Economy – Page 1389 – NewzIntel.com

MIL-OSI Australia: NSW Government takes action after customers unlawfully charged for merchant fees

Source: New South Wales Government 2

Headline: NSW Government takes action after customers unlawfully charged for merchant fees

Published: 23 October 2024

Released by: Minister for Customer Service and Digital Government, Minister for Finance

Merchant fee surcharges were levied on tens of millions of customer card transactions, despite repeated legal advice during the term of the former Liberal-National government that the government agency surcharges were unlawful.

The issue was identified by the NSW Auditor-General during settlement of the Department of Customer Service (DCS) financial statements for 2023-24 and brought to the attention of the current Government.

The current Secretary of DCS, Graeme Head, sought further information from his Department which revealed that Service NSW’s practice of charging merchant fees had been flagged as unlawful in legal advice received from the Crown Solicitor’s Office between February 2016 and December 2022. Despite this, merchant fees continued to be passed onto customers.

Merchant fee surcharges are levied to recoup transaction fees charged by payment providers including banks. Recouping the cost of merchant fees was directed by NSW Treasury in 2012.

Typical surcharges on Service NSW transactions include 30 cents for a 1-year licence renewal, 29 cents for a marriage certificate and $1.92 to renew registration for a small car (like a Toyota Corolla). The average surcharge on a Revenue NSW payment in 2023-24 was $0.92.

It’s currently estimated that 92 million transactions unlawfully incurred about $144 million in merchant fees from 2016 across Service NSW and Revenue NSW.

The Minns Labor Government has established an incident management taskforce and is progressing urgent work to shut down the unlawful charging of merchant fees.

People who have been charged fees are encouraged to register for updates on the Government’s response at service.nsw.gov.au/about-us/our-services/merchant-fees or by calling Service NSW on 13 77 88.

The Treasurer, Minister for Customer Service and Digital Government, and Minister for Finance have written to the NSW Ombudsman requesting an investigation into possible serious maladministration.

The Secretary of DCS has also referred the matter to the Ombudsman and the Independent Commission Against Corruption, noting the apparent failure to act on the 2016 Crown Solicitor’s advice.

The taskforce led by DCS has switched off fees being charged directly by Revenue NSW and the Rental Bond Board, and stopped fees on more than 80 per cent of Service NSW transactions.

Merchant fee surcharges have been switched off for more than 90 per cent of online payments, including the top 12 Service NSW transactions such as renewing a driver licence or vehicle registration or paying a fine.

Service NSW is urgently continuing work to switch off fees on all remaining transactions, including thousands of credit card terminals in Service NSW Service Centres. These transactions span several technology platforms and are conducted on behalf of multiple agencies.

While this work is being completed, alternate payment methods are available which do not incur a surcharge, such as paying in a Service Centre by cash or online with over-the-counter support from Service NSW staff.

The majority of Government transactions take place through Service NSW, but as a result of this information being uncovered, all departments have been instructed to report to NSW Treasury by 30 November on whether they charge merchant fees for services and to confirm they have the legal authority to do so.

Quotes attributable to Minister for Customer Service and Digital Government Jihad Dib:

“Our most immediate priority has been to stop these charges as quickly as possible.”

“It is deeply concerning that this practice has been ongoing, despite legal concerns being raised.”

“While the individual amounts typically charged may appear to be small, they have been charged unlawfully.”

“The community rightfully deserves an explanation about how this was allowed to continue for so long under the previous government.”

Quotes attributable to Minister for Finance Courtney Houssos:

“We have acted swiftly to establish a taskforce to deal with this issue. Our immediate efforts are focused on switching off the payment methods that charge these merchant fees as quickly as possible.

“We will get to the bottom of what happened and why millions of people were unlawfully charged merchant fees.

“Families, households and businesses expect governments to conduct themselves lawfully. That’s why all agencies have been instructed to examine their own processes.”

MIL OSI News –

January 24, 2025

MIL-Evening Report: New Caledonia crisis: Pacific leaders’ mission must ‘look beyond surface’

INTERVIEW: By Don Wiseman, RNZ Pacific senior journalist

Last week, New Caledonia was visited by France’s new Overseas Minister, François Buffet, offering a more conciliatory position by Paris.

This week, the territory, torn apart by violent riots, is to receive a Pacific Islands Forum fact-finding mission comprised of four prime ministers.

New Caledonia has been riven with violence and destruction for much of the past five months, resulting in 13 deaths and countless cases of arson.

Islands Business journalist Nic Maclellan is back there for the first time since the rioting began on May 13 and RNZ Pacific asked for his first impressions.

Nic Maclellan: Day by day, things are very calm. It’s been a beautiful weekend, and there were people at the beach in the southern suburbs of Nouméa. People are going about their daily business. And on the surface, you don’t really notice that there’s been months of clashes between Kanak protesters and French security forces.

But every now and then, you stumble across a site that reminds you that this crisis is still, in many ways, unresolved. As you leave Tontouta Airport, the main gateway to the islands, for example, the airport buildings are surrounded by razor wire.

The French High Commission, which has a very high grill, is also topped with razor wire. It’s little things like that that remind you, that despite the removal of barricades which have dotted both Noumea and the main island for months, there are still underlying tensions that are unresolved.

And all of this comes at a time of enormous economic crisis, with key industries like tourism and nickel badly affected by months of dispute. Thousands of people either lost their jobs, or on part-time employment, and uncertainty about what capacity the French government brings from Paris to resolve long standing problems.

Don Wiseman: Well, New Caledonia is looking for a lot of money in grant form. Is it going to get it?

NMac: With, people I’ve spoken to in the last few days and with statements from major political parties, there’s enormous concern that political leaders in France don’t understand the depth of the crisis here; political, cultural, economic. President Macron, after losing the European Parliament elections, then seeing significant problems during the National Assembly elections that he called the snap votes, finds that there’s no governing majority in the French Parliament.

It took 51 days to appoint a new prime minister, another few weeks to appoint a government, and although France’s Overseas Minister Francois Noel Buffet visited last week, made a number of pledges, which were welcomed, there was sharp criticism, particularly from anti-independence leaders, from the so called loyalists, that France hadn’t recognised the enormity of what’s happened, and to translate that into financial commitments.

The Congress of New Caledonia passed a bipartisan, or all party proposal, for significant funding over the next five years, amounting to almost 4 billion euros, a vast sum, but money required to rebuild shattered economic institutions and restore public institutions that were damaged during months of riots and arson, is not there.

France faces, in Metropolitan France, a major fiscal crisis. The current Prime Minister Michel Barnier announced they cut $250 million out of funding for overseas territories. There’s a lot of work going on across the political spectrum, from politicians in New Caledonia, trying to make Paris understand that this is significant.

DW: Does Paris understand what happened in New Caledonia back in the 1980s?

NMac: Some do. I think there’s a real problem, though, that there’s a consistency of French policy that is reluctant to engage with France’s responsibilities as what the United Nations calls it, “administering power of a non-self-governing territory”.

You know, it’s a French colony. The Noumea Accord said that there should be a transition towards a new political status, and that situation is unresolved. Just this morning (Tuesday), I attended the session of the Congress of New Caledonia, which voted in majority that the provincial elections should be delayed until late next year, late 2025.

The aim would be to give time for the French State and both supporters and opponents of independence to meet to talk out a new political statute to replace the 1998 Noumea Accord. However, it’s clear from different perspectives that have been expressed in the Congress that there’s not a meeting of minds about the way forward. And key independence parties in the umbrella coalition, the FLNKS make it clear that they only see a comprehensive agreement possible if there’s a pathway forward towards sovereignty, even with a period of inter-dependence with France and over time to be negotiated.

The loyalists believe that that’s not a priority, that economic reconstruction is the priority, and a talk of sovereignty at this time is inappropriate. So, there’s a long way to go before the French can bring people together around the negotiating table, and that will play out in coming weeks.

DW: The new Overseas Minister seems to have taken a very conciliatory approach. That must be helpful.

NMac: For months and months, the FLNKS said that they were willing to discuss electoral reforms, opening up the voting rolls for the local political institutions to more French nationals, particularly New Caledonian-born citizens, but that it had to be part of a comprehensive, overarching agreement.

The very fact that President Macron tried to force key independence parties, particularly the largest, Union Caledoniénne, to the negotiating table by unilaterally trying to push through changes to these voting rules triggered the crisis that began on the 13th of May.

After five months of terrible destruction of schools, of hospitals, thousands of people, literally leaving New Caledonia, Macron has realised that you can’t push this through by force. As you say, Overseas Minister Buffet had a more conciliatory tone. He reconfirmed that the controversial reforms to the electoral laws have been abandoned. Doesn’t mean they won’t come back up in discussions in the future, but we’re back at square one in many ways, and yet there’s been five months of really terrible conflict between supporters and opponents of independence.

The fact that this is unresolved is shown by the reality that the French High Commissioner has announced that the overnight curfew is extended until early November, that the French police and security forces that have been deployed here, more than 6000 gendarmes, riot squads backed by armoured cars, helicopters and more, will be held until at least the end of the year.

This crisis is unresolved, and I think as Pacific leaders arrive this week, they’ll have to look beyond the surface calm to realise that there are many issues that still have to play out in the months to come.

DW: So with this Forum visit, how free will these people be to move around to make their own assessments?

NMac: I sense that there’s a tension between the government of New Caledonia and the French authorities about the purpose of this visit. In the past, French diplomats have suggested that the Forum is welcome to come, to condemn violence, to address the question of reconstruction and so on.

But I sense a reluctance to address issues around France’s responsibility for decolonisation, at the same time, key members of the delegation, such as Prime Minister Manele of Solomon Islands, Prime Minister Rabuka, have strong contacts through the Melanesian Spearhead Group, with members of the FLNKS and the broader political networks here. To that extent, there’ll be informal as well as formal dialogue. As the Forum members hit the ground after a long delay to their mission.

DW: There have been in the past, Forum groups that have gone to investigate various situations, and they’ve tended to take a very superficial view of everything that’s going on.

NMac: I think there are examples where the Forum missions have been very important. For example, in 2021 at the time of the third referendum on self-determination, the one rushed through by the French State in the middle of the covid pandemic, a delegation led by Ratu Inoke Kubuabola, a former Fiji Foreign Minister, with then Secretary-General of the Forum, Henry Puna, they wrote a very strong report criticising the legitimacy and credibility of that vote, because the vast majority of independence supporters, particularly indigenous Kanaks, didn’t turn out for the vote.

France claims it’s a strong no vote, but the Forum report, which most people haven’t read, actually questions the legitimacy of this politically. The very fact that four prime ministers are coming, not diplomats, not ministers, not just officials, but four prime ministers of Forum member countries, shows that this is an important moment for regional engagement.

Right from the beginning of the crisis, the then chair of the Forum, Mark Brown, who’ll be on the delegation, talked about the need for the Forum to create a neutral space for dialogue, for talanoa, to resolve long standing differences.

The very presence of them, although it hasn’t had much publicity here so far, will be a sign that this is not an internal matter for France, but in fact a matter of regional and international attention.

This article is republished under a community partnership agreement with RNZ.

MIL OSI Analysis – EveningReport.nz –

January 24, 2025

MIL-OSI China: Xi highlights BRICS’ role in driving multipolarity, globalization ahead of Kazan Summit

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

Xi highlights BRICS’ role in driving multipolarity, globalization ahead of Kazan Summit

Chinese President Xi Jinping meets with Russian President Vladimir Putin in Kazan, Russia, Oct. 22, 2024. [Photo/Xinhua]

KAZAN, Russia, Oct. 22 — Chinese President Xi Jinping on Tuesday underscored the role of BRICS as “a pillar” in promoting a multipolar world and fostering an inclusive economic globalization ahead of leaders’ formal meetings at the 2024 BRICS summit in Kazan, Russia.

The BRICS mechanism is the world’s most important platform for solidarity and cooperation between emerging markets and developing countries, Xi said during a meeting with Russian President Vladimir Putin on the sidelines of the summit.

The Kazan Summit marks the first in-person BRICS gathering since the group expanded its membership last year in Johannesburg, South Africa. More than 30 countries attend this year’s summit which runs until Thursday.

Xi told Putin, who chairs the summit, that he expected to have an in-depth discussion with Putin and other world leaders on the future development of the BRICS cooperation mechanism, so as to secure more opportunities for the Global South.

One of the key priorities of Russia’s BRICS chairmanship is integrating the new members into the BRICS framework, according to the official website. Other areas of practical cooperation include boosting trade and direct investment, as well as fostering a balanced and equitable transition to a low-carbon economy.

BRICS countries are expected to deepen consensus on strategic communication and practical cooperation for the group’s future development, said Wang Lei, director of the BRICS Cooperation Research Center at Beijing Normal University.

Wang also expressed hope for productive engagement between BRICS and the broader Global South at the summit to promote shared global development and uphold the effectiveness of multilateral governance systems.

Kazan, the capital of Tatarstan and the fifth-largest city in Russia, holds historical and cultural significance. During their meeting, Xi told Putin that around 400 years ago, the Great Tea Road that connected the two countries went past Kazan, through which tea leaves from China’s Wuyi Mountain region found their way into many Russian households.

The city is also home to Kazan Federal University, where notable figures like the Russian writer Leo Tolstoy and Russian revolutionary leader Vladimir Lenin studied.

Around noon on Tuesday, Xi arrived at Kazan International Airport, greeted by Russian officials. Kazan Mayor Ilsur Metshin told Xinhua that the city is honored to host the Chinese leader.

Guards of honor lined both sides of a red carpet to salute the Chinese leader, while Russian youths in traditional attire offered a warm welcome. Russian fighter jets escorted Xi’s plane before its landing.

“It is very important that, at the moment, we have such a good leader who can introduce new initiatives,” said Timirkhan Alishev, vice rector for International Affairs, Kazan Federal University, speaking of Xi’s role in international affairs.

Alishev told Xinhua that all initiatives introduced by China are rooted in multilateralism, fostering communication and dialogue on multiple levels.

“We see China puts a lot of efforts to develop BRICS,” said Alishev. “There are no preconditions for BRICS cooperation … You can start dialogue on equal basis with everybody.”

The term BRIC was initially coined in 2001 by Jim O’Neill, former chief economist at Goldman Sachs, as an investment concept referring to emerging market economies of Brazil, Russia, India and China. With South Africa’s inclusion in 2010, BRICS officially took shape.

After last year’s expansion, BRICS grouping now accounts for about 30 percent of the global GDP, nearly half of the global population and one-fifth of global trade. “Measured by GDP, the BRICS countries have already surpassed the G7 in importance,” said Dilma Rousseff, president of the New Development Bank (NDB), in a recent interview with Xinhua.

“I think this BRICS meeting is very important … At the moment, the countries of the Global South are in great need of funding. And the conditions for obtaining it are quite complicated,” Rousseff said during a meeting with Putin in Kazan on Tuesday.

Observers see the BRICS Summit as an opportunity for Global South countries to voice their needs. Victoria Fedosova, deputy director of the Institute for Strategic Research and Forecasts of the Russian Peoples’ Friendship University, said the very dynamic development of BRICS and the growth in membership reflect a demand for a platform for addressing global issues.

“The BRICS mechanism has enormous potential in adjusting the imbalances in global development accumulated over the last 80 years,” said Fedosova.

Other than the countries that became new full members on Jan. 1, 2024, over 30 countries like Thailand, Malaysia, Türkiye and Azerbaijan have either formally applied for or expressed interest in its membership, while many other developing countries are seeking deeper cooperation with the group.

As its influence expands, BRICS has gained appeal among many countries, particularly in the Global South, by offering them concrete advantages, said Zukiswa Roboji, a researcher at Walter Sisulu University in South Africa.

“BRICS has undoubtedly made notable strides in recent years,” said Roboji. It offers emerging economies easier access to financial resources and better opportunities for trade, investment and development, the expert added.

MIL OSI China News –

January 24, 2025

MIL-OSI: Mount Logan Capital Inc. Schedules Release of Third Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

TORONTO, Oct. 22, 2024 (GLOBE NEWSWIRE) — Mount Logan Capital Inc. (CBOE: MLC) (“Mount Logan” or the “Company”) will release its financial results for the third quarter ended September 30, 2024 after market close on Thursday, November 7, 2024. The Company will host a conference call on Tuesday, November 12, 2024, at 12:00 p.m. Eastern Time to discuss these results. Shareholders, prospective shareholders, and analysts are welcome to listen to the conference call. To join the call, please use the dial-in information below. A recording of the conference call will be available on Mount Logan’s website http://www.mountlogancapital.ca in the Investor Relations section under “Events”.

Canada Dial-in Toll Free: 1-833-950-0062
US Dial-in Toll Free: 1-833-470-1428
International Dial-in:
Access Code: 672430

About Mount Logan Capital Inc.
Mount Logan Capital Inc. is an alternative asset management and insurance solutions company that is focused on public and private debt securities in the North American market and the reinsurance of annuity products, primarily through its wholly-owned subsidiaries Mount Logan Management LLC and Ability Insurance Company (“Ability”), respectively. The Company also actively sources, evaluates, underwrites, manages, monitors and primarily invests in loans, debt securities, and other credit-oriented instruments that present attractive risk-adjusted returns and present low risk of principal impairment through the credit cycle.

Ability is a Nebraska domiciled insurer and reinsurer of long-term care policies acquired by Mount Logan in the fourth quarter of fiscal year 2021. Ability is unique in the insurance industry in that its long-term care portfolio’s morbidity risk has been largely re-insured to third parties, and Ability is no longer insuring or re-insuring new long-term care risk.

This press release is not, and under no circumstances is it to be construed as, a prospectus or an advertisement and the communication of this release is not, and under no circumstances is it to be construed as, an offer to sell or an offer to purchase any securities in the Company or in any fund or other investment vehicle. This press release is not intended for U.S. persons. The Company’s shares are not and will not be registered under the U.S. Securities Act of 1933, as amended, and the Company is not and will not be registered under the U.S. Investment Company Act of 1940 (the “1940 Act”). U.S. persons are not permitted to purchase the Company’s shares absent an applicable exemption from registration under each of these Acts. In addition, the number of investors in the United States, or which are U.S. persons or purchasing for the account or benefit of U.S. persons, will be limited to such number as is required to comply with an available exemption from the registration requirements of the 1940 Act.

