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  • MIL-OSI Economics: Fannie Mae Executes Final Credit Insurance Risk Transfer Transaction of 2024 on $7.9 Billion of Single-Family Loans

    Source: Fannie Mae

    WASHINGTON, DC – Fannie Mae (FNMA/OTC) announced today that it has executed its seventh Credit Insurance Risk Transfer (CIRT ) transaction of the year. CIRT 2024-L4 transferred $338.6 million of mortgage credit risk to private insurers and reinsurers.

    “We appreciate the support of the 26 insurers and reinsurers that committed to write coverage on this deal, including the strong reception to the new structural enhancements that we introduced in the updated CIRT insurance policy,” said Rob Schaefer, Fannie Mae Vice President, Capital Markets. Under the updated terms to the CIRT insurance policy, coverage will be released more quickly over the life of the transaction if the covered pool of loans continues to perform well. Additionally, the insurance premium obligation will be based on the amount of remaining coverage instead of the outstanding balance of the covered loan pool.

    The covered loan pool for CIRT 2024-L4 consists of approximately 23,500 single-family mortgage loans with an outstanding unpaid principal balance (UPB) of approximately $7.9 billion. Additionally, the covered pool collateral has loan-to-value (LTV) ratios of 60.01 percent to 80.00 percent and was acquired between September 2023 and December 2023. The loans included in this transaction are fixed-rate, generally 30-year term, fully amortizing mortgages and were underwritten using rigorous credit standards and enhanced risk controls.

    With CIRT 2024-L4, which became effective September 1, 2024, Fannie Mae will retain risk for the first 170 basis points of loss on the $7.9 billion covered loan pool. If the $133.9 million retention layer is exhausted, 26 insurers and reinsurers will cover the next 430 basis points of loss on the pool, up to a maximum coverage of $338.6 million.

    Coverage for this deal is provided based upon actual losses for a term of 18 years. Depending on the paydown of the insured pool and the principal amounts of insured loans that become seriously delinquent, the coverage amount may be reduced at the first month after the effective date of the policy and each month thereafter. The coverage on this deal may be canceled by Fannie Mae at any time on or after the five-year anniversary of the effective date by paying a cancellation fee.

    Since inception to date, Fannie Mae has acquired approximately $28.1 billion of insurance coverage on $935 billion of single-family loans through the CIRT program, measured at the time of issuance for both post-acquisition (bulk) and front-end transactions. As of June 30, 2024, approximately $1.35 trillion in outstanding UPB of loans in our single-family conventional guaranty book of business were included in a reference pool for a credit risk transfer transaction.

    To promote transparency and to help insurers and reinsurers evaluate the CIRT program, Fannie Mae provides ongoing, robust disclosure data, as well as access to news, resources, and analytics through its credit risk transfer webpages. This includes Fannie Mae’s innovative Data Dynamics® tool that enables market participants to interact with and analyze both CIRT deals that are currently outstanding in the market and Fannie Mae’s historical loan dataset. For more information on specific CIRT transactions, including pricing, please visit our Credit Insurance Risk Transfer webpage.

    MIL OSI Economics –

  • MIL-OSI USA: Public invited to send ornaments for North Dakota State Christmas Tree

    Source: US State of North Dakota

    The Office of the First Lady invites artists and craftspeople to provide handmade ornaments for the North Dakota State Christmas Tree. The tree will be on display in Memorial Hall at the state Capitol starting with a tree lighting ceremony on Dec. 5. 

    Submitted ornaments can vary from traditional to contemporary arts. Items that are commercially produced or made from kits are not eligible. This year’s theme, “Branches of Hope,” is inspired by First Lady Kathryn Burgum’s initiative to end the stigma surrounding the disease of addiction. Just as a tree’s branches extend outward, the theme symbolizes how hope reaches everyone impacted by addiction. Ornaments may reflect personal recovery journeys, support systems or community resources, showcasing how hope branches out in many meaningful ways. Designers are also free to create ornaments in any shape or medium of their choosing.

    Each ornament should include the name of the person entering it, their email address and a brief one- or two-line description of the ornament, including the art form used and the special circumstances through which it was created, such as a class or senior center project.

     

    Ornaments must be received in the Office of Management and Budget office no later than Dec. 4. The ornaments become the property of the Office of the First Lady and may be hung on the state tree in ensuing years. Mail ornaments to State of North Dakota, Office of Management and Budget, Julie Strom, 600 E. Boulevard Ave., Bismarck, N.D. 58505.

     

    Gov. Doug Burgum and the first lady encourage the public to join them for holiday readings, music and carols at the annual North Dakota State Christmas Tree Lighting ceremony at 5:30 p.m. Dec. 5 in Memorial Hall at the Capitol.

     

    MIL OSI USA News –

  • MIL-OSI: Athene Announces Fixed Income Investor Conference Call

    Source: GlobeNewswire (MIL-OSI)

    WEST DES MOINES, Iowa, Oct. 24, 2024 (GLOBE NEWSWIRE) — Athene Holding Ltd. (“Athene”), a leading retirement services company and subsidiary of Apollo Global Management, Inc. (NYSE:APO), announced it will host a Fixed Income Investor conference call on Thursday, November 14, 2024 at 10:00AM ET.

    The call will feature members of Athene’s senior management team, who will provide an update on current business trends, new business origination, the investment portfolio, and capital.

    An accompanying presentation, live webcast, and webcast replay will be available on the Investor Relations section of Athene’s website at ir.athene.com.

    Conference Call Details:
    Dial-in: Toll-free at 877-404-1236 (domestic) or + 1 215-268-9888 (international)

    About Athene
    Athene is a leading retirement services company with $330 billion of total assets as of June 30, 2024, and operations in the United States, Bermuda, Canada, and Japan. Athene is focused on providing financial security to individuals by offering an attractive suite of retirement income and savings products and also serves as a solutions provider to corporations. For more information, please visit www.athene.com.

    Contact:

    Jeanne Hess
    Vice President, External Relations
    +1 646 768 7319
    jeanne.hess@athene.com

    The MIL Network –

  • MIL-OSI Economics: Transcript of Press Briefing: Asia and Pacific Department Regional Economic Outlook October 24

    Source: International Monetary Fund

    October 24, 2024

    Speakers:

    KRISHNA SRINIVASAN, Director of the Asia and Pacific Department, International Monetary Fund

    THOMAS HELBLING, Deputy Director, Asia and Pacific Department, International Monetary Fund

    Moderator:

    RANDA ELNAGAR, Senior Communications Officer, International Monetary Fund

    *  *  *  *  *

    MS. ELNAGAR:  Good morning and welcome to our attendees here in the room and those joining us online and virtually.  This is the Press Briefing on the Regional Economic Outlook  for the Asia Pacific Department.  I am Randa Elnagar of the IMF’s Communications Department.  Joining me today is Krishna Srinivasan, Director of the Asia Pacific Department, and Thomas Helbling, Deputy Director of the Asia Pacific Department.  To kickstart our briefing, Krishna is going to give some opening remarks and then we’re going to take your questions.  Thank you. 

