cash and cash equivalents totaling $504.7 million. The Corporation and its subsidiaries had committed borrowing capacity of $3.6 billion at September 30, 2024, of which $1.8 billion was available. The Corporation and its subsidiaries also maintained uncommitted funding sources from correspondent banks of $468.0 million at September 30, 2024. Future availability under these uncommitted funding sources is subject to the prerogatives of the granting banks and may be withdrawn at will.

Net Interest Income and Margin
Net interest income of $53.2 million for the third quarter of 2024 decreased $386 thousand, or 0.7%, from the third quarter of 2023 and increased $2.2 million, or 4.3%, from the second quarter of 2024. The decrease in net interest income for the three months ended September 30, 2024 compared to the same period in the prior year reflects the continued pressure on the cost of deposits due to the shift of balances from lower to higher cost deposit products which exceeded the increase in interest income from asset yield expansion and the increase in average interest-earning assets. However, we continue to see indicators of stabilization in cost of funds and our funding mix. The increase in net interest income for the three months ended September 30, 2024 compared to the three months ended June 30, 2024 was due to higher average balances of interest-earning assets and increased yields on these assets, partially offset by higher interest-bearing liability balances and costs.

Net interest margin, on a tax-equivalent basis, was 2.82% for the third quarter of 2024, compared to 2.84% for the second quarter of 2024 and 2.96% for the third quarter of 2023. Excess liquidity reduced net interest margin by approximately nine basis points for the quarter ended September 30, 2024 compared to approximately two basis points for the quarter ended June 30, 2024 and approximately four basis points for the quarter ended September 30, 2023. Excluding the impact of excess liquidity, the net interest margin, on a tax-equivalent basis, was 2.91% for the quarter ended September 30, 2024 compared to 2.86% for the quarter ended June 30, 2024 and 3.00% for the quarter ended September 30, 2023.

Noninterest Income
Noninterest income for the quarter ended September 30, 2024 was $20.2 million, an increase of $1.5 million, or 7.8%, from the comparable period in the prior year.

Investment advisory commission and fee income increased $476 thousand, or 9.8%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to increased assets under management and supervision driven by new business and market appreciation. Insurance commission and fee income increased $386 thousand, or 8.0%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to an increase in commercial lines premiums. Other income increased $1.2 million, or 512.3%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to an increase of $705 thousand in gains on the sale of Small Business Administration loans.

Other service fee income decreased $1.2 million, or 39.9%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to a $785 thousand valuation allowance recorded on mortgage servicing rights driven by the increase in prepayment speed assumptions as a result of the decrease in interest rates during the quarter. Additionally, net servicing fees on sold mortgage loans decreased by $307 thousand, primarily attributable to the sale of mortgage servicing rights associated with $591.1 million of serviced loans in the first quarter of 2024 and increased amortization driven by prepayments.

Noninterest Expense
Noninterest expense for the quarter ended September 30, 2024 was $48.6 million, a decrease of $436 thousand, or 0.9%, from the comparable period in the prior year.

Other expense decreased $808 thousand, or 11.0%, for the quarter ended September 30, 2024 primarily due to decreases in retirement plan costs, insurance expense, recruiter fees, and bank shares tax expense.

Professional fees decreased $184 thousand, or 10.4%, for the quarter ended September 30, 2024 primarily driven by a reduction in consultant fees. Deposit insurance premiums decreased $161 thousand, or 12.8%, for the quarter ended September 30, 2024 driven by an improvement in the financial ratios that contribute to our deposit insurance assessment rate.

Salaries, benefits and commissions increased $724 thousand, or 2.4%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to increases in salary expense and an increase in incentive compensation due to increased profitability, partially offset by an increase in compensation capitalized driven by higher loan production.

Tax Provision
The effective income tax rate was 20.6% for the quarter ended September 30, 2024, compared to an effective tax rate of 20.0% for the quarter ended September 30, 2023. The effective tax rates for the three months ended September 30, 2024 and 2023 reflected the benefits of tax-exempt income from investments in municipal securities and loans and leases. The increase in effective tax rate in the quarter was primarily due to increases in state tax rates.

Asset Quality and Provision for Credit Losses
Nonperforming assets totaled $36.6 million at September 30, 2024 and June 30, 2024, and $40.1 million at September 30, 2023.

Net loan and lease charge-offs were $820 thousand for the three months ended September 30, 2024 compared to $809 thousand and $969 thousand for the three months ended June 30, 2024 and September 30, 2023, respectively.

The provision for credit losses was $1.4 million for the three months ended September 30, 2024 compared to $707 thousand and $2.0 million for the three months ended June 30, 2024 and September 30, 2023, respectively. The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.28% at September 30, 2024, June 30, 2024 and September 30, 2023.

Dividend and Share Repurchases
On October 23, 2024, Univest declared a quarterly cash dividend of $0.21 per share to be paid on November 20, 2024 to shareholders of record as of November 6, 2024. During the quarter ended September 30, 2024, the Corporation repurchased 156,728 shares of common stock at an average price of $26.47 per share. Including brokerage fees and excise tax, the average price per share was $26.76. As of September 30, 2024, 539,646 shares are available for repurchase under the Share Repurchase Plan. On October 23, 2024, the Corporation’s Board of Directors approved an increase of 1,000,000 shares available for repurchase under the Corporation’s share repurchase program.

Conference Call
Univest will host a conference call to discuss third quarter 2024 results on Thursday, October 24, 2024 at 9:00 a.m. EST. Participants may preregister at https://www.netroadshow.com/events/login?show=27c257f2&confId=71976. The general public can access the call by dialing 1-833-470-1428; using Access Code 752766. A replay of the conference call will be available through December 24, 2024 by dialing 1-866-813-9403; using Access Code 807549.

About Univest Financial Corporation
Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $8.2 billion in assets and $5.3 billion in assets under management and supervision through its Wealth Management lines of business at September 30, 2024. Headquartered in Souderton, Pa. and founded in 1876, the Corporation and its subsidiaries provide a full range of financial solutions for individuals, businesses, municipalities and nonprofit organizations primarily in the Mid-Atlantic Region. Univest delivers these services through a network of more than 50 offices and online at www.univest.net.

This press release and the reports Univest files with the Securities and Exchange Commission often contain “forward-looking statements” relating to trends or factors affecting the financial services industry and, specifically, the financial condition and results of operations, business, prospects and strategies of Univest. These forward-looking statements involve certain risks and uncertainties in that there are a number of important factors that could cause Univest’s future financial condition, results of operations, business, prospects or strategies to differ materially from those expressed or implied by the forward-looking statements. These factors include, but are not limited to: (1) competition and demand for financial services in our market area; (2) inflation and/or changes in interest rates, which may adversely impact our margins and yields, reduce the fair value of our financial instruments, reduce our loan originations and/or lead to higher operating costs and higher costs we pay to retain and attract deposits; (3) changes in asset quality, prepayment speeds, loan sale volumes, charge-offs and/or credit loss provisions; (4) changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; (5) our ability to access cost-effective funding; (6) changes in economic conditions nationally and in our market, including potential recessionary conditions and the levels of unemployment in our market area; (7) economic assumptions or changes in our methodology, either of which may impact our allowance for credit losses calculation; (8) legislative, regulatory, accounting or tax changes; (9) monetary and fiscal policies of the U.S. government, including the policies of the Board of Governors of the Federal Reserve System; (10) technological issues that may adversely affect our operations or those of our customers; (11) a failure or breach in our operational or security systems or infrastructure, including cyberattacks; (12) changes in the securities markets; (13) the current or anticipated impact of military conflict, terrorism or other geopolitical events; (14) our ability to enter into new markets successfully and capitalize on growth opportunities and/or (15) risk factors mentioned in the reports and registration statements Univest files with the Securities and Exchange Commission.

(UVSP – ER)

Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
September 30, 2024
(Dollars in thousands)

Balance Sheet (Period End)	09/30/24			06/30/24			03/31/24			12/31/23			09/30/23
ASSETS
Cash and due from banks	$	78,346		$	66,808		$	49,318		$	72,815		$	68,900
Interest-earning deposits with other banks		426,354			124,103			152,288			176,984			221,441
Cash and cash equivalents		504,700			190,911			201,606			249,799			290,341
Investment securities held-to-maturity		137,681			140,112			143,474			145,777			149,451
Investment securities available for sale, net of allowance for credit losses		354,100			342,776			350,819			351,553			334,538
Investments in equity securities		2,406			2,995			3,355			3,293			4,054
Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost		40,235			37,438			37,394			40,499			42,417
Loans held for sale		17,131			28,176			13,188			11,637			16,473
Loans and leases held for investment		6,730,734			6,684,837			6,579,086			6,567,214			6,574,958
Less: Allowance for credit losses, loans and leases		(86,041	)		(85,745	)		(85,632	)		(85,387	)		(83,837	)
Net loans and leases held for investment		6,644,693			6,599,092			6,493,454			6,481,827			6,491,121
Premises and equipment, net		47,411			48,174			48,739			51,441			51,287
Operating lease right-of-use assets		29,260			29,985			30,702			31,795			31,053
Goodwill		175,510			175,510			175,510			175,510			175,510
Other intangibles, net of accumulated amortization		7,158			7,701			7,473			10,950			11,079
Bank owned life insurance		138,744			137,823			137,896			131,344			130,522
Accrued interest and other assets		106,708			114,753			102,958			95,203			100,220
Total assets	$	8,205,737		$	7,855,446		$	7,746,568		$	7,780,628		$	7,828,066

LIABILITIES
Noninterest-bearing deposits	$	1,323,953		$	1,397,308		$	1,401,806		$	1,468,320		$	1,432,559
Interest-bearing deposits:		5,530,195			5,098,014			5,003,552			4,907,461			5,006,606
Total deposits		6,854,148			6,495,322			6,405,358			6,375,781			6,439,165
Short-term borrowings		8,256			11,781			4,816			6,306			14,676
Long-term debt		225,000			250,000			250,000			310,000			320,000
Subordinated notes		149,136			149,011			148,886			148,761			148,636
Operating lease liabilities		32,246			33,015			33,744			34,851			34,017
Accrued expenses and other liabilities		59,880			62,180			60,095			65,721			64,374
Total liabilities		7,328,666			7,001,309			6,902,899			6,941,420			7,020,868

SHAREHOLDERS’ EQUITY
Common stock, $5 par value: 48,000,000 shares authorized and 31,556,799 shares issued		157,784			157,784			157,784			157,784			157,784
Additional paid-in capital		301,262			300,166			298,914			301,066			300,171
Retained earnings		512,938			500,482			488,790			474,691			464,634
Accumulated other comprehensive loss, net of tax benefit		(41,623	)		(54,124	)		(54,740	)		(50,646	)		(71,586	)
Treasury stock, at cost		(53,290	)		(50,171	)		(47,079	)		(43,687	)		(43,805	)
Total shareholders’ equity		877,071			854,137			843,669			839,208			807,198
Total liabilities and shareholders’ equity	$	8,205,737		$	7,855,446		$	7,746,568		$	7,780,628		$	7,828,066


	For the three months ended,															For the nine months ended,
Balance Sheet (Average)	09/30/24			06/30/24			03/31/24			12/31/23			09/30/23			09/30/24		09/30/23
Assets	$	8,005,265		$	7,721,540		$	7,696,575		$	7,865,634		$	7,693,983		$	7,808,514	$	7,453,070
Investment securities, net of allowance for credit losses		493,334			493,140			500,983			489,587			506,341			495,810		513,704
Loans and leases, gross		6,730,791			6,640,536			6,577,365			6,594,233			6,537,169			6,649,860		6,359,498
Deposits		6,641,324			6,353,752			6,303,854			6,470,141			6,222,710			6,433,737		5,968,659
Shareholders’ equity		864,406			844,572			842,546			814,941			811,515			850,559		802,541

Univest Financial Corporation
Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited)
September 30, 2024
(Dollars in thousands)

Summary of Major Loan and Lease Categories (Period End)	09/30/24			06/30/24			03/31/24			12/31/23			09/30/23
Commercial, financial and agricultural	$	1,044,043		$	1,055,332		$	1,014,568		$	989,723		$	1,050,004
Real estate-commercial		3,442,083			3,373,889			3,283,729			3,302,798			3,275,140
Real estate-construction		285,616			313,229			379,995			394,462			427,561
Real estate-residential secured for business purpose		530,674			532,628			524,196			517,002			516,471
Real estate-residential secured for personal purpose		969,562			952,665			922,412			909,015			861,122
Real estate-home equity secured for personal purpose		182,901			179,150			177,446			179,282			176,855
Loans to individuals		26,794			26,430			27,200			27,749			27,331
Lease financings		249,061			251,514			249,540			247,183			240,474
Total loans and leases held for investment, net of deferred income		6,730,734			6,684,837			6,579,086			6,567,214			6,574,958
Less: Allowance for credit losses, loans and leases		(86,041	)		(85,745	)		(85,632	)		(85,387	)		(83,837	)
Net loans and leases held for investment	$	6,644,693		$	6,599,092		$	6,493,454		$	6,481,827		$	6,491,121


Asset Quality Data (Period End)	09/30/24			06/30/24			03/31/24			12/31/23			09/30/23
Nonaccrual loans and leases, including nonaccrual loans held for sale*	$	15,319		$	16,200		$	20,363		$	20,527		$	18,085
Accruing loans and leases 90 days or more past due		310			205			268			534			2,135
Total nonperforming loans and leases		15,629			16,405			20,631			21,061			20,220
Other real estate owned		20,915			20,007			19,220			19,032			19,916
Repossessed assets		79			149			167			–			–
Total nonperforming assets	$	36,623		$	36,561		$	40,018		$	40,093		$	40,136
Nonaccrual loans and leases / Loans and leases held for investment		0.23	%		0.24	%		0.31	%		0.31	%		0.28	%
Nonperforming loans and leases / Loans and leases held for investment		0.23	%		0.25	%		0.31	%		0.32	%		0.31	%
Nonperforming assets / Total assets		0.45	%		0.47	%		0.52	%		0.52	%		0.51	%

Allowance for credit losses, loans and leases	$	86,041		$	85,745		$	85,632		$	85,387		$	83,837
Allowance for credit losses, loans and leases / Loans and leases held for investment		1.28	%		1.28	%		1.30	%		1.30	%		1.28	%
Allowance for credit losses, loans and leases / Nonaccrual loans and leases		561.66	%		529.29	%		420.53	%		415.97	%		463.57	%
Allowance for credit losses, loans and leases / Nonperforming loans and leases		550.52	%		522.68	%		415.06	%		405.43	%		414.62	%
*Includes a $5.8 million loan held for sale at September 30, 2023.

	For the three months ended,															For the nine months ended,
	09/30/24			06/30/24			03/31/24			12/31/23			09/30/23			09/30/24			09/30/23
Net loan and lease charge-offs	$	820		$	809		$	1,406		$	1,074		$	969		$	3,035		$	4,323
Net loan and lease charge-offs (annualized)/Average loans and leases		0.05	%		0.05	%		0.09	%		0.06	%		0.06	%		0.06	%		0.09	%

Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
September 30, 2024
(Dollars in thousands, except per share data)
	For the three months ended,										For the nine months ended,
For the period:	09/30/24		06/30/24		03/31/24		12/31/23		09/30/23		09/30/24		09/30/23
Interest income	$	106,438	$	99,832	$	98,609	$	101,232	$	97,106	$	304,879	$	270,498
Interest expense		53,234		48,805		47,142		48,472		43,516		149,181		103,261
Net interest income		53,204		51,027		51,467		52,760		53,590		155,698		167,237
Provision for credit losses		1,414		707		1,432		1,931		2,024		3,553		8,839
Net interest income after provision for credit losses		51,790		50,320		50,035		50,829		51,566		152,145		158,398
Noninterest income:
Trust fee income		2,110		2,008		2,108		1,943		1,910		6,226		5,789
Service charges on deposit accounts		2,037		1,982		1,871		1,960		1,816		5,890		5,088
Investment advisory commission and fee income		5,319		5,238		5,194		4,561		4,843		15,751		14,303
Insurance commission and fee income		5,238		5,167		7,201		4,596		4,852		17,606		16,447
Other service fee income		1,815		3,044		6,415		2,967		3,020		11,274		9,414
Bank owned life insurance income		921		1,086		842		823		806		2,849		2,362
Net gain on sales of investment securities		18		–		–		–		–		18		–
Net gain on mortgage banking activities		1,296		1,710		939		809		1,216		3,945		2,880
Other income		1,396		745		1,025		961		228		3,166		1,921
Total noninterest income		20,150		20,980		25,595		18,620		18,691		66,725		58,204
Noninterest expense:
Salaries, benefits and commissions		30,702		30,187		31,338		29,321		29,978		92,227		90,867
Net occupancy		2,723		2,679		2,872		2,751		2,594		8,274		7,935
Equipment		1,107		1,088		1,111		1,066		1,087		3,306		3,066
Data processing		4,154		4,161		4,495		4,444		4,189		12,810		12,355
Professional fees		1,579		1,466		1,688		1,768		1,763		4,733		5,373
Marketing and advertising		490		715		416		632		555		1,621		1,548
Deposit insurance premiums		1,097		1,098		1,135		1,350		1,258		3,330		3,475
Intangible expenses		164		188		187		212		220		539		726
Restructuring charges		–		–		–		189		–		–		1,330
Other expense		6,536		7,126		6,832		7,313		7,344		20,494		21,641
Total noninterest expense		48,552		48,708		50,074		49,046		48,988		147,334		148,316
Income before taxes		23,388		22,592		25,556		20,403		21,269		71,536		68,286
Income tax expense		4,810		4,485		5,251		4,149		4,253		14,546		13,436
Net income	$	18,578	$	18,107	$	20,305	$	16,254	$	17,016	$	56,990	$	54,850
Net income per share:
Basic	$	0.64	$	0.62	$	0.69	$	0.55	$	0.58	$	1.95	$	1.86
Diluted	$	0.63	$	0.62	$	0.69	$	0.55	$	0.58	$	1.94	$	1.86
Dividends declared per share	$	0.21	$	0.21	$	0.21	$	0.21	$	0.21	$	0.63	$	0.63
Weighted average shares outstanding		29,132,948		29,246,977		29,413,999		29,500,147		29,479,066		29,264,161		29,410,852
Period end shares outstanding		29,081,108		29,190,640		29,337,919		29,511,721		29,508,128		29,081,108		29,508,128

Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
September 30, 2024

	For the three months ended,															For the nine months ended,
Profitability Ratios (annualized)	09/30/24			06/30/24			03/31/24			12/31/23			09/30/23			09/30/24			09/30/23

Return on average assets		0.92	%		0.94	%		1.06	%		0.82	%		0.88	%		0.97	%		0.98	%
Return on average assets, excluding restructuring		0.92	%		0.94	%		1.06	%		0.83	%		0.88	%		0.97	%		1.00	%
charges (1)
Return on average shareholders’ equity		8.55	%		8.62	%		9.69	%		7.91	%		8.32	%		8.95	%		9.14	%
Return on average shareholders’ equity, excluding		8.55	%		8.62	%		9.69	%		7.99	%		8.32	%		8.95	%		9.31	%
restructuring charges (1)
Return on average tangible common equity (1)(3)		10.84	%		11.01	%		12.38	%		10.23	%		10.77	%		11.40	%		11.87	%
Return on average tangible common equity, excluding		10.84	%		11.01	%		12.38	%		10.32	%		10.77	%		11.40	%		12.10	%
restructuring charges (1)(3)
Net interest margin (FTE)		2.82	%		2.84	%		2.88	%		2.84	%		2.96	%		2.85	%		3.22	%
Efficiency ratio (2)		65.7	%		67.1	%		64.6	%		68.3	%		67.3	%		65.8	%		65.3	%
Efficiency ratio, excluding restructuring charges (1)(2)		65.7	%		67.1	%		64.6	%		68.0	%		67.3	%		65.8	%		64.7	%

Capitalization Ratios

Dividends declared to net income		33.0	%		33.9	%		30.5	%		38.1	%		36.4	%		32.4	%		33.8	%
Shareholders’ equity to assets (Period End)		10.69	%		10.87	%		10.89	%		10.79	%		10.31	%		10.69	%		10.31	%
Tangible common equity to tangible assets (1)		8.71	%		8.81	%		8.80	%		8.70	%		8.22	%		8.71	%		8.22	%
Common equity book value per share	$	30.16		$	29.26		$	28.76		$	28.44		$	27.36		$	30.16		$	27.36
Tangible common equity book value per share (1)	$	24.05		$	23.17		$	22.70		$	22.41		$	21.32		$	24.05		$	21.32

Regulatory Capital Ratios (Period End)
Tier 1 leverage ratio		9.53	%		9.74	%		9.65	%		9.36	%		9.43	%		9.53	%		9.43	%
Common equity tier 1 risk-based capital ratio		10.88	%		10.72	%		10.71	%		10.58	%		10.32	%		10.88	%		10.32	%
Tier 1 risk-based capital ratio		10.88	%		10.72	%		10.71	%		10.58	%		10.32	%		10.88	%		10.32	%
Total risk-based capital ratio		14.27	%		14.09	%		14.11	%		13.90	%		13.58	%		14.27	%		13.58	%

(1) Non-GAAP metric. A reconciliation of this and other non-GAAP to GAAP performance measures is included below.
(2) Noninterest expense to net interest income before loan loss provision plus noninterest income adjusted for tax equivalent income.
(3) Net income before amortization of intangibles to average tangible common equity.