Contacts:
Mount Logan Capital Inc.
365 Bay Street, Suite 800
Toronto, ON M5H 2V1
info@mountlogancapital.ca

Nikita Klassen
Chief Financial Officer
Nikita.Klassen@mountlogancapital.ca

The MIL Network –

January 24, 2025

MIL-OSI United Kingdom: Government pledges to make UK ‘top destination for women’s sport investment’ following record-breaking summit

Source: United Kingdom – Executive Government & Departments

The government has launched the 2024-25 Women’s Sport Investment Accelerator scheme, helping to attract more private investment in women’s sport and drive growth into the sector.

New scheme launched to attract more private investment in women’s sport to help drive growth in the sector.
Over 20 leagues, teams and competitions across 9 different sports set to benefit, including England Women’s Cricket and Barclays Women’s Super League.
Follows record-breaking International Investment Summit which secured over £63bn of private investment into the UK.

Women’s sport in the UK is set for a massive boost as the Government announces a scheme to drive investment in elite clubs and leagues across the country, as part of a new pledge to make the UK the world’s top destination for women’s sport investment.

The scheme will prioritise development, commercial growth and financial sustainability. Sponsorship and investment are key to increasing visibility and inspiring young female athletes to ensure greater talent pathways are created, and to develop their careers in sport.

Investment Minister Poppy Gustafsson will today [Wednesday 23 October] launch the 2024-25 Women’s Sport Investment Accelerator scheme, which will bring over 20 elite leagues, competitions and teams across nine different sports, such as the Barclays Women’s Super League and England Women’s Cricket, together with investors and industry experts to help them secure transformational investment and sponsorships.

It will provide them with comprehensive market insights, seminars, connections and networking opportunities over a series of sessions, led by the Department for Business and Trade in collaboration with Deloitte, which will give them the tools and expert insight to help them attract investment and grow their business.

Investment Minister Poppy Gustafsson will launch the scheme at a sport investment conference at Rothschild & Co today, involving leaders from major UK sports and some of the world’s most prominent investors.

Minister for Investment Poppy Gustafsson said:

The UK is already an elite home of women’s sport, and my goal is to make us the top destination for women’s sport investment.

The launch of this scheme, a week after our record-breaking International Investment Summit, shows the UK is truly the best place to do business in this fast-growing industry.

Off the back of the latest figures showing the industry could be worth over £1 billion this year, I’m looking forward to speaking to investors and clubs, leagues and teams today about how the Accelerator can drive this growth even further.

The scheme will capitalise on the rapid growth of the women’s sport industry, which is expected to be worth over £1 billion by the end of the year according to Deloitte, marking a 300 percent increase since 2021.

By supporting women’s sport to attract new private investment into the UK it will help deliver on the Government’s central Growth Mission, building on existing support for growing women’s sport including the £30 million Lionesses Future Fund and over £12 million to grow women’s rugby.

It follows a successful pilot of the scheme in 2023-24 which supported leagues, teams and competitions across football, cricket, rugby and more to secure game-changing investment and sponsorship deals.

Now, with two new sports and a range of new competitions and teams signed up, the scheme will provide even more dedicated advice and support to attract investment and offer more connections with investors.

The launch also comes after major recent UK women’s sport investment successes, including a £45 million sponsorship deal for the Barclays Women’s Super League, Michelle Kang’s acquisition of the London City Lionesses, and the England & Wales Cricket Board launching the process to secure private investment into The Hundred early next year.

Minister for Sport Stephanie Peacock said:

Women’s sport has been growing rapidly in recent years and we are committed to supporting its expansion, from the grassroots to elite level.

Last year, we welcomed Karen Carney OBE’s Review of Women’s Football which addressed the importance of growing investment in women’s sport.

As Sports Minister, I want to see as many women and girls as possible enjoy sport and physical activity, and this scheme will be instrumental in securing investment to grow the sector even further.

England & Wales Cricket Board Director of the Women’s Professional Game Beth Barrett-Wild said:

The first edition of the Women’s Sport Investment Accelerator scheme provided an engine to help power conversations and connections between rights holders, investors, and commercial partners, with expert insight from Deloitte helping to deepen understanding for all about the landscape and opportunities.

I’m really looking forward to the launch of year two, and the chance to take this discussion to the next level, as we all work together to unlock the full potential of women’s sport.

Deloitte Sports Business Group Lead Partner Tim Bridge said:

We’re witnessing a surge in investment opportunities within women’s sport. The rise of dedicated funds and brand sponsorships for women’s and girls’ clubs, leagues and competitions signals a powerful shift. The Accelerator programme has been built to connect investors and brands with these opportunities, showcasing the strength and remarkable growth potential of women’s sport. This influx of investment will be instrumental in driving professionalisation and boosting participation across the UK, creating a lasting impact for women’s sport at all levels while delivering significant economic returns.

The Government’s pledge to make the UK the top destination for women’s sport investment comes after the record-breaking International Investment Summit held just last week, which secured £63 billion of private investment into the UK which will create over 38,000 new jobs across the country.

Full list of the elite sports represented in the 2024-25 Women’s Sport Investment Accelerator:

Football
Cricket
Rugby union
Rugby league
Tennis
Golf
Netball
Volleyball
Cycling

Published 23 October 2024

MIL OSI United Kingdom –

January 24, 2025

MIL-OSI United Kingdom: Labour must bring councils back from “cliff edge” – Plaid Cymru Council Leaders

Source: Party of Wales

Plaid Cymru Council leaders have warned that Welsh councils face falling off a cliff edge unless both Labour governments take urgent action to address significant funding pressures.

In a letter to the UK Chancellor and First Minister, the leaders of Carmarthenshire, Gwynedd, Ceredigion and Ynys Môn Councils along with the Deputy leader of Neath Port Talbot Council say “it is no exaggeration to say that many councils find themselves on the brink of financial ruin and there is a duty on both Welsh and UK governments to act.”

Writing ahead of next week’s UK government budget, Darren Price, Nia Jeffreys, Bryan Davies Gary Pritchard and Alun Llewelyn warn that a failure to act now will mean ”many services that protect the most vulnerable in society disappearing altogether.”

Writing to Rachel Reeves and Eluned Morgan ahead of next week’s budget they say:

“Whilst appreciating that the challenges you face are significant following 14 years of austerity, it is no exaggeration to say that many councils find themselves on the brink of financial ruin and there is a duty on both Welsh and UK governments to act.

The UK Budget presents an opportunity to provide urgent additional funding to Wales for critical Services such as social care, children’s services, schools and highways.

Without adequate levels of funding, our schools will continue to lack the resources they need to give pupils the education they deserve. As the National Association of Head Teachers amplified in its report last month, spending per pupil has fallen by around 6% in real terms – an unsustainable situation if we are to truly give learners the best start in life.

The Welsh Local Government Association estimates that local authorities in Wales face additional financial pressures of £559m for 2025-26. This would require a spending increase of just over 7% in net revenue.

To address a pressure of £559m, without additional funding, will require a mix of council tax increases and further cuts to services and efficiencies. The pressure is equivalent to a 26% increase in council tax, or the loss of just under 14,000 posts.

We know that we speak for all Local Authority leaders in Wales when we say that the weight of responsibility when it comes to protecting the most vulnerable in our communities is felt more acutely than ever.

We trust that your respective governments will work together as you have repeatedly pledged to do to ensure that Wales receives a fair deal from the UK Budget and that our councils get the urgent financial support they so desperately need.

Failure to do this will see many councils falling off the cliff edge with many services that protect the most vulnerable in society disappearing altogether and leaving a lasting legacy of inequality and deprivation.”

A copy of the letter is below:

Dear Chancellor and First Minister,

We write in advance of the UK Budget on 30 October to express our grave concerns at the state of Local Authority finances in Wales.

Whilst appreciating that the challenges you face are significant following 14 years of austerity, it is no exaggeration to say that many councils find themselves on the brink of financial ruin and there is a duty on both Welsh and UK governments to act.

The General Secretary of UNISON, Chrstina McAnea, has already warned that numerous critical services and a considerable number of jobs are under threat, posing the risk of doing irreversible damage to our communities.

The UK Budget presents an opportunity to provide urgent additional funding to Wales for critical Services such as social care, children’s services, schools and highways.

Without adequate levels of funding, our schools will continue to lack the resources they need to give pupils the education they deserve. As the National Association of Head Teachers amplified in its report last month, spending per pupil has fallen by around 6% in real terms – an unsustainable situation if we are to truly give learners the best start in life.

The Welsh Local Government Association estimates that local authorities in Wales face additional financial pressures of £559m for 2025-26. This would require a spending increase of just over 7% in net revenue.

To address a pressure of £559m, without additional funding, will require a mix of council tax increases and further cuts to services and efficiencies. The pressure is equivalent to a 26% increase in council tax, or the loss of just under 14,000 posts.

We know that we speak for all Local Authority leaders in Wales when we say that the weight of responsibility when it comes to protecting the most vulnerable in our communities is felt more acutely than ever.

We trust that your respective governments will work together as you have repeatedly pledged to do to ensure that Wales receives a fair deal from the UK Budget and that our councils get the urgent financial support they so desperately need.

Failure to do this will see many councils falling off the cliff edge with many services that protect the most vulnerable in society disappearing altogether and leaving a lasting legacy of inequality and deprivation.

Yn gywir,

Darren Price, Leader of Carmarthenshire County Council

Bryan Davies, Leader of Ceredigion County Council

Gary Pritchard, Leader of Ynys Mon County Council

Nia Jeffreys, Deputy Leader of Cyngor Gwynedd

Alun Llewelyn, Deputy Leader of Neath Port Talbot

MIL OSI United Kingdom –

January 24, 2025

MIL-OSI USA: Casey, Fetterman, Deluzio, Lee Announce $6 Million for Pittsburgh International Airport

US Senate News:

Source: United States Senator for Pennsylvania Bob Casey

Funding will help improve the terminal building

Airport Terminal Program funding comes from infrastructure law

With this funding, Pittsburgh International Airport has received more than $129 million in federal funding since the start of 2021

Washington, D.C. – Today, U.S. Senators Bob Casey (D-PA) and John Fetterman (D-PA) and U.S. Representatives Chris Deluzio (D-PA-17) and Summer Lee (D-PA-12) announced that Pittsburgh International Airport (PIT) is receiving $6,000,000 in competitive grant funding to modernize and rehabilitate the terminal. This funding comes from the Airport Terminal Program (ATP), which was created by the bipartisan Infrastructure Investment and Jobs Act (IIJA) to revitalize the Nation’s aging airports.

“Pittsburgh International Airport is an essential connection between the region and the world, and it’s critical that the terminals are safe and can meet passenger needs. This investment from the infrastructure law will support ongoing efforts to modernize the airport by replacing floors, bulkheads, and decades-old moving walkways,” said Senator Casey. “I will always fight for investments that boost Southwestern Pennsylvania’s economy and keep the region moving.”

“Pittsburgh’s airport should reflect the grit and resilience of the city it serves and this $6 million investment helps make that happen. Upgrading parts of the terminal that have been in place for over 30 years will help bring our airport back up to speed, create jobs, and ensure it serves both the community and travelers with true Pittsburgh pride,” said Senator Fetterman.

“The Infrastructure Law is still at work in Western PA, this time bringing home $6 million more for the Pittsburgh International Airport terminal updates,” said Congressman Deluzio. “The airport is not only a place where people catch flights: but it’s also a workplace, employer, and economic hub. We need to make sure it works as smoothly as possible, and that we help out airport be the best it can be. I’m proud federal funding from the Infrastructure Law is a part of that effort.”

“Today’s announcement of $6 million in federal funding for Pittsburgh International Airport is a big win for the people of Pittsburgh and the hardworking travelers who rely on safe, accessible, and efficient airports. This investment is about putting people first by creating good-paying jobs, ensuring smoother and safer travel experiences, and revitalizing a space that millions pass through each year. It’s also a commitment to the growth and well-being of our community, helping Pittsburgh remain a hub of opportunity and progress for all who live, work, and visit here,” said Congresswoman Lee.

The funding for Pittsburgh International Airport will support the Terminal Modernization Program, which includes installing new flooring, restoring columns and bulkheads, and replacing 32-year-old moving walkways in the concourses. Since the infrastructure law was passed, millions of dollars have been allocated to PIT. In June 2024, Casey, Fetterman, Deluzio, and Lee announced $20.6 million for PIT to support their ongoing terminal improvement project. In February 2024, the Members announced $5.3 million in new infrastructure funding to fund a component of the 700,000 square foot landslide terminal construction. PIT has received a total of $129,706,728 since the start of 2021.

MIL OSI USA News –

January 24, 2025

MIL-OSI USA: Casey, Fetterman, Boyle, Evans, Scanlon, Parker Announce $27.5 Million for Philadelphia International Airport

US Senate News:

Source: United States Senator for Pennsylvania Bob Casey

Funding will be used to upgrade terminals, including modernizing HVAC and electrical systems

With this funding, PHL has received more than $347 million in federal funding since the start of 2021

Washington, D.C. – Today, U.S. Senators Bob Casey (D-PA) and John Fetterman (D-PA) and U.S. Congresswoman Mary Gay Scanlon (D-PA-5), Congressman Dwight Evans (D-PA-3), and Congressman Brendan Boyle (D-PA-2) and Philadelphia Mayor Cherelle L. Parker announced that Philadelphia International Airport is receiving $27,500,000 in new federal infrastructure funding from the U.S. Department of Transportation (DOT). This funding comes from the Airport Terminal Program (ATP), which was created by the bipartisan Infrastructure Investment and Jobs Act (IIJA) to revitalize the Nation’s aging airports.

“Philadelphia International Airport serves as a vital transportation and economic gateway to the rest of the Commonwealth and the world,” said Senator Casey. “This investment from the infrastructure law will help modernize the airport by upgrading HVAC and electrical systems in Terminals D and E. I will always fight for investments that boost Southeastern Pennsylvania’s economy and keep the region moving.”

“It’s investments like this that help keep Philadelphia a world-class city with world-class infrastructure. This $27.5 million for terminal energy upgrades guarantees that the commonwealth’s largest airport stays efficient, resilient, and ready for the future. That’s how we keep Philly competitive and connected,” said Senator Fetterman.

“I’m pleased to see another $27.5 million in federal funding that I voted for coming to Philadelphia! The airport has also received other federal funding for improvements through the Biden-Harris administration’s Infrastructure Investment and Jobs Act, and this will all benefit people traveling from and to our area, along with our local economy,” said Congressman Evans.

“I’m proud to see PHL earning the competitive grants we authorized in the Bipartisan Infrastructure Law, bringing good jobs to our region as PHL upgrades its terminals.” said Congresswoman Scanlon. “Modernizing our region’s airport infrastructure will improve air travel for passengers and position our local economy for success in an increasingly competitive global economy.”

“It is tremendous news that our Philadelphia International Airport will be receiving $27.5 million from the Federal Aviation Administration to help with important HVAC and energy efficiency projects,” said Philadelphia Mayor Cherelle L. Parker. “Every single federal grant or funding allocation coming into Philadelphia is because of the hard work of all our federal partners, including Senator Casey and every member of our delegation, along with the support of the Biden-Harris administration. It’s another step forward for Philadelphia, and we are profoundly grateful.”

The funding for Philadelphia International Airport will support improvements to the existing upper levels of portions of Terminals D & E that have reached the end of their useful lives, including HVAC and electrical efficiency upgrades and improvements. PHL has received a total of $374,545,577 in federal investments since the start of 2021.

MIL OSI USA News –

January 24, 2025

MIL-OSI USA: Casey, Fetterman Announce More Than $3 Million for Harrisburg International Airport

US Senate News:

Source: United States Senator for Pennsylvania Bob Casey

Funding will help improve the terminal building by replacing escalators and renovating bathrooms

Airport Terminal Program funding comes from infrastructure law

With this funding, Harrisburg International Airport has received more than $63 million in federal funding since the start of 2021

Washington, D.C. – Today, U.S. Senators Bob Casey (D-PA) and John Fetterman (D-PA) announced that Harrisburg International Airport is receiving a total of $3,088,114 in new federal funding from the Federal Aviation Administration (FAA) to modernize and rehabilitate the terminal. The awards, made possible by the bipartisan Infrastructure Investment and Jobs Act (IIJA), will support airport terminal improvement by replacing escalators and renovating bathrooms.

“Improving the passenger experience in our airports is critical to keeping our Commonwealth moving. This grant from the infrastructure law will help modernize Harrisburg International Airport by replacing escalators and renovating bathrooms throughout the terminal,” said Senator Casey. “I will keep pushing for investments in our Commonwealth’s infrastructure that improve Pennsylvanians’ travel experiences and boost our economy.”

“Every dollar counts when it comes to keeping our airports modern, safe, and accessible. Renovating restrooms might not be glamorous, but it’s a vital investment in making sure every traveler gets the best experience in our state capital,” said Senator Fetterman.

This funding comes from the Airport Terminal Program (ATP), created by IIJA to revitalize aging airports across the Nation. Harrisburg International Airport is receiving $2,449,089 to replace escalators in the terminal. Additionally, the airport is receiving $639,025 to renovate the terminal’s bathrooms. Since the infrastructure law was passed, millions of dollars have been allocated to Harrisburg International Airport. In February 2024, Senators Casey and Fetterman announced $7.5 million to improve passenger safety by replacing jet bridges.

Harrisburg International Airport has received $63,299,831 in federal funding since the start of 2021.

MIL OSI USA News –

January 24, 2025

MIL-OSI China: IMF maintains 2024 global growth forecast at 3.2 pct, warns of geopolitical tensions

Source: China State Council Information Office

The International Monetary Fund (IMF) on Tuesday maintained its global growth forecast in 2024 at 3.2 percent, consistent with its projection in July, according to its newly released World Economic Outlook (WEO).

The level of uncertainty surrounding the global economic outlook is high, the report noted.