    MS. SRINIVASAN: Thank you, Randa.  Good morning to everyone here in Washington, D.C.  Good evening to everyone in Asia.  Welcome to our Press Briefing for Asia and the Pacific.  Allow me to make a few opening remarks. 

              Let me start with growth.  In the first half of this year, Asia’s economies grew stronger than we had expected.  As a result, we have upgraded our regional forecast to 4.6 percent in 2024 and to 4.4 percent in 2025.  With this, Asia remains the world’s engine of growth.  It generates 60 percent of global growth, far more than its share in global GDP of about 40 percent. 

              Going forward, we expect domestic demand to strengthen in advanced Asia as the impact of past monetary tightening fades.  Growth in India and China would remain resilient, even though in both economies it would slow slightly in 2025.  For emerging markets outside China and India, we expect robust and broad based growth. 

            Inflation.  Asia has also brought inflation down to low and stable rates faster than other regions.  In Emerging Asia, the disinflation process is essentially complete.  There are a few exceptions in advanced Asia, notably Australia and New Zealand, where wage pressures have kept services inflation elevated.  But we expect these pressures to fade as well within the next 12 months or so. 

              This means that most Asian central banks now have room to cut interest rates earlier in the year.  Some central banks may have been reluctant to ease before the Federal Reserve, fearing that this could put their currencies under pressure.  But as the Fed has now started its own easing cycle, such concerns should have dissipated.

              Let me add a little bit more detail on the China outlook.  As you can see on the left hand side, activity has decelerated since the first quarter.  As a result, we have marked down growth to 4.8 percent in 2024 compared to 5 percent in our July WEO update.  In particular, the property sector has continued to deteriorate and weigh on investment, while private consumption has also weakened amid low consumer confidence.  This forecast incorporates the monetary and financial sector policies that were announced in September. 

              Weak Chinese demand is triggering into continued disinflationary pressures as shown on the right-hand side core inflation fell to 0.1 percent year-on-year in September.  Several developments have taken place since we finalized our China forecast.  Q3 data came out marginally weaker than we expected.  At the same time, the authorities announced additional fiscal and housing measures which could provide some upside potential to our growth projection, especially in 2025 when the policy measures are likely to take effect. 

              The external environment remains tough.  Going back to the broader region, the environment in which Asian policymakers act has become tougher.  Risks to the outlook are now tilted to the downside.  For example, there are tentative signs that global demand could weaken, including from the United States, which would be bad news for an export dependent region like Asia.  China’s domestic demand weakness also continues to weigh on the wider region. 

              Moreover, countries across the globe continue to implement trade restrictions at a rapid pace.  We see already how trade flows are adjusting:  China, for example, exports relatively more to emerging markets and less to advanced economies than five years ago.  The ASEAN economies export more to China and the U.S. as trade targeted by U.S. and Chinese startups get channeled through third countries.  In economic terms, this is a costly detour.  As we stressed before, no one really wins from trade fragmentation.  We all pay for this with slower global growth.  And Asia has more to lose than others given its tight integration into global supply chains. 

              Now, how should Asian policymakers navigate this environment?  I talked already about monetary policy where welcome policy space has emerged.  Unfortunately, the same is not true for fiscal policy.  Public debt increased sharply during the Pandemic in Pacific Island countries.  Debt ratios almost doubled, but debt has hardly come down since then.  This drives up debt service costs and leaves governments with little spending power to address unforeseen events. 

              In some economies, weak private demand may justify somewhat larger fiscal deficits in the near-term.  Again, the emphasis is on the near-term.  But for most Asian countries, it’s time to start budget reconsolidation in earnest, both to build buffers against downside risks and to preserve spending power for addressing longer term challenges such as climate change and population aging. 

              Let me spend a few words on another long-term issue, structural transformation and the future of Asian growth.  Asia’s traditional development model has been based on moving workers from agriculture into manufacturing and on selling the manufactured goods in the global market.  The success has been spectacular.  It unleashed the maybe greatest development success in story of human history.  In recent decades, Asian economies have shifted more into services rather than manufacturing, however.  This has been good for growth as modern services are often more productive than manufacturing.  This trend is likely to continue as many Asian economies have reached income levels where the demand for manufactured goods typically declines and the demand for services tends to increase. 

              Moreover, digital technology is making some services, such as business and finance, tradable in global markets.  A global market for services holds large growth opportunities, but harvesting them will require reforms.  In particular, education and training will be important.  It will need to equip workers with the skills to provide modern services.  And Asia should open up its services sectors to trade and investment.  They remain relatively closed now, different from manufacturing. 

              Finally, let me note, we will publish the Regional Economic Outlook  November 1 in Tokyo, together with an analytical piece about the future of Asia’s growth model. 

              With this, Thomas and I will be happy to take your questions.  Thank you. 

    MS. ELNAGAR: Thank you, Krishna.  Please raise your hand and identify yourself and your news organization. 

    QUESTIONER:  Thank you, Randa, for taking my question.  I’m Maoling Xiong with Xinhua News Agency.  So, Krishna, I talked about fragmentation in your opening remarks.  I wonder whether you could elaborate a little bit on the economic impact of economic fragmentation on Asia, especially it’s so integrated into the global system.  Thank you. 

    MS. SRINIVASAN: Thank you for the question, Maoling.  As you know, there is evidence that global supply chains have been rewiring in recent years.  Now this goes for the time before the Pandemic and into the context of U.S. China trade tensions.  Now we have done some work in our Regional Economic Outlook which is forthcoming, which looks at the impact of the trade tension between U.S and China on Asian economies. 

              What we find is that many Asian economies, notably those in the ASEAN, have increased their market shares of both Chinese and U.S. imports in both gross and value added terms, in what we call as connected countries.  Now we also find that these third-party Asian countries, exports of targeted goods, of the goods which are targeted for tariffs by U.S. and China, they’ve also increased.  And what we find particularly the case is for some countries like Thailand, Korea and Singapore, these effects are particularly strong.  In other words, the sectors which are targeted by tariffs have seen ASEAN countries exporting more. 

              Now again, I was talking about the targeted sectors.  If you look at the aggregate growth, aggregate export growth, the question is whether these increase in targeted exports show up in the aggregate exports.  And there the picture is mixed.  Some countries have done better.  For instance, Vietnam has done better both in terms of targeted exports and aggregate exports. 

              But the point I’d like to leave with you here is in the short run we see these trade patterns changing.  The question, of course, is whether this is temporary, whether it’s permanent.  It’s only time will tell.  But our analysis, you know, has shown that in the long run everyone hurts from trade fragmentation, from fragmentation and that’s because global demand comes down.  When global demand comes on, everyone hurts.  So this is the message I would like to leave with that there have been shifting trade patterns because of fragmentation.  But the point here is over the long run, everybody will lose.  And so we all have to collectively fight against these forces of fragmentation. 

