NewzIntel.com

Category: Commerce

  • MIL-OSI China: China, EU reiterate willingness to solve EV dispute via dialogue

    Source: China State Council Information Office

    China and the European Union(EU) have reiterated willingness to solve the dispute over EU’s anti-subsidy investigation into Chinese electric vehicles through dialogue.

    The two sides have decided to continue to make price commitment as the solution to the case, according to a statement released by China’s Ministry of Commerce after a talk held via video link on Friday between China’s Commerce Minister Wang Wentao and European Commission Executive Vice President and Trade Commissioner Valdis Dombrovskis.

    There are strong calls and high expectations from various sectors in China and Europe for the proper handling of the case, said Wang.

    Since Sept. 20, intensive negotiations have been conducted between the two sides regarding the price commitment, with some positive progress made in certain aspects, but significant differences still exist on issues of core concern to the business communities in China and Europe, he said.

    Wang noted that China will unswervingly safeguard the legitimate rights and interests of its enterprises. He also expressed the hope that both sides will continue to advance negotiations based on the previous stage of consultations, and achieve substantive breakthroughs as soon as possible.

    In the next stage of price commitment negotiations, consultations should be conducted based on mutual consideration of core concerns, and in accordance with the principles of pragmatism and balance, said Wang, adding that both the effectiveness of the agreement and the core interests of enterprises should be taken into account.

    A bilateral communication mechanism should be established for the implementation and supervision of price commitment on the basis of mutual trust, he explained.

    The European side has put forward specific suggestions regarding the price commitment plan and proposed that technical teams from both sides engage in video consultations on this matter. The Chinese side agrees to immediately start the next stage of negotiations and welcomes the European technical team to come to China as soon as feasible.

    The two sides also exchanged views on the trade remedy investigations initiated by China against certain EU goods, such as brandy, pork and dairy products.

    The Chinese side emphasized that these investigations were initiated at the request of domestic industries, in full compliance with the rules of the World Trade Organization, as well as Chinese laws and regulations.

    China will continue to conduct the investigations in accordance with the law and regulations, and fully safeguard the legitimate rights and interests of all parties involved, according to the ministry. 

    MIL OSI China News –

  • MIL-OSI Economics: IKEA, Argos and John Lewis set to benefit from furniture’s recovery in Q4 2024, says GlobalData

    Source: GlobalData

    IKEA, Argos and John Lewis set to benefit from furniture’s recovery in Q4 2024, says GlobalData

    Posted in Retail

    The UK furniture and floorcoverings market is set to return to growth in Q4 2024 after six quarters of decline as the October Budget should remove a dampener on consumer confidence, and the 10.9% uplift in housing transactions between April and August 2024 and real wage growth filter through. This presents an opportunity for retailers with shorter lead times, such as IKEA, Argos, and John Lewis, and those who have invested in domestic manufacturing, according to GlobalData, a leading data and analytics company.

    Matt Walton, Senior Retail Analyst at GlobalData, comments: “Furniture and floorcoverings has had a challenging 2024 as shoppers have prioritized essentials and consumer confidence has been brittle. Future consumer sentiment has taken a sharp downturn recently, after a recovery in H1 2024, mainly due to concerns about how the Budget will affect shoppers’ finances. However, should its impact be marginal, the recovery in consumer confidence will boost spend on big-ticket categories.”

    An increase in housing transactions since April 2024 and a full year of real wage growth will also help release pent-up demand. There are signs of this release starting, with DFS reporting year-on-year order growth since July and figures from GlobalData’s Consumer Sentiment Tracker showing that a greater proportion of shoppers will spend more on furniture and floorcoverings over the next six months on a year-on-year basis, with a particular uplift since July 2024. However, weak consumer confidence is currently inhibiting spend.

    Walton continues: “Once the Budget has been announced and consumers can gauge their financial position, the current pent-up demand will start to be released. IKEA, Argos and John Lewis are among the retailers who will benefit from this. The Budget will occur after the deadline for Christmas delivery has passed for many furniture specialists, so retailers with shorter lead times will benefit initially from the recovery. Retailers who have invested in domestic manufacturing, such as DFS, Bensons for Beds and Dreams, will also benefit as they can circumnavigate the current Red Sea disruption.

    Walton concludes: “Retailers with shorter lead times, like John Lewis, will be among the main beneficiaries from the improving conditions in Q4, and it will also benefit from Marks & Spencer exiting furniture, the return of Never Knowingly Undersold and the launch of new upholstery ranges.”

    MIL OSI Economics –

  • MIL-OSI Economics: UK non-food online penetration set to improve for first time since COVID-19 pandemic, says GlobalData

    Source: GlobalData

    UK non-food online penetration set to improve for first time since COVID-19 pandemic, says GlobalData

    Posted in Retail

    The UK non-food online market is set to grow by 2.9% to reach £106m in 2024, with online penetration forecast to climb to 39%, marking an improvement for the first time since the COVID-19 pandemic, according to GlobalData, a leading data and analytics company. GlobalData anticipates the non-food online market growth will outpace the total retail market, which is expected to increase by 2.1% in 2024.

    Tash Van Boxel, Retail Analyst at GlobalData, comments: “Retailers must diversify online capabilities to take advantage of increased online demand. Enhancing online services will be essential, such as implementing AI powered tools to strengthen apps and websites and improving fulfilment services. Not doing so will expose retailers to fluctuations in footfall, impacting offline demand. A strong online proposition can help retailers convert online browsers to purchase through services such as Click & Collect.”

    As online growth is set to continue, retailers must ensure that delivery services provide good value for money and high efficiency. 85% of frequent online shoppers* would switch away from their favourite online retailer if they could find faster delivery for the same item elsewhere, according to GlobalData’s September 2024 Consumer Views survey**. A further 60% of frequent online shoppers stated that the delivery experience impacts whether they shop at the retailer again.

    Van Boxel continues: “Online shoppers value the delivery experience and will switch away to competitors if the experience goes sour. Prioritising cost-effective delivery methods is crucial for retailers to retain customers, ensuring shoppers have options, such as next-day delivery and nominated-day delivery at reasonable prices. Retailers must also be cautious about which couriers they partner with, as shoppers will look elsewhere if the only available courier has proved to be unreliable in the past.”

    Social media will play a vital role in the growth of the non-food online market, as consumers increasingly shop directly through social media platforms. 49.0% of UK consumers use Instagram, and 30.9% use TikTok, according to GlobalData’s October 2024 survey. Usage is highest among Gen Z consumers, with 88% using Instagram and 74% using TikTok.

    Van Boxel concludes: “Social media is growing as a retail channel, but given the variation in usage among the generations, retailers need to cater their content on each platform to reach their target audience. As younger consumers utilise Instagram and TikTok more than their older counterparts, retailers must tailor content to this demographic. For example, collaborations with content creators are more likely to resonate with younger consumers who are more trusting of social media reviews than sponsored posts announcing new product launches, which may capture all age groups. Personalising marketing campaigns and content will be key to growing retailers’ customer bases and bolstering online traffic.”

    *A frequent shopper is defined as a consumer who shops online every few days or once a week

    **GlobalData’s October 2024 and September 2024 monthly surveys were conducted with 2,000 respondents

    MIL OSI Economics –

  • MIL-OSI United Kingdom: Chancellor to unlock housing in first Budget

    Source: United Kingdom – Executive Government & Departments 3

    The Budget will deliver more affordable housing, ensure social housing is available for those who need it and turbocharge the delivery of 1.5 million homes.

    A housing package announced today will deliver up to 5,000 new affordable social homes with £500 million in new funding for the Affordable Homes Programme. This brings total investment in housing supply to over £5 billion and supports the delivery of 33,000 new homes through £128 million for housing projects across the country.   

    Meanwhile, the stock of social housing will be increased through a new 5-year social housing rent settlement that will give the sector more long-term certainty on funding and allow them to invest in tens of thousands of new homes. The existing stock will also be protected by reducing Right to Buy discounts so that thousands more council homes remain in the sector.

    Chancellor of the Exchequer, Rachel Reeves said:

    We need to fix the housing crisis in this country. It’s created a generation locked out of the property market, torn apart communities and put the brakes on economic growth.

    We are rebuilding Britain by ramping up housebuilding and delivering the 1.5 million new homes we so badly need.

    Deputy Prime Minister, Angela Rayner said:

    We have inherited a housing system which is broken, with not enough homes being built and even fewer that families can afford.

    This is a further significant step in our plan to get Britain building again, backing the sector, so they can help us deliver a social and affordable housing boom, supporting millions of people up and down the country into a safe, affordable and decent home they can be proud of.

    The £500 million to deliver thousands of new social and affordable homes is a top-up to the existing Affordable Homes Programme and comes ahead of the Government’s Housing Strategy due in the Spring.

    The Government will set out details of new investment to succeed the 2021-26 Affordable Homes Programme at the Spending Review. This will lay the foundations for the manifesto commitment to deliver the biggest increase in social and affordable housebuilding in a generation, and to support councils and housing associations to build their capacity and make a greater contribution to affordable housing supply.

    It will deliver a mix of homes for sub-market rent and home-ownership, with a particular focus on delivering homes for Social Rent.

    The Government will also consult on a new 5-year social housing rent settlement, which caps the rents social housing providers can charge their tenants, to provide the sector with the certainty it needs to invest in new social housing. The intention would be for this to increase with Consumer Price Index inflation figures and an additional 1%. The consultation will also seek views on other potential options to give greater certainty, such as providing a 10-year settlement.  

    These measures to increase affordable housing come alongside changes to the Right to Buy scheme, which will protect existing social housing stock to meet housing need and deliver a fairer and more sustainable scheme.

    England’s existing social housing supply is depleted every year by the scheme while also disincentivising councils to build new social housing.

    Discounts will be reduced alongside greater protections for newly-built social housing and councils will be able to keep 100% of the receipts generated by a Right to Buy sale. This will enable councils to scale-up delivery of much needed social housing whilst still enabling longstanding tenants to buy their own homes.

    The £128 million will support the delivery of new housing projects – including up to 28,000 new builds currently blocked by river pollution – cleaning up our rivers in the process – 3,000 energy efficient homes across the country and 2,000 new homes in North Liverpool.

    Meanwhile the £56 million investment at Liverpool Central Docks will also deliver office, retail, leisure and hotel facilities alongside the new homes. As well as demonstrating our brownfield-first approach, it will transform Liverpool’s former docklands into a thriving waterfront neighbourhood. 

    Kate Henderson, Chief Executive of the National Housing Federation, says:

    We strongly welcome the £500m top-up to the affordable homes programme. This vital injection of funding, which we’ve been urgently calling for, will support housing associations to continue to deliver much needed affordable homes in the immediate term and prevent a collapse in delivery.

    We share the government’s ambition to build 1.5million homes over this parliament and stand ready to deliver the social homes needed, which is why we welcome a consultation on a new rent settlement.  This will provide both transparency for residents and long term certainty and financial stability for social housing providers. We also support the government’s decision to review right to buy discounts.

    To achieve the affordable homes needed across the country, alongside this short term top-up, we look forward to a new long term housing strategy announced at the next spending review, including a significant boost in funding for social housing.

    Charlie Nunn, Chief Executive of Lloyds Banking Group, said:

    As the biggest supporter of social housing in the UK, we welcome the announcement of the funding boost for the Affordable Homes Programme and the plans to consult on a long-term social housing rent settlement.

    A safe and lasting home is the foundation for so many essential needs and strong socio-economic outcomes.  We need greater provision of housing which is both sustainable and genuinely affordable to enable our communities to thrive.

    Councillor Louise Gittins, LGA Chair, said:

    We are pleased the Government has acted on our call to increase Affordable Homes Programme funding. We have made the case for councils to be empowered to build more affordable, good quality homes quickly and at scale and this will boost councils’ ability to build desperately-needed affordable housing for local communities.

    It has become increasingly impossible for councils to replace homes as quickly as they’re being sold through the Right to Buy (RTB) scheme. The LGA has long-called for reform to RTB and these positive measures will support the replacement of sold homes and to stem the continued loss of existing stock.

    A 5-year rent settlement is a step in the right direction in providing certainty for councils on rental income, but to really strengthen and provide stability to Housing Revenue Accounts, a minimum 10-year rent settlement is needed, alongside restoration of lost revenue due to the rent cap and a review of the self-financing settlement of 2012. This would better support long-term business planning to ensure councils can deliver high quality homes and associated support for their tenants.

    Councils stand ready to work with the Government to increase affordable housing and help people on council housing waiting lists and record numbers stuck in temporary accommodation.

    Additional information

    The government is confirming £128 million of funding to deliver the following projects which will deliver much-needed new homes at complex brownfield sites as well provide long-term solutions to improve the supply of homes:

    • Confirmation of a £56 million investment at Liverpool Central Docks which is expected to deliver 2,000 homes in North Liverpool, along with office, retail, leisure, and hotel facilities. This will transform Liverpool’s former dockland into a thriving waterfront neighbourhood.
    • A £25 million investment in a joint venture to establish a new fund with Muse Places Limited and Pension Insurance Corporation to deliver 3,000 energy-efficient new homes across the country, with a target of 100% of these being affordable.
    • The confirmation of £47 million to local authorities to tackle pollution in our rivers, which has halted housebuilding in highly polluted areas. This funding could support the delivery of an estimated 28,000 homes that cannot be built currently due to these restrictions. This funding will not only unlock much needed new housing but also clean up our rivers in the process.

    Updates to this page

    Published 26 October 2024

    MIL OSI United Kingdom –

  • MIL-OSI China: China, EU seek dialogue to resolve EV dispute

    Source: China State Council Information Office 3

    China and the European Union(EU) have reiterated willingness to solve the dispute over EU’s anti-subsidy investigation into Chinese electric vehicles through dialogue.

    The two sides have decided to continue to make price commitment as the solution to the case, according to a statement released by China’s Ministry of Commerce after a talk held via video link on Friday between China’s Commerce Minister Wang Wentao and European Commission Executive Vice President and Trade Commissioner Valdis Dombrovskis.

    There are strong calls and high expectations from various sectors in China and Europe for the proper handling of the case, said Wang.

    Since Sept. 20, intensive negotiations have been conducted between the two sides regarding the price commitment, with some positive progress made in certain aspects, but significant differences still exist on issues of core concern to the business communities in China and Europe, he said.

    Wang noted that China will unswervingly safeguard the legitimate rights and interests of its enterprises. He also expressed the hope that both sides will continue to advance negotiations based on the previous stage of consultations, and achieve substantive breakthroughs as soon as possible.

    In the next stage of price commitment negotiations, consultations should be conducted based on mutual consideration of core concerns, and in accordance with the principles of pragmatism and balance, said Wang, adding that both the effectiveness of the agreement and the core interests of enterprises should be taken into account.

    A bilateral communication mechanism should be established for the implementation and supervision of price commitment on the basis of mutual trust, he explained.

    The European side has put forward specific suggestions regarding the price commitment plan and proposed that technical teams from both sides engage in video consultations on this matter. The Chinese side agrees to immediately start the next stage of negotiations and welcomes the European technical team to come to China as soon as feasible.

    The two sides also exchanged views on the trade remedy investigations initiated by China against certain EU goods, such as brandy, pork and dairy products.

    The Chinese side emphasized that these investigations were initiated at the request of domestic industries, in full compliance with the rules of the World Trade Organization, as well as Chinese laws and regulations.

    China will continue to conduct the investigations in accordance with the law and regulations, and fully safeguard the legitimate rights and interests of all parties involved, according to the ministry. 

    MIL OSI China News –

  • MIL-OSI: FinTech360’s Unified Communication Hub Redefines Forex Broker Efficiency

    Source: GlobeNewswire (MIL-OSI)

    Hong Kong, Oct. 21, 2024 (GLOBE NEWSWIRE) — With over a decade of expertise in the forex industry, FinTech360.com continues to set new benchmarks in B2B fintech solutions. Known for its innovation, FinTech360 has launched its cutting-edge Communication Hub, a revolutionary platform that transforms communication for forex brokers by providing a streamlined, centralized solution. This cloud-based CRM system improves interaction efficiency across various channels, including email, live chat, SMS, and messaging apps like WhatsApp and Telegram, making it an essential tool for brokers seeking to enhance their operational performance.

    FinTech360.com is positioning itself as the ultimate work management platform for the forex market, integrating essential tools for collaboration, communication, and productivity—all while ensuring the highest level of security and regulatory compliance.

    A Secure and Trusted Partner for Forex Brokers

    FinTech360’s Communication Hub offers forex brokers seamless control over multiple communication channels, from messaging apps to push notifications, all managed within a centralized dashboard. The platform enables easy tracking of client data, inquiries, and interactions, allowing brokers to provide better customer service in one secure location.

    “The launch of the Communication Hub aligns with the digital transformation in the forex industry. FinTech360 is at the forefront of this shift, helping businesses consolidate their operations for smoother, more secure communications,” said Aaron Bitter, CEO of FinTech360. “As we continue to innovate, we’re proud to serve as a trusted partner to forex brokers worldwide.”

    Security remains at the core of FinTech360’s offering. The Communication Hub safeguards client privacy by implementing an encrypted “click-to-email” feature, ensuring brokers can interact with customers without risking data breaches.

    Key Features of the Communication Hub for Forex Brokers

    • Multichannel Communication: Manage emails, live chats, WhatsApp, Telegram, SMS, and push notifications from a single user interface.
    • Unified Dashboard: All communication is streamlined in one place, helping brokers optimize customer interactions.
    • Advanced Security: Protects customer contact information through encryption and secure communication triggers.
    • Cost-Efficient Operations: By consolidating all communication efforts, the hub improves efficiency and reduces costs.
    • Centralized CRM: Brokers can manage client communication from one central platform, improving back-office operations.

    Expanding FinTech360’s CRM Capabilities

    Beyond communication, FinTech360 offers an omnichannel CRM solution, giving forex brokers comprehensive control over all back-office operations. From KYC and AML compliance to handling payments through its payment gateway, FinTech360 allows brokers to accept payments globally via its network of over 250 providers.

    FinTech360’s Verification Center also plays a crucial role in assisting brokers with regulatory compliance, enabling seamless adherence to KYC, AML, and forex market regulations such as CySEC, ASIC, and the FSCA.

    FinTech360 CRM Features for Forex Brokers:

    • Website CMS and Client Area: Create a custom website reflecting your brand, enhancing the user experience.
    • Verification Center: Keep up with KYC and AML regulations while monitoring and optimizing sales calls.
    • Sales-Focused CRM: Simplify your workflow with automated lead splitting and detailed sales tracking, improving client management.
    • Communication Hub: Use multiple channels to engage with clients and track interactions in real-time.
    • Affiliate Manager: Optimize your affiliate marketing efforts through real-time traffic monitoring and management tools.
    • Full Suite Cashier: Process payments with over 300 integrated PSPs and APMs, supported by advanced risk management features.
    • Web Trading Platform and Apps: Deliver seamless trading experiences with FinTech360’s web and mobile apps, integrated with MT4/MT5 for top-tier security.
    • Business Intelligence (BI) Reports: Track every aspect of your business, from traffic to customer interactions, ensuring data-driven decisions.

    For more information about FinTech360 and its latest cross-device trading solutions, visit FinTech360.

    Disclaimer: The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities.

    The MIL Network –

  • MIL-OSI: Trustco Reports Third Quarter 2024 Net Income of $12.9 Million; Skillful Application of Strong Fundamentals Produce Solid Results

    Source: GlobeNewswire (MIL-OSI)

    Executive Snapshot:

    • Average Loan portfolio continues to grow:
      • On average, total loans were up $127.0 million or 2.6% for the third quarter 2024 compared to the third quarter 2023
    • Continued solid financial results:
      • Key metrics for third quarter 2024:
        • Net income of $12.9 million versus $12.6 million for the second quarter 2024
        • Net interest income of $38.7 million, up from $37.8 million compared to the second quarter of 2024
        • Return on average equity (ROAE) of 7.74% versus 7.76% for the second quarter 2024
    • Capital continues to grow:
      • Consolidated equity to assets increased 6.2% to 10.95% as of September 30, 2024 from 10.31% as of September 30, 2023
      • Book value per share as of September 30, 2024 was $35.19, up from $34.46 compared to June 30, 2024

    GLENVILLE, N.Y., Oct. 21, 2024 (GLOBE NEWSWIRE) —

    TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced third quarter 2024 net income of $12.9 million or $0.68 diluted earnings per share, compared to net income of $14.7 million or $0.77 diluted earnings per share for the third quarter 2023; and net income of $37.6 million or $1.97 diluted earnings per share for the nine months ended September 30, 2024, compared to net income of $48.9 million or $2.57 diluted earnings per share for the nine months ended September 30, 2023. Average loans increased $127.0 million or 2.6% for the third quarter 2024 over the same period in 2023.   TrustCo was able to increase the balances of home equity lines of credit (HECLs) outstanding through an aggressive campaign to encourage existing customers to utilize their HECLs in place of the higher rates on other products.  The objective was to meet customer needs and encourage increased utilization through existing HECLs.

    Overview

    Chairman, President, and CEO, Robert J. McCormick said “Hard, consistent work on the fundamentals of banking once again have served the Trustco Bank team well and enabled us to post strong results under challenging circumstances. Our bankers posted one modest success after another – which accumulated into solid performance. We continued to hold the line on demand accounts and capitalized on strong customer relationships which enabled us to direct the flow into competitively-priced CDs, rather than to non-bank investment products. Not having to purchase expensive deposits or pay excessive rates, helped keep interest expense down, contributing to increased net interest income. We have continued to sell home equity products at favorable rates where origination of purchase mortgages lagged due to lack of sales volume. We booked these new loans at higher interest rates, also boosting net interest margin. Once again, loans reached a new all-time high. All of these efforts by our team resulted in net income of $12.9 million for the quarter.”

    Details

    Average loans were up $127.0 million or 2.6% in the third quarter 2024 over the same period in 2023. Average residential loans and home equity lines of credit, our primary lending focus, were up $50.4 million, or 1.2%, and $60.0 million, or 18.7%, respectively, in the third quarter 2024 over the same period in 2023. Average commercial loans also increased $18.1 million, or 6.9%, in the third quarter 2024 over the same period in 2023. Average deposits were up $15.3 million, or 0.3% for the third quarter 2024 over the same period in 2023. We believe the increase in time deposits compared to the prior year continues to reflect the desire of customers to have additional funds in the safety and security offered by TrustCo’s long history of conservative banking, while earning a competitive interest rate. As we move forward, the objective is to encourage customers to retain these additional funds in the expanded product offerings of Trustco Bank (the “Bank”) through aggressive marketing and product differentiation.

    Net interest income was $38.7 million for the third quarter 2024, an increase of $883 thousand, or 2.3%, compared to the prior quarter, driven by loan growth at higher interest rates and lower cost of deposits, partially offset by lower investment earnings and a decrease in interest on federal funds sold and other short-term investments. The net interest margin for the third quarter 2024 was 2.61%, up 8 basis points from 2.53% in the second quarter of 2024. The yield on interest earnings assets increased to 4.11%, up 5 basis points from 4.06% in the second quarter of 2024. The cost of interest bearing liabilities decreased to 1.94% in the third quarter 2024 from 1.97% in the second quarter 2024. The Bank has seen success in retaining deposits while lowering the rates on time deposits, and still being competitive in the markets it serves. The Federal Reserve’s decision regarding whether to cut or hold rates in upcoming meetings will have an effect on the Bank’s ability to continue to manage deposit costs. Further reductions should help margin expansion in future quarters. Non-interest expense decreased $259 thousand over the prior quarter as a result of the Bank’s ongoing efforts to control expenses.

    Asset quality remains strong and has been consistent over the past twelve months. The Company recorded a provision for credit losses of $500 thousand in the third quarter of 2024, which is the result of a provision for credit losses on loans of $400 thousand, and provision for credit losses on unfunded commitments of $100 thousand. The ratio of allowance for credit losses on loans to total loans was 0.99% and 0.95% as of September 30, 2024 and 2023, respectively. The allowance for credit losses on loans was $50.0 million at September 30, 2024, compared to $47.2 million at September 30, 2023. Nonperforming loans (NPLs) were $19.4 million at September 30, 2024, compared to $17.9 million at September 30, 2023. NPLs were 0.38% and 0.36% of total loans at September 30, 2024 and 2023, respectively. The coverage ratio, or allowance for credit losses on loans to NPLs, was 256.9% at September 30, 2024, compared to 264.2% at September 30, 2023. Nonperforming assets (NPAs) were $21.9 million at September 30, 2024, compared to $19.1 million at September 30, 2023.  

    At September 30, 2024, our equity to asset ratio was 10.95%, compared to 10.31% at September 30, 2023. Book value per share at September 30, 2024 was $35.19, up 7.3% compared to $32.80 a year earlier.

    A conference call to discuss third quarter 2024 results will be held at 9:00 a.m. Eastern Time on October 22, 2024. Those wishing to participate in the call may dial toll-free for the United States at 1-833-470-1428, and for Canada at 1-833-950-0062, Access code 034120. A replay of the call will be available for thirty days by dialing toll-free for the United States at 1-866-813-9403, Access code 285814.   The call will also be audio webcast at https://events.q4inc.com/attendee/854762065, and will be available for one year.

    About TrustCo Bank Corp NY

    TrustCo Bank Corp NY is a $6.1 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 138 offices in New York, New Jersey, Vermont, Massachusetts, and Florida at September 30, 2024.

    In addition, the Bank’s Wealth Management Department offers a full range of investment services, retirement planning and trust and estate administration services. The common shares of TrustCo are traded on the NASDAQ Global Select Market under the symbol TRST.

    Forward-Looking Statements

    All statements in this news release that are not historical are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future development, results or periods. Examples of forward-looking statements include, among others, statements we make regarding our expectations for our future performance, including our expectations regarding the effects of the economic environment on our financial results, our ability to retain customers and the amount of customers’ business, including deposit balances, with us, the impact of the Federal Reserve’s actions regarding interest rates, and the growth of loans and deposits throughout our branch network. Forward-looking statements are based on management’s current expectations as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Such forward-looking statements are subject to factors and uncertainties that could cause actual results to differ materially for TrustCo from the views, beliefs and projections expressed in such statements, and many of the risks and uncertainties are heightened by or may, in the future, be heightened by volatility in financial markets and macroeconomic or geopolitical concerns related to inflation, continued elevated interest rates and ongoing armed conflicts (including the Russia/Ukraine conflict and the conflict in Israel and surrounding areas). TrustCo wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The following important factors, among others, in some cases have affected and in the future could affect TrustCo’s actual results and could cause TrustCo’s actual financial performance to differ materially from that expressed in any forward-looking statement: future changes in interest rates; ongoing inflationary pressures and continued elevated prices; exposure to credit risk in our lending activities; our increasing commercial loan portfolio; the sufficiency of our allowance for credit losses on loans to cover actual loan losses; our ability to meet the cash flow requirements of our depositors or borrowers or meet our operating cash needs to fund corporate expansion and other activities; claims and litigation pertaining to fiduciary responsibility and lender liability; our dependency upon the services of the management team; our disclosure controls and procedures’ ability to prevent or detect errors or acts of fraud; the adequacy of our business continuity and disaster recovery plans; the effectiveness of our risk management framework; the impact of any expansion by us into new lines of business or new products and services; the impact of severe weather events and climate change on us and the communities we serve, including societal responses to climate change; increasing scrutiny and evolving expectations from customers, regulators, investors, and other stakeholders with respect to our environmental, social and governance practices; the chance of a prolonged economic downturn, especially one affecting our geographic market area; instability in global economic conditions and geopolitical matters, as well as volatility in financial markets; the soundness of other financial institutions; U.S. government shutdowns, credit rating downgrades, or failure to increase the debt ceiling; fluctuations in the trust wealth management fees we receive as a result of investment performance; the impact of regulatory capital rules on our growth; changes in laws and regulations, including changes in cybersecurity or privacy regulations; restrictions on data collection and use; our compliance with the USA PATRIOT Act, Bank Secrecy Act, and other laws and regulations that could result in material fines or sanctions; changes in tax laws; limitations on our ability to pay dividends; TrustCo Realty Corp.’s ability to qualify as a real estate investment trust; changes in accounting standards; competition within our market areas; consumers and businesses’ use of non-banks to complete financial transactions; our reliance on third-party service providers; the impact of data breaches and cyber-attacks; the impact of a failure in or breach of our operational or security systems or infrastructure, or those of third parties; the impact of an unauthorized disclosure of sensitive or confidential client or customer information; the impact of interruptions in the effective operation of our computer systems; the impact of anti-takeover provisions in our organizational documents; the impact of the manner in which we allocate capital; and other risks and uncertainties under the heading “Risk Factors” in our most recent annual report on Form 10-K and, if any, in our subsequent quarterly reports on Form 10-Q or other securities filings. The forward-looking statements contained in this news release represent TrustCo management’s judgment as of the date of this news release. TrustCo disclaims, however, any intent or obligation to update forward-looking statements, either as a result of future developments, new information or otherwise, except as may be required by law.

