Commerce – Page 475 – NewzIntel.com

MIL-Evening Report: Let’s tax carbon: Ross Garnaut on why the time is right for a second shot at carbon pricing

Source: The Conversation (Au and NZ) – By Ross Garnaut, Professorial Research Fellow in Economics, The University of Melbourne

Damitha Jayawardena/Shutterstock

Australia now has a government and parliament wanting timely transition to net zero. We have a government and parliament wanting to build Australia as the renewable energy superpower of the zero-carbon world economy. For the time being, we have favourable international settings for using our opportunity.

The government of Australia has embraced this superpower narrative, taken some big steps towards supporting its emergence, and articulated sound principles for guiding further policy development.

But Australians in business and the community wanting to make large efforts to turn opportunity into reality find themselves in a tangle of policy uncertainty and contradiction.

The source of the problem is the abolition of carbon pricing in 2014. Since then, the Commonwealth government has worked within constraints that rule out success.

We can make a start towards net zero and becoming a renewable energy superpower without moving the constraints, but we can’t get far. This is a problem for any government of Australia, and not only for the current Labor government. We will not rise sustainably out of the post-pandemic dog days until we get energy policy right.

Striking the right balance

Striking the right balance between state intervention and market exchange is always essential for successful economic development, in all places.

The market generally delivers goods and services more cost-effectively than the state where there is genuine competition among suppliers and purchasers of goods and services.

The difference is especially large and important at a time of structural change and uncertainty. State decisions inevitably tend towards continuation on established paths and slow response to new opportunities.

Australia will not make use of more than a small fraction of the superpower opportunities available to it without immense contributions from an innovative, competitive private business sector.

So we have to design energy and related markets that provide the widest possible scope for competition among enterprises within clear rules understood in advance of investment decisions by all market participants.

The state has to do well the things that only the state can do. Because government capacity is a finite resource, it is much more likely that it will do the essential things well if it doesn’t try to do the things that markets do well.

The state must define the boundaries between the services that it delivers and those to be delivered by the market.

In the electricity sector, government must take responsibility for design of the market rules and compliance with them. It must provide the natural monopoly services of electricity transmission and hydrogen transportation and storage. It must take ultimate responsibility for system security and reliability.

For any market to work, individual market participants must be blocked by regulation from damaging others through their business decisions, or subject to a tax equal to the costs they impose on others. And they must be rewarded for large benefits that they confer on others.

This is essential economics. Its understatement in Productivity Commission and financial media commentary on energy and climate policy discussion over the past decade reveals the debasement of Australian political culture that gave us the dog days.

It has been politically incorrect to tell the truth out loud.

It’s time for carbon pricing

A crucial element of post-2030 market design is introduction of a green premium for zero-carbon energy.

It is obviously necessary for low-cost decarbonisation and expansion of the electricity sector and building Australia as a renewable energy superpower. The green premium is crucial for securing international market access for the zero-carbon export industries.

One of the dog days constraints on policy is that there should be no mandatory demands on private investors. Those constraints must be broken for the green premium to reflect the social cost of carbon, as it must if we are to achieve net zero by 2050 and build Australia as the renewable energy superpower.

The economically efficient way of achieving the premium is carbon pricing. It would be most efficient within an economy-wide system, although it could be introduced initially for the electricity sector and extended to other industries later.

Investors now need to know soon that there will be a premium reasonably related to the social cost of carbon after the Renewable Energy Target ends in 2030.

What matters for the superpower industries is the green premiums for which they are eligible in other countries. Pending the emergence of appropriate premiums, the Commonwealth is proposing payments from the budget.

That is appropriate. It can get the early movers started. It would be expensive if it continued for long. The superpower industries will grow rapidly if they have access to premiums corresponding to the social cost of carbon. Over time, payments from the Australian budget will be replaced by market premiums in destination countries.

There are several possible forms of carbon pricing. The system operating in Australia from 2012 to 2014 was economically and environmentally efficient.

It would have been linked to the EU Emissions Trading System from July 1 2014 if it had not been abolished the day before. The Australian carbon price would be equal to the European price. We would be introducing a European-type Carbon Border Adjustment Mechanism to ensure that Australian producers were not disadvantaged by competition in the domestic market from suppliers who were not subject to similar carbon constraints. The ETS (emissions trading scheme) would be contributing around 2% of GDP to public revenues – going a substantial part of the way to answering the daunting budget challenge to restoration of Australian prosperity.

Part of that increased revenue could support payments to power users to ensure there was no increase in power prices to users until expansion of renewable generation and storage had brought costs down – along the lines of the A$300 per household introduced in the 2024 budget, but larger.

The arrangements would provide automatic access for zero-carbon Australian goods to the high-priced European market. There would be no need to provide for a green premium for sales to Europe from the Australian market. The green premiums in other markets would at first need to be covered, as they are now, from the Australian public revenue.

A carbon solutions levy

Rod Sims (former chair of the Australian Competition and Consumer Commission) and I have suggested a carbon solutions levy. It is administratively simpler than the ETS. It would initially raise much more revenue.

We propose exemption for coal and gas exports to countries in which Australian zero-carbon exports attract a premium comparable to the EU carbon price, even if it is not generated through an ETS.

We would hope that if the carbon solutions levy were to be introduced from 2030, our major trading partners would by that time have introduced green premiums that justify exemption from the levy for coal and gas exports to those countries.

The European Union would be exempt from the beginning. The Northeast Asian economies are moving towards eventual justification of exemption. China now has a country-wide emissions trading system.

The carbon price in July 2024 is about A$21 per tonne, having increased by 50% since early in the year. The price is expected to continue rising until it is playing a major role in transformation of Chinese industry.

Incidentally, China undertook to the United Nations Framework Convention on Climate Change that its emissions would peak by 2030, but its rapid expansion of renewable energy generation, electric vehicles and zero-carbon industrial technologies suggest that the peak may have come in 2023.

Japan is working on direct budgetary support for importers of zero-carbon products which could pass through into a premium for zero-carbon exports from Australia.

During a visit in April 2024, I was advised that the Japanese government is working towards issue of “green bonds” to pay for the premium. A carbon tax from 2035 would meet the cost of servicing and retiring the bonds.

Korea and Taiwan are introducing their own mechanisms for supporting premiums for zero-carbon imports.

One initial criticism of the carbon solutions levy is that it would cause leakage of Australian exports to competing suppliers of gas and coal. There would be some leakage, alongside substantial transfers from rents to the public revenues, and for metallurgical coal in particular, some increase in export prices.

The price increase would introduce an element of green premium for Australian green iron exports. The Superpower Institute (a non-profit research organisation founded by Sims and I) has commissioned the Centre of Policy Studies at Victoria University to quantify the extent of leakage, transfers from rent and higher export prices. The results will be available for public discussion early in 2025. The study will also calculate the effect of the levy on Australian public finances, real incomes and real consumption.

Regional considerations

Australia’s main competitor in regional coal markets is Indonesia. Its main competitors in gas markets are Papua New Guinea, East Timor, Indonesia, Brunei and the Middle East petroleum producers.

No informed person would suggest that there could be an economic problem with leakage to the Middle East: Saudi Arabia and the small Gulf states extract revenue from petroleum exports at much higher rates per dollar than Australia would after imposition of the levy.

There is a case in the Australian national interest for not seeing expansion of export sales from Papua New Guinea and East Timor as being entirely a waste.

But in their national interest and ours, I suggest that we seek to negotiate a four-way agreement on climate and energy with Indonesia, East Timor and Papua New Guinea.

We would all impose carbon solutions levy-type levies at similar rates. This would be a major source of revenue for all of us.

Participation of Indonesia removes leakage of coal exports. Indonesia already has an emissions trading scheme, although it generates a carbon price of only a few dollars per tonne.

It may choose to remove other imposts on fossil carbon exports at the time of introduction of new carbon-related measures – such as the requirement to make 35% of coal exports available at prices well below international prices for domestic power generation.

Participation of the four countries removes the leakage issue for gas. The four neighbours would cooperate in major development programs based on expansion of zero-carbon energy supply and goods production.

There is active discussion in Indonesia of archipelago-wide electricity transmission infrastructure to allow the superior renewable energy resources of the outer islands – Papua, Nusa Tenggara, Sulawesi, Kalimantan, Sumatra – to contribute to decarbonisation and growth of zero-carbon industry everywhere, including in the Java heartland.

The Indonesian grid would run close to neighbouring Australia, Papua New Guinea, East Timor, East and West Malaysia and the Philippines. It would be the geopolitically practical means of linking Australia and Singapore, as envisaged in the SunCable project in the Northern Territory.

The Indonesian national grid could link to the Australian Sungrid discussed in my book The Superpower Transformation in Darwin and the Pilbara.

The alternatives to carbon pricing are weak

The alternatives to economy-wide carbon pricing are likely to turn out to be short-lived expedients that lead sooner rather than later to the return of today’s incoherence and underperformance in energy and climate policy and performance.

The state must provide reliability of power supply to the general population.

The Commonwealth government can do this without distorting competitive electricity markets by establishing an energy reserve I have proposed in my book The Superpower Transformation.

The superpower industries depend on electricity and hydrogen markets operating efficiently and embodying carbon prices. Otherwise the market design issues relevant to their development are similar to those for electricity.

Negative carbon externalities need to be corrected by taxation or alternative carbon pricing mechanisms. Positive externalities from innovation should be rewarded.

Positive innovation externalities are important in the introduction of new industries, technologies and business models for the zero-carbon economy.

Economy-wide carbon pricing at the social cost of carbon is essential to getting the balance right between state intervention and market exchange.

Once it is in place with fiscal rewards for innovation, the government can let businesses decide which new industries and technologies warrant investment.

Once carbon pricing is known to be coming into place reasonably soon, there is no further need for government underwriting of investment in power generation.

There is no need to include a climate trigger in assessment of a project of any kind: if it emits carbon, it will pay for the climate damage it does.

There is no need for government to take a view on climate grounds about the merits of nuclear power generation. It is zero-emissions generation and, like renewable energy, not subject to the carbon price. If it can compete with other forms of generation, it will find a place in private investment decisions on the energy mix.

There is no need for government investment in nuclear power generation. Private investors will have the same incentives to invest in nuclear as in other zero-carbon generation technologies.

There will be no need for the government to take a view on incentives for carbon capture and storage. If it is effective and emissions are actually reduced, carbon payments will be correspondingly reduced.

The carbon price will allow private investors to get on with the job of expanding renewable energy supply at a rapid pace and decarbonising the economy more generally.

This is an edited extract from Ross Garnaut’s new book, Let’s Tax Carbon: And Other Ideas for a Better Australia.

Ross Garnaut is a Director and shareholder of Zen Energy. Together with Rod Sims, Ross is a co-founder and Director of The Superpower Institute, a not for profit think tank.

– ref. Let’s tax carbon: Ross Garnaut on why the time is right for a second shot at carbon pricing – https://theconversation.com/lets-tax-carbon-ross-garnaut-on-why-the-time-is-right-for-a-second-shot-at-carbon-pricing-241806

MIL OSI Analysis – EveningReport.nz –

January 24, 2025

MIL-OSI: Capital City Bank Group, Inc. Reports Third Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

TALLAHASSEE, Fla., Oct. 22, 2024 (GLOBE NEWSWIRE) — Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income attributable to common shareowners of $13.1 million, or $0.78 per diluted share, for the third quarter of 2024 compared to $14.2 million, or $0.83 per diluted share, for the second quarter of 2024, and $12.7 million, or $0.74 per diluted share, for the third quarter of 2023.

QUARTER HIGHLIGHTS (3^rdQuarter 2024 versus 2^ndQuarter 2024)

Income Statement

Tax-equivalent net interest income totaled $40.3 million compared to $39.3 million for the prior quarter
- Net interest margin increased 10 basis points to 4.12% (earning asset yield up 7 basis points and total deposit cost down 3 basis points to 92 basis points)
Stable credit quality metrics and credit loss provision – net loan charge-offs were 19 basis points (annualized) of average loans – allowance coverage ratio increased to 1.11% at September 30, 2024
Noninterest income remained stable, decreasing $0.1 million, or 0.5%, and reflected a $0.4 million decline in mortgage banking revenues partially offset by a $0.3 million increase in wealth management fees
Noninterest expense increased $2.5 million, or 6.1%, due to increases in compensation (annual merit and health care) and other expenses (professional and processing). Other expense also included a $0.5 million expense related to a counterparty payment for our VISA Class B share swap

Balance Sheet

Loan balances decreased $33.2 million, or 1.2% (average), and declined $7.1 million, or 0.3% (end of period)
Deposit balances decreased by $69.0 million, or 1.9% (average), and decreased $29.5 million, or 0.8% (end of period), reflecting the seasonal decline in our public fund balances
Tangible book value per diluted share (non-GAAP financial measure) increased $0.91, or 4.2%

Commenting on the company’s results, William G. Smith, Jr., Capital City Bank Group Chairman, President, and CEO, said, “I am pleased with what we accomplished in the quarter to enhance shareowner value – 4.2% growth in tangible book value per share and a 9.5% increase in the dividend. Earnings for the quarter remained stable driven by margin expansion, stable credit, and core deposit growth. Looking ahead, I remain optimistic about our full year financial performance and beyond, driven by our balance sheet flexibility, revenue diversification, and focus on continuous improvement.”

Discussion of Operating Results

Net Interest Income/Net Interest Margin

Tax-equivalent net interest income for the third quarter of 2024 totaled $40.2 million, compared to $39.3 million for the second quarter of 2024, and $39.3 million for the third quarter of 2023. Compared to the second quarter of 2024, the increase was primarily due to increases in loan and investment interest income and a decrease in deposit interest expense, partially offset by a decrease in overnight funds interest income. One additional calendar day also contributed to the increase. Favorable repricing of existing adjustable/fixed rate loans at higher rates drove the increase in loan interest income. The increase in investment interest income was due to the reinvestment of maturing securities at higher rates. The decrease in deposit interest expense was attributable to lower average NOW account balances and average rate, in addition to lower rates on promotional deposit products.

Compared to the third quarter of 2023, the $0.9 million increase was primarily driven by an increase in loan interest income and to a lesser extent overnight funds interest income, partially offset by an increase in deposit interest expense. For the first nine months of 2024, tax-equivalent net interest income totaled $118.0 million compared to $120.1 million for the same period of 2023 with the decrease primarily attributable to an increase in deposit interest expense and a decrease in investment interest income, partially offset by an increase in loan interest income.

Our net interest margin for the third quarter of 2024 was 4.12%, an increase of 10 basis points over the second quarter of 2024 and an increase of nine basis points over the third quarter of 2023. For the month of September 2024, our net interest margin was 4.16%. For the first nine months of 2024, our net interest margin was 4.05% compared to 4.04% for the same period of 2023. The increase over the second quarter of 2024 reflected favorable loan and investment repricing, partially offset by a lower overnight funds rate. The increase over both prior year periods reflected higher loan rates partially offset by a higher cost of deposits. For the third quarter of 2024, our cost of funds was 93 basis points, a decrease of four basis points from the second quarter of 2024 and an increase of 27 basis points over the third quarter of 2023. Our cost of deposits (including noninterest bearing accounts) was 92 basis points, 95 basis points, and 58 basis points, respectively, for the same periods.

Provision for Credit Losses

We recorded a provision expense for credit losses of $1.2 million for the third quarter of 2024, comparable to the second quarter of 2024 and a $1.2 million decrease from the third quarter of 2023. The provision expense for the third quarter of 2024 reflected a $0.7 million increase in the provision for loans held for investment (“HFI”), a $0.6 million provision benefit for unfunded loan commitments, and a $0.1 million provision benefit for debt securities. The increase in the provision for loans HFI was primarily due to loan grade migration and slightly higher loss rates partially offset by lower loan balances. A lower level of commitments drove the provision benefit for unfunded loan commitments. For the first nine months of 2024, we recorded a provision expense for credit losses of $3.3 million compared to $7.7 million for the same period of 2023 with the decrease driven primarily by lower new loan volume in 2024. We discuss the allowance for credit losses further below.

Noninterest Income and Noninterest Expense

Noninterest income for the third quarter of 2024 totaled $19.5 million compared to $19.6 million for the second quarter of 2024 and $16.7 million for the third quarter of 2023. The slight decrease from the second quarter of 2024 reflected a $0.4 million decrease in mortgage banking revenues partially offset by a $0.3 million increase in wealth management fees. Compared to the third quarter of 2023, the $2.8 million increase was primarily attributable to a $2.1 million increase in mortgage banking revenues driven by a higher gain on sale margin, and a $0.8 million increase in wealth management fees.

For the first nine months of 2024, noninterest income totaled $57.2 million compared to $54.5 million for the same period of 2023, primarily attributable to a $3.2 million increase in mortgage banking revenues and a $1.8 million increase in wealth management fees, partially offset by a $2.1 million decrease in other income. The increase in mortgage banking revenues was due to a higher gain on sale margin. The increase in wealth management fees was primarily driven by higher retail brokerage fees and to a lesser extent trust fees, primarily attributable to both new account growth and higher account values driven by higher market returns. The decrease in other income was primarily attributable to a $1.4 million gain from the sale of mortgage servicing rights in the second quarter of 2023, and to a lesser extent a decrease in vendor bonus income and miscellaneous income.

Noninterest expense for the third quarter of 2024 totaled $42.9 million compared to $40.4 million for the second quarter of 2024 and $39.1 million for the third quarter of 2023. The $2.5 million increase over the second quarter of 2024 was primarily due to a $1.4 million increase in compensation and a $1.0 million increase in other expense. The increase in compensation reflected higher salary expense of $0.9 million and associate benefit expense of $0.5 million. The increase in salary expense was driven by annual merit adjustments, and the increase in other associate benefit expense was primarily attributable to higher health insurance cost, and to a lesser extent higher stock-based compensation expense. The increase in other expense was primarily due to a $0.5 million increase in professional fees, processing fees of $0.3 million, and higher miscellaneous expense which included a $0.5 million payment to the counterparty for our VISA Class B share swap due to revision to the share conversion rate related to additional funding by VISA of the merchant litigation reserve. Compared to the third quarter of 2023, the $3.8 million increase was primarily attributable to a $2.8 million increase in compensation expense and a $0.9 million increase in other expense. The unfavorable variance in compensation expense reflected higher salary expense of $2.2 million and associate benefit expense of $0.6 million, with the salary variance driven by merit adjustments and the associate benefit expense variance reflective of higher health insurance cost. Further, salary expense was unfavorably impacted by lower realized loan cost (credit offset to salary expense) of $1.0 million which reflected lower loan volume in 2024. The increase in other expense was attributable to a $0.6 million increase in professional fees and higher miscellaneous expense due to the aforementioned $0.5 million share swap payment in the third quarter of 2024.

For the first nine months of 2024, noninterest expense totaled $123.5 million compared to $117.1 million for the same period of 2023 with the $6.4 million increase primarily attributable to increases in compensation expense of $4.6 million, occupancy expense of $0.5 million, and other expense of $1.3 million. The increase in compensation expense reflected a $3.9 million increase in salary expense and a $0.7 million increase in associate benefit expense. The increase in salary expense was primarily due to a lower level of realized loan cost (credit offset to salary expense) of $2.9 million (lower new loan volume) and higher base salary expense of $1.9 million (primarily annual merit raises), partially offset by lower commission expense of $1.3 million (lower residential mortgage volume). The increase in occupancy was primarily attributable to an increase in maintenance agreement expense (security upgrades and addition of interactive teller machines). The increase in other expense reflected a $1.8 million gain from the sale of a banking office in the first quarter of 2023 and higher miscellaneous expense due to the aforementioned $0.5 million share swap payment in 2024, that was partially offset by lower pension plan expense (service cost) of $1.0 million.

Income Taxes

We realized income tax expense of $3.0 million (effective rate of 19.1%) for the third quarter of 2024 compared to $3.2 million (effective rate of 18.5%) for the second quarter of 2024 and $3.0 million (effective rate of 20.7%) for the third quarter of 2023. For the first nine months of 2024, we realized income tax expense of $9.7 million (effective rate of 20.1%) compared to $10.1 million (effective rate of 20.5%) for the same period of 2023. The decrease in our effective tax rate from both prior year periods was primarily due to a higher level of tax benefit accrued from investments in solar tax credit equity funds. Absent discrete items, we expect our annual effective tax rate to approximate 20-21% for 2024.

Discussion of Financial Condition

Earning Assets

Average earning assets totaled $3.883 billion for the third quarter of 2024, a decrease of $51.9 million, or 1.3%, from the second quarter of 2024, and an increase of $59.4 million, or 1.6%, over the fourth quarter of 2023. The change for both prior periods was driven by variances in deposit balances (see below – Deposits). Compared to the second quarter of 2024, the change in the earning asset mix reflected a $33.2 million decrease in loans HFI, a $11.4 million decline in investment securities, and a $5.6 million decrease increase in overnight funds sold. Compared to the fourth quarter of 2023, the change in the earning asset mix reflected a $157.1 million increase in overnight funds that was partially offset by a $17.7 million decrease in loans HFI, a $54.7 million decrease in investment securities and a $25.2 million decline in loans held for sale.

Average loans HFI decreased $33.2 million, or 1.2%, from the second quarter of 2024 and decreased $17.7 million, or 0.7%, from the fourth quarter of 2023. Compared to the second quarter of 2024, the decrease was driven by a $19.4 million decrease in consumer loans (primarily indirect auto), commercial loans of $13.2 million, and commercial real estate loans of $7.7 million, partially offset by a $7.4 million increase in residential real estate loans. Compared to the fourth quarter of 2023, the decrease was primarily attributable to a $54.5 million decrease in consumer loans (primarily indirect auto) and commercial loans of $24.2 million (primarily tax-exempt loans) that was partially offset by a $59.2 million increase in residential real estate loans.

Period end loans HFI decreased $7.1 million, or 0.3%, from the second quarter of 2024 and decreased $50.8 million, or 1.9%, from the fourth quarter of 2023. Compared to the second quarter of 2024, the decline reflected a $20.9 million decrease in consumer loans (primarily indirect auto), a $10.4 million decrease in commercial loans, and a $3.2 million decline in commercial real estate loans, partially offset by a $10.9 million increase in residential real estate loans and a $18.1 million increase in construction loans. The decrease from the fourth quarter of 2023 was primarily attributable to a $57.7 million decrease in consumer loans (primarily indirect auto), a $30.6 million decline in commercial loans, and a $5.5 million decrease in commercial real estate loans, partially offset by a $22.2 million increase in residential real estate loans and a $22.8 million increase in construction real estate loans.

Allowance for Credit Losses

At September 30, 2024, the allowance for credit losses for loans HFI totaled $29.8 million compared to $29.2 million at June 30, 2024 and $29.9 million at December 31, 2023. Activity within the allowance is provided on Page 9. The increase in the allowance over June 30, 2024 was primarily attributable to slightly higher forecasted unemployment rate utilized in calculating loan loss rates and loan grade migration (see above – Provision for Credit Losses). Net loan charge-offs were 19 basis points of average loans for the third quarter of 2024 versus 18 basis points for the second quarter of 2024. At September 30, 2024, the allowance represented 1.11% of loans HFI compared to 1.09% at June 30, 2024, and 1.10% at December 31, 2023.

Credit Quality

Nonperforming assets (nonaccrual loans and other real estate) totaled $7.2 million at September 30, 2024 compared to $6.2 million at June 30, 2024 and $6.2 million at December 31, 2023. At September 30, 2024, nonperforming assets as a percent of total assets equaled 0.17%, compared to 0.15% at June 30, 2024 and 0.15% at December 31, 2023. Nonaccrual loans totaled $6.6 million at September 30, 2024, a $1.1 million increase over June 30, 2024 and a $0.3 million increase over December 31, 2023. Further, classified loans totaled $25.5 million at September 30, 2024, a $0.1 million decrease from June 30, 2024 and a $3.3 million increase over December 31, 2023.

Deposits

Average total deposits were $3.572 billion for the third quarter of 2024, a decrease of $69.0 million, or 1.9%, from the second quarter of 2024 and an increase of $23.5 million, or 0.7%, over the fourth quarter of 2023. Compared to the second quarter of 2024, the decrease was primarily attributable to lower NOW account balances primarily due to the seasonal decline in our public fund balances. The increase over the fourth quarter of 2023 reflected growth in both money market and certificate of deposit balances which reflected a combination of balances migrating from savings and noninterest bearing accounts, in addition to receiving new deposits from existing and new clients via various deposit strategies.

At September 30, 2024, total deposits were $3.579 billion, a decrease of $29.5 million, or 0.8%, from June 30, 2024, and a decrease of $122.7 million, or 3.3%, from December 31, 2023. The decrease from June 30, 2024 was primarily due to lower noninterest bearing, money market, and savings account balances. The decrease from December 31, 2023 was primarily due to lower NOW account balances, primarily due to the seasonal decline in our public funds, partially offset by higher money market and certificate of deposit balances from both new and existing clients. Total public funds balances were $516.2 million at September 30, 2024, $575.0 million at June 30, 2024, and $709.8 million at December 31, 2023.

Liquidity

The Bank maintained an average net overnight funds (i.e., deposits with banks plus FED funds sold less FED funds purchased) sold position of $256.9 million in the third quarter of 2024 compared to $262.4 million in the second quarter of 2024 and $99.8 million in the fourth quarter of 2023. Compared to the second quarter of 2024, the decrease reflected lower average deposits (primarily seasonal public funds) that was substantially offset by a decline in average loans. Compared to the fourth quarter of 2023, the increase was primarily driven by higher average deposits and lower average investments.

At September 30, 2024, we had the ability to generate approximately $1.522 billion (excludes overnight funds position of $262 million) in additional liquidity through various sources including various federal funds purchased lines, Federal Home Loan Bank borrowings, the Federal Reserve Discount Window, and brokered deposits.

We also view our investment portfolio as a liquidity source as we have the option to pledge securities in our portfolio as collateral for borrowings or deposits, and/or to sell selected securities in our portfolio. Our portfolio consists of debt issued by the U.S. Treasury, U.S. governmental agencies, municipal governments, and corporate entities. At September 30, 2024, the weighted-average maturity and duration of our portfolio were 2.51 years and 2.17 years, respectively, and the available-for-sale portfolio had a net unrealized after-tax loss of $15.5 million.

Capital

Shareowners’ equity was $476.5 million at September 30, 2024 compared to $461.0 million at June 30, 2024 and $440.6 million at December 31, 2023. For the first nine months of 2024, shareowners’ equity was positively impacted by net income attributable to shareowners of $39.8 million, a $8.7 million decrease in the net unrealized loss on available for sale securities, net adjustments totaling $0.9 million related to transactions under our stock compensation plans, and stock compensation accretion of $1.1 million. Shareowners’ equity was reduced by a common stock dividend of $11.0 million ($0.65 per share), the repurchase of common stock of $2.3 million (82,540 shares), a $0.6 million increase in the fair value of the interest rate swap related to subordinated debt, and a $0.7 million reclassification to temporary equity.

At September 30, 2024, our total risk-based capital ratio was 17.97% compared to 17.50% at June 30, 2024 and 16.57% at December 31, 2023. Our common equity tier 1 capital ratio was 14.88%, 14.44%, and 13.52%, respectively, on these dates. Our leverage ratio was 10.89%, 10.51%, and 10.30%, respectively, on these dates. At September 30, 2024, all our regulatory capital ratios exceeded the thresholds to be designated as “well-capitalized” under the Basel III capital standards. Further, our tangible common equity ratio (non-GAAP financial measure) was 9.28% at September 30, 2024 compared to 8.91% and 8.26% at June 30, 2024 and December 31, 2023, respectively. If our unrealized held-to-maturity securities losses of $12.9 million (after-tax) were recognized in accumulated other comprehensive loss, our adjusted tangible capital ratio would be 9.00%.

About Capital City Bank Group, Inc.

Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $4.2 billion in assets. We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards, securities brokerage services and financial advisory services, including the sale of life insurance, risk management and asset protection services. Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 63 banking offices and 105 ATMs/ITMs in Florida, Georgia and Alabama. For more information about Capital City Bank Group, Inc., visit http://www.ccbg.com.

FORWARD-LOOKING STATEMENTS

Forward-looking statements in this Press Release are based on current plans and expectations that are subject to uncertainties and risks, which could cause our future results to differ materially. The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “vision,” “goal,” and similar expressions are intended to identify forward-looking statements. The following factors, among others, could cause our actual results to differ: our ability to successfully manage credit risk, interest rate risk, liquidity risk, and other risks inherent to our industry; the effects of changes in the level of checking or savings account deposits and the competition for deposits on our funding costs, net interest margin and ability to replace maturing deposits and advances; legislative or regulatory changes; adverse developments in the financial services industry; inflation, interest rate, market and monetary fluctuations; uncertainty in the pricing of residential mortgage loans that we sell, as well as competition for the mortgage servicing rights related to these loans; interest rate risk and price risk resulting from retaining mortgage servicing rights and the effects of higher interest rates on our loan origination volumes; changes in monetary and fiscal policies of the U.S. Government; the cost and effects of cybersecurity incidents or other failures, interruptions, or security breaches of our systems or those of our customers or third-party providers; the effects of fraud related to debit card products; the accuracy of our financial statement estimates and assumptions; changes in accounting principles, policies, practices or guidelines; the frequency and magnitude of foreclosure of our loans; the effects of our lack of a diversified loan portfolio; the strength of the local economies in which we operate; our ability to declare and pay dividends; structural changes in the markets for origination, sale and servicing of residential mortgages; our ability to retain key personnel; the effects of natural disasters (including hurricanes), widespread health emergencies (including pandemics), military conflict, terrorism, civil unrest or other geopolitical events; our ability to comply with the extensive laws and regulations to which we are subject; the impact of the restatement of our previously issued consolidated statements of cash flows; any deficiencies in the processes undertaken to effect these restatements and to identify and correct all errors in our historical financial statements that may require restatement; any inability to implement and maintain effective internal control over financial reporting and/or disclosure control or inability to remediate our existing material weaknesses in our internal controls deemed ineffective; the willingness of clients to accept third-party products and services rather than our products and services; technological changes; the outcomes of litigation or regulatory proceedings; negative publicity and the impact on our reputation; changes in consumer spending and saving habits; growth and profitability of our noninterest income; the limited trading activity of our common stock; the concentration of ownership of our common stock; anti-takeover provisions under federal and state law as well as our Articles of Incorporation and our Bylaws; other risks described from time to time in our filings with the Securities and Exchange Commission; and our ability to manage the risks involved in the foregoing. Additional factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as amended, and our other filings with the SEC, which are available at the SEC’s internet site (http://www.sec.gov). Forward-looking statements in this Press Release speak only as of the date of the Press Release, and we assume no obligation to update forward-looking statements or the reasons why actual results could differ, except as may be required by law.

USE OF NON-GAAP FINANCIAL MEASURES
Unaudited

We present a tangible common equity ratio and a tangible book value per diluted share that removes the effect of goodwill and other intangibles resulting from merger and acquisition activity. We believe these measures are useful to investors because it allows investors to more easily compare our capital adequacy to other companies in the industry.

The GAAP to non-GAAP reconciliations are provided below.

(Dollars in Thousands, except per share data)		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023
Shareowners’ Equity (GAAP)		$	476,499	$	460,999	$	448,314	$	440,625	$	419,706
Less: Goodwill and Other Intangibles (GAAP)			92,813		92,853		92,893		92,933		92,973
Tangible Shareowners’ Equity (non-GAAP)	A		383,686		368,146		355,421		347,692		326,733
Total Assets (GAAP)			4,225,316		4,225,695		4,259,922		4,304,477		4,138,287
Less: Goodwill and Other Intangibles (GAAP)			92,813		92,853		92,893		92,933		92,973
Tangible Assets (non-GAAP)	B	$	4,132,503	$	4,132,842	$	4,167,029	$	4,211,544	$	4,045,314
Tangible Common Equity Ratio (non-GAAP)	A/B		9.28%		8.91%		8.53%		8.26%		8.08%
Actual Diluted Shares Outstanding (GAAP)	C		16,980,686		16,970,228		16,947,204		17,000,758		16,997,886
Tangible Book Value per Diluted Share (non-GAAP)	A/C	$	22.60	$	21.69	$	20.97	$	20.45	$	19.22

CAPITAL CITY BANK GROUP, INC.
EARNINGS HIGHLIGHTS
*Unaudited*

		Three Months Ended						Nine Months Ended
(Dollars in thousands, except per share data)		Sep 30, 2024		Jun 30, 2024		Sep 30, 2023		Sep 30, 2024		Sep 30, 2023
EARNINGS
Net Income Attributable to Common Shareowners	$	13,118	$	14,150	$	12,655	$	39,825	$	40,539
Diluted Net Income Per Share	$	0.78	$	0.83	$	0.74	$	2.35	$	2.38
PERFORMANCE
Return on Average Assets (annualized)		1.24	%	1.33	%	1.19	%	1.26	%	1.26	%
Return on Average Equity (annualized)		10.87		12.23		11.74		11.39		13.00
Net Interest Margin		4.12		4.02		4.03		4.05		4.04
Noninterest Income as % of Operating Revenue		32.67		33.30		29.87		32.69		31.25
Efficiency Ratio		71.81	%	68.61	%	69.88	%	70.49	%	67.07	%
CAPITAL ADEQUACY
Tier 1 Capital		16.77	%	16.31	%	15.11	%	16.77	%	15.11	%
Total Capital		17.97		17.50		16.30		17.97		16.30
Leverage		10.89		10.51		9.98		10.89		9.98
Common Equity Tier 1		14.88		14.44		13.26		14.88		13.26
Tangible Common Equity ⁽¹⁾		9.28		8.91		8.08		9.28		8.08
Equity to Assets		11.28	%	10.91	%	10.14	%	11.28	%	10.14	%
ASSET QUALITY
Allowance as % of Non-Performing Loans		452.64	%	529.79	%	619.58	%	452.64	%	619.58	%
Allowance as a % of Loans HFI		1.11		1.09		1.08		1.11		1.08
Net Charge-Offs as % of Average Loans HFI		0.19		0.18		0.17		0.20		0.16
Nonperforming Assets as % of Loans HFI and OREO		0.27		0.23		0.17		0.27		0.17
Nonperforming Assets as % of Total Assets		0.17	%	0.15	%	0.11	%	0.17	%	0.11	%
STOCK PERFORMANCE
High	$	36.67	$	28.58	$	33.44	$	36.67	$	36.86
Low		26.72		25.45		28.64		25.45		28.03
Close	$	35.29	$	28.44	$	29.83	$	35.29	$	29.83
Average Daily Trading Volume		37,151		29,861		26,774		32,720		33,936

⁽¹⁾ Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 6.

CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
*Unaudited*

	2024										2023
(Dollars in thousands)	Third Quarter				Second Quarter			First Quarter			Fourth Quarter			Third Quarter
ASSETS
Cash and Due From Banks	$	83,431		$	75,304		$	73,642		$	83,118		$	72,379
Funds Sold and Interest Bearing Deposits		261,779			272,675			231,047			228,949			95,119
Total Cash and Cash Equivalents		345,210			347,979			304,689			312,067			167,498

Investment Securities Available for Sale		336,187			310,941			327,338			337,902			334,052
Investment Securities Held to Maturity		561,480			582,984			603,386			625,022			632,076
Other Equity Securities		6,976			2,537			3,445			3,450			3,585
Total Investment Securities		904,643			896,462			934,169			966,374			969,713

Loans Held for Sale		31,251			24,022			24,705			28,211			34,013

Loans Held for Investment (“HFI”):
Commercial, Financial, & Agricultural		194,625			204,990			218,298			225,190			221,704
Real Estate – Construction		218,899			200,754			202,692			196,091			197,526
Real Estate – Commercial		819,955			823,122			823,690			825,456			828,234
Real Estate – Residential		1,023,485			1,012,541			1,012,791			1,001,257			966,512
Real Estate – Home Equity		210,988			211,126			214,617			210,920			203,606
Consumer		213,305			234,212			254,168			270,994			285,122
Other Loans		461			2,286			3,789			2,962			1,401
Overdrafts		1,378			1,192			1,127			1,048			1,076
Total Loans Held for Investment		2,683,096			2,690,223			2,731,172			2,733,918			2,705,181
Allowance for Credit Losses		(29,836	)		(29,219	)		(29,329	)		(29,941	)		(29,083	)
Loans Held for Investment, Net		2,653,260			2,661,004			2,701,843			2,703,977			2,676,098

Premises and Equipment, Net		81,876			81,414			81,452			81,266			81,677
Goodwill and Other Intangibles		92,813			92,853			92,893			92,933			92,973
Other Real Estate Owned		650			650			1			1			1
Other Assets		115,613			121,311			120,170			119,648			116,314
Total Other Assets		290,952			296,228			294,516			293,848			290,965
Total Assets	$	4,225,316		$	4,225,695		$	4,259,922		$	4,304,477		$	4,138,287
LIABILITIES
Deposits:
Noninterest Bearing Deposits	$	1,330,715		$	1,343,606		$	1,361,939		$	1,377,934		$	1,472,165
NOW Accounts		1,174,585			1,177,180			1,212,452			1,327,420			1,092,996
Money Market Accounts		401,272			413,594			398,308			319,319			304,323
Savings Accounts		507,604			514,560			530,782			547,634			571,003
Certificates of Deposit		164,901			159,624			151,320			129,515			99,958
Total Deposits		3,579,077			3,608,564			3,654,801			3,701,822			3,540,445

Repurchase Agreements		29,339			22,463			23,477			26,957			22,910
Other Short-Term Borrowings		7,929			3,307			8,409			8,384			18,786
Subordinated Notes Payable		52,887			52,887			52,887			52,887			52,887
Other Long-Term Borrowings		794			1,009			265			315			364
Other Liabilities		71,974			69,987			65,181			66,080			75,585
Total Liabilities		3,742,000			3,758,217			3,805,020			3,856,445			3,710,977

Temporary Equity		6,817			6,479			6,588			7,407			7,604
SHAREOWNERS’ EQUITY
Common Stock		169			169			169			170			170
Additional Paid-In Capital		36,070			35,547			34,861			36,326			36,182
Retained Earnings		454,342			445,959			435,364			426,275			418,030
Accumulated Other Comprehensive Loss, Net of Tax		(14,082	)		(20,676	)		(22,080	)		(22,146	)		(34,676	)
Total Shareowners’ Equity		476,499			460,999			448,314			440,625			419,706
Total Liabilities, Temporary Equity and Shareowners’ Equity	$	4,225,316		$	4,225,695		$	4,259,922		$	4,304,477		$	4,138,287
OTHER BALANCE SHEET DATA
Earning Assets	$	3,880,769		$	3,883,382		$	3,921,093		$	3,957,452		$	3,804,026
Interest Bearing Liabilities		2,339,311			2,344,624			2,377,900			2,412,431			2,163,227
Book Value Per Diluted Share	$	28.06		$	27.17		$	26.45		$	25.92		$	24.69
Tangible Book Value Per Diluted Share⁽¹⁾		22.60			21.69			20.97			20.45			19.22
Actual Basic Shares Outstanding		16,944			16,942			16,929			16,950			16,958
Actual Diluted Shares Outstanding		16,981			16,970			16,947			17,001			16,998
⁽¹⁾ Tangible book value per diluted share is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 6.

CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
*Unaudited*

		2024						2023				Nine Months Ended September 30,
(Dollars in thousands, except per share data)		Third Quarter		Second Quarter		First Quarter		Fourth Quarter		Third Quarter		2024		2023
INTEREST INCOME
Loans, including Fees	$	41,659	$	41,138	$	40,683	$	40,407	$	39,344	$	123,480	$	111,845
Investment Securities		4,155		4,004		4,244		4,392		4,561		12,403		14,300
Federal Funds Sold and Interest Bearing Deposits		3,514		3,624		1,893		1,385		1,848		9,031		8,741
Total Interest Income		49,328		48,766		46,820		46,184		45,753		144,914		134,886
INTEREST EXPENSE
Deposits		8,223		8,579		7,594		5,872		5,214		24,396		11,710
Repurchase Agreements		221		217		201		199		190		639		314
Other Short-Term Borrowings		52		68		39		310		440		159		1,228
Subordinated Notes Payable		610		630		628		627		625		1,868		1,800
Other Long-Term Borrowings		11		3		3		5		4		17		15
Total Interest Expense		9,117		9,497		8,465		7,013		6,473		27,079		15,067
Net Interest Income		40,211		39,269		38,355		39,171		39,280		117,835		119,819
Provision for Credit Losses		1,206		1,204		920		2,025		2,393		3,330		7,689
Net Interest Income after Provision for Credit Losses		39,005		38,065		37,435		37,146		36,887		114,505		112,130
NONINTEREST INCOME
Deposit Fees		5,512		5,377		5,250		5,304		5,456		16,139		16,021
Bank Card Fees		3,624		3,766		3,620		3,713		3,684		11,010		11,205
Wealth Management Fees		4,770		4,439		4,682		4,276		3,984		13,891		12,061
Mortgage Banking Revenues		3,966		4,381		2,878		2,327		1,839		11,225		8,072
Other		1,641		1,643		1,667		1,537		1,765		4,951		7,093
Total Noninterest Income		19,513		19,606		18,097		17,157		16,728		57,216		54,452
NONINTEREST EXPENSE
Compensation		25,800		24,406		24,407		23,822		23,003		74,613		69,965
Occupancy, Net		7,098		6,997		6,994		7,098		6,980		21,089		20,562
Other		10,023		9,038		8,770		9,038		9,122		27,831		26,539
Total Noninterest Expense		42,921		40,441		40,171		39,958		39,105		123,533		117,066
OPERATING PROFIT		15,597		17,230		15,361		14,345		14,510		48,188		49,516
Income Tax Expense		2,980		3,189		3,536		2,909		3,004		9,705		10,130
Net Income		12,617		14,041		11,825		11,436		11,506		38,483		39,386
Pre-Tax Loss Attributable to Noncontrolling Interest		501		109		732		284		1,149		1,342		1,153
NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS	$	13,118	$	14,150	$	12,557	$	11,720	$	12,655	$	39,825	$	40,539
PER COMMON SHARE
Basic Net Income	$	0.77	$	0.84	$	0.74	$	0.69	$	0.75	$	2.35	$	2.38
Diluted Net Income		0.78		0.83		0.74		0.70		0.74		2.35		2.38
Cash Dividend	$	0.23	$	0.21	$	0.21	$	0.20	$	0.20	$	0.65	$	0.56
AVERAGE SHARES
Basic		16,943		16,931		16,951		16,947		16,985		16,942		17,001
Diluted		16,979		16,960		16,969		16,997		17,025		16,966		17,031

CAPITAL CITY BANK GROUP, INC.
ALLOWANCE FOR CREDIT LOSSES (“ACL”)
AND CREDIT QUALITY
*Unaudited*

		2024								2023					Nine Months Ended September 30,
(Dollars in thousands, except per share data)		Third Quarter			Second Quarter		First Quarter			Fourth Quarter			Third Quarter		2024			2023
ACL – HELD FOR INVESTMENT LOANS
Balance at Beginning of Period	$	29,219		$	29,329	$	29,941		$	29,083		$	28,243	$	29,941		$	25,068
Transfer from Other (Assets) Liabilities		–			–		(50	)		66			–		(50	)		–
Provision for Credit Losses		1,879			1,129		932			2,354			1,993		3,940			7,175
Net Charge-Offs (Recoveries)		1,262			1,239		1,494			1,562			1,153		3,995			3,160
Balance at End of Period	$	29,836		$	29,219	$	29,329		$	29,941		$	29,083	$	29,836		$	29,083
As a % of Loans HFI		1.11%			1.09%		1.07%			1.10%			1.08%		1.11%			1.08%
As a % of Nonperforming Loans		452.64%			529.79%		431.46%			479.70%			619.58%		452.64%			619.58%
ACL – UNFUNDED COMMITMENTS
Balance at Beginning of Period		3,139		$	3,121	$	3,191		$	3,502		$	3,120	$	3,191		$	2,989
Provision for Credit Losses		(617	)		18		(70	)		(311	)		382		(669	)		513
Balance at End of Period⁽¹⁾		2,522			3,139		3,121			3,191			3,502		2,522			3,502
ACL – DEBT SECURITIES
Provision for Credit Losses	$	(56	)	$	57	$	58		$	(18	)	$	18	$	59		$	1
CHARGE-OFFS
Commercial, Financial and Agricultural	$	331		$	400	$	282		$	217		$	76	$	1,013		$	294
Real Estate – Construction		–			–		–			–			–		–			–
Real Estate – Commercial		3			–		–			–			–		3			120
Real Estate – Residential		–			–		17			79			–		17			–
Real Estate – Home Equity		23			–		76			–			–		99			39
Consumer		1,315			1,061		1,550			1,689			1,340		3,926			4,065
Overdrafts		611			571		638			602			659		1,820			2,187
Total Charge-Offs	$	2,283		$	2,032	$	2,563		$	2,587		$	2,075	$	6,878		$	6,705
RECOVERIES
Commercial, Financial and Agricultural	$	176		$	59	$	41		$	83		$	28	$	276		$	194
Real Estate – Construction		–			–		–			–			–		–			2
Real Estate – Commercial		5			19		204			16			17		228			36
Real Estate – Residential		88			23		37			34			30		148			219
Real Estate – Home Equity		59			37		24			17			53		120			209
Consumer		405			313		410			433			418		1,128			1,503
Overdrafts		288			342		353			442			376		983			1,382
Total Recoveries	$	1,021		$	793	$	1,069		$	1,025		$	922	$	2,883		$	3,545
NET CHARGE-OFFS (RECOVERIES)	$	1,262		$	1,239	$	1,494		$	1,562		$	1,153	$	3,995		$	3,160
Net Charge-Offs as a % of Average Loans HFI⁽²⁾		0.19%			0.18%		0.22%			0.23%			0.17%		0.20%			0.16%
CREDIT QUALITY
Nonaccruing Loans	$	6,592		$	5,515	$	6,798		$	6,242		$	4,694
Other Real Estate Owned		650			650		1			1			1
Total Nonperforming Assets (“NPAs”)	$	7,242		$	6,165	$	6,799		$	6,243		$	4,695

Past Due Loans 30-89 Days	$	9,388		$	5,672	$	5,392		$	6,855		$	5,577
Classified Loans		25,501			25,566		22,305			22,203			21,812

Nonperforming Loans as a % of Loans HFI		0.25%			0.21%		0.25%			0.23%			0.17%
NPAs as a % of Loans HFI and Other Real Estate		0.27%			0.23%		0.25%			0.23%			0.17%
NPAs as a % of Total Assets		0.17%			0.15%		0.16%			0.15%			0.11%

⁽¹⁾Recorded in other liabilities
⁽²⁾Annualized

CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES
*Unaudited*

		Third Quarter 2024							Second Quarter 2024							First Quarter 2024							Fourth Quarter 2023							Third Quarter 2023							Sep 2024 YTD							Sep 2023 YTD
(Dollars in thousands)		Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate
ASSETS:
Loans Held for Sale	$	24,570		$	720	7.49	%	$	26,281		$	517	5.26	%	$	27,314		$	563	5.99	%	$	49,790			817	6.50	%	$	62,768		$	971	6.14	%	$	26,050		$	1,800	6.22	%	$	57,438		$	2,416	5.62	%
Loans Held for Investment⁽¹⁾		2,693,533			40,985	6.09			2,726,748			40,683	6.03			2,728,629			40,196	5.95			2,711,243			39,679	5.81			2,672,653			38,455	5.71			2,716,220			121,864	6.02			2,637,911			109,688	5.56

Investment Securities
Taxable Investment Securities		907,610			4,148	1.82			918,989			3,998	1.74			952,328			4,239	1.78			962,322			4,389	1.81			1,002,547			4,549	1.80			926,241			12,385	1.78			1,034,825			14,265	1.84
Tax-Exempt Investment Securities⁽¹⁾		846			10	4.33			843			9	4.36			856			9	4.34			862			7	4.32			2,456			17	2.66			848			28	4.34			2,649			50	2.49

Total Investment Securities		908,456			4,158	1.82			919,832			4,007	1.74			953,184			4,248	1.78			963,184			4,396	1.82			1,005,003			4,566	1.81			927,089			12,413	1.78			1,037,474			14,315	1.84

Federal Funds Sold and Interest Bearing Deposits		256,855			3,514	5.44			262,419			3,624	5.56			140,488			1,893	5.42			99,763			1,385	5.51			136,556			1,848	5.37			220,056			9,031	5.48			237,987			8,741	4.91

Total Earning Assets		3,883,414		$	49,377	5.06	%		3,935,280		$	48,831	4.99	%		3,849,615		$	46,900	4.90	%		3,823,980		$	46,277	4.80	%		3,876,980		$	45,840	4.69	%		3,889,415		$	145,108	4.98	%		3,970,810		$	135,160	4.55	%

Cash and Due From Banks		70,994							74,803							75,763							76,681							75,941							73,843							75,483
Allowance for Credit Losses		(29,905	)						(29,564	)						(30,030	)						(29,998	)						(29,172	)						(29,833	)						(27,581	)
Other Assets		291,359							291,669							295,275							296,114							295,106							292,762							297,688

Total Assets	$	4,215,862						$	4,272,188						$	4,190,623						$	4,166,777						$	4,218,855						$	4,226,187						$	4,316,400

LIABILITIES:
Noninterest Bearing Deposits	$	1,332,305						$	1,346,546						$	1,344,188						$	1,416,825						$	1,474,574						$	1,340,981						$	1,538,268
NOW Accounts		1,145,544		$	4,087	1.42	%		1,207,643		$	4,425	1.47	%		1,201,032		$	4,497	1.51	%		1,138,461		$	3,696	1.29	%		1,125,171		$	3,489	1.23	%		1,184,596		$	13,009	1.47	%		1,184,453		$	8,679	0.98	%
Money Market Accounts		418,625			2,694	2.56			407,387			2,752	2.72			353,591			1,985	2.26			318,844			1,421	1.77			322,623			1,294	1.59			393,294			7,431	2.52			293,089			2,249	1.03
Savings Accounts		512,098			180	0.14			519,374			176	0.14			539,374			188	0.14			557,579			202	0.14			579,245			200	0.14			523,573			544	0.14			603,643			396	0.09
Time Deposits		163,462			1,262	3.07			160,078			1,226	3.08			138,328			924	2.69			116,797			553	1.88			95,203			231	0.96			153,991			3,412	2.96			90,970			386	0.57
Total Interest Bearing Deposits		2,239,729			8,223	1.46			2,294,482			8,579	1.50			2,232,325			7,594	1.37			2,131,681			5,872	1.09			2,122,242			5,214	0.97			2,255,454			24,396	1.44			2,172,155			11,710	0.72
Total Deposits		3,572,034			8,223	0.92			3,641,028			8,579	0.95			3,576,513			7,594	0.85			3,548,506			5,872	0.66			3,596,816			5,214	0.58			3,596,435			24,396	0.91			3,710,423			11,710	0.42
Repurchase Agreements		27,126			221	3.24			26,999			217	3.24			25,725			201	3.14			26,831			199	2.94			25,356			190	2.98			26,619			639	3.21			17,588			314	2.39
Other Short-Term Borrowings		2,673			52	7.63			6,592			68	4.16			3,758			39	4.16			16,906			310	7.29			24,306			440	7.17			4,334			159	4.88			26,586			1,228	6.17
Subordinated Notes Payable		52,887			610	4.52			52,887			630	4.71			52,887			628	4.70			52,887			627	4.64			52,887			625	4.62			52,887			1,868	4.64			52,887			1,800	4.49
Other Long-Term Borrowings		795			11	5.55			258			3	4.31			281			3	4.80			336			5	4.72			387			4	4.73			447			17	5.16			433			15	4.78
Total Interest Bearing Liabilities		2,323,210		$	9,117	1.56	%		2,381,218		$	9,497	1.60	%		2,314,976		$	8,465	1.47	%		2,228,641		$	7,013	1.25	%		2,225,178		$	6,473	1.15	%		2,339,741		$	27,079	1.55	%		2,269,649		$	15,067	0.89	%

Other Liabilities		73,767							72,634							68,295							78,772							83,099							71,574							82,877

Total Liabilities		3,729,282							3,800,398							3,727,459							3,724,238							3,782,851							3,752,296							3,890,794
Temporary Equity		6,443							6,493							7,150							7,423							8,424							6,694							8,719

SHAREOWNERS’ EQUITY:		480,137							465,297							456,014							435,116							427,580							467,197							416,887

Total Liabilities, Temporary Equity and Shareowners’ Equity	$	4,215,862						$	4,272,188						$	4,190,623						$	4,166,777						$	4,218,855						$	4,226,187						$	4,316,400

Interest Rate Spread				$	40,260	3.49	%				$	39,334	3.38	%				$	38,435	3.43	%				$	39,264	3.55	%				$	39,367	3.54	%				$	118,029	3.43	%				$	120,093	3.66	%

Interest Income and Rate Earned⁽¹⁾					49,377	5.06						48,831	4.99						46,900	4.90						46,277	4.80						45,840	4.69						145,108	4.98						135,160	4.55
Interest Expense and Rate Paid⁽²⁾					9,117	0.93						9,497	0.97						8,465	0.88						7,013	0.73						6,473	0.66						27,079	0.93						15,067	0.51

Net Interest Margin				$	40,260	4.12	%				$	39,334	4.02	%				$	38,435	4.01	%				$	39,264	4.07	%				$	39,367	4.03	%				$	118,029	4.05	%				$	120,093	4.04	%

⁽¹⁾Interest and average rates are calculated on a tax-equivalent basis using a 21% Federal tax rate.
⁽²⁾Rate calculated based on average earning assets.

For Information Contact:
Jep Larkin
Executive Vice President and Chief Financial Officer
850.402. 8450

The MIL Network –

January 24, 2025

MIL-OSI: Dime Community Bancshares, Inc. Reports Third Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

Acceleration in Core Deposit Growth Drives Increase in Quarterly Net Interest Margin to 2.50%

Balance Sheet Well Positioned to Benefit From Federal Reserve Rate Cuts

HAUPPAUGE, N.Y., Oct. 22, 2024 (GLOBE NEWSWIRE) — Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the “Company” or “Dime”), the parent company of Dime Community Bank (the “Bank”), today reported net income available to common stockholders of $11.5 million for the quarter ended September 30, 2024, or $0.29 per diluted common share, compared to $16.7 million, or $0.43 per diluted common share, for the quarter ended June 30, 2024, and $13.2 million, or $0.34 per diluted common share for the quarter ended September 30, 2023.

Stuart H. Lubow, President and Chief Executive Officer (“CEO”) of the Company, stated, “Strong growth in low-cost core deposits drove a significant linked quarter expansion in the Net Interest Margin. Importantly, following the recent 50 basis point reduction in the Federal Funds rate, we lowered deposit costs and expect to benefit from these actions in the fourth quarter and beyond. Since the Federal Reserve rate cut in mid-September, the spread between the weighted average rate on loans and core deposits has improved by approximately 15 basis points. We anticipate the full quarter impact of this spread improvement to drive continued Net Interest Margin expansion in the fourth quarter.”

Mr. Lubow commented, “During the third quarter, our Business loan portfolio increased by over $120 million and we continue to have strong pipelines in our Middle Market and Healthcare verticals. Compared to the prior quarter, the level of net charge-offs and criticized and classified loans remained stable and we continued to prudently build our allowance for credit losses to total loans and risk-based capital levels. In conclusion, I am extremely proud of our employees for their unwavering focus on our customers and enabling us to be the premier business bank on Greater Long Island.”

Highlights for the Third Quarter of 2024 Included:

Total deposits increased $389 million compared to the second quarter of 2024;
Core deposits (excluding brokered and time deposits) increased $505 million compared to the second quarter of 2024;
The ratio of average non-interest-bearing deposits to average total deposits for the third quarter was 29% compared to 28% for the second quarter of 2024;
The cost of total deposits declined by 4 basis point versus the prior quarter;
The net interest margin increased to 2.50% for the third quarter of 2024 compared to 2.41% for the prior quarter;
The loan to deposit ratio declined to 95.4% at the end of the third quarter compared to 98.2% for the prior quarter;
Net charge-offs to average loans was 0.15% for the third quarter of 2024 compared to 0.14% for prior quarter;
The allowance for credit losses to total loans increased to 0.78% at the end of the third quarter compared to 0.72% for the prior quarter; and
The Company’s total risk based capital ratio increased to 14.76% at the end of the third quarter compared to 14.46% for the prior quarter.

Management’s Discussion of Quarterly Operating Results

Net Interest Income

Net interest income for the third quarter of 2024 was $79.9 million compared to $75.5 million for the second quarter of 2024 and $76.5 million for the third quarter of 2023.

The table below provides a reconciliation of the reported net interest margin (“NIM”) and adjusted NIM excluding the impact of purchase accounting accretion on the loan portfolio.


(Dollars in thousands)	Q3 2024				Q2 2024				Q3 2023
Net interest income	$	79,924			$	75,502			$	76,479
Purchase accounting amortization (accretion) on loans (“PAA”)		(266	)			(101	)			186
Adjusted net interest income excluding PAA on loans (non-GAAP)	$	79,658			$	75,401			$	76,665

Average interest-earning assets	$	12,734,246			$	12,624,556			$	12,984,061

NIM ⁽¹⁾		2.50		%		2.41		%		2.34	%
Adjusted NIM excluding PAA on loans (non-GAAP) ⁽²⁾		2.49		%		2.40		%		2.34	%

⁽¹⁾NIM represents net interest income divided by average interest-earning assets.
⁽²⁾Adjusted NIM excluding PAA on loans represents adjusted net interest income, which excludes PAA amortization on acquired loans divided by average interest-earning assets.

During the quarter ended June 30, 2024, there was a recovery of interest income from a loan that was previously on non-accrual status in the amount of $1.3 million. Excluding the impact of this item, the second quarter NIM was 2.37%.

Loan Portfolio

The ending WAR on the total loan portfolio was 5.40% at September 30, 2024, a 1 basis point increase compared to the ending WAR of 5.39% on the total loan portfolio at June 30, 2024.

Outlined below are loan balances and WARs for the quarter ended as indicated.


	September 30, 2024				June 30, 2024				September 30, 2023
(Dollars in thousands)	Balance		WAR ⁽¹⁾		Balance		WAR ⁽¹⁾		Balance		WAR ⁽¹⁾
Loans held for investment balances at period end:
Business loans ⁽²⁾	$	2,653,624	6.82	%	$	2,530,896	6.92	%	$	2,271,768	6.72	%
One-to-four family residential, including condominium and cooperative apartment		934,209	4.65			906,949	4.55			892,869	4.39
Multifamily residential and residential mixed-use ⁽³⁾⁽⁴⁾		3,866,931	4.60			3,920,354	4.59			4,102,024	4.45
Non-owner-occupied commercial real estate		3,281,923	5.25			3,315,100	5.25			3,374,281	5.09
Acquisition, development, and construction		149,299	8.46			144,860	8.96			203,402	8.92
Other loans		6,058	10.71			6,699	3.39			6,267	6.28
Loans held for investment	$	10,892,044	5.40	%	$	10,824,858	5.39	%	$	10,850,611	5.20	%

⁽¹⁾ WAR is calculated by aggregating interest based on the current loan rate from each loan in the category, adjusted for non-accrual loans, divided by the total balance of loans in the category.
⁽²⁾ Business loans include commercial and industrial loans and owner-occupied commercial real estate loans.
⁽³⁾ Includes loans underlying multifamily cooperatives.
⁽⁴⁾ While the loans within this category are often considered “commercial real estate” in nature, multifamily and loans underlying cooperatives are reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio.

Outlined below are the loan originations, for the quarter ended as indicated.


(Dollars in millions)	Q3 2024		Q2 2024		Q3 2023
Loan originations	$	122.7	$	162.4	$	153.4

Deposits and Borrowed Funds

Period end total deposits (including mortgage escrow deposits) at September 30, 2024 were $11.42 billion, compared to $11.03 billion at June 30, 2024 and $10.53 billion at December 31, 2023.

Total Federal Home Loan Bank advances were $508.0 million at September 30, 2024 compared to $633.0 million at June 30, 2024 and $1.31 billion at December 31, 2023.

Mr. Lubow commented, “During the third quarter of 2024, we continued our strategy of utilizing core deposit growth to reduce our wholesale funding position.”

Non-Interest Income

Non-interest income was $7.6 million during the third quarter of 2024, $11.8 million during the second quarter of 2024, and $7.9 million during the third quarter of 2023. Included in non-interest income for the second quarter of 2024, was income related to the sale of premises of approximately $3.7 million.

Non-Interest Expense

Total non-interest expense was $57.7 million during the third quarter of 2024, $55.7 million during the second quarter of 2024, and $59.5 million during the third quarter of 2023. Excluding the impact of the loss on extinguishment of debt, amortization of other intangible assets and severance expense, adjusted non-interest expense was $57.4 million during the third quarter of 2024, $55.4 million during the second quarter of 2024, and $50.6 million during the third quarter of 2023 (see “Non-GAAP Reconciliation” tables at the end of this news release).

Mr. Lubow commented, “As we have communicated previously, the increase in non-interest expense has been due to the significant investments and hires in the Private and Commercial Bank and the Middle Market C&I Lending operations. Third quarter results reflected a fully-loaded run-rate for these initiatives and we expect to keep our expense base relatively flat in the fourth quarter of 2024.”

The ratio of non-interest expense to average assets was 1.71% during the third quarter of 2024, compared to 1.66% during the linked quarter and 1.73% for the third quarter of 2023. Excluding the impact of the loss on extinguishment of debt, amortization of other intangible assets and severance expense, the ratio of adjusted non-interest expense to average assets was 1.70% during the third quarter of 2024, compared to 1.65% during the linked quarter and 1.48% for the third quarter of 2023 (see “Non-GAAP Reconciliation” tables at the end of this news release).

The efficiency ratio was 65.9% during the third quarter of 2024, compared to 63.8% during the linked quarter and 70.5% during the third quarter of 2023. Excluding the impact of net (gain) loss on sale of securities and other assets, fair value change in equity securities and loans held for sale, severance expense, loss on extinguishment of debt and amortization of other intangible assets the adjusted efficiency ratio was 65.6% during the third quarter of 2024, compared to 65.9% during the linked quarter and 59.7% during the third quarter of 2023 (see “Non-GAAP Reconciliation” tables at the end of this news release).

Income Tax Expense

The reported effective tax rate for the third quarter of 2024 was 26.9% compared to 29.0% for the second quarter of 2024, and 35.1% for the third quarter of 2023.

Credit Quality

Non-performing loans were $49.5 million at September 30, 2024, compared to $24.8 million for the prior quarter.

A credit loss provision of $11.6 million was recorded during the third quarter of 2024, compared to a credit loss provision of $5.6 million during the second quarter of 2024, and a credit loss provision of $1.8 million during the third quarter of 2023.

Capital Management

The Company’s and the Bank’s regulatory capital ratios continued to be in excess of all applicable regulatory requirements as of September 30, 2024. All risk-based regulatory capital ratios increased in the third quarter of 2024.

Dividends per common share were $0.25 during the third and second quarters of 2024, respectively.

Book value per common share was $29.31 at September 30, 2024 compared to $28.97 at June 30, 2024.

Tangible common book value per share (which represents common equity less goodwill and other intangible assets, divided by the number of shares outstanding) was $25.22 at September 30, 2024 compared to $24.87 at June 30, 2024 (see “Non-GAAP Reconciliation” tables at the end of this news release).

Earnings Call Information

The Company will conduct a conference call at 9:00 a.m. (ET) on Tuesday, October 22, 2024, during which CEO Lubow will discuss the Company’s third quarter 2024 financial performance, with a question-and-answer session to follow.

Participants may access the conference call via webcast using this link: https://edge.media-server.com/mmc/p/hfnjf6ym. To participate via telephone, please register in advance using this link: https://register.vevent.com/register/BI017781a02def49c0ad228b72ba201600. Upon registration, all telephone participants will receive a one-time confirmation email detailing how to join the conference call, including the dial-in number along with a unique PIN that can be used to access the call. All participants are encouraged to dial-in 10 minutes prior to the start time.

A replay of the conference call and webcast will be available on-demand for 12 months at https://edge.media-server.com/mmc/p/hfnjf6ym.

ABOUT DIME COMMUNITY BANCSHARES, INC.
Dime Community Bancshares, Inc. is the holding company for Dime Community Bank, a New York State-chartered trust company with over $13.7 billion in assets and the number one deposit market share among community banks on Greater Long Island⁽¹⁾.

⁽¹⁾ Aggregate deposit market share for Kings, Queens, Nassau & Suffolk counties for community banks with less than $20 billion in assets.

This news release contains a number of 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 (the “Exchange Act”). These statements may be identified by use of words such as “annualized,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar terms and phrases, including references to assumptions.

Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management’s experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company’s control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Accordingly, you should not place undue reliance on such statements. Factors that could affect our results include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company’s control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may affect demand for our products and reduce interest margins and the value of our investments; changes in deposit flows, the cost of funds, loan demand or real estate values may adversely affect the business of the Company; changes in the quality and composition of the Company’s loan or investment portfolios or unanticipated or significant increases in loan losses may negatively affect the Company’s financial condition or results of operations; changes in accounting principles, policies or guidelines may cause the Company’s financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company’s financial condition or results of operations; general socio-economic conditions, public health emergencies, international conflict, inflation, and recessionary pressures, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates and may adversely affect our customers, our financial results and our operations; legislation or regulatory changes may adversely affect the Company’s business; technological changes may be more difficult or expensive than the Company anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; there may be difficulties or unanticipated expense incurred in the consummation of new business initiatives or the integration of any acquired entities; and litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections entitled “Forward-Looking Statements” and “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and updates set forth in the Company’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Contact: Avinash Reddy
Senior Executive Vice President – Chief Financial Officer
718-782-6200 extension 5909

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (In thousands)

	September 30,			June 30,			December 31,
	2024			2024			2023
Assets:
Cash and due from banks	$	626,056		$	413,983		$	457,547
Securities available-for-sale, at fair value		774,608			819,222			886,240
Securities held-to-maturity		592,414			588,000			594,639
Loans held for sale		13,098			14,766			10,159
Loans held for investment, net:
Business loans ⁽¹⁾		2,653,624			2,530,896			2,310,379
One-to-four family and cooperative/condominium apartment		934,209			906,949			889,236
Multifamily residential and residential mixed-use ⁽²⁾⁽³⁾		3,866,931			3,920,354			4,017,703
Non-owner-occupied commercial real estate		3,281,923			3,315,100			3,381,842
Acquisition, development and construction		149,299			144,860			168,513
Other loans		6,058			6,699			5,755
Allowance for credit losses		(85,221	)		(77,812	)		(71,743	)
Total loans held for investment, net		10,806,823			10,747,046			10,701,685
Premises and fixed assets, net		35,066			36,054			44,868
Premises held for sale		—			—			905
Restricted stock		64,235			68,445			98,750
Bank Owned Life Insurance (“BOLI”)		372,367			354,761			349,816
Goodwill		155,797			155,797			155,797
Other intangible assets		4,181			4,467			5,059
Operating lease assets		48,537			51,703			52,729
Derivative assets		105,636			134,489			122,132
Accrued interest receivable		54,578			55,588			55,666
Other assets		93,133			104,442			100,013
Total assets	$	13,746,529		$	13,548,763		$	13,636,005
Liabilities:
Non-interest-bearing checking (excluding mortgage escrow deposits)	$	3,231,160		$	3,012,481		$	2,884,378
Interest-bearing checking		938,070			633,721			515,987
Savings (excluding mortgage escrow deposits)		1,845,266			2,340,222			2,335,354
Money market		3,898,509			3,607,090			3,125,996
Certificates of deposit		1,416,467			1,382,271			1,607,683
Deposits (excluding mortgage escrow deposits)		11,329,472			10,975,785			10,469,398
Non-interest-bearing mortgage escrow deposits		87,841			52,647			61,121
Interest-bearing mortgage escrow deposits		5			2			136
Total mortgage escrow deposits		87,846			52,649			61,257
FHLBNY advances		508,000			633,000			1,313,000
Subordinated debt, net		272,300			262,814			200,196
Derivative cash collateral		68,960			130,090			108,100
Operating lease liabilities		51,362			54,530			55,454
Derivative liabilities		98,108			122,567			121,265
Other liabilities		66,552			66,732			81,110
Total liabilities		12,482,600			12,298,167			12,409,780
Stockholders’ equity:
Preferred stock, Series A		116,569			116,569			116,569
Common stock		416			416			416
Additional paid-in capital		488,607			488,760			494,454
Retained earnings		827,690			826,080			813,007
Accumulated other comprehensive loss (“AOCI”), net of deferred taxes		(72,970	)		(82,780	)		(91,579	)
Unearned equity awards		(10,111	)		(12,023	)		(8,622	)
Treasury stock, at cost		(86,272	)		(86,426	)		(98,020	)
Total stockholders’ equity		1,263,929			1,250,596			1,226,225
Total liabilities and stockholders’ equity	$	13,746,529		$	13,548,763		$	13,636,005

⁽¹⁾ Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and Paycheck Protection Program (“PPP”) loans.
⁽²⁾ Includes loans underlying multifamily cooperatives.