    MS. ELNAGAR: Thank you, Krishna.  Lady in the pink jacket.

    QUESTIONER:  Hi, my name is Ray Zho, financial journalist at 21st Century Rui Zhou,China.  So I have two questions.  First is about Asia Pacific.  The IMF report has indicated a somewhat positive growth outlook for Asia Pacific region, especially in emerging markets compared to other regions.  So can you elaborate on the key factors contributing to this relative strength?  And the second question is about China.  So China’s recent economic stimulus measures could create potential opportunities for stronger growth in the future.  So can you elaborate on these measures and the potential long-term benefits for China’s economic structure?  Thank you. 

    MS. ELNAGAR: Thank you.  Do we have any other questions on China?  Okay, the lady here. 

    QUESTIONER:  Thank you.  My name is Xu Tao from China Central Television, and I have two questions.  The first is how do you evaluate China’s role in the development of the world economy?  And the second is about the trade tension between the U.S. and China.  As you mentioned, the trade and the trade tension between U.S. and China will affect the Asian growth.  So if more traverse, if more tariffs are imposed on the Chinas by an incoming U.S.  administration, how will that affect Asian growth?  Thank you. 

    MS. ELNAGAR: One more on China.  The gentleman. 

    QUESTIONER:  Hi, good morning.  My question is for Krishna.  Thank you so much.  You said in your presentation that the growth in India and China will slow down in 2025.  Can you please elaborate reasons as to why the growth will slow down.  And also about the South Asian countries, the growth in like Nepal, Bangladesh, if you could elaborate as that as well.  Thank you. 

    MS. SRINIVASAN: Okay, thank you for those questions on China.  So let me – let me start by saying that we have revised on our growth forecast for China for 2024 to 4.8 percent, and that is coming down from 5 percent we had in the Article IV Consultations and during the July WEO update.  

              The question is why have we revised down?  Now if you look at growth in China, domestic demand has been very weak since the first quarter.  So numbers coming out from China since Q1 have been pretty weak.  Now that is offset somewhat by the measures announced in September, the monetary and financial measures.  Again, we have to break up these measures into two sets.  One is the monetary and financial sector policies, which were announced in September, and the fiscal policy measures, which were announced in October.  So the first set of measures were already internalized in our baseline forecast.  And that — so you had Q1, activity since Q1 being very weak, offset by some support measures.  So we mark it down to 4.8 percent.  Now support since then could provide some upside potential. 

              The question you asked also is:  how do we see the impact of these measures now?  Most of these measures, which were announced in September on the monetary and financial sector side, were consistent with what we had elaborated on in our Article IV reports in July.  So we welcome those measures.  And on the fiscal measures, we’re still awaiting further details, including how big it is, how – how will it retarget?  We know the broad areas of targeting.  They’re trying to reduce the debt for local governments and trying to alleviate the problems in the property sector.  But we still don’t know all the details.  

              Now, going beyond this, what are we saying is that to address the – the issue of weak domestic demand and to put the economy back on a more sustainable trajectory, there needs to be — more needs to be done to help rehabilitate the property sector.  And we provided these numbers estimates.  We think central government support both to, you know, finish these pre-sold housing is important.  It’s important to resolve the unviable developers.  So all that will take some fiscal costs.  And we are very clear that in the near-term China could use some of the fiscal resources to address the problem in the property sector.  But beyond the near-term, over the medium term, given rising debt levels, China will need to embark on consolidation.  

              We also talk about refocusing expenditures to boost social safety nets and do pension reform, which will allow China to save more going forward.  So right now China saves a lot.  So if you have these measures addressing Social Security and pensions, that will allow Chinese to save less, and that will also provide a boost to domestic demand, rebalance the economy, and also lead to lower imbalances going forward.  

              Now there are other questions on why Asia is doing better.  Emerging markets in Asia doing well.  See, in Asia you had a huge labor force, which is more — which is cheaper than other parts of the world.  Productivity has been high in many parts of Asia, and this is a region which is really integrated well into global supply chains and the global economy, and so on.  So that lends inherent dynamism to the region, and that we expect to continue going forward.  However, you do see some problems going forward in terms of populations aging in some parts of the world, some parts of Asia, notably in China, Korea.  It’s already happening in Japan and so on.  So you have population aging, you have AI coming into play, you have climate change.  All these are factors which could affect, you know, prospects going forward.  But that’s where you need reforms which address these challenges going forward.  

              Now, there were some questions on –

    MS. ELNAGAR: We can stick to China now and then go to other questions.

    MS. SRINIVASAN: We’ll come back to other questions.  So those are the questions.  Response on China. 

    MS. ELNAGAR: Okay, next.  Okay, we go to this side.  Gentleman.

    QUESTIONER:  thank you very much.  Thank you very much, Randa.  Shu Tataoka from JiJi Press.  I have a question on Japanese economy.  In the latest WEO, you have revised up the BOJ neutral rate to 1.5 percent.  And what is the implication of such drastically revised up, especially given Japanese high debt level?  And another question is on Japanese yen.  Japanese yen has depreciated recently again.  And what is your view on that – that development?  Can you describe it as excessive movement which we should pay attention?  Thank you. 

    MS. ELNAGAR: Any other questions on Japan? 

    MS. SRINIVASAN: Okay.  Thank you for the question.  Let me, you have — you have a number of questions.  One question — so let me answer one by one.  We welcomed the Bank of Japan’s decision to increase the policy rate in July, which will help anchor inflation and inflation expectations at around the 2 percent target.  Now, given balanced risks of inflation, further hikes in policy rates should proceed at a gradual pace.  Now, nominal neutral rate estimates for Japan range from 1 to 2 percent based on different methodologies and we now expect the policy rate to reach 1.5 percent in 2027. 

              Now, in terms of what does – what do rising interest rates in Japan mean for the rest of the world?  Now, from a very global perspective, an increase in interest rates in Japan could have output spillovers to other sovereign debt markets where Japanese investors hold large positions.  But that said, so far we’ve seen these growth spillovers to be pretty muted because the BOJ decisions have been well communicated and they’ve been very gradual.  So it’s been — markets have been given the time to both internalize these changes and what comes next.  So in that sense, the spillovers have been limited. 

              Now you ask the question what does also mean for the rest of the world?  I think rising interest rates gives support.  Gives, I mean, it’s in line with, you know, improving prospects in Japan.  Though when Japan’s economy grows, it’s good for both the region and – and for the global economy. 

              Now, in terms of the exchange rate.  The Japanese authorities are fully committed to a flexible exchange rate regime.  So we’ve seen exchange rate depreciation and appreciation over the past one year.  So it’s been pretty flexible.  Now that said, the yen has been used as a funding currency for carry trade.  And that means that over the past year or so, sometimes the changes in the yen can be magnified because of the unwinding of carry trade.  And we saw that on August 5th, not just because of what happened in terms of the BOJ increasing rates, but also because in response to how the labor market of this came out, the reaction was magnified because of the unwinding of carry trade.  So that’s been an issue.  But other than that, what we feel are the authorities are fully committed to the flexible exchange rate regime.  Thank you. 