     
    TRUSTCO BANK CORP NY
    GLENVILLE, NY
             
    FINANCIAL HIGHLIGHTS
             
    (dollars in thousands, except per share data)
    (Unaudited)
        Three months ended        
        9/30/2024   6/30/2024   9/30/2023        
    Summary of operations                    
    Net interest income   $ 38,671     $ 37,788     $ 42,221              
    Provision for credit losses     500       500       100          
    Net gains on equity securities     23       1,360       –          
    Noninterest income, excluding net gains on equity securities     4,908       4,291       4,574          
    Noninterest expense     26,200       26,459       27,460          
    Net income     12,875       12,551       14,680          
                         
    Per share                    
    Net income per share:                    
    – Basic   $ 0.68     $ 0.66     $ 0.77          
    – Diluted     0.68       0.66       0.77          
    Cash dividends     0.36       0.36       0.36          
    Book value at period end     35.19       34.46       32.80              
    Market price at period end     33.07       28.77       27.29          
                         
    At period end                    
    Full time equivalent employees     735       753       764          
    Full service banking offices     138       138       143          
                         
    Performance ratios                    
    Return on average assets     0.84   %   0.82   %   0.96   %      
    Return on average equity     7.74       7.76       9.32          
    Efficiency ratio (1)     59.65       62.84       58.33          
    Net interest spread     2.17       2.09       2.55          
    Net interest margin     2.61       2.53       2.85          
    Dividend payout ratio     53.16       54.57       46.65              
                             
    Capital ratios at period end                        
    Consolidated equity to assets     10.95   %   10.73   %   10.31   %          
    Consolidated tangible equity to tangible assets (2)     10.94   %   10.72   %   10.30   %      
                         
    Asset quality analysis at period end                    
    Nonperforming loans to total loans     0.38   %   0.38   %   0.36   %      
    Nonperforming assets to total assets     0.36       0.35       0.31          
    Allowance for credit losses on loans to total loans     0.99       0.99       0.95          
    Coverage ratio (3)   2.6x   2.6x   2.6x        
                         
                         
    (1) Non-GAAP measure; calculated as noninterest expense (excluding ORE expense) divided by taxable equivalent net interest income plus noninterest income (excluding net gains on equity securities).
    See Non-GAAP Financial Measures Reconciliation.
    (2) Non-GAAP measure; calculated as total shareholders’ equity less $553 of intangible assets divided by total assets less $553 of intangible assets. See Non-GAAP Financial Measures Reconciliation.
    (3) Calculated as allowance for credit losses on loans divided by total nonperforming loans.
                         
                         
    FINANCIAL HIGHLIGHTS, Continued
               
    (dollars in thousands, except per share data)
    (Unaudited)
        Nine Months Ended            
        09/30/24   09/30/23            
    Summary of operations                    
    Net interest income $   113,037       133,238              
    Provision (Credit) for credit losses     1,600       (100 )            
    Net gains on equity securities     1,383       –              
    Noninterest income, excluding net gains on equity securities     14,042       13,841              
    Noninterest expense     77,562       82,466              
    Net income     37,552       48,798              
                         
    Per share                    
    Net income per share:                    
    – Basic $   1.97       2.57              
    – Diluted     1.97       2.57              
    Cash dividends     1.08       1.08              
    Book value at period end     35.19       32.80              
    Market price at period end     33.07       27.29              
                         
    Performance ratios                    
    Return on average assets     0.82   %   1.08              
    Return on average equity     7.68       10.57                  
    Efficiency ratio (1)     60.80       55.70                  
    Net interest spread     2.08       2.78                  
    Net interest margin     2.52       3.01            
    Dividend payout ratio     54.70       42.11                  
                             
    (1) Non-GAAP measure; calculated as noninterest expense (excluding ORE expense) divided by taxable equivalent net interest income plus noninterest income (excluding net gains on equity securities).
    See Non-GAAP Financial Measures Reconciliation.
                         
                         
    CONSOLIDATED STATEMENTS OF INCOME
                         
    (dollars in thousands, except per share data)
    (Unaudited)
        Three months ended
        9/30/2024   6/30/2024   3/31/2024   12/31/2023   9/30/2023
    Interest and dividend income:                    
    Interest and fees on loans   $ 52,112     $ 50,660     $ 49,804     $ 49,201     $ 47,921  
    Interest and dividends on securities available for sale:                    
    U. S. government sponsored enterprises     718       909       906       750       672  
    State and political subdivisions     –       1       –       1       –  
    Mortgage-backed securities and collateralized mortgage                    
    obligations – residential     1,397       1,451       1,494       1,533       1,485  
    Corporate bonds     361       362       476       477       473  
    Small Business Administration – guaranteed                    
    participation securities     90       94       100       102       107  
    Other securities     2       2       3       3       2  
    Total interest and dividends on securities available for sale     2,568       2,819       2,979       2,866       2,739  
                         
    Interest on held to maturity securities:                    
    Mortgage-backed securities and collateralized mortgage                    
    obligations – residential     62       65       68       70       73  
    Total interest on held to maturity securities     62       65       68       70       73  
                         
    Federal Home Loan Bank stock     153       147       152       149       131  
                         
    Interest on federal funds sold and other short-term investments     6,174       6,894       6,750       6,354       6,688  
    Total interest income     61,069       60,585       59,753       58,640       57,552  
                         
    Interest expense:                    
    Interest on deposits:                    
    Interest-bearing checking     311       288       240       165       102  
    Savings     770       675       712       707       639  
    Money market deposit accounts     2,154       2,228       2,342       2,500       2,384  
    Time deposits     18,969       19,400       19,677       16,460       11,962  
    Interest on short-term borrowings     194       206       204       201       244  
    Total interest expense     22,398       22,797       23,175       20,033       15,331  
                         
    Net interest income     38,671       37,788       36,578       38,607       42,221  
                         
    Less: Provision for credit losses     500       500       600       1,350       100  
    Net interest income after provision for credit losses     38,171       37,288       35,978       37,257       42,121  
                         
    Noninterest income:                    
    Trustco Financial Services income     2,044       1,609       1,816       1,612       1,627  
    Fees for services to customers     2,482       2,399       2,745       2,563       2,590  
    Net gains on equity securities     23       1,360       –       –       –  
    Other     382       283       282       299       357  
    Total noninterest income     4,931       5,651       4,843       4,474       4,574  
                         
    Noninterest expenses:                    
    Salaries and employee benefits     12,134       12,520       11,427       12,444       12,393  
    Net occupancy expense     4,271       4,375       4,611       4,209       4,358  
    Equipment expense     1,757       1,990       1,738       1,852       1,923  
    Professional services     1,863       1,570       1,460       1,561       1,717  
    Outsourced services     2,551       2,755       2,501       2,532       2,720  
    Advertising expense     339       466       408       384       586  
    FDIC and other insurance     1,112       797       1,094       1,085       1,078  
    Other real estate expense (income), net     204       16       74       (12 )     163  
    Other     1,969       1,970       1,590       4,776       2,522  
    Total noninterest expenses     26,200       26,459       24,903       28,831       27,460  
                         
    Income before taxes     16,902       16,480       15,918       12,900       19,235  
    Income taxes     4,027       3,929       3,792       3,052       4,555  
                         
    Net income   $ 12,875     $ 12,551     $ 12,126     $ 9,848     $ 14,680  
                         
    Net income per common share:                    
    – Basic   $ 0.68     $ 0.66     $ 0.64     $ 0.52     $ 0.77  
                         
    – Diluted     0.68       0.66       0.64       0.52       0.77  
                         
    Average basic shares (in thousands)     19,010       19,022       19,024       19,024       19,024  
    Average diluted shares (in thousands)     19,036       19,033       19,032       19,026       19,024  
                         
                         
                         
    CONSOLIDATED STATEMENTS OF INCOME, Continued
               
    (dollars in thousands, except per share data)
    (Unaudited)
        Nine Months Ended            
        09/30/24   09/30/23            
    Interest and dividend income:                        
    Interest and fees on loans $   152,576       138,255                  
    Interest and dividends on securities available for sale:                        
    U. S. government sponsored enterprises     2,533       2,055                  
    State and political subdivisions     1       1                  
    Mortgage-backed securities and collateralized mortgage                        
    obligations – residential     4,342       4,613                  
    Corporate bonds     1,199       1,510                  
    Small Business Administration – guaranteed                        
    participation securities     284       335                  
    Other securities     7       7                  
    Total interest and dividends on securities available for sale     8,366       8,521                  
                         
    Interest on held to maturity securities:                    
    Mortgage-backed securities-residential     195       226                  
    Total interest on held to maturity securities     195       226                  
                         
    Federal Home Loan Bank stock     452       351                  
                         
    Interest on federal funds sold and other short-term investments     19,818       20,213                  
    Total interest income     181,407       167,566                  
                         
    Interest expense:                    
    Interest on deposits:                    
    Interest-bearing checking     839       217                  
    Savings     2,157       1,824                  
    Money market deposit accounts     6,724       4,954                  
    Time deposits     58,046       26,525                  
    Interest on short-term borrowings     604       808                  
    Total interest expense     68,370       34,328                  
                         
    Net interest income     113,037       133,238                  
                         
    Less: Provision (Credit) for credit losses     1,600       (100 )                
    Net interest income after provision (credit) for credit losses     111,437       133,338                  
                         
    Noninterest income:                    
    Trustco Financial Services income     5,469       4,813                  
    Fees for services to customers     7,626       8,085                  
    Net gains on equity securities     1,383       –                  
    Other     947       943                  
    Total noninterest income     15,425       13,841                  
                         
    Noninterest expenses:                    
    Salaries and employee benefits     36,081       38,798                  
    Net occupancy expense     13,257       13,218                  
    Equipment expense     5,485       5,758                  
    Professional services     4,893       4,684                  
    Outsourced services     7,807       7,507                  
    Advertising expense     1,213       1,494                  
    FDIC and other insurance     3,003       3,215                  
    Other real estate expense, net     294       536                  
    Other     5,529       7,256                  
    Total noninterest expenses     77,562       82,466                  
                         
    Income before taxes     49,300       64,713                  
    Income taxes     11,748       15,915                  
                         
    Net income $   37,552       48,798                      
                             
    Net income per common share:                    
    – Basic $   1.97       2.57              
                         
    – Diluted     1.97       2.57              
                         
    Average basic shares (in thousands)     19,019       19,024              
    Average diluted shares (in thousands)     19,034       19,024              
                         
                         
                         
                         
    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
     
    (dollars in thousands)
    (Unaudited)
        9/30/2024   6/30/2024   3/31/2024   12/31/2023   9/30/2023
    ASSETS:                    
                         
    Cash and due from banks   $ 49,659     $ 42,193     $ 44,868     $ 49,274     $ 45,940  
    Federal funds sold and other short term investments     473,306       493,920       564,815       528,730       461,321  
    Total cash and cash equivalents     522,965       536,113       609,683       578,004       507,261  
                       
    Securities available for sale:                  
    U. S. government sponsored enterprises     90,588       106,796       128,854       118,668       121,474  
    States and political subdivisions     26       26       26       26       34  
    Mortgage-backed securities and collateralized mortgage                  
    obligations – residential     222,841       218,311       227,078       237,677       233,719  
    Small Business Administration – guaranteed                    
    participation securities     15,171       15,592       16,260       17,186       17,316  
    Corporate bonds     54,327       53,764       53,341       78,052       76,935  
    Other securities     701       688       682       680       657  
    Total securities available for sale     383,654       395,177       426,241       452,289       450,135  
                         
    Held to maturity securities:                    
    Mortgage-backed securities and collateralized mortgage                    
    obligations-residential     5,636       5,921       6,206       6,458       6,724  
    Total held to maturity securities     5,636       5,921       6,206       6,458       6,724  
                         
    Federal Reserve Bank and Federal Home Loan Bank stock     6,507       6,507       6,203       6,203       6,203  
                       
    Loans:                  
    Commercial     280,261       282,441       279,092       273,515       268,642  
    Residential mortgage loans     4,382,674       4,370,640       4,354,369       4,365,063       4,343,006  
    Home equity line of credit     393,418       370,063       355,879       347,415       332,028  
    Installment loans     14,503       15,168       16,166       16,886       16,605  
    Loans, net of deferred net costs     5,070,856       5,038,312       5,005,506       5,002,879       4,960,281  
                       
    Less: Allowance for credit losses on loans     49,950       49,772       49,220       48,578       47,226  
    Net loans     5,020,906       4,988,540       4,956,286       4,954,301       4,913,055  
                         
    Bank premises and equipment, net     33,324       33,466       33,423       34,007       32,135  
    Operating lease right-of-use assets     37,958       38,376       39,647       40,542       41,475  
    Other assets     98,730       102,544       101,881       96,387       97,310  
                       
    Total assets   $ 6,109,680     $ 6,106,644     $ 6,179,570     $ 6,168,191     $ 6,054,298  
                       
    LIABILITIES:                  
    Deposits:                  
    Demand   $ 753,878     $ 745,227     $ 742,997     $ 754,532     $ 773,293  
    Interest-bearing checking     988,527       1,029,606       1,020,136       1,015,213       1,033,898  
    Savings accounts     1,092,038       1,144,427       1,155,517       1,179,241       1,235,658  
    Money market deposit accounts     477,113       517,445       532,611       565,767       610,012  
    Time deposits     1,952,635       1,840,262       1,903,908       1,836,024       1,581,504  
    Total deposits     5,264,191       5,276,967       5,355,169       5,350,777       5,234,365  
                       
    Short-term borrowings     91,450       89,720       94,374       88,990       103,110  
    Operating lease liabilities     41,469       42,026       43,438       44,471       45,418  
    Accrued expenses and other liabilities     43,549       42,763       37,399       38,668       47,479  
                       
    Total liabilities     5,440,659       5,451,476       5,530,380       5,522,906       5,430,372  
                       
    SHAREHOLDERS’ EQUITY:                  
    Capital stock     20,058       20,058       20,058       20,058       20,058  
    Surplus     257,644       257,490       257,335       257,181       257,078  
    Undivided profits     442,079       436,048       430,346       425,069       422,082  
    Accumulated other comprehensive loss, net of tax     (6,600 )     (14,268 )     (14,763 )     (13,237 )     (31,506 )
    Treasury stock at cost     (44,160 )     (44,160 )     (43,786 )     (43,786 )     (43,786 )
                       
    Total shareholders’ equity     669,021       655,168       649,190       645,285       623,926  
                         
    Total liabilities and shareholders’ equity   $ 6,109,680     $ 6,106,644     $ 6,179,570     $ 6,168,191     $ 6,054,298  
                         
    Outstanding shares (in thousands)     19,010       19,010       19,024       19,024       19,024  
                         
     
    NONPERFORMING ASSETS
                 
    (dollars in thousands)
    (Unaudited)
        9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023
    Nonperforming Assets            
                 
    New York and other states*            
    Loans in nonaccrual status:            
    Commercial   $ 466   $ 741   $ 532   $ 536   $ 540  
    Real estate mortgage – 1 to 4 family     15,320     14,992     14,359     14,375     14,633  
    Installment     163     131     149     151     93  
    Total non-accrual loans     15,949     15,864     15,040     15,062     15,266  
    Other nonperforming real estate mortgages – 1 to 4 family     –     –     –     3     5  
    Total nonperforming loans     15,949     15,864     15,040     15,065     15,271  
    Other real estate owned     2,503     2,334     2,334     194     1,185  
    Total nonperforming assets   $ 18,452   $ 18,198   $ 17,374   $ 15,259   $ 16,456  
                 
    Florida            
    Loans in nonaccrual status:            
    Commercial   $ 314   $ 314   $ 314   $ 314   $ 314  
    Real estate mortgage – 1 to 4 family     3,176     2,985     2,921     2,272     2,228  
    Installment     5     22     –     15     65  
    Total non-accrual loans     3,495     3,321     3,235     2,601     2,607  
    Other nonperforming real estate mortgages – 1 to 4 family     –     –     –     –     –  
    Total nonperforming loans     3,495     3,321     3,235     2,601     2,607  
    Other real estate owned     –     –     –     –     –  
    Total nonperforming assets   $ 3,495   $ 3,321   $ 3,235   $ 2,601   $ 2,607  
                 
    Total            
    Loans in nonaccrual status:            
    Commercial   $ 780   $ 1,055   $ 846   $ 850   $ 854  
    Real estate mortgage – 1 to 4 family     18,496     17,977     17,280     16,647     16,861  
    Installment     168     153     149     166     158  
    Total non-accrual loans     19,444     19,185     18,275     17,663     17,873  
    Other nonperforming real estate mortgages – 1 to 4 family     –     –     –     3     5  
    Total nonperforming loans     19,444     19,185     18,275     17,666     17,878  
    Other real estate owned     2,503     2,334     2,334     194     1,185  
    Total nonperforming assets   $ 21,947   $ 21,519   $ 20,609   $ 17,860   $ 19,063  
                 
                 
    Quarterly Net (Recoveries) Chargeoffs            
                 
    New York and other states*            
    Commercial   $ 65   $ –   $ –   $ –   $ –  
    Real estate mortgage – 1 to 4 family     104     (74 )   (78 )   219     (26 )
    Installment     11     (2 )   36     23     14  
    Total net (recoveries) chargeoffs   $ 180   $ (76 ) $ (42 ) $ 242   $ (12 )
                 
    Florida            
    Commercial   $ –   $ –   $ –   $ –   $ –  
    Real estate mortgage – 1 to 4 family     –     17     –     –     –  
    Installment     42     7     –     6     –  
    Total net (recoveries) chargeoffs   $ 42   $ 24   $ –   $ 6   $ –  
                 
    Total            
    Commercial   $ 65   $ –   $ –   $ –   $ –  
    Real estate mortgage – 1 to 4 family     104     (57 )   (78 )   219     (26 )
    Installment     53     5     36     29     14  
    Total net (recoveries) chargeoffs   $ 222   $ (52 ) $ (42 ) $ 248   $ (12 )
                 
                 
    Asset Quality Ratios            
                 
    Total nonperforming loans (1)   $ 19,444   $ 19,185   $ 18,275   $ 17,666   $ 17,878  
    Total nonperforming assets (1)     21,947     21,519     20,609     17,860     19,063  
    Total net (recoveries) chargeoffs (2)     222     (52 )   (42 )   248     (12 )
                 
    Allowance for credit losses on loans (1)     49,950     49,772     49,220     48,578     47,226  
                 
    Nonperforming loans to total loans     0.38 %   0.38 %   0.37 %   0.35 %   0.36 %
    Nonperforming assets to total assets     0.36 %   0.35 %   0.33 %   0.29 %   0.31 %
    Allowance for credit losses on loans to total loans     0.99 %   0.99 %   0.98 %   0.97 %   0.95 %
    Coverage ratio (1)     256.9 %   259.4 %   269.3 %   275.0 %   264.2 %
    Annualized net (recoveries) chargeoffs to average loans (2)     0.02 %   0.00 %   0.00 %   0.02 %   0.00 %
    Allowance for credit losses on loans to annualized net chargeoffs (2)   56.3x N/A N/A 49.0x N/A
     
    * Includes New York, New Jersey, Vermont and Massachusetts.
    (1) At period-end
    (2) For the three-month period ended
                 
     
    DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY –
    INTEREST RATES AND INTEREST DIFFERENTIAL
     
    (dollars in thousands)                        
    (Unaudited)   Three months ended     Three months ended  
        September 30, 2024     September 30, 2023  
        Average   Interest Average     Average   Interest Average  
        Balance     Rate     Balance     Rate  
    Assets                        
                             
    Securities available for sale:                        
    U. S. government sponsored enterprises   $ 95,073     $ 718 3.02 %   $ 119,406     $ 672 2.25 %
    Mortgage backed securities and collateralized mortgage                        
    obligations – residential     241,792       1,397 2.29       269,535       1,485 2.19  
    State and political subdivisions     26       – 6.75       34       – 6.74  
    Corporate bonds     55,041       361 2.63       80,331       473 2.36  
    Small Business Administration – guaranteed                        
    participation securities     16,663       90 2.15       19,801       107 2.15  
    Other     701       2 1.14       686       2 1.17  
                             
    Total securities available for sale     409,296       2,568 2.51       489,793       2,739 2.24  
                             
    Federal funds sold and other short-term Investments     465,922       6,174 5.27       494,597       6,688 5.37  
                             
    Held to maturity securities:                        
    Mortgage backed securities and collateralized mortgage                        
    obligations – residential     5,779       62 4.29       6,877       73 4.22  
                             
    Total held to maturity securities     5,779       62 4.29       6,877       73 4.22  
                             
    Federal Home Loan Bank stock     6,507       153 9.41       6,203       131 8.45  
                             
    Commercial loans     279,199       3,807 5.45       261,061       3,398 5.21  
    Residential mortgage loans     4,375,641       41,811 3.82       4,325,219       39,321 3.64  
    Home equity lines of credit     380,422       6,245 6.53       320,446       4,946 6.12  
    Installment loans     14,443       249 6.87       15,959       256 6.37  
                             
    Loans, net of unearned income     5,049,705       52,112 4.12       4,922,685       47,921 3.89  
                             
    Total interest earning assets     5,937,209     $ 61,069 4.11       5,920,155     $ 57,552 3.88  
                             
    Allowance for credit losses on loans     (49,973 )             (47,077 )        
    Cash & non-interest earning assets     187,166               172,523          
                             
                             
    Total assets   $ 6,074,402             $ 6,045,601          
                             
                             
    Liabilities and shareholders’ equity                        
                             
    Deposits:                        
    Interest bearing checking accounts   $ 1,000,333     $ 311 0.12 %   $ 1,050,313     $ 102 0.04 %
    Money market accounts     499,408       2,154 1.72       625,031       2,384 1.51  
    Savings     1,122,673       770 0.27       1,282,641       639 0.20  
    Time deposits     1,880,021       18,969 4.01       1,494,402       11,962 3.18  
                             
    Total interest bearing deposits     4,502,435       22,204 1.96       4,452,387       15,087 1.34  
    Short-term borrowings     87,677       194 0.88       110,018       244 0.88  
                             
    Total interest bearing liabilities     4,590,112     $ 22,398 1.94       4,562,405     $ 15,331 1.33  
                             
    Demand deposits     742,164               776,885          
    Other liabilities     80,502               81,411          
    Shareholders’ equity     661,624               624,900          
                             
    Total liabilities and shareholders’ equity   $ 6,074,402             $ 6,045,601          
                             
    Net interest income, GAAP and non-GAAP tax equivalent (1)       $ 38,671           $ 42,221    
                             
    Net interest spread, GAAP and non-GAAP tax equivalent (1)         2.17 %         2.55 %
                             
                             
    Net interest margin (net interest income to                        
    total interest earning assets), GAAP and non-GAAP tax equivalent (1)       2.61 %         2.85 %
                             
    Tax equivalent adjustment (1)         –             –    
                             
                             
    Net interest income       $ 38,671           $ 42,221    
                             
    (1) Tax equivalent adjustment to a measure results in a non-GAAP financial measure. See Non-GAAP Financial Measures Reconciliation.
                             
                             
                             
    DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY –
    INTEREST RATES AND INTEREST DIFFERENTIAL, Continued
                             
    (dollars in thousands)                        
    (Unaudited)   Nine Months Ended     Nine Months Ended  
        September 30, 2024     September 30, 2023  
        Average   Interest Average     Average   Interest Average  
        Balance     Rate     Balance     Rate  
    Assets                        
                             
    Securities available for sale:                        
    U. S. government sponsored enterprises $   111,570       2,533 3.03 % $   120,243       2,055 2.28 %
    Mortgage backed securities and collateralized mortgage                        
    obligations – residential     250,343       4,342 2.31       278,252       4,613 2.21  
    State and political subdivisions     26       1 6.80       34       1 6.74  
    Corporate bonds     61,221       1,199 2.61       83,732       1,510 2.41  
    Small Business Administration – guaranteed                        
    participation securities     17,438       284 2.17       20,876       335 2.14  
    Other     697       7 1.34       686       7 1.02  
                             
    Total securities available for sale     441,295       8,366 2.53       503,823       8,521 1.69  
                             
    Federal funds sold and other short-term Investments     489,934       19,818 5.40       540,570       20,213 5.00  
                             
    Held to maturity securities:                        
    Mortgage backed securities and collateralized mortgage                        
    obligations – residential     6,053       195 4.29       7,205       226 4.18  
                             
    Total held to maturity securities     6,053       195 4.29       7,205       226 4.18  
                             
    Federal Home Loan Bank stock     6,350       452 9.49       5,957       351 5.89  
                             
    Commercial loans     278,981       11,232 5.37       249,738       9,716 5.19  
    Residential mortgage loans     4,364,821       123,046 3.76       4,269,494       114,227 3.57  
    Home equity lines of credit     365,932       17,522 6.40       305,075       13,598 5.96  
    Installment loans     15,319       776 6.76       15,015       714 6.35  
                             
    Loans, net of unearned income     5,025,053       152,576 4.05       4,839,322       138,255 3.81  
                             
    Total interest earning assets     5,968,685       181,407 4.05       5,896,877       167,566 3.79  
                             
    Allowance for credit losses on loans     (49,419 )             (46,812 )        
    Cash & non-interest earning assets     187,963               173,521          
                             
                             
    Total assets $   6,107,229           $   6,023,586          
                             
                             
    Liabilities and shareholders’ equity                        
                             
    Deposits:                        
    Interest bearing checking accounts $   999,839       839 0.11 % $   1,088,859       217 0.03 %
    Money market accounts     522,636       6,724 1.72       613,119       4,954 1.08  
    Savings     1,142,313       2,157 0.25       1,363,052       1,824 0.18  
    Time deposits     1,881,027       58,046 4.12       1,343,762       26,525 2.64  
                             
    Total interest bearing deposits     4,545,815       67,766 1.99       4,408,792       33,520 1.02  
    Short-term borrowings     91,551       604 0.88       121,911       808 0.89  
                             
    Total interest bearing liabilities     4,637,366       68,370 1.97       4,530,703       34,328 1.01  
                             
    Demand deposits     734,604               793,890          
    Other liabilities     82,233               81,771          
    Shareholders’ equity     653,026               617,224          
                             
    Total liabilities and shareholders’ equity $   6,107,229           $   6,023,588          
                             
    Net interest income, GAAP and non-GAAP tax equivalent (1)         113,037             133,238    
                             
    Net interest spread, GAAP and non-GAAP tax equivalent (1)         2.08 %         2.78 %
                             
                             
    Net interest margin (net interest income to                        
    total interest earning assets), GAAP and non-GAAP tax equivalent (1)       2.52 %         3.01 %
                             
    Tax equivalent adjustment (1)         –             –    
                             
                             
    Net interest income         113,037             133,238    
                             
    (1) Tax equivalent adjustment to a measure results in a non-GAAP financial measure. See Non-GAAP Financial Measures Reconciliation.
                             

    Non-GAAP Financial Measures Reconciliation

    Tangible book value per share is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible book value by excluding the balance of intangible assets from total shareholders’ equity divided by shares outstanding. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. Additionally, we believe that this measure is important to many investors in the marketplace who are interested in relative changes from period to period in equity exclusive of changes in intangible assets.

    Tangible equity as a percentage of tangible assets at period end is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible equity and tangible assets by excluding the balance of intangible assets from total shareholders’ equity and total assets, respectively. We calculate tangible equity as a percentage of tangible assets at period end by dividing tangible equity by tangible assets at period end. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. Additionally, we believe that this measure is important to many investors in the marketplace who are interested in relative changes from period to period in equity and total assets, each exclusive of changes in intangible assets.

    Net interest income is commonly presented on a taxable equivalent basis. That is, to the extent that some component of the institution’s net interest income will be exempt from taxation (e.g., was received by the institution as a result of its holdings of state or municipal obligations), an amount equal to the tax benefit derived from that component is added back to the net interest income total. Management considers this adjustment helpful to investors in comparing one financial institution’s net interest income (pre- tax) to that of another institution, as each will have a different proportion of tax-exempt items in their portfolios. Moreover, net interest income is itself a component of another financial measure commonly used by financial institutions, net interest margin, which is the ratio of net interest income to average interest earning assets. Additionally, management and many financial institutions also present net interest spread, which is the average yield on interest earning assets minus the average rate paid on interest bearing liabilities. For purposes of these measures as well, taxable equivalent net interest income is generally used by financial institutions, again to provide investors with a better basis of comparison from institution to institution. We calculate taxable equivalent net interest margin by dividing net interest income, adjusted to include the benefit of non-taxable interest income, by average interest earning assets. We calculate taxable equivalent net interest spread as the difference between average yield on interest earning assets, adjusted to include the benefit of non-taxable interest income, and the average rate paid on interest bearing liabilities.

    The efficiency ratio is a non-GAAP measure of expense control relative to revenue from net interest income and non-interest fee income. We calculate the efficiency ratio by dividing total noninterest expenses as determined under GAAP, excluding other real estate expense, net, by net interest income (fully taxable equivalent) and total noninterest income as determined under GAAP, excluding net gains on equity securities. We believe that this provides a reasonable measure of primary banking expenses relative to primary banking revenue. Additionally, we believe this measure is important to investors looking for a measure of efficiency in our productivity measured by the amount of revenue generated for each dollar spent.

