NewzIntel.com

    • Checkout Page
    • Contact Us
    • Default Redirect Page
    • Frontpage
    • Home-2
    • Home-3
    • Lost Password
    • Member Login
    • Member LogOut
    • Member TOS Page
    • My Account
    • NewzIntel Alert Control-Panel
    • NewzIntel Latest Reports
    • Post Views Counter
    • Privacy Policy
    • Public Individual Page
    • Register
    • Subscription Plan
    • Thank You Page

Category: Economy

  • MIL-OSI: QXO Comments on Beacon Roofing Supply’s Adoption of Shareholder-Unfriendly Poison Pill

    Source: GlobeNewswire (MIL-OSI)

    Reaffirms Commitment to Acquiring Beacon for $124.25 per Share in Cash

    All-Cash Offer Provides Significant and Immediate Value to Beacon Shareholders

    GREENWICH, Conn., Jan. 28, 2025 (GLOBE NEWSWIRE) — QXO, Inc. (NYSE: QXO) today commented on Beacon Roofing Supply, Inc.’s (Nasdaq: BECN) adoption of a shareholder rights plan, which takes immediate effect and is aimed at blocking QXO’s all-cash tender offer to acquire all outstanding shares of Beacon for $124.25 per share.

    “We launched our all-cash tender offer to ensure that Beacon’s shareholders can take advantage of our compelling offer and get paid quickly. We have committed financing, have no due diligence condition and anticipate a smooth regulatory approval process to close,” said Brad Jacobs, chairman and chief executive officer of QXO. “The only thing stopping shareholders from acting to get cash expeditiously is the decision by Beacon’s Board to adopt a poison pill. We are prepared to take all necessary steps to complete this transaction promptly and deliver significant and immediate value to Beacon shareholders.”

    QXO’s $124.25 per share offer represents a 37% premium to Beacon’s 90-day unaffected volume-weighted average price of $91.02 per share as of November 15, 2024, and a 26% premium to the $98.75 price before its proposal became public.

    QXO’s tender offer will be outstanding until 12:00 midnight, New York City time, at the end of February 24, 2025, and it is prepared to complete the acquisition shortly after the tender expires, in approximately one month. The transaction is not subject to any financing conditions or due diligence conditions, and QXO expects that the waiting periods under the Hart-Scott-Rodino Act and the Canadian Competition Act will have expired or been waived by the time the tender offer expires.

    Morgan Stanley & Co. LLC is acting as financial advisor to QXO, and Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal counsel.

    About QXO

    QXO provides technology solutions, primarily to clients in the manufacturing, distribution and service sectors. The company provides consulting and professional services, including specialized programming, training and technical support, and develops proprietary software. As a value-added reseller of business application software, QXO offers solutions for accounting, financial reporting, enterprise resource planning, warehouse management systems, customer relationship management, business intelligence and other applications. QXO plans to become a tech-forward leader in the $800 billion building products distribution industry. The company is targeting tens of billions of dollars of annual revenue in the next decade through accretive acquisitions and organic growth. Visit QXO.com for more information.

    Forward-Looking Statements

    The communication contains forward-looking statements. Statements that are not historical facts, including statements about beliefs, expectations, targets, goals, regulatory approval timing and nominating directors are forward-looking statements. These statements are based on plans, estimates, expectations and/or goals at the time the statements are made, and readers should not place undue reliance on them. In some cases, readers can identify forward-looking statements by the use of forward-looking terms such as “may,” “will,” “should,” “expect,” “opportunity,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “target,” “goal,” or “continue,” or the negative of these terms or other comparable terms. Forward-looking statements involve inherent risks and uncertainties and readers are cautioned that a number of important factors could cause actual results to differ materially from those contained in any such forward-looking statements. Such factors include but are not limited to: the ultimate outcome of any possible transaction between QXO and Beacon including the possibility that the parties will not agree to pursue a business combination transaction or that the terms of any definitive agreement will be materially different from those proposed; uncertainties as to whether Beacon will cooperate with QXO regarding the proposed transaction; the ultimate result should QXO’s commence a proxy contest for election of directors to Beacon’s board of directors; QXO’s ability to consummate the proposed transaction with Beacon; the conditions to the completion of the proposed transaction, including the receipt of any required shareholder approvals and any required regulatory approvals; QXO’s ability to finance the proposed transaction; QXO’s indebtedness, including the substantial indebtedness QXO expects to incur in connection with the proposed transaction with Beacon and the need to generate sufficient cash flows to service and repay such debt; that operating costs, customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers or suppliers) may be greater than expected following the proposed transaction or the public announcement of the proposed transaction; the retention of certain key employees may be difficult; and general economic conditions that are less favorable than expected. QXO cautions that forward-looking statements should not be relied on as predictions of future events, and these statements are not guarantees of performance or results. Forward-looking statements herein speak only as of the date each statement is made. QXO does not assume any obligation to update any of these statements in light of new information or future events, except to the extent required by applicable law.

    Important Additional Information and Where to Find It

    This communication is for informational purposes only and does not constitute a recommendation, an offer to purchase or a solicitation of an offer to sell Beacon securities. QXO and Queen MergerCo, Inc. (the “Purchaser”) filed a Tender Offer Statement on Schedule TO with the SEC on [DATE], 2025, and Beacon will file a Solicitation/Recommendation Statement on Schedule 14D-9 with respect to the tender offer with the SEC. Investors and security holders are urged to read the Tender Offer Statement (including the Offer to Purchase, the related Letter of Transmittal and certain other tender offer documents, as each may be amended or supplemented from time to time) and the Solicitation/Recommendation Statement, when available, carefully since they contain important information that investors and security holders should consider before making any decision regarding tendering their common stock, including the terms and conditions of the tender offer. The Tender Offer Statement, Offer to Purchase, Solicitation/Recommendation Statement and related materials are filed with the SEC, and investors and security holders may obtain a free copy of these materials and other documents filed by QXO and Beacon with the SEC at the website maintained by the SEC at www.sec.gov. In addition, the Tender Offer Statement and other documents that QXO and the Purchaser file with the SEC will be made available to all investors and security holders of Beacon free of charge from the information agent for the tender offer. The information agent for the tender offer is Innisfree M&A Incorporated, 501 Madison Avenue, 20th Floor, New York, NY 10022, Toll-free telephone: +1 (888) 750-5834.

    QXO and the other participants intend to file a preliminary proxy statement and accompanying WHITE universal proxy card with the SEC to be used to solicit proxies for, among other matters, the election of its slate of director nominees at the 2025 annual meeting of stockholders of Beacon. QXO strongly advises all stockholders of Beacon to read the preliminary proxy statement, any amendments or supplements to such proxy statement, and other proxy materials filed by QXO with the SEC as they become available because they will contain important information. Such proxy materials will be available at no charge on the SEC’s website at www.sec.gov and at QXO’s website at investors.qxo.com. In addition, the participants in this proxy solicitation will provide copies of the proxy statement, and other relevant documents, without charge, when available, upon request. Requests for copies should be directed to the participants’ proxy solicitor.

    Certain Information Concerning the Participants

    The participants in the proxy solicitation are anticipated to be QXO, Brad Jacobs, Ihsan Essaid, Matt Fassler, Mark Manduca and the individuals nominated by QXO (the “QXO Nominees”). QXO expects to determine and announce the QXO Nominees prior to the nomination deadline for the 2025 annual meeting of stockholders of Beacon.  As of the issuance of this communication, other than QXO, which beneficially owns 100 shares of Beacon common stock, none of the participants that have been identified beneficially own any shares of Beacon common stock.

    Media Contacts
    Joe Checkler
    joe.checkler@qxo.com
    203-609-9650

    Steve Lipin / Lauren Odell
    Gladstone Place Partners
    212-230-5930

    Investor Contacts ‍

    Mark Manduca
    mark.manduca@qxo.com
    203-321-3889

    Scott Winter / Jonathan Salzberger
    Innisfree M&A Incorporated
    212-750-5833

    The MIL Network –

    January 29, 2025
  • MIL-Evening Report: ‘Turn it into a retirement village’: Inside the war of words over Eden Park

    After lengthy, torrid and emotional debate a critical decision for the future of Auckland Tāmaki Makaurau is being made in March. One party will celebrate; the other will slink back to the drawing board. But will it really settle the great Auckland stadium debate?

    SPECIAL REPORT: By Chris Schulz

    It resembles a building from Blade Runner. It looks like somewhere the Avengers might assemble. It is, believes Paul Nisbet, the future.

    “It’s innovative, it’s groundbreaking, it’s something different,” says the driving force behind Te Tōangaroa, a new stadium mooted for downtown Auckland.

    He has spent 13 years dreaming up this moon shot, and it shows. “We have an opportunity here to deliver something special for the country.”

    Located behind Spark Arena, Te Tōangaroa — also called “Quay Park” — is Nisbet’s big gamble, the stadium he believes Tāmaki Makaurau needs to sustain the city’s live sport and entertainment demands for the next 100 years.

    His is a concept as grand as it gets, a U-shaped dream with winged rooftops that will sweep around fans sitting in the stands, each getting unimpeded views out over the Waitematā Harbour and Rangitoto Island.

    Located behind Spark Arena, Te Tōangaroa is also called “Quay Park”. Image: Te Tōangaroa

    Nisbet calls his vision a “gateway for the world,” a structure so grand he believes it would attract the biggest sports teams, stars and sponsors to Aotearoa while offering visitors a must-see tourist destination. Nestled alongside residential areas, commercial zones and an All Blacks-themed hotel, designs show a retractable roof protecting 55,000 punters from the elements and a sky turret towering over neighbouring buildings.

    He’s gone all in on this. Nisbet’s quit his job, assembled a consortium of experts — called Cenfield MXD — and attracted financial backers to turn his vision into a reality. It is, Nisbet believes, the culmination of his 30-year career working in major stadiums, including 11 years as director of Auckland Stadiums.

    “I’ve had the chance to travel extensively,” he says. “I’ve been to over 50 stadiums around the world.”

    Tāmaki Makaurau, he says, needs Te Tōangaroa — urgently. If approved, it will be built over an ageing commercial space and an unused railway yard sitting behind Spark Arena, what Nisbet calls “a dirty old brownfields location that’s sapping the economic viability out of the city”.

    He calls it a “regeneration” project. “You couldn’t mistake you’re in Auckland, or New Zealand, when you see images of it,” he says.

    The All Blacks are on board, says Nisbet, and they want Te Tōangaroa built by 2029 in time for a Lions tour. (The All Blacks didn’t respond to a request for comment, but former players John Kirwan and Sean Fitzpatrick have backed the team moving to Te Tōangaroa.)

    Concert promoters are on board too, says Nisbet. He believes Te Tōangaroa would end the Taylor Swift debacle that’s seen her and many major acts skip us in favour of touring Australian stadiums.

    “It will be one of those special places that international acts just have to play,” he says.

    The problem? Nisbet’s made a gamble that may not pay off. In March, a decision is due to be made about the city’s stadium future. Building Te Tōangaroa, with an estimated construction time of six years and a budget of $1 billion, is just one option.

    The other, Eden Park, has 125 years of history, a long-standing All Blacks record and a huge number of supporters behind it — as well as a CEO willing to do anything to win.

    The stadium standing in Te Tōangaroa’s way
    Stand in Eden Park’s foyer for a few minutes and history will smack you in the face. It’s there in the photos framed on the wall from a 1937 All Blacks test match. It’s sitting in Anton Oliver’s rugby boots from 2001, presumably fumigated and placed inside a glass case.

    More recent history is on display too, with floor-to-ceiling photographs showing off concerts headlined by by Ed Sheeran and Six60, a pivot only possible since 2021.

    Soon, the man in charge of all of this arrives. “Very few people have seen this space,” says Nick Sautner, the Eden Park CEO who shakes my hand, pulls me down a hallway and invites me into a secret room in the bowels of Eden Park. With gleaming wood panels, leather couches and top-shelf liquor, Sautner’s proud of his hidden bar.

    “It’s invite-only . . . a VIP experience,” says Sautner, whose Australian accent remains easily identifiable despite seven years at the helm of Eden Park.

    The future of Eden Park if a refurb is granted. Image: YouTube

    This bar, he says, is just one of the many innovations Eden Park has undertaken in recent years. Built in 1900, the Mt Eden stadium remains the home of the All Blacks — but Eden Park is no longer considered a specialty sports venue.

    Up to 70 percent of the stadium’s revenue now comes from non-sporting activities, Sautner confirms. You can golf, abseil onto the rooftops and stay the night in dedicated glamping venues. It’s also become promoters’ choice for major concerts, with Coldplay and Luke Combs recently hosting multiple shows there. “We will consider any innovation you can imagine,” Sautner tells me. “We’re a blank canvas.”

    Throughout our interview, Sautner refers to Eden Park as the “national stadium”. He’s upbeat and on form, rattling off statistics and renovations from memory. His social media feeds — especially LinkedIn — are full of posts promoting the stadium’s achievements. He’ll pick up the phone to anyone who will talk to him.

    “Whatsapp is the best way of contacting me,” he says. Residents have his number and can call directly with complaints. After our interview, Sautner passes me his business card then follows it up with an email making sure I have everything I need. “My phone’s always on,” he assures me.

    He may not admit it, but Sautner’s doing all of this in an attempt to get ahead of what’s shaping up as the biggest crisis of Eden Park’s 125 years. If Te Tōangaroa is chosen in March, Eden Park — as well as Albany’s North Harbour Stadium and Onehunga’s Go Media Stadium – will all take a back seat.

    If Eden Park loses the All Blacks and their 31-year unbeaten record, then there’s no other word for it: the threat is existential.

    Called Eden Park 2.1, Sautner is promoting a three-stage renovation plan. Image: YouTube

    Ask Sautner if he’s losing sleep over his stadium’s future and he shakes his head. To him, Te Tōangaroa’s numbers don’t stack up. “If someone can make the business model work for an alternative stadium in Auckland, I’m all for activating the waterfront,” he says.

    Then he poses a series of questions: “How many events a year would a downtown stadium hold? Forty-five?” he asks. “So 320 other days a year, what’s going to be in that stadium?”

    He is, of course, biased. But Sautner believes upgrading Eden Park is the right move. Called Eden Park 2.1, Sautner is promoting a three-stage renovation plan that includes building a $100 million retractable rooftop. A new North Stand would lift Eden Park’s capacity to 70,000, and improved function facilities and a pedestrian bridge would turn the venue into “a fortress . . . capable of hosting every event”.

    He’s veering into corporate speak, but Sautner sees the vision clearly. With his annual concert consent recently raised from six to 12 shows, he already thinks he’s got it in the bag, “Eden Park has the land, it has the consent, it has the community, it has the infrastructure,” he says. “I’m very confident Eden Park is going to be here for another 100 years.”

    Instead of a drink, Sautner offers RNZ a personal stadium tour that takes us through the exact same doors that open when the All Blacks emerge onto the hallowed turf. There, blinking in the sunlight, Sautner sweeps his arms around the stadium and grins. “I get up every day and I think of my family,” he says. “Then I think, ‘How can I make Eden Park better?”

    The stadium debate: ‘It began when the dinosaurs died out’
    It is, says Shane Henderson, an argument for the ages. It never seems to quit. How long have Aucklanders been feuding about stadiums? “It began when the dinosaurs died out,” jokes Henderson.

    For the past year, he’s been chairing a working group that will make the decision on Auckland’s stadium future. That group whittled four options down to the current two, eliminating a sunken waterfront stadium, and another based in Silo Park.

    He’s doing this because Wayne Brown asked him to. “The mayor said, ‘We need to say to the public, ‘This is our preferred option for a stadium for the city.’” It’s taken over Henderson’s life. Every summer barbecue has turned into a forum for people to share their views.

    “People say, “Why don’t you do this?’” he says. Henderson won’t be drawn on which way he’s leaning ahead of March’s decision, but he’s well aware of the stakes. “We’re talking about the future of our city for generations to come,” he says. “It’s natural feelings are going to run high.”

    That’s true. As I researched this story, the main parties engaged in a back-and-forth discussion that became increasingly heated. Jim Doyle, from Te Tōangaroa’s Cenfield MXD team, described Eden Park’s situation as desperate.

    “Eden Park can’t fund itself . . . it’s got no money, it’s costing ratepayers,” he said. Doyle alleged the stadium “wouldn’t be fit for purpose”. “You’re going to have to spend probably close to $1 billion to upgrade it.” Asked what should happen to Eden Park should the decision go Te Tōangaroa’s way, Doyle shrugged his shoulders. “Turn it into a retirement village.”

    Eden Park’s Sautner immediately struck back. Yes, he admits Eden Park owes $40 million to Auckland Council, calling that debt a “legacy left over from the Rugby World Cup 2011”. But he denied most of the consortium’s claims.

    “Eden Park does not receive any funding or subsidies from Auckland ratepayers,” Sautner said in a written statement. He confirmed renovations had already begun. “Over the past three years, the Trust has invested more than $30 million to enhance infrastructure and upgrade facilities . . . creating flexible spaces to meet evolving market demands.”

    Sautner said Doyle’s statement was evidence of his team’s inexperience. “We are extremely disappointed that comments of this nature have been made,” he said. “They are factually incorrect and highlight Quay Park consortium’s lack of understanding of stadium economics.”

    Do we even need to do this?
    As the stadium debate turns into a showdown, major stars continue to skip Aotearoa in favour of huge Australian shows, with Katy Perry, Kylie Minogue and Oasis all giving us a miss this year. New Zealand music fans are reluctantly spending large sums on flights and accommodation if they want to see them. Until Metallica arrives in November, there are no stadium shows booked; just three of Eden Park’s 12 allotted concert slots are taken this year.

    Yet, Auckland City councillors will soon study feasibility reports being submitted by both stadium options.

    On March 24, Henderson, the working group chair, says councillors will come together to “thrash it out” and vote for their preferred option. There will only be one winner, and The New Zealand Herald reports either building Te Tōangaroa or Eden Park 2.1 is likely to cost more than $1 billion. Either we’re spending that on a brand new waterfront stadium, or we’re upgrading an old one.

    “Is that the best use of that money?” asks David Benge. The managing director for events company TEG Live doesn’t believe Tāmaki Makaurau needs another stadium because it’s barely using those it already has. He has questions.

    “I understand the excitement around a shiny new toy, but to what end?” he asks. “Can Auckland sustain a show at Go Media Stadium, a show at Western Springs, a show at Eden Park, and a show at this new stadium on the same night — or even in the same week?”

    Benge doesn’t believe Te Tōangaroa would entice more artists to play here either. “I’m yet to meet an artist who’s going to be swayed by how iconic a venue is,” he says. Bigger problems include the size of our population and the strength of our dollar.

    No matter the venue, “you’re still incurring the same expenses to produce the show,” he says. Instead, he suggests Pōneke as the next city needing a new venue. “If you could wave a magic wand and invest in a 10,000-12,000-capacity indoor arena in Wellington, that would be fantastic,” he says.

    Would a new stadium really lure big artists to NZ? Image: Te Tōangaroa

    Live Nation, the touring juggernaut that hosts most of the country’s stadium shows, didn’t respond to a request for comment. Other promoters canvassed by RNZ offered mixed views. Some wanted a new stadium, while others wanted a refurbished one. Every single one of them said that any new stadium needed to be built with concerts — not sport — in mind.

    “We’re fitting a square peg in a round hole,” one said about the production costs involved in trucking temporary stages into Eden Park or Go Media Stadium. “Turf replacement can add hundreds of thousands — if not $1 million — to your bottom line,” said another.

    Some wanted something else entirely. Veteran promoter Campbell Smith pointed out Auckland Council is seeking input for a potential redevelopment of Western Springs. One mooted option is turning it into a home ground for the rapidly rising football club Auckland FC. Smith doesn’t agree with that. “I think it’s a really attractive option for music and festivals,” he says. “It’s got a large footprint, it’s easily accessible, it’s close to the city … It would be a travesty if it was developed entirely for sport.”

    One thing is for certain: a decision on this lengthy, torrid and emotional topic is being made in March. One party will celebrate; the other will slink back to the drawing board. Will it finally end the great Auckland stadium debate? That’s a question that seems easier to answer than any of the others.

    Chris Schulz is a freelance entertainment journalist and author of the industry newsletter, Boiler Room. This article was first published by RNZ and is republished with the author’s permission. Asia Pacific Report has a community partnership agreement with RNZ.

    MIL OSI Analysis – EveningReport.nz –

    January 29, 2025
  • MIL-OSI USA: Innovation Quest Turns Students into Entrepreneurs 

    Source: US State of Connecticut

    If there is one thing that Gaofei Zhang learned from a night-time equestrian class at UConn on a bitter cold evening is that a warm, comfortable pair of boots is one of life’s necessities.

    “After that night, I tried a lot of brands of boots,’’ says Zhang, a Ph.D. student in the Department of Allied Health Sciences in the College of Agriculture, Health and Natural History (CAHNR). “They either weren’t warm or weren’t waterproof, or they were slippery or stiff or hard to clean. I didn’t understand why you’d call them ‘snow boots’ if they aren’t good in the snow!’’

    Zhang has a home in Mongolia where the temperature drops as low as minus-30 degrees. The locals create warm and comfortable work boots, but they aren’t stylish. Zhang thought she could adopt their footwear expertise and merge it with something fashionable, including multi-colored fur and beads.

    “As an international student, I didn’t know anything about how to start a company and I was not brave enough to create it on my own,’’ she says. Last year she brought her idea to Innovation Quest (iQ), a UConn entrepreneurship program and competition that helps students develop their ideas into thriving startups. IQ provides workshops, mentoring, and startup funding for the most promising ideas.

    Today, Zhang’s unique, handcrafted boots, marketed under the name MOGSki, are ready to go to market, and the 15 styles of boots and apres-ski accessories are drawing interest from many boutiques. Elegant and chic, they are made of sheep, mink, or cow hide and lined with shearling for added warmth.

    Innovation Quest Workshops Begin on Feb. 4; Students Vie for $30,000 in Funding 

    Zhang is one of more than 2,500 UConn students who have participated in iQ since its inception 14 years ago.  The program is open to UConn graduate and undergraduate students from any field of study.

    IQ is run by Kevin Gardiner ’06 MBA, an adjunct professor in business and engineering. He has held management positions at both startups and long-established companies, including Macy’s, Oracle, and Welcome Commerce.

    “We’re definitely looking for someone who has grit, someone who isn’t going to give up,’’ he says. “As an entrepreneur, you get far more ‘no’s’ than ‘yeses,’ and that’s something that you have to accept. I also look for someone with a passion for the problem they are tackling. When the iQ judges see that, they know they’ve got an entrepreneur whom they can bet on.”

    This year’s event will begin with a kickoff workshop at 6:30 p.m. on Tuesday, Feb, 4, followed by workshops on Feb. 12, Feb. 26, and March 5. All the workshops are virtual for the convenience of students. Participants may sign up at innovationquest.uconn.edu.

    IQ had a 22% increase in participation last year, over 2023, and that’s a trend that Gardiner hopes to see continue.

    Previous participants have created everything from stuffed animals to clothing to personal care items to businesses engaged in environmental cleanup. Gardiner says that in recent years, students seem particularly interested in health tech, mobile apps, and AI-related companies, but all good idea are welcome.

    Last year’s first-place award went to Ph.D. candidate John Toribio, whose company Zemi Labs is creating wearable garments that provide biomechanical data, including heart and muscle performance.

    “UConn continues to provide more and more opportunities for student entrepreneurs, and we continue to evolve this program,’’ Gardiner says. “We welcome students who just want to dip a toe in the water, as well as those who are fully committed to creating a business.’’

    The iQ program has more than 50 expert mentors and more than half of them have been associated with the program since the beginning. Every year, iQ adds new advisers, all passionate about working with students.

    “I want all students to feel welcome,’’ Gardiner says. “We have four virtual workshops to help students understand entrepreneurship. Are you ready to launch a business? If not, what do you need to get ready? We want anyone, even those with a more remote interest, to attend and learn.’’

    After the workshops are completed, students can submit a formal application to enter the competition and compete for a share of $30,000 in funding. Final presentations are April 14 in Storrs and the top three startup companies will be announced. Many of the previous participants have gone on to start their companies or to pursue an entrepreneurial career.

    Zhang Developed Business Expertise, Confidence

    For Zhang, the last year has been enormously gratifying, both personally and professionally.

    “IQ has been an incredible journey for me. It’s not only helped sharpen my presentation skills but also expanded my knowledge across so many areas—product positioning, sales, marketing, tax, finance, IP, law, storytelling, and more,’’ she says.

    “The competition broadened my perspectives, strengthened my courage and determination, and provided invaluable mentorship and networking opportunities,’’ she says. “It’s truly been one of the most impactful milestones in my entrepreneurial journey, directly pushing forward the progress of my startup.’’

    She says she would tell anyone considering entrepreneurship to give it a try.

    “I would tell other entrepreneurs to be fearless in exploring new ideas and to use your own experiences to solve problems,’’ she says. “Be adaptable, build a network, find mentors, be persistent, and be open to both failures and successes.’’

    MIL OSI USA News –

    January 29, 2025
  • MIL-OSI: Fengate and eMAX Health announce partnership to drive innovation in healthcare technology 

    Source: GlobeNewswire (MIL-OSI)

    DELRAY BEACH, Fla., Jan. 28, 2025 (GLOBE NEWSWIRE) — Fengate Private Equity, a division of Fengate Asset Management (“Fengate”), is pleased to announce a new platform investment through its partnership with eMAX Health (“eMAX” or “the Company”). Fengate is managing this investment on behalf of the LiUNA Pension Fund of Central and Eastern Canada (LPFCEC).

    The existing management team, led by Founder and President, Julian Casciano, will continue to lead eMAX and remain significant investors in the Company alongside Fengate. Terms of the transaction were not disclosed.

    Founded in 2004 by Julian Casciano, eMAX has grown into a recognized leader in the fields of real-world evidence development research, market access, and patient services. The Company features an experienced team of research scientists, healthcare experts, and key opinion leaders, supported by advanced data management and technology-enabled solutions. The Company’s proprietary platforms— MAVA, EMRClaims+, and HealthPACER— are at the forefront of tech-enabled pharmaceutical commercialization.

    “We are delighted to support Julian, a dynamic founder with an ambitious vision for eMAX, and help fuel the Company’s continued growth,” said Maxim Tcherner, Principal at Fengate Private Equity. “eMAX has rapidly scaled, establishing a leading position in a fragmented industry, all while staying true to its client-centric culture. The investment is strongly aligned with our strategy of partnering with exceptional management teams and providing differentiated services in high-growth sectors. eMAX will be a valuable addition to Fengate’s healthcare portfolio.”

    “eMAX is excited to partner with Fengate as the Company enters its next phase of growth. We will be able to accelerate new product development across high-demand tech-enabled services, enhance our portfolio of innovative capabilities, and significantly expand customer account management,” said Julian Casciano, Founder and President of eMAX Health. “With our aligned values and ambition, I believe the Fengate partnership will help our customers improve the lives of patients around the world.”

    North Point Mergers and Acquisitions served as financial advisors and Coviello Weber & Dahill LLP served as legal advisors to eMAX. Torys LLP served as legal advisor to Fengate.

    MEDIA CONTACT:

    Gea Koleva
    Marketing and Communications Manager
    Fengate Asset Management
    Gea.Koleva@fengate.com
    289-834-3728

    About eMAX Health 

    eMAX Health, founded in 2004 and headquartered in Delray Beach, Florida, is a leader in market access innovation, real-world evidence development research, and digitally connected patient access and outcomes monitoring solutions. eMAX Health serves as a partner of choice to the largest global pharmaceutical and biotechnology companies. Learn more at www.emaxhealth.net/.

    About Fengate Asset Management 

    Fengate is a leading alternative investment manager, with more than $10 billion of capital commitments under management, focused on private equity, infrastructure, and real estate strategies. With offices and team members across Canada and the United States, Fengate leverages 50 years of entrepreneurial experience to deliver excellent investment results on behalf of its clients. Fengate Private Equity, a division of Fengate Asset Management, is a differentiated investment platform supporting the growth ambitions of entrepreneurs through transformative capital. Learn more at www.fengate.com.

    About the LiUNA Pension Fund of Central and Eastern Canada
    Established in 1972, the LiUNA Pension Fund of Central and Eastern Canada (LPFCEC) is one of the fastest growing multi-employer pension funds across Canada, voted top 10 pension funds by Benefits Canada. With a diverse investment portfolio and over $12 billion in assets, LPFCEC has yielded positive returns for the plan, great work opportunities for LiUNA members, and has created many needed institutions across North America through a broad range of investments. Learn more at www.lpfcec.org. 

    The MIL Network –

    January 29, 2025
  • MIL-OSI: HomeTrust Announces the Sale of Knoxville Branches to Apex Bank

    Source: GlobeNewswire (MIL-OSI)

    ASHEVILLE, N.C. and CAMDEN, Tenn., Jan. 28, 2025 (GLOBE NEWSWIRE) — HomeTrust Bancshares, Inc. (NASDAQ: HTBI) (“Company”), the holding company of HomeTrust Bank (“HomeTrust”), and Apex Bank (“Apex”) today announced that HomeTrust and Apex have entered into a definitive purchase and assumption agreement (the “agreement”) under which Apex will acquire HomeTrust’s two branches in Knoxville, Tennessee. Under the terms of the agreement, Apex will acquire the physical locations, related fixed assets, and substantially all the customer deposit accounts which are currently estimated at $42 million. HomeTrust will retain the loan accounts associated with the branches.

    “This transaction aligns with our strategic plan to tighten our geographic footprint, improve our branch efficiencies, and allocate our capital to support our long-term growth in other core markets,” said Hunter Westbrook, HomeTrust’s President and Chief Executive Officer.

    Matt Daniels, President and CEO of Apex Bank said, “Being locally owned and operated, we are excited to expand our footprint in Knoxville. This investment will allow us to better serve customers and support the community. We will continue to look for opportunities to expand our presence in the area and remain committed to providing personalized financial solutions that help individuals and businesses thrive.”

    The proposed transaction, which is subject to customary closing conditions, including approval by applicable regulatory authorities, is currently anticipated to close in the second quarter of 2025.

    Piper Sandler & Co. served as HomeTrust’s financial advisor for the transaction, while Silver, Freedman Taff & Tiernan LLP provided legal counsel. Baker Donelson provided legal counsel for Apex.

    About HomeTrust Bancshares, Inc.
    HomeTrust Bancshares, Inc. is the holding company for HomeTrust Bank. As of December 31, 2024, the Company had assets of $4.6 billion. The Bank, founded in 1926, is a North Carolina state chartered, community-focused financial institution committed to providing value added relationship banking with over 30 locations as well as online/mobile channels. Locations include: North Carolina (the Asheville metropolitan area, the “Piedmont” region, Charlotte, and Raleigh/Cary), South Carolina (Greenville and Charleston), East Tennessee (Kingsport/Johnson City, Knoxville, and Morristown), Southwest Virginia (Roanoke Valley) and Georgia (Greater Atlanta).

    About Apex Bank
    Apex Bank was founded in 1931 and is headquartered in Knoxville, Tennessee. Apex Bank has experienced tremendous growth since 2008, increasing total assets from $157 million to over $1.35 billion in 2025. The bank currently has 20 retail locations and a Knoxville-based national mortgage servicing center. Apex Bank has consistently been ranked as one of the best-performing community banks in the nation for the past 16 years, including the award of Tennessee’s Top Community Bank from Independent Community Bankers of America and other leading rankings in the financial industry.

    Forward-Looking Statements
    This press release may include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact, but instead are based on certain assumptions including statements with respect to the Company’s beliefs, plans, objectives, goals, expectations, assumptions and statements about future economic performance and projections of financial items. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated or implied by forward-looking statements. The factors that could result in material differentiation include, but are not limited to, the impact of bank failures or adverse developments involving other banks and related negative press about the banking industry in general on investor and depositor sentiment; the remaining effects of the COVID-19 pandemic on general economic and financial market conditions and on public health, both nationally and in the Company’s market areas; natural disasters, including the effects of Hurricane Helene; expected revenues, cost savings, synergies and other benefits from merger and acquisition activities might not be realized to the extent anticipated, within the anticipated time frames, or at all, costs or difficulties relating to integration matters, including but not limited to customer and employee retention, might be greater than expected, and goodwill impairment charges might be incurred; increased competitive pressures among financial services companies; changes in the interest rate environment; changes in general economic conditions, both nationally and in our market areas; legislative and regulatory changes; and the effects of inflation, a potential recession, and other factors described in the Company’s latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other documents filed with or furnished to the Securities and Exchange Commission – which are available on the Company’s website at www.htb.com and on the SEC’s website at www.sec.gov. Any of the forward-looking statements that the Company makes in this press release or in the documents the Company files with or furnishes to the SEC are based upon management’s beliefs and assumptions at the time they are made and may turn out to be wrong because of inaccurate assumptions, the factors described above or other factors that management cannot foresee. The Company does not undertake, and specifically disclaims any obligation, to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

    www.htb.com
    www.apexbank.com

    The MIL Network –

    January 29, 2025
  • MIL-OSI: Auburn National Bancorporation, Inc. Reports Fourth Quarter and Full Year Results

    Source: GlobeNewswire (MIL-OSI)

    Fourth Quarter 2024 Highlights:

    • Net interest margin (tax-equivalent) improved 44 basis points to 3.09%, compared to 4Q 2023
    • Net interest income (tax-equivalent) increased 14% compared to 4Q 2023
    • Average loans increased 3% compared to 4Q 2023
    • Nonperforming assets were $0.5 million or 0.05% of total assets at December 31, 2024

    AUBURN, Ala., Jan. 28, 2025 (GLOBE NEWSWIRE) — Auburn National Bancorporation (Nasdaq: AUBN) reported net income of $1.6 million, or $0.45 per share, for the fourth quarter of 2024, compared to $1.7 million, or $0.50 per share, for the third quarter of 2024, and a net loss of $(4.0) million, or $(1.14) per share, for the fourth quarter of 2023. The net loss for the fourth quarter of 2023 reflected the sale of $117.6 million of available-for-sale securities for an after-tax loss of $(4.7) million, or $(1.35) per share related to the Company’s balance sheet repositioning strategy. Excluding this non-routine item, net earnings for the fourth quarter of 2023 would have been $0.7 million, or $0.21 per share.

    For the full year 2024, the Company reported net earnings of $6.4 million, or $1.83 per share, compared to $1.4 million, or $0.40 per share, for 2023. Excluding the loss on sale of securities related to the balance sheet repositioning strategy during 2023, described above, net earnings for the full year 2023 would have been $6.1 million, or $1.75 per share.

    “Our fourth quarter and full year results reflect solid revenue growth, strong asset quality, and controlled expenses,” said David A. Hedges, President and CEO. “Except for the first quarter of 2024, following the balance sheet repositioning, our quarterly cost of deposits decreased for the first time since the third quarter of 2022. We remain optimistic that our net interest margin will continue to improve in 2025 as recent cuts in the federal funds rate should reduce our cost of deposits and still allow our earning asset yields to improve as loans and securities re-price. While the interest rate environment remains challenging for the banking industry, our capital and liquidity are strong and we are well positioned to meet the needs of our customers,” said Mr. Hedges.

    Net interest income (tax-equivalent) was $7.0 million for the fourth quarter of 2024, compared to $6.8 million in the third quarter of 2024, and $6.2 million for the fourth quarter of 2023. The increase in net interest income was primarily due to improved net interest margin.

    Net interest margin (tax-equivalent) was 3.09% in the fourth quarter of 2024, compared to 3.05% in the third quarter of 2024, and 2.65% in the fourth quarter of 2023. The increase in net interest margin compared to the fourth quarter of 2023 was primarily due to loan growth and the balance sheet repositioning strategy mentioned above, which resulted in a more favorable asset mix and higher yields on interest-earning assets in 2024. Average loans for the fourth quarter of 2024 were $567.6 million, a 3% increase from the fourth quarter of 2023.

    Nonperforming assets were $0.5 million, or 0.05% of total assets, at December 31, 2024, compared to $0.8 million, or 0.08% of total assets at September 30, 2024, and $0.9 million, or 0.09% of total assets, at December 31, 2023.

    The Company recorded a negative provision for credit losses of $(48) thousand in the fourth quarter of 2024, compared to a negative provision for credit losses of $(127) thousand in the third quarter of 2024, and a provision for credit losses of $326 thousand in the fourth quarter of 2023.

    At December 31, 2024 and September 30, 2024, the Company’s allowance for credit losses was $6.9 million, or 1.22% of total loans, compared to $6.9 million, or 1.23% of total loans at December 31, 2023. Although the balance of the allowance for credit losses was largely unchanged, the decrease in the allowance for credit losses as a percentage of total loans was primarily due to improved economic forecasts.

    Noninterest income was $0.8 million for both the fourth and third quarters of 2024, compared to a loss of $5.4 million in the fourth quarter of 2023. Excluding the pre-tax securities loss of $6.3 million related to the balance sheet repositioning strategy in 2023, noninterest income would have been $0.9 million for the fourth quarter of 2023.

    Noninterest expense was $5.5 million in both the fourth and third quarters of 2024, compared to $5.8 million for the fourth quarter of 2023. The decrease in noninterest expense compared to the fourth quarter of 2023 was primarily related to decreases in salaries and benefits expense, net occupancy and equipment expense, and professional fees expense.

    The provision for income tax expense was $0.8 million for the fourth quarter of 2024, compared to income tax expense of $0.5 million for the third quarter of 2024, and an income tax benefit of $(1.5) million for the fourth quarter of 2023.

    The effective tax rate for the fourth quarter of 2024 was 34.73%, compared to 23.46% for the third quarter of 2024, and an effective tax rate of (27.53)% for the fourth quarter of 2023. The increase in the effective tax rate compared to the fourth quarter of 2023 was primarily due to an increase in pre-tax earnings in 2024 resulting from our balance sheet repositioning and the pre-tax loss incurred in the fourth quarter of 2023 from selling securities in such balance sheet repositioning. Also, the provision for income tax expense and the effective tax rates for the fourth and third quarters of 2024 included discrete tax items associated with provision to return adjustments in conjunction with the final 2023 tax return filing and the resolution of state examination activities, which resulted in additional tax expense. Excluding these discrete items, the effective tax rate for the fourth and third quarters of 2024, would have been 21.55% and 18.96%, respectively. The Company’s effective income tax rate otherwise is principally affected by tax-exempt earnings from the Company’s investments in municipal securities, bank-owned life insurance, and New Markets Tax Credits.

    Total assets were $977.3 million at December 31, 2024, compared to $990.1 million at September 30, 2024 and $975.3 million at December 31, 2023. Loans, net of unearned income were $564.0 million at December 31, 2024, compared to $565.7 million at September 30, 2024 and $557.3 million at December 31, 2023. Growth in construction and land development loans since December 31, 2023 was partially offset by paydowns in commercial and industrial loans. Total deposits were $895.8 million at December 31, 2024, compared to $901.7 million at September 30, 2024 and $896.2 million at December 31, 2023. At December 31, 2024, the Company had $74.1 million of reciprocal deposits sold off-balance sheet, compared to $37.8 million at September 30, 2024, and $59.0 million at December 31, 2023. The Company had no brokered deposits, FHLB advances or other wholesale borrowings outstanding at December 31, 2024, September 30, 2024, or December 31, 2023.

    At December 31, 2024, the Company’s consolidated stockholders’ equity (book value) was $78.3 million, or $22.41 per share, compared to $84.3 million, or $24.14 per share, and $76.5 million, or $21.90 per share, at December 31, 2023. The decrease from September 30, 2024 was primarily driven by other comprehensive losses of $6.7 million due to higher market interest rates that led to an increase in unrealized losses on securities available-for-sale, net of tax, and cash dividends paid of $1.0 million, partially offset by net earnings of $1.6 million during the fourth quarter of 2024. The increase from December 31, 2023 was primarily driven by net earnings of $6.4 million, which was partially offset by cash dividends paid of $3.8 million, other comprehensive losses of $0.6 million related to unrealized gains/losses on securities available-for-sale, net of tax, and a $0.3 million one-time charge for the cumulative effect to adopt a new accounting standard on January 1, 2024. Unrealized losses on securities do not affect the Bank’s capital for regulatory capital purposes.

    The Company’s tangible common equity (“TCE”) ratio or total equity to total assets ratio was 8.01% at December 31, 2024, compared to 8.52% at September 30, 2024, and 7.84% at December 31, 2023. All of the Company’s marketable securities are classified as available-for-sale. Therefore, any changes in the fair value of the Company’s securities portfolio are reflected in total equity, net of tax, under generally accepted accounting principles.

    The Company paid cash dividends of $0.27 per share in the fourth quarter of 2024. At December 31, 2024, the Bank’s regulatory capital ratios were well above the minimum amounts required to be “well capitalized” under current regulatory standards.

    About Auburn National Bancorporation, Inc.

    Auburn National Bancorporation, Inc. (the “Company”) is the parent company of AuburnBank (the “Bank”), with total assets of approximately $977 million. The Bank is an Alabama state-chartered bank that is a member of the Federal Reserve System, which has operated continuously since 1907. Both the Company and the Bank are headquartered in Auburn, Alabama. The Bank conducts its business in East Alabama, including Lee County and surrounding areas. The Bank operates seven full-service branches in Auburn, Opelika, Valley, and Notasulga, Alabama. The Bank also operates a loan production office in Phenix City, Alabama. Additional information about the Company and the Bank may be found by visiting www.auburnbank.com.

    Cautionary Notice Regarding Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, costs and revenues, the continuing effects of the COVID-19 pandemic and related government, Federal Reserve monetary and regulatory actions, including the remaining effects of pandemic-related economic stimulus and economic conditions generally and in our markets, loan demand, mortgage lending activity, changes in the mix of our earning assets (including those generating tax exempt income or tax credits) and our mix and cost of deposits and wholesale liabilities, net interest income and margin, yields on earning assets, the market values and performance of securities held, effects of inflation, including Federal Reserve monetary policies which were tightened in response to inflation beginning in 2022 through increases in the target federal funds rate and reductions in the Federal Reserve’s Treasury and mortgage-backed securities (MBS) holdings, and more recent monetary loosening through increased reinvestment of maturing Treasury securities and reinvestment in agency debt and MBS in Treasury securities beginning in June 2024 and beginning September 17, 2024, three reductions in the target federal funds rate totaling 100 basis points to a current target of 4.25-4.50%, changes in the shape of the yield curve, interest rates (generally and those applicable to our assets and liabilities) and changes in our asset values, especially investment securities, as a result of monetary policies and interest rate changes, noninterest income, loan performance, loan deferrals and modifications, nonperforming assets, other real estate owned, provision for credit losses, including the continuing effects of the application of the new CECL accounting standard adopted on January 1, 2023 and our CECL models, including possible adjustments to the fair values of securities available for sale in lieu of other-than-temporary impairments, charge-offs, collateral values, credit quality, asset sales, insurance claims, and market trends, as well as statements with respect to our objectives, expectations and intentions and other statements that are not historical facts. Actual results may differ from those set forth in the forward-looking statements.

    Forward-looking statements, with respect to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, achievements, or financial condition of the Company or the Bank to be materially different from future results, performance, achievements, or financial condition expressed or implied by such forward-looking statements. You should not expect us to update any forward-looking statements.