Univest Financial Corporation
Average Balances and Interest Rates (Unaudited)
	For the Three Months Ended,
Tax Equivalent Basis	September 30, 2024							June 30, 2024
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	270,724		$	3,624	5.33	%	$	84,546		$	1,108	5.27	%
Obligations of state and political subdivisions*		1,283			7	2.17			1,269			7	2.22
Other debt and equity securities		492,051			3,706	3.00			491,871			3,741	3.06
Federal Home Loan Bank, Federal Reserve Bank and other stock		38,769			742	7.61			37,286			700	7.55
Total interest-earning deposits, investments and other interest-earning assets		802,827			8,079	4.00			614,972			5,556	3.63

Commercial, financial, and agricultural loans		997,465			18,459	7.36			983,615			17,447	7.13
Real estate—commercial and construction loans		3,592,556			52,672	5.83			3,549,206			50,577	5.73
Real estate—residential loans		1,692,361			21,127	4.97			1,660,489			20,413	4.94
Loans to individuals		26,651			549	8.20			26,821			542	8.13
Tax-exempt loans and leases		232,159			2,565	4.40			230,495			2,476	4.32
Lease financings		189,599			3,275	6.87			189,910			3,105	6.58
Gross loans and leases		6,730,791			98,647	5.83			6,640,536			94,560	5.73
Total interest-earning assets		7,533,618			106,726	5.64			7,255,508			100,116	5.55
Cash and due from banks		62,902							56,387
Allowance for credit losses, loans and leases		(86,517	)						(86,293	)
Premises and equipment, net		47,989							48,725
Operating lease right-of-use assets		29,620							30,344
Other assets		417,653							416,869
Total assets	$	8,005,265						$	7,721,540

Liabilities:
Interest-bearing checking deposits	$	1,215,166		$	8,824	2.89	%	$	1,094,150		$	7,311	2.69	%
Money market savings		1,849,628			21,213	4.56			1,692,759			19,131	4.55
Regular savings		727,395			878	0.48			759,960			929	0.49
Time deposits		1,491,560			17,255	4.60			1,422,113			16,134	4.56
Total time and interest-bearing deposits		5,283,749			48,170	3.63			4,968,982			43,505	3.52

Short-term borrowings		8,210			1	0.05			29,506			242	2.30
Long-term debt		247,826			2,781	4.46			250,000			2,777	4.47
Subordinated notes		149,068			2,282	6.09			148,943			2,281	6.16
Total borrowings		405,104			5,064	4.97			428,449			5,300	4.98
Total interest-bearing liabilities		5,688,853			53,234	3.72			5,397,431			48,805	3.64
Noninterest-bearing deposits		1,357,575							1,384,770
Operating lease liabilities		32,627							33,382
Accrued expenses and other liabilities		61,804							61,385
Total liabilities		7,140,859							6,876,968
Total interest-bearing liabilities and noninterest-bearing deposits (“Cost of Funds”)		7,046,428				3.01			6,782,201				2.89

Shareholders’ Equity:
Common stock		157,784							157,784
Additional paid-in capital		300,565							299,426
Retained earnings and other equity		406,057							387,362
Total shareholders’ equity		864,406							844,572
Total liabilities and shareholders’ equity	$	8,005,265						$	7,721,540
Net interest income				$	53,492						$	51,311

Net interest spread						1.92							1.91
Effect of net interest-free funding sources						0.90							0.93
Net interest margin						2.82	%						2.84	%
Ratio of average interest-earning assets to average interest-bearing liabilities		132.43	%						134.43	%

* Obligations of states and political subdivisions are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred costs amortization of $897 thousand and $698 thousand for the three months ended September 30, 2024 and June 30, 2024,, respectively.
Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the three months ended September 30, 2024 and June 30, 2024 have been calculated using the Corporation’s federal applicable rate of 21.0%.

Univest Financial Corporation
Average Balances and Interest Rates (Unaudited)
	For the Three Months Ended September 30,
Tax Equivalent Basis	2024							2023
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	270,724		$	3,624	5.33	%	$	143,109		$	1,865	5.17	%
Obligations of state and political subdivisions*		1,283			7	2.17			2,281			16	2.78
Other debt and equity securities		492,051			3,706	3.00			504,060			3,540	2.79
Federal Home Loan Bank, Federal Reserve Bank and other stock		38,769			742	7.61			40,406			712	6.99
Total interest-earning deposits, investments and other interest-earning assets		802,827			8,079	4.00			689,856			6,133	3.53

Commercial, financial, and agricultural loans		997,465			18,459	7.36			995,355			17,545	6.99
Real estate—commercial and construction loans		3,592,556			52,672	5.83			3,552,709			49,548	5.53
Real estate—residential loans		1,692,361			21,127	4.97			1,543,360			18,270	4.70
Loans to individuals		26,651			549	8.20			26,538			525	7.85
Tax-exempt loans and leases		232,159			2,565	4.40			234,685			2,430	4.11
Lease financings		189,599			3,275	6.87			184,522			2,928	6.30
Gross loans and leases		6,730,791			98,647	5.83			6,537,169			91,246	5.54
Total interest-earning assets		7,533,618			106,726	5.64			7,227,025			97,379	5.35
Cash and due from banks		62,902							62,673
Allowance for credit losses, loans and leases		(86,517	)						(83,827	)
Premises and equipment, net		47,989							52,071
Operating lease right-of-use assets		29,620							31,647
Other assets		417,653							404,394
Total assets	$	8,005,265						$	7,693,983

Liabilities:
Interest-bearing checking deposits	$	1,215,166		$	8,824	2.89	%	$	1,070,063		$	6,703	2.49	%
Money market savings		1,849,628			21,213	4.56			1,645,210			17,850	4.30
Regular savings		727,395			878	0.48			828,672			861	0.41
Time deposits		1,491,560			17,255	4.60			1,140,622			11,668	4.06
Total time and interest-bearing deposits		5,283,749			48,170	3.63			4,684,567			37,082	3.14

Short-term borrowings		8,210			1	0.05			93,028			1,117	4.76
Long-term debt		247,826			2,781	4.46			320,000			3,036	3.76
Subordinated notes		149,068			2,282	6.09			148,568			2,281	6.09
Total borrowings		405,104			5,064	4.97			561,596			6,434	4.55
Total interest-bearing liabilities		5,688,853			53,234	3.72			5,246,163			43,516	3.29
Noninterest-bearing deposits		1,357,575							1,538,143
Operating lease liabilities		32,627							34,788
Accrued expenses and other liabilities		61,804							63,374
Total liabilities		7,140,859							6,882,468
Total interest-bearing liabilities and noninterest-bearing deposits (“Cost of Funds”)		7,046,428				3.01			6,784,306				2.54

Shareholders’ Equity:
Common stock		157,784							157,784
Additional paid-in capital		300,565							299,575
Retained earnings and other equity		406,057							354,156
Total shareholders’ equity		864,406							811,515
Total liabilities and shareholders’ equity	$	8,005,265						$	7,693,983
Net interest income				$	53,492						$	53,863

Net interest spread						1.92							2.06
Effect of net interest-free funding sources						0.90							0.90
Net interest margin						2.82	%						2.96	%
Ratio of average interest-earning assets to average interest-bearing liabilities		132.43	%						137.76	%

* Obligations of states and political subdivisions are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred costs amortization of $897 thousand and $563 thousand for the three months ended September 30, 2024 and 2023, respectively.
Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the three months ended September 30, 2024 and 2023 have been calculated using the Corporation’s federal applicable rate of 21.0%.

Univest Financial Corporation
Average Balances and Interest Rates (Unaudited)
	For the Nine Months Ended September 30,
Tax Equivalent Basis	2024							2023
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	159,114		$	6,341	5.32	%	$	79,630		$	2,856	4.80	%
Obligations of state and political subdivisions*		1,500			26	2.32			2,284			48	2.81
Other debt and equity securities		494,310			11,094	3.00			511,420			10,547	2.76
Federal Home Loan Bank, Federal Reserve Bank and other stock		38,392			2,166	7.54			39,664			2,102	7.09
Total interest-earning deposits, investments and other interest-earning assets		693,316			19,627	3.78			632,998			15,553	3.29

Commercial, financial, and agricultural loans		972,003			52,429	7.21			997,590			50,002	6.70
Real estate—commercial and construction loans		3,572,375			153,890	5.75			3,447,551			137,929	5.35
Real estate—residential loans		1,657,142			61,095	4.92			1,478,871			51,216	4.63
Loans to individuals		26,928			1,639	8.13			26,859			1,453	7.23
Tax-exempt loans and leases		231,679			7,505	4.33			233,211			7,159	4.10
Lease financings		189,733			9,549	6.72			175,416			8,128	6.20
Gross loans and leases		6,649,860			286,107	5.75			6,359,498			255,887	5.38
Total interest-earning assets		7,343,176			305,734	5.56			6,992,496			271,440	5.19
Cash and due from banks		58,070							59,811
Allowance for credit losses, loans and leases		(86,435	)						(81,829	)
Premises and equipment, net		49,098							52,067
Operating lease right-of-use assets		30,359							31,384
Other assets		414,246							399,141
Total assets	$	7,808,514						$	7,453,070

Liabilities:
Interest-bearing checking deposits	$	1,163,526		$	24,353	2.80	%	$	980,725		$	15,259	2.08	%
Money market savings		1,749,592			59,564	4.55			1,532,318			43,020	3.75
Regular savings		752,336			2,712	0.48			900,448			2,375	0.35
Time deposits		1,384,576			47,019	4.54			845,635			22,231	3.51
Total time and interest-bearing deposits		5,050,030			133,648	3.54			4,259,126			82,885	2.60

Short-term borrowings		15,919			248	2.08			195,606			7,094	4.85
Long-term debt		263,380			8,441	4.28			245,366			6,438	3.51
Subordinated notes		148,944			6,844	6.14			148,444			6,844	6.16
Total borrowings		428,243			15,533	4.85			589,416			20,376	4.62
Total interest-bearing liabilities		5,478,273			149,181	3.64			4,848,542			103,261	2.85
Noninterest-bearing deposits		1,383,707							1,709,533
Operating lease liabilities		33,389							34,548
Accrued expenses and other liabilities		62,586							57,906
Total liabilities		6,957,955							6,650,529
Total interest-bearing liabilities and noninterest-bearing deposits (“Cost of Funds”)		6,861,980				2.90			6,558,075				2.11

Shareholders’ Equity:
Common stock		157,784							157,784
Additional paid-in capital		300,224							299,550
Retained earnings and other equity		392,551							345,207
Total shareholders’ equity		850,559							802,541
Total liabilities and shareholders’ equity	$	7,808,514						$	7,453,070
Net interest income				$	156,553						$	168,179

Net interest spread						1.92							2.34
Effect of net interest-free funding sources						0.93							0.88
Net interest margin						2.85	%						3.22	%
Ratio of average interest-earning assets to average interest-bearing liabilities		134.04	%						144.22	%

* Obligations of states and political subdivisions are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred costs amortization of $2.0 million and $1.7 million for the nine months ended September 30, 2024 and 2023, respectively.
Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the nine months ended September 30, 2024 and 2023 have been calculated using the Corporation’s federal applicable rate of 21.0%.

Univest Financial Corporation
Loan Portfolio Overview (Unaudited)
September 30, 2024

(Dollars in thousands)
Industry Description	Total Outstanding Balance		% of Commercial Loan Portfolio
CRE – Retail	$	458,230	8.6	%
Animal Production		384,554	7.2	%
CRE – Multi-family		340,181	6.4	%
CRE – 1-4 Family Residential Investment		295,454	5.6	%
CRE – Office		294,508	5.6	%
CRE – Industrial / Warehouse		254,019	4.8	%
Hotels & Motels (Accommodation)		186,130	3.5	%
Specialty Trade Contractors		180,486	3.4	%
Nursing and Residential Care Facilities		167,467	3.2	%
Education		167,282	3.2	%
Motor Vehicle and Parts Dealers		129,799	2.4	%
Repair and Maintenance		127,927	2.4	%
Merchant Wholesalers, Durable Goods		125,009	2.4	%
Homebuilding (tract developers, remodelers)		120,040	2.2	%
CRE – Mixed-Use – Residential		110,137	2.1	%
Crop Production		104,343	2.0	%
Wood Product Manufacturing		93,505	1.8	%
Food Services and Drinking Places		88,178	1.7	%
Real Estate Lenders, Secondary Market Financing		85,171	1.6	%
Rental and Leasing Services		79,876	1.5	%
Religious Organizations, Advocacy Groups		73,802	1.4	%
Fabricated Metal Product Manufacturing		72,794	1.4	%
CRE – Mixed-Use – Commercial		72,268	1.4	%
Administrative and Support Services		71,787	1.4	%
Personal and Laundry Services		71,184	1.3	%
Merchant Wholesalers, Nondurable Goods		69,363	1.3	%
Amusement, Gambling, and Recreation Industries		69,052	1.3	%
Miniwarehouse / Self-Storage		65,176	1.2	%
Food Manufacturing		61,472	1.1	%
Truck Transportation		52,570	1.0	%
Industries with >$50 million in outstandings	$	4,471,764	84.3	%
Industries with <$50 million in outstandings	$	830,652	15.7	%
Total Commercial Loans	$	5,302,416	100.0	%


Consumer Loans and Lease Financings	Total Outstanding Balance
Real Estate-Residential Secured for Personal Purpose		969,562
Real Estate-Home Equity Secured for Personal Purpose		182,901
Loans to Individuals		26,794
Lease Financings		249,061
Total – Consumer Loans and Lease Financings	$	1,428,318

Total	$	6,730,734

Univest Financial Corporation
Non-GAAP Reconciliation
September 30, 2024

Non-GAAP to GAAP Reconciliation
Management uses non-GAAP measures in its analysis of the Corporation’s performance. These measures should not be considered a substitute for GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of the non-GAAP financial measures, which exclude the impact of the specified items, provides useful supplemental information that is essential to a proper understanding of the financial results of the Corporation. See the table below for additional information on non-GAAP measures used throughout this earnings release.

	As of or for the three months ended,															As of or for the nine months ended,
(Dollars in thousands)	09/30/24			06/30/24			03/31/24			12/31/23			09/30/23			09/30/24			09/30/23
Restructuring charges (a)	$	–		$	–		$	–		$	189		$	–		$	–		$	1,330
Tax effect of restructuring charges		–			–			–			(40	)		–			–			(279	)
Restructuring charges, net of tax	$	–		$	–		$	–		$	149		$	–		$	–		$	1,051

Net income	$	18,578		$	18,107		$	20,305		$	16,254		$	17,016		$	56,990		$	54,850
Amortization of intangibles, net of tax		130			149			148			167			174			426			574
Net income before amortization of intangibles	$	18,708		$	18,256		$	20,453		$	16,421		$	17,190		$	57,416		$	55,424

Shareholders’ equity	$	877,071		$	854,137		$	843,669		$	839,208		$	807,198		$	877,071		$	807,198
Goodwill		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)
Other intangibles (b)		(2,147	)		(2,157	)		(2,273	)		(2,405	)		(2,558	)		(2,147	)		(2,558	)
Tangible common equity	$	699,414		$	676,470		$	665,886		$	661,293		$	629,130		$	699,414		$	629,130

Total assets	$	8,205,737		$	7,855,446		$	7,746,568		$	7,780,628		$	7,828,066		$	8,205,737		$	7,828,066
Goodwill		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)
Other intangibles (b)		(2,147	)		(2,157	)		(2,273	)		(2,405	)		(2,558	)		(2,147	)		(2,558	)
Tangible assets	$	8,028,080		$	7,677,779		$	7,568,785		$	7,602,713		$	7,649,998		$	8,028,080		$	7,649,998

Average shareholders’ equity	$	864,406		$	844,572		$	842,546		$	814,941		$	811,515		$	850,559		$	802,541
Average goodwill		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)
Average other intangibles (b)		(2,086	)		(2,222	)		(2,318	)		(2,477	)		(2,680	)		(2,209	)		(2,913	)
Average tangible common equity	$	686,810		$	666,840		$	664,718		$	636,954		$	633,325		$	672,840		$	624,118

(a) Associated with branch optimization and headcount rationlization expense management strategies
(b) Amount does not include mortgage servicing rights

The MIL Network –

January 25, 2025

MIL-OSI: ESCO Technologies Announces Fourth Quarter 2024 Earnings Release And Conference Call

Source: GlobeNewswire (MIL-OSI)

St. Louis, Oct. 23, 2024 (GLOBE NEWSWIRE) — ESCO Technologies Inc. (NYSE:ESE) will report its fourth quarter financial results after the market close on Thursday, November 14, 2024, followed by a conference call where the financial results and related commentary will be discussed.

Event: Fourth Quarter 2024 Conference Call
Date: Thursday, November 14
Time: 4:00 p.m. Central Time

The conference call webcast and an accompanying slide presentation will be available in the Investor Center of ESCO’s website. The slide presentation will be utilized during the call and will be posted on the website prior to the call. Participants may also access the webcast using this registration link.

For those unable to participate, a webcast replay will be available after the call in the Investor Center of ESCO’s website.

ESCO is a global provider of highly engineered products and solutions serving diverse end-markets. It manufactures filtration and fluid control products for the aviation, Navy, space, and process markets worldwide and composite-based products and solutions for Navy, defense, and industrial customers. ESCO is an industry leader in designing and manufacturing RF test and measurement products and systems; and provides diagnostic instruments, software and services to industrial power users and the electric utility and renewable energy industries. Headquartered in St. Louis, Missouri, ESCO and its subsidiaries have offices and manufacturing facilities worldwide. For more information on ESCO and its subsidiaries, visit the Company’s website at www.escotechnologies.com.

SOURCE ESCO Technologies Inc.
Kate Lowrey, Vice President of Investor Relations, (314) 213-7277

The MIL Network –

January 25, 2025

MIL-OSI: Greystone Housing Impact Investors LP Schedules Third Quarter 2024 Earnings Conference Call for Wednesday, November 6, 2024 at 4:30 p.m. Eastern Time

Source: GlobeNewswire (MIL-OSI)

OMAHA, Neb., Oct. 23, 2024 (GLOBE NEWSWIRE) — Greystone Housing Impact Investors LP (NYSE: GHI) (the “Partnership”) announced today that it will host a conference call for investors on Wednesday, November 6, 2024 at 4:30 p.m. Eastern Time to discuss the Partnership’s Third Quarter 2024 results.

For those interested in participating in the question-and-answer session, participants may dial-in toll free at (877) 407-8813. International participants may dial-in at +1 (201) 689-8521. No pin or code number is needed.

The call is also being webcast live in listen-only mode. The webcast can be accessed via the Partnership’s website under “Events & Presentations” or via the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=6F6i7Etd

It is recommended that you join 15 minutes before the conference call begins (although you may register, dial-in or access the webcast at any time during the call).