    We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial results. Our management internally assesses our performance based, in part, on these measures. However, these non-GAAP financial measures are supplemental and not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies. A reconciliation of the non-GAAP measures of tangible equity as a percentage of tangible assets, and efficiency ratio to the most directly comparable GAAP measures is set forth below. We have not presented a reconciliation of taxable equivalent net interest income, taxable equivalent net interest margin or taxable equivalent net interest spread to the most directly comparable GAAP measure, as there was no difference between the taxable equivalent measure and comparable GAAP measure for any period presented in this release.

     
    NON-GAAP FINANCIAL MEASURES RECONCILIATION
                   
    (dollars in thousands)              
    (Unaudited)              
        9/30/2024 6/30/2024 9/30/2023      
    Tangible Book Value Per Share              
                   
    Equity (GAAP)   $ 669,021   $ 655,168   $ 623,926        
    Less: Intangible assets     553     553     553        
    Tangible equity (Non-GAAP)   $ 668,468   $ 654,615   $ 623,373        
                   
    Shares outstanding     19,010     19,010     19,024        
    Tangible book value per share     35.16     34.44     32.77        
    Book value per share     35.19     34.46     32.80        
                   
    Tangible Equity to Tangible Assets              
    Total Assets (GAAP)   $ 6,109,680   $ 6,106,644   $ 6,054,298        
    Less: Intangible assets     553     553     553        
    Tangible assets (Non-GAAP)   $ 6,109,127   $ 6,106,091   $ 6,053,745        
                   
    Tangible Equity to Tangible Assets (Non-GAAP)     10.94 %   10.72 %   10.30 %      
    Equity to Assets (GAAP)     10.95 %   10.73 %   10.31 %      
                   
        Three months ended   Nine Months Ended
    Efficiency Ratio   9/30/2024 6/30/2024 9/30/2023   9/30/2024 9/30/2023
                   
    Net interest income (GAAP)   $ 38,671   $ 37,788   $ 42,221     $ 113,037   $ 133,238  
    Taxable equivalent adjustment     –     –     –       –     –  
    Net interest income (fully taxable equivalent) (Non-GAAP)     38,671     37,788     42,221       113,037     133,238  
    Non-interest income (GAAP)     4,931     5,651     4,574       15,425     13,841  
    Less: Net gains on equity securities     23     1,360     –       1,383     –  
    Revenue used for efficiency ratio (Non-GAAP)   $ 43,579   $ 42,079   $ 46,795     $ 127,079   $ 147,079  
                   
    Total noninterest expense (GAAP)   $ 26,200   $ 26,459   $ 27,460     $ 77,562   $ 82,466  
    Less: Other real estate expense, net     204     16     163       294     536  
    Expense used for efficiency ratio (Non-GAAP)   $ 25,996   $ 26,443   $ 27,297     $ 77,268   $ 81,930  
                   
    Efficiency Ratio     59.65 %   62.84 %   58.33 %     60.80 %   55.70 %
                   
       
    Subsidiary: Trustco Bank
       
    Contact: Robert Leonard
    Executive Vice President
    (518) 381-3693

    The MIL Network –

  • MIL-OSI: RBB Bancorp Reports Third Quarter 2024 Earnings and Declares Quarterly Cash Dividend of $0.16 Per Common Share

    Source: GlobeNewswire (MIL-OSI)

    LOS ANGELES, Oct. 21, 2024 (GLOBE NEWSWIRE) — RBB Bancorp (NASDAQ:RBB) and its subsidiaries, Royal Business Bank (the “Bank”) and RBB Asset Management Company (“RAM”), collectively referred to herein as “the Company,” announced financial results for the quarter ended September 30, 2024.

    Third Quarter 2024 Highlights

    • Net income totaled $7.0 million, or $ 0.39 diluted earnings per share
    • Return on average assets of 0.72%, compared to 0.76% for the quarter ended June 30, 2024
    • Net interest margin of 2.68% compared to 2.67% for the quarter ended June 30, 2024
    • Repurchased 508,275 shares of common stock for $11.0 million during the quarter ended September 30, 2024, and completed the authorized program
    • Book value and tangible book value per share(1) increased to $28.81 and $24.64 at September 30, 2024, up from $28.12 and $24.06 at June 30, 2024

    The Company reported net income of $7.0 million, or $ 0.39 diluted earnings per share, for the quarter ended September 30, 2024, compared to net income of $7.2 million, or $ 0.39 diluted earnings per share, for the quarter ended June 30, 2024. 

    “Loans increased at a 6% annualized rate in the third quarter as our work to expand lending and deposit relationships began to deliver results,” said David Morris, Chief Executive Officer of RBB Bancorp. “Net interest margin increased slightly, and we are optimistic that it will continue to expand from here.  We continue to work through our non-performing loans and believe we will be able to resolve the majority of them by mid-2025.”

    “The team has done an excellent job building on the Bank’s reputation as one of the premier Asian-centric financial institutions,” said Christina Kao, Chair of the Board of Directors. “Returning the Bank to growth has been a priority for the Board of Directors as we believe it will enhance long-term shareholder value.”

    (1) Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures included at the end of this press release.

    Net Interest Income and Net Interest Margin

    Net interest income was $24.5 million for the third quarter of 2024, compared to $24.0 million for the second quarter of 2024. The $580,000 increase was due to an increase in interest income of $1.5 million offset by an increase in interest expense of $959,000. The increase in interest income was due mostly to higher interest income on loans held for investment (“HFI”) of $2.0 million, partially offset by lower interest income on investment securities of $504,000. The increase in loan interest income was mostly due to higher average loans HFI of $54.4 million combined with a 9 basis point increase in the HFI loan yield. The decrease in investment income was attributed to lower average balances and a lower portfolio yield as proceeds from maturing short-term commercial paper were invested into loans and interest-earning cash. The increase in interest expense was due to higher average interest-bearing deposits of $42.3 million in the third quarter of 2024.

    Net interest margin (“NIM”) was 2.68% for the third quarter of 2024, an increase of 1 basis point from 2.67% for the second quarter of 2024. The increase was due to a 5 basis point increase in the yield on average interest-earning assets, partially offset by a 3 basis point increase in the overall cost of funds. The yield on average interest-earning assets increased to 5.94% for the third quarter of 2024 from 5.89% for the second quarter of 2024 due mainly to a 9 basis point increase in the yield on average loans HFI to 6.13% for the third quarter of 2024. The increase in the loan yield was largely attributed to nonaccrual loan activity in the current and prior quarter, including both the recapture of interest income for fully paid off nonaccrual loans and reversals of interest income for loans migrating to nonaccrual status. Such activity increased the third quarter loan yield by 1 basis point and decreased the second quarter loan yield by 7 basis points. Average loans represented 84% of average interest-earning assets in the third quarter of 2024, unchanged from the second quarter of 2024.

    The overall cost of funds increased to 3.57% in the third quarter of 2024 from 3.54% in the second quarter of 2024 due to a higher average cost of interest-bearing deposits in the third quarter of 2024 as compared to the second quarter of 2024. The overall funding mix remained relatively unchanged from the second quarter of 2024 as the ratio of average noninterest-bearing deposits to average total funding sources remained relatively unchanged at 16% for the third and second quarters of 2024. The all-in spot rate for total deposits was 3.53% at September 30, 2024.

    Provision for Credit Losses

    The Company recorded a provision for credit losses of $3.3 million for the third quarter of 2024 compared to $557,000 for the second quarter of 2024. The third quarter provision took into consideration factors including changes in the loan portfolio mix, higher specific reserves, the outlook for economic conditions and market interest rates, and credit quality metrics, including higher nonperforming, special mention and substandard loans at the end of the third quarter of 2024 as compared to the end of the second quarter of 2024.

    Noninterest Income

    Noninterest income for the third quarter of 2024 was $5.7 million, an increase of $2.3 million from $3.5 million for the second quarter of 2024. This increase was mostly due to a $2.8 million recovery of a fully charged off loan, which had been acquired in a bank acquisition (included in other income), partially offset by lower net gain on other real estate owned (“OREO”) of $292,000. 

    Noninterest Expense

    Noninterest expense for the third quarter of 2024 was $17.4 million, an increase of $297,000 from $17.1 million for the second quarter of 2024. This increase was due to higher salaries and employee benefits expense of $475,000 due in part to higher loan production and higher other expenses of $304,000 due to higher loan related expense. These increases were partially offset by lower insurance and regulatory assessments of $323,000 and lower legal and professional expenses of $302,000, the latter being due to reimbursed legal costs from nonaccrual loan payoffs. The annualized noninterest expenses to average assets ratio was 1.78% for the third quarter of 2024, down from 1.79% for the second quarter of 2024. The efficiency ratio was 57.51% for the third quarter of 2024, down from 62.38% for the second quarter of 2024 due mostly to higher noninterest income.

    Income Taxes

    The effective tax rate was 26.9% for the third quarter of 2024 and 25.9% for the second quarter of 2024. The effective tax rate for 2024 is estimated to range between 26.0% and 28.0%.

    Balance Sheet

    At September 30, 2024, total assets were $4.0 billion, a $122.3 million increase compared to June 30, 2024, and a $78.9 million decrease compared to September 30, 2023.

    Loan and Securities Portfolio

    Loans HFI totaled $3.1 billion as of September 30, 2024, an increase of $44.2 million compared to June 30, 2024 and a $29.1 million decrease compared to September 30, 2023. The increase from June 30, 2024 was primarily due to a $62.5 million increase in commercial real estate (“CRE”) loans, a $5.6 million increase in single-family residential (“SFR”) mortgages and a $2.2 million increase in commercial and industrial (“C&I”) loans, partially offset by a $22.3 million decrease in construction and land development (“C&D”) loans and a $2.2 million decrease in Small Business Administration (“SBA”) loans. The loan to deposit ratio was 98.6% at September 30, 2024, compared to 99.4% at June 30, 2024 and 97.6% at September 30, 2023. 

    As of September 30, 2024, available-for-sale securities totaled $305.7 million, a decrease of $19.9 million from June 30, 2024. As of September 30, 2024, net unrealized losses totaled $23.2 million, a $6.9 million decrease due to decreases in market interest rates, when compared to net unrealized losses as of June 30, 2024.

    Deposits

    Total deposits were $3.1 billion as of September 30, 2024, a $68.6 million increase compared to June 30, 2024 and a $61.9 million decrease compared to September 30, 2023. The increase during the third quarter of 2024 was due to an increase in interest-bearing deposits, while noninterest-bearing deposits remained relatively stable at $543.6 million as of September 30, 2024 compared to $543.0 million as of June 30, 2024. The increase in interest-bearing deposits included an increase in time deposits of $49.6 million and an increase in non-maturity deposits of $18.3 million. The increase in time deposits included a $26.6 million increase in wholesale deposits (brokered deposits, collateralized State of California certificates of deposit and deposits acquired through internet listing services). Wholesale deposits totaled $147.3 million at September 30, 2024, and $120.7 million at June 30, 2024. Noninterest-bearing deposits represented 17.6% of total deposits at September 30, 2024 compared to 18.0% at June 30, 2024.

    Credit Quality

    Nonperforming assets totaled $60.7 million, or 1.52% of total assets, at September 30, 2024, compared to $54.6 million, or 1.41% of total assets, at June 30, 2024. The $6.1 million increase in nonperforming assets was mostly due to two loans that migrated to nonaccrual totaling $13.3 million and consisted of a C&D loan and a CRE loan, offset by $6.1 million in payoffs with no losses and $1.2 million in partial charge-offs of nonaccrual loans.

    Special mention loans totaled $77.5 million, or 2.51% of total loans, at September 30, 2024, compared to $19.5 million, or 0.64% of total loans, at June 30, 2024. The $58.0 million increase was primarily due to one $43.6 million C&D loan for a completed hotel construction project, CRE loans totaling $25.2 million and C&I loans totaling $1.2 million. The increase was partially offset by one $11.7 million C&D loan, which migrated from special mention to substandard during the third quarter of 2024. All special mention loans, including the $11.7 million C&D loan which migrated to substandard rating, are all paying current.

    Substandard loans totaled $79.8 million, or 2.58% of total loans, at September 30, 2024, compared to $63.1 million, or 2.07% of total loans, at June 30, 2024. The $16.8 million increase was primarily due to downgrades of two C&D loans totaling $21.7 million and one $3.3 million CRE loan, offset by loan payoffs of $6.7 million and charge-offs of $1.2 million. Of the substandard loans at September 30, 2024, there are  $19.2 million which are paying current.

    30-89 day delinquent loans, excluding nonperforming loans, decreased $645,000 to $10.6 million as of September 30, 2024, compared to $11.3 million as of June 30, 2024. The decrease in past due loans was mostly due to 12 loans totaling $4.7 million that returned to current status and other decreases totaling $784,000, partially offset by new delinquent loans totaling $4.9 million, of which $4.1 million were 30 days past due.

    As of September 30, 2024, the allowance for credit losses totaled $44.5 million and was comprised of an allowance for loan losses of $43.7 million and a reserve for unfunded commitments of $779,000 (included in “Accrued interest and other liabilities”). This compares to the allowance for credit losses of $42.4 million comprised of an allowance for loan losses of $41.7 million and a reserve for unfunded commitments of $624,000 at June 30, 2024. The $2.1 million increase in the allowance for credit losses for the third quarter of 2024 was due to a $3.3 million provision for credit losses, including higher specific reserves of $2.5 million, offset by net charge-offs of $1.2 million. The increase in specific reserves and charge-offs in the third quarter of 2024 was primarily due to a decrease in the estimated fair value of collateral dependent loans, including estimated selling costs. Charge-offs in the third quarter of 2024 were related to one C&D loan and one CRE loan, which were written-down to their estimated fair value. The allowance for loan losses as a percentage of loans HFI was 1.41% at September 30, 2024, compared to 1.37% at June 30, 2024. The allowance for loan losses as a percentage of nonperforming loans was 72% at September 30, 2024, a decrease from 76% at June 30, 2024. The decrease in the allowance for loan losses as a percentage of nonperforming loans was due in part to an increase in individually evaluated loans, which required no allowance for loan losses.

        For the Three Months Ended
    September 30, 2024    		     For the Nine Months Ended
    September 30, 2024    		  
    (dollars in thousands)   Allowance for loan losses     Reserve for unfunded loan commitments     Allowance for credit losses     Allowance for loan losses     Reserve for unfunded loan commitments     Allowance for credit losses  
    Beginning balance   $ 41,741     $ 624     $ 42,365     $ 41,903     $ 640     $ 42,543  
    Provision for credit losses     3,145       155       3,300       3,718       139       3,857  
    Less loans charged-off     (1,210 )     —       (1,210 )     (1,991 )     —       (1,991 )
    Recoveries on loans charged-off     9       —       9       55       —       55  
    Ending balance   $ 43,685     $ 779     $ 44,464     $ 43,685     $ 779     $ 44,464  


    Shareholders’ Equity

    At September 30, 2024, total shareholders’ equity was $509.7 million, a $1.6 million decrease compared to June 30, 2024, and a $7.2 million increase compared to September 30, 2023. The decrease in shareholders’ equity for the third quarter of 2024 was due to common stock repurchases of $11.0 million and common stock cash dividends paid of $2.9 million, offset by net income of $7.0 million, lower net unrealized loss on available-for-sale securities of $4.8 million and equity compensation activity of $528,000. Book value per share and tangible book value per share(1) increased to $28.81 and $24.64 at September 30, 2024, up from $28.12 and $24.06 at June 30, 2024.

    On February 29, 2024, the Board of Directors authorized the repurchase of up to 1,000,000 shares of common stock. The repurchase program permitted shares to be repurchased in open market or private transactions, through block trades, and pursuant to any trading plan that may be adopted in accordance with Securities and Exchange Commission (“SEC”) Rules 10b5-1 and 10b-8. The Company repurchased 508,275 shares at a weighted average share price of $21.53 during the third quarter of 2024 and completed the authorized program.

    Dividend Announcement

    The Board of Directors has declared a common stock cash dividend of $0.16 per common share, payable on November 12, 2024 to shareholders of record on October 31, 2024.

      Contact:
    Lynn Hopkins, Chief Financial Officer
      (213) 716-8066
      lhopkins@rbbusa.com

    (1) Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures included at the end of this press release.


    Corporate Overview

    RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California. As of September 30, 2024, the Company had total assets of $4.0 billion. Its wholly-owned subsidiary, Royal Business Bank, is a full service commercial bank, which provides consumer and business banking services predominately to the Asian-centric communities in Los Angeles County, Orange County, and Ventura County in California, in Las Vegas, Nevada, in Brooklyn, Queens, and Manhattan in New York, in Edison, New Jersey, in the Chicago neighborhoods of Chinatown and Bridgeport, Illinois, and on Oahu, Hawaii. Bank services include remote deposit, E-banking, mobile banking, commercial and investor real estate loans, business loans and lines of credit, commercial and industrial loans, SBA 7A and 504 loans, 1-4 single family residential loans, trade finance, a full range of depository account products and wealth management services. The Bank has nine branches in Los Angeles County, two branches in Ventura County, one branch in Orange County, California, one branch in Las Vegas, Nevada, three branches and one loan operation center in Brooklyn, three branches in Queens, one branch in Manhattan in New York, one branch in Edison, New Jersey, two branches in Chicago, Illinois, and one branch in Honolulu, Hawaii. The Company’s administrative and lending center is located at 1055 Wilshire Blvd., Los Angeles, California 90017, and its operations center is located at 7025 Orangethorpe Ave., Buena Park, California 90621. The Company’s website address is www.royalbusinessbankusa.com.

    Conference Call

    Management will hold a conference call at 11:00 a.m. Pacific time/2:00 p.m. Eastern time on Tuesday, October 22, 2024, to discuss the Company’s third quarter 2024 financial results.

    To listen to the conference call, please dial 1-888-506-0062 or 1-973-528-0011, the Participant ID code is 392446, conference ID RBBQ324. A replay of the call will be made available at 1-877-481-4010 or 1-919-882-2331, the passcode is 51366, approximately one hour after the conclusion of the call and will remain available through November 5, 2024.

    The conference call will also be simultaneously webcast over the Internet; please visit our Royal Business Bank website at http://www.royalbusinessbankusa.com and click on the “Investors” tab to access the call from the site. This webcast will be recorded and available for replay on our website approximately two hours after the conclusion of the conference call.

    Disclosure

    This press release contains certain non-GAAP financial disclosures for tangible common equity and tangible assets and adjusted earnings. The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. Please refer to the tables at the end of this release for a presentation of performance ratios in accordance with GAAP and a reconciliation of the non-GAAP financial measures to the GAAP financial measures.

    Safe Harbor

    Certain matters set forth herein (including the exhibits hereto) constitute forward-looking statements relating to the Company’s current business plans and expectations and our future financial position and operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance and/or achievements to differ materially from those projected. These risks and uncertainties include, but are not limited to, the effectiveness of the Company’s internal control over financial reporting and disclosure controls and procedures; the potential for additional material weaknesses in the Company’s internal controls over financial reporting or other potential control deficiencies of which the Company is not currently aware or which have not been detected; business and economic conditions generally and in the financial services industry, nationally and within our current and future geographic markets, including the tight labor market, ineffective management of the United States (“U.S.”) federal budget or debt or turbulence or uncertainly in domestic or foreign financial markets; the strength of the U.S. economy in general and the strength of the local economies in which we conduct operations; adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments; our ability to attract and retain deposits and access other sources of liquidity; possible additional provisions for credit losses and charge-offs; credit risks of lending activities and deterioration in asset or credit quality; extensive laws and regulations and supervision that we are subject to, including potential supervisory action by bank supervisory authorities; increased costs of compliance and other risks associated with changes in regulation, including any amendments to the Dodd-Frank Wall Street Reform and Consumer Protection Act; compliance with the Bank Secrecy Act and other money laundering statutes and regulations; potential goodwill impairment; liquidity risk; failure to comply with debt covenants;  fluctuations in interest rates; risks associated with acquisitions and the expansion of our business into new markets; inflation and deflation; real estate market conditions and the value of real estate collateral; the effects of having concentrations in our loan portfolio, including commercial real estate and the risks of geographic and industry concentrations; environmental liabilities; our ability to compete with larger competitors; our ability to retain key personnel; successful management of reputational risk; severe weather, natural disasters, earthquakes, fires; or other adverse external events could harm our business; geopolitical conditions, including acts or threats of terrorism, actions taken by the U.S. or other governments in response to acts or threats of terrorism and/or military conflicts, including the conflicts between Russia and Ukraine, in the Middle East, and increasing tensions between China and Taiwan, which could impact business and economic conditions in the U.S. and abroad; public health crises and pandemics, and their effects on the economic and business environments in which we operate, including our credit quality and business operations, as well as the impact on general economic and financial market conditions; general economic or business conditions in Asia, and other regions where the Bank has operations; failures, interruptions, or security breaches of our information systems; climate change, including any enhanced regulatory, compliance, credit and reputational risks and costs; cybersecurity threats and the cost of defending against them; our ability to adapt our systems to the expanding use of technology in banking; risk management processes and strategies; adverse results in legal proceedings; the impact of regulatory enforcement actions, if any; certain provisions in our charter and bylaws that may affect acquisition of the Company; changes in tax laws and regulations; the impact of governmental efforts to restructure the U.S. financial regulatory system; the impact of future or recent changes in the Federal Deposit Insurance Corporation (“FDIC”) insurance assessment rate and the rules and regulations related to the calculation of the FDIC insurance assessments; the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the SEC, the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters, including Accounting Standards Update 2016-13 (Topic 326, “Measurement of Current Losses on Financial Instruments, commonly referenced as the Current Expected Credit Losses Model, which changed how we estimate credit losses and may further increase the required level of our allowance for credit losses in future periods; market disruption and volatility; fluctuations in the Company’s stock price; restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure; issuances of preferred stock; our ability to raise additional capital, if needed, and the potential resulting dilution of interests of holders of our common stock; the soundness of other financial institutions; our ongoing relations with our various federal and state regulators, including the SEC, FDIC, FRB and California Department of Financial Protection and Innovation; our success at managing the risks involved in the foregoing items and all other factors set forth in the Company’s public reports, including its Annual Report as filed under Form 10-K for the year ended December 31, 2023, and particularly the discussion of risk factors within that document. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law. Any statements about future operating results, such as those concerning accretion and dilution to the Company’s earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ.

    RBB BANCORP AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited)
    (Dollars in thousands)

    		  
        September 30,     June 30,     March 31,     December 31,     September 30,  
        2024     2024     2024     2023     2023  
    Assets                                        
    Cash and due from banks   $ 26,388     $ 23,313     $ 21,887     $ 22,671     $ 23,809  
    Interest-earning deposits with financial institutions     323,002       229,456       247,356       408,702       306,982  
    Cash and Cash Equivalents     349,390       252,769       269,243       431,373       330,791  
    Interest-earning time deposits with financial institutions     600       600       600       600       600  
    Investment securities available for sale     305,666       325,582       335,194       318,961       354,378  
    Investment securities held to maturity     5,195       5,200       5,204       5,209       5,214  
    Mortgage loans held for sale     812       3,146       3,903       1,911       62  
    Loans held for investment     3,091,896       3,047,712       3,027,361       3,031,861       3,120,952  
    Allowance for loan losses     (43,685 )     (41,741 )     (41,688 )     (41,903 )     (42,430 )
    Net loans held for investment     3,048,211       3,005,971       2,985,673       2,989,958       3,078,522  
    Premises and equipment, net     24,839       25,049       25,363       25,684       26,134  
    Federal Home Loan Bank (FHLB) stock     15,000       15,000       15,000       15,000       15,000  
    Cash surrender value of bank owned life insurance     59,889       59,486       59,101       58,719       58,346  
    Goodwill     71,498       71,498       71,498       71,498       71,498  
    Servicing assets     7,256       7,545       7,794       8,110       8,439  
    Core deposit intangibles     2,194       2,394       2,594       2,795       3,010  
    Right-of-use assets     29,283       30,530       31,231       29,803       29,949  
    Accrued interest and other assets     70,644       63,416       65,608       66,404       87,411  
    Total assets   $ 3,990,477     $ 3,868,186     $ 3,878,006     $ 4,026,025     $ 4,069,354  
    Liabilities and shareholders’ equity                                        
    Deposits:                                        
    Noninterest-bearing demand   $ 543,623     $ 542,971     $ 539,517     $ 539,621     $ 572,393  
    Savings, NOW and money market accounts     666,089       647,770       642,840       632,729       608,020  
    Time deposits, $250,000 and under     1,052,462       1,014,189       1,083,898       1,190,821       1,237,831  
    Time deposits, greater than $250,000     830,010       818,675       762,074       811,589       735,828  
    Total deposits     3,092,184       3,023,605       3,028,329       3,174,760       3,154,072  
    FHLB advances     200,000       150,000       150,000       150,000       150,000  
    Long-term debt, net of issuance costs     119,433       119,338       119,243       119,147       174,019  
    Subordinated debentures     15,102       15,047       14,993       14,938       14,884  
    Lease liabilities – operating leases     30,880       32,087       32,690       31,191       31,265  
    Accrued interest and other liabilities     23,150       16,818       18,765       24,729       42,603  
    Total liabilities     3,480,749       3,356,895       3,364,020       3,514,765       3,566,843  
    Shareholders’ equity:                                        
    Common Stock     259,280       266,160       271,645       271,925       277,462  
    Additional paid-in capital     3,520       3,456       3,348       3,623       3,579  
    Retained Earnings     262,946       262,518       259,903       255,152       247,159  
    Non-controlling interest     72       72       72       72       72  
    Accumulated other comprehensive loss, net     (16,090 )     (20,915 )     (20,982 )     (19,512 )     (25,761 )
    Total shareholders’ equity     509,728       511,291       513,986       511,260       502,511  
    Total liabilities and shareholders’ equity   $ 3,990,477     $ 3,868,186     $ 3,878,006     $ 4,026,025     $ 4,069,354  
    RBB BANCORP AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited)
    (In thousands, except share and per share data) 

    		  
        For the Three Months Ended     For the Nine Months Ended  
        September 30,
    2024    		     June 30,
    2024    		     September 30,
    2023    		     September 30,
    2024    		     September 30,
    2023    		  
    Interest and dividend income:                                        
    Interest and fees on loans   $ 47,326     $ 45,320     $ 47,617     $ 138,193     $ 148,369  
    Interest on interest-earning deposits     3,388       3,353       3,193       11,781       6,096  
    Interest on investment securities     3,127       3,631       4,211       10,369       10,321  
    Dividend income on FHLB stock     326       327       290       984       814  
    Interest on federal funds sold and other     258       255       252       779       716  
    Total interest and dividend income     54,425       52,886       55,563       162,106       166,316  
    Interest expense:                                        
    Interest on savings deposits, NOW and money market accounts     5,193       4,953       3,106       14,624       8,180  
    Interest on time deposits     22,553       21,850       21,849       67,725       54,424  
    Interest on long-term debt and subordinated debentures     1,681       1,679       2,579       5,039       7,668  
    Interest on other borrowed funds     453       439       440       1,331       2,428  
    Total interest expense     29,880       28,921       27,974       88,719       72,700  
    Net interest income before provision for credit losses     24,545       23,965       27,589       73,387       93,616  
    Provision for credit losses     3,300       557       1,399       3,857       3,793  
    Net interest income after provision for credit losses     21,245       23,408       26,190       69,530       89,823  
    Noninterest income:                                        
    Service charges and fees     1,071       1,064       1,057       3,127       3,200  
    Gain on sale of loans     447       451       212       1,210       258  
    Loan servicing fees, net of amortization     605       579       623       1,773       1,959  
    Increase in cash surrender value of life insurance     402       385       356       1,169       1,036  
    Gain on OREO     —       292       190       1,016       190  
    Other income     3,221       717       332       4,311       982  
    Total noninterest income     5,746       3,488       2,770       12,606       7,625  
    Noninterest expense:                                        
    Salaries and employee benefits     10,008       9,533       9,744       29,468       28,935  
    Occupancy and equipment expenses     2,518       2,439       2,414       7,400       7,242  
    Data processing     1,472       1,466       1,315       4,358       3,969  
    Legal and professional     958       1,260       1,022       3,098       6,907  
    Office expenses     348       352       437       1,056       1,163  
    Marketing and business promotion     252       189       340       613       892  
    Insurance and regulatory assessments     658       981       730       2,621       2,043  
    Core deposit premium     200       201       236       602       708  
    Other expenses     1,007       703       638       2,298       2,445  
    Total noninterest expense     17,421       17,124       16,876       51,514       54,304  
    Income before income taxes     9,570       9,772       12,084       30,622       43,144  
    Income tax expense     2,571       2,527       3,611       8,342       12,752  
    Net income   $ 6,999     $ 7,245     $ 8,473     $ 22,280     $ 30,392  
                                             