    All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, together with those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2023 and otherwise in our other SEC reports and filings.

    Explanation of Certain Unaudited Non-GAAP Financial Measures

    This press release contains financial information determined by methods other than U.S. generally accepted accounting principles (“GAAP”). The attached financial highlights include certain designated net interest income amounts presented on a tax-equivalent basis, a non-GAAP financial measure, and the presentation and calculation of the efficiency ratio, a non-GAAP measure. Management uses these non-GAAP financial measures in its analysis of the Company’s performance and believes the presentation of net interest income on a tax-equivalent basis provides comparability of net interest income from both taxable and tax-exempt sources and facilitates comparability within the industry. Similarly, the efficiency ratio is a common measure that facilitates comparability with other financial institutions. Although the Company believes these non-GAAP financial measures enhance investors’ understanding of its business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. Along with the attached financial highlights, the Company provides reconciliations between the GAAP financial measures and these non-GAAP financial measures.

    For additional information, contact:
    David A. Hedges
    President and CEO
    (334) 821-9200

    Financial Highlights (unaudited)                                      
            Quarter ended     Year ended December 31,  
    (Dollars in thousands, except per share amounts)   December 31, 2024       September 30, 2024       December 31, 2023       2024         2023    
    Results of Operations                                      
    Net interest income (a) $ 6,988       $ 6,811       $ 6,154       $ 27,204       $ 26,745    
    Less: tax-equivalent adjustment   19         21         95         79         417    
      Net interest income (GAAP)   6,969         6,790         6,059         27,125         26,328    
    Noninterest income   845         846         (5,429 )       3,474         (2,981 )  
      Total revenue   7,814         7,636         630         30,599         23,347    
    Provision for credit losses   (48 )       (127 )       326         36         135    
    Noninterest expense   5,472         5,500         5,803         22,166         22,594    
    Income tax expense (benefit)   830         531         (1,514 )       2,000         (777 )  
    Net earnings (loss) $ 1,560       $ 1,732       $ (3,985 )     $ 6,397       $ 1,395    
                                                 
    Per share data:                                      
    Basic and diluted net earnings (loss): $ 0.45       $ 0.50       $ (1.14 )     $ 1.83       $ 0.40    
    Cash dividends declared $ 0.27       $ 0.27       $ 0.27       $ 1.08       $ 1.08    
    Weighted average shares outstanding:   3,493,699         3,493,699         3,493,614         3,493,690         3,498,030    
    Shares outstanding, at period end   3,493,699         3,493,699         3,493,614         3,493,699         3,493,614    
    Book value $ 22.41       $ 24.14       $ 21.90       $ 22.41       $ 21.90    
    Common stock price:                                      
      High $ 24.57       $ 24.35       $ 21.99       $ 24.57       $ 24.50    
      Low   20.06         17.50         19.72         16.63         18.80    
      Period-end $ 23.49       $ 22.90       $ 21.28       $ 23.49       $ 21.28    
        To earnings ratio (c)   12.77   x     91.60   x     53.20   x     12.84   x     53.20   x
        To book value   105   %     95   %     97   %     105   %     97   %
    Performance ratios:                                      
    Return on average equity (annualized):   7.49   %     9.10   %     (26.40 ) %     8.21   %     2.05   %
    Return on average assets (annualized):   0.63   %     0.71   %     (1.56 ) %     0.65   %     0.14   %
    Dividend payout ratio   60.00   %     54.00   %     (23.68 ) %     59.02   %     270.00   %
    Other financial data:                                      
    Net interest margin (a)   3.09   %     3.05   %     2.65   %     3.06   %     2.89   %
    Effective income tax rate   34.73   %     23.46   %     (27.53 ) %     23.82   %     (125.73 ) %
    Efficiency ratio (b)   69.86   %     71.83   %     800.41   %     72.25   %     95.08   %
    Asset Quality:                                      
    Nonperforming assets:                                      
      Nonperforming (nonaccrual) loans $ 503       $ 775       $ 911       $ 503       $ 911    
        Total nonperforming assets $ 503       $ 775       $ 911       $ 503       $ 911    
                                                 
    Net (recoveries) charge-offs $ (16 )     $ 60       $ 173       $ (14 )     $ 46    
    Allowance for credit losses as a % of:                                      
      Loans   1.22   %     1.22   %     1.23   %     1.22   %     1.23   %
      Nonperforming loans   1,366   %     887   %     753   %     1,366   %     753   %
    Nonperforming assets as a % of:                                      
      Loans and other real estate owned   0.09   %     0.14   %     0.16   %     0.09   %     0.16   %
      Total assets   0.05   %     0.08   %     0.09   %     0.05   %     0.09   %
    Nonperforming loans as a % of total loans   0.09   %     0.14   %     0.16   %     0.09   %     0.16   %
    Net (recoveries) charge-offs                                      
    as a % of average loans   (0.01 ) %     0.04   %     0.13   %     —   %     0.01   %
                                                 
    Selected average balances:                                      
    Securities $ 255,168       $ 251,723       $ 354,065       $ 258,155       $ 387,488    
    Loans, net of unearned income   567,634         571,651         550,938         568,378         523,838    
    Total assets   991,275         982,656         1,020,476         982,268         1,021,808    
    Total deposits   904,605         904,860         953,674         902,429         946,791    
    Total stockholders’ equity   83,325         76,113         60,372         77,921         68,066    
    Selected period end balances:                                      
    Securities $ 243,012       $ 258,285       $ 270,910       $ 243,012       $ 270,910    
    Loans, net of unearned income   564,017         565,699         557,294         564,017         557,294    
    Allowance for credit losses   6,871         6,876         6,863         6,871         6,863    
    Total assets   977,324         990,143         975,255         977,324         975,255    
    Total deposits   895,824         901,724         896,243         895,824         896,243    
    Total stockholders’ equity   78,292         84,336         76,507         78,292         76,507    
                                                 
    (a) Tax equivalent. See “Explanation of Certain Unaudited Non-GAAP Financial Measures” and “Reconciliation of  
      GAAP to non-GAAP Measures (unaudited).”  
    (b) Efficiency ratio is the result of noninterest expense divided by the sum of noninterest income and tax-equivalent  
      net interest income. See “Reconciliation of GAAP to non-GAAP Measures (unaudited)” below.  
    (c) Calculated by dividing period end share price by earnings per share for the previous four quarters.  
    Reconciliation of GAAP to non-GAAP Measures (unaudited):  
                               
          Quarter ended December 31,     Years ended December 31,  
    (Dollars in thousands, except per share amounts)   2023     2022     2023     2022  
    Net interest income, as reported (GAAP) $ 6,059   $ 7,471   $ 26,328   $ 27,166  
    Tax-equivalent adjustment   95     117     417     456  
    Net interest income (tax-equivalent) $ 6,154   $ 7,588   $ 26,745   $ 27,622  
                               

    The MIL Network –

    January 29, 2025
  • MIL-OSI: ESET Launches New Series of Speakeasy Security, a Tech and Cybersecurity Podcast

    Source: GlobeNewswire (MIL-OSI)

    SAN DIEGO, Jan. 28, 2025 (GLOBE NEWSWIRE) — ESET, a global leader in cybersecurity and threat detection, today announced a new series of its cybersecurity podcast, Speakeasy Security. As part of a 10-episode series, Speakeasy Security will be co-hosted by ESET Chief Security Evangelist Tony Anscombe and Co-Founder and CEO of Cysurance Kirsten Bay – providing lively commentary on the latest tech, privacy and cybersecurity headlines and offering listeners tips to protect themselves from cybercriminals.

    Available on a range of popular podcast platforms, including Apple Podcasts, Spotify, Amazon Music, Podcast Index, iHeart Radio, Pocket Casts, Deezer, Podcast Addict, Listen Notes and Podchaser, the first episode will air on “Trust in Technology—AI and Driverless Cars” where Anscombe and Bay discuss the public’s embrace and skepticism towards the technology.

    “I’m excited to have Kirsten join me at Speakeasy Security – delivering a fresh perspective from her years working to help consumers, SMBs and enterprises manage cybersecurity risk,” said Tony Anscombe. “Each episode, Kirsten and I will explore how new technologies and AI advancements are impacting our personal and professional lives, and the cybersecurity and privacy implications. We will aim to make complex tech issues understandable and enjoyable, while offering practical tips and advice for both businesses and consumers.”

    Bay, Co-Founder and CEO of Cysurance, is a sought-after public speaker and respected leader in the cyber insurance industry. She brings 25 years of expertise in financial services, risk intelligence and cybersecurity to the podcast in her role as co-host. Anscombe is a 30-plus year security industry expert and established author, blogger and speaker on new policies, regulations and the cybersecurity threat landscape. Speakeasy Security will also continue to feature ESET’s leading researchers and threat detection experts, as well as recognized cybersecurity influencers and guests from across the tech universe.

    “I am thrilled to join Speakeasy Security as a co-host and to explore how new technologies, smart devices and privacy-focused legislations will impact society and everyday users,” said Kirsten Bay, Co-Founder and CEO of Cysurance. “My goal with Tony is to offer thought-provoking insights and practical advice to help our audience navigate and stay secure in an ever-evolving digital landscape.”

    Speakeasy Security adds to ESET’s body of original content, which includes its award-winning blog WeLiveSecurity. Featuring commentary from ESET’s global security researchers, WeLiveSecurity offers in-depth knowledge of the latest threats and security trends, views and insights, video tutorials and advice for everyday internet users on how to secure data effectively. Follow the blog on Twitter at @welivesecurity and follow Anscombe at @TonyAtESET and Bay at @cyberkbay.

    For more information on Speakeasy Security, visit https://www.eset.com/us/about/newsroom/podcast-list/.

    About ESET
    ESET provides cutting-edge digital security to prevent attacks before they happen. By combining the power of AI and human expertise, ESET stays ahead of known and emerging cyber threats — securing businesses, critical infrastructure, and individuals. Whether it’s endpoint, cloud or mobile protection, its AI-native, cloud-first solutions and services remain highly effective and easy to use. ESET technology includes robust detection and response, ultra-secure encryption, and multi-factor authentication. With 24/7 real-time defense and strong local support, we keep users safe and businesses running without interruption. An ever-evolving digital landscape demands a progressive approach to security: ESET is committed to world-class research and powerful threat intelligence, backed by R&D centers and a strong global partner network. For more information, visit www.eset.com or follow us on LinkedIn, Facebook, and Twitter.

    Media contact:
    Jessica Beffa
    Jessica.beffa@eset.com
    720-413-4938

    The MIL Network –

    January 29, 2025
  • MIL-OSI: KnowBe4’s Top 10 Tips to Take Charge of Your Data on Data Privacy Day

    Source: GlobeNewswire (MIL-OSI)

    TAMPA BAY, FL, Jan. 28, 2025 (GLOBE NEWSWIRE) — KnowBe4, the world-renowned cybersecurity platform that comprehensively addresses human risk management, celebrates Data Privacy Day with practical and impactful recommendations to help individuals and organizations take charge of their data security.

    In an age where data is constantly collected, shared, and monetized, Data Privacy Day serves as an annual reminder about the importance of protecting and facilitating online privacy. Data Privacy Day began in the United States in January 2008 as an extension of the Data Protection Day celebration in Europe and is officially led by NCSA in North America. The National Cybersecurity Alliance has expanded it into Data Privacy Week, with the 2025 theme ‘Take Control of Your Data’, which encourages individuals to reclaim their digital autonomy through simple, actionable steps to make informed privacy choices. For organizations, the message emphasizes the need to respect and prioritize users’ data privacy.

    Data privacy is more critical than ever, especially when social media platforms, AI chatbots and connected devices have increased publicly available digital footprints. This creates opportunities for the misuse of personal information and data traces which can lead to incidents of identity theft, financial fraud, and even psychological harm.

    Recognizing the shared responsibility of safeguarding data, DePaula shares the 10 top tips for individuals and organizations to help take control of their data in 2025:

    Tips for Individuals

    1. Vet your apps and tools: Before using new apps, check their data usage policies, control options, and origin to ensure they are trustworthy.
    2. Optimize IoT device privacy: Adjust settings in your IoT device apps to enhance privacy, such as disabling voice recordings, limiting data storage, or controlling ad preferences.
    3. Educate your family: Discuss online safety with family members, especially children, covering topics like avoiding sharing personal information, recognizing suspicious links, and managing location sharing.
    4. Set up a reputable password manager: Use it for critical accounts and generate strong, unique passwords.
    5. Enable multi-factor authentication (MFA): Activate MFA, preferably with a FIDO token, for critical accounts as an added layer of protection.

    Tips for Organizations

    1. Minimize data collection: Only collect and store data that is essential for business operations. Eliminate unnecessary personal or payment information.
    2. Communicate transparency in privacy policies: Clearly explain what data is collected, how it is used, and with whom it is shared.
    3. Train employees: Educate all employees on data protection regulations, while training them to recognize the latest social engineering attacks and other security risks.
    4. Encrypt personal data: Protect personal data—at rest and in transit—from unauthorized access or exposure.
    5. Vet vendors and partners: As a ‘responsible party’, your organization is responsible and accountable for protecting the data of its subject – even if the processing is outsourced to third parties. Ensure that any external parties handling your organization’s data maintain a high standard of privacy and protection.

    “The new year brings a wave of challenges, especially with the rapid advancements and creation of AI-driven technologies,” said DePaula. “For AI to function effectively, it relies on vast amounts of data being collected and utilized, which raises important questions about privacy, transparency, and ethics. It is up to every organization to take responsibility, not just in regards to how data is handled, but in fostering a culture of accountability. “We have an obligation to build and maintain trust as we navigate our digital landscape.”

    For more insights and best practices on data privacy, visit www.knowbe4.com.

    About KnowBe4

    KnowBe4 empowers workforces to make smarter security decisions every day. Trusted by over 70,000 organizations worldwide, KnowBe4 helps to strengthen security culture and manage human risk. KnowBe4 offers a comprehensive AI-driven ‘best-of-suite’ platform for Human Risk Management, creating an adaptive defense layer that fortifies user behavior against the latest cybersecurity threats. The HRM+ platform includes modules for awareness & compliance training, cloud email security, real-time coaching, crowdsourced anti-phishing, AI Defense Agents, and more. As the only global security platform of its kind, KnowBe4 utilizes personalized and relevant cybersecurity protection content, tools and techniques to mobilize workforces to transform from the largest attack surface to an organization’s biggest asset.

    The MIL Network –

    January 29, 2025
  • MIL-OSI: Bannix and VisionWave Announce filing of a registration statement on Form S-4

    Source: GlobeNewswire (MIL-OSI)

    WILMINGTON, Del., Jan. 28, 2025 (GLOBE NEWSWIRE) — Bannix Acquisition Corp. (“Bannix”) (NASDAQ: BNIX), a publicly traded special purpose acquisition company, and VisionWave Technologies, Inc. (“VisionWave”), a company specializes in the development, testing, and commercialization of advanced technologies for defense, surveillance, and homeland security applications., today announced that VisionWave Holdings, Inc., a wholly owned subsidiary of Bannix (“VisionWave Holdings”), filed with the U.S. Securities and Exchange Commission (“SEC”) of a registration statement on Form S-4 (the “Registration Statement”). 

    The Registration Statement contains a preliminary proxy statement/prospectus in connection with the proposed business combination between VisionWave and Bannix. While the Registration Statement has not yet become effective and the information contained therein is subject to change, it provides important information about VisionWave, VisionWave Holdings, Bannix, and the proposed business combination. 

    CEO and Chairman of Bannix Douglas Davis, commented, “We are thrilled to reach this milestone with VisionWave as we continue the partnership. The potential of in the defense sector is immense, and this partnership positions the combined company for success. We are confident VisionWave is poised to be a leading player and are eager to continue on the path ahead.” 

    Transaction Overview 

    Under the terms of the merger agreement entered into by Bannix and VisionWave, among others, with respect to the proposed business combination, Bannix and VisionWave will merge with subsidiaries of VisionWave Holdings, a wholly owned subsidiary of Bannix that was formed for the proposed transaction (the “Merger”), with Bannix and VisionWave becoming direct wholly owned subsidiaries of VisionWave Holdings. At the effective time of the Merger, stockholders of Bannix and VisionWave immediately prior to the effective time of the Merger will receive shares of VisionWave Holdings common stock. 

    About Bannix Acquisition Corp. 

    Bannix Acquisition Corp. is a blank check company, also commonly referred to as a Special Purpose Acquisition Company, or SPAC, formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities.

    About VisionWave Technologies Inc.

     VisionWave Technologies Inc. is at the forefront of revolutionizing defense capabilities by integrating advanced artificial intelligence (AI) and autonomous solutions across air, ground, and sea domains. Its state-of-the-art innovations— ranging from high-resolution radars and advanced vision systems to radio frequency (RF) sensing technologies are seeking to redefine operational efficiency and precision for military and homeland security applications worldwide. From tactical ground vehicles to precision weapon control systems, VisionWave leads the development of reliable, high-performance technologies that transform defense strategies and deliver superior results, even in the most challenging environments. With headquarters in the U.S. and strategic partnerships in Canada and the United Arab Emigrants, VisionWave is uniquely positioned to serve global markets, offering cutting-edge defense solutions that address the evolving needs of security forces across the world.

    Cautionary Statement Regarding Forward Looking Statements 

    This press release contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”) that are based on beliefs and assumptions and on information currently available to Bannix and VisionWave, including statements regarding VisionWave’s business plans and growth strategies, market opportunities, and financial prospects. In some cases, you can identify forward looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” “target,” “seek” or the negative or plural of these words, or other similar expressions that are predictions or indicate future events or prospects, although not all forward-looking statements contain these words. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this document, including but not limited to:

    (i) the risk that the previously disclosed proposed business combination (the “proposed transaction”) may not be completed in a timely manner or at all, which may adversely affect the price of Bannix’s securities; (ii) the risk that the proposed transaction may not be completed by Bannix’s business combination deadline and the potential failure to obtain an extension of the business combination deadline if sought by Bannix; (iii) the failure to satisfy the conditions to the consummation of the proposed transaction, including the approval of the proposed transaction by Bannix’s stockholders and the receipt of certain governmental and regulatory approvals; (iv) the failure to obtain adequate financing to support the future working capital needs of VisionWave and the combined company; (v) the outcome of any legal proceedings that may be instituted against Bannix or VisionWave related to the merger agreement and the proposed transaction; (vi) changes to the proposed structure of the proposed transaction that may be required or appropriate as a result of applicable laws or regulations or as a condition to obtaining regulatory approval of the proposed transaction; (vii) the ability to maintain the listing of Bannix’s securities on Nasdaq; (viii) the price of Bannix’s securities, including volatility resulting from changes in the competitive and highly regulated industries in which VisionWave operates, variations in performance across competitors, changes in laws and regulations affecting VisionWave’s business and changes in the combined capital structure; and (viii) other risks and uncertainties set forth in the section entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in Bannix’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K that are available on the website of the Securities and Exchange Commission (the “SEC”) at www.sec.gov and other documents filed, or to be filed with the SEC by Bannix and that may be found in the Registration Statement. The foregoing list of factors is not exhaustive. There may be additional risks that neither Bannix nor VisionWave presently know or that Bannix or VisionWave currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. You should carefully consider the foregoing factors and the other risks and uncertainties that will be described in the definitive proxy statement to be filed by VisionWave Holdigns with the SEC, including those under “Risk Factors” therein, and other documents filed by Bannix and VisionWave Holdings from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward looking statements, and Bannix, VisionWave and VisionWave Holdings assume no obligation and, except as required by law, do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Neither Bannix, VisionWave Holdings nor VisionWave gives any assurance that either Bannix or VisionWave will achieve its expectations. 

    Additional Information and Where to Find It 

    In connection with the proposed transaction, VisionWave Holdings filed with the SEC the Registration Statement on Form S-4, and after the Registration Statement is declared effective, VisionWave Holdings will mail a definitive proxy statement/prospectus relating to the proposed transaction to its stockholders. This press release does not contain all the information that should be considered concerning the proposed transaction and is not intended to form the basis of any investment decision or any other decision in respect of the proposed transaction. VisionWave Holdings and Bannix may file other documents regarding the proposed transaction with the SEC, and Bannix’s stockholders and other interested persons are advised to read, when available, the preliminary proxy statement/prospectus and the amendments thereto, the definitive proxy statement/prospectus and the other documents filed in connection with the proposed transaction, as these materials will contain important information about VisionWave, VisionWave Holdings, Bannix and the proposed transaction. When available, the definitive proxy statement/prospectus and other relevant materials for the proposed transaction will be mailed to stockholders of Bannix as of a record date to be established for voting on the proposed transaction and the other matters to be voted upon at a meeting of Bannix’s stockholders to be held to approve the proposed transaction and such other matters. Such stockholders will also be able to obtain copies of the preliminary proxy statement/prospectus, the definitive proxy statement/prospectus and other documents filed with the SEC, without charge, once available, at the SEC’s website at www.sec.gov, or by directing a request to Bannix Acquisition Corp., 300 Delaware Avenue, Suite 210#301, Wilmington, Delaware 19801 or via email at doug.davis@bannixacquisition.com. 

    Participants in Solicitation 

    Bannix, VisionWave Holdings and VisionWave, and their respective directors, executive officers, other members of management, and employees, under SEC rules, may be deemed to be participants in the solicitation of proxies from Bannix’s stockholders in connection with the proposed transaction. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of Bannix’s stockholders in connection with the proposed transaction, including the names of such persons and a description of their respective interests, is set forth in Bannix’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Additional information regarding the interests of those persons and other persons who may be deemed participants in the proposed transaction may be obtained by reading the Registration Statement regarding the proposed transaction when it becomes available. Stockholders will be able to obtain copies of the documents described in this paragraph that are filed with the SEC, once available, without charge at the SEC’s website at www.sec.gov, or by directing a request to Bannix Acquisition Corp., 300 Delaware Avenue, Suite 210#301, Wilmington, Delaware 19801 or via email at doug.davis@bannixacquisition.com. 

    No Offer or Solicitation 

    This press release is not a proxy statement or solicitation of a proxy, consent or authorization with respect to any securities or in respect of the proposed transaction and does not constitute an offer to sell or a solicitation of an offer to buy any securities of Bannix, VisionWave Holdings or VisionWave, nor shall there be any sale of any such securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act. 

    Contacts 

    Bannix Acquisition Corp.
    Douglas Davis, CEO
    (302) 305-479

    The MIL Network –

    January 29, 2025
  • MIL-OSI: New Research Reveals Massive Surge in AI Adoption for Talent Acquisition in 2025

    Source: GlobeNewswire (MIL-OSI)

    SAN FRANCISCO, Jan. 28, 2025 (GLOBE NEWSWIRE) — Today, GoodTime released its fourth annual Hiring Insights Report, a comprehensive analysis based on an independent study of over 500 U.S. talent acquisition (TA) leaders, revealing the most pressing challenges and emerging trends shaping the hiring landscape in 2025.

    The report uncovers a challenging talent market where TA teams met just 47.9% of their hiring goals in 2024 on average, marking the lowest success rate recorded in the past four years​. Persistent bottlenecks, increasing time-to-hire, and rising candidate expectations have strained hiring efficiency across industries.

    At the same time, the report reveals key opportunities for 2025, including greater use of AI and automation, streamlined hiring tools, and a renewed focus on candidate experience — strategies that top-performing teams are already embracing to stay competitive.

    Key findings from the 2025 Hiring Insights Report:

    • Time-to-hire challenges: 60% of organizations reported longer time-to-hire in 2024, with interview cancellations and scheduling delays identified as the top bottlenecks​.
    • Surging AI adoption: 99% of talent acquisition teams now use AI and automation to streamline hiring processes, with 93% planning additional technology investments in 2025​.
    • Candidate experience focus: Top-performing teams were 55% more likely to focus on candidate experience improvements.
    • Sector-specific insights: Healthcare was the only sector to show year-over-year improvement in hiring goal attainment (56%), while retail, manufacturing, financial services, and technology all lagged further behind.

    Talent leaders eye bold moves in 2025

    “The data makes it clear — talent teams can’t afford to stay stuck in the hiring struggles of 2024,” said Ahryun Moon, CEO and Co-Founder of GoodTime. “The path forward demands bold investments in automation and AI to eliminate bottlenecks and meet hiring goals faster. But efficiency alone isn’t enough. The teams that will win in 2025 are those that balance speed with exceptional, human-centric hiring experiences.”

    The 2025 Hiring Insights Report shows that talent acquisition leaders are taking decisive action to improve hiring efficiency and outcomes in the year ahead, and focusing on five key areas to overcome hiring challenges:

    Driving operational efficiency with AI and automation

    AI and automation are now essential tools for modern talent acquisition. 99% of teams reported the use of these technologies and nearly all leaders are planning additional investments in 2025. Streamlined and automated workflows reduce administrative burdens, allowing recruiters to focus on strategic hiring efforts and improving overall operational efficiency.

    Eliminating bottlenecks in the hiring process

    Time-to-hire remains a critical challenge, with 60% of organizations reporting delays, largely due to interview cancellations and scheduling issues. Addressing these bottlenecks requires proactive strategies such as AI-powered analytics for identifying recurring issues, intelligent interviewer selection tools, and automated reminders and rescheduling workflows. These efforts help reduce scheduling conflicts and improve hiring speed.

    Enhancing the candidate experience to stay competitive

    Top-performing TA teams set themselves apart by prioritizing the candidate experience. Personalized experiences, such as branded candidate portals with real-time updates and anonymous feedback collection, keep candidates informed and engaged throughout the hiring process. Additionally, AI-driven insights help interviewers come better prepared for conversations, ensuring a smoother and more effective interview that creates a more engaging candidate experience.

    Leveraging data-driven insights for better decision-making

    Data and analytics have transformed hiring strategies, and nearly half of teams reported using AI-powered insights for better decision-making. Leading organizations are using these tools to detect inefficiencies, benchmark performance against industry standards, and implement real-time analytics for continuous process improvement, to make more informed decisions faster.

    Committing to continuous process improvement

    TA leaders emphasize the need for continuous refinement of hiring processes to stay competitive. This includes regular process audits using hiring data and feedback, ongoing interviewer training, and aligning hiring strategies with broader business goals. A culture of continuous improvement ensures hiring teams remain agile and capable of adapting to evolving market conditions.

    How challenges differed across sectors

    The 2025 Hiring Insights Report revealed that hiring challenges varied significantly across sectors. For example, healthcare was the only sector to report year-over-year improvements in hiring goal attainment, reaching 56%. Conversely, the retail and manufacturing sectors faced some of the highest struggles, with hiring goal attainment dipping to 36% — its lowest in three years.

    The financial services and technology sectors cited interview scheduling delays and capacity issues as primary barriers to success. Companies in these sectors have increasingly adopted automated interview scheduling tools and leverage AI to manage interviewer capacity more effectively. Meanwhile, the retail sector reported a surge in candidate drop-offs due to prolonged hiring timelines, highlighting the critical need for faster, more efficient hiring processes.

    The 2025 Hiring Insights Report offers further analysis and detailed recommendations for talent leaders seeking to improve hiring outcomes. The full report is available at goodtime.io.

    About GoodTime

    GoodTime elevates the entire hiring experience with human-centric AI, all while automating 90% of interview management tasks. Trusted by global talent teams at companies like Hubspot, Spotify, Priceline, and Lyft, our platform not only automates interview scheduling but also keeps candidates and interviewers deeply engaged throughout the hiring journey. Gain access to powerful insights and AI-driven recommendations to streamline processes and ensure every interviewer is always well-prepared. The result? Exceptional hiring experiences that consistently land you top talent.

    Learn more at goodtime.io.

    Media Contact

    For more information or to arrange an interview with Ahryun Moon, please contact:
    Jake Link
    press@goodtime.io

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/9acc85bf-54e5-4ade-9d49-7e9ea67071df

    The MIL Network –

    January 29, 2025
  • MIL-OSI Economics: AuraSwiss: BaFin also warns consumers about the website auraswiss.co

    Source: Bundesanstalt für Finanzdienstleistungsaufsicht – In English

    The Federal Financial Supervisory Authority (BaFin) again warns consumers about the company AuraSwiss and the services it is offering. BaFin has already issued a warning, on 3 January 2025, about AuraSwiss and its website auraswiss.net, which has since been deactivated. The unknown operators are now using the nearly identical website auraswiss.co. BaFin suspects the operators of the websites of offering consumers financial, investment and cryptoasset services without the required authorisation.

    The content of the websites is identical to other platforms that BaFin has previously warned consumers about and that display the same opening sentence: “Invest in Success Prosper with Confidence!”

    Anyone conducting banking business or providing financial, investment or cryptoasset services in Germany may do so only with authorisation from BaFin. However, some companies offer these services without the necessary authorisation. Information on whether a particular company has been granted authorisation by BaFin can be found in BaFin’s database of companies.

    BaFin is issuing this information on the basis of section 37 (4) of the German Banking Act (Kreditwesengesetz – KWG) and section 10 (7) of the German Cryptomarkets Supervision Act (Kryptomaerkteaufsichtsgesetz).

    Please be aware:

    BaFin, the German Federal Criminal Police Office (Bundeskriminalamt – BKA) and the German state criminal police offices (Landeskriminalämter) recommend that consumers seeking to invest money online should exercise the utmost caution and do the necessary research beforehand in order to identify fraud attempts at an early stage.

    MIL OSI Economics –

    January 29, 2025
  • MIL-OSI Global: What are sleep retreats? A sleep scientist explains the latest wellness trend

    Source: The Conversation – UK – By Jason Ellis, Professor of Sleep Science, Northumbria University, Newcastle

    Considering the effect of poor sleep on the individual as well as on society and the economy, it is hardly surprising sleep has become an intense area of research focus in recent years. Most recently we have seen an increase in the offering of and appetite for so-called sleep retreats. But what are sleep retreats and are they helpful?

    As with any specialised retreat, there is no set formula for what a sleep retreat should focus on. As such, the range of what is available is incredibly variable, from retreats that just focus on a sleep-friendly environment (a cool, dark, quiet and comfortable bedroom in a luxurious location) to ones specifically aimed at managing a specific sleep disorder, using evidence-based therapies, such as cognitive behavioural therapy for insomnia.

    There are even ones that provide, among other things, a regimen of vitamins and minerals delivered intravenously. Most, however, fall somewhere between focusing on meditation, exercise and relaxation.

    Although there is good evidence that exercise, at the right intensity and duration, can be beneficial for sleep, it is unlikely that a lack of exercise alone causes poor sleep.

    Similarly, there is some, albeit poor quality, evidence that meditation and relaxation improve sleep quality. As such, it is unlikely that these treatments alone will fix a sleep problem.

    The main challenge is that sleep, as with diet or exercise, is just an overarching term for a complex behaviour, one that is influenced and can influence almost every area of a person’s life. For example, I am hearing a lot about supplementing with magnesium to aid sleep, but this is only likely to be beneficial if you are deficient in the first place.

    What to consider before you splash the cash

    So, should we approach the sleep retreat with caution? Not necessarily, it is more a case of doing your homework.

    First, who does the sleep retreat cater for, and what do you hope to get from the retreat? The busy executive who only allows themselves four hours of sleep a night will have very different expectations and experiences to a person who has undiagnosed sleep apnoea and sleeps for nine hours but wants to know why they are so sleepy during the day.

    This leads to the second consideration: what kind of pre-screening (for conditions that might be causing insomnia) and personalisation do they offer?

    Many retreats advertise an individual consultation as part of the package but don’t really say what that will cover (a sleep, medical and psychiatric history and lifestyle assessment should be done as a bare minimum. This is vital when we consider that while well-established, evidence-based treatments for a variety of sleep disturbances and disorders exist, they are not suitable for everyone.

    Also, there is a perception that non-pharmacological therapies, including nutraceuticals (products derived from food sources that said to have health benefits) and over-the-counter remedies (such as antihistamines, melatonin and valerian), don’t have side-effects, which is not necessarily the case.

    The final considerations are: who is delivering the retreat? And is what they are offering based on sound scientific evidence?

    Considering certification in sleep medicine is a hot topic in the sleep community at the moment, it is worth doing some research. For example, in the UK there is no pathway to becoming a sleep medicine specialist, consultant or coach. So who is leading the sleep retreat and is what they offering evidence-based?

    Jason Ellis has consulted to Kayak on Sleep Tourism.

    – ref. What are sleep retreats? A sleep scientist explains the latest wellness trend – https://theconversation.com/what-are-sleep-retreats-a-sleep-scientist-explains-the-latest-wellness-trend-247632

    MIL OSI – Global Reports –

    January 29, 2025
  • MIL-OSI Global: Trump pulls out of WHO and Paris – how did international bodies get through deglobalisation last time around?

    Source: The Conversation – UK – By Perri 6, Emeritus Professor of Public Management, Queen Mary University of London

    Donald Trump has ordered the US to leave the World Health Organization. Skorzewiak / Shutterstock

    Following Donald Trump’s return to the White House, much attention has been given to his plans for tariffs on imported goods, deportations of illegal migrants, and cuts to federal government spending. Fewer column inches have addressed the implications of his presidency for global regulatory bodies.

    Just as he did during his first term, Trump has announced the withdrawal of the US from the World Health Organization (WHO) and from the Paris climate accords.

    And because his tariffs programme will challenge World Trade Organization (WTO) rules, Trump is likely to continue the US policy of stymieing the WTO’s appellate body, which adjudicates on trade disputes between states. US withdrawals from other international regulatory bodies are also possible.

    Each of the bodies from which Trump withdrew last time around survived. However, threats to global regulatory bodies today could be greater than they were during Trump’s first term.

    In the US and beyond, deglobalisation has so far been evident only in state policies, and not in trade flows. China, for example, has set up and now dominates several regional investment and trade organisations to provide alternatives to the International Monetary Fund and World Bank.

    However, tariff retaliation and bloc-based regulatory standards could soon turn “slowbalisation” – a trend whereby political support for open trade has gradually weakened and the rate of growth in world trade has slowed – into trade deglobalisation.

    We have been here before. The 1930s were characterised by high tariffs, breakup of trade into blocs, and withdrawals and expulsions of major powers from global bodies. In the 1940s, which saw the breakout of the second world war, trade was conducted almost exclusively among allies.

    Yet almost all international regulatory bodies survived during this period, albeit they were bruised and were able to achieve less as a result.

    Our study, which was published in 2021, distinguished pathways through which three distinct groups of global regulatory bodies either survived or else handed over their archives, networks and organisational capacity to their UN-era successors.

    Preserving rule sets

    One inter-war group of industry-specific global regulators oversaw capital-intensive and infrastructure-heavy international industries such as telecommunications and railways. This group included the International Telecommunications Union and a modest alphabet soup of closely cooperating railway bodies.

    In these fields, interconnection depended on common but frequently updated and adjusted rule sets for technology, accounting and routing management. They also required continuous statistical collections by international bureaus.

    Unable to agree major regulatory innovation after the global economic crisis began in 1931, these bodies reduced their focus to managing and maintaining their existing rule sets and information services.

    On the outbreak of war in Europe, their bureaus went into a phase of severely reduced activity, with many of their activities suspended. However, they continued to collect and publish statistics, maintained their networks within member states, and developed ambitious plans for peacetime.

    The International Telecommunications Union and the railway authorities resumed operations shortly after the end of hostilities with their rule sets intact.

    Individual brokering work

    A second cluster were generic bodies, responsible for the oversight of labour relations and aspects of capital flows. These are faster-moving fields than infrastructure-heavy industries. These bodies included the International Labour Organization (ILO) and the Economic and Financial Organisation of the League of Nations (EFO).

    They provided expertise for negotiating agreements on particular problems. In the case of the ILO, this included conventions on working time, women’s working conditions, and forced labour. The EFO brokered financial support with strict conditions for Austria and Hungary, then new and struggling states which faced acute financial crises in the early 1920s.

    These organisations faced increasing difficulties during the deglobalisation of the 1930s. But they continued to provide bilaterally negotiated support for many countries. The ILO, for example, provided technical assistance to some south American governments on the design of social insurance schemes, while the EFO’s financial committee worked with central banks.

    Survival or bequest was secured by the brokering work of key individual leaders who were able to exploit fluid networks among states, firms and unions in global labour and capital debates.

    The EFO secured the transfer of key staff, networks and traditions to post-war bodies including the UN Economic and Social Council and the UN Food and Agriculture Organization. And the ILO’s director-general, Edward Phelan, was crucial in negotiating with the US to relaunch the organisation with a new programme for the post-war era.

    New international clubs

    A third group of regulatory bodies was created precisely in response to the 1930s global economic crisis. These were international commodity unions for goods such as tin, rubber, tea and sugar.

    Most were publicly run cartels, often backed by the imperial blocs that dominated the fragmenting world trade system. Like many cartels, their cohesion was fragile. But many of those that were successfully established managed to survive the 1930s and the war that followed.

    Their survival depended less on the formal administrative organisation of the infrastructure bodies or the individual brokering work that sustained the capital and labour bodies. It was dependent more on their ability to draw upon club-like collective bonds both among major producing and exporting firms and among officials across key producer states and imperial authorities.

    Within the tightly bonded International Tin Committee, for example, a succession of agreements on prices, quotas and voting rights were settled. Despite initial US reluctance to see these international commodity unions continue into peacetime, President Harry Truman was persuaded of their temporary value for economic order during reconstruction.

    Some even continued until the 1970s, when they collapsed in that decade’s global economic turmoil. Freer markets then superseded intergovernmental cartels.

    Trump’s policies, as well as those of China, Russia and other major powers, may again endanger the roles of global regulatory bodies. But some will survive by focusing on the routine maintenance services provided by their bureaus, and some will empower individual leaders to negotiate their way to reinvention and survival.

    Others will pass their capacity to new agencies when deglobalisation eventually abates. And some new international bodies may emerge in response to conditions in industries most adversely affected by the changing terms of trade.

    Our work has led us to conclude that which strategy is chosen depends on two things. First, on the features of the field being regulated. And second on the informal social organisation within the international bodies and member states, which shapes how people can act and the skills they can sustain.

    It remains to be seen how informal social organisation in the WHO and climate treaty system will now evolve after US withdrawal.

    Eva Heims has received funding from the ESRC.

    Martha Prevezer and Perri 6 do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    – ref. Trump pulls out of WHO and Paris – how did international bodies get through deglobalisation last time around? – https://theconversation.com/trump-pulls-out-of-who-and-paris-how-did-international-bodies-get-through-deglobalisation-last-time-around-247919

    MIL OSI – Global Reports –

    January 29, 2025
  • MIL-OSI United Kingdom: expert reaction to new AI Chatbot DeepSeek

    Source: United Kingdom – Executive Government & Departments

    January 28, 2025

    Scientists comment on DeepSeek, a new AI Chatbot. 

    Prof Neil Lawrence, DeepMind Professor of Machine Learning at Department of Computer Science and Technology, University of Cambridge, said:

    “I think the progress is unsurprising, and I think it’s just the tip of the iceberg in terms of the type of innovation we can expect in these models. History shows that big firms struggle to innovate as they scale, and what we’ve seen from many of these big firms is a substitution of compute investment for the intellectual hard work. I’ve been suggesting that this has made the conditions ideal for a “Dreadnaught moment” where current technology is rapidly rendered redundant by new thinking. I don’t think DeepSeek is it, because the innovations deployed are relatively incremental, but it shows that we’re still in the age of the Newcomen engine, there’s plenty of space for budding James Watts to emerge, and that they are less likely to come from established players.”

    Comment provided by the SMC pilot for Ireland:

    Dr Deepak Padmanabhan, Senior Lecturer, School of Electronics, Electrical Engineering and Computer Science, Queen’s University Belfast, said:

    “DeepSeek is causing massive disruption in financial markets. Mainstream narratives contrast the technology with ChatGPT and illustrate the differences in technological aspects. The far more long-reaching effect it would have would not be technological, it would be political, for it could disrupt the paradigms entrenched in the tech industry in substantive ways. There could be several aspects:

    “Open-Source Software: DeepSeek’s code to train AI models is open source. This means that anybody can download the code and use it to develop their own AI. This is a significant step towards democratisation of AI. The open-source availability of code for an AI that competes well with contemporary commercial models is a significant change. Yet, if one is to download and run the code to develop their own AI, they would still need to have access to large datasets and tremendous computational power – but this is nevertheless a massive step forward.

    “Computational Power: AI has been noted to pose massive computational requirements over the past decade leading to corporate dominance in AI research [ https://www.science.org/doi/10.1126/science.ade2420 ]. With massive compute requirements yielding well to monopolisation of the space, big tech, and the government funding landscape (that are in turn influenced by big tech) have shown limited interests in prioritising AI research towards reducing computational requirements. DeepSeek’s models have been noted to require far lesser computational requirements than today’s commercial models. This could potentially ignite new interest in reducing computational requirements for future AI, with positive effects towards environment.

    “No plans for Commercialisation: It has been highlighted that DeepSeek has no plans for commercialisation [ https://www.chinatalk.media/p/deepseek-ceo-interview-with-chinas ]. This makes it a very interesting development in that this marks a moment when a player with qualitatively different ideas enters a commercially-dominated space. This is a change against the prevailing trends – OpenAI was noted as moving to a full commercial model (from a partly non-profit model) in recent times. It may be interesting how commercial players respond to this challenge.

    “In other words, the entry of DeepSeek could potentially hasten a paradigm shift in AI and pose a real challenge to commercial dominance in the sector. It may be a little too far to see this as a pathway towards taking AI into public hands, but that’s the direction of travel that DeepSeek brings to the table.

    “Cheaper AI, Pervasive AI: One of the potential first effects would be cheaper consumer AI, and a fall in the profit margins within the tech sector. But it could also accelerate disruption by making AI pervasive, bringing more sectors and more jobs under threat.

    “Cautious Optimism: It may be tempting to hope that open-source AI would lead to effects similar to what was seen in the 1990s when the dominance of Microsoft’s windows was challenged very well by open-source Linux. Yet, AI is not just software and computational resources – there is data too. So, there are further hurdles to overcome. We could view this development with optimism, but we must be cautious. For example, the ethos of the open-source movement was diluted with corporate players substantively entering the system leading to what has been called a ‘Corporate dominance in Open Source Ecosystems’ [ https://dl.acm.org/doi/10.1145/3540250.3549117 ]. To develop, sustain and strengthen open-source ethos within AI would require many more developments in the same direction as DeepSeek.”

    Declared interests

    Prof Neil Lawrence: No conflicts.

    Dr Padmanabhan: None

    MIL OSI United Kingdom –

    January 29, 2025
  • MIL-OSI United Kingdom: Budget agreements secured

    Source: Scottish Government

    New funding for bus fares, drug services and free school meals.

    Agreements have been reached separately with the Scottish Liberal Democrats and Scottish Green Party to support the 2025-26 Budget.