⁽³⁾ While the loans within this category are often considered “commercial real estate” in nature, multifamily and loans underlying cooperatives are here reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio.

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands except share and per share amounts)

	Three Months Ended								Nine Months Ended
	September 30,		June 30,			September 30,			September 30,			September 30,
	2024		2024			2023			2024			2023
Interest income:
Loans	$	151,828	$	147,099		$	142,995		$	442,492		$	409,744
Securities		7,766		7,907			7,916			23,553			24,261
Other short-term investments		4,645		4,412			6,930			18,621			16,599
Total interest income		164,239		159,418			157,841			484,666			450,604
Interest expense:
Deposits and escrow		74,025		72,878			62,507			219,972			152,395
Borrowed funds		8,764		9,033			16,925			32,494			50,855
Derivative cash collateral		1,526		2,005			1,930			5,244			4,904
Total interest expense		84,315		83,916			81,362			257,710			208,154
Net interest income		79,924		75,502			76,479			226,956			242,450
Provision (recovery) for credit losses		11,603		5,585			1,806			22,398			(950	)
Net interest income after provision (recovery)		68,321		69,917			74,673			204,558			243,400
Non-interest income:
Service charges and other fees		4,267		3,972			3,963			12,783			12,633
Title fees		190		294			291			617			829
Loan level derivative income		132		1,085			783			1,623			6,353
BOLI income		2,606		2,484			2,317			7,551			7,332
Gain on sale of Small Business Administration (“SBA”) loans		19		113			335			385			1,061
Gain on sale of residential loans		38		27			21			142			103
Fair value change in equity securities and loans held for sale		39		(416	)		(299	)		(1,219	)		(1,079	)
Net loss on sale of securities		—		—			—			—			(1,447	)
Gain (loss) on sale of other assets		2		3,695			(22	)		6,665			(22	)
Other		338		554			539			1,359			1,571
Total non-interest income		7,631		11,808			7,928			29,906			27,334
Non-interest expense:
Salaries and employee benefits		36,132		32,184			30,520			100,353			87,054
Severance		—		—			8,562			42			9,068
Occupancy and equipment		7,448		7,409			7,277			22,225			21,794
Data processing costs		4,544		4,405			4,309			13,262			12,744
Marketing		1,629		1,637			2,079			4,763			5,016
Professional services		2,036		2,766			1,277			6,269			4,876
Federal deposit insurance premiums		2,105		2,250			1,866			6,594			5,613
Loss on extinguishment of debt		1		—			—			454			—
Amortization of other intangible assets		286		285			349			878			1,075
Other		3,548		4,758			3,284			11,094			11,944
Total non-interest expense		57,729		55,694			59,523			165,934			159,184
Income before taxes		18,223		26,031			23,078			68,530			111,550
Income tax expense		4,896		7,552			8,093			19,033			31,764
Net income		13,327		18,479			14,985			49,497			79,786
Preferred stock dividends		1,822		1,822			1,822			5,465			5,465
Net income available to common stockholders	$	11,505	$	16,657		$	13,163		$	44,032		$	74,321
Earnings per common share (“EPS”):
Basic	$	0.29	$	0.43		$	0.34		$	1.13		$	1.92
Diluted	$	0.29	$	0.43		$	0.34		$	1.13		$	1.92

Average common shares outstanding for diluted EPS		38,366,619		38,329,485			38,203,961			38,317,223			38,177,704

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES UNAUDITED SELECTED FINANCIAL HIGHLIGHTS (Dollars in thousands except per share amounts)

	At or For the Three Months Ended									At or For the Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2024			2024			2023			2024			2023
Per Share Data:
Reported EPS (Diluted)	$	0.29		$	0.43		$	0.34		$	1.13		$	1.92
Cash dividends paid per common share		0.25			0.25			0.25			0.75			0.74
Book value per common share		29.31			28.97			28.03			29.31			28.03
Tangible common book value per share ⁽¹⁾		25.22			24.87			23.87			25.22			23.87
Common shares outstanding		39,152			39,148			38,811			39,152			38,811
Dividend payout ratio		86.21	%		58.14	%		73.53	%		66.37	%		38.54	%

Performance Ratios (Based upon Reported Net Income):
Return on average assets		0.39	%		0.55	%		0.44	%		0.49	%		0.78	%
Return on average equity		4.19			5.88			4.91			5.24			8.78
Return on average tangible common equity ⁽¹⁾		4.70			6.88			5.69			6.06			10.73
Net interest margin		2.50			2.41			2.34			2.37			2.52
Non-interest expense to average assets		1.71			1.66			1.73			1.63			1.56
Efficiency ratio		65.9			63.8			70.5			64.6			59.0
Effective tax rate		26.87			29.01			35.07			27.77			28.48

Balance Sheet Data:
Average assets	$	13,502,753		$	13,418,441		$	13,759,493		$	13,571,710		$	13,623,570
Average interest-earning assets		12,734,246			12,624,556			12,984,061			12,791,233			12,853,701
Average tangible common equity ⁽¹⁾		996,578			979,611			943,805			981,614			933,072
Loan-to-deposit ratio at end of period ⁽²⁾		95.4			98.2			102.0			95.4			102.0

Capital Ratios and Reserves – Consolidated: ⁽³⁾
Tangible common equity to tangible assets ⁽¹⁾		7.27	%		7.27	%		6.87	%
Tangible equity to tangible assets ⁽¹⁾		8.13			8.14			7.73
Tier 1 common equity ratio		10.16			10.06			9.67
Tier 1 risk-based capital ratio		11.28			11.17			10.76
Total risk-based capital ratio		14.76			14.46			13.33
Tier 1 leverage ratio		8.76			8.78			8.38
Consolidated CRE concentration ratio ⁽⁴⁾		487			499			547
Allowance for credit losses/ Total loans		0.78			0.72			0.67
Allowance for credit losses/ Non-performing loans		172.29			313.21			311.16

⁽¹⁾ See “Non-GAAP Reconciliation” tables for reconciliation of tangible equity, tangible common equity, and tangible assets.
⁽²⁾ Total deposits include mortgage escrow deposits, which fluctuate seasonally.
⁽³⁾ September 30, 2024 ratios are preliminary pending completion and filing of the Company’s regulatory reports.

⁽⁴⁾The Consolidated CRE concentration ratio is calculated using the sum of commercial real estate, excluding owner-occupied commercial real estate, multifamily, and acquisition, development, and construction, divided by consolidated capital. The September 30, 2024 ratio is preliminary pending completion and filing of the Company’s regulatory reports.

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME (Dollars in thousands)

	Three Months Ended
	September 30, 2024						June 30, 2024						September 30, 2023
					Average						Average						Average
	Average				Yield/		Average				Yield/		Average				Yield/
	Balance		Interest		Cost		Balance		Interest		Cost		Balance		Interest		Cost
Assets:
Interest-earning assets:
Business loans ⁽¹⁾	$	2,609,934	$	46,656	7.11	%	$	2,400,219	$	42,933	7.19	%	$	2,260,203	$	38,384	6.74	%
One-to-four family residential, including condo and coop		924,150		11,024	4.75			886,037		9,968	4.52			879,688		9,165	4.13
Multifamily residential and residential mixed-use		3,902,220		45,790	4.67			3,958,617		45,775	4.65			4,114,476		46,099	4.45
Non-owner-occupied commercial real estate		3,297,760		44,804	5.40			3,359,004		44,728	5.36			3,382,927		44,184	5.18
Acquisition, development, and construction		147,875		3,505	9.43			164,283		3,638	8.91			222,039		5,075	9.07
Other loans		4,891		49	3.99			5,100		57	4.50			6,156		88	5.67
Securities		1,493,492		7,766	2.07			1,537,487		7,907	2.07			1,619,960		7,916	1.94
Other short-term investments		353,924		4,645	5.22			313,809		4,412	5.65			498,612		6,930	5.51
Total interest-earning assets		12,734,246		164,239	5.13	%		12,624,556		159,418	5.08	%		12,984,061		157,841	4.82	%
Non-interest-earning assets		768,507						793,885						775,432
Total assets	$	13,502,753					$	13,418,441					$	13,759,493

Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing checking ⁽²⁾	$	798,024	$	4,635	2.31	%	$	631,403	$	1,499	0.95	%	$	786,892	$	2,896	1.46	%
Money market		3,771,562		36,841	3.89			3,495,989		33,193	3.82			2,975,267		24,275	3.24
Savings ⁽²⁾		2,102,282		19,492	3.69			2,336,202		23,109	3.98			2,342,424		20,316	3.44
Certificates of deposit		1,232,984		13,057	4.21			1,393,678		15,077	4.35			1,494,491		15,020	3.99
Total interest-bearing deposits		7,904,852		74,025	3.73			7,857,272		72,878	3.73			7,599,074		62,507	3.26
FHLBNY advances		528,652		4,455	3.35			671,242		6,429	3.85			1,250,717		14,370	4.56
Subordinated debt, net		271,450		4,307	6.31			202,232		2,604	5.18			200,232		2,553	5.06
Other short-term borrowings		131		2	6.07			—		—	—			120		2	6.61
Total borrowings		800,233		8,764	4.36			873,474		9,033	4.16			1,451,069		16,925	4.63
Derivative cash collateral		91,305		1,526	6.65			145,702		2,005	5.53			156,795		1,930	4.88
Total interest-bearing liabilities		8,796,390		84,315	3.81	%		8,876,448		83,916	3.80	%		9,206,938		81,362	3.51	%
Non-interest-bearing checking ⁽²⁾		3,209,502						3,042,382						3,065,186
Other non-interest-bearing liabilities		223,546						242,980						265,559
Total liabilities		12,229,438						12,161,810						12,537,683
Stockholders’ equity		1,273,315						1,256,631						1,221,810
Total liabilities and stockholders’ equity	$	13,502,753					$	13,418,441					$	13,759,493
Net interest income			$	79,924					$	75,502					$	76,479
Net interest rate spread					1.32	%					1.28	%					1.31	%
Net interest margin					2.50	%					2.41	%					2.34	%
Deposits (including non-interest-bearing checking accounts) ⁽²⁾	$	11,114,354	$	74,025	2.65	%	$	10,899,654	$	72,878	2.69	%	$	10,664,260	$	62,507	2.33	%

⁽¹⁾ Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and PPP loans.
⁽²⁾ Includes mortgage escrow deposits.

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS (Dollars in thousands)

	At or For the Three Months Ended
	September 30,			June 30,			September 30,
Asset Quality Detail	2024			2024			2023
Non-performing loans (“NPLs”)
Business loans ⁽¹⁾	$	25,411		$	20,287		$	19,555
One-to-four family residential, including condominium and cooperative apartment		3,880			3,884			2,874
Multifamily residential and residential mixed-use		—			—			—
Non-owner-occupied commercial real estate		19,509			15			15
Acquisition, development, and construction		657			657			657
Other loans		6			—			219
Total Non-accrual loans	$	49,463		$	24,843		$	23,320
Total Non-performing assets (“NPAs”)	$	49,463		$	24,843		$	23,320

Total loans 90 days delinquent and accruing (“90+ Delinquent”)	$	—		$	—		$	—

NPAs and 90+ Delinquent	$	49,463		$	24,843		$	23,320

NPAs and 90+ Delinquent / Total assets		0.36	%		0.18	%		0.17	%
Net charge-offs (“NCOs”)	$	4,199		$	3,640		$	4,864
NCOs / Average loans ⁽²⁾		0.15	%		0.14	%		0.18	%

⁽¹⁾ Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and PPP loans.
⁽²⁾ Calculated based on annualized NCOs to average loans, excluding loans held for sale.

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATION
(Dollars in thousands except per share amounts)

The following tables below provide a reconciliation of certain financial measures calculated under generally accepted accounting principles (“GAAP”) (as reported) and non-GAAP measures. A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with GAAP in the United States. The Company’s management believes the presentation of non-GAAP financial measures provides investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with GAAP. While management uses these non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with GAAP or considered to be more important than financial results determined in accordance with GAAP.

The following non-GAAP financial measures exclude pre-tax income and expenses associated with the fair value change in equity securities and loans held for sale, net (gain) loss on sale of securities and other assets, severance, the FDIC special assessment and loss on extinguishment of debt:


	Three Months Ended												Nine Months Ended
	September 30,				June 30,				September 30,				September 30,				September 30,
	2024				2024				2023				2024				2023
Reconciliation of Reported and Adjusted (non-GAAP) Net Income Available to Common Stockholders
Reported net income available to common stockholders	$	11,505			$	16,657			$	13,163			$	44,032			$	74,321
Adjustments to net income ^(1):
Fair value change in equity securities and loans held for sale		(39	)			416				299				1,219				1,079
Net (gain) loss on sale of securities and other assets		(2	)			(3,695	)			22				(6,665	)			1,469
Severance		—				—				8,562				42				9,068
Loss on extinguishment of debt		1				—				—				454				—
Income tax effect of adjustments		13				1,043				(176	)			1,574				(985	)
Adjusted net income available to common stockholders (non-GAAP)	$	11,478			$	14,421			$	21,870			$	40,656			$	84,952

Adjusted Ratios (Based upon Adjusted (non-GAAP) Net Income as calculated above)
Adjusted EPS (Diluted)	$	0.29			$	0.37			$	0.56			$	1.04			$	2.19
Adjusted return on average assets		0.39		%		0.48		%		0.69		%		0.45		%		0.88		%
Adjusted return on average equity		4.18				5.17				7.76				4.89				9.95
Adjusted return on average tangible common equity		4.69				5.97				9.38				5.60				12.25
Adjusted non-interest expense to average assets		1.70				1.65				1.48				1.62				1.46
Adjusted efficiency ratio		65.6				65.9				59.7				65.5				54.7

⁽¹⁾ Adjustments to net income are taxed at the Company’s approximate statutory tax rate.

The following table presents a reconciliation of operating expense as a percentage of average assets (as reported) and adjusted operating expense as a percentage of average assets (non-GAAP):


	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2024			2024			2023			2024			2023
Operating expense as a % of average assets – as reported	1.71		%	1.66		%	1.73		%	1.63		%	1.56		%
Loss on extinguishment of debt	—			—			—			—			—
Severance	—			—			(0.25	)		—			(0.09	)
Amortization of other intangible assets	(0.01	)		(0.01	)		—			(0.01	)		(0.01	)
Adjusted operating expense as a % of average assets (non-GAAP)	1.70		%	1.65		%	1.48		%	1.62		%	1.46		%

The following table presents a reconciliation of efficiency ratio (non-GAAP) and adjusted efficiency ratio (non-GAAP):


	Three Months Ended												Nine Months Ended
	September 30,				June 30,				September 30,				September 30,				September 30,
	2024				2024				2023				2024				2023
Efficiency ratio – as reported (non-GAAP) ⁽¹⁾		65.9		%		63.8		%		70.5		%		64.6		%		59.0		%
Non-interest expense – as reported	$	57,729			$	55,694			$	59,523			$	165,934			$	159,184
Severance		—				—				(8,562	)			(42	)			(9,068	)
Loss on extinguishment of debt		(1	)			—				—				(454	)			—
Amortization of other intangible assets		(286	)			(285	)			(349	)			(878	)			(1,075	)
Adjusted non-interest expense (non-GAAP)	$	57,442			$	55,409			$	50,612			$	164,560			$	149,041
Net interest income – as reported	$	79,924			$	75,502			$	76,479			$	226,956			$	242,450
Non-interest income – as reported	$	7,631			$	11,808			$	7,928			$	29,906			$	27,334
Fair value change in equity securities and loans held for sale		(39	)			416				299				1,219				1,079
Net (gain) loss on sale of securities and other assets		(2	)			(3,695	)			22				(6,665	)			1,469
Adjusted non-interest income (non-GAAP)	$	7,590			$	8,529			$	8,249			$	24,460			$	29,882
Adjusted total revenues for adjusted efficiency ratio (non-GAAP)	$	87,514			$	84,031			$	84,728			$	251,416			$	272,332
Adjusted efficiency ratio (non-GAAP) ⁽²⁾		65.6		%		65.9		%		59.7		%		65.5		%		54.7		%

⁽¹⁾The reported efficiency ratio is a non-GAAP measure calculated by dividing GAAP non-interest expense by the sum of GAAP net interest income and GAAP non-interest income.
⁽²⁾The adjusted efficiency ratio is a non-GAAP measure calculated by dividing adjusted non-interest expense by the sum of GAAP net interest income and adjusted non-interest income.

The following table presents the tangible common equity to tangible assets, tangible equity to tangible assets, and tangible common book value per share calculations (non-GAAP):


	September 30,				June 30,				September 30,
	2024				2024				2023
Reconciliation of Tangible Assets:
Total assets	$	13,746,529			$	13,548,763			$	13,651,405
Goodwill		(155,797	)			(155,797	)			(155,797	)
Other intangible assets		(4,181	)			(4,467	)			(5,409	)
Tangible assets (non-GAAP)	$	13,586,551			$	13,388,499			$	13,490,199

Reconciliation of Tangible Common Equity – Consolidated:
Total stockholders’ equity	$	1,263,929			$	1,250,596			$	1,204,344
Goodwill		(155,797	)			(155,797	)			(155,797	)
Other intangible assets		(4,181	)			(4,467	)			(5,409	)
Tangible equity (non-GAAP)		1,103,951				1,090,332				1,043,138
Preferred stock, net		(116,569	)			(116,569	)			(116,569	)
Tangible common equity (non-GAAP)	$	987,382			$	973,763			$	926,569

Common shares outstanding		39,152				39,148				38,811

Tangible common equity to tangible assets (non-GAAP)		7.27		%		7.27		%		6.87		%
Tangible equity to tangible assets (non-GAAP)		8.13				8.14				7.73

Book value per common share	$	29.31			$	28.97			$	28.03
Tangible common book value per share (non-GAAP)		25.22				24.87				23.87

The MIL Network –

January 24, 2025

MIL-OSI: Old National Bancorp Reports Third Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

EVANSVILLE, Ind., Oct. 22, 2024 (GLOBE NEWSWIRE) —

Old National Bancorp (NASDAQ: ONB) reports 3Q24 net income applicable to common shares of $139.8 million, diluted EPS of $0.44; $147.2 million and $0.46 on an adjusted¹basis, respectively.

CEO COMMENTARY:

“Old National’s strong 3rd quarter was driven by a focus on our fundamentals: continuing to grow deposits and loans, effectively managing both credit and capital, and creating positive operating leverage through disciplined expense management,” said Chairman and CEO Jim Ryan. “As a result of our ability to execute on this fundamental strategy, we find ourselves well positioned to continue to invest in new markets while attracting exceptional talent to our franchise.”

THIRD QUARTER HIGHLIGHTS²:

Net Income	Net income applicable to common shares of $139.8 million; adjusted net income applicable to common shares¹ of $147.2 million
Net Income	Earnings per diluted common share (“EPS”) of $0.44; adjusted EPS¹ of $0.46

Net Interest Income/NIM	Net interest income on a fully taxable equivalent basis¹ of $397.9 million
Net Interest Income/NIM	Net interest margin on a fully taxable equivalent basis¹ (“NIM”) of 3.32%, down 1 basis point (“bp”)

Operating Performance	Pre-provision net revenue¹ (“PPNR”) of $219.7 million; adjusted PPNR¹ of $229.3 million
	Noninterest expense of $272.3 million; adjusted noninterest expense¹ of $262.8 million
	Efficiency ratio¹ of 53.8%; adjusted efficiency ratio¹ of 51.2%

Deposits and Funding	Period-end total deposits of $40.8 billion, up $0.8 billion; core deposits up $1.0 billion
Deposits and Funding	Granular low-cost deposit franchise; total deposit costs of 225 bps

Loans and Credit Quality	End-of-period total loans³ of $36.5 billion, up 2.7% annualized
	Provision for credit losses⁴ (“provision”) of $28.5 million
	Net charge-offs of $17.5 million, or 19 bps of average loans; 16 bps excluding purchased credit deteriorated (“PCD”) loans that had an allowance at acquisition
	30+ day delinquencies of 0.26% and non-performing loans of 1.22% of total loans

Return Profile & Capital	Return on average tangible common equity¹ of 16.0%; adjusted return on average tangible common equity¹ of 16.8%
Return Profile & Capital	Tangible common equity to tangible assets¹ of 7.4%, up 7.2%

Notable Items	$6.9 million of pre-tax merger-related charges $2.6 million of pre-tax separation expense⁵

¹Non-GAAP financial measure that management believes is useful in evaluating the financial results of the Company – refer to the Non-GAAP reconciliations contained in this release ²Comparisons are on a linked-quarter basis, unless otherwise noted ³Includes loans held-for-sale ⁴Includes the provision for unfunded commitments ⁵Expense associated with a mutual separation agreement with a former Old National executive

RESULTS OF OPERATIONS²
Old National Bancorp (“Old National”) reported third quarter 2024 net income applicable to common shares of $139.8 million, or $0.44 per diluted common share.

Included in third quarter results were pre-tax charges of $6.9 million primarily related to the April 1, 2024 acquisition of CapStar Financial Holdings, Inc. (“CapStar”) and $2.6 million of pre-tax separation expense⁵. Excluding these transactions and realized debt securities gains from the current quarter, adjusted net income¹ was $147.2 million, or $0.46 per diluted common share.

DEPOSITS AND FUNDING
Growth in deposits driven by increases in commercial and community deposits and normal seasonal patterns in public funds, partially offset by lower brokered deposits.

Period-end total deposits were $40.8 billion, up 8.5% annualized; core deposits up 10.1% annualized.
On average, total deposits for the third quarter were $40.6 billion, up 4.8% annualized.
Granular low-cost deposit franchise; total deposit costs of 225 bps.
A loan to deposit ratio of 89%, combined with existing funding sources, provides strong liquidity.

LOANS
Broad-based disciplined commercial loan growth.

Period-end total loans³ were $36.5 billion, up 2.7% annualized.
Total commercial loan production in the third quarter was $1.7 billion; period-end commercial pipeline totaled $2.8 billion.
Average total loans in the third quarter were $36.3 billion, an increase of $235.9 million.

CREDIT QUALITY
Resilient credit quality continues to be a hallmark of Old National.

Provision⁴ expense was $28.5 million compared to $36.2 million, or $20.9 million excluding $15.3 million of current expected credit loss (“CECL”) Day 1 non-PCD provision expense related to the allowance for credit losses established on acquired non-PCD loans in the CapStar transaction in the second quarter of 2024.
Net charge-offs were $17.5 million, or 19 bps of average loans compared to net charge-offs of 16 bps of average loans.
- Excluding PCD loans that had an allowance for credit losses established at acquisition, net charge-offs to average loans were 16 bps.
30+ day delinquencies as a percentage of loans were 0.26% compared to 0.16%.
Nonaccrual loans as a percentage of total loans were 1.22% compared to 0.94%.
Loans acquired from previous acquisitions were recorded at fair value at the acquisition date. The remaining discount on these acquired loans was $174.0 million.
The allowance for credit losses, including the allowance for credit losses on unfunded commitments, stood at $405.9 million, or 1.12% of total loans, compared to $392.1 million, or 1.08% of total loans.

NET INTEREST INCOME AND MARGIN
Higher net interest income and stable margin reflective of the rate environment.

Net interest income on a fully taxable equivalent basis¹ increased to $397.9 million compared to $394.8 million, driven by loan growth as well as higher asset yields and accretion, partly offset by higher funding costs.
Net interest margin on a fully taxable equivalent basis¹ modestly decreased 1 bps to 3.32%.
Accretion income on loans and borrowings was $15.6 million, or 13 bps of net interest margin¹, compared to $11.6 million, or 10 bps of net interest margin¹.
Cost of total deposits was 2.25%, increasing 9 bps and the cost of total interest-bearing deposits increased 9 bps to 2.93%.

NONINTEREST INCOME
Increase driven by higher service charges, mortgage fees, capital markets income, and other income.

Total noninterest income was $94.1 million compared to $87.3 million.
Noninterest income was up 7.9% driven by higher service charges, mortgage fees, capital markets income, and other income.

NONINTEREST EXPENSE
Disciplined expense management.

Noninterest expense was $272.3 million and included $6.9 million of merger-related charges and $2.6 million of pre-tax separation expense⁵.
- Excluding these items, adjusted noninterest expense¹ was $262.8 million, compared to $263.6 million.
The efficiency ratio¹ was 53.8%, while the adjusted efficiency ratio¹ was 51.2% compared to 57.2% and 52.6%, respectively.

INCOME TAXES

Income tax expense was $41.3 million, resulting in an effective tax rate of 22.3% compared to 22.5%. On an adjusted fully taxable equivalent (“FTE”) basis, the effective tax rate was 24.8% compared to 25.5%.
Income tax expense included $4.0 million of tax credit benefit compared to $3.5 million.

CAPITAL
Capital ratios remain strong.

Preliminary total risk-based capital up 23 bps to 12.94% and preliminary regulatory Tier 1 capital up 27 bps to 11.60%, as strong retained earnings drive capital.
Tangible common equity to tangible assets was 7.44% compared to 6.94%.

CONFERENCE CALL AND WEBCAST
Old National will host a conference call and live webcast at 9:00 a.m. Central Time on Tuesday, October 22, 2024, to review third quarter financial results. The live audio webcast link and corresponding presentation slides will be available on the Company’s Investor Relations website at oldnational.com and will be archived there for 12 months. To listen to the live conference call, dial U.S. (800) 715-9871 or International (646) 307-1963, access code 1586600. A replay of the call will also be available from approximately noon Central Time on October 22, 2024 through November 5, 2024. To access the replay, dial U.S. (800) 770-2030 or International (647) 362-9199; Access code 1586600.

ABOUT OLD NATIONAL
Old National Bancorp (NASDAQ: ONB) is the holding company of Old National Bank. As the sixth largest commercial bank headquartered in the Midwest, Old National proudly serves clients primarily in the Midwest and Southeast. With approximately $54 billion of assets and $31 billion of assets under management, Old National ranks among the top 30 banking companies headquartered in the United States. Tracing our roots to 1834, Old National focuses on building long-term, highly valued partnerships with clients while also strengthening and supporting the communities we serve. In addition to providing extensive services in consumer and commercial banking, Old National offers comprehensive wealth management and capital markets services. For more information and financial data, please visit Investor Relations at oldnational.com. In 2024, Points of Light named Old National one of “The Civic 50” – an honor reserved for the 50 most community-minded companies in the United States.

USE OF NON-GAAP FINANCIAL MEASURES
The Company’s accounting and reporting policies conform to U.S. generally accepted accounting principles (“GAAP”) and general practices within the banking industry. As a supplement to GAAP, the Company provides non-GAAP performance results, which the Company believes are useful because they assist investors in assessing the Company’s operating performance. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables at the end of this release.

The Company presents EPS, the efficiency ratio, return on average common equity, return on average tangible common equity, and net income applicable to common shares, all adjusted for certain notable items. These items include merger-related charges associated with completed and pending acquisitions, separation expense, debt securities gains/losses, CECL Day 1 non-PCD provision expense, distribution of excess pension assets expense, FDIC special assessment expense, gain on sale of Visa Class B restricted shares, contract termination charges, expenses related to the tragic April 10, 2023 event at our downtown Louisville location (“Louisville expenses”), and property optimization charges. Management believes excluding these items from EPS, the efficiency ratio, return on average common equity, and return on average tangible common equity may be useful in assessing the Company’s underlying operational performance since these items do not pertain to its core business operations and their exclusion may facilitate better comparability between periods. Management believes that excluding merger-related charges from these metrics may be useful to the Company, as well as analysts and investors, since these expenses can vary significantly based on the size, type, and structure of each acquisition. Additionally, management believes excluding these items from these metrics may enhance comparability for peer comparison purposes.

Income tax expense, provision for credit losses, and the certain notable items listed above are excluded from the calculation of pre-provision net revenues, adjusted due to the fluctuation in income before income tax and the level of provision for credit losses required. Management believes adjusted pre-provision net revenues may be useful in assessing the Company’s underlying operating performance and their exclusion may facilitate better comparability between periods and for peer comparison purposes.

The Company presents adjusted noninterest expense, which excludes merger-related charges associated with completed and pending acquisitions, separation expense, distribution of excess pension assets expense, FDIC special assessment expense, contract termination charges, Louisville expenses, and property optimization charges, as well as adjusted noninterest income, which excludes debt securities gains/losses and the gain on sale of Visa Class B restricted shares. Management believes that excluding these items from noninterest expense and noninterest income may be useful in assessing the Company’s underlying operational performance as these items either do not pertain to its core business operations or their exclusion may facilitate better comparability between periods and for peer comparison purposes.

The tax-equivalent adjustment to net interest income and net interest margin recognizes the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal income tax rate of 21%. Management believes that it is standard practice in the banking industry to present net interest income and net interest margin on a fully tax-equivalent basis and that it may enhance comparability for peer comparison purposes.

In management’s view, tangible common equity measures are capital adequacy metrics that may be meaningful to the Company, as well as analysts and investors, in assessing the Company’s use of equity and in facilitating comparisons with peers. These non-GAAP measures are valuable indicators of a financial institution’s capital strength since they eliminate intangible assets from stockholders’ equity and retain the effect of accumulated other comprehensive loss in stockholders’ equity.

Although intended to enhance investors’ understanding of the Company’s business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. In addition, these non-GAAP financial measures may differ from those used by other financial institutions to assess their business and performance. See the following reconciliations in the “Non-GAAP Reconciliations” section for details on the calculation of these measures to the extent presented herein.

FORWARD-LOOKING STATEMENTS
This communication contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”), notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in our future filings with the Securities and Exchange Commission (“SEC”), in press releases, and in oral and written statements made by us that are not statements of historical fact and constitute forward‐looking statements within the meaning of the Act. These statements include, but are not limited to, descriptions of Old National’s financial condition, results of operations, asset and credit quality trends, profitability and business plans or opportunities. Forward-looking statements can be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “should,” “would,” and “will,” and other words of similar meaning. These forward-looking statements express management’s current expectations or forecasts of future events and, by their nature, are subject to risks and uncertainties. There are a number of factors that could cause actual results or outcomes to differ materially from those in such statements, including, but not limited to: competition; government legislation, regulations and policies; the ability of Old National to execute its business plan; unanticipated changes in our liquidity position, including but not limited to changes in our access to sources of liquidity and capital to address our liquidity needs; changes in economic conditions and economic and business uncertainty which could materially impact credit quality trends and the ability to generate loans and gather deposits; inflation and governmental responses to inflation, including increasing interest rates; market, economic, operational, liquidity, credit, and interest rate risks associated with our business; our ability to successfully manage our credit risk and the sufficiency of our allowance for credit losses; the expected cost savings, synergies and other financial benefits from the merger (the “Merger”) between Old National and CapStar Financial Holdings, Inc. not being realized within the expected time frames and costs or difficulties relating to integration matters being greater than expected; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the Merger; the potential impact of future business combinations on our performance and financial condition, including our ability to successfully integrate the businesses and the success of revenue-generating and cost reduction initiatives; failure or circumvention of our internal controls; operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity, technological changes, vendor issues, business interruption, and fraud risks; significant changes in accounting, tax or regulatory practices or requirements; new legal obligations or liabilities; disruptive technologies in payment systems and other services traditionally provided by banks; failure or disruption of our information systems; computer hacking and other cybersecurity threats; the effects of climate change on Old National and its customers, borrowers, or service providers; political and economic uncertainty and instability; the impacts of pandemics, epidemics and other infectious disease outbreaks; other matters discussed in this communication; and other factors identified in our Annual Report on Form 10-K for the year ended December 31, 2023 and other filings with the SEC. These forward-looking statements are made only as of the date of this communication and are not guarantees of future results, performance or outcomes, and Old National does not undertake an obligation to update these forward-looking statements to reflect events or conditions after the date of this communication.