    Net income per share                                        
    Basic   $ 0.39     $ 0.39     $ 0.45     $ 1.22     $ 1.60  
    Diluted   $ 0.39     $ 0.39     $ 0.45     $ 1.22     $ 1.60  
    Cash Dividends declared per common share   $ 0.16     $ 0.16     $ 0.16     $ 0.48     $ 0.48  
    Weighted-average common shares outstanding                                        
    Basic     17,812,791       18,375,970       18,995,303       18,261,702       18,991,579  
    Diluted     17,885,359       18,406,897       18,997,304       18,313,086       19,013,838  
    RBB BANCORP AND SUBSIDIARIES
    AVERAGE BALANCE SHEET AND NET INTEREST INCOME
    (Unaudited)    		  
        For the Three Months Ended  
        September 30, 2024     June 30, 2024     September 30, 2023  
    (tax-equivalent basis, dollars in thousands)   Average
    Balance    		     Interest
     & Fees    		     Yield /
    Rate    		     Average
    Balance    		     Interest
    & Fees    		     Yield /
    Rate    		     Average
    Balance    		     Interest
    & Fees    		     Yield /
    Rate    		  
    Interest-earning assets                                                                        
    Cash and cash equivalents(1)   $ 260,205     $ 3,646       5.57 %   $ 255,973     $ 3,608       5.67 %   $ 270,484     $ 3,445       5.05 %
    FHLB Stock     15,000       326       8.65 %     15,000       327       8.77 %     15,000       290       7.67 %
    Securities                                                                        
    Available for sale(2)     298,948       3,105       4.13 %     318,240       3,608       4.56 %     369,459       4,187       4.50 %
    Held to maturity(2)     5,198       46       3.52 %     5,203       46       3.56 %     5,385       48       3.54 %
    Mortgage loans held for sale     1,165       23       7.85 %     3,032       57       7.56 %     739       13       6.98 %
    Loans held for investment:(3)                                                                        
    Real estate     2,888,528       43,495       5.99 %     2,828,339       41,590       5.91 %     2,968,246       43,583       5.83 %
    Commercial     179,885       3,808       8.42 %     185,679       3,673       7.96 %     187,140       4,021       8.52 %
    Total loans held for investment     3,068,413       47,303       6.13 %     3,014,018       45,263       6.04 %     3,155,386       47,604       5.99 %
    Total interest-earning assets     3,648,929     $ 54,449       5.94 %     3,611,466     $ 52,909       5.89 %     3,816,453     $ 55,587       5.78 %
    Total noninterest-earning assets     242,059                       240,016                       250,083                  
    Total average assets   $ 3,890,988                     $ 3,851,482                     $ 4,066,536                  
                                                                             
    Interest-bearing liabilities                                                                        
    NOW     55,757       277       1.98 %   $ 56,081     $ 276       1.98 %   $ 55,325     $ 201       1.44 %
    Money Market     439,936       4,093       3.70 %     431,559       3,877       3.61 %     403,300       2,656       2.61 %
    Saving deposits     164,515       823       1.99 %     164,913       800       1.95 %     123,709       249       0.80 %
    Time deposits, $250,000 and under     1,037,365       12,312       4.72 %     1,049,666       12,360       4.74 %     1,285,320       14,090       4.35 %
    Time deposits, greater than $250,000     819,207       10,241       4.97 %     772,255       9,490       4.94 %     717,026       7,759       4.29 %
    Total interest-bearing deposits     2,516,780       27,746       4.39 %     2,474,474       26,803       4.36 %     2,584,680       24,955       3.83 %
    FHLB advances     150,543       453       1.20 %     150,000       439       1.18 %     150,000       440       1.16 %
    Long-term debt     119,370       1,295       4.32 %     119,275       1,296       4.37 %     173,923       2,194       5.00 %
    Subordinated debentures     15,066       386       10.19 %     15,011       383       10.26 %     14,848       385       10.29 %
    Total interest-bearing liabilities     2,801,759       29,880       4.24 %     2,758,760       28,921       4.22 %     2,923,451       27,974       3.80 %
    Noninterest-bearing liabilities                                                                        
    Noninterest-bearing deposits     528,081                       529,450                       571,371                  
    Other noninterest-bearing liabilities     52,428                       51,087                       67,282                  
    Total noninterest-bearing liabilities     580,509                       580,537                       638,653                  
    Shareholders’ equity     508,720                       512,185                       504,432                  
    Total liabilities and shareholders’ equity   $ 3,890,988                     $ 3,851,482                     $ 4,066,536                  
    Net interest income / interest rate spreads           $ 24,569       1.70 %           $ 23,988       1.67 %           $ 27,613       1.98 %
    Net interest margin                     2.68 %                     2.67 %                     2.87 %
                                                                             
    Total cost of deposits   $ 3,044,861     $ 27,746       3.63 %   $ 3,003,924     $ 26,803       3.59 %   $ 3,156,051     $ 24,955       3.14 %
    Total cost of funds   $ 3,329,840     $ 29,880       3.57 %   $ 3,288,210     $ 28,921       3.54 %   $ 3,494,822     $ 27,974       3.18 %

    _________________
    (1) Includes income and average balances for interest-earning time deposits and other miscellaneous interest-earning assets.
    (2) Interest income and average rates for tax-exempt securities are presented on a tax-equivalent basis.
    (3) Average loan balances include nonaccrual loans. Interest income on loans includes the effects of discount accretion and net deferred loan origination fees and costs accounted for as yield adjustments.

    RBB BANCORP AND SUBSIDIARIES
    AVERAGE BALANCE SHEET AND NET INTEREST INCOME
    (Unaudited)    		  
        For the Nine Months Ended  
        September 30, 2024     September 30, 2023  
    (tax-equivalent basis, dollars in thousands)   Average
    Balance    		     Interest
    & Fees    		     Yield /
    Rate    		     Average
    Balance    		     Interest
    & Fees    		     Yield /
    Rate    		  
    Interest-earning assets                                                
    Cash and cash equivalents(1)   $ 293,597     $ 12,560       5.71 %   $ 177,393     $ 6,812       5.13 %
    FHLB Stock     15,000       984       8.76 %     15,000       814       7.26 %
    Securities                                                
    Available for sale(2)     312,352       10,302       4.41 %     332,007       10,245       4.13 %
    Held to maturity(2)     5,203       140       3.59 %     5,610       151       3.60 %
    Mortgage loans held for sale     1,802       105       7.78 %     295       16       7.25 %
    Loans held for investment:(3)                                                
    Real estate     2,851,625       126,852       5.94 %     3,041,393       134,791       5.93 %
    Commercial     181,716       11,236       8.26 %     214,618       13,562       8.45 %
    Total loans held for investment     3,033,341       138,088       6.08 %     3,256,011       148,353       6.09 %
    Total interest-earning assets     3,661,295     $ 162,179       5.92 %     3,786,316     $ 166,391       5.88 %
    Total noninterest-earning assets     242,802                       244,822                  
    Total average assets   $ 3,904,097                     $ 4,031,138                  
                                                     
    Interest-bearing liabilities                                                
    NOW   $ 56,924       851       2.00 %   $ 59,476     $ 511       1.15 %
    Money Market     427,884       11,496       3.59 %     431,299       7,315       2.27 %
    Saving deposits     162,207       2,277       1.88 %     118,550       354       0.40 %
    Time deposits, $250,000 and under     1,087,501       38,476       4.73 %     1,141,290       33,905       3.97 %
    Time deposits, greater than $250,000     792,310       29,249       4.93 %     729,699       20,519       3.76 %
    Total interest-bearing deposits     2,526,826       82,349       4.35 %     2,480,314       62,604       3.37 %
    FHLB advances     150,182       1,331       1.18 %     179,707       2,428       1.81 %
    Long-term debt     119,276       3,886       4.35 %     173,780       6,584       5.07 %
    Subordinated debentures     15,012       1,153       10.26 %     14,794       1,084       9.80 %
    Total interest-bearing liabilities     2,811,296       88,719       4.22 %     2,848,595       72,700       3.41 %
    Noninterest-bearing liabilities                                                
    Noninterest-bearing deposits     528,624                       624,781                  
    Other noninterest-bearing liabilities     52,955                       58,786                  
    Total noninterest-bearing liabilities     581,579                       683,567                  
    Shareholders’ equity     511,222                       498,976                  
    Total liabilities and shareholders’ equity   $ 3,904,097                     $ 4,031,138                  
    Net interest income / interest rate spreads           $ 73,460       1.70 %           $ 93,691       2.47 %
    Net interest margin                     2.68 %                     3.31 %
                                                     
    Total cost of deposits   $ 3,055,450     $ 82,349       3.60 %   $ 3,105,095     $ 62,604       2.70 %
    Total cost of funds   $ 3,339,920     $ 88,719       3.55 %   $ 3,473,376     $ 72,700       2.80 %

    _______________
    (1) Includes income and average balances for interest-earning time deposits and other miscellaneous interest-earning assets.
    (2) Interest income and average rates for tax-exempt securities are presented on a tax-equivalent basis.
    (3) Average loan balances include nonaccrual loans. Interest income on loans includes the effects of discount accretion and net deferred loan origination fees and costs accounted for as yield adjustments.

    RBB BANCORP AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
    		  
      At or for the Three Months Ended     At or for the Nine Months
    Ended September 30,    		  
      September 30,   June 30,     September 30,                  
        2024     2024     2023     2024     2023  
    Per share data (common stock)                                  
    Book value $ 28.81     $ 28.12     $ 26.45     $ 28.81     $ 26.45  
    Tangible book value(1) $ 24.64     $ 24.06     $ 22.53     $ 24.64     $ 22.53  
    Performance ratios                                  
    Return on average assets, annualized   0.72 %     0.76 %     0.83 %     0.76 %     1.01 %
    Return on average shareholders’ equity, annualized   5.47 %     5.69 %     6.66 %     5.82 %     8.14 %
    Return on average tangible common equity, annualized(1)   6.40 %     6.65 %     7.82 %     6.81 %     9.58 %
    Noninterest income to average assets, annualized   0.59 %     0.36 %     0.27 %     0.43 %     0.25 %
    Noninterest expense to average assets, annualized   1.78 %     1.79 %     1.65 %     1.76 %     1.80 %
    Yield on average earning assets   5.94 %     5.89 %     5.78 %     5.92 %     5.88 %
    Yield on average loans   6.13 %     6.04 %     5.99 %     6.08 %     6.09 %
    Cost of average total deposits(2)   3.63 %     3.59 %     3.14 %     3.60 %     2.70 %
    Cost of average interest-bearing deposits   4.39 %     4.36 %     3.83 %     4.35 %     3.37 %
    Cost of average interest-bearing liabilities   4.24 %     4.22 %     3.80 %     4.22 %     3.41 %
    Net interest spread   1.70 %     1.67 %     1.98 %     1.70 %     2.47 %
    Net interest margin   2.68 %     2.67 %     2.87 %     2.68 %     3.31 %
    Efficiency ratio(3)   57.51 %     62.38 %     55.59 %     59.90 %     53.64 %
    Common stock dividend payout ratio   41.03 %     41.03 %     35.56 %     39.34 %     30.00 %

    ____________________

    (1) Non-GAAP measure. See Non–GAAP reconciliations set forth at the end of this press release.
    (2) Total deposits include non-interest bearing deposits and interest-bearing deposits.
    (3) Ratio calculated by dividing noninterest expense by the sum of net interest income before provision for credit losses and noninterest income.

    RBB BANCORP AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
    (Dollars in thousands)    		  
        At or for the quarter ended  
        September 30,     June 30,     September 30,  
        2024     2024     2023  
    Credit Quality Data:                        
    Special mention loans   $ 77,501     $ 19,520     $ 31,212  
    Special mention loans to total loans     2.51 %     0.64 %     1.00 %
    Substandard loans   $ 79,831     $ 63,076     $ 71,401  
    Substandard loans to total loans     2.58 %     2.07 %     2.29 %
    Loans 30-89 days past due, excluding nonperforming loans   $ 10,625     $ 11,270     $ 19,662  
    Loans 30-89 days past due, excluding nonperforming loans, to total loans     0.34 %     0.37 %     0.63 %
    Nonperforming loans   $ 60,662     $ 54,589     $ 40,146  
    OREO     —       —       284  
    Nonperforming assets   $ 60,662     $ 54,589     $ 40,430  
    Nonperforming loans to total loans     1.96 %     1.79 %     1.29 %
    Nonperforming assets to total assets     1.52 %     1.41 %     0.99 %
                             
    Allowance for loan losses   $ 43,685     $ 41,741     $ 42,430  
    Allowance for loan losses to total loans     1.41 %     1.37 %     1.36 %
    Allowance for loan losses to nonperforming loans     72.01 %     76.46 %     105.69 %
    Net charge-offs   $ 1,201     $ 551     $ 2,206  
    Net charge-offs to average loans     0.16 %     0.07 %     0.28 %
                             
    Capital ratios(1)                        
    Tangible common equity to tangible assets(2)     11.13 %     11.53 %     10.71 %
    Tier 1 leverage ratio     12.19 %     12.48 %     11.68 %
    Tier 1 common capital to risk-weighted assets     18.16 %     18.89 %     17.65 %
    Tier 1 capital to risk-weighted assets     18.74 %     19.50 %     18.22 %
    Total capital to risk-weighted assets     24.79 %     25.67 %     26.24 %

    ______________
    (1) September 30, 2024 capital ratios are preliminary.
    (2) Non-GAAP measure. See Non-GAAP reconciliations set forth at the end of this press release.

    RBB BANCORP AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)

    		  
    Loan Portfolio Detail   As of September 30, 2024   As of June 30, 2024     As of September 30, 2023  
    (dollars in thousands)   $   %   $       %   $       %
    Loans:                                          
    Commercial and industrial   $ 128,861   4.2 %   $ 126,649       4.2 %   $ 127,655       4.1 %
    SBA     48,089   1.6 %     50,323       1.7 %     50,420       1.6 %
    Construction and land development     180,196   5.8 %     202,459       6.6 %     259,778       8.3 %
    Commercial real estate (1)     1,252,682   40.5 %     1,190,207       39.1 %     1,164,210       37.3 %
    Single-family residential mortgages     1,473,396   47.7 %     1,467,802       48.2 %     1,505,307       48.2 %
    Other loans     8,672   0.2 %     10,272       0.2 %     13,582       0.5 %
    Total loans (2)   $ 3,091,896   100.0 %   $ 3,047,712       100.0 %   $ 3,120,952       100.0 %
    Allowance for loan losses     (43,685 )       (41,741 )             (42,430 )        
    Total loans, net   $ 3,048,211       $ 3,005,971             $ 3,078,522          

    _______________
    (1) Includes non-farm and non-residential loans, multi-family residential loans and non-owner occupied single family residential loans.
    (2) Net of discounts and deferred fees and costs of $467, $645, and $383 as of September 30, 2024, June 30, 2024, and September 30, 2023, respectively.

    Deposits   As of September 30, 2024   As of June 30, 2024     As of September 30, 2023  
    (dollars in thousands)   $   %   $       %   $       %
    Deposits:                                          
    Noninterest-bearing demand   $ 543,623   17.6 %   $ 542,971       18.0 %   $ 572,393       18.1 %
    Savings, NOW and money market accounts     666,089   21.5 %     647,770       21.4 %     608,020       19.3 %
    Time deposits, $250,000 and under     926,877   30.0 %     921,712       30.5 %     848,868       26.9 %
    Time deposits, greater than $250,000     808,304   26.1 %     790,478       26.1 %     687,365       21.8 %
    Wholesale deposits(1)     147,291   4.8 %     120,674       4.0 %     437,426       13.9 %
    Total deposits   $ 3,092,184   100.0 %   $ 3,023,605       100.0 %   $ 3,154,072       100.0 %

    ___________________
    (1) Includes brokered deposits, collateralized deposits from the State of California, and deposits acquired through internet listing services.

    Non-GAAP Reconciliations

    Tangible Book Value Reconciliations

    Tangible book value per share is a non-GAAP disclosure. Management measures tangible book value per share to assess the Company’s capital strength and business performance and believes this is helpful to investors as additional tools for further understanding our performance. The following is a reconciliation of tangible book value to the Company shareholders’ equity computed in accordance with GAAP, as well as a calculation of tangible book value per share as of September 30, 2024, June 30, 2024, and September 30, 2023.

                           
    (dollars in thousands, except share and per share data)   September 30,
    2024    		     June 30,
    2024    		     September 30,
    2023    		  
    Tangible common equity:                        
    Total shareholders’ equity   $ 509,728     $ 511,291     $ 502,511  
    Adjustments                        
    Goodwill     (71,498 )     (71,498 )     (71,498 )
    Core deposit intangible     (2,194 )     (2,394 )     (3,010 )
    Tangible common equity   $ 436,036     $ 437,399     $ 428,003  
    Tangible assets:                        
    Total assets-GAAP   $ 3,990,477     $ 3,868,186     $ 4,069,354  
    Adjustments                        
    Goodwill     (71,498 )     (71,498 )     (71,498 )
    Core deposit intangible     (2,194 )     (2,394 )     (3,010 )
    Tangible assets   $ 3,916,785     $ 3,794,294     $ 3,994,846  
    Common shares outstanding     17,693,416       18,182,154       18,995,303  
    Common equity to assets ratio     12.77 %     13.22 %     12.35 %
    Tangible common equity to tangible assets ratio     11.13 %     11.53 %     10.71 %
    Book value per share   $ 28.81     $ 28.12     $ 26.45  
    Tangible book value per share   $ 24.64     $ 24.06     $ 22.53  


    Return on Average Tangible Common Equity

    Management measures return on average tangible common equity (“ROATCE”) to assess the Company’s capital strength and business performance and believes this is helpful to investors as an additional tool for further understanding our performance. Tangible equity excludes goodwill and other intangible assets (excluding mortgage servicing rights), and is reviewed by banking and financial institution regulators when assessing a financial institution’s capital adequacy. This non-GAAP financial measure should not be considered a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures used by other companies. The following table reconciles ROATCE to its most comparable GAAP measure:

        Three Months Ended     Nine Months Ended September 30,  
    (dollars in thousands)   September 30,
    2024    		     June 30,
    2024    		     September 30,
    2023    		     2024     2023  
    Net income available to common shareholders   $ 6,999     $ 7,245     $ 8,473     $ 22,280     $ 30,392  
    Average shareholders’ equity     508,720       512,185       504,432       511,222       498,976  
    Adjustments:                                        
    Average goodwill     (71,498 )     (71,498 )     (71,498 )     (71,498 )     (71,498 )
    Average core deposit intangible     (2,326 )     (2,525 )     (3,165 )     (2,525 )     (3,398 )
    Adjusted average tangible common equity   $ 434,896     $ 438,162     $ 429,769     $ 437,199     $ 424,080  
    Return on average common equity     5.47 %     5.69 %     6.66 %     5.82 %     8.14 %
    Return on average tangible common equity     6.40 %     6.65 %     7.82 %     6.81 %     9.58 %

    The MIL Network –

  • MIL-OSI: CNB Financial Corporation Reports Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    CLEARFIELD, Pa., Oct. 21, 2024 (GLOBE NEWSWIRE) — CNB Financial Corporation (“Corporation”) (NASDAQ: CCNE), the parent company of CNB Bank, today announced its earnings for the three and nine months ended September 30, 2024.

    Executive Summary

    • Net income available to common shareholders (“earnings”) was $12.9 million, or $0.61 per diluted share, for the three months ended September 30, 2024, compared to earnings of $11.9 million, or $0.56 per diluted share, for the three months ended June 30, 2024. The quarterly increase was a result of increases in both net interest income and non-interest income, partially offset by an increase in non-interest expense, as discussed in more detail below. The increase in third quarter 2024 earnings and diluted earnings per share when compared to the quarter ended September 30, 2023 earnings of $12.7 million, or $0.60 per diluted share, was primarily due to the increase in non-interest income, partially offset by an increase in non-interest expense.
    • Earnings were $36.3 million, or $1.72 per diluted share, for the nine months ended September 30, 2024, compared to earnings of $40.8 million, or $1.94 per diluted share, for the nine months ended September 30, 2023. The decrease in earnings and diluted earnings per share comparing the nine months ended September 30, 2024 to the nine months ended September 30, 2023 was primarily due to the rise in deposit costs year over year.
    • At September 30, 2024, loans totaled $4.5 billion, excluding the balances of syndicated loans. This adjusted total of $4.5 billion in loans represented an increase of $96.7 million, or 2.18% (8.69% annualized), compared to the same adjusted total loans measured as of June 30, 2024, and an increase of $153.4 million, or 3.51%, compared to the same adjusted total loans measured as of September 30, 2023. The increase in loans for the quarter ended September 30, 2024 compared to the quarter ended June 30, 2024 was primarily driven by qualitative commercial and industrial growth in the Erie and Columbus markets and continued growth in new commercial customer relationships in the Corporation’s recent expansion market of Roanoke, coupled with growth in CNB’s Private Banking division with notable activity in the Roanoke market. The year over year growth in loans as of September 30, 2024 compared to loans as of September 30, 2023 resulted primarily from growth in the Corporation’s continued expansion into the newer markets of Cleveland and Roanoke, combined with growth in the Columbus and Erie markets and CNB Bank’s Private Banking division.
      • At September 30, 2024, the Corporation’s balance sheet reflected an increase in syndicated lending balances of $15.5 million compared to June 30, 2024. The increase in syndicated lending balances was the result of the Corporation managing the level of its syndicated portfolio by ensuring its historical discipline of seeking high credit quality loans with favorable yields. Year over year, the Corporation’s balance sheet reported a decrease in syndicated lending balances of $53.6 million compared to September 30, 2023, resulting from scheduled paydowns or early payoffs of certain syndicated loans. The syndicated loan portfolio totaled $69.5 million, or 1.51% of total loans, at September 30, 2024, compared to $53.9 million, or 1.20% of total loans, at June 30, 2024 and $123.1 million, or 2.74% of total loans, at September 30, 2023. As noted above, the Corporation is closely managing the level of its syndicated loan portfolio while it focuses more resources on organic loan growth from its in-market customer relationships.
    • At September 30, 2024, total deposits were $5.2 billion, reflecting an increase of $106.1 million, or 2.08% (8.26% annualized), from the previous quarter ended June 30, 2024, and an increase of $214.2 million, or 4.28%, compared to total deposits measured as of September 30, 2023. The increase in deposit balances compared to June 30, 2024 was primarily attributable to an increase in noninterest-bearing business deposits and retail saving deposits. Additional deposit and liquidity profile details were as follows:
      • During the quarter ended September 30, 2024, the Corporation repositioned $135.0 million of brokered deposits from savings to certificates of deposits. Additionally, $50.0 million of maturing brokered certificates of deposit were replaced with a similar offering. The repositioning and replacement totaling $185.0 million during the quarter and reduced the weighted average annual percentage yield (“APY”) from 5.70% to a locked-in APY of 4.37%, for maturity periods ranging from 12-14 months. This adjustment is expected to result in an estimated annual interest expense savings of $2.5 million for the Corporation. The mix of brokered deposits of 3.55% of total deposits at September 30, 2024, remained stable with the mix of 3.58% of total deposits at June 30, 2024.
      • At September 30, 2024, the total estimated uninsured deposits for CNB Bank were approximately $1.5 billion, or approximately 28.50% of total CNB Bank deposits. However, when excluding $103.1 million of affiliate company deposits and $462.7 million of pledged-investment collateralized deposits, the adjusted amount and percentage of total estimated uninsured deposits was approximately $950.6 million, or approximately 17.87% of total CNB Bank deposits as of September 30, 2024.
        • The level of adjusted uninsured deposits at September 30, 2024 was relatively unchanged with the prior quarter end’s level. At June 30, 2024, the total estimated uninsured deposits for CNB Bank were approximately $1.5 billion, or approximately 29.00% of total CNB Bank deposits; however, when excluding $101.4 million of affiliate company deposits and $460.7 million of pledged-investment collateralized deposits, the adjusted amount and percentage of total estimated uninsured deposits was approximately $949.8 million, or approximately 18.22% of total CNB Bank deposits as of June 30, 2024.
      • At September 30, 2024, the average deposit balance per account for CNB Bank was approximately $33 thousand, which generally remained consistent with the average deposit balance per account from recent quarters. CNB Bank had increases in the volume of business deposits, as well as retail customer household deposits, including those added after the 2023 launches of (i) CNB Bank’s “At Ease” account, a service for U.S. service member and veteran families, and (ii) CNB’s women-focused banking division, Impressia Bank.
      • At September 30, 2024, the Corporation had $282.0 million of cash equivalents held in CNB Bank’s interest-bearing deposit account at the Federal Reserve. These excess funds, when combined with collective contingent liquidity resources of $4.5 billion including (i) available borrowing capacity from the Federal Home Bank of Pittsburgh (“FHLB”) and the Federal Reserve, and (ii) available unused commitments from brokered deposit sources and other third-party funding channels, including previously established lines of credit from correspondent banks, resulted in the total on-hand and contingent liquidity sources for the Corporation as of September 30, 2024 to be approximately 5.0 times the estimated amount of adjusted uninsured deposit balances discussed above.
    • At September 30, 2024, June 30, 2024 and September 30, 2023, the Corporation had no outstanding short-term borrowings from the FHLB or the Federal Reserve’s Discount Window.
    • At September 30, 2024, the Corporation’s pre-tax net unrealized losses on available-for-sale and held-to-maturity securities totaled approximately $62.5 million, or 10.30% of total shareholders’ equity, compared to $84.1 million, or 14.33% of total shareholders’ equity, at June 30, 2024. The change in unrealized losses was primarily due to changes in the yield curve in the third quarter of 2024 compared to the second quarter of 2024, coupled with the Corporation’s scheduled bond maturities, which were all realized at par. Importantly, all regulatory capital ratios for the Corporation would still exceed regulatory “well-capitalized” levels as of both September 30, 2024 and June 30, 2024 if the net unrealized losses at the respective dates were fully recognized. Additionally, the Corporation maintained $102.0 million of liquid funds at its holding company, which more than covers the $62.5 million in unrealized losses on investments held primarily in its wholly-owned banking subsidiary, as an immediately available source of contingent capital to be down-streamed to CNB Bank, if necessary.
    • Total nonperforming assets were approximately $42.0 million, or 0.70% of total assets, as of September 30, 2024, compared to $36.5 million, or 0.62% of total assets, as of June 30, 2024, and $29.3 million, or 0.51% of total assets, as of September 30, 2023. The increase in nonperforming assets for the three months ended September 30, 2024 compared to the three months ended June 30, 2024 was primarily due to one commercial relationship (consisting of various loan types) totaling $7.9 million with a specific reserve balance of $2.2 million. Management does not believe there is risk of significant additional loss exposures beyond the specific reserves related to this loan relationship. The increase in non-performing assets at September 30, 2024 compared to September 30, 2023 was due to the loan relationship discussed above, as well as certain commercial and industrial relationships as previously disclosed in the fourth quarter of 2023 and second quarter of 2024, and a commercial real estate relationship as previously disclosed in the third quarter of 2023. For the three months ended September 30, 2024, net loan charge-offs were $1.2 million, or 0.11% (annualized) of average total loans and loans held for sale, compared to $2.8 million, or 0.25% (annualized) of average total loans and loans held for sale, during the three months ended June 30, 2024, and $732 thousand, or 0.06% (annualized) of average total loans and loans held for sale, during the three months ended September 30, 2023.
    • Pre-provision net revenue (“PPNR”), a non-GAAP measure, was $19.7 million for the three months ended September 30, 2024, compared to $18.6 million and $18.2 million for the three months ended June 30, 2024 and September 30, 2023, respectively.1 The third quarter 2024 PPNR, when compared to the second quarter of 2024, reflected improvements in net interest income and non-interest income, partially offset by higher non-interest expense. The increase in PPNR for the three months ended September 30, 2024, compared to the three months ended September 30, 2023, was primarily attributable to the increase in non-interest income. PPNR was $55.0 million for the nine months ended September 30, 2024 compared to $59.4 million for the nine months ended September 30, 2023.1 The decrease in PPNR for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 was primarily attributable to the significant year-over-year increase in deposit costs, coupled with increases in certain personnel costs (primarily from new offices and personnel added in expansion markets), as well as additional technology expenses for recently completed full implementation of business development and customer relationship management applications.

    1 This release contains references to certain financial measures that are not defined under U.S. Generally Accepted Accounting Principles (“GAAP”). Management believes that these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented. A reconciliation of these non-GAAP financial measures is provided in the “Reconciliation of Non-GAAP Financial Measures” section.

    Michael Peduzzi, President and CEO of both the Corporation and CNB Bank, commented on the Corporation’s positive quarterly results, stating, “CNB’s performance for the third quarter of 2024 was much in alignment with themes in a time of year when so many sports are active. We continue to have a strong defense with our traditionally sound loan and investment underwriting, disciplined loan and deposit pricing, and solid risk management practices. This was complemented by a solid offensive push as we translated pipeline activity and qualified business leads into sound loan growth, and an expansion of the number of relationships and accounts in our deposit base, all leading to notable increases in revenues. Further, thanks to effective “special team” efforts by our Finance team, we closely monitored market conditions and took advantage of an opportunity to realize substantial interest expense savings by repositioning a large portion of wholesale funding sources.

    The Corporation’s team across our entire footprint continues to be focused on controlling staffing levels and overhead cost management, while expanding the use of the Corporation’s previous investments in key sales and customer experience technologies. Our playbook for implementing our overall strategy remains the same – to maintain a team of motivated and engaged employees delivering products and services to achieve mutually beneficial and sustainable success for our clients and investors.”