    Finance Secretary Shona Robison has announced she will table amendments to the 2025-26 Budget Bill to allocate £16.7 million funding to:
    • Bolster drug and alcohol services, including £1 million for specialist support for babies born addicted to drugs
    • Begin a £2 bus fare cap pilot in one regional transport area
    • Further strengthen support for hospices from £4 million to £5 million
    • Increase Nature Restoration by £3 million to its highest ever level
    • Invest in targeted support for the College sector and protect Corseford College
    • Extend free school meal eligibility in S1-S3 in eight local authority areas for pupils in receipt of Scottish Child Payment
    • Offer flexibility for Orkney Island Council in terms of capital and resource funding

    Ms Robison said:

    “We are determined to deliver on the issues that matter most to the people of Scotland – and that is why this Budget invests in public services and in eradicating child poverty, acts in the face of the climate emergency, and supports jobs.

    “The First Minister was clear that we would bring forward a budget by Scotland for Scotland, and the negotiations we have taken forward have been in that spirit. These additional initiatives demonstrate the value of a progressive approach and dialogue.

    “During every stage of this process the Liberal Democrats and the Greens have engaged in our discussions in a positive and constructive manner.

    “Through seeking compromise I believe we are delivering a budget that will strengthen services and support our communities. With the agreements with these two parties now in place this will secure a majority in parliament in support of the Budget Bill.”

    Background

    Finance Secretary letter to Finance and Public Administration Committee

    Budget (Scotland) Bill

    The new initiatives will be funded through reallocation of funding for debt servicing in 2025-26, given that debt servicing costs will be lower than expected when the draft Budget was published; and an additional drawdown of £3 million from revenues raised from Scotwind, to support nature restoration.

    MIL OSI United Kingdom –

    January 29, 2025
  • MIL-OSI United Kingdom: Radio 1 Big Weekend is coming to Liverpool!

    Source: City of Liverpool

    Radio 1 Breakfast Show, Greg James has revealed that superstar Sam Fender will be headlining Radio 1’s Big Weekend 2025 which will be held in Liverpool from Friday 23 May – Sunday 25 May. Myles Smith, Wet Leg, Blossoms and Lola Young (following her debut UK #1 with ‘Messy’ as announced on Radio 1’s Official Chart last Friday) were also announced as the first acts set to perform.

    Over the course of the weekend, around 100 acts will take to the stage, from the biggest artists in the world to exciting new and emerging artists, performing across four stages: Radio 1 Main Stage, Radio 1 New Music Stage, Radio 1 Dance and BBC Introducing. With over 100,000 music fans expected to attend, the event promises to be an unforgettable music spectacular.

    The first artists to be announced are (in alphabetical order):

    • Blossoms
    • Lola Young
    • Myles Smith
    • Sam Fender
    • Wet Leg

    Radio 1’s Big Weekend, the station’s flagship live music event, kicks off the UK’s festival season by bringing some of the biggest UK and international artists to cities that may not otherwise host such a large scale event. From Taylor Swift in Norwich, Miley Cyrus in Middlesbrough, Stormzy in Exeter, Lana Del Rey in Hull, Ed Sheeran in Coventry, Bruno Mars in Derry/Londonderry, The 1975 in Dundee, and Sabrina Carpenter in Luton, music fans around the UK have seen superstar acts perform on their doorsteps. The festival shines a light on the surrounding area and provides a major boost to the local economy, with huge demand for tickets ensuring the event sells out almost immediately every year. Last year’s festival generated £7 million for the host city of Luton.

    This year, the BBC is working closely with Liverpool City Council to ensure that Radio 1’s Big Weekend 2025 is a safe and secure environment for all those attending the festival.

    Sam Fender says: “Excited to announce we’re coming to Liverpool for Radio 1’s Big Weekend in May. Thanks for inviting us – see you there!”

    Myles Smith says: “This is unreal. Big Weekend was always a dream of mine, and to be on the line-up again is insane. Thank you to everyone who’s been listening, supporting, and coming to shows. I couldn’t have done this without you. See you there!”

    Blossoms say: “We’re delighted that Radio 1 have invited us to play at this year’s Big Weekend. Even more so because it’s taking place in Liverpool, a city close to our hearts, where we’ve worked and recorded every single one of our albums since our debut in 2016. It’s going to be a really special weekend and we can’t wait to perform.”

    Lola Young says: “I can’t wait to play Radio 1’s Big Weekend. It’s going to get Messy! Me + the Liverpool crowd = One Big Weekend… see what I did there!!”

    Greg James says: “FINALLY…Radio 1 HAS COME BACK…to Liv…er…pooool!

    “The last time I was there I was doing a big game of Hide and Seek and was hidden in the Liver building for a week so it’ll be nice to see some daylight and enjoy it properly this time. We can’t wait to bring the biggest artists in the world to this brilliant city in May. Everyone’s going to LOVE the line-up!”

    Aled Haydn Jones, Head of Radio 1, says: “We’re thrilled to bring Radio 1’s Big Weekend 2025 to Liverpool. Liverpool’s vibrant music scene and rich history make it the perfect setting for this iconic event. With incredible artists already announced and more to be announced in the coming months, it’s set to be an unmissable weekend.”

    Councillor Liam Robinson, Leader of Liverpool City Council, says: “Radio 1’s Big Weekend has found the perfect home this year in Liverpool. Our music, our audiences and our history of delivering world class major events add up to what is certain to be an incredible three days this May.”

    Further information about Radio 1’s Big Weekend 2025, including headliners and full line-up and ticketing details will be announced on Radio 1 in the coming months.

    BBC Radio 1 will broadcast live from the festival site across the weekend, with performances and tracks available live and on demand across Radio 1’s iPlayer channel and BBC Sounds.

    Radio 1 and Liverpool City Council will be working together to try and make this the most sustainable outdoor live music event ever produced in the city in line with the BBC’s Sustainability programme and Liverpool’s status as the first UN Accelerator City for climate action. For more information about Liverpool please head to the Visit Liverpool website.

    MIL OSI United Kingdom –

    January 29, 2025
  • MIL-OSI United Kingdom: Council motion supports extension to lifespan of power stations Lancaster City Council has welcomed the recent decision to extend the operating lifespan of Heysham’s two nuclear power stations.

    Source: City of Lancaster

    Lancaster City Council has welcomed the recent decision to extend the operating lifespan of Heysham’s two nuclear power stations.

    Heysham One

    At a recent meeting of Full Council, the following motion was passed:

    This Council welcomes last month’s announcement that following a detailed technical review of the power stations, EDF’s licensee board has decided to extend generation dates for Heysham 1 by one year to 2027 and Heysham 2 by two years to 2030.

    This decision is great news for Heysham and the wider local community. The power stations are a provider of high skill, high wage jobs, and the extension of the generating life of the power stations secures employment for more than 1,500 staff and contractors. The power stations are anchor institutions, with supply chains and spending power boosting the local economy. They are also a major source of business rate revenue for the Council, whose significant contributions help secure a higher standard of local services and protect more Council jobs than would otherwise be possible.

    This decision is also excellent news nationally. Extending the generating lives of the Heysham stations will bolster the UK’s security of supply and support plans for the rapid expansion of renewables by helping to maintain grid stability. Nuclear power is a low carbon source of energy, and a key element of the Government’s strategy to provide clean power by 2030.   Ensuring the baseload with nuclear power also helps limit the UK’s dependence on imported gas, a regrettable situation which has caused an energy crisis and led to inflated household bills.

    Council has confidence in the safety considerations underpinning this decision. We note that ongoing generation from the stations will ultimately depend not on decisions by EDF, but on the outcome of future inspections, the results of which are reviewed by the independent regulator, the Office for Nuclear Regulation.  

    Looking to the future, Council notes that Heysham is a location earmarked by the Government for the potential siting of one or more Small Modular Reactors (SMR), that EDF is an approved development partner for these new technologies, and that the first reactors of this type are intended to be delivered by 2029. Council supports bringing ‘New Nuclear’ to Heysham and welcomes the continuation of the benefits this would bring to both our residents and the rest of the UK.

    Council resolves that:

    1. The Chief Executive will write to the Secretary” of State for Energy and Climate Change, Cat Smith MP and Lizzi Collinge MP, welcoming the generating life extensions to Heysham 1 & 2, and conveying our support for bringing New Nuclear to Heysham and a timeline for this project to achieve, so we can plan for the future engineers and the stability of the Council.
       
    2. That we publicise these views via our various communications channels.
       
    3. That a full response to any consultation on New Nuclear is prepared on behalf of the Council by Business Committee at the appropriate time.

    Last updated: 28 January 2025

    MIL OSI United Kingdom –

    January 29, 2025
  • MIL-OSI United Kingdom: Statement on Vintage by the Sea 2025 Following Friday’s announcement regarding Vintage by the Sea 2025, Lancaster City Council has released the following statement.

    Source: City of Lancaster

    Following Friday’s announcement regarding Vintage by the Sea 2025, Lancaster City Council has released the following statement.

    Councillor Caroline Jackson, leader of Lancaster City Council, said: “We are all deeply saddened by the announcement about Vintage by the Sea and know this was not an easy decision for the organisers, who have put so much into the event over the years to make it a success.

    “From a city council perspective we were once again looking forward to supporting the festival, but we are just one of the festival’s funders and recognise that the landscape is tough and other organisations may have had to alter their priorities due to the current state of the economy.

    “Although it is disappointing that the event will not take place in 2025, the door is still open for the future and the council will provide both Deco Publique and Hemingway Design with every encouragement and help they need to return in the future.

    “We are also looking forward to working with Deco on other projects separate from Vintage by the Sea and together we are exploring a number of exciting opportunities.

    “The council also remains committed to supporting other festival and event organisers and only recently agreed to fund Baylight to the tune of £15,000 in direct funding as well as ‘in-kind’ support equal to £15,000, which will cover costs associated with public safety such as road closure and barriers.

    “Without this support the event may not have taken place in 2025 and is an example of how the city council is supporting the arts and events sector.”

    Last updated: 28 January 2025

    MIL OSI United Kingdom –

    January 29, 2025
  • MIL-OSI Russia: Sobyanin: The capital’s emergency response system is constantly being improved

    Translartion. Region: Russians Fedetion –

    Source: Moscow Government – Government of Moscow –

    The capital’s emergency response system is constantly being improved. This was reported in its telegram channel Sergei Sobyanin reported.

    “This allows us to reduce the number of fires and accidents on water and the number of victims every year,” the Mayor of Moscow wrote.

    Source: Sergei Sobyanin’s Telegram channel @Mos_Sobyanin 

    The city is introducing new methods of interaction, mastering samples of modern technology, and developing the infrastructure of the fire and rescue garrison. big job for personnel training. In addition, a unique joint mobile group, which included specialists from engineering and municipal enterprises of the city economy.

    “The Moscow city system for preventing and eliminating emergency situations is capable of resolving issues of national importance. In particular, the capital’s specialists are restoring the infrastructure of Lugansk and Donetsk, and were among the first to come to the aid of residents of the Kursk region,” noted Sergei Sobyanin.

    Every day, more than 1,400 firefighters and rescuers are on duty, armed with about 700 units of equipment.

    In 2024, the capital purchased 132 units of modern equipment to equip fire and rescue units. Among them are airboats, fire trucks-bases of the gas and smoke protection service, aerial ladders, fire trucks, command vehicles, and an all-terrain vehicle. The new equipment will help ensure the safety of the multi-million city even better.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    Please Note; This Information is Raw Content Directly from the Information Source. It is access to What the Source Is Stating and Does Not Reflect

    https: //vv.mos.ru/mayor/tkhemes/12322050/

    MIL OSI Russia News –

    January 29, 2025
  • MIL-OSI: Purpose Investments Inc. Announces Final January 2025 Distribution Rate for Purpose High Interest Savings Fund, Purpose US Cash Fund, Purpose Cash Management Fund, and Purpose USD Cash Management Fund

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Jan. 28, 2025 (GLOBE NEWSWIRE) — Purpose Investments Inc. announced today the final January 2025 distribution rates for Purpose High Interest Savings Fund, Purpose US Cash Fund, Purpose Cash Management Fund, and Purpose USD Cash Management Fund.

    The following table reflects the final distribution amounts for the month of December. Ex-distribution date is January 29, 2025.

    Open-End Fund Ticker Symbol Final distribution per unit Record Date Payable Date Distribution Frequency
    Purpose USD Cash Management Fund – ETF Units MNU.U US $ 0.3689 01/29/2025 02/04/2025 Monthly
    Purpose Cash Management Fund – ETF Units MNY $0.3003 01/29/2025 02/04/2025 Monthly
    Purpose High Interest Savings Fund – ETF Units PSA $0.1286 01/29/2025 02/04/2025 Monthly
    Purpose US Cash Fund – ETF Units PSU.U US $ 0.3464 01/29/2025 02/04/2025 Monthly

    About Purpose Investments Inc.

    Purpose Investments Inc. is an asset management company with more than $23 billion in assets under management. Purpose Investments has an unrelenting focus on client-centric innovation and offers a range of managed and quantitative investment products. Purpose Investments is led by well-known entrepreneur Som Seif and is a division of Purpose Unlimited, an independent technology-driven financial services company.

    For further information, please contact:
    Keera Hart
    Keera.Hart@kaiserpartners.com
    905-580-1257

    Commissions, trailing commissions, management fees, and expenses may all be associated with investment fund investments. Please read the prospectus and other disclosure documents before investing. Investment funds are not covered by the Canada Deposit Insurance Corporation or any other government deposit insurer. There can be no assurance that the full amount of your investment in a fund will be returned to you. If the securities are purchased or sold on a stock exchange, you may pay more or receive less than the current net asset value. Investment funds are not guaranteed; their values change frequently, and past performance may not be repeated.

    The MIL Network –

    January 29, 2025
  • MIL-OSI: CareCloud to Present at The Microcap Conference 2025

    Source: GlobeNewswire (MIL-OSI)

    Somerset, NJ, Jan. 28, 2025 (GLOBE NEWSWIRE) — CareCloud, Inc. (the “Company”) (Nasdaq: CCLD, CCLDO, CCLDP), a leading provider of healthcare technology and generative AI solutions for medical practices and health systems nationwide, is pleased to announce its participation in The Microcap Conference 2025, the premier event for growth-focused companies and investors. The conference will take place January 28-30, 2025 at the Borgata Hotel Spa & Casino in Atlantic City, NJ.

    CareCloud’s management team will deliver a corporate presentation highlighting the Company’s recent developments, innovative solutions, and strategic growth initiatives. Additionally, the team will participate in one-on-one meetings with institutional and individual investors to explore opportunities and discuss CareCloud’s roadmap for continued growth and value creation.

    “We are excited to discuss CareCloud’s many recent milestones, including the imminent resumption of our Preferred Stock dividends in February 2025, the overwhelming support we received from shareholders in our most recent proxy to increase our authorized common shares, and our strong profitability growth during 2024,” said Stephen Snyder, Co-CEO of CareCloud. “These achievements, together with our stock performance over the last year, reflect investor confidence in our strategy and execution.”

    About The Microcap Conference 2025

    The Microcap Conference is the largest independent microcap event in the U.S., bringing together top-tier investors and executives from growth-oriented companies. The event provides an unparalleled platform for companies to showcase their value propositions through corporate presentations, expert panels, and networking opportunities.

    The 2025 conference highlights include:

    • Keynote Speakers: Renowned industry leaders, including Jon Ledecky, Co-Owner of the New York Islanders, and Tom Gardner, CEO of Motley Fool, will share their insights on investing and market trends.
    • Expert Panels and Presentations: Financial commentators Ron Insana (CNBC) and Charlie Gasparino (FOX Business) will cover pressing topics, including capital formation, regulatory updates, and equity market trends.
    • Entertainment Headliner: Comedian and Netflix star Tom Papa will headline an evening performance, adding a touch of entertainment to the event.

    Hosted by DealFlow Events, The Microcap Conference is celebrated for combining high-quality financial insights with engaging networking and entertainment experiences. For more information, visit The Microcap Conference.

    About CareCloud

    CareCloud brings disciplined innovation to the business of healthcare. Our suite of technology-enabled solutions helps clients increase financial and operational performance, streamline clinical workflows and improve the patient experience. More than 40,000 providers count on CareCloud to help them improve patient care, while reducing administrative burdens and operating costs. Learn more about our products and services, including revenue cycle management (RCM), practice management (PM), electronic health records (EHR), business intelligence, patient experience management (PXM) and digital health at www.carecloud.com.

    To listen to video presentations by CareCloud’s management team, read recent press releases and view our latest investor presentation, please visit ir.carecloud.com.

    Follow CareCloud on LinkedIn, X and Facebook.

    Forward-Looking Statements

    This press release contains various forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to anticipated future events, future results of operations or future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “might,” “will,” “shall,” “should,” “could,” “intends,” “expects,” “plans,” “goals,” “projects,” “anticipates,” “believes,” “seeks,” “estimates,” “forecasts,” “predicts,” “possible,” “potential,” “target,” or “continue” or the negative of these terms or other comparable terminology.

    Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Forward-looking statements in this press release include, without limitation, statements reflecting management’s expectations for future financial performance and operating expenditures, expected growth, profitability and business outlook, the impact of pandemics on our financial performance and business activities, and the expected results from the integration of our acquisitions.

    These forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are only predictions, are uncertain and involve substantial known and unknown risks, uncertainties and other factors which may cause our (or our industry’s) actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all of the risks and uncertainties that could have an impact on the forward-looking statements, including without limitation, risks and uncertainties relating to the Company’s ability to manage growth, migrate newly acquired customers and retain new and existing customers, maintain cost-effective global operations, increase operational efficiency and reduce operating costs, predict and properly adjust to changes in reimbursement and other industry regulations and trends, retain the services of key personnel, develop new technologies, upgrade and adapt legacy and acquired technologies to work with evolving industry standards, compete with other companies’ products and services competitive with ours, and other important risks and uncertainties referenced and discussed under the heading titled “Risk Factors” in the Company’s filings with the Securities and Exchange Commission.

    The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligations to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

    SOURCE CareCloud

    Company Contact:
    Norman Roth
    Interim Chief Financial Officer and Corporate Controller
    CareCloud, Inc.
    nroth@carecloud.com

    Investor Contact:
    Stephen Snyder
    Co-Chief Executive Officer
    CareCloud, Inc.
    ir@carecloud.com

    The MIL Network –

    January 29, 2025
  • MIL-OSI: Capital City Bank Group, Inc. Reports Fourth Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    TALLAHASSEE, Fla., Jan. 28, 2025 (GLOBE NEWSWIRE) — Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income attributable to common shareowners of $13.1 million, or $0.77 per diluted share, for the fourth quarter of 2024 compared to $13.1 million, or $0.77 per diluted share, for the third quarter of 2024, and $11.7 million, or $0.70 per diluted share, for the fourth quarter of 2023.

    For the full year of 2024, net income attributable to common shareowners totaled $52.9 million, or $3.12 per diluted share, compared to net income of $52.3 million, or $3.07 per diluted share, for the same period of 2023.

    QUARTER HIGHLIGHTS (4thQuarter 2024 versus 3rdQuarter 2024)

    Income Statement

    • Tax-equivalent net interest income totaled $41.2 million compared to $40.3 million for the prior quarter
      • Net interest margin increased 5 basis points to 4.17% (total deposit costs down 6 basis points partially offset by a 1 basis point decrease in earning asset yield).
    • Stable credit quality metrics and credit loss provision – net loan charge-offs were 25 basis points (annualized) of average loans – allowance coverage ratio was 1.10% at December 31, 2024
    • Noninterest income decreased $0.8 million, or 3.9%, driven by lower mortgage banking revenues
    • Noninterest expense decreased $1.1 million, or 2.7%, primarily due to lower other expense which included a gain from the sale of a banking office

    Balance Sheet

    • Loan balances decreased $16.1 million, or 0.6% (average), and $31.5 million, or 1.2% (end of period)
    • Deposit balances increased $28.4 million, or 0.8% (average), and increased $92.9 million, or 2.6% (end of period), reflective of the seasonal increase in public fund balances
    • Tangible book value per share increased $1.05, or 4.6%, due in part to a favorable year-end re-measurement adjustment for the pension plan ($0.60 per diluted share)

    FULL YEAR 2024 HIGHLIGHTS

    Income Statement

    • Tax-equivalent net interest income totaled $159.2 million for 2024 compared to $159.4 million for 2023 driven by higher yields across our earning assets, partially offset by higher deposit cost which was well controlled at 89 basis points for the year – net interest margin was 4.08% for 2024 compared to 4.05% for 2023
    • Credit quality metrics remained strong throughout the year – allowance coverage ratio remained stable at 1.10% – net loan charge-offs were 21 basis points of average loans for 2024 versus 18 basis points for 2023
    • Noninterest income increased $4.4 million, or 6.1%, driven by higher mortgage banking revenues and wealth management fees
    • Noninterest expense increased $8.3 million, or 5.3%, primarily due to higher compensation expense reflective of higher incentive compensation, merit raises, and higher health insurance costs

    Balance Sheet

    • Loan balances increased $50.1 million, or 1.9% (average), and decreased $82.4 million, or 3.0% (end of period)
    • Deposit balances decreased $72.2 million, or 2.0% (average), and decreased $29.8 million, or 0.8% (end of period)
    • Tangible book value per share increased $3.20, or 15.6%, driven by strong earnings and favorable investment security and pension plan accumulated other comprehensive loss adjustments

    “In 2024, we delivered record earnings and advanced our commitment to creating shareholder value, which is demonstrated by a 15.6% increase in tangible book value per share, a 15.8% increase in the dividend, and the repurchase of 83,000 shares,” said William G. Smith, Jr., President, Chairman and CEO of Capital City Bank Group. “Our associates also earned us recognition for the 12th consecutive year as one of the best banks to work for—an achievement that underscores the strength of our organization and the core values we embrace. We remain focused on soundness, profitability, growth, and making strategic investments that add long-term value. Our fortress balance sheet, diversified revenues, and growth markets together position us well for 2025 and beyond.”

    Discussion of Operating Results

    Net Interest Income/Net Interest Margin

    Tax-equivalent net interest income for the fourth quarter of 2024 totaled $41.2 million, compared to $40.3 million for the third quarter of 2024, and $39.3 million for the fourth quarter of 2023. For 2024, tax-equivalent net interest income totaled $159.2 million compared to $159.4 million for 2023. Compared to the third quarter of 2024, the increase reflected higher investment securities interest due to new investment purchases at higher yields, in addition to lower deposit interest expense, partially offset by lower loan interest due to lower balances. Compared to 2023, the slight decrease reflected an increase in deposit interest expense and a decrease in investment securities interest that was offset by increases in loan interest and overnight funds interest.

    Our net interest margin for the fourth quarter of 2024 was 4.17%, an increase of five basis points over the third quarter of 2024 and an increase of 10 basis points over the fourth quarter of 2023. For the month of December 2024, our net interest margin was 4.18%. For 2024, our net interest margin was 4.08%, an increase of three basis points over 2023. Compared to the third quarter of 2024, the increase reflected higher yield in the investment portfolio driven by new purchases during the quarter, in addition to lower deposit interest expense. The increase over 2023 reflected a combination of earning assets re-pricing at higher interest rates and higher average loan balances, partially offset by a higher cost of deposits. For the fourth quarter of 2024, our cost of funds was 88 basis points, a decrease of five basis points from the third quarter of 2024 and an increase of 15 basis points over the fourth quarter of 2023. Our total cost of deposits (including noninterest bearing accounts) was 86 basis points, 92 basis points, and 66 basis points, respectively, for the same periods.

    Provision for Credit Losses

    We recorded a provision expense for credit losses of $0.7 million for the fourth quarter of 2024 compared to $1.2 million for the third quarter of 2024 and $2.0 million for the fourth quarter of 2023. Compared to the third quarter of 2024, the provision expense reflected a $0.8 million decrease in the provision for loans held for investment (“HFI”) and a $0.3 million decrease in the provision benefit for unfunded loan commitments. The decrease in the provision for loans HFI was primarily due to lower loan balances and slightly lower loss rates.

    For 2024, we recorded a provision expense for credit losses of $4.0 million compared to $9.7 million for 2023. The decrease reflected a $4.5 million decrease in the provision for loans HFI and a $1.2 million decrease in the provision for unfunded loan commitments. The decrease in the provision for loans HFI was primarily due to lower new loan volume and loan balances in 2024 and favorable loan grade migration. The decrease in the provision for unfunded loan commitments reflected a lower level of loan commitments. We discuss the allowance for credit losses further below.

    Noninterest Income and Noninterest Expense

    Noninterest income for the fourth quarter of 2024 totaled $18.8 million compared to $19.5 million for the third quarter of 2024 and $17.2 million for the fourth quarter of 2023. Compared to the third quarter of 2024, the $0.7 million decrease from the third quarter of 2024 reflected a $0.8 million decrease in mortgage banking revenues attributable to lower production volume and a $0.3 million decrease in deposit fees that was partially offset by a $0.4 million increase in wealth management fees, primarily from retail brokerage. The $1.6 million increase over the fourth quarter of 2023 was driven by higher mortgage banking revenues of $0.8 million driven by a higher gain on sale margin and wealth management fees of $0.9 million, primarily from retail brokerage and to a lesser extent trust.

    For 2024, noninterest income totaled $76.0 million compared to $71.6 million for 2023, primarily attributable to a $3.9 million increase in mortgage banking revenues and a $2.8 million increase in wealth management fees, partially offset by a $2.2 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 2023, and to a lesser extent a decrease in vendor bonus income and miscellaneous income.

    Noninterest expense for the fourth quarter of 2024 totaled $41.8 million compared to $42.9 million for the third quarter of 2024 and $40.0 million for the fourth quarter of 2023. The $1.1 million decrease from the third quarter of 2024 was primarily attributable to lower other expense of $1.2 million and occupancy expense of $0.2 million that was partially offset by a $0.3 million increase in compensation expense. The decrease in other expense was primarily attributable to a $1.0 million decrease in other real estate expense driven by the sale of a banking office and lower miscellaneous expense of $0.5 million which reflected a non-routine VISA Class B swap payment in the third quarter of 2024. The decrease in occupancy expense reflected lower property tax and software license expense. The increase in compensation was driven by higher incentive plan compensation. Compared to the fourth quarter of 2023, the $1.8 million increase was driven by a $2.3 million increase in compensation expense that was partially offset by a $0.2 million decrease in occupancy expense and a $0.3 million decrease in other expense. The unfavorable variance in compensation expense reflected a $1.4 million increase in salary expense and a $0.9 million increase in other benefit expense with the salary expense driven by higher incentive compensation and merit adjustments and the associate benefit expense reflective of higher health insurance cost.

    For 2024, noninterest expense totaled $165.3 million compared to $157.0 million for 2023, primarily attributable to increases in compensation expense of $6.9 million, occupancy expense of $0.3 million, and other expense of $1.1 million. The increase in compensation reflected a $5.4 million increase in salary expense and a $1.6 million increase in other 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 $3.1 million (lower new loan volume), higher base salary expense of $2.2 million (primarily annual merit raises), and a $1.2 million increase in cash incentive compensation that was partially offset by lower commission expense of $1.4 million (lower residential mortgage volume). The unfavorable variance in other associate benefit expense was due to a $0.9 million increase in associate insurance cost and a $0.6 million increase in stock compensation expense. The increase in occupancy expense was attributable to increases in software license and maintenance agreement expenses. The increase in other expense was driven by a $1.1 million increase in other real estate expense and a $1.4 million increase in processing expense that was partially offset by a $1.4 million decrease in miscellaneous expense. The increase in other real estate expense reflected a lower level of gains from the sale of banking offices in 2024. The increase in processing expense reflected both inflationary increases on contract renewals and the outsourcing of our core processing system. The decrease in miscellaneous expense was attributable to lower pension plan expense for the non-service related component of the plan.

    Income Taxes

    We realized income tax expense of $4.2 million (effective rate of 24.3%) for the fourth quarter of 2024 compared to $3.0 million (effective rate of 19.1%) for the third quarter of 2024 and $2.9 million (effective rate of 20.3%) for the fourth quarter of 2023. Compared to the third quarter of 2024, the increase in our effective tax rate was attributable to a lower than projected level of pre-tax income from Capital City Home Loans (“CCHL”) in relation to our consolidated income as the non-controlling interest adjustment for CCHL is accounted for as a permanent tax adjustment. Further, we realized a higher than projected Internal Revenue Code (“IRC”) Section 162(m) limitation related to current and future compensation. For 2024, we realized income tax expense of $13.9 million (effective rate of 21.2%) compared to $13.0 million (effective rate of 20.4%) for 2023 with the increase in the effective tax rate primarily attributable to a higher IRC Section 162(m) limitation and lower tax-exempt interest income. Absent discrete items or new tax credit investments, we expect our annual effective tax rate to approximate 24% for 2025.

    Discussion of Financial Condition

    Earning Assets

    Average earning assets totaled $3.922 billion for the fourth quarter of 2024, an increase of $38.5 million, or 1.0 %, over the third quarter of 2024, and an increase of $97.9 million, or 2.6%, over the fourth quarter of 2023. The increase over both prior periods was primarily driven by higher deposit balances (see below – Deposits). Compared to the third quarter of 2024, the change in earning asset mix was primarily attributable to a $41.4 million increase in short term investments (overnight funds sold), a $6.7 million increase in investment securities, and $6.5 million increase in loans held for sale, partially offset by a $16.1 million decrease in loans HFI. Compared to the fourth quarter of 2023, the change in earning asset mix reflected a $198.4 million increase in short term investments (overnight funds sold) that was partially offset by a $48.0 million decrease in investment securities, a $33.8 million decrease in loans HFI, and a $18.7 million decrease in loans held for sale.

    Average loans HFI for the fourth quarter of 2024 decreased $16.1 million, or 0.6%, from the third quarter of 2024 and decreased $33.8 million, or 1.3%, from the fourth quarter of 2023. Compared to the third quarter of 2024, the decline was primarily attributable to decreases in consumer loans (primarily indirect auto) of $18.3 million and commercial mortgage real estate loans of $24.1 million, partially offset by increases in construction real estate loans of $13.1 million, and residential real estate loans of $11.6 million. Compared to the fourth quarter of 2023, the decrease was driven by decreases in consumer loans (primarily indirect auto) of $72.8 million, commercial loans of $30.2 million, and commercial mortgage real estate loans of $25.3 million, partially offset by increases in residential real estate loans of $70.8 million, construction real estate loans of $16.6 million, and home equity loans of $10.2 million.

    Loans HFI at December 31, 2024 decreased $31.5 million, or 1.2%, from September 30, 2024 and decreased $82.4 million, or 3.0%, from December 31, 2023. Compared to September 30, 2024, the decrease was driven by decreases in commercial mortgage real estate loans of $40.9 million, consumer loans (primarily indirect auto) of $13.8 million, and commercial loans of $5.4 million, partially offset by increases in home equity loans of $9.1 million, other loans of $13.5 million, and residential real estate loans of $5.0 million. Compared to December 31, 2023, the decrease was primarily attributable to decreases in consumer loans (primarily indirect auto) of $71.5 million, commercial mortgage real estate loans of $46.4 million, and commercial loans of $36.0 million, partially offset by increases in residential real estate loans of $27.2 million, construction real estate loans of $23.9 million, and home equity loans of $9.1 million.

    Allowance for Credit Losses

    At December 31, 2024, the allowance for credit losses for loans HFI totaled $29.3 million compared to $29.8 million at September 30, 2024 and $29.9 million at December 31, 2023. Activity within the allowance is provided on Page 9. The decreases in the allowance from September 30, 2024 and December 31, 2023 were primarily attributable to lower loan balances and favorable loan migration. Net loan charge-offs were 25 basis points of average loans for the fourth quarter of 2024 versus 19 basis points for the third quarter of 2024. For 2024, net loan charge-offs were 21 basis points of average loans compared to 18 basis points in 2023. At December 31, 2024, the allowance represented 1.10% of loans HFI compared to 1.11% at September 30, 2024, and 1.10% at December 31, 2023.

    Credit Quality

    Nonperforming assets (nonaccrual loans and other real estate) totaled $6.7 million at December 31, 2024 compared to $7.2 million at September 30, 2024 and $6.2 million at December 31, 2023. At December 31, 2024, nonperforming assets as a percent of total assets equaled 0.15%, compared to 0.17% at September 30, 2024 and 0.15% at December 31, 2023. Nonaccrual loans totaled $6.3 million at December 31, 2024, a $0.3 million decrease from September 30, 2024 and a $0.1 million increase over December 31, 2023. Further, classified loans totaled $19.9 million at December 31, 2024, a $5.6 million decrease from September 30, 2024 and a $2.3 million decrease from December 31, 2023.

    Deposits

    Average total deposits were $3.600 billion for the fourth quarter of 2024, an increase of $28.4 million, or 0.8%, over the third quarter of 2024 and an increase of $51.9 million, or 1.5%, over the fourth quarter of 2023. Compared to the third quarter of 2024, the increase was primarily attributable to higher NOW account balances which reflected the seasonal inflow of public funds from municipal clients as they receive their tax receipts beginning in late November. The increase over the fourth quarter of 2023 reflected higher NOW, MMA, and certificates of deposit (“CD”) balances that were partially offset by decreases in noninterest bearing and savings balances. During 2024, we realized a re-mix in deposits as rate sensitive clients sought higher yield deposit products. Average core deposit balances (total deposits less public funds) increased $20.3 million over the third quarter of 2024 and $28.4 million over the fourth quarter of 2023.

    At December 31, 2024, total deposits were $3.672 billion, an increase of $92.9 million, or 2.6%, over September 30, 2024 and a decrease of $29.8 million, or 0.8%, from December 31, 2023. Compared to the third quarter of 2024, the increase was primarily due to a $110.7 million increase in NOW account balances which reflected the aforementioned seasonal inflow of public funds balances. The decrease from the fourth quarter of 2023 was driven by lower noninterest bearing, NOW, and savings account balances that were partially offset by higher MMA and CD balances which reflected the aforementioned re-mix in balances during 2024. Core deposit balances (total deposits less public funds) decreased $50.3 million from the third quarter of 2024 and increased $21.9 million over the fourth quarter of 2023.

    Liquidity

    The Bank maintained an average net overnight funds (deposits with banks plus FED funds sold less FED funds purchased) sold position of $298.3 million in the fourth quarter of 2024 compared to $256.9 million in the third quarter of 2024 and $99.8 million in the fourth quarter of 2023. Compared to both prior periods, the increases reflected growth in average core and public fund deposit balances.

    At December 31, 2024, we had the ability to generate approximately $1.535 billion (excludes overnight funds position of $321 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 and have the option to pledge securities in our portfolio as collateral for borrowings or deposits, and/or to sell selected securities. Our portfolio consists of debt issued by the U.S. Treasury, U.S. governmental agencies, municipal governments, and corporate entities. At December 31, 2024, the weighted-average maturity and duration of our portfolio were 2.54 years and 2.19 years, respectively, and the available-for-sale portfolio had a net unrealized after-tax loss of $19.2 million.

    Capital

    Shareowners’ equity was $495.3 million at December 31, 2024 compared to $476.5 million at September 30, 2024 and $440.6 million at December 31, 2023. For the fourth quarter of 2024, shareowners’ equity was positively impacted by net income attributable to common shareowners of $13.1 million, a net $7.6 million decrease in the accumulated other comprehensive loss, the issuance of stock of $0.9 million, stock compensation accretion of $0.7 million, and a $0.4 million reclassification from temporary equity (concurrent with the agreement to assign the minority membership interest (49%) in Capital City Home Loans, LLC, temporary equity was reclassified to other liabilities and included a $0.4 million net credit to retained earnings to account for the difference between the fair value and the book value of the minority interest). The net favorable change in accumulated other comprehensive loss reflected a $10.1 million decrease in the pension plan loss from the year-end re-measurement of the plan and a $0.7 million increase in the fair value of the interest rate swap related to subordinated debt, that was partially offset by a $3.2 million increase in the investment securities loss. Shareowners’ equity was reduced by common stock dividends of $3.9 million ($0.23 per share).

    For the full year 2024, shareowners’ equity was positively impacted by net income attributable to common shareowners of $52.9 million, a net $15.7 million decrease in the accumulated other comprehensive loss, the issuance of stock of $3.1 million, and stock compensation accretion of $1.9 million. The net favorable change in accumulated other comprehensive loss reflected a $10.1 million decrease in the pension plan loss from the year-end re-measurement of the plan and a $5.6 million decrease in the investment securities loss. Shareowners’ equity was reduced by common stock dividends of $14.9 million ($0.88 per share), the repurchase of stock of $2.3 million (82,540 shares), net adjustments totaling $1.4 million related to transactions under our stock compensation plans, and a $0.3 million reclassification from temporary equity.

    At December 31, 2024, our total risk-based capital ratio was 18.77% compared to 17.97% at September 30, 2024 and 16.57% at December 31, 2023. Our common equity tier 1 capital ratio was 15.64%, 14.88%, and 13.52%, respectively, on these dates. Our leverage ratio was 11.05%, 10.89%, and 10.30%, respectively, on these dates. At December 31, 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 was 9.55% at December 31, 2024 compared to 9.28% and 8.26% at September 30, 2024 and December 31, 2023, respectively. If our unrealized held-to-maturity securities losses of $16.0 million (after-tax) were recognized in accumulated other comprehensive loss, our adjusted tangible capital ratio would be 9.17%.

    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 $4.3 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 104 ATMs/ITMs in Florida, Georgia and Alabama. For more information about Capital City Bank Group, Inc., visit 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 generally; 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 and any deficiencies in the processes undertaken to effect such restatements; 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) Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023
    Shareowners’ Equity (GAAP)   $ 495,317   $ 476,499   $ 460,999   $ 448,314   $ 440,625  
    Less: Goodwill and Other Intangibles (GAAP)     92,773     92,813     92,853     92,893     92,933  
    Tangible Shareowners’ Equity (non-GAAP) A   402,544     383,686     368,146     355,421     347,692  
    Total Assets (GAAP)     4,307,142     4,225,316     4,225,695     4,259,922     4,304,477  
    Less: Goodwill and Other Intangibles (GAAP)     92,773     92,813     92,853     92,893     92,933  
    Tangible Assets (non-GAAP) B $ 4,214,369   $ 4,132,503   $ 4,132,842   $ 4,167,029   $ 4,211,544  
    Tangible Common Equity Ratio (non-GAAP) A/B   9.55 %   9.28 %   8.91 %   8.53 %   8.26 %
    Actual Diluted Shares Outstanding (GAAP) C   17,018,122     16,980,686     16,970,228     16,947,204     17,000,758  
    Tangible Book Value per Diluted Share (non-GAAP) A/C $ 23.65   $ 22.60   $ 21.69   $ 20.97   $ 20.45  
    CAPITAL CITY BANK GROUP, INC.                      
    EARNINGS HIGHLIGHTS                      
    Unaudited                      
                           
        Three Months Ended   Twelve Months Ended  
    (Dollars in thousands, except per share data)   Dec 31, 2024   Sep 30, 2024   Dec 31, 2023   Dec 31, 2024   Dec 31, 2023  
    EARNINGS                      
    Net Income Attributable to Common Shareowners $ 13,090 $ 13,118 $ 11,720   52,915 $ 52,258  
    Diluted Net Income Per Share $ 0.77 $ 0.77 $ 0.70   3.12 $ 3.07  
    PERFORMANCE                      
    Return on Average Assets (annualized)   1.22 % 1.24 % 1.12 % 1.25 % 1.22 %
    Return on Average Equity (annualized)   10.60   10.87   10.69   11.18   12.40  
    Net Interest Margin   4.17   4.12   4.07   4.08   4.05  
    Noninterest Income as % of Operating Revenue   31.34   32.67   30.46   32.34   31.05  
    Efficiency Ratio   69.74 % 71.81 % 70.82 % 70.30 % 67.99 %
    CAPITAL ADEQUACY                      
    Tier 1 Capital   17.58 % 16.77 % 15.37 % 17.58 % 15.37 %
    Total Capital   18.77   17.97   16.57   18.77   16.57  
    Leverage   11.05   10.89   10.30   11.05   10.30  
    Common Equity Tier 1   15.64   14.88   13.52   15.64   13.52  
    Tangible Common Equity (1)   9.55   9.28   8.26   9.55   8.26  
    Equity to Assets   11.50 % 11.28 % 10.24 % 11.50 % 10.24 %
    ASSET QUALITY                      
    Allowance as % of Non-Performing Loans   464.14 % 452.64 % 479.70 % 464.14 % 479.70 %
    Allowance as a % of Loans HFI   1.10   1.11   1.10   1.10   1.10  
    Net Charge-Offs as % of Average Loans HFI   0.25   0.19   0.23   0.21   0.18  
    Nonperforming Assets as % of Loans HFI and OREO   0.25   0.27   0.23   0.25   0.23  
    Nonperforming Assets as % of Total Assets   0.15 % 0.17 % 0.15 % 0.15 % 0.15 %
    STOCK PERFORMANCE                      
    High $ 40.86 $ 36.67 $ 32.56   40.86 $ 36.86  
    Low   33.00   26.72   26.12   25.45   26.12  
    Close $ 36.65 $ 35.29 $ 29.43   36.65 $ 29.43  
    Average Daily Trading Volume   27,484   37,151   33,297   31,390   33,775  
                           
    (1) Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 7.        
                           
