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Category: Economy

  • MIL-OSI Global: The Terminator at 40: this sci-fi ‘B-movie’ still shapes how we view the threat of AI

    Source: The Conversation – UK – By Tom F.A Watts, Postdoctoral Fellow, Department of Politics, International Relations and Philosophy, Royal Holloway University of London

    October 26, 2024 marks the 40th anniversary of director James Cameron’s science fiction classic, The Terminator – a film that popularised society’s fear of machines that can’t be reasoned with, and that “absolutely will not stop … until you are dead”, as one character memorably puts it.

    The plot concerns a super-intelligent AI system called Skynet which has taken over the world by initiating nuclear war. Amid the resulting devastation, human survivors stage a successful fightback under the leadership of the charismatic John Connor.

    In response, Skynet sends a cyborg assassin (played by Arnold Schwarzenegger) back in time to 1984 – before Connor’s birth – to kill his future mother, Sarah. Such is John Connor’s importance to the war that Skynet banks on erasing him from history to preserve its existence.

    Today, public interest in artificial intelligence has arguably never been greater. The companies developing AI typically promise their technologies will perform tasks faster and more accurately than people. They claim AI can spot patterns in data that are not obvious, enhancing human decision-making. There is a widespread perception that AI is poised to transform everything from warfare to the economy.

    Immediate risks include introducing biases into algorithms for screening job applications and the threat of generative AI displacing humans from certain types of work, such as software programming.

    But it is the existential danger that often dominates public discussion – and the six Terminator films have exerted an outsize influence on how these arguments are framed. Indeed, according to some, the films’ portrayal of the threat posed by AI-controlled machines distracts from the substantial benefits offered by the technology.

    Official trailer for The Terminator (1984)

    The Terminator was not the first film to tackle AI’s potential dangers. There are parallels between Skynet and the HAL 9000 supercomputer in Stanley Kubrick’s 1968 film, 2001: A Space Odyssey.

    It also draws from Mary Shelley’s 1818 novel, Frankenstein, and Karel Čapek’s 1921 play, R.U.R.. Both stories concern inventors losing control over their creations.

    On release, it was described in a review by the New York Times as a “B-movie with flair”. In the intervening years, it has been recognised as one of the greatest science fiction movies of all time. At the box office, it made more than 12 times its modest budget of US$6.4 million (£4.9 million at today’s exchange rate).

    What was arguably most novel about The Terminator is how it re-imagined longstanding fears of a machine uprising through the cultural prism of 1980s America. Much like the 1983 film WarGames, where a teenager nearly triggers World War 3 by hacking into a military supercomputer, Skynet highlights cold war fears of nuclear annihilation coupled with anxiety about rapid technological change.



    Read more:
    Science fiction helps us deal with science fact: a lesson from Terminator’s killer robots

    Forty years on, Elon Musk is among the technology leaders who have helped keep a focus on the supposed existential risk of AI to humanity. The owner of X (formerly Twitter) has repeatedly referenced the Terminator franchise while expressing concerns about the hypothetical development of superintelligent AI.

    But such comparisons often irritate the technology’s advocates. As the former UK technology minister Paul Scully said at a London conference in 2023: “If you’re only talking about the end of humanity because of some rogue, Terminator-style scenario, you’re going to miss out on all of the good that AI [can do].”

    That’s not to say there aren’t genuine concerns about military uses of AI – ones that may even seem to parallel the film franchise.

    AI-controlled weapons systems

    To the relief of many, US officials have said that AI will never take a decision on deploying nuclear weapons. But combining AI with autonomous weapons systems is a possibility.

    These weapons have existed for decades and don’t necessarily require AI. Once activated, they can select and attack targets without being directly operated by a human. In 2016, US Air Force general Paul Selva coined the term “Terminator conundrum” to describe the ethical and legal challenges posed by these weapons.

    The Terminator’s director James Cameron says ‘the weaponisation of AI is the biggest danger’.

    Stuart Russell, a leading UK computer scientist, has argued for a ban on all lethal, fully autonomous weapons, including those with AI. The main risk, he argues, is not from a sentient Skynet-style system going rogue, but how well autonomous weapons might follow our instructions, killing with superhuman accuracy.

    Russell envisages a scenario where tiny quadcopters equipped with AI and explosive charges could be mass-produced. These “slaughterbots” could then be deployed in swarms as “cheap, selective weapons of mass destruction”.

    Countries including the US specify the need for human operators to “exercise appropriate levels of human judgment over the use of force” when operating autonomous weapon systems. In some instances, operators can visually verify targets before authorising strikes, and can “wave off” attacks if situations change.

    AI is already being used to support military targeting. According to some, it’s even a responsible use of the technology, since it could reduce collateral damage. This idea evokes Schwarzenegger’s role reversal as the benevolent “machine guardian” in the original film’s sequel, Terminator 2: Judgment Day.

    However, AI could also undermine the role human drone operators play in challenging recommendations by machines. Some researchers think that humans have a tendency to trust whatever computers say.

    ‘Loitering munitions’

    Militaries engaged in conflicts are increasingly making use of small, cheap aerial drones that can detect and crash into targets. These “loitering munitions” (so named because they are designed to hover over a battlefield) feature varying degrees of autonomy.

    As I’ve argued in research co-authored with security researcher Ingvild Bode, the dynamics of the Ukraine war and other recent conflicts in which these munitions have been widely used raises concerns about the quality of control exerted by human operators.

    Ground-based military robots armed with weapons and designed for use on the battlefield might call to mind the relentless Terminators, and weaponised aerial drones may, in time, come to resemble the franchise’s airborne “hunter-killers”. But these technologies don’t hate us as Skynet does, and neither are they “super-intelligent”.

    However, it’s crucially important that human operators continue to exercise agency and meaningful control over machine systems.

    Arguably, The Terminator’s greatest legacy has been to distort how we collectively think and speak about AI. This matters now more than ever, because of how central these technologies have become to the strategic competition for global power and influence between the US, China and Russia.

    The entire international community, from superpowers such as China and the US to smaller countries, needs to find the political will to cooperate – and to manage the ethical and legal challenges posed by the military applications of AI during this time of geopolitical upheaval. How nations navigate these challenges will determine whether we can avoid the dystopian future so vividly imagined in The Terminator – even if we don’t see time travelling cyborgs any time soon.

    Tom F.A Watts receives funding from the Leverhulme Trust Early Career Research Fellowship scheme.

    – ref. The Terminator at 40: this sci-fi ‘B-movie’ still shapes how we view the threat of AI – https://theconversation.com/the-terminator-at-40-this-sci-fi-b-movie-still-shapes-how-we-view-the-threat-of-ai-236564

    MIL OSI – Global Reports –

  • MIL-OSI Global: An Indian village went from hunting Amur falcons to being their biggest protectors. Here’s how conservationists can harness the power of persuasion

    Source: The Conversation – UK – By Diogo Veríssimo, Research Fellow in Conservation Marketing, University of Oxford

    An Amur falcon feeds on flying insects as it migrates across Nagaland, India. Greeneries/Shutterstock

    Wildlife conservation is an exercise in human persuasion. It may seem counterintuitive that we hold the keys to the survival of wildlife, but 98% of all threatened species are threatened exclusively by human activities such as pollution, invasive species or habitat loss.

    Influencing human behaviour to benefit nature is hard, but it can be done. In the case of the Amur falcon, we found that legislation and enforcement were successful at stopping hunting of this migratory raptor and maintaining changes in hunting practices. But the key to success involved fostering local pride in the bird, alongside providing economic incentives.

    The Amur falcon is a bird the size of an apple with a yearly commute from Siberia to Africa and back – the equivalent in total to six trips from London to New York. One key stop in the bird’s journey is the forests of Nagaland in north-east India.

    Since its construction in 2000, an artificial reservoir over Nagaland’s Doyang river has attracted vast numbers of winged termites – in turn increasing the number of Amur falcons stopping to feed on these insects. As the numbers of falcons rose, they became very easy targets for local hunters, for whom wildlife hunting is an integral part of their traditional culture. These birds were hunted for food as well as traded in local markets, earning significant seasonal revenue for the hunters.

    Fast-forward to November 2012. The scale of the hunt at Doyang reservoir, particularly in Pangti village, came to the attention of conservationists like us, who estimated that between 120,000 and 140,000 birds (about 10% of the global adult population) were being caught in only ten days. These birds stopped at the Doyang reservoir to fatten up before their migration to Africa, but were trapped using fishing nets hung across trees.

    A global media campaign was spearheaded by the environmental charity Conservation India. A hard-hitting short film, The Amur Falcon Massacre, was shared online to show the true horror and scale of this hunt. Conservationists tried to leverage India’s membership of the Convention on Migratory Species, and such pressure led to the Indian government making a global commitment to protect species including the Amur falcon.

    The government took swift action. It warned Pangti villagers that unless the hunting stopped, it would cut off funding for crucial development projects. Faced with this threat, the village council imposed a ban on hunting falcons in 2013 – without consulting the broader community.

    That decision was deeply unpopular with local villagers. Falcon hunting had been an important source of income, and many villagers were resistant to the ban. Though the hunting stopped, local trust in the council leadership was low because the ban was seen as authoritarian.

    However, the decision was backed by financial incentives and environmental outreach from charitable organisations and the government’s forest department. This helped reframe the falcons as “honoured guests”, and to connect local people more empathetically with the birds. Hunting was actively discouraged; eventually, it ceased altogether.

    An Amur falcon (Falco amurensis) in flight.
    Touhid biplob/Wikimedia, CC BY-NC-ND

    By 2017, a sense of pride began to grow within the community. Awards and recognition from external bodies, including the Indian government, for Pangti’s conservation efforts helped create a positive image of the village worldwide. The community’s emotional bond with the falcons strengthened. Villagers even held prayers for satellite-tagged falcons before releasing them. Falcon conservation became a symbol of local identity and pride, which helped overcome the initial resistance to the hunting ban.

    This allowed conservation measures to expand. The community outlawed air guns to prevent the hunting of small birds, and extended the hunting ban to cover all wildlife for six months of the year. These actions showed the community wasn’t just enforcing government rules; it was actively creating new conservation initiatives of its own.

    The power of persuasion

    Human actions drive biodiversity outcomes. These can be destructive, like poaching, or protective, like community-led conservation. The end of the indiscriminate killing of the Amur falcon in Nagaland highlights that, while behaviour change can take place in a short period, maintaining it over the long term is often much more challenging.

    For instance, while the initial ban was effective in quickly eliminating hunting, the shift from resistance to pride in falcon conservation took years to fully develop. Sustaining this change has required continuous community engagement and building of pride in the species.

    Visual storytelling – in this case, a film widely shared on social media – can also play a powerful role in turning local issues into global ones. The international attention brought to the unsustainable hunting of the Amur falcon was instrumental in prompting government action. This shows how global media exposure can elevate a local conservation issue, creating a sense of urgency that compels authorities to act.

    However, while media campaigns can quickly drive policy changes, they don’t always lead to lasting behaviour change. Campaigns that rely on shock and urgency may alienate local communities, creating resistance.

    Sustainable behaviour change requires building trust, understanding local values, and supporting community leadership. True change happens when people feel empowered and see benefits from their actions – not simply when they feel pressured to comply.


    Don’t have time to read about climate change as much as you’d like?

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    Sahila Kudalkar received funding from the Inlaks Shivdasani Foundation for research on Amur falcon conservation in Nagaland.

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

    – ref. An Indian village went from hunting Amur falcons to being their biggest protectors. Here’s how conservationists can harness the power of persuasion – https://theconversation.com/an-indian-village-went-from-hunting-amur-falcons-to-being-their-biggest-protectors-heres-how-conservationists-can-harness-the-power-of-persuasion-239856

    MIL OSI – Global Reports –

  • MIL-OSI China: World Internet Conference Wuzhen Summit to open in November

    Source: China State Council Information Office 2

    The 2024 World Internet Conference (WIC) Wuzhen Summit is scheduled to take place from Nov. 19 to 22 in the water-town of Wuzhen, located in east China’s Zhejiang Province, and will feature four key highlights, according to a press conference held on Thursday.
    During this year’s summit, a distinguished contribution award will be established to recognize individuals and companies who have made outstanding contributions to the field of the global internet.
    Under the WIC framework, the summit will also see the establishment of a special committee on artificial intelligence (AI), the launch of a think tank cooperation program, and the creation of an international digital training institute.
    Themed “Embracing a People-centered and AI-for-good Digital Future — Building a Community with a Shared Future in Cyberspace,” the 2024 edition will feature 24 sub-forums on topics such as Global Development Initiative, digital economy, and data governance, as well as a series of activities.
    Since 2014, the Wuzhen Summit has been successfully held for ten consecutive years. Currently, the WIC includes about 170 institutions, organizations, companies, and individuals from over 30 countries and regions across six continents as its members.

    MIL OSI China News –

  • MIL-OSI China: China’s free HPV vaccination accessible to 40% girls of eligible age

    Source: People’s Republic of China Ministry of Health

    BEIJING — In its ongoing battle against cervical cancer, China has made free human papillomavirus (HPV) vaccinations accessible to about 40 percent of girls aged 13 to 14, according to the National Health Commission.

    Since 2021, 11 provincial-level regions and multiple cities have provided free vaccination services for girls of eligible age, Shen Haiping, head of the commission’s maternal and child health department, said at a press conference on Friday.

    A total of 280 million free HPV screenings have been conducted across China, greatly facilitating the early detection, diagnosis and treatment of cervical cancer, Shen said.

    Health authorities worked with women’s federation organizations in providing medical assistance to 275,000 cervical cancer patients in financial difficulties, the official said.

    According to the commission, cervical cancer is the most common gynecologic malignancy. In 2022, there were 151,000 new cases of cervical cancer in China, with an incidence rate of 13.8 per 100,000, ranking fifth among cancers in women.

    China has attached great importance to the prevention and treatment of cervical cancer, with this disease highlighted in a series of major documents, Shen said.

    In 2023, the country launched a campaign to accelerate the elimination of cervical cancer in answer to the international community’s call to lower its incidence rate to 4 per 100,000 by the end of the century, Shen added.

    MIL OSI China News –

  • MIL-OSI USA: U.S. shale natural gas production has declined so far in 2024

    Source: US Energy Information Administration

    In-depth analysis

    October 24, 2024

    Data source: U.S. Energy Information Administration, Short-Term Energy Outlook
    Note: The formations included in our U.S. shale natural gas production estimates are determined by identified tight and shale formations. Year-to-date 2024=January–September.

    U.S. natural gas production from shale and tight formations, which accounts for 79% of dry natural gas production, decreased slightly in the first nine months of 2024 compared with the same period in 2023. If this trend holds for the remainder of 2024, it would mark the first annual decrease in U.S. shale gas production since we started collecting these data in 2000.

    Total U.S. shale gas production from January through September 2024 declined by about 1%, to 81.2 billion cubic feet per day (Bcf/d), compared with the same period in 2023, while other U.S. dry natural gas production increased by about 6% to 22.1 Bcf/d. Total U.S. dry natural gas production from January through September 2024 averaged 103.3 Bcf/d, essentially flat compared with the same period in 2023.

    The decline in shale gas production so far this year has been driven primarily by declines in production in the Haynesville and Utica plays. From January through September 2024, shale gas production decreased by 12% (1.8 Bcf/d) in the Haynesville and by 10% (0.6 Bcf/d) in the Utica compared with the same period in 2023. At the same time, shale gas production in the Permian play grew by 10% (1.6 Bcf/d). Production in the Marcellus play, which leads U.S. shale gas production, remained flat.

    The Haynesville play in northeastern Texas and northwestern Louisiana is a dry natural gas formation. The Utica and Marcellus plays in the Appalachian Basin produce lease condensate in addition to dry natural gas. In all three plays, natural gas prices mostly drive drilling and developing wells. The U.S. benchmark Henry Hub daily natural gas price has generally declined since August 2022 and reached record lows in the first half of 2024, making drilling natural gas wells less profitable, particularly in the Haynesville. Several operators in the Haynesville and the Appalachian Basin shut in natural gas production in reaction to historically low prices and intend to continue curtailments in the second half of 2024.

    In contrast, natural gas produced in the Permian play in western Texas and southeastern New Mexico is primarily associated gas from oil wells where drilling and development is driven by the oil price. Natural gas production in the Permian has increased this year along with increasing oil production.

    Shale natural gas production in the Utica was 5.6 Bcf/d in September, 33% less than the monthly high of 8.3 Bcf/d in December 2019 and 10% less than the average of 6.2 Bcf/d in 2023. At depths of 5,000 feet to 11,000 feet, wells in the Utica, which lies beneath the Marcellus, are slightly more expensive to drill than Marcellus wells because of their depth.

    Drilling costs of Haynesville wells, at depths of 10,500 feet to 13,500 feet, are even higher. Shale natural gas production in the Haynesville was 13.0 Bcf/d in September 2024, 14% less than the peak in May 2023. The Haynesville is the third-largest shale gas-producing play in the United States, behind the Marcellus and the Permian plays. In 2023, shale natural gas production in the Haynesville averaged 14.6 Bcf/d, accounting for 14% of total U.S. dry natural gas production.

    Data source: Refinitiv Eikon and Baker Hughes Company
    Note: Prices are adjusted for inflation based on the September 2024 Consumer Price Index.

    The U.S. benchmark Henry Hub natural gas price fell 79% from the August 2022 inflation-adjusted high of $9.39 per million British thermal units (MMBtu) to an average of $1.99/MMBtu in August 2024. So far this year, the price has averaged $2.10/MMBtu compared with an inflation-adjusted average of $6.89/MMBtu in 2022 and $2.62/MMBtu in 2023. As natural gas prices declined, the economics of producing natural gas in the dry gas formations worsened, leading producers to shut in production and drop drilling rigs.

    Producers tend to increase or decrease the number of drilling rigs in operation as natural gas prices fluctuate. The number of natural gas-directed drilling rigs in the Haynesville, Utica, and Marcellus plays has decreased steadily since the end of 2022, according to data from Baker Hughes. In the Haynesville, an average of 33 rigs were in operation in September 2024, 53% fewer than in January 2023. The number of rigs operating in the Haynesville in September was the lowest it has been since July 2020.

    In the Utica, an average of seven rigs were operating in September 2024, fewer than half the number that were operating in January 2023, and in the Marcellus, an average of 25 rigs were in operation, about 36% fewer than in January 2023. Although the productivity of newer wells has improved in recent years, the decline in rig counts has contributed to an overall decrease in production.

    In our latest Short-Term Energy Outlook, we forecast total U.S. dry natural gas production to average 103.5 Bcf/d in 2024, down slightly from 103.8 Bcf/d in 2023, and to resume modest growth in 2025 at 104.6 Bcf/d.

    Principal contributors: Katy Fleury, Corrina Ricker, Kenya Schott

    MIL OSI USA News –

  • MIL-OSI United Nations: Secretary-General’s remarks to the 16th BRICS Summit [as delivered]

    Source: United Nations secretary general

    Excellencies, ladies and gentlemen,
     
    I am grateful to participate in the 16th BRICS Summit. 
     
    Collectively, your countries represent nearly half of the world’s population.
     
    And I salute your valuable commitment and support for international problem-solving as clearly reflected in your theme this year.
     
    But no single group and no single country can act alone or in isolation.
     
    It takes a community of nations, working as one global family, to address global challenges.
     
    Challenges like the rising number of conflicts.
     
    The devastation of climate change, pollution and biodiversity loss…
     
    Rising inequalities and lingering poverty and hunger…
     
    A debt crisis that threatens to smother plans for the future of many vulnerable countries… 
     
    The fact that fewer than one-fifth of the Sustainable Development Goals are on-track…
     
    A growing digital divide, and a lack of guardrails for artificial intelligence and other frontier technologies…
     
    And a lack of representation and voice for developing countries at global decision-making tables. From the Security Council to the Bretton-Woods institution and beyond. This must change.
     
    September’s Summit of the Future offered a roadmap for strengthening multilateralism, and advancing peace, sustainable development and human rights.
     
    I see four areas for action.
     
    First — finance.
     
    Today’s international financial system is not offering many vulnerable countries the safety net or level of support they need.
     
    The Pact for the Future calls for accelerating reform of the international financial architecture that is outdated, ineffective and unfair.
     
    And it includes a commitment to move forward with an SDG Stimulus to change the business model to substantially increase the lending capacity of Multilateral Development Banks to developing countries.
     
    To recycle more Special Drawing Rights…
     
    To restructure loans for countries drowning in debt…
     
    And to mobilize more international and domestic resources, public and private, for vital investments in developing countries.
     
    Next year’s Conference on Financing for Development and the Summit on Social Development are two milestones to carry these efforts forward.
     
    We must also recognize the importance of South-South cooperation.
     
    It doesn’t replace the commitments and obligations of developed countries.
     
    But it is providing a growing contribution to supporting developing countries in overcoming obstacles to reaching the SDGs. 
     
    Second — climate.
     
    Every country has committed to limit temperature rise to 1.5 degrees Celsius.
     
    That requires dramatic action to reduce emissions now — with the G20 in the lead.
     
    COP29 is just weeks away. 
     
    That starts the clock for countries to produce new Nationally Determined Contributions plans with 2035 targets that are aligned with the 1.5 degree goal.
     
    COP29 must deliver an ambitious and credible outcome on the new climate finance goal.
     
    Developed countries must also keep promises to double adaptation finance, and ensure meaningful contributions to the Loss and Damage Fund, which was not the case when it was created.
     
    Third — technology.
     
    Every country must be able to access the benefits of technology.
     
    The Global Digital Compact commits to enhanced global cooperation and capacity-building.
     
    It includes the first truly universal agreement on the international governance of Artificial Intelligence to give every country a seat at the AI table.
     
    It calls for an independent international Scientific Panel on AI and initiating a global dialogue on its governance within the United Nations with the participations of all countries.
     
    And it requests options for innovative financing for AI capacity-building in developing countries.
     
    And fourth — peace.
     
    We must strengthen and update the machinery of peace.
     
    This includes reforms to make the United Nations Security Council reflective of today’s world.
     
    The Pact for the Future includes important steps on disarmament — including the first multilateral agreement on nuclear disarmament in more than a decade — and steps that address the weaponization of outer space and the use of lethal autonomous weapons.
     
    Across the board, we need peace.
     
    We need peace in Gaza with an immediate cease-fire, the immediate and unconditional release of all hostages, the effective delivery of humanitarian aid without obstacles, and we need to make irreversible progress to end the occupation and establish the two state solution, as it was recently reaffirmed once again by a UN General Assembly resolution.
     
    We need peace in Lebanon with an immediate cessation of hostilities, moving to the full implementation of Security Council resolution 1701. 
     
    We need peace in Ukraine. A just peace in line with the UN Charter, international law and General Assembly resolutions.
     
    We need peace in Sudan, with all parties silencing their guns and committing to a path towards sustainable peace.
     
    Those were the messages I have delivered to the High-Level segment of the General Assembly in September in New York. Unfortunately, they remain valid here and now.
     
    Everywhere, we must uphold the values of the UN Charter, the rule of law, and the principles of sovereignty, territorial integrity and political independence of all States. 
     
    Excellencies, ladies and gentlemen,
     
    The Summit of the Future charted a course to strengthen multilateralism for global development and security.
     
    Now we must turn words into deeds and we believe BRICS can play a very important role in this direction.
     
    Thank you.

    MIL OSI United Nations News –

  • MIL-OSI: AGF Investments Announces October 2024 Cash Distributions for AGF Enhanced U.S. Equity Income Fund, AGF Total Return Bond Fund and AGF Systematic Global Infrastructure ETF

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Oct. 24, 2024 (GLOBE NEWSWIRE) — AGF Investments Inc. (AGF Investments) today announced the October 2024 cash distributions for AGF Enhanced U.S. Equity Income Fund*, AGF Total Return Bond Fund* and AGF Systematic Global Infrastructure ETF, which pay monthly distributions. Unitholders of record on October 31, 2024 will receive cash distributions payable on November 6, 2024.

    Details regarding the final “per unit” distribution amounts are as follows:

    ETF Ticker Exchange Cash Distribution Per Unit ($)
    AGF Enhanced U.S. Equity Income Fund* AENU Cboe Canada Inc. $0.138874
    AGF Total Return Bond Fund* ATRB Cboe Canada Inc. $0.123000
    AGF Systematic Global Infrastructure ETF QIF Cboe Canada Inc. $0.138692

    *AGF Enhanced U.S. Equity Income Fund and AGF Total Return Bond Fund are mutual funds with an ETF series option.

    Further information about the AGF ETFs can be found at AGF.com.

    This information is not intended to provide legal, accounting, tax, investment, financial, or other advice, and should not be relied upon for providing such advice. Commissions, trailing commissions, management fees and expenses all may be associated with investment fund investments. Please read the prospectus before investing. Investment funds are not guaranteed, their values change frequently, and past performance may not be repeated.

    About AGF Management Limited

    Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. Our companies deliver excellence in investing in the public and private markets through three business lines: AGF Investments, AGF Capital Partners and AGF Private Wealth.

    AGF brings a disciplined approach, focused on incorporating sound, responsible and sustainable corporate practices. The firm’s collective investment expertise, driven by its fundamental, quantitative and private investing capabilities, extends globally to a wide range of clients, from financial advisors and their clients to high-net worth and institutional investors including pension plans, corporate plans, sovereign wealth funds, endowments and foundations.

    Headquartered in Toronto, Canada, AGF has investment operations and client servicing teams on the ground in North America and Europe. With nearly $51 billion in total assets under management and fee-earning assets, AGF serves more than 800,000 investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.

    About AGF Investments

    AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), AGF Investments America Inc. (AGFA), AGF Investments LLC (AGFUS) and AGF International Advisors Company Limited (AGFIA). The term AGF Investments may refer to one or more of these subsidiaries or to all of them jointly. This term is used for convenience and does not precisely describe any of the separate companies, each of which manages its own affairs.

    AGF Investments entities only provide investment advisory services or offers investment funds in the jurisdiction where such firm and/or product is registered or authorized to provide such services.

    AGF Investments Inc. is a wholly-owned subsidiary of AGF Management Limited and conducts the management and advisory of mutual funds in Canada.

    Media Contact
    Amanda Marchment
    Director, Corporate Communications
    416-865-4160
    amanda.marchment@agf.com

    The MIL Network –

  • MIL-OSI: TeraWulf Inc. Announces Upsize and Pricing of $425 Million Convertible Notes Offering

    Source: GlobeNewswire (MIL-OSI)

    EASTON, Md., Oct. 24, 2024 (GLOBE NEWSWIRE) — TeraWulf Inc. (Nasdaq: WULF) (“TeraWulf” or the “Company”), a leading owner and operator of vertically integrated, next-generation digital infrastructure powered by predominantly zero-carbon energy, today announced the upsize and pricing of its offering of $425 million aggregate principal amount of 2.75% Convertible Senior Notes due 2030 (the “Convertible Notes”). The Convertible Notes will be sold in a private offering to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”).

    Key Elements of the Transaction:

    • $425 million 2.75% Convertible Senior Notes offering (32.50% conversion premium)
    • Capped call transactions entered into in connection with the 2.75% Convertible Senior Notes due 2030 with an initial cap price of $12.80 per share of common stock, which represents a 100% premium to the closing sale price of TeraWulf’s common stock on October 23, 2024
    • Concurrent repurchase of approximately $115 million of common stock

    TeraWulf has granted the initial purchasers of the Convertible Notes a 13-day option to purchase up to an additional $75 million aggregate principal amount of the Convertible Notes. The offering is expected to close on October 25, 2024, subject to satisfaction of customary closing conditions. 

    Use of Proceeds:

    The Company anticipates that the aggregate net proceeds from the offering will be approximately $414.9 million (or approximately $488.1 million if the initial purchasers exercise in full their option to purchase additional notes), after deducting the initial purchasers’ discounts and commissions payable by TeraWulf. The Company intends to use approximately $51 million of the net proceeds from the offering to pay the cost of the capped call transactions (as described below), $115 million to repurchase shares of the Company’s common stock (the “common stock”), and the remainder for general corporate purposes, which may include working capital, strategic acquisitions, expansion of data center infrastructure to support HPC activities and expansion of existing assets.

    Additional Details of the Convertible Notes:

    The Convertible Notes will be senior unsecured obligations of the Company and will accrue interest at a rate of 2.75% per annum, payable semi-annually in arrears on May 1 and November 1 of each year, beginning on May 1, 2025. The Convertible Notes will mature on February 1, 2030, unless earlier repurchased, redeemed or converted in accordance with their terms. Prior to November 1, 2029, the Convertible Notes will be convertible only upon satisfaction of certain conditions and during certain periods, and thereafter, the Convertible Notes will be convertible at any time until the close of business on the second scheduled trading day immediately preceding the maturity date.

    The Convertible Notes will be convertible into cash in respect of the aggregate principal amount of the Convertible Notes to be converted and cash, shares of the common stock or a combination of cash and shares of the common stock, at the Company’s election, in respect of the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount of the Convertible Notes being converted. The conversion rate will initially be 117.9245 shares of common stock per $1,000 principal amount of Convertible Notes (equivalent to an initial conversion price of approximately $8.48 per share of the common stock). The initial conversion price of the Convertible Notes represents a premium of approximately 32.50% to the $6.40 closing price per share of the common stock on The Nasdaq Capital Market on October 23, 2024. The conversion rate will be subject to adjustment in certain circumstances. In addition, upon conversion in connection with certain corporate events or a notice of redemption, the Company will increase the conversion rate.

    The Company may not redeem the Convertible Notes prior to November 6, 2027. The Company may redeem for cash all or any portion of the Convertible Notes, at its option, on or after November 6, 2027, if the last reported sale price of the common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption to holders at a redemption price equal to 100% of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.

    Holders of the Convertible Notes will have the right to require the Company to repurchase all or a portion of their Convertible Notes upon the occurrence of a fundamental change (as defined in the indenture governing the Convertible Notes) at a cash repurchase price of 100% of their principal amount plus any accrued and unpaid interest, if any, to, but excluding the applicable repurchase date. 

    Capped Call Transactions:

    In connection with the pricing of the Convertible Notes, the Company entered into privately negotiated capped call transactions with certain financial institutions (the “option counterparties”). The cap price of the capped call transactions will initially be $12.80 per share of common stock, which represents a premium of 100% over the last reported sale price of the common stock of $6.40 per share on The Nasdaq Capital Market on October 23, 2024 and will be subject to customary anti-dilution adjustments. If the initial purchasers of the Convertible Notes exercise their option to purchase additional Convertible Notes, the Company expects to use a portion of the net proceeds from the sale of the additional Convertible Notes to enter into additional capped call transactions with the option counterparties.

    The capped call transactions are expected generally to reduce potential dilution to the common stock upon conversion of any Convertible Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted Convertible Notes, as the case may be, with such reduction and/or offset subject to a cap.

    In connection with establishing their initial hedges of the capped call transactions, the Company expects the option counterparties or their respective affiliates to purchase shares of the common stock and/or enter into various derivative transactions with respect to the common stock concurrently with or shortly after the pricing of the Convertible Notes. This activity could increase (or reduce the size of any decrease in) the market price of the common stock or the Convertible Notes at that time. In addition, the option counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to the common stock and/or purchasing or selling shares of the common stock or other securities of the Company in secondary market transactions following the pricing of the Convertible Notes and prior to the maturity of the Convertible Notes (and are likely to do so on each exercise date for the capped call transactions or following any termination of any portion of the capped call transactions in connection with any repurchase, redemption or early conversion of the Convertible Notes). This activity could also cause or avoid an increase or decrease in the market price of the common stock or the Convertible Notes, which could affect holders of the Convertible Notes’ ability to convert the Convertible Notes and, to the extent the activity occurs following conversion of the Convertible Notes or during any observation period related to a conversion of the Convertible Notes, it could affect the amount and value of the consideration that holders of the Convertible Notes will receive upon conversion of such Convertible Notes.

    Share Repurchases:

    The Company entered into transactions to repurchase approximately 17.97 million shares of the common stock for an aggregate purchase price of approximately $115 million from purchasers of the Convertible Notes in privately negotiated transactions effected concurrently with the pricing of the Convertible Notes, and the purchase price per share of the common stock repurchased in such transactions will equal the $6.40 closing price per share of the common stock on The Nasdaq Capital Market on October 23, 2024.

    The Convertible Notes and any shares of common stock issuable upon conversion of the Convertible Notes, if any, have not been registered under the Securities Act, securities laws of any other jurisdiction, and the Convertibles Notes and such shares of common stock may not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act and any applicable state securities laws. The Convertible Notes will be offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A under the Securities Act.

    This press release shall not constitute an offer to sell, or a solicitation of an offer to buy the Convertible Notes, nor shall there be any sale of the Convertible Notes or common stock in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

    About TeraWulf

    TeraWulf develops, owns, and operates environmentally sustainable, next-generation data center infrastructure in the United States, specifically designed for Bitcoin mining and high-performance computing. Led by a team of seasoned energy entrepreneurs, the Company owns and operates the Lake Mariner facility situated on the expansive site of a now retired coal plant in Western New York. Currently, TeraWulf generates revenue primarily through Bitcoin mining, leveraging predominantly zero-carbon energy sources, including nuclear and hydroelectric power. Committed to environmental, social, and governance (ESG) principles that align with its business objectives, TeraWulf aims to deliver industry-leading economics in mining and data center operations at an industrial scale.

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements include statements concerning anticipated future events and expectations that are not historical facts, such as statements concerning the terms of the notes and the capped call transactions, the completion, timing and size of the offering of the notes and the capped call transactions, and the anticipated use of proceeds from the offering (including the proposed share repurchases). All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements. In addition, forward-looking statements are typically identified by words such as “plan,” “believe,” “goal,” “target,” “aim,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict,” “should,” “would” and other similar words and expressions, although the absence of these words or expressions does not mean that a statement is not forward-looking. Forward-looking statements are based on the current expectations and beliefs of TeraWulf’s management and are inherently subject to a number of factors, risks, uncertainties and assumptions and their potential effects. There can be no assurance that future developments will be those that have been anticipated. Actual results may vary materially from those expressed or implied by forward-looking statements based on a number of factors, risks, uncertainties and assumptions, including, among others: (1) conditions in the cryptocurrency mining industry, including fluctuation in the market pricing of bitcoin and other cryptocurrencies, and the economics of cryptocurrency mining, including as to variables or factors affecting the cost, efficiency and profitability of cryptocurrency mining; (2) competition among the various providers of cryptocurrency mining services; (3) changes in applicable laws, regulations and/or permits affecting TeraWulf’s operations or the industries in which it operates, including regulation regarding power generation, cryptocurrency usage and/or cryptocurrency mining, and/or regulation regarding safety, health, environmental and other matters, which could require significant expenditures; (4) the ability to implement certain business objectives and to timely and cost-effectively execute integrated projects; (5) failure to obtain adequate financing on a timely basis and/or on acceptable terms with regard to growth strategies or operations; (6) loss of public confidence in bitcoin or other cryptocurrencies and the potential for cryptocurrency market manipulation; (7) adverse geopolitical or economic conditions, including a high inflationary environment; (8) the potential of cybercrime, money-laundering, malware infections and phishing and/or loss and interference as a result of equipment malfunction or break-down, physical disaster, data security breach, computer malfunction or sabotage (and the costs associated with any of the foregoing); (9) the availability, delivery schedule and cost of equipment necessary to maintain and grow the business and operations of TeraWulf, including mining equipment and infrastructure equipment meeting the technical or other specifications required to achieve its growth strategy; (10) employment workforce factors, including the loss of key employees; (11) litigation relating to TeraWulf and/or its business; and (12) other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”). Potential investors, stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they were made. TeraWulf does not assume any obligation to publicly update any forward-looking statement after it was made, whether as a result of new information, future events or otherwise, except as required by law or regulation. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements and the discussion of risk factors contained in the Company’s filings with the SEC, which are available at www.sec.gov.

    Investors:
    Investors@terawulf.com

    Media:
    media@terawulf.com

    The MIL Network –

  • MIL-OSI: Columbia Financial, Inc. Announces Financial Results for the Third Quarter Ended September 30, 2024

    Source: GlobeNewswire (MIL-OSI)

    FAIR LAWN, N.J., Oct. 24, 2024 (GLOBE NEWSWIRE) — Columbia Financial, Inc. (the “Company”) (NASDAQ: CLBK), the mid-tier holding company for Columbia Bank (“Columbia”), reported net income of $6.2 million, or $0.06 per basic and diluted share, for the quarter ended September 30, 2024, as compared to $9.1 million, or $0.09 per basic and diluted share, for the quarter ended September 30, 2023. The income for the quarter ended September 30, 2024 reflected lower net interest income, mainly due to an increase in interest expense, and higher provision for credit losses, partially offset by higher non-interest income and lower income tax expense.