    Other Balance Sheet Highlights

    • Book value per common share was $26.13 at September 30, 2024, reflecting an increase from $25.19 at June 30, 2024 and $23.52 at September 30, 2023. Tangible book value per common share, a non-GAAP measure, was $24.03 as of September 30, 2024, reflecting an increase of $0.94, or 16.20% (annualized) from $23.09 as of June 30, 2024 and a year-over-year increase of $2.63, or 12.29%, from $21.40 as of September 30, 2023.1 The increases in book value per common share and tangible book value per common share compared to June 30, 2024 were primarily due to a $9.1 million increase in retained earnings and a $10.1 million decrease in accumulated other comprehensive loss primarily from the after-tax impact of temporary unrealized valuation changes in the Corporation’s available-for-sale investment portfolio for the past three months. The increases in book value per common share and tangible book value per common share compared to September 30, 2023 were primarily due to (i) a $34.4 million increase in retained earnings over the twelve months ended September 30, 2024, (ii) the Corporation’s repurchase of 23,988 common shares at a weighted average price of $18.38 in the second quarter of 2024, and (iii) a $21.2 million decrease in accumulated other comprehensive loss primarily from the after-tax impact of temporary unrealized valuation changes in the Corporation’s available-for-sale investment portfolio for the past twelve months.

    Loan Portfolio Profile

    • As part of our lending policy and risk management activities, the Corporation tracks lending exposure by industry classification and type to determine potential risks associated with industry concentrations, and if any concentration risk issues could lead to additional credit loss exposure. In the current post-pandemic and relatively inflationary economic environment, the Corporation has continued to evaluate its exposure to the office, hospitality, and multifamily industries within its commercial real estate portfolio. Even given the Corporation’s historically sound underwriting protocols and high credit quality ratings for borrowers in the commercial real estate industry segments, the Corporation monitors numerous relevant sensitivity elements, including occupancy, loan-to-value, absorption and cap rates, debt service coverage and covenant compliance, and developer/lessor financial strength both in the project and globally. At September 30, 2024, the Corporation had the following key metrics related to its office, hospitality and multifamily portfolios:
    • Commercial office loans:
      • There were 114 outstanding loans, totaling $117.0 million, or 2.55%, of the Corporation loans outstanding;
      • There were no nonaccrual commercial office loans at September 30, 2024;
      • There was one past due commercial office loan that totaled $214 thousand, or 0.18% of total commercial office loans outstanding at September 30, 2024; and
      • The average outstanding balance per commercial office loan was $1.0 million.
    • Commercial hospitality loans:
      • There were 173 outstanding loans, totaling $320.6 million, or 6.98%, of total Corporation loans outstanding;
      • There were no nonaccrual commercial hospitality loans at September 30, 2024;
      • There were no past due commercial hospitality loans at September 30, 2024; and
      • The average outstanding balance per commercial hospitality loan was $1.9 million.
    • Commercial multifamily loans:
      • There were 225 outstanding loans, totaling $349.1 million, or 7.60%, of total Corporation loans outstanding;
      • There was one nonaccrual commercial multifamily loan that totaled $268 thousand, or 0.08% of total multifamily loans outstanding. The one customer relationship did not have a related specific loss reserve at September 30, 2024
      • There were two past due commercial office loans that totaled $760 thousand, or 0.22% of total commercial multifamily loans outstanding at September 30, 2024; and
      • The average outstanding balance per commercial multifamily loan was $1.6 million.

    The Corporation had no commercial office, hospitality or multifamily loan relationships considered by the banking regulators to be a high volatility commercial real estate credit (“HVCRE”).

    Performance Ratios

    • Annualized return on average equity was 9.28% for the three months ended September 30, 2024, compared to 8.94% and 9.80% for the three months ended June 30, 2024 and September 30, 2023, respectively. Annualized return on average equity was 9.01% for the nine months ended September 30, 2024 compared to 10.74% for the nine months ended September 30, 2023.
    • Annualized return on average tangible common equity, a non-GAAP measure, was 10.33% for the three months ended September 30, 2024, compared to 9.93% and 11.07% for the three months ended June 30, 2024 and September 30, 2023, respectively.1 Annualized return on average tangible common equity, a non-GAAP measure, was 10.01% for the nine months ended September 30, 2024 compared to 12.23% for the nine months ended September 30, 2023.1
    • The Corporation’s efficiency ratio was 66.34% for the three months ended September 30, 2024, compared to 65.94% and 67.00% for the three months ended June 30, 2024 and September 30, 2023, respectively. The efficiency ratio on a fully tax-equivalent basis, a non-GAAP measure, was 65.58% for the three months ended September 30, 2024, compared to 65.20% and 66.26% for the three months ended June 30, 2024 and September 30, 2023, respectively.1 The increase for the three months ended September 30, 2024 compared to the three months ended June 30, 2024 was primarily the result of an increase in incentive compensation related accruals which are based on various components of the Corporation’s financial performance for the year.
    • The Corporation’s efficiency ratio was 67.10% for the nine months ended September 30, 2024, compared to 64.26% for the nine months ended September 30, 2023. The efficiency ratio on a fully tax-equivalent basis, a non-GAAP ratio, was 66.34% for the nine months ended September 30, 2024, compared to 63.60% the nine months ended September 30, 2023.1

    Revenue

    • Total revenue (net interest income plus non-interest income) was $58.5 million for the three months ended September 30, 2024, compared to $54.6 million and $55.1 million for the three months ended June 30, 2024 and September 30, 2023, respectively.
      • Net interest income was $47.5 million for the three months ended September 30, 2024, compared to $45.7 million and $47.2 million, for the three months ended June 30, 2024 and September 30, 2023, respectively. When comparing the third quarter of 2024 to the second quarter of 2024, the difference in net interest income of $1.8 million, or 3.87% (15.39% annualized), reflected the increase in total loans outstanding quarter over quarter, partially offset by targeted interest-bearing deposit rate increases to ensure both deposit relationship retention and new deposit growth in the Corporation’s markets.
      • Net interest margin was 3.43%, 3.36% and 3.55% for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively. Net interest margin on a fully tax-equivalent basis, a non-GAAP measure, was 3.42%, 3.34% and 3.53% for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.1 
        • The yield on earning assets of 5.98% for the three months ended September 30, 2024 increased 9 basis points from June 30, 2024 and increased 35 basis points from September 30, 2023. The increases in yield compared to June 30, 2024 and September 30, 2023 were attributable to the net benefit of higher interest rates on both variable-rate loans and new loan production.
        • The cost of interest-bearing liabilities of 3.21% for the three months ended September 30, 2024 increased 4 basis points from June 30, 2024 and 55 basis points from September 30, 2023 primarily as a result of the Corporation’s targeted interest-bearing deposit rate increases for deposit retention and growth initiatives given the competitive environment resulting from the numerous Federal Reserve rate hikes since the first quarter of 2022.
    • Total revenue was $167.2 million for the nine months ended September 30, 2024 compared to $166.3 million for the nine months ended September 30, 2023.
      • Net interest income was $138.4 million for the nine months ended September 30, 2024 compared to $142.1 million for the nine months ended September 30, 2023. When comparing the nine months ended September 30, 2024 to the nine months ended September 30, 2023, the decrease in net interest income of $3.7 million, or 2.61% (3.49% annualized), was due to loan growth and the benefits of the impact of higher interest rates resulting in greater income on variable-rate loans, coupled with a higher average balance of interest-bearing deposits with the Federal Reserve, being more than offset by an increase in the Corporation’s interest expense as a result of targeted interest-bearing deposit rate increases to ensure both deposit growth and retention.
      • Net interest margin was 3.40% and 3.66% for the nine months ended September 30, 2024 and 2023, respectively. Net interest margin on a fully tax-equivalent basis, a non-GAAP measure, was 3.38% and 3.64% for the nine months ended September 30, 2024 and 2023, respectively.1 
        • The yield on earning assets of 5.89% for the nine months ended September 30, 2024 increased 41 basis points from September 30, 2023. The increase in yield compared to September 30, 2023 was attributable to the net benefit of higher interest rates on both variable-rate loans and new loan production.
        • The cost of interest-bearing liabilities of 3.14% for the nine months ended September 30, 2024 increased 80 basis points from September 30, 2023 primarily as a result of the Corporation’s targeted interest-bearing deposit rate increases for deposit retention and growth initiatives given the competitive environment resulting from the numerous Federal Reserve rate hikes since the first quarter of 2022. The Federal Reserve rate decrease announced in mid-September 2024, being only effective for a short period of time in the quarter, had no significant impact on the Corporation’s third quarter results.
    • Total non-interest income was $11.0 million for the three months ended September 30, 2024 compared to $8.9 million and $7.9 million for the three months ended June 30, 2024 and September 30, 2023, respectively. During the three months ended September 30, 2024, notable changes compared to the three months ended June 30, 2024 included increases in net realized and unrealized gains on equity securities and higher pass-through income from small business investment companies (“SBICs”). The increase in third quarter 2024 noninterest income compared to the three months ended September 30, 2023 was primarily due to higher pass-through income from SBICs and net realized and unrealized gains on equity securities.
    • Total non-interest income was $28.8 million for the nine months ended September 30, 2024 compared to $24.2 million for the nine months ended September 30, 2023. This increase was primarily due to higher pass-through income from SBICs coupled with an increase in net realized and unrealized gains on equity securities.

    Non-Interest Expense

    • For the three months ended September 30, 2024 total non-interest expense was $38.8 million, compared to $36.0 million and $36.9 million for the three months ended June 30, 2024 and September 30, 2023, respectively. The increase of $2.8 million, or 7.77%, from the three months ended June 30, 2024 was primarily a result of an increase in salaries and benefits, card processing and interchange expenses, and other non-interest expenses. The increase in salaries and benefits resulted primarily from an increase in incentive compensation accruals, which are based on various components of the Corporation’s financial performance for the year, coupled with the timing of profit-sharing accruals. The increase in card processing and interchange expenses related primarily to corporate cardholder rewards program accrual, while the increase in other non-interest expenses was primarily driven by the timing of expenditures and business generation related expenses. The increase in non-interest expense compared to the three months ended September 30, 2023 was primarily attributable to higher salaries and benefits driven by costs for personnel added for new offices in expansion markets, an increase in personnel costs related to annual merit increases, increases in health insurance costs, and contractual renewal increases in the Corporation’s investments in technology applications.
    • For the nine months ended September 30, 2024 total non-interest expense was $112.2 million, compared to $106.9 million for the nine months ended September 30, 2023. The increase of $5.3 million, or 4.96%, from the nine months ended September 30, 2023 was primarily a result of an increase in salaries and benefits and technology expenses, partially offset by a decrease in card processing and interchange expenses. The increase in salaries and benefits was driven by an increase in personnel costs related to annual merit increases and growth in the Corporation’s staff and new offices in its expansion markets, while the increase in technology was primarily due to year-over-year investments in technology applications aimed at enhancing both customer online banking capabilities, customer call center communications, and in-branch technology delivery channels. The decrease in card processing and interchange expenses related to the changes made by the Corporation to its cardholder rewards program.

    Income Taxes

    • Income tax expense for the three months ended September 30, 2024 was $3.3 million, representing a 19.31% effective tax rate, compared to $3.0 million, representing an 19.03% effective tax rate, for the three months ended June 30, 2024 and $3.4 million, representing a 19.86% effective tax rate, for the three months ended September 30, 2023. Income tax expense for the nine months ended September 30, 2024 was $9.2 million, representing an 18.92% effective tax rate compared to $10.6 million, representing a 19.47% effective tax rate, for the nine months ended September 30, 2023.

    Asset Quality

    • Total nonperforming assets were approximately $42.0 million, or 0.70% of total assets, as of September 30, 2024, compared to $36.5 million, or 0.62% of total assets, as of June 30, 2024, and $29.3 million, or 0.51% of total assets, as of September 30, 2023, as discussed above.
    • The allowance for credit losses measured as a percentage of total loans was 1.02% as of September 30, 2024 compared to 1.02% as of both June 30, 2024 and September 30, 2023. In addition, the allowance for credit losses as a percentage of nonaccrual loans was 117.03% as of September 30, 2024, compared to 130.88% and 169.34% as of June 30, 2024 and September 30, 2023, respectively. The change in the allowance for credit losses as a percentage of nonaccrual loans was primarily attributable to the levels of nonperforming assets, as discussed above.
    • The provision for credit losses was $2.4 million for the three months ended September 30, 2024, compared to $2.6 million and $1.1 million for the three months ended June 30, 2024 and September 30, 2023, respectively. The $1.3 million increase in the provision expense for the third quarter of 2024 compared to the third quarter of 2023 was primarily a result of higher loan portfolio growth and increased net loan charge-offs in the third quarter of 2024 compared to the third quarter of 2023.
    • For the three months ended September 30, 2024, net loan charge-offs were $1.2 million, or 0.11% (annualized) of average total loans and loans held for sale, compared to $2.8 million, or 0.25% (annualized) of average total loans and loans held for sale, during the three months ended June 30, 2024, and $732 thousand, or 0.06% (annualized) of average total loans and loans held for sale, during the three months ended September 30, 2023.
    • For the nine months ended September 30, 2024, net loan charge-offs were $5.4 million, or 0.16% (annualized) of average total loans and loans held for sale, compared to $2.2 million, or 0.07% (annualized) of average total loans and loans held for sale, during the nine months ended September 30, 2023, with most of the larger year-to-date charge-offs being as previously disclosed occurring in the first and second quarter of 2024.

    Capital

    • As of September 30, 2024, the Corporation’s total shareholders’ equity was $606.4 million, representing an increase of $19.7 million, or 3.35% (13.33% annualized), from June 30, 2024 and an increase of $57.2 million, or 10.41%, from September 30, 2023 primarily due to an increase in the Corporation’s retained earnings (net income, partially offset by the common and preferred stock dividends paid) and a decrease in accumulated other comprehensive loss primarily from the after-tax impact of temporary unrealized valuation changes in the Corporation’s available-for-sale investment portfolio for the past twelve months. The additions to shareholders equity from retained earnings were partially offset by the Corporation’s repurchase of its common stock, as discussed above.
    • Regulatory capital ratios for the Corporation continue to exceed regulatory “well-capitalized” levels as of September 30, 2024, consistent with prior periods.
    • As of September 30, 2024, the Corporation’s ratio of common shareholders’ equity to total assets was 9.12% compared to 8.99% at June 30, 2024 and 8.57% at September 30, 2023. As of September 30, 2024, the Corporation’s ratio of tangible common equity to tangible assets, a non-GAAP measure, was 8.45% compared to 8.30% at June 30, 2024 and 7.86% at September 30, 2023. The increases compared to June 30, 2024 and September 30, 2023 were primarily the result of an increase in retained earnings coupled with a decrease in accumulated other comprehensive loss, as discussed above.1

    About CNB Financial Corporation

    CNB Financial Corporation is a financial holding company with consolidated assets of approximately $6.0 billion. CNB Financial Corporation conducts business primarily through its principal subsidiary, CNB Bank. CNB Bank is a full-service bank engaging in a full range of banking activities and services, including trust and wealth management services, for individual, business, governmental, and institutional customers. CNB Bank operations include a private banking division, two loan production offices, one drive-up office, one mobile office, and 54 full-service offices in Pennsylvania, Ohio, New York, and Virginia. CNB Bank, headquartered in Clearfield, Pennsylvania, with offices in Central and North Central Pennsylvania, serves as the multi-brand parent to various divisions. These divisions include ERIEBANK, based in Erie, Pennsylvania, with offices in Northwest Pennsylvania and Northeast Ohio; FCBank, based in Worthington, Ohio, with offices in Central Ohio; BankOnBuffalo, based in Buffalo, New York, with offices in Western New York; Ridge View Bank, based in Roanoke, Virginia, with offices in the Southwest Virginia region; and Impressia Bank, a division focused on banking opportunities for women, which operates in CNB Bank’s primary market areas. Additional information about CNB Financial Corporation may be found at http://www.CNBBank.bank.

    Forward-Looking Statements

    This press release includes 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 Corporation’s financial condition, liquidity, results of operations, future performance and business. These forward-looking statements are intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those that are not historical facts. Forward-looking statements include statements with respect to beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors (some of which are beyond the Corporation’s control). Forward-looking statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “forecasts,” “intends,” “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future conditional verbs such as “may,” “will,” “should,” “would” and “could.” The Corporation’s actual results may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Such known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from the statements, include, but are not limited to, (i) adverse changes or conditions in capital and financial markets, including actual or potential stresses in the banking industry; (ii) changes in interest rates; the credit risks of lending activities, including our ability to estimate credit losses and the allowance for credit losses, as well as the effects of changes in the level of, and trends in, loan delinquencies and write-offs; (iv) effectiveness of our data security controls in the face of cyber attacks and any reputational risks following a cybersecurity incident; (v) changes in general business, industry or economic conditions or competition; (vi) changes in any applicable law, rule, regulation, policy, guideline or practice governing or affecting financial holding companies and their subsidiaries or with respect to tax or accounting principles or otherwise; (vii) higher than expected costs or other difficulties related to integration of combined or merged businesses; (viii) the effects of business combinations and other acquisition transactions, including the inability to realize our loan and investment portfolios; (ix) changes in the quality or composition of our loan and investment portfolios; (x) adequacy of loan loss reserves; (xi) increased competition; (xii) loss of certain key officers; (xiii) deposit attrition; (xiv) rapidly changing technology; (xv) unanticipated regulatory or judicial proceedings and liabilities and other costs; (xvi) changes in the cost of funds, demand for loan products or demand for financial services; and (xvii) other economic, competitive, governmental or technological factors affecting our operations, markets, products, services and prices. Such developments could have an adverse impact on the Corporation’s financial position and results of operations. For more information about factors that could cause actual results to differ from those discussed in the forward-looking statements, please refer to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of and the forward-looking statement disclaimers in the Corporation’s annual and quarterly reports filed with the Securities and Exchange Commission.

    The forward-looking statements are based upon management’s beliefs and assumptions and are made as of the date of this press release. Factors or events that could cause the Corporation’s actual results to differ may emerge from time to time, and it is not possible for the Corporation to predict all of them. The Corporation undertakes no obligation to publicly update or revise any forward-looking statements included in this press release or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise, except to the extent required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur and you should not put undue reliance on any forward-looking statements.

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

      Three Months Ended   Nine Months Ended
      September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023    		   September 30,
    2024    		   September 30,
    2023
    Income Statement                  
    Interest and fees on loans $ 75,725     $ 72,142     $ 70,980     $ 219,380     $ 200,206  
    Interest and dividends on securities and cash and cash equivalents   7,510       8,510       4,536       22,412       14,279  
    Interest expense   (35,749 )     (34,935 )     (28,280 )     (103,367 )     (72,353 )
    Net interest income   47,486       45,717       47,236       138,425       142,135  
    Provision for credit losses   2,381       2,591       1,056       6,292       4,751  
    Net interest income after provision for credit losses   45,105       43,126       46,180       132,133       137,384  
    Non-interest income                  
    Wealth and asset management fees   2,060       2,007       1,833       5,869       5,567  
    Service charges on deposit accounts   1,790       1,794       1,861       5,278       5,569  
    Other service charges and fees   796       712       567       2,203       2,283  
    Net realized gains (losses) on available-for-sale securities   (9 )     —       —       (9 )     52  
    Net realized and unrealized gains (losses) on equity securities   656       (80 )     (400 )     767       (930 )
    Mortgage banking   197       187       172       580       516  
    Bank owned life insurance   775       784       754       2,326       2,211  
    Card processing and interchange income   2,241       2,187       2,098       6,444       6,219  
    Other non-interest income   2,467       1,274       978       5,335       2,711  
    Total non-interest income   10,973       8,865       7,863       28,793       24,198  
    Non-interest expenses                  
    Salaries and benefits   19,572       17,676       17,758       56,035       51,862  
    Net occupancy expense of premises   3,701       3,580       3,596       10,921       10,790  
    Technology expense   5,417       5,573       5,232       16,062       14,677  
    Advertising expense   623       553       840       1,861       2,085  
    State and local taxes   1,256       1,237       1,028       3,636       3,108  
    Legal, professional, and examination fees   940       1,119       1,320       3,231       3,167  
    FDIC insurance premiums   846       1,018       1,027       2,854       2,901  
    Card processing and interchange expenses   1,193       878       1,207       3,250       4,269  
    Other non-interest expense   5,236       4,355       4,906       14,347       14,033  
    Total non-interest expenses   38,784       35,989       36,914       112,197       106,892  
    Income before income taxes   17,294       16,002       17,129       48,729       54,690  
    Income tax expense   3,340       3,045       3,402       9,218       10,647  
    Net income   13,954       12,957       13,727       39,511       44,043  
    Preferred stock dividends   1,076       1,075       1,076       3,226       3,226  
    Net income available to common shareholders $ 12,878     $ 11,882     $ 12,651     $ 36,285     $ 40,817  
                       
    Ending shares outstanding   20,994,730       20,998,117       20,895,634       20,994,730       20,895,634  
    Average diluted common shares outstanding   20,911,862       20,893,396       20,899,744       20,895,538       20,979,032  
    Diluted earnings per common share $ 0.61     $ 0.56     $ 0.60     $ 1.72     $ 1.94  
    Cash dividends per common share $ 0.180     $ 0.175     $ 0.175     $ 0.530     $ 0.525  
    Dividend payout ratio   30 %     31 %     29 %     31 %     27 %

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

      Three Months Ended   Nine Months Ended
      September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023    		   September 30,
    2024    		   September 30,
    2023
    Average Balances                  
    Total loans and loans held for sale $ 4,536,702     $ 4,441,633     $ 4,485,017     $ 4,469,321     $ 4,373,648  
    Investment securities   722,577       734,087       749,352       729,273       771,457  
    Total earning assets   5,503,832       5,465,645       5,273,758       5,440,145       5,194,485  
    Total assets   5,907,115       5,854,978       5,647,491       5,831,002       5,561,649  
    Noninterest-bearing deposits   795,771       761,270       792,193       764,770       805,513  
    Interest-bearing deposits   4,319,606       4,321,678       4,109,360       4,290,247       3,976,820  
    Shareholders’ equity   597,984       583,221       555,464       586,017       548,034  
    Tangible common shareholders’ equity (non-GAAP) (1)   496,091       481,309       453,493       484,105       446,048  
                       
    Average Yields (annualized)                  
    Total loans and loans held for sale   6.66 %     6.55 %     6.30 %     6.57 %     6.14 %
    Investment securities   2.19 %     2.14 %     1.96 %     2.11 %     1.96 %
    Total earning assets   5.98 %     5.89 %     5.63 %     5.89 %     5.48 %
    Interest-bearing deposits   3.19 %     3.15 %     2.62 %     3.11 %     2.27 %
    Interest-bearing liabilities   3.21 %     3.17 %     2.66 %     3.14 %     2.34 %
                       
    Performance Ratios (annualized)                  
    Return on average assets   0.94 %     0.89 %     0.96 %     0.91 %     1.06 %
    Return on average equity   9.28 %     8.94 %     9.80 %     9.01 %     10.74 %
    Return on average tangible common equity (non-GAAP) (1)   10.33 %     9.93 %     11.07 %     10.01 %     12.23 %
    Net interest margin, fully tax equivalent basis (non-GAAP) (1)   3.42 %     3.34 %     3.53 %     3.38 %     3.64 %
    Efficiency Ratio, fully tax equivalent basis (non-GAAP) (1)   65.58 %     65.20 %     66.26 %     66.34 %     63.60 %
                       
    Net Loan Charge-Offs                  
    CNB Bank net loan charge-offs $ 837     $ 2,348     $ 381     $ 4,063     $ 955  
    Holiday Financial net loan charge-offs   383       456       351       1,305       1,252  
    Total Corporation net loan charge-offs $ 1,220     $ 2,804     $ 732     $ 5,368     $ 2,207  
    Annualized net loan charge-offs / average total loans and loans held for sale   0.11 %     0.25 %     0.06 %     0.16 %     0.07 %

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

      September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023
    Ending Balance Sheet          
    Cash and due from banks $ 75,214     $ 56,031     $ 61,529  
    Interest-bearing deposits with Federal Reserve   281,972       271,943       117,632  
    Interest-bearing deposits with other financial institutions   3,723       3,171       3,424  
    Total cash and cash equivalents   360,909       331,145       182,585  
    Debt securities available-for-sale, at fair value   378,965       359,900       335,122  
    Debt securities held-to-maturity, at amortized cost   328,152       354,569       391,301  
    Equity securities   10,389       9,654       8,948  
    Loans held for sale   768       642       464  
    Loans receivable          
    Syndicated loans   69,470       53,938       123,090  
    Loans   4,522,438       4,425,754       4,369,084  
    Total loans receivable   4,591,908       4,479,692       4,492,174  
    Less: allowance for credit losses   (46,644 )     (45,532 )     (45,832 )
    Net loans receivable   4,545,264       4,434,160       4,446,342  
    Goodwill and other intangibles   43,874       43,874       43,874  
    Core deposit intangible   223       241       299  
    Other assets   346,300       352,386       322,973  
    Total Assets $ 6,014,844     $ 5,886,571     $ 5,731,908  
               
    Noninterest-bearing demand deposits $ 841,292     $ 762,918     $ 782,996  
    Interest-bearing demand deposits   681,056       693,074       781,309  
    Savings   3,040,769       3,140,505       2,883,736  
    Certificates of deposit   653,832       514,348       554,740  
    Total deposits   5,216,949       5,110,845       5,002,781  
    Subordinated debentures   20,620       20,620       20,620  
    Subordinated notes, net of issuance costs   84,495       84,419       84,191  
    Other liabilities   86,417       83,987       75,104  
    Total liabilities   5,408,481       5,299,871       5,182,696  
    Common stock   —       —       —  
    Preferred stock   57,785       57,785       57,785  
    Additional paid in capital   219,304       218,756       220,100  
    Retained earnings   371,086       361,987       336,690  
    Treasury stock   (4,516 )     (4,438 )     (6,862 )
    Accumulated other comprehensive loss   (37,296 )     (47,390 )     (58,501 )
    Total shareholders’ equity   606,363       586,700       549,212  
    Total liabilities and shareholders’ equity $ 6,014,844     $ 5,886,571     $ 5,731,908  
               
    Book value per common share $ 26.13     $ 25.19     $ 23.52  
    Tangible book value per common share (non-GAAP) (1) $ 24.03     $ 23.09     $ 21.40  

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

      September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023
    Capital Ratios          
    Tangible common equity / tangible assets (non-GAAP) (1)   8.45 %     8.30 %     7.86 %
    Tier 1 leverage ratio (2)   10.59 %     10.56 %     10.50 %
    Common equity tier 1 ratio (2)   11.64 %     11.71 %     11.21 %
    Tier 1 risk-based ratio (2)   13.30 %     13.41 %     12.92 %
    Total risk-based ratio (2)   16.06 %     16.20 %     15.68 %
               
    Asset Quality Detail          
    Nonaccrual loans $ 39,855     $ 34,788     $ 27,065  
    Loans 90+ days past due and accruing   666       112       231  
    Total nonperforming loans   40,521       34,900       27,296  
    Other real estate owned   1,514       1,641       2,039  
    Total nonperforming assets $ 42,035     $ 36,541     $ 29,335  
               
    Asset Quality Ratios          
    Nonperforming assets / Total loans + OREO   0.92 %     0.82 %     0.65 %
    Nonperforming assets / Total assets   0.70 %     0.62 %     0.51 %
    Ratio of allowance for credit losses on loans to nonaccrual loans   117.03 %     130.88 %     169.34 %
    Allowance for credit losses / Total loans   1.02 %     1.02 %     1.02 %
               
               
    Consolidated Financial Data Notes:          
    (1) Management uses non-GAAP financial information in its analysis of the Corporation’s performance. Management believes that these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented. The Corporation’s management believes that investors may use these non-GAAP measures to analyze the Corporation’s financial performance without the impact of unusual items or events that may obscure trends in the Corporation’s underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in these measures and that different companies might calculate these measures differently. A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).
    (2) Capital ratios as of September 30, 2024 are estimated pending final regulatory filings.