    CAPITAL CITY BANK GROUP, INC.                    
    CONSOLIDATED STATEMENT OF FINANCIAL CONDITION            
    Unaudited                    
                         
      2024
    2023
    (Dollars in thousands) Fourth Quarter   Third Quarter   Second Quarter   First Quarter   Fourth Quarter
    ASSETS                    
    Cash and Due From Banks $ 70,543   $ 83,431   $ 75,304   $ 73,642   $ 83,118  
    Funds Sold and Interest Bearing Deposits   321,311     261,779     272,675     231,047     228,949  
    Total Cash and Cash Equivalents   391,854     345,210     347,979     304,689     312,067  
                         
    Investment Securities Available for Sale   403,345     336,187     310,941     327,338     337,902  
    Investment Securities Held to Maturity   567,155     561,480     582,984     603,386     625,022  
    Other Equity Securities   2,399     6,976     2,537     3,445     3,450  
    Total Investment Securities   972,899     904,643     896,462     934,169     966,374  
                         
    Loans Held for Sale   28,672     31,251     24,022     24,705     28,211  
                         
    Loans Held for Investment (“HFI”):                    
    Commercial, Financial, & Agricultural   189,208     194,625     204,990     218,298     225,190  
    Real Estate – Construction   219,994     218,899     200,754     202,692     196,091  
    Real Estate – Commercial   779,095     819,955     823,122     823,690     825,456  
    Real Estate – Residential   1,028,498     1,023,485     1,012,541     1,012,791     1,001,257  
    Real Estate – Home Equity   220,064     210,988     211,126     214,617     210,920  
    Consumer   199,479     213,305     234,212     254,168     270,994  
    Other Loans   14,006     461     2,286     3,789     2,962  
    Overdrafts   1,206     1,378     1,192     1,127     1,048  
    Total Loans Held for Investment   2,651,550     2,683,096     2,690,223     2,731,172     2,733,918  
    Allowance for Credit Losses   (29,251 )   (29,836 )   (29,219 )   (29,329 )   (29,941 )
    Loans Held for Investment, Net   2,622,299     2,653,260     2,661,004     2,701,843     2,703,977  
                         
    Premises and Equipment, Net   81,952     81,876     81,414     81,452     81,266  
    Goodwill and Other Intangibles   92,773     92,813     92,853     92,893     92,933  
    Other Real Estate Owned   367     650     650     1     1  
    Other Assets   116,326     115,613     121,311     120,170     119,648  
    Total Other Assets   291,418     290,952     296,228     294,516     293,848  
    Total Assets $ 4,307,142   $ 4,225,316   $ 4,225,695   $ 4,259,922   $ 4,304,477  
    LIABILITIES                    
    Deposits:                    
    Noninterest Bearing Deposits $ 1,306,254   $ 1,330,715   $ 1,343,606   $ 1,361,939   $ 1,377,934  
    NOW Accounts   1,285,281     1,174,585     1,177,180     1,212,452     1,327,420  
    Money Market Accounts   404,396     401,272     413,594     398,308     319,319  
    Savings Accounts   506,766     507,604     514,560     530,782     547,634  
    Certificates of Deposit   169,280     164,901     159,624     151,320     129,515  
    Total Deposits   3,671,977     3,579,077     3,608,564     3,654,801     3,701,822  
                         
    Repurchase Agreements   26,240     29,339     22,463     23,477     26,957  
    Other Short-Term Borrowings   2,064     7,929     3,307     8,409     8,384  
    Subordinated Notes Payable   52,887     52,887     52,887     52,887     52,887  
    Other Long-Term Borrowings   794     794     1,009     265     315  
    Other Liabilities   57,863     71,974     69,987     65,181     66,080  
    Total Liabilities   3,811,825     3,742,000     3,758,217     3,805,020     3,856,445  
                         
    Temporary Equity   –     6,817     6,479     6,588     7,407  
    SHAREOWNERS’ EQUITY                    
    Common Stock   170     169     169     169     170  
    Additional Paid-In Capital   37,684     36,070     35,547     34,861     36,326  
    Retained Earnings   463,949     454,342     445,959     435,364     426,275  
    Accumulated Other Comprehensive Loss, Net of Tax   (6,486 )   (14,082 )   (20,676 )   (22,080 )   (22,146 )
    Total Shareowners’ Equity   495,317     476,499     460,999     448,314     440,625  
    Total Liabilities, Temporary Equity and Shareowners’ Equity $ 4,307,142   $ 4,225,316   $ 4,225,695   $ 4,259,922   $ 4,304,477  
    OTHER BALANCE SHEET DATA                    
    Earning Assets $ 3,974,431   $ 3,880,769   $ 3,883,382   $ 3,921,093   $ 3,957,452  
    Interest Bearing Liabilities   2,447,708     2,339,311     2,344,624     2,377,900     2,412,431  
    Book Value Per Diluted Share $ 29.11   $ 28.06   $ 27.17   $ 26.45   $ 25.92  
    Tangible Book Value Per Diluted Share(1)   23.65     22.60     21.69     20.97     20.45  
    Actual Basic Shares Outstanding   16,975     16,944     16,942     16,929     16,950  
    Actual Diluted Shares Outstanding   17,018     16,981     16,970     16,947     17,001  
    (1) Tangible book value per diluted share is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 7.
                                 
    CAPITAL CITY BANK GROUP, INC.                            
    CONSOLIDATED STATEMENT OF OPERATIONS                      
    Unaudited                            
                                 
        2024   2023   Twelve Months Ended December 31,
    (Dollars in thousands, except per share data)   Fourth Quarter   Third Quarter   Second Quarter   First Quarter   Fourth Quarter   2024   2023
    INTEREST INCOME                            
    Loans, including Fees $ 41,453   $ 41,659 $ 41,138 $ 40,683 $ 40,407 $ 164,933 $ 152,250
    Investment Securities   4,694     4,155   4,004   4,244   4,392   17,097   18,692
    Federal Funds Sold and Interest Bearing Deposits   3,596     3,514   3,624   1,893   1,385   12,627   10,126
    Total Interest Income   49,743     49,328   48,766   46,820   46,184   194,657   181,068
    INTEREST EXPENSE                            
    Deposits   7,766     8,223   8,579   7,594   5,872   32,162   17,582
    Repurchase Agreements   199     221   217   201   199   838   513
    Other Short-Term Borrowings   83     52   68   39   310   242   1,538
    Subordinated Notes Payable   581     610   630   628   627   2,449   2,427
    Other Long-Term Borrowings   11     11   3   3   5   28   20
    Total Interest Expense   8,640     9,117   9,497   8,465   7,013   35,719   22,080
    Net Interest Income   41,103     40,211   39,269   38,355   39,171   158,938   158,988
    Provision for Credit Losses   701     1,206   1,204   920   2,025   4,031   9,714
    Net Interest Income after Provision for Credit Losses   40,402     39,005   38,065   37,435   37,146   154,907   149,274
    NONINTEREST INCOME                            
    Deposit Fees   5,207     5,512   5,377   5,250   5,304   21,346   21,325
    Bank Card Fees   3,697     3,624   3,766   3,620   3,713   14,707   14,918
    Wealth Management Fees   5,222     4,770   4,439   4,682   4,276   19,113   16,337
    Mortgage Banking Revenues   3,118     3,966   4,381   2,878   2,327   14,343   10,400
    Other   1,516     1,641   1,643   1,667   1,537   6,467   8,630
    Total Noninterest Income   18,760     19,513   19,606   18,097   17,157   75,976   71,610
    NONINTEREST EXPENSE                            
    Compensation   26,108     25,800   24,406   24,407   23,822   100,721   93,787
    Occupancy, Net   6,893     7,098   6,997   6,994   7,098   27,982   27,660
    Other   8,781     10,023   9,038   8,770   9,038   36,612   35,576
    Total Noninterest Expense   41,782     42,921   40,441   40,171   39,958   165,315   157,023
    OPERATING PROFIT   17,380     15,597   17,230   15,361   14,345   65,568   63,861
    Income Tax Expense   4,219     2,980   3,189   3,536   2,909   13,924   13,040
    Net Income   13,161     12,617   14,041   11,825   11,436   51,644   50,821
    Pre-Tax Loss (Income) Attributable to Noncontrolling Interest   (71 )   501   109   732   284   1,271   1,437
    NET INCOME ATTRIBUTABLE TO
    COMMON SHAREOWNERS
    $ 13,090   $ 13,118 $ 14,150 $ 12,557 $ 11,720 $ 52,915 $ 52,258
    PER COMMON SHARE                            
    Basic Net Income $ 0.77   $ 0.77 $ 0.84 $ 0.74 $ 0.69 $ 3.12 $ 3.08
    Diluted Net Income   0.77     0.77   0.83   0.74   0.70   3.12   3.07
    Cash Dividend $ 0.23   $ 0.23 $ 0.21 $ 0.21 $ 0.20 $ 0.88 $ 0.76
    AVERAGE SHARES                            
    Basic   16,946     16,943   16,931   16,951   16,947   16,943   16,987
    Diluted   16,990     16,979   16,960   16,969   16,997   16,969   17,023
    CAPITAL CITY BANK GROUP, INC.                            
    ALLOWANCE FOR CREDIT LOSSES (“ACL”)                        
    AND CREDIT QUALITY                            
    Unaudited                            
                                 
        2024
      2023   Twelve Months Ended December 31,
    (Dollars in thousands, except per share data)   Fourth Quarter   Third Quarter   Second Quarter   First Quarter   Fourth Quarter   2024   2023
    ACL – HELD FOR INVESTMENT LOANS                            
    Balance at Beginning of Period $ 29,836   $ 29,219   $ 29,329   $ 29,941   $ 29,083   $ 29,941   $ 25,068  
    Transfer from Other Liabilities   –     –     –     (50 )   66     (50 )   66  
    Provision for Credit Losses   1,085     1,879     1,129     932     2,354     5,025     9,529  
    Net Charge-Offs (Recoveries)   1,670     1,262     1,239     1,494     1,562     5,665     4,722  
    Balance at End of Period $ 29,251   $ 29,836   $ 29,219   $ 29,329   $ 29,941   $ 29,251   $ 29,941  
    As a % of Loans HFI   1.10 %   1.11 %   1.09 %   1.07 %   1.10 %   1.10 %   1.10 %
    As a % of Nonperforming Loans   464.14 %   452.64 %   529.79 %   431.46 %   479.70 %   464.14 %   479.70 %
    ACL – UNFUNDED COMMITMENTS                            
    Balance at Beginning of Period   2,522   $ 3,139   $ 3,121   $ 3,191   $ 3,502   $ 3,191   $ 2,989  
    Provision for Credit Losses   (367 )   (617 )   18     (70 )   (311 )   (1,036 )   202  
    Balance at End of Period(1)   2,155     2,522     3,139     3,121     3,191     2,155     3,191  
    ACL – DEBT SECURITIES                            
    Provision for Credit Losses $ (17 ) $ (56 ) $ 57   $ 58   $ (18 ) $ 42   $ (17 )
    CHARGE-OFFS                            
    Commercial, Financial and Agricultural $ 499   $ 331   $ 400   $ 282   $ 217   $ 1,512   $ 511  
    Real Estate – Construction   47     –     –     –     –     47     –  
    Real Estate – Commercial   –     3     –     –     –     3     120  
    Real Estate – Residential   44     –     –     17     79     61     79  
    Real Estate – Home Equity   33     23     –     76     –     132     39  
    Consumer   1,307     1,315     1,061     1,550     1,689     5,233     5,754  
    Overdrafts   574     611     571     638     602     2,394     2,789  
    Total Charge-Offs $ 2,504   $ 2,283   $ 2,032   $ 2,563   $ 2,587   $ 9,382   $ 9,292  
    RECOVERIES                            
    Commercial, Financial and Agricultural $ 103   $ 176   $ 59   $ 41   $ 83   $ 379   $ 277  
    Real Estate – Construction   3     –     –     –     –     3     2  
    Real Estate – Commercial   33     5     19     204     16     261     52  
    Real Estate – Residential   28     88     23     37     34     176     253  
    Real Estate – Home Equity   17     59     37     24     17     137     226  
    Consumer   352     405     313     410     433     1,480     1,936  
    Overdrafts   298     288     342     353     442     1,281     1,824  
    Total Recoveries $ 834   $ 1,021   $ 793   $ 1,069   $ 1,025   $ 3,717   $ 4,570  
    NET CHARGE-OFFS (RECOVERIES) $ 1,670   $ 1,262   $ 1,239   $ 1,494   $ 1,562   $ 5,665   $ 4,722  
    Net Charge-Offs as a % of Average Loans HFI(2)   0.25 %   0.19 %   0.18 %   0.22 %   0.23 %   0.21 %   0.18 %
    CREDIT QUALITY                            
    Nonaccruing Loans $ 6,302   $ 6,592   $ 5,515   $ 6,798   $ 6,242          
    Other Real Estate Owned   367     650     650     1     1          
    Total Nonperforming Assets (“NPAs”) $ 6,669   $ 7,242   $ 6,165   $ 6,799   $ 6,243          
                                 
    Past Due Loans 30-89 Days $ 4,311   $ 9,388   $ 5,672   $ 5,392   $ 6,855          
    Classified Loans   19,896     25,501     25,566     22,305     22,203          
                                 
    Nonperforming Loans as a % of Loans HFI   0.24 %   0.25 %   0.21 %   0.25 %   0.23 %        
    NPAs as a % of Loans HFI and Other Real Estate   0.25 %   0.27 %   0.23 %   0.25 %   0.23 %        
    NPAs as a % of Total Assets   0.15 %   0.17 %   0.15 %   0.16 %   0.15 %        
                                 
    (1)Recorded in other liabilities                            
    (2)Annualized                            
    CAPITAL CITY BANK GROUP, INC.                                                                                        
    AVERAGE BALANCE AND INTEREST RATES                                                                                        
    Unaudited                                                                                                    
                                                                                                         
        Fourth Quarter 2024     Third Quarter 2024     Second Quarter 2024     First Quarter 2024     Fourth Quarter 2023       Full Year 2024     Full Year 2023  
    (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 $ 31,047   $ 976   7.89 % $ 24,570   $ 720   7.49 % $ 26,281   $ 517   5.26 % $ 27,314     563   5.99 % $ 49,790   $ 817   6.50 %   $ 27,306   $ 2,776   6.72 % $ 55,510   $ 3,232   5.82 %
    Loans Held for Investment(1)   2,677,396     40,521   6.07     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       2,706,461     162,385   6.03     2,656,394     149,366   5.62  
                                                                                                         
    Investment Securities                                                                                                    
    Taxable Investment Securities   914,353     4,688   2.04     907,610     4,148   1.82     918,989     3,998   1.74     952,328     4,239   1.78     962,322     4,389   1.81       923,253     17,073   1.85     1,016,550     18,652   1.83  
    Tax-Exempt Investment Securities(1)   849     9   4.31     846     10   4.33     843     9   4.36     856     9   4.34     862     7   4.32       848     37   4.34     2,199     59   2.68  
                                                                                                         
    Total Investment Securities   915,202     4,697   2.04     908,456     4,158   1.82     919,832     4,007   1.74     953,184     4,248   1.78     963,184     4,396   1.82       924,101     17,110   1.85     1,018,749     18,711   1.83  
                                                                                                         
    Federal Funds Sold and Interest Bearing Deposits   298,255     3,596   4.80     256,855     3,514   5.44     262,419     3,624   5.56     140,488     1,893   5.42     99,763     1,385   5.51       239,712     12,627   5.27     203,147     10,126   4.98  
                                                                                                         
    Total Earning Assets   3,921,900   $ 49,790   5.05 %   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 %     3,897,580   $ 194,898   5.00 %   3,933,800   $ 181,435   4.61 %
                                                                                                         
    Cash and Due From Banks   73,992               70,994               74,803               75,763               76,681                 73,881               75,786            
    Allowance for Credit Losses   (30,107 )             (29,905 )             (29,564 )             (30,030 )             (29,998 )               (29,902 )             (28,190 )          
    Other Assets   293,884               291,359               291,669               295,275               296,114                 293,044               297,290            
                                                                                                         
    Total Assets $ 4,259,669             $ 4,215,862             $ 4,272,188             $ 4,190,623             $ 4,166,777               $ 4,234,603             $ 4,278,686            
                                                                                                         
    LIABILITIES:                                                                                                    
    Noninterest Bearing Deposits $ 1,323,556             $ 1,332,305             $ 1,346,546             $ 1,344,188             $ 1,416,825               $ 1,336,601             $ 1,507,657            
    NOW Accounts   1,182,073   $ 3,826   1.29 %   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 %     1,183,962   $ 16,835   1.42 %   1,172,861   $ 12,375   1.06 %
    Money Market Accounts   422,615     2,526   2.38     418,625     2,694   2.56     407,387     2,752   2.72     353,591     1,985   2.26     318,844     1,421   1.77       400,664     9,957   2.49     299,581     3,670   1.22  
    Savings Accounts   504,859     179   0.14     512,098     180   0.14     519,374     176   0.14     539,374     188   0.14     557,579     202   0.14       518,869     723   0.14     592,033     598   0.10  
    Time Deposits   167,321     1,235   2.94     163,462     1,262   3.07     160,078     1,226   3.08     138,328     924   2.69     116,797     553   1.88       157,342     4,647   2.95     97,480     939   0.96  
    Total Interest Bearing Deposits   2,276,868     7,766   1.36     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       2,260,837     32,162   1.42     2,161,955     17,582   0.81  
    Total Deposits   3,600,424     7,766   0.86     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       3,597,438     32,162   0.89     3,669,612     17,582   0.48  
    Repurchase Agreements   28,018     199   2.82     27,126     221   3.24     26,999     217   3.24     25,725     201   3.14     26,831     199   2.94       26,970     838   3.11     19,917     513   2.57  
    Other Short-Term Borrowings   6,510     83   5.06     2,673     52   7.63     6,592     68   4.16     3,758     39   4.16     16,906     310   7.29       4,882     242   4.94     24,146     1,538   6.37  
    Subordinated Notes Payable   52,887     581   4.30     52,887     610   4.52     52,887     630   4.71     52,887     628   4.70     52,887     627   4.64       52,887     2,449   4.56     52,887     2,427   4.53  
    Other Long-Term Borrowings   794     11   5.57     795     11   5.55     258     3   4.31     281     3   4.80     336     5   4.72       534     28   5.31     408     20   4.77  
    Total Interest Bearing Liabilities   2,365,077   $ 8,640   1.45 %   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 %     2,346,110   $ 35,719   1.52 %   2,259,313   $ 22,080   0.98 %
                                                                                                         
    Other Liabilities   73,130               73,767               72,634               68,295               78,772                 71,964               81,842            
                                                                                                         
    Total Liabilities   3,761,763               3,729,282               3,800,398               3,727,459               3,724,238                 3,754,675               3,848,812            
    Temporary Equity   6,763               6,443               6,493               7,150               7,423                 6,712               8,392            
                                                                                                         
    SHAREOWNERS’ EQUITY:   491,143               480,137               465,297               456,014               435,116                 473,216               421,482            
                                                                                                         
    Total Liabilities, Temporary Equity and Shareowners’ Equity $ 4,259,669             $ 4,215,862             $ 4,272,188             $ 4,190,623             $ 4,166,777               $ 4,234,603             $ 4,278,686            
                                                                                                         
    Interest Rate Spread     $ 41,150   3.59 %     $ 40,260   3.49 %     $ 39,334   3.38 %     $ 38,435   3.43 %     $ 39,264   3.55 %       $ 159,179   3.47 %     $ 159,355   3.63 %
                                                                                                         
    Interest Income and Rate Earned(1)       49,790   5.05         49,377   5.06         48,831   4.99         46,900   4.90         46,277   4.80           194,898   5.00         181,435   4.61  
    Interest Expense and Rate Paid(2)       8,640   0.88         9,117   0.93         9,497   0.97         8,465   0.88         7,013   0.73           35,719   0.92         22,080   0.56  
                                                                                                         
    Net Interest Margin     $ 41,150   4.17 %     $ 40,260   4.12 %     $ 39,334   4.02 %     $ 38,435   4.01 %     $ 39,264   4.07 %       $ 159,179   4.08 %     $ 159,355   4.05 %
                                                                                                         
    (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 29, 2025
  • MIL-OSI: RYVYL Pays Initial $13.0 Million Tranche to Securityholder to Retire All Outstanding Series B Convertible Preferred Stock and Majority of 8% Senior Convertible Note

    Source: GlobeNewswire (MIL-OSI)

    SAN DIEGO, CA, Jan. 28, 2025 (GLOBE NEWSWIRE) — RYVYL Inc. (NASDAQ: RVYL) (“RYVYL” or the “Company”), a leading innovator of payment transaction solutions leveraging electronic payment technology for diverse international markets, has paid the initial tranche of $13.0 million to a securityholder of the Company on January 27, 2025, which completed the following:

    • Redeemed of all shares of the Company’s Series B Convertible Preferred Stock (“Preferred Stock”), for which the liquidation value was $53.1 million.
    • Partially repaid the 8% Senior Convertible Note held by the securityholder (“Note”), reducing the outstanding principal from $18.3 million to $4.0 million, which is due on or before April 30, 2025, and also temporarily suspended (i) the Company’s requirement to pay interest on the remaining principal balance of the Note, (ii) the securityholder’s right to convert the Note and (iii) certain restrictive covenants contained in the Note, all of which would be restored if the Company does not pay the second tranche of $4.0 million by April 30, 2025.

    “These transactions eliminate a large portion of the conversion overhang and substantial dilution risk to our common stock from both the Preferred Stock and Note,” said George Oliva, CFO of RYVYL. “We expect the net gain from this balance sheet restructuring to be highly anti-dilutive; thus, benefitting the common stockholders and lowering our overall cost of capital as we invest in our growth in 2025.”

    This communication is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security and does not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful.

    About RYVYL

    RYVYL Inc. (NASDAQ: RVYL) was born from a passion for empowering a new way to conduct business-to-business, consumer-to-business, and peer-to-peer payment transactions around the globe. By leveraging electronic payment technology for diverse international markets, RYVYL is a leading innovator of payment transaction solutions reinventing the future of financial transactions. Since its founding as GreenBox POS in 2017 in San Diego, RYVYL has developed applications enabling an end-to-end suite of turnkey financial products with enhanced security and data privacy, world-class identity theft protection, and rapid speed to settlement. As a result, the platform can log immense volumes of immutable transactional records at the speed of the internet for first-tier partners, merchants, and consumers around the globe. www.ryvyl.com

    Cautionary Note Regarding Forward-Looking Statements

    This press release includes information that constitutes 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. These forward-looking statements are based on the Company’s current beliefs, assumptions, and expectations regarding future events, which in turn are based on information currently available to the Company. Such forward-looking statements include statements regarding timely payment of the second tranche, the benefit to stockholders from the repayment of the Note and repurchase of the Preferred Stock, and the timing and expectation of revenues from the license described herein and are charactered by future or conditional words such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “estimate” and “continue” or similar words. You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information. By their nature, forward-looking statements address matters that are subject to risks and uncertainties. A variety of factors could cause actual events and results to differ materially from those expressed in or contemplated by the forward-looking statements, including the risk that the licensee understands and complies with various banking laws and regulations that may impact the licensee’s ability to process transactions. For example, federal money laundering statutes and Bank Secrecy Act regulations discourage financial institutions from working with operators of certain industries – particularly industries with heightened cash reporting obligations and restrictions – as a result of which, banks may refuse to process certain payments and/or require onerous reporting obligations by payment processors to avoid compliance risk. These and other risk factors affecting the Company are discussed in detail in the Company’s periodic filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether because of the latest information, future events or otherwise, except to the extent required by applicable laws.

    IR Contact:
    David Barnard, Alliance Advisors Investor Relations, 415-433-3777, ryvylinvestor@allianceadvisors.com

    The MIL Network –

    January 29, 2025
  • MIL-OSI: Sandy Spring Bancorp Announces Fourth Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    OLNEY, Md., Jan. 28, 2025 (GLOBE NEWSWIRE) — Sandy Spring Bancorp, Inc. (Nasdaq-SASR), the parent company of Sandy Spring Bank, reported a net loss of $39.5 million ($0.87 per diluted common share) for the quarter ended December 31, 2024, compared to net income of $16.2 million ($0.36 per diluted common share) for the third quarter of 2024 and $26.1 million ($0.58 per diluted common share) for the fourth quarter of 2023.   The current quarter’s net loss is a result of a $54.4 million goodwill impairment charge determined during our annual goodwill impairment test based on the terms of the merger agreement with Atlantic Union Bankshares Corporation (“AUB”).   The goodwill impairment is a non-cash charge and has no impact on the Company’s regulatory capital ratios, cash flows, core operating performance or liquidity position.

    The current quarter’s core earnings were $21.0 million ($0.47 per diluted common share), compared to $17.9 million ($0.40 per diluted common share) for the quarter ended September 30, 2024 and $27.1 million ($0.60 per diluted common share) for the quarter ended December 31, 2023. Core earnings exclude the goodwill impairment charge, merger and acquisition expense, and the after-tax impact of amortization of intangibles, investment securities gains or losses and other non-recurring or extraordinary items. The current quarter’s increase in core earnings as compared to the linked quarter was driven by higher net interest income coupled with higher non-interest income, and lower provision for credit losses, partially offset by higher adjusted non-interest expense. The total provision for credit losses was $4.5 million for the fourth quarter of 2024 compared to $6.3 million for the previous quarter and a credit of $3.4 million for the fourth quarter of 2023.

    “We are pleased with our fourth quarter results, most notably our improved net interest margin, growth in core earnings, and reductions in brokered deposits,” said Daniel J. Schrider, Chair, President and CEO of Sandy Spring Bank. “We remain focused on serving our clients and building communities in the Greater Washington region.”

    Fourth Quarter Highlights

    • Total assets at December 31, 2024 decreased by 2% to $14.1 billion compared to $14.4 billion at September 30, 2024. This decline is predominantly driven by a $200.0 million reduction in FHLB advances and a resulting $231.4 million decline in cash and cash equivalents quarter-over-quarter.
    • Total loans remained level at $11.5 billion as of December 31, 2024 compared to September 30, 2024. During the current quarter, AD&C and commercial business loans and lines increased by $71.7 million and $32.2 million, respectively, while the commercial investor real estate segment declined by $88.9 million. Total residential mortgage and consumer loan portfolios increased by $19.6 million during this period.
    • Total deposits stayed relatively unchanged at $11.7 billion at December 31, 2024 compared to September 30, 2024. Interest-bearing deposits increased $106.1 million, while noninterest-bearing deposits declined $98.1 million. Growth in interest-bearing deposits was mainly experienced within interest checking accounts, which grew $122.9 million during the current quarter, while decline in noninterest-bearing deposit categories was driven by lower balances in commercial checking accounts. Total deposits, excluding brokered deposits, increased by $32.0 million quarter-over-quarter and represented 94% of total deposits as of December 31, 2024.
    • The ratio of non-performing loans to total loans was 1.03% at December 31, 2024 compared to 1.09% at September 30, 2024 and 0.81% at December 31, 2023. The current quarter’s decline in non-performing loans was mainly related to pay downs on several non-accrual loans along with a single commercial real estate loan that returned to an accrual status.
    • Net interest income for the fourth quarter of 2024 grew $4.7 million or 6% compared to the previous quarter and $4.4 million or 5% compared to the fourth quarter of 2023. Compared to the previous quarter, interest income increased by $1.0 million, while interest expense decreased by $3.7 million.
    • The net interest margin was 2.53% for the fourth quarter of 2024 compared to 2.44% for the third quarter of 2024 and 2.45% for the fourth quarter of 2023. Compared to the linked quarter, the rate paid on interest-bearing liabilities decreased 23 basis points, driven by a 26 basis point decline in the rate on interest-bearing deposits, while the yield on interest-earning assets declined by six basis points. The decline in the rate paid on interest-bearing deposits was attributable to a 50 basis point reduction in the federal funds rate during the current quarter and the associated actions taken by management to re-price the Company’s funding base.
    • Provision for credit losses directly attributable to the funded loan portfolio was $4.7 million for the current quarter compared to $6.3 million in the previous quarter and a credit of $2.6 million in the prior year quarter. The current quarter’s provision expense is mainly attributable to a slight deterioration in the projected economic variables coupled with higher qualitative adjustments, partially offset by lower probability of recession. In addition, during the current quarter, the provision for unfunded commitments declined by $0.2 million, a result of higher utilization rates on lines of credit.
    • Non-interest income for the fourth quarter of 2024 increased by 10% or $1.9 million compared to the linked quarter and grew by 31% or $5.1 million compared to the prior year quarter. The quarter-over-quarter increase was mainly due to an increase in income from bank-owned life insurance driven by one-time mortality proceeds received during the current quarter in combination with higher swap fees and higher wealth management income, which was partially offset by lower income from mortgage banking activities.
    • Non-interest expense for the fourth quarter of 2024 increased by $61.3 million compared to the third quarter of 2024 and $67.1 million compared to the prior year quarter, due to the goodwill impairment charge of $54.4 million incurred during the current quarter. Excluding the goodwill impairment charge, adjusted non-interest expense was $79.8 million during the current quarter compared to $72.9 million in the linked quarter. This quarterly increase in adjusted non-interest expense was primarily due to a combination of merger and acquisition expense associated with the pending merger with AUB along with higher salaries and compensation benefits, partially offset by lower professional fees and services.
    • We perform an annual goodwill impairment test as of October 1st of each year. During the current year, we utilized the terms incorporated in the merger agreement between the Company and AUB. The implied value of the Company utilized the stock conversion ratio in the merger agreement and used a weighted average approach to consider both AUB’s most recent closing stock price prior to the merger announcement date, as well as the forward sale price for AUB common stock under the forward sale agreement announced simultaneous with the merger agreement. This valuation method resulted in the estimated fair value of the Company being below its book value and required the recording of a goodwill impairment charge of $54.4 million.
    • Return on average assets (“ROA”) for the quarter ended December 31, 2024 was (1.09)% and return on average tangible common equity (“ROTCE”) was 5.46% compared to 0.46% and 5.88%, respectively, for the third quarter of 2024 and 0.73% and 9.26%, respectively, for the fourth quarter of 2023. On a non-GAAP basis, the current quarter’s core ROA was 0.58% and core ROTCE was 6.80% compared to 0.50% and 5.88%, respectively, for the previous quarter and 0.76% and 9.26%, respectively, for the fourth quarter of 2023.
    • The GAAP efficiency ratio was 124.61% for the fourth quarter of 2024, compared to 72.12% for the third quarter of 2024 and 68.33% for the fourth quarter of 2023. An elevated GAAP efficiency ratio for the current quarter was the result of higher non-interest expense due to the $54.4 million goodwill impairment charge. The non-GAAP efficiency ratio was 67.16% for the fourth quarter of 2024 compared to 69.06% for the third quarter of 2024 and 66.16% for the prior year quarter.

    Balance Sheet and Credit Quality

    Total assets were $14.1 billion at December 31, 2024, as compared to $14.4 billion at September 30, 2024. At December 31, 2024, total loans remained stable at $11.5 billion compared to the previous quarter. During this period, the growth in AD&C and commercial business loans and lines of $71.7 million or 6% and $32.2 million or 2%, respectively, was mostly offset by the decline in commercial investor real estate loans of $88.9 million or 2%. Total residential mortgage and consumer loan portfolios increased by $19.6 million or 1%.

    Deposits stayed relatively unchanged at $11.7 billion at December 31, 2024 compared to September 30, 2024. During this period, noninterest-bearing deposits decreased $98.1 million or 3%, while interest-bearing deposits increased $106.1 million or 1%. The decline in noninterest-bearing deposit categories was driven by decreases in commercial checking accounts. Growth in interest-bearing deposits was seen predominantly in interest checking accounts, which grew $122.9 million or 8% during the current quarter. Total deposits, excluding brokered deposits, increased by $32.0 million quarter-over-quarter and remained at 94% of total deposits as of December 31, 2024 compared to September 30, 2024, reflecting continued strength and stability of the core deposit base. Total uninsured deposits at December 31, 2024 were approximately 37% of total deposits.

    Total borrowings decreased $201.7 million or 23% at December 31, 2024 as compared to the previous quarter, primarily driven by a $200.0 million reduction in FHLB advances, of which $150 million related to scheduled maturities, while $50 million was prepaid generating a $0.5 million gain on debt extinguishment. At December 31, 2024, available unused sources of liquidity, which consist of available FHLB borrowings, fed funds, funds through the Federal Reserve Bank’s discount window, as well as excess cash and unpledged investment securities, totaled $6.3 billion or 147% of uninsured deposits.

    The tangible common equity to tangible assets ratio was 8.84% at December 31, 2024, compared to 8.83% at September 30, 2024.

    At December 31, 2024, the Company had a total risk-based capital ratio of 15.38%, a common equity tier 1 risk-based capital ratio of 11.36%, a tier 1 risk-based capital ratio of 11.36%, and a tier 1 leverage ratio of 9.39%. These risk-based capital ratios compare to a total risk-based capital ratio of 15.53%, a common equity tier 1 risk-based capital ratio of 11.27%, a tier 1 risk-based capital ratio of 11.27%, and a tier 1 leverage ratio of 9.59% at September 30, 2024. All of these ratios remain well in excess of the mandated minimum regulatory requirements.

    Non-performing loans include non-accrual loans and accruing loans 90 days or more past due. At December 31, 2024, non-performing loans totaled $119.4 million, compared to $125.3 million at September 30, 2024 and $91.8 million at December 31, 2023. The ratio of non-performing loans to total loans was 1.03% compared to 1.09% on a linked quarter basis. These levels of non-performing loans compare to 0.81% at December 31, 2023. The current quarter’s decline in non-performing loans was mainly related to pay downs on several non-accrual loans along with a single commercial real estate loan that returned to an accrual status based on the borrower’s historical payment performance. Total net charge-offs for the current quarter amounted to $1.7 million compared to $0.7 million for the third quarter of 2024 and net recoveries of $0.1 million for the fourth quarter of 2023.

    At December 31, 2024, the allowance for credit losses was $134.4 million or 1.16% of outstanding loans and 113% of non-performing loans, compared to $131.4 million or 1.14% of outstanding loans and 105% of non-performing loans at the end of the previous quarter and $120.9 million or 1.06% of outstanding loans and 132% of non-performing loans at the end of the fourth quarter of 2023. The increase in the allowance for the current quarter compared to the previous quarter mainly reflects slight deterioration in the projected economic variables coupled with higher qualitative adjustments, partially offset by lower probability of economic recession.

    Income Statement Review

    Quarterly Results

    Net loss was $39.5 million ($0.87 per diluted common share) for the three months ended December 31, 2024 compared to net income of $16.2 million ($0.36 per diluted common share) for the three months ended September 30, 2024 and $26.1 million ($0.58 per diluted common share) for the prior year quarter. The current quarter’s net loss is predominantly related to the $54.4 million goodwill impairment charge.   The current quarter’s core earnings were $21.0 million ($0.47 per diluted common share), compared to $17.9 million ($0.40 per diluted common share) for the previous quarter and $27.1 million ($0.60 per diluted common share) for the quarter ended December 31, 2023. The increase in the current quarter’s core earnings compared to the linked quarter was driven primarily by higher net interest income and non-interest income, and lower provision for credit losses, partially offset by higher adjusted non-interest expense.

    Net interest income for the fourth quarter of 2024 increased $4.7 million or 6% compared to the previous quarter and $4.4 million or 5% compared to the fourth quarter of 2023. During the current quarter, interest income increased $1.0 million, while interest expense declined $3.7 million. The higher interest rate environment during the current year was primarily responsible for a $5.4 million year-over-year increase in interest income, which outpaced the $1.0 million year-over-year growth in interest expense.

    The net interest margin was 2.53% for the fourth quarter of 2024 compared to 2.44% for the third quarter of 2024 and 2.45% for the fourth quarter of 2023. The increase in the net interest margin during the current quarter was a result of a 23 basis point decrease in the rate paid on interest-bearing liabilities, driven by a 26 basis point decline in the rate paid on interest-bearing deposits, while the yield earned on interest-earning assets declined by six basis points. As compared to the prior year quarter, the yield on interest-earning assets increased eight basis points, while the rate paid on interest-bearing liabilities declined nine basis points, resulting in net interest margin increase of eight basis points.

    The total provision for credit losses was $4.5 million for the fourth quarter of 2024 compared to $6.3 million for the previous quarter and a credit of $3.4 million for the fourth quarter of 2023. The provision for credit losses directly attributable to the funded loan portfolio was $4.7 million for the current quarter compared to $6.3 million for the third quarter of 2024 and a credit of $2.6 million for the fourth quarter of 2023. The current quarter’s provision is mainly a reflection of a slight deterioration in the projected economic variables along with higher qualitative adjustments, partially offset by lower probability of economic recession. In addition, during the current quarter, the reserve for unfunded commitments declined to $1.3 million from $1.5 million in the previous quarter due to higher utilization rates on lines of credit.

    Non-interest income for the fourth quarter of 2024 increased by 10% or $1.9 million compared to the linked quarter and grew by 31% or $5.1 million compared to the prior year quarter. The current quarter’s increase in non-interest income as compared to the previous quarter was mainly driven by the $1.9 million increase in income from bank owned life insurance, generated by one-time mortality proceeds, $0.4 million of swap fee income, and $0.2 million increase in wealth management income, due to the overall favorable market performance, partially offset by $0.4 million decrease in income from mortgage banking activities, due to lower sales volumes.

    Non-interest expense for the fourth quarter of 2024 increased $61.3 million or 84% compared to the third quarter of 2024 and $67.1 million or 100% compared to the fourth quarter of 2023. The increase over the comparative quarters was primarily due to the goodwill impairment charge of $54.4 million in the fourth quarter of 2024. Excluding the goodwill impairment charge, adjusted non-interest expense increased $6.9 million or 9% compared to the linked quarter. This quarter-over-quarter increase is predominantly attributable to $4.2 million in merger and acquisition expenses incurred during the current quarter, a $3.3 million increase in salaries and benefits, due to an increase in employee incentive compensation, and a $0.7 million increase in marketing expense. These increases were partially offset by the $1.8 million reduction in professional fees and services.

    For the fourth quarter of 2024, the GAAP efficiency ratio was 124.61% compared to 72.12% for the third quarter of 2024 and 68.33% for the fourth quarter of 2023. The non-GAAP efficiency ratio was 67.16% for the current quarter as compared to 69.06% for the third quarter of 2024 and 66.16% for the fourth quarter of 2023.

    ROA for the quarter ended December 31, 2024 was (1.09)% and ROTCE was 5.46% compared to 0.46% and 5.88%, respectively, for the third quarter of 2024 and 0.73% and 9.26%, respectively, for the fourth quarter of 2023. On a non-GAAP basis, the current quarter’s core ROA was 0.58% and core ROTCE was 6.80% compared to 0.50% and 5.88% for the third quarter of 2024 and 0.76% and 9.26%, respectively, for the fourth quarter of 2023.

    Explanation of Non-GAAP Financial Measures

    This news release contains financial information and performance measures determined by methods other than in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company’s management believes that the supplemental non-GAAP information provides a better comparison of period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. Non-GAAP measures used in this release consist of the following:

    • Tangible common equity and related measures are non-GAAP measures that exclude the impact of goodwill and other intangible assets.
    • The non-GAAP efficiency ratio excludes goodwill impairment loss, merger and acquisition expense, amortization of intangible assets, investment securities gains/(losses), pension settlement expense, severance expense, contingent payment expense, and includes tax-equivalent income.
    • Core earnings and the related measures of core earnings per diluted common share, core return on average assets and core return on average tangible common equity reflect net income exclusive of goodwill impairment loss, merger and acquisition expense, and after-tax impact of amortization of intangible assets, investment securities gains/(losses) and other non-recurring or extraordinary items.
    • Pre-tax pre-provision net income excludes income tax expense and the provision (credit) for credit losses.

    These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Please refer to the non-GAAP Reconciliation tables included with this release for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measure.

    About Sandy Spring Bancorp, Inc.

    Sandy Spring Bancorp, Inc., headquartered in Olney, Maryland, is the holding company for Sandy Spring Bank, a premier community bank in the Greater Washington, D.C. region. With over 50 locations, the bank offers a broad range of commercial and retail banking, mortgage, private banking, and trust services throughout Maryland, Virginia, and Washington, D.C. Through its subsidiaries, Rembert Pendleton Jackson and West Financial Services, Inc., Sandy Spring Bank also offers a comprehensive menu of wealth management services.

    Source: Sandy Spring Bancorp, Inc.
    Code: SASR-E

      For additional information or questions, please contact:
        Daniel J. Schrider, Chair, President & Chief Executive Officer, or
        Charles S. Cullum, E.V.P. & Chief Financial Officer
        Sandy Spring Bancorp
        17801 Georgia Avenue
        Olney, Maryland 20832
        1-800-399-5919
        Email: DSchrider@sandyspringbank.com 
          CCullum@sandyspringbank.com 
           
        Website: www.sandyspringbank.com
        Media Contact:
        Jennifer E. Schell, Division Executive, Marketing & Corporate Communications
        301-774-6400 x8331
        jschell@sandyspringbank.com 
           

    Forward-Looking Statements

    Sandy Spring Bancorp’s forward-looking statements are subject to significant risks and uncertainties that may cause actual results to differ materially from those in such statements. These risks and uncertainties include, but are not limited to, the risks identified in our quarterly and annual reports and the following: changes in general business and economic conditions nationally or in the markets that we serve; changes in consumer and business confidence, investor sentiment, or consumer spending or savings behavior; changes in the level of inflation; changes in the demand for loans, deposits and other financial services that we provide; the possibility that future credit losses may be higher than currently expected; the impact of the interest rate environment on our business, financial condition and results of operations; the impact of compliance with changes in laws, regulations and regulatory interpretations, including changes in income taxes; changes in credit ratings assigned to us or our subsidiaries; competitive pressures among financial services companies; the ability to attract, develop and retain qualified employees; our ability to maintain the security of our data processing and information technology systems; the impact of changes in accounting policies, including the introduction of new accounting standards; the impact of judicial or regulatory proceedings; the impact of fiscal and governmental policies of the United States federal government; the impact of health emergencies, epidemics or pandemics; the effects of climate change; and the impact of natural disasters, extreme weather events, military conflict, terrorism or other geopolitical events; the possibility that the Company’s pending merger with AUB does not close when expected or at all because required regulatory or other approvals or conditions to closing are not received or satisfied on a timely basis or at all (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the merger); the risk that the benefits from the merger may not be fully realized or may take longer to realize than expected; and the risk of disruption to the Company’s business as a result of the pendency of the merger;. Sandy Spring Bancorp provides greater detail regarding some of these factors in its Form 10-K for the year ended December 31, 2023 and its Form 10-Q for the quarter ended September 30, 2024, including in the Risk Factors section of those reports, and in its other SEC reports. Sandy Spring Bancorp’s forward-looking statements may also be subject to other risks and uncertainties, including those that it may discuss elsewhere in this news release or in its filings with the SEC, accessible on the SEC’s Web site at www.sec.gov. 