“Newly elected governments (about half of the world population has gone or will go to the polls in 2024) could introduce significant shifts in trade and fiscal policy,” the report said.

IMF Chief Economist Pierre-Olivier Gourinchas speaks at a press conference in Washington, D.C., the United States, on Oct. 22, 2024. (Xinhua/Hu Yousong)

“Moreover, the return of financial market volatility over the summer has stirred old fears about hidden vulnerabilities. This has heightened anxiety over the appropriate monetary policy stance — especially in countries where inflation is persistent and signs of slowdown are emerging,” it further said.

The report also noted that a further intensification of geopolitical rifts could weigh on trade, investment and the free flow of ideas. “This could affect long-term growth, threaten the resilience of supply chains, and create difficult trade-offs for central banks,” it said.

In response to a question from Xinhua, IMF Chief Economist Pierre-Olivier Gourinchas said at a press conference that rising geopolitical tensions are “something that we are very concerned about,” noting that there are two dimensions of the impact.

“One is, of course, if you increase tariffs, for instance, between different blocks, that will disrupt trade, that will misallocate resources, that will weigh down on economic activity,” said Gourinchas.

“But there is also an associated layer that comes from the uncertainty that increases related to future trade policy, and it will also depress investment, depress economic activity and consumption,” he continued.

The chief economist noted that the IMF has found an impact on global output levels of approximately 0.5 percent in 2026. “So it’s a quite sizable effect of both an increase in tariffs between different countries and an increase in trade policy uncertainty,” he said.

According to the latest WEO report, global growth is projected to hold steady, but there are weakening prospects and rising threats.

The growth outlook is very stable in emerging markets and developing economies, around 4.2 percent this year and next, with continued robust performance from emerging Asia, the report said.

Noting that the return of inflation near central bank targets paves the way for a policy triple pivot, Gourinchas said that the first pivot — on monetary policy — is under way already.

The second pivot is on fiscal policy, he noted. “After years of loose fiscal policy in many countries, it is now time to stabilize debt dynamics and rebuild much-needed fiscal buffers,” Gourinchas said.

The third pivot — and the hardest — is toward growth-enhancing reforms, he said. “Much more needs to be done to improve growth prospects and lift productivity,” he said.

The IMF chief economist noted that while industrial and trade policy measures can sometimes boost investment and activity in the short run, especially when relying on debt-financed subsidies, “they often lead to retaliation and fail to deliver sustained improvements in standards of living.”

“Economic growth must come instead from ambitious domestic reforms that boost technology and innovation, improve competition and resource allocation, further economic integration and stimulate productive private investment,” he added.

MIL OSI China News –

January 24, 2025

MIL-OSI Translation: Save, rebuild and rebuild New Caledonia

MIL OSI Translation. French Polynesian to English –

Source: Government of New Caledonia

On October 17, 21 and 22, the government organized a major conference at the Tjibaou cultural center devoted to the community-led plan for safeguarding, rebuilding and reconstruction (PS2R). Three days during which the government was able to present its vision and measures and discuss with the stakeholders present.

Following the riots that broke out on 13 May 2024, New Caledonia finds itself in an extremely difficult financial, economic and social situation. In this context, the members of the 17th government wanted to put in place a plan for safeguarding, rebuilding and reconstruction, “three concepts that reflect the depth and intensity of the questions that are shaking our country, as we go through a particularly difficult period”, as Louis Mapou indicated during his opening speech on Thursday 17 October.

The PS2R will make it possible to organise short-term safeguard measures, to define in the medium term the major principles on which the future Caledonian model will be based and to identify, for the long term, the priority avenues for reconstruction. It represents “a crucial step for the future of New Caledonia”, according to the President of the Government.

Findings on the current model

In an effort to make the PS2R a concerted and shared approach, the government initiated a series of meetings with institutions, communities, unions, employer organizations, economic stakeholders and civil society before its conference in order to gather their opinions and proposals. An online public consultation was also launched and received approximately 3,000 responses.

This work allowed, in a first step, to make observations on the current models at the economic, health-social, institutional and societal levels. A methodology aimed at having a solid basis for a successful overhaul and to avoid repeating the mistakes of the past.

Building on core values

To achieve these objectives, the government also intends to rely on fundamental values, which are essential for rebuilding the Caledonian model and which must be translated as principles that could constitute the guiding principles of our collective investment:

Kindness and solidarity because it is necessary to provide for the needs of the population in this difficult context and to strengthen social cohesion and community ties. The proximity of public action, to guarantee transparent and effective management of the country’s affairs. But above all because these events have revealed a significant gap between the expression of needs by a large category of the population, particularly Kanak youth, and public action. Complementarity rather than competition, particularly in the management of public affairs, in order to maximize synergies and avoid divisions. Ethics and integrity in governance, in order to restore citizens’ confidence in their institutions.

Values that have made it possible to identify the four pillars on which the re-establishment of the Caledonian model will be based. “These pillars are self-evident to be addressed in this trajectory that we are establishing over three years,” affirmed Louis Mapou.

The first pillar concerns the concept of “living together” which must be the primary, central and collective ambition of New Caledonia. It is based on a common foundation: belonging to this country and the desire to give it its own unique identity. The second pillar concerns our economic model and the desire to make it competitive and attractive by highlighting the wealth of New Caledonia. The third pillar is the social pillar which today needs to be rethought in order to perpetuate the health and social protection systems, so that they can meet the needs of current and future generations. The fourth pillar focuses on the issue of governance with the ambition of making institutions more responsive, more effective and closer to Caledonians.

Clear strategic objectives

In order to work as efficiently as possible, the government has defined, based on the findings and contributions collected, strategic objectives (SO) to be achieved in each model. These objectives will be achieved through concrete measures, some of which are already being considered or implemented.

Business model

OS1 – Preserve decent purchasing power

OS2 – Restore the attractiveness of the territory and the competitiveness of the economy

OS3 – Freeing up financing for the economy

OS4 – Adapting land use planning and infrastructure to the needs of the population

OS5 – Redefining the nickel industry model

OS6 – Major infrastructure works

Health and social model

OS7 – Make the Caledonian health system viable and efficient

OS8 – Controlling social protection expenditure

OS9 – Strengthening family policy

Institutional model

OS10 – Making public action more efficient

OS11 – Optimize the distribution of skills

OS12 – Promoting the expression and representation of civil society

Societal model

OS13 – Build an identity based on common and shared values and practices and reinforced by a sense of belonging to New Caledonia

OS14 – Adapting education, training and integration to the contemporary context

OS15 – Protect and enhance natural resources

OS16 – Preventing and adapting to climate change

The prospects of PS2R

The day after the conference dedicated to the plan, the government intends to publish a booklet incorporating all the observations noted during this unifying event. It also plans to travel to the three provinces to present the plan to the population, who “must absolutely take ownership of it”, as President Louis Mapou insisted.

It is also envisaged to annex the PS2R to the budget orientation debate for the year 2025, which will allow in particular to develop a series of prospective scenarios for the next three years. Furthermore, the government plans to begin discussions in order to set up a State support agreement, on the basis of the PS2R, in order to ensure that the necessary measures can actually be put in place.

The implementation of the PS2R will be subject to regular monitoring by the interinstitutional committee and the committee of vital forces.

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

MIL Translation OSI

January 24, 2025

MIL-OSI Asia-Pac: Speech by FS at Bloomberg Global Regulatory Forum in New York (English only) (with photos)

Source: Hong Kong Government special administrative region

Following is the speech by the Financial Secretary, Mr Paul Chan, at the Bloomberg Global Regulatory Forum in New York, yesterday (October 22, New York time): Mike (Founder of Bloomberg L.P. & Bloomberg Philanthropies, Mr Michael Bloomberg), Mr Cotzias (Global Head of External Relations of Bloomberg, Mr Constantin Cotzias), distinguished guests, ladies and gentlemen, Good afternoon. I’m pleased to be here, in New York City, in fall. And delighted to hear that baseball, more than politics, is still the talk of the town. Well, baseball and finance. For that, for hosting today’s Global Regulatory Forum, for consistently driving high-powered discussion on the future of global finance, my thanks to Bloomberg. Last year’s Forum took place for the first time in Hong Kong, when we discussed how to navigate complexity and unlock opportunities. A year on, many things in the financial world have changed, and I’m pleased to bring you some positive updates about our city.Hong Kong: strong fundamentals Despite several challenging years, from social violence to the pandemic, Hong Kong is back, back once again with a stable, welcoming and promising business environment. Our strong fundamentals continue to be internationally recognised. Hong Kong ranks once again among the top three global financial centres, behind only New York and London. Canada’s Fraser Institute has again ranked Hong Kong the world’s freest economy. The International Monetary Fund and credit-rating agencies have reaffirmed Hong Kong’s institutional framework, our quality regulation and economic and financial resilience. These commendations are echoed by the global investor community. Total banking deposits in Hong Kong, for example, have grown 5 per cent, or US$100 billion, this year to date, reaching more than US$2 trillion. Our asset-and-wealth-management sector is also growing. We are managing over US$4 trillion in assets, and over half of that value was sourced from investors outside Hong Kong and the Chinese Mainland. Coupled with easing interest rate cycles and the Mainland’s stimulus package to inject liquidity to the banking sector and provide more support to the real estate sector, our stock market has gone on a rally, rising some 15 per cent in the past month or so. From late September to early October, we have seen strong net buys from American and European investors, constituting some 85 per cent of the buy side by value. And 90 per cent of those investors are long-term fund managers and investment banks. International investors have good reason to be confident in Hong Kong. Our singular “one country, two systems” arrangement is here to stay, here for the long term. That clear and compelling commitment has been reiterated, time and again, by President Xi Jinping. Indeed, the arrangement was designed not for short-term expediency but for the long-term interests of our country. It is clear that the Mainland is fully embracing high-level opening up, evident in the conclusions of state and party meetings in Beijing in the past year or so. The Mainland will support Hong Kong in remaining as a “super connector”, to assist in realising the country’s vision. We can, and will, continue to do just that, thanks to the advantages that define Hong Kong’s international character: our common law tradition, a judiciary that exercises powers independently; the free flow of goods, capital, talent and information; a currency pegged to the US dollar; and business practices that align with the best international standards. For so long, we have built our success as an international financial, trade and shipping centre on these merits, and they will continue to underpin Hong Kong’s development in the future. Robust financial regulation But still, Hong Kong is a small, fully open and externally-oriented economy. That means we are prone to external shocks and volatility. The trials and tribulations in the Asian Financial Crisis in 1998, the Global Financial Crisis of 2008, and the market squeeze during the onset of the COVID pandemic, are good lessons to learn. Each time we weathered a crisis, we grew more resilient, but the take home message for us is clear: first, we need to identify systemic weaknesses and vulnerabilities, and address them. Second, establish multi-sectoral risk detection and monitoring systems to raise alarm against potential crises. Third, build in a strong buffer to allow us to respond to the unknowns. This is particularly valid for Hong Kong which implements a linked exchange rate system. Hong Kong dollar is pegged to the US dollar, and therefore we must have sufficient monetary depth to enforce our convertibility undertakings and defend our currency board system. To ensure we have ample liquidity as we need it, we have a foreign exchange reserve of more than US$420 billion at our disposal. In light of rising geopolitical and economic challenges, we’ve established a high-level, cross-market, co-ordinated and round-the-clock monitoring mechanism. It covers all sectors of the financial market and gathers all financial regulators, allowing us to detect looming risks. I’m glad to report that over the past few years, our financial markets have been functioning in an orderly manner, despite volatility that might appear from time to time. The role of regulators in market development Good regulation, of course, is only half the story. For the ultimate goal of regulation is to promote the healthy and sustainable development of the financial market. Good market development, in my view, is equally important, and it is the best means to future-proof our financial systems. This requires the regulatory regime be agile and forward-looking. This requires the regime to respond to market and economic changes, embrace and empower technological innovation, and create the conditions for markets to thrive. It’s why in Hong Kong, regulators have been given a dual mandate, serving both as regulators and market enablers. Our listing regime reform is a good case in point. Back in 2018, the Government and the financial regulators made bold decisions to allow pre-profit or pre-revenue biotech companies, and new economy companies with weighted voting rights structures, to list on our stock exchange. The idea was met with doubt initially. But today the facts speak for themselves: new economy companies constitute only 13 per cent of the total number of listed companies, but their capitalisation accounts for 26 per cent. These reforms have not only broadened our market’s appeal but also put Hong Kong as a leading listing hub for innovative enterprises. Reform is an ongoing process. For instance, last year we introduced a new Chapter in our listing rules to facilitate the listing of specialist technology companies. Looking ahead, two key areas will be vital for Hong Kong’s financial future: enhancing our financial connectivity with the world, and embracing innovation.Enhancing Connectivity Connectivity has always been the trump card of Hong Kong – although “trump” may be a word that you may now love or hate. For long, we have been the premier listing platform for Mainland companies going global. The launch of the “Stock Connect” 10 years ago was a landmark in forging close connectivity between the two markets. Its very significance was to allow foreign investors to make use of the Hong Kong Stock Exchange, and all the regimes, regulation and practices with which they are familiar, to access the Mainland’s stock market. Today, over 70 per cent of the A-share holdings by foreign investors were acquired through the Stock Connect. The Scheme has been continuously expanding, now covering bonds, ETFs, derivatives such as swap contracts. Just in April this year, the China Securities Regulatory Commission announced four further measures to expand the Connect Schemes, including enlarging the scope of ETFs Connect, covering REITs in Stock Connect, and more. Meanwhile, it also made clear that they will support leading Mainland companies to list on the Hong Kong Stock Exchange. Obviously our IPO market has seen a rebound. In the first nine months this year, we raised more than US$7.1 billion, ranking fourth globally thus far. Looking ahead, Hong Kong is also strengthening connections with other markets in the ASEAN countries, the Middle East and the Belt and Road countries. For instance, next week, we will be seeing the launch of two ETFs on the Saudi Stock Exchange investing in the Hong Kong Stock market. So Hong Kong’s role as a connector of markets will only grow stronger. And with this, our financial regulators will continue to make it their strategic priorities to enhance collaboration with regulatory counterparts for timely and effective responses. Embracing innovation Ladies and gentlemen, another area essential to our future is innovation. In Hong Kong, we’re taking a balanced regulatory approach to enable financial innovation. For example, last year, we introduced a regulatory regime for digital assets, along the principle of “same activity, same risks, same regulation”. The key feature is to put in place guardrails for investor protection, while enabling financial innovation to thrive in a responsible and sustainable manner. So far, three firms have been issued with virtual asset trading platform licences, and we are expecting more in the next couple of months. Besides, legislation will be introduced later this year for the regulation of stablecoins. Then there’s also AI (artificial intelligence), which is reshaping the financial services industry, driving new products and services that enhance efficiency, security and customer experience. Like blockchain and other new technologies, we must address the potential challenges of AI, such as cybersecurity, data privacy and the protection of intellectual property rights. To that end, we will publish a policy statement next week. We will work to provide a clear supervisory framework and create a conducive and sustainable market environment. Concluding remarks Ladies and gentlemen, alongside changing global financial landscape comes far-reaching opportunity. Judging from Hong Kong’s experience, capturing such opportunities calls for the mentality of policy makers to focus not just on regulation compliance but also market development. For some, this may require a paradigm shift. But in our view, it will be an essential path to future-proof our financial markets, ensuring their long-term sustainable growth. Finally, I wish to convey my thanks again to Bloomberg for inviting me to this Forum. I wish you all the best of business and health in the coming year. Thank you.

MIL OSI Asia Pacific News –

January 24, 2025

MIL-OSI: Pulse Seismic Inc. Reports Q3 2024 Results and Approves Regular Quarterly Dividend

Source: GlobeNewswire (MIL-OSI)

CALGARY, Alberta, Oct. 22, 2024 (GLOBE NEWSWIRE) — Pulse Seismic Inc. (TSX:PSD) (OTCQX:PLSDF) (“Pulse” or the “Company”) is pleased to report its financial and operating results for the three and nine months ended September 30, 2024. The unaudited condensed consolidated interim financial statements, accompanying notes and MD&A are being filed on SEDAR (http://www.sedar.com) and will be available on Pulse’s website at http://www.pulseseismic.com.

Today, Pulse’s Board of Directors approved a regular quarterly dividend of $0.015 per common share. The total dividend will be approximately $764,000 based on Pulse’s 50,904,663 common shares outstanding as of October 22, 2024, and will be paid on November 28, 2024, to shareholders of record on November 14, 2024. This dividend is designated as an eligible dividend for Canadian income tax purposes. For non-resident shareholders, Pulse’s dividends are subject to Canadian withholding tax.

“While Pulse’s third quarter sales were not as robust as in 2023, it is common in our business to have significant variances between quarterly and annual results, which is why we focus on keeping costs low and maintaining a strong balance sheet,” stated Neal Coleman, Pulse’s President and CEO. “Already in October, we have completed another $2.7 million in sales, bringing year to date total revenue to $20.5 million,” Coleman continued. “We have consistently generated positive quarterly free cashflow and remain committed to providing a significant return of capital to shareholders. Pulse has declared $0.10875 per share in dividends up to today and bought back nearly 1.7 million shares under the NCIB in the first three quarters of the year. Total capital returned to shareholders is approximately 92% of the shareholder free cashflow generated as of September 30, 2024,” he concluded.

HIGHLIGHTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024

A regular quarterly dividend of $0.015 per share and a special dividend of $0.05 per share were declared and paid in the third quarter. For the nine-month period, regular quarterly dividends totalled $0.04375 per share. Regular and special dividends declared and paid in the first three quarters of 2024 totalled $4.8 million;
In the nine-month period ended September 30, 2024, Pulse purchased and cancelled, through its normal course issuer bid, 3.2% of the shares outstanding at December 31, 2023, for a total of 1,686,300 common shares at a total cost of approximately $3.7 million (at an average cost of $2.17 per common share including commissions);
At September 30, 2024, Pulse was debt-free and held cash of $7.5 million;
Shareholder free cash flow^(a) was $1.1 million ($0.02 per share basic and diluted) for the third quarter of 2024 compared to $2.8 million ($0.05 per share basic and diluted) for the comparable period in 2023. Shareholder free cash flow was $10.0 million ($0.19 per share basic and diluted) for the nine months ended September 30, 2024, compared to $13.9 million ($0.26 per share basic and diluted) for the nine months ended September 30, 2023;
EBITDA^(a) was $1.1 million ($0.02 per share basic and diluted) for the three months ended September 30, 2024, compared to $3.3 million ($0.06 per share basic and diluted) for the three months ended September 30, 2023. EBITDA was $11.7 million ($0.23 per share basic and diluted) for the nine months ended September 30, 2024, compared to $16.8 million ($0.32 per share basic and diluted) for the nine months ended September 30, 2023;
For the three months ended September 30, 2024, there was a net loss of $1.4 million ($0.03 per share basic and diluted) compared to net earnings of $393,000 ($0.01 per share basic and diluted) for the three months ended September 30, 2023. Net earnings for the nine months ended September 30, 2024, was $2.6 million ($0.05 per share basic and diluted) compared to net earnings of $6.7 million ($0.13 per share basic and diluted) for the nine months ended September 30, 2023; and
Total revenue was $2.7 million for the three months ended September 30, 2024, compared to $5.1 million for the three months ended September 30, 2023. For the nine months ended September 30, 2024, total revenue was $17.8 million compared to $22.3 million for the nine months ended September 30, 2023.


SELECTED FINANCIAL AND OPERATING INFORMATION


(Thousands of dollars except per share data,	Three months ended September 30,		Nine months ended September 30,		Year ended
numbers of shares and kilometres of seismic data)	2024	2023	2024	2023	December 31,
	(Unaudited)		(Unaudited)		2023
Revenue
Data library sales	2,726	5,103	17,803	22,266	39,127

Amortization of seismic data library	2,278	2,273	6,827	6,833	9,103
Net earnings (loss)	(1,405)	393	2,617	6,700	15,007
Per share basic and diluted	(0.03)	0.01	0.05	0.13	0.28
Cash provided by operating activities	2,665	10,564	11,860	16,524	23,524
Per share basic and diluted	0.05	0.20	0.23	0.31	0.44
EBITDA ^(a)	1,064	3,289	11,711	16,839	30,431
Per share basic and diluted ^(a)	0.02	0.06	0.23	0.32	0.57
Shareholder free cash flow ^(a)	1,061	2,793	9,968	13,883	24,829
Per share basic and diluted ^(a)	0.02	0.05	0.19	0.26	0.47

Capital expenditures
Seismic data	–	–	225	–	–
Property and equipment	45	14	45	28	28
Total capital expenditures	45	14	270	28	28

Dividends
Regular dividends	766	731	2,255	2,138	2,862
Special dividends	2,548	7,992	2,548	7,992	18,519
Total dividends	3,314	8,723	4,803	10,130	21,381

Normal course issuer bid
Number of shares purchased and cancelled	519,500	853,158	1,686,300	945,506	1,005,006
Cost of shares purchased and cancelled	1,245	1,670	3,653	1,830	1,943

Weighted average shares outstanding
Basic and diluted	51,071,111	53,135,041	51,640,483	53,436,340	53,237,569
Shares outstanding at period-end			50,935,563	52,681,363	52,621,863

Seismic library
2D in kilometres			829,207	829,207	829,207
3D in square kilometres			65,310	65,310	65,310

FINANCIAL POSITION AND RATIO
			September 30,	September 30,	December 31,
(Thousands of dollars except ratio)			2024	2023	2023
Working capital			7,460	7,820	7,468
Working capital ratio			3.8:1	2.3:1	1.5:1
Cash and cash equivalents			7,414	9,821	15,948
Total assets			22,374	34,727	41,249
Trailing 12-month (TTM) EBITDA ^(b)			25,303	17,306	30,431
Shareholders’ equity			19,351	28,225	25,655

^(a) The Company’s continuous disclosure documents provide discussion and analysis of “EBITDA”, “EBITDA per share”, “shareholder free cash flow” and “shareholder free cash flow per share”. These financial measures do not have standard definitions prescribed by IFRS and, therefore, may not be comparable to similar measures disclosed by other companies. The Company has included these non-GAAP financial measures because management, investors, analysts and others use them as measures of the Company’s financial performance. The Company’s definition of EBITDA is cash available to invest in growing the Company’s seismic data library, pay interest and principal on long-term debt when applicable, purchase its common shares, pay taxes and the payment of dividends. EBITDA is calculated as earnings (loss) from operations before interest, taxes, depreciation and amortization. EBITDA per share is defined as EBITDA divided by the weighted average number of shares outstanding for the period. The Company believes EBITDA assists investors in comparing Pulse’s results on a consistent basis without regard to non-cash items, such as depreciation and amortization, which can vary significantly depending on accounting methods or non-operating factors such as historical cost. Shareholder free cash flow further refines the calculation by adding back non-cash expenses and deducting net financing costs and current income tax expense from EBITDA. Shareholder free cash flow per share is defined as shareholder free cash flow divided by the weighted average number of shares outstanding for the period.
^(b) TTM EBITDA is defined as the sum of EBITDA generated over the previous 12 months and is used to provide a comparable annualized measure.
These non-GAAP financial measures are defined, calculated and reconciled to the nearest GAAP financial measures in the Management’s Discussion and Analysis.

OUTLOOK

So far in 2024, there have been a variety of factors influencing industry conditions which impact Pulse’s revenue generation. While land sales in Alberta at September 30, 2024 were approximately $300 million, down slightly from the $318 million for the same period in 2023, they remain significantly higher than in recent years going back to 2014. There are several notable infrastructure improvements which will lead to increased offtake capacity for Canadian oil and gas, such as the recent completion of the TMX pipeline expansion and the 2025 forecast completion of LNG Canada’s natural gas export facility. 2024 has also brought improvements in oil prices and an expectation by some for increasing natural gas prices in 2025. These positives, are offset by the factors that create uncertainty for the future, including economic, political, and environmental concerns. Pulse, as always, has low visibility regarding future seismic data library sales levels, regardless of industry conditions. The Company remains focused on business practices that have served throughout the full range of conditions. The Company maintains a strong balance sheet, has zero debt, no capital spending commitments, and a disciplined and rigorous approach to evaluating growth opportunities. This 15-person company, led by an experienced and capable management team, operates with a low-cost structure and focuses on developing excellent client relations as well providing exceptional customer service. Pulse’s strong financial position, high leverage to increased revenue in its EBITDA margin and careful management of its cash resources have resulted in the return of capital to shareholders through regular and special dividends and the repurchase of its shares.

CORPORATE PROFILE

Pulse is a market leader in the acquisition, marketing and licensing of 2D and 3D seismic data to the western Canadian energy sector. Pulse owns the largest licensable seismic data library in Canada, currently consisting of approximately 65,310 square kilometres of 3D seismic and 829,207 kilometres of 2D seismic. The library extensively covers the Western Canada Sedimentary Basin, where most of Canada’s oil and natural gas exploration and development occur.

For further information, please contact:
Neal Coleman, President and CEO
Or
Pamela Wicks, Vice President Finance and CFO
Tel.: 403-237-5559
Toll-free: 1-877-460-5559
E-mail: info@pulseseismic.com.
Please visit our website at http://www.pulseseismic.com

This document contains information that constitutes “forward-looking information” or “forward-looking statements” (collectively, “forward-looking information”) within the meaning of applicable securities legislation. Forward-looking information is often, but not always, identified by the use of words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “forecast”, “target”, “project”, “guidance”, “may”, “will”, “should”, “could”, “estimate”, “predict” or similar words suggesting future outcomes or language suggesting an outlook.

The Outlook section herein contain forward-looking information which includes, but is not limited to, statements regarding:

>		The outlook of the Company for the year ahead, including future operating costs and expected revenues;
>		Recent events on the political, economic, regulatory, public health and legal fronts affecting the industry’s medium- to longer-term prospects, including progression and completion of contemplated pipeline projects;
>		The Company’s capital resources and sufficiency thereof to finance future operations, meet its obligations associated with financial liabilities and carry out the necessary capital expenditures through 2024;
>		Pulse’s capital allocation strategy;
>		Pulse’s dividend policy;
>		Oil and natural gas prices and forecast trends;
>		Oil and natural gas drilling activity and land sales activity;
>		Oil and natural gas company capital budgets;
>		Future demand for seismic data;
>		Future seismic data sales;
>		Pulse’s business and growth strategy; and
>		Other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results and performance, as they relate to the Company or to the oil and natural gas industry as a whole.

By its very nature, forward-looking information involves inherent risks and uncertainties, both general and specific, and risks that predictions, forecasts, projections and other forward-looking statements will not be achieved. Pulse does not publish specific financial goals or otherwise provide guidance, due to the inherently poor visibility of seismic revenue. The Company cautions readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in such forward-looking information. These factors include, but are not limited to:

>		Uncertainty of the timing and volume of data sales;
>		Volatility of oil and natural gas prices;
>		Risks associated with the oil and natural gas industry in general;
>		The Company’s ability to access external sources of debt and equity capital;
>		Credit, liquidity and commodity price risks;
>		The demand for seismic data and;
>		The pricing of data library licence sales;
>		Cybersecurity;
>		Relicensing (change-of-control) fees and partner copy sales;
>		Environmental, health and safety risks;
>		Federal and provincial government laws and regulations, including those pertaining to taxation, royalty rates, environmental protection, public health and safety;
>		Competition;
>		Dependence on key management, operations and marketing personnel;
>		The loss of seismic data;
>		Protection of intellectual property rights;
>		The introduction of new products; and
>		Climate change.

Pulse cautions that the foregoing list of factors that may affect future results is not exhaustive. Additional information on these risks and other factors which could affect the Company’s operations and financial results is included under “Risk Factors” in the Company’s most recent annual information form, and in the Company’s most recent audited annual financial statements, most recent MD&A, management information circular, quarterly reports, material change reports and news releases. Copies of the Company’s public filings are available on SEDAR at www.sedar.com.

When relying on forward-looking information to make decisions with respect to Pulse, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Furthermore, the forward-looking information contained in this document is provided as of the date of this document and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking information, except as required by law. The forward-looking information in this document is provided for the limited purpose of enabling current and potential investors to evaluate an investment in Pulse. Readers are cautioned that such forward-looking information may not be appropriate, and should not be used, for other purposes.

PDF available: http://ml.globenewswire.com/Resource/Download/684389a6-5b96-4478-ba47-39eb0d1160a8

The MIL Network –

January 24, 2025

MIL-Evening Report: Apia Ocean Declaration to be ‘crown jewel’ of CHOGM climate ‘fight back’

By Sialai Sarafina Sanerivi in Apia

The Ocean Declaration that will be agreed upon at the Commonwealth Heads of Government Meeting (CHOGM) this week will be known as the Apia Ocean Declaration.

In an exclusive interview with the Samoa Observer, Commonwealth Secretary-General Patricia Scotland said members were in a unique position to bring their voices together for the oceans, which have long been neglected.

“The Apia Ocean Declaration aims to address the rising threats to our ocean faces, especially from climate change and rising sea levels,” she said.

[embedded content]
Commonwealth pushes for ocean protection with historic Apia Ocean Declaration. Video: Samoa Observer

Scotland, reflecting on her tenure as Secretary-General, noted the privilege of serving the Commonwealth, a diverse family of 56 countries comprising 2.7 billion people.

“I am very much the child of the Commonwealth. With 60 percent of our population under 30 years, we must prioritise their future.”

Scotland reflected that upon assuming her role, she recognised immediately that addressing climate change would be a key priority for the Commonwealth.

“Why? Because we have 33 small states, 25 small island states and we were the ones who were really suffering this badly,” she said.

Pacific a ‘big blue ocean state’
“We also knew in 2016 that nobody was looking at the oceans. Now, the Pacific is a big blue ocean state.

“But it’s one of the most under-resourced elements that we have. And yet, look at what was happening. The hurricanes and the cyclones were getting bigger and bigger.

“Why? Because our ocean had absorbed so much of the heat, so much of the carbon, and now it was starting to become saturated. So before, our ocean acted as a coolant. The cyclone would come, the hurricane would come, they’d pass over our cool blue water, and the heat would be drawn out.”

The Apia Ocean Declaration emerged from a pressing need to protect the oceans, especially given the devastating impact of climate change on coastal and island nations.

“We realised that while many discussions were happening globally, the oceans were often overlooked,” Scotland remarked.

“In 2016, we recognised the necessity for collective action. Our oceans absorb much of the carbon and heat, leading to increasingly severe hurricanes and cyclones.”

Scotland has spearheaded initiatives that brought together oceanographers, climatologists, and various stakeholders.

Commonwealth Secretary-General Patricia Scotland . . . discussing this week’s planned Apia Ocean Declaration at CHOGM, highlighting the urgent need for global action to protect oceans. Image: Junior S. Ami/Samoa Observer

Worked in silos ‘for too long’
“We worked in silos for too long. It was time to unite our efforts for the ocean’s health.

“That’s when we realised that nobody had their eye on our oceans, but of the 56 Commonwealth members, many of us are island states, so our whole life is dependent on our ocean. And so that’s when the fight back happened.”

This collaboration resulted in the establishment of the Commonwealth Blue Charter, a significant framework focused on ocean conservation.

“Fiji’s presidency at the UN Oceans Conference was a turning point. Critics said it would take years to establish an ocean instrument, but we achieved it in less than ten months.”

“We are not just talking; we are implementing solutions.”

Scotland also addressed the financial challenges faced by many small island states, particularly regarding climate funding.

“In 2009, $100 billion was promised by those who had been primarily responsible for the climate crisis, to help those of us who contributed almost nothing to get over the hump.

Hard for finance applications
“But the money wasn’t coming. And in those days, many of our members found it so hard to put those applications together.”

To combat this issue, the Commonwealth established a Climate Finance Access Hub, facilitating over $365 million in funding for member states with another $500 million in the pipeline.

“But this has caused us to say we have to go further,” she added.

“We’re using geospatial data, we have to fill in the gaps for our members who don’t have the data, so we can look at what has happened in the past, what may happen in the future, and now we have AI to help us do the simulators.

“The Ocean Ministers’ Conference highlighted the importance of ensuring that countries at risk of disappearing under the waves can maintain their maritime jurisdiction,” Scotland asserted.

“The thing that we thought was so important is that those countries threatened with the rising of the sea, which could take away their whole island, don’t have certainty in terms of that jurisdiction. What will happen if our islands drop below the sea level?

“And we wanted our member states to be confident that if they had settled their marine boundaries, that jurisdiction would be set in perpetuity. Because that was the biggest guarantee; I may lose my land, but please don’t tell me I’m going to lose my ocean too.

Target an ocean declaration
“So that was the target for the Ocean Ministers’ Conference. And out of that came the idea that we would have an ocean declaration.

“It is that ocean declaration that we are bringing here to Samoa. And the whole poignancy of that is Samoa is the first small island state in the Pacific ever to host CHOGM. So wouldn’t it be beautiful if out of this big blue ocean state, this wonderful Pacific state, we could get an ocean declaration which could in the future be able to be known as the Apia Ocean Declaration? Because we would really mark what we’re doing here.

“What the Commonwealth has been determined to do throughout this whole period is not just talk, but take positive action to help our members not only just to survive, but to thrive.

“And if, which I hope we will, we get an agreement from our 56 states on this ocean declaration, it enables us to put the evidence before everyone, not only to secure what we need, but then to say 0.05 percent of the money is not enough to save our oceans.

“Oceans are the most underfunded area.

“I hope that all the work we’ve done on the Universal Vulnerability Index, on the nature of the vulnerability for our members, will be able to justify proper money, proper resources being put in.

“And you know what’s happening in this area; our fishermen are under threat.

“Our ability to use the oceans in the way we’ve used for millennia to feed our people, support our people, is really under threat. So this CHOGM is our fight back.”

As the meeting progresses, the emphasis remains on achieving consensus among the 56 member states regarding the Apia Ocean Declaration.

Republished from the Samoa Observer with permission.

MIL OSI Analysis – EveningReport.nz –

January 24, 2025

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

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

Damitha Jayawardena/Shutterstock

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

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

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

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

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

Striking the right balance

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

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

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

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

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

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

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

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

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

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

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

It’s time for carbon pricing

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

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

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

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

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

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

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

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

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

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

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

A carbon solutions levy

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

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

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

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

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

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

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

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

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

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

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

Regional considerations

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

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

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

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

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

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

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

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

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

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

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

The alternatives to carbon pricing are weak

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

MIL OSI Analysis – EveningReport.nz –

January 24, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

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

Income Statement

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

Balance Sheet

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

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

Discussion of Operating Results

Net Interest Income/Net Interest Margin

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

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

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

Provision for Credit Losses

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

Noninterest Income and Noninterest Expense

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

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

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

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

Income Taxes

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

Discussion of Financial Condition

Earning Assets

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

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

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

Allowance for Credit Losses

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

Credit Quality

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

Deposits

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

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

Liquidity

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

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

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

Capital

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

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

About Capital City Bank Group, Inc.

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

FORWARD-LOOKING STATEMENTS

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

USE OF NON-GAAP FINANCIAL MEASURES
Unaudited

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

The GAAP to non-GAAP reconciliations are provided below.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

⁽¹⁾Recorded in other liabilities
⁽²⁾Annualized

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The MIL Network –

January 24, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

Balance Sheet Well Positioned to Benefit From Federal Reserve Rate Cuts

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

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

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

Highlights for the Third Quarter of 2024 Included:

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

Management’s Discussion of Quarterly Operating Results

Net Interest Income

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

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


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

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

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

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

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

Loan Portfolio

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

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


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

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

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


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

Deposits and Borrowed Funds

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

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

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

Non-Interest Income

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

Non-Interest Expense

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

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

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

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

Income Tax Expense

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

Credit Quality

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

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

Capital Management

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

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

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

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

Earnings Call Information

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

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

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

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

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

This news release contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements may be identified by use of words such as “annualized,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar terms and phrases, including references to assumptions.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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

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

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

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


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

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


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

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

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


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

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

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

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

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

The MIL Network –

January 24, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

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

CEO COMMENTARY:

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

THIRD QUARTER HIGHLIGHTS²:

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

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

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

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

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

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

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

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

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

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

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

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

LOANS
Broad-based disciplined commercial loan growth.