CONTACTS:
Media: Kathy Schoettlin		Investors: Lynell Durchholz
(812) 465-7269		(812) 464-1366
Kathy.Schoettlin@oldnational.com		Lynell.Durchholz@oldnational.com


Financial Highlights (unaudited)
($ and shares in thousands, except per share data)

	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
		2024			2024			2024			2023			2023			2024			2023
Income Statement
Net interest income	$	391,724		$	388,421		$	356,458		$	364,408		$	375,086		$	1,136,603		$	1,138,745
FTE adjustment^1,3		6,144			6,340			6,253			6,100			5,837			18,737			17,328
Net interest income – tax equivalent basis³		397,868			394,761			362,711			370,508			380,923			1,155,340			1,156,073
Provision for credit losses		28,497			36,214			18,891			11,595			19,068			83,602			47,292
Noninterest income		94,138			87,271			77,522			100,094			80,938			258,931			233,248
Noninterest expense		272,283			282,999			262,317			284,235			244,776			817,599			742,071
Net income available to common shareholders	$	139,768		$	117,196		$	116,250		$	128,446		$	143,842		$	373,214		$	437,411
Per Common Share Data
Weighted average diluted shares		317,331			316,461			292,207			292,029			291,717			308,605			291,809
EPS, diluted	$	0.44		$	0.37		$	0.40		$	0.44		$	0.49		$	1.21		$	1.50
Cash dividends		0.14			0.14			0.14			0.14			0.14			0.42			0.42
Dividend payout ratio²		32	%		38	%		35	%		32	%		29	%		35	%		28	%
Book value	$	19.20		$	18.28		$	18.24		$	18.18		$	17.07		$	19.20		$	17.07
Stock price		18.66			17.19			17.41			16.89			14.54			18.66			14.54
Tangible book value³		11.97			11.05			11.10			11.00			9.87			11.97			9.87
Performance Ratios
ROAA		1.08	%		0.92	%		0.98	%		1.09	%		1.22	%		0.99	%		1.25	%
ROAE		9.4	%		8.2	%		8.7	%		10.2	%		11.4	%		8.8	%		11.7	%
ROATCE³		16.0	%		14.1	%		14.9	%		18.1	%		20.2	%		15.0	%		20.8	%
NIM (FTE)		3.32	%		3.33	%		3.28	%		3.39	%		3.49	%		3.31	%		3.59	%
Efficiency ratio³		53.8	%		57.2	%		58.3	%		59.0	%		51.7	%		56.4	%		51.9	%
NCOs to average loans		0.19	%		0.16	%		0.14	%		0.12	%		0.24	%		0.16	%		0.19	%
ACL on loans to EOP loans		1.05	%		1.01	%		0.95	%		0.93	%		0.93	%		1.05	%		0.93	%
ACL⁴ to EOP loans		1.12	%		1.08	%		1.03	%		1.03	%		1.03	%		1.12	%		1.03	%
NPLs to EOP loans		1.22	%		0.94	%		0.98	%		0.83	%		0.80	%		1.22	%		0.80	%
Balance Sheet (EOP)
Total loans	$	36,400,643		$	36,150,513		$	33,623,319		$	32,991,927		$	32,577,834		$	36,400,643		$	32,577,834
Total assets		53,602,293			53,119,645			49,534,918			49,089,836			49,059,448			53,602,293			49,059,448
Total deposits		40,845,746			39,999,228			37,699,418			37,235,180			37,252,676			40,845,746			37,252,676
Total borrowed funds		5,449,096			6,085,204			5,331,161			5,331,147			5,556,010			5,449,096			5,556,010
Total shareholders’ equity		6,367,298			6,075,072			5,595,408			5,562,900			5,239,537			6,367,298			5,239,537
Capital Ratios
Risk-based capital ratios (EOP):
Tier 1 common equity		11.00	%		10.73	%		10.76	%		10.70	%		10.41	%		11.00	%		10.41	%
Tier 1 capital		11.60	%		11.33	%		11.40	%		11.35	%		11.06	%		11.60	%		11.06	%
Total capital		12.94	%		12.71	%		12.74	%		12.64	%		12.32	%		12.94	%		12.32	%
Leverage ratio (average assets)		9.05	%		8.90	%		8.96	%		8.83	%		8.70	%		9.05	%		8.70	%
Equity to assets (averages)³		11.60	%		11.31	%		11.32	%		10.81	%		10.88	%		11.41	%		10.95	%
TCE to TA³		7.44	%		6.94	%		6.86	%		6.85	%		6.15	%		7.44	%		6.15	%
Nonfinancial Data
Full-time equivalent employees		4,105			4,267			3,955			3,940			3,981			4,105			3,981
Banking centers		280			280			258			258			257			280			257
¹ Calculated using the federal statutory tax rate in effect of 21% for all periods.
² Cash dividends per common share divided by net income per common share (basic).
³ Represents a non-GAAP financial measure. Refer to the “Non-GAAP Measures” table for reconciliations to GAAP financial measures. September 30, 2024 capital ratios are preliminary.
⁴ Includes the allowance for credit losses on loans and unfunded loan commitments.

FTE – Fully taxable equivalent basis ROAA – Return on average assets ROAE – Return on average equity ROATCE – Return on average tangible common equity
NCOs – Net Charge-offs ACL – Allowance for Credit Losses EOP – End of period actual balances NPLs – Non-performing Loans TCE – Tangible common equity TA – Tangible assets


Income Statement (unaudited)
($ and shares in thousands, except per share data)
	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
		2024			2024			2024			2023			2023			2024			2023
Interest income	$	679,925		$	663,663		$	595,981		$	589,751		$	576,519		$	1,939,569		$	1,617,070
Less: interest expense		288,201			275,242			239,523			225,343			201,433			802,966			478,325
Net interest income		391,724			388,421			356,458			364,408			375,086			1,136,603			1,138,745
Provision for credit losses		28,497			36,214			18,891			11,595			19,068			83,602			47,292
Net interest income after provision for credit losses		363,227			352,207			337,567			352,813			356,018			1,053,001			1,091,453
Wealth and investment services fees		29,117			29,358			28,304			27,656			26,687			86,779			80,128
Service charges on deposit accounts		20,350			19,350			17,898			18,667			18,524			57,598			53,278
Debit card and ATM fees		11,362			10,993			10,054			10,700			10,818			32,409			31,453
Mortgage banking revenue		7,669			7,064			4,478			3,691			5,063			19,211			12,628
Capital markets income		7,426			4,729			2,900			5,416			5,891			15,055			19,003
Company-owned life insurance		5,315			5,739			3,434			3,773			3,740			14,488			11,624
Gain on sale of Visa Class B restricted shares		—			—			—			21,635			—			—			—
Other income		12,975			10,036			10,470			9,381			10,456			33,481			30,574
Debt securities gains (losses), net		(76	)		2			(16	)		(825	)		(241	)		(90	)		(5,440	)
Total noninterest income		94,138			87,271			77,522			100,094			80,938			258,931			233,248
Salaries and employee benefits		147,494			159,193			149,803			141,649			131,541			456,490			404,715
Occupancy		27,130			26,547			27,019			26,514			25,795			80,696			80,162
Equipment		9,888			8,704			8,671			8,769			8,284			27,263			23,394
Marketing		11,036			11,284			10,634			10,813			9,448			32,954			28,698
Technology		23,343			24,002			20,023			20,493			20,592			67,368			59,850
Communication		4,681			4,480			4,000			4,212			4,075			13,161			12,768
Professional fees		7,278			10,552			6,406			8,250			5,956			24,236			19,085
FDIC assessment		11,722			9,676			11,313			27,702			9,000			32,711			29,028
Amortization of intangibles		7,411			7,425			5,455			5,869			6,040			20,291			18,286
Amortization of tax credit investments		3,277			2,747			2,749			7,200			2,644			8,773			8,167
Other expense		19,023			18,389			16,244			22,764			21,401			53,656			57,918
Total noninterest expense		272,283			282,999			262,317			284,235			244,776			817,599			742,071
Income before income taxes		185,082			156,479			152,772			168,672			192,180			494,333			582,630
Income tax expense		41,280			35,250			32,488			36,192			44,304			109,018			133,118
Net income	$	143,802		$	121,229		$	120,284		$	132,480		$	147,876		$	385,315		$	449,512
Preferred dividends		(4,034	)		(4,033	)		(4,034	)		(4,034	)		(4,034	)		(12,101	)		(12,101	)
Net income applicable to common shares	$	139,768		$	117,196		$	116,250		$	128,446		$	143,842		$	373,214		$	437,411

EPS, diluted	$	0.44		$	0.37		$	0.40		$	0.44		$	0.49		$	1.21		$	1.50
Weighted Average Common Shares Outstanding
Basic		315,622			315,585			290,980			290,701			290,648			307,426			290,763
Diluted		317,331			316,461			292,207			292,029			291,717			308,605			291,809
Common shares outstanding (EOP)		318,955			318,969			293,330			292,655			292,586			318,955			292,586


End of Period Balance Sheet (unaudited)
($ in thousands)
	September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023
Assets
Cash and due from banks	$	498,120		$	428,665		$	350,990		$	430,866		$	381,343
Money market and other interest-earning investments		693,450			804,381			588,509			744,192			1,282,087
Investments:
Treasury and government-sponsored agencies		2,335,716			2,207,004			2,243,754			2,453,950			2,515,249
Mortgage-backed securities		6,085,826			5,890,371			5,566,881			5,245,691			4,906,290
States and political subdivisions		1,665,128			1,678,597			1,672,061			1,693,819			1,705,200
Other securities		783,079			775,623			760,847			779,048			751,404
Total investments		10,869,749			10,551,595			10,243,543			10,172,508			9,878,143
Loans held-for-sale, at fair value		62,376			66,126			19,418			32,006			122,033
Loans:
Commercial		10,408,095			10,332,631			9,648,269			9,512,230			9,333,448
Commercial and agriculture real estate		16,356,216			16,016,958			14,653,958			14,140,629			13,916,221
Residential real estate		6,757,896			6,894,957			6,661,379			6,699,443			6,696,288
Consumer		2,878,436			2,905,967			2,659,713			2,639,625			2,631,877
Total loans		36,400,643			36,150,513			33,623,319			32,991,927			32,577,834
Allowance for credit losses on loans		(380,840	)		(366,335	)		(319,713	)		(307,610	)		(303,982	)
Premises and equipment, net		599,528			601,945			564,007			565,396			565,607
Goodwill and other intangible assets		2,305,084			2,306,204			2,095,511			2,100,966			2,106,835
Company-owned life insurance		863,723			862,032			767,423			767,902			774,517
Accrued interest receivable and other assets		1,690,460			1,714,519			1,601,911			1,591,683			1,675,031
Total assets	$	53,602,293		$	53,119,645		$	49,534,918		$	49,089,836		$	49,059,448

Liabilities and Equity
Noninterest-bearing demand deposits	$	9,429,285		$	9,336,042		$	9,257,709		$	9,664,247		$	10,091,352
Interest-bearing:
Checking and NOW accounts		7,314,245			7,680,865			7,236,667			7,331,487			7,495,417
Savings accounts		4,781,447			4,983,811			5,020,095			5,099,186			5,296,985
Money market accounts		11,601,461			10,485,491			10,234,113			9,561,116			8,793,218
Other time deposits		6,010,070			5,688,432			4,760,659			4,565,137			4,398,182
Total core deposits		39,136,508			38,174,641			36,509,243			36,221,173			36,075,154
Brokered deposits		1,709,238			1,824,587			1,190,175			1,014,007			1,177,522
Total deposits		40,845,746			39,999,228			37,699,418			37,235,180			37,252,676

Federal funds purchased and interbank borrowings		135,263			250,154			50,416			390			918
Securities sold under agreements to repurchase		244,626			240,713			274,493			285,206			279,061
Federal Home Loan Bank advances		4,471,153			4,744,560			4,193,039			4,280,681			4,412,576
Other borrowings		598,054			849,777			813,213			764,870			863,455
Total borrowed funds		5,449,096			6,085,204			5,331,161			5,331,147			5,556,010
Accrued expenses and other liabilities		940,153			960,141			908,931			960,609			1,011,225
Total liabilities		47,234,995			47,044,573			43,939,510			43,526,936			43,819,911
Preferred stock, common stock, surplus, and retained earnings		6,971,054			6,866,480			6,375,036			6,301,709			6,208,352
Accumulated other comprehensive income (loss), net of tax		(603,756	)		(791,408	)		(779,628	)		(738,809	)		(968,815	)
Total shareholders’ equity		6,367,298			6,075,072			5,595,408			5,562,900			5,239,537
Total liabilities and shareholders’ equity	$	53,602,293		$	53,119,645		$	49,534,918		$	49,089,836		$	49,059,448


Average Balance Sheet and Interest Rates (unaudited)
($ in thousands)


	Three Months Ended							Three Months Ended							Three Months Ended
	September 30, 2024							June 30, 2024							September 30, 2023
	Average			Income¹/		Yield/		Average			Income¹/		Yield/		Average			Income¹/		Yield/
Earning Assets:	Balance			Expense		Rate		Balance			Expense		Rate		Balance			Expense		Rate
Money market and other interest-earning investments	$	904,176		$	11,696	5.15	%	$	814,944		$	11,311	5.58	%	$	980,813		$	13,194	5.34	%
Investments:
Treasury and government-sponsored agencies		2,255,629			21,851	3.87	%		2,208,935			21,531	3.90	%		2,376,864			23,037	3.88	%
Mortgage-backed securities		5,977,058			48,425	3.24	%		5,828,225			47,904	3.29	%		5,079,091			33,237	2.62	%
States and political subdivisions		1,668,454			14,042	3.37	%		1,686,994			14,290	3.39	%		1,737,037			14,220	3.27	%
Other securities		785,107			12,547	6.39	%		788,571			12,583	6.38	%		793,196			10,127	5.11	%
Total investments		10,686,248			96,865	3.63	%		10,512,725			96,308	3.66	%		9,986,188			80,621	3.23	%
Loans:²
Commercial		10,373,340			183,878	7.09	%		10,345,098			183,425	7.09	%		9,612,102			163,869	6.82	%
Commercial and agriculture real estate		16,216,842			274,832	6.78	%		15,870,809			260,407	6.56	%		13,711,156			219,575	6.41	%
Residential real estate loans		6,833,597			67,084	3.93	%		6,952,942			67,683	3.89	%		6,712,269			62,775	3.74	%
Consumer		2,891,260			51,714	7.12	%		2,910,331			50,869	7.03	%		2,614,928			42,322	6.42	%
Total loans		36,315,039			577,508	6.36	%		36,079,180			562,384	6.24	%		32,650,455			488,541	5.98	%

Total earning assets	$	47,905,463		$	686,069	5.73	%	$	47,406,849		$	670,003	5.66	%	$	43,617,456		$	582,356	5.34	%

Less: Allowance for credit losses on loans		(366,667	)						(331,043	)						(300,071	)

Non-earning Assets:
Cash and due from banks	$	413,583						$	430,256						$	382,755
Other assets		5,394,032							5,341,022							4,960,383

Total assets	$	53,346,411						$	52,847,084						$	48,660,523

Interest-Bearing Liabilities:
Checking and NOW accounts	$	7,551,264		$	29,344	1.55	%	$	8,189,454		$	34,398	1.69	%	$	7,515,439		$	25,531	1.35	%
Savings accounts		4,860,161			5,184	0.42	%		5,044,800			5,254	0.42	%		5,414,775			4,268	0.31	%
Money market accounts		11,064,433			106,148	3.82	%		10,728,156			102,560	3.84	%		7,979,999			65,549	3.26	%
Other time deposits		5,928,241			64,435	4.32	%		5,358,103			56,586	4.25	%		4,229,692			37,110	3.48	%
Total interest-bearing core deposits		29,404,099			205,111	2.78	%		29,320,513			198,798	2.73	%		25,139,905			132,458	2.09	%
Brokered deposits		1,829,218			24,616	5.35	%		1,244,237			17,008	5.50	%		1,183,228			14,970	5.02	%
Total interest-bearing deposits		31,233,317			229,727	2.93	%		30,564,750			215,806	2.84	%		26,323,133			147,428	2.22	%

Federal funds purchased and interbank borrowings		14,549			292	7.98	%		148,835			1,986	5.37	%		62,921			910	5.74	%
Securities sold under agreements to repurchase		239,524			612	1.02	%		249,939			639	1.03	%		302,305			710	0.93	%
Federal Home Loan Bank advances		4,572,046			47,719	4.15	%		4,473,978			44,643	4.01	%		4,537,250			40,382	3.53	%
Other borrowings		754,544			9,851	5.19	%		891,609			12,168	5.49	%		841,307			12,003	5.66	%
Total borrowed funds		5,580,663			58,474	4.17	%		5,764,361			59,436	4.15	%		5,743,783			54,005	3.73	%

Total interest-bearing liabilities	$	36,813,980		$	288,201	3.11	%	$	36,329,111		$	275,242	3.05	%	$	32,066,916		$	201,433	2.49	%

Noninterest-Bearing Liabilities and Shareholders’ Equity
Demand deposits	$	9,371,698						$	9,558,675						$	10,338,267
Other liabilities		970,662							980,322							961,268
Shareholders’ equity		6,190,071							5,978,976							5,294,072

Total liabilities and shareholders’ equity	$	53,346,411						$	52,847,084						$	48,660,523

Net interest rate spread						2.62	%						2.61	%						2.85	%

Net interest margin (GAAP)						3.27	%						3.28	%						3.44	%

Net interest margin (FTE)³						3.32	%						3.33	%						3.49	%

FTE adjustment				$	6,144						$	6,340						$	5,837

¹ Interest income is reflected on a FTE basis.
² Includes loans held-for-sale.
³ Represents a non-GAAP financial measure. Refer to the “Non-GAAP Measures” table for reconciliations to GAAP financial measures.


Average Balance Sheet and Interest Rates (unaudited)
($ in thousands)


	Nine Months Ended							Nine Months Ended
	September 30, 2024							September 30, 2023
	Average			Income¹/		Yield/		Average			Income¹/		Yield/
Earning Assets:	Balance			Expense		Rate		Balance			Expense		Rate
Money market and other interest-earning investments	$	825,743		$	32,992	5.34	%	$	736,225		$	25,258	4.59	%
Investments:
Treasury and government-sponsored agencies		2,275,607			66,648	3.91	%		2,266,177			58,923	3.47	%
Mortgage-backed securities		5,721,725			135,217	3.15	%		5,268,509			102,618	2.60	%
States and political subdivisions		1,678,504			42,308	3.36	%		1,771,155			43,306	3.26	%
Other securities		781,385			37,303	6.37	%		785,474			28,726	4.88	%
Total investments	$	10,457,221		$	281,476	3.59	%	$	10,091,315		$	233,573	3.09	%
Loans:²
Commercial		10,087,322			534,566	7.07	%		9,644,541			475,210	6.57	%
Commercial and agriculture real estate		15,488,010			765,325	6.59	%		13,180,509			598,337	6.05	%
Residential real estate loans		6,826,809			197,770	3.86	%		6,626,551			181,592	3.65	%
Consumer		2,815,837			146,177	6.93	%		2,612,519			120,428	6.16	%
Total loans		35,217,978			1,643,838	6.22	%		32,064,120			1,375,567	5.72	%

Total earning assets	$	46,500,942		$	1,958,306	5.62	%	$	42,891,660		$	1,634,398	5.08	%

Less: Allowance for credit losses on loans		(337,168	)						(301,909	)

Non-earning Assets:
Cash and due from banks	$	402,213						$	412,998
Other assets		5,232,807							4,917,592

Total assets	$	51,798,794						$	47,920,341

Interest-Bearing Liabilities:
Checking and NOW accounts	$	7,627,029		$	88,994	1.56	%	$	7,793,561		$	69,248	1.19	%
Savings accounts		4,976,361			15,455	0.41	%		5,791,780			9,745	0.22	%
Money market accounts		10,571,821			302,921	3.83	%		6,577,317			120,917	2.46	%
Other time deposits		5,327,361			168,453	4.22	%		3,660,156			79,032	2.89	%
Total interest-bearing core deposits		28,502,572			575,823	2.70	%		23,822,814			278,942	1.57	%
Brokered deposits		1,375,231			55,149	5.36	%		879,886			32,053	4.87	%
Total interest-bearing deposits		29,877,803			630,972	2.82	%		24,702,700			310,995	1.68	%

Federal funds purchased and interbank borrowings		77,262			3,239	5.60	%		306,480			11,404	4.97	%
Securities sold under agreements to repurchase		261,818			2,168	1.11	%		351,362			2,389	0.91	%
Federal Home Loan Bank advances		4,477,851			133,529	3.98	%		4,699,074			123,466	3.51	%
Other borrowings		823,746			33,058	5.36	%		806,575			30,071	4.98	%
Total borrowed funds		5,640,677			171,994	4.07	%		6,163,491			167,330	3.63	%

Total interest-bearing liabilities		35,518,480			802,966	3.02	%		30,866,191			478,325	2.07	%

Noninterest-Bearing Liabilities and Shareholders’ Equity
Demand deposits	$	9,396,081						$	10,864,375
Other liabilities		971,687							944,619
Shareholders’ equity		5,912,546							5,245,156

Total liabilities and shareholders’ equity	$	51,798,794						$	47,920,341

Net interest rate spread						2.60	%						3.01	%

Net interest margin (GAAP)						3.26	%						3.54	%

Net interest margin (FTE)³						3.31	%						3.59	%

FTE adjustment				$	18,737						$	17,328

¹ Interest income is reflected on a FTE.
² Includes loans held-for-sale.
³ Represents a non-GAAP financial measure. Refer to the “Non-GAAP Measures” table for reconciliations to GAAP financial measures.


Asset Quality (EOP) (unaudited)
($ in thousands)

	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
		2024			2024			2024			2023			2023			2024			2023
Allowance for credit losses:
Beginning allowance for credit losses on loans	$	366,335		$	319,713		$	307,610		$	303,982		$	300,555		$	307,610		$	303,671
Allowance established for acquired PCD loans		2,803			23,922			—			—			—			26,725			—
Provision for credit losses on loans		29,176			36,745			23,853			13,329			23,115			89,774			46,520
Gross charge-offs		(18,965	)		(17,041	)		(14,020	)		(13,202	)		(22,750	)		(50,026	)		(55,261	)
Gross recoveries		1,491			2,996			2,270			3,501			3,062			6,757			9,052
NCOs		(17,474	)		(14,045	)		(11,750	)		(9,701	)		(19,688	)		(43,269	)		(46,209	)
Ending allowance for credit losses on loans	$	380,840		$	366,335		$	319,713		$	307,610		$	303,982		$	380,840		$	303,982
Beginning allowance for credit losses on unfunded commitments	$	25,733		$	26,264		$	31,226		$	32,960		$	37,007		$	31,226		$	32,188
Provision (release) for credit losses on unfunded commitments		(679	)		(531	)		(4,962	)		(1,734	)		(4,047	)		(6,172	)		772
Ending allowance for credit losses on unfunded commitments	$	25,054		$	25,733		$	26,264		$	31,226		$	32,960		$	25,054		$	32,960
Allowance for credit losses	$	405,894		$	392,068		$	345,977		$	338,836		$	336,942		$	405,894		$	336,942
Provision for credit losses on loans	$	29,176		$	36,745		$	23,853		$	13,329		$	23,115		$	89,774		$	46,520
Provision (release) for credit losses on unfunded commitments		(679	)		(531	)		(4,962	)		(1,734	)		(4,047	)		(6,172	)		772
Provision for credit losses	$	28,497		$	36,214		$	18,891		$	11,595		$	19,068		$	83,602		$	47,292
NCOs / average loans¹		0.19	%		0.16	%		0.14	%		0.12	%		0.24	%		0.16	%		0.19	%
Average loans¹	$	36,299,544		$	36,053,845		$	33,242,739		$	32,752,406		$	32,639,812		$	35,202,727		$	32,057,989
EOP loans¹		36,400,643			36,150,513			33,623,319			32,991,927			32,577,834			36,400,643			32,577,834
ACL on loans / EOP loans¹		1.05	%		1.01	%		0.95	%		0.93	%		0.93	%		1.05	%		0.93	%
ACL / EOP loans¹		1.12	%		1.08	%		1.03	%		1.03	%		1.03	%		1.12	%		1.03	%
Underperforming Assets:
Loans 90 days and over (still accruing)	$	1,177		$	5,251		$	2,172		$	961		$	1,192		$	1,177		$	1,192
Nonaccrual loans		443,597			340,181			328,645			274,821			261,346			443,597			261,346
Foreclosed assets		4,077			8,290			9,344			9,434			9,761			4,077			9,761
Total underperforming assets	$	448,851		$	353,722		$	340,161		$	285,216		$	272,299		$	448,851		$	272,299
Classified and Criticized Assets:
Nonaccrual loans	$	443,597		$	340,181		$	328,645		$	274,821		$	261,346		$	443,597		$	261,346
Substandard loans (still accruing)		1,074,243			841,087			626,157			599,358			563,427			1,074,243			563,427
Loans 90 days and over (still accruing)		1,177			5,251			2,172			961			1,192			1,177			1,192
Total classified loans – “problem loans”		1,519,017			1,186,519			956,974			875,140			825,965			1,519,017			825,965
Other classified assets		59,485			60,772			54,392			48,930			48,998			59,485			48,998
Special Mention		837,543			967,655			827,419			843,920			775,526			837,543			775,526
Total classified and criticized assets	$	2,416,045		$	2,214,946		$	1,838,785		$	1,767,990		$	1,650,489		$	2,416,045		$	1,650,489
Loans 30-89 days past due (still accruing)	$	91,750		$	51,712		$	53,112		$	71,868		$	56,772		$	91,750		$	56,772
Nonaccrual loans / EOP loans¹		1.22	%		0.94	%		0.98	%		0.83	%		0.80	%		1.22	%		0.80	%
ACL / nonaccrual loans		92	%		115	%		105	%		123	%		129	%		92	%		129	%
Under-performing assets/EOP loans¹		1.23	%		0.98	%		1.01	%		0.86	%		0.84	%		1.23	%		0.84	%
Under-performing assets/EOP assets		0.84	%		0.67	%		0.69	%		0.58	%		0.56	%		0.84	%		0.56	%
30+ day delinquencies/EOP loans¹		0.26	%		0.16	%		0.16	%		0.22	%		0.18	%		0.26	%		0.18	%

¹ Excludes loans held-for-sale.


Non-GAAP Measures (unaudited)
($ and shares in thousands, except per share data)

	Three Months Ended																Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,				September 30,			September 30,
		2024			2024			2024			2023			2023				2024			2023
Earnings Per Share:
Net income applicable to common shares	$	139,768		$	117,196		$	116,250		$	128,446		$	143,842			$	373,214		$	437,411
Adjustments:
Merger-related charges		6,860			19,440			2,908			5,529			6,257				29,208			23,187
Tax effect¹		(1,528	)		(4,413	)		(710	)		(1,343	)		(1,042	)			(6,651	)		(4,491	)
Merger-related charges, net		5,332			15,027			2,198			4,186			5,215				22,557			18,696
Separation expense		2,646			—			—			—			—				2,646			—
Tax effect¹		(589	)		—			—			—			—				(589	)		—
Separation expense, net		2,057			—			—			—			—				2,057			—
Debt securities (gains) losses		76			(2	)		16			825			241				90			5,440
Tax effect¹		(17	)		1			(4	)		(200	)		(40	)			(20	)		(1,175	)
Debt securities (gains) losses, net		59			(1	)		12			625			201				70			4,265
CECL Day 1 non-PCD provision expense		—			15,312			—			—			—				15,312			—
Tax effect¹		—			(3,476	)		—			—			—				(3,476	)		—
CECL Day 1 non-PCD provision expense, net		—			11,836			—			—			—				11,836			—
Distribution of excess pension assets		—			—			13,318			—			—		—		13,318			—
Tax effect¹		—			—			(3,250	)		—			—		—		(3,250	)		—
Distribution excess pension assets, net		—			—			10,068			—			—				10,068			—
FDIC special assessment		—			—			2,994			19,052			—				2,994			—
Tax effect¹		—			—			(731	)		(4,628	)		—				(731	)		—
FDIC special assessment, net		—			—			2,263			14,424			—				2,263			—
Gain on sale of Visa Class B restricted shares		—			—			—			(21,635	)		—				—			—
Tax effect¹		—			—			—			5,255			—				—			—
Gain on sale of Visa Class B restricted shares, net		—			—			—			(16,380	)		—				—			—
Contract termination charge		—			—			—			4,413			—				—			—
Tax effect¹		—			—			—			(1,072	)		—				—			—
Contract termination charge, net		—			—			—			3,341			—				—			—
Louisville expenses		—			—			—			—			—				—			3,361
Tax effect¹		—			—			—			—			—				—			(392	)
Louisville expenses, net		—			—			—			—			—				—			2,969
Property optimization charges		—			—			—			—			—				—			1,559
Tax effect¹		—			—			—			—			—				—			(315	)
Property optimization charges, net		—			—			—			—			—				—			1,244
Total adjustments, net		7,448			26,862			14,541			6,196			5,416				48,851			27,174
Net income applicable to common shares, adjusted	$	147,216		$	144,058		$	130,791		$	134,642		$	149,258			$	422,065		$	464,585
Weighted average diluted common shares outstanding		317,331			316,461			292,207			292,029			291,717				308,605			291,809
EPS, diluted	$	0.44		$	0.37		$	0.40		$	0.44		$	0.49			$	1.21		$	1.50
Adjusted EPS, diluted	$	0.46		$	0.46		$	0.45		$	0.46		$	0.51			$	1.37		$	1.59
NIM:
Net interest income	$	391,724		$	388,421		$	356,458		$	364,408		$	375,086			$	1,136,603		$	1,138,745
Add: FTE adjustment²		6,144			6,340			6,253			6,100			5,837				18,737			17,328
Net interest income (FTE)	$	397,868		$	394,761		$	362,711		$	370,508		$	380,923			$	1,155,340		$	1,156,073
Average earning assets	$	47,905,463		$	47,406,849		$	44,175,079		$	43,701,283		$	43,617,456			$	46,500,942		$	42,891,660
NIM (GAAP)		3.27	%		3.28	%		3.23	%		3.34	%		3.44	%			3.26	%		3.54	%
NIM (FTE)		3.32	%		3.33	%		3.28	%		3.39	%		3.49	%			3.31	%		3.59	%

Refer to last page of Non-GAAP reconciliations for footnotes.


Non-GAAP Measures (unaudited)
($ in thousands)

	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
		2024			2024			2024			2023			2023			2024			2023
PPNR:
Net interest income (FTE)²	$	397,868		$	394,761		$	362,711		$	370,508		$	380,923		$	1,155,340		$	1,156,073
Add: Noninterest income		94,138			87,271			77,522			100,094			80,938			258,931			233,248
Total revenue (FTE)		492,006			482,032			440,233			470,602			461,861			1,414,271			1,389,321
Less: Noninterest expense		(272,283	)		(282,999	)		(262,317	)		(284,235	)		(244,776	)		(817,599	)		(742,071	)
PPNR	$	219,723		$	199,033		$	177,916		$	186,367		$	217,085		$	596,672		$	647,250
Adjustments:
Gain on sale of Visa Class B restricted shares	$	—		$	—		$	—		$	(21,635	)	$	—		$	—		$	—
Debt securities (gains) losses		76			(2	)		16			825			241			90			5,440
Noninterest income adjustments		76			(2	)		16			(20,810	)		241			90			5,440
Adjusted noninterest income		94,214			87,269			77,538			79,284			81,179			259,021			238,688
Adjusted revenue	$	492,082		$	482,030		$	440,249		$	449,792		$	462,102		$	1,414,361		$	1,394,761
Adjustments:
Merger-related charges	$	6,860		$	19,440		$	2,908		$	5,529		$	6,257		$	29,208		$	23,187
Separation expense		2,646			—			—			—			—			2,646			—
Distribution of excess pension assets		—			—			13,318			—			—			13,318			—
FDIC Special Assessment		—			—			2,994			19,052			—			2,994			—
Contract termination charges		—			—			—			4,413			—			—			—
Louisville expenses		—			—			—			—			—			—			3,361
Property optimization charges		—			—			—			—			—			—			1,559
Noninterest expense adjustments		9,506			19,440			19,220			28,994			6,257			48,166			28,107
Adjusted total noninterest expense		(262,777	)		(263,559	)		(243,097	)		(255,241	)		(238,519	)		(769,433	)		(713,964	)
Adjusted PPNR	$	229,305		$	218,471		$	197,152		$	194,551		$	223,583		$	644,928		$	680,797
Efficiency Ratio:
Noninterest expense	$	272,283		$	282,999		$	262,317		$	284,235		$	244,776		$	817,599		$	742,071
Less: Amortization of intangibles		(7,411	)		(7,425	)		(5,455	)		(5,869	)		(6,040	)		(20,291	)		(18,286	)
Noninterest expense, excl. amortization of intangibles		264,872			275,574			256,862			278,366			238,736			797,308			723,785
Less: Amortization of tax credit investments		(3,277	)		(2,747	)		(2,749	)		(7,200	)		(2,644	)		(8,773	)		(8,167	)
Less: Noninterest expense adjustments		(9,506	)		(19,440	)		(19,220	)		(28,994	)		(6,257	)		(48,166	)		(28,107	)
Adjusted noninterest expense, excluding amortization	$	252,089		$	253,387		$	234,893		$	242,172		$	229,835		$	740,369		$	687,511
Total revenue (FTE)²	$	492,006		$	482,032		$	440,233		$	470,602		$	461,861		$	1,414,271		$	1,389,321
Less: Debt securities (gains) losses		76			(2	)		16			825			241			90			5,440
Total revenue excl. debt securities (gains) losses		492,082			482,030			440,249			471,427			462,102			1,414,361			1,394,761
Less: Gain on sale of Visa Class B restricted shares		—			—			—			(21,635	)		—			—			—
Total adjusted revenue	$	492,082		$	482,030		$	440,249		$	449,792		$	462,102		$	1,414,361		$	1,394,761
Efficiency Ratio		53.8	%		57.2	%		58.3	%		59.0	%		51.7	%		56.4	%		51.9	%
Adjusted Efficiency Ratio		51.2	%		52.6	%		53.4	%		53.8	%		49.7	%		52.3	%		49.3	%

Refer to last page of Non-GAAP reconciliations for footnotes.