    Sandy Spring Bancorp, Inc. and Subsidiaries
    FINANCIAL HIGHLIGHTS – UNAUDITED

        Three Months Ended
    December 31,
      %
    Change
      Year Ended
    December 31,
      %
    Change
    (Dollars in thousands, except per share data)     2024       2023         2024       2023    
    Results of operations:                        
    Net interest income   $ 86,086     $ 81,696     5 %   $ 327,126     $ 354,550     (8 )%
    Provision/ (credit) for credit losses     4,468       (3,445 )   N/M       14,192       (17,561 )   N/M  
    Non-interest income     21,646       16,560     31       79,315       67,078     18  
    Non-interest expense     134,241       67,142     100       343,288       275,054     25  
    Income/ (loss) before income tax expense     (30,977 )     34,559     N/M       48,961       164,135     (70 )
    Net income/ (loss)     (39,453 )     26,100     N/M       19,935       122,844     (84 )
                               
    Net income/ (loss) attributable to common shareholders   $ (39,457 )   $ 26,066     N/M     $ 19,902     $ 122,621     (84 )
    Pre-tax pre-provision net income/ (loss) (1)   $ (26,509 )   $ 31,114     N/M     $ 63,153     $ 146,574     (57 )
                               
    Return on average assets     (1.09 )%     0.73 %           0.14 %     0.87 %    
    Return on average common equity     (9.70 )%     6.70 %           1.25 %     8.04 %    
    Return on average tangible common equity (1)     5.46 %     9.26 %           6.73 %     11.06 %    
    Net interest margin     2.53 %     2.45 %           2.46 %     2.67 %    
    Efficiency ratio – GAAP basis (2)     124.61 %     68.33 %           84.46 %     65.24 %    
    Efficiency ratio – Non-GAAP basis (2)     67.16 %     66.16 %           67.07 %     60.99 %    
                               
    Per share data:                          
    Basic net income/ (loss) per common share   $ (0.87 )   $ 0.58     N/M     $ 0.44     $ 2.74     (84 )%
    Diluted net income/ (loss) per common share   $ (0.87 )   $ 0.58     N/M     $ 0.44     $ 2.73     (84 )
    Weighted average diluted common shares     45,133,834       45,009,574     —       45,227,487       44,947,263     1  
    Dividends declared per share   $ 0.34     $ 0.34     —     $ 1.36     $ 1.36     —  
    Book value per common share   $ 34.51     $ 35.36     (2 )   $ 34.51     $ 35.36     (2 )
    Tangible book value per common share (1)   $ 26.99     $ 26.64     1     $ 26.99     $ 26.64     1  
    Outstanding common shares     45,140,417       44,913,561     1       45,140,417       44,913,561     1  
                             
    Financial condition at period-end:                        
    Investment securities   $ 1,418,244     $ 1,414,453     — %   $ 1,418,244     $ 1,414,453     — %
    Loans     11,537,966       11,366,989     2       11,537,966       11,366,989     2  
    Assets     14,127,480       14,028,172     1       14,127,480       14,028,172     1  
    Deposits     11,745,665       10,996,538     7       11,745,665       10,996,538     7  
    Stockholders’ equity     1,558,011       1,588,142     (2 )     1,558,011       1,588,142     (2 )
                             
    Capital ratios:                        
    Tier 1 leverage (3)     9.39 %     9.51 %         9.39 %     9.51 %    
    Common equity tier 1 capital to risk-weighted assets (3)     11.36 %     10.90 %         11.36 %     10.90 %    
    Tier 1 capital to risk-weighted assets (3)     11.36 %     10.90 %         11.36 %     10.90 %    
    Total regulatory capital to risk-weighted assets (3)     15.38 %     14.92 %         15.38 %     14.92 %    
    Tangible common equity to tangible assets (4)     8.84 %     8.77 %         8.84 %     8.77 %    
    Average equity to average assets     11.26 %     10.97 %         11.31 %     10.87 %    
                             
    Credit quality ratios:                        
    Allowance for credit losses to loans     1.16 %     1.06 %         1.16 %     1.06 %    
    Non-performing loans to total loans     1.03 %     0.81 %         1.03 %     0.81 %    
    Non-performing assets to total assets     0.87 %     0.65 %         0.87 %     0.65 %    
    Allowance for credit losses to non-performing loans     112.59 %     131.59 %         112.59 %     131.59 %    
    Annualized net charge-offs/ (recoveries) to average loans (5)     0.06 %     — %         0.03 %     0.01 %    

    N/M – not meaningful

    (1) Represents a non-GAAP measure.
    (2) The efficiency ratio – GAAP basis is non-interest expense divided by net interest income plus non-interest income from the Condensed Consolidated Statements of Income. The traditional efficiency ratio – Non-GAAP basis excludes goodwill impairment loss, merger and acquisition expense, intangible asset amortization, pension settlement expense, severance expense and contingent payment expense from non-interest expense; and investment securities gains/ (losses) from non-interest income; and adds the tax-equivalent adjustment to net interest income. See the Reconciliation Table included with these Financial Highlights.
    (3) Estimated ratio at December 31, 2024.
    (4) The tangible common equity to tangible assets ratio is a non-GAAP ratio that divides assets excluding goodwill and other intangible assets into stockholders’ equity after deducting goodwill and other intangible assets. See the Reconciliation Table included with these Financial Highlights.
    (5) Calculation utilizes average loans, excluding residential mortgage loans held-for-sale.
       

    Sandy Spring Bancorp, Inc. and Subsidiaries
    RECONCILIATION TABLE – UNAUDITED (CONTINUED)
    OPERATING EARNINGS – METRICS

        Three Months Ended
    December 31,
      Year Ended
    December 31,
    (Dollars in thousands)     2024       2023       2024       2023  
    Core earnings (non-GAAP):                
    Net income/ (loss) (GAAP)   $ (39,453 )   $ 26,100     $ 19,935     $ 122,844  
    Plus/ (less) non-GAAP adjustments:                
    Merger, acquisition and disposal expense(2)     4,164       —       4,164       —  
    Amortization of intangible assets (net of tax)(1)     1,937       1,047       6,801       3,898  
    Goodwill impairment loss(2)     54,391       —       54,391       —  
    Severance expense (net of tax)(1)     —       —       —       1,445  
    Pension settlement expense (net of tax)(1)     —       —       —       6,088  
    Investment securities gains/ losses     —       —       —       —  
    Contingent payment expense (net of tax)(1)     —       —       —       27  
    Core earnings (Non-GAAP)   $ 21,039     $ 27,147     $ 85,291     $ 134,302  
                     
    Core earnings per diluted common share (non-GAAP):                
    Weighted average common shares outstanding – diluted (GAAP)     45,133,834       45,009,574       45,227,487       44,947,263  
                     
    Earnings/ (loss) per diluted common share (GAAP)   $ (0.87 )   $ 0.58     $ 0.44     $ 2.73  
    Core earnings per diluted common share (non-GAAP)   $ 0.47     $ 0.60     $ 1.89     $ 2.99  
                     
    Core return on average assets (non-GAAP):                
    Average assets (GAAP)   $ 14,362,321     $ 14,090,423     $ 14,129,795     $ 14,055,645  
                     
    Return on average assets (GAAP)     (1.09 )%     0.73 %     0.14 %     0.87 %
    Core return on average assets (non-GAAP)     0.58 %     0.76 %     0.60 %     0.96 %
                     
    Return/ Core return on average tangible common equity (non-GAAP):                
    Net Income/ (loss) (GAAP)   $ (39,453 )   $ 26,100     $ 19,935     $ 122,844  
    Plus: Amortization of intangible assets (net of tax)(1)     1,937       1,047       6,801       3,898  
    Plus: Goodwill impairment loss(2)     54,391       —       54,391       —  
    Net income adjusted (non-GAAP)   $ 16,875     $ 27,147     $ 81,127     $ 126,742  
                     
    Average total stockholders’ equity (GAAP)   $ 1,617,633     $ 1,546,312     $ 1,597,456     $ 1,528,242  
    Average goodwill     (356,341 )     (363,436 )     (361,653 )     (363,436 )
    Average other intangible assets, net     (30,885 )     (20,162 )     (30,178 )     (18,596 )
    Average tangible common equity (non-GAAP)   $ 1,230,407     $ 1,162,714     $ 1,205,625     $ 1,146,210  
                     
    Return on average tangible common equity (non-GAAP)     5.46 %     9.26 %     6.73 %     11.06 %
    Core return on average tangible common equity (non-GAAP)     6.80 %     9.26 %     7.07 %     11.72 %
    (1) Tax adjustments have been determined using the combined marginal federal and state rate of 25.48% and 25.37% for 2024 and 2023, respectively.
    (2) Adjustment is not tax-effected as it represents a tax nondeductible item.
       

    Sandy Spring Bancorp, Inc. and Subsidiaries
    RECONCILIATION TABLE – UNAUDITED

        Three Months Ended
    December 31,
      Year Ended
    December 31,
    (Dollars in thousands)     2024       2023       2024       2023  
    Pre-tax pre-provision net income:                
    Net income/ (loss) (GAAP)   $         (39,453 )   $         26,100     $         19,935     $         122,844  
    Plus/ (less) non-GAAP adjustments:                
    Income tax expense             8,476               8,459               29,026               41,291  
    Provision/ (credit) for credit losses             4,468               (3,445 )             14,192               (17,561 )
    Pre-tax pre-provision net income/ (loss) (non-GAAP)   $ (26,509 )   $ 31,114     $ 63,153     $ 146,574  
                     
    Efficiency ratio (GAAP):                
    Non-interest expense   $ 134,241     $ 67,142     $ 343,288     $ 275,054  
                     
    Net interest income plus non-interest income   $ 107,732     $ 98,256     $ 406,441     $ 421,628  
                     
    Efficiency ratio (GAAP)     124.61 %     68.33 %     84.46 %     65.24 %
                     
    Efficiency ratio (Non-GAAP):                
    Non-interest expense   $ 134,241     $ 67,142     $ 343,288     $ 275,054  
    Less non-GAAP adjustments:                
    Amortization of intangible assets     2,599       1,403       9,126       5,223  
    Merger, acquisition and disposal expense     4,164       —       4,164       —  
    Goodwill impairment loss     54,391       —       54,391       —  
    Severance expense     —       —       —       1,939  
    Pension settlement expense     —       —       —       8,157  
    Contingent payment expense     —       —       —       36  
    Non-interest expense – as adjusted   $ 73,087     $ 65,739     $ 275,607     $ 259,699  
                     
    Net interest income plus non-interest income   $ 107,732     $ 98,256     $ 406,441     $ 421,628  
    Plus non-GAAP adjustment:                
    Tax-equivalent income     1,100       1,113       4,459       4,157  
    Less/ (plus) non-GAAP adjustment:                
    Investment securities gains/ (losses)     —       —       —       —  
    Net interest income plus non-interest income – as adjusted   $ 108,832     $ 99,369     $ 410,900     $ 425,785  
                     
    Efficiency ratio (Non-GAAP)     67.16 %     66.16 %     67.07 %     60.99 %
                     
    Tangible common equity ratio:                
    Total stockholders’ equity   $ 1,558,011     $ 1,588,142     $ 1,558,011     $ 1,588,142  
    Goodwill     (309,045 )     (363,436 )     (309,045 )     (363,436 )
    Other intangible assets, net     (30,748 )     (28,301 )     (30,748 )     (28,301 )
    Tangible common equity   $ 1,218,218     $ 1,196,405     $ 1,218,218     $ 1,196,405  
                     
    Total assets   $ 14,127,480     $ 14,028,172     $ 14,127,480     $ 14,028,172  
    Goodwill     (309,045 )     (363,436 )     (309,045 )     (363,436 )
    Other intangible assets, net     (30,748 )     (28,301 )     (30,748 )     (28,301 )
    Tangible assets   $ 13,787,687     $ 13,636,435     $ 13,787,687     $ 13,636,435  
                     
    Tangible common equity ratio     8.84 %     8.77 %     8.84 %     8.77 %
                     
    Outstanding common shares     45,140,417       44,913,561       45,140,417       44,913,561  
    Tangible book value per common share   $ 26.99     $ 26.64     $ 26.99     $ 26.64  
                                     

    Sandy Spring Bancorp, Inc. and Subsidiaries
    CONDENSED CONSOLIDATED STATEMENTS OF CONDITION – UNAUDITED

    (Dollars in thousands)   December 31,
    2024
      December 31,
    2023
    Assets        
    Cash and due from banks   $ 80,698     $ 82,257  
    Federal funds sold     —       245  
    Interest-bearing deposits with banks     438,265       463,396  
    Cash and cash equivalents     518,963       545,898  
    Residential mortgage loans held for sale (at fair value)     22,757       10,836  
    SBA loans held for sale     715       —  
    Investments held-to-maturity (fair values of $177,854 and $200,411 at December 31, 2024 and December 31, 2023, respectively)     215,747       236,165  
    Investments available-for-sale (at fair value)     1,140,783       1,102,681  
    Other investments, at cost     61,714       75,607  
    Total loans     11,537,966       11,366,989  
    Less: allowance for credit losses – loans     (134,401 )     (120,865 )
    Net loans     11,403,565       11,246,124  
    Premises and equipment, net     55,998       59,490  
    Other real estate owned     3,265       —  
    Accrued interest receivable     45,627       46,583  
    Goodwill     309,045       363,436  
    Other intangible assets, net     30,748       28,301  
    Other assets     318,553       313,051  
    Total assets   $ 14,127,480     $ 14,028,172  
             
    Liabilities        
    Noninterest-bearing deposits   $ 2,804,930     $ 2,914,161  
    Interest-bearing deposits     8,940,735       8,082,377  
    Total deposits     11,745,665       10,996,538  
    Securities sold under retail repurchase agreements     68,911       75,032  
    Federal Reserve Bank borrowings     —       300,000  
    Advances from FHLB     250,000       550,000  
    Subordinated debt     371,400       370,803  
    Total borrowings     690,311       1,295,835  
    Accrued interest payable and other liabilities     133,493       147,657  
    Total liabilities     12,569,469       12,440,030  
             
    Stockholders’ equity        
    Common stock — par value $1.00; shares authorized 100,000,000; shares issued and outstanding 45,140,417 and 44,913,561 at December 31, 2024 and December 31, 2023, respectively.     45,140       44,914  
    Additional paid in capital     748,905       742,243  
    Retained earnings     856,613       898,316  
    Accumulated other comprehensive loss     (92,647 )     (97,331 )
    Total stockholders’ equity     1,558,011       1,588,142  
    Total liabilities and stockholders’ equity   $ 14,127,480     $ 14,028,172  
                     

    Sandy Spring Bancorp, Inc. and Subsidiaries
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED

        Three Months Ended
    December 31,
      Year Ended
    December 31,
    (Dollars in thousands, except per share data)     2024       2023       2024     2023  
    Interest income:                
    Interest and fees on loans   $ 153,262     $ 148,655     $ 609,571   $ 579,960  
    Interest on mortgage loans held for sale     249       199       1,050     896  
    Interest on SBA loans held for sale     21       —       23     —  
    Interest on deposits with banks     7,997       8,456       25,398     22,435  
    Interest and dividend income on investment securities:                
    Taxable     7,821       6,454       29,140     26,992  
    Tax-advantaged     1,697       1,848       7,082     7,224  
    Interest on federal funds sold     —       4       8     17  
    Total interest income     171,047       165,616       672,272     637,524  
    Interest expense:                
    Interest on deposits     76,111       69,813       303,173     225,028  
    Interest on retail repurchase agreements and federal funds purchased     369       4,075       5,259     14,452  
    Interest on advances from FHLB     3,865       6,086       20,259     27,709  
    Interest on subordinated debt     4,616       3,946       16,455     15,785  
    Total interest expense     84,961       83,920       345,146     282,974  
    Net interest income     86,086       81,696       327,126     354,550  
    Provision/ (credit) for credit losses     4,468       (3,445 )     14,192     (17,561 )
    Net interest income after provision/ (credit) for credit losses     81,618       85,141       312,934     372,111  
    Non-interest income:                
    Service charges on deposit accounts     2,998       2,749       11,763     10,447  
    Mortgage banking activities     1,091       792       5,615     5,536  
    Wealth management income     10,920       9,219       42,071     36,633  
    Income from bank owned life insurance     3,213       1,207       7,496     4,210  
    Bank card fees     457       454       1,750     1,769  
    Other income     2,967       2,139       10,620     8,483  
    Total non-interest income     21,646       16,560       79,315     67,078  
    Non-interest expense:                
    Salaries and employee benefits     44,309       35,482       159,858     160,192  
    Occupancy expense of premises     4,727       4,558       19,005     18,778  
    Equipment expenses     4,252       3,987       15,924     15,675  
    Marketing     2,013       1,242       5,363     5,103  
    Outside data services     3,228       3,000       12,642     11,186  
    FDIC insurance     2,761       2,615       11,396     9,461  
    Amortization of intangible assets     2,599       1,403       9,126     5,223  
    Merger, acquisition and disposal expense     4,164       —       4,164     —  
    Professional fees and services     4,805       5,628       21,208     17,982  
    Goodwill impairment loss     54,391       —       54,391     —  
    Other expenses     6,992       9,227       30,211     31,454  
    Total non-interest expense     134,241       67,142       343,288     275,054  
    Income/ (loss) before income tax expense     (30,977 )     34,559       48,961     164,135  
    Income tax expense     8,476       8,459       29,026     41,291  
    Net income/ (loss)   $ (39,453 )   $ 26,100     $ 19,935   $ 122,844  
                     
    Net income per share amounts:                
    Basic net income/ (loss) per common share   $ (0.87 )   $ 0.58     $ 0.44   $ 2.74  
    Diluted net income/ (loss) per common share   $ (0.87 )   $ 0.58     $ 0.44   $ 2.73  
    Dividends declared per share   $ 0.34     $ 0.34     $ 1.36   $ 1.36  
                                   

    Sandy Spring Bancorp, Inc. and Subsidiaries
    HISTORICAL TRENDS – QUARTERLY FINANCIAL DATA – UNAUDITED

          2024       2023  
    (Dollars in thousands, except per share data)   Q4   Q3   Q2   Q1   Q4   Q3   Q2   Q1
    Profitability for the quarter:                                
    Tax-equivalent interest income   $ 172,147     $ 171,219     $ 166,252     $ 167,113     $ 166,729     $ 163,479     $ 159,156     $ 152,317  
    Interest expense             84,961       88,686       84,828       86,671       83,920       77,330       67,679       54,045  
    Tax-equivalent net interest income     87,186       82,533       81,424       80,442       82,809       86,149       91,477       98,272  
    Tax-equivalent adjustment     1,100       1,121       1,139       1,099       1,113       1,068       1,006       970  
    Provision/ (credit) for credit losses     4,468       6,316       1,020       2,388       (3,445 )     2,365       5,055       (21,536 )
    Non-interest income     21,646       19,715       19,587       18,367       16,560       17,391       17,176       15,951  
    Non-interest expense     134,241       72,937       68,104       68,006       67,142       72,471       69,136       66,305  
    Income/ (loss) before income tax expense     (30,977 )     21,874       30,748       27,316       34,559       27,636       33,456       68,484  
    Income tax expense     8,476       5,665       7,941       6,944       8,459       6,890       8,711       17,231  
    Net income/ (loss)   $ (39,453 )   $ 16,209     $ 22,807     $ 20,372     $ 26,100     $ 20,746     $ 24,745     $ 51,253  
    GAAP financial performance:                                
    Return on average assets   (1.09)%     0.46 %     0.66 %     0.58 %     0.73 %     0.58 %     0.70 %     1.49 %
    Return on average common equity   (9.70)%     4.01 %     5.81 %     5.17 %     6.70 %     5.35 %     6.46 %     13.93 %
    Return on average tangible common equity     5.46 %     5.88 %     8.27 %     7.39 %     9.26 %     7.42 %     8.93 %     19.10 %
    Net interest margin     2.53 %     2.44 %     2.46 %     2.41 %     2.45 %     2.55 %     2.73 %     2.99 %
    Efficiency ratio – GAAP basis     124.61 %     72.12 %     68.19 %     69.60 %     68.33 %     70.72 %     64.22 %     58.55 %
    Non-GAAP financial performance:                                
    Pre-tax pre-provision net income/ (loss)   $ (26,509 )   $ 28,190     $ 31,768     $ 29,704     $ 31,114     $ 30,001     $ 38,511     $ 46,948  
    Core after-tax earnings   $ 21,039     $ 17,936     $ 24,400     $ 21,916     $ 27,147     $ 27,766     $ 27,136     $ 52,253  
    Core return on average assets     0.58 %     0.50 %     0.70 %     0.63 %     0.76 %     0.78 %     0.77 %     1.52 %
    Core return on average common equity     5.17 %     4.44 %     6.21 %     5.56 %     6.97 %     7.16 %     7.09 %     14.20 %
    Core return on average tangible common equity     6.80 %     5.88 %     8.27 %     7.39 %     9.26 %     9.51 %     9.43 %     19.11 %
    Core earnings per diluted common share   $ 0.47     $ 0.40     $ 0.54     $ 0.49     $ 0.60     $ 0.62     $ 0.60     $ 1.16  
    Efficiency ratio – Non-GAAP basis     67.16 %     69.06 %     65.31 %     66.73 %     66.16 %     60.91 %     60.68 %     56.87 %
    Per share data:                        
    Net income/ (loss) attributable to common shareholders   $ (39,457 )   $ 16,205     $ 22,800     $ 20,346     $ 26,066     $ 20,719     $ 24,712     $ 51,084  
    Basic net income/ (loss) per common share   $ (0.87 )   $ 0.36     $ 0.51     $ 0.45     $ 0.58     $ 0.46     $ 0.55     $ 1.14  
    Diluted net income/ (loss) per common share   $ (0.87 )   $ 0.36     $ 0.51     $ 0.45     $ 0.58     $ 0.46     $ 0.55     $ 1.14  
    Weighted average diluted common shares     45,133,834       45,242,920       45,145,214       45,086,471       45,009,574       44,960,455       44,888,759       44,872,582  
    Dividends declared per share   $ 0.34     $ 0.34     $ 0.34     $ 0.34     $ 0.34     $ 0.34     $ 0.34     $ 0.34  
    Non-interest income:                                
    Service charges on deposit accounts     2,998       3,009       2,939       2,817       2,749       2,704       2,606       2,388  
    Mortgage banking activities     1,091       1,529       1,621       1,374       792       1,682       1,817       1,245  
    Wealth management income     10,920       10,738       10,455       9,958       9,219       9,391       9,031       8,992  
    Income from bank owned life insurance     3,213       1,307       1,816       1,160       1,207       845       1,251       907  
    Bank card fees     457       435       445       413       454       450       447       418  
    Other income     2,967       2,697       2,311       2,645       2,139       2,319       2,024       2,001  
    Total non-interest income   $ 21,646     $ 19,715     $ 19,587     $ 18,367     $ 16,560     $ 17,391     $ 17,176     $ 15,951  
    Non-interest expense:                                
    Salaries and employee benefits   $ 44,309     $ 41,030     $ 37,821     $ 36,698     $ 35,482     $ 44,853     $ 40,931     $ 38,926  
    Occupancy expense of premises     4,727       4,657       4,805       4,816       4,558       4,609       4,764       4,847  
    Equipment expenses     4,252       3,841       3,868       3,963       3,987       3,811       3,760       4,117  
    Marketing     2,013       1,320       1,288       742       1,242       729       1,589       1,543  
    Outside data services     3,228       3,025       3,286       3,103       3,000       2,819       2,853       2,514  
    FDIC insurance     2,761       2,773       2,951       2,911       2,615       2,333       2,375       2,138  
    Amortization of intangible assets     2,599       2,323       2,135       2,069       1,403       1,245       1,269       1,306  
    Merger, acquisition and disposal expense     4,164       —       —       —       —       —       —       —  
    Professional fees and services     4,805       6,577       4,946       4,880       5,628       4,509       4,161       3,684  
    Goodwill impairment loss     54,391       —       —       —       —       —       —       —  
    Other expenses     6,992       7,391       7,004       8,824       9,227       7,563       7,434       7,230  
    Total non-interest expense   $ 134,241     $ 72,937     $ 68,104     $ 68,006     $ 67,142     $ 72,471     $ 69,136     $ 66,305  
                                                                     

    Sandy Spring Bancorp, Inc. and Subsidiaries
    HISTORICAL TRENDS – QUARTERLY FINANCIAL DATA – UNAUDITED

          2024       2023  
    (Dollars in thousands, except per share data)   Q4   Q3   Q2   Q1   Q4   Q3   Q2   Q1
    Balance sheets at quarter end:                            
    Commercial investor real estate loans   $ 4,779,593     $ 4,868,467     $ 4,933,329     $ 4,997,879     $ 5,104,425     $ 5,137,694     $ 5,131,210     $ 5,167,456  
    Commercial owner-occupied real estate loans     1,748,772       1,737,327       1,747,708       1,741,113       1,755,235       1,760,384       1,770,135       1,769,928  
    Commercial AD&C loans     1,327,292       1,255,609       1,184,296       1,090,259       988,967       938,673       1,045,742       1,046,665  
    Commercial business loans     1,653,135       1,620,926       1,601,510       1,509,592       1,504,880       1,454,709       1,423,614       1,437,478  
    Residential mortgage loans     1,537,589       1,529,786       1,521,890       1,511,624       1,474,521       1,432,051       1,385,743       1,328,524  
    Residential construction loans     49,028       53,639       78,027       97,685       121,419       160,345       190,690       223,456  
    Consumer loans     442,557       426,167       417,161       416,132       417,542       416,436       422,505       421,734  
    Total loans     11,537,966       11,491,921       11,483,921       11,364,284       11,366,989       11,300,292       11,369,639       11,395,241  
    Allowance for credit losses – loans     (134,401 )     (131,428 )     (125,863 )     (123,096 )     (120,865 )     (123,360 )     (120,287 )     (117,613 )
    Residential mortgage loans held for sale     22,757       21,489       18,961       16,627       10,836       19,235       21,476       16,262  
    SBA loans held for sale     715       425       —       —       —       —       —       —  
    Investment securities     1,418,244       1,440,488       1,401,511       1,405,490       1,414,453       1,392,078       1,463,554       1,528,336  
    Total assets     14,127,480       14,383,073       14,008,343       13,888,133       14,028,172       14,135,085       13,994,545       14,129,007  
    Noninterest-bearing demand deposits     2,804,930       2,903,063       2,931,405       2,817,928       2,914,161       3,013,905       3,079,896       3,228,678  
    Total deposits     11,745,665       11,737,694       11,340,228       11,227,200       10,996,538       11,151,012       10,958,922       11,075,991  
    Customer repurchase agreements     68,911       70,767       75,038       71,529       75,032       66,581       74,510       47,627  
    Total stockholders’ equity     1,558,011       1,628,837       1,599,004       1,589,364       1,588,142       1,537,914       1,539,032       1,536,865  
    Quarterly average balance sheets:                            
    Commercial investor real estate loans   $ 4,825,594     $ 4,874,003     $ 4,964,406     $ 5,057,334     $ 5,125,028     $ 5,125,459     $ 5,146,632     $ 5,136,204  
    Commercial owner-occupied real estate loans     1,739,686       1,741,663       1,734,106       1,746,042       1,755,048       1,769,717       1,773,039       1,769,680  
    Commercial AD&C loans     1,300,966       1,253,035       1,133,506       1,030,763       960,646       995,682       1,057,205       1,082,791  
    Commercial business loans     1,606,641       1,579,001       1,551,798       1,508,336       1,433,035       1,442,518       1,441,489       1,444,588  
    Residential mortgage loans     1,535,924       1,526,445       1,518,748       1,491,277       1,451,614       1,406,929       1,353,809       1,307,761  
    Residential construction loans     47,788       64,684       86,638       110,456       142,325       174,204       211,590       223,313  
    Consumer loans     433,185       421,003       417,206       417,539       419,299       421,189       423,306       424,122  
    Total loans     11,489,784       11,459,834       11,406,408       11,361,747       11,286,995       11,335,698       11,407,070       11,388,459  
    Residential mortgage loans held for sale     13,768       19,889       14,497       8,142       10,132       13,714       17,480       8,324  
    SBA loans held for sale     591       65       —       —       —       —       —      
    Investment securities     1,542,401       1,531,378       1,538,624       1,536,127       1,544,173       1,589,342       1,639,324       1,679,593  
    Interest-earning assets     13,713,618       13,474,697       13,292,995       13,411,810       13,462,583       13,444,117       13,423,589       13,316,165  
    Total assets     14,362,321       14,136,037       13,956,261       14,061,935       14,090,423       14,086,342       14,094,653       13,949,276  
    Noninterest-bearing demand deposits     2,813,545       2,783,906       2,790,620       2,730,295       2,958,254       3,041,101       3,137,971       3,480,433  
    Total deposits     11,807,983       11,483,524       11,245,476       11,086,145       11,089,587       11,076,724       10,928,038       11,049,991  
    Customer repurchase agreements     65,253       63,436       62,161       72,836       66,622       67,298       58,382       60,626  
    Total interest-bearing liabilities     9,792,134       9,600,905       9,441,015       9,583,074       9,418,666       9,332,617       9,257,652       8,806,720  
    Total stockholders’ equity     1,617,633       1,607,377       1,579,582       1,584,902       1,546,312       1,538,553       1,535,465       1,491,929  
    Financial measures:                                
    Average equity to average assets     11.26 %     11.37 %     11.32 %     11.27 %     10.97 %     10.92 %     10.89 %     10.70 %
    Average investment securities to average earning assets     11.25 %     11.36 %     11.57 %     11.45 %     11.47 %     11.82 %     12.21 %     12.61 %
    Average loans to average earning assets     83.78 %     85.05 %     85.81 %     84.71 %     83.84 %     84.32 %     84.98 %     85.52 %
    Loans to assets     81.67 %     79.90 %     81.98 %     81.83 %     81.03 %     79.94 %     81.24 %     80.65 %
    Loans to deposits     98.23 %     97.91 %     101.27 %     101.22 %     103.37 %     101.34 %     103.75 %     102.88 %
    Assets under management   $ 6,577,150     $ 6,567,752     $ 6,215,697     $ 6,165,509     $ 5,999,520     $ 5,536,499     $ 5,742,888     $ 5,477,560  
    Capital measures:                                
    Tier 1 leverage(1)     9.39 %     9.59 %     9.70 %     9.56 %     9.51 %     9.50 %     9.42 %     9.44 %
    Common equity tier 1 capital to risk-weighted assets(1)     11.36 %     11.27 %     11.28 %     10.96 %     10.90 %     10.83 %     10.65 %     10.53 %
    Tier 1 capital to risk-weighted assets(1)     11.36 %     11.27 %     11.28 %     10.96 %     10.90 %     10.83 %     10.65 %     10.53 %
    Total regulatory capital to risk-weighted assets(1)     15.38 %     15.53 %     15.49 %     15.05 %     14.92 %     14.85 %     14.60 %     14.43 %
    Book value per common share   $ 34.51     $ 36.10     $ 35.45     $ 35.37     $ 35.36     $ 34.26     $ 34.31     $ 34.37  
    Outstanding common shares     45,140,417       45,125,078       45,109,671       44,940,147       44,913,561       44,895,158       44,862,369       44,712,497  
    (1) Estimated ratio at December 31, 2024.
       

    Sandy Spring Bancorp, Inc. and Subsidiaries
    LOAN PORTFOLIO QUALITY DETAIL – UNAUDITED

          2024     2023
    (Dollars in thousands)   December 31,   September 30,   June 30,   March 31,   December 31,   September 30,   June 30,   March 31,
    Non-performing assets:                                
    Loans 90 days past due:                                
    Commercial real estate:                                
    Commercial investor real estate   $ —   $ —   $ —   $ —   $ —   $ —   $ —   $ 215
    Commercial owner-occupied real estate     —     —     —     —     —     —     —     —
    Commercial AD&C     —     —     —     —     —     —     —     —
    Commercial business     —     —     —     20     20     415     29     3,002
    Residential real estate:                                
    Residential mortgage     232     399     338     340     342     —     692     352
    Residential construction     —     —     —     —     —     —     —     —
    Consumer     —     —     —     —     —     —     —     —
    Total loans 90 days past due     232     399     338     360     362     415     721     3,569
    Non-accrual loans:                                
    Commercial real estate:                                
    Commercial investor real estate     58,071     57,578     55,498     55,579     58,658     20,108     20,381     15,451
    Commercial owner-occupied real estate     7,008     9,639     9,403     4,394     4,640     4,744     4,846     4,949
    Commercial AD&C     31,314     31,816     2,127     556     1,259     1,422     569     —
    Commercial business     7,590     9,044     8,455     7,164     10,051     9,671     9,393     9,443
    Residential real estate:                                
    Residential mortgage     10,939     11,996     12,228     11,835     12,332     10,766     10,153     8,935
    Residential construction     521     539     539     542     443     449     —     —
    Consumer     3,697     4,258     4,400     4,011     4,102     4,187     3,396     4,900
    Total non-accrual loans     119,140     124,870     92,650     84,081     91,485     51,347     48,738     43,678
    Total non-performing loans     119,372     125,269     92,988     84,441     91,847     51,762     49,459     47,247
    Other real estate owned (OREO)     3,265     3,265     2,700     2,700     —     261     611     645
    Total non-performing assets   $ 122,637   $ 128,534   $ 95,688   $ 87,141   $ 91,847   $ 52,023   $ 50,070   $ 47,892
                                                     
        For the Quarter Ended,
    (Dollars in thousands)   December 31,
    2024
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
    z September 30,
    2023
      June 30,
    2023
      March 31,
    2023
    Analysis of non-accrual loan activity:                                
    Balance at beginning of period   $ 124,870     $ 92,650     $ 84,081     $ 91,485     $ 51,347     $ 48,738     $ 43,678     $ 34,782  
    Non-accrual balances transferred to OREO     —       (565 )     —       (2,700 )     —       —       —       —  
    Non-accrual balances charged-off     (1,698 )     (787 )     —       (1,550 )     —       (183 )     (2,049 )     (126 )
    Net payments or draws     (5,065 )     (3,095 )     (1,427 )     (4,017 )     (7,619 )     (1,545 )     (1,654 )     (10,212 )
    Loans placed on non-accrual     2,847       36,667       10,038       1,490       47,920       4,967       9,276       19,714  
    Non-accrual loans brought current     (1,814 )     —       (42 )     (627 )     (163 )     (630 )     (513 )     (480 )
    Balance at end of period   $ 119,140     $ 124,870     $ 92,650     $ 84,081     $ 91,485     $ 51,347     $ 48,738     $ 43,678  
                                     
    Analysis of allowance for credit losses – loans:                                
    Balance at beginning of period   $ 131,428     $ 125,863     $ 123,096     $ 120,865     $ 123,360     $ 120,287     $ 117,613     $ 136,242  
    Provision/ (credit) for credit losses – loans     4,653       6,310       2,961       3,331       (2,574 )     3,171       4,454       (18,945 )
    Less loans charged-off, net of recoveries:                                
    Commercial real estate:                                
    Commercial investor real estate     (3 )     397       (3 )     (2 )     (3 )     (3 )     (14 )     (5 )
    Commercial owner-occupied real estate     (30 )     (27 )     (27 )     (27 )     (27 )     (25 )     (27 )     (26 )
    Commercial AD&C     (23 )     111       (23 )     (283 )     —       —       —       —  
    Commercial business     1,656       250       (28 )     1,550       (105 )     15       363       (127 )
    Residential real estate:                                
    Residential mortgage     (7 )     (35 )     39       (6 )     (6 )     (4 )     35       21  
    Residential construction     —       —       —       —       —       —       —       —  
    Consumer     87       49       236       (132 )     62       115       1,423       (179 )
    Net charge-offs/ (recoveries)     1,680       745       194       1,100       (79 )     98       1,780       (316 )
    Balance at the end of period   $ 134,401     $ 131,428     $ 125,863     $ 123,096     $ 120,865     $ 123,360     $ 120,287     $ 117,613  
                                     
    Asset quality ratios:                                
    Non-performing loans to total loans     1.03 %     1.09 %     0.81 %     0.74 %     0.81 %     0.46 %     0.44 %     0.41 %
    Non-performing assets to total assets     0.87 %     0.89 %     0.68 %     0.63 %     0.65 %     0.37 %     0.36 %     0.34 %
    Allowance for credit losses to total loans     1.16 %     1.14 %     1.10 %     1.08 %     1.06 %     1.09 %     1.06 %     1.03 %
    Allowance for credit losses to non-performing loans     112.59 %     104.92 %     135.35 %     145.78 %     131.59 %     238.32 %     243.21 %     248.93 %
    Annualized net charge-offs/ (recoveries) to average loans     0.06 %     0.03 %     0.01 %     0.04 %     — %     — %     0.06 %       (0.01 )%
                                                                     

    Sandy Spring Bancorp, Inc. and Subsidiaries
    CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES – UNAUDITED

        Three Months Ended December 31,
          2024       2023  
    (Dollars in thousands and tax-equivalent)   Average
    Balances
      Interest (1)   Annualized
    Average
    Yield/Rate
      Average
    Balances
      Interest (1)   Annualized
    Average
    Yield/Rate
    Assets                        
    Commercial investor real estate loans   $ 4,825,594     $ 57,898   4.77 %   $ 5,125,028     $ 60,909   4.72 %
    Commercial owner-occupied real estate loans     1,739,686       21,497   4.92       1,755,048       21,011   4.75  
    Commercial AD&C loans     1,300,966       24,303   7.43       960,646       20,510   8.47  
    Commercial business loans     1,606,641       26,374   6.53       1,433,035       23,822   6.60  
    Total commercial loans     9,472,887       130,072   5.46       9,273,757       126,252   5.40  
    Residential mortgage loans     1,535,924       14,676   3.82       1,451,614       12,984   3.58  
    Residential construction loans     47,788       672   5.59       142,325       1,515   4.22  
    Consumer loans     433,185       8,496   7.80       419,299       8,543   8.08  
    Total residential and consumer loans     2,016,897       23,844   4.72       2,013,238       23,042   4.56  
    Total loans (2)     11,489,784       153,916   5.33       11,286,995       149,294   5.25  
    Residential mortgage loans held for sale     13,768       249   7.24       10,132       199   7.86  
    SBA loans held for sale     591       21   14.50       —       —   —  
    Taxable securities     1,214,327       7,821   2.58       1,193,408       6,454   2.16  
    Tax-advantaged securities     328,074       2,143   2.61       350,765       2,322   2.64  
    Total investment securities (3)     1,542,401       9,964   2.58       1,544,173       8,776   2.27  
    Interest-bearing deposits with banks     667,074       7,997   4.77       621,007       8,456   5.40  
    Federal funds sold     —       —   —       276       4   5.43  
    Total interest-earning assets     13,713,618       172,147   5.00       13,462,583       166,729   4.92  
                             
    Less: allowance for credit losses – loans     (131,565 )             (121,851 )        
    Cash and due from banks     77,280               89,143          
    Premises and equipment, net     56,925               69,162          
    Other assets     646,063               591,386          
    Total assets   $ 14,362,321             $ 14,090,423          
                             
    Liabilities and Stockholders’ Equity                        
    Interest-bearing demand deposits   $ 1,519,835     $ 6,510   1.70 %   $ 1,474,748     $ 5,612   1.51 %
    Regular savings deposits     1,763,353       13,768   3.11       1,153,610       9,715   3.34  
    Money market savings deposits     3,116,359       26,657   3.40       2,697,930       24,456   3.60  
    Time deposits     2,594,891       29,176   4.47       2,805,045       30,030   4.25  
    Total interest-bearing deposits     8,994,438       76,111   3.37       8,131,333       69,813   3.41  
    Repurchase agreements     65,253       327   2.00       66,622       354   2.11  
    Federal funds purchased and Federal Reserve Bank borrowings     3,525       42   4.69       300,000       3,721   4.92  
    Advances from FHLB     357,609       3,865   4.30       550,000       6,086   4.39  
    Subordinated debt     371,309       4,616   4.97       370,711       3,946   4.26  
    Total borrowings     797,696       8,850   4.41       1,287,333       14,107   4.35  
    Total interest-bearing liabilities     9,792,134       84,961   3.45       9,418,666       83,920   3.54  
                             
    Noninterest-bearing demand deposits     2,813,545               2,958,254          
    Other liabilities     139,009               167,191          
    Stockholders’ equity     1,617,633               1,546,312          
    Total liabilities and stockholders’ equity   $ 14,362,321             $ 14,090,423          
                             
    Tax-equivalent net interest income and spread       $ 87,186   1.55 %       $ 82,809   1.38 %
    Less: tax-equivalent adjustment         1,100             1,113    
    Net interest income       $ 86,086           $ 81,696    
                             
    Interest income/earning assets           5.00 %           4.92 %
    Interest expense/earning assets           2.47             2.47  
    Net interest margin           2.53 %           2.45 %
    (1) Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.48% and 25.37% for 2024 and 2023, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $1.1 million and $1.1 million in 2024 and 2023, respectively.
    (2) Non-accrual loans are included in the average balances.
    (3) Available-for-sale investments are presented at amortized cost.
       

    Sandy Spring Bancorp, Inc. and Subsidiaries
    CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES – UNAUDITED

        Year Ended December 31,
          2024       2023  
    (Dollars in thousands and tax-equivalent)   Average
    Balances
      Interest (1)   Annualized
    Average
    Yield/Rate
      Average
    Balances
      Interest (1)   Annualized
    Average
    Yield/Rate
    Assets                        
    Commercial investor real estate loans   $ 4,929,894     $ 234,402   4.75 %   $ 5,133,279     $ 237,976   4.64 %
    Commercial owner-occupied real estate loans     1,740,376       84,587   4.86       1,766,839       82,049   4.64  
    Commercial AD&C loans     1,180,100       93,082   7.89       1,023,669       81,515   7.96  
    Commercial business loans     1,561,616       105,400   6.75       1,440,382       92,080   6.39  
    Total commercial loans     9,411,986       517,471   5.50       9,364,169       493,620   5.27  
    Residential mortgage loans     1,518,170       56,644   3.73       1,380,496       48,909   3.54  
    Residential construction loans     77,276       3,880   5.02       187,599       6,817   3.63  
    Consumer loans     422,260       34,189   8.10       421,963       32,946   7.81  
    Total residential and consumer loans     2,017,706       94,713   4.69       1,990,058       88,672   4.46  
    Total loans (2)     11,429,692       612,184   5.36       11,354,227       582,292   5.13  
    Residential mortgage loans held for sale     14,089       1,050   7.45       12,421       896   7.21  
    SBA loans held for sale     165       23   14.17       —       —   —  
    Taxable securities     1,200,218       29,140   2.43       1,254,739       26,992   2.15  
    Tax-advantaged securities     336,913       8,928   2.65       357,933       9,049   2.53  
    Total investment securities (3)     1,537,131       38,068   2.48       1,612,672       36,041   2.23  
    Interest-bearing deposits with banks     492,649       25,398   5.16       432,392       22,435   5.19  
    Federal funds sold     216       8   3.79       393       17   4.26  
    Total interest-earning assets     13,473,942       676,731   5.02       13,412,105       641,681   4.78  
                             
    Less: allowance for credit losses – loans     (125,131 )             (124,624 )        
    Cash and due from banks     81,761               93,494          
    Premises and equipment, net     58,571               69,886          
    Other assets     640,652               604,784          
    Total assets   $ 14,129,795             $ 14,055,645          
                             
    Liabilities and Stockholders’ Equity                        
    Interest-bearing demand deposits   $ 1,480,668     $ 25,368   1.71 %   $ 1,429,219     $ 16,077   1.12 %
    Regular savings deposits     1,643,305       56,365   3.43       784,575       17,546   2.24  
    Money market savings deposits     2,914,712       105,847   3.63       2,974,580       93,432   3.14  
    Time deposits     2,588,713       115,593   4.47       2,695,232       97,973   3.64  
    Total interest-bearing deposits     8,627,398       303,173   3.51       7,883,606       225,028   2.85  
    Repurchase agreements     65,913       1,370   2.08       63,259       915   1.45  
    Federal funds purchased and Federal Reserve Bank borrowings     75,227       3,889   5.17       273,508       13,537   4.95  
    Advances from FHLB     465,164       20,259   4.36       615,082       27,709   4.50  
    Subordinated debt     371,085       16,455   4.43       370,487       15,785   4.26  
    Total borrowings     977,389       41,973   4.29       1,322,336       57,946   4.38  
    Total interest-bearing liabilities     9,604,787       345,146   3.59       9,205,942       282,974   3.07  
                             
    Noninterest-bearing demand deposits     2,779,696               3,152,699          
    Other liabilities     147,856               168,762          
    Stockholders’ equity     1,597,456               1,528,242          
    Total liabilities and stockholders’ equity   $ 14,129,795             $ 14,055,645          
                             
    Tax-equivalent net interest income and spread       $ 331,585   1.43 %       $ 358,707   1.71 %
    Less: tax-equivalent adjustment         4,459             4,157    
    Net interest income       $ 327,126           $ 354,550    
                             
    Interest income/earning assets           5.02 %           4.78 %
    Interest expense/earning assets           2.56             2.11  
    Net interest margin           2.46 %           2.67 %
    (1) Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.48% and 25.37% for 2024 and 2023, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $4.5 million and $4.2 million in 2024 and 2023, respectively.
    (2) Non-accrual loans are included in the average balances.
    (3) Available-for-sale investments are presented at amortized cost.