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

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

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

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

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

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

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

NONINTEREST EXPENSE
Disciplined expense management.

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

INCOME TAXES

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

CAPITAL
Capital ratios remain strong.

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

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

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

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

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

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

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

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

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

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

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

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


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

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

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


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

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


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

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

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


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


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

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

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

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

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

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

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

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

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

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

Net interest rate spread						2.62	%						2.61	%						2.85	%

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

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

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

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


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


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

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

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

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

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

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

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

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

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

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

Net interest rate spread						2.60	%						3.01	%

Net interest margin (GAAP)						3.26	%						3.54	%

Net interest margin (FTE)³						3.31	%						3.59	%

FTE adjustment				$	18,737						$	17,328

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


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

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

¹ Excludes loans held-for-sale.


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

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

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


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

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

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


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

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

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


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

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

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

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

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

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

The MIL Network –

January 24, 2025

MIL-OSI: First Financial Corporation Reports Third Quarter Results

Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

Average Total Loans

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

Total Loans Outstanding

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

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

Average Total Deposits

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

Total Deposits

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

Shareholders’ Equity

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

Book Value Per Share

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

Tangible Common Equity to Tangible Asset Ratio

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

Net Interest Income

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

Net Interest Margin

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

Nonperforming Loans

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

Credit Loss Provision

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

Net Charge-Offs

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

Allowance for Credit Losses

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

Non-Interest Income

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

Non-Interest Expense

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

Efficiency Ratio

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

Income Taxes

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

About First Financial Corporation

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

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


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

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

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

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

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


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

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



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


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


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


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

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

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

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


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

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

The MIL Network –

January 24, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

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

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

The following table presents disaggregated net income (loss):

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

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

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

Net Interest Income and Net Interest Margin

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

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

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

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

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

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

Non-Interest Income

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

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

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

Non-Interest Expense

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

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

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

Income Taxes

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

About the Company

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

Forward Looking Statement

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

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

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

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

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

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

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

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

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

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

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

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

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

The MIL Network –

January 24, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Attachments

The MIL Network –

January 24, 2025

MIL-OSI: eQ Plc’s interim report Q3 2024 – eQ’s operating profit EUR 27.6 million

Source: GlobeNewswire (MIL-OSI)

eQ Plc interim report
22 October 2024 at 8:00 AM

January to September 2024 in brief

During the period under review, the Group’s net revenue totalled EUR 50.9 million (EUR 52.3 million from 1 Jan. to 30 Sept. 2023). The Group’s net fee and commission income was EUR 49.8 million (EUR 51.5 million).
The Group’s operating profit fell by 8% to EUR 27.6 million (EUR 30.0 million).
The Group’s profit was EUR 21.9 million (EUR 23.8 million).
The consolidated earnings per share were EUR 0.53 (EUR 0.59).
The net revenue of the Asset Management segment decreased by 10% to EUR 45.5 million (EUR 50.3 million) and the operating profit by 15% to EUR 26.9 million (EUR 31.7 million). The management fees of the Asset Management segment fell by 10% to EUR 42.0 million (EUR 46.8 million) and the performance fees increased by 3% to EUR 4.0 million (EUR 3.9 million). During the review period, the assets managed by eQ Asset Management grew by 3% to EUR 13.3 billion (EUR 12.9 billion on 31 Dec. 2023).
The net revenue of the Corporate Finance segment was EUR 4.3 million (EUR 1.2 million)
and the operating profit was EUR 1.5 million (EUR -0.9 million).
The operating profit of the Investments segment was EUR 0.5 million (EUR 0.4 million).
The net cash flow from the Group’s own private equity and real estate fund investment operations was EUR 0.7 million (EUR 0.2 million).

July to September 2024 in brief

In the third quarter, the Group’s net revenue totalled EUR 16.7 million (EUR 16.6 million from 1 July to 30 Sept. 2023). The Group’s net fee and commission income was EUR 16.6 million (EUR 16.2 million).
The Group’s operating profit fell by 6% to EUR 9.6 million (EUR 10.2 million).
The Group’s profit was EUR 7.6 million (EUR 8.1 million).
The consolidated earnings per share were EUR 0.18 (EUR 0.20).

Key ratios	1-9/24	1-9/23	Change	7-9/24	7-9/23	Change	1-12/23
Net revenue, Group, MEUR	50.9	52.3	-3%	16.7	16.6	1%	70.9
Net revenue, Asset Management, MEUR	45.5	50.3	-10%	15.2	15.9	-4%	66.9
Net revenue, Corporate Finance, MEUR	4.3	1.2	251%	1.3	0.3	300%	3.9
Net revenue, Investments, MEUR	0.5	0.4	15%	-0.1	0.3	-133%	-0.6
Net revenue, Group administration and eliminations, MEUR	0.7	0.4		0.2	0.1		0.6

Operating profit, Group, MEUR	27.6	30.0	-8%	9.6	10.2	-6%	39.7
Operating profit, Asset Management, MEUR	26.9	31.7	-15%	9.4	10.5	-10%	41.4
Operating profit, Corporate Finance, MEUR	1.5	-0.9	265%	0.5	-0.2	331%	0.7
Operating profit, Investments, MEUR	0.5	0.4	15%	-0.1	0.3	-133%	-0.6
Operating profit, Group administration, MEUR	-1.1	-1.3		-0.3	-0.4		-1.7

Profit for the period, MEUR	21.9	23.8	-8%	7.6	8.1	-6%	31.5

Key ratios	1-9/24	1-9/23	Change	7-9/24	7-9/23	Change	1-12/23
Earnings per share, EUR	0.53	0.59	-9%	0.18	0.20	-8%	0.78
Equity per share, EUR	1.64	1.65	-1%	1.64	1.65	-1%	1.85
Cost/income ratio, Group, %	45.7	42.6	7%	42.8	38.5	11%	43.8

Liquid assets, MEUR	29.0	22.4	29%	29.0	22.4	29%	33.4
Private equity and real estate fund investments, MEUR	16.5	17.1	-4%	16.5	17.1	-4%	16.6
Interest-bearing loans, MEUR	0.0	0.0	0%	0.0	0.0	0%	0.0

Assets under management excluding reporting services, EUR billion	10.4	9.9	4%	10.4	9.9	4%	10.0
Assets under management, EUR billion	13.3	12.8	4%	13.3	12.8	4%	12.9

Mikko Koskimies, CEO

Before the summer, it was expected that the Federal Reserve would not be able to cut its reference rate until late 2024 or in 2025. However, this view changed in early August, when labour market data was clearly weaker than expected. Strong fears emerged in the markets that the central bank acted too late when cutting interest rates and that the economy was at risk of a recession. Interest rate markets immediately anticipated that the Federal Reserve would cut its reference rate exceptionally quickly and sharply. Stock markets fell. Market positions were unwound at a rapid pace, resulting in Japanese yen’s sharp value increase and the Japanese stock market’s steep decline.

Economic data released in the following weeks showed that market reactions had been disproportionate. However, the increased risk of recession was reflected in the Federal Reserve cutting its reference rate by 0.5 percentage points in September. The European Central Bank had already cut its reference rate in the summer and implemented another 0.25 percentage point cut in September. In Europe, economic growth differentials are exceptionally high, complicating the ECB’s monetary policy stance. Towards the end of the third quarter, China announced larger economic policy measures to boost growth. This led to a sharp rise in share prices at the very end of the quarter.

Equity markets fluctuated in line with the recession, but as predictions of the economy’s soft landing returned, third-quarter returns turned clearly positive. At the beginning of the year, the US was the frontrunner, with the S&P 500 index returning as much as 21.7% in dollars (20.5% in euros). The rise of US share prices continues to be driven by a few technology companies. MSCI Europe had risen 11.6% since the beginning of the year. The Finnish stock market rose rapidly in the third quarter, up 8.8% from the start of the year. In emerging markets, share prices rose by 15.7% at the start of the year.

eQ’s operating profit EUR 27.6 million

The net revenue of the Group during the review period was EUR 50.9 million and the operating profit was EUR 27.6 million. Operating profit fell by 8 per cent from the previous year.

eQ Asset Management’s assets under management increased

eQ Asset Management’s net revenue in the review period fell by 10 per cent to EUR 45.5 million. The operating profit of the period fell by 15 per cent to EUR 26.9 million. The assets managed by eQ Asset Management grew by 3 per cent to EUR 13.3 billion during the period under review.

As for traditional interest and equity investments, the returns of client portfolios in the first half were very good. Of the funds that eQ manages itself, 38 per cent surpassed their benchmark indices, and during a three-year period the corresponding figure was 62 per cent. During the review period eQ’s funds also received awards from both Morningstar and Lipper.

As for sales, the year 2024 has gone well especially in Private Equity asset management. In 2024, Private Equity assets are raised to the eQ PE XVI North and eQ PE SF V funds, which make investments in Northern Europe. Their sizes increased to almost EUR 300 million in total at the end September. At the same time, the size the eQ VC II fund, which makes Venture Capital investments and which was started with the first closing of EUR 20 million last October, grew to 49 million dollars.

Advium’s profit grew

During the period under review, Advium’s net revenue totalled EUR 4.3 million (EUR 1.2 million). Operating profit was EUR 1.5 million (EUR -0.9 million).

M&A activity in the third quarter of the year has remained at the same level as at the beginning of the year, but at a clearly lower level compared to the longer-term average. Volumes of the real estate transaction market are also still significantly below the long-term average.

During the first nine months of 2024, Advium advised on four M&A transactions and one real estate transaction: Advising Aspo Plc on its minority investment in OP Suomi Infra, advising the eQ Commercial Properties fund on the sale of the Bredis retail park, advising an acquiring consortium on the public offer for Purmo Group, advising Innofactor Board of Directors on public cash offer for the company and advising Forcit on its agreement to acquire part of Orica’s Finnish and Swedish businesses.

Jacob af Forselles was appointed as the Managing Director of Advium Corporate Finance Ltd and as a member to eQ Group’s Management Team. He started in his position at the beginning of August.

The operating profit of Investments increased slightly

The operating profit of the Investments segment was EUR 0.5 million (EUR 0.4 million), and the net cash flow was EUR 0.7 million (EUR 0.2 million). The balance sheet value of the private equity and real estate fund investments at the end of the period was EUR 16.5 million (EUR 16.6 million on 31 Dec. 2023). During the period, eQ Plc made a EUR 1 million investment commitment in the new eQ PE XVI North fund.

Outlook

The asset management market in Finland has grown strongly, and eQ’s growth has outpaced the market. We estimate that the long-term outlook for growth in the asset management market and for eQ in Finland is still good.

For eQ’s real estate funds, 2023 was a difficult year due to an increase of the yields resulting from a strong rise in the interest rate level. As yields rose, values of properties clearly declined. Also, net subscriptions in funds were negative. The limited availability of real estate financing also contributed to a significant decrease in real estate transactions. With regard to the real estate funds, we expect 2024 to be a challenging year, although the long-term outlook for growth is good. Sales of eQ’s Private Equity products has continued to be strong, and the desire of Finnish asset management clients to increase Private Equity allocations in their portfolios will continue to support the growth of eQ’s Private Equity products. We also anticipate a growth in performance fees from 2025 onwards, due to the transfer of several Private Equity products to a performance fee stage. eQ’s competitive position in traditional asset management products and discretionary asset management is good thanks to excellent returns on investments. We believe that traditional asset management has great potential for growth in future years, considering however its characteristic short-term variation according to market conditions.

***

eQ’s interim report 1 January to 30 September 2024 is enclosed to this release and it is also available on the company website at http://www.eQ.fi.

eQ Plc

Additional information:
Mikko Koskimies, CEO, tel. +358 9 6817 8799
Antti Lyytikäinen, CFO, tel. +358 9 6817 8741

Distribution: Nasdaq Helsinki, http://www.eQ.fi, media

eQ Group is a group of companies that concentrates on asset management and corporate finance business. eQ Asset Management offers a wide range of asset management services (including private equity funds and real estate asset management) for institutions and private individuals. The assets managed by the Group total approximately EUR 13.3 billion. Advium Corporate Finance, which is part of the Group, offers services related to mergers and acquisitions, real estate transactions and equity capital markets. More information about the Group is available on our website http://www.eQ.fi.

Attachment

eQ Plc interim report Q3 2024

The MIL Network –

January 24, 2025

MIL-OSI United Nations: Human Rights Council Concludes Fifty-Seventh Regular Session after Adopting 37 Resolutions and One Statement by the President

Source: United Nations – Geneva

Council Extends Mandates of Nine Country and One Thematic Mandate Holders

The Human Rights Council today concluded its fifty-seventh regular session after adopting 37 resolutions and one Statement by the President, in which it, among others, extended the mandates of nine country and one thematic mandate holders.

The Council extended the mandate of the Office of the High Commissioner for Human Rights on promoting reconciliation, accountability and human rights in Sri Lanka under agenda item two.

It extended for a period of one year the mandates of the independent international fact-finding mission for the Sudan under agenda item two; of the Special Rapporteur on the situation of human rights in Afghanistan, the Special Rapporteur on the situation of human rights in the Russian Federation, and the Special Rapporteur on the situation of human rights in Burundi, under agenda item four; and of the Independent Expert on the situation of human rights in Somalia, the Team of International Experts on the Democratic Republic of the Congo, and the Independent Expert on the situation of human rights in the Central African Republic under agenda item 10.

Under agenda item four, the mandate of the independent international fact-finding mission on the Bolivarian Republic of Venezuela was extended for a period of two years.

The Council also decided to extend, for a period of three years, the mandate of the Special Rapporteur on the promotion and protection of human rights in the context of climate change.

Further resolutions adopted concerned the thirtieth anniversary of the Beijing Declaration and Platform for Action; the role of good governance in the promotion and protection of human rights; countering cyberbullying; promotion of a democratic and equitable order; the use of mercenaries as a means of violating human rights and impeding the exercise of the right of peoples to self-determination; social reintegration of persons released from detention and persons subjected to non-custodial measures; the World Programme for Human Rights Education: the plan of action for the fifth phase; and on terrorism and human rights.

Other resolutions concerned local government and human rights; the human rights to safe drinking water and sanitation; the human rights of migrants; human rights and indigenous peoples; promoting accessibility for the full enjoyment of all human rights by all; equal participation in political and public affairs; the elimination of domestic violence; the right to development; the situation of human rights in the Syrian Arab Republic; national human rights institutions; education as a tool to prevent racism, racial discrimination, xenophobia and related intolerance; from rhetoric to reality: a global call for concrete action against racism, racial discrimination, xenophobia and related intolerance; technical assistance and capacity-building to address the human rights implications of the nuclear legacy in the Marshall Islands; biodiversity and human rights; promotion, protection and enjoyment of human rights on the Internet; and youth and human rights.

Resolutions on the enhancement of technical cooperation and capacity-building in the field of human rights; cooperation with Georgia; and technical assistance and capacity-building for Yemen in the field of human rights were also adopted.

The President’s Statement adopted concerned the report of the Advisory Committee on its thirty-first session.

During the session, the Council adopted the final outcomes of the Universal Periodic Review of 14 States, namely those of New Zealand, Afghanistan, Chile, Cyprus, Viet Nam, Yemen, Vanuatu, North Macedonia, Comoros, Slovakia, Eritrea, Uruguay, the Dominican Republic and Cambodia.

At the end of the session, the Council appointed four Special Procedures mandate holders: the Special Rapporteur on the situation of human rights in Belarus, Nils Muižnieks (Latvia); for the Working Group of Experts on People of African Descent, member from Western European and other States, Isabel Mamadou (Spain); for the Working Group on Enforced or Involuntary Disappearances, member from Asia-Pacific States, Mohammed Al-Obaidi (Iraq); and for the Working Group on the use of mercenaries as a means of violating human rights and impeding the exercise of the right of peoples to self-determination, member from Latin American and Caribbean States, Andrés Macias Tolosa (Colombia).

The Council also elected four members of its Advisory Committee: Frans Viljoen (African States), Miznah O.Alomair (Asia-Pacific States), Alessandra Devulsky (Latin American and Caribbean States), and Vassilis Tzevelekos (Western Europe and other States).

Darius Staniulis, Vice-President and Rapporteur of the Human Rights Council, said over the past five weeks, the Council completed its extensive programme of work. It held 23 interactive dialogues with Special Procedures mandate holders and expert mechanisms; nine interactive dialogues with the High Commissioner, Deputy High Commissioner, Assistant Secretary-General and other Office of the High Commissioner for Human Rights Representatives; five dialogues with international investigative mechanisms; five enhanced interactive dialogues; six panel discussions; and nine general debates. The Council also adopted 14 outcomes of the Universal Periodic Review. Finally, the Council completed the adoption of 37 resolutions and one President’s Statement across a wide range of issues.

The Council adopted the draft report of the fifth-seventh session ad referendum.

Omar Zniber, President of the Human Rights Council, in his concluding remarks,

extended his deepest gratitude to the members of the Bureau, the Secretariat and all other United Nations staff for their cooperation, support and dedication during the session. Mr. Zniber said the fifty-seventh session had been a success and was an example of multilateralism.

The fifty-eighth regular session of the Human Rights Council is scheduled to be held from 24 February to 4 April 2025.

Action on a Statement by the President Under Agenda Item One on Organizational and Procedural Matters

In a Statement by the President (A/HRC/57/L.13) on the Report of the Advisory Committee, adopted without a vote, the Council takes note of the report of the Advisory Committee on its thirty-first session.

Action on Resolutions Under Agenda Item Two on the Annual Report of the United Nations High Commissioner for Human Rights and Reports of the Office of the High Commissioner and the Secretary-General

In a resolution (A/HRC/57/L.1) on Promoting reconciliation, accountability and human rights in Sri Lanka, adopted without a vote, the Council decides to extend the mandate of the Office of the United Nations High Commissioner for Human Rights and all work requested of it by the Council in its resolution 51/1, and requests the Office to present an oral update to the Council at its fifty-eighth session and a comprehensive report on progress in reconciliation, accountability and human rights in Sri Lanka at its sixtieth session, to be discussed in an interactive dialogue.