    MS. ELNAGAR: Thank you, Krishna.  Can we move to the India question?  And then I have another India question that came in online from Informist Media, Siddharth Upasani.  The IMF sees India growth declining to 6.5 percent in FY26.  This is lower than Reserve Bank of India forecast 7 percent.  The RBI, in fact, is far more bullish about India’s growth in general, with Deputy Governor Michael Patra saying in New York on Monday that there is a strong possibility of India’s GDP growth returning to an 8 percent trend after FY26.  Does the IMF share this view?  If not, do you think Indian authorities are being overly optimistic?

              Any other questions on India or you ready to discuss?  

    MS. SRINIVASAN: Yeah, thank you for those two questions.  I’ll have my colleague Thomas answer the question. 

    MR. HELBLING: On India.  So on India and on growth, I think it’s important with the general point, we see India as the strongest growing major emerging market economy this year, but also in the coming years.  Point number one.  Point number two, this year we have revised up growth for the current fiscal year in year 7 percent, reflecting stronger — the expectation of stronger private consumption after a favorable monsoon season that will strengthen in particular rural demand. 

    In terms of the growth trajectory, India had 8 percent last year.  This year we project 7 and then to 6.5 percent.  For us, it’s a return back to potential after the Pandemic, after government’s recent infrastructure push and after the rebound after some financial stresses.  India has benefited from strong cyclical growth, and we now expect a return back to potential over the next two years, six and a half percent.  I would note that potential growth for India had been revised upward last year, and there is scope for even higher potential with adequate more structural reforms.  Our India team has noted in particular labor market reforms, some fiscal reforms, and maybe an increased infrastructure push, and also if there were reforms to education and skilling the labor force.  So there is scope for even higher growth.  But at the moment we see policies consistent or our current policies, we see six and a half percent potential growth which is high. 

    MS. SRINIVASAN: If I could just add, you know, we have in the REO chapter we have an analytical note on structural transformation where countries will move towards more services led growth.  I think in that context there’s a lot of potential for India to benefit from that kind of growth.  However, to benefit from that kind of growth, significant amount of investment has to take place in education and scaling of labor which as Thomas mentioned.  So we want to look at that note when it comes out next week. 

    MS. ELNAGAR: Thank you.  I think he also asked about Nepal so we can move because we have I think a Webex question on Nepal.  So Sharad, if you can please put on your screen camera and turn on the audio.  Sharad? 

    QUESTIONER:  Good afternoon.  Sorry, good evening.  Am I audible? 

    MS. ELNAGAR: We can hear you.  Yes. 

    QUESTIONER:  Okay, I will ask two questions.  One, IMF, has sent Nepal’s county rep between ECF agreement, why did the Fund send country representatives in between the agreements?  And second, some individuals argue that Nepal have not carried out required fiscal and monetary reform as promised under ECF.  How do you access Nepal’s progress regarding ECF commitments?  Thank you. 

    MS. ELNAGAR: Thank you. 

    MR. HELBLING: On Nepal, we have regular changes in our staff, as you know, we have staff mobility, regular changes in assignments.  So we have a transition in resident representatives as we also have in other countries.  Point number two on the ECF.  Nepal has an ECF.  The arrangement started in 2022.  So far we have completed four reviews under the program.  Discussions for the fifth review are underway.  There was a change in government in August, so the discussions are continuing with the new government.  And as to my knowledge, performance on the quantitative performance criteria is strong.  There is some discussion ongoing about whether some requirements on the structural benchmarks have been met and or whether there need be a recalibration of some of the structural benchmarks.  These are ongoing discussions, and the Nepal team will soon go back into the field. 

    MS. ELNAGAR: Thank you, Thomas.  Questions from the room.  The lady in the third row. 

    QUESTIONER:  Hello, my name is Sanghoon Lee.  I’m from the Korea Economic Daily newspaper.  I got a question for Krishna Srinivasan.  Since after  the United States presidential election, it is likely the economics conflict between the United States and China will escalate even further.  So I believe this kind of a situation is highly likely to constrain the economic growth of countries like South Korea.  So my question is, I’m curious to what extent this scenario is reflected to your outlook.  And also, I would like to hear how much impact do you expect it to have on Korea’s economic growth afterwards.  Thank you. 

    MS. SRINIVASAN: Thank you.  You asked me that question, but Thomas could answer. 

    QUESTIONER:  Yeah.  And I will add one more question that came online from Korea from Ahn Taeho, Hankyoreh.  She said, could you provide a brief evaluation of the current state and outlook of South Korean economy.  Specifically, while exports seem to be recovering, domestic demand remains sluggish.  What does the IMF see the main reasons behind the weak domestic consumption and what is the forecast for its recovery? 

    MR. HELBLING: So, for Korea, our forecast for this year is 2.5 percent and then growth will slow towards potential to 2 percent next year.  As you mentioned, growth in first half of this year was stronger than expected.  Very strong growth.  In particular on the external side, domestic demand was weaker than in the external sector or the export sector.  This weakness in domestic demand reflected in particular the loss or the erosion of purchasing power.  With the rise, the surge inflation globally and then the monetary policy tightening which affected domestic demand in particular through the relatively high private debt burden, increasing debt service payments.  This situation is about to change.  As the Bank of Korea has started the monetary policy easing cycle, inflation has declined.  So, with the similar nominal compensation and income increases, real purchasing power will increase, and we expect domestic demand to strengthen. 

    Indeed, in the Q3 release that was just released last night, Washington time, domestic demand in Korea has strengthened in Q3 as expected.  As for trade tensions, these are not — our baseline does not incorporate a further increase in trade tensions.  As noted in the release of the World Economic Outlook and as also noted or will be noted down in our Regional Economic Outlook, an increase in trade tensions is a major downside risk.  Korea is very strongly integrated in global supply chains into global markets and exposed, strongly exposed both to China and the United States. 

            So as previous regional economics outlooks have highlighted, Korea will be relatively more affected negatively if there were a further increase in the trade tensions between the United States and China.  I cannot say much more because if there were an increase in trade tensions, much would depend on details on measures, the extent of the increase in tensions so far.  And so there’s no point in going further at this point.  Thank you. 

    MS. ELNAGAR: Thank you.  We can take question from the gentleman. 

    QUESTIONER:  Hi.  Thank you for the opportunity, I’m with Idika from Economy Next from Sri Lanka.  I have two questions.  Now that the debt restructuring process is largely completed, what are the key fiscal or structural benchmark does Sri Lanka need to meet in order to unlock the fourth transfer of funding?  And how does the recent change in government impact the timeline or the likelihood of achieving these targets? 