    The MIL Network –

    January 29, 2025
  • MIL-OSI: OTC Markets Group Reports $478.7 Billion in Total Dollar Volume Traded for 2024, Marking Significant Year-Over-Year Growth

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Jan. 28, 2025 (GLOBE NEWSWIRE) — OTC Markets Group Inc. (OTCQX: OTCM), operator of regulated financial markets for over 12,000 U.S. and global securities, today announced a substantial increase in total dollar volume traded across its markets for the year 2024, reaching $478 billion. This represents a notable rise of approximately $95 billion compared to the previous year’s total of $383 billion.1

    The significant growth was evident across all key security types on the market throughout 2024, particularly highlighted by a surge in trading of international securities which reached $415 billion – an increase of about $92 billion over last year. Trading activity ramped up notably in Q4 versus Q3 2024 as well, reflecting consistent upward momentum within OTC Markets Group’s offerings driven by robust cross-trading opportunities that attract global investors seeking streamlined entry points into the U.S. capital markets.

    “These numbers are a result of the increasingly global nature of equity trading along with the prominence and efficiency of the U.S. capital markets,” said Matt Fuchs, Executive Vice President of Market Data at OTC Markets Group. “Our market structure provides issuers and investors with a unique, data-driven, and cost-effective way to reach the largest pool of liquidity in the world.”

    Significant increases were noted across all key security types year-over-year:

    • $415.57 billion traded in international securities – $92.55 billion increase vs. 2023
    • $348.3 billion traded in ADRs – $65.94 billion increase vs. 2023
    • $386.33 billion traded in billion+ market caps – $61.94 billion increase vs. 2023
    • $439.89 billion traded in non-penny stocks – $87.37 billion increase vs. 2023
    • $78.61 billion traded in SEC reporting securities – $3.46 billion increase vs. 2023

    These numbers underscore how pivotal market data ecosystems are becoming for issuers worldwide looking towards public liquidity without entrenched costs associated with traditional exchanges. OTC Markets Group continues to work towards effectively engaging modern-day market participant needs wherever they may reside, thereby improving overall experience beyond the usual market standards.

    1Based on securities traded on the OTC Markets on the last day of each quarter.

    For more information, visit https://blog.otcmarkets.com/category/market-data/.

    About OTC Markets Group Inc.
    OTC Markets Group Inc. (OTCQX: OTCM) operates regulated markets for trading 12,000 U.S. and international securities. Our data-driven disclosure standards form the foundation of our three public markets: OTCQX® Best Market, OTCQB® Venture Market and Pink® Open Market.

    Our OTC Link® Alternative Trading Systems (ATSs) provide critical market infrastructure that broker-dealers rely on to facilitate trading. Our innovative model offers companies more efficient access to the U.S. financial markets.

    OTC Link ATS, OTC Link ECN and OTC Link NQB are each an SEC regulated ATS, operated by OTC Link LLC, a FINRA and SEC registered broker-dealer, member SIPC.

    EDGAR® and SEC® are trademarks of the U.S. Securities and Exchange Commission. OTC Markets Group Inc.’s products and services are not affiliated with or approved by the U.S. Securities and Exchange Commission.

    To learn more about how we create better informed and more efficient markets, visit www.otcmarkets.com.

    OTC Markets Group Media Contact:
    OTC Markets Group Inc., +1 (212) 896-4428, media@otcmarkets.com

    The MIL Network –

    January 29, 2025
  • MIL-OSI: Alchemy Markets Recognized as “Best Emerging Broker MEA 2025”

    Source: GlobeNewswire (MIL-OSI)

    LIMASSOL, Cyprus, Jan. 28, 2025 (GLOBE NEWSWIRE) — Alchemy Markets has been recognized with the “Best Emerging Broker MEA 2025” award at the UF Awards MEA. This accolade, regarded as a significant benchmark within the financial industry, reflects the company’s focus on innovation, client-oriented services, and trading solutions tailored to the Middle East and Africa (MEA) region.

    The recognition highlights Alchemy Markets’ continued growth in the global Forex and CFD trading landscape, as well as its emphasis on utilizing advanced technology, promoting operational transparency, and supporting its clients effectively.

    A Recognition of Innovation and Client Focus
    The “Best Emerging Broker MEA 2025” award reflects Alchemy Markets’ role as a transformative force in the trading industry. This recognition highlights the company’s focus on enhancing the trading experience for a wide range of investors by offering advanced trading tools, a broad selection of financial instruments, and an intuitive, user-friendly platform.

    “Our mission has always been to empower traders by providing them with the resources, tools, and market access they need to succeed,” said Bobby Winters, COO of Alchemy Markets. “This award is not just a milestone for us; it is a celebration of the trust and loyalty of our clients and the dedication of our team. We are honored to be recognized as a driving force in the MEA region’s financial ecosystem.”

    Driving Growth Across the MEA Region
    The Middle East and Africa have emerged as pivotal markets for global financial services, and Alchemy Markets has established itself as a reliable partner for traders in this region. By integrating local market insights with a global perspective, the company offers clients a strategic edge in navigating the complexities of today’s financial markets.

    Key highlights that contributed to this recognition include:

    • Advanced Trading Technology: Alchemy Markets offers a next-generation trading platform designed for speed, reliability, and accessibility, enabling traders to execute strategies with precision.
    • High Yield Accounts: Providing interest-bearing, flexible, instant-access solutions to keep uninvested funds working alongside our innovative trading accounts and technology.
    • Tailored Services for MEA Traders: By focusing on localized solutions, multilingual support, and market-relevant products, the company aims to resonate with the diverse needs of the region.
    • TIER-ONE Liquidity: Access to competitive prices and superior trading conditions sourced from over 20 leading banks and non-bank liquidity providers.

    Future Growth Plans
    Following this recognition, Alchemy Markets aims to further expand its presence across the MEA region and beyond. Plans include the introduction of new financial products, advanced trading tools, and innovative features that align with its mission to empower traders globally.

    The team at Alchemy Markets attributes this achievement to their unwavering commitment to excellence. “This award inspires us to aim even higher,” said Achilleas Achilleos, CMO. “We remain dedicated to setting new standards in the industry and ensuring our clients are at the center of everything we do.”

    Acknowledgment to the Community
    Alchemy Markets expresses its gratitude to its clients, partners, and employees, whose support and collaboration have been instrumental in the company’s achievements. The contributions of its community continue to play a key role in driving the company’s growth and shaping its journey forward.

    About Alchemy Markets
    Alchemy Markets is a leading forex and CFD broker providing clients with access to a wide range of financial instruments, including currencies, commodities, indices, and cryptocurrencies. With a focus on transparency, advanced technology, and exceptional customer support, the company has rapidly established itself as a trusted name in the trading industry.

    For more information about Alchemy Markets and its award-winning services, users can visit www.alchemymarkets.com.

    Contact

    CMO
    Achilleas Achilleos
    Alchemy Markets
    achilleas.achilleos@alchemymarkets.com

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a61455d0-4e11-4685-9609-3319f76e5c38

    The MIL Network –

    January 29, 2025
  • MIL-OSI Europe: Note “Antiqua et nova” on the relationship between Artficial Intelligence and Human Intelligence