    For the nine months ended September 30, 2024, the Company reported net income of $9.6 million, or $0.09 per basic and diluted share, as compared to $29.5 million, or $0.29 per basic and diluted share, for the nine months ended September 30, 2023. Earnings for the nine months ended September 30, 2024 reflected lower net interest income, mainly due to an increase in interest expense, and higher provision for credit losses, partially offset by higher non-interest income and lower income tax expense. Non-interest income for the 2023 period included a $10.8 million loss on securities transactions.

    Mr. Thomas J. Kemly, President and Chief Executive Officer commented: “The third quarter earnings have been challenged by continuing pressure on funding costs. Our net interest margin, which has increased 9 basis points since the first quarter of 2024, and our expense management, we believe, will contribute to improved earnings on a go forward basis. The Company’s balance sheet and capital remain strong. We successfully closed the merger and performed the system conversion of Freehold Bank into Columbia Bank in October 2024. This was the final step of our fourth completed merger over the last five years.”

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

    Net income of $6.2 million was recorded for the quarter ended September 30, 2024, a decrease of $2.9 million, or 32.3%, compared to $9.1 million for the quarter ended September 30, 2023. The decrease in net income was primarily attributable to a $3.2 million decrease in net interest income, and a $1.7 million increase in provision for credit losses, partially offset by a $376,000 increase in non-interest income, and a $1.6 million decrease in income tax expense.

    Net interest income was $45.3 million for the quarter ended September 30, 2024, a decrease of $3.2 million, or 6.7%, from $48.5 million for the quarter ended September 30, 2023. The decrease in net interest income was primarily attributable to a $20.7 million increase in interest expense on deposits and borrowings, partially offset by a $17.5 million increase in interest income. The increase in interest income was primarily due to an increase in the average balance of total interest-earning assets coupled with an increase in average yields due to market interest rate increases that occurred throughout 2023, and adjustable rate securities and loans tied to various indexes that repriced higher in the 2024 period. The 50 basis point decrease in market rates in September 2024 did not significantly impact the 2024 period results. The increase in interest expense on deposits was driven by the 2023 rate increases and an increase in the average balance of interest-bearing deposits, coupled with the continued intense competition for deposits in the market and the repricing of existing deposits into higher cost products. The increase in interest expense on borrowings was also impacted by an increase in the average balance of borrowings and the increase in interest rates for new borrowings. Prepayment penalties, which are included in interest income on loans, totaled $171,000 for the quarter ended September 30, 2024, compared to $83,000 for the quarter ended September 30, 2023.

    The average yield on loans for the quarter ended September 30, 2024 increased 53 basis points to 5.00%, as compared to 4.47% for the quarter ended September 30, 2023, as interest income was influenced by rising interest rates and the average balance of loans. The average yield on securities for the quarter ended September 30, 2024 increased 53 basis points to 2.90%, as compared to 2.37% for the quarter ended September 30, 2023, as new securities purchased during the 2024 period were at higher rates. The average yield on other interest-earning assets for the quarter ended September 30, 2024 increased 81 basis points to 6.72%, as compared to 5.91% for the quarter ended September 30, 2023, due to the rise in average balances and interest rates paid on cash balances and an increase in the dividend rate paid on Federal Home Loan Bank stock.

    Total interest expense was $70.6 million for the quarter ended September 30, 2024, an increase of $20.7 million, or 41.6%, from $49.9 million for the quarter ended September 30, 2023. The increase in interest expense was primarily attributable to a 90 basis point increase in the average cost of interest-bearing deposits, coupled with an increase in the average balance of interest-bearing deposits, along with a 17 basis point increase in the average cost of borrowings, coupled with an increase in the average balance of borrowings. Interest expense on deposits increased $16.3 million, or 45.3%, and interest expense on borrowings increased $4.5 million, or 31.9%.

    The Company’s net interest margin for the quarter ended September 30, 2024 decreased 22 basis points to 1.84%, when compared to 2.06% for the quarter ended September 30, 2023. The weighted average yield on interest-earning assets increased 53 basis points to 4.70% for the quarter ended September 30, 2024, as compared to 4.17% for the quarter ended September 30, 2023. The average cost of interest-bearing liabilities increased 82 basis points to 3.52% for the quarter ended September 30, 2024, as compared to 2.70% for the quarter ended September 30, 2023. The increase in yields for the quarter ended September 30, 2024 was due to the impact of market interest rate increases in 2023. The net interest margin decreased for the quarter ended September 30, 2024, as the increase in the average cost of interest-bearing liabilities outweighed the increase in the average yield on interest-earning assets. The Company’s net interest margin for the quarter ended September 30, 2024 when compared to the quarter ended March 31, 2024 increased 9 basis points from 1.75% to 1.84%.

    The provision for credit losses for the quarter ended September 30, 2024 was $4.1 million, an increase of $1.7 million, from $2.4 million for the quarter ended September 30, 2023. The increase in provision for credit losses during the quarter was primarily attributable to net charge-offs totaling $2.7 million and an increase in the loan performance qualitative factors.

    Non-interest income was $9.0 million for the quarter ended September 30, 2024, an increase of $376,000, from $8.6 million for the quarter ended September 30, 2023. The increase was primarily attributable to an increase of $347,000 in demand deposit account fees, mainly related to commercial account treasury services.

    Non-interest expense was $42.8 million for the quarter ended September 30, 2024, a decrease of $76,000, from $42.9 million for the quarter ended September 30, 2023. The decrease was primarily attributable to a decrease in compensation and employee benefits expense of $1.0 million, partially offset by an increase in data processing fees of $666,000, and federal deposit insurance premiums of $317,000. The decrease in compensation and employee benefits expense was the result of workforce reduction and lower incentive compensation related to employee cost cutting strategies implemented during 2023 and 2024. Data processing and software expenses increased due to costs related to cybersecurity and technology enhancements, and federal deposit insurance premiums increased due to the 2024 quarter including an increase in a one-time special assessment charge.

    Income tax expense was $1.1 million for the quarter ended September 30, 2024, a decrease of $1.6 million, as compared to income tax expense of $2.7 million for the quarter ended September 30, 2023, mainly due to a decrease in pre-tax income. The Company’s effective tax rate was 15.5% and 22.9% for the quarters ended September 30, 2024 and 2023, respectively. The effective tax rate for the 2024 quarter was primarily impacted by permanent income tax differences.

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

    Net income of $9.6 million was recorded for the nine months ended September 30, 2024, a decrease of $19.9 million, or 67.6%, compared to $29.5 million for the nine months ended September 30, 2023. The decrease in net income was primarily attributable to a $29.0 million decrease in net interest income and a $7.9 million increase in provision for credit losses, partially offset by a $9.5 million increase in non-interest income and a $7.8 million decrease in income tax expense.

    Net interest income was $131.6 million for the nine months ended September 30, 2024, a decrease of $29.0 million, or 18.1%, from $160.5 million for the nine months ended September 30, 2023. The decrease in net interest income was primarily attributable to a $79.4 million increase in interest expense on deposits and borrowings, partially offset by a $50.4 million increase in interest income. The increase in interest income was primarily due to an increase in the average balance of total interest-earning assets coupled with an increase in average yields due to market interest rate increases that occurred throughout 2023, and adjustable rate securities and loans tied to various indexes that repriced higher in the 2024 period. The 50 basis point decrease in market rates in September 2024 did not significantly impact the 2024 period results. The increase in interest expense on deposits was driven by the 2023 rate increases and an increase in the average balance of interest-bearing deposits, coupled with the continued intense competition for deposits in the market and the repricing of existing deposits into higher cost products. The increase in interest expense on borrowings was also impacted by an increase in the average balance of borrowings and the increase in interest rates for new borrowings. Prepayment penalties, which are included in interest income on loans, totaled $875,000 for the nine months ended September 30, 2024, compared to $339,000 for the nine months ended September 30, 2023.

    The average yield on loans for the nine months ended September 30, 2024 increased 55 basis points to 4.91%, as compared to 4.36% for the nine months ended September 30, 2023, as interest income was influenced by higher interest rates and loan growth. The average yield on securities for the nine months ended September 30, 2024 increased 40 basis points to 2.82%, as compared to 2.42% for the nine months ended September 30, 2023, as a number of adjustable rate securities tied to various indexes repriced higher during the nine months, and new securities purchased during the 2024 period were at higher yields. The average yield on other interest-earning assets for the nine months ended September 30, 2024 increased 90 basis points to 6.35%, as compared to 5.45% for the nine months ended September 30, 2023, due to the rise in average balances and interest rates paid on cash balances and an increase in the dividend rate paid on Federal Home Loan Bank stock.

    Total interest expense was $206.2 million for the nine months ended September 30, 2024, an increase of $79.4 million, 62.5%, from $126.9 million for the nine months ended September 30, 2023. The increase in interest expense was primarily attributable to a 134 basis point increase in the average cost of interest-bearing deposits, coupled with an increase in the average balance of interest-bearing deposits, along with a 25 basis point increase in the average cost of borrowings, and an increase in the average balance of borrowings. Interest expense on deposits increased $68.7 million, or 84.1%, and interest expense on borrowings increased $10.6 million, or 23.6%.

    The Company’s net interest margin for the nine months ended September 30, 2024 decreased 47 basis points to 1.80%, when compared to 2.27% for the nine months ended September 30, 2023. The weighted average yield on interest-earning assets increased 55 basis points to 4.61% for the nine months ended September 30, 2024, as compared to 4.06% for the nine months ended September 30, 2023. The average cost of interest-bearing liabilities increased 118 basis points to 3.47% for the nine months ended September 30, 2024, as compared to 2.29% for the nine months ended September 30, 2023. The increase in yields for the nine months ended September 30, 2024 was due to the impact of market interest rate increases between periods. The net interest margin decreased for the nine months ended September 30, 2024, as the increase in the average cost of interest-bearing liabilities outweighed the increase in the average yield on interest-earning assets.

    The provision for credit losses for the nine months ended September 30, 2024 was $11.6 million, an increase of $7.9 million, from $3.6 million for the nine months ended September 30, 2023. The increase in provision for credit losses was primarily attributable to net charge-offs totaling $8.2 million and an increase in the loan performance qualitative factors.

    Non-interest income was $25.6 million for the nine months ended September 30, 2024, an increase of $9.5 million, from $16.1 million for the nine months ended September 30, 2023. The increase was primarily attributable to a decrease in the loss on securities transactions of $9.6 million.

    Non-interest expense was $134.7 million for the nine months ended September 30, 2024, an increase of $321,000, from $134.4 million for the nine months ended September 30, 2023. The increase was primarily attributable to an increase in federal deposit insurance premiums of $2.1 million, due to the 2024 period including an increase in a one-time special assessment charge. In addition, there was an increase in professional fees of $4.9 million, an increase in data processing and software expenses of $1.1 million, an increase in merger-related expense of $457,000, and an increase in other non-interest expense of $1.2 million, partially offset by a decrease in compensation and employee benefits expense of $9.5 million. Professional fees included an increase in legal, regulatory and compliance-related costs while data processing and software expenses increased due to costs related to cybersecurity and technology enhancements. The decrease in compensation and employee benefits expense was the result of workforce reduction and lower incentive compensation related to employee cost cutting strategies implemented during 2023 and 2024.

    Income tax expense was $1.3 million for the nine months ended September 30, 2024, a decrease of $7.8 million, as compared to income tax expense of $9.1 million for the nine months ended September 30, 2023, mainly due to a decrease in pre-tax income. The Company’s effective tax rate was 11.8% and 23.6% for the nine months ended September 30, 2024 and 2023, respectively. The effective tax rate for the 2024 period was also impacted by permanent income tax differences.

    Balance Sheet Summary

    Total assets increased $40.9 million, or 0.4%, to $10.7 billion at September 30, 2024 as compared to $10.6 billion at December 31, 2023. The increase in total assets was primarily attributable to an increase in debt securities available for sale of $178.9 million, and an increase in other assets of $21.3 million, partially offset by a decrease in cash and cash equivalents of $139.7 million, and a decrease in loans receivable, net, of $20.7 million.

    Cash and cash equivalents decreased $139.7 million, or 33.0%, to $283.5 million at September 30, 2024 from $423.2 million at December 31, 2023. The decrease was primarily attributable to purchases of securities of $283.5 million and repurchases of common stock under our stock repurchase program of $5.9 million, partially offset by proceeds from principal repayments on securities of $119.3 million, and repayments on loans receivable.

    Debt securities available for sale increased $178.9 million, or 16.4%, to $1.3 billion at September 30, 2024 from $1.1 billion at December 31, 2023. The increase was attributable to the purchases of debt securities available for sale of $266.9 million, consisting primarily of U.S. government obligations and mortgage-backed securities, and a decrease in gross unrealized losses on securities of $34.3 million, partially offset by repayments on securities of $107.8 million, maturities of securities of $10.0 million, and the sale of one corporate debt security with a carrying value of $4.8 million, resulting in a loss of $1.3 million.

    Loans receivable, net, decreased $20.7 million, or 0.3%, with a balance of $7.8 billion at both September 30, 2024 and December 31, 2023. One-to-four family real estate loans, multifamily loans, commercial real estate loans, and home equity loans and advances decreased $55.6 million, $10.2 million, $64.3 million, and $5.6 million, respectively, partially offset by increases in construction loans of $67.3 million and commercial business loans of $53.4 million. The allowance for credit losses for loans increased $3.4 million to $58.5 million at September 30, 2024 from $55.1 million at December 31, 2023.

    Other assets increased $21.3 million or 6.9%, to $329.7 million at September 30, 2024 compared to $308.4 million at December 31, 2023, primarily due to a $10.4 million increase in the Company’s pension plan balance, as the return on plan assets outpaced the growth in the plan’s obligations and a $12.6 million increase in the Company’s collateral posting with certain of its derivative counterparties.

    Total liabilities increased $2.1 million, or 0.02%, totaling $9.6 billion at both September 30, 2024 and December 31, 2023. The increase was primarily attributable to an increase in total deposits of $111.5 million, or 1.4%, partially offset by a decrease in borrowings of $108.1 million, or 7.1%. The increase in total deposits primarily consisted of an increase in certificates of deposit and interest-bearing demand deposits of $195.7 million, and $13.8 million, respectively, partially offset by decreases in non-interest-bearing demand deposits, money market accounts, and savings and club accounts of $31.2 million, $16.3 million, and $50.5 million, respectively. The Bank has priced select certificates of deposit accounts very competitively to the market to attract new customers. The $108.1 million decrease in borrowings was primarily driven by a net decrease in short-term borrowings of $167.8 million and repayments of $175.5 million in maturing long-term borrowings, partially offset by an increase in long-term borrowings of $235.2 million.

    Total stockholders’ equity increased $38.8 million, or 3.7%, to $1.1 billion at September 30, 2024 as compared to $1.0 billion at December 31, 2023. The increase in total stockholders’ equity was primarily attributable to net income of $9.6 million, a $5.5 million increase in stock based compensation and an increase of $27.7 million in other comprehensive income, which includes changes in unrealized losses on debt securities available for sale and unrealized gains on swap contracts, net of taxes, included in other comprehensive income. These increases were partially offset by the repurchase of 365,116 shares of common stock at a cost of approximately $5.9 million, or $16.14 per share, under our stock repurchase program. Repurchases have been paused in order to retain capital.

    Asset Quality

    The Company’s non-performing loans at September 30, 2024 totaled $28.0 million, or 0.36% of total gross loans, as compared to $12.6 million, or 0.16% of total gross loans, at December 31, 2023. The $15.4 million increase in non-performing loans was primarily attributable to an increase in non-performing one-to-four family real estate loans of $4.2 million, an increase in non-performing commercial real estate loans of $6.7 million, and an increase in non-performing commercial business loans of $4.5 million. One borrower with an outstanding $5.7 million commercial real estate loan and a related $3.5 million commercial business loan was placed on non-accrual status, representing approximately 60% of the increase in non-performing loans during the 2024 period. This borrower is a healthcare facility that was acquired by another healthcare provider in 2024. The acquiring entity has strong cash flow, has guaranteed the commercial business loan and has provided cash collateral. The Company has the first lien on the healthcare facility which has a 2024 appraised value of approximately $18.5 million along with additional collateral. One commercial real estate loan for $2.0 million secured by a medical condominium was transferred to other real estate owned in May 2024, and a related commercial business loan to the same borrower for $54,000 was charged-off during the nine months ended September 30, 2024.

    The increase in non-performing one-to-four family real estate loans was due to an increase in the number of loans from 17 non-performing loans at December 31, 2023 to 27 loans at September 30, 2024. Non-performing assets as a percentage of total assets totaled 0.28% and 0.12% at September 30, 2024 and December 31, 2023, respectively.

    For the quarter ended September 30, 2024, net charge-offs totaled $2.7 million, as compared to $1.7 million in net charge-offs recorded for the quarter ended September 30, 2023. For the nine months ended September 30, 2024, net charge-offs totaled $8.2 million, as compared to $2.3 million in net charge-offs recorded for the nine months ended September 30, 2023. Net charge-offs recorded for the nine months ended September 30, 2024 included charge-offs related to 15 commercial business loans totaling $7.7 million. The majority of these loans have continued making monthly payments, and management expects additional recoveries from these borrowers on a go forward basis.

    The Company’s allowance for credit losses on loans was $58.5 million, or 0.75% of total gross loans, at September 30, 2024, compared to $55.1 million, or 0.70% of total gross loans, at December 31, 2023.

    Additional Liquidity, Loan, and Deposit Information

    The Company services a diverse retail and commercial deposit base through its 68 branches. With approximately 215,000 accounts, the average deposit account balance was approximately $37,000 at September 30, 2024.

    Deposit balances are summarized as follows:

      At September 30, 2024   At June 30, 2024
      Balance   Weighted
    Average
    Rate    		   Balance   Weighted
    Average
    Rate
      (Dollars in thousands)
                   
    Non-interest-bearing demand $ 1,406,152       — %   $ 1,405,441       — %
    Interest-bearing demand   1,980,298       2.41       1,904,483       2.37  
    Money market accounts   1,239,204       2.92       1,246,663       3.17  
    Savings and club deposits   649,858       0.79       673,031       0.83  
    Certificates of deposit   2,682,547       4.45       2,551,929       4.34  
    Total deposits $ 7,958,059       2.62 %   $ 7,781,547       2.56 %
                                   

    The Company continues to maintain strong liquidity and capital positions. The Company had no outstanding borrowings from the Federal Reserve Discount Window at September 30, 2024. As of September 30, 2024, the Company had immediate access to approximately $2.6 billion of funding, with additional unpledged loan collateral in excess of $1.8 billion.

    At September 30, 2024, the Company’s non-performing commercial real estate loans totaled $9.4 million, or 0.12%, of the total loans receivable loan portfolio balance.

    The following table presents multifamily real estate, owner occupied commercial real estate, and the components of investor owned commercial real estate loans included in the real estate loan portfolio.

      At September 30, 2024
      (Dollars in thousands)
      Balance   % of Gross Loans   Weighted Average
    Loan to Value Ratio    		   Weighted
    Average
    Debt Service
    Coverage
    Multifamily Real Estate $ 1,399,000       17.8 %     61.0 %     1.62 x
                       
    Owner Occupied Commercial Real Estate $ 683,523       8.7 %     53.6 %     2.10 x
                       
    Investor Owned Commercial Real Estate:                  
    Retail / Shopping centers $ 484,121       6.2 %     51.7 %     1.59 x
    Mixed Use   211,853       2.7       58.1       1.61  
    Industrial / Warehouse   389,470       5.0       54.9       1.70  
    Non-Medical Office   197,768       2.5       54.2       1.64  
    Medical Office   126,947       1.6       57.9       1.50  
    Single Purpose   94,497       1.2       54.5       3.23  
    Other   124,580       1.6       52.0       1.67  
    Total $ 1,629,236       20.7 %     54.3 %     1.72 x
                       
    Total Multifamily and Commercial Real Estate Loans $ 3,711,759       47.2 %     56.7 %     1.75 x
                                   

    As of September 30, 2024, the Company had less than $1.0 million in loan exposure to office or rent stabilized multifamily loans in New York City.

    About Columbia Financial, Inc.

    The consolidated financial results include the accounts of Columbia Financial, Inc., its wholly-owned subsidiary Columbia Bank (the “Bank”) and the Bank’s wholly-owned subsidiaries. Columbia Financial, Inc. is a Delaware corporation organized as Columbia Bank’s mid-tier stock holding company. Columbia Financial, Inc. is a majority-owned subsidiary of Columbia Bank, MHC. Columbia Bank is a federally chartered savings bank headquartered in Fair Lawn, New Jersey that operates 68 full-service banking offices and offers traditional financial services to consumers and businesses in its market area.

    Forward Looking Statements

    Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “projects,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in interest rates, higher inflation and their impact on national and local economic conditions; changes in monetary and fiscal policies of the U.S. Treasury, the Board of Governors of the Federal Reserve System and other governmental entities; the impact of legal, judicial and regulatory proceedings or investigations, competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which the Company operates, including changes that adversely affect a borrowers’ ability to service and repay the Company’s loans; the effect of acts of terrorism, war or pandemics,, including on our credit quality and business operations, as well as its impact on general economic and financial market conditions; changes in the value of securities in the Company’s portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and securities; legislative changes and changes in government regulation; changes in accounting standards and practices; the risk that goodwill and intangibles recorded in the Company’s consolidated financial statements will become impaired; cyber-attacks, computer viruses and other technological risks that may breach the security of our systems and allow unauthorized access to confidential information; the inability of third party service providers to perform; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits and effectively manage liquidity; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that the Company may not be successful in the implementation of its business strategy, or its integration of acquired financial institutions and businesses, and changes in assumptions used in making such forward-looking statements which are subject to numerous risks and uncertainties, including but not limited to, those set forth in Item 1A of the Company’s Annual Report on Form 10-K and those set forth in the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, all as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, the Company’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law.

    Non-GAAP Financial Measures

    Reported amounts are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). This press release also contains certain supplemental non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results. Specifically, the Company provides measures based on what it believes are its operating earnings on a consistent basis and excludes material non-routine operating items which affect the GAAP reporting of results of operations. The Company’s management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company’s core financial results for the periods presented. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

    The Company also provides measurements and ratios based on tangible stockholders’ equity. These measures are commonly utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors.

    A reconciliation of GAAP to non-GAAP financial measures are included at the end of this press release. See “Reconciliation of GAAP to Non-GAAP Financial Measures”.

           
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Consolidated Statements of Financial Condition
    (In thousands)
           
      September 30,   December 31,
      2024
    		   2023
    Assets (Unaudited)    
    Cash and due from banks $ 283,391     $ 423,140  
    Short-term investments   110       109  
    Total cash and cash equivalents   283,501       423,249  
           
    Debt securities available for sale, at fair value   1,272,464       1,093,557  
    Debt securities held to maturity, at amortized cost (fair value of $367,559, and $357,177 at September 30, 2024 and December 31, 2023, respectively)   401,331       401,154  
    Equity securities, at fair value   4,504       4,079  
    Federal Home Loan Bank stock   75,847       81,022  
           
    Loans receivable   7,857,190       7,874,537  
    Less: allowance for credit losses   58,495       55,096  
    Loans receivable, net   7,798,695       7,819,441  
           
    Accrued interest receivable   41,659       39,345  
    Office properties and equipment, net   82,248       83,577  
    Bank-owned life insurance   272,970       268,362  
    Goodwill and intangible assets   121,569       123,350  
    Other real estate owned   1,974       —  
    Other assets   329,741       308,432  
    Total assets $ 10,686,503     $ 10,645,568  
           
    Liabilities and Stockholders’ Equity      
    Liabilities:      
    Deposits $ 7,958,059     $ 7,846,556  
    Borrowings   1,420,640       1,528,695  
    Advance payments by borrowers for taxes and insurance   42,793       43,509  
    Accrued expenses and other liabilities   185,861       186,473  
    Total liabilities   9,607,353       9,605,233  
           
    Stockholders’ equity:      
    Total stockholders’ equity   1,079,150       1,040,335  
    Total liabilities and stockholders’ equity $ 10,686,503     $ 10,645,568  
                   
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Consolidated Statements of Income
    (In thousands, except per share data)
           
      Three Months Ended
    September 30,    		   Nine Months Ended
    September 30,
      2024   2023   2024   2023
    Interest income: (Unaudited)   (Unaudited)
    Loans receivable $ 97,863     $ 87,548     $ 286,064     $ 252,026  
    Debt securities available for sale and equity securities   9,592       6,147       26,618       21,043  
    Debt securities held to maturity   2,616       2,434       7,487       7,338  
    Federal funds and interest-earning deposits   3,850       747       11,872       3,360  
    Federal Home Loan Bank stock dividends   1,966       1,529       5,759       3,661  
    Total interest income   115,887       98,405       337,800       287,428  
    Interest expense:              
    Deposits   52,196       35,918       150,440       81,733  
    Borrowings   18,416       13,965       55,805       45,158  
    Total interest expense   70,612       49,883       206,245       126,891  
                   
    Net interest income   45,275       48,522       131,555       160,537  
                   
    Provision for credit losses   4,103       2,379       11,575       3,632  
                   
    Net interest income after provision for credit losses   41,172       46,143       119,980       156,905  
                   
    Non-interest income:              
    Demand deposit account fees   1,695       1,348       4,698       3,815  
    Bank-owned life insurance   1,669       2,014       5,253       5,670  
    Title insurance fees   688       629       1,935       1,840  
    Loan fees and service charges   951       969       3,290       3,366  
    Loss on securities transactions   —       —       (1,256 )     (10,847 )
    Change in fair value of equity securities   (27 )     (81 )     425       249  
    Gain on sale of loans   459       397       825       1,060  
    Other non-interest income   3,543       3,326       10,440       10,977  
    Total non-interest income   8,978       8,602       25,610       16,130  
                   
    Non-interest expense:              
    Compensation and employee benefits   27,738       28,765       82,910       92,383  
    Occupancy   5,594       5,845       17,621       17,337  
    Federal deposit insurance premiums   1,518       1,201       5,752       3,624  
    Advertising   766       834       2,053       2,307  
    Professional fees   2,454       2,490       11,597       6,741  
    Data processing and software expenses   4,125       3,459       12,006       10,885  
    Merger-related expenses   23       14       737       280  
    Other non-interest expense, net   616       302       2,063       861  
    Total non-interest expense   42,834       42,910       134,739       134,418  
                   
    Income before income tax expense   7,316       11,835       10,851       38,617  
                   
    Income tax expense   1,131       2,705       1,281       9,100  
                   
    Net income $ 6,185     $ 9,130     $ 9,570     $ 29,517  
                   
    Earnings per share-basic $ 0.06     $ 0.09     $ 0.09     $ 0.29  
    Earnings per share-diluted $ 0.06     $ 0.09     $ 0.09     $ 0.29  
    Weighted average shares outstanding-basic   101,623,160       101,968,294       101,673,619       102,993,215  
    Weighted average shares outstanding-diluted   101,832,048       102,097,491       101,813,253       103,257,616  
                                   
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Average Balances/Yields
       
      For the Three Months Ended September 30,
      2024   2023
      Average
    Balance    		   Interest
    and
    Dividends    		   Yield / Cost   Average
    Balance    		   Interest
    and
    Dividends    		   Yield / Cost
      (Dollars in thousands)
    Interest-earnings assets:                      
    Loans $ 7,791,131     $ 97,863       5.00 %   $ 7,763,368     $ 87,548       4.47 %
    Securities   1,676,781       12,208       2.90 %     1,437,944       8,581       2.37 %
    Other interest-earning assets   344,560       5,816       6.72 %     152,900       2,276       5.91 %
    Total interest-earning assets   9,812,472       115,887       4.70 %     9,354,212       98,405       4.17 %
    Non-interest-earning assets   870,155               844,884          
    Total assets $ 10,682,627             $ 10,199,096          
                           
    Interest-bearing liabilities:                      
    Interest-bearing demand $ 1,970,444     $ 14,581       2.94 %   $ 2,054,464     $ 10,274       1.98 %
    Money market accounts   1,250,676       8,256       2.63 %     1,049,277       7,763       2.94 %
    Savings and club deposits   658,628       1,313       0.79 %     758,999       691       0.36 %
    Certificates of deposit   2,589,190       28,046       4.31 %     2,296,573       17,190       2.97 %
    Total interest-bearing deposits   6,468,938       52,196       3.21 %     6,159,313       35,918       2.31 %
    FHLB advances   1,497,580       18,249       4.85 %     1,142,484       13,508       4.69 %
    Notes payable   —       —       — %     29,925       297       3.94 %
    Junior subordinated debentures   7,028       164       9.28 %     7,315       160       8.68 %
    Other borrowings   217       3       5.50 %     —       —       — %
    Total borrowings   1,504,825       18,416       4.87 %     1,179,724       13,965       4.70 %
    Total interest-bearing liabilities   7,973,763     $ 70,612       3.52 %     7,339,037     $ 49,883       2.70 %
                           
    Non-interest-bearing liabilities:                      
    Non-interest-bearing deposits   1,411,622               1,498,726          
    Other non-interest-bearing liabilities   235,990               241,463          
    Total liabilities   9,621,375               9,079,226          
    Total stockholders’ equity   1,061,252               1,119,870          
    Total liabilities and stockholders’ equity $ 10,682,627             $ 10,199,096          
                           
    Net interest income     $ 45,275             $ 48,522      
    Interest rate spread           1.18 %             1.47 %
    Net interest-earning assets $ 1,838,709             $ 2,015,175          
    Net interest margin           1.84 %             2.06 %
    Ratio of interest-earning assets to interest-bearing liabilities   123.06 %             127.46 %        
                                   
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Average Balances/Yields
       
      For the Nine Months Ended September 30,
      2024   2023
      Average
    Balance    		   Interest
    and
    Dividends    		   Yield / Cost   Average
    Balance    		   Interest
    and
    Dividends    		   Yield / Cost
      (Dollars in thousands)
    Interest-earnings assets:                      
    Loans $ 7,789,356     $ 286,064       4.91 %   $ 7,725,121     $ 252,026       4.36 %
    Securities   1,618,319       34,105       2.82 %     1,569,999       28,381       2.42 %
    Other interest-earning assets   370,749       17,631       6.35 %     172,151       7,021       5.45 %
    Total interest-earning assets   9,778,424       337,800       4.61 %     9,467,271       287,428       4.06 %
    Non-interest-earning assets   864,036               835,459          
    Total assets $ 10,642,460             $ 10,302,730          
                           
    Interest-bearing liabilities:                      
    Interest-bearing demand $ 1,972,520     $ 41,673       2.82 %   $ 2,244,978     $ 25,465       1.52 %
    Money market accounts   1,235,520       25,349       2.74 %     894,520       15,334       2.29 %
    Savings and club deposits   673,930       3,920       0.78 %     819,804       1,384       0.23 %
    Certificates of deposit   2,550,634       79,498       4.16 %     2,165,778       39,550       2.44 %
    Total interest-bearing deposits   6,432,604       150,440       3.12 %     6,125,080       81,733       1.78 %
    FHLB advances   1,507,045       55,316       4.90 %     1,254,637       43,806       4.67 %
    Notes payable   —       —       — %     30,148       895       3.97 %
    Junior subordinated debentures   7,023       486       9.24 %     7,377       457       8.28 %
    Other borrowings   73       3       5.49 %     —       —       — %
    Total borrowings   1,514,141       55,805       4.92 %     1,292,162       45,158       4.67 %
    Total interest-bearing liabilities   7,946,745     $ 206,245       3.47 %     7,417,242     $ 126,891       2.29 %
                           
    Non-interest-bearing liabilities:                      
    Non-interest-bearing deposits   1,406,666               1,572,497          
    Other non-interest-bearing liabilities   243,848               225,629          
    Total liabilities   9,597,259               9,215,368          
    Total stockholders’ equity   1,045,201               1,087,362          
    Total liabilities and stockholders’ equity $ 10,642,460             $ 10,302,730          
                           
    Net interest income     $ 131,555             $ 160,537      
    Interest rate spread           1.15 %             1.77 %
    Net interest-earning assets $ 1,831,679             $ 2,050,029          
    Net interest margin           1.80 %             2.27 %
    Ratio of interest-earning assets to interest-bearing liabilities   123.05 %             127.64 %        
                                   
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Components of Net Interest Rate Spread and Margin
       
      Average Yields/Costs by Quarter
      September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
    Yield on interest-earning assets:                  
    Loans   5.00 %     4.93 %     4.79 %     4.66 %     4.47 %
    Securities   2.90       2.89       2.65       2.58       2.37  
    Other interest-earning assets   6.72       6.30       6.06       5.64       5.91  
    Total interest-earning assets   4.70 %     4.64 %     4.50 %     4.39 %     4.17 %
                       
    Cost of interest-bearing liabilities:                  
    Total interest-bearing deposits   3.21 %     3.14 %     3.02 %     2.76 %     2.31 %
    Total borrowings   4.87       4.92       4.98       4.96       4.70  
    Total interest-bearing liabilities   3.52 %     3.49 %     3.38 %     3.18 %     2.70 %
                       
    Interest rate spread   1.18 %     1.15 %     1.12 %     1.21 %     1.47 %
    Net interest margin   1.84 %     1.81 %     1.75 %     1.85 %     2.06 %
                       
    Ratio of interest-earning assets to interest-bearing liabilities   123.06 %     123.03 %     123.06 %     125.32 %     127.46 %
                                           
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Selected Financial Highlights
       
      September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
    SELECTED FINANCIAL RATIOS (1):                  
    Return on average assets   0.23 %     0.17 %     (0.04 )%     0.25 %     0.36 %
    Core return on average assets   0.23 %     0.20 %     0.02 %     0.38 %     0.36 %
    Return on average equity   2.32 %     1.77 %     (0.45 )%     2.31 %     3.23 %
    Core return on average equity   2.29 %     2.06 %     0.18 %     3.55 %     3.24 %
    Core return on average tangible equity   2.58 %     2.34 %     0.20 %     3.99 %     3.64 %
    Interest rate spread   1.18 %     1.15 %     1.12 %     1.21 %     1.47 %
    Net interest margin   1.84 %     1.81 %     1.75 %     1.85 %     2.06 %
    Non-interest income to average assets   0.33 %     0.35 %     0.28 %     0.42 %     0.33 %
    Non-interest expense to average assets   1.60 %     1.74 %     1.74 %     1.80 %     1.67 %
    Efficiency ratio   78.95 %     86.83 %     91.96 %     84.82 %     75.12 %
    Core efficiency ratio   79.14 %     85.34 %     88.39 %     76.93 %     75.09 %
    Average interest-earning assets to average interest-bearing liabilities   123.06 %     123.03 %     123.06 %     125.32 %     127.46 %
    Net charge-offs to average outstanding loans   0.14 %     0.03 %     0.26 %     0.01 %     0.09 %
                       
    (1) Ratios are annualized when appropriate.
     