In a resolution (A/HRC/57/L.22) on Responding to the human rights and humanitarian crisis caused by the ongoing armed conflict in the Sudan, adopted by a vote of 23 in favour, 12 against and 12 abstentions, the Council reiterates its call for an immediate and complete ceasefire by all parties, without preconditions, and a negotiated and peaceful resolution to the conflict on the basis of inclusive, Sudan-owned and Sudan-led dialogue; decides to extend the mandate of the independent international fact-finding mission for the Sudan for a period of one year; requests the fact-finding mission to provide the Council with an oral update on its work at its fifty-ninth session and a comprehensive report at its sixtieth session, to be followed by an interactive dialogue, and to submit the report to the General Assembly at its eightieth session.

In a resolution (A/HRC/57/L.24) on the Situation of human rights in Afghanistan, adopted without a vote, the Council decides to extend the mandate of the Special Rapporteur on the situation of human rights in Afghanistan for a period of one year, and requests the Special Rapporteur to present a report to the Council at its fifty-eighth session, including a separate study on the so-called “Law on propagation of virtue and prevention of vice”, to provide an oral update to the Council at its sixtieth session and to present a report to the General Assembly at its eightieth session; requests the Special Rapporteur to prepare a report on access to justice and protection for women and girls…and to present it to the Council at its fifty-ninth session, to be followed by an enhanced interactive dialogue; and also requests the Office of the High Commissioner to present, during an enhanced interactive dialogue at the sixtieth session of the Council, a comprehensive report, including a mapping of policies and practices, edicts and so-called laws by the Taliban that impair the enjoyment of human rights; and decides to remain seized of the matter.

Action on Resolutions Under Agenda Item Three on the Promotion and Protection of All Human Rights, Civil, Political and Cultural Rights, Including the Right to Development

In a resolution (A/HRC/57/L.2) on Marking the thirtieth anniversary of the Beijing Declaration and Platform for Action, adopted without a vote , the Council decides to convene, during the high-level segment at its fifty-eighth session, a high-level panel discussion to commemorate the thirtieth anniversary of the Fourth World Conference on Women; invites the President of the Human Rights Council to consider the theme “Thirtieth anniversary of the Beijing Declaration and Platform for Action” for the annual high-level panel discussion on human rights mainstreaming, to be held at the fifty-eighth session of the Council; and also requests the High Commissioner to prepare a summary report on the panel discussion.

In a resolution (A/HRC/57/L.5) on the Role of good governance in the promotion and protection of human rights, adopted without a vote, the Council requests the Human Rights Council Advisory Committee to prepare a study on the impact of artificial intelligence systems on good governance…highlighting good practices around the globe on the ways to develop, deploy, use and govern artificial intelligence systems, and to present the study to the Human Rights Council at its sixty-second session.

In a resolution (A/HRC/57/L.7) on Countering cyberbullying, adopted without a vote, the Council decides to include the topic of countering cyberbullying against persons with disabilities in the context of its next annual interactive debate on the rights of persons with disabilities, to be held at its fifty-eighth session; requests the Office of the High Commissioner for Human Rights to prepare a report … on countering cyberbullying against older persons, and to present the report to the Council at its sixty-second session; and decides to remain seized of the matter.

In a resolution (A/HRC/57/L.9) on the Promotion of a democratic and equitable international order, adopted by a vote of 27 in favour, 15 against and 5 abstentions, the Council calls upon States and the United Nations system to minimise the adverse impact of multiple interrelated global crises, including the COVID-19 pandemic, through the strengthening and enhancement of international cooperation; requests the High Commissioner for Human Rights to continue to provide all the human and financial resources necessary for the effective fulfilment of the mandate by the Independent Expert; and invites the Independent Expert to study and present concrete measures that can be adopted by States and international institutions to contribute to the promotion of a democratic and equitable international order and the transformation of the international financial architecture, in close cooperation with relevant stakeholders from all regions.

In a resolution (A/HRC/57/L.10) on the Use of mercenaries as a means of violating human rights and impeding the exercise of the right of peoples to self-determination, adopted by a vote of 29 in favour, 14 against and 4 abstentions, the Council urges once again all States to exercise the utmost vigilance against the threat posed by the activities of mercenaries; and requests the Working Group on the use of mercenaries as a means of violating human rights and impeding the exercise of the right of peoples to self-determination to continue the work already carried out by previous mandate holders on the strengthening of international law and the international legal framework for the prevention and sanction of the recruitment, use, financing, arming and training of mercenaries, and to study and identify new sources and causes, emerging issues, manifestations and trends.

In a resolution (A/HRC/57/L.17/Rev.1) on Social reintegration of persons released from detention and persons subjected to non-custodial measures, adopted without a vote, the Council requests the Office of the High Commissioner for Human Rights to prepare a comprehensive study, with practical recommendations on human rights and the social reintegration of persons released from detention and persons subjected to non-custodial measures, based on wide consultations with key stakeholders, and to present the study, accessible to persons with disabilities, to present to the Council at its sixtieth session.

In a resolution (A/HRC/57/L.21) on the World Programme for Human Rights Education: the plan of action for the fifth phase, adopted without a vote, the Council reaffirms the continuation of the World Programme on Human Rights Education and launches its fifth phase, for the period 2025-2029; and decides to convene at its sixty-third session a high-level panel discussion to mark the fifteenth anniversary of the United Nations Declaration on Human Rights Education and Training, further decides that the discussion will be fully accessible to persons with disabilities, and requests the Office of the High Commissioner to prepare a summary report of the discussion and to submit it to the Council by its sixty-fourth session.

In a resolution (A/HRC/57/L.3) on Terrorism and human rights, adopted without a vote, the Council calls upon States to ensure that any measure taken to counter terrorism and violent extremism conducive to terrorism complies with international law; invites the Special Rapporteur on the promotion and protection of human rights and fundamental freedoms while countering terrorism to pay attention to the negative effect of terrorism on the enjoyment of human rights and fundamental freedoms, and to make recommendations in this regard; and decides to remain seized of this matter.

In a resolution (A/HRC/57/L.6) on Local government and human rights, adopted without a vote, the Council requests the Office of the High Commissioner for Human Rights to convene a one-day panel discussion … prior to the sixtieth session of the Council, to exchange and review the best practices of States, local governments and other relevant stakeholders in overcoming the various challenges that local governments face in promoting and protecting human rights; also requests the Office of the High Commissioner to prepare a report … in which it compiles and analyses the best practices of States, local governments and other relevant stakeholders in overcoming the various challenges that local governments face in promoting and protecting human rights, taking into account the results of the panel, and to present the report to the Council at its sixty-third session.

In a resolution (A/HRC/57/L.23/Rev.1) on the Human rights to safe drinking water and sanitation, adopted without a vote, the Council decides to convene, at its fifty-ninth session, a panel discussion on the realisation of the human rights to safe drinking water and sanitation, and also decides that the discussion shall be fully accessible to persons with disabilities, including through the provision of hybrid modalities; and requests the High Commissioner for Human Rights to prepare a summary report on the panel discussion and to present it to the Council at its sixty-first session.

In a resolution (A/HRC/57/L.27) on the Human rights of migrants, adopted without a vote, the Council requests the Office of the High Commissioner to prepare a study on human rights monitoring in the context of migration, including at international borders, in consultation with States and other relevant stakeholders, and to submit the study to the Council before its sixtieth session; to convene a one-day intersessional panel discussion, accessible to persons with disabilities, and with appropriate gender representation, on measures to prevent, counter and address dehumanising and harmful narratives about migrants and migration, hate speech, xenophobia and related forms of intolerance against migrants; to ensure the meaningful participation of migrants and their family members; and to prepare a summary report on the panel discussion and the recommendations resulting from it, and to submit the report to the Council at its sixty-second session and to the General Assembly at its eighty-first session; and decides to remain seized of the matter.

In a resolution (A/HRC/57/L.29/Rev.1) on Human rights and Indigenous Peoples, adopted without a vote, the Council decides that the theme of the annual half-day panel discussion on the rights of Indigenous Peoples, to be held during the sixtieth session of the Council, will be the rights of Indigenous Peoples in the context of a just transition to sustainable energy systems, including in relation to critical minerals, and requests the Office of the High Commissioner to encourage and facilitate the participation of Indigenous women and youth in the panel, to make the discussion fully accessible to and inclusive for persons with disabilities, and to prepare a summary report on the discussion for submission to the Council prior to its sixty-second session; and invites the General Assembly to consider holding a high-level plenary meeting on the occasion of the twentieth anniversary of the United Nations Declaration on the Rights of Indigenous Peoples, during its eighty-second session, and to evaluate the implementation of the outcome document of the World Conference on Indigenous Peoples.

In a resolution (A/HRC/57/L.33) on Promoting accessibility for the full enjoyment of all human rights by all, adopted without a vote (as orally revised), the Council invites the Office of the High Commissioner for Human Rights to continue to provide technical assistance and capacity-building support to States upon their request in developing and implementing policies and programmes on accessibility, to continue to share its expertise with the relevant intergovernmental organizations and United Nations agencies, funds and programmes and to assist the relevant special procedure mandate holders and treaty bodies to integrate the view of accessibility for all from the perspective of the full enjoyment of all human rights by all into their work in close consultation with the relevant stakeholders.

In a resolution (A/HRC/57/L.34) on the Equal participation in political and public affairs, adopted without a vote, the Council calls upon all States to enhance the political participation of all women, and to address violence against women participating in political and public affairs; and requests the Office of the High Commissioner for Human Rights to continue its dissemination and promotion of the guidelines on the effective implementation of the right to participate in public affairs … and to prepare, in consultation with States and all other relevant stakeholders, a follow-up report on good practices and challenges that States face when using the guidelines, with a particular focus on participation in elections, and to present the report to the Council at its sixty-third session.

In a resolution (A/HRC/57/L.35/Rev.1) on the Elimination of domestic violence, adopted without a vote (as orally revised), the Council decides to convene an intersessional panel discussion on the intensification of efforts to prevent and eliminate domestic violence, before its sixty-first session, and requests the Office of the United Nations High Commissioner for Human Rights to organise the panel discussion … and requests the Office of the High Commissioner to prepare a comprehensive report … on how to address structural and underlying causes and risk factors to prevent domestic violence, in consultation with States and all relevant stakeholders, and to present the report to the Council at its sixty-second session.

In a resolution (A/HRC/57/L.19) on the Right to development, adopted by a vote of 29 in favour, 14 against and 4 abstentions, the Council requests the High Commissioner for Human Rights to continue to submit to the Council an annual report on the activities of the Office of the High Commissioner, including on inter-agency coordination within the United Nations system that has direct relevance to the realisation of the right to development; requests the Special Rapporteur and the members of the Expert Mechanism to participate in relevant international dialogues and policy forums relating to the implementation of the 2030 Agenda; requests the Office of the High Commissioner to organise the next biennial panel discussion on the right to development, to be held at its sixty-third session, in a format that is fully accessible to persons with disabilities, including sign language interpretation; and also requests the Office to prepare a report on the panel discussion and to submit it to the Council at its sixty-sixth session.

In a resolution (A/HRC/57/L.26) on Biodiversity and human rights, adopted without a vote, the Council requests the High Commissioner for Human Rights to conduct a global analytical study on the implementation of a human-rights based approach into the goals and targets of the Kunming-Montreal Global Biodiversity Framework, to be submitted to the Council at its sixty-first session; and encourages the Office of the High Commissioner to cooperate with other relevant United Nations organizations and bodies, as well as with Indigenous Peoples, people of African descent and groups in vulnerable situations on advancing human rights-based biodiversity action.

In a resolution (A/HRC/57/L.28) on the Promotion, protection and enjoyment of human rights on the Internet, adopted without a vote (as orally revised), the Council calls upon all States to accelerate efforts to bridge digital divides, including the gender digital divide, and to take the necessary and appropriate measures to promote free, open, interoperable, reliable, accessible and secure access to the Internet; and requests the Office of the High Commissioner for Human Rights to prepare a report on a human rights approach to meaningful connectivity and to overcoming digital divides, including by addressing threats to individuals’ access to the Internet, and to present it to the Council at its sixty-second session, to be followed by an interactive dialogue.

In a resolution (A/HRC/57/L.30) on Youth and human rights, adopted without a vote, the Council decides that the theme of the next biennial panel discussion, to be held during the sixtieth session of the Council, will be the role of youth in fostering peaceful societies and creating an enabling environment for the enjoyment of human rights by all, and requests the Office of the High Commissioner to organise the panel discussion following consultations with youth and youth-led organizations and to prepare a summary report on the panel discussion for consideration by the Council at its sixty-first session; and requests the Office of the High Commissioner, in consultation with States and relevant stakeholders, to conduct a detailed study on the impact of mental health challenges on the enjoyment of human rights by young people and to submit the study to the Council for consideration prior to its sixty-third session.

Before the resolution was adopted, the Council took action on and rejected amendment L.39.

In a resolution (A/HRC/57/L.31/Rev.1) on the Mandate of the Special Rapporteur on the promotion and protection of human rights in the context of climate change, adopted without a vote (as orally revised), the Council decides to extend for a period of three years the mandate of the Special Rapporteur on the promotion and protection of human rights in the context of climate change under the same terms as provided for by the Council in its resolution 48/14; and requests the Special Rapporteur to report annually on the implementation of the mandate to the Council and the General Assembly in accordance with their programmes of work.

Action on Resolutions Under Agenda Item Four on Human Rights Situations that Require the Council’s Attention

In a resolution (A/HRC/57/L.4) on the Situation of human rights in the Russian Federation, adopted by a vote of 20 in favour, 8 against and 19 abstentions, the Council decides to extend the mandate of the Special Rapporteur on the situation of human rights in the Russian Federation as defined by the Council in its resolution 54/23 for a period of one year, and requests the mandate holder to … present a comprehensive report to the Council at its sixtieth session and to the General Assembly at its eightieth session; and calls upon the Russian authorities to establish full and non-selective engagement with all United Nations human rights mechanisms, and to refrain from all forms of intimidation and reprisal against persons and associations for their cooperation with United Nations human rights mechanisms.

In a resolution (A/HRC/57/L.11) on the Situation of human rights in the Syrian Arab Republic, adopted by a vote of 26 in favour, 4 against and 17 abstentions, the Council demands that all parties to the conflict in the Syrian Arab Republic immediately comply with their respective obligations under international humanitarian law and international human rights law, and emphasises the need to ensure that all those responsible for such violations and abuses are held to account and that civilians are protected; and demands that the Syrian authorities cooperate fully with the Council and the Independent International Commission of Inquiry on the Syrian Arab Republic by granting the Commission immediate, full and unfettered access throughout the Syrian Arab Republic; demands that all parties to the conflict maintain rapid, unhindered, safe and sustainable humanitarian access and ensure that humanitarian assistance reaches its intended recipients.

In a resolution (A/HRC/57/L.12) on the Situation of human rights in Burundi, adopted by a vote of 22 in favour, 10 against and 15 abstentions, the Council strongly condemns all human rights violations and abuses committed in Burundi; decides to extend the mandate of the Special Rapporteur on the situation of human rights in Burundi for a further period of one year; and requests the Special Rapporteur to present to the Human Rights Council, at its fifty-ninth session, an oral update on the situation of human rights in Burundi, and also to submit to the Council, at its sixtieth session, and to the General Assembly, at its eightieth session, a comprehensive report.

In a resolution (A/HRC/57/L.8) on the Situation of human rights in the Bolivarian Republic of Venezuela, adopted by a vote of 23 in favour, 6 against and 18 abstentions (as orally revised), the Council decides to extend for a period of two years the mandate of the independent international fact-finding mission on the Bolivarian Republic of Venezuela to enable the mission to continue to investigate gross violations of human rights committed since 2014, with a particular focus on the situation of human rights in the lead-up to, during and after the 2024 presidential elections, and on the violence by armed individuals known as colectivos; and urges the Bolivarian Republic of Venezuela to resume cooperation in a full manner with the Office of the High Commissioner for Human Rights and the fact-finding mission.

Before the resolution was adopted, the Council took action on and rejected amendments L.40, L.41, L.42, L.43 and an oral amendment.

Action on a Resolution Under Agenda Item Eight on Follow-up and Implementation of the Vienna Declaration and Programme of Action

In a resolution (A/HRC/57/L.16) on National human rights institutions, adopted without a vote (as orally revised), the Council requests the Secretary-General and the High Commissioner for Human Rights to provide the Office of the High Commissioner with the financial and human resources necessary for the servicing of the sessions of the Subcommittee on Accreditation of the Global Alliance of National Human Rights Institutions; and requests the Secretary-General to submit to the Council, at its sixty-third session, a report on the implementation of the present resolution … and a report on the activities of the Global Alliance of National Human Rights Institutions in accrediting national institutions in compliance with the Paris Principles.

Action on Resolutions Under Agenda Item 9 on Racism, Racial Discrimination, Xenophobia and Related Forms of Intolerance, Follow-Up to and Implementation of the Durban Declaration and Programme of Action

In a resolution (A/HRC/57/L.25) on Education as a tool to prevent racism, racial discrimination, xenophobia and related intolerance, adopted without a vote (as orally revised), the Council urges States, in particular, to adopt and implement laws, policies and programmes that prohibit and combat discrimination on the basis of race, colour, descent or national or ethnic origin, at all levels of education, both formal and non-formal; and requests the High Commissioner for Human Rights to submit to the Council at its sixty-third session a comprehensive report, accessible to persons with disabilities, including in an accessible and easy to read format, analysing relevant education-related practices and measures to prevent racism, racial discrimination, xenophobia and related intolerance, with input from all relevant stakeholders.