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

      Average Balances, Income and Interest Rates on a Taxable Equivalent Basis
      Three Months Ended,
      September 30, 2024   June 30, 2024   September 30, 2023
      Average
    Balance    		   Annual
    Rate    		   Interest
    Inc./Exp.    		   Average
    Balance    		   Annual
    Rate    		   Interest
    Inc./Exp.    		   Average
    Balance    		   Annual
    Rate    		   Interest
    Inc./Exp.
    ASSETS:                                  
    Securities:                                  
    Taxable (1) (4) $ 690,098     2.14 %   $ 3,980   $ 702,036     2.09 %   $ 3,941   $ 711,299     1.89 %   $ 3,674
    Tax-exempt (1) (2) (4)   25,368     2.57       178     25,088     2.59       178     29,455     2.55       204
    Equity securities (1) (2)   7,111     5.71       102     6,963     5.72       99     8,598     5.58       121
    Total securities (4)   722,577     2.19       4,260     734,087     2.14       4,218     749,352     1.96       3,999
    Loans receivable:                                  
    Commercial (2) (3)   1,457,192     7.02       25,708     1,416,476     6.85       24,133     1,516,942     6.72       25,693
    Mortgage and loans held for sale (2) (3)   2,947,787     6.25       46,278     2,897,473     6.15       44,331     2,834,576     5.83       41,618
    Consumer (3)   131,723     11.93       3,950     127,684     12.17       3,863     133,499     11.51       3,874
    Total loans receivable (3)   4,536,702     6.66       75,936     4,441,633     6.55       72,327     4,485,017     6.30       71,185
    Interest-bearing deposits with the Federal Reserve and other financial institutions   244,553     5.33       3,279     289,925     5.99       4,321     39,389     5.78       574
    Total earning assets   5,503,832     5.98     $ 83,475     5,465,645     5.89     $ 80,866     5,273,758     5.63     $ 75,758
    Noninterest-bearing assets:                                  
    Cash and due from banks   58,472               53,710               55,502          
    Premises and equipment   118,404               112,386               109,854          
    Other assets   272,377               268,930               254,106          
    Allowance for credit losses   (45,970 )             (45,693 )             (45,729 )        
    Total non interest-bearing assets   403,283               389,333               373,733          
    TOTAL ASSETS $ 5,907,115             $ 5,854,978             $ 5,647,491          
    LIABILITIES AND SHAREHOLDERS’ EQUITY:                                  
    Demand—interest-bearing $ 682,690     0.86 %   $ 1,477   $ 713,431     0.76 %   $ 1,342   $ 813,264     0.52 %   $ 1,061
    Savings   3,076,351     3.55       27,461     3,097,598     3.57       27,464     2,788,499     3.13       22,004
    Time   560,565     4.03       5,684     510,649     3.93       4,988     507,597     3.16       4,048
    Total interest-bearing deposits   4,319,606     3.19       34,622     4,321,678     3.15       33,794     4,109,360     2.62       27,113
    Short-term borrowings   —     0.00       —     —     0.00       —     6,101     5.66       87
    Finance lease liabilities   236     5.06       3     259     4.66       3     328     4.84       4
    Subordinated notes and debentures   105,077     4.26       1,124     105,001     4.36       1,138     104,773     4.07       1,076
    Total interest-bearing liabilities   4,424,919     3.21     $ 35,749     4,426,938     3.17     $ 34,935     4,220,562     2.66     $ 28,280
    Demand—noninterest-bearing   795,771               761,270               792,193          
    Other liabilities   88,441               83,549               79,272          
    Total Liabilities   5,309,131               5,271,757               5,092,027          
    Shareholders’ equity   597,984               583,221               555,464          
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 5,907,115             $ 5,854,978             $ 5,647,491          
    Interest income/Earning assets     5.98 %   $ 83,475       5.89 %   $ 80,866       5.63 %   $ 75,758
    Interest expense/Interest-bearing liabilities     3.21       35,749       3.17       34,935       2.66       28,280
    Net interest spread     2.77 %   $ 47,726       2.72 %   $ 45,931       2.97 %   $ 47,478
    Interest income/Earning assets     5.98 %     83,475       5.89 %     80,866       5.63 %     75,758
    Interest expense/Earning assets     2.56       35,749       2.55       34,935       2.10       28,280
    Net interest margin (fully tax-equivalent)     3.42 %   $ 47,726       3.34 %   $ 45,931       3.53 %   $ 47,478
     
    _____________________________________________
    (1)     Includes unamortized discounts and premiums.
    (2) Average yields are stated on a fully taxable equivalent basis (calculated using statutory rates of 21%) resulting from tax-free municipal securities in the investment portfolio and tax-free municipal loans in the commercial loan portfolio. The taxable equivalent adjustment to net interest income for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023 was $240 thousand, $214 thousand and $242 thousand, respectively.
    (3) Average loans receivable outstanding includes the average balance outstanding of all nonaccrual loans. Loans receivable consist of the average of total loans receivable less average unearned income. In addition, loans receivable interest income consists of loans receivable fees, including PPP deferred processing fees.
    (4) Average balance is computed using the fair value of AFS securities and amortized cost of HTM securities. Average yield has been computed using amortized cost average balance for AFS and HTM securities. The adjustment to the average balance for securities in the calculation of average yield for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023 was $(51.1) million, $(59.2) million and $(61.1) million, respectively.

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

      Average Balances, Income and Interest Rates on a Taxable Equivalent Basis
      Nine Months Ended,
      September 30, 2024   September 30, 2023
      Average
    Balance    		   Annual
    Rate    		   Interest
    Inc./Exp.    		   Average
    Balance    		   Annual
    Rate    		   Interest
    Inc./Exp.
    ASSETS:                      
    Securities:                      
    Taxable (1) (4) $ 696,259     2.06 %   $ 11,572   $ 729,787     1.89 %   $ 11,140
    Tax-exempt (1) (2) (4)   26,063     2.58       547     31,025     2.60       646
    Equity securities (1) (2)   6,951     5.69       296     10,645     4.97       396
    Total securities (4)   729,273     2.11       12,415     771,457     1.96       12,182
    Loans receivable:                      
    Commercial (2) (3)   1,434,545     6.92       74,360     1,512,575     6.49       73,423
    Mortgage and loans held for sale (2) (3)   2,905,301     6.16       134,012     2,733,423     5.70       116,439
    Consumer (3)   129,475     11.96       11,591     127,650     11.50       10,978
    Total loans receivable (3)   4,469,321     6.57       219,963     4,373,648     6.14       200,840
    Interest-bearing deposits with the Federal Reserve and other financial institutions   241,551     5.58       10,085     49,380     6.01       2,221
    Total earning assets   5,440,145     5.89     $ 242,463     5,194,485     5.48     $ 215,243
    Noninterest-bearing assets:                      
    Cash and due from banks   55,243               54,494          
    Premises and equipment   113,629               107,016          
    Other assets   267,797               250,210          
    Allowance for credit losses   (45,812 )             (44,556 )        
    Total non interest-bearing assets   390,857               367,164          
    TOTAL ASSETS $ 5,831,002             $ 5,561,649          
    LIABILITIES AND SHAREHOLDERS’ EQUITY:                      
    Demand—interest-bearing $ 711,911     0.75 %   $ 4,014   $ 878,955     0.54 %   $ 3,545
    Savings   3,046,518     3.53       80,536     2,581,604     2.75       53,070
    Time   531,818     3.87       15,414     516,261     2.79       10,775
    Total interest-bearing deposits   4,290,247     3.11       99,964     3,976,820     2.27       67,390
    Short-term borrowings   —     0.00       —     47,094     5.07       1,787
    Finance lease liabilities   259     4.64       9     350     4.58       12
    Subordinated notes and debentures   105,001     4.32       3,394     104,698     4.04       3,164
    Total interest-bearing liabilities   4,395,507     3.14     $ 103,367     4,128,962     2.34     $ 72,353
    Demand—noninterest-bearing   764,770               805,513          
    Other liabilities   84,708               79,140          
    Total Liabilities   5,244,985               5,013,615          
    Shareholders’ equity   586,017               548,034          
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 5,831,002             $ 5,561,649          
    Interest income/Earning assets     5.89 %   $ 242,463       5.48 %   $ 215,243
    Interest expense/Interest-bearing liabilities     3.14       103,367       2.34       72,353
    Net interest spread     2.75 %   $ 139,096       3.14 %   $ 142,890
    Interest income/Earning assets     5.89 %     242,463       5.48 %     215,243
    Interest expense/Earning assets     2.51       103,367       1.84       72,353
    Net interest margin (fully tax-equivalent)     3.38 %   $ 139,096       3.64 %   $ 142,890
     
    _____________________________________________
    (1)     Includes unamortized discounts and premiums.
    (2) Average yields are stated on a fully taxable equivalent basis (calculated using statutory rates of 21%) resulting from tax-free municipal securities in the investment portfolio and tax-free municipal loans in the commercial loan portfolio. The taxable equivalent adjustment to net interest income for the nine months ended September 30, 2024 and 2023, was $671 thousand and $755 thousand, respectively.
    (3) Average loans receivable outstanding includes the average balance outstanding of all nonaccrual loans. Loans receivable consist of the average of total loans receivable less average unearned income. In addition, loans receivable interest income consists of loans receivable fees, including PPP deferred processing fees.
    (4) Average balance is computed using the fair value of AFS securities and amortized cost of HTM securities. Average yield has been computed using amortized cost average balance for AFS and HTM securities. The adjustment to the average balance for securities in the calculation of average yield for the nine months ended September 30, 2024 and 2023 was $(55.1) million and $(58.6) million, respectively.

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

    Reconciliation of Non-GAAP Financial Measures

      September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023
    Calculation of tangible book value per common share and tangible common
    equity / tangible assets (non-GAAP):    		          
    Shareholders’ equity $ 606,363     $ 586,700     $ 549,212  
    Less: preferred equity   57,785       57,785       57,785  
    Common shareholders’ equity   548,578       528,915       491,427  
    Less: goodwill and other intangibles   43,874       43,874       43,874  
    Less: core deposit intangible   223       241       299  
    Tangible common equity (non-GAAP) $ 504,481     $ 484,800     $ 447,254  
               
    Total assets $ 6,014,844     $ 5,886,571     $ 5,731,908  
    Less: goodwill and other intangibles   43,874       43,874       43,874  
    Less: core deposit intangible   223       241       299  
    Tangible assets (non-GAAP) $ 5,970,747     $ 5,842,456     $ 5,687,735  
               
    Ending shares outstanding   20,994,730       20,998,117       20,895,634  
               
    Book value per common share (GAAP) $ 26.13     $ 25.19     $ 23.52  
    Tangible book value per common share (non-GAAP) $ 24.03     $ 23.09     $ 21.40  
               
    Common shareholders’ equity / Total assets (GAAP)   9.12 %     8.99 %     8.57 %
    Tangible common equity / Tangible assets (non-GAAP)   8.45 %     8.30 %     7.86 %
               

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

    Reconciliation of Non-GAAP Financial Measures

      Three Months Ended   Nine Months Ended
      September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023    		   September 30,
    2024    		   September 30,
    2023
    Calculation of net interest margin:                  
    Interest income $ 83,235     $ 80,652     $ 75,516     $ 241,792     $ 214,488  
    Interest expense   35,749       34,935       28,280       103,367       72,353  
    Net interest income $ 47,486     $ 45,717     $ 47,236     $ 138,425     $ 142,135  
                       
    Average total earning assets $ 5,503,832     $ 5,465,645     $ 5,273,758     $ 5,440,145     $ 5,194,485  
                       
    Net interest margin (GAAP) (annualized)   3.43 %     3.36 %     3.55 %     3.40 %     3.66 %
                       
    Calculation of net interest margin (fully tax equivalent basis) (non-GAAP):                  
    Interest income $ 83,235     $ 80,652     $ 75,516     $ 241,792     $ 214,488  
    Tax equivalent adjustment (non-GAAP)   240       214       242       671       755  
    Adjusted interest income (fully tax equivalent basis) (non-GAAP)   83,475       80,866       75,758       242,463       215,243  
    Interest expense   35,749       34,935       28,280       103,367       72,353  
    Net interest income (fully tax equivalent basis) (non-GAAP) $ 47,726     $ 45,931     $ 47,478     $ 139,096     $ 142,890  
                       
    Average total earning assets $ 5,503,832     $ 5,465,645     $ 5,273,758     $ 5,440,145     $ 5,194,485  
    Less: average mark to market adjustment on investments (non-GAAP)   (51,075 )     (59,225 )     (61,103 )     (55,134 )     (58,577 )
    Adjusted average total earning assets, net of mark to market (non-GAAP) $ 5,554,907     $ 5,524,870     $ 5,334,861     $ 5,495,279     $ 5,253,062  
                       
    Net interest margin, fully tax equivalent basis (non-GAAP) (annualized)   3.42 %     3.34 %     3.53 %     3.38 %     3.64 %

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

    Reconciliation of Non-GAAP Financial Measures

      Three Months Ended   Nine Months Ended
      September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023    		   September 30,
    2024    		   September 30,
    2023
    Calculation of PPNR (non-GAAP): (1)                  
    Net interest income $ 47,486     $ 45,717     $ 47,236     $ 138,425     $ 142,135  
    Add: Non-interest income   10,973       8,865       7,863       28,793       24,198  
    Less: Non-interest expense   38,784       35,989       36,914       112,197       106,892  
    PPNR (non-GAAP) $ 19,675     $ 18,593     $ 18,185     $ 55,021     $ 59,441  
                       
    (1) Management believes that this is an important metric as it illustrates the underlying performance of the Corporation, it enables investors and others to assess the Corporation’s ability to generate capital to cover credit losses through the credit cycle and provides consistent reporting with a key metric used by bank regulatory agencies.
      Three Months Ended   Nine Months Ended
      September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023    		   September 30,
    2024    		   September 30,
    2023
    Calculation of efficiency ratio:                  
    Non-interest expense $ 38,784     $ 35,989     $ 36,914     $ 112,197     $ 106,892  
                       
    Non-interest income $ 10,973     $ 8,865     $ 7,863     $ 28,793     $ 24,198  
    Net interest income   47,486       45,717       47,236       138,425       142,135  
    Total revenue $ 58,459     $ 54,582     $ 55,099     $ 167,218     $ 166,333  
    Efficiency ratio   66.34 %     65.94 %     67.00 %     67.10 %     64.26 %
                       
    Calculation of efficiency ratio (fully tax equivalent basis) (non-GAAP):                  
    Non-interest expense $ 38,784     $ 35,989     $ 36,914     $ 112,197     $ 106,892  
    Less: core deposit intangible amortization   18       19       20       57       65  
    Adjusted non-interest expense (non-GAAP) $ 38,766     $ 35,970     $ 36,894     $ 112,140     $ 106,827  
                       
    Non-interest income $ 10,973     $ 8,865     $ 7,863     $ 28,793     $ 24,198  
                       
    Net interest income $ 47,486     $ 45,717     $ 47,236     $ 138,425     $ 142,135  
    Less: tax exempt investment and loan income, net of TEFRA (non-GAAP)   1,473       1,318       1,376       4,127       4,043  
    Add: tax exempt investment and loan income (fully tax equivalent basis) (non-GAAP)   2,123       1,902       1,955       5,957       5,668  
    Adjusted net interest income (fully tax equivalent basis) (non-GAAP)   48,136       46,301       47,815       140,255       143,760  
    Adjusted net revenue (fully tax equivalent basis) (non-GAAP) $ 59,109     $ 55,166     $ 55,678     $ 169,048     $ 167,958  
                       
    Efficiency ratio (fully tax equivalent basis) (non-GAAP)   65.58 %     65.20 %     66.26 %     66.34 %     63.60 %

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

    Reconciliation of Non-GAAP Financial Measures

      Three Months Ended   Nine Months Ended
      September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023    		   September 30,
    2024    		   September 30,
    2023
    Calculation of return on average tangible common equity (non-GAAP):                  
    Net income $ 13,954     $ 12,957     $ 13,727     $ 39,511     $ 44,043  
    Less: preferred stock dividends   1,076       1,075       1,076       3,226       3,226  
    Net income available to common shareholders $ 12,878     $ 11,882     $ 12,651     $ 36,285     $ 40,817  
                       
    Average shareholders’ equity $ 597,984     $ 583,221     $ 555,464     $ 586,017     $ 548,034  
    Less: average goodwill & intangibles   44,108       44,127       44,186       44,127       44,201  
    Less: average preferred equity   57,785       57,785       57,785       57,785       57,785  
    Tangible common shareholders’ equity (non-GAAP) $ 496,091     $ 481,309     $ 453,493     $ 484,105     $ 446,048  
                       
    Return on average equity (GAAP) (annualized)   9.28 %     8.94 %     9.80 %     9.01 %     10.74 %
    Return on average common equity (GAAP) (annualized)   9.48 %     9.10 %     10.09 %     9.18 %     11.13 %
    Return on average tangible common equity (non-GAAP) (annualized)   10.33 %     9.93 %     11.07 %     10.01 %     12.23 %

    The MIL Network –

  • MIL-OSI: Rich Steinmeier Named Chief Executive Officer of LPL Financial; Elected to Board of Directors

    Source: GlobeNewswire (MIL-OSI)

    SAN DIEGO, Oct. 21, 2024 (GLOBE NEWSWIRE) — LPL Financial Holdings Inc. (Nasdaq: LPLA) today announced that the Board of Directors has confirmed Rich Steinmeier as Chief Executive Officer. Steinmeier, who had been interim CEO since October 1, was also elected a member of the Board.  

    In addition, the Board named Matt Audette as President and Chief Financial Officer, expanding his previous role as Chief Financial Officer and Head of Business Operations. The appointments are effective immediately.  

    “LPL is fortunate to benefit from an exceptionally strong team with leaders who have a clear vision for the continued success of the business,” said Jim Putnam, chair of the LPL Financial Board of Directors.  

    “Rich’s appointment to CEO, which reflects the Board’s succession plan, is a testament to the valuable contributions he has made during his tenure with LPL and the trusted relationships he has established with clients and employees,” added Putnam, noting that LPL’s organic growth rate has more than doubled since Rich joined the company in 2018 to lead its growth initiatives. “With Rich as CEO and Matt in his expanded role as President, the Board is confident that LPL’s trajectory of high performance and its steadfast commitment to serving clients will continue to build stakeholder value.” 

    “The success of LPL is shaped by the clear-eyed view from our talented team that all Americans deserve access to sound financial advice. It is an incredible honor to lead the company that delivers on this purpose,” said Steinmeier. “I’m fortunate to collaborate with Matt and our leadership team to elevate our service to clients, provide rewarding careers for our people, and to build on our momentum as one of the fastest growing companies in wealth management.” 

    “We’re operating from a position of strength with a leadership team that is sharply focused on supporting our clients’ success through innovative solutions,” said Audette. “I look forward to continuing my partnership with Rich as we expand on our leading position in the advisor-centered marketplace and enhance value for all the stakeholders we serve.” 

    About Rich Steinmeier  

    Steinmeier, 50, was appointed LPL Financial’s interim CEO on October 1, 2024. He previously served as Managing Director, Chief Growth Officer and, prior to that, as Divisional President, Business Strategy and Growth. As Chief Growth Officer, he led teams responsible for shaping corporate and business line strategy, recruiting new financial advisors and institutions, leading the field management of LPL employee advisors, creating and deploying capital solutions to LPL clients, and leading the marketing and communications functions. 

    Before joining LPL in 2018, Steinmeier held senior leadership roles at UBS Financial and Merrill Lynch as well as working as a consultant for McKinsey & Company. Steinmeier earned a B.S. in economics from the Wharton School at the University of Pennsylvania and an M.B.A. from Stanford University. 

    About Matt Audette 

    Audette, 50, joined LPL Financial as Chief Financial Officer in 2015 and assumed responsibility for the firm’s business operations in 2023. Audette is responsible for the firm’s financial, risk, compliance and client operations functions. In addition, he oversees the teams responsible for delivering increased operational speed and transparency, along with continued strong risk management, to advisors and institutions. Over Audette’s tenure, he has contributed to the firm’s continued growth and profitability by leading corporate acquisitions, debt transactions, the client deposit portfolio, expense management, and capital allocation. 

    Prior to joining LPL, Audette served as Executive Vice President and Chief Financial Officer of E*TRADE Financial Corporation. Audette earned a Bachelor of Science in accounting from Virginia Tech. 

    About LPL Financial  

    LPL Financial Holdings Inc. (Nasdaq: LPLA) was founded on the principle that the firm should work for advisors and institutions, and not the other way around. Today, LPL is a leader in the markets we serve, serving more than 23,000 financial advisors, including advisors at approximately 1,000 institutions and at approximately 580 registered investment advisor firms nationwide. We are steadfast in our commitment to the advisor-mediated model and the belief that Americans deserve access to personalized guidance from a financial professional. At LPL, independence means that advisors and institution leaders have the freedom they deserve to choose the business model, services and technology resources that allow them to run a thriving business. They have the flexibility to do business their way. And they have the freedom to manage their client relationships, because they know their clients best. Simply put, we take care of our advisors and institutions, so they can take care of their clients. 

    Securities and Advisory services offered through LPL Financial LLC (“LPL Financial”), a registered investment advisor. Member FINRA/SIPC. LPL Financial and its affiliated companies provide financial services only from the United States. 

    Throughout this communication, the terms “financial advisors” and “advisors” are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial. We routinely disclose information that may be important to shareholders in the “Investor Relations” or “Press Releases” section of our website. 

    Media Contact 
    Jen Roche 
    jen.roche@lplfinancial.com 

    The MIL Network –

  • MIL-OSI USA: Visit a Disaster Recovery Center in Virginia

    Source: US Federal Emergency Management Agency

    Headline: Visit a Disaster Recovery Center in Virginia

    Visit a Disaster Recovery Center in Virginia

    BRISTOL, Va.—If you were affected by Tropical Storm Helene, visit a Disaster Recovery Center (DRC) to apply for assistance and learn about resources from FEMA, the Small Business Administration, the commonwealth of Virginia, and other organizations to aid you in your recovery.   

    What is a DRC?

    A DRC, or Disaster Recovery Center, is an accessible facility that you can visit in person to learn more about FEMA and other agencies providing disaster assistance in Virginia. Residents, property owners, business owners and farmers can go to a DRC to apply for assistance and obtain resources. 

    This video provides an overview about what you can expect when you visit a DRC: Disaster Recovery Center (DRC): Your Resource After a Hurricane (youtube.com). 

    What can I get help with? 

    At a Disaster Recovery Center you can get one-on-one help with staff from the organizations present. FEMA staff at DRCs are happy to spend time with you to explain the types of assistance offered and help you apply. 

    The specialists at a DRC can help you: 

    • Apply for disaster grants from FEMA. 
    • Submit additional documents for your application.
    • Understand and respond to a letter from FEMA. 
    • Apply for low-interest disaster loans for individuals and businesses with the Small Business Administration (SBA). 
    • Find resources about agricultural recovery and assistance for farmers.
    • Learn how to replace damaged documents like proof of address or birth certificates.
    • Get connected to commonwealth of Virginia resources.
    • Obtain information on the National Flood Insurance Program (NFIP) and how to mitigate against future losses.
    • Find other sources of assistance, like nonprofit help.

    Who is at a DRC? 

    Every Disaster Recovery Center is a little different, based on the local community’s needs. 

    All DRCs will have FEMA staff, trained in the Individual Assistance program, available to answer questions about the FEMA disaster assistance application process. FEMA hazard mitigation staff are also available to speak to survivors who want to learn about ways to make their properties safer from floods and build back better. All DRCs have staff from the Small Business Administration. 

    DRCs will have representatives from the commonwealth of Virginia, though the specific agencies will differ from location to location. If you need help from a specific agency, you can still come to a DRC where staff can share information and get you in touch with the agency you need. 

    DRCs may have representatives from nonprofit organizations as well as other local agencies. 

    What should I bring?

    You do not need to bring anything to visit a DRC – just yourself. However, depending on the help you are looking for, it can be helpful to prepare ahead of time. 

    Applying for Assistance: If you are starting or resuming an application for assistance, you should bring the following with you: 

    • Insurance information, if available 
    • The address and zip code of your disaster-damaged home
    • Condition of your damaged home
    • Social Security number 
    • Phone number, address, and email (if you have one) where you can be contacted
    • Bank account information, if you would like to set up direct deposit 

    For examples of these documents and a more detailed application checklist, see the application checklist on DisasterAssistance.gov.

    If you have questions about a FEMA determination letter it will be helpful if you bring the letter and any documents requested in the letter. If you have a FEMA ID number, write that down and bring it with you. If you don’t have it, staff can ask you other questions to access your application information.

    What should I expect? 

    DRCs are accessible to all, including survivors who are Deaf and Hard of Hearing.

    Every DRC is laid out differently to make best use of the space. You can watch a quick video that walks through a DRC in New York from 2021.  

    DRCs will always have signs out front, indicating where to enter.

    Once you walk in the front doors, you will be greeted, and you will sign in. All DRCs have security guards present at the entrance. You may have to wait for a few moments for the specialist you need to be available. If so, you can sit down in designated chairs or a waiting area. Most of the time, you will not need to wait and will be helped immediately. 

    As soon as a specialist is available, they will work with you personally to help answer your questions, help you register for assistance or understand your documents, connect you with available resources, and more.

    Where do I find a DRC near me? 

    As of Oct. 21, there are six DRCs open across southwest Virginia. New DRCs will continue to open over the coming weeks.  To find a DRC near you, including addresses and hours, go to FEMA.gov/drc or text DRC and a ZIP code to 43362.

    FEMA has set up a rumor response webpage to clarify our role in the Helene response. Visit Hurricane Helene: Rumor Response | FEMA.gov. 

    For more information on Virginia’s disaster recovery, visit vaemergency.gov,  the Virginia Department of Emergency Management Facebook page , fema.gov/disaster/4831 and facebook.com/FEMA.  

    ###

    FEMA’s mission is helping people before, during, and after disasters. FEMA Region 3’s jurisdiction includes Delaware, the District of Columbia, Maryland, Pennsylvania, Virginia and West Virginia. Follow us on X at x.com/FEMAregion3 and on LinkedIn at linkedin.com/company/femaregion3.

     

    To apply for FEMA assistance, please call the FEMA Helpline at 1-800-621-3362, visit https://www.disasterassistance.gov/, or download and apply on the FEMA App. If you use a relay service, such as video relay service (VRS), captioned telephone service or others, give FEMA the number for that service. Multilingual operators are available (press 2 for Spanish and 3 for other languages). Disaster recovery assistance is available without regard to race, color, religion, nationality, sex, age, disability, English proficiency, or economic status.

    connor.dacey

    MIL OSI USA News –

  • MIL-OSI USA: State of Alaska and FEMA Announce FEMA Assistance Now Available for Flooding Survivors

    Source: US Federal Emergency Management Agency

    Headline: State of Alaska and FEMA Announce FEMA Assistance Now Available for Flooding Survivors

    State of Alaska and FEMA Announce FEMA Assistance Now Available for Flooding Survivors

    ANCHORAGE, Alaska – FEMA Individual Assistance is now available for residents in the City and Borough of Juneau affected by the flooding that occurred August 5-6, 2024. Assistance may include funds for home repairs, temporary rental assistance, damaged vehicles and essential personal property, loss of subsistence items, as well as medical, dental, and funeral expenses caused by the disaster.

    FEMA assistance is unable to duplicate benefits offered through insurance, state programs, or other programs. But if your losses or damage go beyond disaster assistance available from other sources – or include items or categories not covered by other assistance – you may be eligible for additional funds from FEMA. Even if you have already registered for the State of Alaska’s disaster assistance program, you must also register with FEMA to determine if you may be eligible to receive additional funds through FEMA. 

    • Residents are encouraged to apply for FEMA assistance by calling the FEMA Region 10 Call Center at 866-342-1699 between 7 a.m.-4 p.m. AKT, Monday through Friday and 11 a.m.-4 p.m. AKT, Saturday. The FEMA Region 10 Call Center has staff trained to answer Alaska-specific questions. You can also apply by visiting disasterassistance.gov or using the FEMA mobile app.
    • If a reasonable accommodation – such as language translation or interpretation, mobility assistance, or sign language interpretation is needed – email FEMA-language-access-request@fema.dhs.gov. You can also notify FEMA staff through the FEMA Region 10 Call Center Helpline.

    The U.S. Small Business Administration also offers long-term disaster loans to businesses of all sizes, private nonprofit organizations, as well as homeowners and renters to pay for repair or replacement costs not fully compensated by insurance or other assistance. For more information, go to: http://www.sba.gov/disaster or call SBA’s Customer Service Center at (800) 659-2955, or email disastercustomerservice@sba.gov. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

    In addition to Individual Assistance, designated areas in the City and Borough of Juneau have also been approved for Public Assistance which will reimburse the State of Alaska, on a cost-share basis, for emergency protective measures taken in response to the disaster. The State of Alaska has also been approved for additional funding, on a cost-share basis, for hazard mitigation measures.

    Additional designations may be made at a later date. 

    erika.suzuki

    MIL OSI USA News –

  • MIL-OSI USA: FEMA, SBA and USDA create Recovery Resource Guide for Local Business Owners

    Source: US Federal Emergency Management Agency

    Headline: FEMA, SBA and USDA create Recovery Resource Guide for Local Business Owners

    FEMA, SBA and USDA create Recovery Resource Guide for Local Business Owners

    WASHINGTON – FEMA, the U.S. Small Business Administration and the U.S. Department of Agriculture have collaborated to create a guide to help local businesses affected by hurricanes Helene and Milton access recovery resources.

    The agencies created a one-stop-shop resource with information about federal support that is available to assist local businesses with their recovery. The guide—tailored for each affected state—is available on FEMA’s website at the links below:

    Many local business owners are also disaster survivors. This means they’re dealing with two separate recoveries, one for their household and another for their business.

    Recovery for local businesses after events like Helene and Milton may seem daunting. FEMA encourages chambers of commerce and other civic organizations to share this guide to help local businesses recover.
    Below are examples of the resources available to local businesses and their owners:

    • FEMA grants to make home repairs.
    • Low interest disaster loans from the SBA to repair homes and businesses. Business owners may also qualify for loans for economic injury.
    • Disaster Recovery Centers where business owners and survivors can meet representatives from various federal agencies who may be able to help. Centers are open in every state affected by Helene and Milton.
    • SBA Business Physical Disaster Loans. The SBA provides long-term low interest loans up to $2 million to cover disaster losses not fully covered by insurance.  
    • SBA Economic Injury Disaster Loans. The SBA provides long-term low interest loans up to $2 million for working capital to help small businesses, small agricultural cooperatives, and most private nonprofit organizations impacted by a disaster meet their ordinary and necessary financial obligations until normal operations resume.  
    • Livestock indemnity. The USDA provides benefits to livestock owners and contract growers for livestock deaths. 
    • Emergency loans. The USDA provides loans to help producers recover from production and physical losses.