    ASSET QUALITY DATA:  
      September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
      (Dollars in thousands)
                       
    Non-accrual loans $ 28,014     $ 25,281     $ 22,935     $ 12,618     $ 15,150  
    90+ and still accruing   —       —       —       —       —  
    Non-performing loans   28,014       25,281       22,935       12,618       15,150  
    Real estate owned   1,974       1,974       —       —       —  
    Total non-performing assets $ 29,988     $ 27,255     $ 22,935     $ 12,618     $ 15,150  
                       
    Non-performing loans to total gross loans   0.36 %     0.33 %     0.30 %     0.16 %     0.19 %
    Non-performing assets to total assets   0.28 %     0.25 %     0.22 %     0.12 %     0.15 %
    Allowance for credit losses on loans (“ACL”) $ 58,495     $ 57,062     $ 55,401     $ 55,096     $ 54,113  
    ACL to total non-performing loans   208.81 %     225.71 %     241.56 %     436.65 %     357.18 %
    ACL to gross loans   0.75 %     0.73 %     0.71 %     0.70 %     0.69 %
                                           
    LOAN DATA:  
      September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
      (In thousands)
    Real estate loans:          
    One-to-four family $ 2,737,190     $ 2,764,177     $ 2,778,932     $ 2,792,833     $ 2,791,939  
    Multifamily   1,399,000       1,409,316       1,429,369       1,409,187       1,417,233  
    Commercial real estate   2,312,759       2,316,252       2,318,178       2,377,077       2,374,488  
    Construction   510,439       462,880       437,566       443,094       390,940  
    Commercial business loans   586,447       554,768       538,260       533,041       546,750  
    Consumer loans:                  
    Home equity loans and advances   261,041       260,427       260,786       266,632       267,016  
    Other consumer loans   2,877       2,689       2,601       2,801       2,586  
    Total gross loans   7,809,753       7,770,509       7,765,692       7,824,665       7,790,952  
    Purchased credit deteriorated loans   11,795       12,150       14,945       15,089       15,228  
    Net deferred loan costs, fees and purchased premiums and discounts   35,642       36,352       34,992       34,783       34,360  
    Allowance for credit losses   (58,495 )     (57,062 )     (55,401 )     (55,096 )     (54,113 )
    Loans receivable, net $ 7,798,695     $ 7,761,949     $ 7,760,228     $ 7,819,441     $ 7,786,427  
                                           
    CAPITAL RATIOS:      
      September 30,   December 31,
      2024 (1)   2023
    Company:      
    Total capital (to risk-weighted assets)   14.37 %     14.08 %
    Tier 1 capital (to risk-weighted assets)   13.59 %     13.32 %
    Common equity tier 1 capital (to risk-weighted assets)   13.50 %     13.23 %
    Tier 1 capital (to adjusted total assets)   10.16 %     10.04 %
           
    Columbia Bank:      
    Total capital (to risk-weighted assets)   14.44 %     14.02 %
    Tier 1 capital (to risk-weighted assets)   13.61 %     13.22 %
    Common equity tier 1 capital (to risk-weighted assets)   13.61 %     13.22 %
    Tier 1 capital (to adjusted total assets)   9.62 %     9.48 %
           
    Freehold Bank:      
    Total capital (to risk-weighted assets)   25.98 %     22.49 %
    Tier 1 capital (to risk-weighted assets)   25.41 %     21.81 %
    Common equity tier 1 capital (to risk-weighted assets)   25.41 %     21.81 %
    Tier 1 capital (to adjusted total assets)   16.63 %     15.27 %
           
    (1) Estimated ratios at September 30, 2024
           
    Reconciliation of GAAP to Non-GAAP Financial Measures
           
    Book and Tangible Book Value per Share
      September 30,   December 31,
      2024   2023
      (Dollars in thousands)
       
    Total stockholders’ equity $ 1,079,150     $ 1,040,335  
    Less: goodwill   (110,715 )     (110,715 )
    Less: core deposit intangible   (9,496 )     (11,155 )
    Total tangible stockholders’ equity $ 958,939     $ 918,465  
           
    Shares outstanding   104,725,436       104,918,905  
           
    Book value per share $ 10.30     $ 9.92  
    Tangible book value per share $ 9.16     $ 8.75  
                   
    Reconciliation of Core Net Income              
      Three Months Ended
    September 30,    		   Nine Months Ended
    September 30,
      2024   2023
    		   2024
    		   2023
      (In thousands)
                   
    Net income $ 6,185     $ 9,130     $ 9,570     $ 29,517  
    Add: loss on securities transactions, net of tax   —       —       1,130       9,249  
    Less/add: FDIC special assessment, net of tax   (107 )     —       385       —  
    Add: severance expense from reduction in workforce, net of tax   —       —       67       1,390  
    Add: merger-related expenses, net of tax   19       11       691       241  
    Add: litigation expenses, net of tax   —       —       —       262  
    Core net income $ 6,097     $ 9,141     $ 11,843     $ 40,659  
                                   
    Return on Average Assets              
      Three Months Ended
    September 30,    		   Nine Months Ended
    September 30,
      2024   2023   2024   2023
      (Dollars in thousands)
                   
    Net income $ 6,185     $ 9,130     $ 9,570     $ 29,517  
                   
    Average assets $ 10,682,627     $ 10,199,096     $ 10,642,460     $ 10,302,730  
                   
    Return on average assets   0.23 %     0.36 %     0.12 %     0.38 %
                   
    Core net income $ 6,097     $ 9,141     $ 11,843     $ 40,659  
                   
    Core return on average assets   0.23 %     0.36 %     0.15 %     0.53 %
                                   
    Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
                   
    Return on Average Equity              
      Three Months Ended
    September 30,    		   Nine Months Ended
    September 30,
      2024   2023   2024   2023
      (Dollars in thousands)
                   
    Total average stockholders’ equity $ 1,061,252     $ 1,119,870     $ 1,045,201     $ 1,087,362  
    Add: loss on securities transactions, net of tax   —       —       1,130       9,249  
    Less/add: FDIC special assessment, net of tax   (107 )     —       385       —  
    Add: severance expense from reduction in workforce, net of tax   —       —       67       1,390  
    Add: merger-related expenses, net of tax   19       11       691       241  
    Add: litigation expenses, net of tax   —       —       —       262  
    Core average stockholders’ equity $ 1,061,164     $ 1,119,881     $ 1,047,474     $ 1,098,504  
                   
    Return on average equity   2.32 %     3.23 %     1.22 %     3.63 %
                   
    Core return on core average equity   2.29 %     3.24 %     1.51 %     4.95 %
                                   
    Return on Average Tangible Equity        
      Three Months Ended
    September 30,    		   Nine Months Ended
    September 30,
      2024   2023   2024   2023
      (Dollars in thousands)
                   
    Total average stockholders’ equity $ 1,061,252     $ 1,119,870     $ 1,045,201     $ 1,087,362  
    Less: average goodwill   (110,715 )     (110,715 )     (110,715 )     (110,715 )
    Less: average core deposit intangible   (9,842 )     (12,109 )     (10,391 )     (12,989 )
    Total average tangible stockholders’ equity $ 940,695     $ 997,046     $ 924,095     $ 963,658  
                   
    Core return on average tangible equity   2.58 %     3.64 %     1.71 %     5.64 %
                                   
    Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
                   
    Efficiency Ratios              
      Three Months Ended
    September 30,    		   Nine Months Ended
    September 30,
      2024   2023   2024   2023
      (Dollars in thousands)
                   
    Net interest income $ 45,275     $ 48,522     $ 131,555     $ 160,537  
    Non-interest income   8,978       8,602       25,610       16,130  
    Total income $ 54,253     $ 57,124     $ 157,165     $ 176,667  
                   
    Non-interest expense $ 42,834     $ 42,910     $ 134,739     $ 134,418  
                   
    Efficiency ratio   78.95 %     75.12 %     85.73 %     76.09 %
                   
    Non-interest income $ 8,978     $ 8,602     $ 25,610     $ 16,130  
    Add: loss on securities transactions   —       —       1,256       10,847  
    Core non-interest income $ 8,978     $ 8,602     $ 26,866     $ 26,977  
                   
    Non-interest expense $ 42,834     $ 42,910     $ 134,739     $ 134,418  
    Add/less: FDIC special assessment, net   126       —       (439 )     —  
    Less: severance expense from reduction in workforce   —       —       (74 )     (1,605 )
    Less: merger-related expenses   (23 )     (14 )     (737 )     (280 )
    Less: litigation expenses   —       —       —       (317 )
    Core non-interest expense $ 42,937     $ 42,896     $ 133,489     $ 132,216  
                   
    Core efficiency ratio   79.14 %     75.09 %     84.26 %     70.51 %
                                   

    Columbia Financial, Inc.
    Investor Relations Department
    (833) 550-0717

    The MIL Network –

  • MIL-OSI: Independent Bank Corporation Reports 2024 Third Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    Third Quarter Highlights

    Highlights for the third quarter of 2024 include:

    • Increases in net interest income of $0.5 million (or 4.9% annualized) from June 30, 2024;
    • An increase in tangible book value per share of $3.69 (22.3%) over the third quarter of 2023;
    • Net growth in core deposits of $100.1 million (or 8.9% annualized) from June 30, 2024;
    • Net growth in loans of $90.4 million (or 9.3% annualized) from June 30, 2024; and
    • The payment of a 24 cent per share dividend on common stock on August 15, 2024.

    GRAND RAPIDS, Mich., Oct. 24, 2024 (GLOBE NEWSWIRE) — Independent Bank Corporation (NASDAQ: IBCP) reported third quarter 2024 net income of $13.8 million, or $0.65 per diluted share, versus net income of $17.5 million, or $0.83 per diluted share, in the prior-year period.

    William B. (“Brad”) Kessel, the President and Chief Executive Officer of Independent Bank Corporation, commented: “I am proud of our team and very pleased with our third quarter 2024 results, driving organic growth on both sides of the balance sheet. Overall loans increased 9.3% (annualized), while core deposits are up 8.9% (annualized). We were able to generate net interest income growth on both a linked quarter basis and on a year over year quarterly basis. We believe that our expenses continue to be well managed, and we continue to see improved operational scale from strategic investments we have made in recent years. Our credit metrics continue to be excellent, with watch credits and non-performing assets near historic lows. These fundamentals continue to drive good growth in tangible book value per share (22%) compared to the prior year quarter. Based on a robust commercial loan pipeline, the past record of our core group of professionals and the on-going strategic initiative to add talented bankers to our team, we are optimistic about continuing these growth trends for the remainder of the year and into 2025.”

    Significant items impacting comparable third quarter 2024 and 2023 results include the following:

    • Changes in the fair value due to price of capitalized mortgage loan servicing rights (the “MSR Changes”) of  $(4.2) million ($(0.16) per diluted share, after taxes) for the three-month period ended September 30, 2024, as compared to $1.6 million ($0.06 per diluted share, after taxes) for the three-months ended September 30, 2023.

    Operating Results

    The Company’s net interest income totaled $41.9 million during the third quarter of 2024, an increase of $2.4 million, or 6.2% from the year-ago period, and an increase of $0.5 million, or 1.2%, from the second quarter of 2024. The Company’s tax equivalent net interest income as a percent of average interest-earning assets (the “net interest margin”) was 3.37% during the third quarter of 2024, compared to 3.23% in the year-ago period, and 3.40% in the second quarter of 2024. The year-over-year quarterly increase in net interest income was due to an increase in average interest-earning assets and the net interest margin. The increase in net interest income compared to the linked quarter was due to an increase in average interest earning assets that was partially offset by a decrease in the net interest margin. Average interest-earning assets were $4.99 billion in the third quarter of 2024, compared to $4.89 billion in the year ago quarter and $4.89 billion in the second quarter of 2024.

    Non-interest income totaled $9.5 million for the third quarter of 2024, compared to $15.6 million in the comparable prior year period. This change was primarily due to variances in mortgage banking related revenues.

    Net gains on mortgage loans in the third quarters of 2024 and 2023, were approximately $2.2 million and $2.1 million, respectively. The comparative quarterly increase in net gains on mortgage loans was primarily due to an increase in both gain on sale margin on mortgage loans sold and a increase in the volume of mortgage loans sold.

    Mortgage loan servicing, net, generated income (expense) of $(3.1) million and $2.7 million in the third quarters of 2024 and 2023, respectively. The significant variance in mortgage loan servicing, net is primarily due to changes in the fair value of capitalized mortgage loan servicing rights associated with changes in interest rates and the associated expected future prepayment levels and expected float rates. Mortgage loan servicing, net activity is summarized in the following table:

      Three months ended   Nine months ended
      9/30/2024   9/30/2023   9/30/2024   9/30/2023
      (In thousands)
    Mortgage loan servicing, net:              
    Revenue, net $ 2,248     $ 2,197     $ 6,681     $ 6,612  
    Fair value change due to price   (4,155 )     1,556       (1,979 )     3,364  
    Fair value change due to pay-downs   (1,223 )     (1,085 )     (3,016 )     (2,908 )
    Total $ (3,130 )   $ 2,668     $ 1,686     $ 7,068  
     

    Non-interest expenses totaled $32.6 million in the third quarter of 2024, compared to $32.0 million in the year-ago period.

    The Company recorded income tax expense of $3.5 million in the third quarter of 2024. This compares to an income tax expense of $4.1 million in the third quarter of 2023. The changes in income tax expense principally reflect changes in pre-tax earnings in 2024 relative to 2023.

    Asset Quality

    A breakdown of non-performing loans by loan type is as follows:

      9/30/2024   12/31/2023   9/30/2023
    Loan Type (Dollars in thousands)
    Commercial $ 59     $ 28     $ 31  
    Mortgage   6,525       6,425       6,137  
    Installment   666       970       801  
    Sub total   7,250       7,423       6,969  
    Less – government guaranteed loans   2,102       2,191       2,254  
    Total non-performing loans $ 5,148     $ 5,232     $ 4,715  
    Ratio of non-performing loans to total portfolio loans   0.13 %     0.14 %     0.13 %
    Ratio of non-performing assets to total assets   0.11 %     0.11 %     0.10 %
    Ratio of allowance for credit losses to total non-performing loans   1115.85 %     1044.69 %     1176.99 %
                           

    The provision for credit losses was an expense of $1.49 million and $1.35 million in the third quarters of 2024 and 2023, respectively. We recorded loan net charge offs (recoveries) of $0.31 million and $(0.18) million in the third quarters of 2024 and 2023, respectively. At September 30, 2024, the allowance for credit losses for loans totaled $57.4 million, or 1.46% of total portfolio loans compared to $54.7 million, or 1.44% of total portfolio loans at December 31, 2023.

    Balance Sheet, Capital and Liquidity

    Total assets were $5.26 billion at September 30, 2024, a decrease of $4.5 million from December 31, 2023. Loans, excluding loans held for sale, were $3.94 billion at September 30, 2024, compared to $3.79 billion at December 31, 2023.  Deposits totaled $4.63 billion at September 30, 2024, an increase of $4.0 million from December 31, 2023. This increase is primarily due to increases in savings and interest-bearing checking, reciprocal and time deposits that were partially offset by a decrease in non-interest bearings deposits and brokered time deposits.

    Cash and cash equivalents totaled $121.6 million at September 30, 2024, versus $169.8 million at December 31, 2023. Securities available for sale (“AFS”) totaled $589.0 million at September 30, 2024, versus $679.4 million at December 31, 2023.

    Total shareholders’ equity was $452.4 million at September 30, 2024, or 8.60% of total assets compared to $404.4 million or 7.68% at December 31, 2023. Tangible common equity totaled $422.5 million at September 30, 2024, or $20.22 per share compared to $374.1 million or $17.96 per share at December 31, 2023. The increase in shareholder equity as well as tangible common equity are primarily the result of earnings retention and a decrease in accumulated other comprehensive loss.

    The Company’s wholly owned subsidiary, Independent Bank, remains significantly above “well capitalized” for regulatory purposes with the following ratios:

    Regulatory Capital Ratios 9/30/2024   12/31/2023   Well
    Capitalized
    Minimum
               
    Tier 1 capital to average total assets   9.36 %     8.80 %     5.00 %
    Tier 1 common equity  to risk-weighted assets   11.74 %     11.21 %     6.50 %
    Tier 1 capital to risk-weighted assets   11.74 %     11.21 %     8.00 %
    Total capital to risk-weighted assets   13.00 %     12.46 %     10.00 %
                           

    At September 30, 2024, in addition to liquidity available from our normal operating, funding, and investing activities, we had unused credit lines with the FHLB and FRB of approximately $1.11 billion and $471.7 million, respectively. We also had approximately $771.3 million in fair value of unpledged securities AFS and HTM at September 30, 2024 which could be pledged for an estimated additional borrowing capacity at the FHLB and FRB of approximately $718.0 million.

    Share Repurchase Plan

    On December 19, 2023, the Board of Directors of the Company authorized the 2024 share repurchase plan. Under the terms of the 2024 share repurchase plan, the Company is authorized to purchase up to 1,100,000 shares, or approximately 5% of its then outstanding common stock. The repurchase plan is authorized to last through December 31, 2024. The Company did not repurchase any shares of common stock during the first nine months of 2024.

    Earnings Conference Call

    Brad Kessel, President and CEO, Gavin Mohr, CFO and Joel Rahn, EVP – Commercial Banking will review the quarterly results in a conference call for investors and analysts beginning at 11:00 am ET on Thursday, October 24, 2024.

    To participate in the live conference call, please dial 1-833-470-1428 (Access Code # 957797). Also, the conference call will be accessible through an audio webcast with user-controlled slides via the following site/URL: https://events.q4inc.com/attendee/824908063.

    A playback of the call can be accessed by dialing 1-866-813-9403 (Access Code # 159381). The replay will be available through October 31, 2024.

    About Independent Bank Corporation

    Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with total assets of approximately $5.3 billion. Founded as First National Bank of Ionia in 1864, Independent Bank Corporation operates a branch network across Michigan’s Lower Peninsula through one state-chartered bank subsidiary. This subsidiary (Independent Bank) provides a full range of financial services, including commercial banking, mortgage lending, consumer banking, investments and insurance. Independent Bank Corporation is committed to providing exceptional personal service and value to its customers, stockholders and the communities it serves.

    For more information, please visit our Web site at: IndependentBank.com.

    Forward-Looking Statements
    This presentation contains forward-looking statements, which are any statements or information that are not historical facts. These forward-looking statements include statements about our anticipated future revenue and expenses and our future plans and prospects.

    Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. For example, deterioration in general business and economic conditions or turbulence in domestic or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding to us, lead to a tightening of credit, and increase stock price volatility. Our results could also be adversely affected by changes in interest rates; increases in unemployment rates; deterioration in the credit quality of our loan portfolios or in the value of the collateral securing those loans; deterioration in the value of our investment securities; legal and regulatory developments; changes in customer behavior and preferences; breaches in data security; and management’s ability to effectively manage the multitude of risks facing our business. Key risk factors that could affect our future results are described in more detail in our Annual Report on Form 10-K for the year ended December 31, 2023 and the other reports we file with the SEC, including under the heading “Risk Factors.” Investors should not place undue reliance on forward-looking statements as a prediction of our future results.

    Any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.

    INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
    Consolidated Statements of Financial Condition
     
      September 30, 2024   December 31, 2023
      (Unaudited)
      (In thousands, except share
    amounts)
    Assets      
    Cash and due from banks $ 61,503     $ 68,208  
    Interest bearing deposits   60,057       101,573  
    Cash and Cash Equivalents   121,560       169,781  
    Securities available for sale   588,950       679,350  
    Securities held to maturity (fair value of $314,638 at September 30, 2024 and $318,606 at December 31, 2023)   343,362       353,988  
    Federal Home Loan Bank and Federal Reserve Bank stock, at cost   16,099       16,821  
    Loans held for sale, carried at fair value   14,029       12,063  
    Loans      
    Commercial   1,825,247       1,679,731  
    Mortgage   1,511,400       1,485,872  
    Installment   605,640       625,298  
    Total Loans   3,942,287       3,790,901  
    Allowance for credit losses   (57,444 )     (54,658 )
    Net Loans   3,884,843       3,736,243  
    Other real estate and repossessed assets, net   781       569  
    Property and equipment, net   35,250       35,523  
    Bank-owned life insurance   54,017       54,341  
    Capitalized mortgage loan servicing rights, carried at fair value   40,204       42,243  
    Other intangibles   1,617       2,004  
    Goodwill   28,300       28,300  
    Accrued income and other assets   130,256       132,500  
    Total Assets $ 5,259,268     $ 5,263,726  
    Liabilities and Shareholders’ Equity      
    Deposits      
    Non-interest bearing $ 1,023,739     $ 1,076,093  
    Savings and interest-bearing checking   1,947,571       1,905,701  
    Reciprocal   995,469       832,020  
    Time   620,446       524,325  
    Brokered time   39,650       284,740  
    Total Deposits   4,626,875       4,622,879  
    Other borrowings   —       50,026  
    Subordinated debt   39,567       39,510  
    Subordinated debentures   39,779       39,728  
    Accrued expenses and other liabilities   100,678       107,134  
    Total Liabilities   4,806,899       4,859,277  
           
    Shareholders’ Equity      
    Preferred stock, no par value, 200,000 shares authorized; none issued or outstanding   —       —  
    Common stock, no par value, 500,000,000 shares authorized; issued and outstanding: 20,893,800 shares at September 30, 2024 and 20,835,633 shares at December 31, 2023   318,216       317,483  
    Retained earnings   192,405       159,108  
    Accumulated other comprehensive loss   (58,252 )     (72,142 )
    Total Shareholders’ Equity   452,369       404,449  
    Total Liabilities and Shareholders’ Equity $ 5,259,268     $ 5,263,726  
    INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
    Consolidated Statements of Operations
     
      Three Months Ended   Nine Months Ended
      September 30,   June 30,   September 30,   September 30,
      2024   2024   2023   2024   2023
      (Unaudited)
      (In thousands, except per share amounts)
    Interest Income                                      
    Interest and fees on loans $ 58,410     $ 56,786     $ 51,419     $ 170,239     $ 143,392  
    Interest on securities                  
    Taxable   4,502       4,713       5,865       14,466       17,668  
    Tax-exempt   3,404       3,400       3,409       10,195       9,775  
    Other investments   2,018       1,439       1,739       4,898       3,481  
    Total Interest Income   68,334       66,338       62,432       199,798       174,316  
    Interest Expense                  
    Deposits   24,462       22,876       20,743       70,148       51,964  
    Other borrowings and subordinated debt and debentures   2,018       2,116       2,262       6,253       6,134  
    Total Interest Expense   26,480       24,992       23,005       76,401       58,098  
    Net Interest Income   41,854       41,346       39,427       123,397       116,218  
    Provision for credit losses   1,488       19       1,350       2,251       6,827  
    Net Interest Income After Provision for Credit Losses   40,366       41,327       38,077       121,146       109,391  
    Non-interest Income                  
    Interchange income   4,146       3,401       4,100       10,698       10,660  
    Service charges on deposit accounts   3,085       2,937       3,309       8,894       9,300  
    Net gains (losses) on assets                  
    Mortgage loans   2,177       1,333       2,099       4,874       5,475  
    Equity securities at fair value   (8 )     2,693       —       2,685       —  
    Securities available for sale   (145 )     —       —       (414 )     (222 )
    Mortgage loan servicing, net   (3,130 )     2,091       2,668       1,686       7,068  
    Other   3,383       2,717       3,435       8,818       9,298  
    Total Non-interest Income   9,508       15,172       15,611       37,241       41,579  
    Non-interest Expense                  
    Compensation and employee benefits   20,048       21,251       19,975       62,069       59,916  
    Data processing   3,379       3,257       3,071       9,891       8,953  
    Occupancy, net   1,893       1,886       1,971       5,853       5,975  
    Interchange expense   1,149       1,127       1,119       3,373       3,222  
    Furniture, fixtures and equipment   932       948       927       2,834       2,782  
    FDIC deposit insurance   664       695       677       2,141       2,209  
    Loan and collection   657       699       520       1,868       1,718  
    Advertising   581       788       360       1,860       1,286  
    Legal and professional   687       544       543       1,717       1,623  
    Communications   519       499       568       1,633       1,871  
    Costs (recoveries) related to unfunded lending commitments   113       (137 )     451       (676 )     76  
    Other   1,961       1,776       1,854       5,546       5,610  
    Total Non-interest Expense   32,583       33,333       32,036       98,109       95,241  
    Income Before Income Tax   17,291       23,166       21,652       60,278       55,729  
    Income tax expense   3,481       4,638       4,109       11,949       10,405  
    Net Income $ 13,810     $ 18,528     $ 17,543     $ 48,329     $ 45,324  
    Net Income Per Common Share                  
    Basic $ 0.66     $ 0.89     $ 0.84     $ 2.31     $ 2.16  
    Diluted $ 0.65     $ 0.88     $ 0.83     $ 2.29     $ 2.14  
    INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
    Selected Financial Data
     
      September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
      (unaudited)
      (Dollars in thousands except per share data)
    Three Months Ended                  
    Net interest income $ 41,854     $ 41,346     $ 40,197     $ 40,111     $ 39,427  
    Provision for credit losses   1,488       19       744       (617 )     1,350  
    Non-interest income   9,508       15,172       12,561       9,097       15,611  
    Non-interest expense   32,583       33,333       32,193       31,878       32,036  
    Income before income tax   17,291       23,166       19,821       17,947       21,652  
    Income tax expense   3,481       4,638       3,830       4,204       4,109  
    Net income $ 13,810     $ 18,528     $ 15,991     $ 13,743     $ 17,543  
                       
    Basic earnings per share $ 0.66     $ 0.89     $ 0.77     $ 0.66     $ 0.84  
    Diluted earnings per share   0.65       0.88       0.76       0.65       0.83  
    Cash dividend per share   0.24       0.24       0.24       0.23       0.23  
                       
    Average shares outstanding   20,896,019       20,901,741       20,877,067       20,840,680       20,922,431  
    Average diluted shares outstanding   21,115,273       21,105,387       21,079,607       21,049,030       21,114,445  
                       
    Performance Ratios                  
    Return on average assets   1.04 %     1.44 %     1.24 %     1.04 %     1.34 %
    Return on average equity   12.54       17.98       15.95       14.36       18.68  
    Efficiency ratio (1)   62.82       61.49       60.26       64.27       57.52  
                       
    As a Percent of Average Interest-Earning Assets (1)                
    Interest income   5.48 %     5.45 %     5.34 %     5.29 %     5.10 %
    Interest expense   2.11       2.05       2.04       2.03       1.87  
    Net interest income   3.37       3.40       3.30       3.26       3.23  
                       
    Average Balances                  
    Loans $ 3,909,954     $ 3,849,199     $ 3,810,526     $ 3,764,752     $ 3,694,534  
    Securities   933,750       944,435       999,140       1,027,240       1,071,211  
    Total earning assets   4,985,842       4,893,367       4,910,669       4,928,697       4,892,208  
    Total assets   5,275,623       5,181,317       5,201,452       5,233,666       5,192,114  
    Deposits   4,616,119       4,531,917       4,561,645       4,612,797       4,577,796  
    Interest bearing liabilities   3,689,684       3,611,972       3,627,446       3,635,771       3,554,179  
    Shareholders’ equity   438,077       414,549       403,225       379,614       372,667  

    (1) Presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.

    INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
    Selected Financial Data (continued)
     
      September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
      (unaudited)
      (Dollars in thousands except per share data)
    End of Period                  
    Capital                  
    Tangible common equity ratio   8.08 %     7.63 %     7.41 %     7.15 %     6.67 %
    Tangible common equity ratio excluding accumulated other comprehensive loss   8.99       8.76       8.57       8.31       8.20  
    Average equity to average assets   8.30       8.00       7.75       7.25       7.18  
    Total capital to risk-weighted assets (2)   14.25       14.21       13.85       13.71       13.58  
    Tier 1 capital to risk-weighted assets (2)   12.06       12.01       11.65       11.50       11.37  
    Common equity tier 1 capital to risk-weighted assets (2)   11.16       11.09       10.73       10.58       10.44  
    Tier 1 capital to average assets (2)   9.63       9.59       9.29       9.03       8.94  
    Common shareholders’ equity per share of common stock $ 21.65     $ 20.60     $ 19.88     $ 19.41     $ 17.99  
    Tangible common equity per share of common stock   20.22       19.16       18.44       17.96       16.53  
    Total shares outstanding   20,893,800       20,899,358       20,903,677       20,835,633       20,850,455  
                       
    Selected Balances                  
    Loans $ 3,942,287     $ 3,851,889     $ 3,839,965     $ 3,790,901     $ 3,741,486  
    Securities   932,312       936,194       963,577       1,033,338       1,043,540  
    Total earning assets   4,964,784       4,979,555       4,949,496       4,954,696       4,884,720  
    Total assets   5,259,268       5,277,500       5,231,255       5,263,726       5,200,018  
    Deposits   4,626,875       4,614,328       4,582,414       4,622,879       4,585,612  
    Interest bearing liabilities   3,682,482       3,694,025       3,677,060       3,676,050       3,573,187  
    Shareholders’ equity   452,369       430,459       415,570       404,449       374,998  

    (2) September 30, 2024 are Preliminary.

     
    Reconciliation of Non-GAAP Financial Measures
    Independent Bank Corporation

    Independent Bank Corporation believes non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts to evaluate the adequacy of common equity and performance trends.  Tangible common equity is used by the Company to measure the quality of capital.

    Reconciliation of Non-GAAP Financial Measures

      Three Months Ended
    September 30,    		   Nine Months Ended
    September 30,
        2024       2023       2024       2023  
      (Dollars in thousands)
    Net Interest Margin, Fully Taxable Equivalent (“FTE”)              
                   
    Net interest income $ 41,854     $ 39,427     $ 123,397     $ 116,218  
    Add:  taxable equivalent adjustment   158       202       513       722  
    Net interest income – taxable equivalent $ 42,012     $ 39,629     $ 123,910     $ 116,940  
    Net interest margin (GAAP) (1)   3.35 %     3.21 %     3.34 %     3.25 %
    Net interest margin (FTE) (1)   3.37 %     3.23 %     3.35 %     3.26 %

    (1) Annualized.

    Tangible Common Equity Ratio

      September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
      (Dollars in thousands)
    Common shareholders’ equity $ 452,369     $ 430,459     $ 415,570     $ 404,449     $ 374,998  
    Less:                  
    Goodwill   28,300       28,300       28,300       28,300       28,300  
    Other intangibles   1,617       1,746       1,875       2,004       2,141  
    Tangible common equity   422,452       400,413       385,395       374,145       344,557  
    Addition:                  
    Accumulated other comprehensive loss for regulatory purposes   52,454       65,030       65,831       66,344       86,507  
    Tangible common equity excluding other comprehensive loss adjustments $ 474,906     $ 465,443     $ 451,226     $ 440,489     $ 431,064  
                       
    Total assets $ 5,259,268     $ 5,277,500     $ 5,231,255     $ 5,263,726     $ 5,200,018  
    Less:                  
    Goodwill   28,300       28,300       28,300       28,300       28,300  
    Other intangibles   1,617       1,746       1,875       2,004       2,141  
    Tangible assets   5,229,351       5,247,454       5,201,080       5,233,422       5,169,577  
    Addition:                  
    Net unrealized losses on available for sale securities and derivatives, net of tax   52,454       65,030       65,831       66,344       86,507  
    Tangible assets excluding other comprehensive loss adjustments $ 5,281,805     $ 5,312,484     $ 5,266,911     $ 5,299,766     $ 5,256,084  
                       
    Common equity ratio   8.60 %     8.16 %     7.94 %     7.68 %     7.21 %
    Tangible common equity ratio   8.08 %     7.63 %     7.41 %     7.15 %     6.67 %
    Tangible common equity ratio excluding other comprehensive loss   8.99 %     8.76 %     8.57 %     8.31 %     8.20 %
                       
    Tangible Common Equity per Share of Common Stock:
                       
    Common shareholders’ equity $ 452,369     $ 430,459     $ 415,570     $ 404,449     $ 374,998  
    Tangible common equity $ 422,452     $ 400,413     $ 385,395     $ 374,145     $ 344,557  
    Shares of common stock outstanding (in thousands)   20,894       20,899       20,904       20,836       20,850  
                       
    Common shareholders’ equity per share of common stock $ 21.65     $ 20.60     $ 19.88     $ 19.41     $ 17.99  
    Tangible common equity per share of common stock $ 20.22     $ 19.16     $ 18.44     $ 17.96     $ 16.53  
     

    The tangible common equity ratio removes the effect of goodwill and other intangible assets from capital and total assets.  Tangible common equity per share of common stock removes the effect of goodwill and other intangible assets from common shareholders’ equity per share of common stock.

    Contact: William B. Kessel, President and CEO, 616.447.3933
      Gavin A. Mohr, Chief Financial Officer, 616.447.3929  

    The MIL Network –

  • MIL-OSI: Hanmi Financial Declares Cash Dividend of $0.25 per share

    Source: GlobeNewswire (MIL-OSI)

    LOS ANGELES, Oct. 24, 2024 (GLOBE NEWSWIRE) — Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today announced that its Board of Directors declared a cash dividend on its common stock for the 2024 fourth quarter of $0.25 per share. The dividend will be paid on November 20, 2024, to stockholders of record as of the close of business on November 4, 2024.

    About Hanmi Financial Corporation
    Headquartered in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multi-ethnic communities through its network of 32 full-service branches and eight loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington and Georgia. Hanmi Bank specializes in real estate, commercial, SBA and trade finance lending to small and middle market businesses. Additional information is available at www.hanmi.com.

    Forward-Looking Statements

    This press release contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are “forward–looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about our anticipated future operating and financial performance, financial position and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our capital and strategic plans, and other similar forecasts and statements of expectation and statements of assumption underlying any of the foregoing. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that our forward-looking statements to be reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

    Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statements. These factors include the following:

    • a failure to maintain adequate levels of capital and liquidity to support our operations;
    • general economic and business conditions internationally, nationally and in those areas in which we operate, including any potential recessionary conditions;
    • volatility and deterioration in the credit and equity markets;
    • changes in consumer spending, borrowing and savings habits;
    • availability of capital from private and government sources;
    • demographic changes;
    • competition for loans and deposits and failure to attract or retain loans and deposits;
    • inflation and fluctuations in interest rates that reduce our margins and yields, the fair value of financial instruments, the level of loan originations or prepayments on loans we have made and make, the level of loan sales and the cost we pay to retain and attract deposits and secure other types of funding;
    • our ability to enter new markets successfully and capitalize on growth opportunities;
    • the current or anticipated impact of military conflict, terrorism or other geopolitical events;
    • the effect of potential future supervisory action against us or Hanmi Bank and our ability to address any issues raised in our regulatory exams;
    • risks of natural disasters;
    • legal proceedings and litigation brought against us;
    • a failure in or breach of our operational or security systems or infrastructure, including cyberattacks;
    • the failure to maintain current technologies;
    • risks associated with Small Business Administration loans;
    • failure to attract or retain key employees;
    • our ability to access cost-effective funding;
    • changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio;
    • fluctuations in real estate values;
    • changes in accounting policies and practices;
    • changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums and changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;
    • the ability of Hanmi Bank to make distributions to Hanmi Financial Corporation, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial tests;
    • strategic transactions we may enter into;
    • the adequacy of and changes in the methodology for computing our allowance for credit losses;
    • our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses;
    • changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements;
    • our ability to control expenses; and
    • cyber security and fraud risks against our information technology and those of our third-party providers and vendors.

    In addition, we set forth certain risks in our reports filed with the U.S. Securities and Exchange Commission, including, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K that we will file hereafter, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law.

    Investor Contacts:
    Romolo (Ron) Santarosa
    Senior Executive Vice President & Chief Financial Officer
    213-427-5636

    Lisa Fortuna
    Investor Relations
    Financial Profiles, Inc.
    lfortuna@finprofiles.com
    310-622-8251

    Source: Hanmi Bank

    The MIL Network –

  • MIL-OSI: NANO Nuclear Energy Announces Pricing of Upsized $36 Million Underwritten Offering

    Source: GlobeNewswire (MIL-OSI)

    New York, N.Y., Oct. 24, 2024 (GLOBE NEWSWIRE) — NANO Nuclear Energy Inc. (NASDAQ: NNE) (“NANO Nuclear”), a vertically integrated advanced nuclear energy and technology company developing portable clean nuclear energy solutions, today announced that it has priced an upsized firm commitment, registered underwritten public offering of 2,117,646 shares of common stock and common stock purchase warrants to purchase 1,058,823 shares of common stock.

    Each share and associated warrant is being sold at a public offering price of $17.00, for gross proceeds of approximately $36 million, before deducting underwriting discounts and offering expenses. In addition, NANO Nuclear has granted the underwriter a 30-day overallotment option to purchase up to an additional 317,646 shares common stock and/or common stock purchase warrants to purchase 158,823 shares of common stock at the public offering price for gross proceeds of up to $5.4 million, less underwriting discounts and expenses.

    While the shares and associated warrants were marketed as a unit, such units have no stand-alone rights and will not be certificated or issued as stand-alone securities.

    The warrants are exercisable immediately, have a term of five years, and have an exercise price of $17.00 per share. The warrants will not trade on any market.

    The Benchmark Company, LLC is acting as sole book-running manager for the offering.