Non-GAAP Measures (unaudited)
($ in thousands)

	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
		2024			2024			2024			2023			2023			2024			2023
ROAE and ROATCE:
Net income applicable to common shares	$	139,768		$	117,196		$	116,250		$	128,446		$	143,842		$	373,214		$	437,411
Amortization of intangibles		7,411			7,425			5,455			5,869			6,040			20,291			18,286
Tax effect¹		(1,853	)		(1,856	)		(1,364	)		(1,467	)		(1,510	)		(5,073	)		(4,572	)
Amortization of intangibles, net		5,558			5,569			4,091			4,402			4,530			15,218			13,714
Net income applicable to common shares, excluding intangibles amortization		145,326			122,765			120,341			132,848			148,372			388,432			451,125
Total adjustments, net (see pg.12)		7,448			26,862			14,541			6,196			5,416			48,851			27,174
Adjusted net income applicable to common shares, excluding intangibles amortization	$	152,774		$	149,627		$	134,882		$	139,044		$	153,788		$	437,283		$	478,299
Average shareholders’ equity	$	6,190,071		$	5,978,976		$	5,565,542		$	5,281,487		$	5,294,072		$	5,912,546		$	5,245,156
Less: Average preferred equity		(243,719	)		(243,719	)		(243,719	)		(243,719	)		(243,719	)		(243,719	)		(243,719	)
Average shareholders’ common equity	$	5,946,352		$	5,735,257		$	5,321,823		$	5,037,768		$	5,050,353		$	5,668,827		$	5,001,437
Average goodwill and other intangible assets		(2,304,597	)		(2,245,405	)		(2,098,338	)		(2,103,935	)		(2,109,944	)		(2,216,437	)		(2,115,953	)
Average tangible shareholder’s common equity	$	3,641,755		$	3,489,852		$	3,223,485		$	2,933,833		$	2,940,409		$	3,452,390		$	2,885,484
ROAE		9.4	%		8.2	%		8.7	%		10.2	%		11.4	%		8.8	%		11.7	%
ROAE, adjusted		9.9	%		10.0	%		9.8	%		10.7	%		11.8	%		9.9	%		12.4	%
ROATCE		16.0	%		14.1	%		14.9	%		18.1	%		20.2	%		15.0	%		20.8	%
ROATCE, adjusted		16.8	%		17.2	%		16.7	%		19.0	%		20.9	%		16.9	%		22.1	%

Refer to last page of Non-GAAP reconciliations for footnotes.


Non-GAAP Measures (unaudited)
($ in thousands)

	As of
	September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023
Tangible Common Equity:
Shareholders’ equity	$	6,367,298		$	6,075,072		$	5,595,408		$	5,562,900		$	5,239,537
Less: Preferred equity		(243,719	)		(243,719	)		(243,719	)		(243,719	)		(243,719	)
Shareholders’ common equity	$	6,123,579		$	5,831,353		$	5,351,689		$	5,319,181		$	4,995,818
Less: Goodwill and other intangible assets		(2,305,084	)		(2,306,204	)		(2,095,511	)		(2,100,966	)		(2,106,835	)
Tangible shareholders’ common equity	$	3,818,495		$	3,525,149		$	3,256,178		$	3,218,215		$	2,888,983

Total assets	$	53,602,293		$	53,119,645		$	49,534,918		$	49,089,836		$	49,059,448
Less: Goodwill and other intangible assets		(2,305,084	)		(2,306,204	)		(2,095,511	)		(2,100,966	)		(2,106,835	)
Tangible assets	$	51,297,209		$	50,813,441		$	47,439,407		$	46,988,870		$	46,952,613

Risk-weighted assets³	$	40,584,608		$	40,627,117		$	37,845,139		$	37,407,347		$	37,501,646

Tangible common equity to tangible assets		7.44	%		6.94	%		6.86	%		6.85	%		6.15	%
Tangible common equity to risk-weighted assets³		9.41	%		8.68	%		8.60	%		8.60	%		7.70	%
Tangible Common Book Value:
Common shares outstanding		318,955			318,969			293,330			292,655			292,586
Tangible common book value	$	11.97		$	11.05		$	11.10		$	11.00		$	9.87

¹ Tax-effect calculations use management’s estimate of the full year FTE tax rates (federal + state).
² Calculated using the federal statutory tax rate in effect of 21% for all periods.
³ September 30, 2024 figures are preliminary.

The MIL Network –

January 24, 2025

MIL-OSI: First Financial Corporation Reports Third Quarter Results

Source: GlobeNewswire (MIL-OSI)

TERRE HAUTE, Ind., Oct. 22, 2024 (GLOBE NEWSWIRE) — First Financial Corporation (NASDAQ:THFF) today announced results for the third quarter of 2024. During the quarter, the Corporation closed its acquisition of SimplyBank, Dayton, Tennessee. The quarter was impacted by purchase accounting adjustments and charges, which are reflected in the results.

Net income was $8.7 million compared to $16.3 million reported for the same period of 2023;
Diluted net income per common share of $0.74 compared to $1.37 for the same period of 2023;
Return on average assets was 0.64% compared to 1.35% for the three months ended September 30, 2023;
Credit loss provision was $9.4 million compared to provision of $1.2 million for the third quarter 2023; and
Pre-tax, pre-provision net income was $19.9 million compared to $20.5 million for the same period in 2023.¹

The Corporation further reported results for the nine months ended September 30, 2024:

Net income was $31.0 million compared to $48.3 million reported for the same period of 2023;
Diluted net income per common share of $2.63 compared to $4.02 for the same period of 2023;
Return on average assets was 0.82% compared to 1.33% for the nine months ended September 30, 2023;
Credit loss provision was $14.2 million compared to provision of $4.8 million for the nine months ended September 30, 2023; and
Pre-tax, pre-provision net income was $51.1 million compared to $63.1 million for the same period in 2023.¹

________________
¹Non-GAAP financial measure that Management believes is useful for investors and management to understand pre-tax profitability before giving effect to credit loss expense and to provide additional perspective on the Corporation’s performance over time as well as comparison to the Corporation’s peers and evaluating the financial results of the Corporation – please refer to the Non GAAP reconciliations contained in this release.

Average Total Loans

Average total loans for the third quarter of 2024 were $3.71 billion versus $3.15 billion for the comparable period in 2023, an increase of $558 million or 17.74%. On a linked quarter basis, average loans increased $508 million or 15.89% from $3.20 billion as of June 30, 2024. Increases in average loans over both periods were mostly a result of the acquisition of SimplyBank as further detailed in Total Loans Outstanding section below.

Total Loans Outstanding

Total loans outstanding as of September 30, 2024, were $3.72 billion compared to $3.12 billion as of September 30, 2023, an increase of $598 million or 19.17%. On a linked quarter basis, total loans increased $511 million or 15.96% from $3.20 billion as of June 30, 2024. The main driver of the increase was $467 million in loans acquired in the SimplyBank acquisition. Organic growth was primarily driven by increases in Commercial Construction and Development, Commercial Real Estate, and Consumer Auto loans.

Norman D. Lowery, President and Chief Executive Officer, commented, “During the quarter, we closed the acquisition of SimplyBank, which gives us access to very attractive markets in Southeast Tennessee and Northwest Georgia. We also experienced another sound quarter of loan and net interest income growth. During the quarter our net interest margin expanded, and we expect continued improvement in coming quarters.”

Average Total Deposits

Average total deposits for the quarter ended September 30, 2024, were $4.71 billion versus $4.00 billion as of September 30, 2023, an increase of $705 million or 17.63%. Increases in average deposits over both periods were mostly a result of the acquisition of SimplyBank as further detailed in Total Deposits section below.

Total Deposits

Total deposits were $4.72 billion as of September 30, 2024, compared to $4.04 billion as of September 30, 2023, a $676 million increase, or 16.74%. On a linked quarter basis, total deposits increased $585.2 million, or 14.16%. $622 million in deposits were acquired in the SimplyBank acquisition. Non-interest bearing deposits were $831.6 million, and time deposits were $791.1 million as of September 30, 2024, compared to $770.5 million and $471.6 million, respectively for the same period of 2023.

Shareholders’ Equity

Shareholders’ equity at September 30, 2024, was $566.0 million compared to $470.2 million on September 30, 2023. During the last twelve months, the Corporation has not repurchased any shares of its common stock. 518,860 shares remain available for repurchase under the current repurchase authorization. The Corporation paid a $0.45 per share quarterly dividend in July and declared a $0.45 quarterly dividend, which was paid on October 15, 2024.

Book Value Per Share

Book Value per share was $47.93 as of September 30, 2024, compared to $40.00 as of September 30, 2023, an increase of $7.93 per share, or 19.82%. Tangible Book Value per share was $37.84 as of September 30, 2024, compared to $32.10 as of September 30, 2023, an increase of $5.74 per share, or 17.88%.

Tangible Common Equity to Tangible Asset Ratio

The Corporation’s tangible common equity to tangible asset ratio was 8.33% at September 30, 2024, compared to 8.04% at September 30, 2023.

Net Interest Income

Net interest income for the third quarter of 2024 was $47.2 million, compared to $41.2 million reported for the same period of 2023, an increase of $6.0 million, or 14.63%.

Net Interest Margin

The net interest margin for the quarter ended September 30, 2024, was 3.78% compared to the 3.74% reported at September 30, 2023. On a linked quarterly basis, the net interest margin increased 21 basis points from 3.57% at June 30, 2024.

Nonperforming Loans

Nonperforming loans as of September 30, 2024, were $14.1 million versus $12.6 million as of September 30, 2023. The increase was due primarily to the SimplyBank acquisition. The ratio of nonperforming loans to total loans and leases was 0.38% as of September 30, 2024, versus 0.40% as of September 30, 2023.

Credit Loss Provision

The provision for credit losses for the three months ended September 30, 2024, was $9.4 million, compared to $1.2 million for the third quarter 2023. The Corporation recorded $5.5 million in provision for the acquisition of SimplyBank. The increase in provision was also related to one previously identified credit, reflecting further deterioration in collateral values during the quarter.

Net Charge-Offs

Third quarter net charge-offs were $4.6 million compared to $2.1 million in the same period of 2023.

Allowance for Credit Losses

The Corporation’s allowance for credit losses as of September 30, 2024, was $46.2 million compared to $39.0 million as of September 30, 2023. The allowance for credit losses as a percent of total loans was 1.24% as of September 30, 2024, compared to 1.25% as of September 30, 2023. On a linked quarter basis, the allowance for credit losses as a percent of total loans increased 4 basis points from 1.20% as of June 30, 2024. The Corporation recorded $8.5 million in allowance for the acquisition of SimplyBank, which included $3 million to record purchased credit deteriorated (“PCD”) reserves.

Non-Interest Income

Non-interest income for the three months ended September 30, 2024 and 2023 was $11.2 million and $11.6 million, respectively.

Non-Interest Expense

Non-interest expense for the three months ended September 30, 2024, was $38.6 million compared to $32.3 million in 2023. This includes $844 thousand of acquisition-related expenses during the quarter, as well as an overall increase in operating expenses as a result of the acquisition.

Efficiency Ratio

The Corporation’s efficiency ratio was 64.43% for the quarter ending September 30, 2024, versus 59.57% for the same period in 2023.

Income Taxes

Income tax expense for the three months ended September 30, 2024, was $1.7 million versus $3.0 million for the same period in 2023. The effective tax rate for 2024 was 16.44% compared to 17.37% for 2023.

About First Financial Corporation

First Financial Corporation (NASDAQ:THFF) is the holding company for First Financial Bank N.A., which is the fifth oldest national bank in the United States, operating 83 banking centers in Illinois, Indiana, Kentucky, Tennessee, and Georgia. Additional information is available at http://www.first-online.bank.

Investor Contact:
Rodger A. McHargue
Chief Financial Officer
P: 812-238-6334
E: rmchargue@first-online.com


	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2024		2024		2023		2024		2023
END OF PERIOD BALANCES
Assets	$	5,483,351	$	4,891,068	$	4,784,806	$	5,483,351	$	4,784,806
Deposits	$	4,717,489	$	4,132,327	$	4,040,995	$	4,717,489	$	4,040,995
Loans, including net deferred loan costs	$	3,715,235	$	3,204,009	$	3,117,626	$	3,715,235	$	3,117,626
Allowance for Credit Losses	$	46,169	$	38,334	$	39,034	$	46,169	$	39,034
Total Equity	$	565,951	$	530,670	$	470,168	$	565,951	$	470,168
Tangible Common Equity ^(a)	$	446,786	$	438,569	$	377,367	$	446,786	$	377,367

AVERAGE BALANCES
Total Assets	$	5,483,572	$	4,813,308	$	4,814,251	$	5,033,748	$	4,828,165
Earning Assets	$	5,165,520	$	4,556,839	$	4,575,996	$	4,762,940	$	4,590,258
Investments	$	1,342,037	$	1,279,278	$	1,351,433	$	1,309,879	$	1,384,941
Loans	$	3,705,779	$	3,197,695	$	3,147,317	$	3,361,207	$	3,104,623
Total Deposits	$	4,705,614	$	4,113,826	$	4,000,302	$	4,288,426	$	4,124,520
Interest-Bearing Deposits	$	4,403,454	$	3,413,752	$	3,222,633	$	3,714,432	$	3,309,111
Interest-Bearing Liabilities	$	157,227	$	152,303	$	309,948	$	176,985	$	197,142
Total Equity	$	546,912	$	517,890	$	493,764	$	529,174	$	494,428

INCOME STATEMENT DATA
Net Interest Income	$	47,170	$	39,294	$	41,150	$	125,384	$	127,672
Net Interest Income Fully Tax Equivalent ^(b)	$	48,630	$	40,673	$	42,539	$	129,600	$	131,774
Provision for Credit Losses	$	9,400	$	2,966	$	1,200	$	14,166	$	4,800
Non-interest Income	$	11,223	$	9,905	$	11,627	$	30,559	$	31,455
Non-interest Expense	$	38,564	$	32,651	$	32,265	$	104,637	$	95,932
Net Income	$	8,741	$	11,369	$	16,285	$	31,034	$	48,252

PER SHARE DATA
Basic and Diluted Net Income Per Common Share	$	0.74	$	0.96	$	1.37	$	2.63	$	4.02
Cash Dividends Declared Per Common Share	$	0.45	$	0.45	$	—	$	1.35	$	0.54
Book Value Per Common Share	$	47.93	$	44.92	$	40.00	$	47.93	$	40.00
Tangible Book Value Per Common Share ^(c)	$	36.22	$	36.04	$	33.69	$	37.84	$	32.10
Basic Weighted Average Common Shares Outstanding		11,808		11,814		11,901		11,809		11,993

________________
(a) Tangible common equity is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible common equity by excluding goodwill and other intangible assets from shareholder’s equity.
(b) Net interest income fully tax equivalent is a non-GAAP financial measure derived from GAAP-based amounts. We calculate net interest income fully tax equivalent by adding back the tax equivalent factor of tax exempt income to net interest income. We calculate the tax equivalent factor of tax exempt income by dividing tax exempt income by the net of tax rate of 75%.
(c) Tangible book value per common share is a non-GAAP financial measure derived from GAAP-based amounts. We calculate the factor by dividing average tangible common equity by average shares outstanding. We calculate average tangible common equity by excluding average intangible assets from average shareholder’s equity.


Key Ratios	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2024		2024		2023		2024		2023
Return on average assets	0.64	%	0.94	%	1.35	%	0.82	%	1.33	%
Return on average common shareholder’s equity	6.39	%	8.78	%	13.19	%	7.80	%	12.98	%
Efficiency ratio	64.43	%	64.56	%	59.57	%	65.33	%	58.77	%
Average equity to average assets	9.97	%	10.76	%	10.26	%	10.51	%	10.24	%
Net interest margin ^(a)	3.78	%	3.57	%	3.74	%	3.63	%	3.83	%
Net charge-offs to average loans and leases	0.49	%	0.59	%	0.24	%	0.43	%	0.24	%
Credit loss reserve to loans and leases	1.24	%	1.20	%	1.25	%	1.24	%	1.25	%
Credit loss reserve to nonperforming loans	326.65	%	240.85	%	310.19	%	326.65	%	310.19	%
Nonperforming loans to loans and leases	0.38	%	0.50	%	0.40	%	0.38	%	0.40	%
Tier 1 leverage	10.25	%	12.14	%	11.72	%	10.25	%	11.72	%
Risk-based capital – Tier 1	13.63	%	14.82	%	14.61	%	13.63	%	14.61	%

________________
(a) Net interest margin is calculated on a tax equivalent basis.



Asset Quality	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2024		2024		2023		2024		2023
Accruing loans and leases past due 30-89 days	$	16,391	$	14,913	$	15,961	$	16,391	$	15,961
Accruing loans and leases past due 90 days or more	$	1,517	$	1,353	$	1,370	$	1,517	$	1,370
Nonaccrual loans and leases	$	12,617	$	14,563	$	11,214	$	12,617	$	11,214
Other real estate owned	$	169	$	170	$	63	$	169	$	63
Nonperforming loans and other real estate owned	$	14,303	$	16,086	$	12,647	$	14,303	$	12,647
Total nonperforming assets	$	17,179	$	18,978	$	15,671	$	17,179	$	15,671
Gross charge-offs	$	6,936	$	6,091	$	3,601	$	16,219	$	11,520
Recoveries	$	2,365	$	1,414	$	1,528	$	5,449	$	5,975
Net charge-offs/(recoveries)	$	4,571	$	4,677	$	2,073	$	10,770	$	5,545


Non-GAAP Reconciliations	Three Months Ended September 30,
	2024		2023
($in thousands, except EPS)
Income before Income Taxes	$	10,429	$	19,312
Provision for credit losses		9,400		1,200
Provision for unfunded commitments		100		—
Pre-tax, Pre-provision Income	$	19,929	$	20,512


Non-GAAP Reconciliations	Nine Months Ended September 30,
	2024			2023
($ in thousands, except EPS)
Income before Income Taxes	$	37,140		$	58,395
Provision for credit losses		14,166			4,800
Provision for unfunded commitments		(200	)		(100	)
Pre-tax, Pre-provision Income	$	51,106		$	63,095


CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands, except per share data)

	September 30,			December 31,
	2024			2023
	(unaudited)
ASSETS
Cash and due from banks	$	77,312		$	76,759
Federal funds sold		1,356			282
Securities available-for-sale		1,271,992			1,259,137
Loans:
Commercial		2,112,738			1,817,526
Residential		924,276			695,788
Consumer		671,353			646,758
		3,708,367			3,160,072
(Less) plus:
Net deferred loan costs		6,868			7,749
Allowance for credit losses		(46,169	)		(39,767	)
		3,669,066			3,128,054
Restricted stock		15,366			15,364
Accrued interest receivable		25,386			24,877
Premises and equipment, net		82,213			67,286
Bank-owned life insurance		128,242			114,122
Goodwill		93,363			86,985
Other intangible assets		25,802			5,586
Other real estate owned		169			107
Other assets		93,084			72,587
TOTAL ASSETS	$	5,483,351		$	4,851,146

LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Non-interest-bearing	$	831,575		$	750,335
Interest-bearing:
Certificates of deposit exceeding the FDIC insurance limits		159,618			92,921
Other interest-bearing deposits		3,726,296			3,246,812
		4,717,489			4,090,068
Short-term borrowings		84,363			67,221
FHLB advances		30,456			108,577
Other liabilities		85,092			57,304
TOTAL LIABILITIES		4,917,400			4,323,170

Shareholders’ equity
Common stock, $.125 stated value per share;
Authorized shares-40,000,000
Issued shares-16,165,023 in 2024 and 16,137,220 in 2023
Outstanding shares-11,808,304 in 2024 and 11,795,024 in 2023		2,016			2,014
Additional paid-in capital		144,785			144,152
Retained earnings		677,155			663,726
Accumulated other comprehensive income/(loss)		(102,800	)		(127,087	)
Less: Treasury shares at cost-4,356,719 in 2024 and 4,342,196 in 2023		(155,205	)		(154,829	)
TOTAL SHAREHOLDERS’ EQUITY		565,951			527,976
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	5,483,351		$	4,851,146


CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Dollar amounts in thousands, except per share data)

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2024		2023			2024		2023
						(unaudited)
INTEREST INCOME:
Loans, including related fees	$	61,367	$	49,146		$	162,878	$	140,220
Securities:
Taxable		6,319		6,164			18,083		18,631
Tax-exempt		2,715		2,661			7,919		7,937
Other		1,294		752			2,989		2,864
TOTAL INTEREST INCOME		71,695		58,723			191,869		169,652
INTEREST EXPENSE:
Deposits		22,197		13,627			59,622		35,111
Short-term borrowings		993		1,923			2,928		4,025
Other borrowings		1,335		2,023			3,935		2,844
TOTAL INTEREST EXPENSE		24,525		17,573			66,485		41,980
NET INTEREST INCOME		47,170		41,150			125,384		127,672
Provision for credit losses		9,400		1,200			14,166		4,800
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES		37,770		39,950			111,218		122,872
NON-INTEREST INCOME:
Trust and financial services		1,251		1,140			3,903		3,642
Service charges and fees on deposit accounts		8,139		7,099			21,576		20,971
Other service charges and fees		191		213			700		613
Securities gains (losses), net		103		—			104		—
Interchange income		177		—			490		47
Loan servicing fees		274		447			957		997
Gain on sales of mortgage loans		411		321			886		811
Other		677		2,407			1,943		4,374
TOTAL NON-INTEREST INCOME		11,223		11,627			30,559		31,455
NON-INTEREST EXPENSE:
Salaries and employee benefits		18,521		17,159			53,231		51,263
Occupancy expense		2,556		2,389			7,116		7,120
Equipment expense		4,280		3,580			12,736		10,404
FDIC Expense		558		613			1,721		1,977
Other		12,649		8,524			29,833		25,168
TOTAL NON-INTEREST EXPENSE		38,564		32,265			104,637		95,932
INCOME BEFORE INCOME TAXES		10,429		19,312			37,140		58,395
Provision for income taxes		1,688		3,027			6,106		10,143
NET INCOME		8,741		16,285			31,034		48,252
OTHER COMPREHENSIVE INCOME (LOSS)
Change in unrealized gains/(losses) on securities, net of reclassifications and taxes		31,628		(34,934	)		24,067		(36,504	)
Change in funded status of post retirement benefits, net of taxes		73		146			220		440
COMPREHENSIVE INCOME (LOSS)	$	40,442	$	(18,503	)	$	55,321	$	12,188
PER SHARE DATA
Basic and Diluted Earnings per Share	$	0.74	$	1.37		$	2.63	$	4.02
Weighted average number of shares outstanding (in thousands)		11,808		11,901			11,809		11,993

The MIL Network –

January 24, 2025

MIL-OSI: QNB Corp. Reports Earnings for Third Quarter 2024

Source: GlobeNewswire (MIL-OSI)

QUAKERTOWN, Pa., Oct. 22, 2024 (GLOBE NEWSWIRE) — QNB Corp. (the “Company” or “QNB”) (OTC Bulletin Board: QNBC), the parent company of QNB Bank (the “Bank”), reported net income for the third quarter of 2024 of $3,338,000, or $0.91 per share on a diluted basis. This compares to net income of $2,344,000, or $0.65 per share on a diluted basis, for the same period in 2023. For the nine months ended September 30, 2024, QNB reported net income of $8,397,000, or $2.29 per share on a diluted basis. This compares to net income of $8,349,000, or $2.32 per share on a diluted basis, reported for the same period in 2023.

For the third quarter of 2024, the annualized rate of return on average assets and average shareholders’ equity was 0.72% and 8.13%, respectively, compared with 0.52% and 5.88%, respectively, for the third quarter 2023.

The operating performance of the Bank, a wholly-owned subsidiary of QNB Corp., improved for the quarter ended September 30, 2024, in comparison with the same period in 2023, due primarily to improvement in the interest margin causing a $1,182,000 increase in net interest income, decreased provision for credit losses on loans and unfunded commitments of $300,000 and a decrease in non-interest expense of $37,000; this was partly offset by a decrease in non-interest income of $96,000. The change in contribution from QNB Corp. for the quarter ended September 30, 2024, compared with the same period in 2023, is primarily due to more gains on sales from the equities portfolio and less unrealized losses on the equity portfolio; partly offset by interest expense on subordinated debt held at the holding company.

The following table presents disaggregated net income (loss):

	Three months ended,								Nine months ended,
	9/30/2024			9/30/2023		Variance			9/30/2024			9/30/2023			Variance
QNB Bank	$	3,394,000		$	2,334,000	$	1,060,000		$	8,466,000		$	8,568,000		$	(102,000	)
QNB Corp		(56,000	)		10,000		(66,000	)		(69,000	)		(219,000	)		150,000
Consolidated net income	$	3,338,000		$	2,344,000	$	994,000		$	8,397,000		$	8,349,000		$	48,000

Total assets as of September 30, 2024 were $1,841,563,000 compared with $1,706,318,000 at December 31, 2023. Total available-for-sale debt securities increased $19,855,000, or 7.9%, to $510,036,000, primarily due to purchases of higher-yielding securities partly offset be the sales of lower-yielding securities and payments. Loans receivable increased $77,828,000, or 7.1%, to $1,171,361,000. Total deposits increased $137,571,000, or 9.2%, to $1,626,284,000. Short-term borrowing declined $71,176,000, or 75.6%. During the third quarter of 2024, the QNB Corp. issued $40,000,000 of subordinated debt; the carrying value net of deferred costs was $39,030,000 at September 30, 2024.

“We continue to experience strong growth in customer loan and deposit balances, which has led to improvement in our net interest income and margin. Growth combined with solid liquidity and good asset quality, has our franchise positioned for positive momentum,” stated David W. Freeman, President and Chief Executive Officer. Freeman continued, “Our successful Sub-Debt issuance has further strengthened our Capital position and will enable continued growth in the future. I am optimistic that we are well positioned to capitalize on the foundation we have built.”

Net Interest Income and Net Interest Margin

Net interest income for the quarter ended September 30, 2024 totaled $11,127,000, an increase of $914,000, from the same period in 2023. Net interest margin was 2.48% for the third quarter of 2024 and 2.38% for the same period in 2023. Net interest margin was 2.45% for the nine months ended September 30, 2024, compared with 2.40% for the same period in 2023.

The yield on earning assets was 4.86% for the third quarter 2024, compared with 4.28% in the third quarter of 2023; an increase of 58 basis points. For the nine-month period ended September 30, 2024, the yield on earning assets was 4.71%, compared with 3.97% for the same period in 2023. The cost of interest-bearing liabilities was 2.90% for the quarter ended September 30, 2024, compared with 2.35% for the same period in 2023, an increase of 55 basis points. For the nine-month period ended September 30, 2024, the cost of interest-bearing liabilities was 2.77% compared with 1.96% for the same period in 2023.

Proceeds from the growth in average deposits and proceeds from the issuance of subordinated debt and the sale and payments received on investment securities over the past year were invested in loans and other interest earning assets, and used to pay down short-term borrowings. Loan growth was primarily in commercial real estate, which comprised 45% of average earning assets in the third quarter of 2024 compared with 42% for the same period in 2023, and the increases in both rates and volume in commercial real estate loans majorly contributed to the 47 basis-point increase in the yield on loans. The decline in the available-for-sale portfolio was primarily in mortgage-backed securities, which comprised 19% of average earnings assets in the third quarter of 2024 compared with 23% for the same period in 2023. The 40-basis point increase in rate on investments was primarily due to the impact of the interest rate swaps entered into at the end of the second quarter of 2023, contributing to the increase in net interest margin. The 55 basis-point increase in the rate paid on deposits and the issuance of subordinated debt were the primary contributors to the increase in the cost of funds of 55 basis points.

Asset Quality, Provision for Credit Losses on Loans and Allowance for Credit Losses

QNB recorded $154,000 in provision for credit losses on loans in the third quarter of 2024 compared to $452,000 in provision in the third quarter of 2023. QNB’s allowance for credit losses on loans of $8,987,000 represents 0.77% of loans receivable at September 30, 2024, compared to $8,852,000, or 0.81% of loans receivable at December 31, 2023. Net loan charge-offs were $25,000 for the quarter ended September 30, 2024, compared with $275,000 for the same period in 2023. Annualized net loan charge-offs for the quarter ended September 30, 2024 were 0.01% and 0.10% for the quarter ended September 30, 2023, of average loans receivable, respectively. Net loan charge-offs were $58,000 for the nine months ended September 30, 2024, compared with recoveries of $219,000 for the same period in 2023 were primarily due to two large commercial customers. Annualized net loan charge-offs for the nine months ended September 30, 2024 were 0.01% compared to annualized net recoveries of 0.03% for the same period in 2023, of average loans receivable, respectively.

Total non-performing loans, which represent loans on non-accrual status and loans past due 90 days or more and still accruing interest, were $1,696,000, or 0.14% of loans receivable at September 30, 2024, compared with $1,940,000, or 0.18% of loans receivable at December 31, 2023. In cases where there is a collateral shortfall on non-accrual loans, specific reserves have been established based on updated collateral values even if the borrower continues to pay in accordance with the terms of the agreement. At September 30, 2024, $1,021,000, or approximately 60% of the loans classified as non-accrual, are current or past due less than 30 days. Commercial loans classified as substandard or doubtful loans totaled $26,883,000 at September 30, 2024, compared with $11,747,000 at December 31, 2023; these were comprised primarily of commercial real estate loans.

Non-Interest Income

Total non-interest income was $1,967,000 for the third quarter of 2024 compared with $1,755,000 for the same period in 2023. There was a net realized gain of $224,000 on the sale of investments for the quarter ended September 30, 2024 compared to a net gain of $131,000 on the sales of securities in the same period in 2023. Unrealized net gain on investment equity securities was $143,000 for the quarter ended September 30, 2024 compared to a net loss of $138,000 for the same period in 2023. During the third quarter of 2024 the Bank sold lower yielding securities to better position its net interest margin.

Fees for service to customers increased $48,000 for the quarter ended September 30, 2024, as overdraft fees decreased $16,000 and other deposit-related fees increased $32,000. Retail brokerage and advisory income decreased $80,000 to $139,000 for the same period, due to a decrease in customer balances following employee turnover. Other non-interest income decreased $151,000 for the same period due to a sales tax refund of $115,000 received in 2023 and a decline in merchant fee income of $16,000 due to value.

For the nine months ended September 30, 2024, non-interest income was $5,268,000 an increase of $714,000 compared to the same period in 2023, primarily due to the change in fair value of the equities portfolio of $1,783,000. QNB completed the exchange offer to convert the Bank’s Visa B-1 shares to B-2 and C shares in the second quarter of 2024; the fair value of the Visa C shares was a gain of $1,419,000 at September 30, 2024. Realized loss on sale of securities was $495,000, a decline of $680,000 for the nine months ended September 30, 2024, compared with the same period in 2023. Net gain on sale of loans increased $27,000 when comparing the nine months ended September 30, 2024 with the same period in 2023. Increases in non-interest income for the nine months ended September 30, 2024 compared to the same period in 2023 comprise: fees for services to customers which increased $79,000. Decreases in non-interest income comprised: ATM and debit card fees, retail brokerage and advisory income, and other which decreased $16,000, $297,000 and $182,000, respectively. Other non-interest income decreased the $182,000 due primarily to a sales tax refund of $115,000 received in 2023, losses on disposals of furniture and equipment, mortgage servicing fees and letter of credit fees.

Non-Interest Expense

Total non-interest expense was $8,636,000 for the third quarter of 2024 compared with $8,671,000 for the same period in 2023. Salaries and benefits expense decreased $321,000, or 6.5%, to $4,650,000 when comparing the two quarters. Salary expense and related payroll taxes increased $77,000, or 1.9%, to $4,209,000 during the third quarter of 2024 compared to the same period in 2023. Benefits expense decreased $400,000, or 81.1%, when comparing the two periods primarily due to a reduction in medical costs and stop-loss reimbursements.

Net occupancy and furniture and equipment expense increased $27,000, or 1.8%, to $1,531,000 for the third quarter of 2024 primarily due to software maintenance costs partly offset by a reduction in repairs and maintenance. Other non-interest expense increased $259,000, or 11.8%, when comparing third quarter of 2024 with the same period in 2023 due to an increase in Bank shares tax of $89,000, due to the timing of tax credits received, an increase of $50,000 in debit card expense, an increase in FDIC insurance of $67,000, an increase in third-party services of $69,000, and an increase in write-offs due to fraud on customer accounts of $44,000, partly offset by decreases in director fees of $16,000, a decrease in marketing expense of $19,000 and a reduction loan-related costs of $23,000.

For the nine months ended September 30, 2024, non-interest expense was $26,403,000, an increase of $1,040,000, or 4.1%, compared to the same period in 2023.

Income Taxes

Provision for income taxes increased $467,000 to $961,000 in the third quarter of 2024 due to increased pre-tax income, compared with the same period in 2023. The effective tax rates for the quarter ended September 30, 2024 was 22.4% compared with 17.4% for the same period in 2023. The effective tax rates for the nine months ended September 30, 2024 was 20.5% compared with 18.9% for the same period in 2023.

About the Company

QNB Corp. is the holding company for QNB Bank, which is headquartered in Quakertown, Pennsylvania. QNB Bank currently operates twelve branches in Bucks, Lehigh and Montgomery Counties and offers commercial and retail banking services in the communities it serves. In addition, the Company provides securities and advisory services under the name of QNB Financial Services through a registered Broker/Dealer and Registered Investment Advisor, and title insurance as a member of Laurel Abstract Company LLC. More information about QNB Corp. and QNB Bank is available at QNBBank.com.

Forward Looking Statement

This press release may contain forward-looking statements as defined in the Private Securities Litigation Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various factors. Such factors include the possibility that increased demand or prices for the Company’s financial services and products may not occur, changing economic and competitive conditions, technological developments, and other risks and uncertainties, including those detailed in the Company’s filings with the Securities and Exchange Commission, including “Item lA. Risk Factors,” set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. You should not place undue reliance on any forward-looking statements. These statements speak only as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.