    A full list of more than 70 resources from 17 federal agencies is available on disasterassistance.gov.

    President Biden has declared a major disaster for six states affected by Helene—Florida, Georgia, North Carolina, South Carolina, Tennessee and Virginia—and Florida for Milton.

    FEMA reminds survivors affected by hurricanes Helene or Milton that they can apply for FEMA assistance in four ways: online at disasterassistance.gov, on the FEMA App, calling 800-621-3362, or in person at a local Disaster Recovery Center.

    erika.suzuki

    MIL OSI USA News –

  • MIL-OSI USA: NEWS RELEASE: DBEDT ENCOURAGES HAWAI’I SMALL BUSINESSES TO COMPLETE ANNUAL FED CREDIT SURVEY

    Source: US State of Hawaii

    NEWS RELEASE: DBEDT ENCOURAGES HAWAI’I SMALL BUSINESSES TO COMPLETE ANNUAL FED CREDIT SURVEY

    Posted on Oct 21, 2024 in Latest Department News, Newsroom

    DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT AND TOURISM

    BUSINESS DEVELOPMENT AND SUPPORT DIVISION

    JOSH GREEN, M.D.
    GOVERNOR

    JAMES KUNANE TOKIOKA

    DIRECTOR

    DENNIS T. LING
    ADMINISTRATOR

    FOR IMMEDIATE RELEASE

    October 21, 2024

    DBEDT ENCOURAGES HAWAIʻI SMALL BUSINESSES TO COMPLETE ANNUAL FED CREDIT SURVEY

     

    HONOLULU – Small businesses are vital to the U.S. economy, yet comprehensive data on their financing needs and challenges remain scarce. The Federal Reserve Banks address this gap through the annual Small Business Credit Survey (SBCS), gathering unique insights into how and why small businesses seek financing. As an independent and decentralized entity, the Fed is uniquely positioned to collect, analyze, and distribute this essential data to inform decision-makers and stakeholders nationwide.

     

    The survey takes 10-12 minutes to complete and is open to for-profit businesses with fewer than 500 employees. Responses are confidential and small business owners do not need to provide any personal information. The survey closes on Friday, November 1, at 3:00 p.m. Hawaiʻi time.

    “We want small business leaders and owners to share their recent experiences and insights, including how they rate the financial condition of their business and whether they sought loans or other lines of credit over the last year,” said Dennis Ling, administrator of the Business Development and Support Division of the Department of Business, Economic Development, and Tourism. “By taking the survey, business owners contribute to data that directly informs the Fed, federal government agencies, service providers, policymakers and others—ultimately benefitting their business and similar businesses across the country.”

    The survey is open to businesses currently in operation, those recently closed and those about to launch. All responses are confidential. Complete the survey at the following link: https://fedsmallbiz.org/4g4oSSv

     

    About the Department of Business, Economic Development and Tourism (DBEDT)

    DBEDT is Hawai‘i’s resource center for economic and statistical data, business development opportunities, energy and conservation information, as well as foreign trade advantages. DBEDT’s mission is to achieve a Hawai‘i economy that embraces innovation and is globally competitive, dynamic and productive, providing opportunities for all Hawai‘i’s citizens. Through its attached agencies, the department fosters planned community development, creates affordable workforce housing units in high-quality living environments and promotes innovation-sector job growth.

     

    About the Business Development and Support Division (BDSD)
    The Business Development and Support Division of DBEDT promotes industry development and economic diversification by supporting existing and emerging industries in Hawai‘i and by attracting new investment and businesses to the state. Learn more at:     https://invest.hawaii.gov/.

    # # #

     

     

    Media Contacts:

     

    Laci Goshi

    Department of Business, Economic Development and Tourism
    808-518-5480
    l[email protected]

    Dennis Ling

    Business Development and Support Division Administrator
    Department of Business, Economic Development and Tourism
    [email protected]

    MIL OSI USA News –

  • MIL-OSI USA: Frozen Waffles Recalled

    Source: US State of Rhode Island

    The Rhode Island Department of Health (RIDOH) is advising consumers that TreeHouse Foods is recalling certain frozen waffle products due to potential Listeria monocytogenes contamination. These products were sold under the following brand names:

    � Always Save � Best Choice � Bettergoods � Breakfast Best � Clover Valley � Compliments � Essentials � Food Lion � Foodhold � Giant Eagle � Good & Gather � Great Value � Hannaford � Harris Teeter � H-E-B Higher Harvest � Kodiak Cakes � Price Chopper � Publix � Schnucks � Selection � SE Grocer � Simple Truth � Tops � Western Family

    For more information about these products, see the link below.

    Listeria monocytogenes is an organism that can cause serious and sometimes fatal infections in young children, frail or elderly people, and others with weakened immune systems. Healthy people may suffer only short-term symptoms such as high fever, severe headache, stiffness, nausea, abdominal pain, and diarrhea. Listeria monocytogenes infection can cause miscarriages and stillbirths among pregnant women.

    The recalled products were distributed throughout the United States and Canada. There have been no confirmed reports of illness linked to the recalled products to date. This issue was discovered through routine testing at the manufacturing facility. Anyone concerned about an illness should contact a healthcare professional.

    Consumers should check their freezers for any of the products listed above and dispose of them or return the recalled product to the place of purchase for credit. Consumers with questions may contact the company at 800-596-2903.

    MIL OSI USA News –

  • MIL-OSI Australia: Cathay Pacific celebrates 50 years connecting Sydney and Hong Kong

    Source: Sydney Airport

    Tuesday 22 October 2024

    • Cathay Pacific marks 50 years of flights between Sydney and Hong Kong
    • Landmark journey began in 1974 with 108 passengers on board a Boeing 707
    • Today, the Cathay Group flies to over 90 passenger and cargo destinations across the globe with Skytrax naming Cathay Pacific ‘World’s Best Airline’ four times

    Cathay Pacific marks an important milestone today, celebrating the 50th anniversary of its inaugural direct flights between Sydney and Hong Kong, a journey that has transformed travel to Asia.

    In October 1974, 108 passengers boarded the first Boeing 707 bound for Hong Kong, a direct route that eliminated the need for complicated layovers across Australia and Asia. This milestone not only revolutionised travel but also strengthened ties between two vibrant cities.

    Over the past five decades, Cathay Pacific has evolved into one of the world’s strongest and most connected airlines. The Cathay Group now serves over 90 passenger and cargo destinations globally.

    Greg Botham Group Executive, Aviation Growth & Group Strategy, Sydney Airport, said: “We are proud to celebrate Cathay Pacific’s 50-year milestone of flying between Sydney and Hong Kong. This iconic route has been a vital cornerstone of our Asia network, fostering connections and promoting tourism between two major cities.

    “Cathay Pacific’s unwavering commitment to service and excellence has played a pivotal role in enhancing Sydney Airport’s position as a global gateway, and we look forward to many more years of partnership and growth together.”

    Frosti Lau, Regional General Manager Southwest Pacific, Cathay Pacific said: “Cathay Pacific has had a long history with Australia, with one of our founders being Sydneysider, Sydney de Kantzow. To celebrate 50 years of flying passengers direct between Sydney and Hong Kong is truly a momentous occasion.

    “While Sydney has always been a key destination for Cathay Pacific customers, we have also been moving cargo between the two cities and beyond since our inception in 1946.

    We look forward to continuing our partnership with Sydney Airport and bringing exceptional service to those we connect with the rest of the world.”

    The Sydney service has expanded significantly, growing from a daily flight to double, triple, and now four daily flights, reflecting Sydney Airport’s commitment to meeting passenger demand and enhancing connectivity.

    Today, Cathay Pacific continues to expand its offering for passengers, not only transporting them to new destinations across its expansive network, but also providing a premium service and state-of-the-art in-flight products seen through its recent unveiling of its new Business Class, the Aria Suite. The airline has also garnered recognition from Skytrax World Airline Awards, being named ‘World’s Best Airline’ four times and was recently named “World’s Best Economy Class” and “#5 in World’s Best Airline” for 2024.

    Notes to editor

    Cathay Pacific facts

    • The first Sydney to Hong Kong flight was piloted by Captain Bob Howell, First Officer Hal Dyball, and Flight Engineer Bruce Holyman.
    • Since 1994, over 1,800 Cathay Pacific pilots have trained in Adelaide, reinforcing the airline’s dedication to safety and excellence in aviation.
    • To celebrate Cathay Pacific’s 50th anniversary flying between Sydney Airport and Hong Kong, the airline is giving away Cathay Pacific Flight Vouchers worth $500. Customers can enter the competition here

    MIL OSI News –

  • MIL-OSI Security: Owner of Tax Preparation Company Sentenced to More Than Four Years in Prison for Bank Fraud and $2.1 Million COVID Relief Fraud

    Source: Federal Bureau of Investigation (FBI) State Crime News

    Defendant fled the United States after being indicted and remained a fugitive for 19 months

    BOSTON – A Lawrence woman was sentenced in federal court in Boston for using stolen identities of taxpayers and businesspeople to defraud the Internal Revenue Service (IRS), a bank, and the Small Business Administration (SBA).

    Luz Paulino, 42, was sentenced by U.S. District Court Judge Richard G. Stearns to 54 months in prison, four years of supervised release, and ordered to pay $37,056 in restitution to MetaBank and $456,300 to the Small Business Administration. In June 2024, Paulino pleaded guilty to one count of bank fraud conspiracy, one count of bank fraud, two counts of wire fraud and two counts of aggravated identity theft.

    Paulino was arrested in December 2020 and indicted by a federal grand jury in January 2021. While on pretrial release, Paulino fled the United States and remained a fugitive for 19 months.  Panamanian authorities ultimately returned her to the United States, where she was arrested for a second time.

    Paulino owned and operated Agape Financial Services, a Lowell-based company that provided tax preparation and notary services. In 2019 and early 2020, Paulino filed false and fraudulent federal tax returns using the stolen identities, names and Social Security numbers of individual victims. The fraudulent tax returns reported false information regarding wages, employers and dependents, among other things, to claim tax refunds. To conceal her involvement, Paulino falsely represented to the IRS that the returns had been prepared by two former employees of Agape. Paulino then used the fraudulent returns to obtain Refund Advance Loans from a bank in the names of her victims.  Paulino and others she recruited then cashed the loan checks using false identification documents and forged signatures.  

    Paulino separately used stolen identities of businesspeople living in California, Michigan, Indiana and elsewhere to apply to the SBA for $2.1 million in COVID-19 Emergency Injury Disaster Loans. Between June 2020 and October 2021, Paulino’s false applications listed fictitious companies that purportedly lost revenue during the pandemic. She used the fraudulently obtained loan proceeds to wire more than $395,000 to the Dominican Republic and to buy a 2020 Cadillac for $86,000, among other purchases.
        
    Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge, Federal Bureau of Investigation, Boston Field Division; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations; and Melix Bonilla, Acting Chief of the Lawrence Police Department made the announcement today. Assistant U.S. Attorney Victor A. Wild of the Securities, Financial & Cyber Fraud Unit prosecuted the case.

    On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit Justice.gov/Coronavirus and Justice.gov/Coronavirus/CombatingFraud.

    Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form.

    MIL Security OSI –

  • MIL-OSI Security: Spokane Dermatologist Indicted for Using Approximately $1.5 Million in COVID-19 Relief Funds to Buy Arizona Home, Sports Cars, and Other Properties

    Source: Office of United States Attorneys

    Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced a federal grand jury has an indicted a Spokane dermatologist, and his associated businesses, for fraudulently obtaining and using approximately $1.5 million dollars in COVID-19 relief funds to purchase luxury sports cars, buy real estate, and pay off personal debt.

    On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act.  The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic.  EIDL funds were to be used solely as working capital to alleviate economic injury to a business caused by the COVID-19 disaster, such as paying payroll, health insurance premiums, rent, utilities, and fixed debt payments.  EIDL funds were not to be used for personal purposes or to obtain real property or to pay off debts that were not yet due and owing, such as paying more than a fixed monthly payment on a mortgage or other loan.

    The Indictment announced today charges William Philip Werschler, age 66, of Spokane, Washington, along with his businesses Spokane Dermatology Clinic, Premier Clinical Research L.L.C., and 3rd and Sherman Plaza L.L.C., with 23 counts of fraud in connection with how Werschler and his businesses allegedly spent EIDL loans.

    Beginning no later than April 2020 and continuing until at least July 2022, Werschler applied for EIDL loans for his businesses: Spokane Dermatology Clinic, Premier Clinical Research, and 3rd and Sherman Plaza L.L.C.  In total, Werschler and his businesses received more than $2.9 million in EIDL money.

    The Indictment alleges that Werschler used the EIDL funds for personal purchases including over half of the $575,000 purchase price of a house in Scottsdale, Arizona; the purchase of a 2011 Porsche 911 GT3 for $166,687; the purchase of a 1997 Porsche Carrera for $88,687; and $123,960 to pay off a loan for a storage unit at 6720 N. Pittsburg Street that was used to store automobiles, jet skis, and a boat. According to the indictment, Werschler also allegedly used EIDL money to pay off the balance of a loan for property on Grant Street in Spokane, Washington, for $286,792, and $550,000 to purchase two properties across from his Spokane Dermatology Clinic, both contrary to the proper use of EIDL funds.

    “Many small and local businesses struggled to stay afloat during the COVID-19 pandemic. The Economic Injury Disaster Loan program was designed to provide those business owners an economic lifeline,” stated U.S. Attorney Waldref. “My office has made it a priority to hold fraudsters accountable who used these critical funds to enrich themselves.”

    This case was investigated by the IRS Criminal Investigations, the FBI, and the Small Business Administration Office of Inspector General. It is being prosecuted by Assistant United States Attorney Jeremy J. Kelley.

    An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    MIL Security OSI –

  • MIL-OSI USA: Kaptur Announces USDA Drought Disaster Designation for Ohio Counties

    Source: United States House of Representatives – Congresswoman Marcy Kaptur (OH-09)

    Toledo, OH – Today, Congresswoman Marcy Kaptur (OH-09), Ranking Member of the House Appropriations Subcommittee on Energy and Water Development, announced that five additional Ohio counties have been designated as primary natural disaster areas by the United States Department of Agriculture (USDA) due to ongoing drought conditions. The affected counties include Defiance, Henry, Williams, Fulton, and Lucas, which have suffered from extreme and severe drought conditions during the critical growing season. On September 27th, Congresswoman Kaptur and Congressman Rulli (OH-06) led a bipartisan group of Ohio lawmakers in urging USDA Secretary Tom Vilsack to expand emergency haying and grazing measures under the Conservation Reserve Program.

    This designation, announced by USDA Secretary Tom Vilsack, unlocks critical assistance for local farmers through USDA’s Farm Service Agency (FSA) emergency loan program and other relief options. The designation applies to counties that have experienced either a D2 (Severe) drought for eight or more consecutive weeks or a D3 (Extreme) or D4 (Exceptional) drought as indicated in the US Drought Monitor.

    “Our farmers’ stories are deeply personal and reflect the heart of our communities. This year’s drought has tested them in ways few can imagine, but, in their resilience, they show us what it means to endure,” said Congresswoman Marcy Kaptur (OH-09). “This drought disaster designation is more than a federal response—it’s a recognition of their perseverance, and an opportunity to give them the support they need to recover. It’s our duty to stand with them, and I encourage every eligible farmer to take advantage of these vital resources.”

    Farmers in the designated counties have up to eight months from the date of the USDA disaster declaration to apply for emergency loans through their local FSA office. These loans can help farmers cover production losses, repair or replace essential property, and restore their agricultural operations. Eligibility for loans is based on the extent of loss, farm viability, and the applicant’s repayment ability.

    Farmers in both the primary and contiguous counties will be able to apply for assistance and should reach out to their local FSA office for more details on available programs.

    The designation also unlocks other federal programs that may be able to assist impacted farmers and rural communities.

    Counties designated as primary disaster areas:

    • Defiance
    • Henry
    • Williams
    • Fulton
    • Lucas

    Contiguous counties:

    • Ottawa
    • Wood
    • Hancock
    • Paulding
    • Putnam

    On October 9, 2024, Kaptur led 63 of her colleagues in urging House Speaker Mike Johnson to bring the US House of Representatives back into session to approve necessary funding for the Federal Emergency Management Agency (FEMA) and the Small Business Administration (SBA) to fulfill their Hurricane Helene and Milton relief missions. Recent legislation has provided initial relief funds but falls critically short of what will be necessary to address the scale of destruction and the recovery needs for Fiscal Year 2025.

    Additionally, on October 8, 2024, Congresswoman Marcy Kaptur joined a bipartisan group of lawmakers in urging Congressional leaders to include provisions from the Save Our Small Farms (SOS Farms) Act in the upcoming Farm Bill, advocating for critical reforms to crop insurance programs and disaster relief measures to better support small and mid-sized farmers.

    Farmers are encouraged to visit their local FSA office or visit the USDA website to inquire about the specific resources available to them and to begin the loan application process.

    # # #

    MIL OSI USA News –

  • MIL-OSI USA: Con Yeager Spice Company Issues Allergy Alert on Undeclared Soy and Wheat in Trail Bologna Meat Processing Kits

    Source: US Department of Health and Human Services – 3

    Summary

    Company Announcement Date:
    FDA Publish Date:
    Product Type:
    Food & Beverages
    Allergens
    Reason for Announcement:

    Recall Reason Description

    Potential or Undeclared Allergen – Wheat and Soy

    Company Name:
    Con Yeager Spice Company
    Brand Name:

    Brand Name(s)

    Trail Bologna

    Product Description:

    Product Description

    Meat Processing Kit

    Company Announcement

    The Con Yeager Spice Company of Zelienople, PA, is recalling its TRAIL BOLOGNA MEAT PROCESSING KITS, because they may contain undeclared soy and wheat. People who have an allergy or severe sensitivity to soy and wheat run the risk of serious or life-threatening allergic reaction if this product is consumed.

    The recalled Trail Bologna Meat Processing Kits were distributed nationwide through wholesale distribution, retail stores, and mail order via https://www.conyeagerspice.com

    Trail Bologna Meat Processing Kits come in 17.88 Ounce pouches, UPC code 797442404137. Affected pouches are marked with lot # B241851006 and with a Best by Date of 2-08-27. The lot and date can be found on the front center of the pouch.

    The recall was initiated after it was discovered by a customer that their box of Hickory Jerky Kits contained Trail Bologna Meat Processing Kits. Hickory Jerky kit contents were inadvertently packaged inside of Trail Bologna Meat Processing kit pouches.

    No illnesses have been reported to date in connection with this problem.

    Production of the product has been suspended, while the company’s ongoing investigation determines the cause and corrects the problem.

    Consumers who have purchased Trail Bologna Kit pouches, Lot B241851006, are urged to contact Con Yeager Spice for return and replacement. Distributors who have purchased boxes of Hickory Jerky are urged to inspect the contents of their cases for Trail Bologna kits and contact Con Yeager for return and replacement. Consumers with any questions may contact Customer Service or Sales at the Con Yeager Spice Company at 724-202-6513, 8 AM EDT through 4:15 pm EDT, Monday through Friday.

    Company Contact Information

    Consumers:
    Con Yeager Spice Company
    724-202-6513

    Product Photos

    MIL OSI USA News –

  • MIL-OSI USA: Disaster Declaration Secured for August 18-19 Flood Damage

    Source: US State of New York

    Governor Kathy Hochul today announced that President Biden approved her request for a Major Disaster Declaration to provide federal assistance to communities impacted by severe weather on August 18 and 19. This declaration allows for federal financial assistance to support public infrastructure reconstruction efforts in Suffolk, Oswego, and Lewis counties. As the State awaits the President’s decision on direct support for homeowners, we will continue to do all we can to help those impacted by extreme weather this summer.

    “Severe weather on August 18 and 19 left extreme damage across parts of our state, and I’m thankful President Biden has approved my request for a Major Disaster Declaration,” Governor Hochul said. “My administration will continue to work with FEMA to ensure those affected receive the critical funding they need to begin the recovery and rebuilding process.”

    “Following the devastating August storms, I worked with local and state emergency management to strongly support the state’s disaster request, and I would like to thank FEMA and President Biden for approving this Major Disaster Declaration,” said U.S. Senate Majority Leader Chuck Schumer. “This Major Disaster Declaration will unlock the resources necessary to recover and rebuild stronger, and this welcome approval is the next step in getting New Yorkers the help they need to do exactly that.”

    A Major Disaster Declaration secures financial assistance from the federal government, primarily through FEMA’s Public Assistance Program, and provides funding to local governments and eligible non-profits for debris removal, protective measures and repairs to buildings and infrastructure, including roads, bridges, water and wastewater treatment facilities, critical infrastructure sites, schools, parks and other facilities.

    As part of the declaration, New York was also granted access to FEMA’s Hazard Mitigation Grant Programs. Following a Presidential disaster declaration, FEMA provides funding for states to administer grant programs supporting local hazard mitigation planning and long-term hazard mitigation measures to reduce the loss of life and to improve property damaged by natural disasters. Local governments and certain non-profits that perform government-like functions are eligible to apply for these grants. All counties in the State will have the ability to apply for this funding. More information will become available in the coming months.

    This Declaration builds on a number of the Governor’s efforts to help impacted communities recover. On August 23, Governor Hochul Declared a State of Emergency and announced emergency assistance to support homeowners impacted by flash flooding caused by the record rainfall. At Governor Hochul’s direction, New York Homes and Community Renewal launched an emergency repair program that would provide grants of $50,000 to eligible homeowners in Nassau and Suffolk counties. Lewis County was granted access to this program, as well as low-interest loans from the U.S. Small Business Administration following extreme weather earlier this summer.

    MIL OSI USA News –

  • MIL-OSI USA: SBA Offers Disaster Assistance to Nebraska Businesses and Residents Affected by Severe Storms, Straight line Winds, Tornadoes and Flooding

    Source: United States Small Business Administration

    SACRAMENTO, Calif. – Low-interest federal disaster loans are available to Nebraska businesses and residents affected by severe storms, straight-line winds, tornadoes and flooding that occurred May 20–June 3, announced Administrator Isabel Casillas Guzman of the U.S. Small Business Administration. SBA acted under its own authority to declare a disaster in response to a request SBA received from Gov. Jim Pillen on Oct. 15.

    The SBA Rural disaster declaration makes SBA assistance available to both rural and non-rural areas of Howard County in Nebraska.

    “As communities across the Southeast continue to recover and rebuild after Hurricanes Helene and Milton, the SBA remains focused on its mission to provide support to small businesses to help stabilize local economies, even in the face of diminished disaster funding,” said Administrator Isabel Casillas Guzman. “If your business has sustained physical damage, or you’ve lost inventory, equipment or revenues, the SBA will help you navigate the resources available and work with you at our recovery centers or with our customer service specialists in person and online so you can fully submit your disaster loan application and be ready to receive financial relief as soon as funds are replenished.”

    “When disasters strike, our virtual Disaster Loan Outreach Centers are key to helping business owners and residents get back on their feet,” said Francisco Sánchez Jr., associate administrator for the Office of Disaster Recovery and Resilience at the Small Business Administration. “At these virtual centers, people can connect directly with our specialists to apply for disaster loans and learn about the full range of programs available to rebuild and move forward in their recovery journey.”

    “Low-interest federal disaster loans are available to businesses of all sizes, most private nonprofit organizations, homeowners and renters whose property was damaged or destroyed by this disaster,” Sánchez continued.

    SBA has established a virtual Disaster Loan Outreach Center to provide personalized assistance to business owners, homeowners and renters. SBA customer service representatives will be available to business owners and individuals to answer questions about SBA’s disaster loan program, explain the application process and help each person complete their electronic loan application. Applicants may call or email as indicated below.

    Virtual Disaster Loan Outreach Center
    Monday – Friday
    8:00 a.m. – 4:30 p.m. Pacific Time
    FOCWAssistance@sba.gov
    (916) 735-1160

    Businesses of all sizes and private nonprofit organizations may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other business assets.

    For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size, SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. Economic injury assistance is available regardless of whether the business suffered any property damage.

    “SBA’s disaster loan program offers an important advantage–the chance to incorporate measures that can reduce the risk of future damage,” Sánchez added. “Work with contractors and mitigation professionals to strengthen your property and take advantage of the opportunity to request additional SBA disaster loan funds for these proactive improvements.”

    Disaster loans up to $500,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for up to $100,000 to repair or replace damaged or destroyed personal property, including personal vehicles.

    Interest rates can be as low as 4 percent for businesses, 3.25 percent for private nonprofit organizations and 2.688 percent for homeowners and renters with terms up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant’s financial condition.

    Interest does not begin to accrue until 12 months from the date of the first disaster loan disbursement. SBA disaster loan repayment begins 12 months from the date of the first disbursement.

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

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

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

    The deadline to apply for property damage is Dec. 20, 2024. The deadline to apply for economic injury is July 21, 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 http://www.sba.gov.

    MIL OSI USA News –

  • MIL-OSI USA: Disaster Recovery Centers Open in Aiken, Allendale, Greenwood, Newberry Counties

    Source: US Federal Emergency Management Agency

    Headline: Disaster Recovery Centers Open in Aiken, Allendale, Greenwood, Newberry Counties

    Disaster Recovery Centers Open in Aiken, Allendale, Greenwood, Newberry Counties

    Disaster Recovery Centers will be open in Aiken, Allendale, Greenwood and Newberry counties to provide in-person assistance to South Carolinians affected by Hurricane Helene.  

    Aiken County
    Aiken Technical College – Building B
    2276 Jefferson Davis Highway
    Graniteville, SC 29829
    Open Oct. 21-24, 8 a.m.–7 p.m.
    Oct 25-26, 7:30 a.m.– 6 p.m.

    Allendale County
    James Brandt Building
    398 Barnwell Highway
    Allendale, SC 29810
    Open Oct. 21-23, 8 a.m.–7 p.m.

    Greenwood County
    United Way of the Lakelands
    929 Phoenix St.
    Greenwood, SC 29646
    Open Oct. 21-30, 8 a.m.–7 p.m.

    Newberry County
    Newberry County Sheriff’s Office
    550 Wilson Road
    Newberry, SC 29108
    Open Oct. 21-24, 8 a.m.–7 p.m.

    These locations join the centers previously opened in Anderson, Greenville, Pickens and Union counties. 

    Anderson County 
    Anderson County Library
    300 N. McDuffie St.
    Anderson, SC 29621 
    Open Oct. 20, 2 p.m. – 5 p.m.
    Oct. 21-24, 9 a.m. – 6:30 p.m.
    Oct. 25-26, 9 a.m. – 5 p.m.
    Oct. 27, 2 p.m. – 5 p.m.

    Greenville County 
    Freetown Community Center 
    200 Alice Ave.  
    Greenville, SC 29611 
    Open through Oct. 24, 8 a.m.–7 p.m.  

    Pickens County
    Captain Kimberly Hampton Memorial Library
    304 Biltmore Road
    Easley, SC 29640
    Open through Oct. 21, 8 a.m.-7 p.m.   

    Union County
    Union County Library
    300 E. South St.
    Union, SC 29379
    Open through Oct. 22, 8 a.m.-7 p.m.  

    Additional Disaster Recovery Centers are scheduled to open in other South Carolina counties. You can visit any open center to meet with representatives of FEMA, the state of South Carolina and the U.S. Small Business Administration. No appointment is needed. To find other center locations, go to fema.gov/drc or text “DRC” and a Zip Code to 43362. 

    Homeowners and renters in Abbeville, Aiken, Allendale, Anderson, Bamberg, Barnwell, Beaufort, Cherokee, Chester, Edgefield, Fairfield, Greenville, Greenwood, Hampton, Jasper, Kershaw, Laurens, Lexington, McCormick, Newberry, Oconee, Orangeburg, Pickens, Richland, Saluda, Spartanburg, Union and York counties and the Catawba Indian Nation can apply for federal assistance.

    The quickest way to apply is to go online to DisasterAssistance.gov. You can also apply using the FEMA App for mobile devices or calling toll-free 800-621-3362. The telephone line is open every day and help is available in many languages. If you use a relay service, such as Video Relay Service (VRS), captioned telephone or other service, give FEMA your number for that service. For a video with American Sign Language, voiceover and open captions about how to apply for FEMA assistance, select this link.

    FEMA programs are accessible to survivors with disabilities and others with access and functional needs. 

    kwei.nwaogu

    MIL OSI USA News –

  • MIL-OSI: LNG Energy Group Provides an Operational Update and Change of Transfer Agent

    Source: GlobeNewswire (MIL-OSI)

    Highlights:

    • LNG Energy Group expects to issue a reserves update by month-end in respect of the reserves to be acquired in Venezuela.
    • Debt Repayments – Approximately U.S.$14.7 million amortization of term-loan debt principal.
    • ESG Initiatives – Lewis Energy Colombia obtains ISO certification and dedicates property to reforestation in advance of its carbon reduction initiatives in Colombia.
    • Natural Gas Compressor – New compressor will be used to optimize production and improve reserves life.
    • Commencement of new Oilfield Services Division.
    • Gas Sales Agreements – Amendments with off-takers allow for temporary lower nominations to facilitate maintenance and workover program.
    • Capital Expenditures – Expecting to drill a development and a re-entry at an existing development well in the fourth quarter of 2024.