    NANO Nuclear intends to use the net proceeds from this offering for (i) research and development of its products and technologies, including its ‘ZEUS’ and ‘ODIN’ microreactors and nuclear fuel transportation design optimization, fuel facility investigations and development, test work and scoping studies, and other technology research and development; (ii) marketing, promotion and business development activities; and (iii) regulatory compliance, intellectual property protection, hiring additional employees, retaining additional contractors and building out NANO Nuclear’s new Nuclear Technology Headquarters in Oak Ridge, Tennessee. NANO Nuclear may also use a portion of the net proceeds to acquire, license and invest in complementary products, technologies, or additional businesses, although NANO Nuclear currently has no agreements or commitments with respect to any such transaction.

    The offering is expected to close on or about October 25, 2024, subject to the satisfaction of customary closing conditions.

    Registration statements relating to these securities were previously filed with the U.S. Securities and Exchange Commission (“SEC”) and have become effective. The offering is being made only by means of a prospectus. Copies of the final prospectus, when available, may be obtained from The Benchmark Company, LLC, 150 East 58th St., 17th Floor, New York, NY 10155, by telephone: (212) 312-6700, or by email at Prospectus@benchmarkcompany.com.

    This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these 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 any such state or jurisdiction.

    About NANO Nuclear Energy Inc.

    NANO Nuclear Energy Inc. (NASDAQ: NNE) is an advanced technology-driven nuclear energy company seeking to become a commercially focused, diversified, and vertically integrated company across four business lines: (i) cutting edge portable microreactor technology, (ii) nuclear fuel fabrication, (iii) nuclear fuel transportation and (iv) nuclear industry consulting services. NANO Nuclear believes it is the first portable nuclear microreactor company to be listed publicly in the U.S.

    Led by a world-class nuclear engineering team, NANO Nuclear’s products in technical development are “ZEUS”, a solid core battery reactor, and “ODIN”, a low-pressure coolant reactor, each representing advanced developments in clean energy solutions that are portable, on-demand capable, advanced nuclear microreactors.

    Advanced Fuel Transportation Inc. (AFT), a NANO Nuclear subsidiary, is led by former executives from the largest transportation company in the world aiming to build a North American transportation company that will provide commercial quantities of HALEU fuel to small modular reactors, microreactor companies, national laboratories, military, and DOE programs. Through NANO Nuclear, AFT is the exclusive licensee of a patented high-capacity HALEU fuel transportation basket developed by three major U.S. national nuclear laboratories and funded by the Department of Energy. Assuming development and commercialization, AFT is expected to form part of the only vertically integrated nuclear fuel business of its kind in North America.

    HALEU Energy Fuel Inc. (HEF), a NANO Nuclear subsidiary, is focusing on the future development of a domestic source for a High-Assay, Low-Enriched Uranium (HALEU) fuel fabrication pipeline for NANO Nuclear’s own microreactors as well as the broader advanced nuclear reactor industry.

    NANO Nuclear Space Inc. (NNS), a NANO Nuclear subsidiary, is exploring the potential commercial applications of NANO Nuclear’s developing micronuclear reactor technology in space. NNS is focusing on applications such as power systems for extraterrestrial projects and human sustaining environments, and potentially propulsion technology for long haul space missions. NNS’ initial focus will be on cis-lunar applications, referring to uses in the space region extending from Earth to the area surrounding the Moon’s surface.

    For further information, please contact:

    Email: IR@NANONuclearEnergy.com
    Business Tel: (212) 634-9206

    Cautionary Note Regarding Forward Looking Statements

    This news release and statements of NANO Nuclear’s management in connection with this news release or related events contain or may contain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements mean statements (including statements related to the public offering, including the proposed use of proceeds from such offering, as described herein) related to future events, which may impact our expected future business and financial performance, and often contain words such as “seek,” “expects”, “anticipates”, “intends”, “plans”, “believes”, “potential”, “will”, “should”, “could”, “would” or “may” and other words of similar meaning. These forward-looking statements are based on information available to us as of the date of this news release and represent management’s current views and assumptions. Forward-looking statements are not guarantees of future performance, events or results and involve significant known and unknown risks, uncertainties and other factors, some of which may be beyond our control. Readers are cautioned that actual results may differ materially and adversely from the results implied in forward-looking statements. For NANO Nuclear, particular risks and uncertainties that could cause our actual future results to differ materially from those expressed in our forward-looking statements include but are not limited to the following: (i) risks related to our U.S. Department of Energy (“DOE”) or related state nuclear fuel licensing submissions, (ii) risks related the development of new or advanced technology, including difficulties with design and testing, cost overruns, regulatory delays and the development of competitive technology, (iii) our ability to obtain contracts and funding to be able to continue operations, (iv) risks related to uncertainty regarding our ability to technologically develop and commercially deploy a competitive advanced nuclear reactor or other technology in the timelines we anticipate, if ever, (v) risks related to the impact of government regulation and policies including by the DOE and the U.S. Nuclear Regulatory Commission, including those associated with the recently enacted ADVANCE Act, and (vi) similar risks and uncertainties associated with the business of a start-up business operating a highly regulated industry. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. These factors may not constitute all of the factors that could cause actual results to differ from those discussed in any forward-looking statement, and the Company therefore encourages investors to review other factors that may affect future results in the Company’s filings with the SEC, which are available for review at www.sec.gov and at https://ir.nanonuclearenergy.com/financial-information/sec-filings. Readers are cautioned not to place undue reliance on forward-looking statements, which apply only as of the date of this news release, and forward-looking statements should not be relied upon as a predictor of actual results. We do not undertake to update our forward-looking statements to reflect events or circumstances that may arise after the date of this news release, except as required by law.

    Attachment

    The MIL Network –

  • MIL-OSI: Equipment Leasing and Finance Association CapEx Finance Index: September 2024

    Source: GlobeNewswire (MIL-OSI)

    ********************************************************************************************************
    Note to readers: ELFA has updated the name of the Monthly Leasing and Finance Index (MLFI-25) to the CapEx Finance Index (CFI) to better reflect what it measures and how it impacts the broader U.S. economy.
    ********************************************************************************************************

    WASHINGTON, Oct. 24, 2024 (GLOBE NEWSWIRE) —

    Demand for equipment picked up. New business volume grew by $10.0 billion from August to September, a monthly increase of 2.2% before rounding. Growth in business volume has been uneven in 2024 but continues to hover around historic highs. The September release suggests that equipment investment continued to expand at a healthy pace at the end of the third quarter.  

    Bank lending drove new business growth. The sub-index for business volume at banks grew by 10.9% from August to September, which was more than enough to offset the contraction in activity at captives and independents, which declined by 2.3% and 9.8%, respectively. The figure below shows that bank activity has lagged other sources over the last few years, but the latest data suggests that banks may be easing back into the lending and leasing market.

    Lenders continue to add headcount. The 12-month change in employment was just over 1.0%, slightly slowing from the 1.2% pace recorded in August. Employment has been a source of strength this year, following nearly five years of persistent declines in headcount.

    Credit approvals remained steady. The percentage of credit applications approved ticked down 0.7 percentage points to 75.6%. The approval rate has been hovering around 75% for most of 2024.

    Lender balance sheets improved for a second consecutive month. The percentage of credit lines over 30 days past due and charge-offs declined. Both have been trending up over the last two years as borrowing conditions tightened due to the rapid increase in interest rates.

    Industry Confidence
    The Monthly Confidence Index from ELFA’s affiliate, the Equipment Leasing & Finance Foundation, is 61.8 in October, steady with the September index of 61.9, which was the highest level since January 2022.

    Industry Voices

    “Our latest CapEx Finance Survey showed that equipment demand continued to defy high interest rates in September. The uptick in bank lending was particularly encouraging and is something I will be watching closely as we approach the end of the year. I wouldn’t be surprised if the next few surveys show a cooling in lending volumes as election uncertainty peaks and some businesses wait for rates to drop further. That said, balance sheets continued to improve, and the percentage of approved new credit applications remained healthy, signs that lenders and borrowers are in a great position to weather any gusts that might come along in the fourth quarter.”
    ELFA President and CEO, Leigh Lytle

    “A healthy increase in YOY business volume, especially in August and September, validates our 12-month increase in headcount as we continue strengthening our value proposition for all of CEFI’s stakeholders. A decreasing interest rate environment driving increased business volume and net interest margin will enhance bottom-line returns for CEFI and the industry until competitors become more aggressive.” Ricardo E. Rios, CFA, CLFP, President & COO, Commercial Equipment Finance, Inc (CEFI)

    About ELFA’s CFI
    The CFI is the only near-real-time index that reflects capex, or the volume of commercial equipment financed in the U.S. It is released monthly from Washington, D.C., one day before the U.S. Department of Commerce’s durable goods report. This financial indicator complements reports like the Institute for Supply Management Index, providing a comprehensive view of productive assets in the U.S. economy—equipment produced, acquired and financed. The CFI consists of two years of business activity data from 25 participating companies. For more details, including methodology and participants, visit www.elfaonline.org/CFI.

    About ELFA
    The Equipment Leasing and Finance Association (ELFA) represents financial services companies and manufacturers in the $1 trillion U.S. equipment finance sector. ELFA’s 575 member companies provide essential financing that helps businesses acquire the equipment they need to operate and grow. Learn how equipment finance contributes to businesses’ success, U.S. economic growth, manufacturing and jobs at http://www.elfaonline.org.

    Media/Press Contact: Amy Vogt, Vice President, Communications and Marketing, ELFA, avogt@elfaonline.org

    Photos accompanying this announcement are available at:
    https://www.globenewswire.com/NewsRoom/AttachmentNg/cee789e6-c777-4190-9b5d-4361b6712379

    https://www.globenewswire.com/NewsRoom/AttachmentNg/721cf1e0-33c3-4767-882b-bceb720b01b1

    The MIL Network –

  • MIL-OSI: CareCloud To Announce Third Quarter 2024 Results on November 12, 2024

    Source: GlobeNewswire (MIL-OSI)

    SOMERSET, N.J., Oct. 24, 2024 (GLOBE NEWSWIRE) — CareCloud, Inc. (Nasdaq: CCLD, CCLDO, CCLDP), a leader in healthcare technology and generative AI solutions for medical practices and health systems nationwide, will release its financial results for the quarter ended September 30, 2024 before the market opens on Tuesday, November 12, 2024. The Company will follow with a conference call for investors at 8:30 a.m. Eastern Time.

    The live webcast of the conference call and related presentation slides can be accessed at ir.carecloud.com/events. An audio-only option is available by dialing 201-389-0920 and referencing “CareCloud Third Quarter 2024 Earnings Call.” Investors who opt for audio-only will need to download the related slides at ir.carecloud.com/events.

    A replay of the conference call and related presentation slides will be available approximately one hour after conclusion of the call at the same link. An audio-only option can also be accessed by dialing 412-317-6671 and providing the access code 13749163.

    About CareCloud

    CareCloud (Nasdaq: CCLD, CCLDP, CCLDO) brings disciplined innovation and generative AI solutions 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.

    Follow CareCloud on LinkedIn, X and Facebook.

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

    SOURCE CareCloud

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

    Investor Contact:
    Stephen Snyder
    President
    CareCloud, Inc.
    ir@carecloud.com

    The MIL Network –

  • MIL-OSI: authID to Report Third Quarter 2024 Financial Results on November 7, 2024

    Source: GlobeNewswire (MIL-OSI)

    DENVER, Oct. 24, 2024 (GLOBE NEWSWIRE) — authID® (Nasdaq: AUID) (“authID”), a leading provider of secure identity verification and authentication solutions, today announced the Company will report financial results for the third quarter ended September 30, 2024 on Thursday, November 7, 2024. Following issuance of the results release, authID Chief Executive Officer, Rhon Daguro and Chief Financial Officer, Ed Sellitto will host a conference call and webcast at 5:00 p.m. EDT to discuss the financial results and provide a corporate update.

    To participate on the live conference call, please dial: (646) 968-2525 in the U.S. or +1 (888) 596-4144 internationally and reference the conference ID 8624132. To avoid delays, participants are encouraged to dial into the conference call 15-minutes ahead of the scheduled start time. A live webcast of the call will be available on the “Events & Presentations” page of the Company’s website at investors.authid.ai. Only participants on the live conference call will be able to ask questions.

    A replay of the event and a copy of the presentation will also be available for 90 days at authID’s Investor Relations Events.

    About authID Inc.

    authID (Nasdaq: AUID) ensures enterprises “Know Who’s Behind the Device™” for every customer or employee login and transaction through its easy-to-integrate, patented, biometric identity platform. authID quickly and accurately verifies a user’s identity and eliminates any assumption of ‘who’ is behind a device to prevent cybercriminals from compromising account openings or taking over accounts. Combining secure digital onboarding, FIDO2 passwordless login, and biometric authentication and account recovery, with a fast, accurate, user-friendly experience, authID delivers biometric identity processing in 700ms. Binding a biometric root of trust for each user to their account, authID stops fraud at onboarding, detects and stops deepfakes, eliminates password risks and costs, and provides the fastest, frictionless, and the more accurate user identity experience demanded by today’s digital ecosystem. Discover how authID can help your organization secure your workforce or consumer applications against identity fraud, cyberattacks and account takeover at www.authID.ai.

    Investor Relations Contact

    Gateway Group, Inc.
    Cody Slach and Alex Thompson
    1-949-574-3860
    AUID@gateway-grp.com

    The MIL Network –

  • MIL-OSI: Nasdaq Giants and Rising Innovators Face Critical Earnings Reports This Quarter

    Source: GlobeNewswire (MIL-OSI)

    PALM BEACH, Fla., Oct. 24, 2024 (GLOBE NEWSWIRE) — FN Media Group Market Commentary – Investors Brace for a High-Stakes Earnings Season as Key Players in Tech, EVs, and AI Reveal Their Performance. As earnings season heats up, several companies listed on the Nasdaq exchange are under the microscope. From emerging innovators to established market leaders, each faces unique challenges that will be revealed in their quarterly reports. The stakes are high, with market sentiment, stock prices, and future growth trajectories hanging in the balance. This quarter, Siyata Mobile (NASDAQ: SYTA), Rivian (NASDAQ: RIVN), Tesla (NASDAQ: TSLA), and Nvidia (NASDAQ: NVDA) are at critical junctures that could shift the momentum of their stocks and influence broader market trends.

    Siyata Mobile (NASDAQ: SYTA), a growing micro-cap, is set to take center stage on November 14 when it releases earnings. The company’s aggressive strategy of partnering with major wireless carriers is being put to the test following a recently inked deal with T-Mobile (NASDAQ: TMUS). Siyata’s push-to-talk (PTT) technology promises to disrupt traditional communication methods, and investors are watching closely to see if these efforts result in significant revenue growth. CEO Marc Seelenfreund has touted the potential for transformation, but the company now faces its most pivotal moment. The upcoming earnings will reveal whether the capital raised to meet carrier demands will pay off or leave investors disappointed. To read a recent MicroCapReports article on Siyata Mobile, please visit: https://microcapreports.com/lander/siyata-mobile/

    Rivian (NASDAQ: RIVN) is a company striving to balance growth and cost control. As a prominent name in the electric vehicle (EV) market, Rivian has rapidly scaled its operations, but the rising costs of production are raising questions about long-term profitability. This quarter, the pressure is on for Rivian to deliver strong financial results that reassure investors about its capacity to manage expenses while continuing to grow its EV footprint. Rivian’s performance will be scrutinized as the company seeks to maintain its valuation and prove it can stand alongside giants like Tesla in the competitive EV space.

    Tesla (NASDAQ: TSLA), a leader in the global EV market, faces increasing competition from both established automakers and new entrants. Despite being a market darling for years, Tesla’s margins are under pressure due to the rising costs of materials, increased production, and the need to invest in new technologies like autonomous driving and battery development. Investors will be looking for signs of resilience in Tesla’s earnings report, particularly in how the company manages competition and continues to grow its international market share while staying profitable.

    Nvidia (NASDAQ: NVDA), a heavyweight in the tech sector, has enjoyed an extraordinary run as demand for its advanced chips surged alongside the rise of AI applications. However, recent regulatory pressures and slowing growth in consumer-facing products have placed Nvidia at a crossroads. This quarter, Nvidia must demonstrate that its strength in AI and data centers will continue to drive revenue growth, even as global chip demand cools. Investors are particularly eager to see whether Nvidia’s strategic investments in AI can maintain its dominant position in the semiconductor industry.

    For each of these Nasdaq-listed companies, the upcoming earnings reports are far more than just financial check-ins—they are critical milestones that could determine the trajectory of these businesses in the near term. Whether they meet or exceed expectations will shape not only their individual stock movements but also broader market trends in sectors like technology, EVs, and AI.

    As investor sentiment builds, market participants should prepare for a high-stakes season filled with opportunity, risk, and potential surprises.

    About FN Media Group:

    At FN Media Group, via our top-rated online news portal at www.financialnewsmedia.com, we are one of the very few select firms providing top tier one syndicated news distribution, targeted ticker tag press releases and stock market news coverage for today’s emerging companies. #tickertagpressreleases #pressreleases

    Follow us on Facebook to receive the latest news updates: https://www.facebook.com/financialnewsmedia
    Follow us on Twitter for real time Market News: https://twitter.com/FNMgroup
    Follow us on Linkedin: https://www.linkedin.com/in/financialnewsmedia/

    DISCLAIMER: MicroCapReports is the originator of the content set forth above. References to any issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group LLC (FNM), which owns and operates FinancialNewsMedia.com and MarketNewsUpdates.com, is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with any company mentioned herein. FNM and its affiliated companies are a news dissemination solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM’s market updates, news alerts and corporate profiles are NOT a solicitation or recommendation to buy, sell or hold securities. The material in this release is intended to be strictly informational and is NEVER to be construed or interpreted as research material. All readers are strongly urged to perform research and due diligence on their own and consult a licensed financial professional before considering any level of investing in stocks. All material included herein is republished content and details which were previously disseminated by the companies mentioned in this release. FNM is not liable for any investment decisions by its readers or subscribers. Investors are cautioned that they may lose all or a portion of their investment when investing in stocks. For current services performed FNM has not been compensated by any publicly listed company listed herein. FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

    This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.

    Contact Information:
    Media Contact email: editor@financialnewsmedia.com – +1(561)325-8757

    SOURCE: FN Media Group

    The MIL Network –

  • MIL-OSI: Oma Savings Bank Plc’s Financial reporting and AGM in 2025

    Source: GlobeNewswire (MIL-OSI)

    OMA SAVINGS BANK PLC, STOCK EXCHANGE RELEASE 24 OCTOBER 2024 AT 15.00 P.M. EET, FINANCIAL CALENDAR

    Oma Savings Bank Plc’s Financial reporting and AGM in 2025

    Oma Savings Bank Plc (OmaSp) will publish financial information in 2025 as follows:

    • 10 February 2025 Financial Statements Release for 2024
    • 5 May 2025 Interim Report January-March 2025
    • 4 August 2025 Interim Report January-June 2025
    • 3 November 2025 Interim Report January-September 2025

    The 2024 Financial Statements, Annual Report, Sustainability Report and Auditor’s Report will be published week 11. The Annual General Meeting is planned to be held on Tuesday 8 April in 2025. The Board of Directors will convene the Annual General Meeting separately.

    Oma Savings Bank Plc

    Additional information:
    Minna Sillanpää, CCO, tel. +358 50 66592, minna.sillanpaa@omasp.fi

    DISTRIBUTION
    Nasdaq Helsinki Ltd
    Major media
    www.omasp.fi

    OmaSp is a solvent and profitable Finnish bank. About 500 professionals provide nationwide services through OmaSp’s 46 branch offices and digital service channels to over 200,000 private and corporate customers. OmaSp focuses primarily on retail banking operations and provides its clients with a broad range of banking services both through its own balance sheet as well as by acting as an intermediary for its partners’ products. The intermediated products include credit, investment and loan insurance products. OmaSp is also engaged in mortgage banking operations.

    OmaSp core idea is to provide personal service and to be local and close to its customers, both in digital and traditional channels. OmaSp strives to offer premium level customer experience through personal service and easy accessibility. In addition, the development of the operations and services is customer-oriented. The personnel is committed and OmaSp seeks to support their career development with versatile tasks and continuous development. A substantial part of the personnel also own shares in OmaSp.

    The MIL Network –

  • MIL-OSI: Paycor Welcomes Industry Leader Dru Armstrong, CEO of AffiniPay, to Board of Directors

    Source: GlobeNewswire (MIL-OSI)

    CINCINNATI, Oct. 24, 2024 (GLOBE NEWSWIRE) — Paycor HCM, Inc. (Nasdaq: PYCR) (“Paycor”), a leading provider of human capital management (HCM) software, today announced the election of Dru Armstrong to its Board of Directors, effective October 23, 2024.

    Ms. Armstrong brings a wealth of leadership experience to Paycor’s board, currently serving as Chief Executive Officer of AffiniPay, a leading provider of practice management software, integrated payments, and embedded fintech solutions. Her expertise spans software-as-a-service (SaaS), embedded technology, and adjacent payment industries, aligning closely with Paycor’s current and potential growth strategies.

    “Dru’s proven track record in driving technology companies to exponential growth, coupled with her strategic financial leadership, will be invaluable to our board,” said Raul Villar, Jr., CEO of Paycor. “Her deep industry knowledge and experience in scaling SaaS businesses will be crucial as we continue to innovate and expand our HCM offerings. Additionally, Dru’s commitment to fostering diverse, inclusive workplaces aligns perfectly with our company values.”

    With over 20 years of experience in the technology sector, Ms. Armstrong has proven success in building high-performing teams, driving product innovation and accelerating growth. She has been named a Top 25 Women Leader in PE-Backed Software Companies for 2024 by Calibre One and featured in American Banker’s 2024 list of Most Influential Women in Fintech. Additionally, she is widely regarded as a thought leader on innovation, diversity, equity and inclusion, and verticalized software.

    “Paycor is at the forefront of transforming how leaders leverage HCM technology to drive success,” said Armstrong. “I’m thrilled to join the board at this pivotal time and look forward to contributing my experience in scaling SaaS companies and navigating complex financial landscapes. Together, we’ll push the boundaries of innovation in HCM solutions, helping organizations build high-performing teams and achieve their full potential in today’s dynamic business environment.”

    About Paycor
    Paycor’s HR, payroll, and talent platform connects leaders to people, data, and expertise. We help leaders drive engagement and retention by giving them tools to coach, develop, and grow employees. We give them unprecedented insights into their operational data with a unified HCM experience that can seamlessly connect to other mission-critical technology. By providing expert guidance and consultation, we help them achieve business results and become an extension of their teams. Learn more at paycor.com.​

    Investor Relations:
    Rachel White
    513-954-7388
    IR@paycor.com  

    Media Relations:
    Carly Pennekamp
    513-954-7282
    PR@paycor.com

    The MIL Network –

  • MIL-OSI: First Merchants Corporation Announces Third Quarter 2024 Earnings per Share

    Source: GlobeNewswire (MIL-OSI)

    MUNCIE, Ind., Oct. 24, 2024 (GLOBE NEWSWIRE) — First Merchants Corporation (NASDAQ – FRME)

    Third Quarter 2024 Highlights:

    • Net income available to common stockholders was $48.7 million and diluted earnings per common share totaled $0.84, compared to $55.9 million and $0.94 in the third quarter of 2023, and $39.5 million and $0.68 in the second quarter of 2024.   Excluding the loss from repositioning of the available for sale securities portfolio, adjusted net income was $55.6 million or $0.95 per share for the third quarter of 2024.
    • Strong capital position with Common Equity Tier 1 Capital Ratio of 11.25% and Tangible Common Equity to Tangible Assets Ratio of 8.76%.
    • Net interest margin was 3.23% compared to 3.16% on a linked quarter basis.
    • Total loans grew $15.5 million, or 0.5% annualized, on a linked quarter basis, and $385.1 million, or 3.1% during the last twelve months.
    • Total deposits grew by $83.7 million, or 2.3% annualized, on a linked quarter basis after normalizing for $287.7 million of deposits reclassified to held for sale.
    • Nonperforming assets to total assets were 35 basis points compared to 36 basis points on a linked quarter basis.
    • The efficiency ratio totaled 53.76% for the quarter.
    • Announced sale of five Illinois branches and certain loans and deposits to Old Second National Bank on August 27, 2024.

    “We are pleased with our third quarter results and the focused momentum that we are building,” said Mark Hardwick, Chief Executive Officer. “The pending sale of five non-core Illinois branches, restructure of the securities portfolio, and successful completion of four major technology initiatives provides us with the opportunity to reprioritize our core markets and introduce innovative customer acquisition strategies.”

    Third Quarter Financial Results:

    First Merchants Corporation (the “Corporation”) has reported third quarter 2024 net income available to common stockholders of $48.7 million compared to $55.9 million during the same period in 2023. Diluted earnings per common share for the period totaled $0.84 compared to the third quarter of 2023 result of $0.94. Excluding the $9.1 million pre-tax loss from repositioning of the available for sale securities portfolio, adjusted net income was $55.6 million, or $0.95 diluted earnings per common share for the third quarter of 2024.

    During the quarter, the Corporation signed a definitive agreement to sell five Illinois branches along with certain loans and deposits, representing an exit from suburban Chicago markets. Loans of $9.2 million, deposits of $287.7 million and fixed assets of $3.4 million have been moved to held for sale categories as of September 30, 2024. The transaction is expected to close in the fourth quarter of this year.

    Total assets equaled $18.3 billion as of quarter-end and loans totaled $12.7 billion. During the past twelve months, total loans grew by $385.1 million, or 3.1%. On a linked quarter basis, loans grew $15.5 million, or 0.5%, with growth primarily in commercial & industrial loans.

    Investments totaling $3.7 billion decreased $51.6 million, or 1.4%, during the last twelve months and decreased $90.9 million, or 9.7% annualized, on a linked quarter basis. The decline during the quarter was due to $158.9 million in sales of available for sale securities with a weighted average tax-equivalent yield of 2.85%, partially offset by an increase in the securities portfolio valuation.

    Total deposits were $14.4 billion as of quarter-end and decreased by $281.5 million, or 1.9%, over the past twelve months. The decline was primarily due to $287.7 million of deposits being reclassified to held for sale. Excluding this impact, deposits increased by $6.2 million. On a linked quarter basis, deposits grew organically by $83.7 million or 2.3%. The loan to deposit ratio increased to 88.0% at period end from 86.8% in the prior quarter, primarily due to the reclassification of deposits to held for sale as previously described.

    The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $187.8 million as of quarter-end, or 1.48% of total loans, a decrease of $1.7 million from prior quarter. Loan charge-offs, net of recoveries totaled $6.7 million and provision for loans of $5.0 million was recorded during the quarter. Reserves for unfunded commitments totaled $19.5 million and remained unchanged from the prior quarter. Non-performing assets to total assets were 35 basis points for the third quarter of 2024, a decrease of one basis point compared to 36 basis points in the prior quarter.

    Net interest income totaled $131.1 million for the quarter, an increase of $2.5 million, or 2.0%, compared to prior quarter and a decrease of $2.3 million, or 1.7%, compared to the third quarter of 2023. Fully-tax equivalent net interest margin was 3.23%, an increase of 7 basis points compared to the second quarter of 2024, and a decrease of 6 basis points compared to the third quarter of 2023. The increase in net interest margin compared to the second quarter was due to higher earning asset yields.

    Non-interest income totaled $24.9 million for the quarter, a decrease of $6.5 million, or 20.6%, compared to the second quarter of 2024 and a decrease of $3.0 million, or 6.7% from the third quarter of 2023. The decrease from second quarter of 2024 was driven by realized losses on sales of available for sale securities associated with the repositioning of the bond portfolio, partially offset by increases in gains on sales of mortgage loans and earnings on cash surrender value of life insurance.

    Non-interest expense totaled $94.6 million for the quarter, an increase of $3.2 million from the second quarter of 2024 and an increase of $0.8 million from the third quarter of 2023. The increase from the linked quarter was from higher salaries and employee benefits primarily driven by higher incentives.

    The Corporation’s total risk-based capital ratio equaled 13.18%, common equity tier 1 capital ratio equaled 11.25%, and the tangible common equity ratio totaled 8.76%. These ratios continue to reflect the Corporation’s strong liquidity and capital positions.

    CONFERENCE CALL

    First Merchants Corporation will conduct a third quarter earnings conference call and web cast at 11:30 a.m. (ET) on Thursday, October 24, 2024.

    To access via phone, participants will need to register using the following link where they will be provided a phone number and access code: (https://register.vevent.com/register/BI34430e309ed545808c7c8195f36e86b6)

    To view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/6grv3upw) during the time of the call. A replay of the webcast will be available until October 24, 2025.

    Detailed financial results are reported on the attached pages.

    About First Merchants Corporation

    First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. The Corporation has one full-service bank charter, First Merchants Bank. The Bank also operates as First Merchants Private Wealth Advisors (as a division of First Merchants Bank).

    First Merchants Corporation’s common stock is traded on the NASDAQ Global Select Market System under the symbol FRME. Quotations are carried in daily newspapers and can be found on the company’s Internet web page (http://www.firstmerchants.com).

    FIRST MERCHANTS and the Shield Logo are federally registered trademarks of First Merchants Corporation.

    Forward-Looking Statements

    This release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like “believe”, “continue”, “pattern”, “estimate”, “project”, “intend”, “anticipate”, “expect” and similar expressions or future or conditional verbs such as “will”, “would”, “should”, “could”, “might”, “can”, “may”, or similar expressions. These statements include statements about First Merchants’ goals, intentions and expectations; statements regarding the First Merchants’ business plan and growth strategies; statements regarding the asset quality of First Merchants’ loan and investment portfolios; and estimates of First Merchants’ risks and future costs and benefits. These forward-looking statements are subject to significant risks, assumptions and uncertainties that may cause results to differ materially from those set forth in forward-looking statements, including, among other things: possible changes in monetary and fiscal policies, and laws and regulations; the effects of easing restrictions on participants in the financial services industry; the cost and other effects of legal and administrative cases; possible changes in the credit worthiness of customers and the possible impairment of collectability of loans; fluctuations in market rates of interest; competitive factors in the banking industry; changes in the banking legislation or regulatory requirements of federal and state agencies applicable to bank holding companies and banks like First Merchants’ affiliate bank; continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; changes in market, economic, operational, liquidity (including the ability to grow and maintain core deposits and retain large, uninsured deposits), credit and interest rate risks associated with the First Merchants’ business; and other risks and factors identified in each of First Merchants’ filings with the Securities and Exchange Commission. First Merchants does not undertake any obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this press release. In addition, First Merchants’ past results of operations do not necessarily indicate its anticipated future results.

     
    CONSOLIDATED BALANCE SHEETS
    (Dollars In Thousands) September 30,
        2024       2023  
    ASSETS      
    Cash and due from banks $ 84,719     $ 125,173  
    Interest-bearing deposits   359,126       348,639  
    Investment securities, net of allowance for credit losses of $245,000 and $245,000   3,662,145       3,713,724  
    Loans held for sale   40,652       30,972  
    Loans   12,646,808       12,271,422  
    Less: Allowance for credit losses – loans   (187,828 )     (205,782 )
    Net loans   12,458,980       12,065,640  
    Premises and equipment   129,582       132,441  
    Federal Home Loan Bank stock   41,716       41,797  
    Interest receivable   92,055       90,011  
    Goodwill and other intangibles   733,601       741,283  
    Cash surrender value of life insurance   304,613       306,106  
    Other real estate owned   5,247       6,480  
    Tax asset, deferred and receivable   86,732       135,521  
    Other assets   348,384       340,476  
    TOTAL ASSETS $ 18,347,552     $ 18,078,263  
    LIABILITIES      
    Deposits:      
    Noninterest-bearing $ 2,334,197     $ 2,554,984  
    Interest-bearing   12,030,903       12,091,592  
    Total Deposits   14,365,100       14,646,576  
    Borrowings:      
    Federal funds purchased   30,000       —  
    Securities sold under repurchase agreements   124,894       152,537  
    Federal Home Loan Bank advances   832,629       713,384  
    Subordinated debentures and other borrowings   93,562       158,665  
    Total Borrowings   1,081,085       1,024,586  
    Deposits and other liabilities held for sale   288,476       —  
    Interest payable   18,089       16,473  
    Other liabilities   292,429       297,984  
    Total Liabilities   16,045,179       15,985,619  
    STOCKHOLDERS’ EQUITY      
    Preferred Stock, $1,000 par value, $1,000 liquidation value:      
    Authorized — 600 cumulative shares      
    Issued and outstanding – 125 cumulative shares   125       125  
    Preferred Stock, Series A, no par value, $2,500 liquidation preference:      
    Authorized — 10,000 non-cumulative perpetual shares      
    Issued and outstanding – 10,000 non-cumulative perpetual shares   25,000       25,000  
    Common Stock, $.125 stated value:      
    Authorized — 100,000,000 shares      
    Issued and outstanding – 58,117,115 and 59,398,022 shares   7,265       7,425  
    Additional paid-in capital   1,192,683       1,234,402  
    Retained earnings   1,229,125       1,132,962  
    Accumulated other comprehensive loss   (151,825 )     (307,270 )
    Total Stockholders’ Equity   2,302,373       2,092,644  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 18,347,552     $ 18,078,263  
                   
                   
           
    CONSOLIDATED STATEMENTS OF INCOME Three Months Ended   Nine Months Ended
    (Dollars In Thousands, Except Per Share Amounts) September 30,   September 30,
        2024       2023       2024       2023  
    INTEREST INCOME              
    Loans receivable:              
    Taxable $ 206,680     $ 191,705     $ 606,116     $ 550,314  
    Tax-exempt   8,622       8,288       25,242       23,757  
    Investment securities:              
    Taxable   9,263       8,590       27,062       26,563  
    Tax-exempt   13,509       13,947       40,733       44,296  
    Deposits with financial institutions   2,154       5,884       11,642       9,685  
    Federal Home Loan Bank stock   855       719       2,569       2,281  
    Total Interest Income   241,083       229,133       713,364       656,896  
    INTEREST EXPENSE              
    Deposits   98,856       85,551       296,292       209,437  
    Federal funds purchased   329       —       455       1,420  
    Securities sold under repurchase agreements   700       797       2,377       2,624  
    Federal Home Loan Bank advances   8,544       6,896       21,715       20,775  
    Subordinated debentures and other borrowings   1,544       2,506       5,781       7,303  
    Total Interest Expense   109,973       95,750       326,620       241,559  
    NET INTEREST INCOME   131,110       133,383       386,744       415,337  
    Provision for credit losses   5,000       2,000       31,500       2,000  
    NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES   126,110       131,383       355,244       413,337  
    NONINTEREST INCOME              
    Service charges on deposit accounts   8,361       7,975       24,482       23,147  
    Fiduciary and wealth management fees   8,525       7,394       25,550       22,653  
    Card payment fees   5,121       4,716       14,360       14,425  
    Net gains and fees on sales of loans   6,764       5,517       15,159       11,548  
    Derivative hedge fees   736       516       1,488       2,336  
    Other customer fees   344       384       1,231       1,643  
    Earnings on cash surrender value of life insurance   2,755       1,761       6,276       5,145  
    Net realized losses on sales of available for sale securities   (9,114 )     (1,650 )     (9,165 )     (4,613 )
    Other income   1,374       1,229       3,457       2,874  
    Total Noninterest Income   24,866       27,842       82,838       79,158  
    NONINTEREST EXPENSES              
    Salaries and employee benefits   55,223       55,566       165,730       167,778  
    Net occupancy   6,994       6,837       21,052       20,770  
    Equipment   6,949       5,698       19,774       18,005  
    Marketing   1,836       2,369       4,807       4,780  
    Outside data processing fees   7,150       6,573       21,111       19,290  
    Printing and office supplies   378       333       1,085       1,150  
    Intangible asset amortization   1,772       2,182       5,500       6,561  
    FDIC assessments   3,720       2,981       11,285       7,117  
    Other real estate owned and foreclosure expenses   942       677       1,849       1,575  
    Professional and other outside services   3,035       3,833       10,809       12,191  
    Other expenses   6,630       6,805       19,975       20,950  
    Total Noninterest Expenses   94,629       93,854       282,977       280,167  
    INCOME BEFORE INCOME TAX   56,347       65,371       155,105       212,328  
    Income tax expense   7,160       9,005       18,052       31,021  
    NET INCOME   49,187       56,366       137,053       181,307  
    Preferred stock dividends   468       468       1,406       1,406  
    NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 48,719     $ 55,898     $ 135,647     $ 179,901  
    Per Share Data:              
    Basic Net Income Available to Common Stockholders $ 0.84     $ 0.95     $ 2.32     $ 3.04  
    Diluted Net Income Available to Common Stockholders $ 0.84     $ 0.94     $ 2.31     $ 3.03  
    Cash Dividends Paid to Common Stockholders $ 0.35     $ 0.34     $ 1.04     $ 1.00  
    Average Diluted Common Shares Outstanding (in thousands)   58,289       59,503       58,629       59,465  
                                   