A recorded replay of the webcast will be made available on the Partnership’s Investor Relations website at http://www.ghiinvestors.com.

About Greystone Housing Impact Investors LP
Greystone Housing Impact Investors LP was formed in 1998 under the Delaware Revised Uniform Limited Partnership Act for the primary purpose of acquiring, holding, selling and otherwise dealing with a portfolio of mortgage revenue bonds which have been issued to provide construction and/or permanent financing for affordable multifamily, seniors and student housing properties. The Partnership is pursuing a business strategy of acquiring additional mortgage revenue bonds and other investments on a leveraged basis. The Partnership expects and believes the interest earned on these mortgage revenue bonds is excludable from gross income for federal income tax purposes. The Partnership seeks to achieve its investment growth strategy by investing in additional mortgage revenue bonds and other investments as permitted by its Second Amended and Restated Limited Partnership Agreement, dated December 5, 2022, taking advantage of attractive financing structures available in the securities market, and entering into interest rate risk management instruments. Greystone Housing Impact Investors LP press releases are available at www.ghiinvestors.com.

Safe Harbor Statement

Information contained in this press release contains “forward-looking statements,” which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, but are not limited to, risks involving current maturities of our financing arrangements and our ability to renew or refinance such maturities, fluctuations in short-term interest rates, collateral valuations, mortgage revenue bond investment valuations and overall economic and credit market conditions. For a further list and description of such risks, see the reports and other filings made by the Partnership with the Securities and Exchange Commission, including but not limited to, its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Readers are urged to consider these factors carefully in evaluating the forward-looking statements. The Partnership disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT:
Ken Rogozinski
Chief Executive Officer
402-952-1235

The MIL Network –

January 25, 2025

MIL-OSI: Origin Bancorp, Inc. Announces Declaration of Quarterly Cash Dividend

Source: GlobeNewswire (MIL-OSI)

RUSTON, La., Oct. 23, 2024 (GLOBE NEWSWIRE) — Origin Bancorp, Inc. (NYSE: OBK) (“Origin”), the holding company for Origin Bank, today announced that on October 23, 2024, its board of directors declared a quarterly cash dividend of $0.15 per share of its common stock. The cash dividend will be paid on November 29, 2024, to stockholders of record as of the close of business on November 15, 2024.

About Origin Bancorp, Inc.

Origin Bancorp, Inc. is a financial holding company headquartered in Ruston, Louisiana. Origin’s wholly owned bank subsidiary, Origin Bank, was founded in 1912 in Choudrant, Louisiana. Deeply rooted in Origin’s history is a culture committed to providing personalized relationship banking to businesses, municipalities, and personal clients to enrich the lives of the people in the communities it serves. Origin provides a broad range of financial services and currently operates more than 60 locations from Dallas/Fort Worth, East Texas, Houston, North Louisiana, Mississippi, South Alabama and the Florida Panhandle. For more information, visit www.origin.bank.

Forward-Looking Statements

When used in filings by Origin Bancorp, Inc. (the “Company”) with the Securities and Exchange Commission (the “SEC”), in the Company’s press releases or other public or stockholder communications, and in oral statements made with the approval of an authorized executive officer, the words or phrases “anticipates,” “believes,” “estimates,” “expects,” “foresees,” “intends,” “plans,” “projects,” and similar expressions or future or conditional verbs such as “could,” “may,” “might,” “should,” “will,” and “would” or variations of such terms are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. Factors that might cause such a difference include among other things: the expected payment date of its quarterly cash dividend; changes in economic conditions; other legislative changes generally; changes in policies by regulatory agencies; fluctuations in interest rates; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses; the Company’s ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in the Company’s market area; competition; and changes in management’s business strategies and other factors set forth in the Company’s filings with the SEC.

The Company does not undertake and specifically declines any obligation – to update or revise any forward-looking statements to reflect events or circumstances that occur after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

Contact Information
Investor Relations
Chris Reigelman
318-497-3177
chris@origin.bank

Media Contact
Ryan Kilpatrick
318-232-7472
rkilpatrick@origin.bank

The MIL Network –

January 25, 2025

MIL-OSI: Bel Reports Third Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

Sales and Gross Margin Percentage Above Mid-Point of Expected Ranges
Provides Q4-24 Sales and Gross Margin Guidance

WEST ORANGE, N.J., Oct. 23, 2024 (GLOBE NEWSWIRE) — Bel Fuse Inc. (Nasdaq: BELFA and BELFB) today announced preliminary financial results for the third quarter of 2024.

Third Quarter 2024 Highlights

Net sales of $123.6 million compared to $158.7 million in Q3-23
Gross profit margin of 36.1%, up from 35.0% in Q3-23
Net earnings of $8.1 million versus $19.4 million in Q3-23
Adjusted EBITDA of $20.6 million (16.7% of sales) as compared to $29.9 million (18.8% of sales) in Q3-23
Repurchased 26,647 shares of Bel stock at an aggregate cost of $1.9 million in Q3-24

“We were pleased that our third quarter results landed above the midpoint of guidance for both sales and gross margin,” said Daniel Bernstein, President and CEO. “Each of our three product segments performed as expected, given the current market, regulatory and seasonal factors outlined in last quarter’s disclosures and on the Q2 earnings call.

“During the third quarter, the team focused on a variety of operational and other internal initiatives. With our announcement of the signing our definitive purchase agreement in September, we welcomed Enercon to the Bel family and are positioned to introduce new customers, end markets and geographies to our Power segment upon the closing expected later this quarter. In a project scheduled to be completed during the first quarter of 2025, our fuse manufacturing, located in China, will be consolidated into other existing Bel facilities thus reducing our footprint further. The fuse initiative is anticipated to achieve annual cost savings of approximately $1.5 million once completed. We are also pleased to announce the addition of two senior associates in newly-created positions to Bel’s corporate team. Uma Pengali has joined as Global Head of Sales and Marketing and Anubhav Gothi has joined as Bel’s Global Head of Contracts. We believe Uma and Anubhav will be instrumental contributors to Bel’s long-term success,” concluded Mr. Bernstein.

Farouq Tuweiq, CFO, added, “We have started to see positive trends in bookings during the months of September and October across each of our product segments, which is a positive indicator as we enter 2025. These green shoots are largely in our networking and industrial markets, and in the distribution channel. Looking to the fourth quarter of 2024, we expect GAAP net sales in the range of $117 to $125 million with gross margins of approximately 34 – 36%, based on information available as of today. This guidance excludes any potential incremental contribution related to the previously-announced acquisition of Enercon, which is expected to close during the fourth quarter.

“Overall, we are encouraged by the sequential improvement in market conditions that we are seeing and believe this will bode well for 2025. We are excited to continue our journey of growth and continuous improvement with our new team members,” concluded Mr. Tuweiq.

Non-GAAP financial measures, such as Non-GAAP net earnings, Non-GAAP EPS, EBITDA and Adjusted EBITDA, adjust corresponding GAAP measures for provision for income taxes, interest expense, and depreciation and amortization, and also exclude, where applicable for the covered period presented in the financial statements, certain unusual or special items identified by management such as restructuring charges, gains/losses on sales of businesses and properties, acquisition related costs, and certain litigation costs. Non-GAAP adjusted net sales exclude expedite fee revenue. Please refer to the financial information included with this press release for reconciliations of GAAP financial measures to Non-GAAP financial measures and our explanation of why we present Non-GAAP financial measures.

Conference Call
Bel has scheduled a conference call for 8:30 a.m. ET on Thursday, October 24, 2024 to discuss these results. To participate in the conference call, investors should dial 877-407-0784, or 201-689-8560 if dialing internationally. The presentation will additionally be broadcast live over the Internet and will be available at https://ir.belfuse.com/events-and-presentations. The webcast will be available via replay for a period of at least 30 days at this same Internet address. For those unable to access the live call, a telephone replay will be available at 844-512-2921, or 412-317-6671 if dialing internationally, using access code 13749258 after 12:30 pm ET, also for 30 days.

About Bel
Bel (www.belfuse.com) designs, manufactures and markets a broad array of products that power, protect and connect electronic circuits. These products are primarily used in the networking, telecommunications, computing, general industrial, high-speed data transmission, military, commercial aerospace, transportation and eMobility industries. Bel’s portfolio of products also finds application in the automotive, medical, broadcasting and consumer electronics markets. Bel’s product groups include Magnetic Solutions (integrated connector modules, power transformers, power inductors and discrete components), Power Solutions and Protection (front-end, board-mount and industrial power products, module products and circuit protection), and Connectivity Solutions (expanded beam fiber optic, copper-based, RF and RJ connectors and cable assemblies). The Company operates facilities around the world.

Company Contact:
Farouq Tuweiq
Chief Financial Officer
ir@belf.com

Investor Contact:
Three Part Advisors
Jean Marie Young, Managing Director or Steven Hooser, Partner
631-418-4339
jyoung@threepa.com; shooser@threepa.com

Cautionary Language Concerning Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, our guidance for the fourth quarter of 2024, and our statements regarding our expectations for future periods generally including anticipated financial performance, projections and trends for the remainder of the year and other future periods including 2025, and our statements regarding future events, performance, plans, intentions, beliefs, expectations and estimates, including statements regarding matters such as trends and expectations as to our sales, gross margin, products, product segments, customers, end markets, geographies and bookings, statements regarding our views and expectations about the impact of market trends and seasonal factors, statements about the closing of the Enercon Technologies, Ltd. (“Enercon”) acquisition including the anticipated timing thereof, and statements about the anticipated benefits and impact of the Enercon acquisition including in terms of introducing new customers, end markets and geographies to our Power segment, as well as any potential incremental contribution by Enercon post-closing to Bel’s financial results, statements regarding consolidation projects and initiatives, the expected timing of implementation and completion thereof, and the anticipated projections of cost savings to be realized thereby, statements about future contributions of new employees and the role of newly-created positions in the corporate team in contributing to Bel’s long-term success, statements regarding our expectations and beliefs regarding trends in the Company’s business and industry and the markets in which Bel operates, and about the broader economy and macroeconomic environment generally, including statements about trends in bookings and views about indicators of economic conditions including as to particular sectors or markets, improvement in market conditions, and statements about Bel’s growth and improvement, and other statements regarding the Company’s positioning, its strategies, future progress, investments, plans, targets, goals, and other focuses and initiatives, and the expected timing and potential benefits thereof. These forward-looking statements are made as of the date of this release and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “forecast,” “outlook,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Bel’s control. Bel’s actual results could differ materially from those stated or implied in our forward-looking statements (including without limitation any of Bel’s projections) due to a number of factors, including but not limited to, unanticipated difficulties, delays or expenditures relating to the proposed Enercon acquisition, including, without limitation, difficulties that result in the failure to realize the expected benefits and synergies within the expected time period (if at all); disruptions of Bel’s or Enercon’s current plans, operations and relationships with customers, suppliers, distributors, business partners and regulators caused by the announcement and pendency of the proposed Enercon acquisition; potential difficulties in employee retention due to the announcement and pendency of the proposed Enercon acquisition; the possibility that the proposed Enercon acquisition does not close, including, but not limited to, failure to satisfy the closing conditions; the market concerns facing our customers, and risks for the Company’s business in the event of the loss of certain substantial customers; the continuing viability of sectors that rely on our products; the effects of business and economic conditions, and challenges impacting the macroeconomic environment generally and/or our industry in particular; the effects of rising input costs, and cost changes generally, including the potential impact of inflationary pressures; difficulties associated with integrating previously acquired companies, and any difficulties that may be experienced in integrating Enercon following the closing of the Enercon acquisition; capacity and supply constraints or difficulties, including supply chain constraints or other challenges; the impact of public health crises (such as the governmental, social and economic effects of COVID or other future epidemics or pandemics); difficulties associated with the availability of labor, and the risks of any labor unrest or labor shortages; risks associated with our international operations, including our substantial manufacturing operations in China, and following the acquisition of Enercon, risks associated with operations in Israel, which may be adversely affected by political or economic instability, major hostilities or acts of terrorism in the region; risks associated with restructuring programs or other strategic initiatives, including any difficulties in implementation or realization of the expected benefits or cost savings; product development, commercialization or technological difficulties; the regulatory and trade environment including the potential effects of trade restrictions that may impact Bel, its customers and/or its suppliers; risks associated with fluctuations in foreign currency exchange rates and interest rates; uncertainties associated with legal proceedings; the market’s acceptance of the Company’s new products and competitive responses to those new products; the impact of changes to U.S. and applicable foreign legal and regulatory requirements, including tax laws, trade and tariff policies; and the risks detailed in Bel’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and in subsequent reports filed by Bel with the Securities and Exchange Commission, as well as other documents that may be filed by Bel from time to time with the Securities and Exchange Commission. In light of the risks and uncertainties impacting our business, there can be no assurance that any forward-looking statement will in fact prove to be correct. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent Bel’s views as of the date of this press release. Bel anticipates that subsequent events and developments will cause its views to change. Bel undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Bel’s views as of any date subsequent to the date of this press release.

Non-GAAP Financial Measures
The Non-GAAP financial measures identified in this press release as well as in the supplementary information to this press release (Non-GAAP adjusted net sales, Non-GAAP net earnings, Non-GAAP EPS, EBITDA and Adjusted EBITDA) are not measures of performance under accounting principles generally accepted in the United States of America (“GAAP”). These measures should not be considered a substitute for, and the reader should also consider, income from operations, net earnings, earnings per share and other measures of performance as defined by GAAP as indicators of our performance or profitability. Our non-GAAP measures may not be comparable to other similarly-titled captions of other companies due to differences in the method of calculation. We present results adjusted to exclude the effects of certain unusual or special items and their related tax impact that would otherwise be included under U.S. GAAP, to aid in comparisons with other periods. We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. We use these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. We also believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other similarly situated companies in our industry, many of which present similar non-GAAP financial measures to investors. We also use non-GAAP measures in determining incentive compensation. For additional information about our use of non-GAAP financial measures in connection with our Incentive Compensation Program for 2023, please see the Executive Compensation discussion appearing in our Definitive Proxy Statement filed with the Securities and Exchange Commission on April 1, 2024.

Website Information
We routinely post important information for investors on our website, www.belfuse.com, in the “Investor Relations” section. We use our website as a means of disclosing material, otherwise non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, Securities and Exchange Commission (SEC) filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

[Financial tables follow]



Bel Fuse Inc. Supplementary Information⁽¹⁾ Condensed Consolidated Statements of Operations (in thousands, except per share amounts) (unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023

Net sales	$	123,638		$	158,682		$	384,933		$	499,803
Cost of sales		78,961			103,217			238,782			335,137
Gross profit		44,677			55,465			146,151			164,666
As a % of net sales		36.1	%		35.0	%		38.0	%		32.9	%

Research and development costs		5,443			5,292			16,652			16,521
Selling, general and administrative expenses		26,700			23,717			75,785			74,149
As a % of net sales		21.6	%		14.9	%		19.7	%		14.8	%
Restructuring charges		1,087			2,091			1,790			6,306
Gain on sale of property		–			(147	)		–			(3,819	)
Income from operations		11,447			24,512			51,924			71,509
As a % of net sales		9.3	%		15.4	%		13.5	%		14.3	%

Gain on sale of Czech Republic business		–			(135	)		–			980
Interest expense		(414	)		(512	)		(1,263	)		(2,402	)
Interest income		1,480			–			3,741			–
Other income/expense, net		(1,325	)		(96	)		21			(286	)
Earnings before income taxes		11,188			23,769			54,423			69,801

Provision for income taxes		3,108			4,321			11,663			8,006
Effective tax rate		27.8	%		18.2	%		21.4	%		11.5	%
Net earnings	$	8,080		$	19,448		$	42,760		$	61,795
As a % of net sales		6.5	%		12.3	%		11.1	%		12.4	%

Weighted average number of shares outstanding:
Class A common shares – basic and diluted		2,116			2,142			2,126			2,142
Class B common shares – basic and diluted		10,434			10,636			10,512			10,636

Net earnings per common share:
Class A common shares – basic and diluted	$	0.61		$	1.46		$	3.23		$	4.63
Class B common shares – basic and diluted	$	0.65		$	1.54		$	3.41		$	4.88

(1) The supplementary information included in this press release for 2024 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.


Bel Fuse Inc. Supplementary Information⁽¹⁾ Condensed Consolidated Balance Sheets (in thousands, unaudited)

	September 30, 2024		December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	134,266	$	89,371
Held to maturity U.S. Treasury securities		29,541		37,548
Accounts receivable, net		75,998		84,129
Inventories		124,885		136,540
Other current assets		22,959		33,890
Total current assets		387,649		381,478
Property, plant and equipment, net		36,735		36,533
Right-of-use assets		22,901		20,481
Related-party note receivable		3,070		2,152
Equity method investment		10,014		10,282
Goodwill and other intangible assets, net		72,772		76,033
Other assets		51,276		44,672
Total assets	$	584,417	$	571,631

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	37,139	$	40,441
Operating lease liability, current		6,451		6,350
Other current liabilities		53,297		63,818
Total current liabilities		96,887		110,609
Long-term debt		60,000		60,000
Operating lease liability, long-term		16,808		14,212
Other liabilities		43,360		46,252
Total liabilities		217,055		231,073
Stockholders’ equity		367,362		340,558
Total liabilities and stockholders’ equity	$	584,417	$	571,631

(1) The supplementary information included in this press release for 2024 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.


Bel Fuse Inc. Supplementary Information⁽¹⁾ Condensed Consolidated Statements of Cash Flows (in thousands, unaudited)

	Nine Months Ended
	September 30,
	2024			2023

Cash flows from operating activities:
Net earnings	$	42,760		$	61,795
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		10,759			9,962
Stock-based compensation		2,782			2,712
Amortization of deferred financing costs		27			33
Deferred income taxes		(5,366	)		(4,894	)
Net unrealized losses on foreign currency revaluation		1,275			130
Gain on sale of property		–			(3,819	)
Gain on sale of Czech Republic business		–			(980	)
Other, net		628			(495	)
Changes in operating assets and liabilities:
Accounts receivable, net		8,366			11,931
Unbilled receivables		7,482			1,590
Inventories		12,266			29,313
Accounts payable		(3,302	)		(18,674	)
Accrued expenses		(11,849	)		4,536
Accrued restructuring costs		(590	)		(148	)
Income taxes payable		4,809			2,008
Other operating assets/liabilities, net		(4,327	)		(13,575	)
Net cash provided by operating activities		65,720			81,425

Cash flows from investing activities:
Purchases of property, plant and equipment		(7,906	)		(9,659	)
Purchases of held to maturity U.S. Treasury securities		(131,309	)		–
Proceeds from held to maturity securities		139,316			–
Payment for equity method investment		–			(9,975	)
Investment in related party notes receivable		(918	)		(1,905	)
Proceeds from sale of property, plant and equipment		236			5,403
Proceeds from sale of business		–			5,063
Net cash used in investing activities		(581	)		(11,073	)

Cash flows from financing activities:
Dividends paid to common stockholders		(2,487	)		(2,490	)
Deferred financing costs		(330	)		–
Repayments under revolving credit line		–			(40,000	)
Borrowings under revolving credit line		–			5,000
Purchases of common stock		(16,053	)		–
Net cash used in financing activities		(18,870	)		(37,490	)

Effect of exchange rate changes on cash and cash equivalents		(1,374	)		(2,903	)

Net increase in cash and cash equivalents		44,895			29,959
Cash and cash equivalents – beginning of period		89,371			70,266
Cash and cash equivalents – end of period	$	134,266		$	100,225


Supplementary information:
Cash paid during the period for:
Income taxes, net of refunds received	$	15,556		$	18,148
Interest payments	$	3,010		$	3,738
ROU assets obtained in exchange for lease obligations	$	4,711		$	5,887

(1) The supplementary information included in this press release for 2024 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.