QNB Corp.
Consolidated Selected Financial Data (unaudited)
(Dollars in thousands)
Balance Sheet (Period End)	9/30/24			6/30/24			3/31/24			12/31/23			9/30/23
Assets	$	1,841,563		$	1,761,487		$	1,716,081		$	1,706,318		$	1,684,392
Cash and cash equivalents		104,232			76,909			50,963			62,657			55,141
Investment securities
Debt securities, AFS		510,036			460,418			481,596			490,181			505,390
Equity securities		2,760			7,233			6,217			5,910			4,765
Loans held-for-sale		294			786			—			549			446
Loans receivable		1,171,361			1,162,310			1,122,616			1,093,533			1,060,450
Allowance for loan losses		(8,987	)		(8,858	)		(8,738	)		(8,852	)		(8,542	)
Net loans		1,162,374			1,153,452			1,113,878			1,084,681			1,051,908
Deposits		1,626,284			1,572,839			1,536,188			1,488,713			1,483,333
Demand, non-interest bearing		190,240			190,333			188,260			185,098			192,226
Interest-bearing demand, money market and savings		1,055,409			1,003,813			990,451			988,634			1,000,921
Time		380,635			378,693			357,477			314,981			290,186
Short-term borrowings		22,918			49,066			55,088			94,094			96,703
Long-term debt		30,000			30,000			20,000			20,000			20,000
Subordinated debt		39,030			—			—			—			—
Shareholders’ equity		105,340			96,885			93,686			90,824			74,081

Asset Quality Data (Period End)
Non-accrual loans	$	1,696		$	2,078		$	2,001		$	1,940		$	1,893
Loans past due 90 days or more and still accruing		—			—			—			—			—
Non-performing loans		1,696			2,078			2,001			1,940			1,893
Other real estate owned and repossessed assets		—			—			—			—			—
Non-performing assets	$	1,696		$	2,078		$	2,001		$	1,940		$	1,893

Allowance for credit losses on loans	$	8,987		$	8,858		$	8,738		$	8,852		$	8,542

Non-performing loans / Loans excluding held-for-sale		0.14	%		0.18	%		0.18	%		0.18	%		0.18	%
Non-performing assets / Assets		0.09	%		0.12	%		0.12	%		0.11	%		0.11	%
Allowance for credit losses on loans / Loans excluding held-for-sale		0.77	%		0.76	%		0.78	%		0.81	%		0.81	%

QNB Corp.
Consolidated Selected Financial Data (unaudited)
(Dollars in thousands, except per share data)	Three months ended,															Nine months ended,
For the period:	9/30/24			6/30/24			3/31/24			12/31/23			9/30/23			9/30/24			9/30/23
Interest income	$	21,945		$	20,345		$	19,569		$	19,257		$	18,497		$	61,859		$	49,825
Interest expense		10,818			9,753			9,401			9,065			8,284			29,972			19,862
Net interest income		11,127			10,592			10,168			10,192			10,213			31,887			29,963
Provision for credit losses		159			114			(86	)		293			459			187			(1,137	)
Net interest income after provision for credit losses		10,968			10,478			10,254			9,899			9,754			31,700			31,100
Non-interest income:
Fees for services to customers		469			427			420			414			421			1,316			1,237
ATM and debit card		691			705			636			687			685			2,032			2,048
Retail brokerage and advisory income		139			126			93			207			219			358			655
Net realized (loss) gain on investment securities		224			(1,096	)		377			(2,262	)		131			(495	)		185
Unrealized gain (loss) on equity securities		143			1,016			(30	)		904			(138	)		1,129			(654	)
Net gain on sale of loans		19			(2	)		15			11			4			32			5
Other		282			289			325			322			433			896			1,078
Total non-interest income		1,967			1,465			1,836			283			1,755			5,268			4,554
Non-interest expense:
Salaries and employee benefits		4,650			5,038			4,974			4,717			4,971			14,662			14,309
Net occupancy and furniture and equipment		1,531			1,481			1,515			1,477			1,504			4,527			4,348
Other		2,455			2,415			2,344			2,552			2,196			7,214			6,706
Total non-interest expense		8,636			8,934			8,833			8,746			8,671			26,403			25,363
Income before income taxes		4,299			3,009			3,257			1,436			2,838			10,565			10,291
Provision for income taxes		961			544			663			302			494			2,168			1,942
Net income	$	3,338		$	2,465		$	2,594		$	1,134		$	2,344		$	8,397		$	8,349

Share and Per Share Data:
Net income – basic	$	0.91		$	0.67		$	0.71		$	0.31		$	0.65		$	2.29		$	2.32
Net income – diluted	$	0.91		$	0.67		$	0.71		$	0.31		$	0.65		$	2.29		$	2.32
Book value	$	28.57		$	26.34		$	25.57		$	24.86		$	20.35		$	28.57		$	20.35
Cash dividends	$	0.37		$	0.37		$	0.37		$	0.37		$	0.37		$	1.11		$	1.11
Average common shares outstanding -basic		3,679,799			3,665,695			3,655,176			3,642,096			3,613,230			3,666,937			3,600,137
Average common shares outstanding -diluted		3,682,773			3,665,695			3,655,176			3,642,096			3,613,230			3,666,937			3,600,137
Selected Ratios:
Return on average assets		0.72	%		0.55	%		0.59	%		0.25	%		0.52	%		0.62	%		0.64	%
Return on average shareholders’ equity		8.13	%		6.14	%		6.53	%		2.83	%		5.88	%		6.95	%		7.13	%
Net interest margin (tax equivalent)		2.48	%		2.46	%		2.39	%		2.36	%		2.38	%		2.45	%		2.40	%
Efficiency ratio (tax equivalent)		65.28	%		73.26	%		72.73	%		82.38	%		71.59	%		70.28	%		72.55	%
Average shareholders’ equity to total average assets		8.80	%		8.97	%		8.98	%		8.93	%		8.91	%		8.92	%		9.01	%
Net loan charge-offs (recoveries)	$	25		$	12		$	21		$	(19	)	$	275		$	58		$	(219	)
Net loan charge-offs (recoveries) – annualized / Average loans excluding held-for-sale		0.01	%		0.00	%		0.01	%		-0.01	%		0.10	%		0.01	%		-0.03	%
Balance Sheet (Average)
Assets	$	1,856,034		$	1,798,040		$	1,778,585		$	1,779,627		$	1,773,138		$	1,811,051		$	1,737,417
Investment securities (AFS & Equities)		552,323			569,135			578,615			604,292			624,423			566,638			636,498
Loans receivable		1,158,731			1,139,874			1,108,836			1,072,616			1,039,170			1,135,898			1,029,042
Deposits		1,600,925			1,542,661			1,497,692			1,490,244			1,488,632			1,547,290			1,443,816
Shareholders’ equity		163,274			161,340			159,739			158,987			158,063			161,458			156,499

QNB Corp. (Consolidated)
Average Balances, Rate, and Interest Income and Expense Summary (Tax-Equivalent Basis)

	Three Months Ended
	September 30, 2024								September 30, 2023
	Average			Average					Average			Average
	Balance			Rate			Interest		Balance			Rate			Interest
Assets
Investment securities:
U.S. Treasury	$	12,811			4.94	%	$	159	$	7,111			5.17	%	$	92
U.S. Government agencies		75,956			1.18			224		101,947			1.11			283
State and municipal		105,674			3.74			989		109,157			3.30			901
Mortgage-backed and CMOs		345,119			2.84			2,453		394,607			2.53			2,500
Corporate debt securities and mutual funds		8,804			5.97			131		6,648			4.40			73
Equities		3,959			4.61			46		4,953			4.70			59
Total investment securities		552,323			2.90			4,002		624,423			2.50			3,908
Loans:
Commercial real estate		819,091			5.60			11,525		722,833			5.10			9,288
Residential real estate		110,760			4.21			1,165		107,332			3.81			1,022
Home equity loans		66,239			6.84			1,138		57,694			6.65			967
Commercial and industrial		140,980			7.61			2,696		128,601			7.23			2,343
Consumer loans		3,613			7.75			70		3,823			7.53			73
Tax-exempt loans		18,305			3.88			179		19,630			3.59			178
Total loans, net of unearned income*		1,158,988			5.76			16,773		1,039,913			5.29			13,871
Other earning assets		95,780			5.43			1,307		62,420			5.48			862
Total earning assets		1,807,091			4.86			22,082		1,726,756			4.28			18,641
Cash and due from banks		15,540								15,679
Allowance for loan losses		(8,860	)							(8,396	)
Other assets		42,263								39,099
Total assets	$	1,856,034							$	1,773,138

Liabilities and Shareholders’ Equity
Interest-bearing deposits:
Interest-bearing demand	$	356,763			1.00	%		898	$	319,335			0.74	%		600
Municipals		154,619			4.69			1,823		157,391			4.63			1,837
Money market		238,494			3.56			2,132		201,277			3.01			1,527
Savings		278,247			1.28			896		325,567			1.27			1,038
Time < $100		178,228			4.12			1,846		128,884			2.92			947
Time $100 through $250		152,416			4.64			1,777		106,920			3.69			996
Time > $250		49,506			4.61			573		43,856			3.41			377
Total interest-bearing deposits		1,408,273			2.81			9,945		1,283,230			2.26			7,322
Short-term borrowings		34,078			2.18			186		95,568			3.07			740
Long-term debt		30,000			4.75			364		20,000			4.36			222
Subordinated debt		13,716			9.42			323		—			—			—
Total interest-bearing liabilities		1,486,067			2.90			10,818		1,398,798			2.35			8,284
Non-interest-bearing deposits		192,652								205,402
Other liabilities		14,041								10,875
Shareholders’ equity		163,274								158,063
Total liabilities and
shareholders’ equity	$	1,856,034							$	1,773,138
Net interest rate spread					1.96	%							1.93	%
Margin/net interest income					2.48	%	$	11,264					2.38	%	$	10,357
Tax-exempt securities and loans were adjusted to a tax-equivalent basis and are based on the Federal corporate tax rate of 21%
Non-accrual loans and investment securities are included in earning assets.
* Includes loans held-for-sale

QNB Corp. (Consolidated)
Average Balances, Rate, and Interest Income and Expense Summary (Tax-Equivalent Basis)

	Nine Months Ended
	September 30, 2024								September 30, 2023
	Average			Average					Average			Average
	Balance			Rate			Interest		Balance			Rate			Interest
Assets
Investment securities:
U.S. Treasury	$	8,820			5.10	%	$	337	$	3,618			4.97	%	$	134
U.S. Government agencies		81,800			1.17			718		101,945			1.11			849
State and municipal		107,237			3.56			2,860		109,877			2.64			2,173
Mortgage-backed and CMOs		355,878			2.72			7,262		405,979			1.96			5,971
Corporate debt securities and mutual funds		7,416			5.78			321		6,637			4.41			219
Equities		5,487			3.87			159		8,442			4.07			257
Total investment securities		566,638			2.74			11,657		636,498			2.01			9,603
Loans:
Commercial real estate		798,714			5.47			32,701		700,375			4.79			25,091
Residential real estate		109,463			4.07			3,337		106,817			3.67			2,943
Home equity loans		64,700			6.83			3,307		57,317			6.44			2,762
Commercial and industrial		141,148			7.57			7,997		141,176			7.55			7,977
Consumer loans		3,679			7.78			214		3,942			7.15			211
Tax-exempt loans		18,410			3.86			532		19,984			3.53			527
Total loans, net of unearned income*		1,136,114			5.65			48,088		1,029,611			5.13			39,511
Other earning assets		61,999			5.45			2,530		27,195			5.67			1,153
Total earning assets		1,764,751			4.71			62,275		1,693,304			3.97			50,267
Cash and due from banks		13,880								14,046
Allowance for loan losses		(8,897	)							(8,871	)
Other assets		41,317								38,938
Total assets	$	1,811,051							$	1,737,417

Liabilities and Shareholders’ Equity
Interest-bearing deposits:
Interest-bearing demand	$	337,632			0.89	%		2,243	$	314,012			0.52	%		1,227
Municipals		139,810			4.76			4,987		128,270			4.34			4,163
Money market		232,140			3.57			6,196		169,308			2.30			2,913
Savings		288,885			1.28			2,769		363,496			1.18			3,208
Time < $100		168,894			3.98			5,027		113,951			2.30			1,960
Time $100 through $250		141,156			4.53			4,790		104,697			3.42			2,676
Time > $250		50,855			4.49			1,709		36,590			2.80			767
Total interest-bearing deposits		1,359,372			2.72			27,721		1,230,324			1.84			16,914
Short-term borrowings		57,880			2.33			1,010		112,724			2.99			2,518
Long-term debt		26,058			4.63			918		14,267			3.98			430
Subordinated debt		4,605			9.35			323		—			—			—
Total interest-bearing liabilities		1,447,915			2.77			29,972		1,357,315			1.96			19,862
Non-interest-bearing deposits		187,918								213,492
Other liabilities		13,760								10,111
Shareholders’ equity		161,458								156,499
Total liabilities and
shareholders’ equity	$	1,811,051							$	1,737,417
Net interest rate spread					1.94	%							2.01	%
Margin/net interest income					2.45	%	$	32,303					2.40	%	$	30,405
Tax-exempt securities and loans were adjusted to a tax-equivalent basis and are based on the Federal corporate tax rate of 21%
Non-accrual loans and investment securities are included in earning assets.
* Includes loans held-for-sale

The MIL Network –

January 24, 2025

MIL-OSI: LHV Group’s unaudited financial results for Q3 and nine months of 2024

Source: GlobeNewswire (MIL-OSI)

Q3 of 2024 for LHV was marked by strong loan portfolio growth and the highest business volumes so far.

AS LHV Group earned EUR 84.9 million in revenue on a consolidated basis in Q3 of this year, which is 3% less than in Q2, but 4% more than at the same time a year ago. Of the revenue, net interest income accounted for EUR 67.4 million, and net fee and commission income for EUR 16.3 million. The Group’s operating expenses amounted to EUR 37.2 million in Q3, which is 1% less than in the previous quarter, but 14% more than a year earlier.

In Q3, AS LHV Group earned EUR 34.7 million in consolidated net profit. It was 10% lower than in Q2 and 12% less than in Q3 of 2023. The return on equity attributable to the Group’s shareholders was 22.4% in Q3.

During the quarter, AS LHV Pank earned EUR 34.1 million euros in net profit, AS LHV Varahaldus EUR 0.6 million, and AS LHV Kindlustus EUR 0.5 million. LHV Bank Limited reported a net loss of EUR 0.6 million in Q3.

By the end of September, the volume of LHV Group’s consolidated assets increased to EUR 7.82 billion. Over the quarter, the volume of assets increased by EUR 491 million, i.e. 7%. Compared to the previous quarter, the Group’s consolidated loan portfolio increased by EUR 236 million to EUR 4.13 billion (+6%; + EUR 246 million in Q2). Consolidated deposits increased by EUR 502 million to EUR 6.29 billion during the quarter (+9%; + EUR 150 million in Q2). The total volume of funds managed by LHV was EUR 1.52 billion at the end of September, which is EUR 8 million less than in the previous quarter (-1%; – EUR 11 million in Q2). The number of processed payments to financial intermediaries’ clients amounted to 18.8 million in Q3 (+3% compared to 18.3 million payments in Q2).

In the nine months of 2024, LHV Group has earned EUR 257.6 million in net income on a consolidated basis (+15% compared to 2023), and the total expenses have been EUR 110.4 million (+14%). This year, LHV’s consolidated loan portfolio has increased by EUR 564 million, i.e. 16%, and deposits (excluding deposits of financial intermediaries) by EUR 659 million (+14%).

The Group’s consolidated net profit for the nine months was EUR 114 million, which is EUR 5.8 million more than a year earlier (+5%). In nine months, AS LHV Pank earned EUR 105.7 million, LHV Bank Limited EUR 5.2 million, AS LHV Varahaldus EUR 1.1 million, and AS LHV Kindlustus EUR 1.1 million in net profit. LHV Group’s nine-month return on equity was 25.6%.

LHV’s nine-month net profit fell EUR 0.4 million short of the financial plan published at the beginning of October.

Income statement, EUR thousand	Q3-2024	Q2-2024	Q3-2023
Net interest income	67 427	70 424	68 141
Net fee and commission income	16 320	16 262	13 617
Net gains from financial assets	798	-37	-589
Other income	355	638	311
Total revenue	84 900	87 287	81 480
Staff costs	-20 166	-21 108	-16 308
Office rent and expenses	-854	-609	-1 085
IT expenses	-3 820	-3 471	-3 379
Marketing expenses	-1 338	-973	-845
Other operating expenses	-11 066	-11 426	-11 190
Total operating expenses	-37 245	-37 587	-32 807
EBIT	47 655	49 700	48 673
Earnings before impairment losses	47 655	49 700	48 673
Impairment losses on loans and advances	-7 276	-5 043	-2 883
Income tax	-5 681	-6 071	-6 314
Net profit	34 697	38 586	39 476
Profit attributable to non-controlling interest	312	300	418
Profit attributable to share holders of the parent	34 385	38 286	39 058

Profit attributable to non-controlling interest	0.11	0.12	0.12
Profit attributable to share holders of the parent	0.10	0.12	0.12

Balance sheet, EUR thousand	Sep 2024	Jun 2024	Sep 2023
Cash and cash equivalents	3 376 016	3 217 448	2 857 964
Financial assets	259 933	157 131	269 828
Loans granted	4 168 778	3 925 877	3 396 048
Loan impairments	-42 543	-35 333	-20 466
Receivables from customers	10 598	15 919	36 873
Other assets	47 567	48 681	50 924
Total assets	7 820 348	7 329 723	6 591 170
Demand deposits	4 160 516	3 882 999	3 814 480
Term deposits	2 125 844	1 900 930	1 501 724
Loans received	679 550	735 281	461 635
Loans received and deposits from customers	6 965 910	6 519 211	5 777 839
Other liabilities	108 605	100 710	124 238
Subordinated loans	106 079	107 521	166 848
Total liabilities	7 180 595	6 727 441	6 068 925
Equity	639 754	602 282	522 245
Minority interest	8 006	7 695	7 706
Total liabilities and equity	7 820 348	7 329 723	6 591 170

Although the business environment is still affected by the economic downturn, both the growth and quality of LHV’s loan portfolio remained at a strong level. In addition to the growing number of clients, the activity of clients was also at a good level. The share of overdue loans remains low, but both model-based discounts and discounts to individual clients have been added.

The number of clients of LHV Pank increased by 11,200 during the quarter, and a total of 37,200 bank clients (+9%) have been added in a year. The activity of clients in terms of settlements and the use of bank cards was good, and the active issuance of home loans continued: one in four home loans in Estonia continued to be taken out with LHV Pank. Retail loans increased by EUR 112 million over the quarter and corporate loans by EUR 47 million. The growth in deposits resulted in EUR 174 million from regular clients and EUR 52 million from financial intermediaries. Platform deposits were added in the amount of EUR 92 million. In a situation where interest rates on fixed-term deposits are falling, the bank’s focus remains on attracting deposits.

During the quarter, the offer of student loans was reopened, and with the help of LHV Pank, both Estonian Treasury Bills and several other securities offers were organised on the Baltic markets. In September, the Instar survey identified LHV Pank as the most preferred employer in Estonia in terms of students, business students, and experienced employees.

For LHV Bank operating in the United Kingdom, Q3 saw record loan growth, as the loan portfolio increased by EUR 76 million. There are EUR 150 million of loans approved by the Credit Committee but not yet issued. The quality of the loan portfolio remains strong, as there are no debtors. The focus on loans will continue to be relevant: to date, LHV Bank has entered into cooperation agreements with more than 50 loan brokers and has assembled the entire team. The deposits included by LHV Bank increased by EUR 189 million over the quarter. The payment volumes of financial intermediaries remained at the same level as in Q2. In September, the results reflected one-off expenses incurred in the previous months, which affected the quarterly profit.

The development of LHV Bank’s retail banking offering, mobile bank, and website continued. At the beginning of October, the mobile bank was opened for testing by own employees, the first accounts were opened and the first payments were made. At the beginning of July, LHV Bank joined the SEPA scheme, and joining the TIPS scheme is scheduled for April 2025.

All pension funds managed by LHV Varahaldus had a positive rate of return in Q3. The quarter was characterised by a more volatile and weaker time in the markets. The volume of the II pillar was affected by the movements of clients at the beginning of September and the exit from the II pillar, which reduced the number of active clients making monthly contributions by 2,000. At the same time, the volume of the III pillar exceeded the level of EUR 100 million. Business results were largely in line with the financial plan revised in October. Approximately 8,000 people had submitted applications for larger contributions to the II pillar by the end of the quarter, and applications for the coming year can be submitted until the end of November.

LHV Kindlustus continued on the path of good sales performance and profitability. For the second quarter in a row, home and travel insurance sales showed excellent growth. At the same time, there were few major loss events. The number of clients continued to grow. Net earned bonuses are outpacing the financial plan, with operating expenses being lower than planned. The decreasing net cost ratio supports the achievement of profitability goals.

As at the end of the quarter, LHV Group is well capitalised and the Group’s internal capital generation capacity exceeds loan growth. If the growth continues, there is a possibility that LHV Group will organise the offering of T2 bonds in Q4.

Comment by Madis Toomsalu, Chairman of the Management Board of the LHV Group: “During Q3, we achieved the highest business volumes in history, both in Estonian home and corporate loans, and in UK corporate loans. The total loan portfolio increased by EUR 236 million, showing a very strong result. To finance loan growth, deposits increased by EUR 502 million. In Estonia, the activity of clients continued to grow, and free euro payments bring in clients who make settlements and receive wages to their account. More and more clients are also using the insurance services of LHV. In the United Kingdom, the focus is on preparing for the launch of mobile banking, payments, and bank cards aimed at retail clients.”

To access the reports of AS LHV Group, please visit the website at https://investor.lhv.ee/en/reports/.

In order to present the results of the quarter, LHV Group will organise an investor meeting via the Zoom webinar platform. The virtual investor meeting will take place on 22 October at 9.00, before the market opens. The presentation will be in Estonian. We kindly ask you to register at the following address: https://lhvbank.zoom.us/webinar/register/WN_3bEDDGaqQL-Q3rXLMkk-eA.

LHV Group is the largest domestic financial group and capital provider in Estonia. The LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited. The Group employs nearly 1,200 people. As at the end of September, LHV’s banking services are being used by 445,000 clients, the pension funds managed by LHV have 116,000 active clients, and LHV Kindlustus protects a total of 169,000 clients. LHV Bank Limited, a subsidiary of the Group, holds a banking licence in the United Kingdom and provides banking services to international financial technology companies, as well as loans to small and medium-sized enterprises.

Priit Rum
Communications Manager
Phone: +372 502 0786
Email: priit.rum@lhv.ee

Attachments

The MIL Network –

January 24, 2025

MIL-OSI USA News: FACT SHEET: U.S. Achievements in the Global Fight Against Corruption

Source: The White House

Corruption poses a grave and enduring threat to U.S. national interests and those of our partners. When officials abuse their entrusted power for personal or political gain, the interests of authoritarians and corrupt actors win – at the expense of citizens, honest businesses, and healthy societies. As the Biden-Harris Administration took office, this longstanding challenge had metastasized. In some countries, oligarchs were teaming up with foreign kleptocrats to warp policy and procurement decisions in exchange for kickbacks – with no accountability. Corrupt officials were laundering stolen assets through the U.S. and global financial systems, while local investigators were ill-equipped to follow the money. Reformers in countries saddled with corruption had scarce public resources to actually address development needs. The Biden-Harris Administration tacked these challenges starting Day One, to ensure democracy delivers and corrupt actors are held to account.

The first National Security Study Memorandum of the Biden-Harris Administration established countering corruption as a “core U.S. national security interest,” leading to the issuance in December 2021 of the first United States Strategy on Countering Corruption. Since then, the United States has taken action at home and around the world to curb illicit finance, hold corrupt actors accountable, forge multilateral partnerships, and equip frontline leaders to take on transnational corruption. The result has been historic progress in protecting the U.S. financial system from money-laundering, including in the residential real estate sector, while enhancing corporate transparency. This Administration has mobilized record levels of foreign assistance dedicated to anti-corruption, including $339 million in Fiscal Year 2023 alone – almost double the yearly average during the previous four years. This new assistance has unlocked support for anti-corruption institutions, leveled the playing field for law-abiding businesses, enabled journalists to team up across borders, and more. Expanded law enforcement cooperation and capacity-building have generated convictions of corrupt actors as well as the seizure, forfeiture, and return of criminal proceeds, while new anti-corruption offices at the Department of State (State) and the U.S. Agency for International Development (USAID) energized diplomatic and stakeholder engagement. The United States imposed sanctions on more than 500 individuals and entities for corruption and related activities, and established – for the first time in any jurisdiction globally – a new visa restriction for those who enable corrupt activity.

U.S. progress on anti-corruption has produced concrete benefits for the American people and stakeholders around the world – enhancing prosperity, economic security, safety, and democracy, as outlined below. To bolster and sustain this work, the U.S. government has also modernized its approach to addressing corruption as a cross-cutting priority. Today, Deputy National Security Advisor for International Economics Daleep Singh will highlight the benefits of this work to American businesses and workers at a White House anti-corruption roundtable with leaders from 15 major U.S. companies.

Advancing economic opportunity abroad

Improving the business enabling environment: U.S. assistance advanced governments’ capacity to prevent, detect, investigate, and prosecute corruption, while encouraging anti-bribery compliance. State expanded its Fiscal Transparency Innovation Fund – to help willing partners improve budget transparency – while holding countries to account for progress in its Fiscal Transparency Report. In the past two years alone, a newly expanded State-Federal Bureau of Investigations (FBI) program facilitated U.S. collaboration with foreign counterparts on more than 50 transnational corruption and money laundering cases with a U.S. nexus. In coordination with State, experienced legal advisors from the U.S. Department of Justice (DOJ) assisted foreign justice partners around the world in investigating and prosecuting corruption and money laundering cases, and recovering assets. And DOJ’s Kleptocracy Asset Recovery Initiative, in partnership with the FBI and the Department of Homeland Security, has recovered more than $1.7 billion and returned or assisted in returning more than $1.6 billion for the benefit of the people harmed by the corruption.
Enforcing our bans on foreign bribery and money-laundering – and pressing other countries to do the same: To enable honest companies to compete overseas, the United States upheld its commitments under the OECD Anti-Bribery Convention by enforcing its foreign bribery and related laws and working with partners to monitor other countries’ progress in implementing the Convention, which celebrated its 25th anniversary in 2024. Since the start of the Administration, DOJ has imposed more than $3.5 billion in total monetary sanctions under the Foreign Corruption Practices Act (FCPA) in 16 corporate resolutions, and announced charges against more than 70 individuals. For instance, this April the former Comptroller General of Ecuador was convicted of money laundering relating to his receipt of over $10 million in bribes from, among others, the Brazil-based construction conglomerate Odebrecht S.A. The Securities and Exchange Commission continued civil enforcement of the FCPA, with approximately $1 billion in total monetary sanctions in 22 corporate resolutions, spanning conduct in 24 countries, since the start of the Administration. DOJ is also enforcing the recently enacted Foreign Extortion Prevention Act, which criminalizes demands for bribes by foreign officials from U.S. companies and others. In addition, this August DOJ announced a new Corporate Whistleblower Awards Pilot Program to uncover and prosecute corporate crime – with a particular focus on foreign and domestic corruption, as well as violations by financial institutions of their obligations to take steps to detect and deter money laundering.
Seizing windows of opportunity: U.S. assistance has become more agile via the establishment of USAID’s Anti-Corruption Response Fund (providing flexible support to countries experiencing new opportunities or backsliding), the State-DOJ Global Anti-Corruption Rapid Response Fund (providing assistance and case mentoring to foreign partners on short notice), and USAID’s Democracy Delivers initiative (which has marshalled $500 million in funding from the United States and others to help reformers deliver, including on their anti-corruption commitments). These innovations, informed by USAID’s Dekleptification Guide, are enabling the U.S. government to more nimbly pivot toward environments where local momentum can be bolstered by outside assistance.
Bolstering integrity in high-risk sectors: In April 2024, the United States and its partners launched the Blue Dot Network – a mechanism to certify infrastructure projects that have met global standards for quality and sustainability, including transparency in procurement and provisions to limit opportunities for corruption. The United States also supported the launch of PROTECT, a collective action project to address corruption risk in the supply chain for critical minerals.
Strengthening corruption safeguards in the Indo-Pacific: In June, the United States and thirteen other partners held a signing ceremony, after concluding eight rounds of negotiations in record time, for the Indo-Pacific Economic Framework for Prosperity (IPEF) Fair Economy Agreement. The Agreement aims to create a more transparent, predictable trade and investment environment across IPEF partners’ markets, including through binding obligations to prevent and combat corruption. The Department of Commerce (Commerce) and State are accelerating implementation by offering new anti-corruption technical assistance to IPEF partners, including workshops on procurement corruption.
Dialoguing with the private sector: In 2021, State launched the Galvanizing the Private Sector as Partners in Combatting Corruption initiative, which connects companies and governments to strengthen business integrity and encourage governance reform. Commerce’s International Trade Administration organized the 2024 forum of the Business Ethics for Asia-Pacific Economic Cooperation (APEC) Small and Medium Enterprises Initiative – the world’s largest public-private partnership on ethical business conduct – at which stakeholders formalized policy recommendations on business integrity in public procurement.

Protecting the U.S. financial system from abuse

Expanding corporate transparency: To deter kleptocrats and criminals from laundering money through anonymous shell companies, the Department of the Treasury (Treasury) operationalized a new filing system for certain companies operating in the United States to report their beneficial owners – the real people who own or control them – pursuant to the bipartisan Corporate Transparency Act. Treasury held hundreds of outreach events across all states and territories, reaching thousands of stakeholders, to enable companies to quickly and easily comply with this reporting requirement.
Closing loopholes for money-laundering: Treasury finalized rules to close two major loopholes in the U.S. financial system: (1) to increase transparency in the U.S. residential real estate sector, to ensure that law-abiding homebuyers are not disadvantaged by individuals laundering their ill-gotten gains, and (2) to safeguard the investment adviser industry from illicit finance. Treasury also proposed a rule to modernize financial institutions’ anti-money-laundering/countering the financing of terrorism (AML/CFT) programs, to make them more effective and risk-based. Together, these rulemakings represent historic advances for the U.S. AML/CFT regime, in line with international standards, that will help the United States urge other countries to undertake similar reforms to curb illicit finance. The Biden-Harris Administration has also called on Congress to close even more loopholes that facilitate money-laundering by passing the ENABLERS Act.
Blocking assets and denying entry to corrupt actors: Since the start of the Administration, Treasury has designated more than 500 individuals and entities for corruption and related activities, across six continents. That includes blocking the assets of 20 individuals and 48 companies in Fiscal Year 2024 for corruption in Afghanistan, Guatemala, Guyana, Paraguay, Western Balkans, and Zimbabwe. In tandem, State publicly issued corruption-related visa restrictions for 76 foreign officials and family members in Fiscal Year 2024, and 292 over the course of the Administration. These actions have protected the U.S. financial system from corrupt actors and promoted accountability in domestic jurisdictions. For example, just one week after the U.S. issuance of a public visa restriction on former Director of Bosnia-Herzegovina (BiH) Intelligence Services Osman Mehmedagic for significant corruption, he was arrested by BiH authorities for abuse of office.
Taking aim at enablers of corruption: In December 2023, President Biden issued an historic Presidential Proclamation establishing a visa restriction for those who facilitate and enable significant corruption and their immediate family members. This new visa restriction complements existing commitments to use sanction and law enforcement capabilities to target private enablers of public corruption. Earlier this year, the FBI and DOJ secured a guilty plea and a criminal penalty of $661 million from Gunvor – one of the largest commodities trading firms in the world – for facilitating bribery of Ecuadorian officials and laundering those bribes through U.S. banks. In addition, USAID launched new activities to incentivize integrity within professions that serve as gatekeepers to the international financial system.
Upholding international standards: The United States has helped lead efforts to expand anti-corruption work at the Financial Action Task Force (FATF), including improving assessment tools, mitigating risks associated with “golden passport” programs, and highlighting how non-financial sectors can be abused by corrupt actors.

Keeping America and our partners safe

Addressing corruption risk in the security sector: Security sector corruption can divert essential supplies, empower malign actors, threaten the safety of U.S. service members, and undermine U.S. military missions writ large. In the past year, the Department of Defense (DOD) incorporated corruption risk into its security cooperation planning – subjecting certain proposals to further scrutiny and identifying risk mitigation measures as needed. State also created new resources to weigh corruption risk as part of security sector assistance decision-making. In addition, State’s Global Defense Reform Program and DOD’s institutional capacity building programs advanced more transparent, accountable, and professional defense institutions. DOD continued running a training course on combatting corruption for partner military commanders and civilian leaders.
Tackling organized crime and corruption: Transnational criminal organizations often rely on corruption to enable their criminal activities and evade accountability – which fuels narcotrafficking into the United States, human smuggling, cybercrimes, and more. The U.S. government is deploying anti-corruption tools to target criminal networks and their financial enablers, in line with the 2023 White House Strategy to Combat Transnational Organized Crime.
Standing up to Russia’s aggression: The United States has adapted to address the wartime needs of Ukraine’s anti-corruption stakeholders, as they close off a key vector for Russian dominance and advance Ukraine’s democratic future. In 2023, Ukrainian anti-corruption investigators and prosecutors achieved an 80 percent increase in prosecutions and a 50 percent increase in convictions, plus opened cases against high-ranking officials including the former head of the Ukrainian Supreme Court. With U.S. support, Ukraine has advanced significant reforms on asset disclosure, launched a whistleblower portal, strengthened the National Anti-Corruption Bureau, and enhanced transparency and integrity in reconstruction.
Securing a greener future: The United States has integrated an anti-corruption lens across sectors, with particular emphasis on addressing corruption vulnerabilities that threaten a secure, just energy transition for all. This includes USAID support to the Extractive Industries Transparency Initiative (EITI), increased mining transparency in the Democratic Republic of Congo and Zambia, and innovations that address transnational corruption in green energy mineral supply chains across 15 countries.
Protecting global health: Corruption curtails the ability of states to respond to pandemics and undercuts access to basic healthcare. USAID is tackling this challenge by releasing cutting-edge guidance on anti-corruption in the health sector and launching integrated programming. For example, in Liberia the United States is working with the government to curb theft of pharmaceuticals through civil society monitoring, law enforcement trainings, and public awareness campaigns.
Addressing the root causes of migration: Combating corruption is a core component of improving conditions in El Salvador, Guatemala, and Honduras – so people do not feel compelled to leave their homes, in line with the U.S. Strategy for Addressing the Root Causes of Migration in Central America. Recent U.S. actions have included training up to 27,000 justice sector stakeholders in those countries to more effectively address corruption.