                                   
     
    FINANCIAL HIGHLIGHTS
    (Dollars in thousands) Three Months Ended   Nine Months Ended
      September 30,   September 30,
        2024       2023       2024       2023  
    NET CHARGE-OFFS $ 6,709     $ 20,365     $ 48,606     $ 22,495  
                   
    AVERAGE BALANCES:              
    Total Assets $ 18,360,580     $ 18,152,239     $ 18,374,370     $ 18,115,504  
    Total Loans   12,680,166       12,287,632       12,592,907       12,264,787  
    Total Earning Assets   16,990,358       16,947,669       17,042,540       16,913,965  
    Total Deposits   14,702,454       14,735,592       14,826,056       14,627,448  
    Total Stockholders’ Equity   2,251,547       2,154,232       2,232,419       2,126,005  
                   
    FINANCIAL RATIOS:              
    Return on Average Assets   1.07 %     1.24 %     0.99 %     1.33 %
    Return on Average Stockholders’ Equity   8.66       10.38       8.10       11.28  
    Return on Tangible Common Stockholders’ Equity   13.39       16.54       12.64       18.10  
    Average Earning Assets to Average Assets   92.54       93.36       92.75       93.37  
    Allowance for Credit Losses – Loans as % of Total Loans   1.48       1.67       1.48       1.67  
    Net Charge-offs as % of Average Loans (Annualized)   0.21       0.66       0.51       0.24  
    Average Stockholders’ Equity to Average Assets   12.26       11.87       12.15       11.74  
    Tax Equivalent Yield on Average Earning Assets   5.82       5.55       5.72       5.32  
    Interest Expense/Average Earning Assets   2.59       2.26       2.56       1.90  
    Net Interest Margin (FTE) on Average Earning Assets   3.23       3.29       3.16       3.42  
    Efficiency Ratio   53.76       53.91       55.54       52.60  
    Tangible Common Book Value Per Share $ 26.64     $ 22.43     $ 26.64     $ 22.43  
                                   
                                   
     
    NONPERFORMING ASSETS
    (Dollars In Thousands) September 30,   June 30,   March 31,   December 31,   September 30,
        2024       2024       2024       2023       2023  
    Nonaccrual Loans $ 59,088     $ 61,906     $ 62,478     $ 53,580     $ 53,102  
    Other Real Estate Owned and Repossessions   5,247       4,824       4,886       4,831       6,480  
    Nonperforming Assets (NPA)   64,335       66,730       67,364       58,411       59,582  
    90+ Days Delinquent   14,105       1,686       2,838       172       89  
    NPAs & 90 Day Delinquent $ 78,440     $ 68,416     $ 70,202     $ 58,583     $ 59,671  
                       
    Allowance for Credit Losses – Loans $ 187,828     $ 189,537     $ 204,681     $ 204,934     $ 205,782  
    Quarterly Net Charge-offs   6,709       39,644       2,253       3,148       20,365  
    NPAs / Actual Assets %   0.35 %     0.36 %     0.37 %     0.32 %     0.33 %
    NPAs & 90 Day / Actual Assets %   0.43 %     0.37 %     0.38 %     0.32 %     0.33 %
    NPAs / Actual Loans and OREO %   0.51 %     0.53 %     0.54 %     0.47 %     0.48 %
    Allowance for Credit Losses – Loans / Actual Loans (%)   1.48 %     1.50 %     1.64 %     1.64 %     1.67 %
    Net Charge-offs as % of Average Loans (Annualized)   0.21 %     1.26 %     0.07 %     0.10 %     0.66 %
                                           
                                           
     
    CONSOLIDATED BALANCE SHEETS
    (Dollars In Thousands) September 30,   June 30,   March 31,   December 31,   September 30,
        2024       2024       2024       2023       2023  
    ASSETS                  
    Cash and due from banks $ 84,719     $ 105,372     $ 100,514     $ 112,649     $ 125,173  
    Interest-bearing deposits   359,126       168,528       410,497       436,080       348,639  
    Investment securities, net of allowance for credit losses   3,662,145       3,753,088       3,783,574       3,811,364       3,713,724  
    Loans held for sale   40,652       32,292       15,118       18,934       30,972  
    Loans   12,646,808       12,639,650       12,465,582       12,486,027       12,271,422  
    Less: Allowance for credit losses – loans   (187,828 )     (189,537 )     (204,681 )     (204,934 )     (205,782 )
    Net loans   12,458,980       12,450,113       12,260,901       12,281,093       12,065,640  
    Premises and equipment   129,582       133,245       132,706       133,896       132,441  
    Federal Home Loan Bank stock   41,716       41,738       41,758       41,769       41,797  
    Interest receivable   92,055       97,546       92,550       97,664       90,011  
    Goodwill and other intangibles   733,601       735,373       737,144       739,101       741,283  
    Cash surrender value of life insurance   304,613       306,379       306,028       306,301       306,106  
    Other real estate owned   5,247       4,824       4,886       4,831       6,480  
    Tax asset, deferred and receivable   86,732       107,080       101,121       99,883       135,521  
    Other assets   348,384       367,845       331,006       322,322       340,476  
    TOTAL ASSETS $ 18,347,552     $ 18,303,423     $ 18,317,803     $ 18,405,887     $ 18,078,263  
    LIABILITIES                  
    Deposits:                  
    Noninterest-bearing $ 2,334,197     $ 2,303,313     $ 2,338,364     $ 2,500,062     $ 2,554,984  
    Interest-bearing   12,030,903       12,265,757       12,546,220       12,321,391       12,091,592  
    Total Deposits   14,365,100       14,569,070       14,884,584       14,821,453       14,646,576  
    Borrowings:                  
    Federal funds purchased   30,000       147,229       —       —       —  
    Securities sold under repurchase agreements   124,894       100,451       130,264       157,280       152,537  
    Federal Home Loan Bank advances   832,629       832,703       612,778       712,852       713,384  
    Subordinated debentures and other borrowings   93,562       93,589       118,612       158,644       158,665  
    Total Borrowings   1,081,085       1,173,972       861,654       1,028,776       1,024,586  
    Deposits and other liabilities held for sale   288,476       —       —       —       —  
    Interest payable   18,089       18,554       19,262       18,912       16,473  
    Other liabilities   292,429       329,302       327,500       289,033       297,984  
    Total Liabilities   16,045,179       16,090,898       16,093,000       16,158,174       15,985,619  
    STOCKHOLDERS’ EQUITY                  
    Preferred Stock, $1,000 par value, $1,000 liquidation value:                  
    Authorized — 600 cumulative shares                  
    Issued and outstanding – 125 cumulative shares   125       125       125       125       125  
    Preferred Stock, Series A, no par value, $2,500 liquidation preference:                  
    Authorized — 10,000 non-cumulative perpetual shares                  
    Issued and outstanding – 10,000 non-cumulative perpetual shares   25,000       25,000       25,000       25,000       25,000  
    Common Stock, $.125 stated value:                  
    Authorized — 100,000,000 shares                  
    Issued and outstanding   7,265       7,256       7,321       7,428       7,425  
    Additional paid-in capital   1,192,683       1,191,193       1,208,447       1,236,506       1,234,402  
    Retained earnings   1,229,125       1,200,930       1,181,939       1,154,624       1,132,962  
    Accumulated other comprehensive loss   (151,825 )     (211,979 )     (198,029 )     (175,970 )     (307,270 )
    Total Stockholders’ Equity   2,302,373       2,212,525       2,224,803       2,247,713       2,092,644  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 18,347,552     $ 18,303,423     $ 18,317,803     $ 18,405,887     $ 18,078,263  
                       
                       
     
    CONSOLIDATED STATEMENTS OF INCOME
    (Dollars In Thousands, Except Per Share Amounts) September 30,   June 30,   March 31,   December 31,   September 30,
        2024       2024       2024       2023       2023  
    INTEREST INCOME                  
    Loans receivable:                  
    Taxable $ 206,680     $ 201,413     $ 198,023     $ 197,523     $ 191,705  
    Tax-exempt   8,622       8,430       8,190       8,197       8,288  
    Investment securities:                  
    Taxable   9,263       9,051       8,748       8,644       8,590  
    Tax-exempt   13,509       13,613       13,611       13,821       13,947  
    Deposits with financial institutions   2,154       2,995       6,493       8,034       5,884  
    Federal Home Loan Bank stock   855       879       835       771       719  
    Total Interest Income   241,083       236,381       235,900       236,990       229,133  
    INTEREST EXPENSE                  
    Deposits   98,856       99,151       98,285       96,655       85,551  
    Federal funds purchased   329       126       —       1       —  
    Securities sold under repurchase agreements   700       645       1,032       827       797  
    Federal Home Loan Bank advances   8,544       6,398       6,773       6,431       6,896  
    Subordinated debentures and other borrowings   1,544       1,490       2,747       3,013       2,506  
    Total Interest Expense   109,973       107,810       108,837       106,927       95,750  
    NET INTEREST INCOME   131,110       128,571       127,063       130,063       133,383  
    Provision for credit losses   5,000       24,500       2,000       1,500       2,000  
    NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES   126,110       104,071       125,063       128,563       131,383  
    NONINTEREST INCOME                  
    Service charges on deposit accounts   8,361       8,214       7,907       7,690       7,975  
    Fiduciary and wealth management fees   8,525       8,825       8,200       8,187       7,394  
    Card payment fees   5,121       4,739       4,500       4,437       4,716  
    Net gains and fees on sales of loans   6,764       5,141       3,254       4,111       5,517  
    Derivative hedge fees   736       489       263       1,049       516  
    Other customer fees   344       460       427       237       384  
    Earnings on cash surrender value of life insurance   2,755       1,929       1,592       3,202       1,761  
    Net realized losses on sales of available for sale securities   (9,114 )     (49 )     (2 )     (2,317 )     (1,650 )
    Other income (loss)   1,374       1,586       497       (152 )     1,229  
    Total Noninterest Income   24,866       31,334       26,638       26,444       27,842  
    NONINTEREST EXPENSES                  
    Salaries and employee benefits   55,223       52,214       58,293       60,967       55,566  
    Net occupancy   6,994       6,746       7,312       9,089       6,837  
    Equipment   6,949       6,599       6,226       6,108       5,698  
    Marketing   1,836       1,773       1,198       2,647       2,369  
    Outside data processing fees   7,150       7,072       6,889       5,875       6,573  
    Printing and office supplies   378       354       353       402       333  
    Intangible asset amortization   1,772       1,771       1,957       2,182       2,182  
    FDIC assessments   3,720       3,278       4,287       7,557       2,981  
    Other real estate owned and foreclosure expenses   942       373       534       1,743       677  
    Professional and other outside services   3,035       3,822       3,952       3,981       3,833  
    Other expenses   6,630       7,411       5,934       7,552       6,805  
    Total Noninterest Expenses   94,629       91,413       96,935       108,103       93,854  
    INCOME BEFORE INCOME TAX   56,347       43,992       54,766       46,904       65,371  
    Income tax expense   7,160       4,067       6,825       4,425       9,005  
    NET INCOME   49,187       39,925       47,941       42,479       56,366  
    Preferred stock dividends   468       469       469       469       468  
    NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 48,719     $ 39,456     $ 47,472     $ 42,010     $ 55,898  
    Per Share Data:                  
    Basic Net Income Available to Common Stockholders $ 0.84     $ 0.68     $ 0.80     $ 0.71     $ 0.95  
    Diluted Net Income Available to Common Stockholders $ 0.84     $ 0.68     $ 0.80     $ 0.71     $ 0.94  
    Cash Dividends Paid to Common Stockholders $ 0.35     $ 0.35     $ 0.34     $ 0.34     $ 0.34  
    Average Diluted Common Shares Outstanding (in thousands)   58,289       58,328       59,273       59,556       59,503  
    FINANCIAL RATIOS:                  
    Return on Average Assets   1.07 %     0.87 %     1.04 %     0.92 %     1.24 %
    Return on Average Stockholders’ Equity   8.66       7.16       8.47       7.89       10.38  
    Return on Tangible Common Stockholders’ Equity   13.39       11.29       13.21       12.75       16.54  
    Average Earning Assets to Average Assets   92.54       92.81       92.91       93.62       93.36  
    Allowance for Credit Losses – Loans as % of Total Loans   1.48       1.50       1.64       1.64       1.67  
    Net Charge-offs as % of Average Loans (Annualized)   0.21       1.26       0.07       0.10       0.66  
    Average Stockholders’ Equity to Average Assets   12.26       12.02       12.17       11.58       11.87  
    Tax Equivalent Yield on Average Earning Assets   5.82       5.69       5.65       5.64       5.55  
    Interest Expense/Average Earning Assets   2.59       2.53       2.55       2.48       2.26  
    Net Interest Margin (FTE) on Average Earning Assets   3.23       3.16       3.10       3.16       3.29  
    Efficiency Ratio   53.76       53.84       59.21       63.26       53.91  
    Tangible Common Book Value Per Share $ 26.64     $ 25.10     $ 25.07     $ 25.06     $ 22.43  
                                           
                                           
     
    LOANS
    (Dollars In Thousands) September 30,   June 30,   March 31,   December 31,   September 30,
        2024       2024       2024       2023       2023  
    Commercial and industrial loans $ 4,041,217     $ 3,949,817     $ 3,722,365     $ 3,670,948     $ 3,490,953  
    Agricultural land, production and other loans to farmers   238,743       239,926       234,431       263,414       233,838  
    Real estate loans:                  
    Construction   814,704       823,267       941,726       957,545       1,022,261  
    Commercial real estate, non-owner occupied   2,251,351       2,323,533       2,368,360       2,400,839       2,360,596  
    Commercial real estate, owner occupied   1,152,751       1,174,195       1,137,894       1,162,083       1,153,707  
    Residential   2,366,943       2,370,905       2,316,490       2,288,921       2,257,385  
    Home equity   641,188       631,104       618,258       617,571       609,352  
    Individuals’ loans for household and other personal expenditures   158,480       162,089       161,459       168,388       176,523  
    Public finance and other commercial loans   981,431       964,814       964,599       956,318       966,807  
    Loans   12,646,808       12,639,650       12,465,582       12,486,027       12,271,422  
    Allowance for credit losses – loans   (187,828 )     (189,537 )     (204,681 )     (204,934 )     (205,782 )
    NET LOANS $ 12,458,980     $ 12,450,113     $ 12,260,901     $ 12,281,093     $ 12,065,640  
                                           
                                           
     
    DEPOSITS
    (Dollars In Thousands) September 30,   June 30,   March 31,   December 31,   September 30,
        2024     2024     2024     2023     2023
    Demand deposits $ 7,678,510   $ 7,757,679   $ 7,771,976   $ 7,965,862   $ 7,952,040
    Savings deposits   4,302,236     4,339,161     4,679,593     4,516,433     4,572,162
    Certificates and other time deposits of $100,000 or more   1,277,833     1,415,131     1,451,443     1,408,985     1,280,607
    Other certificates and time deposits   802,949     889,949     901,280     849,906     761,196
    Brokered certificates of deposits1   303,572     167,150     80,292     80,267     80,571
    TOTAL DEPOSITS2 $ 14,365,100   $ 14,569,070   $ 14,884,584   $ 14,821,453   $ 14,646,576

    1 – Total brokered deposits of $838.3 million, which includes brokered CD’s of $303.6 million at September 30, 2024.
    2 – Total deposits at September 30, 2024 excludes $287.7 million of deposits reclassified to Deposits and other liabilities held for sale related to the pending Illinois branch sale.

     
    CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
    (Dollars in Thousands)                      
      For the Three Months Ended
      September 30, 2024   September 30, 2023
      Average Balance   Interest
     Income /
    Expense    		   Average
    Rate    		   Average Balance   Interest
     Income /
    Expense    		   Average
    Rate
    ASSETS                      
    Interest-bearing deposits $ 252,113   $ 2,154   3.42 %   $ 502,967   $ 5,884   4.68 %
    Federal Home Loan Bank stock   41,730     855   8.20       41,826     719   6.88  
    Investment Securities: (1)                      
    Taxable   1,789,526     9,263   2.07       1,817,219     8,590   1.89  
    Tax-exempt (2)   2,226,823     17,100   3.07       2,298,025     17,655   3.07  
    Total Investment Securities   4,016,349     26,363   2.63       4,115,244     26,245   2.55  
    Loans held for sale   31,991     483   6.04       24,227     386   6.37  
    Loans: (3)                      
    Commercial   8,699,733     164,922   7.58       8,456,527     153,993   7.28  
    Real estate mortgage   2,183,095     24,333   4.46       2,079,067     21,618   4.16  
    Installment   832,222     16,942   8.14       827,318     15,708   7.59  
    Tax-exempt (2)   933,125     10,914   4.68       900,493     10,491   4.66  
    Total Loans   12,680,166     217,594   6.86       12,287,632     202,196   6.58  
    Total Earning Assets   16,990,358     246,966   5.82 %     16,947,669     235,044   5.55 %
    Total Non-Earning Assets   1,370,222             1,204,570        
    TOTAL ASSETS $ 18,360,580           $ 18,152,239        
    LIABILITIES                      
    Interest-Bearing Deposits:                      
    Interest-bearing deposits $ 5,455,298   $ 40,450   2.97 %   $ 5,425,829   $ 37,780   2.79 %
    Money market deposits   2,974,188     25,950   3.49       2,923,798     23,607   3.23  
    Savings deposits   1,425,047     4,208   1.18       1,641,338     3,844   0.94  
    Certificates and other time deposits   2,499,655     28,248   4.52       2,106,910     20,320   3.86  
    Total Interest-Bearing Deposits   12,354,188     98,856   3.20       12,097,875     85,551   2.83  
    Borrowings   1,071,440     11,117   4.15       1,032,180     10,199   3.95  
    Total Interest-Bearing Liabilities   13,425,628     109,973   3.28       13,130,055     95,750   2.92  
    Noninterest-bearing deposits   2,348,266             2,637,717        
    Other liabilities   335,139             230,235        
    Total Liabilities   16,109,033             15,998,007        
    STOCKHOLDERS’ EQUITY   2,251,547             2,154,232        
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 18,360,580     109,973       $ 18,152,239     95,750    
    Net Interest Income (FTE)     $ 136,993           $ 139,294    
    Net Interest Spread (FTE) (4)         2.54 %           2.63 %
                           
    Net Interest Margin (FTE):                      
    Interest Income (FTE) / Average Earning Assets         5.82 %           5.55 %
    Interest Expense / Average Earning Assets         2.59 %           2.26 %
    Net Interest Margin (FTE) (5)         3.23 %           3.29 %
                           
    (1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
    (2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2024 and 2023. These totals equal $5,883 and $5,911 for the three months ended September 30, 2024 and 2023, respectively.
    (3) Non accruing loans have been included in the average balances.
    (4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
    (5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.
     
     
    CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
    (Dollars in Thousands)                      
      For the Nine Months Ended
      September 30, 2024   September 30, 2023
      Average Balance   Interest
     Income /
    Expense    		   Average
    Rate    		   Average Balance   Interest
     Income /
    Expense    		   Average
    Rate
    ASSETS                      
    Interest-bearing deposits $ 383,007   $ 11,642   4.05 %   $ 340,887   $ 9,685   3.79 %
    Federal Home Loan Bank stock   41,748     2,569   8.20       41,160     2,281   7.39  
    Investment Securities: (1)                      
    Taxable   1,787,119     27,062   2.02       1,872,267     26,563   1.89  
    Tax-exempt (2)   2,237,759     51,561   3.07       2,394,864     56,071   3.12  
    Total Investment Securities   4,024,878     78,623   2.60       4,267,131     82,634   2.58  
    Loans held for sale   27,735     1,242   5.97       22,398     1,046   6.23  
    Loans: (3)                      
    Commercial   8,659,088     484,979   7.47       8,515,148     444,422   6.96  
    Real estate mortgage   2,159,738     70,489   4.35       2,008,852     60,354   4.01  
    Installment   825,060     49,406   7.98       833,133     44,492   7.12  
    Tax-exempt (2)   921,286     31,952   4.62       885,256     30,072   4.53  
    Total Loans   12,592,907     638,068   6.76       12,264,787     580,386   6.31  
    Total Earning Assets   17,042,540     730,902   5.72 %     16,913,965     674,986   5.32 %
    Total Non-Earning Assets   1,331,830             1,201,539        
    TOTAL ASSETS $ 18,374,370           $ 18,115,504        
    LIABILITIES                      
    Interest-Bearing deposits:                      
    Interest-bearing deposits $ 5,487,106   $ 120,935   2.94 %   $ 5,412,482   $ 97,016   2.39 %
    Money market deposits   3,018,526     80,563   3.56       2,812,891     55,868   2.65  
    Savings deposits   1,497,620     11,485   1.02       1,730,110     10,693   0.82  
    Certificates and other time deposits   2,447,684     83,309   4.54       1,821,408     45,860   3.36  
    Total Interest-Bearing Deposits   12,450,936     296,292   3.17       11,776,891     209,437   2.37  
    Borrowings   990,022     30,328   4.08       1,144,368     32,122   3.74  
    Total Interest-Bearing Liabilities   13,440,958     326,620   3.24       12,921,259     241,559   2.49  
    Noninterest-bearing deposits   2,375,120             2,850,557        
    Other liabilities   325,873             217,683        
    Total Liabilities   16,141,951             15,989,499        
    STOCKHOLDERS’ EQUITY   2,232,419             2,126,005        
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 18,374,370     326,620       $ 18,115,504     241,559    
    Net Interest Income (FTE)     $ 404,282           $ 433,427    
    Net Interest Spread (FTE) (4)         2.48 %           2.83 %
                           
    Net Interest Margin (FTE):                      
    Interest Income (FTE) / Average Earning Assets         5.72 %           5.32 %
    Interest Expense / Average Earning Assets         2.56 %           1.90 %
    Net Interest Margin (FTE) (5)         3.16 %           3.42 %
                           
    (1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
    (2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2024 and 2023. These totals equal $17,538 and $18,090 for the nine months ended September 30, 2024 and 2023, respectively.
    (3) Non accruing loans have been included in the average balances.                      
    (4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
    (5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.
     
     
    ADJUSTED NET INCOME AND DILUTED EARNINGS PER COMMON SHARE – NON-GAAP
    (Dollars In Thousands, Except Per Share Amounts) Three Months Ended   Nine Months Ended
      September 30,   June 30,   March 31,   December 31,   September 30,   September 30,   September 30,
        2024       2024       2024       2023       2023       2024       2023  
    Net Income Available to Common Stockholders – GAAP $ 48,719     $ 39,456     $ 47,472     $ 42,010     $ 55,898     $ 135,647     $ 179,901  
    Adjustments:                          
    PPP loan income   —       —       —       (7 )     (8 )     —       (42 )
    Net realized losses on sales of available for sale securities   9,114       49       2       2,317       1,650       9,165       4,613  
    Non-core expenses1,2   —       —       3,481       12,682       —       3,481       —  
    Tax on adjustments   (2,220 )     (12 )     (848 )     (3,652 )     (403 )     (3,081 )     (1,121 )
    Adjusted Net Income Available to Common Stockholders – Non-GAAP $ 55,613     $ 39,493     $ 50,107     $ 53,350     $ 57,137     $ 145,212     $ 183,351  
                               
    Average Diluted Common Shares Outstanding (in thousands)   58,289       58,328       59,273       59,556       59,503       58,629       59,465  
                               
    Diluted Earnings Per Common Share – GAAP $ 0.84     $ 0.68     $ 0.80     $ 0.71     $ 0.94     $ 2.31     $ 3.03  
    Adjustments:                          
    PPP loan income   —       —       —       —       —       —       —  
    Net realized losses on sales of available for sale securities   0.15       —       —       0.04       0.03       0.16       0.07  
    Non-core expenses1,2   —       —       0.06       0.21       —       0.06       —  
    Tax on adjustments   (0.04 )     —       (0.01 )     (0.06 )     (0.01 )     (0.05 )     (0.02 )
    Adjusted Diluted Earnings Per Common Share – Non-GAAP $ 0.95     $ 0.68     $ 0.85     $ 0.90     $ 0.96     $ 2.48     $ 3.08  

    1 – Non-core expenses in 4Q23 included $6.3 million from early retirement and severance costs, $4.3 million from the FDIC special assessment, and $2.1 million from a lease termination.
    2 – Non-core expenses in 1Q24 included $2.4 million from duplicative online banking conversion costs and $1.1 million from the FDIC special assessment.

     
    NET INTEREST MARGIN (“NIM”), ADJUSTED
    (Dollars in Thousands, Except Per Share Amounts)                
      Three Months Ended   Nine Months Ended
      September 30,   June 30,   March 31,   December 31,   September 30,   September 30,   September 30,
        2024       2024       2024       2023       2023       2024       2023  
    Net Interest Income (GAAP) $ 131,110     $ 128,571     $ 127,063     $ 130,063     $ 133,383     $ 386,744     $ 415,337  
    Fully Taxable Equivalent (“FTE”) Adjustment   5,883       5,859       5,795       5,853       5,911       17,538       18,090  
    Net Interest Income (FTE) (non-GAAP) $ 136,993     $ 134,430     $ 132,858     $ 135,916     $ 139,294     $ 404,282     $ 433,427  
                               
    Average Earning Assets (GAAP) $ 16,990,358     $ 17,013,984     $ 17,123,851     $ 17,222,714     $ 16,947,669     $ 17,042,540     $ 16,913,965  
    Net Interest Margin (GAAP)   3.09 %     3.02 %     2.97 %     3.02 %     3.15 %     3.03 %     3.27 %
    Net Interest Margin (FTE) (non-GAAP)   3.23 %     3.16 %     3.10 %     3.16 %     3.29 %     3.16 %     3.42 %
                                                           
                                                           
     
    RETURN ON TANGIBLE COMMON EQUITY – NON-GAAP
    (Dollars In Thousands) Three Months Ended   Nine Months Ended
      September 30,   June 30,   March 31,   December 31,   September 30,   September 30,   September 30,
        2024       2024       2024       2023       2023       2024       2023  
    Total Average Stockholders’ Equity (GAAP) $ 2,251,547     $ 2,203,361     $ 2,242,139     $ 2,130,993     $ 2,154,232     $ 2,232,419     $ 2,126,005  
    Less: Average Preferred Stock   (25,125 )     (25,125 )     (25,125 )     (25,125 )     (25,125 )     (25,125 )     (25,125 )
    Less: Average Intangible Assets, Net of Tax   (729,581 )     (730,980 )     (732,432 )     (734,007 )     (735,787 )     (730,993 )     (737,476 )
    Average Tangible Common Equity, Net of Tax (Non-GAAP) $ 1,496,841     $ 1,447,256     $ 1,484,582     $ 1,371,861     $ 1,393,320     $ 1,476,301     $ 1,363,404  
                               
    Net Income Available to Common Stockholders (GAAP) $ 48,719     $ 39,456     $ 47,472     $ 42,010     $ 55,898     $ 135,647     $ 179,901  
    Plus: Intangible Asset Amortization, Net of Tax   1,399       1,399       1,546       1,724       1,724       4,345       5,182  
    Tangible Net Income (Non-GAAP) $ 50,118     $ 40,855     $ 49,018     $ 43,734     $ 57,622     $ 139,992     $ 185,083  
                               
    Return on Tangible Common Equity (Non-GAAP)   13.39 %     11.29 %     13.21 %     12.75 %     16.54 %     12.64 %     18.10 %
                                                           
                                                           

    For more information, contact:
    Nicole M. Weaver, Vice President and Director of Corporate Administration
    765-521-7619
    http://www.firstmerchants.com

    SOURCE: First Merchants Corporation, Muncie, Indiana

    The MIL Network –

  • MIL-OSI: 53% of U.S. Tenants Face Housing Affordability Crisis

    Source: GlobeNewswire (MIL-OSI)

    FORT COLLINS, Colo., Oct. 24, 2024 (GLOBE NEWSWIRE) — A recent study from all-in-one landlord software TurboTenant reveals that over half of renters spend more than 30% of their gross income on rent, meaning they are cost burdened. Though classical wisdom dictates spending no more than 30% of gross income on rent, as cited by industry leaders like Business Insider and Nerdwallet, most renters can’t abide by this advice.

    Worse still, 19% of respondents are severely cost burdened, dedicating 50% or more of their income to housing expenses in August 2024. These findings highlight a growing challenge for renters as the average monthly rent has climbed to $1,739 with median rents across the U.S. hitting $2,075, according to Zillow.

    “It’s frustrating that rents keep going up. I’d like to buy a home—the payments would be significantly cheaper than renting—but I can never hope to save up for a down payment with rent taking up such a huge portion of my income!” said Amber H. of Kansas, who reported paying 40-49% of her income in rent.

    To address this mounting issue, TurboTenant partners with Livble, a flexible rent payment solution that empowers renters to take control of their largest expense by breaking it into more affordable installments—while guaranteeing each landlord receives their rent payment on time and in full.

    “With over half of renters cost burdened, it’s essential to provide solutions that benefit both sides of the equation. We’re proud that our partnership with Livble improves renters’ financial security while maintaining financial stability for housing providers,” said Seamus Nally, TurboTenant’s CEO.

    Renters looking to take advantage of TurboTenant and Livble’s partnership should create a free TurboTenant account, then invite their landlord to do the same. Landlords collect rent at no cost through the leading rental property management platform and can easily set up a recurring charge. Then, the tenant should navigate to the “Payments” tab of their account, where eligible renters will see the option to learn more about Livble, and all can set up automatic payments to make rent that much less stressful.

    About TurboTenant
    More than 700,000 independent landlords across the U.S. enjoy TurboTenant’s all-in-one online property management solutions, including rental applications, tenant screening, rent payments, and lease agreements. Please contact press@turbotenant.com or visit turbotenant.com for more information.

    The MIL Network –

  • MIL-OSI Africa: Secretary-General’s remarks to the 16th BRICS Summit [as delivered]

    Source: United Nations – English

    xcellencies, ladies and gentlemen,
     
    I am grateful to participate in the 16th BRICS Summit. 
     
    Collectively, your countries represent nearly half of the world’s population.
     
    And I salute your valuable commitment and support for international problem-solving as clearly reflected in your theme this year.
     
    But no single group and no single country can act alone or in isolation.
     
    It takes a community of nations, working as one global family, to address global challenges.
     
    Challenges like the rising number of conflicts.
     
    The devastation of climate change, pollution and biodiversity loss…
     
    Rising inequalities and lingering poverty and hunger…
     
    A debt crisis that threatens to smother plans for the future of many vulnerable countries… 
     
    The fact that fewer than one-fifth of the Sustainable Development Goals are on-track…
     
    A growing digital divide, and a lack of guardrails for artificial intelligence and other frontier technologies…
     
    And a lack of representation and voice for developing countries at global decision-making tables. From the Security Council to the Bretton-Woods institution and beyond. This must change.
     
    September’s Summit of the Future offered a roadmap for strengthening multilateralism, and advancing peace, sustainable development and human rights.
     
    I see four areas for action.
     
    First — finance.
     
    Today’s international financial system is not offering many vulnerable countries the safety net or level of support they need.
     
    The Pact for the Future calls for accelerating reform of the international financial architecture that is outdated, ineffective and unfair.
     
    And it includes a commitment to move forward with an SDG Stimulus to change the business model to substantially increase the lending capacity of Multilateral Development Banks to developing countries.
     
    To recycle more Special Drawing Rights…
     
    To restructure loans for countries drowning in debt…
     
    And to mobilize more international and domestic resources, public and private, for vital investments in developing countries.
     
    Next year’s Conference on Financing for Development and the Summit on Social Development are two milestones to carry these efforts forward.
     
    We must also recognize the importance of South-South cooperation.
     
    It doesn’t replace the commitments and obligations of developed countries.
     
    But it is providing a growing contribution to supporting developing countries in overcoming obstacles to reaching the SDGs. 
     
    Second — climate.
     
    Every country has committed to limit temperature rise to 1.5 degrees Celsius.
     
    That requires dramatic action to reduce emissions now — with the G20 in the lead.
     
    COP29 is just weeks away. 
     
    That starts the clock for countries to produce new Nationally Determined Contributions plans with 2035 targets that are aligned with the 1.5 degree goal.
     
    COP29 must deliver an ambitious and credible outcome on the new climate finance goal.
     
    Developed countries must also keep promises to double adaptation finance, and ensure meaningful contributions to the Loss and Damage Fund, which was not the case when it was created.
     
    Third — technology.
     
    Every country must be able to access the benefits of technology.
     
    The Global Digital Compact commits to enhanced global cooperation and capacity-building.
     
    It includes the first truly universal agreement on the international governance of Artificial Intelligence to give every country a seat at the AI table.
     
    It calls for an independent international Scientific Panel on AI and initiating a global dialogue on its governance within the United Nations with the participations of all countries.
     
    And it requests options for innovative financing for AI capacity-building in developing countries.
     
    And fourth — peace.
     
    We must strengthen and update the machinery of peace.
     
    This includes reforms to make the United Nations Security Council reflective of today’s world.
     
    The Pact for the Future includes important steps on disarmament — including the first multilateral agreement on nuclear disarmament in more than a decade — and steps that address the weaponization of outer space and the use of lethal autonomous weapons.
     
    Across the board, we need peace.
     
    We need peace in Gaza with an immediate cease-fire, the immediate and unconditional release of all hostages, the effective delivery of humanitarian aid without obstacles, and we need to make irreversible progress to end the occupation and establish the two state solution, as it was recently reaffirmed once again by a UN General Assembly resolution.
     
    We need peace in Lebanon with an immediate cessation of hostilities, moving to the full implementation of Security Council resolution 1701. 
     
    We need peace in Ukraine. A just peace in line with the UN Charter, international law and General Assembly resolutions.
     
    We need peace in Sudan, with all parties silencing their guns and committing to a path towards sustainable peace.
     
    Those were the messages I have delivered to the High-Level segment of the General Assembly in September in New York. Unfortunately, they remain valid here and now.
     
    Everywhere, we must uphold the values of the UN Charter, the rule of law, and the principles of sovereignty, territorial integrity and political independence of all States. 
     
    Excellencies, ladies and gentlemen,
     
    The Summit of the Future charted a course to strengthen multilateralism for global development and security.
     
    Now we must turn words into deeds and we believe BRICS can play a very important role in this direction.
     
    Thank you.

    MIL OSI Africa –

  • MIL-OSI China: BRICS countries enhance cooperation through close economic, trade exchanges

    Source: People’s Republic of China – State Council News

    BEIJING, Oct. 24 — Economic and trade ties among BRICS countries are becoming increasingly close, and China is playing an important role in driving mutually beneficial BRICS cooperation.

    The term BRIC was initially coined in 2001 as a concept referring to the emerging market economies of Brazil, Russia, India and China. With South Africa’s inclusion in 2010, BRICS officially took shape.

    Following last year’s expansion, the BRICS grouping now represents approximately 30 percent of global GDP, nearly half of the world’s population, and one-fifth of global trade. It has become the world’s most important platform for solidarity and cooperation among emerging markets and developing countries.

    The 16th BRICS Summit, held Tuesday to Thursday in Kazan, Russia, has drawn global attention and is believed to bring new economic and trade cooperation opportunities between China and other BRICS nations.

    China’s foreign trade with other BRICS member countries reached 4.62 trillion yuan (648 billion U.S. dollars) in the first nine months of 2024, a year-on-year increase of 5.1 percent, customs data showed.

    The trade growth can be attributed to a high degree of economic complementarity, as well as China’s commitment to high-level opening up and the free trade agreements between China and other BRICS countries, said Hong Yong, a researcher with the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce.

    In the industrial sector, China’s exports of steel and textile raw materials to other BRICS nations grew by 8.6 percent and 13.4 percent year on year in the first three quarters.

    During the same period, China’s exports of intermediate goods such as integrated circuits, tablet display modules and aircraft parts to other BRICS countries achieved double-digit growth, helping other BRICS members boost their emerging industries.

    Trade in agricultural products has also been robust. In the first three quarters, over 80 percent of poultry and frozen pollack and over 50 percent of crabs imported by China came from BRICS members.

    “For BRICS countries, trade cooperation is not only conducive to promoting technological exchanges and innovation but also to bringing more development opportunities for member countries and even the world,” Hong added.