              The second question is that there are talks that the new government is sort of contemplating dropping the imputed rental tax that is supposed to come next year.  Has this been discussed with the IMF so far?  Also, what’s IMF position on Sri Lanka continuing with the vehicle suspension? 

    MS. ELNAGAR: Any other question on Sri Lanka? 

    QUESTIONER:  Hi, thank you for taking my question.  My name is Magnus Sherman, I’m with Reorg.  I wanted to touch on the Sri Lanka’s debt restructuring.  We heard the Managing Director just an hour ago say that it’s important to help countries back on their feet as quickly as possible.  The Macro link bonds Sri Lanka has this mechanism where the better they perform, the more debt they effectively have to pay back.  So you could argue that does the exact opposite.  What’s the IMF’s position on this?  Is that something you would recommend future restructurings to include as well?  I know it’s very popular among creditors, but it could backfire. 

    MS. ELNAGAR: Thank you.  I think we have a Webex question on Sri Lanka too.  Zuflik, if you can please put on your camera.  Here we go.  We cannot hear you. 

    QUESTIONER:  This is from News First Sri Lanka.  My question is to Mr. Srinivasan.  Sri Lanka is currently on a IMF supported program for 48 months.  Is IMF having any long-term support program for Sri Lanka given that the debt restructuring is also in its final stages?  And just 48 hours ago at the G24 press briefing, we had the director of G24 saying that countries like Sri Lanka, the middle-income countries, should also have something similar to a common framework and there should be timely debt reduction measures also in place.  What is the IMF’s position on these two aspects?  Thank you. 

    MS. ELNAGAR: Any other questions on Sri Lanka?  We have a few similar questions that came through the media center.  So we’re going to answer them if we can please.  Krishna and Thomas.  Thank you.  So there is a question from Ceylon Newspaper.  How is the progress of Sri Lanka’s program and when is the third review expected?  So it’s similar to what was asked.  What are the expected dates of releasing the next change?  How can Sri Lanka address post debt restructuring challenges, particularly within loan interest payments starting next year? 

              There is also the Daily Mirror.  He’s asking has the change in the presidency and the likelihood of change of government at the upcoming parliament polls has an impact on the agreement already reached between Sri Lanka and the IMF.  Has there been any move by the new Sri Lankan administration to renegotiate the agreement reached between Sri Lanka and the IMF?  There is also similar questions from Hero News and from — that’s it. 

    MS. SRINIVASAN: Thank you.  Quite a few questions.  Let me try to answer all of them. So when the new government took office not too long ago, I led a high level team to Colombo to discuss the to engage with the authorities.  And we had some very, very productive discussions with the new government and the team there.  And the discussions are continuing this week during the Annual Meetings.  Now, there was broad consensus, I would say unanimous consensus, that Sri Lanka, which was tearing at the abyss in 2022, has come a long way in terms of undertaking reforms which have led to some hard won gains, as you can know.  You’ll note that growth has been positive the last four quarters.  Inflation is coming down.  So there is consensus that the new government, you know from the new government that it would like to safeguard and build on the hard won gains under the program. 

              Now, under the program we have elements which address some of the priorities of the new government, including in terms of social protection and so on.  But the details on the program are continuing and they’ll be happening this week in Washington.  And we are encouraged by what we have heard so far and hoping that, you know, we can move fast towards the third review which will come up soon.  Now, in terms of there was a question on the debt restructuring.  They have reached agreements with the official creditors, and they’ve reached an agreement in principle with the private creditors.  The next step would be to reach a formal agreement with all creditors.  And that’s a big step forward.  And of course that’s not the end.  There’s a lot more work to be done in terms of continuing with the reforms because a long way to go before you’re on the path of strong and sustainable recovery. 

              In terms of the macro linked bonds, this is something which is a negotiation between the country’s creditors, the country’s advisors and the creditors.  We don’t get involved in the kind of instruments that they negotiate on and so on and so forth.  What we are concerned about is whether these instruments and the restructuring they reach are one consistent with our program targets on debt and so on, and that there’s comparability of treatment across creditors.  So that’s something which the country works on.  Now you’re right that these macro linked bonds have become popular.  And so, you know, it all depends, country to country, how the creditors and advisors go about it.  So it’s not for me to say that this is going to be the future of all debt restructuring.  It varies from country to country.  We’ve seen plain vanilla bonds being exchanged and you have these kind of bonds in other countries. 

              Now there was one question on specific tax measures there.  I mean that I don’t want to go to the detail because those are things being worked out in the context of discussions which are ongoing right now.  Hopefully, you know, we’ll move along these negotiations over the next few weeks in a more targeted way.  Thank you. 

    MS. ELNAGAR: Thank you.  I know that there is someone online, but let’s have the lady here. 

    QUESTIONER:  Given that you — I’m Natha Goonawarra from the Standard Thailand.  Given that you mentioned a lot about trade fragmentation and trade tension, especially between the US and China, and I’m from Thailand and Southeast Asia.  So what is your recommendation or your insight on how Southeast Asia and Thailand navigate this global economic challenge this year and what are the most influential factor in the coming years? 

    MS. SRINIVASAN: Thank you.  I’ll have Thomas answer that question. 

    MR. HELBLING: So, the ASEAN countries like Thailand are very strongly integrated into the global economy.  Rising trade integration has been an important engine for growth in the region.  So what we have seen so far, as Krishna mentioned earlier, there’s two developments.  One is the global picture of increasing trade tensions and increasing trade fragmentation.  In a sense, it’s a strong negative for the global economy as a whole.  Global growth will be relatively lower compared to a situation with no or fewer tensions.  Real incomes and productivity will be lower.  On the ASEAN side, a number of countries, including Thailand, have had some trade diversion benefits.  It’s also true for Vietnam for example, or Malaysia.  So that is some benefits.  But our view has been that on net it’s still a negative also for the countries in the ASEAN. 

              So therefore we think the countries in the ASEAN should make a strong push for a continued, strong multilateral trading system for further trade integration.  We also see scope for further regional trade integration.  Obstacles to trade are still relatively higher in services.  There’s scope there to move forward.  Third, on other policies, we see scope for horizontal structural reforms to prepare the economies for a changing trade landscape, for a trendless landscape where services will be relatively more important.  Krishna also mentioned already the importance of education and upskilling the labor force to prepare them for changes.  And then thirdly, maintaining macroeconomic stability.  In particular also having a flexible exchange rate regime that serves as a buffer to external shocks will be important. 

    MS. ELNAGAR: Thank you.  Thank you, Thomas.  We’re going to go online again because we have the gentleman.  Saiful, can you please put on your camera?  I have his question, but I think he cannot connect.  He’s asking about Bangladesh.  The IMF has lowered down GDP growth projection for Bangladesh to 4.5 percent for FY25 from April projections of 6.6 percent.  What are the reasons behind the downgrading?  Does the IMF have any plan to grant additional 3 billion budget support as sought by the interim government of Bangladesh?  Any other questions on Bangladesh? 