Defending democracy by rooting out corruption

Tackling electoral corruption: When candidates can be bankrolled by foreign adversaries and institutions captured by kleptocrats, citizens lose faith in their governments—or even in democracy itself. In response, USAID has launched new programs to bolster electoral integrity, strengthen independent media, and increase the transparency of political finance in high-risk locations.
Lifting up civil society and independent media: The U.S. government has substantially expanded support to frontline activists and journalists, including through the Global Anti-Corruption Consortium. In addition, a new State Department initiative is training hundreds of journalists in transnational corruption investigations, while USAID’s new investigative journalist networks in Asia and Southern Africa are building capacity to track corruption across sectors and across borders. The Secretary of State established a new award for Anti-Corruption Champions, which has honored dozens of courageous civil society leaders and embattled reformers. In 2022, the United States also hosted the largest regular gathering of civil society activists fighting corruption – the International Anti-Corruption Conference – in Washington, DC, with keynote remarks from APNSA Jake Sullivan.
Protecting sovereignty: Authoritarian actors like Russia and the PRC use bribery to interfere in the policy, procurement, debt, and electoral processes of other countries – undermining both sovereignty and democracy. The United States is standing up to this tactic by building the resilience of frontline actors to detect and deflect foreign-backed strategic corruption, educating partners about the kleptocrats’ playbook, harnessing sanction tools to deter threats, and increasing collaboration between practitioners working on anti-corruption and those addressing foreign malign influence – both within the USG and with likeminded partners. For example, in June the United States joined with Canada and the UK to expose Russia’s use of corruption and covert financing, among other tactics, to undermine democratic processes in Moldova.
Restoring trust in American democracy: The Biden-Harris Administration has established the strongest ethics standards of any U.S. presidency. On his first day in office, the President signed an Executive Order requiring administration officials to take a stringent ethics pledge, which extends lobbying bans, limits shadow lobbying, and makes ethics waivers more transparent. The Administration also restored longstanding democratic norms by protecting DOJ cases from political interference, releasing the President’s and Vice-President’s taxes, and voluntarily disclosing White House visitor logs. And in the last year, the Office of Government Ethics finalized rules updating the standards for ethical conduct and legal expense funds for executive branch employees.
Protecting American democracy from malign finance: Just as we defend democracy around the world, the U.S. government is working to keep American democracy safe from foreign adversaries. Actions to curb money laundering in the United States can help reduce the ability of foreign and domestic actors to make illegal campaign contributions and evade U.S. election laws. President Biden has called on Congress to go even further by passing the DISCLOSE Act, which would curb the ability of foreign entities and special interests to use dark money loopholes to influence our elections.
Revitalizing participation in the Open Government Partnership (OGP): The United States rejoined the Steering Committee of OGP – a platform for civil society and governments to forge joint commitments and learn from each other– and provided assistance for OGP’s work on anti-corruption. Domestically, the United States has turbocharged OGP implementation by creating the U.S. Open Government Secretariat at the General Services Administration, an Open Government Federal Advisory Committee, an Interagency Community of Practice – spanning federal, state, local, tribal, and territorial governments, and engaged with hundreds of stakeholders to exchange lessons and expand transparency, accountability, and public participation. The United States also launched the first-ever Request for Information to feed into the 6^th U.S. OGP National Action Plan and announced development of a toolkit to help federal agencies more meaningfully engage with the public.

Modernizing and coordinating U.S. government efforts to fight corruption

Institutionalizing anti-corruption as an enduring priority: Over the past four years, Departments and Agencies have made substantial organizational improvements to elevate corruption concerns. For example:
- The State Department’s new Office of the Coordinator on Global Anti-Corruption leads the integration of anti-corruption priorities into bilateral and other policy processes, conducts targeted diplomatic engagements, and drives strategic planning, including through the Department’s senior-level Anti-Corruption Policy Board. In the past year, the Office jumpstarted implementation of the Combating Global Corruption Act and completed an analysis of anti-corruption assistance to inform future State Department decision-making.
- USAID’s new Anti-Corruption Center, within the newly established Bureau for Democracy, Human Rights, and Governance, serves as a hub of technical expertise and thought leadership – driving the integration of corruption considerations across USAID’s portfolio, supporting USAID Missions in developing localized approaches, managing a suite of programming focused on transnational corruption, and using its convening power and policy insights to forge strategic partnerships. Since 2022, USAID has released its first-ever Anti-Corruption Policy, which outlines a cross-sectoral approach to constraining opportunities for corruption, raising the costs of corruption, and incentivizing integrity – plus a host of tools to drive uptake across USAID.
- FBI’s International Corruption Unit expanded an agreement with the State Department to deploy six regional anti-corruption advisors to strategic locations around the world, where they organize regional working groups with local law enforcement officials, provide case-base mentorship, and facilitate coordination with the International Anti-Corruption Coordination Centre.

Expanded interagency capacity has been complemented by the National Security Council’s establishment of a dedicated Director for Anti-Corruption position, for the first time, to ensure whole-of-government coordination and advance anti-corruption within key policy processes.

Leading in multilateral fora: The United States has regained its leadership role in the international bodies that shape anti-corruption norms globally and can sustain momentum across time. In particular, the United States stepped into the presidency of the UN Convention against Corruption Conference of States Parties (UNCAC COSP), proudly hosting in December 2023 thousands of stakeholders in Atlanta, Georgia, led by the U.S. Representative to the United Nations Linda Thomas-Greenfield. As part of its commitment to championing the role of non-governmental actors in the fight against corruption, the United States facilitated record civil society participation in UNCAC working group meetings, hosted the first UNCAC Private Sector Forum, and supported inclusive implementation of UNCAC commitments in Latin America, East Africa, and Southeast Asia. The United States also participated in several peer reviews of our own anti-corruption practices over the last three years, and proudly made these results public. Alongside these multilateral fora, we convened the Global Forum on Asset Recovery action series to accelerate practitioner cooperation across the United States, Algeria, Honduras, Iraq, Moldova, Nigeria, Seychelles, Ukraine, the United Kingdom, and Zambia.
Understanding corruption dynamics: The Intelligence Community developed and disseminated new resources to bolster intelligence prioritization, collection and analysis on corrupt actors and their networks. USAID commissioned research on topics like countering corruption through social and behavioral change and State initiated an interagency anti-corruption learning agenda and a small grants program to support it.
Deepening external partnerships: The United States convened a series of coordination meetings with other bilateral donors and philanthropies in order to harmonize our anti-corruption approaches and galvanized anti-corruption resources across the donor community through the Integrity for Development campaign. USAID’s Countering Transnational Corruption Grand Challenge for Development brought together technologists, businesses, activists, and others to collaboratively address concrete corruption challenges.

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MIL OSI USA News –

January 24, 2025

MIL-OSI USA News: A Proclamation on Minority Enterprise Development Week, 2024

Source: The White House

Our Nation’s minority-owned businesses are the glue of our communities and the engines of our economies. Investing in them is key to growing our economy from the middle out and bottom up, not the top down. When minority-owned businesses do well, everyone does well. More people get jobs, first-time business owners build generational wealth, our economy grows, and more Americans feel a sense of pride and hope in all that is possible in our Nation. This Minority Enterprise Development Week, may we celebrate the talent and ingenuity of the innovators and entrepreneurs who run our Nation’s minority-owned businesses. And may we recommit to ensuring that minority-owned businesses have access to the resources they need to thrive.

Minority-owned businesses add incredible value to our economy, generating nearly $2 trillion in revenue each year. These businesses not only provide the goods and services we need but are also sources of hope — helping people realize their American Dream, building generational wealth, and uplifting their families and communities. That is why my Administration is ensuring that minority-owned businesses have access to capital and can grow. The Small Business Administration (SBA) is lending tens of billions of dollars to small businesses that would otherwise struggle to access capital. For example, since 2020, the rate of SBA-backed loans increased by about 40 percent for Asian American-owned businesses, tripled for Black-owned businesses, and more than doubled for Latino-owned businesses. Further, my American Rescue Plan helped minority-owned small businesses keep their doors open during the COVID-19 pandemic and represents the largest-ever dedicated Federal investment to connect minority-owned small businesses to support. That law invested $10 billion to launch and expand programs that provide critical access to capital for small businesses. The American Rescue Plan also invested $500 million to fund over 100 awards for organizations working to connect entrepreneurs to resources to help their small businesses recover and thrive through initiatives like the SBA’s Community Navigators Program, the Department of the Treasury’s Small Business Opportunity Program, and the Minority Business Development Agency’s Capital Readiness Program.

My Administration has also been working to ensure that minority-owned businesses get a fair shot at success. That is why I signed an Executive Order that would increase the share of total Federal contracts going to disadvantaged businesses from 10 percent to 15 percent by 2025 — and in the last 3 years, we have spent over $208 billion on small disadvantaged businesses. My Bipartisan Infrastructure Law expanded and made permanent the Minority Business Development Agency, ensuring that minority-owned businesses have access to the resources and support they need to thrive. And with my Inflation Reduction Act and CHIPS and Science Act, we are working to make sure that minority-owned businesses are benefiting from the billions of dollars we are investing in America’s infrastructure, manufacturing, and clean energy industries here at home. In addition, Vice President Harris launched the Economic Opportunity Coalition in 2022 to provide tens of billions of dollars in investments to underserved communities.

Since Vice President Harris and I entered office, our Administration has created 16 million jobs, and American entrepreneurs have filed nearly 20 million new business applications. Wages are growing faster than prices. Unemployment remains low. Black- and Latino-owned businesses are being created faster today than they have been in years and Federal contracts with Native American-owned companies increased by over $8 billion from 2020 to 2023. I also take pride in my Administration’s investments in Historically Black Colleges and Universities, Hispanic-Serving Institutions, Tribal Colleges and Universities, and Asian American and Native American Pacific Islander-Serving Institutions — all of which are helping launch the next generation of innovators, entrepreneurs, and business owners. These investments will ensure that their graduates will have every opportunity to lead the industries of the future and build generational wealth.

Across America — from small towns to big cities — we are seeing thousands of stories of revival, renewal, optimism, and pride. And each new business that is created is an act of hope, not just for the business owner but for the entire community. During Minority Enterprise Development Week, may we celebrate all the minority-owned businesses making our economy stronger, our Nation more competitive, and our communities more hopeful. And may we recommit to supporting their success and longevity.

NOW, THEREFORE, I, JOSEPH R. BIDEN JR., President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim October 20 through October 26, 2024, as Minority Enterprise Development Week. I call upon the people of the United States to acknowledge and celebrate the achievements and contributions of minority business owners and enterprises and commit to promoting systemic economic equality.

IN WITNESS WHEREOF, I have hereunto set my hand this eighteenth day of October, in the year of our Lord two thousand twenty-four, and of the Independence of the United States of America the two hundred and forty-ninth.

JOSEPH R. BIDEN JR.

MIL OSI USA News –

January 24, 2025

MIL-OSI China: Sibos conference reveals China’s financial openness

Source: China State Council Information Office

Photo taken on Oct. 3, 2022 shows the view of skyscrapers of the Central Business District (CBD) at dusk in Beijing, capital of China. [Photo/Xinhua]

The Swift International Banker’s Operation Seminar 2024 (Sibos 2024) opened Monday in Beijing, a milestone demonstrating the country’s openness in the finance sector as it is the first time the Chinese capital has hosted the event.

Over 10,000 participants from more than 150 countries and regions have gathered for Sibos 2024, which covers a wide range of topics, including payments, digital assets, trade financing, artificial intelligence and sustainable finance.

The forum also has an exhibition area covering 133 financial institutions and third-party organizations, such as J.P. Morgan, Citibank, HSBC and ICBC.

Lu Lei, deputy governor of the People’s Bank of China (PBOC), said at the opening ceremony that China has removed foreign ownership restrictions on banking, securities and insurance, attracting over 110 foreign financial institutions to operate in the country.

The PBOC will expand the interconnectivity of domestic and international financial markets, further support excellent Chinese companies in listing and issuing bonds overseas, and encourage China’s sovereign wealth funds, financial institutions and other business entities to invest overseas, Lu said.

He also noted that the PBOC will support qualified global banking institutions to join the Cross-border Interbank Payment System (CIPS), facilitating the clearance of cross-border RMB transactions.

Javier Pérez-Tasso, chief executive officer of Swift, highlighted the rapid economic development in China and the corresponding growth of Swift’s business in the country. Swift is collaborating closely with CIPS and other entities to ensure the security of global finance and payments, the CEO said.

Rani Gu, managing director and head of Payments, Greater China at J.P. Morgan, said the conference will foster communication and cooperation between China and top financial institutions around the world, further promoting the interconnectivity of the global financial industry and contributing to the further openness of China’s financial market.

Bill Winters, group chief executive of Standard Chartered, said China is at the heart of the global trade and cross-border payments.

The opportunity to be in China — looking at the global payments infrastructure through the lens of the Chinese market and from a Chinese perspective — is a special opportunity for Standard Chartered and could not be more timely, he said.

The annual conference will run until Oct. 24 at the China National Convention Center.

MIL OSI China News –

January 24, 2025

MIL-OSI Asia-Pac: FS speaks at APEC meeting

Source: Hong Kong Information Services

Financial Secretary Paul Chan speaks on various topics while attending day two of the APEC Finance Ministers’ Meeting (FMM) in Peru yesterday.

The topics included global and regional economic and financial outlooks, sustainable finance, sustainable infrastructure, digital finance, and enhancing resilience against climate change.

This year’s APEC FMM takes the theme of “Sustainable + Digital + Resilient = APEC.”

In the session on global and regional economic and financial outlooks, Mr Chan shared the latest economic situation in Hong Kong and reiterated the city’s firm support for rules-based free trade and multilateralism.

He pointed out that as a super connector, Hong Kong plays a bridging role between traditional and emerging markets, promoting the regional digital economy and innovative technology for better collective development.

During the discussion session on sustainable finance and infrastructure, Mr Chan highlighted Hong Kong’s functions as an international financial centre, facilitating the effective matching of funds with green and infrastructure projects.

He noted that through financial innovation and co-operation with international institutions, Hong Kong has been able to securitise infrastructure loans from various countries and issue catastrophe bonds, guiding more international capital to support projects in developing countries and helping them address climate challenges.

He also shared updates and experience on Hong Kong’s efforts in advancing green and transition finance, including the release of a green taxonomy aligned with international standards and active participation in setting global green standards.

Additionally, the Financial Secretary participated in discussions on digital finance at the FMM, sharing Hong Kong’s experiences in developing fintech and promoting inclusive finance, including how regulatory sandboxes encourage fintech innovation and the application of new technologies.

He noted that Hong Kong’s robust and internationalised financial infrastructure, along with a balanced regulatory system that promotes security and innovation, is conducive to building a thriving fintech ecosystem.

At a luncheon of the APEC Business Advisory Council, Mr Chan shared Hong Kong’s experiences on leveraging private market capital to better support sustainable infrastructure and climate change projects, as well as creating a more favourable environment for micro, small and medium enterprises to embrace digital finance.

Furthermore, he exchanged views with representatives and business leaders from other economies.

Also during the FMM, Mr Chan spent time meeting South Korea’s Deputy Prime Minister and Minister of Economy & Finance of the Republic of Korea Choi Sang-mok, and Vietnam’s Deputy Minister of Finance Vo Thanh Hung.

In the evening, he departed Peru for the US city of New York where he plans to attend the Bloomberg Global Regulatory Forum today and deliver a speech.

MIL OSI Asia Pacific News –

January 24, 2025

MIL-OSI USA: October 21st, 2024 Heinrich Highlights $2.5 Million for Mobile Training Unit to Connect Rural New Mexicans to In-Demand Careers in the Skilled Trades, Participates in Training Demo with U.A. Local 412

US Senate News:

Source: United States Senator for New Mexico Martin Heinrich
PHOTOS & VIDEO
ALBUQUERQUE, N.M. — U.S. Senator Martin Heinrich (D-N.M.), Chairman of the U.S. Joint Economic Committee and a member of the Senate Appropriations Committee, highlighted more than $2.5 million he has secured through the Appropriations process for the United Association of Plumbers & Pipefitters Local 412 (U.A. Local 412) to operate a mobile training unit that provides pre-apprenticeship training to New Mexicans living in rural and Tribal communities.
The mobile training unit is creating more pathways to in-demand careers in the skilled trades and has already trained dozens of New Mexicans in Española, Taos, Las Vegas, Mora, Raton, and Santa Fe. Heinrich also participated in a training demonstration with U.A. Local 412 leadership and apprentices who are learning skills in the plumbing, pipefitting, and HVAC trades.

U.S. Senator Martin Heinrich (D-N.M.) participates in a training demonstration with the United Association of Plumbers & Pipefitters Local 412 (U.A. Local 412), October 21, 2024.
“Thanks to our Inflation Reduction Act and CHIPS and Science Act, New Mexico is experiencing a manufacturing and clean energy renaissance that is creating new high-quality careers New Mexicans can build their families around,” said Heinrich. “I’m focused on expanding pathways to skills training and apprenticeships that connect New Mexicans to careers in their own communities. This is how we can address workforce shortages, grow the middle class, and strengthen our economy.”
Heinrich-Secured Federal Investments for the Mobile Training Unit:
The U.A. Local 412 Mobile Training Unit was initially paid for by an Economic Development Administration (EDA) Good Jobs Challenge Grant, as part of a $6.4 million award to the Northern N.M. Workforce Integration Network. The Good Jobs Challenge funds were authorized by the American Rescue Plan, the critical economic recovery legislation that Heinrich was proud to pass in 2021.
Through his work on the Senate Appropriations Committee, Heinrich has further supported the U.A. Local 412’s workforce development efforts by securing more than $2.5 million in Congressionally Directed Spending (CDS) in the Fiscal Year 2023 and Fiscal Year 2024 Appropriations Bills. These awards helped the union secure the equipment and staffing they need to train New Mexicans for jobs in the skilled trades, including specialized training needed to fill the many new, well-paying jobs being created by the CHIPS and Science Act and the Inflation Reduction Act.
Heinrich is currently fighting to pass the Fiscal Year 2025 Appropriations Bills, which include an additional $870,000 CDS award that he secured within the Senate Appropriations Committee-passed Labor, Health and Human Services, Education Appropriations Bill to sustain the U.A. Local 412’s mobile training unit’s operations past the original EDA funding, and to expand its reach to new communities including Grants, Gallup, Silver City, and Zuni Pueblo.
Heinrich’s Longtime Support for Workforce Training and Apprenticeships:
Heinrich has long championed proven workforce training programs like U.A. Local 412’s apprenticeship and pre-apprenticeship programs that are growing the middle class, creating and connecting New Mexicans to high-quality careers they can access in their communities, and continuing New Mexico’s leading role in the clean energy transition that is being built by union workers in the skilled trades.
Last week, Heinrich hosted a “Pro-Worker, Pro-Business Opportunities” roundtable to talk directly with New Mexicans about how federal legislation he helped pass into law, like the Inflation Reduction Act and Infrastructure Law, is creating careers in high-demand sectors and strengthening New Mexico’s health care, early childhood education, and skilled trades workforce.
Last year, Heinrich introduced the bipartisan Apprenticeship Pathways Act, legislation to create pathways to careers for high school students by expanding access to apprenticeship programs for occupations with high need, including the building trades, healthcare, manufacturing, technology, telecommunications, and early childhood education. Earlier this year, Heinrich introduced the Pre-Apprenticeships To Hardhats (PATH) Act, legislation to strengthen the pipeline for careers in New Mexico, address rising workforce shortages, and grow the state’s economy through quality pre-apprenticeship programs.
Last year, Courtenay Eichhorst, Business Manager of U.A. Local 412 and President of New Mexico Building Trades, testified about the importance of apprenticeships and pre-apprenticeships during a hearing that Heinrich convened as the Chairman of the Joint Economic Committee on “Job Training for the Clean Energy Transition.”
Eichhorst said during that JEC hearing, “In addition to our ‘gold standard’ apprenticeship programs, the UA and other Building Trades’ unions are also increasingly investing in pre-apprenticeship programs that can be designed to help prepare high school students or individuals from underrepresented communities for a career in the trades. These programs help fill the role that used to be filled by the ‘shop classes’ that were found in high schools but have become increasingly rare. Pre-apprenticeship programs also focus on the ‘soft skills’ that are necessary for success in any industry, such as showing up on time and other work etiquette.”
Earlier this year, also in the Fiscal Year 2024 Appropriations Bills, Heinrich secured $1,200,000 in Congressionally Directed Spending for the SMART Local Union No. 49 Joint Apprenticeship and Training Committee to enhance and expand specialized HVAC apprenticeship training.
In March, Heinrich introduced the Providing Resources and Opportunities for Health Education and Learning (PRO-HEAL) Act, legislation that will tackle the health care provider shortage in New Mexico and nationwide by expanding pathways to high-quality, in-demand health care careers that medical professionals can access in their communities. Specifically, the PRO-HEAL Act addresses medical provider shortages by incentivizing states and institutions of higher education to expand or create health care provider pipeline programs, particularly in underserved and rural communities. The legislation is inspired by the success of the Combined BA/MD Degree Program at the University of New Mexico, where over 65% of students who have graduated from their program practice medicine in New Mexico.
Last year, Heinrich introduced the Pathways to Health Careers Act, legislation that reauthorizes and modernizes the Health Profession Opportunity Grant (HPOG) program to help address health care shortages in New Mexico and across the country and create pathways to high-quality, in-demand health care careers. The HPOG program has a proven track record of successfully educating workers for jobs in the health care industry, while also providing career coaching, job placement, and a mix of other support services. The Pathways to Health Careers Act would restart and expand the HPOG Program, providing $425 million to make HPOG available nationwide from FY2024 through FY2028 and includes set asides for Tribes and U.S. Territories.
In 2021, Heinrich introduced the Championing Apprenticeships for New Careers and Employees in Technology (CHANCE in Tech) Act, legislation to create earlier pathways to high-paying careers in the information technology (IT) industry. Heinrich previously introduced similar bipartisan legislation in 2019 with former Senator Cory Gardner (R-Colo.).

MIL OSI USA News –

January 24, 2025

MIL-OSI USA: Murray, Cantwell, Kilmer Announce $51M Federal Grant to Repair Hood Canal Bridge

US Senate News:

Source: United States Senator for Washington State Patty Murray
Hood Canal Bridge is a vital link between Olympic and Kitsap peninsulas & helps more than 30,000 daily commuters avoid a 100-mile detour around Puget Sound
As the longest floating saltwater bridge in the world, the structure is deteriorating in the harsh marine environment
WASHINGTON, D.C. – Today, U.S. Senators Patty Murray (D-WA) , Maria Cantwell (D-WA) and U.S. Representative Derek Kilmer (D, WA-06) announced that the Washington State Department of Transportation will receive $51,125,917 in federal funds to repair the Hood Canal Bridge.
The funding comes from the Infrastructure for Rebuilding America (INFRA) Grant Program, which provides grants to nationally and regionally significant transportation projects to improve the country’s freight network.
“The Hood Canal Bridge is an absolutely critical connection for people and businesses on the Olympic and Kitsap peninsulas,” said Sen. Murray. “This is a piece of infrastructure that must remain safe and reliable so people can get to where they need to go—whether that’s work, a doctor’s appointment, or anything else. With thousands of travelers relying on this bridge just about every day, I’m proud to have worked together with Senator Cantwell and Representative Kilmer to ensure we bring these federal dollars home to replace outdated portions of this bridge.”
“Thanks to the Bipartisan Infrastructure Law, the Hood Canal Bridge will receive the repairs it needs to continue providing a vital connection between Kitsap, Jefferson, and Clallam Counties, with more than 30,000 crossings per day. Without this bridge, drivers would need to take a 100-mile detour around Puget Sound. And if the bridge’s retractable span were to fail, submarines and other vessels would be cut off from Naval Base Kitsap – Bangor,” Sen. Cantwell said. “This bridge is critical to the quality of life for residents and our national security.”
“The Hood Canal Bridge is often a lifeline for folks on the Olympic Peninsula, enabling them to get where they need to go,” said Rep. Kilmer. “This federal funding is a major step toward improving the safety and reliability of the bridge, helping ensure that it will remain open, accessible and resilient for years to come. And with federal support it means this project can move forward without the costs falling solely on the backs of taxpayers in our state. That’s a win-win.”
This project will replace over 3,400 linear feet of the western half of the bridge including the replacement of 55 reinforced concrete crossbeams and 216 prestressed concrete girder lines and the placement of nearly 4,800 cubic yards of concrete. Preliminary design work is scheduled to begin in November 2025, with project completion scheduled for June 2027. The project’s total budget is $85.2 million.
The Hood Canal Bridge links the Olympic and Kitsap peninsulas, allowing over 30,000 motorists to get to and from work each day. As the longest floating bridge in the world over saltwater, this unique structure sits in a harsh marine environment that’s deteriorated its condition over the past 40 years. Currently, vehicles that can cross the bridge are weight-restricted at 17,000 lbs per axle or less, and overweight vehicles are forced to drive nearly 100 miles around Puget Sound. If the bridge’s condition goes unaddressed, further deterioration and restrictions would have severe impacts on commerce and the livelihood of those who depend on the bridge every day.
The Hood Canal Bridge also crosses a channel used by U.S. Navy submarines to reach the Pacific Ocean from Naval Base Kitsap -Bangor. Should the bridge’s retractable span become unusable, those vessels would be cut off from the base.
Sen. Murray, as a senior appropriator and then Assistant Majority Leader, helped secure $3.2 billion for the INFRA grant program in advance appropriations in addition to the $4.8 billion funded through the Highway Trust Fund when she helped pass the Bipartisan Infrastructure Law, for a total of $8 billion over five years.
Sen. Cantwell authored the INFRA Grant Program in the FAST Act of 2015, to provide grants to nationally and regionally significant freight and highway projects. This grant program was the first discretionary grant program to focus on improving the multimodal freight network and addressing freight bottlenecks. In 2022, as chair of the Senate Committee on Commerce, Science, and Transportation, Sen. Cantwell helped secure $8 billion over five years for the INFRA Grant Program as part of the Bipartisan Infrastructure Law, a 78 percent increase in funding. Additionally, in August 2024, Sen. Cantwell wrote a letter to Department of Transportation Secretary Pete Buttigieg in support of the Hood Canal Bridge project’s INFRA grant application. The State of Washington has received 11 INFRA Grants, for a total of $532,300,108 since the start of the program.

MIL OSI USA News –

January 24, 2025

MIL-OSI USA: Ernst Names Small Business of the Week, Kaleidoscope Factory

US Senate News:

Source: United States Senator Joni Ernst (R-IA)
RED OAK, Iowa – U.S. Senator Joni Ernst (R-Iowa), Ranking Member of the Senate Small Business Committee, today announced her Small Business of the Week: Kaleidoscope Factory of Pocahontas County. Throughout this Congress, Ranking Member Ernst plans to recognize a small business in every one of Iowa’s 99 counties.
“Woodworking, like a kaleidoscope, is an art that celebrates transformation – with each cut and carve, new beauty emerges,” said Ranking Member Ernst. “The Kaleidoscope Factory reveals fresh perspectives with every twist, uncovering the hidden potential in every piece of wood.”
In 1997, Leonard Olson received his first kaleidoscope as a gift, sparking a lifelong passion for woodworking. He began making them on his own and opened Kaleidoscope Factory in Pomeroy, Iowa in 2004. In 2014, Leonard moved Kaleidoscope Factory to downtown Pocahontas.
After Leonard passed away in 2019, his sisters, Lois Hessenius and Margaret Egli, kept the business running while other family and friends stepped up to help craft a variety of products like kaleidoscopes, toy trains, and puzzles. Kaleidoscope Factory partnered with the Pocahontas County Economic Development Commission to install life-sized kaleidoscopes throughout the community. This past April, Kaleidoscope Factory celebrated its 20th anniversary.
Stay tuned as Ranking Member Ernst recognizes more Iowa small businesses across the state with her Small Business of the Week award.

MIL OSI USA News –

January 24, 2025

MIL-OSI Translation: 07/10/2024 Conversation between the deputy ministers of foreign affairs of Poland and Panama

MIL ASI Translation. Region: Polish/Europe –

Fuente: Gobierno de Polonia en poleco.

Conversation between the deputy ministers of foreign affairs of Poland and Panama07/10/2024The Undersecretary of State at the Ministry of Foreign Affairs, Jakub Wiśniewski, met on October 4 with the deputy head of Panamanian diplomacy, Carlos Guevara Mann.

The talks concerned cooperation at the Community of Democracies forum, including the celebration of the 25th anniversary of the signing of the Warsaw Declaration. Panama and Poland currently sit on the Community’s Executive Committee, the deliberations of which, with the participation of the Panamanian Deputy Minister as an honorary guest, took place on October 3 in Warsaw. They also discussed the promotion of democracy in the world, emphasizing that in the face of contemporary global beliefs, cooperation between countries is becoming crucial de mentalidad similar. The interlocutors also expressed their interest in deepening economic cooperation. During their stay in Poland, the Panamanian delegation also met with representatives of the National Chamber of Commerce, among others. Deputy Minister Carols Guevara Mann spoke about preparations for the celebration of the 200th anniversary of the Panama Congress of 1926. To commemorate this event, in 2026 Panama will host, among others, the Summit of the Organization of American States. The celebrations will also be a good opportunity to prepare joint cultural and historical projects, including those concerning the struggle for independence of Polish heroes in the region.

Photo: Konrad Laskowski/Ministry of Foreign Affairs

Photos (3)

MILES AXIS

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and/or sentence structure not be perfect.

MIL Translation OSI

January 24, 2025

MIL-OSI: Siili Solutions Plc, Business review, 1 January–30 September 2024

Source: GlobeNewswire (MIL-OSI)

Siili successfully launched the implementation of its new strategy in challenging market conditions

Siili Solutions Plc Stock Exchange Release 22 October 2024 at 9:45 am EEST

Key figures

EUR million	Q3/2024	Q3/2023	Q1-Q3/2024	Q1-Q3/2023
Revenue	24.1	27.0	83.3	92.3
Revenue growth. EUR million	-2.9	0.1	-9.0	6.5
Revenue growth. %	-10.8%	0.5%	-9.8%	7.6%
Organic revenue growth. EUR million	-2.9	-1.2	-9.0	2.3
Organic revenue growth. %	-10.8%	-4.1%	-9.8%	2.6%
Adjusted EBITA	0.7	1.3	4.0	6.3
Adjusted EBITA. % of revenue	2.9%	4.7%	4.8%	6.8%
EBITA	0.7	1.3	3.4	6.3
EBITA. % of revenue	2.9%	4.7%	4.1%	6.8%
Average number of employees during the period	956	1,057	976	1,049
Number of employees at the end of the period	945	1,053	945	1,053
Number of full-time employees (FTE) at the end of the period	909	1,023	909	1,023
Number of full-time subcontractors (FTE) at the end of the period	148	172	148	172

Key events in July-September:

On 13 August 2024, Siili published its new strategy placing AI and data at its core.
On 17 September 2024 Siili published a profit warning and lowered its financial guidance for 2024 revenue and adjusted EBITA.
Activity in sales created good ground for strategy implementation.

Outlook for 2024:

The updated financial guidance of revenue for 2024 is expected to be EUR 106–116 million and adjusted EBITA EUR 4.5–6.5 million.

The previous guidance for the current year’s revenue was EUR 120-140 million and adjusted EBITA EUR 7.5-10.5 million.

CEO Tomi Pienimäki:

In July–September, Siili continued to lay a solid foundation for the implementation of its new strategy in spite of challenging market conditions.

Revenue for the third quarter declined 11% year-on-year, to stand at approximately EUR 24 million. Adjusted EBITA for the quarter was EUR 0.7 million and about 3% of revenue.

The overall state of the IT service market has remained challenging, and recovery of the markets is taking longer than expected. Decision-making by customers on starting new projects continues to be slow, despite increased activity among customers. Against this backdrop, in September, we updated our guidance on revenue and adjusted EBITA for 2024.

As an example of positive developments in sales, I would like to highlight a significant new customer in the German automotive industry, starting out with a contract of approximately EUR 8 million for the next five years. Siili was also selected by several industry-leading AI users as a partner in data and AI projects. Growth in this area is one of our strategic priorities. For the time being, AI projects tend to be small, but they represent important openings in building long-term partnerships. We have continued to strengthen the data and AI competencies of the Siili team, both by training the personnel and by new recruitments.

In August, we announced a new strategy, placing artificial intelligence and data at its core. In October, we published a Handbook on AI-powered software development. In the book, our experts describe, in concrete terms, new ways of working that are already changing the way how the Siili team operates and that will strengthen our position as a leader in the utilisation of artificial intelligence in software development.

In October, Siili appointed Maria Niiniharju as VP Private Business and member of management team. Niiniharju brings us strong experience in business development as well as valuable data and AI expertise, which is perfect fit to accelerate Siili’s strategy execution.

Siili achieved 10th place in the Young Professional Attraction Index survey by Academic Work. Our goal is to be a community of top talent, and in line with our strategy, we will continue to endorse a strong corporate culture and continuous learning opportunities for the personnel.

Siili will arrange a Capital Markets Day on 26 November 2024. In the event, we will describe our new strategy, our AI and data expertise as well as our financial standing.

Despite the challenges of the operating environment, we believe in the normalisation of the markets, although the turnaround has been delayed. I want to extend my thanks to the entire Siili team and our customers for the past third quarter of the year. We are in a good position to continue the roll-out of our renewed strategy towards the end of the year.

—

This is not an interim report under IAS 34. The company complies with the half-yearly reporting requirements of the Securities Markets Act and publishes business reviews for the first three and nine months of the year, which present key information on the company’s financial performance. The financial information presented in this business review is unaudited.