Bel Fuse Inc. Supplementary Information⁽¹⁾ Product Group Highlights (dollars in thousands, unaudited)

	Sales							Gross Margin
	Q3-24		Q3-23		% Change			Q3-24			Q3-23			Basis Point Change
Power Solutions and Protection	$	48,680	$	74,862		-35.0	%		39.4	%		41.7	%		(230	)
Connectivity Solutions		55,715		51,771		7.6	%		36.6	%		35.8	%		80
Magnetic Solutions		19,243		32,049		-40.0	%		27.3	%		22.0	%		530
Total	$	123,638	$	158,682		-22.1	%		36.1	%		35.0	%		110

	Sales							Gross Margin
	YTD September 2024		YTD September 2023		% Change			YTD September 2024			YTD September 2023			Basis Point Change
Power Solutions and Protection	$	167,478		245,134		-31.7	%		43.2	%		37.5	%		570
Connectivity Solutions		167,822		160,010		4.9	%		37.3	%		35.8	%		150
Magnetic Solutions		49,633		94,659		-47.6	%		23.9	%		23.0	%		90
Total	$	384,933	$	499,803		-23.0	%		38.0	%		32.9	%		510

(1) The supplementary information included in this press release for 2024 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.

Bel Fuse Inc.
Supplementary Information⁽¹⁾
Reconciliation of GAAP Net Sales to Non-GAAP Adjusted Net Sales⁽²⁾
Reconciliation of GAAP Net Earnings to EBITDA and Adjusted EBITDA⁽²⁾
(in thousands, unaudited)

Three Months Ended

Nine Months Ended

September 30,

2024

2023

2024

2023

GAAP net sales

$

123,638

$

158,682

$

384,933

$

499,803

Expedite fee revenue

–

1,008

57

14,425

Non-GAAP adjusted net sales

$

123,638

$

157,674

$

384,876

$

485,378

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023

GAAP Net earnings	$	8,080		$	19,448		$	42,760		$	61,795
Interest expense		414			512			1,263			2,402
Provision for income taxes		3,108			4,321			11,663			8,006
Depreciation and amortization		3,636			3,391			10,759			9,962
EBITDA	$	15,238		$	27,672		$	66,445		$	82,165
% of net sales		12.3	%		17.4	%		17.3	%		16.4	%

Unusual or special items:
Restructuring charges		1,087			2,091			1,790			6,306
MPS litigation costs		–			132			–			2,903
Gain on sale of Czech Republic business		–			135			–			(980	)
Gain on sale of properties		–			(147	)		–			(3,819	)
Acquisition related costs		4,292			–			4,292			–
Adjusted EBITDA	$	20,617		$	29,883		$	72,527		$	86,575
% of net sales		16.7	%		18.8	%		18.8	%		17.3	%

(1) The supplementary information included in this press release for 2024 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
(2) In this press release and supplemental information, we have included Non-GAAP financial measures, including Non-GAAP adjusted net sales, Non-GAAP net earnings, Non-GAAP EPS, EBITDA and Adjusted EBITDA. We present results adjusted to exclude the effects of certain specified items and their related tax impact that would otherwise be included under GAAP, to aid in comparisons with other periods. We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. We use these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. We also believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other similarly situated companies in our industry, many of which present similar non-GAAP financial measures to investors. We also use non-GAAP measures in determining incentive compensation. See the section above captioned “Non-GAAP Financial Measures” for additional information.


Bel Fuse Inc. Supplementary Information⁽¹⁾ Reconciliation of GAAP Measures to Non-GAAP Measures⁽²⁾ (in thousands, except per share data) (unaudited)

The following tables detail the impact that certain unusual or special items had on the Company’s net earnings per common Class A and Class B basic and diluted shares (“EPS”) and the line items in which these items were included on the consolidated statements of operations.

	Three Months Ended September 30, 2024										Three Months Ended September 30, 2023
Reconciling Items	Earnings before taxes		Provision for income taxes		Net earnings		Class A EPS⁽³⁾		Class B EPS⁽³⁾		Earnings before taxes			Provision for income taxes			Net earnings			Class A EPS⁽³⁾			Class B EPS⁽³⁾

GAAP measures	$	11,188	$	3,108	$	8,080	$	0.61	$	0.65	$	23,769		$	4,321		$	19,448		$	1.46		$	1.54
Restructuring charges		1,087		154		933		0.07		0.07		2,091			407			1,684			0.13			0.13
MPS litigation costs		–		–		–		–		–		132			30			102			0.01			0.01
Gain on sale of Czech Republic business		–		–		–		–		–		135			7			128			0.01			0.01
Gain on sale of properties		–		–		–		–		–		(147	)		(29	)		(118	)		(0.01	)		(0.01	)
Acquisition related costs		4,292		987		3,305		0.25		0.27		–			–			–			–			–
Non-GAAP measures	$	16,567	$	4,249	$	12,318	$	0.94	$	0.99	$	25,980		$	4,736		$	21,244		$	1.59		$	1.68

	Nine Months Ended September 30, 2024										Nine Months Ended September 30, 2023
Reconciling Items	Earnings before taxes		Provision for income taxes		Net earnings		Class A EPS(3)		Class B EPS(3)		Earnings before taxes			Provision for income taxes			Net earnings			Class A EPS(3)			Class B EPS(3)

GAAP measures	$	54,423	$	11,663	$	42,760	$	3.23	$	3.41	$	69,801		$	8,006		$	61,795		$	4.63		$	4.88
Restructuring charges		1,790		317		1,473		0.11		0.12		6,306			1,007			5,299			0.40			0.42
MPS litigation costs		–		–		–		–		–		2,903			667			2,236			0.17			0.18
Gain on sale of Czech Republic business		–		–		–		–		–		(980	)		(49	)		(931	)		(0.07	)		(0.07	)
Gain on sale of properties		–		–		–		–		–		(3,819	)		(763	)		(3,056	)		(0.23	)		(0.24	)
Acquisition related costs		4,292		987		3,305		0.25		0.26		–			–			–			–			–
Non-GAAP measures	$	60,505	$	12,967	$	47,538	$	3.59	$	3.80	$	74,211		$	8,868		$	65,343		$	4.89		$	5.16

⁽¹⁾ The supplementary information included in this press release for 2024 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
⁽²⁾ In this press release and supplemental information, we have included Non-GAAP financial measures, including Non-GAAP adjusted net sales, Non-GAAP net earnings, Non-GAAP EPS, EBITDA and Adjusted EBITDA. We present results adjusted to exclude the effects of certain specified items and their related tax impact that would otherwise be included under GAAP, to aid in comparisons with other periods. We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. We use these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. We also believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other similarly situated companies in our industry, many of which present similar non-GAAP financial measures to investors. We also use non-GAAP measures in determining incentive compensation. See the section above captioned “Non-GAAP Financial Measures” for additional information.
⁽³⁾ Individual amounts of earnings per share may not agree to the total due to rounding.

The MIL Network –

January 25, 2025

MIL-OSI: NCS Multistage Holdings, Inc. Schedules Third Quarter 2024 Earnings Release and Conference Call

Source: GlobeNewswire (MIL-OSI)

HOUSTON, Oct. 23, 2024 (GLOBE NEWSWIRE) — NCS Multistage Holdings, Inc. (“NCS” or the “Company”) (NASDAQ:NCSM) will host a conference call to discuss its third quarter 2024 results on Thursday, October 31, 2024 at 7:30 a.m. Central Time (8:30 a.m. Eastern Time). NCS will issue its third quarter 2024 earnings release the evening prior to the conference call.

The conference call will be available via a live audio webcast. Participants who wish to ask questions may register for the call here to receive the dial-in numbers and unique PIN. If you wish to join the conference call but do not plan to ask questions, you may join the listen-only webcast here. It is recommended that participants join at least 10 minutes prior to the event start. The replay will be available in the Investors section of the Company’s website shortly after the conclusion of the call and will remain available for approximately seven days.

NCS Multistage Holdings, Inc. is a leading provider of highly engineered products and support services that facilitate the optimization of oil and natural gas well construction, well completions and field development strategies. NCS provides products and services primarily to exploration and production companies for use in onshore and offshore wells, predominantly wells that have been drilled with horizontal laterals in both unconventional and conventional oil and natural gas formations. NCS’s products and services are utilized in oil and natural gas basins throughout North America and in selected international markets, including the North Sea, the Middle East, Argentina and China. NCS’s common stock is traded on the Nasdaq Capital Market under the symbol “NCSM.” Additional information is available on the website, www.ncsmultistage.com.

Contact:
Mike Morrison
Chief Financial Officer and Treasurer
+1 281-453-2222
IR@ncsmultistage.com

The MIL Network –

January 25, 2025

MIL-OSI: Brookline Bancorp Announces Third Quarter Results

Source: GlobeNewswire (MIL-OSI)

Net Income of $20.1 million, EPS of $0.23

Quarterly Dividend of $0.135

BOSTON, Oct. 23, 2024 (GLOBE NEWSWIRE) — Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income and operating earnings after tax (non-GAAP) of $20.1 million, or $0.23 per basic and diluted share, for the third quarter of 2024, compared to net income of $16.4 million, or $0.18 per basic and diluted share, and operating earnings after tax (non-GAAP) of $17.0 million, or $0.19 per basic and diluted share, for the second quarter of 2024, and net income and operating earnings after tax (non-GAAP) of $22.7 million, or $0.26 per basic and diluted share, for the third quarter of 2023.

“Our Company experienced improved performance in the third quarter,” commented Paul Perrault, Chairman and CEO, who continued, “As we move into the final months of 2024, we are confident our experienced bankers’ ability to continue to deliver exceptional service to our customers will be better reflected in our profitability as interest rates normalize.”

BALANCE SHEET

Total assets at September 30, 2024 were $11.7 billion, representing an increase of $41.4 million from $11.6 billion at June 30, 2024, and an increase of $496.2 million from September 30, 2023. At September 30, 2024, total loans and leases were $9.8 billion, representing an increase of $34.1 million from June 30, 2024, and an increase of $374.5 million from September 30, 2023.

Total investment securities at September 30, 2024 decreased $1.0 million to $855.4 million from $856.4 million at June 30, 2024, and decreased $25.0 million from $880.4 million at September 30, 2023. Total cash and cash equivalents at September 30, 2024 increased $64.8 million to $407.9 million from $343.1 million at June 30, 2024, and increased $246.9 million from $161.0 million at September 30, 2023. As of September 30, 2024, total investment securities and total cash and cash equivalents represented 10.8 percent of total assets, compared to 10.3 percent and 9.3 percent as of June 30, 2024 and September 30, 2023, respectively.

Total deposits at September 30, 2024 decreased $4.8 million to $8.7 billion from June 30, 2024. Despite the decrease during the quarter, customer deposits increased $103.2 million, offset by a $107.9 million decrease in brokered deposits. Total deposits increased $166.3 million from $8.6 billion at September 30, 2023, primarily driven by growth in customer deposits. The increase in customer deposits quarter to date included a $43.5 million increase in demand checking accounts.

Total borrowed funds at September 30, 2024 increased $68.1 million to $1.5 billion from June 30, 2024, and increased $362.5 million from $1.1 billion at September 30, 2023.

The ratio of stockholders’ equity to total assets was 10.54 percent at September 30, 2024, compared to 10.30 percent at June 30, 2024, and 10.36 percent at September 30, 2023. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 8.50 percent at September 30, 2024, as compared to 8.23 percent at June 30, 2024, and 8.16 percent at September 30, 2023. Tangible book value per common share (non-GAAP) increased $0.36 from $10.53 at June 30, 2024 to $10.89 at September 30, 2024, and increased $0.87 from $10.02 at September 30, 2023.

NET INTEREST INCOME

Net interest income increased $3.0 million to $83.0 million during the third quarter of 2024 from $80.0 million for the quarter ended June 30, 2024. The net interest margin increased 7 basis points to 3.07 percent for the three months ended September 30, 2024 from 3.00 percent for the three months ended June 30, 2024, primarily driven by higher yields on loans and leases partially offset by higher funding costs.

NON-INTEREST INCOME

Total non-interest income for the quarter ended September 30, 2024 decreased $0.1 million to $6.3 million from $6.4 million for the quarter ended June 30, 2024.

PROVISION FOR CREDIT LOSSES

The Company recorded a provision for credit losses of $4.8 million for the quarter ended September 30, 2024, compared to $5.6 million for the quarter ended June 30, 2024. The decrease in provision was largely driven by improving economic forecasts partially offset by an increase in specific reserves on nonperforming credits.

Total net charge-offs for the third quarter of 2024 were $3.8 million, compared to $8.4 million in the second quarter of 2024. The $3.8 million in net charge-offs was driven by $2.6 million in equipment financing, largely within specialty vehicle. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 16 basis points for the third quarter of 2024 from 35 basis points for the second quarter of 2024.

The allowance for loan and lease losses represented 1.31 percent of total loans and leases at September 30, 2024, compared to 1.25 percent at June 30, 2024, and 1.27 percent at September 30, 2023.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.73 percent at September 30, 2024, an increase from 0.62 percent at June 30, 2024. Total nonaccrual loans and leases increased $10.5 million to $71.2 million at September 30, 2024 from $60.7 million at June 30, 2024. The increase was driven by one equipment financing relationship of $9.3 million which has been reserved at 55 percent. The ratio of nonperforming assets to total assets was 0.62 percent at September 30, 2024, an increase from 0.54 percent at June 30, 2024. Total nonperforming assets increased $10.1 million to $72.8 million at September 30, 2024 from $62.7 million at June 30, 2024.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended September 30, 2024 decreased $1.2 million to $57.9 million from $59.2 million for the quarter ended June 30, 2024. Excluding the one time restructuring charge taken in the second quarter of $0.8 million, non-interest expense decreased $0.4 million primarily due to a reduction in advertising and marketing expense.

PROVISION FOR INCOME TAXES

The effective tax rate was 24.7 percent and 24.6 percent for the three and nine months ended September 30, 2024 compared to 24.4 percent for the three months ended June 30, 2024 and 21.4 percent and 20.3 percent for the three and nine months ended September 30, 2023.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets increased to 0.70 percent during the third quarter 2024 from 0.57 percent for the second quarter of 2024.

The annualized return on average stockholders’ equity increased to 6.63 percent during the third quarter of 2024 from 5.49 percent for the second quarter of 2024. The annualized return on average tangible stockholders’ equity increased to 8.44 percent for the third quarter of 2024 from 7.04 percent for the second quarter of 2024.

DIVIDEND DECLARED

The Company’s Board of Directors approved a dividend of $0.135 per share for the quarter ended September 30, 2024. The dividend will be paid on November 29, 2024 to stockholders of record on November 15, 2024.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, October 24, 2024 to discuss the results for the quarter, business highlights and outlook. A copy of the Earnings Presentation is available on the Company’s website, www.brooklinebancorp.com. To listen to the call and view the Company’s Earnings Presentation, please join the call via https://events.q4inc.com/attendee/314623001. To listen to the call without access to the slides, interested parties may dial 833-470-1428 (United States) or 404-975-4839 (internationally) and ask for the Brookline Bancorp, Inc. conference call (Access Code 414186). A recorded playback of the call will be available for one week following the call on the Company’s website under “Investor Relations” or by dialing 866-813-9403 (United States) or 929-458-6194 (internationally) and entering the passcode: 898921.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with $11.7 billion in assets and branch locations in Massachusetts, Rhode Island, and the Lower Hudson Valley of New York State, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank, Bank Rhode Island, and PCSB Bank (the “banks”). The Company provides commercial and retail banking services, cash management and investment services to customers throughout Central New England and the Lower Hudson Valley of New York State. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com, www.bankri.com and www.pcsb.com.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission (“SEC”), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters, including statements regarding the Company’s business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements may differ, possibly materially, from what is included in this press release due to factors and future developments that are uncertain and beyond the scope of the Company’s control. These include, but are not limited to, changes in interest rates; general economic conditions (including inflation and concerns about liquidity) on a national basis or in the local markets in which the Company operates; turbulence in the capital and debt markets; competitive pressures from other financial institutions; changes in consumer behavior due to changing political, business and economic conditions, or legislative or regulatory initiatives; changes in the value of securities and other assets in the Company’s investment portfolio; increases in loan and lease default and charge-off rates; the adequacy of allowances for loan and lease losses; decreases in deposit levels that necessitate increases in borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters, and future pandemics; changes in regulation; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions and adverse economic developments; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; and changes in assumptions used in making such forward-looking statements. Forward-looking statements involve risks and uncertainties which are difficult to predict. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company’s Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the SEC. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

BASIS OF PRESENTATION

The Company’s consolidated financial statements have been prepared in conformity with generally accepted accounting principles (“GAAP”) as set forth by the Financial Accounting Standards Board in its Accounting Standards Codification and through the rules and interpretive releases of the SEC under the authority of federal securities laws. Certain amounts previously reported have been reclassified to conform to the current period’s presentation.

NON-GAAP FINANCIAL MEASURES

The Company uses certain non-GAAP financial measures, such as operating earnings after tax, operating earnings per common share, operating return on average assets, operating return on average tangible assets, operating return on average stockholders’ equity, operating return on average tangible stockholders’ equity, tangible book value per common share, tangible stockholders’ equity to tangible assets, return on average tangible assets (annualized) and return on average tangible stockholders’ equity (annualized). These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial services sector. A detailed reconciliation table of the Company’s GAAP to the non-GAAP measures is attached.

INVESTOR RELATIONS:

Contact:	Carl M. Carlson
	Brookline Bancorp, Inc.
	Co-President and Chief Financial and Strategy Officer
	(617) 425-5331
	carl.carlson@brkl.com

BROOKLINE BANCORP, INC. AND SUBSIDIARIES Selected Financial Highlights (Unaudited)

	At and for the Three Months Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
	(Dollars In Thousands Except per Share Data)
Earnings Data:
Net interest income	$	83,008		$	80,001		$	81,588		$	83,555		$	84,070
Provision for credit losses on loans	4,832			5,607			7,423			3,851			2,947
Provision (credit) for credit losses on investments	(172)			(39)			(44)			(76)			84
Non-interest income	6,348			6,396			6,284			8,027			5,508
Non-interest expense	57,948			59,184			61,014			59,244			57,679
Income before provision for income taxes	26,748			21,645			19,479			28,563			28,868
Net income	20,142			16,372			14,665			22,888			22,701

Performance Ratios:
Net interest margin (1)	3.07		%	3.00		%	3.06		%	3.15		%	3.18		%
Interest-rate spread (1)	2.26		%	2.14		%	2.21		%	2.39		%	2.45		%
Return on average assets (annualized)	0.70		%	0.57		%	0.51		%	0.81		%	0.81		%
Return on average tangible assets (annualized) (non-GAAP)	0.72		%	0.59		%	0.53		%	0.83		%	0.83		%
Return on average stockholders’ equity (annualized)	6.63		%	5.49		%	4.88		%	7.82		%	7.78		%
Return on average tangible stockholders’ equity (annualized) (non-GAAP)	8.44		%	7.04		%	6.26		%	10.12		%	10.09		%
Efficiency ratio (2)	64.85		%	68.50		%	69.44		%	64.69		%	64.39		%

Per Common Share Data:
Net income — Basic	$	0.23		$	0.18		$	0.16		$	0.26		$	0.26
Net income — Diluted	0.23			0.18			0.16			0.26			0.26
Cash dividends declared	0.135			0.135			0.135			0.135			0.135
Book value per share (end of period)	13.81			13.48			13.43			13.48			13.03
Tangible book value per share (end of period) (non-GAAP)	10.89			10.53			10.47			10.50			10.02
Stock price (end of period)	10.09			8.35			9.96			10.91			9.11

Balance Sheet:
Total assets	$	11,676,721		$	11,635,292		$	11,542,731		$	11,382,256		$	11,180,555
Total loans and leases	9,755,236			9,721,137			9,655,086			9,641,589			9,380,782
Total deposits	8,732,271			8,737,036			8,718,653			8,548,125			8,566,013
Total stockholders’ equity	1,230,362			1,198,480			1,194,231			1,198,644			1,157,871

Asset Quality:
Nonperforming assets	$	72,821		$	62,683		$	42,489		$	45,324		$	51,540
Nonperforming assets as a percentage of total assets	0.62		%	0.54		%	0.37		%	0.40		%	0.46		%
Allowance for loan and lease losses	$	127,316		$	121,750		$	120,124		$	117,522		$	119,081
Allowance for loan and lease losses as a percentage of total loans and leases	1.31		%	1.25		%	1.24		%	1.22		%	1.27		%
Net loan and lease charge-offs	$	3,808		$	8,387		$	8,781		$	7,141		$	10,974
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)	0.16		%	0.35		%	0.36		%	0.30		%	0.47		%