    MS. SRINIVASAN: Thank you.  Again.  The reason for our revising down our growth forecast is in response to what we saw in the events in the recent past.  So things have slowed down compared to what we saw previously in the April forecast.  And so those developments give us a pause in terms of what’s happened to growth.  There was a mission led by our mission chief, Chris Papadakis to Bangladesh, which looked at all aspects of what’s happening to the economy.  Based on that, we revised on a growth forecast.  In the case of Bangladesh, growth has slowed, inflation remains high, and they were making good progress.  Bangladesh was making good progress under the program.  So discussions are ongoing in terms of the next review.  We had discussions in Bangladesh, in Dhaka, and discussions are continuing in Washington on how to move forward in terms of financing.  All those will be part of the discussion which will take place this week and next.  Thank you. 

    MS. ELNAGAR: Thank you.  We have another online question from CNN Indonesia.  What is Indonesia’s projected economic growth for the coming year and what are the key global risks that Indonesia should anticipate in 2025 to maintain its resilience amid shifting global economic dynamics?  The second question is how are sustainability challenges and climate risks expected to shape the Asia Pacific regions economic performance in 2025?  And what role will climate finance play in helping governments and businesses mitigate these risks while driving sustainable and long term growth? 

    MR. HELBLING: On Indonesia.  Indonesia has enjoyed and is projected to continue enjoy strong robust growth around 5 percent.  In terms of specific numbers, just for this year we have 5 percent and for next year we have 5.1 percent.  In terms of risks, the external risk ask.  I think they’re very similar for Indonesia as they are for other countries in the Asia Pacific region.  An important concern is trade fragmentation or increasing trade fragmentation.  What’s perhaps a bit different for Indonesia is this will play out relatively more through commodity market channels than just through manufacturing channels as elsewhere.  But trade fragmentation is a big risk.  And as for other emerging market regions in the Asia Pacific or elsewhere, possible shifts in monetary policy expectations, increased financial market volatility also pose some downside risks. 

    MS. ELNAGAR: Thank you.  We have one last question online on the Pacific Islands Pacific region.  It’s by Ben Westcott from Bloomberg.  Given the increasing economic pressures and climate challenges facing Pacific Islands, Pacific Island nations, how does the IMF assess the current trajectory of debt burdens in the region?  Are these debts shrinking or growing?  And what factors are contributing to this trend? 

    MS. SRINIVASAN: Thank you, Randa.  Now, with the deterioration of fiscal balances during the pandemic, public debt did increase on average in the Pacific island countries.  In most countries, however, it has now stabilized or is falling relative to the size of the economies.  Now, that said, seven out of 12 countries in the Pacific islands are considered to be at high risk of debt distress and only about 5 are considered to be at moderate risk of debt distress.  So this goes to the issue of the fact that there needs to be growth friendly fiscal consolidation to bring down debt in these countries.  Of course, these countries also face a challenge of the risks associated with climate change and so there is pressure on them to borrow to address these challenges.  But again, we would emphasize that given where they are with their debt levels and so on, it’s prudent, it’s very important for them to access concessional financing or even grants to make sure that when they address these longer term challenges that they do that in a prudent way so that debt doesn’t become too much, doesn’t become more onerous than it is right now. 

              Now, on the issue of debt, this is not just limited to Pacific Island countries.  What we have seen is since the global financial crisis, public debt has been rising across most countries in Asia.  And so the issue of growth friendly consolidation is very important.  And like I said in my opening remarks, consolidation, fiscal consolidation needs to begin in earnest in many of these countries.  For some countries there could be, there may be a need to provide some support in the near term.  But beyond that, all countries in Asia need to embark on fiscal consolidation, which is growth friendly. 

    MS. ELNAGAR: Thank you very much.  Thank you Krishna and Thomas for giving us the time and answering all the questions.  And we come now to the end of our press briefing.  I just want to remind everyone that you can find all the briefing material and the transcript on IMF.org.  I would also like to remind you that the full release of the Regional Economic Outlook of the Asia Pacific Department is going to be released in Tokyo on November 1st, as Krishna mentioned in his opening remarks.  So we look forward to seeing you online or in person there.  I also would like to remind you that we have regional briefings today in this room for MCD just after this and then after that for the European Department.  Thank you very much and have a wonderful day. 

    *  *  *  *  *

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Randa Elnagar

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    MIL OSI Economics –

  • MIL-OSI Economics: Transcript of Press Briefing: Middle East and Central Asia Department Regional Economic Outlook October 2024

    Source: International Monetary Fund

    October 24, 2024

    PARTICIPANTS:

    JIHAD AZOUR, Director of Middle East and Central Asia Department, International Monetary Fund

    ANGHAM AL SHAMI, Communications Officer, International Monetary Fund

    *  *  *  *  *

    MS. AL SHAMI: Good morning.  Good afternoon to those of you in the region.  Thank you for joining us to this press briefing on the Regional Economic Outlook for the Middle east and Central Asia.  I’m Angham Al Shami from the Communications Department here at the IMF.  If you’re joining us online, we do have Arabic and French interpretations on the IMF Regional Economic Outlook page and IMF Press Center.  So please join us there and we have interpretations also in the room.  I’m joined here today by Jihad Azour, the Director of the Middle East and Central Asia Department here at the IMF and he’s going to give us an overview of the outlook for the region.  Jihad over to you. 

    MR. AZOUR: Angham, thank you very much.  Good morning everyone and welcome to the 2024 Annual Meetings.  Before taking your questions, I will make few brief remarks to highlight three key messages regarding the economic outlook for the Middle East and North Africa (MENA), as well as the Caucasus and Central Asia (CCA).  First, regarding the outlook, growth is set to strengthen in the near term in both MENA and the CCA regions.  However, exposure to broader geoeconomic developments is adding to uncertainty.  Hence, our 2025 forecasts come with important caveats. 

              Let me start with the Middle East and North Africa.  This year has been challenging, with conflicts causing devastating human suffering and economic damage.  Oil production cuts are contributing to sluggish growth in many economies, too.  The recent escalation in Lebanon has increased uncertainty in the MENA region.  The second important issue is on growth.  For 2024, growth is projected at 2.1 percent, a downgrade revision of 0.6 percent from the April WEO forecast, and this is largely due to the impact of the conflict and the prolonged OPEC+ production cuts.  To the extent that these gradually abate, we anticipate stronger growth of 4 percent in 2025.  However, uncertainty about when these factors will ease is still very high. 

              MENA oil exporters are expected to see growth rise from 2.3 percent this year to 4 percent in 2025, contingent on the expiration of the voluntary oil production cuts.  Growth in oil importers is projected to recover from 1.5 percent in 2024 to 3.9 percent in 2025, assuming conflicts ease.  Let me now turn to the outlook for Caucasus and Central Asia.  The CCA regions continue to show robust growth, which was revised up to 4.3 percent in 2024, with growth of 4.5 percent expected for next year.  However, some economies are seeing tentative signs of slower trade and other inflows, especially on the remittance side.  Subdued oil production is weighing on the medium-term growth prospect for CCA oil exporters. And for oil importers, growth projects depend on the reform implementation.  The disinflation process is continuing and is continuing across both MENA and CCA region with headline inflation coming down significantly compared to the peak levels over the past two years.  However, inflation remains elevated in few cases due to country specific challenges. 