    Source: The Holy See

    Note “Antiqua et nova” on the relationship between Artficial Intelligence and Human Intelligence, 28.01.2025
    ANTIQUA ET NOVA:
    Note on the Relationship BetweenArtificial Intelligence and Human Intelligence
    I. Introduction
    1. With wisdom both ancient and new (cf. Mt. 13:52), we are called to reflect on the current challenges and opportunities posed by scientific and technological advancements, particularly by the recent development of Artificial Intelligence (AI). The Christian tradition regards the gift of intelligence as an essential aspect of how humans are created “in the image of God” (Gen. 1:27). Starting from an integral vision of the human person and the biblical calling to “till” and “keep” the earth (Gen. 2:15), the Church emphasizes that this gift of intelligence should be expressed through the responsible use of reason and technical abilities in the stewardship of the created world.
    2. The Church encourages the advancement of science, technology, the arts, and other forms of human endeavor, viewing them as part of the “collaboration of man and woman with God in perfecting the visible creation.”[1] As Sirach affirms, God “gave skill to human beings, that he might be glorified in his marvelous works” (Sir. 38:6). Human abilities and creativity come from God and, when used rightly, glorify God by reflecting his wisdom and goodness. In light of this, when we ask ourselves what it means to “be human,” we cannot exclude a consideration of our scientific and technological abilities.
    3. It is within this perspective that the present Note addresses the anthropological and ethical challenges raised by AI—issues that are particularly significant, as one of the goals of this technology is to imitate the human intelligence that designed it. For instance, unlike many other human creations, AI can be trained on the results of human creativity and then generate new “artifacts” with a level of speed and skill that often rivals or surpasses what humans can do, such as producing text or images indistinguishable from human compositions. This raises critical concerns about AI’s potential role in the growing crisis of truth in the public forum. Moreover, this technology is designed to learn and make certain choices autonomously, adapting to new situations and providing solutions not foreseen by its programmers, and thus, it raises fundamental questions about ethical responsibility and human safety, with broader implications for society as a whole. This new situation has prompted many people to reflect on what it means to be human and the role of humanity in the world.
    4. Taking all this into account, there is broad consensus that AI marks a new and significant phase in humanity’s engagement with technology, placing it at the heart of what Pope Francis has described as an “epochal change.”[2] Its impact is felt globally and in a wide range of areas, including interpersonal relationships, education, work, art, healthcare, law, warfare, and international relations. As AI advances rapidly toward even greater achievements, it is critically important to consider its anthropological and ethical implications. This involves not only mitigating risks and preventing harm but also ensuring that its applications are used to promote human progress and the common good.
    5. To contribute positively to the discernment regarding AI, and in response to Pope Francis’ call for a renewed “wisdom of heart,”[3] the Church offers its experience through the anthropological and ethical reflections contained in this Note. Committed to its active role in the global dialogue on these issues, the Church invites those entrusted with transmitting the faith—including parents, teachers, pastors, and bishops—to dedicate themselves to this critical subject with care and attention. While this document is intended especially for them, it is also meant to be accessible to a broader audience, particularly those who share the conviction that scientific and technological advances should be directed toward serving the human person and the common good.[4]
    6. To this end, the document begins by distinguishing between concepts of intelligence in AI and in human intelligence. It then explores the Christian understanding of human intelligence, providing a framework rooted in the Church’s philosophical and theological tradition. Finally, the document offers guidelines to ensure that the development and use of AI uphold human dignity and promote the integral development of the human person and society.
    II. What is Artificial Intelligence?
    7. The concept of “intelligence” in AI has evolved over time, drawing on a range of ideas from various disciplines. While its origins extend back centuries, a significant milestone occurred in 1956 when the American computer scientist John McCarthy organized a summer workshop at Dartmouth University to explore the problem of “Artificial Intelligence,” which he defined as “that of making a machine behave in ways that would be called intelligent if a human were so behaving.”[5] This workshop launched a research program focused on designing machines capable of performing tasks typically associated with the human intellect and intelligent behavior.
    8. Since then, AI research has advanced rapidly, leading to the development of complex systems capable of performing highly sophisticated tasks.[6] These so-called “narrow AI” systems are typically designed to handle specific and limited functions, such as translating languages, predicting the trajectory of a storm, classifying images, answering questions, or generating visual content at the user’s request. While the definition of “intelligence” in AI research varies, most contemporary AI systems—particularly those using machine learning—rely on statistical inference rather than logical deduction. By analyzing large datasets to identify patterns, AI can “predict”[7] outcomes and propose new approaches, mimicking some cognitive processes typical of human problem-solving. Such achievements have been made possible through advances in computing technology (including neural networks, unsupervised machine learning, and evolutionary algorithms) as well as hardware innovations (such as specialized processors). Together, these technologies enable AI systems to respond to various forms of human input, adapt to new situations, and even suggest novel solutions not anticipated by their original programmers.[8]
    9. Due to these rapid advancements, many tasks once managed exclusively by humans are now entrusted to AI. These systems can augment or even supersede what humans are able to do in many fields, particularly in specialized areas such as data analysis, image recognition, and medical diagnosis. While each “narrow AI” application is designed for a specific task, many researchers aspire to develop what is known as “Artificial General Intelligence” (AGI)—a single system capable of operating across all cognitive domains and performing any task within the scope of human intelligence. Some even argue that AGI could one day achieve the state of “superintelligence,” surpassing human intellectual capacities, or contribute to “super-longevity” through advances in biotechnology. Others, however, fear that these possibilities, even if hypothetical, could one day eclipse the human person, while still others welcome this potential transformation.[9]
    10. Underlying this and many other perspectives on the subject is the implicit assumption that the term “intelligence” can be used in the same way to refer to both human intelligence and AI. Yet, this does not capture the full scope of the concept. In the case of humans, intelligence is a faculty that pertains to the person in his or her entirety, whereas in the context of AI, “intelligence” is understood functionally, often with the presumption that the activities characteristic of the human mind can be broken down into digitized steps that machines can replicate.[10]
    11. This functional perspective is exemplified by the “Turing Test,” which considers a machine “intelligent” if a person cannot distinguish its behavior from that of a human.[11] However, in this context, the term “behavior” refers only to the performance of specific intellectual tasks; it does not account for the full breadth of human experience, which includes abstraction, emotions, creativity, and the aesthetic, moral, and religious sensibilities. Nor does it encompass the full range of expressions characteristic of the human mind. Instead, in the case of AI, the “intelligence” of a system is evaluated methodologically, but also reductively, based on its ability to produce appropriate responses—in this case, those associated with the human intellect—regardless of how those responses are generated.
    12. AI’s advanced features give it sophisticated abilities to perform tasks, but not the ability to think.[12] This distinction is crucially important, as the way “intelligence” is defined inevitably shapes how we understand the relationship between human thought and this technology.[13] To appreciate this, one must recall the richness of the philosophical tradition and Christian theology, which offer a deeper and more comprehensive understanding of intelligence—an understanding that is central to the Church’s teaching on the nature, dignity, and vocation of the human person.[14]
    III. Intelligence in the Philosophical and Theological Tradition
    Rationality
    13. From the dawn of human self-reflection, the mind has played a central role in understanding what it means to be “human.” Aristotle observed that “all people by nature desire to know.”[15] This knowledge, with its capacity for abstraction that grasps the nature and meaning of things, sets humans apart from the animal world.[16] As philosophers, theologians, and psychologists have examined the exact nature of this intellectual faculty, they have also explored how humans understand the world and their unique place within it. Through this exploration, the Christian tradition has come to understand the human person as a being consisting of both body and soul—deeply connected to this world and yet transcending it.[17]
    14. In the classical tradition, the concept of intelligence is often understood through the complementary concepts of “reason” (ratio) and “intellect” (intellectus). These are not separate faculties but, as Saint Thomas Aquinas explains, they are two modes in which the same intelligence operates: “The term intellect is inferred from the inward grasp of the truth, while the name reason is taken from the inquisitive and discursive process.”[18] This concise description highlights the two fundamental and complementary dimensions of human intelligence. Intellectus refers to the intuitive grasp of the truth—that is, apprehending it with the “eyes” of the mind—which precedes and grounds argumentation itself. Ratio pertains to reasoning proper: the discursive, analytical process that leads to judgment. Together, intellect and reason form the two facets of the act of intelligere, “the proper operation of the human being as such.”[19]
    15. Describing the human person as a “rational” being does not reduce the person to a specific mode of thought; rather, it recognizes that the ability for intellectual understanding shapes and permeates all aspects of human activity.[20] Whether exercised well or poorly, this capacity is an intrinsic aspect of human nature. In this sense, the “term ‘rational’ encompasses all the capacities of the human person,” including those related to “knowing and understanding, as well as those of willing, loving, choosing, and desiring; it also includes all corporeal functions closely related to these abilities.”[21] This comprehensive perspective underscores how, in the human person, created in the “image of God,” reason is integrated in a way that elevates, shapes, and transforms both the person’s will and actions.[22]
    Embodiment
    16. Christian thought considers the intellectual faculties of the human person within the framework of an integral anthropology that views the human being as essentially embodied. In the human person, spirit and matter “are not two natures united, but rather their union forms a single nature.”[23] In other words, the soul is not merely the immaterial “part” of the person contained within the body, nor is the body an outer shell housing an intangible “core.” Rather, the entire human person is simultaneously both material and spiritual. This understanding reflects the teaching of Sacred Scripture, which views the human person as a being who lives out relationships with God and others (and thus, an authentically spiritual dimension) within and through this embodied existence.[24] The profound meaning of this condition is further illuminated by the mystery of the Incarnation, through which God himself took on our flesh and “raised it up to a sublime dignity.”[25]
    17. Although deeply rooted in bodily existence, the human person transcends the material world through the soul, which is “almost on the horizon of eternity and time.”[26] The intellect’s capacity for transcendence and the self-possessed freedom of the will belong to the soul, by which the human person “shares in the light of the divine mind.”[27] Nevertheless, the human spirit does not exercise its normal mode of knowledge without the body.[28] In this way, the intellectual faculties of the human person are an integral part of an anthropology that recognizes that the human person is a “unity of body and soul.”[29] Further aspects of this understanding will be developed in what follows.
    Relationality
    18. Human beings are “ordered by their very nature to interpersonal communion,”[30] possessing the capacity to know one another, to give themselves in love, and to enter into communion with others. Accordingly, human intelligence is not an isolated faculty but is exercised in relationships, finding its fullest expression in dialogue, collaboration, and solidarity. We learn with others, and we learn through others.
    19. The relational orientation of the human person is ultimately grounded in the eternal self-giving of the Triune God, whose love is revealed in creation and redemption.[31] The human person is “called to share, by knowledge and love, in God’s own life.”[32]
    20. This vocation to communion with God is necessarily tied to the call to communion with others. Love of God cannot be separated from love for one’s neighbor (cf. 1 Jn. 4:20; Mt. 22:37-39). By the grace of sharing God’s life, Christians are also called to imitate Christ’s outpouring gift (cf. 2 Cor. 9:8-11; Eph. 5:1-2) by following his command to “love one another, as I have loved you” (Jn. 13:34).[33] Love and service, echoing the divine life of self-giving, transcend self-interest to respond more fully to the human vocation (cf. 1 Jn. 2:9). Even more sublime than knowing many things is the commitment to care for one another, for if “I understand all mysteries and all knowledge […] but do not have love, I am nothing” (1 Cor. 13:2).
    Relationship with the Truth
    21. Human intelligence is ultimately “God’s gift fashioned for the assimilation of truth.”[34] In the dual sense of intellectus-ratio, it enables the person to explore realities that surpass mere sensory experience or utility, since “the desire for truth is part of human nature itself. It is an innate property of human reason to ask why things are as they are.”[35] Moving beyond the limits of empirical data, human intelligence can “with genuine certitude attain to reality itself as knowable.”[36] While reality remains only partially known, the desire for truth “spurs reason always to go further; indeed, it is as if reason were overwhelmed to see that it can always go beyond what it has already achieved.”[37] Although Truth in itself transcends the boundaries of human intelligence, it irresistibly attracts it.[38] Drawn by this attraction, the human person is led to seek “truths of a higher order.”[39]
    22. This innate drive toward the pursuit of truth is especially evident in the distinctly human capacities for semantic understanding and creativity,[40] through which this search unfolds in a “manner that is appropriate to the social nature and dignity of the human person.”[41] Likewise, a steadfast orientation to the truth is essential for charity to be both authentic and universal.[42]
    23. The search for truth finds its highest expression in openness to realities that transcend the physical and created world. In God, all truths attain their ultimate and original meaning.[43] Entrusting oneself to God is a “fundamental decision that engages the whole person.”[44] In this way, the human person becomes fully what he or she is called to be: “the intellect and the will display their spiritual nature,” enabling the person “to act in a way that realizes personal freedom to the full.”[45]
    Stewardship of the World
    24. The Christian faith understands creation as the free act of the Triune God, who, as Saint Bonaventure of Bagnoregio explains, creates “not to increase his glory, but to show it forth and to communicate it.”[46] Since God creates according to his Wisdom (cf. Wis. 9:9; Jer. 10:12), creation is imbued with an intrinsic order that reflects God’s plan (cf. Gen. 1; Dan. 2:21-22; Is. 45:18; Ps. 74:12-17; 104),[47] within which God has called human beings to assume a unique role: to cultivate and care for the world.[48]
    25. Shaped by the Divine Craftsman, humans live out their identity as beings made in imago Dei by “keeping” and “tilling” (cf. Gen. 2:15) creation—using their intelligence and skills to care for and develop creation in accord with God’s plan.[49] In this, human intelligence reflects the Divine Intelligence that created all things (cf. Gen. 1-2; Jn. 1),[50] continuously sustains them, and guides them to their ultimate purpose in him.[51] Moreover, human beings are called to develop their abilities in science and technology, for through them, God is glorified (cf. Sir. 38:6). Thus, in a proper relationship with creation, humans, on the one hand, use their intelligence and skill to cooperate with God in guiding creation toward the purpose to which he has called it.[52] On the other hand, creation itself, as Saint Bonaventure observes, helps the human mind to “ascend gradually to the supreme Principle, who is God.”[53]
    An Integral Understanding of Human Intelligence
    26. In this context, human intelligence becomes more clearly understood as a faculty that forms an integral part of how the whole person engages with reality. Authentic engagement requires embracing the full scope of one’s being: spiritual, cognitive, embodied, and relational.
    27. This engagement with reality unfolds in various ways, as each person, in his or her multifaceted individuality[54], seeks to understand the world, relate to others, solve problems, express creativity, and pursue integral well-being through the harmonious interplay of the various dimensions of the person’s intelligence.[55] This involves logical and linguistic abilities but can also encompass other modes of interacting with reality. Consider the work of an artisan, who “must know how to discern, in inert matter, a particular form that others cannot recognize”[56] and bring it forth through insight and practical skill. Indigenous peoples who live close to the earth often possess a profound sense of nature and its cycles.[57] Similarly, a friend who knows the right word to say or a person adept at managing human relationships exemplifies an intelligence that is “the fruit of self-examination, dialogue and generous encounter between persons.”[58] As Pope Francis observes, “in this age of artificial intelligence, we cannot forget that poetry and love are necessary to save our humanity.”[59]
    28. At the heart of the Christian understanding of intelligence is the integration of truth into the moral and spiritual life of the person, guiding his or her actions in light of God’s goodness and truth. According to God’s plan, intelligence, in its fullest sense, also includes the ability to savor what is true, good, and beautiful. As the twentieth-century French poet Paul Claudel expressed, “intelligence is nothing without delight.”[60] Similarly, Dante, upon reaching the highest heaven in Paradiso, testifies that the culmination of this intellectual delight is found in the “light intellectual full of love, love of true good filled with joy, joy which transcends every sweetness.”[61]
    29. A proper understanding of human intelligence, therefore, cannot be reduced to the mere acquisition of facts or the ability to perform specific tasks. Instead, it involves the person’s openness to the ultimate questions of life and reflects an orientation toward the True and the Good. [62] As an expression of the divine image within the person, human intelligence has the ability to access the totality of being, contemplating existence in its fullness, which goes beyond what is measurable, and grasping the meaning of what has been understood. For believers, this capacity includes, in a particular way, the ability to grow in the knowledge of the mysteries of God by using reason to engage ever more profoundly with revealed truths (intellectus fidei).[63] True intelligence is shaped by divine love, which “is poured forth in our hearts by the Holy Spirit” (Rom. 5:5). From this, it follows that human intelligence possesses an essential contemplative dimension, an unselfish openness to the True, the Good, and the Beautiful, beyond any utilitarian purpose.
    The Limits of AI
    30. In light of the foregoing discussion, the differences between human intelligence and current AI systems become evident. While AI is an extraordinary technological achievement capable of imitating certain outputs associated with human intelligence, it operates by performing tasks, achieving goals, or making decisions based on quantitative data and computational logic. For example, with its analytical power, AI excels at integrating data from a variety of fields, modeling complex systems, and fostering interdisciplinary connections. In this way, it can help experts collaborate in solving complex problems that “cannot be dealt with from a single perspective or from a single set of interests.”[64]
    31. However, even as AI processes and simulates certain expressions of intelligence, it remains fundamentally confined to a logical-mathematical framework, which imposes inherent limitations. Human intelligence, in contrast, develops organically throughout the person’s physical and psychological growth, shaped by a myriad of lived experiences in the flesh. Although advanced AI systems can “learn” through processes such as machine learning, this sort of training is fundamentally different from the developmental growth of human intelligence, which is shaped by embodied experiences, including sensory input, emotional responses, social interactions, and the unique context of each moment. These elements shape and form individuals within their personal history. In contrast, AI, lacking a physical body, relies on computational reasoning and learning based on vast datasets that include recorded human experiences and knowledge.
    32. Consequently, although AI can simulate aspects of human reasoning and perform specific tasks with incredible speed and efficiency, its computational abilities represent only a fraction of the broader capacities of the human mind. For instance, AI cannot currently replicate moral discernment or the ability to establish authentic relationships. Moreover, human intelligence is situated within a personally lived history of intellectual and moral formation that fundamentally shapes the individual’s perspective, encompassing the physical, emotional, social, moral, and spiritual dimensions of life. Since AI cannot offer this fullness of understanding, approaches that rely solely on this technology or treat it as the primary means of interpreting the world can lead to “a loss of appreciation for the whole, for the relationships between things, and for the broader horizon.”[65]
    33. Human intelligence is not primarily about completing functional tasks but about understanding and actively engaging with reality in all its dimensions; it is also capable of surprising insights. Since AI lacks the richness of corporeality, relationality, and the openness of the human heart to truth and goodness, its capacities—though seemingly limitless—are incomparable with the human ability to grasp reality. So much can be learned from an illness, an embrace of reconciliation, and even a simple sunset; indeed, many experiences we have as humans open new horizons and offer the possibility of attaining new wisdom. No device, working solely with data, can measure up to these and countless other experiences present in our lives.
    34. Drawing an overly close equivalence between human intelligence and AI risks succumbing to a functionalist perspective, where people are valued based on the work they can perform. However, a person’s worth does not depend on possessing specific skills, cognitive and technological achievements, or individual success, but on the person’s inherent dignity, grounded in being created in the image of God.[66] This dignity remains intact in all circumstances, including for those unable to exercise their abilities, whether it be an unborn child, an unconscious person, or an older person who is suffering.[67] It also underpins the tradition of human rights (and, in particular, what are now called “neuro-rights”), which represent “an important point of convergence in the search for common ground”[68] and can, thus, serve as a fundamental ethical guide in discussions on the responsible development and use of AI.
    35. Considering all these points, as Pope Francis observes, “the very use of the word ‘intelligence’” in connection with AI “can prove misleading”[69] and risks overlooking what is most precious in the human person. In light of this, AI should not be seen as an artificial form of human intelligence but as a product of it.[70]
    IV. The Role of Ethics in Guiding the Development and Use of AI
    36. Given these considerations, one can ask how AI can be understood within God’s plan. To answer this, it is important to recall that techno-scientific activity is not neutral in character but is a human endeavor that engages the humanistic and cultural dimensions of human creativity.[71]
    37. Seen as a fruit of the potential inscribed within human intelligence,[72] scientific inquiry and the development of technical skills are part of the “collaboration of man and woman with God in perfecting the visible creation.”[73] At the same time, all scientific and technological achievements are, ultimately, gifts from God.[74] Therefore, human beings must always use their abilities in view of the higher purpose for which God has granted them.[75]
    38. We can gratefully acknowledge how technology has “remedied countless evils which used to harm and limit human beings,”[76] a fact for which we should rejoice. Nevertheless, not all technological advancements in themselves represent genuine human progress.[77] The Church is particularly opposed to those applications that threaten the sanctity of life or the dignity of the human person.[78] Like any human endeavor, technological development must be directed to serve the human person and contribute to the pursuit of “greater justice, more extensive fraternity, and a more humane order of social relations,” which are “more valuable than advances in the technical field.”[79] Concerns about the ethical implications of technological development are shared not only within the Church but also among many scientists, technologists, and professional associations, who increasingly call for ethical reflection to guide this development in a responsible way.
    39. To address these challenges, it is essential to emphasize the importance of moral responsibility grounded in the dignity and vocation of the human person. This guiding principle also applies to questions concerning AI. In this context, the ethical dimension takes on primary importance because it is people who design systems and determine the purposes for which they are used.[80] Between a machine and a human being, only the latter is truly a moral agent—a subject of moral responsibility who exercises freedom in his or her decisions and accepts their consequences.[81] It is not the machine but the human who is in relationship with truth and goodness, guided by a moral conscience that calls the person “to love and to do what is good and to avoid evil,”[82] bearing witness to “the authority of truth in reference to the supreme Good to which the human person is drawn.”[83] Likewise, between a machine and a human, only the human can be sufficiently self-aware to the point of listening and following the voice of conscience, discerning with prudence, and seeking the good that is possible in every situation.[84] In fact, all of this also belongs to the person’s exercise of intelligence.
    40. Like any product of human creativity, AI can be directed toward positive or negative ends.[85] When used in ways that respect human dignity and promote the well-being of individuals and communities, it can contribute positively to the human vocation. Yet, as in all areas where humans are called to make decisions, the shadow of evil also looms here. Where human freedom allows for the possibility of choosing what is wrong, the moral evaluation of this technology will need to take into account how it is directed and used.
    41. At the same time, it is not only the ends that are ethically significant but also the means employed to achieve them. Additionally, the overall vision and understanding of the human person embedded within these systems are important to consider as well. Technological products reflect the worldview of their developers, owners, users, and regulators,[86] and have the power to “shape the world and engage consciences on the level of values.”[87] On a societal level, some technological developments could also reinforce relationships and power dynamics that are inconsistent with a proper understanding of the human person and society.
    42. Therefore, the ends and the means used in a given application of AI, as well as the overall vision it incorporates, must all be evaluated to ensure they respect human dignity and promote the common good.[88] As Pope Francis has stated, “the intrinsic dignity of every man and every woman” must be “the key criterion in evaluating emerging technologies; these will prove ethically sound to the extent that they help respect that dignity and increase its expression at every level of human life,”[89] including in the social and economic spheres. In this sense, human intelligence plays a crucial role not only in designing and producing technology but also in directing its use in line with the authentic good of the human person.[90] The responsibility for managing this wisely pertains to every level of society, guided by the principle of subsidiarity and other principles of Catholic Social Teaching.
    Helping Human Freedom and Decision-Making
    43. The commitment to ensuring that AI always supports and promotes the supreme value of the dignity of every human being and the fullness of the human vocation serves as a criterion of discernment for developers, owners, operators, and regulators of AI, as well as to its users. It remains valid for every application of the technology at every level of its use.
    44. An evaluation of the implications of this guiding principle could begin by considering the importance of moral responsibility. Since full moral causality belongs only to personal agents, not artificial ones, it is crucial to be able to identify and define who bears responsibility for the processes involved in AI, particularly those capable of learning, correction, and reprogramming. While bottom-up approaches and very deep neural networks enable AI to solve complex problems, they make it difficult to understand the processes that lead to the solutions they adopted. This complicates accountability since if an AI application produces undesired outcomes, determining who is responsible becomes difficult. To address this problem, attention needs to be given to the nature of accountability processes in complex, highly automated settings, where results may only become evident in the medium to long term. For this, it is important that ultimate responsibility for decisions made using AI rests with the human decision-makers and that there is accountability for the use of AI at each stage of the decision-making process.[91]
    45. In addition to determining who is responsible, it is essential to identify the objectives given to AI systems. Although these systems may use unsupervised autonomous learning mechanisms and sometimes follow paths that humans cannot reconstruct, they ultimately pursue goals that humans have assigned to them and are governed by processes established by their designers and programmers. Yet, this presents a challenge because, as AI models become increasingly capable of independent learning, the ability to maintain control over them to ensure that such applications serve human purposes may effectively diminish. This raises the critical question of how to ensure that AI systems are ordered for the good of people and not against them.
    46. While responsibility for the ethical use of AI systems starts with those who develop, produce, manage, and oversee such systems, it is also shared by those who use them. As Pope Francis noted, the machine “makes a technical choice among several possibilities based either on well-defined criteria or on statistical inferences. Human beings, however, not only choose, but in their hearts are capable of deciding.”[92] Those who use AI to accomplish a task and follow its results create a context in which they are ultimately responsible for the power they have delegated. Therefore, insofar as AI can assist humans in making decisions, the algorithms that govern it should be trustworthy, secure, robust enough to handle inconsistencies, and transparent in their operation to mitigate biases and unintended side effects.[93] Regulatory frameworks should ensure that all legal entities remain accountable for the use of AI and all its consequences, with appropriate safeguards for transparency, privacy, and accountability.[94] Moreover, those using AI should be careful not to become overly dependent on it for their decision-making, a trend that increases contemporary society’s already high reliance on technology.
    47. The Church’s moral and social teaching provides resources to help ensure that AI is used in a way that preserves human agency. Considerations about justice, for example, should also address issues such as fostering just social dynamics, upholding international security, and promoting peace. By exercising prudence, individuals and communities can discern ways to use AI to benefit humanity while avoiding applications that could degrade human dignity or harm the environment. In this context, the concept of responsibility should be understood not only in its most limited sense but as a “responsibility for the care for others, which is more than simply accounting for results achieved.”[95]
    48. Therefore, AI, like any technology, can be part of a conscious and responsible answer to humanity’s vocation to the good. However, as previously discussed, AI must be directed by human intelligence to align with this vocation, ensuring it respects the dignity of the human person. Recognizing this “exalted dignity,” the Second Vatican Council affirmed that “the social order and its development must invariably work to the benefit of the human person.”[96] In light of this, the use of AI, as Pope Francis said, must be “accompanied by an ethic inspired by a vision of the common good, an ethic of freedom, responsibility, and fraternity, capable of fostering the full development of people in relation to others and to the whole of creation.”[97]
    V. Specific Questions
    49. Within this general perspective, some observations follow below to illustrate how the preceding arguments can help provide an ethical orientation in practical situations, in line with the “wisdom of heart” that Pope Francis has proposed.[98] While not exhaustive, this discussion is offered in service of the dialogue that considers how AI can be used to uphold the dignity of the human person and promote the common good.[99]
    AI and Society
    50. As Pope Francis observed, “the inherent dignity of each human being and the fraternity that binds us together as members of the one human family must undergird the development of new technologies and serve as indisputable criteria for evaluating them before they are employed.”[100]
    51. Viewed through this lens, AI could “introduce important innovations in agriculture, education and culture, an improved level of life for entire nations and peoples, and the growth of human fraternity and social friendship,” and thus be “used to promote integral human development.”[101] AI could also help organizations identify those in need and counter discrimination and marginalization. These and other similar applications of this technology could contribute to human development and the common good.[102]
    52. However, while AI holds many possibilities for promoting the good, it can also hinder or even counter human development and the common good. Pope Francis has noted that “evidence to date suggests that digital technologies have increased inequality in our world. Not just differences in material wealth, which are also significant, but also differences in access to political and social influence.”[103] In this sense, AI could be used to perpetuate marginalization and discrimination, create new forms of poverty, widen the “digital divide,” and worsen existing social inequalities.[104]
    53. Moreover, the concentration of the power over mainstream AI applications in the hands of a few powerful companies raises significant ethical concerns. Exacerbating this problem is the inherent nature of AI systems, where no single individual can exercise complete oversight over the vast and complex datasets used for computation. This lack of well-defined accountability creates the risk that AI could be manipulated for personal or corporate gain or to direct public opinion for the benefit of a specific industry. Such entities, motivated by their own interests, possess the capacity to exercise “forms of control as subtle as they are invasive, creating mechanisms for the manipulation of consciences and of the democratic process.”[105]
    54. Furthermore, there is the risk of AI being used to promote what Pope Francis has called the “technocratic paradigm,” which perceives all the world’s problems as solvable through technological means alone.[106] In this paradigm, human dignity and fraternity are often set aside in the name of efficiency, “as if reality, goodness, and truth automatically flow from technological and economic power as such.”[107] Yet, human dignity and the common good must never be violated for the sake of efficiency,[108] for “technological developments that do not lead to an improvement in the quality of life of all humanity, but on the contrary, aggravate inequalities and conflicts, can never count as true progress.”[109] Instead, AI should be put “at the service of another type of progress, one which is healthier, more human, more social, more integral.”[110]
    55. Achieving this objective requires a deeper reflection on the relationship between autonomy and responsibility. Greater autonomy heightens each person’s responsibility across various aspects of communal life. For Christians, the foundation of this responsibility lies in the recognition that all human capacities, including the person’s autonomy, come from God and are meant to be used in the service of others.[111] Therefore, rather than merely pursuing economic or technological objectives, AI should serve “the common good of the entire human family,” which is “the sum total of social conditions that allow people, either as groups or as individuals, to reach their fulfillment more fully and more easily.”[112]
    AI and Human Relationships
    56. The Second Vatican Council observed that “by his innermost nature man is a social being; and if he does not enter into relations with others, he can neither live nor develop his gifts.”[113] This conviction underscores that living in society is intrinsic to the nature and vocation of the human person.[114] As social beings, we seek relationships that involve mutual exchange and the pursuit of truth, in the course of which, people “share with each other the truth they have discovered, or think they have discovered, in such a way that they help one another in the search for truth.”[115]
    57. Such a quest, along with other aspects of human communication, presupposes encounters and mutual exchange between individuals shaped by their unique histories, thoughts, convictions, and relationships. Nor can we forget that human intelligence is a diverse, multifaceted, and complex reality: individual and social, rational and affective, conceptual and symbolic. Pope Francis underscores this dynamic, noting that “together, we can seek the truth in dialogue, in relaxed conversation or in passionate debate. To do so calls for perseverance; it entails moments of silence and suffering, yet it can patiently embrace the broader experience of individuals and peoples. […] The process of building fraternity, be it local or universal, can only be undertaken by spirits that are free and open to authentic encounters.”[116]
    58. It is in this context that one can consider the challenges AI poses to human relationships. Like other technological tools, AI has the potential to foster connections within the human family. However, it could also hinder a true encounter with reality and, ultimately, lead people to “a deep and melancholic dissatisfaction with interpersonal relations, or a harmful sense of isolation.”[117] Authentic human relationships require the richness of being with others in their pain, their pleas, and their joy.[118] Since human intelligence is expressed and enriched also in interpersonal and embodied ways, authentic and spontaneous encounters with others are indispensable for engaging with reality in its fullness.
    59. Because “true wisdom demands an encounter with reality,”[119] the rise of AI introduces another challenge. Since AI can effectively imitate the products of human intelligence, the ability to know when one is interacting with a human or a machine can no longer be taken for granted. Generative AI can produce text, speech, images, and other advanced outputs that are usually associated with human beings. Yet, it must be understood for what it is: a tool, not a person.[120] This distinction is often obscured by the language used by practitioners, which tends to anthropomorphize AI and thus blurs the line between human and machine.
    60. Anthropomorphizing AI also poses specific challenges for the development of children, potentially encouraging them to develop patterns of interaction that treat human relationships in a transactional manner, as one would relate to a chatbot. Such habits could lead young people to see teachers as mere dispensers of information rather than as mentors who guide and nurture their intellectual and moral growth. Genuine relationships, rooted in empathy and a steadfast commitment to the good of the other, are essential and irreplaceable in fostering the full development of the human person.
    61. In this context, it is important to clarify that, despite the use of anthropomorphic language, no AI application can genuinely experience empathy. Emotions cannot be reduced to facial expressions or phrases generated in response to prompts; they reflect the way a person, as a whole, relates to the world and to his or her own life, with the body playing a central role. True empathy requires the ability to listen, recognize another’s irreducible uniqueness, welcome their otherness, and grasp the meaning behind even their silences.[121] Unlike the realm of analytical judgment in which AI excels, true empathy belongs to the relational sphere. It involves intuiting and apprehending the lived experiences of another while maintaining the distinction between self and other.[122] While AI can simulate empathetic responses, it cannot replicate the eminently personal and relational nature of authentic empathy.[123]
    62. In light of the above, it is clear why misrepresenting AI as a person should always be avoided; doing so for fraudulent purposes is a grave ethical violation that could erode social trust. Similarly, using AI to deceive in other contexts—such as in education or in human relationships, including the sphere of sexuality—is also to be considered immoral and requires careful oversight to prevent harm, maintain transparency, and ensure the dignity of all people.[124]
    63. In an increasingly isolated world, some people have turned to AI in search of deep human relationships, simple companionship, or even emotional bonds. However, while human beings are meant to experience authentic relationships, AI can only simulate them. Nevertheless, such relationships with others are an integral part of how a person grows to become who he or she is meant to be. If AI is used to help people foster genuine connections between people, it can contribute positively to the full realization of the person. Conversely, if we replace relationships with God and with others with interactions with technology, we risk replacing authentic relationality with a lifeless image (cf. Ps. 106:20; Rom. 1:22-23). Instead of retreating into artificial worlds, we are called to engage in a committed and intentional way with reality, especially by identifying with the poor and suffering, consoling those in sorrow, and forging bonds of communion with all.
    AI, the Economy, and Labor
    64. Due to its interdisciplinary nature, AI is being increasingly integrated into economic and financial systems. Significant investments are currently being made not only in the technology sector but also in energy, finance, and media, particularly in the areas of marketing and sales, logistics, technological innovation, compliance, and risk management. At the same time, AI’s applications in these areas have also highlighted its ambivalent nature, as a source of tremendous opportunities but also profound risks. A first real critical point in this area concerns the possibility that—due to the concentration of AI applications in the hands of a few corporations—only those large companies would benefit from the value created by AI rather than the businesses that use it.
    65. Other broader aspects of AI’s impact on the economic-financial sphere must also be carefully examined, particularly concerning the interaction between concrete reality and the digital world. One important consideration in this regard involves the coexistence of diverse and alternative forms of economic and financial institutions within a given context. This factor should be encouraged, as it can bring benefits in how it supports the real economy by fostering its development and stability, especially during times of crisis. Nevertheless, it should be stressed that digital realities, not restricted by any spatial bonds, tend to be more homogeneous and impersonal than communities rooted in a particular place and a specific history, with a common journey characterized by shared values and hopes, but also by inevitable disagreements and divergences. This diversity is an undeniable asset to a community’s economic life. Turning over the economy and finance entirely to digital technology would reduce this variety and richness. As a result, many solutions to economic problems that can be reached through natural dialogue between the involved parties may no longer be attainable in a world dominated by procedures and only the appearance of nearness.
    66. Another area where AI is already having a profound impact is the world of work. As in many other fields, AI is driving fundamental transformations across many professions, with a range of effects. On the one hand, it has the potential to enhance expertise and productivity, create new jobs, enable workers to focus on more innovative tasks, and open new horizons for creativity and innovation.
    67. However, while AI promises to boost productivity by taking over mundane tasks, it frequently forces workers to adapt to the speed and demands of machines rather than machines being designed to support those who work. As a result, contrary to the advertised benefits of AI, current approaches to the technology can paradoxically deskill workers, subject them to automated surveillance, and relegate them to rigid and repetitive tasks. The need to keep up with the pace of technology can erode workers’ sense of agency and stifle the innovative abilities they are expected to bring to their work.[125]
    68. AI is currently eliminating the need for some jobs that were once performed by humans. If AI is used to replace human workers rather than complement them, there is a “substantial risk of disproportionate benefit for the few at the price of the impoverishment of many.”[126] Additionally, as AI becomes more powerful, there is an associated risk that human labor may lose its value in the economic realm. This is the logical consequence of the technocratic paradigm: a world of humanity enslaved to efficiency, where, ultimately, the cost of humanity must be cut. Yet, human lives are intrinsically valuable, independent of their economic output. Nevertheless, the “current model,” Pope Francis explains, “does not appear to favor an investment in efforts to help the slow, the weak, or the less talented to find opportunities in life.”[127] In light of this, “we cannot allow a tool as powerful and indispensable as Artificial Intelligence to reinforce such a paradigm, but rather, we must make Artificial Intelligence a bulwark against its expansion.”[128]
    69. It is important to remember that “the order of things must be subordinate to the order of persons, and not the other way around.”[129] Human work must not only be at the service of profit but at “the service of the whole human person […] taking into account the person’s material needs and the requirements of his or her intellectual, moral, spiritual, and religious life.”[130] In this context, the Church recognizes that work is “not only a means of earning one’s daily bread” but is also “an essential dimension of social life” and “a means […] of personal growth, the building of healthy relationships, self-expression and the exchange of gifts. Work gives us a sense of shared responsibility for the development of the world, and ultimately, for our life as a people.”[131]
    70. Since work is a “part of the meaning of life on this earth, a path to growth, human development and personal fulfillment,” “the goal should not be that technological progress increasingly replaces human work, for this would be detrimental to humanity”[132]—rather, it should promote human labor. Seen in this light, AI should assist, not replace, human judgment. Similarly, it must never degrade creativity or reduce workers to mere “cogs in a machine.” Therefore, “respect for the dignity of laborers and the importance of employment for the economic well-being of individuals, families, and societies, for job security and just wages, ought to be a high priority for the international community as these forms of technology penetrate more deeply into our workplaces.”[133]
    AI and Healthcare
    71. As participants in God’s healing work, healthcare professionals have the vocation and responsibility to be “guardians and servants of human life.”[134] Because of this, the healthcare profession carries an “intrinsic and undeniable ethical dimension,” recognized by the Hippocratic Oath, which obliges physicians and healthcare professionals to commit themselves to having “absolute respect for human life and its sacredness.”[135] Following the example of the Good Samaritan, this commitment is to be carried out by men and women “who reject the creation of a society of exclusion, and act instead as neighbors, lifting up and rehabilitating the fallen for the sake of the common good.”[136]
    72. Seen in this light, AI seems to hold immense potential in a variety of applications in the medical field, such as assisting the diagnostic work of healthcare providers, facilitating relationships between patients and medical staff, offering new treatments, and expanding access to quality care also for those who are isolated or marginalized. In these ways, the technology could enhance the “compassionate and loving closeness”[137] that healthcare providers are called to extend to the sick and suffering.
    73. However, if AI is used not to enhance but to replace the relationship between patients and healthcare providers—leaving patients to interact with a machine rather than a human being—it would reduce a crucially important human relational structure to a centralized, impersonal, and unequal framework. Instead of encouraging solidarity with the sick and suffering, such applications of AI would risk worsening the loneliness that often accompanies illness, especially in the context of a culture where “persons are no longer seen as a paramount value to be cared for and respected.”[138] This misuse of AI would not align with respect for the dignity of the human person and solidarity with the suffering.
    74. Responsibility for the well-being of patients and the decisions that touch upon their lives are at the heart of the healthcare profession. This accountability requires medical professionals to exercise all their skill and intelligence in making well-reasoned and ethically grounded choices regarding those entrusted to their care, always respecting the inviolable dignity of the patients and the need for informed consent. As a result, decisions regarding patient treatment and the weight of responsibility they entail must always remain with the human person and should never be delegated to AI.[139]
    75. In addition, using AI to determine who should receive treatment based predominantly on economic measures or metrics of efficiency represents a particularly problematic instance of the “technocratic paradigm” that must be rejected.[140] For, “optimizing resources means using them in an ethical and fraternal way, and not penalizing the most fragile.”[141] Additionally, AI tools in healthcare are “exposed to forms of bias and discrimination,” where “systemic errors can easily multiply, producing not only injustices in individual cases but also, due to the domino effect, real forms of social inequality.”[142]
    76. The integration of AI into healthcare also poses the risk of amplifying other existing disparities in access to medical care. As healthcare becomes increasingly oriented toward prevention and lifestyle-based approaches, AI-driven solutions may inadvertently favor more affluent populations who already enjoy better access to medical resources and quality nutrition. This trend risks reinforcing a “medicine for the rich” model, where those with financial means benefit from advanced preventative tools and personalized health information while others struggle to access even basic services. To prevent such inequities, equitable frameworks are needed to ensure that the use of AI in healthcare does not worsen existing healthcare inequalities but rather serves the common good.
    AI and Education
    77. The words of the Second Vatican Council remain fully relevant today: “True education strives to form individuals with a view toward their final end and the good of the society to which they belong.”[143] As such, education is “never a mere process of passing on facts and intellectual skills: rather, its aim is to contribute to the person’s holistic formation in its various aspects (intellectual, cultural, spiritual, etc.), including, for example, community life and relations within the academic community,”[144] in keeping with the nature and dignity of the human person.
    78. This approach involves a commitment to cultivating the mind, but always as a part of the integral development of the person: “We must break that idea of education which holds that educating means filling one’s head with ideas. That is the way we educate automatons, cerebral minds, not people. Educating is taking a risk in the tension between the mind, the heart, and the hands.”[145]
    79. At the center of this work of forming the whole human person is the indispensable relationship between teacher and student. Teachers do more than convey knowledge; they model essential human qualities and inspire the joy of discovery.[146] Their presence motivates students both through the content they teach and the care they demonstrate for their students. This bond fosters trust, mutual understanding, and the capacity to address each person’s unique dignity and potential. On the part of the student, this can generate a genuine desire to grow. The physical presence of a teacher creates a relational dynamic that AI cannot replicate, one that deepens engagement and nurtures the student’s integral development.
    80. In this context, AI presents both opportunities and challenges. If used in a prudent manner, within the context of an existing teacher-student relationship and ordered to the authentic goals of education, AI can become a valuable educational resource by enhancing access to education, offering tailored support, and providing immediate feedback to students. These benefits could enhance the learning experience, especially in cases where individualized attention is needed, or educational resources are otherwise scarce.
    81. Nevertheless, an essential part of education is forming “the intellect to reason well in all matters, to reach out towards truth, and to grasp it,”[147] while helping the “language of the head” to grow harmoniously with the “language of the heart” and the “language of the hands.”[148] This is all the more vital in an age marked by technology, in which “it is no longer merely a question of ‘using’ instruments of communication, but of living in a highly digitalized culture that has had a profound impact on […] our ability to communicate, learn, be informed and enter into relationship with others.”[149] However, instead of fostering “a cultivated intellect,” which “brings with it a power and a grace to every work and occupation that it undertakes,”[150] the extensive use of AI in education could lead to the students’ increased reliance on technology, eroding their ability to perform some skills independently and worsening their dependence on screens.[151]
    82. Additionally, while some AI systems are designed to help people develop their critical thinking abilities and problem-solving skills, many others merely provide answers instead of prompting students to arrive at answers themselves or write text for themselves.[152] Instead of training young people how to amass information and generate quick responses, education should encourage “the responsible use of freedom to face issues with good sense and intelligence.”[153] Building on this, “education in the use of forms of artificial intelligence should aim above all at promoting critical thinking. Users of all ages, but especially the young, need to develop a discerning approach to the use of data and content collected on the web or produced by artificial intelligence systems. Schools, universities, and scientific societies are challenged to help students and professionals to grasp the social and ethical aspects of the development and uses of technology.”[154]
    83. As Saint John Paul II recalled, “in the world today, characterized by such rapid developments in science and technology, the tasks of a Catholic University assume an ever greater importance and urgency.”[155] In a particular way, Catholic universities are urged to be present as great laboratories of hope at this crossroads of history. In an inter-disciplinary and cross-disciplinary key, they are urged to engage “with wisdom and creativity”[156] in careful research on this phenomenon, helping to draw out the salutary potential within the various fields of science and reality, and guiding them always towards ethically sound applications that clearly serve the cohesion of our societies and the common good, reaching new frontiers in the dialogue between faith and reason.
    84. Moreover, it should be noted that current AI programs have been known to provide biased or fabricated information, which can lead students to trust inaccurate content. This problem “not only runs the risk of legitimizing fake news and strengthening a dominant culture’s advantage, but, in short, it also undermines the educational process itself.”[157] With time, clearer distinctions may emerge between proper and improper uses of AI in education and research. Yet, a decisive guideline is that the use of AI should always be transparent and never misrepresented.
    AI, Misinformation, Deepfakes, and Abuse
    85. AI could be used as an aid to human dignity if it helps people understand complex concepts or directs them to sound resources that support their search for the truth.[158]
    86. However, AI also presents a serious risk of generating manipulated content and false information, which can easily mislead people due to its resemblance to the truth. Such misinformation might occur unintentionally, as in the case of AI “hallucination,” where a generative AI system yields results that appear real but are not. Since generating content that mimics human artifacts is central to AI’s functionality, mitigating these risks proves challenging. Yet, the consequences of such aberrations and false information can be quite grave. For this reason, all those involved in producing and using AI systems should be committed to the truthfulness and accuracy of the information processed by such systems and disseminated to the public.
    87. While AI has a latent potential to generate false information, an even more troubling problem lies in the deliberate misuse of AI for manipulation. This can occur when individuals or organizations intentionally generate and spread false content with the aim to deceive or cause harm, such as “deepfake” images, videos, and audio—referring to a false depiction of a person, edited or generated by an AI algorithm. The danger of deepfakes is particularly evident when they are used to target or harm others. While the images or videos themselves may be artificial, the damage they cause is real, leaving “deep scars in the hearts of those who suffer it” and “real wounds in their human dignity.”[159]
    88. On a broader scale, by distorting “our relationship with others and with reality,”[160] AI-generated fake media can gradually undermine the foundations of society. This issue requires careful regulation, as misinformation—especially through AI-controlled or influenced media—can spread unintentionally, fueling political polarization and social unrest. When society becomes indifferent to the truth, various groups construct their own versions of “facts,” weakening the “reciprocal ties and mutual dependencies”[161] that underpin the fabric of social life. As deepfakes cause people to question everything and AI-generated false content erodes trust in what they see and hear, polarization and conflict will only grow. Such widespread deception is no trivial matter; it strikes at the core of humanity, dismantling the foundational trust on which societies are built.[162]
    89. Countering AI-driven falsehoods is not only the work of industry experts—it requires the efforts of all people of goodwill. “If technology is to serve human dignity and not harm it, and if it is to promote peace rather than violence, then the human community must be proactive in addressing these trends with respect to human dignity and the promotion of the good.”[163] Those who produce and share AI-generated content should always exercise diligence in verifying the truth of what they disseminate and, in all cases, should “avoid the sharing of words and images that are degrading of human beings, that promote hatred and intolerance, that debase the goodness and intimacy of human sexuality or that exploit the weak and vulnerable.”[164] This calls for the ongoing prudence and careful discernment of all users regarding their activity online.[165]
    AI, Privacy, and Surveillance
    90. Humans are inherently relational, and the data each person generates in the digital world can be seen as an objectified expression of this relational nature. Data conveys not only information but also personal and relational knowledge, which, in an increasingly digitized context, can amount to power over the individual. Moreover, while some types of data may pertain to public aspects of a person’s life, others may touch upon the individual’s interiority, perhaps even their conscience. Seen in this way, privacy plays an essential role in protecting the boundaries of a person’s inner life, preserving their freedom to relate to others, express themselves, and make decisions without undue control. This protection is also tied to the defense of religious freedom, as surveillance can also be misused to exert control over the lives of believers and how they express their faith.
    91. It is appropriate, therefore, to address the issue of privacy from a concern for the legitimate freedom and inalienable dignity of the human person “in all circumstances.”[166] The Second Vatican Council included the right “to safeguard privacy” among the fundamental rights “necessary for living a genuinely human life,” a right that should be extended to all people on account of their “sublime dignity.”[167] Furthermore, the Church has also affirmed the right to the legitimate respect for a private life in the context of affirming the person’s right to a good reputation, defense of their physical and mental integrity, and freedom from harm or undue intrusion[168]—essential components of the due respect for the intrinsic dignity of the human person.[169]
    92. Advances in AI-powered data processing and analysis now make it possible to infer patterns in a person’s behavior and thinking from even a small amount of information, making the role of data privacy even more imperative as a safeguard for the dignity and relational nature of the human person. As Pope Francis observed, “while closed and intolerant attitudes towards others are on the rise, distances are otherwise shrinking or disappearing to the point that the right to privacy scarcely exists. Everything has become a kind of spectacle to be examined and inspected, and people’s lives are now under constant surveillance.”[170]
    93. While there can be legitimate and proper ways to use AI in keeping with human dignity and the common good, using it for surveillance aimed at exploiting, restricting others’ freedom, or benefitting a few at the expense of the many is unjustifiable. The risk of surveillance overreach must be monitored by appropriate regulators to ensure transparency and public accountability. Those responsible for surveillance should never exceed their authority, which must always favor the dignity and freedom of every person as the essential basis of a just and humane society.
    94. Furthermore, “fundamental respect for human dignity demands that we refuse to allow the uniqueness of the person to be identified with a set of data.”[171] This especially applies when AI is used to evaluate individuals or groups based on their behavior, characteristics, or history—a practice known as “social scoring”: “In social and economic decision-making, we should be cautious about delegating judgments to algorithms that process data, often collected surreptitiously, on an individual’s makeup and prior behavior. Such data can be contaminated by societal prejudices and preconceptions. A person’s past behavior should not be used to deny him or her the opportunity to change, grow, and contribute to society. We cannot allow algorithms to limit or condition respect for human dignity, or to exclude compassion, mercy, forgiveness, and above all, the hope that people are able to change.”[172]
    AI and the Protection of Our Common Home
    95. AI has many promising applications for improving our relationship with our “common home,” such as creating models to forecast extreme climate events, proposing engineering solutions to reduce their impact, managing relief operations, and predicting population shifts.[173] Additionally, AI can support sustainable agriculture, optimize energy usage, and provide early warning systems for public health emergencies. These advancements have the potential to strengthen resilience against climate-related challenges and promote more sustainable development.
    96. At the same time, current AI models and the hardware required to support them consume vast amounts of energy and water, significantly contributing to CO2 emissions and straining resources. This reality is often obscured by the way this technology is presented in the popular imagination, where words such as “the cloud”[174] can give the impression that data is stored and processed in an intangible realm, detached from the physical world. However, “the cloud” is not an ethereal domain separate from the physical world; as with all computing technologies, it relies on physical machines, cables, and energy. The same is true of the technology behind AI. As these systems grow in complexity, especially large language models (LLMs), they require ever-larger datasets, increased computational power, and greater storage infrastructure. Considering the heavy toll these technologies take on the environment, it is vital to develop sustainable solutions that reduce their impact on our common home.
    97. Even then, as Pope Francis teaches, it is essential “that we look for solutions not only in technology but in a change of humanity.”[175] A complete and authentic understanding of creation recognizes that the value of all created things cannot be reduced to their mere utility. Therefore, a fully human approach to the stewardship of the earth rejects the distorted anthropocentrism of the technocratic paradigm, which seeks to “extract everything possible” from the world,[176] and rejects the “myth of progress,” which assumes that “ecological problems will solve themselves simply with the application of new technology and without any need for ethical considerations or deep change.”[177] Such a mindset must give way to a more holistic approach that respects the order of creation and promotes the integral good of the human person while safeguarding our common home.[178]
    AI and Warfare
    98. The Second Vatican Council and the consistent teaching of the Popes since then have insisted that peace is not merely the absence of war and is not limited to maintaining a balance of powers between adversaries. Instead, in the words of Saint Augustine, peace is “the tranquility of order.”[179] Indeed, peace cannot be attained without safeguarding the goods of persons, free communication, respect for the dignity of persons and peoples, and the assiduous practice of fraternity. Peace is the work of justice and the effect of charity and cannot be achieved through force alone; instead, it must be principally built through patient diplomacy, the active promotion of justice, solidarity, integral human development, and respect for the dignity of all people.[180] In this way, the tools used to maintain peace should never be allowed to justify injustice, violence, or oppression. Instead, they should always be governed by a “firm determination to respect other people and nations, along with their dignity, as well as the deliberate practice of fraternity.”[181]
    99. While AI’s analytical abilities could help nations seek peace and ensure security, the “weaponization of Artificial Intelligence” can also be highly problematic. Pope Francis has observed that “the ability to conduct military operations through remote control systems has led to a lessened perception of the devastation caused by those weapon systems and the burden of responsibility for their use, resulting in an even more cold and detached approach to the immense tragedy of war.”[182] Moreover, the ease with which autonomous weapons make war more viable militates against the principle of war as a last resort in legitimate self-defense,[183] potentially increasing the instruments of war well beyond the scope of human oversight and precipitating a destabilizing arms race, with catastrophic consequences for human rights.[184]
    100. In particular, Lethal Autonomous Weapon Systems, which are capable of identifying and striking targets without direct human intervention, are a “cause for grave ethical concern” because they lack the “unique human capacity for moral judgment and ethical decision-making.”[185] For this reason, Pope Francis has urgently called for a reconsideration of the development of these weapons and a prohibition on their use, starting with “an effective and concrete commitment to introduce ever greater and proper human control. No machine should ever choose to take the life of a human being.”[186]
    101. Since it is a small step from machines that can kill autonomously with precision to those capable of large-scale destruction, some AI researchers have expressed concerns that such technology poses an “existential risk” by having the potential to act in ways that could threaten the survival of entire regions or even of humanity itself. This danger demands serious attention, reflecting the long-standing concern about technologies that grant war “an uncontrollable destructive power over great numbers of innocent civilians,”[187] without even sparing children. In this context, the call from Gaudium et Spes to “undertake an evaluation of war with an entirely new attitude”[188] is more urgent than ever.
    102. At the same time, while the theoretical risks of AI deserve attention, the more immediate and pressing concern lies in how individuals with malicious intentions might misuse this technology.[189] Like any tool, AI is an extension of human power, and while its future capabilities are unpredictable, humanity’s past actions provide clear warnings. The atrocities committed throughout history are enough to raise deep concerns about the potential abuses of AI.
    103. Saint John Paul II observed that “humanity now has instruments of unprecedented power: we can turn this world into a garden, or reduce it to a pile of rubble.”[190] Given this fact, the Church reminds us, in the words of Pope Francis, that “we are free to apply our intelligence towards things evolving positively,” or toward “decadence and mutual destruction.”[191] To prevent humanity from spiraling into self-destruction,[192] there must be a clear stand against all applications of technology that inherently threaten human life and dignity. This commitment requires careful discernment about the use of AI, particularly in military defense applications, to ensure that it always respects human dignity and serves the common good. The development and deployment of AI in armaments should be subject to the highest levels of ethical scrutiny, governed by a concern for human dignity and the sanctity of life.[193]
    AI and Our Relationship with God
    104. Technology offers remarkable tools to oversee and develop the world’s resources. However, in some cases, humanity is increasingly ceding control of these resources to machines. Within some circles of scientists and futurists, there is optimism about the potential of artificial general intelligence (AGI), a hypothetical form of AI that would match or surpass human intelligence and bring about unimaginable advancements. Some even speculate that AGI could achieve superhuman capabilities. At the same time, as society drifts away from a connection with the transcendent, some are tempted to turn to AI in search of meaning or fulfillment—longings that can only be truly satisfied in communion with God.[194]
    105. However, the presumption of substituting God for an artifact of human making is idolatry, a practice Scripture explicitly warns against (e.g., Ex. 20:4; 32:1-5; 34:17). Moreover, AI may prove even more seductive than traditional idols for, unlike idols that “have mouths but do not speak; eyes, but do not see; ears, but do not hear” (Ps. 115:5-6), AI can “speak,” or at least gives the illusion of doing so (cf. Rev. 13:15). Yet, it is vital to remember that AI is but a pale reflection of humanity—it is crafted by human minds, trained on human-generated material, responsive to human input, and sustained through human labor. AI cannot possess many of the capabilities specific to human life, and it is also fallible. By turning to AI as a perceived “Other” greater than itself, with which to share existence and responsibilities, humanity risks creating a substitute for God. However, it is not AI that is ultimately deified and worshipped, but humanity itself—which, in this way, becomes enslaved to its own work.[195]
    106. While AI has the potential to serve humanity and contribute to the common good, it remains a creation of human hands, bearing “the imprint of human art and ingenuity” (Acts 17:29). It must never be ascribed undue worth. As the Book of Wisdom affirms: “For a man made them, and one whose spirit is borrowed formed them; for no man can form a god which is like himself. He is mortal, and what he makes with lawless hands is dead, for he is better than the objects he worships since he has life, but they never have” (Wis. 15:16-17).
    107. In contrast, human beings, “by their interior life, transcend the entire material universe; they experience this deep interiority when they enter into their own heart, where God, who probes the heart, awaits them, and where they decide their own destiny in the sight of God.”[196] It is within the heart, as Pope Francis reminds us, that each individual discovers the “mysterious connection between self-knowledge and openness to others, between the encounter with one’s personal uniqueness and the willingness to give oneself to others.”[197] Therefore, it is the heart alone that is “capable of setting our other powers and passions, and our entire person, in a stance of reverence and loving obedience before the Lord,”[198] who “offers to treat each one of us as a ‘Thou,’ always and forever.”[199]
    VI. Concluding Reflections
    108. Considering the various challenges posed by advances in technology, Pope Francis emphasized the need for growth in “human responsibility, values, and conscience,” proportionate to the growth in the potential that this technology brings[200]—recognizing that “with an increase in human power comes a broadening of responsibility on the part of individuals and communities.”[201]
    109. At the same time, the “essential and fundamental question” remains “whether in the context of this progress man, as man, is becoming truly better, that is to say, more mature spiritually, more aware of the dignity of his humanity, more responsible, more open to others, especially the neediest and the weakest, and readier to give and to aid all.”[202]
    110. As a result, it is crucial to know how to evaluate individual applications of AI in particular contexts to determine whether its use promotes human dignity, the vocation of the human person, and the common good. As with many technologies, the effects of the various uses of AI may not always be predictable from their inception. As these applications and their social impacts become clearer, appropriate responses should be made at all levels of society, following the principle of subsidiarity. Individual users, families, civil society, corporations, institutions, governments, and international organizations should work at their proper levels to ensure that AI is used for the good of all.
    111. A significant challenge and opportunity for the common good today lies in considering AI within a framework of relational intelligence, which emphasizes the interconnectedness of individuals and communities and highlights our shared responsibility for fostering the integral well-being of others. The twentieth-century philosopher Nicholas Berdyaev observed that people often blame machines for personal and social problems; however, “this only humiliates man and does not correspond to his dignity,” for “it is unworthy to transfer responsibility from man to a machine.”[203] Only the human person can be morally responsible, and the challenges of a technological society are ultimately spiritual in nature. Therefore, facing those challenges “demands an intensification of spirituality.”[204]
    112. A further point to consider is the call, prompted by the appearance of AI on the world stage, for a renewed appreciation of all that is human. Years ago, the French Catholic author Georges Bernanos warned that “the danger is not in the multiplication of machines, but in the ever-increasing number of men accustomed from their childhood to desire only what machines can give.”[205] This challenge is as true today as it was then, as the rapid pace of digitization risks a “digital reductionism,” where non-quantifiable aspects of life are set aside and then forgotten or even deemed irrelevant because they cannot be computed in formal terms. AI should be used only as a tool to complement human intelligence rather than replace its richness.[206] Cultivating those aspects of human life that transcend computation is crucial for preserving “an authentic humanity” that “seems to dwell in the midst of our technological culture, almost unnoticed, like a mist seeping gently beneath a closed door.”[207]
    True Wisdom
    113. The vast expanse of the world’s knowledge is now accessible in ways that would have filled past generations with awe. However, to ensure that advancements in knowledge do not become humanly or spiritually barren, one must go beyond the mere accumulation of data and strive to achieve true wisdom.[208]
    114. This wisdom is the gift that humanity needs most to address the profound questions and ethical challenges posed by AI: “Only by adopting a spiritual way of viewing reality, only by recovering a wisdom of the heart, can we confront and interpret the newness of our time.”[209] Such “wisdom of the heart” is “the virtue that enables us to integrate the whole and its parts, our decisions and their consequences.” It “cannot be sought from machines,” but it “lets itself be found by those who seek it and be seen by those who love it; it anticipates those who desire it, and it goes in search of those who are worthy of it (cf. Wis 6:12-16).”[210]
    115. In a world marked by AI, we need the grace of the Holy Spirit, who “enables us to look at things with God’s eyes, to see connections, situations, events and to uncover their real meaning.”[211]
    116. Since a “person’s perfection is measured not by the information or knowledge they possess, but by the depth of their charity,”[212] how we incorporate AI “to include the least of our brothers and sisters, the vulnerable, and those most in need, will be the true measure of our humanity.”[213] The “wisdom of the heart” can illuminate and guide the human-centered use of this technology to help promote the common good, care for our “common home,” advance the search for the truth, foster integral human development, favor human solidarity and fraternity, and lead humanity to its ultimate goal: happiness and full communion with God.[214]
    117. From this perspective of wisdom, believers will be able to act as moral agents capable of using this technology to promote an authentic vision of the human person and society.[215] This should be done with the understanding that technological progress is part of God’s plan for creation—an activity that we are called to order toward the Paschal Mystery of Jesus Christ, in the continual search for the True and the Good.
    The Supreme Pontiff, Francis, at the Audience granted on 14 January 2025 to the undersigned Prefects and Secretaries of the Dicastery for the Doctrine of the Faith and the Dicastery for Culture and Education, approved this Note and ordered its publication.
    Given in Rome, at the offices of the Dicastery for the Doctrine of the Faith and the Dicastery for Culture and Education, on 28 January 2025, the Liturgical Memorial of Saint Thomas Aquinas, Doctor of the Church.
    Víctor Manuel Card. Fernández                                         José Card. Tolentino de Mendonça
    Prefect                                                                           Prefect
    Msgr. Armando Matteo                                                    Most Rev. Paul Tighe
    Secretary, Doctrinal Section                                             Secretary, Culture Section
    Ex audientia die 14 ianuarii 2025
    Franciscus
    _________________
    [1] Catechism of the Catholic Church, par. 378. See also Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 34: AAS 58 (1966), 1052-1053.
    [2] Francis, Address to the Participants in the Plenary Assembly of the Pontifical Academy for Life (28 February 2020): AAS 112 (2020), 307. Cf. Id., Christmas Greetings to the Roman Curia (21 December 2019): AAS 112 (2020), 43.
    [3] Cf. Francis, Message for the LVIII World Day of Social Communications (24 January 2024): L’Osservatore Romano, 24 January 2024, 8.
    [4] Cf. Catechism of the Catholic Church, par. 2293; Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 35: AAS 58 (1966), 1053.
    [5] J. McCarthy, et al., “A Proposal for the Dartmouth Summer Research Project on Artificial Intelligence” (31 August 1955), http://www-formal.stanford.edu/jmc/history/dartmouth/dartmouth.html (accessed: 21 October 2024).
    [6] Cf. Francis, Message for the LVII World Day of Peace (1 January 2024), pars. 2-3: L’Osservatore Romano, 14 December 2023, 2.
    [7] Terms in this document describing the outputs or processes of AI are used figuratively to explain its operations and are not intended to anthropomorphize the machine.
    [8] Cf. Francis, Address at the G7 Session on Artificial Intelligence in Borgo Egnazia (Puglia) (14 June 2024): L’Osservatore Romano, 14 June 2024, 3; Id., Message for the LVII World Day of Peace (1 January 2024), par. 2: L’Osservatore Romano, 14 December 2023, 2.
    [9] Here, one can see the primary positions of the “transhumanists” and the “posthumanists.” Transhumanists argue that technological advancements will enable humans to overcome their biological limitations and enhance both their physical and cognitive abilities. Posthumanists, on the other hand, contend that such advances will ultimately alter human identity to the extent that humanity itself may no longer be considered truly “human.” Both views rest on a fundamentally negative perception of human corporality, which treats the body more as an obstacle than as an integral part of the person’s identity and call to full realization. Yet, this negative view of the body is inconsistent with a proper understanding of human dignity. While the Church supports genuine scientific progress, it affirms that human dignity is rooted in “the person as an inseparable unity of body and soul.” Thus, “dignity is also inherent in each person’s body, which participates in its own way in being in imago Dei” (Dicastery for the Doctrine of the Faith, Declaration Dignitas Infinita [8 April 2024], par. 18).
    [10] This approach reflects a functionalist perspective, which reduces the human mind to its functions and assumes that its functions can be entirely quantified in physical or mathematical terms. However, even if a future AGI were to appear truly intelligent, it would still remain functional in nature.
    [11] Cf. A.M. Turing, “Computing Machinery and Intelligence,” Mind 59 (1950) 443-460.
    [12] If “thinking” is attributed to machines, it must be clarified that this refers to calculative thinking rather than critical thinking. Similarly, if machines are said to operate using logical thinking, it must be specified that this is limited to computational logic. On the other hand, by its very nature, human thought is a creative process that eludes programming and transcends constraints.
    [13] On the foundational role of language in shaping understanding, cf. M. Heidegger, Über den Humanismus, Klostermann, Frankfurt am Main 1949 (en. tr. “Letter on Humanism,” in Basic Writings: Martin Heidegger, Routledge, London ‒ New York 2010, 141-182).
    [14] For further discussion of these anthropological and theological foundations, see AI Research Group of the Centre for Digital Culture of the Dicastery for Culture and Education, Encountering Artificial Intelligence: Ethical and Anthropological Investigations(Theological Investigations of Artificial Intelligence 1), M.J. Gaudet, N. Herzfeld, P. Scherz, J.J. Wales, eds., Journal of Moral Theology, Pickwick, Eugene 2024, 43-144.
    [15] Aristotle, Metaphysics, I.1, 980 a 21.
    [16] Cf. Augustine, De Genesi ad litteram III, 20, 30: PL 34, 292: “Man is made in the image of God in relation to that [faculty] by which he is superior to the irrational animals. Now, this [faculty] is reason itself, or the ‘mind,’ or ‘intelligence,’ whatever other name it may more suitably be given”; Id., Enarrationes in Psalmos 54, 3: PL 36, 629: “When considering all that they have, humans discover that they are most distinguished from animals precisely by the fact they possess intelligence.” This is also reiterated by Saint Thomas Aquinas, who states that “man is the most perfect of all earthly beings endowed with motion, and his proper and natural operation is intellection,” by which man abstracts from things and “receives in his mind things actually intelligible” (Thomas Aquinas, Summa Contra Gentiles II, 76).
    [17] Cf. Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 15: AAS 58 (1966), 1036.
    [18] Aquinas, Summa Theologiae, II-II, q. 49, a. 5, ad 3. Cf. ibid., I, q. 79; II-II, q. 47, a. 3; II-II, q. 49, a. 2. For a contemporary perspective that echoes elements of the classical and medieval distinction between these two modes of cognition, cf. D. Kahneman, Thinking, Fast and Slow, New York 2011.
    [19] Aquinas, Summa Theologiae, I, q. 76, a. 1, resp.
    [20] Cf. Irenaeus of Lyon, Adversus Haereses, V, 6, 1: PG 7(2), 1136-1138.
    [21] Dicastery for the Doctrine of the Faith, Declaration Dignitas Infinita (8 April 2024), par. 9. Cf. Francis, Encyclical Letter Fratelli Tutti (3 October 2020), par. 213: AAS 112 (2020), 1045: “The intellect can investigate the reality of things through reflection, experience and dialogue, and come to recognize in that reality, which transcends it, the basis of certain universal moral demands.”
    [22] Cf. Congregation for the Doctrine of the Faith, Doctrinal Note on Some Aspects of Evangelization (3 December 2007), par. 4: AAS 100 (2008), 491-492.
    [23] Catechism of the Catholic Church, par. 365. Cf. Aquinas, Summa Theologiae, I, q. 75, a. 4, resp.
    [24] Indeed, Sacred Scripture “generally considers the human person as a being who exists in the body and is unthinkable outside of it” (Pontifical Biblical Commission, “Che cosa è l’uomo?” (Sal 8,5): Un itinerario di antropologia biblica [30 September 2019], par. 19). Cf. ibid., pars. 20-21, 43-44, 48.
    [25] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 22: AAS 58 (1966), 1042: Cf. Congregation for the Doctrine of the Faith, Instruction Dignitas Personae (8 September 2008), par. 7: AAS 100 (2008), 863: “Christ did not disdain human bodiliness, but instead fully disclosed its meaning and value.”
    [26] Aquinas, Summa Contra Gentiles II, 81.
    [27] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 15: AAS 58 (1966), 1036.
    [28] Cf. Aquinas, Summa Theologiae I, q. 89, a. 1, resp.: “to be separated from the body is not in accordance with [the soul’s] nature […] and hence it is united to the body in order that it may have an existence and an operation suitable to its nature.”
    [29] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 14: AAS 58 (1966), 1035. Cf. Dicastery for the Doctrine of the Faith, Declaration Dignitas Infinita (8 April 2024), par. 18.
    [30] International Theological Commission, Communion and Stewardship: Human Persons Created in the Image of God (2004), par. 56. Cf. Catechism of the Catholic Church, par. 357.
    [31] Cf. Congregation for the Doctrine of the Faith, Instruction Dignitas Personae (8 September 2008), pars. 5, 8; Dicastery for the Doctrine of the Faith, Declaration Dignitas Infinita (8 April 2024), pars. 15, 24, 53-54.
    [32] Catechism of the Catholic Church, par. 356. Cf. ibid., par. 221.
    [33] Cf. Dicastery for the Doctrine of the Faith, Declaration Dignitas Infinita (8 April 2024), pars. 13, 26-27.
    [34] Congregation for the Doctrine of the Faith, Instruction Donum Veritatis (24 May 1990), 6: AAS 82 (1990), 1552. Cf. John Paul II, Encyclical Veritatis Splendor (6 August 1993), par. 109: AAS 85 (1993), 1219. Cf. Pseudo-Dionysius, De divinis nominibus, VII, 2: PG 3, 868B-C: “Human souls also possess reason and with it they circle in discourse around the truth of things. […] [O]n account of the manner in which they are capable of concentrating the many into the one, they too, in their own fashion and as far as they can, are worthy of conceptions like those of the angels” (en. tr. Pseudo-Dionysius: The Complete Works, Paulist Press, New York – Mahwah 1987, 106-107).
    [35] John Paul II, Encyclical Letter Fides et Ratio (14 September 1998), par. 3: AAS 91 (1999), 7.
    [36] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 15: AAS 58 (1966), 1036.
    [37] John Paul II, Encyclical Letter Fides et Ratio (14 September 1998), par. 42: AAS 91 (1999), 38. Cf. Francis, Encyclical Letter Fratelli Tutti (3 October 2020), par. 208: AAS 112 (2020), 1043: “the human mind is capable of transcending immediate concerns and grasping certain truths that are unchanging, as true now as in the past. As it peers into human nature, reason discovers universal values derived from that same nature”; ibid., par. 184: AAS 112 (2020), 1034.
    [38] Cf. B. Pascal, Pensées, no. 267 (ed. Brunschvicg): “The last proceeding of reason is to recognize that there is an infinity of things which are beyond it” (en. tr. Pascal’s Pensées, E.P. Dutton, New York 1958, 77).
    [39] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 15: AAS 58 (1966), 1036. Cf. Congregation for the Doctrine of the Faith, Doctrinal Note on Some Aspects of Evangelization (3 December 2007), par. 4: AAS 100 (2008), 491-492.
    [40] Our semantic capacity allows us to understand messages in any form of communication in a manner that both takes into account and transcends their material or empirical structures (such as computer code). Here, intelligence becomes a wisdom that “enables us to look at things with God’s eyes, to see connections, situations, events and to uncover their real meaning” (Francis, Message for the LVIII World Day of Social Communications [24 January 2024]: L’Osservatore Romano, 24 January 2024, 8). Our creativity enables us to generate new content or ideas, primarily by offering an original viewpoint on reality. Both capacities depend on the existence of a personal subjectivity for their full realization.
    [41] Second Vatican Ecumenical Council, Declaration Dignitatis Humanae (7 December 1965), par. 3: AAS 58 (1966), 931.
    [42] Cf. Francis, Encyclical Letter Fratelli Tutti (3 October 2020), par. 184: AAS 112 (2020), 1034: “Charity, when accompanied by a commitment to the truth, is much more than personal feeling […]. Indeed, its close relation to truth fosters its universality and preserves it from being ‘confined to a narrow field devoid of relationships.’ […] Charity’s openness to truth thus protects it from ‘a fideism that deprives it of its human and universal breadth.’” The internal quotes are from Benedict XVI, Encyclical Letter Caritas in Veritate (29 June 2009), pars. 2-4: AAS 101 (2009), 642-643.
    [43] Cf. International Theological Commission, Communion and Stewardship: Human Persons Created in the Image of God (2004), par. 7.
    [44] John Paul II, Encyclical Letter Fides et Ratio (14 September 1998), par. 13: AAS 91 (1999), 15. Cf. Congregation for the Doctrine of the Faith, Doctrinal Note on Some Aspects of Evangelization (3 December 2007), par. 4: AAS 100 (2008), 491-492.
    [45] John Paul II, Encyclical Letter Fides et Ratio (14 September 1998), par. 13: AAS 91 (1999), 15.
    [46] Bonaventure, In II Librum Sententiarum, d. I, p. 2, a. 2, q. 1; as quoted in Catechism of the Catholic Church, par. 293. Cf. ibid., par. 294.
    [47] Cf. Catechism of the Catholic Church, pars. 295, 299, 302. Bonaventure likens the universe to “a book reflecting, representing, and describing its Maker,” the Triune God who grants existence to all things (Breviloquium 2.12.1). Cf. Alain de Lille, De Incarnatione Christi, PL 210, 579a: “Omnis mundi creatura quasi liber et pictura nobis est et speculum.”
    [48] Cf. Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 67: AAS 107 (2015), 874; John Paul II, Encyclical Letter Laborem Exercens (14 September 1981), par. 6: AAS 73 (1981), 589-592; Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), pars. 33-34: AAS 58 (1966), 1052-1053; International Theological Commission, Communion and Stewardship: Human Persons Created in the Image of God (2004), par. 57: “human beings occupy a unique place in the universe according to the divine plan: they enjoy the privilege of sharing in the divine governance of visible creation. […] Since man’s place as ruler is in fact a participation in the divine governance of creation, we speak of it here as a form of stewardship.”
    [49] Cf. John Paul II, Encyclical Letter Veritatis Splendor (6 August 1993), pars. 38-39: AAS 85 (1993), 1164-1165.
    [50] Cf. Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), pars. 33-34: AAS 58 (1966), 1052-1053. This idea is also reflected in the creation account, where God brings creatures to Adam “to see what he would call them. And whatever [he] called every living creature, that was its name” (Gen. 2:19), an action that demonstrates the active engagement of human intelligence in the stewardship of God’s creation. Cf. John Chrysostom, Homiliae in Genesim, XIV, 17-21: PG 53, 116-117.
    [51] Cf. Catechism of the Catholic Church, par. 301.
    [52] Cf. Catechism of the Catholic Church, par. 302.
    [53] Bonaventure, Breviloquium 2.12.1. Cf. ibid., 2.11.2.
    [54] Cf. Francis, Apostolic Exhortation Evangelii Gaudium (24 November 2013), par. 236: AAS 105 (2023), 1115; Id., Address to Participants in the Meeting of University Chaplains and Pastoral Workers Promoted by the Dicastery for Culture and Education(24 November 2023): L’Osservatore Romano, 24 November 2023, 7.
    [55] Cf. J.H. Newman, The Idea of a University Defined and Illustrated, Discourse 5.1, Basil Montagu Pickering, London 18733, 99-100; Francis, Address to Rectors, Professors, Students and Staff of the Roman Pontifical Universities and Institutions (25 February 2023): AAS 115 (2023), 316.
    [56] Francis, Address to the Members of the National Confederation of Artisans and Small- and Medium-Sized Enterprises (CNA) (15 November 2024): L’Osservatore Romano, 15 November 2024, 8.
    [57] Cf. Francis, Post-Synodal Apostolic Exhortation Querida Amazonia (2 February 2020), par. 41: AAS 112 (2020), 246; Id., Encyclical Letter Laudato Si’ (24 May 2015), par. 146: AAS 107 (2015), 906.
    [58] Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 47: AAS 107 (2015), 864. Cf. Id., Encyclical Letter Dilexit Nos (24 October 2024), pars. 17-24: L’Osservatore Romano, 24 October 2024, 5; Id., Encyclical Letter Fratelli Tutti (3 October 2020), par. 47-50: AAS 112 (2020), 985-987.
    [59] Francis, Encyclical Letter Dilexit Nos (24 October 2024), par. 20: L’Osservatore Romano, 24 October 2024, 5.
    [60] P. Claudel, Conversation sur Jean Racine, Gallimard, Paris 1956, 32: “L’intelligence n’est rien sans la délectation.” Cf. Francis, Encyclical Letter Dilexit Nos (24 October 2024), par. 13: L’Osservatore Romano, 24 October 2024, 5: “The mind and the will are put at the service of the greater good by sensing and savoring truths.”
    [61] Dante, Paradiso, Canto XXX: “luce intellettüal, piena d’amore; / amor di vero ben, pien di letizia; / letizia che trascende ogne dolzore” (en. tr. The Divine Comedy of Dante Alighieri, C.E. Norton, tr., Houghton Mifflin, Boston 1920, 232).
    [62] Cf. Second Vatican Ecumenical Council, Declaration Dignitatis Humanae (7 December 1965), par. 3: AAS 58 (1966), 931: “[T]he highest norm of human life is the divine law itself—eternal, objective and universal, by which God orders, directs and governs the whole world and the ways of the human community according to a plan conceived in his wisdom and love. God has enabled man to participate in this law of his so that, under the gentle disposition of divine providence, many may be able to arrive at a deeper and deeper knowledge of unchangeable truth.” Also cf. Id., Pastoral Constitution Gaudium et Spes (7 December 1965), par. 16: AAS 58 (1966), 1037.
    [63] Cf. First Vatican Council, Dogmatic Constitution Dei Filius (24 April 1870), ch. 4, DH 3016.
    [64] Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 110: AAS 107 (2015), 892.
    [65] Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 110: AAS 107 (2015), 891. Cf. Id., Encyclical Letter Fratelli Tutti (3 October 2020), par. 204: AAS 112 (2020), 1042.
    [66] Cf. John Paul II, Encyclical Letter Centesimus Annus (1 May 1991), par. 11: AAS 83 (1991), 807: “God has imprinted his own image and likeness on man (cf. Gen 1:26), conferring upon him an incomparable dignity […]. In effect, beyond the rights which man acquires by his own work, there exist rights which do not correspond to any work he performs, but which flow from his essential dignity as a person.” Cf. Francis, Address at the G7 Session on Artificial Intelligence in Borgo Egnazia (Puglia) (14 June 2024): L’Osservatore Romano, 14 June 2024, 3-4.
    [67] Cf. Dicastery for the Doctrine of the Faith, Declaration Dignitas Infinita (8 April 2024), par. 8. Cf. ibid., par. 9; Congregation for the Doctrine of the Faith, Instruction Dignitas Personae (8 September 2008), par. 22.
    [68] Francis, Address to the Participants in the Plenary Assembly of the Pontifical Academy for Life (28 February 2020): AAS 112 (2024), 310.
    [69] Francis, Message for the LVIII World Day of Social Communications (24 January 2024): L’Osservatore Romano, 24 January 2024, 8.
    [70] In this sense, “Artificial Intelligence” is understood as a technical term to indicate this technology, recalling that the expression is also used to designate the field of study and not only its applications.
    [71] Cf. Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), pars. 34-35: AAS 58 (1966), 1052-1053; John Paul II, Encyclical Letter Centesimus Annus (1 May 1991), par. 51: AAS 83 (1991), 856-857.
    [72] For example, see the encouragement of scientific exploration in Albertus Magnus (De Mineralibus, II, 2, 1) and the appreciation for the mechanical arts in Hugh of St. Victor (Didascalicon, I, 9). These writers, among a long list of other Catholics engaged in scientific research and technological exploration, illustrate that “faith and science can be united in charity, provided that science is put at the service of the men and woman of our time and not misused to harm or even destroy them” (Francis, Address to Participants in the 2024 Lemaître Conference of the Vatican Observatory [20 June 2024]: L’Osservatore Romano, 20 June 2024, 8). Cf. Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 36: AAS 58 (1966), 1053-1054; John Paul II, Encyclical Letter Fides et Ratio (14 September 1998), pars. 2, 106: AAS 91 (1999), 6-7.86-87.
    [73] Catechism of the Catholic Church, par. 378.
    [74] Cf. Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 34: AAS 58 (1966), 1053.
    [75] Cf. Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 35: AAS 58 (1966), 1053.
    [76] Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 102: AAS 107 (2015), 888.
    [77] Cf. Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 105: AAS 107 (2015), 889; Id., Encyclical Fratelli Tutti (3 October 2020), par. 27: AAS 112 (2020), 978; Benedict XVI, Encyclical Caritas in Veritate (29 June 2009), par. 23: AAS 101 (2009), 657-658.
    [78] Cf. Dicastery for the Doctrine of the Faith, Declaration Dignitas Infinita (8 April 2024), pars. 38-39, 47; Congregation for the Doctrine of the Faith, Instruction Dignitas Personae (8 September 2008), passim.
    [79] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 35: AAS 58 (1966), 1053. Cf. Catechism of the Catholic Church, par 2293.
    [80] Cf. Francis, Address at the G7 Session on Artificial Intelligence in Borgo Egnazia (Puglia) (14 June 2024): L’Osservatore Romano, 14 June 2024, 2-4.
    [81] Cf. Catechism of the Catholic Church, par. 1749: “Freedom makes man a moral subject. When he acts deliberately, man is, so to speak, the father of his acts.”
    [82] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 16: AAS 58 (1966), 1037. Cf. Catechism of the Catholic Church, par. 1776.
    [83] Catechism of the Catholic Church, par. 1777.
    [84] Cf. Catechism of the Catholic Church, pars. 1779-1781; Francis, Address to the Participants in the “Minerva Dialogues” (27 March 2023): AAS 115 (2023), 463, where the Holy Father encouraged efforts “to ensure that technology remains human-centered, ethically grounded and directed toward the good.”
    [85] Cf. Francis, Encyclical Letter Fratelli Tutti (3 October 2020), par. 166: AAS 112 (2020), 1026-1027; Id., Address to the Plenary Assembly of the Pontifical Academy of Sciences (23 September 2024): L’Osservatore Romano, 23 September 2024, 10. On the role of human agency in choosing a wider aim (Ziel) that then informs the particular purpose (Zweck) for which each technological application is created, cf. F. Dessauer, Streit um die Technik, Herder-Bücherei, Freiburg i. Br. 1959, 70-71.
    [86] Cf. Francis, Address at the G7 Session on Artificial Intelligence in Borgo Egnazia (Puglia) (14 June 2024): L’Osservatore Romano, 14 June 2024, 4: “Technology is born for a purpose and, in its impact on human society, always represents a form of order in social relations and an arrangement of power, thus enabling certain people to perform specific actions while preventing others from performing different ones. In a more or less explicit way, this constitutive power-dimension of technology always includes the worldview of those who invented and developed it.”
    [87] Francis, Address to the Participants in the Plenary Assembly of the Pontifical Academy of Life (28 February 2020): AAS 112 (2020), 309.
    [88] Cf. Francis, Address at the G7 Session on Artificial Intelligence in Borgo Egnazia (Puglia) (14 June 2024): L’Osservatore Romano, 14 June 2024, 3-4.
    [89] Francis, Address to the Participants in the “Minerva Dialogues” (27 March 2023): AAS 115 (2023), 464. Cf. Id., Encyclical Letter Fratelli Tutti, pars. 212-213: AAS 112 (2020), 1044-1045.
    [90] Cf. John Paul II, Encyclical Letter Laborem Exercens (14 September 1981), par. 5: AAS 73 (1981), 589; Francis, Address at the G7 Session on Artificial Intelligence in Borgo Egnazia (Puglia) (14 June 2024): L’Osservatore Romano, 14 June 2024, 3-4.
    [91] Cf. Francis, Address at the G7 Session on Artificial Intelligence in Borgo Egnazia (Puglia) (14 June 2024): L’Osservatore Romano, 14 June 2024, 2: “Faced with the marvels of machines, which seem to know how to choose independently, we should be very clear that decision-making […] must always be left to the human person. We would condemn humanity to a future without hope if we took away people’s ability to make decisions about themselves and their lives, by dooming them to depend on the choices of machines.”
    [92] Francis, Address at the G7 Session on Artificial Intelligence in Borgo Egnazia (Puglia) (14 June 2024): L’Osservatore Romano, 14 June 2024, 2.
    [93] The term “bias” in this document refers to algorithmic bias (systematic and consistent errors in computer systems that may disproportionately prejudice certain groups in unintended ways) or learning bias (which will result in training on a biased data set) and not the “bias vector” in neural networks (which is a parameter used to adjust the output of “neurons” to adjust more accurately to the data).
    [94] Cf. Francis, Address to the Participants in the “Minerva Dialogues” (27 March 2023): AAS 115 (2023), 464, where the Holy Father affirmed the growth in consensus “on the need for development processes to respect such values as inclusion, transparency, security, equity, privacy and reliability,” and also welcomed “the efforts of international organizations to regulate these technologies so that they promote genuine progress, contributing, that is, to a better world and an integrally higher quality of life.”
    [95] Francis, Greetings to a Delegation of the “Max Planck Society” (23 February 2023): L’Osservatore Romano, 23 February 2023, 8.
    [96] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 26: AAS 58 (1966), 1046-1047.
    [97] Francis, Address to Participants at the Seminar “The Common Good in the Digital Age” (27 September 2019): AAS 111 (2019), 1571.
    [98] Cf. Francis, Message for the LVIII World Day of Social Communications (24 January 2024): L’Osservatore Romano, 24 January 2024, 8. For further discussion of the ethical questions raised by AI from a Catholic perspective, see AI Research Group of the Centre for Digital Culture of the Dicastery for Culture and Education, Encountering Artificial Intelligence: Ethical and Anthropological Investigations (Theological Investigations of Artificial Intelligence 1), M.J. Gaudet, N. Herzfeld, P. Scherz, J.J. Wales, eds., Journal of Moral Theology, Pickwick, Eugene 2024, 147-253.
    [99] On the importance of dialogue in a pluralist society oriented toward a “robust and solid social ethics,” see Francis, Encyclical Letter Fratelli Tutti (3 October 2020), pars. 211-214: AAS 112 (2020), 1044-1045.
    [100] Francis, Message for the LVII World Day of Peace (1 January 2024), par. 2: L’Osservatore Romano, 14 December 2023, 2.
    [101] Francis, Message for the LVII World Day of Peace (1 January 2024), par. 6: L’Osservatore Romano, 14 December 2023, 3. Cf. Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 26: AAS 58 (1966), 1046-1047.
    [102] Cf. Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 112: AAS 107 (2015), 892-893.
    [103] Francis, Address to the Participants in the “Minerva Dialogues” (27 March 2023): AAS 115 (2023), 464.
    [104] Cf. Pontifical Council for Social Communications, Ethics in Internet (22 February 2002), par. 10.
    [105] Francis, Post-Synodal Exhortation Christus Vivit (25 March 2019), par. 89: AAS 111 (2019), 413-414; quoting the Final Document of the XV Ordinary General Assembly of the Synod of Bishops (27 October 2018), par. 24: AAS 110 (2018), 1593. Cf. Benedict XVI, Address to the Participants in the International Congress on Natural Moral Law (12 February 2017): AAS 99 (2007), 245.
    [106] Cf. Francis, Encyclical Letter Laudato Si’ (24 May 2015), pars. 105-114: AAS 107 (2015), 889-893; Id., Apostolic Exhortation Laudate Deum (4 October 2023), pars. 20-33: AAS 115 (2023), 1047-1050.
    [107] Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 105: AAS 107 (2015), 889. Cf. Id., Apostolic Exhortation Laudate Deum (4 October 2023), pars. 20-21: AAS 115 (2023), 1047.
    [108] Cf. Francis, Address to the Participants in the Plenary Assembly of the Pontifical Academy for Life (28 February 2020): AAS 112 (2020), 308-309.
    [109] Francis, Message for the LVII World Day of Peace (1 January 2024), par. 2: L’Osservatore Romano, 14 December 2023, 2.
    [110] Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 112: AAS 107 (2015), 892.
    [111] Cf. Francis, Encyclical Letter Fratelli Tutti (3 October 2020), pars. 101, 103, 111, 115, 167: AAS 112 (2020), 1004-1005, 1007-1009, 1027.
    [112] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 26: AAS 58 (1966), 1046-1047; cf. Leo XIII, Encyclical Letter Rerum Novarum (15 May 1891), par. 35: Acta Leonis XIII, 11 (1892), 123.
    [113] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 12: AAS 58 (1966), 1034.
    [114] Cf. Pontifical Council for Justice and Peace, Compendium of the Social Doctrine of the Church (2004), par. 149.
    [115] Second Vatican Ecumenical Council, Declaration Dignitatis Humanae (7 December 1965), par. 3: AAS 58 (1966), 931. Cf. Francis, Encyclical Letter Fratelli Tutti (3 October 2020), par. 50: AAS 112 (2020), 986-987.
    [116] Francis, Encyclical Letter Fratelli Tutti (3 October 2020), par. 50: AAS 112 (2020), 986-987.
    [117] Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 47: AAS 107 (2015), 865. Cf. Id., Post-Synodal Exhortation Christus Vivit (25 March 2019), pars. 88-89: AAS 111 (2019), 413-414.
    [118] Cf. Francis, Apostolic Exhortation Evangelii Gaudium (24 November 2013), par. 88: AAS 105 (2013), 1057.
    [119] Francis, Encyclical Letter Fratelli Tutti (3 October 2020), par. 47: AAS 112 (2020), 985.
    [120] Cf. Francis, Address at the G7 Session on Artificial Intelligence in Borgo Egnazia (Puglia) (14 June 2024): L’Osservatore Romano, 14 June 2024, 2.
    [121] Cf. Francis, Encyclical Letter Fratelli Tutti (3 October 2020), par. 50: AAS 112 (2020), 986-987.
    [122] Cf. E. Stein, Zum Problem der Einfühlung, Buchdruckerei des Waisenhauses, Halle 1917 (en. tr. On the Problem of Empathy, ICS Publications, Washington D.C. 1989).
    [123] Cf. Francis, Apostolic Exhortation Evangelii Gaudium (24 November 2013), par. 88: AAS 105 (2013), 1057: “[Many people] want their interpersonal relationships provided by sophisticated equipment, by screens and systems which can be turned on and off on command. Meanwhile, the Gospel tells us constantly to run the risk of a face-to-face encounter with others, with their physical presence which challenges us, with their pain and their pleas, with their joy which infects us in our close and continuous interaction. True faith in the incarnate Son of God is inseparable from self-giving, from membership in the community, from service, from reconciliation with others.” Also cf. Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 24: AAS 58 (1966), 1044-1045.
    [124] Cf. Dicastery for the Doctrine of the Faith, Declaration Dignitas Infinita (8 April 2024), par. 1.
    [125] Cf. Francis, Address to Participants at the Seminar “The Common Good in the Digital Age” (27 September 2019): AAS 111 (2019), 1570; Id, Encyclical Letter Laudato Si’ (24 May 2015), pars. 18, 124-129: AAS 107 (2015), 854.897-899.
    [126] Francis, Message for the LVII World Day of Peace (1 January 2024), par. 5: L’Osservatore Romano, 14 December 2023, 3.
    [127] Francis, Apostolic Exhortation Evangelii Gaudium (24 November 2013), par. 209: AAS 105 (2013), 1107.
    [128] Francis, Address at the G7 Session on Artificial Intelligence in Borgo Egnazia (Puglia) (14 June 2024): L’Osservatore Romano, 14 June 2024, 4. For Pope Francis’ teaching about AI in relationship to the “technocratic paradigm,” cf. Id., Encyclical Laudato Si’ (24 May 2015), pars. 106-114: AAS 107 (2015), 889-893.
    [129] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 26: AAS 58 (1966), 1046-1047.; as quoted in Catechism of the Catholic Church, par. 1912. Cf. John XXIII, Encyclical Letter Mater et Magistra (15 May 1961), par. 219: AAS 53 (1961), 453.
    [130] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par 64: AAS 58 (1966), 1086.
    [131] Francis, Encyclical Letter Fratelli Tutti (3 October 2020), par. 162: AAS 112 (2020), 1025. Cf. John Paul II, Encyclical Letter Laborem Exercens (14 September 1981), par. 6: AAS 73 (1981), 591: “work is ‘for man’ and not man ‘for work.’ Through this conclusion one rightly comes to recognize the pre-eminence of the subjective meaning of work over the objective one.”
    [132] Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 128: AAS 107 (2015), 898. Cf. Id., Post-Synodal Apostolic Exhortation Amoris Laetitia (19 March 2016), par. 24: AAS 108 (2016), 319-320.
    [133] Francis, Message for the LVII World Day of Peace (1 January 2024), par. 5: L’Osservatore Romano, 14 December 2023, 3.
    [134] John Paul II, Encyclical Letter Evangelium Vitae (25 March 1995), par. 89: AAS 87 (1995), 502.
    [135] Ibid.
    [136] Francis, Encyclical Letter Fratelli Tutti (3 October 2020), par. 67: AAS 112 (2020), 993; as quoted in Id., Message for the XXXI World Day of the Sick (11 February 2023): L’Osservatore Romano, 10 January 2023, 8.
    [137] Francis, Message for the XXXII World Day of the Sick (11 February 2024): L’Osservatore Romano, 13 January 2024, 12.
    [138] Francis, Address to the Diplomatic Corps Accredited to the Holy See (11 January 2016): AAS 108 (2016), 120. Cf. Id., Encyclical Letter Fratelli Tutti (3 October 2020), par. 18: AAS 112 (2020), 975; Id., Message for the XXXII World Day of the Sick(11 February 2024): L’Osservatore Romano, 13 January 2024, 12.
    [139] Cf. Francis, Address to the Participants in the “Minerva Dialogues” (27 March 2023): AAS 115 (2023), 465; Id., Address at the G7 Session on Artificial Intelligence in Borgo Egnazia (Puglia) (14 June 2024): L’Osservatore Romano, 14 June 2024, 2.
    [140] Cf. Francis, Encyclical Letter Laudato Si’ (24 May 2015), pars. 105, 107: AAS 107 (2015), 889-890; Id., Encyclical Letter Fratelli Tutti (3 October 2020), pars. 18-21: AAS 112 (2020), 975-976; Id., Address to the Participants in the “Minerva Dialogues”(27 March 2023): AAS 115 (2023), 465.
    [141] Francis, Address to the Participants at the Meeting Sponsored by the Charity and Health Commission of the Italian Bishops’ Conference (10 February 2017): AAS 109 (2017), 243. Cf. ibid., 242-243: “If there is a sector in which the throwaway culture is manifest, with its painful consequences, it is that of healthcare. When a sick person is not placed in the center or their dignity is not considered, this gives rise to attitudes that can lead even to speculation on the misfortune of others. And this is very grave! […] The application of a business approach to the healthcare sector, if indiscriminate […] may risk discarding human beings.”
    [142] Francis, Message for the LVII World Day of Peace (1 January 2024), par. 5: L’Osservatore Romano, 14 December 2023, 3.
    [143] Second Vatican Ecumenical Council, Declaration Gravissimum Educationis (28 October 1965), par. 1: AAS 58 (1966), 729.
    [144] Congregation for Catholic Education, Instruction on the Use of Distance Learning in Ecclesiastical Universities and Faculties, I. Cf. Second Vatican Ecumenical Council, Declaration Gravissimum Educationis (28 October 1965), par. 1: AAS 58 (1966), 729; Francis, Message for the LXIX World Day of Peace (1 January 2016), 6: AAS 108 (2016), 57-58.
    [145] Francis, Address to Members of the Global Researchers Advancing Catholic Education Project (20 April 2022): AAS 114 (2022), 580.
    [146] Cf. Paul VI, Apostolic Exhortation Evangelii Nuntiandi (8 December 1975), par. 41: AAS 68 (1976), 31, quoting Id., Address to the Members of the “Consilium de Laicis” (2 October 1974): AAS 66 (1974), 568: “if [the contemporary person] does listen to teachers, it is because they are witnesses.”
    [147] J.H. Newman, The Idea of a University Defined and Illustrated, Discourse 6.1, London 18733, 125-126.
    [148] Francis, Meeting with the Students of the Barbarigo College of Padua in the 100th Year of its Foundation (23 March 2019): L’Osservatore Romano, 24 March 2019, 8. Cf. Id., Address to Rectors, Professors, Students and Staff of the Roman Pontifical Universities and Institutions (25 February 2023): AAS 115 (2023), 316.
    [149] Francis, Post-Synodal Apostolic Exhortation Christus Vivit (25 March 2019), par. 86: AAS 111 (2019), 413, quoting the XV Ordinary General Assembly of the Synod of Bishops, Final Document (27 October 2018), par. 21: AAS 110 (2018), 1592.
    [150] J.H. Newman, The Idea of a University Defined and Illustrated, Discourse 7.6, Basil Montagu Pickering, London 18733, 167.
    [151] Cf. Francis, Post-Synodal Apostolic Exhortation Christus Vivit (25 March 2019), par. 88: AAS 111 (2019), 413.
    [152] In a 2023 policy document about the use of generative AI in education and research, UNESCO notes: “One of the key questions [of the use of generative AI (GenAI) in education and research] is whether humans can possibly cede basic levels of thinking and skill-acquisition processes to AI and rather concentrate on higher-order thinking skills based on the outputs provided by AI. Writing, for example, is often associated with the structuring of thinking. With GenAI […], humans can now start with a well-structured outline provided by GenAI. Some experts have characterized the use of GenAI to generate text in this way as ‘writing without thinking’” (UNESCO, Guidance for Generative AI in Education and Research [2023], 37-38). The German-American philosopher Hannah Arendt foresaw such a possibility in her 1959 book, The Human Condition, and cautioned: “If it should turn out to be true that knowledge (in the sense of know-how) and thought have parted company for good, then we would indeed become the helpless slaves, not so much of our machines as of our know-how” (Id., The Human Condition, University of Chicago Press, Chicago 20182, 3).
    [153] Francis, Post-Synodal Apostolic Exhortation Amoris Laetitia (19 March 2016), par. 262: AAS 108 (2016), 417.
    [154] Francis, Message for the LVII World Day of Peace (1 January 2024), par. 7: L’Osservatore Romano, 14 December 2023, 3; cf. Id., Encyclical Letter Laudato Si’ (24 May 2015), par. 167: AAS 107 (2015), 914.
    [155] John Paul II, Apostolic Constitution Ex Corde Ecclesiae (15 August 1990), 7: AAS 82 (1990), 1479.
    [156] Francis, Apostolic Constitution Veritatis Gaudium (29 January 2018), 4c: AAS 110 (2018), 9-10.
    [157] Francis, Address at the G7 Session on Artificial Intelligence in Borgo Egnazia (Puglia) (14 June 2024): L’Osservatore Romano, 14 June 2024, 3.
    [158] For example, it might help people access the “array of resources for generating greater knowledge of truth” contained in the works of philosophy (John Paul II, Encyclical Letter Fides et Ratio [14 September 1998], par. 3: AAS 91 [1999], 7). Cf. ibid., par. 4: AAS 91 (1999), 7-8.
    [159] Dicastery for the Doctrine of the Faith, Declaration Dignitas Infinita (8 April 2024), par. 43. Cf. ibid., pars. 61-62.
    [160] Francis, Message for the LVIII World Day of Social Communications (24 January 2024): L’Osservatore Romano, 24 January 2024, 8.
    [161] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par 25: AAS 58 (1966), 1053; cf. Francis, Encyclical Letter Fratelli Tutti (3 October 2020), passim: AAS 112 (2020), 969-1074.
    [162] Cf. Francis., Post-Synodal Exhortation Christus Vivit (25 March 2019), par. 89: AAS 111 (2019), 414; John Paul II, Encyclical Letter Fides et Ratio (14 September 1998), par. 25: AAS 91 (1999), 25-26: “People cannot be genuinely indifferent to the question of whether what they know is true or not. […] It is this that Saint Augustine teaches when he writes: ‘I have met many who wanted to deceive, but none who wanted to be deceived’”; quoting Augustine, Confessiones, X, 23, 33: PL 32, 794.
    [163] Dicastery for the Doctrine of the Faith, Declaration Dignitas Infinita (4 April 2024), par. 62.
    [164] Benedict XVI, Message for the XLIII World Day of Social Communications (24 May 2009): L’Osservatore Romano, 24 January 2009, 8.
    [165] Cf. Dicastery for Communications, Towards Full Presence: A Pastoral Reflection on Engagement with Social Media (28 May 2023), par. 41; Second Vatican Ecumenical Council, Decree Inter Mirifica (4 December 1963), pars. 4, 8-12: AAS 56 (1964), 146, 148-149.
    [166] Dicastery for the Doctrine of the Faith, Declaration Dignitas Infinita (4 April 2024), pars. 1, 6, 16, 24.
    [167] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes, (7 December 1965), par. 26: AAS 58 (1966), 1046. Cf. Leo XIII, Encyclical Letter Rerum Novarum (15 May 1891), par. 40: Acta Leonis XIII, 11 (1892), 127: “no man may with impunity violate that human dignity which God himself treats with great reverence”; as quoted in John Paul II, Encyclical Letter Centesimus Annus (1 May 1991), par. 9: AAS 83 (1991), 804.
    [168] Cf. Catechism of the Catholic Church, pars. 2477, 2489; can. 220 CIC; can. 23 CCEO; John Paul II, Address to the Third General Conference of the Latin American Episcopate (28 January 1979), III.1-2: Insegnamenti II/1 (1979), 202-203.
    [169] Cf. Permanent Observer Mission of the Holy See to the United Nations, Holy See Statement to the Thematic Discussion on Other Disarmament Measures and International Security (24 October 2022): “Upholding human dignity in cyberspace obliges States to also respect the right to privacy, by shielding citizens from intrusive surveillance and allowing them to safeguard their personal information from unauthorized access.”
    [170] Francis, Encyclical Letter Fratelli Tutti (3 October 2020), par. 42: AAS 112 (2020), 984.
    [171] Francis, Message for the LVII World Day of Peace (1 January 2024), par. 5: L’Osservatore Romano, 14 December 2023, 3.
    [172] Francis, Address to the Participants in the “Minerva Dialogues” (27 March 2023): AAS 115 (2023), 465.
    [173] The 2023 Interim Report of the United Nations AI Advisory Body identified a list of “early promises of AI helping to address climate change” (United Nations AI Advisory Body, Interim Report: Governing AI for Humanity [December 2023], 3). The document observed that, “taken together with predictive systems that can transform data into insights and insights into actions, AI-enabled tools may help develop new strategies and investments to reduce emissions, influence new private sector investments in net zero, protect biodiversity, and build broad-based social resilience” (ibid.).
    [174] “The cloud” refers to a network of physical servers throughout the world that enables users to store, process, and manage their data remotely.
    [175] Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 9: AAS 107 (2015), 850.
    [176] Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 106: AAS 107 (2015), 890.
    [177] Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 60: AAS 107 (2015), 870.
    [178] Francis, Encyclical Letter Laudato Si’ (24 May 2015), pars. 3, 13: AAS 107 (2015), 848.852.
    [179] Augustine, De Civitate Dei, XIX, 13, 1: PL 41, 640.
    [180] Cf. Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), pars. 77-82: AAS 58 (1966), 1100-1107; Francis, Encyclical Letter Fratelli Tutti (3 October 2020), pars. 256-262: AAS 112 (2020), 1060-1063; Dicastery for the Doctrine of the Faith, Declaration Dignitas Infinita (4 April 2024), pars. 38-39; Catechism of the Catholic Church, pars. 2302-2317.
    [181] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 78: AAS 58 (1966), 1101.
    [182] Francis, Message for the LVII World Day of Peace (1 January 2024), par. 6: L’Osservatore Romano, 14 December 2023, 3.
    [183] Cf. Catechism of the Catholic Church, pars. 2308-2310.
    [184] Cf. Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), pars. 80-81: AAS 58 (1966), 1103-1105.
    [185] Francis, Message for the LVII World Day of Peace (1 January 2024), par. 6: L’Osservatore Romano, 14 December 2023, 3. Cf. Id., Address at the G7 Session on Artificial Intelligence in Borgo Egnazia (Puglia) (14 June 2024): L’Osservatore Romano, 14 June 2024, 2: “We need to ensure and safeguard a space for proper human control over the choices made by artificial intelligence programs: human dignity itself depends on it.”
    [186] Francis, Address at the G7 Session on Artificial Intelligence in Borgo Egnazia (Puglia) (14 June 2024): L’Osservatore Romano, 14 June 2024, 2. Cf. Permanent Observer Mission of the Holy See to the United Nations, Holy See Statement to Working Group II on Emerging Technologies at the UN Disarmament Commission (3 April 2024): “The development and use of lethal autonomous weapons systems (LAWS) that lack the appropriate human control would pose fundamental ethical concerns, given that LAWS can never be morally responsible subjects capable of complying with international humanitarian law.”
    [187] Francis, Encyclical Letter Fratelli Tutti (3 October 2020), par. 258: AAS 112 (2020), 1061. Cf. Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 80: AAS 58 (1966), 1103-1104.
    [188] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 80: AAS 58 (1966), 1103-1104.
    [189] Cf. Francis, Message for the LVII World Day of Peace (1 January 2024), par. 6: L’Osservatore Romano, 14 December 2023, 3: “Nor can we ignore the possibility of sophisticated weapons ending up in the wrong hands, facilitating, for instance, terrorist attacks or interventions aimed at destabilizing the institutions of legitimate systems of government. In a word, the world does not need new technologies that contribute to the unjust development of commerce and the weapons trade and consequently end up promoting the folly of war.”
    [190] John Paul II, Act of Entrustment to Mary for the Jubilee of Bishops (8 October 2000), par. 3: Insegnamenti XXIII/2 (200), 565.
    [191] Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 79: AAS 107 (2015), 878.
    [192] Cf. Benedict XVI, Encyclical Letter Caritas in Veritate (29 June 2009), par. 51: AAS 101 (2009), 687.
    [193] Cf. Dicastery for the Doctrine of the Faith, Declaration Dignitas Infinita (8 April 2024), pars. 38-39.
    [194] Cf. Augustine, Confessiones, I, 1, 1: PL 32, 661.
    [195] Cf. John Paul II, Encyclical Letter Sollicitudo Rei Socialis (30 December 1987), par. 28: AAS 80 (1988), 548: “[T]here is a better understanding today that the mere accumulation of goods and services […] is not enough for the realization of human happiness. Nor, in consequence, does the availability of the many real benefits provided in recent times by science and technology, including the computer sciences, bring freedom from every form of slavery. On the contrary, […] unless all the considerable body of resources and potential at man’s disposal is guided by a moral understanding and by an orientation towards the true good of the human race, it easily turns against man to oppress him.” Cf. ibid., pars. 29, 37: AAS 80 (1988), 550-551.563-564.
    [196] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 14: AAS 58 (1966), 1036.
    [197] Francis, Encyclical Letter Dilexit Nos (24 October 2024), par. 18: L’Osservatore Romano, 24 October 2024, 5.
    [198] Francis, Encyclical Letter Dilexit Nos (24 October 2024), par. 27: L’Osservatore Romano, 24 October 2024, 6.
    [199] Francis, Encyclical Letter Dilexit Nos (24 October 2024), par. 25: L’Osservatore Romano, 24 October 2024, 5-6.
    [200] Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 105: AAS 107 (2015), 889. Cf. R. Guardini, Das Ende der Neuzeit, Würzburg 19659, 87 ff. (en. tr. The End of the Modern World, Wilmington 1998, 82-83).
    [201] Second Vatican Ecumenical Council, Pastoral Constitution Gaudium et Spes (7 December 1965), par. 34: AAS 58 (1966), 1053.
    [202] John Paul II, Encyclical Letter Redemptor Hominis (4 March 1979), par. 15: AAS 71 (1979), 287-288.
    [203] N. Berdyaev, “Man and Machine,” in C. Mitcham – R. Mackey, eds., Philosophy and Technology: Readings in the Philosophical Problems of Technology, New York 19832, 212-213.
    [204] N. Berdyaev, “Man and Machine,” 210.
    [205] G. Bernanos, “La révolution de la liberté” (1944), in Id., Le Chemin de la Croix-des-Âmes, Rocher 1987, 829.
    [206] Cf. Francis, Meeting with the Students of the Barbarigo College of Padua in the 100th Year of its Foundation (23 March 2019): L’Osservatore Romano, 24 March 2019, 8. Cf. Id., Address to Rectors, Professors, Students and Staff of the Roman Pontifical Universities and Institutions (25 February 2023).
    [207] Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 112: AAS 107 (2015), 892-893.
    [208] Cf. Bonaventure, Hex. XIX, 3; Francis, Encyclical Letter Fratelli Tutti (3 October 2020), par. 50: AAS 112 (2020), 986: “The flood of information at our fingertips does not make for greater wisdom. Wisdom is not born of quick searches on the internet nor is it a mass of unverified data. That is not the way to mature in the encounter with truth.”
    [209] Francis, Message for the LVIII World Day of Social Communications (24 January 2024): L’Osservatore Romano, 24 January 2024, 8.
    [210] Ibid.
    [211] Ibid.
    [212] Francis, Apostolic Exhortation Gaudete et Exsultate (19 March 2018), par. 37: AAS 110 (2018), 1121.
    [213] Francis, Message for the LVII World Day of Peace (1 January 2024), par. 6: L’Osservatore Romano, 14 December 2023, 3. Cf. Id., Encyclical Letter Laudato Si’ (24 May 2015), par. 112: AAS 107 (2015), 892-893; Id., Apostolic Exhortation Gaudete et Exsultate (19 March 2018), par. 46: AAS 110 (2018), 1123-1124.
    [214] Cf. Francis, Encyclical Letter Laudato Si’ (24 May 2015), par. 112: AAS 107 (2015), 892-893.
    [215] Cf. Francis, Address to the Participants in the Seminar “The Common Good in the Digital Age” (27 September 2019): AAS 111 (2019), 1570-1571.