Capital Ratios:
Stockholders’ equity to total assets	10.54		%	10.30		%	10.35		%	10.53		%	10.36		%
Tangible stockholders’ equity to tangible assets (non-GAAP)	8.50		%	8.23		%	8.25		%	8.39		%	8.16		%

(1) Calculated on a fully tax-equivalent basis.
(2) Calculated as non-interest expense as a percentage of net interest income plus non-interest income.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited)

	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
ASSETS	(In Thousands Except Share Data)
Cash and due from banks	$	82,168		$	60,067		$	45,708		$	34,514		$	33,506
Short-term investments	325,721			283,017			256,178			98,513			127,495
Total cash and cash equivalents	407,889			343,084			301,886			133,027			161,001
Investment securities available-for-sale	855,391			856,439			865,798			916,601			880,412
Total investment securities	855,391			856,439			865,798			916,601			880,412
Allowance for investment security losses	(186		)	(359		)	(398		)	(441		)	(517		)
Net investment securities	855,205			856,080			865,400			916,160			879,895
Loans and leases held-for-sale	—			—			6,717			—			—
Loans and leases:
Commercial real estate loans	5,779,290			5,782,111			5,755,239			5,764,529			5,669,768
Commercial loans and leases	2,453,038			2,443,530			2,416,904			2,399,668			2,241,375
Consumer loans	1,522,908			1,495,496			1,482,943			1,477,392			1,469,639
Total loans and leases	9,755,236			9,721,137			9,655,086			9,641,589			9,380,782
Allowance for loan and lease losses	(127,316		)	(121,750		)	(120,124		)	(117,522		)	(119,081		)
Net loans and leases	9,627,920			9,599,387			9,534,962			9,524,067			9,261,701
Restricted equity securities	82,675			78,963			74,709			77,595			65,460
Premises and equipment, net of accumulated depreciation	86,925			88,378			89,707			89,853			90,476
Right-of-use asset operating leases	41,934			35,691			33,133			30,863			31,619
Deferred tax asset	50,827			60,032			60,484			56,952			74,491
Goodwill	241,222			241,222			241,222			241,222			241,222
Identified intangible assets, net of accumulated amortization	19,162			20,830			22,499			24,207			26,172
Other real estate owned and repossessed assets	1,579			1,974			1,817			1,694			299
Other assets	261,383			309,651			310,195			286,616			348,219
Total assets	$	11,676,721		$	11,635,292		$	11,542,731		$	11,382,256		$	11,180,555
*LIABILITIES AND STOCKHOLDERS’ EQUITY*
Deposits:
Demand checking accounts	$	1,681,858		$	1,638,378		$	1,629,371		$	1,678,406		$	1,745,137
NOW accounts	637,374			647,370			654,748			661,863			647,476
Savings accounts	1,736,989			1,735,857			1,727,893			1,669,018			1,625,804
Money market accounts	2,041,185			2,073,557			2,065,569			2,082,810			2,161,359
Certificate of deposit accounts	1,819,353			1,718,414			1,670,147			1,574,855			1,491,844
Brokered deposit accounts	815,512			923,460			970,925			881,173			894,393
Total deposits	8,732,271			8,737,036			8,718,653			8,548,125			8,566,013
Borrowed funds:
Advances from the FHLB	1,345,003			1,265,079			1,150,153			1,223,226			899,304
Subordinated debentures and notes	84,293			84,258			84,223			84,188			84,152
Other borrowed funds	68,251			80,125			127,505			69,256			151,612
Total borrowed funds	1,497,547			1,429,462			1,361,881			1,376,670			1,135,068
Operating lease liabilities	43,266			37,102			34,235			31,998			32,807
Mortgagors’ escrow accounts	14,456			17,117			16,245			17,239			12,578
Reserve for unfunded credits	6,859			11,400			15,807			19,767			21,497
Accrued expenses and other liabilities	151,960			204,695			201,679			189,813			254,721
Total liabilities	10,446,359			10,436,812			10,348,500			10,183,612			10,022,684
Stockholders’ equity:
Common stock, $0.01 par value; 200,000,000 shares authorized; 96,998,075 shares issued, 96,998,075 shares issued, 96,998,075 shares issued, 96,998,075 shares issued, and 96,998,075 shares issued, respectively	970			970			970			970			970
Additional paid-in capital	901,562			904,775			903,726			902,659			901,376
Retained earnings	453,555			445,560			441,285			438,722			427,937
Accumulated other comprehensive income	(38,081		)	(61,693		)	(60,841		)	(52,798		)	(81,541		)
Treasury stock, at cost;
7,015,843, 7,373,009, 7,354,399, 7,354,399 and 7,350,981 shares, respectively	(87,644		)	(91,132		)	(90,909		)	(90,909		)	(90,871		)
Total stockholders’ equity	1,230,362			1,198,480			1,194,231			1,198,644			1,157,871
Total liabilities and stockholders’ equity	$	11,676,721		$	11,635,292		$	11,542,731		$	11,382,256		$	11,180,555

BROOKLINE BANCORP, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited)
	Three Months Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	149,643		$	145,585		$	145,265		$	142,948		$	136,561
Debt securities	6,473			6,480			6,878			6,945			6,799
Restricted equity securities	1,458			1,376			1,492			1,333			1,310
Short-term investments	1,986			1,914			1,824			1,093			2,390
Total interest and dividend income	159,560			155,355			155,459			152,319			147,060
Interest expense:
Deposits	59,796			59,721			56,884			54,034			49,116
Borrowed funds	16,756			15,633			16,987			14,730			13,874
Total interest expense	76,552			75,354			73,871			68,764			62,990
Net interest income	83,008			80,001			81,588			83,555			84,070
Provision for credit losses on loans	4,832			5,607			7,423			3,851			2,947
Provision (credit) for credit losses on investments	(172		)	(39		)	(44		)	(76		)	84
Net interest income after provision for credit losses	78,348			74,433			74,209			79,780			81,039
Non-interest income:
Deposit fees	2,353			3,001			2,897			3,064			3,024
Loan fees	464			702			789			515			639
Loan level derivative income, net	—			106			437			778			376
Gain on sales of loans and leases held-for-sale	415			130			—			410			225
Other	3,116			2,457			2,161			3,260			1,244
Total non-interest income	6,348			6,396			6,284			8,027			5,508
Non-interest expense:
Compensation and employee benefits	35,130			34,762			36,629			35,401			33,491
Occupancy	5,343			5,551			5,769			5,127			4,983
Equipment and data processing	6,831			6,732			7,031			7,245			6,766
Professional services	2,143			1,745			1,900			1,442			2,368
FDIC insurance	2,118			2,025			1,884			1,839			2,152
Advertising and marketing	859			1,504			1,574			758			1,174
Amortization of identified intangible assets	1,668			1,669			1,708			1,965			1,955
Merger and restructuring expense	—			823			—			—			—
Other	3,856			4,373			4,519			5,467			4,790
Total non-interest expense	57,948			59,184			61,014			59,244			57,679
Income before provision for income taxes	26,748			21,645			19,479			28,563			28,868
Provision for income taxes	6,606			5,273			4,814			5,675			6,167
Net income	$	20,142		$	16,372		$	14,665		$	22,888		$	22,701
Earnings per common share:
Basic	$	0.23		$	0.18		$	0.16		$	0.26		$	0.26
Diluted	$	0.23		$	0.18		$	0.16		$	0.26		$	0.26
Weighted average common shares outstanding during the period:
Basic	89,033,463			88,904,692			88,894,577			88,867,159			88,795,270
Diluted	89,319,611			89,222,315			89,181,508			89,035,505			88,971,210
Dividends paid per common share	$	0.135		$	0.135		$	0.135		$	0.135		$	0.135

BROOKLINE BANCORP, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited)

	Nine Months Ended September 30,
	2024			2023
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	440,493		$	390,791
Debt securities	19,831			22,703
Restricted equity securities	4,326			4,238
Short-term investments	5,724			7,236
Total interest and dividend income	470,374			424,968
Interest expense:
Deposits	176,401			121,631
Borrowed funds	49,376			47,181
Total interest expense	225,777			168,812
Net interest income	244,597			256,156
Provision for credit losses on loans	17,862			34,017
Provision (credit) for credit losses on investments	(255		)	415
Net interest income after provision for credit losses	226,990			221,724
Non-interest income:
Deposit Fees	8,251			8,547
Loan Fees	1,955			1,521
Loan level derivative income, net	543			3,112
Gain on investment securities, net	—			1,704
Gain on sales of loans and leases held-for-sale	545			2,171
Other	7,734			6,852
Total non-interest income	19,028			23,907
Non-interest expense:
Compensation and employee benefits	106,521			103,494
Occupancy	16,663			15,076
Equipment and data processing	20,594			19,759
Professional services	5,788			5,784
FDIC insurance	6,027			6,005
Advertising and marketing	3,937			3,966
Amortization of identified intangible assets	5,045			5,875
Merger and restructuring expense	823			7,411
Other	12,748			12,910
Total non-interest expense	178,146			180,280
Income before provision for income taxes	67,872			65,351
Provision for income taxes	16,693			13,240
Net income	$	51,179		$	52,111
Earnings per common share:
Basic	$	0.58		$	0.59
Diluted	$	0.57		$	0.59
Weighted average common shares outstanding during the period:
Basic	88,944,569			88,016,190
Diluted	89,241,470			88,253,361
Dividends paid per common share	$	0.405		$	0.405

BROOKLINE BANCORP, INC. AND SUBSIDIARIES Asset Quality Analysis (Unaudited)
	At and for the Three Months Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
	(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage	$	11,595		$	11,659		$	18,394		$	19,608		$	23,263
Multi-family mortgage	1,751			—			—			—			1,318
Construction	—			—			—			—			2,316
Total commercial real estate loans	13,346			11,659			18,394			19,608			26,897

Commercial	15,734			16,636			3,096			3,886			5,406
Equipment financing	37,223			27,128			13,668			14,984			13,974
Total commercial loans and leases	52,957			43,764			16,764			18,870			19,380

Residential mortgage	3,862			4,495			4,563			4,292			4,249
Home equity	1,076			790			950			860			713
Other consumer	1			1			1			—			2
Total consumer loans	4,939			5,286			5,514			5,152			4,964

Total nonaccrual loans and leases	71,242			60,709			40,672			43,630			51,241

Other real estate owned	780			780			780			780			—
Other repossessed assets	799			1,194			1,037			914			299
Total nonperforming assets	$	72,821		$	62,683		$	42,489		$	45,324		$	51,540

Loans and leases past due greater than 90 days and still accruing	$	16,091		$	4,994		$	363		$	228		$	1,175

Nonperforming loans and leases as a percentage of total loans and leases	0.73		%	0.62		%	0.42		%	0.45		%	0.55		%
Nonperforming assets as a percentage of total assets	0.62		%	0.54		%	0.37		%	0.40		%	0.46		%

PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period	$	121,750		$	120,124		$	117,522		$	119,081		$	125,817
Charge-offs	(4,183		)	(8,823		)	(5,390		)	(7,722		)	(10,978		)
Recoveries	375			436			309			581			4
Net charge-offs	(3,808		)	(8,387		)	(5,081		)	(7,141		)	(10,974		)
Provision for loan and lease losses excluding unfunded commitments *	9,374			10,013			7,683			5,582			4,238
Allowance for loan and lease losses at end of period	$	127,316		$	121,750		$	120,124		$	117,522		$	119,081

Allowance for loan and lease losses as a percentage of total loans and leases	1.31		%	1.25		%	1.24		%	1.22		%	1.27		%

NET CHARGE-OFFS:
Commercial real estate loans	$	—		$	3,819		$	606		$	1,087		$	(3	)
Commercial loans and leases **	3,797			4,571			8,179			6,061			10,958
Consumer loans	11			(3		)	(4		)	(7		)	19
Total net charge-offs	$	3,808		$	8,387		$	8,781		$	7,141		$	10,974

Net loan and lease charge-offs as a percentage of average loans and leases (annualized)	0.16		%	0.35		%	0.36		%	0.30		%	0.47		%

*Provision for loan and lease losses does not include (credit) provision of $(4.5 million), $(4.4 million), $(0.3 million), $(1.7 million), and $(1.3) million for credit losses on unfunded commitments during the three months ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively.
** The balance at March 31, 2024 includes a $3.7 million charge-off on a letter of credit which impacted the provision.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES Average Yields / Costs (Unaudited)
	Three Months Ended
	September 30, 2024						June 30, 2024						September 30, 2023
	Average Balance		Interest (1)		Average Yield/ Cost		Average Balance		Interest (1)		Average Yield/ Cost		Average Balance		Interest (1)		Average Yield/ Cost
	(Dollars in Thousands)
Assets:
Interest-earning assets:
Investments:
Debt securities (2)	$	853,924	$	6,516	3.05	%	$	846,469	$	6,510	3.08	%	$	887,612	$	6,840	3.08	%
Restricted equity securities (2)	75,225		1,459		7.76	%	71,696		1,375		7.67	%	67,824		1,310		7.73	%
Short-term investments	145,838		1,986		5.44	%	143,800		1,914		5.33	%	172,483		2,390		5.54	%
Total investments	1,074,987		9,961		3.71	%	1,061,965		9,799		3.69	%	1,127,919		10,540		3.74	%
Loans and Leases:
Commercial real estate loans (3)	5,772,456		83,412		5.65	%	5,754,901		81,565		5.61	%	5,667,373		78,750		5.44	%
Commercial loans (3)	1,079,084		18,440		6.69	%	1,069,154		17,672		6.54	%	939,492		15,295		6.38	%
Equipment financing (3)	1,353,649		26,884		7.94	%	1,374,217		26,255		7.64	%	1,280,033		23,331		7.29	%
Consumer loans (3)	1,505,095		21,123		5.60	%	1,488,587		20,291		5.46	%	1,471,985		19,237		5.21	%
Total loans and leases	9,710,284		149,859		6.17	%	9,686,859		145,783		6.02	%	9,358,883		136,613		5.84	%
Total interest-earning assets	10,785,271		159,820		5.93	%	10,748,824		155,582		5.79	%	10,486,802		147,153		5.61	%
Non-interest-earning assets	666,067						704,570						693,833
Total assets	$	11,451,338					$	11,453,394					$	11,180,635

Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	639,561	1,115		0.69	%	$	659,351	1,111		0.68	%	$	681,929	1,159		0.67	%
Savings accounts	1,738,756		12,098		2.77	%	1,731,388		11,874		2.76	%	1,557,911		8,859		2.26	%
Money market accounts	2,038,048		15,466		3.02	%	2,026,780		15,520		3.08	%	2,177,528		15,785		2.88	%
Certificates of deposit	1,768,026		20,054		4.51	%	1,699,510		18,717		4.43	%	1,444,269		12,128		3.33	%
Brokered deposit accounts	841,067		11,063		5.23	%	958,146		12,499		5.25	%	882,351		11,185		5.03	%
Total interest-bearing deposits	7,025,458		59,796		3.39	%	7,075,175		59,721		3.39	%	6,743,988		49,116		2.89	%
Borrowings
Advances from the FHLB	1,139,049		14,366		4.94	%	1,049,609		12,894		4.86	%	954,989		11,706		4.80	%
Subordinated debentures and notes	84,276		1,378		6.54	%	84,241		1,375		6.53	%	84,134		1,378		6.55	%
Other borrowed funds	53,102		1,012		7.58	%	103,753		1,364		5.29	%	117,531		790		2.67	%
Total borrowings	1,276,427		16,756		5.14	%	1,237,603		15,633		5.00	%	1,156,654		13,874		4.69	%
Total interest-bearing liabilities	8,301,885		76,552		3.67	%	8,312,778		75,354		3.65	%	7,900,642		62,990		3.16	%
Non-interest-bearing liabilities:
Demand checking accounts	1,669,092						1,646,869						1,794,225
Other non-interest-bearing liabilities	264,324						300,362						318,041
Total liabilities	10,235,301						10,260,009						10,012,908
Stockholders’ equity	1,216,037						1,193,385						1,167,727
Total liabilities and equity	$	11,451,338					$	11,453,394					$	11,180,635
Net interest income (tax-equivalent basis) /Interest-rate spread (4)			83,268		2.26	%			80,228		2.14	%			84,163		2.45	%
Less adjustment of tax-exempt income			260						227						93
Net interest income			$	83,008					$	80,001					$	84,070
Net interest margin (5)					3.07	%					3.00	%					3.18	%

(1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
(2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
(3) Loans on nonaccrual status are included in the average balances.
(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES Average Yields / Costs (Unaudited)
	Nine Months Ended
	September 30, 2024						September 30, 2023
	Average Balance		Interest (1)		Average Yield/ Cost		Average Balance		Interest (1)		Average Yield/ Cost
	(Dollars in Thousands)
Assets:
Interest-earning assets:
Investments:
Debt securities (2)	$	864,501	$	19,953	3.08	%	$	971,855	$	22,905	3.14	%
Restricted equity securities (2)	74,422		4,327		7.75	%	74,000		4,238		7.64	%
Short-term investments	140,156		5,724		5.44	%	183,295		7,236		5.26	%
Total investments	1,079,079		30,004		3.71	%	1,229,150		34,379		3.73	%
Loans and Leases:
Commercial real estate loans (3)	5,763,065		246,026		5.61	%	5,629,600		225,999		5.29	%
Commercial loans (3)	1,058,312		53,619		6.66	%	915,420		42,814		6.17	%
Equipment financing (3)	1,367,380		80,034		7.80	%	1,253,512		66,901		7.12	%
Consumer loans (3)	1,492,213		61,392		5.49	%	1,469,025		55,210		5.01	%
Total loans and leases	9,680,970		441,071		6.07	%	9,267,557		390,924		5.62	%
Total interest-earning assets	10,760,049		471,075		5.84	%	10,496,707		425,303		5.40	%
Non-interest-earning assets	678,235						698,273
Total assets	$	11,438,284					$	11,194,980

Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	656,879	3,487		0.71	%	$	741,951	3,129		0.56	%
Savings accounts	1,721,518		35,324		2.74	%	1,365,541		17,290		1.69	%
Money market accounts	2,047,011		46,940		3.06	%	2,227,404		41,914		2.52	%
Certificates of deposit	1,697,477		55,443		4.36	%	1,394,338		29,605		2.84	%
Brokered deposit accounts	898,455		35,207		5.23	%	798,800		29,693		4.97	%
Total interest-bearing deposits	7,021,340		176,401		3.36	%	6,528,034		121,631		2.49	%
Borrowings
Advances from the FHLB	1,117,809		41,893		4.92	%	1,135,845		40,524		4.70	%
Subordinated debentures and notes	84,241		4,130		6.54	%	84,098		4,095		6.49	%
Other borrowed funds	83,195		3,353		5.38	%	120,825		2,562		2.83	%
Total borrowings	1,285,245		49,376		5.05	%	1,340,768		47,181		4.64	%
Total interest-bearing liabilities	8,306,585		225,777		3.63	%	7,868,802		168,812		2.87	%
Non-interest-bearing liabilities:
Demand checking accounts	1,646,932						1,857,429
Other non-interest-bearing liabilities	280,947						301,543
Total liabilities	10,234,464						10,027,774
Stockholders’ equity	1,203,820						1,167,206
Total liabilities and equity	$	11,438,284					$	11,194,980
Net interest income (tax-equivalent basis) /Interest-rate spread (4)			245,298		2.21	%			256,491		2.53	%
Less adjustment of tax-exempt income			701						335
Net interest income			$	244,597					$	256,156
Net interest margin (5)					3.05	%					3.27	%

(1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
(2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
(3) Loans on nonaccrual status are included in the average balances.
(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES Non-GAAP Financial Information (Unaudited)
										At and for the Nine Months Ended September 30,
										2024			2023
Reconciliation Table – Non-GAAP Financial Information										(Dollars in Thousands Except Share Data)

Reported Pretax Income										$	67,872		$	65,351
Less:
Security gains										—			1,704
Add:
Day 1 PCSB CECL provision										—			16,744
Merger and restructuring expense										823			7,411
Operating Pretax Income										$	68,695		$	87,802
Effective tax rate										24.6		%	20.3		%
Provision for income taxes										16,895			17,789
Operating earnings after tax										$	51,800		$	70,013

Operating earnings per common share:
Basic										$	0.58		$	0.80
Diluted										$	0.58		$	0.79

Weighted average common shares outstanding during the period:
Basic										88,944,569			88,016,190
Diluted										89,241,470			88,253,361

Return on average assets *										0.60		%	0.62		%
Less:
Security gains (after-tax) *										—		%	0.02		%
Add:
Day 1 PCSB CECL provision (after-tax) *										—		%	0.16		%
Merger and restructuring expense (after-tax) *										0.01		%	0.07		%
Operating return on average assets *										0.61		%	0.83		%

Return on average tangible assets *										0.61		%	0.64		%
Less:
Security gains (after-tax) *										—		%	0.02		%
Add:
Day 1 PCSB CECL provision (after-tax) *										—		%	0.16		%
Merger and restructuring expense (after-tax) *										0.01		%	0.07		%
Operating return on average tangible assets *										0.62		%	0.85		%


Return on average stockholders’ equity *										5.67		%	5.95		%
Less:
Security gains (after-tax) *										—		%	0.16		%
Add:
Day 1 PCSB CECL provision (after-tax) *										—		%	1.53		%
Merger and restructuring expense (after-tax) *										0.07		%	0.68		%
Operating return on average stockholders’ equity *										5.74		%	8.00		%


Return on average tangible stockholders’ equity *										7.25		%	7.76		%
Less:
Security gains (after-tax) *										—		%	0.20		%
Add:
Day 1 PCSB CECL provision (after-tax) *										—		%	1.99		%
Merger and restructuring expense (after-tax) *										0.09		%	0.88		%
Operating return on average tangible stockholders’ equity *										7.34		%	10.43		%

* Ratios at and for the nine months ended are annualized.
There was no non-operating activity for the three months ended September 30, 2024 and September 30,2023, respectively.