    Regarding the financial sector, the New Development Bank is a flagship project of BRICS cooperation. As the first multilateral development bank established by emerging economies, the Shanghai-headquartered institution provides financing support for infrastructure development, clean energy, environmental protection, and the building of cyber infrastructure across BRICS countries.

    Funding a raft of projects ranging from India’s urban rail to Brazil’s wind power complexes, the bank has cumulatively approved loans of 35 billion U.S. dollars for more than 100 projects to date.

    Building on its commitment to multilateralism, BRICS has taken practical steps to unlock the potential of economic and trade cooperation and create new growth areas. These include policy coordination and joint initiatives to enhance trade and investment opportunities among member states.

    At the 14th BRICS Economic and Foreign Trade Ministers’ Meeting held in Moscow in July, participants agreed to step up exchanges and cooperation in emerging areas such as global value chains, digital technologies and special economic zones, conduct practical cooperation in green product standards, electronic documentation and e-commerce, and strengthen policy exchanges, capacity building and best practice sharing.

    By enhancing economic and trade exchanges, BRICS countries have capitalized on their complementary advantages, serving as an important force to oppose trade protectionism and promote global economic growth, noted Liu Ying, a researcher with the Chongyang Institute for Financial Studies, Renmin University of China.

    MIL OSI China News –

  • MIL-OSI China: BRICS charts path at milestone summit, Xi offers five suggestions

    Source: People’s Republic of China – State Council News

    KAZAN, Russia, Oct. 24 — Heels clicked and shoes shuffled across the media center floors at the BRICS Kazan summit on Wednesday, as journalists from around the world rushed to cover the landmark first in-person summit since the group’s expansion.

    Amid global uncertainties, BRICS embarked on a new chapter, cementing its growing influence on the world stage. Chinese President Xi Jinping, addressing the leaders in an expanded format, put forward five suggestions: building a BRICS committed to peace, innovation, green development, justice, and closer people-to-people exchanges.

    “We must build on this milestone summit to set off anew and forge ahead with one heart and one mind,” Xi said. “China is willing to work with all BRICS countries to open a new horizon in the high-quality development of greater BRICS cooperation.”

    This year’s summit also marked another major progress with the decision to invite a number of nations as partner countries, further advancing the group’s development.

    The growing interest from countries seeking to join BRICS cooperation each year demonstrates that in today’s troubled world, BRICS is important and essential, said Bunn Nagara, director and senior fellow at Belt and Road Initiative Caucus for Asia-Pacific.

    “China, led by President Xi, has contributed significantly to BRICS’ success with a progressive and enlightened approach,” said Nagara.

    During Wednesday’s meetings, leaders exchanged views on BRICS cooperation and key international issues under the theme “Strengthening Multilateralism for Just Global Development and Security,” focusing on global and regional security, sustainable development, climate change, and reforms in global economic governance.

    A major emphasis of the summit was the call for increased funding to support sustainable development in developing countries. Egyptian President Abdel-Fattah al-Sisi said BRICS is set to “strengthen a multipolar international system,” particularly through “innovative and effective” financing for these countries.

    Russian President Vladimir Putin, who chaired the Kazan summit, said that “the trend for the BRICS’ leading role in the global economy will only strengthen.”

    He warned against the ongoing risks from geopolitical tensions and the rise of unilateral sanctions and protectionism, emphasizing “a key task is to promote the use of national currencies to finance trade and investment.”

    Brazilian President Luiz Inacio Lula da Silva, who participated in the summit via video link due to a head injury, echoed this sentiment. “It’s not about replacing our currencies, but we need to work so that the multipolar order we aim for is reflected in the international financial system,” said Lula.

    BRICS has already made strides with the New Development Bank (NDB), headquartered in Shanghai. The BRICS countries agreed on Wednesday to support the NDB in implementing its general strategy for 2022-2026 and in expanding local currency financing.

    In a declaration issued at the 16th BRICS Summit, they also agreed to jointly build the NDB into a new type of multilateral development bank for the 21st century, support its further expansion of membership, and expedite the review of membership applications from BRICS countries in accordance with its general strategy and related policies.

    The BRICS countries are also encouraged to strengthen financial cooperation and promote local currency settlement, according to the declaration.

    During the summit, leaders also emphasized the need for a fairer global order for the Global South. South African President Cyril Ramaphosa said that BRICS is an inclusive formation capable of changing the trajectory of the Global South. “To do this we must realize the full potential of our economic partnership, to ensure sustainable development for all and not just for some,” he said.

    “The period of unilateralism is coming to an end,” added Iranian President Masoud Pezeshkian, calling for a more equitable global system.

    Several speakers also highlighted the need for differentiated responsibilities in addressing climate change, urging that developing nations’ emissions reduction efforts should align with their capacities.

    BRICS, initially known as “BRIC” when it was coined in 2001 by Jim O’Neill, former chief economist at Goldman Sachs, originally represented emerging market economies of Brazil, Russia, India, and China. South Africa joined in 2010, officially forming BRICS.

    In a recent interview with Xinhua, O’Neill acknowledged the need for policymakers to collaborate in creating an optimal system that benefits all. “I think as we pass through time, we will find a new equilibrium where countries will be more at ease with what other countries are doing,” he said.

    Other than the new full members joining on Jan. 1, 2024, over 30 countries, including Thailand, Malaysia, Türkiye and Azerbaijan, have either formally applied for or expressed interest in BRICS membership. Many other developing countries are seeking deeper cooperation with the group.

    Observers view BRICS as a vital platform for developing countries to pursue growth. Ahmed Al-Ali, a political and strategic researcher at the Gulf Research Center in Dubai, noted that BRICS aims to foster a more equitable, effective, and rational international system.

    It will play a crucial role in promoting development and growth opportunities for Global South countries while ensuring the sustainability of economic and social progress, said Al-Ali.

    Echoing that view, Sithembiso Bhengu, a senior research fellow with the Sociology Department, University of Johannesburg, said, “The BRICS mechanism presents real possibilities for making the globe a fairer community of nations, with possibilities for mutual support and cooperation towards our respective goals in modernization and development.”

    MIL OSI China News –

  • MIL-OSI USA: ICYMI: NJBPU Announces Adoption of Minimum Filing Requirements for Medium-and-Heavy-Duty Electric Vehicles

    Source: US State of New Jersey

    TRENTON – The New Jersey Board of Public Utilities (NJBPU) announced on Wednesday the adoption of minimum filing requirements (MFRs) that direct the state’s investor-owned electric distribution companies (EDCs) to propose programs to expand charging access for medium-and-heavy-duty (MHD) electric vehicles (EVs) and fleets. The expansion of New Jersey’s EV charging ecosystem will catalyze the ongoing clean transition of the state’s fleet, yielding significant greenhouse gas (GHG) emissions reductions within the state’s transportation sector and improving localized air quality.

    New Jersey’s transportation sector accounts for nearly 40% of the state’s net GHG emissions, with MHD trucks and busses emitting an outsized share of those emissions. Low-income neighborhoods and communities of color are more likely to be exposed to these pollutants due to their disproportionate proximity to freight corridors, ports, and distribution centers. The adopted MFRs allow utilities to provide additional “bonus” incentives for overburdened municipalities and overburdened communities adjacent to Freight EV Corridors, as well as small businesses.

    “Today’s announcement by the BPU is a key part of my Administration’s whole-of-government approach to reducing harmful emissions from the transportation sector that negatively impact the health of our residents,” said Governor Phil Murphy. “Along with New Jersey’s action on Advanced Clean Trucks and the Clean Corridors Coalition, we are building a robust charging infrastructure for a clean transportation future.”

    “Under Governor Murphy’s leadership and in coordination with New Jersey’s EDCs, the NJBPU remains at the forefront of advancing smart, clean transportation initiatives and infrastructure that provide considerable health and environmental benefits,” said NJBPU President Christine Guhl-Sadovy. “These benefits are especially vital to the overburdened communities that have borne the brunt of air pollution and its health effects for far too long.”

    The MFRs will allow EDCs to propose incentives for the “Make Ready” chargers for public-serving fleets and certain private fleets located in or serving overburdened municipalities and overburdened communities adjacent to Freight EV Corridors.

    To ensure that MHD EV charging is built in scalable ways that take capacity into account, the MFRs will connect applicants to utilities and require that utilities create and update capacity maps demonstrating where the grid is capable of supporting MHD charging. In addition, they provide the framework for proactive planning for public charging stations over 500 kW, fleets, and multi-unit dwellings. These planning and technical services will help ensure that these projects are connecting with utilities early and often, allowing for better grid planning and accelerating this critical piece of the 2019 Energy Master Plan.

    The MFRs also require that EDCs create managed charging programs to balance the demand on the grid and encourage users to charge at night.

    The adopted MFRs build upon the Murphy Administration’s ongoing efforts to promote clean transportation and expand EV charging infrastructure across the state. EDCs will be required to file their proposed programs with the Board within 120 days of the Order.

    In July, the U.S. Environmental Protection Agency announced the selection of the Clean Corridor Coalition, led by the New Jersey Department of Environmental Protection, to receive a nearly $250 million Climate Pollution Reduction Grant. The Clean Corridor Coalition – which includes the Connecticut Department of Energy and Environmental Protection, the Delaware Department of Transportation, and the Maryland Departments of the Environment and Transportation – aims to deploy EV charging infrastructure for commercial zero-emission MHD vehicles along the Interstate-95 freight corridor.

    On Wednesday, the U.S. EPA and NJDEP announced the arrival of this historic funding at the Vince Lombardi Service Area in Ridgefield, New Jersey.

    About New Jersey’s Clean Energy Program (NJCEP)
    NJCEP, established on January 22, 2003, in accordance with the Electric Discount and Energy Competition Act (EDECA), provides financial and other incentives to the State’s residential customers, businesses and schools that install high-efficiency or renewable energy technologies, thereby reducing energy usage, lowering customers’ energy bills and reducing environmental impacts. The program is authorized and overseen by the New Jersey Board of Public Utilities (NJBPU), and its website is www.NJCleanEnergy.com.

    About the New Jersey Board of Public Utilities (NJBPU) 
    NJBPU is a state agency and regulatory authority mandated to ensure safe, adequate and proper utility services at reasonable rates for New Jersey customers. Critical services regulated by NJBPU include natural gas, electricity, water, wastewater, telecommunications and cable television. The Board has general oversight and responsibility for monitoring utility service, responding to consumer complaints, and investigating utility accidents. To find out more about NJBPU, visit our website at www.nj.gov/bpu.

    MIL OSI USA News –

  • MIL-OSI USA: Helping Students Enroll at Public Colleges and Universities

    Source: US State of New York

    Governor Kathy Hochul today announced the launch of the SUNY Top 10% Promise Program, creating a direct pathway for the highest-achieving New York high school seniors to gain admission and enroll at select SUNY colleges and universities. Governor Hochul first announced this plan as a part of her 2024 State of the State to help more New York students benefit from SUNY’s unparalleled combination of accessibility, affordability, and academic excellence.

    “Access to higher education has the potential to transform New Yorkers’ lives and change the trajectory of a student’s life,” Governor Hochul said. “Offering New York students graduating in the top 10 percent of their class direct admission to SUNY campuses will help reduce barriers to higher education while ensuring our students can continue their education and pursue their dreams right here in New York State.”

    The Top 10% Promise is a direct-admissions program that automatically grants acceptance to graduating high school students whose GPAs are in the top 10 percent of their class and meet specific academic readiness criteria to at least one selective, world-class SUNY campus. The program will take effect for select high school seniors preparing to enroll for the Fall 2025 semester.

    The nine initial participating campuses are: University at Albany, University at Buffalo, SUNY College of Environmental Science and Forestry, SUNY Geneseo, SUNY New Paltz, SUNY Oneonta, SUNY Polytechnic Institute, Purchase College, and Stony Brook University.

    Students in all New York State school districts will be eligible to participate when the SUNY Top 10% Promise is fully in place. In the first year, 68 school districts (and individual charter schools) from across the state were invited to participate based on serving rural, urban, and suburban communities with high levels of adversity or enrolling a significant share of students from low-income backgrounds. The initial participating high schools are representative of the diversity of New York State.

    This builds on Governor Hochul’s continued efforts to expand access to higher education and make college more affordable. Earlier this month, Governor Hochul announced that following the increase in income thresholds secured in the FY25 Enacted Budget, more than 40,000 newly eligible New York State students have already submitted Tuition Assistance Program applications for the 2024-25 academic year. Additionally, the Governor announced last week that SUNY, CUNY and over 50 private colleges and universities throughout New York State have come together to offer free application opportunities for high school seniors starting this week.

    There is substantial evidence that high-achieving, low-income students apply to, and end up attending, less selective postsecondary institutions at higher rates than their higher income peers. Several states, including Texas and California, also offer direct admissions to the highest-achieving students, and have found this policy advances equity in their university systems. In California, for example, where students must also complete a college-ready curriculum to be eligible for the UC system, the admissions guarantee increased enrollment in selective universities for underrepresented students, increased graduation rates, and increased post-graduation earnings. 

    SUNY Chancellor John B. King Jr. said, “There is a place at SUNY for every New Yorker, and The SUNY Top 10% Promise will make it even easier for our highest-achieving high school students – particularly those from low-income backgrounds – to discover SUNY’s extraordinary value and academic excellence. With thanks to Governor Hochul for her leadership, this new direct admission program will advance educational equity and open the doors to higher education even wider.”

    State Senator Toby Ann Stavisky said, “Students who graduate in the top 10% of their high school class have demonstrated the ability to attend college. These are the future leaders of New York, and by offering direct admission we can help ensure they get the quality education they need to reach their full potential. This program will provide more opportunities for deserving students by providing a seamless entry to SUNY.”

    Assemblymember Patricia Fahy said, “The SUNY Top 10% program will provide top-performing students at select school districts direct admission top SUNY institutions they might not otherwise apply to. This is part of our ongoing commitment to revitalizing higher education and expanding access for more high school students. Coupled with our investments in Turning on the TAP in this year’s state budget, we’re paving the way for more students to finally achieve their dream of securing a higher education.”

    The Institute for College Access & Success Senior Director of New York Policy and Advocacy at Kirsten Keefe, J.D. said, “TICAS applauds Governor Hochul and Chancellor King for their leadership, helping to ensure that students across New York understand that college is a viable option for them. Alongside existing efforts to address financial need and offer students the supports they need to graduate, today’s announcement demonstrates how SUNY is helping to advance racial equity and economic mobility in the Empire State.”

    President of Complete College America Yolanda Watson Spiva said, “Among the first steps to earning a degree or credential of value is ensuring that every student has a clear path to and through higher education. The State of New York and SUNY, a committed and active member of the Complete College America Alliance since joining just under a year ago, have demonstrated their unwavering commitment to increasing the number of New Yorkers completing college, regardless of economic status. The Top 10% Promise Program is an important part of the larger fabric of efforts the system is making to create viable postsecondary pathways for every learner in the state.”

    Northeast Regional Director at Young Invincibles Sean Miller said, “The SUNY Top 10% Promise Program provides a vital opportunity for promising students, especially those from low-income backgrounds, to enroll and thrive at SUNY campuses. Using cumulative GPA, the most accurate measure of college preparedness, and automatically accepting students removes major financial and administrative barriers to being accepted at these superb state schools. Young Invincibles NY and our student network applaud SUNY Chancellor John B. King Jr. and Governor Hochul for launching this initiative—a significant milestone in expanding higher education access, equity, and economic mobility in New York.”

    About The State University of New York

    The State University of New York is the largest comprehensive system of higher education in the United States, and more than 95 percent of all New Yorkers live within 30 miles of any one of SUNY’s 64 colleges and universities. Across the system, SUNY has four academic health centers, five hospitals, four medical schools, two dental schools, a law school, the country’s oldest school of maritime, the state’s only college of optometry, and manages one US Department of Energy National Laboratory. In total, SUNY serves about 1.4 million students amongst its entire portfolio of credit- and non-credit-bearing courses and programs, continuing education, and community outreach programs. SUNY oversees nearly a quarter of academic research in New York. Research expenditures system-wide are nearly $1.1 billion in fiscal year 2023, including significant contributions from students and faculty. There are more than three million SUNY alumni worldwide, and one in three New Yorkers with a college degree is a SUNY alum. To learn more about how SUNY creates opportunities, visit their website here.

    MIL OSI USA News –

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

    Source: GlobeNewswire (MIL-OSI)

    GETTYSBURG, Pa., Oct. 24, 2024 (GLOBE NEWSWIRE) — ACNB Corporation (NASDAQ: ACNB) (“ACNB” or the “Corporation”), financial holding company for ACNB Bank and ACNB Insurance Services, Inc., announced net income of $7.2 million, or $0.84 diluted earnings per share, for the three months ended September 30, 2024 compared to net income of $9.0 million, or $1.06 diluted earnings per share, for the three months ended September 30, 2023 and net income of $11.3 million, or $1.32 diluted earnings per share, for the three months ended June 30, 2024. Financial results for the three months ended September 30, 2024 were impacted by $1.1 million in merger-related expense due to the pending acquisition of Traditions Bancorp, Inc. Financial results for the three month period ended June 30, 2024 were impacted by a $3.2 million reversal of the provisions for credit losses and unfunded commitments.

    2024 Third Quarter Highlights

    • Return on average assets was 1.17% and return on average equity was 9.63% for the three months ended September 30, 2024. Core return on average assets1 was 1.32% and core return on average equity1 was 10.81% for the three months ended September 30, 2024.
    • Fully taxable equivalent (“FTE”) net interest margin was 3.77% for the three months ended September 30, 2024 compared to 3.82% for the three months ended June 30, 2024 and 4.01% for the three months ended September 30, 2023.
    • Total non-performing loans to total loans, net of unearned income, was 0.39% at September 30, 2024 compared to 0.19% at June 30, 2024 and 0.22% at September 30, 2023. The increase in non-performing loans to total loans, net of unearned income, for the three months ended September 30, 2024 was the result of one long-standing commercial relationship in the healthcare industry, comprised of both owner-occupied commercial real estate and commercial and industrial loans, that moved into non-performing loan status during the current quarter.
    • Net charge-offs to average loans outstanding (annualized) were 0.01% for the three months ended September 30, 2024 and 0.00% for the three months ended June 30, 2024 compared to 0.03% for the three months ended September 30, 2023.
    • Tangible common equity to tangible assets ratio1 of 10.74% at September 30, 2024 compared to 9.84% at June 30, 2024 and 8.65% at September 30, 2023. The net unrealized loss on the available for sale securities portfolio was $36.8 million at September 30, 2024 compared to a net unrealized loss of $52.7 million at June 30, 2024 and a net unrealized loss of $75.2 million at September 30, 2023.
    • ACNB and ACNB Bank capital levels remain well in excess of ACNB’s internal minimums and those required to be categorized as a well-capitalized institution by our bank regulators.

    “We are once again pleased to share strong operating results for the third quarter of 2024. Our continued focus on profitability and asset quality as evidenced by our return on average assets and return on average equity are a testament to the continued focus on our strategic objectives,” said James P. Helt, ACNB Corporation President and Chief Executive Officer.

    “During the third quarter, we were also pleased to announce the strategic acquisition of Traditions Bancorp, Inc. This acquisition will create the largest community bank in Pennsylvania with assets less than $5 billion and enhances our presence in York County and expands our branch footprint in neighboring Lancaster County. We are excited to welcome Traditions as ACNB continues to expand our market presence. This strategic acquisition will complement our current operations with profitable growth opportunities in adjacent markets while contributing to the Corporation’s established commitment of enhancing long-term shareholder value.”

    Mr. Helt continued, “As we look forward to the remainder of 2024 and the start of a new year in 2025, we are excited that our strong foundation based on community banking principles combined with the growth opportunities now before us through our strategic planning objectives will enable us to continue to deliver on our commitment to our stakeholders.”

    Net Interest Income and Margin

    Net interest income for the three months ended September 30, 2024 totaled $20.9 million, a decrease of $803 thousand, or 3.7%, compared to the three months ended September 30, 2023 driven by a decrease in the FTE net interest margin over the same period. The FTE net interest margin for the three months ended September 30, 2024 was 3.77%, a decrease of 24 basis points from 4.01% for the three months ended September 30, 2023. The decrease in FTE net interest margin was driven primarily by an increase in long-term borrowings and promotional time deposit balances and costs. Total average borrowings increased $132.5 million for the three months ended September 30, 2024 compared to the same period in September 30, 2023. The average rate paid on total borrowings was 4.31% for the three months ended September 30, 2024, an increase of 48 basis points from the three months ended September 30, 2023. Total average interest-bearing deposits decreased $54.4 million, or 3.9%, for the three months ended September 30, 2024 compared to September 30, 2023; however, average time deposit balances increased $45.9 million due to ongoing promotions. The average rate paid on interest-bearing deposits was 0.92% for the three months ended September 30, 2024, an increase of 66 basis points from the three months ended September 30, 2023.

    Net interest income for the three months ended September 30, 2024 totaled $20.9 million, a decrease of $22 thousand, or 0.1%, compared to $21.0 million for the three months ended June 30, 2024 driven by a decrease in the FTE net interest margin over the same period. The FTE net interest margin for the three months ended September 30, 2024 decreased 5 basis points from 3.82% for the three months ended June 30, 2024. The decrease in FTE net interest margin was driven primarily by the recognition of nonaccrual interest income related to a specific large relationship during the three months ended June 30, 2024 and increases in the cost of average interest-bearing deposits during the three months ended September 30, 2024. Excluding nonaccrual interest income related to the payoff of a specific large relationship, the FTE net interest margin was 3.79% for the three months ended June 30, 2024. The average rate paid on interest-bearing deposits was 0.92% for the three months ended September 30, 2024, an increase of 13 basis points from the three months ended June 30, 2024.

    Noninterest Income

    Noninterest income for the three months ended September 30, 2024 was $6.8 million, an increase of $536 thousand, or 8.5%, from the three months ended September 30, 2023. Wealth management income for the three months ended September 30, 2024 was $1.2 million, an increase of $235 thousand from the three months ended September 30, 2023 driven primarily by portfolio market appreciation, estate income and new business generation. Insurance commissions for the three months ended September 30, 2024 were $2.8 million, an increase of $158 thousand from the three months ended September 30, 2023 driven primarily by growth in commissions on policy renewals and new business in the current quarter. Gain from mortgage loans held for sale totaled $112 thousand for the three months ended September 30, 2024 compared to none for the three months ended September 30, 2023.

    Noninterest income for the three months ended September 30, 2024 increased $406 thousand, or 6.3%, from the three months ended June 30, 2024. The increase was driven primarily by increases in wealth management income driven by higher estate income and other income driven by annual check ordering incentives received during the three months ended September 30, 2024. Additionally, there was a higher volume of mortgages sold in the current quarter, which resulted in a higher gain from mortgage loans held for sale for the three months ended September 30, 2024 compared to the three months ended June 30, 2024.

    Noninterest Expense

    Noninterest expense for the three months ended September 30, 2024 was $18.2 million, an increase of $1.9 million, or 11.7%, from the three months ended September 30, 2023. The increase was driven primarily by merger-related and salaries and employee benefits expenses. The increase in merger-related expense was driven primarily by professional service expenses incurred for the Traditions acquisition and totaled $1.1 million for the three months ended September 30, 2024. Salaries and employee benefits expense increased $948 thousand driven primarily by $682 thousand in higher employee health insurance expense and $273 thousand higher base wages. In addition, equipment expense increased $144 thousand driven primarily by higher core processing expenses and incremental purchases of office equipment. Partially offsetting these increases, professional services decreased $208 thousand for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 driven primarily by lower recruiting expenses for talent acquisition and consulting expenses. Marketing and corporate relations declined $60 thousand in the current quarter primarily due to rebranding expenses incurred for the three months ended September 30, 2023.

    Noninterest expense for the three months ended September 30, 2024 increased $1.9 million, or 11.3%, from the three months ended June 30, 2024. The increase was driven primarily by merger-related and salaries and employee benefits expenses. Merger-related expense totaled $1.1 million for the three months ended September 30, 2024 compared to $23 thousand for the three months ended June 30, 2024. Salaries and employee benefits expense increased $591 thousand during the three months ended September 30, 2024 compared to the three months ended June 30, 2024 driven primarily by higher employee health insurance expense of $519 thousand. Additionally, equipment expense increased $128 thousand driven primarily by higher core processing and software maintenance expenses coupled with incremental purchases of office equipment. Professional services expense decreased $120 thousand during the three months ended September 30, 2024 compared to the three months ended June 30, 2024 driven primarily by lower transfer agent and audit expenses.

    Loans and Asset Quality

    Total loans outstanding were $1.68 billion at September 30, 2024, a decrease of $2.5 million, or 0.1%, from June 30, 2024 and an increase of $61.1 million, or 3.8%, from September 30, 2023. The decrease from June 30, 2024 was driven primarily by real estate construction. The increase from September 30, 2023 was driven primarily by growth in the commercial real estate portfolio in our core markets. Growth in the commercial real estate portfolio was spread throughout the Bank’s geographic footprint and across various property types. The commercial real estate portfolio grew $59.2 million, or 6.6%, in 2024. The collateral for these loans is primarily spread across our Pennsylvania and Maryland market areas. Despite the intense competition in the Corporation’s market areas, management continues to focus on asset quality and disciplined underwriting standards in the loan origination process.

    Asset quality metrics continue to be stable. The provision for credit losses was $81 thousand and the provision for unfunded commitments was $40 thousand for the three months ended September 30, 2024 compared to a reversal to the provision for credit losses of $3.0 million and a reversal to the provision for unfunded commitments of $259 thousand for the three months ended June 30, 2024. For the three months ended September 30, 2023, there was a provision for credit losses of $250 thousand and a $171 thousand reversal to the provision for unfunded commitments. The increase in the provision for credit losses and unfunded commitments for the three months ended September 30, 2024 compared to the prior quarter was driven primarily by a $3.2 million reversal of the provision for credit losses and unfunded commitments in the prior quarter and one long-standing commercial relationship in the healthcare industry, comprised of both owner-occupied commercial real estate and commercial and industrial loans, that moved into non-performing loan status during the current quarter.

    Non-performing loans were $6.6 million, or 0.39%, of total loans, net of unearned income, at September 30, 2024 compared to $3.1 million, or 0.19%, of total loans at June 30, 2024 and $3.6 million, or 0.22%, of total loans at September 30, 2023. The increase in non-performing loans at September 30, 2024 compared to the prior quarter was primarily the result of one long-standing commercial relationship in the healthcare industry, comprised of both owner-occupied commercial real estate and commercial and industrial loans, that moved into non-performing loan status during the current quarter. Annualized net charge-offs for the three months ended September 30, 2024 were 0.01% of total average loans compared to 0.00% and 0.03% for the three months ended June 30, 2024 and September 30, 2023, respectively.

    Deposits and Borrowings

    Deposits totaled $1.79 billion at September 30, 2024, a decrease of $47.3 million, or 2.6%, since June 30, 2024 and a decrease of $160.0 million, or 8.2%, from September 30, 2023. Included in total deposits were $1.33 billion interest-bearing deposits at September 30, 2024 which decreased $31.0 million, or 2.3%, from June 30, 2024 and decreased $58.0 million, or 4.2%, from September 30, 2023. Time deposits, included in interest-bearing deposits, increased $1.3 million, or 0.5%, and $43.5 million, or 20.4%, since June 30, 2024 and September 30, 2023, respectively. Total noninterest-bearing deposits were $463.5 million at September 30, 2024 compared to $479.7 million at June 30, 2024 and $565.5 million at September 30, 2023.

    Total borrowings were $293.1 million at September 30, 2024, a decrease of $11.2 million, or 3.7%, compared to June 30, 2024 and an increase of $139.7 million, or 91.1%, compared to September 30, 2023. A $25.0 million short-term borrowing was paid off during the quarter. The average rate on total borrowings was 4.31% for the three months ended September 30, 2024 compared to 4.48% for the three months ended June 30, 2024 and 3.83% for the three months ended September 30, 2023.

    Stockholders’ Equity, Dividends and Share Repurchases

    Total stockholders’ equity was $306.8 million at September 30, 2024 compared to $289.3 million at June 30, 2024 and $255.6 million at September 30, 2023. Tangible book value2 per share was $29.90, $27.82 and $23.80 at September 30, 2024, June 30, 2024 and September 30, 2023, respectively.

    As announced on Form 8-K on October 16, 2024, the Board of Directors approved and declared a regular quarterly cash dividend of $0.32 per share of ACNB Corporation common stock payable on December 13, 2024, to shareholders of record as of November 29, 2024. This per share amount reflects a $0.02, or 6.7%, increase over the same quarter of 2023.

    ACNB repurchased 2,642 shares of ACNB common stock during the three months ended September 30, 2024.

    About ACNB Corporation

    ACNB Corporation, headquartered in Gettysburg, PA, is the $2.42 billion financial holding company for the wholly-owned subsidiaries of ACNB Bank, Gettysburg, PA, and ACNB Insurance Services, Inc., Westminster, MD. Originally founded in 1857, ACNB Bank serves its marketplace with banking and wealth management services, including trust and retail brokerage, via a network of 27 community banking offices and two loan offices located in the Pennsylvania counties of Adams, Cumberland, Franklin, Lancaster and York and the Maryland counties of Baltimore, Carroll and Frederick. ACNB Insurance Services, Inc. is a full-service insurance agency with licenses in 46 states. The agency offers a broad range of property, casualty, health, life and disability insurance serving personal and commercial clients through office locations in Westminster and Jarrettsville, MD, and Gettysburg, PA. For more information regarding ACNB Corporation and its subsidiaries, please visit investor.acnb.com.

    SAFE HARBOR AND FORWARD-LOOKING STATEMENTS – Should there be a material subsequent event prior to the filing of the Quarterly Report on Form 10-Q with the Securities and Exchange Commission, the financial information reported in this press release is subject to change to reflect the subsequent event. In addition to historical information, this press release may contain forward-looking statements. Examples of forward-looking statements include, but are not limited to, (a) projections or statements regarding future earnings, expenses, net interest income, other income, earnings or loss per share, asset mix and quality, growth prospects, capital structure, and other financial terms, (b) statements of plans and objectives of Management or the Board of Directors, and (c) statements of assumptions, such as economic conditions in the Corporation’s market areas. Such forward-looking statements can be identified by the use of forward-looking terminology such as “believes”, “expects”, “may”, “intends”, “will”, “should”, “anticipates”, or the negative of any of the foregoing or other variations thereon or comparable terminology, or by discussion of strategy. Forward-looking statements are subject to certain risks and uncertainties such as national, regional and local economic conditions, competitive factors, and regulatory limitations. Actual results may differ materially from those projected in the forward-looking statements. Such risks, uncertainties, and other factors that could cause actual results and experience to differ from those projected include, but are not limited to, the following: short-term and long-term effects of inflation and rising costs on the Corporation, customers and economy; banking instability caused by bank failures and continuing financial uncertainty of various banks which may adversely impact the Corporation and its securities and loan values, deposit stability, capital adequacy, financial condition, operations, liquidity, and results of operations; effects of governmental and fiscal policies, as well as legislative and regulatory changes; effects of new laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) and their application with which the Corporation and its subsidiaries must comply; impacts of the capital and liquidity requirements of the Basel III standards; effects of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Financial Accounting Standards Board and other accounting standard setters; ineffectiveness of the business strategy due to changes in current or future market conditions; future actions or inactions of the United States government, including the effects of short-term and long-term federal budget and tax negotiations and a failure to increase the government debt limit or a prolonged shutdown of the federal government; effects of economic conditions particularly with regard to the negative impact of any pandemic, epidemic or health-related crisis and the responses thereto on the operations of the Corporation and current customers, specifically the effect of the economy on loan customers’ ability to repay loans; effects of competition, and of changes in laws and regulations on competition, including industry consolidation and development of competing financial products and services; inflation, securities market and monetary fluctuations; risks of changes in interest rates on the level and composition of deposits, loan demand, and the values of loan collateral, securities, and interest rate protection agreements, as well as interest rate risks; difficulties in acquisitions and integrating and operating acquired business operations, including information technology difficulties; challenges in establishing and maintaining operations in new markets; effects of technology changes; effects of general economic conditions and more specifically in the Corporation’s market areas; failure of assumptions underlying the establishment of reserves for credit losses and estimations of values of collateral and various financial assets and liabilities; acts of war or terrorism or geopolitical instability; disruption of credit and equity markets; ability to manage current levels of impaired assets; loss of certain key officers; ability to maintain the value and image of the Corporation’s brand and protect the Corporation’s intellectual property rights; continued relationships with major customers; and, potential impacts to the Corporation from continually evolving cybersecurity and other technological risks and attacks, including additional costs, reputational damage, regulatory penalties, and financial losses. Management considers subsequent events occurring after the balance sheet date for matters which may require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of the Corporation’s consolidated financial statements when filed with the SEC. Accordingly, the financial information in this announcement is subject to change. We caution readers not to place undue reliance on these forward-looking statements. They only reflect Management’s analysis as of this date. The Corporation does not revise or update these forward-looking statements to reflect events or changed circumstances. Please carefully review the risk factors described in other documents the Corporation files from time to time with the SEC, including the Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Please also carefully review any Current Reports on Form 8-K filed by the Corporation with the SEC.