              My second point is on the medium-term growth prospects.  Medium-term growth prospects have faded over the past two decades and are now relatively weak in many economies.  Changing these dynamics requires steady reform implementation.  Priorities are for the MENA and CCA regions include governance improvement, job creation, especially for women and youth, investment promotion and financial development.  Achieving stronger and more resilient growth will not only foster job creation and greater inclusion, but will also help reduce elevated debt levels and enable progress toward the development of social spending goals. 

              My third point is on the uncertainty.  High uncertainty means that the economic outlook is fraught with risks.  The recent intensification of conflict in Lebanon has increased uncertainty and risks to a further level, and the risk of further escalation in the MENA region is the main issue here in terms of increase in risks.  This fluid situation is not yet factored in our analysis, and downside risks could be material depending on the extent of the escalation.  We are closely monitoring the situation and assessing the potential economic impacts.  Overall, the impact will depend on the severity of any potential escalation.  The conflict could impact the region through multiple channels.  Beyond the impact on output, other key channels of transmissions could include tourism, trade, potential refugee and migration flows, oil and gas market volatility, financial markets and social unrest. 

              Concern is also high about the possibility of prolonged conflict in Sudan, increased geoeconomic fragmentation, volatility in commodity prices, especially for the oil exporting countries, high debt and financing needs for emerging markets and recurrent climate shocks.  In the CCA, risks are primarily associated with potential financial instability resulting from sudden shift in trade and financial flows, and for both regions, failure to implement sufficient reform could constrain already muted prospects for medium term growth. 

              Before opening the floor to your questions, let me emphasize the Fund’s commitment to supporting economies across the region.  Our engagement remains strong in terms of financing and presence.  Since early 2020, the Fund has approved $47.7 billion in financing to countries across MENA and CCA and we have carried out capacity development projects for 31 countries only in the last fiscal years.  Thank you very much for being here today and I’m now happy to take your questions. 

    MS. AL SHAMI: So, we’ll now turn to your questions.  If you’re on Webex, please turn on your camera and raise your hand and we will call on you.  And if you’re in the room, please raise your hand.  So let’s start with maybe the middle right here, the gentleman. 

    QUESTIONER:  Hello and good morning, Jihad.    I wanted to bring you back to your comments about the risks of an escalation in the region.  Obviously, the human toll of this would be horrific, but in terms of the impact on the economies in the region, particularly Egypt, which is already suffering from an extreme loss of revenues from the Suez Canal, and then Lebanon, which you’ve had discussions with in the past, those really never went anywhere because of lack of commitment to do reforms.  What are the prospects of having to either redo some of the programs or create new ones if there’s an escalation?  Thank you. 

    MS. AL SHAMI: Thank you, Dave.  Maybe we’ll take another question on the conflict.  Kyle, second row here. 

    QUESTIONER:  Hi, good morning.  Thank you for taking my question.  Earlier this morning, the Managing Director said the outlook for the MENA is significantly downgraded and she cited mostly the geopolitical conflict.  So could you walk us through, like, where exactly the economic impact has been felt since the April release? 

    MS. AL SHAMI: Maybe we’ll take those two questions, Jihad, on the conflict. 

    AZOUR: Thank you very much.  Well, first of all, the conflict is inflicting heavy human toll, and our hearts goes to all the victims and those who were, in their life and livelihoods were affected by the escalation of the conflict.  Of course, the impact of the conflict is to be differentiated between countries who are at the epicenter.  The group of countries who are severely affected by the conflict, Gaza, West Bank, the whole Palestinian economy has been severely affected.  Lebanon also.  And the Lebanese economy was severely affected, with more than 1.2 million people displaced, which represent almost 25 percent of the population, destruction of livelihoods in a broad region that is mainly agriculture, and the impact on some key sectors like tourism and trade.  Therefore, the severely affected countries are seeing a large drop in their economic activity, and they will face contraction in their economies in the context of high inflation. 

              The second group I would call the group of partially affected countries.  And here we have countries like Jordan, Syria and Egypt.  And you have mentioned Egypt.  The main channel of impact on Egypt is trade.  The reduction in trade volume going through the Suez Canal has affected revenues by more than 60 to 70 percent on average for the Suez Canal, which would represent between 4 and a half to , $5 billion of loss in revenues.  For Jordan, the impact is mainly on tourism, which is not the case for Egypt.  Those are the two main countries affected.  Syria of course, is affected, but we have very little information on that.  This second group of partially affected countries, authorities have already started to take actions to protect their economies against that.  And we have the indirectly affected countries.  And here we have to look at the channels of transmission.  Trade is one.  The other one is the impact on tourism.  The impact on oil and gas has been relatively muted so far, except high volatility in the short term.  We did not see a major impact on the oil and gas sector yet.  I think one has to recognize that it’s a highly uncertain moment and therefore things are changing constantly and we are ourselves updating regularly our assessment of the situation.  Our numbers, for example, for the outlook do not report the latest development in the last months or so and therefore we will be updating our numbers.  This high level of uncertainty is affecting countries with vulnerabilities.  And this is where the Fund is in fact acting in providing support to countries in order to help them go through these severe shocks. 

    MS. AL SHAMI: Thank you, Jihad.  We’ll go for another round of questions.  Maybe we’ll go to the first gentleman in the first row, please. 

    QUESTIONER:  Many Arab countries have taken on significant debt to fund infrastructure and economic reforms.  What the strategies does the IMF recommend for managing the tracing debt levels, particularly for non-oil economies and taking into consideration what’s happening in the region with all the conflicts. 

    MS. AL SHAMI: Thank you.  We have another question that we received that’s also on debt.  What are the projections of the Fund concerning the region’s debt levels amid the ongoing regional tensions? 

    MR. AZOUR: Thank you for your questions.  Well, of course the high level of debt has been one of the main issues that several economies in the region, especially the middle income and the emerging economies of the region are facing.  And here I would address the issue in three levels.  The level of debt that constitute a major macroeconomic stability issue.  And we recommend countries to address this by having an inclusive but sustained fiscal consolidations in order to reduce the risk level, in order to strengthen their capacity to raise revenues and reduce the overall macroeconomic risk.  And when the Fund is asked, the Fund is providing support to many countries on that front. 

              The second dimension is the financing dimension.  The overall financing need for this year are going to be around $286 billion, almost $6 billion higher for the whole region in terms of financing need.  Compared to last year, this include not only, I would say all importing middle income countries, but the whole region and therefore securing enough financing is another issue.  And the third one that is becoming a challenging issue that requires a combination of measures is the cost of debt service.  The cost of debt service because of the increase in interest rate has become one of the main, I would say, fiscal issue that countries are facing. 