In a resolution (A/HRC/57/L.36/Rev.1) on From rhetoric to reality: a global call for concrete action against racism, racial discrimination, xenophobia and related intolerance, adopted by a vote of 30 in favour, 5 against and 12 abstentions, the Council decides that the Chair-Rapporteur of the Ad Hoc Committee on the Elaboration of Complementary Standards to the International Convention on the Elimination of All Forms of Racial Discrimination may request that the annual session of the Ad Hoc Committee be split into two full one-week segments; requests the High Commissioner for Human Rights to facilitate the interactive participation of six legal experts in one of the two full one-week segments of the fifteenth and sixteenth sessions of the Ad Hoc Committee, to be held in 2025 and 2026 respectively; requests the Chair-Rapporteur of the Ad Hoc Committee to present in person a progress report to the General Assembly at its eightieth session, and to participate in the interactive dialogue and carry out consultations to continue progress in the elaboration of complementary standards to the Convention; reiterates its decision to request the Group of Independent Eminent Experts on the Implementation of the Durban Declaration and Programme of Action to report annually on its session and activities to the Council, and that its report will be also transmitted and presented to the General Assembly, and in this regard requests the Chair of the Group to engage in an interactive dialogue with the Assembly under the agenda item entitled “Elimination of racism, racial discrimination, xenophobia and related intolerance”; and encourages the General Assembly to proclaim a second International Decade for People of African Descent commencing in 2025.

Action on Resolutions Under Agenda Item 10 on Technical Assistance and Capacity-Building

In a resolution (A/HRC/57/L.14) on Technical assistance and capacity-building to address the human rights implications of the nuclear legacy in the Marshall Islands, adopted without a vote, the Council requests the Office of the High Commissioner for Human Rights to cooperate with the Government of the Marshall Islands in the field of human rights and to provide technical assistance and capacity-building to the National Nuclear Commission of the Marshall Islands in advancing its national strategy for nuclear justice and pursuing transitional justice in its efforts to address the nuclear legacy; and requests the Office of the High Commissioner to prepare a report on addressing the challenges and barriers to the full realisation and enjoyment of the human rights of the people of the Marshall Islands, stemming from the State’s nuclear legacy, and to submit it to the Council at its sixty-third session, to be followed by an enhanced interactive dialogue.

In a resolution (A/HRC/57/L.15) on Assistance to Somalia in the field of human rights, adopted without a vote, the Council decides to renew the mandate of the Independent Expert on the situation of human rights in Somalia, under agenda item 10, for a period of one year, to assess, monitor and report on the situation of human rights in Somalia; requests the Independent Expert to report to the Council at its sixtieth session and to the General Assembly at its eightieth session; and also requests the Independent Expert to provide an update to the Council in her report on progress on the implementation of the benchmarks and indicators in the transition plan to inform future action by the Council.

In a resolution (A/HRC/57/L.18) on the Enhancement of technical cooperation and capacity-building in the field of human rights, adopted without a vote, the Council decides … that the theme of the annual thematic panel discussion under agenda item 10, to be held at its fifty-ninth session, will be “The role of technical cooperation and capacity-building in strengthening national structures which play a role in promoting and safeguarding human rights, particularly national human rights institutions and national mechanisms for implementation, reporting and follow-up”; and also requests the Office of the High Commissioner to prepare a report, to be submitted to the Human Rights Council at its fifty-ninth session, to serve as a basis for the panel discussion, on the role of technical cooperation and capacity-building among States, the Office and other relevant stakeholders, to support States’ efforts to strengthen national structures which play a role in promoting and safeguarding human rights.

In a resolution (A/HRC/57/L.20) on Cooperation with Georgia, adopted by a vote of 24 in favour, 3 against and 20 abstentions, the Council demands that immediate and unimpeded access be given to the Office of the High Commissioner for Human Rights and other international and regional human rights mechanisms to Abkhazia, Georgia, and the Tskhinvali region/South Ossetia, Georgia; requests the High Commissioner for Human Rights to present to the Council an oral update on the follow-up to the present resolution at its fifty-eighth session and to present a report on developments relating to and the implementation of the present resolution at its fifty-ninth session; and also requests the High Commissioner to continue to provide technical assistance through the Office of the High Commissioner in Tbilisi.

In a resolution (A/HRC/57/L.37) on Technical assistance and capacity-building in the field of human rights in the Democratic Republic of the Congo, adopted without a vote, the Council decides to renew, for one year, the mandate of the team of international experts on the Democratic Republic of the Congo, and requests the team to provide the necessary technical support to the Government in implementing effectively its National Transitional Justice Policy, in particular by taking account of the cross-border nature of conflict and insecurity in the Great Lakes, identifying the causes of conflict and preventing their recurrence, and designing and implementing mechanisms for transitional justice and the fight against impunity, and encourages it to support the Government in this regard; requests the team of international experts to submit its final report to the Council, in the framework of an enhanced interactive dialogue, at its sixtieth session and to present it with an oral update at its fifty-eighth session; requests the High Commissioner to present the Council with an oral update on the situation of human rights in the Democratic Republic of the Congo, in the framework of an enhanced dialogue, at its fifty-eighth session; also requests the High Commissioner to prepare a comprehensive report on the situation of human rights in the Democratic Republic of the Congo and to submit it to the Council, in the framework of an enhanced interactive dialogue, at its sixtieth session; and decides to remain seized of the matter until its sixtieth session.

In a resolution (A/HRC/57/L.38/Rev.1) on Technical assistance and capacity-building in the field of human rights in the Central African Republic, adopted without a vote, the Council decides to renew, for one year, the mandate of the Independent Expert on the situation of human rights in the Central African Republic, which is to assess, monitor and report on the situation with a view to making recommendations relating to technical assistance and capacity-building in the field of human rights; requests the Independent Expert to pay particular attention to violations of human rights and international humanitarian law alleged to have been committed by all parties to the conflict; decides to convene, at its fifty-eighth session, a high-level dialogue to enable it to assess human rights developments on the ground…; requests the Independent Expert to provide an oral update on his report on technical assistance and capacity-building in the field of human rights in the Central African Republic to the Human Rights Council at its fifty-ninth session and to submit a written report to the Council at its sixtieth session and to the General Assembly at its eightieth session; and requests the United Nations High Commissioner for Human Rights to continue to provide the Independent Expert with all the necessary technical, human and financial resources to enable him to carry out fully his mandate.

In a resolution (A/HRC/57/L.32) on Technical assistance and capacity-building for Yemen in the field of human rights, adopted without a vote, the Council requests the High Commissioner for Human Rights to continue to provide substantive capacity-building and technical assistance to the Government of Yemen and all requisite technical and logistical support to the National Commission of Inquiry, to enable it to continue to investigate allegations of violations and abuses committed by all parties to the conflict in Yemen and to submit its comprehensive report on alleged violations and abuses of human rights in all parts of Yemen as soon as it is available; and requests the High Commissioner to present a report on the implementation of technical assistance, as stipulated in the present resolution, to the Council at its sixtieth session.

Other Matters

The Council appointed four Special Procedures mandate holders: the Special Rapporteur on the situation of human rights in Belarus, Nils Muižnieks (Latvia); for the Working Group of Experts on People of African Descent, member from Western European and other States, Isabel Mamadou (Spain); for the Working Group on Enforced or Involuntary Disappearances, member from Asia-Pacific States, Mohammed Al-Obaidi (Iraq); and for the Working Group on the use of mercenaries as a means of violating human rights and impeding the exercise of the right of peoples to self-determination, member from Latin American and Caribbean States, Andrés Macias Tolosa (Colombia).

The Council elected four members of its Advisory Committee: Frans Viljoen (African States), Miznah O.Alomair (Asia-Pacific States), Alessandra Devulsky (Latin American and Caribbean States), and Vassilis Tzevelekos (Western Europe and other States).

The Council also adopted its draft report for the fifty-seventh session ad referendum.

Bureau of the Council

The President of the Council is Omar Zniber of Morocco. The four Vice-Presidents are Febrian Ruddyard (Indonesia); Darius Staniulis (Lithuania); Marcela Maria Arias Moncada (Honduras); and Heidi Schroderus-Fox (Finland). Mr. Staniulis also served as Rapporteur.

Produced by the United Nations Information Service in Geneva for use of the media;
not an official record. English and French versions of our releases are different as they are the product of two separate coverage teams that work independently.

HRC24.030E

MIL OSI United Nations News –

January 24, 2025

MIL-OSI USA News: A Proclamation on National School Lunch Week, 2024

Source: The White House

America’s children deserve every opportunity to live fulfilling and healthy lives, and nutritious meals are key components in building those lives. During National School Lunch Week, we reaffirm that the health and well-being of our Nation’s children are a national priority. We recommit to doing everything we can to end child hunger. And we celebrate school nutrition professionals, who do the critical work of planning, preparing, and serving nutritious school meals to more than 30 million students each day.

Healthy school lunches benefit our Nation’s students and their families. Fueled by a good lunch, students can better focus in the classroom and be set up for success throughout the rest of their day. Free and reduced-price school meals provide families with some breathing room. And for families that live in areas where there are no grocery stores with healthy food options nearby, school meals can be a lifeline — offering children reliable, nutritious meals.

My Administration is committed to putting a healthy school lunch within reach of all our Nation’s children, no matter their family’s income. That is why we are giving more schools the option to make free school meals available to every student, and we published a final rule updating nutrition standards for school meals to improve children’s health. For the first time since 1975, we modernized the Thrifty Food Plan, making a healthy diet more affordable for the millions of families with Supplemental Nutrition Assistance Program benefits. These actions are a part of our national strategy to end hunger and reduce diet-related diseases by 2030. That plan includes the goal of expanding access to healthy, free school meals to nine million more kids — working toward a future where every kid has access to one. We also hosted the first White House Conference on Hunger, Nutrition, and Health in over 50 years. Since then, we have galvanized over $10 billion in external commitments dedicated to ending hunger and reducing diet-related diseases in children and families across the country. Furthermore, we are giving schools the resources they need to purchase food from local farmers and ranchers and cook meals from scratch — giving kids healthier options and powering our rural economy.

My Administration is taking steps to ensure our Nation’s children and families do not go hungry and can afford healthy food. This year my Administration launched SUN Bucks — also referred to as Summer Electronic Benefits Transfer — to provide families with money to buy groceries when school is out, reaching an estimated 21 million children. My American Rescue Plan expanded the Child Tax Credit, slashing child poverty by nearly 50 percent and helping keep food on the table for millions of families during the pandemic. I continue to call on the Congress to restore the enhanced Child Tax Credit to ensure families have the money they need to feed and care for their kids.

During National School Lunch Week, we recognize how important school lunches are to kids and families alike and recommit to expanding access to healthy, free school meals to support the health of the next generation. And we thank all the school staff, school nutrition professionals, educators, and school leaders, whose tireless work nourishes the future leaders of our Nation.

NOW, THEREFORE, I, JOSEPH R. BIDEN JR., President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim October 13 through October 19, 2024, as National School Lunch Week. I call upon all Americans to recognize and commemorate all those who operate the National School Lunch Program with activities that raise awareness of the steadfast efforts in support of the health and well-being of our Nation’s children.

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

JOSEPH R. BIDEN JR.

MIL OSI USA News –

January 24, 2025

MIL-OSI USA News: Remarks by President Biden on the Response to Hurricane Milton | St. Pete Beach, FL

Source: The White House

Residential Area
St. Pete Beach, Florida

11:34 A.M. EDT

THE PRESIDENT: Hello, folks.

I just met a number of the homeowners, been wiped out, and the — everything from the Coast Guard to the fire department. It’s a hell of a deal.

I’m here in Florida for the second time in two weeks and — to survey the damage from another catastrophic storm: Hurricane Milton. Thankfully, the storm’s impact was not as cataclysmic as had — we had predicted. But on top of two [one] before it, it just keeps s- — seem we got to get — getting worse.

And bu- — you know, but for some individuals, it was cataclysmic — all those folks who not only lost their homes but, more importantly, those folks who lost their lives, lost family members, lost all their personal belongings. Entire neighborhoods were flooded, and millions — millions were without power.

Earlier this morning, I did an aerial tour of Saint Petersburg and the battered coastline. I flew over Tropicana Field and — where the Tampa Bays play — Rays play, and the roof was almost completely off. But thank God not many people were injured.

I spoke with first responders who’ve been working around the clock. I also met with small-business owners here and homeowners who’ve taken a real beating — these back-to-back storms. And they’re heartbroken and exhausted, and their expenses are piling up.

And I know from experience how devastating it is to lose your home. Several years ago, my home was struck by lightning. It didn’t all burn down, but we were out of the home for seven months while it was being repaired. The thing I was most concerned about was not just the home; it was all those things, all those — all those pictures I saved, my — and my daughter had drawn when she was little, all the — all the family photographs, all the albums, all the things that really matter.

Folks, the — the fact is that when you lose your wedding ring and the old photos of your children, family keepsakes, things that can’t be replaced — but sometimes, from my own experience, that’s the part that hurts the most.

And I’m standing next to the mayor of Pete’s Beach and the Chairwoman Peters. Both their homes were damaged in Hurricane Milton. The mayor’s home flooded, family vehicles washed away. The county chair’s home had experienced significant damage in the past two storms previous. They just finished rebuilding and settling back in, and now they have to do it all over again.

Both their families lost precious personal belongings, but they’ve stepped up not only to look out for themselves but to help other families, help their neighbors. You know, that’s the resilience of the people of West Florida.

And I want to thank them and all the public officials who suffered consequential losses because of the storm but who are out there doing things to help other people who had serious losses. It matters. The American people should know the sacrifices they’re making.

You know, they’ve been steadfast partners as well. We’ve been in frequent contact.

And it’s in moments like this we come together to take care of each other, not as Democrats or Republicans but as Americans — Americans who need help and Americans who would help you if you were in the same situation. We are one United States — one Unites States.

I also came here to talk about all the progress we have made together. This is a whole-of-government effort, from state and local to FEMA to U.S. Coast Guard, Army Corps of Engineers, the Energy Department, Environmental Protection Agency, Department of Defense, just to name a few.

FEMA has delivered 1.2 million meals, over 300,000 liters of water, 2 million gallons of fuel. And so far, we’ve installed 100 satellite terminals to restore communications in impacted areas so families can ton- — contact their loved ones to be sure everything is okay and be able to reach out for help as well.

Speaking of help, so far, we’ve opened 10 disaster recovery centers in Florida, with more to come, so people can have one stop to meet with officials, get the federal help they’re entitled to that’s available to them, such as direct, immediate financial aid and no [low-]interest payment loans, mortgage relief, and so much more.

You can also go online to DisasterAssistance.gov — DisasterAssistance.gov — or call 1-800-621-FEMA — F-E-M-A.

Yesterday, after I signed the major disaster declaration, more than 250,000 Floridians registered for help — 250,000 — the most in sin- — any — a single day ever in the history of this country — 250,000.

I know you’re concerned about the debris removal, and it’s obvious why. We’re prioritizing debris removal and working with the state and local partners to clear roads, to get wreckage into — of the two hurricanes off properties, and so more folks can return home and businesses can receive much-needed deliveries of food, fuel, medicine, and other essentials. That’s a priority for me.

Power has also been restored to over 2 million people in a matter of days. And thanks to tens of thousands of power workers from 43 states and Canada working nonstop, even more people will have more power restored soon.

Today, I’m proud to announce $612 million to six new cutting-edge projects to support communities impacted by Hurricane Helene and Milton. That includes $47 million for Gainesville Regional Utilities and another $47 million for Florida Power & Light.

This funding will not only restore power, but it’ll make the region’s power system stronger and more capable and reduce the frequency and duration of power outages while extreme weather events become more frequent.

In fact, we’ve been able to restore power quicker because of critical infrastructure investments were made both when I was vice president and president to harden the grid. For folks at home, “the grid” means the electrical power system that transmits energy from the — where it’s produced in a power plant to where it’s used in homes and businesses.

We’ve been hardening the grid, like b- — like burying transmission lines underground, replacing wood power poles with concrete or composite poles so they don’t snap in the wind.

Energy Secretary Granholm is here with me today leading this effort, and she’ll tell you more about it and other cutting-edge technologies on the grid in a moment.

Let me close with this. I’m here to porsonally — personally say thank you to the brave first responders — and I don’t want to underestimate that — brave first responders, men and women in uniform, utility workers. (Inaudible) look at the number that showed up from around the country — from Canada — California, Nebraska, all over the country — to come here to help.

Men and women in uniform, as I said; health care personnel; neighbors helping neighbors; and so many more people. This is all a team effort, folks. You made a big difference. And it’s saved lives.

But there’s much more to do, and we’re going to do everything we can to get power back into your homes, not only helping you recover but to help you build back stronger.

God bless you all. And may God protect our first responders and protect our troops.

Now I’m going to turn this over to Secretary Granholm. Madam Secretary.

11:42 A.M. EDT

MIL OSI USA News –

January 24, 2025

MIL-OSI USA News: FACT SHEET: Biden-⁠ Harris Administration Continues Recovery Efforts in North Carolina Following Hurricane Helene

Source: The White House

Following Hurricane Helene’s devastating impacts across the Southeast and Appalachia, the Biden-Harris Administration continues its robust Federal efforts to help communities recover and rebuild. The storm heavily impacted North Carolina, where the Administration continues to surge resources and assist families, business owners, farmers, and other impacted communities receive the support and assistance they need and deserve.

Federal disaster assistance for Hurricane Helene survivors has surpassed $474 million – including more than $86 million in housing and other types of assistance for survivors in North Carolina. Survivors can register for assistance at one of three Disaster Recovery Centers in Caldwell, McDowell, and Buncombe Counties, or on disasterassistance.gov, by calling 1-800-621-3362, or via the FEMA app.

The Department of Defense continues to support search-and-rescue operations, route clearance, and commodities distribution across western North Carolina with 1,500 active-duty troops. The Department of Defense is also employing additional capabilities to assist with increasing situational awareness across the remote terrain of Western North Carolina. The Army Corps of Engineers continues missions supporting debris removal, temporary emergency power installation, infrastructure and water and wastewater assessments, and technical assistance. Over 2,000 North Carolina National Guard personnel along with over 200 Guardsmen from 15 States are conducting response operations in western North Carolina.