	At and for the Three Months Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
	(Dollars in Thousands)

Net income, as reported	$	20,142		$	16,372		$	14,665		$	22,888		$	22,701

Average total assets	$	11,451,338		$	11,453,394		$	11,417,185		$	11,271,941		$	11,180,635
Less: Average goodwill and average identified intangible assets, net	261,188			262,859			264,536			266,225			268,199
Average tangible assets	$	11,190,150		$	11,190,535		$	11,152,649		$	11,005,716		$	10,912,436

Return on average tangible assets (annualized)	0.72		%	0.59		%	0.53		%	0.83		%	0.83		%

Average total stockholders’ equity	$	1,216,037		$	1,193,385		$	1,201,904		$	1,170,776		$	1,167,727
Less: Average goodwill and average identified intangible assets, net	261,188			262,859			264,536			266,225			268,199
Average tangible stockholders’ equity	$	954,849		$	930,526		$	937,368		$	904,551		$	899,528

Return on average tangible stockholders’ equity (annualized)	8.44		%	7.04		%	6.26		%	10.12		%	10.09		%

Total stockholders’ equity	$	1,230,362		$	1,198,480		$	1,194,231		$	1,198,644		$	1,157,871
Less:
Goodwill	241,222			241,222			241,222			241,222			241,222
Identified intangible assets, net	19,162			20,830			22,499			24,207			26,172
Tangible stockholders’ equity	$	969,978		$	936,428		$	930,510		$	933,215		$	890,477

Total assets	$	11,676,721		$	11,635,292		$	11,542,731		$	11,382,256		$	11,180,555
Less:
Goodwill	241,222			241,222			241,222			241,222			241,222
Identified intangible assets, net	19,162			20,830			22,499			24,207			26,172
Tangible assets	$	11,416,337		$	11,373,240		$	11,279,010		$	11,116,827		$	10,913,161

Tangible stockholders’ equity to tangible assets	8.50		%	8.23		%	8.25		%	8.39		%	8.16		%

Tangible stockholders’ equity	$	969,978		$	936,428		$	930,510		$	933,215		$	890,477

Number of common shares issued	96,998,075			96,998,075			96,998,075			96,998,075			96,998,075
Less:
Treasury shares	7,015,843			7,373,009			7,354,399			7,354,399			7,350,981
Unvested restricted shares	883,789			713,443			749,099			749,099			780,859
Number of common shares outstanding	89,098,443			88,911,623			88,894,577			88,894,577			88,866,235

Tangible book value per common share	$	10.89		$	10.53		$	10.47		$	10.50		$	10.02

PDF available: http://ml.globenewswire.com/Resource/Download/6045e36a-2e9d-4b3a-b6a1-f895169b0f2d

The MIL Network –

January 25, 2025

MIL-OSI: Juniata Valley Financial Corp. Announces Results for the Quarter Ended September 30, 2024

Source: GlobeNewswire (MIL-OSI)

Mifflintown, PA, Oct. 23, 2024 (GLOBE NEWSWIRE) — Juniata Valley Financial Corp. (OTCQX:JUVF) (“Juniata”) announced net income for the three months ended September 30, 2024 of $1.6 million compared to net income of $1.8 million for the three months ended September 30, 2023. Earnings per share, basic and diluted, was $0.33 during the three months ended September 30, 2024 compared to $0.36 during the three months ended September 30, 2023. Net income was $4.7 million for the nine months ended September 30, 2024 compared to $4.9 million for the nine months ended September 30, 2023. Earnings per share, basic and diluted, was $0.95 for the nine months ended September 30, 2024 compared to $0.98 for the nine months ended September 30, 2023.

President’s Message

President and Chief Executive Officer, Marcie A. Barber stated, “We are pleased to report solid third quarter net income. These results were accomplished, in part, through disciplined pricing of both loans and deposits. Efforts to contain funding costs, coupled with loan growth, resulted in a 2.0% increase in net interest income compared to the corresponding 2023 quarter despite continued competition for deposits. With the reduction of the Fed Funds rate by 50 basis points in mid-September and anticipated future rate cuts, we remain optimistic that net interest margin compression appears to have abated. Additionally, our focus on fee income resulted in an increase of 11.1% in noninterest income compared to fee income for the same quarter in 2023. Asset quality remains strong with delinquent and nonperforming loans comprising only 0.2% of total loans, unchanged from the previous quarter. We are continually working toward expanding loan and deposit relationships outside of our branch footprint while optimizing our branch network to provide outstanding customer service through improvement in efficiencies.”

Financial Results Year-to-Date

Annualized return on average assets for the nine months ended September 30, 2024, was 0.73%, a decrease of 7.6% compared to the annualized return on average assets of 0.79% for the nine months ended September 30, 2023. Annualized return on average equity for the nine months ended September 30, 2024 was 14.70%, a decrease of 19.5% compared to the annualized return on average equity of 18.25% for the nine months ended September 30, 2023.

Net interest income was $17.1 million during both the nine months ended September 30, 2024 and 2023. Average earning assets increased $21.1 million, or 2.5%, to $856.2 million, during the nine months ended September 30, 2024, compared to the same period in 2023, due primarily to an increase of $39.9 million, or 8.0%, in average loans. The increase in average loans was partially offset by a decline of $20.6 million, or 6.2%, in average investment securities as principal paydowns on the mortgage-backed securities portfolio were used to fund loan growth rather than being reinvested into the securities portfolio. Average interest bearing liabilities increased by $19.5 million, or 3.3%, during the nine months ended September 30, 2024 compared to the comparable 2023 period, due to growth in average time deposits, repurchase agreements and short-term borrowings, with this growth partially funding loan growth. The yield on earning assets increased 42 basis points, to 4.33%, due to a 51 basis point increase in the yield on average loans in the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023, while the cost to fund interest earning assets with interest bearing liabilities increased 68 basis points, to 2.31%. The net interest margin, on a fully tax equivalent basis, decreased from 2.77% during the nine months ended September 30, 2023, to 2.70% during the nine months ended September 30, 2024.

Juniata recorded a provision for credit losses of $471,000 for the nine months ended September 30, 2024 compared to a provision for credit losses of $411,000 for the nine months ended September 30, 2023.

Non-interest income was $4.2 million during the nine months ended September 30, 2024 compared to $3.9 million during the nine months ended September 30, 2023, an increase of 8.4%. Most significantly impacting the comparative nine month periods were increases of $282,000 in customer service fees, $144,000 in the change in value of equity securities and $115,000 in fees derived from loan activity, the latter primarily due to increases in title insurance commissions and guidance line and service fees. These increases were partially offset by a $161,000 decrease in life insurance proceeds as no proceeds were recorded in the 2024 period.

Non-interest expense was $15.4 million during the nine months ended September 30, 2024 compared to $15.0 million during the nine months ended September 30, 2023, an increase of 2.6%. Most significantly impacting non-interest expense in the comparative nine month periods were increases of $356,000 in salary expense due to annual salary increases and overtime pay from the core conversion in the first quarter of 2024, as well as increases of $124,000 in equipment expense and $196,000 in professional fees, primarily due to an increase in audit expenses. These increases were partially offset by decreases of $180,000 in employee benefits expense, due to a decline in medical claims expense, and $227,000 recorded in the 2023 period due to the merger and acquisition expense incurred in connection with the Path Valley branch acquisition.

An income tax provision of $767,000 was recorded during the nine months ended September 30, 2024 compared to an income tax provision of $708,000 recorded during the nine months ended September 30, 2023. Juniata qualifies for a federal tax credit for investments in low-income housing partnerships. The tax credit decreased from $284,000 in the nine months ended September 30, 2023 to $247,000 in the nine months ended September 30, 2024 due to the completion of the amortization period for one of Juniata’s low-income housing partnership investments in January 2023.

Financial Results for the Quarter

Annualized return on average assets for the three months ended September 30, 2024 was 0.76%, a decrease of 10.6%, compared to 0.85% for the three months ended September 30, 2023. Annualized return on average equity for the three months ended September 30, 2024 was 14.72%, a decrease of 25.7%, compared to 19.81% for the three months ended September 30, 2023.

Net interest income was $5.8 million for the three months ended September 30, 2024 compared to $5.7 million for the three months ended September 30, 2023. Average earning assets increased $11.2 million, or 1.3%, to $853.1 million during the three months ended September 30, 2024, compared to the same period in 2023, primarily due to an increase of $30.2 million, or 5.9%, in average loans, partially offset by a decline of $19.9 million, or 6.1%, in average investment securities due primarily to principal paydowns on the mortgage-backed securities portfolio. Average interest bearing liabilities increased by $7.6 million, or 1.3%, compared to the corresponding 2023 period, primarily due to increases in average time deposits, repurchase agreements and short-term borrowings. The yield on earning assets increased 39 basis points, to 4.41%, during the three months ended September 30, 2024 compared to same period in 2023, while the cost to fund interest earning assets with interest bearing liabilities increased 51 basis points, to 2.38%. The net interest margin, on a fully tax equivalent basis, increased from 2.71% during the three months ended September 30, 2023, to 2.73% during the three months ended September 30, 2024.

Juniata recorded a provision for credit losses of $232,000 for the three months ended September 30, 2024 compared to a provision for credit losses of $121,000 for the three months ended September 30, 2023. For the 2024 period, this increase was due primarily to an updated loss driver analysis for the allowance for credit losses calculation and not a result of deteriorated asset quality, which remains strong.

Non-interest income was $1.4 million for the three months ended September 30, 2024, an increase of 11.1%, compared to $1.3 million for the three months ended September 30, 2023. Most significantly impacting non-interest income in the comparative three month periods were increases of $117,000 in customer service fees and $84,000 in the change in value of equity securities. Partially offsetting these increases in the comparative three month periods was a decrease of $35,000 in fees derived from loan activity primarily due to decreases in title insurance commissions and the derivative credit adjustment.

Non-interest expense was $5.1 million for the three months ended September 30, 2024, compared to $4.8 million for the three months ended September 30, 2023, an increase of 7.2%. Most significantly impacting non-interest expense in the comparative three month periods was an increase of $126,000 in employee benefits expense, due primarily to an increase in medical claims expenses, as well as an increase of $86,000 in both equipment expenses and professional fees. These increases were partially offset by a decrease of $47,000 in the provision for unfunded commitments during the three months ended September 30, 2024 compared to the three months ended September 30, 2023.

An income tax provision of $270,000 was recorded during the three months ended September 30, 2024 compared to an income tax provision of $310,000 recorded during the three months ended September 30, 2023.

Financial Condition

Total assets as of September 30, 2024 were $858.0 million, a decrease of $12.6 million, or 1.5%, compared to total assets of $870.6 million at December 31, 2023. Cash and cash equivalents decreased by $17.0 million, or 58.8%, as of September 30, 2024 compared to December 31, 2023, as cash was used primarily to fund the growth in total loans, which increased by $12.4 million, or 2.4% as of September 30, 2024 compared to year-end 2023. Total deposits increased by $3.9 million, or 0.5%, as of September 30, 2024 compared to December 31, 2023 while short-term borrowings and repurchase agreements decreased by $7.1 million, or 13.4%, as overnight borrowings replaced a 5-year FHLB advance that matured in May 2024, leading to the $15.0 million, or 75.0%, decline in long-term debt.

Juniata maintained a strong liquidity position as of September 30, 2024, with additional borrowing capacity with the Federal Home Loan Bank of Pittsburgh of $242.5 million and $17.3 million in additional borrowing capacity from the Federal Reserve’s Discount Window. In addition, Juniata has access to brokered deposits through two third parties but had no brokered deposits outstanding as of September 30, 2024.

Subsequent Event

On October 15, 2024, the Board of Directors declared a cash dividend of $0.22 per share to shareholders of record on November 15, 2024, payable on November 29, 2024.

Management considers subsequent events occurring after the statement of condition date for matters which may require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of a public company’s consolidated financial statements with the Securities and Exchange Commission. Accordingly, the financial information in this release is subject to change.

The Juniata Valley Bank, the principal subsidiary of Juniata Valley Financial Corp., is headquartered in Mifflintown, Pennsylvania, with fifteen community offices located in Juniata, Mifflin, Perry, Franklin, McKean and Potter Counties. More information regarding Juniata Valley Financial Corp. and The Juniata Valley Bank can be found online at www.JVBonline.com. Juniata Valley Financial Corp. trades through the OTCQX Best Market under the symbol JUVF.

Forward-Looking Information
*This press release may contain “forward looking” information as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect the current views of Juniata’s management with respect to, among other things, future events and Juniata’s financial performance. When words such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or similar expressions are used in this release, Juniata is making forward-looking statements. Such information is based on Juniata’s current expectations, estimates and projections about future events and financial trends affecting the financial condition of its business, many of which, by their nature, are inherently uncertain and beyond the control of Juniata. These statements are not historical facts or guarantees of future performance, events or results and are subject to risks, assumptions and uncertainties that are difficult to predict. If one or more events related to these or other risks or uncertainties materializes, or if underlying assumptions prove to be incorrect, actual results may differ materially from this forward-looking information. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and many factors could affect future financial results. Juniata undertakes no obligation to publicly update or revise forward looking information, whether because of new or updated information, future events, or otherwise. For a more complete discussion of certain risks and uncertainties affecting Juniata, please see the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Forward-Looking Statements” set forth in the Juniata’s filings with the Securities and Exchange Commission.

Financial Statements

Juniata Valley Financial Corp. and Subsidiary
Consolidated Statements of Financial Condition


(Dollars in thousands, except share data)	(Unaudited)
	September 30, 2024			December 31, 2023
ASSETS
Cash and due from banks	$	6,152		$	17,189
Interest bearing deposits with banks		5,783			11,741
Cash and cash equivalents		11,935			28,930

Equity securities		1,139			1,073
Debt securities available for sale		66,299			67,564
Debt securities held to maturity (fair value $193,108 and $198,147, respectively)		193,762			200,644
Restricted investment in bank stock		1,885			1,707
Total loans		538,250			525,394
Less: Allowance for credit losses		(6,124	)		(5,677	)
Total loans, net of allowance for credit losses		532,126			519,717
Premises and equipment, net		9,514			8,180
Bank owned life insurance and annuities		15,038			14,841
Investment in low income housing partnerships		912			1,154
Core deposit and other intangible assets		279			343
Goodwill		9,812			9,812
Mortgage servicing rights		76			83
Deferred tax asset		9,950			11,319
Accrued interest receivable and other assets		5,229			5,188
Total assets	$	857,956		$	870,555
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits:
Non-interest bearing	$	197,474		$	197,027
Interest bearing		555,440			552,018
Total deposits		752,914			749,045

Short-term borrowings and repurchase agreements		45,721			52,810
Long-term debt		5,000			20,000
Other interest bearing liabilities		823			951
Accrued interest payable and other liabilities		6,956			7,612
Total liabilities		811,414			830,418
Commitments and contingent liabilities
Stockholders’ Equity:
Preferred stock, no par value: Authorized – 500,000 shares, none issued		—			—
Common stock, par value $1.00 per share: Authorized 20,000,000 shares; Issued – 5,151,279 shares at September 30, 2024 and December 31, 2023; Outstanding – 5,003,384 shares at September 30, 2024 and 4,991,129 shares at December 31, 2023		5,151			5,151
Surplus		24,860			24,924
Retained earnings		52,736			51,297
Accumulated other comprehensive loss		(33,809	)		(38,640	)
Cost of common stock in Treasury: 147,895 shares at September 30, 2024; 160,150 shares at December 31, 2023		(2,396	)		(2,595	)
Total stockholders’ equity		46,542			40,137
Total liabilities and stockholders’ equity	$	857,956		$	870,555

Juniata Valley Financial Corp. and Subsidiary
Consolidated Statements of Income (Unaudited)


	Three Months Ended					Nine Months Ended
(Dollars in thousands, except share and per share data)	September 30,					September 30,
	2024		2023			2024		2023
Interest income:
Loans, including fees	$	7,979	$	6,940		$	23,224	$	19,569
Taxable securities		1,421		1,525			4,341		4,684
Tax-exempt securities		30		36			89		109
Other interest income		24		24			116		69
Total interest income		9,454		8,525			27,770		24,431
Interest expense:
Deposits		2,879		2,286			8,243		5,614
Short-term borrowings and repurchase agreements		741		431			2,151		1,314
Long-term debt		31		119			237		353
Other interest bearing liabilities		8		9			25		29
Total interest expense		3,659		2,845			10,656		7,310
Net interest income		5,795		5,680			17,114		17,121
Provision for credit losses		232		121			471		411
Net interest income after provision for credit losses		5,563		5,559			16,643		16,710
Non-interest income:
Customer service fees		473		356			1,300		1,018
Debit card fee income		428		436			1,302		1,293
Earnings on bank-owned life insurance and annuities		60		57			174		167
Trust fees		108		123			359		381
Commissions from sales of non-deposit products		98		87			309		255
Fees derived from loan activity		101		136			445		330
Change in value of equity securities		70		(14	)		66		(78	)
Gain from life insurance proceeds		—		—			—		161
Other non-interest income		107		120			265		366
Total non-interest income		1,445		1,301			4,220		3,893
Non-interest expense:
Employee compensation expense		2,249		2,167			6,689		6,333
Employee benefits		555		429			1,733		1,913
Occupancy		320		312			979		964
Equipment		248		162			617		493
Data processing expense		684		699			2,162		2,226
Professional fees		297		211			830		634
Taxes, other than income		60		(7	)		154		158
FDIC Insurance premiums		141		157			435		352
Amortization of intangible assets		22		25			64		56
Amortization of investment in low-income housing partnerships		81		81			242		273
Merger and acquisition expense		—		18			—		227
Other non-interest expense		444		505			1,453		1,344
Total non-interest expense		5,101		4,759			15,358		14,973
Income before income taxes		1,907		2,101			5,505		5,630
Income tax provision		270		310			767		708
Net income	$	1,637	$	1,791		$	4,738	$	4,922
Earnings per share
Basic	$	0.33	$	0.36		$	0.95	$	0.98
Diluted	$	0.33	$	0.36		$	0.95	$	0.98

The MIL Network –

January 25, 2025

MIL-OSI USA: Attorney General James and Acting Tax Commissioner Hiller Announce Conviction of Capital Region Car Dealership Owner for Failing to Pay Over $160,000 in Taxes

Source: US State of New York

NEW YORK – New York Attorney General Letitia James and Acting Commissioner of the New York State Department of Taxation and Finance (DTF) Amanda Hiller today announced the sentencing of Guy Kennedy Nicolas of Colonie, New York and his business, G&A Auto Care, Inc., for stealing over $160,000 in sales tax by underreporting more than $2 million in taxable sales. An investigation led by the Office of the Attorney General (OAG) found that Nicolas failed to file annual sales tax returns for his car dealership business for all but two years from 2013 to 2023. Nicolas and his company pleaded guilty to felony charges in November 2024 and yesterday judgments were entered against them requiring them to pay back the full amount of the stolen sales tax. Nicolas was also sentenced yesterday to five years of probation.