Further information:

CEO Tomi Pienimäki

Tel: +358 40 834 1399, email: tomi.pienimaki(at)siili.com

CFO Aleksi Kankainen

Tel: +358 40 534 2709, email: aleksi.kankainen(at)siili.com

Distribution:

Nasdaq Helsinki Ltd
Main media
http://www.siili.com/en

Siili Solutions in brief:

Siili Solutions Plc is a forerunner in AI-powered digital development. Siili is the go-to partner for clients seeking growth, efficiency and competitive advantage through digital transformation. Our main markets are Finland, the Netherlands, the United Kingdom, and Germany. Siili Solutions Plc’s shares are listed on the Nasdaq Helsinki Stock Exchange. Siili has grown profitably since its founding in 2005. http://www.siili.com/en

Attachment

Siili Solutions Plc Business review 1 January-30 September 2024

The MIL Network –

January 24, 2025

MIL-OSI Australia: Unexplained death in Adelaide parklands

Source: South Australia Police

Police are investigating the unexplained death of a 53-year-old Aboriginal woman who died in the southwestern parklands in the early hours of Monday 20 January.

The woman’s name and full image have not been released at the request of her family.

It is known the woman had been sleeping in parklands and frequenting the western part of the Adelaide Central Business District in the days leading up to her death.

A map below shows the areas the woman is believed to have been frequenting.

Police are seeking assistance from the public in an effort to identify the woman’s movements in the days and hours before her death.

If anyone recognises the woman, knows of her, has recently spoken to her or has any other information that would assist police please contact Crime Stoppers on 1800 333 000, or online at http://www.crimestopperssa.com.au

Callers to Crime Stoppers can choose to remain anonymous.

Police also encourage anyone who may have dashcam or CCTV footage captured in the western part of the CBD in the days before the woman’s death to review it and advise police if they believe they may have images of her.

MIL OSI News –

January 24, 2025

MIL-Evening Report: How we treat catchment water to make it safe to drink

Source: The Conversation (Au and NZ) – By Mark Patrick Taylor, Chief Environmental Scientist, EPA Victoria; Honorary Professor, School of Natural Sciences, Macquarie University

Andriana Syvanych/Shutterstock

Most of us are fortunate that, when we turn on the tap, clean, safe and high-quality water comes out.

But a senate inquiry into the presence of PFAS or “forever chemicals” is putting the safety of our drinking water back in the spotlight.

Lidia Thorpe, the independent senator leading the inquiry, says Elders in the Aboriginal community of Wreck Bay in New South Wales are “buying bottled water out of their aged care packages” due to concerns about the health impacts of PFAS in their drinking water.

So, how is water deemed safe to drink in Australia? And why does water quality differ in some areas?

Here’s what happens between a water catchment and your tap.

Human intervention in the water cycle

There is no “new” water on Earth. The water we drink can be up to 4.5 billion years old and is continuously recycled through the hydrological cycle. This transfers water from the ground to the atmosphere through evaporation and back again (for example, through rain).

Humans interfere with this natural cycle by trapping and redirecting water from various sources to use. A lot happens before it reaches your home.

The quality of the water when you turn on the tap depends on a range of factors, including the local geology, what kind of activities happen in catchment areas, and the different treatments used to process it.

Maroondah dam in Healesville, Victoria.
doublelee/Shutterstock

How do we decide what’s safe?

The Australian Drinking Water Guidelines define what is considered safe, good-quality drinking water.

The guidelines set acceptable water quality values for more than 250 physical, chemical and bacterial contaminants. They take into account any potential health impact of drinking the contaminant over a lifetime as well as aesthetics – the taste and colour of the water.

The guidelines are not mandatory but provide the basis for determining if the quality of water to be supplied to consumers in all parts of Australia is safe to drink. The guidelines undergo rolling revision to ensure they represent the latest scientific evidence.

From water catchment to tap

Australians’ drinking water mainly comes from natural catchments. Sources include surface water, groundwater and seawater (via desalination).

Public access to these areas is typically limited to preserve optimal water quality.

Filtration and purification of water occurs naturally in catchments as it passes through soil, sediments, rocks and vegetation.

But catchment water is subject to further treatment via standard processes that typically focus on:

removing particulates (for example, soil and sediment)
filtration (to remove particles and their contaminants)
disinfection (for example, using chlorine and chloramine to kill bacteria and viruses)
adding fluoride to prevent tooth decay
adjusting pH to balance the chemistry of the water and to aid filtration.

This water is delivered to our taps via a reticulated system – a network of underground reservoirs, pipes, pumps and fittings.

In areas where there is no reticulated system, drinking water can also be sourced from rainwater tanks. This means the quality of drinking water can vary.

Sources of contamination can come from roof catchments feeding rainwater tanks as well from the tap due to lead in plumbing fittings and materials.

So, does all water meet these standards?

Some rural and remote areas, especially First Nations communities, rely on poor-quality surface water and groundwater
for their drinking water.

Rural and regional water can exceed recommended guidelines for salt, microbial contaminants and trace elements, such as lead, manganese and arsenic.

The federal government and other agencies are trying to address this.

There are many impacts of poor regional water quality. These include its implication in elevated rates of tooth decay in First Nations people. This occurs when access to chilled, sugary drinks is cheaper and easier than access to good quality water.

What about PFAS?

There is also renewed concern about the presence of PFAS or “forever” chemicals in drinking water.

Recent research examining the toxicity of PFAS chemicals along with their presence in some drinking water catchments in Australia and overseas has prompted a recent assessment of water source contamination.

A review by the National Health and Medical Research Council (NHMRC) proposed lowering the limits for four PFAS chemicals in drinking water: PFOA, PFOS, PFHxS and PFBS.

The review used publicly available data and found most drinking water supplies are currently below the proposed new guideline values for PFAS.

However, “hotspots” of PFAS remain where drinking water catchments or other sources (for example, groundwater) have been impacted by activities where PFAS has been used in industrial applications. And some communities have voiced concerns about an association between elevated PFAS levels in their communities and cancer clusters.

While some PFAS has been identified as carcinogenic, it’s not certain that PFAS causes cancer. The link is still being debated.

Importantly, assessment of exposure levels from all sources in the population shows PFAS levels are falling meaning any exposure risk has also reduced over time.

How about removing PFAS from water?

Most sources of drinking water are not associated with industrial contaminants like PFAS. So water sources are generally not subject to expensive treatment processes, like reverse osmosis, that can remove most waterborne pollutants, including PFAS. These treatments are energy-intensive and expensive and based on recent water quality assessments by the NHMRC will not be needed.

While contaminants are everywhere, it is the dose that makes the poison. Ultra-low concentrations of chemicals including PFAS, while not desirable, may not be harmful and total removal is not warranted.

Mark Patrick Taylor is a full-time employee of EPA Victoria, appointed to the statutory role of Chief Environmental Scientist. He is also an Honorary Professor at Macquarie University. EPA Victoria has previously received funding from the Department of Energy, Environment and Climate Action and Victorian water authorities to understand the presence of contaminants waste water. He has previously received funding from the Australian Government, ARC and other government agencies for environmental pollution research.

Antti Mikkonen is a full-time employee of EPA Victoria, in the role of Principal Health Risk Advisor for chemicals. Antti has previously received funding from the Australian Government Department of Education for research to understand PFAS bioaccumulation in livestock and models for risk management.

Minna Saaristo is a full-time employee of EPA Victoria, appointed to the role of Principal Scientist – Ecological Risk and Emerging contaminants. She is affiliate of the School of Biological Sciences at Monash University. EPA Victoria has previously received funding from the Department of Energy, Environment and Climate Action and Victorian water authorities to understand the presence of emerging contaminants in recycled water. She has previously received funding from the Australian Government, ARC and other government agencies for environmental pollution research.

– ref. How we treat catchment water to make it safe to drink – https://theconversation.com/how-we-treat-catchment-water-to-make-it-safe-to-drink-242206

MIL OSI Analysis – EveningReport.nz –

January 24, 2025

MIL-OSI Asia-Pac: New District Officer for Kowloon City assumes office (with photo)

Source: Hong Kong Government special administrative region

New District Officer for Kowloon City assumes office (with photo)
New District Officer for Kowloon City assumes office (with photo)
*****************************************************************

Mr Ivanhoe Chang will assume the post of District Officer (Kowloon City) tomorrow (January 25), succeeding Miss Alice Choi. Since joining the Administrative Service in 1995, Mr Chang has served in various bureaux and departments, including the Intellectual Property Department, the Information Services Department, the Constitutional and Mainland Affairs Bureau, the Financial Services and the Treasury Bureau and the Commerce and Economic Development Bureau. He was the Commissioner for Heritage at the Development Bureau before taking up the new post of District Officer (Kowloon City).

Ends/Friday, January 24, 2025Issued at HKT 15:00

NNNN

MIL OSI Asia Pacific News –

January 24, 2025

MIL-OSI USA: FEMA is Still Here for New Mexicans even as Ruidoso DRC Permanently Closes Today

Source: US Federal Emergency Management Agency

Headline: FEMA is Still Here for New Mexicans even as Ruidoso DRC Permanently Closes Today

FEMA is Still Here for New Mexicans even as Ruidoso DRC Permanently Closes Today

The State of New Mexico and FEMA will permanently cease operation of the Disaster Recovery Center (DRC) at the Horton Complex in Ruidoso today. But FEMA is not leaving New Mexico, as the agency continues working with the New Mexico Department of Homeland Security and Emergency Management (DHSEM) to help residents and communities in their recovery from the South Fork and Salt Fires and/or flooding.

The Horton Complex DRC at 237 Service Road in Ruidoso will close at 4 p.m., Saturday, Oct. 19.

Today is also the last day for homeowners and renters impacted by the fires or flooding (from June 17 to Aug. 20, 2024) to apply to FEMA for federal disaster assistance.

The deadline to apply for a long-term, low-interest disaster loan from the U.S. Small Business Administration (SBA) is also today.

After the DRC is closed, you can still contact FEMA by:

Go online to disasterassistance.gov/
Download the FEMA App for mobile devices at fema.gov/about/news-multimedia/mobile-products
Call the FEMA Helpline at 800-621-3362between 5 a.m. and 9 p.m., MT. Help is available in most languages.

For an American Sign Language video on how to apply for assistance visit, youtube.com/watch?v= WZGpWI2RCNw.

FEMA encourages you to keep in touch with the agency:

It is important to provide FEMA with your final insurance settlement information as assistance may be available for some expenses not covered by insurance.
If you are receiving temporary rental assistance from FEMA, you will need to update your permanent housing plan and may need to document your need for continued rental assistance. FEMA expects all families who receive temporary rental assistance to return to their damaged home when it is repaired or to locate and occupy affordable housing without FEMA rental assistance when you can do so.

In addition, you can call the FEMA Helpline at 800-621-3362 to:

Check on the status of your application and ask questions about the process.
Appeal a decision or determination by FEMA. 
Update your contact information.
Provide updated documentation.
Report additional damage discovered since your home inspection.

For information about FEMA’s Individual Assistance program, visit  www.fema.gov/assistance/individual.

angela.ambroise
Sat, 10/19/2024 – 12:33

MIL OSI USA News –

January 24, 2025

MIL-OSI USA: Disaster Recovery Center Opens in Union County

Source: US Federal Emergency Management Agency

Headline: Disaster Recovery Center Opens in Union County

Disaster Recovery Center Opens in Union County

A Disaster Recovery Center will be open in Union County to provide in-person assistance to South Carolinians affected by Hurricane Helene.

Union County
Union County Library
300 E. South St.
Union, SC 29379
Open Oct. 20-22, 8 a.m.-7 p.m.

This location joins the centers previously opened in Anderson, Cherokee, Greenville and Pickens 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.

Cherokee County
East Gaffney Baptist Church
2308 Cherokee Ave.
Gaffney, SC 29340
Open Oct. 17-20, 8 a.m.–7 p.m.

Greenville County
Freetown Community Center
200 Alice Ave.
Greenville, SC 29611
Open daily, 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.

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
Sat, 10/19/2024 – 16:27

MIL OSI USA News –

January 24, 2025

MIL-OSI USA: Senator Collins Speaks at 11th Annual March Against Domestic Violence

US Senate News:

Source: United States Senator for Maine Susan Collins
Published: October 19, 2024

Click HERE, HERE, HERE, and HERE for individual photos
Orono, ME – U.S. Senator Susan Collins spoke at the 11th annual March Against Domestic Violence, which began at the steps of Fogler Library at the University of Maine and continued on to the University Field House. The theme for this year’s March, which comes during National Domestic Violence Awareness Month, was “ending domestic violence in our communities.”
“The annual March Against Domestic Violence serves as an important reminder of the work we need to do to protect vulnerable individuals, as domestic violence continues to affect too many families in our state,” said Senator Collins. “I will continue to support and author legislation to strengthen protections for survivors, and I thank everyone involved in organizing this event for their dedication to this critical issue.”
The march is hosted by the Maine Business School (MBS) and organized by MBS Professor Nory Jones. In addition to Senator Collins, speakers at the event included UMaine Dean Robert Dana, Adjutant General of the Maine National Guard Diane Dunn, Executive Director at Partners for Peace Amanda Cost, Deputy UMaine Title IX Coordinator Heather Hogan, and Director of Development and Engagement at Partners for Peace Casey Faulkingham, who read the names of the 15 people who died in Maine as a result of domestic violence this year.
Senator Collins was a co-sponsor of the Violence Against Women Act (VAWA) Reauthorization Act of 2022, which expanded protections and services for domestic violence survivors and their children. She was also a co-author of the Bipartisan Safer Communities Act, which helps ensure that abusers do not have access to firearms.

MIL OSI USA News –

January 24, 2025

MIL-OSI USA: Disaster Recovery Center Opens in Broadview

Source: US Federal Emergency Management Agency

Headline: Disaster Recovery Center Opens in Broadview

Disaster Recovery Center Opens in Broadview

SPRINGFIELD – A FEMA/State Disaster Recovery Center will open on Sunday, October 20 to help residents kickstart their recovery after the July 13 – 16, 2024, severe storms, tornadoes, straight-line winds and flooding.

Specialists from FEMA, the state of Illinois and the U.S. Small Business Administration will be at the centers to help survivors apply for federal disaster assistance, upload documents, get their questions answered in person, access other types of help that may be available and learn ways to make their property more disaster resistant.

The center will be open at the following location, days and hours:

Beverly Center
3031 South 25th Ave.
Broadview, IL 60155
Hours: Mon. – Sun. 8:00 a.m. – 7:00 p.m.

Additional recovery centers will be opening in other impacted counties soon. To find the center nearest you, visit FEMA.gov/DRC. Survivors may visit any center for assistance.

Assistance in languages other than English, including American sign language, and translated materials are available at these centers. Disaster Recovery Center locations are chosen for their accessibility, with the goal of reaching as many people as possible. Accessible parking spaces are available at all centers.

Survivors don’t need to visit a Disaster Recovery Center to apply for FEMA assistance. To apply without visiting a center, go online to DisasterAssistance.gov, download the FEMA mobile app or call the FEMA Helpline at 800-621-3362. If you use a relay service such as video relay service, captioned telephone service or others, give FEMA your number for that service when you apply. The deadline to apply for FEMA assistance is November 19.

For even more information about the disaster recovery operation in Illinois, visit www.fema.gov/disaster/4819.

kimberly.keblish
Sat, 10/19/2024 – 19:11

MIL OSI USA News –

January 24, 2025

MIL-OSI USA: Major Disaster Declaration Granted for Southeastern NC Counties Following Impacts of Potential Tropical Cyclone Eight

Source: US State of North Carolina

Headline: Major Disaster Declaration Granted for Southeastern NC Counties Following Impacts of Potential Tropical Cyclone Eight

Major Disaster Declaration Granted for Southeastern NC Counties Following Impacts of Potential Tropical Cyclone Eight
mseets
Sat, 10/19/2024 – 17:07

Today, Governor Roy Cooper’s requests for a federal Major Disaster Declaration as a result of Potential Tropical Cyclone Eight were granted.

This Major Disaster Declaration means Public Assistance funding for emergency work and the repair or replacement of damaged facilities in Brunswick, Carteret, New Hanover and Onslow counties will be available from FEMA.

In addition, the Small Business Administration granted Governor Cooper’s request for an SBA disaster declaration for Brunswick, Columbus, New Hanover and Pender counties meaning low-interest loans for business owners, homeowners and renters. The Governor issued a State Type 1 Disaster Declaration for Individual Assistance for Brunswick, Columbus, New Hanover and Pender counties on Oct. 16.

“This storm brought historic rainfall and severe flooding to several areas of our state causing significant damage,” said Governor Cooper. “These disaster declarations will help bring needed relief for folks impacted by the storm, including small business owners.”

Governor Cooper sent letters to President Joe Biden and United States SBA Director Kem Fleming last week. Both requests were granted and additional federal resources will be available in affected areas. A FEMA major disaster declaration can provide a wide range of federal assistance programs for public infrastructure, including funds for both emergency and permanent work. The Small Business Administration offers disaster loans to businesses, homeowners, renters and private nonprofit organizations that can cover physical damage repairs, expenses for small businesses, funding to prevent future damage and operating expenses for companies with employees on active duty leave.

Read the declaration summary here.

###

Oct 19, 2024

MIL OSI USA News –

January 24, 2025

MIL-OSI Canada: Statement by the Prime Minister on Small Business Week

Source: Government of Canada – Prime Minister

The Prime Minister, Justin Trudeau, today issued the following statement on Small Business Week, which runs from October 20 to 26, 2024:

“There are more than a million small and medium-sized businesses across Canada. Mom-and-pop shops. Start-ups. Brick-and-mortar stores that have served their communities generation after generation.

“Small businesses create jobs, grow our economy, and make Canada stronger. We’re making sure they have the supports they need to succeed.

“We enhanced the Canada Small Business Financing Program to help them scale-up. We’re delivering over $2.5 billion to an estimated 600,000 Canadian businesses through the new Canada Carbon Rebate for Small Businesses. As of yesterday, some credit card fees have been reduced by up to 27 per cent – saving small businesses $1 billion over the next five years. With initiatives like the Women Entrepreneurship Strategy, the Black Entrepreneurship Program, the Indigenous Growth Fund, and the 2SLGBTQI+ Entrepreneurship Program, we’re growing an inclusive and innovative small business economy. In short, we’re reducing fees for small businesses, putting more money in their pockets, and making sure more entrepreneurs can start their business sooner. And there’s a lot more work to be done.

“From local cafés to independent bookstores, small businesses represent the limitless potential of Canada. They might be called small businesses, but they’re anything but small. To the owners, entrepreneurs, and workers behind them: Thank you.

“This week, we’re celebrating you and your hard work.”

MIL OSI Canada News –

January 24, 2025

MIL-OSI United Kingdom: Building economic opportunities in Asia

Source: Scottish Government

Extending international business links.

Scotland’s first Trade Envoy to Japan has been appointed to secure international investment.

Stephen Baker will identify new opportunities in Japan’s thriving energy transition, pharmaceuticals, med-tech and food sectors.

Making this announcement ahead of a trade mission to Singapore and Malaysia, Business Minister Richard Lochhead said:

“Increasing trade and attracting inward investment are vital components of a thriving, growing economy and the Scottish Government’s clear message is that Scotland is open for business.

“Scottish businesses already have a strong track record when it comes to exports to the Asian market and attracting inward investment, given Scotland’s position as the UK’s most attractive place for inward investment outside London.

“This appointment will help Scotland to increase business opportunities with similar Japanese companies and organisations, like Sumitomo’s £350 million investment in a manufacturing plant in Nigg.”

The Scottish Government’s Trade and Investment Envoy for Japan Stephen Baker said:

“Japan and the UK share a strong and vibrant partnership, with Scotland taking a leading role in the energy transition. Given Japan’s substantial economy, there are significant opportunities for trade and investment. Now is the perfect time to include Japan in your business strategy and I look forward to maximising the benefits of this global partnership for Scotland.”

Background

The unpaid Japan Envoy role will last for an initial two-year term.

Mr Baker spent 21 years with Sony, before joining Scottish Development International in 2006, initially covering both trade and investment as Japan Country Head, and later as Regional Director for Information and communications technology, Creative Industry, Financial Services, and Global Business Services. Stephen also served as the Asia Pacific Regional Director for Inward Investment into Scotland.

Mr Lochhead’s trip to Singapore and Kuala Lumpur will take place between 21-24 October. The visit will include meetings with existing and potential investors. Full details on Ministerial travel and engagements are published pro-actively online.

Sumitomo subsea cabling plant was secured thanks to a £24.5 million investment from the Scottish Government, Highlands and Islands Enterprise and Scottish Enterprise.

Scottish international export statistics

MIL OSI United Kingdom –

January 24, 2025

MIL-OSI Australia: Design to delivery: a guide to outsourcing

Source: Allens Insights

Business process outsourcings are high-risk, high-reward projects 5 min read

The outsourcings of yesterday that prioritised cost-cutting above all else have been replaced by a new wave of business process outsourcings (BPOs) focused on procuring technological improvements and expertise, achieving scale, obtaining a competitive edge (and yes, cost savings too).

The complexity of these projects is only further intensified by the current backdrop of rapid technological advancement, breakneck regulatory change and increasing supply chain risks. Successful outsourcings require careful consideration through all stages of the BPO lifecycle—from initial planning through to the exit phase.

Whether your organisation is currently planning a BPO or considering it as a future option, this guide outlines everything you need to know through the various stages of your next BPO, including:

How to design your procurement strategy
Whiteboarding questions to scope your outsourcing
Service provider incentives matrix
Key considerations for managing data
Managing risks and planning for change
Board approval checklist

MIL OSI News –

January 24, 2025

MIL-OSI Reportage: BNZ launches Tech Business Hub to empower early-stage technology businesses

Source: BNZ statements

New Zealand’s tech sector is set to get a boost thanks to the launch of the country’s first dedicated banking hub for early-stage technology businesses.

The Waikato-based BNZ Tech Business Hub is designed to address the unique needs of early-stage tech companies.

It offers BNZ customers access to bankers with specific training and expertise who are equipped to offer financial services to address the unique challenges and opportunities faced in the technology industries.

Tim Wixon, Head of Technology Industries at BNZ, says, “BNZ’s Tech Business Hub is not just a new offering – it represents a philosophical shift in how we approach banking for this sector. Technology businesses have distinct needs which have not historically been met by traditional banking models. Our hub will help fill this gap by offering practical guidance, advice, and tailored services to help accelerate sector growth.”

According to the Technology Investment Network, the top 200 New Zealand tech companies generated the second largest source of offshore revenue after dairy. The industry is also growing faster than any other in New Zealand and offers salaries around 30% higher than the New Zealand average.

“Technology Industries continue to be an increasingly important part of the New Zealand economy. Every year, we see more of our country’s tech companies succeed on the world stage and BNZ remains committed to assist wherever possible”, says Mr Wixon.

BNZ is ambitious in its support for technology companies in New Zealand, launching a range of innovative solutions in recent years to assist the sector, including Contracted Receivables Financing, Revenue Based Financing for SaaS businesses, and Project Scale Up, which provide high-potential and high-growth technology businesses with access to non-dilutive capital.

The new Tech Business Hub complements these offerings, underscoring BNZ’s commitment to fostering a vibrant homegrown tech ecosystem.

Tech Business Hub Team Manager – Figo Liu – says, “Tech businesses require banking partners who speak their language and understand their journey. Our goal is to nurture the tech and startup ecosystem by making it easier to start a business and grow.”

With the Tech Business Hub now up and running, BNZ is turning its attention to further ways that it can support tech businesses at all stages of their lifecycle.

“We believe that New Zealand’s tech sector has enormous potential, and we want to do everything we can to help these businesses succeed,” says Mr Wixon. “The BNZ Tech Business Hub is the next step in our commitment to this important part of our economy, and we look forward to working closely with tech entrepreneurs and innovators to help them achieve their goals.”

The post BNZ launches Tech Business Hub to empower early-stage technology businesses appeared first on BNZ Debrief.

MIL OSI Analysis –

January 24, 2025

MIL-Evening Report: Expanding coal mines – and reaching net zero? Tanya Plibersek seems to believe both are possible

Source: The Conversation (Au and NZ) – By John Quiggin, Professor, School of Economics, The University of Queensland

Federal Environment Minister Tanya Plibersek’s recent decision to approve expansion plans for three New South Wales coal mines disappointed many people concerned with stabilising the global climate.

Two of these mines, Narrabri and Mount Pleasant in New South Wales, featured in the high-profile but ultimately unsuccessful Living Wonders court case, intended to force the federal government to take account of climate damage done by coal mine approvals. A lawyer involved in the case said Plibersek’s decision showed a refusal to “recognise their climate harms”.

Why did Plibersek sign off on this? She has argued the mines will abide by domestic industrial emissions rules. As her spokesperson told the ABC:

The emissions from these projects will be considered by the minister for climate change and energy under the government’s strong climate laws.

But these laws apply only to emissions produced in Australia, which in this case will be from extracting and transporting coal and the relatively small amount of coal burned here. Most of the coal will be exported and burned overseas. Australian laws do not count those much larger emissions.

The government is effectively washing its hands of the far larger emissions created when the coal is burned overseas. Since taking office, the Albanese government has approved seven applications to open or expand coal mines. Just this week, NSW Treasurer Daniel Mookhey said his state would keep exporting coal into the 2040s.

This reasoning doesn’t stack up. If we stopped expanding coal mines, coal would get more expensive – and we would accelerate the global shift to clean energy.

How can more coal be compatible with net zero?

Under the 2015 Paris Agreement on climate action, nations must publicly commit to domestic emissions reductions goals and are expected to steadily ramp up ambition.

But these emissions cuts are domestic only – we don’t measure the emissions we enable by exporting coal and gas.

The Albanese government has increased domestic ambition by committing to a 43% reduction on 2005 figures by 2030. This seems to be a substantial advance on the 26-28% commitment made by the previous government. In reality, internal tensions in the Morrison Coalition government handed Labor an unintentional gift.

In 2021, estimates suggested Australia was already on track for a 35% reduction. But internal opposition among Coalition backbenchers stopped Morrison announcing this as a target. As a result, Labor’s change looks about twice as impressive as it should.

Still, progress is happening. Domestically, Australia is now burning less and less coal.

But in terms of exports, the government’s position – clear in Plibersek’s decision as well as the government’s plan to keep gas flowing for decades – is as long as there is a demand for coal and gas from other countries, Australia will be ready and willing to meet it.

Most of the coal unlocked by Plibersek’s decision will go overseas, given NSW exports 85% of its coal to partners such as Japan, China, South Korea and Taiwan.

How does the government defend this?

Expanding coal mines while maintaining a public commitment to net zero is a consistent theme between this government and its predecessor, which also committed to net zero. It meets a minimal interpretation of our legal obligations under the Paris Agreement, but maintains the planet’s path towards dangerous warming.

In her statement of reasons given in 2023 as to why the Mount Pleasant mine expansion should be permitted, Plibersek and the Labor government offer several defences.

The first is she is simply acting in accordance with Australian law, as the project would comply with “applicable Commonwealth emissions reduction legislation”. This is a weak reed, to put it mildly. The Albanese government, with the support of Greens and independents, can change the law whenever it chooses.

In reality, the government has steadfastly resisted pressure to include a “climate trigger” in Australia’s environmental approval processes. Their resistance is relatively new – as recently as 2016, Labor policy included a climate trigger for land clearing.

Labor’s second defence has often been dubbed the “drug dealer’s defence”. That is, if Australia didn’t export coal, other producers would take our place. As Prime Minister Anthony Albanese has put it:

policies that would just result in a replacement of Australian resources with resources that are less clean from other countries would lead to an increase in global emissions, not a decrease.

As I’ve argued previously, this defence doesn’t work. Coal is subject to a rising cost curve – if we stopped exporting it, new or expanded production from other sources would cost more to extract and hence be priced higher. More expensive coal would, in turn, accelerate the global energy transition. We do have agency – we could choose not to unlock more coal.

Finally, Plibersek claims emissions from burning Mount Pleasant coal – estimated at over 500 million tonnes of carbon dioxide equivalent over the mine’s extended lifetime – would not be “substantial” relative to total global emissions. For context, Australia’s total emissions are now less than 500 million tonnes a year.

This “litterbug’s defence” suggest Australia’s emissions – whether produced domestically or exported – are not big enough to make a difference. This is not true – we are now the second largest exporter of emissions globally, after Russia. That is due largely to coal.

Are fossil fuel exports untouchable?

There’s a huge gap between global pledges to cut emissions and the reductions needed to actually achieve the Paris targets. Most countries we export coal and gas to are not yet on a path to achieve the reductions in emissions necessary to stabilise the global climate – though China’s emissions may, remarkably, be about to decline.

That’s why we need to press for decarbonisation at every stage of the energy system, from extraction of coal, oil and gas to the financing of new carbon-based projects as well as at the point where the fuel is burned and emissions produced generated.

The problem for Australia is we sell a lot of coal and gas – more than ever before. So even as solar and wind energy begins to displace coal and gas in domestic power generation, our coal and gas exports seem all but untouchable.

We should be saddened but not surprised at this pattern. The Albanese government seems guided by the principle of doing nothing to generate substantial opposition – and to count on the fact a Dutton Coalition government would do even less.

John Quiggin is a former member of the Climate Change Authority

– ref. Expanding coal mines – and reaching net zero? Tanya Plibersek seems to believe both are possible – https://theconversation.com/expanding-coal-mines-and-reaching-net-zero-tanya-plibersek-seems-to-believe-both-are-possible-241007

MIL OSI Analysis – EveningReport.nz –

January 24, 2025

MIL-OSI New Zealand: Insurance Sector – Commonwealth insurance peaks collaborate on global insurance protection gap

Source: Insurance Council of NZ

The peak bodies representing personal and business insurers in the United Kingdom, Canada, Australia and New Zealand have called on Commonwealth leaders at this week’s Commonwealth Heads of Government Meeting (CHOGM) in Samoa to discuss worsening extreme weather and its impact on national economic and community resilience across the Commonwealth.

The Association of British Insurers (ABI), the Insurance Bureau of Canada (IBC), the Insurance Council of Australia (ICA), and the Insurance Council of New Zealand (ICNZ), have jointly written to the Prime Ministers of their respective nations calling for the issue to be put on the agenda as part of the Commonwealth Business Forum on 23 and 24 October.

This followed a Global Insurance Protection Gap Forum held in Sydney, Australia on Friday 18 October involving the four leaders of the ABI, IBC, ICA, and ICNZ, along with insurers, Australian government representatives, and regulators.

The four associations collectively represent insurers writing approximately US$200B in gross annual premium, with their members playing an essential role in enabling individuals, communities and businesses to recover from the unexpected and reduce risk across the economies in which they operate.

Operating in Commonwealth nations, the four organisations and their members face similar regulatory, political, and financial environments, with their governments and regulators having similar tools at their disposal to implement solutions.

The Global Insurance Protection Gap forum agreed that:

– As extreme weather intensifies, populations expand and more homes are put in harm’s way, the insurance protection gap will widen.

– Flood risk is often concentrated in particular areas, but the widespread nature of flood risk is going to increase.

– Governments and insurers have a critical opportunity to collaborate across global markets to build a shared view of current and future hazard risk.

– We must stop locking further risk into our economies by building homes in the wrong places.

– Applying excessive taxes and levies to insurance premiums can directly affect the affordability of insurance coverage.

Comment attributable to Hannah Gurga, Director General, Association of British Insurers

Our changing climate represents a real and growing threat to our resilience as a nation and globally. The UK led the way with the creation of Flood Re, which has helped keep insurance accessible for hundreds of thousands of homes. We are now at a crossroads, with a new government in post and a review of the planning system underway. It’s vital that decisions are taken for the long-term and made for the benefit of all. That’s not just investing in flood defences but also changing where and how we build. Action is needed now, not in the future when the challenge will be ever greater.

Comment attributable to Celyeste Power, President and CEO, Insurance Bureau Canada

In the span of just five weeks this past summer, Canada saw five natural catastrophes: three major floods, a devastating wildfire, and a destructive hailstorm resulting in $7 billion of insured losses.

This isn’t an anomaly. It isn’t bad luck. It’s part of an escalating trend of severe weather events that is making Canada a riskier place to live, work and insure.

I know Canada is not facing these challenges alone and I join with my colleagues in Australia, New Zealand and Britain in our call for meaningful action to reduce the growing physical and financial risks our citizens are facing.

Comment attributable to Andrew Hall, CEO, Insurance Council of Australia

More frequent and intense disasters, coupled with ongoing development of areas at high risk of extreme weather and growing asset values, are widening the gap globally between those who can afford insurance in high-risk areas and those who can’t – often leaving society’s least wealthy unable to rebuild and recover when disaster strikes.

As the bodies representing personal and business insurance providers in the United Kingdom, Canada, Australia and New Zealand, we have a unique perspective on this issue.

Insurers remain steadfastly committed to the policies of derisking as the only sustainable way to reduce the pressure on premiums and close the protection gap: better planning so no more homes are built in harm’s way, stronger buildings that are better able to withstand extreme weather, greater investment in public infrastructure to better protect communities, and an ongoing program of home buybacks where no other mitigation is possible.

Comment attributable to Kris Faafoi, CEO, Insurance Council of New Zealand

Our nations share a common history and a future challenge with climate change. By working closely together our insurance representative bodies are committed to doing their bit to help reduce risk from natural hazards and protect our families and communities.

By reducing the protection gap we keep communities safe, reduce the costs to taxpayers and ratepayers and maintain insurance capacity and affordability.

Just last year New Zealand experienced just how devastating severe weather events can be on lives, livelihoods and communities. There is much to be gained by working together on these issues across the UK, Australia, Canada and New Zealand through policy work, relationships and our responses to natural disasters.

MIL OSI New Zealand News –

January 24, 2025

Category: Commerce

Striking the right balance

It’s time for carbon pricing

A carbon solutions levy

Regional considerations

The alternatives to carbon pricing are weak

Human intervention in the water cycle

How do we decide what’s safe?

From water catchment to tap

So, does all water meet these standards?

What about PFAS?

How about removing PFAS from water?

Business process outsourcings are high-risk, high-reward projects 5 min read

How can more coal be compatible with net zero?

How does the government defend this?

Are fossil fuel exports untouchable?

Source: Insurance Council of NZ