As response efforts continue in North Carolina, more than 1,250 FEMA staff remain on the ground, with more arriving daily. Nearly 400 Urban Search and Rescue personnel remain in the field helping people. These teams have rescued or supported over 3,200 survivors to date.

Power has been restored to more than approximately 96 percent of customers, as a result of 10,000 utility personnel working around the clock. Cellular restoration also continues to improve, with more than 93 percent of cellular sites in service. FEMA is boosting response coordination by providing 40 Starlink units to ensure first responders can communicate with each other.

Commodity distribution, mass feeding, and hydration operations continue in areas of western North Carolina. FEMA continues to send commodity shipments and voluntary organizations are supporting feeding operations with bulk food and water deliveries coming via truck and aircraft. Mobile feeding operations are reaching survivors in heavily impacted areas, including three mass feeding sites in Buncombe, McDowell and Watauga counties. The Salvation Army has 20 mobile feeding units supporting this massive operation and has provided emotional and spiritual care to survivors. To date, the American Red Cross is engaging in targeted distribution of emergency supplies in low-income communities with high levels of minor or affected residential damage.

Additional recovery efforts in North Carolina include:

Supporting Infrastructure Recovery

As part of the robust, whole-of-government response to Hurricane Helene, the U.S. Department of Transportation is supporting response and recovery efforts in impacted communities in North Carolina. DOT personnel are on the ground in multiple locations of the state.

On October 5, the Department of Transportation’s Federal Highway Administration (FHWA) announced $100 million in Quick Release Emergency Relief funding to support North Carolina. The funding helps pay for the costs of immediate emergency work resulting from Hurricane Helene flood damage. Additional funding will flow to affected communities from the Emergency Relief program.

FHWA worked closely with North Carolina and other federal agencies to assess infrastructure damage, including supporting hundreds of bridge inspections and other critical infrastructure assessments across the Southeast. On October 8, FHWA Acting Administrator Kristin White visited the region with Governor Roy Cooper, North Carolina Department of Transportation Secretary Joey Hopkins and other federal, state and local officials and got a first-hand look at impacts from the storm and recovery efforts.

The Federal Aviation Administration (FAA) continues to work with partners in affected parts of North Carolina and Tennessee, as the national airspace steadily returned to normal operations.

The FAA Air Traffic Organization Technical Operations Team is on-site and leading communications restoration efforts at air traffic facilities. FAA also supported the North Carolina Air National Guard by providing advisory services at Rutherford County Airport and Avery County Airport.

The FAA worked with state and local governments, critical infrastructure owners and operators, and first responders to enable drones to support response and recovery. The FAA granted permission to allow Wing to temporarily conduct beyond visual line of sight drone package deliveries for Walmart’s pharmacy in western North Carolina, delivering essential items including prescription medicine, medical supplies, and medical equipment to hard-to-reach locations.

Additionally, President Biden’s approval of a Presidential Emergency Declaration for North Carolina affords the state a period of emergency regulatory relief from Federal Motor Carrier Safety regulations, including flexibility around driving time for property- and passenger-carrying vehicles. This allows truck drivers to get essential supplies to affected areas in North Carolina. It may also provide opportunities for motorcoach buses to deliver relief teams to response locations and allow for the transport and evacuation of residents.

On October 10, Environmental Protection Agency (EPA) Administrator Michael Regan joined Governor Cooper, Senator Tillis, Congressman Edwards and local officials to assess federal and state recovery efforts in response to Hurricane Helene. EPA and its state partners have made significant progress bringing drinking water and wastewater systems back online, including restoring service to more than 75 drinking water systems that serve approximately 260,000 people in the Asheville area. EPA is also providing technical assistance and drinking water testing to systems and private drinking water well owners across the Asheville area through their Mobile Drinking Water lab – giving residents clear data and confidence that their water is safe to drink. The lab is capable of testing 100 samples per day. Water utilities and private well owners must request sampling services through their local health departments. EPA will remain on the ground in North Carolina helping area residents as long as their assistance is needed.

The Department of Energy’s Energy Response Organization remains activated to respond to storm impacts, and responders remain deployed to FEMA regional response coordination centers. Via the Electricity Sub-Sector Coordinating Council and Oil and Natural Gas Sub-Sector Coordinating Council, the Department of Energy has been coordinating continuously with energy sector partners on the ongoing Hurricane Helene response. As noted above, there are 10,000 line workers supporting power restoration efforts.

The National Oceanic and Atmospheric Administration continues to support post-disaster imagery flights following Hurricane Helene, already totaling over 68 flight hours during 20 flights, including over western North Carolina. This imagery not only supports FEMA and the broader response community, but the public at large.

Providing Financial Flexibilities to Homeowners and Taxpayers

The U.S. Department of Housing and Urban Development (HUD) is providing a 90-day moratorium on foreclosures of mortgages insured by the Federal Housing Administration (FHA) as well as foreclosures of mortgages to Native American borrowers guaranteed under the Section 184 Indian Home Loan Guarantee program. Additionally, affected homeowners that have mortgages through Government-Sponsored Enterprises – including Fannie Mae and Freddie Mac – and the FHA are eligible to suspend their mortgage payments through a forbearance plan for up to 12 months.

HUD announced $3 million for the State of North Carolina to support people experiencing homelessness in communities impacted by Hurricane Helene. Funding from the Rapid Unsheltered Survivor Housing program will help residents and families who are experiencing or at risk of homelessness and have needs that are not otherwise served or fully met by existing Federal disaster relief programs.

This summer, HUD launched a new streamlined process for requesting additional flexibility on existing grants after a disaster is declared. Recipients of annual HUD funding – including in North Carolina – may request waivers to unlock and accelerate the use of their funding for disaster response and recovery. With the updated waiver process, HUD is proactively issuing maximum flexibility to communities impacted by disasters. These flexibilities will expedite the recovery process, reduce administrative burden, and allow impacted jurisdictions to quickly tailor programs and activities to address the post disaster needs of their communities. The Disaster Assistance and Recovery Team within HUD’s Office of Housing Counseling continues to conduct focused meetings with housing counseling agencies in each state impacted by these disasters to discuss their unique response and recovery challenges and identify resources available to assist.

The Internal Revenue Service announced disaster tax relief for all individuals and businesses affected by Hurricane Helene in North Carolina. North Carolina taxpayers now have until May 1, 2025, to file various federal individual and business tax returns and make tax payments.

Protecting Public Health

The U.S. Department of Health and Human Services (HHS) declared a Public Health Emergency for North Carolina to address the health impacts of Hurricane Helene. HHS’s Administration for Strategic Preparedness and Response (ASPR) continues to provide medical support for Hurricane Helene, predominantly onsite in North Carolina. These ASPR personnel are deployed to support Hurricane Helene response operations, which include four Disaster Medical Assistance Teams and personnel from a Disaster Mortuary Operational Response Team (DMORT) in North Carolina. ASPR Health and Medical Task Forces and ASPR Disaster Medical Assistance Teams from the National Disaster Medical System are providing 24-hour surge support to three hospitals: Mission Hospital in Asheville, Blue Ridge Regional Hospital in Spruce Pine, and Caldwell Memorial in Lenoir. To date, ASPR teams have seen nearly 1000 patients. ASPR will continue to work with federal, state, and local partners to prioritize medical assistance to other areas affected by Hurricane Helene as required and requested.

Supporting Workers and Worker Safety

Working alongside the Department of Labor, the States of North Carolina has announced that eligible workers can receive federal Disaster Unemployment Assistance to compensate for income lost directly resulting from Hurricane Helene. And, through the Department of Labor’s innovative partnership with the U.S. Postal Service, displaced workers in North Carolina can now go to the post office in any other state and verify their ID for purposes of getting their benefits quickly.

Supporting Farmers and Agriculture

The U.S. Department of Agriculture (USDA) has put contingency plans and program flexibilities into place to ensure farmers, foresters and communities are able to get the support they need, such as by extending program signup opportunities, expediting crop insurance payments, and using waivers and emergency procedures to expedite recovery efforts on working lands. USDA’s Food and Nutrition Service has issued flexibilities and waivers for North Carolina to ensure that food and nutritional assistance reaches those in need as soon as possible. In North Carolina, waivers have been issued to increase access to WIC products, replace benefits through Summer EBT, allow the purchase of hot foods through SNAP, and more.

Additionally, USDA is currently coordinating over 200 staff on the ground in North Carolina, including saw support teams and emergency road clearance teams, to help clear trees and debris, including in Waterville, Marion, Newton, and Weaverville.

Supporting Students and Student Loan Borrowers

The Department of Education has offered technical assistance to states and local educational agencies to support recovery efforts and shared critical resources, including those developed by other federal agencies and organizations, to support restoring the teaching and learning environment.

The Department’s office of Federal Student Aid (FSA) has flexibilities that are automatically available to affected institutions of higher education to help their continued management of the federal student aid programs. These flexibilities help schools if they need to adjust their academic calendars, such as due to unexpected closures, and also help students who may need to take a leave of absence. The flexibilities also help students avoid reductions in their federal aid due to any state or federal disaster assistance provided. FSA will also work with affected institutions that need help on other areas, such as paying credit balances. FSA has communicated with schools located in the areas impacted by Hurricane Helene. Those communications included existing Department guidance about how natural disasters impact schools and their administration of financial aid, resources, and links to FEMA disaster aid information. FSA’s communications also included a way for schools to share more information about the disaster impact on their campus and submit questions about administrative relief and flexibilities.

The Department is ensuring affected borrowers in areas impacted by the hurricanes can focus on their critical needs without needing to worry about missing their student loan payments. Direct Loan borrowers and federally-serviced FFEL borrowers in the affected area who miss their payments will be automatically placed into a natural disaster forbearance. During forbearance, payments are temporarily postponed or reduced, and interest is still charged. Thanks to regulations issued by the Biden-Harris Administration, months in this forbearance will count toward PSLF and IDR forgiveness. Direct Loan and federally serviced FEEL borrowers are not required to take an action but have the option to call their servicer if they wish to enroll in the forbearance proactively. Perkins loan borrowers should contact their loan holder to request natural disaster forbearance. 

Continuing to Survey Data

The Department of the Interior’s U.S. Geological Survey (USGS) continues working to measure river levels and flow, and repair streamgages that transmit critical data. USGS crews continue working to determine the extent of flooding by surveying for high-water marks. These flood-peak data and high-water marks are used to determine flood frequency and are critical in the design of infrastructure and in determining flood plain boundaries. USGS stood up a landslide response team that now includes 32 USGS scientists, 19 of which ware mapping landslides, to provide technical assistance to the North Carolina Geological Survey and Tennessee Geological Survey. Their work includes reconnaissance using satellite imagery, flights, and on-the-ground assessments to map landslides.

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MIL OSI USA News –

January 24, 2025

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

Source: The White House

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

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

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

Advancing economic opportunity abroad

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

Protecting the U.S. financial system from abuse

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

Keeping America and our partners safe

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

Defending democracy by rooting out corruption

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

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

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

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

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

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MIL OSI USA News –

January 24, 2025

MIL-OSI USA News: Statement from Vice President Kamala Harris on One Million Public Service Workers Receiving Student Debt Cancellation

Source: The White House

Higher education should be a pathway to economic opportunity – not a lifetime of debt. That is why I have fought to make education more affordable and reduce the burden of student debt throughout my career.

When President Biden and I took office, only 7,000 people had ever been approved for Public Service Loan Forgiveness. Today, I am proud to say that a record one million teachers, nurses, first responders, social workers, and other public service workers have received student debt cancellation. As I travel our nation, I meet many of these public servants who say they now have more money in their pocket to put towards buying a home, renting an apartment, getting a car, starting a family, and saving up for the future.

Our Administration has forgiven over $170 billion in student debt for nearly five million people throughout the country — more than any Administration in history. And while Republican elected officials do everything in their power to block millions of their own constituents from receiving this much needed economic relief, I will continue our work to lower costs, make higher education more affordable, and relieve the burden of student debt. I am fully committed to doing what is necessary to build an economy that works for every American.

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MIL OSI USA News –

January 24, 2025

MIL-OSI USA News: A Proclamation on National Forest Products Week, 2024

Source: The White House

Our forests are central to our country’s heritage, history, and economy. Forests support livelihoods across Tribal Nations, rural towns, and big cities — from foresters and loggers to mill workers and carpenters — while also sustaining the health of our environment and our communities. During National Forest Products Week, we recognize that conserving our bountiful forests is critical to sustaining our economy and ensuring that Americans can enjoy the wonder of our forests for generations to come.

As a Nation, we rely on our forests for so much — from cleaning the air we breathe and the water we drink to providing the lumber and paper we use every day. But the existential threat of climate change endangers our forests, putting those jobs, livelihoods, and critical products at risk. After decades of fire suppression and ignoring climate change, wildfire seasons have become wildfire years, burning down communities, destroying forest ecosystems, and upending people’s lives.

My first year in office, I launched the “America the Beautiful” initiative to conserve at least 30 percent of all our Nation’s lands and waters by 2030 through local, voluntary efforts across the country while empowering foresters and farmers to advance sustainable practices to keep working lands productive. These efforts will help strengthen our economy and pass on a healthier planet to our children and grandchildren.

When I came into office, I was determined to conserve our forests while protecting the people who rely on them for jobs. My Bipartisan Infrastructure Law is creating jobs managing our forests, restoring ecosystems, and preventing catastrophic fires. It is investing in the removal of overgrown vegetation near homes and power lines, preparing evacuation routes in areas at risk of wildfires, removing invasive plant species from forests that can cause fire to spread, and planting native tree species that are more resilient to the changing climate. And my Inflation Reduction Act made the largest climate investment ever, putting people to work planting trees, sustainably managing our forests, and working on fire prevention. Together, these actions are producing new jobs that help us care for our forests and keep all of us safe from wildfires.

At the same time, my Administration is working to support the American workers and rural communities producing our forest products. We have awarded millions of dollars in grants to American businesses that support forest conservation, expand the sustainable use of American wood products, and find innovative ways to use our wood waste materials, including to build strong and sustainable buildings. I also take pride in having raised the Federal firefighter minimum wage to $15 per hour — an important first step in ensuring the people who run into flames to keep all of us safe are paid what they deserve.

Conserving our forests is good for our economy, the planet, and the soul of our Nation. This week, may we recommit to responsibly stewarding our forests and the abundant resources they provide so that we may all enjoy their benefits and beauty for years to come.

To recognize the importance of the many products generated by our Nation’s forests, the Congress, by Public Law 86–753 (36 U.S.C. 123), as amended, has designated the week beginning on the third Sunday in October of each year as “National Forest Products Week” and has authorized and requested the President to issue a proclamation in observance of this week.

NOW, THEREFORE, I, JOSEPH R. BIDEN JR., President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim October 20 through October 26, 2024, as National Forest Products Week. I call upon the people of the United States to join me in this observance and in recognizing all Americans who are responsible for the stewardship of our Nation’s beautiful forested landscapes.

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

JOSEPH R. BIDEN JR.

MIL OSI USA News –

January 24, 2025

MIL-OSI USA News: A Proclamation on National Character Counts Week, 2024

Source: The White House

In the Oval Office, I sit surrounded by portraits of exceptional American Presidents and busts of inspiring American leaders. They remind me each and every day that we are a Nation of dreamers and doers, of promise and possibilities, and of ordinary Americans doing extraordinary things. Above all, we are a Nation of good people, who show our kindness and character through small acts every single day. This National Character Counts Week, we celebrate the core values of decency, honesty, dignity, and equality that have long defined the character of America.

Our Nation is strong, and our future is bright — in large part because of the upstanding character that resides within all Americans. I have witnessed it up close in educators like the First Lady, who inspire our Nation’s youth to reach for every possibility; mothers, fathers, and parental figures who raise their children with care, courage, and grit; first responders, who run toward danger to protect others; union workers, who are building America; and brave service members, who stand on the frontlines of freedom to defend our democracy. Across the country, American workers are writing the greatest comeback story we have ever known — restoring pride in our hometowns, pride in America, and pride in knowing we can get big things done when we work together.

Since I came into office, my Administration has taken large strides toward building an America that lives up to those values. The American Rescue Plan helped keep child care programs open, families in their homes, and small businesses on their feet. We set a record for Federal contract spending on small businesses. Our historic investments across the clean energy economy are helping to combat climate change and create good-paying jobs. Through the American Rescue Plan and Bipartisan Safer Communities Act, we have made significant investments in reducing crime, preventing gun violence, and saving lives, and last year, we saw one of the lowest rates of violent crime in more than 50 years. We are also ensuring that America is a Nation where everyone is respected and where we give hate no safe harbor. That is why I signed the COVID-19 Hate Crimes Act, making it easier to report hate crimes, and hosted the United We Stand Summit to counter the corrosive effects of hate-fueled violence. My Administration continues to work to counter antisemitism, Islamophobia, and hate in all its forms and ensure that everyone is treated with dignity and respect.

Under my Unity Agenda, we are tackling the opioid epidemic and mental health crisis, holding Big Tech accountable, supporting our veterans and their families, and ending cancer as we know it. We are investing more than $1 billion to help schools across the country train and hire new mental health counselors through the Bipartisan Safer Communities Act, we have granted new disability benefits to over one million veterans and their families under the PACT Act, and we launched the Advanced Research Projects Agency for Health to fast-track progress on how we prevent, detect, and treat cancer and other diseases.

My father taught me that our character is not measured by how many times or how hard we get knocked down but by how quickly we get back up. Even in the face of challenges ahead and obstacles in our way, Americans always get back up. It is what drives our great country forward and what makes our Nation strong. This week and every week, let us recommit to upholding our most essential values and remember that the sacred task of perfecting our Union is not just about any one of us but about “We the People.”

NOW, THEREFORE, I, JOSEPH R. BIDEN JR., President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim October 20 through October 26, 2024, as National Character Counts Week. Now and throughout the year, I encourage all Americans to engage in efforts that honor and express the best attributes of our character, extend a hand of fellowship to their neighbors, and unite in service to their communities.

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

JOSEPH R. BIDEN JR.

MIL OSI USA News –

January 24, 2025

Category: Economy

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