“When New York businesses fail to pay taxes, they cheat New Yorkers out of critical resources that support education, health care, transportation, and other essential services,” said Attorney General James. “Guy Nicolas and his business violated the law and failed to pay over $160,000 in sales tax, and he was ordered to pay back what he owes. My office will continue to hold anyone accountable who attempts to defraud the tax system and cheat hardworking New Yorkers.”

“We appreciate the efforts of the Attorney General’s office in prosecuting those who seek to evade tax laws,” said Acting Tax Commissioner Amanda Hiller. “This case and others like it will help level the playing field for honest business owners across the state.”

“The sentencing of Mr. Nicolas sends a strong message that dishonest business practices will not be tolerated in New York State,” said New York State Police Superintendent Steven G. James. “This sentencing demonstrates that collaborative work among law enforcement partners is vital in reaching the same goal: holding those who break our laws accountable. I thank the Attorney General’s Office and the Department of Taxation and Finance for their shared commitment to investigating those who deceive others for their own gain.”

“Having a license to operate a car dealership in New York carries a responsibility to follow the law in the process of running that business, including paying your taxes,” said DMV Commissioner Mark J.F. Schroeder. “I am pleased that our team was able to assist in this case and I applaud the efforts of the Office of the Attorney General and partner agencies to hold this business accountable on behalf of all New Yorkers.”

As the owner of G&A Auto Care, Inc., Nicolas was the sole person responsible for sales tax at his business. Nicolas was required to report all taxable sales, including sales of cars, from his dealership and file sales tax returns on at least a yearly basis. A joint investigation by OAG, DTF, and the New York State Police (NYSP), with assistance from the New York State Department of Motor Vehicles (DMV) found that from at least 2013 through 2023, G&A Auto Care, Inc. and Nicolas failed to file all but two annual sales tax returns. According to an audit conducted by OAG, between June 2013 and March 2023, Nicolas failed to report more than $2 million in total sales and stole over $160,000 in sales tax due.

In November 2024, Nicolas and his business pleaded guilty to Grand Larceny in the Second Degree, a class C felony. Yesterday, G&A Auto Care, Inc. and Nicolas were sentenced in Albany County Court before Judge William T. Little. Nicolas was sentenced to five years of probation, and G&A Auto Care, Inc. was sentenced to a three-year conditional discharge. As part of their sentences, both defendants admitted to the full amount of sales tax owed and had judgments entered against them requiring them to pay back the $160,000 owed to the state.

Attorney General James thanks DTF, NYSP Financial Crimes Unit and Special Investigations Unit, and DMV for their invaluable assistance on this case.

This case is the latest example of Attorney General James taking action to ensure all New Yorkers pay their fair share in taxes. In November 2024, Attorney General James secured more than $6 million from Sotheby’s for tax fraud. In December 2023, Attorney General James recovered $1.8 million from the owner of a New York City diner for failing to report more than $650,000 in cash receipts and lying on tax statements. In August 2023, Attorney General James and Acting Tax Commissioner Hiller announced the conviction of a Nassau County auto body shop owner for failing to pay over $700,000 in taxes.

The case was prosecuted by Assistant Attorneys General John R. Healy and Philip V. Apruzzese of the Criminal Enforcement and Financial Crimes Bureau (CEFC). Forensic accounting was performed by Senior Auditor Investigator Brenna Magruder, under the supervision of Deputy Chief Auditor Sandy Bizzarro, and Chief Auditor Kristen Fabbri. Analytical work was provided by Legal Support Analysts Kai Tsurumaki and Brooke Starkey, under the supervision of Deputy Supervising Analyst Jayleen Garcia and Chief Analyst Paul Strocko. CEFC is led by Bureau Chief Stephanie Swenton and Deputy Bureau Chief Joseph G. D’Arrigo.

The OAG investigation was conducted by Detective Jason Johnston, under the supervision of Assistant Chief Samuel Scotellaro and Deputy Chief Juanita Bright of the Major Investigations Unit. The Investigations Bureau is led by Chief Investigator Oliver Pu-Folkes. Both the Investigations Bureau and CEFC are part of the Division of Criminal Justice, which is led by Chief Deputy Attorney General Jose Maldonado. The Division of Criminal Justice is overseen by First Deputy Attorney General Jennifer Levy.

MIL OSI USA News –

January 25, 2025

MIL-OSI Economics: [Galaxy Unpacked 2025] Galaxy Tech Forum ③ Galaxy AI: Redefining the Mobile Experience Paradigm

Source: Samsung

Samsung hosted the Galaxy Tech Forums on January 23 in San Jose, California. The panels provided an in-depth exploration of Samsung’s AI innovations and the challenges they address across four key areas — Sustainability, Health AI, Galaxy AI and Home AI. During the Galaxy AI session, experts examined the potential of AI agents and their role in shaping the future.

Samsung Electronics unveiled the Galaxy S25 series at Galaxy Unpacked 2025, marking the beginning of the next era of mobile AI.

To explore the latest flagship smartphones and the transformative potential of AI agents, Samsung Newsroom joined the third Galaxy Tech Forum session, titled “True AI Companion: Impact on Life and What’s Next.”

▲ (From left to right) Bob O’Donnell, Sameer Samat, Jay Kim, Christopher Patrick and Dr. Chris Brauer

More Natural, Intuitive and User-Friendly Mobile AI
The session kicked off with welcome remarks from Jay Kim, Executive Vice President and Head of Customer Experience Office, Mobile eXperience Business at Samsung Electronics.

“Yesterday was a very exciting day for us as we launched the Galaxy S25. It’s another big step forward in the AI era,” Kim said. “We’re very excited to be here with our partners today, especially (excited) to talk about everything we did together to launch the Galaxy S25 series.”

▲ Jay Kim from Samsung Electronics

Moderator Bob O’Donnell, President and Founder of TECHnalysis Research, posed questions to the panelists about the benefits the Galaxy S25 series will bring to users, as well as the barriers blocking certain consumers from using mobile AI.

“AI should make users’ lives better. We study consumer habits, constantly trying to gain a better understanding of our customers,” Kim said. “Ultimately, what we’re trying to do is minimize how much effort it takes to input while maximizing the output. To do that, we look at what consumers do on their phones, define the potential use cases alongside our partners, and put it all together in our devices for the best possible consumer experience.”

▲The Galaxy Tech Forum discussion on Galaxy AI

“Multimodality can help people become more efficient while AI agents can help people become more productive,” Kim continued. He also highlighted Samsung’s commitment to openly collaborating with its partners to drive progress forward and expressed his excitement for the possibilities AI innovations will bring as part of a new chapter in mobile technology.

Expanding the Galaxy AI Ecosystem Through Open Collaboration
During the session, Samsung offered an inside look at the work done in partnership with Google and Qualcomm to perfect the Galaxy S25 series’ AI innovations.

“Even though the benefit value of mobile AI is really high, it’s of no use if you can’t access it. We had to look at what was already part of the consumer experience and contemplate how we could enhance those experiences in a way that would bring real benefits, but still be easy enough to access,” Kim explained. He noted that close collaboration was essential, particularly in integrating Google’s Gemini intelligence and Qualcomm’s on-device processing capabilities.

▲ Sameer Samat from Google

“Truly helpful AI must fit naturally into our daily lives. AI is a tool and not an end in itself, and what matters to consumers the most is how helpful AI can be for them,” said Sameer Samat, President of Android Ecosystem at Google. “LLMs represent a massive leap in how computers understand human language. Now, you can speak in completely natural language, removing any friction from the overall experience.”

“With Galaxy S25, I’m optimistic that people will quickly adapt to using an AI agent to help them get things done in very natural ways.”

▲ Christopher Patrick from Qualcomm

Key drivers of multimodal AI capabilities, like Qualcomm’s Snapdragon 8 Elite chipset, were also highlighted, showcasing technology that simultaneously processes multiple forms of information, including voice, images and text.

“The Galaxy S25 series is going to be a completely new experience. You’ll be able to engage with your personalized AI assistant like never before; it doesn’t just feel like interacting with a real person, it perceives your environment and can interact with content shown on your camera,” said Christopher Patrick, Senior Vice President and General Manager for Mobile Handsets at Qualcomm. “Our collaboration with Samsung to customize the chipset to make these new capabilities feel seamless is something I’m really proud of.”

Breaking Barriers: Mobile AI’s Role in Enhancing Quality of Life
During the session, Samsung also presented the findings of a global study conducted in partnership with London-based research firm, Symmetry, that examined the link between mobile AI use and quality of life. The speakers delved into the study’s key implications and offered valuable insights.

▲ Dr. Chris Brauer from Goldsmiths, University of London, and Symmetry

“The rate of AI innovation is astounding, but what struck me about the research we did with Samsung was that the rate of mobile AI adoption is also rising at a rapid rate,” said Dr. Chris Brauer, Director of Innovation in the Institute of Management Studies at Goldsmiths, University of London, and Chief Innovation Officer at Symmetry. “Frequent consumer use of mobile AI globally has nearly doubled in just six months, jumping from 16% in July to 27% in January.” Dr. Brauer also outlined key findings concerning certain barriers to entry the research found around mobile AI.

“We found a really interesting theme among those less willing to adopt the technology: doubt,” Dr. Brauer said. “Doubt in AI’s ability to bring meaningful benefits to everyday life (56%), doubt and a lack of high confidence to use AI to its full potential (85%) and doubt around privacy and whether AI can be trusted (90%). There’s immense potential with this technology, but what’s also clear are the very real barriers that must be addressed responsibly for wider adoption to take place.”

▲ The Galaxy AI discussion session at the Galaxy Tech Forums

The Galaxy AI session concluded with the panelists agreeing that mobile AI innovation is set to revolutionize every aspect of modern life. As representatives of the fast-moving industry, they also vowed to develop related technologies in a responsible manner beneficial to all of humanity.

MIL OSI Economics –

January 25, 2025

MIL-OSI Economics: [Galaxy Unpacked 2025] Galaxy Tech Forum ② Health AI: Integrated Wellness Solutions for Smarter Health Management

Source: Samsung

Samsung hosted the Galaxy Tech Forums on January 23 in San Jose, California. The panels provided an in-depth exploration of Samsung’s AI innovations and the challenges they address across four key areas — Sustainability, Health AI, Galaxy AI and Home AI. During the Health AI session, experts shared insights into how AI technologies are shaping the future of daily health management.

Samsung Electronics is leveraging AI technology to enhance its comprehensive health solutions, delivering more meaningful and personalized health experiences.

To understand how Samsung’s AI ecosystem is poised to transform the future of wellness, Samsung Newsroom observed the second Tech Forum session, titled “The Role of Technology for a Healthier Life.”

▲ (From left to right) Dr. Vanessa Hill, Dr. Hon Pak, Dr. Patrick O’Connor, Emily English and Dr. Kyu Rhee

Healthy Living Starts With a Holistic Approach
Moderator Dr. Vanessa Hill, an award-winning science communicator and sleep scientist, started the discussion by providing insights into the practical utility of today’s health technology.

While advancements such as wearable devices, health apps and telehealth platforms have made health management more accessible, the sheer volume of information can lead to confusion — making it easy to overlook critical insights amid an overwhelming sea of data.

▲ Dr. Patrick O’Connor from the University of Georgia

“The issue is not the amount of data but the fragmentation,” said Dr. Patrick O’Connor, a professor in the Department of Kinesiology at Mary Frances Early College of Education, University of Georgia. “The key is to bring the scattered data together to create a comprehensive understanding, as health requires a holistic approach due to the interconnectedness of so many factors.”

“As a sleep scientist I know the importance of gathering health data around the clock. Identifying abnormalities in metrics like heart rate, temperature or even snoring during sleep is key to not only unlocking better sleep, but better overall health,” said Dr. Hill, who emphasized that sleep is the foundation of holistic health.

Personalized Care Through Various Health Metrics and Continuous Tracking
The discussion also explored the importance of adding new health metrics to track, and monitoring those metrics in a continuous manner.

▲ Dr. Kyu Rhee from the NACHC

“Continuous health monitoring of physical activity, sleep, nutrition and stress should become new, additional vital signs for users and health professionals,” said Dr. Kyu Rhee, President and CEO of the National Association of Community Health Centers (NACHC). “Combining this essential health data with clinical data powered by AI insights has the potential to transform the health system by improving health outcomes, reducing healthcare costs, and empowering patients, their caregivers and healthcare teams.”

▲ Dr. Hon Pak from Samsung Electronics

One health metric receiving a substantial amount of attention from both Samsung and the digital health industry in general is blood glucose.

“Blood glucose is an area Samsung has been deeply invested in, and we’ve made significant progress in developing CGM-integrated nutrition coaching as well as enhancing non-invasive technologies for tracking blood glucose levels,” said Dr. Hon Pak, Senior Vice President and Head of Digital Health Team, Mobile eXperience Business at Samsung Electronics, sharing the company’s roadmap for blood glucose management and end-to-end (E2E) healthcare experiences. “These advancements are all part of our work to deliver more proactive and preventive disease detection solutions to everyone, helping lower healthcare burdens on people, their families and society at large.”

▲ Emily English, a BSc nutritionist

“There isn’t a one-size-fits-all approach to health and nutrition, it’s a journey that requires a holistic understanding of yourself,” said Emily English, a BSc nutritionist. “Wellness technology is helping provide a full 360-view of your life. New solutions that offer easy access to health metrics like blood glucose will offer a more holistic understanding of our bodies and revolutionize the way we manage our everyday health.”

Ushering in the Era of Personalized Health Insights
The discussion touched on how AI can translate tracked health data into actionable and meaningful insights.

▲ The Tech Forum discussion on Health AI

In an effort to consolidate disparate data onto a single platform, Samsung has collaborated with Dr. O’Connor’s research team to develop Energy Score — a feature that enhances the digital healthcare experience. “New AI-enabled features like Energy Score have become a jumping off point for broader health innovations,” explained Dr. Pak. Calculated based on health indicators such as activity levels, sleep, heart rate during sleep and heart rate variability during sleep, Energy Score exemplifies how wearable devices and AI can support a holistic and personalized approach to health and wellness management.

▲ Dr. Patrick O’Connor describes Energy Score.

“Monitoring overall readiness might benefit from minimally invasive brain sensing technology,” said Dr. O’Connor. “Today, we are able to leverage non-invasive technology, the available science and AI to generate an Energy Score, helping translate complex data into an intuitive and understandable index.”

Dr. Pak also teased Samsung’s upcoming plans to expand the AI capabilities of Energy Score to include nutrition, mental health and even mobile usage patterns — offering users deeper and more comprehensive insights into their overall well-being.

The Health AI session underscored the importance of a holistic approach to health management, highlighting the potential of personalized health experiences powered by continuous health monitoring. As AI becomes an indispensable partner in modern wellness, Samsung’s innovative technology is set to drive a new era of tailored and comprehensive health solutions.

MIL OSI Economics –

January 25, 2025

MIL-OSI Economics: [Galaxy Unpacked 2025] Galaxy Tech Forum ④ Home AI: Redefining the Future of Smart Living

Source: Samsung

Samsung hosted the Galaxy Tech Forums on January 23 in San Jose, California. The panels provided an in-depth exploration of Samsung’s AI innovations and the challenges they address across four key areas — Sustainability, Health AI, Galaxy AI and Home AI. During the Home AI session, experts touched on Samsung’s outlook for the future of smart homes.

Samsung Electronics is reimagining smart homes through Home AI, a new vision of smart living that understands user needs and delivers hyper-personalized experiences.

Samsung Newsroom attended the final Tech Forum session, titled “Understanding Home, Understanding You: Rethinking the Role of the Home in the Era of AI,” to examine the transformative potential of AI in smart home innovation and the need for collaboration to deliver on the promise of Home AI.

▲ (From left to right) Tobin Richardson, Jaeyeon Jung, Patrick Chomet and Carolina Milanesi

Smart UI as the Gateway to Home AI
User interface (UI) is a critical element in the Home AI experience, serving as the bridge between users and their mobile devices, TVs, home appliances and more.

▲ Patrick Chomet from Samsung Electronics

“UI is a key area in the age of AI,” said Patrick Chomet, Mobile Strategy Advisor at Samsung Electronics. “With the advent of LLM multimodal AI, a big shift has taken place in User Interface (UI), enabling people to get things done in natural and simple ways such as gesture, voice or text interaction. Users no longer needs to understand devices, rather the device should understand the user’s intent.”

He explained how intelligent user interfaces not only enable more intuitive interactions but also procure deeper understandings of user context and intent, which brands can use to optimize in-home solutions.

▲ Jaeyeon Jung from Samsung Electronics

“We have implemented an intuitive and concise UI for various SmartThings features,” said Jaeyeon Jung, Executive Vice President and Head of SmartThings Team at Samsung Electronics.

She engaged the audience with examples of the latest SmartThings functions including Quick Remote, a feature that enables users to control their TVs with a connected Galaxy smartphone; 3D Map View, a feature that allows users to manage their entire home and check energy consumption through Galaxy smartphones and tablets; and Home Insight, a feature that provides timely home reports and delivers personalized recommendations to users.

The Role of Platforms and Standardization in Shaping Smart Homes
The panelists then delved into the efforts required to make Home AI a reality. Moderator Carolina Milanesi, CEO and founder of Heart of Tech and President at Creative Strategies, introduced the topics of integrated AI platforms and industry standards to guide the discussion.

“As we scale our AI platform to reach across applications, services and multiple devices, the experience can be optimized around the user,” said Chomet. “User context and richer insights can be gathered to deliver relevant and truly personalized experiences.”

▲ Jaeyeon Jung and Patrick Chomet from Samsung Electronics

“The SmartThings platform is 10 years in the making and while the concept of a smart home isn’t new, AI technology is what is truly creating the intelligent home” added Jung, highlighting how a consistent and connected AI platform empowers users to enjoy effortless convenience from anywhere. “The transition from a device-centric philosophy to an AI-powered, user-centric one provides users with a personalized, connected experience that feels like home — no matter where they are.”

▲ Tobin Richardson from the Connectivity Standards Alliance

Tobin Richardson, President and CEO of the Connectivity Standards Alliance (CSA), noted the importance of industry standards in building an ecosystem in which devices can be connected simply, securely and seamlessly.

“Building blocks for AI in the home are grounded in seamless connectivity, with AI relying on device interoperability to thrive. A common language like Matter enables devices to communicate effortlessly, setting the stage for AI innovation,” he said, highlighting that the goal is not just to create a perfect connected experience but to foster a robust and trustworthy industry while making smart homes more accessible and reliable.

“Alliance Members like Samsung are doing remarkable work in the AI space, showcasing how technology can adapt to users’ needs, creating a smarter and more personalized living experience,” said Richardson, reaffirming the company’s dedication to collaboration. “I am continually inspired to see how these advancements are shaping the future of connected homes.”

A More Personalized, Secure Smart Home
Addressing concerns regarding the challenge of providing personalized experiences in homes shared by multiple people, Chomet spoke on how AI technology can understand intent and context to provide an optimized experience for each user. He emphasized that Samsung will innovate for multi-device connectivity, rather than individual products.