    ACNB #2024-17
    October 24, 2024

     
    ACNB Corporation Financial Highlights
    Selected Financial Data by Respective Quarter End
    (Unaudited)
                       
    (Dollars in thousands, except per share data) September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023   September 30, 2023
    BALANCE SHEET DATA                  
    Assets $ 2,420,914     $ 2,457,753     $ 2,414,288     $ 2,418,847     $ 2,388,522  
    Investment securities   483,604       483,868       490,626       517,221       501,063  
    Total loans, net of unearned income   1,677,112       1,679,600       1,664,980       1,627,988       1,615,966  
    Allowance for credit losses   (17,214 )     (17,162 )     (20,172 )     (19,969 )     (19,264 )
    Deposits   1,791,317       1,838,588       1,835,224       1,861,813       1,951,359  
    Allowance for unfunded commitments   1,349       1,310       1,569       1,719       1,962  
    Borrowings   293,091       304,286       272,605       252,174       153,388  
    Stockholders’ equity   306,755       289,331       279,920       277,461       255,638  
    INCOME STATEMENT DATA                  
    Interest and dividend income $ 27,241     $ 26,869     $ 25,974     $ 25,284     $ 24,234  
    Interest expense   6,299       5,905       5,381       3,791       2,489  
    Net interest income   20,942       20,964       20,593       21,493       21,745  
    Provision for (reversal of ) credit losses   81       (2,990 )     223       786       250  
    Provision for (reversal of) unfunded commitments   40       (259 )     (151 )     (242 )     (171 )
    Net interest income after provisions for credit losses and unfunded commitments   20,821       24,213       20,521       20,949       21,666  
    Noninterest income   6,833       6,427       5,667       970       6,297  
    Noninterest expenses   18,244       16,391       17,662       17,173       16,336  
    Income before income taxes   9,410       14,249       8,526       4,746       11,627  
    Provision for income taxes   2,206       2,970       1,758       649       2,583  
    Net income $ 7,204     $ 11,279     $ 6,768     $ 4,097     $ 9,044  
    PROFITABILITY RATIOS                  
    Total loans, net of unearned income to deposits   93.62 %     91.35 %     90.72 %     87.44 %     82.81 %
    Return on average assets (annualized)   1.17       1.86       1.12       0.68       1.52  
    Return on average equity (annualized)   9.63       16.12       9.76       6.09       13.84  
    Efficiency ratio3   60.56       58.61       66.18       62.48       56.97  
    FTE Net interest margin   3.77       3.82       3.77       3.93       4.01  
    Yield on average earning assets   4.90       4.89       4.74       4.62       4.46  
    Yield on investment securities   2.59       2.65       2.70       2.36       2.24  
    Yield on total loans   5.56       5.53       5.37       5.29       5.16  
    Cost of funds   1.19       1.12       1.02       0.71       0.47  
    PER SHARE DATA                  
    Diluted earnings per share $ 0.84     $ 1.32     $ 0.80     $ 0.48     $ 1.06  
    Cash dividends paid per share   0.32       0.32       0.30       0.30       0.28  
    Tangible book value per share3   29.90       27.82       26.70       26.44       23.80  
    Tangible book value per share3 (excluding AOCI)4   33.87       33.28       32.21       31.74       31.43  
    CAPITAL RATIOS5                  
    Tier 1 leverage ratio   12.46 %     12.25 %     11.91 %     11.57 %     11.97 %
    Common equity tier 1 ratio   16.07       15.78       15.40       15.16       15.30  
    Tier 1 risk based capital ratio   16.36       16.07       15.69       15.45       15.59  
    Total risk based capital ratio   18.15       17.86       17.68       17.41       17.49  
    CREDIT QUALITY                  
    Net charge-offs to average loans outstanding (annualized)   0.01 %     0.00 %     0.00 %     0.02 %     0.03 %
    Total non-performing loans to total loans, net of unearned income6   0.39       0.19       0.24       0.26       0.22  
    Total non-performing assets to total assets7   0.29       0.14       0.18       0.19       0.17  
    Allowance for credit losses to total loans, net of unearned income   1.03       1.02       1.21       1.23       1.19  
                                           
     
    Consolidated Balance Sheet
    (Unaudited)
                 
    (Dollars in thousands, except per share data)   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    ASSETS            
    Cash and due from banks   $ 24,636     $ 26,681     $ 17,395  
    Interest-bearing deposits with banks     33,456       59,593       35,740  
    Total Cash and Cash Equivalents     58,092       86,274       53,135  
    Equity securities with readily determinable fair values     947       919       918  
    Investment securities available for sale, at estimated fair value     418,079       418,364       425,114  
    Investment securities held to maturity, at amortized cost (fair value $59,038, $57,026, and $58,084)     64,578       64,585       64,594  
    Loans held for sale     1,080       1,801       88  
    Total loans, net of unearned income     1,677,112       1,679,600       1,664,980  
    Less: Allowance for credit losses     (17,214 )     (17,162 )     (20,172 )
    Loans, net     1,659,898       1,662,438       1,644,808  
    Premises and equipment, net     25,542       25,760       25,916  
    Right of use asset     2,110       2,278       2,447  
    Restricted investment in bank stocks     10,853       11,853       10,877  
    Investment in bank-owned life insurance     81,344       80,841       80,348  
    Investments in low-income housing partnerships     909       940       971  
    Goodwill     44,185       44,185       44,185  
    Intangible assets, net     8,142       8,446       8,761  
    Foreclosed assets held for resale     406       406       467  
    Other assets     44,749       48,663       51,659  
    Total Assets   $ 2,420,914     $ 2,457,753     $ 2,414,288  
                 
    LIABILITIES AND STOCKHOLDERS’ EQUITY            
    Deposits:            
    Noninterest-bearing   $ 463,501     $ 479,726     $ 499,583  
    Interest-bearing     1,327,816       1,358,862       1,335,641  
    Total Deposits     1,791,317       1,838,588       1,835,224  
    Short-term borrowings     37,769       48,974       17,303  
    Long-term borrowings     255,322       255,312       255,302  
    Lease liability     2,110       2,278       2,447  
    Allowance for unfunded commitments     1,349       1,310       1,569  
    Other liabilities     26,292       21,960       22,523  
    Total Liabilities     2,114,159       2,168,422       2,134,368  
                 
    Stockholders’ Equity:            
    Preferred Stock, $2.50 par value; 20,000,000 shares authorized; no shares outstanding at September 30, 2024, June 30, 2024 and March 31, 2024     —       —       —  
    Common stock, $2.50 par value; 20,000,000 shares authorized; 8,940,133, 8,934,495, and 8,928,441 shares issued; 8,548,625, 8,545,629, and 8,539,575 shares outstanding at September 30, 2024, June 30, 2024 and March 31, 2024, respectively     22,344       22,330       22,315  
    Treasury stock, at cost; 391,508, at September 30, 2024, and 388,866 at both June 30, 2024 and March 31, 2024     (11,203 )     (11,101 )     (11,101 )
    Additional paid-in capital     98,697       98,230       97,818  
    Retained earnings     230,752       226,271       217,712  
    Accumulated other comprehensive loss     (33,835 )     (46,399 )     (46,824 )
    Total Stockholders’ Equity     306,755       289,331       279,920  
    Total Liabilities and Stockholders’ Equity   $ 2,420,914     $ 2,457,753     $ 2,414,288  
                             
     
    Consolidated Income Statements
    (Unaudited)
           
      Three Months Ended
    September 30,    		   Nine Months Ended
    September 30,
    (Dollars in thousands, except per share data) 2024
    		   2023   2024   2023
    INTEREST AND DIVIDEND INCOME              
    Loans, including fees              
    Taxable $ 23,108     $ 20,285     $ 67,253     $ 58,130  
    Tax-exempt   311       361       943       1,069  
    Investment securities:              
    Taxable   2,617       2,477       8,193       8,451  
    Tax-exempt   284       284       852       883  
    Dividends   251       104       739       196  
    Other   670       723       2,104       2,627  
    Total Interest and Dividend Income   27,241       24,234       80,084       71,356  
    INTEREST EXPENSE              
    Deposits   3,112       928       7,915       1,887  
    Short-term borrowings   204       439       847       564  
    Long-term borrowings   2,983       1,122       8,823       2,078  
    Total Interest Expense   6,299       2,489       17,585       4,529  
    Net Interest Income   20,942       21,745       62,499       66,827  
    Provision for (reversal of) credit losses   81       250       (2,686 )     74  
    Provision for (reversal of) unfunded commitments   40       (171 )     (370 )     226  
    Net Interest Income after Provisions for (Reversal of) Credit Losses and Unfunded Commitments   20,821       21,666       65,555       66,527  
    NONINTEREST INCOME              
    Insurance commissions   2,787       2,629       7,649       7,371  
    Service charges on deposits   1,048       1,000       3,060       2,951  
    Wealth management   1,188       953       3,219       2,772  
    ATM debit card charges   828       845       2,488       2,502  
    Earnings on investment in bank-owned life insurance   503       473       1,473       1,399  
    Gain from mortgage loans held for sale   112       —       194       31  
    Net gains (losses) on sales or calls of investment securities   —       —       69       (739 )
    Net gains (losses) on equity securities   28       (27 )     19       (22 )
    Gain on assets held for sale   —       14       —       337  
    Other   339       410       756       873  
    Total Noninterest Income   6,833       6,297       18,927       17,475  
    NONINTEREST EXPENSES              
    Salaries and employee benefits   11,017       10,069       32,611       30,335  
    Equipment   1,698       1,554       4,997       4,784  
    Net occupancy   945       942       3,066       2,981  
    Professional services   409       617       1,554       1,600  
    FDIC and regulatory   365       388       1,088       932  
    Other tax   360       323       1,086       965  
    Intangible assets amortization   304       352       940       1,072  
    Supplies and postage   236       229       610       633  
    Marketing and corporate relations   99       159       275       472  
    Merger-related   1,137       —       1,160       —  
    Other   1,674       1,703       4,910       5,125  
    Total Noninterest Expenses   18,244       16,336       52,297       48,899  
    Income Before Income Taxes   9,410       11,627       32,185       35,103  
    Provision for income taxes   2,206       2,583       6,934       7,512  
    Net Income $ 7,204     $ 9,044     $ 25,251     $ 27,591  
    PER SHARE DATA              
    Basic earnings $ 0.85     $ 1.06     $ 2.97     $ 3.24  
    Diluted earnings $ 0.84     $ 1.06     $ 2.96     $ 3.23  
    Weighted average shares basic   8,507,140       8,517,917       8,500,860       8,518,006  
    Weighted average shares diluted   8,545,578       8,551,545       8,532,691       8,544,732  
                                   
     
    Average Balances, Income and Expenses, Yields and Rates
                         
        Three months ended   Three months ended   Three months ended   Three months ended   Three months ended
        September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023   September 30, 2023
    (Dollars in thousands)   Average
    Balance    		   Interest8   Yield/
    Rate    		   Average
    Balance    		   Interest8   Yield/
    Rate    		   Average
    Balance    		   Interest8   Yield/
    Rate    		   Average
    Balance    		   Interest8   Yield/
    Rate    		   Average
    Balance    		   Interest8   Yield/
    Rate
    ASSETS                                                            
    Loans:                                                            
    Taxable   $ 1,618,879     $ 23,108     5.68 %   $ 1,612,380     $ 22,675     5.66 %   $ 1,573,109     $ 21,470     5.49 %   $ 1,559,411     $ 21,303     5.42 %   $ 1,520,134     $ 20,285     5.29 %
    Tax-exempt     62,401       394     2.51       64,276       396     2.48       65,825       404     2.47       69,058       425     2.44       73,995       457     2.45  
    Total Loans9     1,681,280       23,502     5.56       1,676,656       23,071     5.53       1,638,934       21,874     5.37       1,628,469       21,728     5.29       1,594,129       20,742     5.16  
    Investment Securities:                                                            
    Taxable     441,135       2,868     2.59       442,390       2,913     2.65       467,466       3,151     2.71       453,713       2,669     2.33       466,402       2,581     2.20  
    Tax-exempt     54,549       359     2.62       54,644       359     2.64       54,740       359     2.64       54,835       361     2.61       55,027       359     2.59  
    Total Investments10     495,684       3,227     2.59       497,034       3,272     2.65       522,206       3,510     2.70       508,548       3,030     2.36       521,429       2,940     2.24  
    Interest-bearing deposits with banks     48,794       670     5.46       50,851       684     5.41       54,156       750     5.57       50,225       691     5.46       53,324       723     5.38  
    Total Earning Assets     2,225,758       27,399     4.90       2,224,541       27,027     4.89       2,215,296       26,134     4.74       2,187,242       25,449     4.62       2,168,882       24,405     4.46  
    Cash and due from banks     21,684               21,041               20,540               21,578               23,783          
    Premises and equipment     25,716               25,903               26,102               25,983               25,980          
    Other assets     184,105               187,937               187,075               191,329               165,821          
    Allowance for credit losses     (17,147 )             (20,124 )             (19,963 )             (19,232 )             (19,101 )        
    Total Assets   $ 2,440,116             $ 2,439,298             $ 2,429,050             $ 2,406,900             $ 2,365,365          
    LIABILITIES                                                            
    Interest-bearing demand deposits   $ 518,368     $ 552     0.42 %   $ 513,163     $ 275     0.22 %   $ 512,701     $ 264     0.21 %   $ 560,510     $ 275     0.19 %   $ 571,314     $ 185     0.13 %
    Money markets     246,653       692     1.12       248,191       613     0.99       248,297       536     0.87       274,226       707     1.02       245,899       312     0.50  
    Savings deposits     318,291       26     0.03       327,274       30     0.04       335,215       29     0.03       348,244       28     0.03       366,398       30     0.03  
    Time deposits     258,053       1,842     2.84       263,045       1,725     2.64       244,481       1,331     2.19       221,778       798     1.43       212,159       401     0.75  
    Total Interest-Bearing Deposits     1,341,365       3,112     0.92       1,351,673       2,643     0.79       1,340,694       2,160     0.65       1,404,758       1,808     0.51       1,395,770       928     0.26  
    Short-term borrowings     38,666       204     2.10       37,256       304     3.28       47,084       339     2.90       56,872       334     2.33       66,942       439     2.60  
    Long-term borrowings     255,316       2,983     4.65       255,305       2,958     4.66       248,701       2,882     4.66       137,026       1,649     4.77       94,554       1,122     4.71  
    Total Borrowings     293,982       3,187     4.31       292,561       3,262     4.48       295,785       3,221     4.38       193,898       1,983     4.06       161,496       1,561     3.83  
    Total Interest-Bearing Liabilities     1,635,347       6,299     1.53       1,644,234       5,905     1.44       1,636,479       5,381     1.32       1,598,656       3,791     0.94       1,557,266       2,489     0.63  
    Noninterest-bearing demand deposits     477,350               485,351               486,648               519,797               541,995          
    Other liabilities     29,946               28,348               26,904               21,648               6,820          
    Stockholders’ Equity     297,473               281,365               279,019               266,799               259,284          
    Total Liabilities and Stockholders’ Equity   $ 2,440,116             $ 2,439,298             $ 2,429,050             $ 2,406,900             $ 2,365,365          
    Taxable Equivalent Net Interest Income         21,100               21,122               20,753               21,658               21,916      
    Taxable Equivalent Adjustment         (158 )             (158 )             (160 )             (165 )             (171 )    
    Net Interest Income       $ 20,942             $ 20,964             $ 20,593             $ 21,493             $ 21,745      
    Cost of Funds           1.19 %           1.12 %           1.02 %           0.71 %           0.47 %
    FTE Net Interest Margin           3.77 %           3.82 %           3.77 %           3.93 %           4.01 %
                                                                           
     
    Average Balances, Income and Expenses, Yields and Rates
           
      Nine Months Ended September 30, 2024   Nine Months Ended September 30, 2023
    (Dollars in thousands) Average
    Balance    		   Interest11   Yield/
    Rate    		   Average
    Balance    		   Interest11   Yield/
    Rate
    ASSETS                      
    Loans:                      
    Taxable $ 1,601,520     $ 67,253     5.61 %   $ 1,479,690     $ 58,130     5.25 %
    Tax-exempt   64,161       1,194     2.49       75,657       1,353     2.39  
    Total Loans12   1,665,681       68,447     5.49       1,555,347       59,483     5.11  
    Investment Securities:                      
    Taxable   450,297       8,932     2.65       507,061       8,647     2.28  
    Tax-exempt   54,644       1,078     2.64       55,307       1,118     2.70  
    Total Investments13   504,941       10,010     2.65       562,368       9,765     2.32  
    Interest-bearing deposits with banks   51,258       2,104     5.48       71,645       2,627     4.90  
    Total Earning Assets   2,221,880       80,561     4.84       2,189,360       71,875     4.39  
    Cash and due from banks   21,091               30,891          
    Premises and equipment   25,939               26,415          
    Other assets   186,330               159,544          
    Allowance for credit losses   (19,071 )             (18,807 )        
    Total Assets $ 2,436,169             $ 2,387,403          
    LIABILITIES                      
    Interest-bearing demand deposits $ 514,757     $ 1,092     0.28 %   $ 580,180     $ 690     0.16 %
    Money markets   247,710       1,841     0.99       276,154       277     0.13  
    Savings deposits   326,895       84     0.03       385,753       94     0.03  
    Time deposits   255,203       4,898     2.56       234,951       826     0.47  
    Total Interest-Bearing Deposits   1,344,565       7,915     0.79       1,477,038       1,887     0.17  
    Short-term borrowings   40,993       847     2.76       47,852       564     1.58  
    Long-term borrowings   253,116       8,823     4.66       58,333       2,078     4.76  
    Total Borrowings   294,109       9,670     4.39       106,185       2,642     3.33  
    Total Interest-Bearing Liabilities   1,638,674       17,585     1.43       1,583,223       4,529     0.38  
    Noninterest-bearing demand deposits   483,095               550,206          
    Other liabilities   28,406               (2,552 )        
    Stockholders’ Equity   285,994               256,526          
    Total Liabilities and Stockholders’ Equity $ 2,436,169             $ 2,387,403          
    Taxable Equivalent Net Interest Income       62,976               67,346      
    Taxable Equivalent Adjustment       (477 )             (519 )    
    Net Interest Income     $ 62,499             $ 66,827      
    Cost of Funds         1.11 %           0.28 %
    FTE Net Interest Margin         3.79 %           4.11 %
                               

    Non-GAAP Reconciliation
    Note: The Corporation has presented the following non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation’s results of operations and financial condition. These non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation’s industry. Investors should recognize that the Corporation’s presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other corporations. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety.

        Three Months Ended
    (Dollars in thousands, except per share data)   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023   September 30, 2023
    Tangible book value per share                    
    Stockholders’ equity   $ 306,755     $ 289,331     $ 279,920     $ 277,461     $ 255,638  
    Less: Goodwill and intangible assets     (52,327 )     (52,631 )     (52,946 )     (53,267 )     (53,619 )
    Tangible common stockholders’ equity (numerator)   $ 254,428     $ 236,700     $ 226,974     $ 224,194     $ 202,019  
    Shares outstanding, less unvested shares, end of period (denominator)     8,510,187       8,507,191       8,501,137       8,478,460       8,488,446  
    Tangible book value per share   $ 29.90     $ 27.82     $ 26.70     $ 26.44     $ 23.80  
    Tangible book value per share (excluding AOCI)                    
    Tangible common stockholders’ equity   $ 254,428     $ 236,700     $ 226,974     $ 224,194     $ 202,019  
    Less: AOCI     (33,835 )     (46,399 )     (46,824 )     (44,909 )     (64,767 )
    Tangible equity (excluding AOCI)   $ 288,263     $ 283,099     $ 273,798     $ 269,103     $ 266,786  
    Tangible book value per share (excluding AOCI)   $ 33.87     $ 33.28     $ 32.21     $ 31.74     $ 31.43  
    Tangible common equity to tangible assets (TCE/TA Ratio)                    
    Tangible common stockholders’ equity (numerator)   $ 254,428     $ 236,700     $ 226,974     $ 224,194     $ 202,019  
    Total assets   $ 2,420,914     $ 2,457,753     $ 2,414,288     $ 2,418,847     $ 2,388,522  
    Less: Goodwill and intangible assets     (52,327 )     (52,631 )     (52,946 )     (53,267 )     (53,619 )
    Total tangible assets (denominator)   $ 2,368,587     $ 2,405,122     $ 2,361,342     $ 2,365,580     $ 2,334,903  
    Tangible common equity to tangible assets     10.74 %     9.84 %     9.61 %     9.48 %     8.65 %
    Efficiency Ratio                    
    Noninterest expense   $ 18,244     $ 16,391     $ 17,662     $ 17,173     $ 16,336  
    Less: Intangible amortization     304       315       321       352       352  
    Less: Merger-related expense     1,137       23       —       —       —  
    Noninterest expense (numerator)   $ 16,803     $ 16,053     $ 17,341     $ 16,821     $ 15,984  
    Net interest income   $ 20,942     $ 20,964     $ 20,593     $ 21,493     $ 21,745  
    Plus: Total noninterest income     6,833       6,427       5,667       970       6,297  
    Less: Net gains (losses) on sales or calls of securities     —       —       69       (4,501 )     —  
    Less: Net gains (losses) on equity securities     28       1       (10 )     40       (27 )
    Less: Gain on assets held for sale     —       —       —       —       14  
    Total revenue (denominator)   $ 27,747     $ 27,390     $ 26,201     $ 26,924     $ 28,055  
    Efficiency ratio     60.56 %     58.61 %     66.18 %     62.48 %     56.97 %
                                             

    Non-GAAP Reconciliation

    Note: The Corporation has presented the following non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation’s results of operations and financial condition. These non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation’s industry. Investors should recognize that the Corporation’s presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other corporations. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety.

    (Dollars in thousands)   Three Months Ended
    September 30, 2024
    Core return on average assets    
    Net income   $ 7,204  
    Merger-related expense, net of taxes     879  
    Core net income (numerator)   $ 8,083  
    Average assets (denominator)   $ 2,440,116  
    Core return on average assets     1.32 %
         
    Core return on average equity    
    Core net income (numerator)   $ 8,083  
    Average equity (denominator)   $ 297,473  
    Core return on average equity     10.81 %
             

    1 Non-GAAP financial measure. Please refer to the calculation on the pages titled “Non-GAAP Reconciliation” at the end of this document.
    2 Non-GAAP financial measure. Please refer to the calculation on the pages titled “Non-GAAP Reconciliation” at the end of this document.
    3 Non-GAAP financial measure. Please refer to the calculation on the pages titled “Non-GAAP Reconciliation” at the end of this document.
    4 Accumulated Other Comprehensive Loss.
    5 Regulatory capital ratios as of September 30, 2024 are preliminary.
    6 Non-performing Loans consists of loans on nonaccrual status and loans greater than 90 days past due and still accruing interest.
    7 Non-performing Assets consists of Non-performing Loans and Foreclosed assets held for resale.
    8 Income on interest-earning assets has been computed on a fully taxable equivalent (FTE) basis using the 21% federal income tax statutory rate.
    9 Average balances include non-accrual loans and are net of unearned income.
    10 Average balances of investment securities is computed at fair value.
    11 Income on interest-earning assets has been computed on a fully taxable equivalent basis (FTE) using the 21% federal income tax statutory rate.
    12 Average balances include non-accrual loans and are net of unearned income.
    13 Average balances of investment securities is computed at fair value.

       
    Contact: Jason H. Weber
      EVP/Treasurer &
      Chief Financial Officer
      717.339.5090
      jweber@acnb.com
       

    The MIL Network –

  • MIL-OSI: Real Estate Split Corp. Class A Distribution

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Oct. 24, 2024 (GLOBE NEWSWIRE) — Real Estate Split Corp. (TSX: RS) (the “Fund”), is pleased to announce that a distribution for October 2024 will be payable to Class A shareholders of Real Estate Split Corp. as follows:

    Record Date Payable Date Distribution Per
    Equity Share
    October 31, 2024 November 15, 2024 $0.13
         

    The equity shares trade on the Toronto Stock Exchange under the symbol RS.

    For further information, please visit our website at www.middlefield.com or contact our Sales and Marketing Department at 1.888.890.1868.

    This press release contains forward-looking information. The forward-looking information contained in this press release is based on historical information concerning distributions and dividends paid on the securities of issuers historically included in the portfolio of the Fund. Actual future results, including the amount of distributions paid by the Fund, may differ from the monthly distribution amount. Specifically, the income from which distributions are paid may vary significantly due to: changes in portfolio composition; changes in distributions and dividends paid by issuers of securities included in the Fund’s portfolio from time to time; there being no assurance that those issuers will pay distributions or dividends on their securities; the declaration of distributions and dividends by issuers of securities included in the portfolio will generally depend upon various factors, including the financial condition of each issuer and general economic and stock market conditions; the level of borrowing by the Fund; and the uncertainty of realizing capital gains.  The risks, uncertainties and other factors that could influence actual results are described under “Risk Factors” in the Fund’s prospectus and other documents filed by the Fund with the Canadian securities regulatory authorities. The forward-looking information contained in this press release constitutes the Fund’s current estimate, as of the date of this press release, with respect to the matters covered hereby. Investors and others should not assume that any forward-looking statement contained in this press release represents the Fund’s estimate as of any date other than the date of this press release.

    The MIL Network –

  • MIL-OSI: HomeTrust Bancshares, Inc. Announces Financial Results for the Third Quarter of the Year Ending December 31, 2024 and an Increase in the Quarterly Dividend

    Source: GlobeNewswire (MIL-OSI)

    ASHEVILLE, N.C., Oct. 24, 2024 (GLOBE NEWSWIRE) — HomeTrust Bancshares, Inc. (NASDAQ: HTBI) (“Company”), the holding company of HomeTrust Bank (“Bank”), today announced preliminary net income for the third quarter of the year ending December 31, 2024 and an increase in its quarterly cash dividend.

    For the quarter ended September 30, 2024 compared to the quarter ended June 30, 2024:

    • net income was $13.1 million compared to $12.4 million;
    • diluted earnings per share (“EPS”) were $0.76 compared to $0.73;
    • annualized return on assets (“ROA”) was 1.17% compared to 1.13%;
    • annualized return on equity (“ROE”) was 9.76% compared to 9.58%;
    • net interest margin was 4.00% compared to 4.08%;
    • provision for credit losses was $3.0 million compared to $4.3 million; and
    • quarterly cash dividends continued at $0.11 per share totaling $1.9 million for both periods.

    For the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023:

    • net income was $40.6 million compared to $36.6 million;
    • diluted EPS were $2.37 compared to $2.18;
    • annualized ROA was 1.22% compared to 1.15%;
    • annualized ROE was 10.39% compared to 10.56%;
    • net interest margin was 4.03% compared to 4.29%;
    • provision for credit losses was $8.4 million compared to $11.7 million;
    • tax-free death benefit proceeds from life insurance were $1.1 million for both periods; and
    • cash dividends of $0.33 per share totaling $5.6 million compared to $0.30 per share totaling $5.1 million.

    Results for the nine months ended September 30, 2023 include the impact of the merger of Quantum Capital Corp. (“Quantum”) into the Company effective February 12, 2023. The addition of Quantum contributed total assets of $656.7 million, including loans of $561.9 million, and $570.6 million of deposits, all reflecting the impact of purchase accounting adjustments. Merger-related expenses of $4.7 million were recognized during the nine months ended September 30, 2023, while a $5.3 million provision for credit losses was recognized during the same period to establish allowances for credit losses on both Quantum’s loan portfolio and off-balance-sheet credit exposure.

    The Company also announced today that its Board of Directors declared a quarterly cash dividend of $0.12 per common share, reflecting a $0.01, or 9.0%, increase over the previous quarter’s dividend. This is the sixth increase of the quarterly dividend since the Company initiated cash dividends in November 2018. The dividend is payable on November 27, 2024 to shareholders of record as of the close of business on November 14, 2024.

    “We are pleased to report another quarter of strong financial results,” said Hunter Westbrook, President and Chief Executive Officer. “We maintained our top quartile net interest margin, our ninth straight quarter at 4.00% or more. In addition, noninterest income and expense were both in line with prior quarters. Our provision for credit losses of $3.0 million included an additional $2.2 million as a reserve build for the potential impact of Hurricane Helene upon our loan portfolio. We have begun working with our loan customers on payment deferrals of up to six months, and although we aren’t currently aware of any collectability issues, we will continue assessing the impact of the storm upon our customer base.

    “As you know, many of the communities we serve were affected by this storm, impacting both our employees and customers. I’d first like to thank our employees who have assisted in maintaining bank operations while also tending to their personal and familial responsibilities. It has been amazing to watch the teamwork, collaboration and personal sacrifice across all areas of the Bank as we remained functionally operational throughout the storm, including our electronic banking services and online operations. Currently, all of our banking locations are open with most of the affected areas in our markets recovering well and operating close to normal. As for our customers in the affected areas, it will take time to assess, react and recover from Hurricane Helene. We are committed to working with them to provide the banking support needed for their businesses and homes.

    “Lastly, I am thankful for the Company’s financial strength and geographic diversification which we have built over the last decade, with respect to both our employees and customer base, which provides the foundation to overcome unforeseen events such as this storm. We remain optimistic as we work together to continue the recovery.”

    WEBSITE: WWW.HTB.COM

    Comparison of Results of Operations for the Three Months Ended September 30, 2024 and June 30, 2024
    Net Income.  Net income totaled $13.1 million, or $0.76 per diluted share, for the three months ended September 30, 2024 compared to $12.4 million, or $0.73 per diluted share, for the three months ended June 30, 2024, an increase of $694,000, or 5.6%. Results for the three months ended September 30, 2024 were positively impacted by a decrease of $1.3 million in the provision for credit losses. Details of the changes in the various components of net income are further discussed below.

    Net Interest Income.  The following table presents the distribution of average assets, liabilities and equity, as well as interest income earned on average interest-earning assets and interest expense paid on average interest-bearing liabilities. All average balances are daily average balances. Nonaccruing loans have been included in the table as loans carrying a zero yield.

      Three Months Ended
      September 30, 2024   June 30, 2024
    (Dollars in thousands) Average
    Balance
    Outstanding    		   Interest
    Earned /
    Paid    		   Yield /
    Rate    		   Average
    Balance
    Outstanding    		   Interest
    Earned /
    Paid    		   Yield /
    Rate
    Assets                      
    Interest-earning assets                      
    Loans receivable(1) $ 3,899,460     $ 63,305   6.46 %   $ 3,885,222     $ 62,161   6.43 %
    Debt securities available for sale   140,246       1,616   4.58       134,334       1,495   4.48  
    Other interest-earning assets(2)   144,931       1,728   4.74       140,376       1,758   5.04  
    Total interest-earning assets   4,184,637       66,649   6.34       4,159,932       65,414   6.32  
    Other assets   264,579               266,983          
    Total assets $ 4,449,216             $ 4,426,915          
    Liabilities and equity                      
    Interest-bearing liabilities                      
    Interest-bearing checking accounts $ 548,024     $ 1,278   0.93 %   $ 586,396     $ 1,445   0.99 %
    Money market accounts   1,335,798       10,757   3.20       1,298,177       10,221   3.17  
    Savings accounts   182,618       40   0.09       188,028       41   0.09  
    Certificate accounts   1,012,765       11,617   4.56       902,864       9,976   4.44  
    Total interest-bearing deposits   3,079,205       23,692   3.06       2,975,465       21,683   2.93  
    Junior subordinated debt   10,079       235   9.28       10,054       234   9.36  
    Borrowings   40,399       648   6.38       87,315       1,331   6.13  
    Total interest-bearing liabilities   3,129,683       24,575   3.12       3,072,834       23,248   3.04  
    Noninterest-bearing deposits   719,710               769,016          
    Other liabilities   65,097               63,503          
    Total liabilities   3,914,490               3,905,353          
    Stockholders’ equity   534,726               521,562          
    Total liabilities and stockholders’ equity $ 4,449,216             $ 4,426,915          
    Net earning assets $ 1,054,954             $ 1,087,098          
    Average interest-earning assets to average interest-bearing liabilities   133.71 %             135.38 %        
    Non-tax-equivalent                      
    Net interest income     $ 42,074           $ 42,166    
    Interest rate spread         3.22 %           3.28 %
    Net interest margin(3)         4.00 %           4.08 %
    Tax-equivalent(4)                      
    Net interest income     $ 42,442           $ 42,520    
    Interest rate spread         3.25 %           3.32 %
    Net interest margin(3)         4.03 %           4.11 %

    (1)  Average loans receivable balances include loans held for sale and nonaccruing loans.
    (2)  Average other interest-earning assets consist of FRB stock, FHLB stock, SBIC investments and deposits in other banks.
    (3)  Net interest income divided by average interest-earning assets.
    (4)  Tax-equivalent results include adjustments to interest income of $368 and $354 for the three months ended September 30, 2024 and June 30, 2024, respectively, calculated based on a combined federal and state tax rate of 24%.

    Total interest and dividend income for the three months ended September 30, 2024 increased $1.2 million, or 1.9%, compared to the three months ended June 30, 2024, which was driven by a $1.1 million, or 1.8%, increase in loan interest income primarily due to the difference in the number of days in each quarter. Accretion income on acquired loans of $640,000 and $678,000 was recognized during the same periods, respectively, and was included in interest income on loans.

    Total interest expense for the three months ended September 30, 2024 increased $1.3 million, or 5.7%, compared to the three months ended June 30, 2024. The increase was primarily the result of increases in the average balances of money market and certificate accounts, partially offset by a decline in average borrowings outstanding.

    The following table shows the effects that changes in average balances (volume), including the difference in the number of days in the periods compared, and average interest rates (rate) had on the interest earned on interest-earning assets and interest paid on interest-bearing liabilities:

      Increase / (Decrease)
    Due to    		   Total
    Increase /
    (Decrease)
    (Dollars in thousands) Volume   Rate  
    Interest-earning assets          
    Loans receivable $ 916     $ 228     $ 1,144  
    Debt securities available for sale   83       38       121  
    Other interest-earning assets   76       (106 )     (30 )
    Total interest-earning assets   1,075       160       1,235  
    Interest-bearing liabilities          
    Interest-bearing checking accounts   (81 )     (86 )     (167 )
    Money market accounts   413       123       536  
    Savings accounts   (1 )     —       (1 )
    Certificate accounts   1,341       300       1,641  
    Junior subordinated debt   3       (2 )     1  
    Borrowings   (708 )     25       (683 )
    Total interest-bearing liabilities   967       360       1,327  
    Decrease in net interest income         $ (92 )


    Provision for Credit Losses.      The provision for credit losses is the amount of expense that, based on our judgment, is required to maintain the allowance for credit losses (“ACL”) at an appropriate level under the current expected credit losses model.

    The following table presents a breakdown of the components of the provision for credit losses:

      Three Months Ended      
    (Dollars in thousands) September 30, 2024   June 30, 2024   $ Change   % Change
    Provision for credit losses                
    Loans $ 2,990     $ 4,300     $ (1,310 )   (30 )%
    Off-balance-sheet credit exposure   (15 )     (40 )     25     63  
    Total provision for credit losses $ 2,975     $ 4,260     $ (1,285 )   (30 )%

    For the quarter ended September 30, 2024, the “loans” portion of the provision for credit losses was the result of the following, offset by net charge-offs of $4.1 million during the quarter:

    • $0.4 million benefit driven by changes in the loan mix.
    • $1.2 million provision due to changes in the projected economic forecast, specifically the national unemployment rate, and changes in qualitative adjustments. Included in this change was the addition of a $2.2 million qualitative allocation for the potential impact of Hurricane Helene upon our loan portfolio.
    • $1.9 million decrease in specific reserves on individually evaluated loans as we charged-off specific reserves which had previously been established.

    For the quarter ended June 30, 2024, the “loans” portion of the provision for credit losses was the result of the following, in addition to net charge-offs of $2.6 million during the quarter:

    • $0.1 million provision driven by changes in the loan mix.
    • $0.4 million benefit due to changes in the projected economic forecast and changes in qualitative adjustments.
    • $2.0 million increase in specific reserves on individually evaluated loans which was proportional to the increase in the associated loan balances which increased from $8.3 million to $16.3 million quarter-over-quarter, concentrated in the equipment finance and SBA portfolios.

    For the quarters ended September 30, 2024 and June 30, 2024, the amounts recorded for off-balance-sheet credit exposure were the result of changes in the balance of loan commitments, loan mix and projected economic forecast as outlined above.

    Noninterest Income.  Noninterest income for the three months ended September 30, 2024 increased $169,000, or 2.1%, when compared to the quarter ended June 30, 2024. Changes in the components of noninterest income are discussed below:

      Three Months Ended    
    (Dollars in thousands) September 30, 2024   June 30, 2024   $ Change   % Change
    Noninterest income              
    Service charges and fees on deposit accounts $ 2,336     $ 2,354     $ (18 )   (1 )%
    Loan income and fees   684       647       37     6  
    Gain on sale of loans held for sale   1,900       1,828       72     4  
    Bank owned life insurance (“BOLI”) income   828       807       21     3  
    Operating lease income   1,637       1,591       46     3  
    Other   897       886       11     1  
    Total noninterest income $ 8,282     $ 8,113     $ 169     2 %
                                 
    • Gain on sale of loans held for sale: The increase was primarily driven by residential mortgage loans sold during the period. There were $21.7 million of residential mortgage loans originated for sale which were sold during the current quarter with gains of $479,000 compared to $21.3 million sold with gains of $351,000 in the prior quarter, with the improvement in profitability due to movement in interest rates. There were $54.6 million of HELOCs sold for a gain of $414,000 compared to $32.9 million sold with gains of $457,000 in the prior quarter. There were $12.9 million in sales of the guaranteed portion of SBA commercial loans with gains of $1.0 million for the quarter compared to $12.7 million sold and gains of $1.1 million for the prior quarter. Our hedging of mandatory commitments on the residential mortgage loan pipeline resulted in a gain of $18,000 for the quarter ended September 30, 2024 versus a loss of $58,000 for the quarter ended June 30, 2024.

    Noninterest Expense.  Noninterest expense for the three months ended September 30, 2024 increased $375,000, or 1.2%, when compared to the three months ended June 30, 2024. Changes in the components of noninterest expense are discussed below:

      Three Months Ended    
    (Dollars in thousands) September 30, 2024   June 30, 2024   $ Change   % Change
    Noninterest expense              
    Salaries and employee benefits $ 17,082     $ 16,608     $ 474     3 %
    Occupancy expense, net   2,436       2,419       17     1  
    Computer services   3,192       3,116       76     2  
    Telephone, postage and supplies   547       580       (33 )   (6 )
    Marketing and advertising   408       606       (198 )   (33 )
    Deposit insurance premiums   589       531       58     11  
    Core deposit intangible amortization   567       567       —     —  
    Other   5,764       5,783       (19 )   —  
    Total noninterest expense $ 30,585     $ 30,210     $ 375     1 %
                                 
    • Salaries and employee benefits: The quarter-over-quarter increase was primarily the result of executive pay increases effective this quarter and additional stock incentive expense associated with the vesting of performance-based equity awards.
    • Marketing and advertising: The decrease in expense was the result of both differences in the timing of when expenses were incurred quarter-over-quarter as well as a reduction in traditional media advertising (print, billboards, etc.) in favor of digital platforms at lower costs.

    Income Taxes.  The amount of income tax expense is influenced by the amount of pre-tax income, tax-exempt income, changes in the statutory rate and the effect of changes in valuation allowances maintained against deferred tax benefits. The effective tax rates for the three months ended September 30, 2024 and June 30, 2024 were 21.9% and 21.4%, respectively.