    TORONTO, Oct. 21, 2024 (GLOBE NEWSWIRE) — LNG Energy Group Corp. (TSXV: LNGE) (TSXV: LNGE.WT) (OTCQB: LNGNF) (FWB: E26) (the “Company” or “LNG Energy Group”) is pleased to an operational update on its projects in Venezuela and Colombia.

    Corporate

    Since August 2023, the Company has been able to repay approximately U.S.$14.7 million in amortization on its long-term bank debt.

    Colombia

    Environmental, Health and Safety and sustainability Practices

    The Company is pleased to announce that its wholly owned subsidiary, Lewis Energy Colombia, Inc. (“LEC”), has successfully completed the following ISO recertifications, after an audit performed by Bureau Veritas:

    • 9001:2015 – Quality Management System (QMS): this certification recognizes LEC for its successful implementation and continual improvement of its QMS.
    • 14001:2015 – Environmental Management Systems (EMS): this certification recognizes LEC’s commitment to take proactive measures to minimize its environmental footprint, comply with relevant legal requirements and achieve their environmental objectives.
    • 45001:2018 – Occupational Health and Safety (OH&S) Management System: this certification recognizes LEC’s commitment to systematically assess hazards and implement risk control measures, leading to reduced workplace injuries, illnesses and incidents.

    LEC is also in the process of assigning 25 hectares (62 acres) to the Corporación Autónoma Regional del Atlántico (“CRA”), the environmental agency for the Atlántico state in northern Colombia. This land will be used for reforestation projects and for the purpose of protecting the local watershed. Currently, LEC has approximately 360 hectares (900 acres) in the area and this is land that will be used for environmental compensation purposes, contributing to a reduction in LEC’s carbon footprint.

    Compressor at the Bullerengue Field

    The Company is pleased to announce the completion of its new compressor project at the Bullerengue field. The compressor recently began operation and will be instrumental in increasing the reserves life of the field while facilitating access to an additional 1.67 Bcf of natural gas at the north side of the field. The compressor will also serve to increase LEC’s ability to respond to regulatory requirements and improve general operational efficiencies.

    Source: Company images of the new compressor and facilities at the Bullerengue field.

    Oilfield Services Division

    LEC is continuing studies to offer drilling rig services to third parties in Colombia, as a way of optimizing resource use to increase company income, while allowing us to maintain a strong core rig crew, which helps improve our operational efficiency.

    LEC has three rigs on the ground in its Sinú-San Jacinto Norte-1 Block (the “SSJN-1 block”) near Barranquilla, Colombia. They include one 1,600 HP top-drive drilling rig, one 1,000 HP top-drive drilling rig and one 550 HP workover rig. These rigs come complete with generators, pumps, BOPs, mud systems, tanks and other equipment needed to fully execute drilling and workovers operations. Together, the rigs and associated equipment have an estimated value of approximately U.S.$10 million.

    The Company looks to mobilize its equipment and personnel in the fourth quarter of 2024 to pursue workover and drilling activities.

    Gas Sales Agreements

    As a result of unexpected production restrictions at certain wells in the Bullerengue natural gas field, the Company has had to limit natural gas deliveries under certain gas sales agreements dedicated to supplying natural gas demand. As a result of careful review of the legal, social and security circumstances, the natural gas supply needs of the Colombian gas market, and the Company’s commitment to meet its commercial obligations with its off-takers and strategic partner contracts, the Company considers it prudent to pursue short term volume delivery amendments reducing volumes by 5.0 MMbtu/d for a period of four months with no significant changes to LEC’s average natural gas sales price.

    The Company is presently working on remediating this disruption and expects to have production back to normal levels upon execution of well maintenance and drilling activity. The Company is working on workover and drilling initiatives to make up for these sales volumes in the future and meet its average production and long-term valuation creation objectives and therefore does not expect this situation to have a long-term material impact on its operations and results.

    Capital Expenditures

    For the remainder of 2024, the Company expects to drill at least one additional development well and conduct a re-entry at an existing well at the SSJN-1 block onshore in Colombia in addition to its remaining workover campaign. The workover campaign is designed to address maintenance declines in production as well as increase production from the Company’s existing wells.

    Venezuela

    On April 17, 2024, LNG Energy Group’s wholly own subsidiary, LNGEG Growth I Corp. (“LNG Venezuela”) was conditionally entered into a binding agreement with PDVSA Petroleo S.A. (“PPSA”), a subsidiary of Petroleos de Venezuela S.A., the Venezuelan national oil company, for the operation of the Nipa-Nardo-Niebla and the Budare-Elotes CPPs in onshore Venezuela (collectively, the “Venezuela Blocks”). The Venezuela Blocks are currently producing 3,000 bbl/d of light and medium oil.

    The Company is preparing a baseline to understand the work program and activities required to take over operations of these fields and optimize production and is in the process of certifying the reserves at certain of the Venezuela Blocks in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities. The disclosure of these reserves is subject to review and approval of PPSA.

    The CPPs were executed within the term of General License 44 issued by the US Office of Foreign Assets Control (OFAC). License 44 has been replaced by License 44A, and the Corporation is following the applicable regulatory procedures to operate in full compliance with the applicable sanction regimes. LNG Venezuela and PPSA have mutually agreed to extend the outside date of the CPPs to November 30, 2024.

    Transfer Agent

    LNG Energy Group announces that Odyssey Trust Company (“Odyssey”) has replaced Computershare Investor Services Inc. (“Computershare”) as the registrar and transfer agent of the Company effective September 11, 2024. Shareholders need not take any action in respect of the change in transfer agent.

    All inquiries and correspondence relating to shareholders’ records, transfer of shares, lost certificates, or change of address should now be directed to Odyssey as follows:

    Odyssey Trust Company
    Trader’s Bank Building
    702 – 67 Yonge Street
    Toronto ON M5E 1J8

    Phone: 1-587-885-0960
    Fax:1-800-517-4553
    Email: clients@odysseytrust.com
    Website: http://www.odysseytrust.com/contact

    As of the date hereof, Computershare remains the trustee of any applicable warrants and escrow arrangements.

    Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

    About LNG Energy Group

    The Company is focused on the acquisition and development of oil and gas exploration and production assets in Latin America.

    For more information, please see below:

    Website:
    http://www.lngenergygroup.com

    Investor Relations:
    James Morris, Vice-President, Business Development and Investor Relations
    Email: investor.relations@lngenergygroup.com
    Telephone: 205-835-0676

    Find us on social media:
    LinkedIn: https://www.linkedin.com/company/lng-energy-group-inc/
    Instagram: @lngenergygroup

    X: @LNGEnergyCorp

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION:

    This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities laws. All statements other than statements of historical fact are forward-looking statements, and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often using phrases such as “expects”, “anticipates”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends”, or variations of such words and phrases, or stating that certain actions, events or results “may” or “could”, “would”, “should”, “might” or “will” be taken to occur or be achieved, are not statements of historical fact and may be forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include: general business, economic, competitive, political and social uncertainties; delay or failure to receive any necessary board, shareholder or regulatory approvals, factors may occur which impede or prevent LNG Energy Group’s future business plans; and other factors beyond the control of LNG Energy Group. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, LNG Energy Group assumes no obligation to update the forward-looking statements, whether they change as a result of new information, future events or otherwise, except as required by law.

    CPPs

    Please see the Company’s news release dated April 24, 2024 for additional information with respect to the CCPs. There can be no guarantee that the Company or LNG Venezuela shall be able to complete the acquisition terms required by PPSA.

    The CPPs were executed within the term of General License 44 issued by the US Office of Foreign Assets Control (OFAC). License 44 has been replaced by License 44A requiring US persons to wind down oil operations in Venezuela before May 31, 2024. License 44 has been replaced by License 44A, and the Corporation is following the applicable regulatory procedures to operate in full compliance with the applicable sanction regimes.

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/2891cdb5-62b8-4666-80a7-49014f2eb929

    The MIL Network –

  • MIL-OSI USA: SBA Offers Disaster Assistance to California Businesses and Residents Affected by the Airport Fire

    Source: United States Small Business Administration

    SACRAMENTO, Calif. – Low-interest federal disaster loans are available to California businesses and residents affected by the Airport Fire that occurred Sept. 9-Oct. 6, announced Administrator Isabel Casillas Guzman of the U.S. Small Business Administration. SBA acted under its own authority to declare a disaster in response to a request SBA received from Gov. Gavin Newsom’s authorized representative, Director Nancy Ward of the California Office of Emergency Services, on Oct. 15.

    The disaster declaration makes SBA assistance available in Imperial, Orange, Riverside, San Bernardino and San Diego counties in California; and neighboring La Paz County in Arizona.

    “As communities across the Southeast continue to recover and rebuild after Hurricanes Helene and Milton, the SBA remains focused on its mission to provide support to small businesses to help stabilize local economies, even in the face of diminished disaster funding,” said Administrator Isabel Casillas Guzman. “If your business has sustained physical damage, or you’ve lost inventory, equipment or revenues, the SBA will help you navigate the resources available and work with you at our recovery centers or with our customer service specialists in person and online so you can fully submit your disaster loan application and be ready to receive financial relief as soon as funds are replenished.”

    “When disasters strike, our Disaster Loan Outreach Centers are key to helping business owners and residents get back on their feet,” said Francisco Sánchez Jr., associate administrator for the Office of Disaster Recovery and Resilience at the Small Business Administration. “At these centers, people can connect directly with our specialists to apply for disaster loans and learn about the full range of programs available to rebuild and move forward in their recovery journey.”

    “Low-interest federal disaster loans are available to businesses of all sizes, most private nonprofit organizations, homeowners and renters whose property was damaged or destroyed by this disaster,” Sánchez continued. “Beginning Wednesday, Oct. 23, SBA customer service representatives will be on hand at the following Disaster Loan Outreach Center to answer questions about SBA’s disaster loan program, explain the application process and help each individual complete their application,” Sánchez added. The center will be open on the days and times indicated below. No appointment is necessary.

    RIVERSIDE COUNTY
    Disaster Loan Outreach Center
    Lake Community Center – Dance Room
    310 W. Graham Ave.
    Lake Elsinore, CA  92530

    Opens 12 p.m. Wednesday, Oct. 23
    Mondays, Wednesdays, Fridays, 8:00 a.m. – 5:00 p.m.
    Tuesdays, Thursdays, 8:00 a.m. – 3:30 p.m.
    Closed on Monday, Nov. 11, for Veterans Day
    Closes 5 p.m. Wednesday, Nov. 13

    Businesses of all sizes and private nonprofit organizations may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other business assets.

    For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size, SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. Economic injury assistance is available regardless of whether the business suffered any property damage.

    “SBA’s disaster loan program offers an important advantage–the chance to incorporate measures that can reduce the risk of future damage,” Sánchez said. “Work with contractors and mitigation professionals to strengthen your property and take advantage of the opportunity to request additional SBA disaster loan funds for these proactive improvements.”

    Disaster loans up to $500,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for up to $100,000 to repair or replace damaged or destroyed personal property, including personal vehicles.

    Interest rates can be as low as 4 percent for businesses, 3.25 percent for private nonprofit organizations and 2.813 percent for homeowners and renters with terms up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant’s financial condition.

    Interest does not begin to accrue until 12 months from the date of the first disaster loan disbursement. SBA disaster loan repayment begins 12 months from the date of the first disbursement.

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

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

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

    The deadline to apply for property damage is Dec. 17, 2024. The deadline to apply for economic injury is July 18, 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 http://www.sba.gov.

    MIL OSI USA News –

  • MIL-OSI Australia: Launch of Albanese Labor Government’s Small Business Cyber Resilience Service

    Source: Australian Treasurer

    The Albanese Labor Government is delivering more support to help small businesses prevent and recover from cyber incidents with today’s launch of the new Small Business Cyber Resilience Service.

    IDCARE, the provider of the Service, will deliver free, tailored one‑on‑one assistance to help small businesses navigate cyber challenges, bolster their cyber resilience and recover from a cyber incident.

    Small businesses across Australia, in both regional and metropolitan areas can access the Service by calling 1800 595 170, or by submitting a request through the online form at http://www.idcare.org/smallbusiness.

    Case management support can also be accessed, including mental health support, to help small businesses bounce back after a cyber incident.

    Nearly 94,000 cyber crimes were reported to the Australian Cyber Security Centre in the 2022–23 financial year.

    The average cost of those crimes to a small business is $46,000 with small businesses having limited ability to absorb these losses and the reputational damage they bring.

    The Small Business Cyber Resilience Service is a key initiative under the 2023–2030 Australian Cyber Security Strategy and is part of the Government’s investment of over $60 million to help small businesses uplift their cyber and digital capabilities.

    This includes $23.4 million for the Cyber Wardens program which provides small businesses with free online training to help identify cyber safety practices they can implement to prevent and protect against digital threats.

    The Government is also investing $7.2 million to establish a voluntary cyber health check program which will allow businesses to undertake a free, tailored self assessment of their cyber security maturity.

    And the $18.6 million for the Digital Solutions program, which helps small businesses adopt digital tools and grasp the opportunities that going online offers.

    Quotes attributable to Minister for Small Business, Julie Collins MP:

    “I know how critical it is for Australia’s small businesses to have the help they need to prevent and recover from cyber incidents.

    “Cyber crimes can have devastating impacts for small businesses, with the average cost of a cyber incident around $46,000.

    “That’s why it’s a pleasure to launch the Albanese Labor Government’s new Small Business Cyber Resilience Service.

    “Australia’s small businesses are now able to contact the service by calling 1800 595 170, or by submitting a request through the online form at http://www.idcare.org/smallbusiness when they are looking to protect themselves from a cyber incident or recovering from one.

    “This is just one way our Government is helping Australia’s 2.5 million small businesses.

    “The Government’s Small Business Statement outlines more than $640 million in targeted supports for small businesses to ease pressure, support small businesses to grow, and level the playing field.”

    Quotes attributable to IDCARE Managing Director, Dr David Lacey:

    “We are enormously grateful for this investment from the Federal Government into cyber resilience for small businesses.

    “For the past 10 years, our team has been working with small businesses across the country after they’ve experienced a scam, identity theft or cyber incident.

    “These are the people who have taken a risk and put their blood, sweat and tears into their idea which forms the backbone of the Australian economy.

    “Being able to further assist these small businesses with their cyber resilience is vitally important and we look forward to providing tailored assistance.”

    MIL OSI News –

  • MIL-OSI Australia: Appointment – Associate Member of the Australian Competition and Consumer Commission

    Source: Australian Treasurer

    The Albanese Government has today reappointed Ms Nerida O’Loughlin PSM as a part‑time associate member of the Australian Competition and Consumer Commission.

    Ms O’Loughlin is the Chair of the Australian Communications and Media Authority (ACMA) and has been reappointed as an ACCC associate member until 13 October 2027.

    Cross appointments between the ACMA and the Australian Competition and Consumer Commission commenced in 2007 to help ensure a consistent approach is taken when competition and communications matters intersect.

    Ms O’Loughlin commenced as Chair of the ACMA on 14 October 2017 and was previously a Deputy Secretary in the Department of Communications from 2011. Ms O’Loughlin led the Digital Television Switchover Program until 2013 and has been responsible for a diverse range of policy, program and project areas.

    This reappointment will continue the high level of skills and experience available to the ACCC, to ensure that the key sectors of our economy are effectively regulated.

    Ms O’Loughlin’s reappointment also continues the Government’s strong record of identifying capable women for senior public sector roles.

    MIL OSI News –

  • MIL-OSI USA: $24.5M Goes to WA Airports For Terminal Improvements

    US Senate News:

    Source: United States Senator for Washington Maria Cantwell

    10.21.24

    $24.5M Goes to WA Airports For Terminal Improvements

    Grants will help fund South Concourse rehabilitation at Sea-Tac, build new passenger boarding bridges at Spokane and Tri-Cities, & modernize baggage claim system in Yakima

    EDMONDS, WA – Today, U.S. Senator Maria Cantwell (D-WA), chair of the Senate Committee on Commerce, Science, and Transportation, announced that four State of Washington airports will receive grants from the Federal Aviation Administration’s (FAA) Airport Terminal Program (ATP) to support infrastructure upgrades and modernization projects. Sen. Cantwell secured a big funding boost for the ATP through the Bipartisan Infrastructure Law (BIL).

    “Serving over 50 million travelers a year, Seattle-Tacoma International Airport is a major gateway for travelers and businesses in the State of Washington and its South Concourse connects the Pacific Northwest to the world,” said Sen. Cantwell. “This funding will make major updates to the 1970’s era facility, enhancing the passenger experience for international travelers and investing in the structural and seismic safety of the concourse, ensuring passenger safety for the next half century.”

    Seattle-Tacoma International Airport will receive $17.5 million to fund a portion of Phase 1 construction for the South Concourse Reconstruction Project including structural, seismic, and building system upgrades. The current South Concourse building was originally built in the early 1970’s and expanded in the early 1980’s. The structure does not meet seismic, fire, and many other current code requirements. This project will upgrade the building to current safety codes. These early work projects will accomplish the significant amount of construction that can occur in advance of any impacts to airplane gates. In particular, the early work will increase passenger safety by strengthening columns and foundations throughout the building.

    “The Tri-Cities Airport is critical to Central Washington’s continued economic growth,” said Sen. Cantwell. “This funding will enable the airport to accommodate larger planes by adding three additional passenger boarding bridges. With a record 872,000 travelers in 2023, this grant will help Tri-Cities Airport keep pace with demand and future growth.”

    Tri-Cities Airport will receive $4 million towards the purchase of three additional passenger boarding bridges to be added to existing gates, as well as expanding the outbound baggage area. Tri-Cities Airport, operated by the Port of Pasco, is the fourth-largest air carrier airport in the state and the largest airport in the southeastern Washington and northeastern Oregon region. The airport has ten nonstop destinations and has increased enplanements by nearly 100,000 in the past five years. Sen. Cantwell’s letter to U.S. Department of Transportation Secretary Pete Buttigieg in support of the project is available HERE.

    “Spokane is on the move — last year the airport welcomed a record 4.13 million travelers,” said Sen. Cantwell. “This funding will help Spokane International Airport eliminate ground boarding at the airport and pursue the airport’s first LEED certified concourse, steps that will improve capacity, accessibility, and sustainability.”

    Spokane International Airport will receive $2 million towards the final phase of the facility’s terminal renovation and expansion (TREX) project, which includes renovating three passenger boarding bridges, and making important utilities and accessibility upgrades. When complete, the project will add six additional ticket counters and three additional gates at Concourse C. The additional capacity is much-needed — Spokane International Airport saw enplanements grow 38 percent between 2013 and 2019. Last year, the airport served 4.13 million passengers, exceeding for the first time the pre-pandemic high of 4.03 million passengers in 2019. Sen. Cantwell’s letter to Sec. Buttigieg in support of the project is available HERE.

    In May, Sen. Cantwell visited Spokane to celebrate completion of the first phase of the project. Since the TREX project was announced, Sen. Cantwell has helped to secure $61.3 million in federal funding for the airport’s expansion. Photos of that event are available HERE.

    “Yakima is a key agriculture and manufacturing hub for our economy and increasing air service is helping the area create more jobs and attract new businesses,” said Sen. Cantwell. “This grant will help Yakima Air Terminal replace and modernize its baggage claim system to improve the passenger experience and keep Central Washingtonians moving.

    Yakima Air Terminal will receive $1 million to replace the airport’s legacy slide baggage chute with a new moving baggage carousel. The Yakima Air Terminal, first constructed in 1950, provides $591 million in economic impact and 2,366 jobs to the city and the surrounding rural counties. Last year the airport added a second set of flights to Seattle, making it more attractive for passengers to travel through their local hometown airport rather than driving. Sen. Cantwell’s letter to Sec. Buttigieg in support of the project is available HERE.

    As chair of the Senate Committee on Commerce, Science, and Transportation, Sen. Cantwell has championed a dramatic increase in federal resources for airport infrastructure improvements like this one. In 2021, Sen. Cantwell worked hard to secure funding for air travel infrastructure nationwide as part of the BIL. With her support, the infrastructure package provided a total of $25 billion for airport improvements, including $5 billion for the Airport Terminal Program – the program from which these grants will be made, $5 billion for Federal Aviation Administration air traffic control facilities, and $15 billion in Airport Infrastructure Grants.

    These critical investments in airports across the state are particularly timely as air travel hits all-time highs. According to the Transportation Security Administration (TSA), in July the agency set a record for most passengers screened in a single day, with more than 3 million travelers screened on July 7.  In late June, TSA screened the most travelers in a single week – 19.5 million. Moreover, seven of the 10 busiest air travel days ever occurred over the past summer, according to TSA.

    MIL OSI USA News –

  • MIL-OSI USA: Senator Peters Tours Genesee County’s IGNITE Initiative to Highlight Funding He Secured to Support Initiative’s Success

    US Senate News:

    Source: United States Senator for Michigan Gary Peters

    FLINT, MI – U.S. Senator Gary Peters (MI) toured the Genesee County Inmate Growth Naturally and Intentionally Through Education (IGNITE) initiative’s facilities today to highlight the need for additional funding to support the initiative’s success. Founded in 2020 by Genesee County Sheriff Christopher R. Swanson, IGNITE has shown to reduce recidivism rates by providing incarcerated individuals with valuable education and skills training opportunities needed to obtain meaningful employment after completing their sentence. In 2022, Peters secured $768,000 in federal funding that enabled the launch of IGNITE. As a member of the Appropriations Committee, Peters is now working to deliver additional resources to support the initiative’s growing success. Most recently, Peters secured $500,000 for IGNITE in the Fiscal Year 2025 Commerce, Justice, Science and Related Agencies Appropriations Act. If passed into law, this funding would be used to modernize the Genesee County Jail’s facilities to improve culinary and computing education classes offered under IGNITE.

    “Reentry initiatives like IGNITE are a proven success. By providing access to education and career training, not only do they significantly lower the chances of individuals returning to the justice system, they also support local law enforcement and help keep our communities safe,” said Senator Peters. “It was rewarding to see the transformational opportunities being provided here in Genesee County to help returning citizens embark on a fresh start on life, and I’ll keep fighting to ensure the initiative has the funding it needs to continue bolstering and expanding its services.”

    “We cannot expect someone to leave the jail and be a better person if we don’t do something different. IGNITE is changing the way we do corrections by transforming lives, and when we transform lives, we transform communities.  This couldn’t be accomplished without support from elected officials like Congressman Kildee and Senator Peters,” said Genesee County Sheriff Christopher R. Swanson.

    Peters was joined by Ilona Curry, a returning citizen and IGNITE graduate who utilized the program’s culinary training opportunities to obtain local employment. 

    Peters is also working to pass his bipartisan Reentry Employment Opportunities (REO) Act, which would protect a critical grant program that supports individuals reintegrating back into their communities after incarceration. Peters’ bill would codify the U.S. Department of Labor’s Reentry Employment Opportunities (REO) program into law, strengthening reentry initiatives that center on offering employment preparation, pre-workforce training, and vocational apprenticeship prospects by equipping individuals transitioning back into their communities after incarceration with the necessary skills to secure meaningful employment. Peters witnessed the REO program’s success firsthand earlier this year while visiting the Detroit Employment Solutions Corporation’s (DESC) Growth Opportunities Program, supported by funding from the REO program, where he heard from current participants how the program has helped them expand their career opportunities and establish economic independence.

    Peters has led numerous efforts to expand access to skills training and apprenticeship opportunities to strengthen local workforce development. Peters has secured federal funding for community colleges throughout Michigan, including Mott Community College, Grand Rapids Community College, and Macomb Community College, to strengthen their skills training programs, create state-of-the-art training facilities, and expand apprenticeship programs. In 2020, Peters’ bipartisan legislation to allow more veterans to use their GI bill benefits toward securing a registered apprenticeship was signed into law. In 2018, Peters’ legislation to expand career and technical education was also signed into law, which strengthens school counselor training and awareness of career and technical education so they can help inform students of post-high school education opportunities outside of the traditional four-year college degree.

    MIL OSI USA News –

  • MIL-OSI USA: Shaheen, Pappas, Acting Secretary of Labor Su Visit Child Care Facility, Host Roundtable on Child Care and Workforce Challenges

    US Senate News:

    Source: United States Senator for New Hampshire Jeanne Shaheen

    (Brentwood, NH) – Today, U.S. Senator Jeanne Shaheen (D-NH), Chair of the U.S. Senate Committee on Small Business and Entrepreneurship, and U.S. Representative Chris Pappas (NH-01), alongside Acting Secretary of Labor Julie Su, visited A Place to Grow and hosted a roundtable discussion at the facility to discuss the first U.S. Department of Labor approved apprenticeship program for early childhood education operations managers and a new report emphasizing the importance of care workers. In March of this year, Shaheen sent a letter to Acting Secretary Su advocating for the establishment of A Place to Grow’s Registered Apprenticeship program for early childhood education (ECE) administrators. Photos from the event can be found here. 

    “I’ve met with child care providers across New Hampshire and all of them have underscored the challenges they face with workforce recruitment and retention,” said Senator Shaheen. “Without affordable child care options, families, the workforce and the overall economic development of our communities suffer. That’s why I was so pleased to join Acting Secretary Su in visiting A Place to Grow where their innovative, new Registered Apprenticeship program for early childhood education administrators provides the training and pathways needed to get workers into the child care industry and keep them there.” 

    “The cost of child care remains among the most pressing issues that families are facing. That’s why providing every federal resource available to families and child care providers in New Hampshire is critical,” said Congressman Chris Pappas. “I’ll keep fighting to cap the amount of money that families pay for child care, strengthen our child care and education workforce, and expand the Child Tax Credit, a middle-class tax cut that helps families keep more of their hard-earned money in their pockets. I was grateful to join Acting Secretary Su, Senator Shaheen, and A Place To Grow owner Jennifer Legere today to hear from folks on the ground doing this work.” 

    “Paid care work is critical economic infrastructure in this country, because safe and dependable care allows working parents and other caregivers to get and keep their jobs while also ensuring safe, quality working conditions for workers who take care of our loved ones,” said Acting Labor Secretary Julie Su. “The Biden-Harris administration is making once-in-a-generation investments creating good jobs and know that without the care economy and all of the talented care workers we have in this country, our economy suffers. I am glad to be in New Hampshire today to highlight this forward-looking program.” 

    Joining Shaheen and Su for the discussion were leaders and New Hampshire residents including: Nicole Heller, Senior Policy Analyst at the New Hampshire Fiscal Policy Institute, MacKenzie Nicholson, Senior Director of New Hampshire MomsRising, Jen Legere, Owner and Founder of A Place to Grow and Kayte Kostinden, Director and Early Childhood Operations Apprentice at A Place to Grow Brentwood.  

    Senator Shaheen has been a leader in advocating for more affordable and accessible child care, including by delivering more than $77 million to New Hampshire through the American Rescue Plan and other COVID relief laws to the Granite State. Since then, Shaheen has urged state and local officials to distribute those federal funds, especially in communities that lack access to child care. In August, Shaheen visited Colebrook Community Child Care Center to discuss challenges and solutions to the child care crisis in rural communities.  

    Earlier this year, Shaheen introduced the Right Start Child Care and Education Act, which would make child care more affordable and accessible for working families by reforming the federal tax code. She also introduced the bipartisan Expanding Child Care for Military Families Act, portions of which have been included in the National Defense Authorization Act for 2025, which has been passed by the Senate Armed Services Committee. Additionally, she helped introduce the Child and Dependent Care Tax Credit Enhancement Act to permanently expand the Child and Dependent Care Tax Credit, which helps households offset their child care costs.

    In April, Shaheen convened a hearing as Chair of the U.S. Senate Small Business and Entrepreneurship Committee to hear testimony from expert witnesses on the child care industry’s broken business model and what Congress can do to support small business child care providers, employees and families. A recent U.S. Small Business Administration (SBA) Office of Advocacy issue brief, in response to data challenges raised at the hearing, details the role of small businesses in the child care industry and fills data gaps in child care industry research.

    Earlier this Congress, Shaheen helped introduce the Child Care Stabilization Act, which would provide additional federal child care stabilization funding—which was provided in the American Rescue Plan—and ensure that child care providers can keep their doors open and continue serving children and families in every part of the country. Shaheen joined Senator Patty Murray (D-WA) to introduce the Child Care for Working Families Act, which would provide affordable child care for all working families, expand access to preschool programs and increase wages for early childhood workers. She also joined U.S. Senators Amy Klobuchar (D-MN) and Dan Sullivan (R-AK) in reintroducing the bipartisan Childcare Workforce and Facilities Act to address the national shortage of affordable, quality child care, especially in rural communities. In the government funding bill for fiscal year (FY) 2024, Senator Shaheen worked to include a $1 billion increase for early education, including a $725 million increase to $8.75 billion for Child Care and Development Block Grants to states and a $275 million increase to Head Start, funding the program at more than $12 billion for FY 2024. The law additionally includes $315 million for Preschool Development Grants.

    MIL OSI USA News –