▲ Patrick Chomet, Jaeyeon Jung and Tobin Richardson

Jung also cited practical cases of how Samsung Health and SmartThings are connecting data and devices to provide hyper-personalized health experiences. For example, Samsung Health and SmartThings can optimize sleep environments by automatically adjusting temperature and humidity based on users’ sleep patterns and the environmental conditions they live in. When Galaxy devices recognize that users have been exercising, SmartThings will activate appliances such as air conditioners and washing machines upon their return home.

▲ Carolina Milanesi poses questions to the panelists.

The discussion then touched on the critical role of security and the protection of personal information in smart homes.

“Samsung places the highest priority on security in every aspect,” said Jung. She highlighted how Knox Matrix safeguards the smart home ecosystem while Knox Vault protects hardware. “By integrating the expansive SmartThings ecosystem and AI with the robust security of Samsung Knox, users can enjoy personalized smart living experiences safely.”

“With more than eight out of ten consumers stating that security is ‘important’ or ‘very important’ to them, security and privacy protection are key factors,” said Richardson, echoing the importance of trust in connected devices. “Matter, our next-generation smart home standard, is built with security in mind and offers a level of trust and clarity users can rely on.”

The Home AI session highlighted the advancements AI brings to creating smarter, safer and more adaptive living spaces. By combining hyper-personalized experiences with advanced security measures, Samsung’s innovations are paving the way for a new era of intelligent, connected homes that integrate into every aspect of daily life.

MIL OSI Economics –

January 25, 2025

MIL-OSI China: Cross-border trips to see uptick in Spring Festival

Source: China State Council Information Office 2

Foreign tourists enter China at an immigration inspection station at Beijing Daxing International Airport in Beijing on Jan 2. [Photo by Li Xin/Xinhua)

China will see an average of 1.85 million cross-border trips every day during the upcoming Spring Festival holiday, a 9.5 percent year-on-year increase, the National Immigration Administration has estimated.
A slight increase will likely occur in cross-border trips through large international airports in China during the holiday, the administration said at a statement issued on Friday.
These airports are expected to see a peak in the number of passengers making outbound trips for three days from Tuesday, the first day of the holiday, to Thursday, the administration said.
They will also likely see an influx of passengers on Feb 3 and Feb 4, the last two days of the Spring Festival holiday.
Forecasts for the average daily number of passengers making cross-border trips during the holiday from four major airports in Beijing, Shanghai, Guangzhou in Guangdong province and Chengdu in Sichuan province were revealed by the administration. Shanghai Pudong International Airport will likely see as many as 95,000 such passengers on average every day, it said in the statement.
The administration added that it has required ports across the country to strengthen monitoring of cross-border travel flows during the holiday and issue related information promptly to help people arrange their trips properly.
It has also asked ports to deploy a sufficient number of staff and open enough passages to improve the efficiency of exit-entry procedures, saying that the ports should ensure Chinese travelers have to wait no more than 30 minutes in line before passing through.
LY.com, a travel agency based in Suzhou, Jiangsu province, said the eight-day Spring Festival holiday and the slight drop in the prices of international flight tickets compared with the same period last year have encouraged outbound travel.
Trip.com Group, another travel agency, said in a report released earlier this month that Japan, Thailand and Malaysia were among the popular countries for outbound travel during the Spring Festival.
Su Menghui, an intern at an internet company in Shanghai, said she will make an 11-day trip to Japan starting during the Spring Festival holiday. She will visit Wakayama and Hokkaido.
The 23-year-old said she had planned the trip about three months in advance, as longer holidays — such as National Day and Spring Festival — are her first choice for traveling abroad, though flight tickets tend to be much more expensive than usual.
She said she will also consider traveling to nearby countries, such as Japan and South Korea, during weekends. For example, a weekend is “totally sufficient” for a trip from Shanghai to Jeju Island in South Korea, she added.

MIL OSI China News –

January 25, 2025

MIL-OSI China: Consumers to play bigger role in spurring growth

Source: China State Council Information Office

China’s consumption, powered by a more proactive fiscal policy and a moderately loose monetary policy, will bring out greater vitality and play a bigger role in spurring overall economic growth this year, said officials and executives.

Consumer goods trade-in initiatives will serve a strong catalyst in boosting market sentiment and fueling consumer spending in the world’s second-largest economy, in the face of escalating trade barriers and the tepid appetite in the property market, they added.

China has put scaling up domestic demand high on its policy agenda this year, with expanding consumption a top priority. Policymakers have fleshed out a set of specific measures to this end, Vice-Minister of Commerce Sheng Qiuping said at a news conference.

“Governmental stimulus is key to elevating consumer sentiment, and this significant support will be instrumental in upgrading consumption and driving high-quality development,” said Jean-Paul Agon, chairman of L’Oreal Group.

In particular, the country’s trade-in initiatives, which have contributed to a more than 1 percentage point increase in the annual growth of the country’s total retail sales last year, will cover a wider range of consumer goods and offer more attractive incentives this year, Sheng said.

China is likely to double the funding for its consumer goods trade-in initiatives this year, reaching 300 billion yuan ($41.4 billion), said Wang Qing, chief macroeconomic analyst at Golden Credit Rating International.

This move is forecast to lead to an additional 750 billion yuan in consumption in 2025, equivalent to a 1.5 percentage point acceleration in the growth rate of total retail sales of consumer goods, Wang added.

As of Thursday, the government has received 34,000 applications for car trade-ins so far this year, while 844,000 consumers have purchased more than 1 million home appliances under the initiative, data from the ministry showed.

Notably, some 7.92 million consumers have already applied for 10.79 million digital devices, since the trade-in program in this newly added category began on Monday, according to the ministry.

These consumption-boosting initiatives are off to a good start, as they align with the growing consumer desire for technological innovation, improved efficiency and enhanced aesthetics, Wang said.

In China’s rapidly evolving consumer market, marked by a constant stream of new products and technologies, the key to success is not just the sheer volume of offerings, but rather the level of personalization, sophistication and relevance that companies can bring to the table, said Victor Leal Negre, senior vice-president of Greater China Grooming at Procter & Gamble.

“Each year, we feel the evolving consumption demands of Chinese consumers, which translates into our product innovations, allowing us to serve consumers more effectively,” Negre said.

Looking ahead to this year, China will continue to expand high-level opening-up, particularly in the services sector, which will further strengthen its role in stabilizing growth, employment and household incomes, Zhu said.

Meanwhile, the government can offer more policy support to help localities purchase existing housing stock for affordable and rental housing purposes, which will also address the financing difficulties faced by real estate developers, Zhu added.

With the gradual stabilization of the real estate market and the deepening implementation of government policies to stimulate consumption, consumer confidence is expected to rebound substantially in the next 12 to 18 months, global management consultancy McKinsey & Company said in a report in October.

MIL OSI China News –

January 25, 2025

MIL-OSI Submissions: Environment – First global gathering of Food and Plastics Networks to prevent devastating environmental impacts

Source: WRAP

Pact Network Connect 2025 – First global gathering of Food and Plastics Networks share actions to cut food and plastic waste and prevent devastating effects on planet.

Representatives from 15 countries met in Mexico this week for Pact Network Connect 2025, a three-day programme focussed on addressing the issue of our broken food systems, and the spiralling environmental cost of plastic pollution and waste.

Convened by global environmental action NGO WRAP, Pact Network Connect 2025 was the first time the two networks – 13 international Plastics Pacts run in conjunction with the Ellen MacArthur Foundation – and 11 Food Pacts met as one to share experiences and strategies to strengthen collaborative efforts on the two environmental crises.

The Pacts represent collaborative action initiatives formed in country by private and public sector organisations, charities and NGOs. Representatives from the Pact Secretariats joined investors and philanthropic organisations to co-design solutions to key food and plastics triggers. Focus was on generating practical steps and actions to tackle plastics pollution within the 19 countries comprising the Plastics Pact Network – and share more widely, and address food waste and loss in the 10 countries encompassing the first Food Pact Network.

Harriet Lamb, CEO WRAP, “The numerous Pacts are the engine rooms driving forward a new circular economy for plastics and food. They give me hope that we can correct the failures of our food and plastic systems. They show that ahead of securing global inter-governmental agreements at scale, companies, ngos and governments can get behind voluntary action as an agile and effective front runner along the road to transformation. We’re delighted to be in Mexico, bringing together leaders from the food and plastics Pacts for the first ever joint global meeting to share solutions and accelerate change.”

Pact Network Connect 2025 built on the learnings and progress achieved in the first Plastic Pact Network meeting, held in South Africa in 2024 inspiring the move to bring together both Food and Plastics Pacts to amplify impact. The Plastics Pact Network meeting had an added sense of urgency this year, given the lack of agreement on key elements for a global treaty to end plastic pollution at INC5 negotiations in Busan 2024. To achieve this, we need ambitious regulation to complement and accelerate voluntary efforts and create a level playing field for all businesses. The Plastics Pacts are uniquely placed to inform and enable policymaking and treaty implementation through the Network’s large repository of tools, insights, guidance, and standardised definitions.

Marta Longhurst, Pacts and Field-building Lead Ellen MacArthur Foundation, “The Plastics Pacts have proved that such a network can deliver real impact towards eliminating plastic waste and pollution. Thanks to Plastics Pacts, tens of billions of problematic or unnecessary plastic items have been eliminated; design for reusability, recyclability, and composability in practice and at scale has increased by 23%; and incorporation of recycled content back into packaging has increased by 44%. We are pleased to see the tangible impact of the Plastics Pacts, and to see this knowledge shared and applied to other sectors to accelerate the transition to a circular economy worldwide.”

The Plastics Pact Network is a global coordinated response to the hazards plastics pose to people and the planet. Managed through a partnership between WRAP and the Ellen MacArthur Foundation, in just six years the Plastic Pacts have led work tackling pollution and delivering impact on national and global scales. The Network includes over 900 local and global organisations across a 19-country membership. Its members have eliminated more than 360,000 tonnes of problematic and unnecessary plastics and increased recycled content in their packaging by 44% – reducing virgin plastic by 2.2 million tonnes by 2022. All Plastics Pacts align in a common vision to create a circular economy for plastics and eliminate waste and pollution.

Alejandra Kopaitic, Directora Consumo y Producción Sustentable y Pacto Chileno de los Plásticos, “Pact Network Connect is a key event when many countries can share experiences, foster regional collaboration, and strengthen our global partnerships. It will enrich the Chilean Plastics Pact as part of this international network committed to systemic change. We are here to listen, learn, and collaborate, while showcasing the work we are doing in Chile and aligning our goals with international experience and best practices.”

Ninel Escobar, Director of Climate Change WWF Mexico, “In México, between 38% and 58% of plastic waste is mismanaged. Resolving this problem requires us to work along the whole life cycle of plastic, using a systemic approach. We are pleased to join our Pact partners at Pact Network Connect to share our experiences of resolving these complex problems.”

The Food Pact Network connects collaborative action initiatives within individual countries to a global community dedicated to reducing food loss and waste. This is the first time the group has joined forces in person as the Food Pact Network, and through the universal adoption of the principles of Target-Measure-Act the Pacts are changing how food is produced and consumed to support the UN Sustainable Development Goal 12.3 to halve global food waste by 2030.

Notes

The Plastics Pact Network includes: ANZPAC Plastics Pact, The Canada Plastics Pact, Polski Pakt Plastikowy – The Polish Plastics Pact, The U.S. Plastics Pact, Pacto Português para os Plásticos- The Portuguese Plastics Pact, The South African Plastics Pact, UK Plastics Pact, Pacte National sur les emballages plastiques – French Plastics Pact, Circula El Plástico – The Chilean Plastics Pact, The Kenya Plastics Pact (KPP), Colombia Plastics Pact, India Plastics Pact and Mexico Plastics Pact.

The Food Pact Network includes: Courtauld Commitment 2030 (UK), South Africa Food Loss and Waste Initiative, Pacific Coast Food Waste Commitment, Pacto Por La Comida (Mexico), GRASP 2030 (Indonesia), Brasil Sem Desperdisio (Brazil, launching in 2025), U.S. Food Waste Pact, Samen Tegen Voedselverspilling (Netherlands) , Kai Commitment (New Zealand) and the International Food Waste Coalition.

WRAP is a global environmental action NGO catalysing policy makers, businesses and individuals to transform the systems that create our food, textiles and manufactured products. Together these account for nearly 50% of global greenhouse emissions. Our goal is to enable the world to transition from the old take-make-dispose model of production to more sustainable approaches that will radically reduce waste and carbon emissions from everyday products. To do so we examine sustainability challenges through the lens of people’s day-to-day lives and create solutions that can transform entire systems to benefit the planet, nature and people.

Our work includes: UK Plastics Pact, Courtauld Commitment 2030, Textiles 2030 and the campaigns Love Food Hate Waste and Recycle Now. We run Food Waste Action Week and Recycle Week.

MIL OSI – Submitted News –

January 25, 2025

MIL-OSI USA: Boozman Joins Legislation to Protect Survivors of Abortion

US Senate News:

Source: United States Senator for Arkansas – John Boozman
WASHINGTON––U.S. Senator John Boozman (R-AR) joined Senator James Lankford (R-OK) to introduce the Born–Alive Abortion Survivors Protection Act to protect newborns who survive abortions by requiring they receive care from health care practitioners.
The Born-Alive Abortion Survivors Protection Act adds clear expectations of care, hospital transfer requirements, mandatory reporting, private rights of action for moms and reasonable criminal penalties for health care professionals who violate the law. Current law does not provide measures to enforce the protection of these infants, which has allowed the current practice of leaving a child to die after a botched abortion to continue.
“As a society, we should always uphold the dignity of every life. Neglecting to provide life-saving care after a failed abortion is a cruel and inhumane violation of the oath every medical provider swears by to ‘do no harm,’” said Boozman. “I am proud to join my colleagues to protect vulnerable babies regardless of the circumstances of their birth.”
“No child should be denied medical care simply because they are ‘unwanted.’ Today, if an abortion procedure fails and a child is born alive, doctors can just ignore the crying baby on the table and watch them slowly die of neglect. That’s not an abortion, that’s infanticide,” said Lankford.
This legislation is endorsed by March for Life Action, American Association of Pro-Life OBGYNs Action, Susan B. Anthony Pro-Life America, Concerned Women for America LAC, National Right to Life, the Ethics and Religious Liberty Commission, Live Action, Americans United for Life, Family Research Council, Students for Life Action, Alliance Defending Freedom, U.S. Conference of Catholic Bishops, Heritage Action, Family Policy Alliance, Human Coalition, Liberty Council Action, Ethics and Public Policy Center, Christian Employers Alliance, Advancing American Freedom, Focus on the Family, First Rights Global, AdvanceUSA, Coalition for Jewish Values, National Association of Evangelicals, Eagle Forum, Christian Legal Society, Christian Medical and Dental Associations, Faith and Freedom Coalition, Christ Medicus Foundation, Christians Engaged, Children’s AIDS Funds International, Capability Consulting and Catholic Health Care Leadership Alliance.
The Born–Alive Abortion Survivors Protection Act is cosponsored by Senate Majority Leader John Thune (R-SD) and Senators Jim Banks (R-IN), Cindy Hyde-Smith (R-MS), Jim Risch (R-ID), Cynthia Lummis (R-WY), Katie Britt (R-AL), Mitch McConnell (R-KY), Roger Wicker, (R-MS), Marsha Blackburn (R-TN), Mike Crapo (R-ID), Deb Fischer (R-NE), Chuck Grassley (R-IA), John Hoeven (R-ND), Roger Marshall, M.D. (R-KS), Thom Tillis (R-NC), Ted Budd (R-NC), Tim Scott (R-SC), Ron Johnson (R-WI), Tim Sheehy (R-MT), Tommy Tuberville (R-AL), Bill Hagerty (R-TN), John Curtis (R-UT), Todd Young (R-IN), Pete Ricketts (R-NE), Kevin Cramer (R-ND), John Barrasso (R-WY), John Kennedy (R-LA), John Cornyn (R-TX), Bill Cassidy, M.D. (R-LA), Mike Rounds (R-SD), Joni Ernst (R-IA), Rick Scott (R-FL), Steve Daines (R-MT), Markwayne Mullin (R-OK), Lindsey Graham (R-SC), Ted Cruz (R-TX), Eric Schmitt (R-MO), Mike Lee (R-UT), Dan Sullivan (R-AK), Jerry Moran (R-KS), Tom Cotton (R-AR), Josh Hawley (R-MO) and Dave McCormick (R-PA).
Click here to read the text of the legislation.

MIL OSI USA News –

January 25, 2025

MIL-OSI USA: Boozman, Wicker Introduce Legislation to Block Taxpayer Funded Abortions

US Senate News:

Source: United States Senator for Arkansas – John Boozman
WASHINGTON ––U.S. Senators John Boozman (R-AR) and Roger Wicker (R-MS) introduced the No Taxpayer Funding for Abortion and Abortion Insurance Full Disclosure Act to make the Hyde Amendment, which prevents the use of taxpayer dollars to fund abortions, permanent.
Under current law, the Hyde Amendment must be reauthorized by Congress every year.
“There has a been longstanding, bipartisan agreement that Americans should not be forced to subsidize abortions with their hard-earned tax dollars,” said Boozman. “Recent attempts to undermine that standard are troubling and we should set a standard across the federal government that protects the consciences of millions in the pro-life community.
“Millions of Americans share my belief that unborn life should be protected in the womb. Using taxpayer dollars to fund abortions is wrong,” Wicker said. “My Senate Republican colleagues, and I will continue fighting to preserve life.”
The legislation is also cosponsored by Senate Majority Leader John Thune (R-SD) and Senators James Lankford (R-OK), Cindy Hyde-Smith (R-MS), Jim Banks (R-IN), John Barrasso (R-WY), Marsha Blackburn (R-TN), Katie Britt (R-AL), Ted Budd (R-NC), Shelly Moore Capito (R-WV), Bill Cassidy, M.D. (R-LA), John Cornyn (R-TX), Tom Cotton (R-AR), Kevin Cramer (R-ND), Mike Crapo (R-ID), Ted Cruz (R-TX), John Curtis (R-UT), Steve Daines (R-MT), Joni Ernst (R-IA), Deb Fischer (R-NE), Lindsey Graham (R-SC), Chuck Grassley (R-IA), Bill Hagerty (R-TN), Josh Hawley (R-MO), John Hoeven (R-ND), Ron Johnson (R-WI), Jim Justice (R-WV), John Kennedy (R-LA), Mike Lee (R-UT), Cynthia Lummis (R-WY), Roger Marshall, M.D. (R-KS), Mitch McConnell (R-KY), Jerry Moran (R-KS), Markwayne Mullin (R-OK), Pete Ricketts (R-NE), Jim Risch (R-ID), Mike Rounds (R-SD), Eric Schmitt (R-MO), Rick Scott (R-FL), Tim Scott (R-SC), Tim Sheehy (R-MT), Dan Sullivan (R-AK), Thom Tillis (R-NC), Tommy Tuberville (R-AL) and Todd Young (R-IN).
Companion legislation was introduced in the U.S. House of Representatives by Congressman Chris Smith (R-NJ-04).
The No Taxpayer Funding for Abortion and Abortion Insurance Full Disclosure Act of 2025is endorsed by multiple pro-life groups. Here’s what they are saying about the bill.
“No matter which party holds power in Washington, Americans should never be forced to fund the violence of abortion with their tax dollars. For nearly 50 years, the Hyde Amendment and its family of policies have protected babies in the womb and their mothers from abortion by prohibiting taxpayer funding of abortion on demand. Despite Americans’ strong support of this policy, pro-abortion members of Congress attack the Hyde family in every spending bill. The No Taxpayer Funding for Abortion and Abortion Insurance Full Disclosure Act would finally apply Hyde principles permanently across the whole federal government, including stopping abortion subsidies in Obamacare,” said Vice President of Government Affairs of Susan B. Anthony Pro-Life America Marilyn Musgrave.
“This Act rightly prevents hard-earned taxpayer dollars from paying for harmful abortions. We at March for Life Action will continue to advocate for legislation that ensures our taxpayer dollars promote life-saving, pro-women, and pro-family policies,” said March for Life Action President Jeanne F. Mancini.

MIL OSI USA News –

January 25, 2025

Category: Business