    MIL OSI Europe News –

    January 29, 2025
  • MIL-OSI United Kingdom: CMA independent inquiry group publishes provisional findings in cloud services market investigation

    Source: United Kingdom – Executive Government & Departments

    The inquiry group’s report provisionally recommends that the CMA board considers investigating AWS and Microsoft’s cloud service activities using new digital markets powers.

    iStock

    • Provisional findings show competition in the £9 billion UK cloud services markets is not working as well as it could be.

    The Competition and Markets Authority’s (CMA) independent inquiry group has today published provisional findings following an in-depth assessment into cloud services. It has provisionally found that competition is not working as well as it could be, which is likely to be leading to higher costs, less choice, less innovation and lower quality of service for businesses and organisations across the UK economy.

    Cloud services provide vital infrastructure which supports improved innovation, productivity and scaling for most businesses and organisations in the UK. Customers include financial services, retailers, digital start-ups and key public services who spent £9 billion on cloud services in 2023, a figure growing by over 30% each year.

    In its report, the inquiry group provisionally found:

    • Cloud customers face a limited choice of providers and do not consider many providers are able to provide the range of services that they need. Amazon Web Services (AWS) and Microsoft are the two large providers of cloud services, each with a share of up to 40% of UK customer spend on cloud services. Google is the next largest provider with a much smaller share.

    • Technical and commercial barriers make it difficult for cloud customers to switch between and use different cloud providers, locking them into their initial choices which may not reflect their evolving business needs.

    • There are significant barriers to entry and expansion due to the very large capital investment needed to supply cloud services, making it harder for alternative cloud suppliers to enter and grow in these markets.

    • Microsoft is using its strong position in software to make it harder for AWS and Google to compete effectively for cloud customers that wish to use Microsoft software on the cloud. This reduces the competitive challenge that AWS and Google can provide in cloud services and to Microsoft’s position. 

    The inquiry group provisionally believes these concerns make it harder for customers to switch cloud provider or use multiple clouds, which may ultimately impact the price and quality of cloud services. The ability of UK businesses to put healthy pressure on cloud providers to offer better deals is key to ensuring good outcomes and to unlocking the potential benefits of cloud services.

    The inquiry group provisionally recommends that the CMA use its powers under the Digital Markets, Competition and Consumers Act 2024 (DMCCA) to consider whether to designate the two largest providers, AWS and Microsoft, with strategic market status (SMS) in relation to their respective digital activities in cloud services.

    Kip Meek, chair of the CMA’s independent inquiry group, said:

    Cloud services underpin most business operations, providing vital infrastructure to businesses and organisations across the UK economy. Our provisional view is that competition in this market is not working as well as it could be. So, we propose that the CMA considers investigating the largest cloud service providers using its new digital markets powers.

    Effective competition in the delivery of these vital services could drive choice, quality and competitive prices – not only helping UK businesses but boosting innovation, productivity, growth and investment across the UK economy.

    The inquiry group will consult on its provisional findings and recommendations before making a final decision by the statutory deadline of 4 August 2025.

    For more information, including how to respond to the consultation, visit the cloud services market investigation case page.

    Notes to Editors:

    1. The CMA defines cloud services as infrastructure as a service (IaaS) and platform as a service (PaaS). IaaS includes services, such as compute, networking and storage and PaaS includes platforms based on this infrastructure which enable customers to develop and run applications in the cloud.

    2. The purpose of a market investigation is to decide whether any feature or combination of features of the cloud services markets in the UK prevents, restricts or distorts competition in connection with the supply or acquisition of any goods or services in the UK or a part of the UK (an ‘adverse effect on competition’ or ‘AEC’). Should we find an AEC, we are required to decide whether we should take any remedial action or whether we should recommend the taking of action by others to remedy, mitigate or prevent the AECs we have found.

    3. The group provisionally considers that the DMCC Act powers would be better suited to addressing the concerns it has identified than the powers directly available to it in the market investigation because they would allow the CMA to take a targeted and flexible approach to remedies, as a result of their greater flexibility, including new powers designed to enhance the effectiveness of remedies, and better provisions for ongoing monitoring and oversight. Greater competition in cloud services has the potential to unlock benefits for UK businesses and drive economic growth.

    4. As set out in the full provisional findings report which will be available on the case page in due course, the interventions the CMA could consider in this market (should AWS and Microsoft be designated with SMS) may include a range of measures which might encourage appropriate technical standardisation, reduce data transfer charges incurred in switching and multi cloud and/or ensure fair licensing of software.The group provisionally considers that measures aimed at AWS and Microsoft would address its market-wide concerns by directly benefitting the majority of UK customers and affecting the competitive conditions for other providers.

    5. The CMA’s market investigation began following a reference from Ofcom, which had carried out a market study on cloud services. The CMA investigated the following features identified by Ofcom: egress fees, technical barriers and committed spend discounts. While the CMA has provisionally found that egress fees and technical barriers constitute features which harm competition in the markets, it has provisionally found that committed spend discounts (as currently implemented by cloud service providers), while widespread, do not currently harm competition as rivals can profitably compete against them.

    6. The Digital Markets, Competition and Consumers Act (DMCCA) came into force on 1 January 2025. For more information, visit the CMA’s initial plans following the commencement of the regime.

    7. Under the new digital markets and competition regime the CMA can – if warranted – impose legally binding conduct requirements (CRs) or pro-competition interventions (PCIs) on firms in relation to the digital activity for which they have been designated as having SMS. The CMA board will decide if and when to open SMS designation investigations.

    8. For media enquiries, contact the CMA press office on 020 3738 6460 or  press@cma.gov.uk.

    Share this page

    The following links open in a new tab

    • Share on Facebook (opens in new tab)
    • Share on Twitter (opens in new tab)

    Updates to this page

    Published 28 January 2025

    MIL OSI United Kingdom –

    January 29, 2025
  • MIL-OSI: LQUID Finance Announces Launch of LQUID PAY: Bridging Traditional and Decentralized Finance

    Source: GlobeNewswire (MIL-OSI)

    DUBAI, United Arab Emirates, Jan. 28, 2025 (GLOBE NEWSWIRE) — LQUID Finance has introduced LQUID PAY, a self-custodian payment platform designed to simplify the use of digital assets in everyday transactions. This platform integrates blockchain technology with the convenience of a globally accepted Visa-powered card, allowing users to spend their digital assets seamlessly while maintaining full control over their funds.

    LQUID PAY addresses long-standing challenges in the financial world by enabling users to conduct transactions directly from their on-chain wallets. With automatic cryptocurrency-to-fiat conversions, the platform ensures a smooth and intuitive experience for users managing digital and traditional assets.

    The launch focuses on bridging the gap between traditional financial systems and the expanding Web3 ecosystem. Designed with inclusivity in mind, LQUID PAY brings decentralized finance to a wider audience, offering secure and transparent payment options.

    CEO, Shavez, shared his vision for the platform, stating, “At LQUID Finance, we are committed to creating tools that make finance simpler and more accessible. LQUID PAY represents our step forward in empowering individuals and businesses to use digital assets effortlessly, securely, and globally.”

    The Asian market, home to the largest segment of cryptocurrency users, plays a key role in the launch. LQUID PAY is positioned to serve this market by eliminating barriers to the use of digital assets in real-world transactions. By prioritizing user control, transparency, and accessibility, LQUID PAY sets a new standard for financial tools in the digital era.

    About LQUID Finance:
    LQUID Finance is committed to redefining financial systems by integrating decentralized and traditional finance. With a focus on innovation, security, and accessibility, the company builds solutions that meet the needs of a rapidly evolving global economy.

    Media Contact Details

    Company Name: LQUID FINANCE
    Company Website: https://www.lquid.finance/
    Concerned Person: Shavez Anwar
    Company Email: shavez@lquid.finance

    Disclaimer: This press release is provided by LQUID FINANCE. The statements, views, and opinions expressed in this content are solely those of the sponsor and do not necessarily reflect the views of this media platform. We do not endorse, verify, or guarantee the accuracy, completeness, or reliability of any information presented. This content is for informational purposes only and should not be considered as financial, investment, or trading advice. Investing in cloud mining and related opportunities involves significant risks, including the potential loss of capital. Readers are strongly encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions.

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d4535329-bbed-4642-a720-ed54e76c5c43

    The MIL Network –

    January 29, 2025
  • MIL-OSI: Hyperscale Data Announces 31 Consecutive Monthly Cash Dividend Payments Timely Paid for Series D Cumulative Redeemable Perpetual Preferred Stock

    Source: GlobeNewswire (MIL-OSI)

    LAS VEGAS, Jan. 28, 2025 (GLOBE NEWSWIRE) — Hyperscale Data, Inc. (NYSE American: GPUS), a diversified holding company (“Hyperscale Data” or the “Company”), today announced that it has successfully paid 31 consecutive monthly cash dividends for its 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock (the “Series D Preferred Stock”). Dividends on the Series D Preferred Stock are cumulative and are payable out of amounts legally available therefor at a rate equal to 13.00% per annum per $25.00 of stated liquidation preference per share, or $0.2708333 per share of Series D Preferred Stock per month.

    Milton “Todd” Ault III, Founder and Executive Chairman of the Company, stated, “As we approach the three-year mark of consecutive dividend payments, the Company remains dedicated to enhancing its overall credit profile while delivering consistent value for existing stockholders. We are proud of the consistency of this dividend and remain committed to the Series D Preferred Stock.”

    Link to NYSE quote for the Company’s 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock: https://www.nyse.com/quote/XASE:GPUSpD

    For more information on Hyperscale Data and its subsidiaries, Hyperscale Data recommends that stockholders, investors, and any other interested parties read Hyperscale Data’s public filings and press releases available under the Investor Relations section at hyperscaledata.com or available at www.sec.gov.

    About Hyperscale Data, Inc.

    Hyperscale Data is transitioning from a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact to becoming solely an owner and operator of data centers to support high performance computing services. Through its wholly and majority-owned subsidiaries and strategic investments, Hyperscale Data owns and operates a data center at which it mines digital assets and offers colocation and hosting services for the emerging artificial intelligence ecosystems and other industries. It also provides, through its wholly owned subsidiary, Ault Capital Group, Inc., mission-critical products that support a diverse range of industries, including an artificial intelligence software platform, social gaming platform, equipment rental services, defense/aerospace, industrial, automotive, medical/biopharma and hotel operations. In addition, Hyperscale Data is actively engaged in private credit and structured finance through a licensed lending subsidiary. Hyperscale Data’s headquarters are located at 11411 Southern Highlands Parkway, Suite 240, Las Vegas, NV 89141; Hyperscale Data, Inc.

    Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “believes,” “plans,” “anticipates,” “projects,” “estimates,” “expects,” “intends,” “strategy,” “future,” “opportunity,” “may,” “will,” “should,” “could,” “potential,” or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties.

    Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Company’s business and financial results are included in the Company’s filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company’s Forms 10-K, 10-Q and 8- K. All filings are available at www.sec.gov and on the Company’s website at www.hyperscaledata.com.

    Hyperscale Data Investor Contact:
    IR@hyperscaledata.com or 1-888-753-2235

    The MIL Network –

    January 29, 2025
←Previous Page
1 … 1,272 1,273 1,274 1,275 1,276 … 1,544
Next Page→
NewzIntel.com

NewzIntel.com

MIL Open Source Intelligence

  • Blog
  • About
  • FAQs
  • Authors
  • Events
  • Shop
  • Patterns
  • Themes

Twenty Twenty-Five

Designed with WordPress