    Comparison of Results of Operations for the Nine Months Ended September 30, 2024 and September 30, 2023
    Net Income.  Net income totaled $40.6 million, or $2.37 per diluted share, for the nine months ended September 30, 2024 compared to $36.6 million, or $2.18 per diluted share, for the nine months ended September 30, 2023, an increase of $4.0 million, or 11.0%. The results for the nine months ended September 30, 2024 were positively impacted by a decrease of $3.3 million in the provision for credit losses, a $1.4 million increase in noninterest income, and a $2.6 million decrease in noninterest expense, partially offset by a $2.0 million decrease in net interest income and a $1.3 million increase in income tax expense. Details of the changes in the various components of net income are further discussed below.

    Net Interest Income.  The following table presents the distribution of average assets, liabilities and equity, as well as interest income earned on average interest-earning assets and interest expense paid on average interest-bearing liabilities. All average balances are daily average balances. Nonaccruing loans have been included in the table as loans carrying a zero yield.

      Nine Months Ended
      September 30, 2024   September 30, 2023
    (Dollars in thousands) Average
    Balance
    Outstanding    		   Interest
    Earned /
    Paid    		   Yield /
    Rate    		   Average
    Balance
    Outstanding    		   Interest
    Earned /
    Paid    		   Yield /
    Rate
    Assets                      
    Interest-earning assets                      
    Loans receivable(1) $ 3,883,040     $ 185,418   6.38 %   $ 3,684,518     $ 162,526   5.90 %
    Debt securities available for sale   133,779       4,424   4.42       155,884       3,780   3.24  
    Other interest-earning assets(2)   138,956       5,576   5.36       137,065       5,356   5.22  
    Total interest-earning assets   4,155,775       195,418   6.28       3,977,467       171,662   5.77  
    Other assets   276,516               266,867          
    Total assets $ 4,432,291             $ 4,244,334          
    Liabilities and equity                      
    Interest-bearing liabilities                      
    Interest-bearing checking accounts $ 574,954     $ 4,149   0.96 %   $ 627,200     $ 3,241   0.69 %
    Money market accounts   1,305,217       30,642   3.14       1,206,119       18,604   2.06  
    Savings accounts   187,447       124   0.09       218,683       143   0.09  
    Certificate accounts   934,702       30,778   4.40       649,755       14,967   3.08  
    Total interest-bearing deposits   3,002,320       65,693   2.92       2,701,757       36,955   1.83  
    Junior subordinated debt   10,054       705   9.37       8,428       563   8.93  
    Borrowings   76,823       3,550   6.17       158,965       6,634   5.58  
    Total interest-bearing liabilities   3,089,197       69,948   3.02       2,869,150       44,152   2.06  
    Noninterest-bearing deposits   766,110               857,315          
    Other liabilities   55,217               54,513          
    Total liabilities   3,910,524               3,780,978          
    Stockholders’ equity   521,767               463,356          
    Total liabilities and stockholders’ equity $ 4,432,291             $ 4,244,334          
    Net earning assets $ 1,066,578             $ 1,108,317          
    Average interest-earning assets to average interest-bearing liabilities   134.53 %             138.63 %        
    Non-tax-equivalent                      
    Net interest income     $ 125,470           $ 127,510    
    Interest rate spread         3.26 %           3.71 %
    Net interest margin(3)         4.03 %           4.29 %
    Tax-equivalent                      
    Net interest income     $ 126,542           $ 128,413    
    Interest rate spread         3.30 %           3.74 %
    Net interest margin(3)         4.07 %           4.32 %

    (1)  Average loans receivable balances include loans held for sale and nonaccruing loans.
    (2)  Average other interest-earning assets consist of FRB stock, FHLB stock, SBIC investments and deposits in other banks.
    (3)  Net interest income divided by average interest-earning assets.
    (4)  Tax-equivalent results include adjustments to interest income of $1,072 and $903 for the nine months ended September 30, 2024 and September 30, 2023, respectively, calculated based on a combined federal and state tax rate of 24%.

    Total interest and dividend income for the nine months ended September 30, 2024 increased $23.8 million, or 13.8%, compared to the nine months ended September 30, 2023, which was driven by a $22.9 million, or 14.1%, increase in interest income on loans. Accretion income on acquired loans of $2.0 million and $1.7 million was recognized during the same periods, respectively, and was included in interest income on loans. The overall increase in average yield on interest-earning assets was the result of both higher average balances and rising interest rates.

    Total interest expense for the nine months ended September 30, 2024 increased $25.8 million, or 58.4%, compared to the nine months ended September 30, 2023. The change was primarily the result of increases in the cost of funds across all funding sources driven by higher market interest rates and increases in the average balances of money market and certificate accounts, partially offset by a decline in average borrowings outstanding.

    The following table shows the effects that changes in average balances (volume), including the difference in the number of days in the periods compared, and average interest rates (rate) had on the interest earned on interest-earning assets and interest paid on interest-bearing liabilities:

      Increase / (Decrease)
    Due to    		   Total
    Increase /
    (Decrease)
    (Dollars in thousands) Volume   Rate  
    Interest-earning assets          
    Loans receivable $ 8,927     $ 13,965     $ 22,892  
    Debt securities available for sale   (532 )     1,176       644  
    Other interest-earning assets   79       141       220  
    Total interest-earning assets   8,474       15,282       23,756  
    Interest-bearing liabilities          
    Interest-bearing checking accounts   (266 )     1,174       908  
    Money market accounts   1,557       10,481       12,038  
    Savings accounts   (20 )     1       (19 )
    Certificate accounts   6,592       9,219       15,811  
    Junior subordinated debt   109       33       142  
    Borrowings   (3,425 )     341       (3,084 )
    Total interest-bearing liabilities   4,547       21,249       25,796  
    Decrease in net interest income         $ (2,040 )

    Provision for Credit Losses.  The following table presents a breakdown of the components of the provision for credit losses:

      Nine Months Ended      
    (Dollars in thousands) September 30, 2024   September 30, 2023   $ Change   % Change
    Provision for credit losses                
    Loans $ 8,435     $ 12,120     $ (3,685 )   (30 )%
    Off-balance-sheet credit exposure   (35 )     (385 )     350     91  
    Total provision for credit losses $ 8,400     $ 11,735     $ (3,335 )   (28 )%

    For the nine months ended September 30, 2024, the “loans” portion of the provision for credit losses was the result of net charge-offs of $8.9 million during the period, partially offset by a $0.4 million benefit due to changes in the loan mix.

    For the nine months ended September 30, 2023, the “loans” portion of the provision for credit losses was the result of the following, in addition to net charge-offs of $3.9 million during the period:

    • $4.9 million provision to establish an allowance on Quantum’s loan portfolio.
    • $3.0 million provision due to changes in the projected economic forecast, specifically the national unemployment rate, and changes in qualitative adjustments.
    • $0.3 million increase in specific reserves on individually evaluated credits.

    For the nine months ended September 30, 2024 and September 30, 2023, the amounts recorded for off-balance-sheet credit exposure were the result of changes in the balance of loan commitments, loan mix and projected economic forecast as outlined above.

    Noninterest Income.  Noninterest income for the nine months ended September 30, 2024 increased $1.4 million, or 5.8%, when compared to the same period last year. Changes in the components of noninterest income are discussed below:

      Nine Months Ended    
    (Dollars in thousands) September 30, 2024   September 30, 2023   $ Change   % Change
    Noninterest income              
    Service charges and fees on deposit accounts $ 6,839     $ 6,967     $ (128 )   (2 )%
    Loan income and fees   2,009       1,913       96     5  
    Gain on sale of loans held for sale   5,185       4,213       972     23  
    BOLI income   3,470       2,844       626     22  
    Operating lease income   5,087       4,515       572     13  
    Gain (loss) on sale of premises and equipment   (9 )     982       (991 )   (101 )
    Other   2,625       2,391       234     10  
    Total noninterest income $ 25,206     $ 23,825     $ 1,381     6 %
                                 
    • Gain on sale of loans held for sale: The increase in the gain on sale of loans held for sale was primarily driven by residential mortgage and SBA loans sold during the period. During the nine months ended September 30, 2024, there were $58.3 million of residential mortgage loans originated for sale which were sold with gains of $1.1 million compared to $48.7 million sold with gains of $633,000 for the corresponding period in the prior year, with the improvement in profitability due to movement in interest rates. There were $38.5 million of sales of the guaranteed portion of SBA commercial loans with gains of $3.1 million compared to $41.1 million sold and gains of $2.6 million for the corresponding period in the prior year. There were $95.4 million of HELOCs sold during the current period for a gain of $887,000 compared to $66.4 million sold and gains of $552,000 for the corresponding period in the prior year. Our hedging of mandatory commitments on the residential mortgage loan pipeline resulted in a gain of $15,000 for the nine months ended September 30, 2024 versus a gain of $426,000 for the nine months ended September 30, 2023.
    • BOLI income: The increase was due to higher yielding policies as a result of restructuring the portfolio at the end of the prior calendar year.
    • Operating lease income: The increase in operating lease income was the result of $1.7 million in additional contractual earnings on a higher average outstanding balance of the associated contracts, partially offset by losses incurred on previously leased equipment, where we recognized a net loss of $1.3 million for the nine months ended September 30, 2024 versus a net loss of $210,000 in the same period last year.
    • Gain (loss) on sale of premises and equipment: During the nine months ended September 30, 2023, two properties were sold for a combined gain of $982,000. No material disposal activity occurred during the nine months ended September 30, 2024.

    Noninterest Expense.  Noninterest expense for the nine months ended September 30, 2024 decreased $2.6 million, or 2.8%, when compared to the same period last year. Changes in the components of noninterest expense are discussed below:

      Nine Months Ended    
    (Dollars in thousands) September 30, 2024   September 30, 2023   $ Change   % Change
    Noninterest expense              
    Salaries and employee benefits $ 50,666     $ 49,436     $ 1,230     2 %
    Occupancy expense, net   7,292       7,556       (264 )   (3 )
    Computer services   9,396       9,386       10     —  
    Telephone, postage and supplies   1,712       1,942       (230 )   (12 )
    Marketing and advertising   1,659       1,555       104     7  
    Deposit insurance premiums   1,674       1,878       (204 )   (11 )
    Core deposit intangible amortization   1,896       2,324       (428 )   (18 )
    Merger-related expenses   —       4,741       (4,741 )   (100 )
    Other   16,364       14,490       1,874     13  
    Total noninterest expense $ 90,659     $ 93,308     $ (2,649 )   (3 )%
                               
    • Salaries and employee benefits: The increase was primarily the result of pay increases, partially offset by reductions in incentive pay.
    • Core deposit intangible amortization: The intangible recorded associated with the Quantum merger is being amortized on an accelerated basis, so the rate of amortization slowed year-over-year.
    • Merger-related expenses: The prior period included expenses associated with the Company’s merger with Quantum. No such expenses were incurred in the nine months ended September 30, 2024.
    • Other: The increase period-over-period was primarily driven by $1.7 million of additional depreciation expense on equipment subject to operating leases.

    Income Taxes. The amount of income tax expense is influenced by the amount of pre-tax income, tax-exempt income, changes in the statutory rate and the effect of changes in valuation allowances maintained against deferred tax benefits. The effective tax rates for the nine months ended September 30, 2024 and September 30, 2023 were 21.3% and 21.0%, respectively.

    Balance Sheet Review
    Total assets decreased by $35.3 million to $4.6 billion and total liabilities decreased by $75.5 million to $4.1 billion, respectively, at September 30, 2024 as compared to December 31, 2023. The majority of these changes were the result of an increase in deposits, which, combined with the collection of BOLI redemption proceeds and cash and cash equivalents, were used to fund growth in loans and pay down borrowings.

    Stockholders’ equity increased $40.1 million to $540.0 million at September 30, 2024 as compared to December 31, 2023. Activity within stockholders’ equity included $40.6 million in net income and $4.5 million in stock-based compensation and stock option exercises, partially offset by $5.6 million in cash dividends declared. In addition, the improvement in the accumulated other comprehensive income was driven by a $1.6 million reduction of the unrealized loss on available for sale securities as a result of a decrease in market interest rates.

    As of September 30, 2024, the Bank was considered “well capitalized” in accordance with its regulatory capital guidelines and exceeded all regulatory capital requirements.

    Asset Quality
    The ACL on loans was $48.1 million, or 1.30% of total loans, at September 30, 2024 compared to $48.6 million, or 1.34% of total loans, at December 31, 2023. The drivers of this change are discussed in the “Comparison of Results of Operations for the Nine Months Ended September 30, 2024 and September 30, 2023 – Provision for Credit Losses” section above.

    Net loan charge-offs totaled $8.9 million for the nine months ended September 30, 2024 compared to $3.9 million for the same period last year. As discussed in previous quarters, the increase in net charge-offs has been concentrated in our equipment finance portfolio, primarily smaller over-the-road truck loans, with net charge-offs of $5.1 million during the nine months ended September 30, 2024. In response, during the first quarter of calendar year 2024 the Company elected to cease further originations within the transportation sector of equipment finance loans. In spite of the increase, annualized net charge-offs as a percentage of average assets for the loan portfolio as a whole were 0.31% for the nine months ended September 30, 2024, in line with the Company’s historical experience, as compared to 0.14% for the nine months ended September 30, 2023.

    Nonperforming assets, made up of nonaccrual loans and repossessed assets, increased by $10.4 million, or 54.0%, to $29.8 million, or 0.64% of total assets, at September 30, 2024 compared to $19.3 million, or 0.41% of total assets, at December 31, 2023. Consistent with the change in net charge-offs, equipment finance loans made up the largest portion of nonperforming assets at $8.5 million and $6.5 million, respectively, at these same dates. In addition, owner occupied commercial real estate totaled $7.2 million and $912,000, respectively, at these same dates. These increases were mainly the result of a $3.1 million medical equipment relationship and $5.1 million owner occupied commercial real estate (OO CRE) relationship; however, in both cases losses are not currently anticipated. The ratio of nonperforming loans to total loans was 0.78% at September 30, 2024 compared to 0.53% at December 31, 2023.

    The ratio of classified assets to total assets increased to 0.99% at September 30, 2024 from 0.90% at December 31, 2023 as classified assets increased $4.1 million, or 9.8%, to $46.1 million at September 30, 2024 compared to $42.0 million at December 31, 2023. The largest portfolios of classified assets at September 30, 2024 included $11.7 million of non-owner occupied commercial real estate loans, $8.4 million of equipment finance loans, $7.1 million of SBA loans, $6.0 million of 1-4 family residential real estate loans, and $6.0 million of OO CRE loans.

    About HomeTrust Bancshares, Inc.
    HomeTrust Bancshares, Inc. is the holding company for the Bank. As of September 30, 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 (the Roanoke Valley) and Georgia (Greater Atlanta).

    Forward-Looking Statements
    This press release includes “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.

    Consolidated Balance Sheets (Unaudited)

    (Dollars in thousands) September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    (1)    		   September 30,
    2023
    Assets                  
    Cash $ 18,980     $ 18,382     $ 16,134     $ 18,307     $ 18,090  
    Interest-bearing deposits   274,497       275,808       364,359       328,833       306,924  
    Cash and cash equivalents   293,477       294,190       380,493       347,140       325,014  
    Certificates of deposit in other banks   29,290       32,131       33,625       34,722       35,380  
    Debt securities available for sale, at fair value   140,552       134,135       120,807       126,950       134,348  
    FHLB and FRB stock   18,384       19,637       13,691       18,393       19,612  
    SBIC investments, at cost   15,489       15,462       14,568       13,789       14,586  
    Loans held for sale, at fair value   2,968       1,614       2,764       3,359       4,616  
    Loans held for sale, at the lower of cost or fair value   189,722       224,976       220,699       198,433       200,834  
    Total loans, net of deferred loan fees and costs   3,698,892       3,701,454       3,648,152       3,640,022       3,659,914  
    Allowance for credit losses – loans   (48,131 )     (49,223 )     (47,502 )     (48,641 )     (47,417 )
    Loans, net   3,650,761       3,652,231       3,600,650       3,591,381       3,612,497  
    Premises and equipment, net   69,603       69,880       70,588       70,937       72,463  
    Accrued interest receivable   17,523       18,412       16,944       16,902       16,513  
    Deferred income taxes, net   10,100       10,512       11,222       11,796       9,569  
    BOLI   90,021       89,176       88,369       88,257       106,059  
    Goodwill   34,111       34,111       34,111       34,111       34,111  
    Core deposit intangibles, net   7,162       7,730       8,297       9,059       9,918  
    Other assets   68,130       66,667       67,183       107,404       56,477  
    Total assets $ 4,637,293     $ 4,670,864     $ 4,684,011     $ 4,672,633     $ 4,651,997  
    Liabilities and stockholders’ equity                  
    Liabilities                  
    Deposits $ 3,761,588     $ 3,707,779     $ 3,799,807     $ 3,661,373     $ 3,640,961  
    Junior subordinated debt   10,096       10,070       10,045       10,021       9,995  
    Borrowings   260,013       364,513       291,513       433,763       452,263  
    Other liabilities   65,592       64,874       69,473       67,583       64,367  
    Total liabilities   4,097,289       4,147,236       4,170,838       4,172,740       4,167,586  
    Stockholders’ equity                  
    Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued or outstanding   —       —       —       —       —  
    Common stock, $0.01 par value, 60,000,000 shares authorized(2)   175       175       175       174       174  
    Additional paid in capital   175,495       172,907       172,919       172,366       171,663  
    Retained earnings   368,383       357,147       346,598       333,401       321,799  
    Unearned Employee Stock Ownership Plan (“ESOP”) shares   (4,099 )     (4,232 )     (4,364 )     (4,497 )     (4,629 )
    Accumulated other comprehensive income (loss)   50       (2,369 )     (2,155 )     (1,551 )     (4,596 )
    Total stockholders’ equity   540,004       523,628       513,173       499,893       484,411  
    Total liabilities and stockholders’ equity $ 4,637,293     $ 4,670,864     $ 4,684,011     $ 4,672,633     $ 4,651,997  

    (1)  Derived from audited financial statements.
    (2)  Shares of common stock issued and outstanding were 17,514,922 at September 30, 2024; 17,437,326 at June 30, 2024; 17,444,787 at March 31, 2024; 17,387,069 at December 31, 2023; and 17,380,307 at September 30, 2023.

    Consolidated Statements of Income (Unaudited)

      Three Months Ended   Nine Months Ended
    (Dollars in thousands) September 30,
    2024    		   June 30,
    2024    		   September 30,
    2024    		   September 30,
    2023
    Interest and dividend income              
    Loans $ 63,305     $ 62,161     $ 185,418     $ 162,526  
    Debt securities available for sale   1,616       1,495       4,424       3,780  
    Other investments and interest-bearing deposits   1,728       1,758       5,576       5,356  
    Total interest and dividend income   66,649       65,414       195,418       171,662  
    Interest expense              
    Deposits   23,692       21,683       65,693       36,955  
    Junior subordinated debt   235       234       705       563  
    Borrowings   648       1,331       3,550       6,634  
    Total interest expense   24,575       23,248       69,948       44,152  
    Net interest income   42,074       42,166       125,470       127,510  
    Provision for credit losses   2,975       4,260       8,400       11,735  
    Net interest income after provision for credit losses   39,099       37,906       117,070       115,775  
    Noninterest income              
    Service charges and fees on deposit accounts   2,336       2,354       6,839       6,967  
    Loan income and fees   684       647       2,009       1,913  
    Gain on sale of loans held for sale   1,900       1,828       5,185       4,213  
    BOLI income   828       807       3,470       2,844  
    Operating lease income   1,637       1,591       5,087       4,515  
    Gain (loss) on sale of premises and equipment   —       —       (9 )     982  
    Other   897       886       2,625       2,391  
    Total noninterest income   8,282       8,113       25,206       23,825  
    Noninterest expense              
    Salaries and employee benefits   17,082       16,608       50,666       49,436  
    Occupancy expense, net   2,436       2,419       7,292       7,556  
    Computer services   3,192       3,116       9,396       9,386  
    Telephone, postage and supplies   547       580       1,712       1,942  
    Marketing and advertising   408       606       1,659       1,555  
    Deposit insurance premiums   589       531       1,674       1,878  
    Core deposit intangible amortization   567       567       1,896       2,324  
    Merger-related expenses   —       —       —       4,741  
    Other   5,764       5,783       16,364       14,490  
    Total noninterest expense   30,585       30,210       90,659       93,308  
    Income before income taxes   16,796       15,809       51,617       46,292  
    Income tax expense   3,684       3,391       11,020       9,712  
    Net income $ 13,112     $ 12,418     $ 40,597     $ 36,580  

    Per Share Data

        Three Months Ended    Nine Months Ended
        September 30,
    2024    		   June 30,
    2024    		   September 30,
    2024    		   September 30,
    2023
    Net income per common share(1)                
    Basic   $ 0.77     $ 0.73     $ 2.38     $ 2.19  
    Diluted   $ 0.76     $ 0.73     $ 2.37     $ 2.18  
    Average shares outstanding                
    Basic     16,931,793       16,883,028       16,891,619       16,532,335  
    Diluted     17,027,824       16,904,098       16,938,328       16,553,319  
    Book value per share at end of period   $ 30.83     $ 30.03     $ 30.83     $ 27.87  
    Tangible book value per share at end of period(2)   $ 28.57     $ 27.73     $ 28.57     $ 25.47  
    Cash dividends declared per common share   $ 0.11     $ 0.11     $ 0.33     $ 0.30  
    Total shares outstanding at end of period     17,514,922       17,437,326       17,514,922       17,380,307  

    (1)  Basic and diluted net income per common share have been prepared in accordance with the two-class method.
    (2)  See Non-GAAP reconciliations below for adjustments.

    Selected Financial Ratios and Other Data

      Three Months Ended   Nine Months Ended
      September 30,
    2024    		   June 30,
    2024    		   September 30,
    2024    		   September 30,
    2023
    Performance ratios(1)          
    Return on assets (ratio of net income to average total assets) 1.17 %   1.13 %   1.22 %   1.15 %
    Return on equity (ratio of net income to average equity) 9.76     9.58     10.39     10.56  
    Yield on earning assets 6.34     6.32     6.28     5.77  
    Rate paid on interest-bearing liabilities 3.12     3.04     3.02     2.06  
    Average interest rate spread 3.22     3.28     3.26     3.71  
    Net interest margin(2) 4.00     4.08     4.03     4.29  
    Average interest-earning assets to average interest-bearing liabilities 133.71     135.38     134.53     138.63  
    Noninterest expense to average total assets 2.73     2.74     2.73     2.94  
    Efficiency ratio 60.74     60.08     60.17     61.66  
    Efficiency ratio – adjusted(3) 60.30     59.66     60.19     58.98  

    (1)  Ratios are annualized where appropriate.
    (2)  Net interest income divided by average interest-earning assets.
    (3)  See Non-GAAP reconciliations below for adjustments.

      At or For the Three Months Ended
      September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
    Asset quality ratios                  
    Nonperforming assets to total assets(1) 0.64 %   0.54 %   0.43 %   0.41 %   0.25 %
    Nonperforming loans to total loans(1) 0.78     0.68     0.55     0.53     0.32  
    Total classified assets to total assets 0.99     0.91     0.80     0.90     0.76  
    Allowance for credit losses to nonperforming loans(1) 166.51     194.80     235.18     251.60     400.41  
    Allowance for credit losses to total loans 1.30     1.33     1.30     1.34     1.30  
    Net charge-offs to average loans (annualized) 0.42     0.27     0.24     0.29     0.27  
    Capital ratios                  
    Equity to total assets at end of period 11.64 %   11.21 %   10.96 %   10.70 %   10.41 %
    Tangible equity to total tangible assets(2) 10.88     10.44     10.18     9.91     9.60  
    Average equity to average assets 12.02     11.78     11.51     11.03     10.84  

    (1)  Nonperforming assets include nonaccruing loans and repossessed assets. There were no accruing loans more than 90 days past due at the dates indicated. At September 30, 2024, $8.7 million, or 30.4%, of nonaccruing loans were current on their loan payments as of that date.
    (2)  See Non-GAAP reconciliations below for adjustments.

    Loans

    (Dollars in thousands) September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
    Commercial real estate loans                  
    Construction and land development $ 300,905     $ 316,050     $ 304,727     $ 305,269     $ 352,143  
    Commercial real estate – owner occupied   544,689       545,631       532,547       536,545       526,534  
    Commercial real estate – non-owner occupied   881,340       892,653       881,143       875,694       880,348  
    Multifamily   114,155       92,292       89,692       88,623       83,430  
    Total commercial real estate loans   1,841,089       1,846,626       1,808,109       1,806,131       1,842,455  
    Commercial loans                  
    Commercial and industrial   286,809       266,136       243,732       237,255       237,366  
    Equipment finance   443,033       461,010       462,649       465,573       470,387  
    Municipal leases   158,560       152,509       151,894       150,292       147,821  
    Total commercial loans   888,402       879,655       858,275       853,120       855,574  
    Residential real estate loans                  
    Construction and land development   63,016       70,679       85,840       96,646       103,381  
    One-to-four family   627,845       621,196       605,570       584,405       560,399  
    HELOCs   194,909       188,465       184,274       185,878       185,289  
    Total residential real estate loans   885,770       880,340       875,684       866,929       849,069  
    Consumer loans   83,631       94,833       106,084       113,842       112,816  
    Total loans, net of deferred loan fees and costs   3,698,892       3,701,454       3,648,152       3,640,022       3,659,914  
    Allowance for credit losses – loans   (48,131 )     (49,223 )     (47,502 )     (48,641 )     (47,417 )
    Loans, net $ 3,650,761     $ 3,652,231     $ 3,600,650     $ 3,591,381     $ 3,612,497  

    Deposits

    (Dollars in thousands) September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
    Core deposits                  
    Noninterest-bearing accounts $ 684,501     $ 683,346     $ 773,901     $ 784,950     $ 827,362  
    NOW accounts   534,517       561,789       600,561       591,270       602,804  
    Money market accounts   1,345,289       1,311,940       1,308,467       1,246,807       1,195,482  
    Savings accounts   179,762       185,499       191,302       194,486       202,971  
    Total core deposits   2,744,069       2,742,574       2,874,231       2,817,513       2,828,619  
    Certificates of deposit   1,017,519       965,205       925,576       843,860       812,342  
    Total $ 3,761,588     $ 3,707,779     $ 3,799,807     $ 3,661,373     $ 3,640,961  

    Non-GAAP Reconciliations
    In addition to results presented in accordance with generally accepted accounting principles utilized in the United States (“GAAP”), this earnings release contains certain non-GAAP financial measures, which include: the efficiency ratio, tangible book value, tangible book value per share and the tangible equity to tangible assets ratio. The Company believes these non-GAAP financial measures and ratios as presented are useful for both investors and management to understand the effects of certain items and provide an alternative view of its performance over time and in comparison to its competitors. These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for total stockholders’ equity or operating results determined in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

    Set forth below is a reconciliation to GAAP of the Company’s efficiency ratio:

        Three Months Ended   Nine Months Ended
    (Dollars in thousands)   September 30,
    2024    		   June 30,
    2024    		   September 30,
    2024    		   September 30,
    2023
    Noninterest expense   $ 30,585     $ 30,210     $ 90,659     $ 93,308  
    Less: merger expense     —       —       —       4,741  
    Noninterest expense – adjusted   $ 30,585     $ 30,210     $ 90,659     $ 88,567  
                     
    Net interest income   $ 42,074     $ 42,166     $ 125,470     $ 127,510  
    Plus: tax-equivalent adjustment     368       354       1,072       903  
    Plus: noninterest income     8,282       8,113       25,206       23,825  
    Less: BOLI death benefit proceeds in excess of cash surrender value     —       —       1,143       1,092  
    Less: loss (gain) on sale of premises and equipment     —       —       (9 )     982  
    Net interest income plus noninterest income – adjusted   $ 50,724     $ 50,633     $ 150,614     $ 150,164  
    Efficiency ratio   60.74 %   60.08 %   60.17 %   61.66 %
    Efficiency ratio – adjusted   60.30 %   59.66 %   60.19 %   58.98 %
                             

    Set forth below is a reconciliation to GAAP of tangible book value and tangible book value per share:

        As of
    (Dollars in thousands, except per share data)   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
    Total stockholders’ equity   $ 540,004     $ 523,628     $ 513,173     $ 499,893     $ 484,411  
    Less: goodwill, core deposit intangibles, net of taxes     39,626       40,063       40,500       41,086       41,748  
    Tangible book value   $ 500,378     $ 483,565     $ 472,673     $ 458,807     $ 442,663  
    Common shares outstanding     17,514,922       17,437,326       17,444,787       17,387,069       17,380,307  
    Book value per share   $ 30.83     $ 30.03     $ 29.42     $ 28.75     $ 27.87  
    Tangible book value per share   $ 28.57     $ 27.73     $ 27.10     $ 26.39     $ 25.47  

    Set forth below is a reconciliation to GAAP of tangible equity to tangible assets:

        As of
    (Dollars in thousands)   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
    Tangible equity(1)   $ 500,378     $ 483,565     $ 472,673     $ 458,807     $ 442,663  
    Total assets     4,637,293       4,670,864       4,684,011       4,672,633       4,651,997  
    Less: goodwill, core deposit intangibles, net of taxes     39,626       40,063       40,500       41,086       41,748  
    Total tangible assets   $ 4,597,667     $ 4,630,801     $ 4,643,511     $ 4,631,547     $ 4,610,249  
    Tangible equity to tangible assets   10.88 %   10.44 %   10.18 %   9.91 %   9.60 %

    (1)  Tangible equity (or tangible book value) is equal to total stockholders’ equity less goodwill and core deposit intangibles, net of related deferred tax liabilities.

    The MIL Network –

  • MIL-OSI: Turtle Beach Corporation to Report Third Quarter 2024 Financial Results on Thursday, November 7, 2024

    Source: GlobeNewswire (MIL-OSI)

    WHITE PLAINS, N.Y., Oct. 24, 2024 (GLOBE NEWSWIRE) — Turtle Beach Corporation (Nasdaq: HEAR) a leading gaming headset and accessories brand, today announced it will report financial results for the third quarter 2024 on Thursday, November 7, 2024 after the close of trading on the Nasdaq Stock Market.

    The Company will also host a conference call and audio webcast at 5:00p.m. ET / 2:00p.m. PT that same day to review the results. The call will be hosted by Cris Keirn, Chief Executive Officer, and John Hanson, Chief Financial Officer.

    Conference Call Information
    The live webcast of the call will be available on the “Events & Presentations” page of the Company’s website at www.turtlebeachcorp.com. Interested individuals may also join by dialing 1-800-717-1738 or 1-646-307-1865. To avoid delays, participants are encouraged to dial into the conference call 15-minutes ahead of the scheduled start time.

    A telephone replay of the call will be available through November 21, 2024 and can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and entering passcode 1165333. A replay of the webcast will also be available on the investor relations website for a limited time.

    About Turtle Beach Corporation
    Turtle Beach Corporation (the “Company”) (www.turtlebeachcorp.com) is one of the world’s leading gaming accessory providers. The Company’s namesake Turtle Beach brand (www.turtlebeach.com) is known for designing best-selling gaming headsets, top-rated game controllers, award-winning PC gaming peripherals, and groundbreaking gaming simulation accessories. Innovation, first-to-market features, a broad range of products for all types of gamers, and top-rated customer support have made Turtle Beach a fan-favorite brand and the market leader in console gaming audio for over a decade. Turtle Beach Corporation acquired Performance Designed Products (www.pdp.com) in 2024. Turtle Beach’s shares are traded on the Nasdaq Exchange under the symbol: HEAR.

    Cautionary Note on Forward-Looking Statements
    This press release includes forward-looking information and statements within the meaning of the federal securities laws. Except for historical information contained in this release, statements in this release may constitute forward-looking statements regarding assumptions, projections, expectations, targets, intentions, or beliefs about future events. Statements containing the words “may”, “could”, “would”, “should”, “believe”, “expect”, “anticipate”, “plan”, “estimate”, “target”, “goal”, “project”, “intend” and similar expressions, or the negatives thereof, constitute forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. Forward-looking statements are based on management’s current beliefs and expectations, as well as assumptions made by, and information currently available to, management.

    While the Company believes that its expectations are based upon reasonable assumptions, there can be no assurances that its goals and strategy will be realized. Numerous factors, including risks and uncertainties, may affect actual results and may cause results to differ materially from those expressed in forward-looking statements made by the Company or on its behalf. Some of these factors include, but are not limited to, risks related to logistic and supply chain challenges, the substantial uncertainties inherent in the acceptance of existing and future products, the difficulty of commercializing and protecting new technology, the impact of competitive products and pricing, general business and economic conditions, risks associated with the expansion of our business including the integration of any businesses we acquire and the integration of such businesses within our internal control over financial reporting and operations, our indebtedness, liquidity, and other factors discussed in our public filings, including the risk factors included in the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and the Company’s other periodic reports filed with the Securities and Exchange Commission. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission, the Company is under no obligation to publicly update or revise any forward-looking statement after the date of this release whether as a result of new information, future developments or otherwise.

    CONTACTS

    Investors:
    hear@icrinc.com
    (646) 277-1285

    Public Relations & Media:
    MacLean Marshall
    Sr. Director, Global Communications
    Turtle Beach Corporation
    (858) 914-5093
    maclean.marshall@turtlebeach.com

    The MIL Network –

  • MIL-OSI: ConnectM Launches Intelligent AI-Driven Heat Pump Following AHRI Cold Climate Certification

    Source: GlobeNewswire (MIL-OSI)

    MARLBOROUGH, Mass., Oct. 24, 2024 (GLOBE NEWSWIRE) — ConnectM Technology Solutions, Inc. (NASDAQ: CNTM) (“ConnectM” or the “Company”), a technology company focused on the electrification economy, today announced its groundbreaking AI-powered heat pump has received the prestigious AHRI (Air-Conditioning Heating and Refrigeration Institute) Cold Climate Certification, representing a significant milestone in energy-efficient heating solutions. This certification follows the previously announced launch and underscores ConnectM’s commitment to delivering state-of-the-art technology that meets the highest standards for performance in even the harshest of winter conditions.

    The AHRI Cold Climate Certification is awarded to products that demonstrate superior heating efficiency, especially in cold environments where traditional heat pumps struggle. ConnectM’s heat pump excels in maintaining warmth without the energy consumption spikes which are typically associated with extreme cold weather. By achieving this certification, our system stands out as a reliable, eco-friendly solution for homes in colder regions, aligning perfectly with global decarbonization and sustainability goals.

    Bhaskar Panigrahi, Chairman and Chief Executive Officer of ConnectM, commented, “Receiving AHRI Cold Climate Certification validates the Company’s AI-driven heat pump’s ability to operate efficiently and effectively in temperatures as low as -15°F. This certification is crucial as it provides consumers with the assurance that ConnectM’s heat pump not only meets but exceeds the industry benchmarks, specifically 5ºF and below, for energy savings and comfort. Homeowners in colder climates can now benefit from cutting-edge technology that drastically reduces their energy consumption, lowers heating costs, and helps to decrease their carbon footprint.”

    As part of the Company’s ongoing efforts to make advanced heating technology accessible, ConnectM is proud to announce that its certified heat pump will be available through its nationwide network of ConnectM Service providers in Q4 2024. Customers can now enjoy the benefits of this intelligent heat pump, powered by advanced AI algorithms that optimize performance based on real-time environmental data. These features ensure not only energy efficiency but also peak performance during the most challenging cold weather conditions.

    About ConnectM Technology Solutions, Inc.   

    ConnectM is a technology company focused on advancing the electrification economy by integrating electrified energy assets with its AI-powered technology solutions platform. The Company provides residential and light commercial buildings and all-electric original equipment manufacturers with a proprietary Energy Intelligence Network platform to accelerate the transition to solar and all-electric heating, cooling, and transportation. Leveraging technology, data, artificial intelligence, contemporary design, and behavioral economics, ConnectM aims to make electrification more user-friendly, affordable, precise, and socially impactful. As a vertically integrated company with wholly owned service networks and a comprehensive technology stack, ConnectM empowers customers to reduce their reliance on fossil fuels, lower overall energy costs, and minimize their carbon footprint.

    For more information, please visit: https://www.connectm.com/

    Contact:

    MZ North America
    (203) 741-8811

    ConnectM@mzgroup.us

    The MIL Network –