              The last point, I would add, is the fact that recently we were witnessing a greater reliance on local markets when it comes to financing the local debt.  Therefore, the nexus between the governor, the government and the market and the local market has increased.  And this is why it’s important to have a clear medium term reform agenda in order to reduce the weight of the debt, to improve fiscal space, but also to provide more comfort to investors to broaden the finance space.

    MS. AL SHAMI: Thank you, Jihad.  We’ll turn now to the online questions, and we have Fatima Ibrahim.  Fatima, if you’re online, you can come in.  Okay.  Otherwise we’ll take some questions from the floor.  We’ll start maybe with the gentleman in the middle.  Yeah. 

    QUESTIONER:  Good morning, this is Adil from Daily Business Recorder, Pakistan.  Thank you for taking my question.  So the World Economic Outlook projects Pakistan’s growth rate at a higher rate compared to last year, 3.2 percent.  The modest growth of 2.4 percent last year was predominantly driven by the agriculture sector, which had its best performance in the last two decades, right.  The services sector also benefited from agriculture success while the manufacturing was negative.  The agriculture sector faces significant downside risks this time.  While manufacturing is also highly constrained by high energy tariffs and weak demand locally.  Do you think a higher growth rate can be achieved without fiscal expansion the way Pakistan has primed the pump in the past after securing an IMF program?  Or do you think it can happen sustainably?  Thank you. 

    MS. AL SHAMI: Thank you.  Any other questions on Pakistan before we — any other questions on Pakistan?  Okay. 

    MR. AZOUR: Thank you very much.  Yes, the projections are showing that the Pakistani economy will grow at 2.4 percent this year compared to minus 0.2 percent last year and expected for next year to grow at 3.2 percent.  This constitutes an improvement at a time where we are seeing also inflation going down from 29 percent last year to 12.6 percent this year and we expect inflation to go down to 10.6 percent next year. 

              Of course, the reform package that the government of Pakistan has put together has several objectives.  One is to achieve fiscal sustainability by addressing some of the long awaited fiscal issues, especially on increasing the share of revenues in order to reduce the deficit, but also to improve the quality of the revenues by addressing some of the issues that existed in terms of tax collection and also in terms of special regimes.  Reforming the SOEs is also an important priority that will increase the capacity of Pakistan to provide a greater space for the private sector, level the playing field and increase FDIs by doing so.  This will allow the Pakistani economy to be more export driven and also to be ready to attract additional investment. 

              The monetary policy is also helping by tackling the issue of inflation and also by reducing any construction constraints on capital flows as well as also on the exchange transfers which also with the broad context of reforms will allow additional predictability and will reduce the risks or the constraints on the current account.  Therefore, the package of reform that has been set has not only the ambition to strengthen stability in terms of macroeconomic stability and reduced financing risks, but also has the ambition to reform some of the key sectors including the energy and the SOEs, improve the business environment, attract more FDRs and allow the economy to be more export driven which will unleash the potential of the Pakistani economy without having an impact on the current account. 

    MS. AL SHAMI: Thank you Jihad.  We’ll turn now online.   I’m going to read your questions because I have them here.  Two questions on Egypt.  Question is regarding negotiations that Egypt will start with the IMF regarding the timing of implementing the economic reforms.  Does the IMF see that any of these can be delayed?  And the second point how does the IMF see the situation of the Egyptian economy in light of the recent developments?  And have you tested that during  your projections regarding growth and energy prices? 

              If those that want to ask on Egypt we’ll start here — many hands.  Yes, the gentleman here. 

    QUESTIONER:  I will speak in Arabic.   It’s a technical point, Mr. Jihad.  I wanted to ask you about the policies of the Fund that they aim at improving the living standards of the citizens and to reach the most vulnerable population.  And during the negotiations, some of those negotiations they contradict with these principles I mean increasing the price of energy.  I mean again for floating the price of the pound and adjustment of some prices of the commodities such as power.  And this is part of the reform program.  Does this apply to the current situation in Egypt in general?  Whether I speak about improving the standards of living especially as these put more pressures on the vulnerable population. 

    MS. AL SHAMI: Please any other questions?  We’ll take the gentleman please be brief so we can take other questions. 

    QUESTIONER:  My question like Mrs. Georgieva said today that she’s going to visit Egypt in like within 10 days for like discussing the maybe reassessment in the program and that came in context with President he said that the economic situation it might lead Egypt to like rethinking about the reform program with the IMF.  Can you highlight in which points might like Mrs. Georgieva is going to discuss?  Are you going to change the program?  Are you going to change your condition for reforming program or it’s just going to be trying to convince Egyptian regime that the reform program that you have already agreed is going as usual and as you see like this came in contact with my colleague from Egypt about suffering of increasing price for gas and many other goods and stuff in Egypt.  So like what’s going on exactly in this meeting between Ms. Georgieva and President Sisi  Thank you. 

    MS. AL SHAMI: Thank you.  We’ll take one last question on Egypt and then we’ll move on the second, third row please. 

    QUESTIONER:    My question is, is there any possibility of increasing the size of Egypt’s long given the widening of the conflict in the Middle east in recent weeks?  Thank you. 

    MS. AL SHAMI: We’ll turn to you Jihad. 

    MR. AZOUR: Okay.  In fact there are three levels of the different questions.  One is on the economic situation in Egypt.  The second is on the program and the relationship between the Fund and Egypt and also on some of the specific measures.  Well, first of all, and I will answer part in Arabic and part in English for the question that came from the online audience.  Like other countries in the region, Egypt has been subjected to the impact of the increase in tension due to the conflict.  I mentioned earlier, Egypt is a country that is partially affected and mainly the impact was on the revenues from the Suez Canal.  Luckily, the impact on tourism was almost muted.  We did not see any drop for a sector that employs a large part of the population.  Therefore, there are two levels of impact.  The direct impact of the conflict and the high level of uncertainty that affects Egypt as much as affect other countries in the region, especially in terms of attracting direct investment and attracting inflows. 

              On the other side, there are certain number of internal issues that the authorities are dealing with.  The high level of inflation is one.  Inflation has reached last year35 percent and it’s important if we want to preserve the purchasing power of the people, especially the low- and middle-income people, is to address inflation.  The best way to protect the livelihood of people is by reducing the level of price increase.  Therefore, the first pillar of the program was to strengthen stability and also protect the economy from external shocks.  This economy has been subjected to external shocks over the last four years Covid and then the war in Ukraine and then the recent conflict in the region.  And this is where the importance, for example of the flexibility of the exchange rate.  The flexibility of the exchange rate will reduce the impact of external shocks that could destabilize the local economy, would give more predictability in terms of capital flows and will reduce the risk of using other type of measures that would have an impact on economic activity. 

              Therefore, it’s very important to preserve it because it’s the best way to reduce the impact of external shocks on the local economy.  Of course, it has to go hand in hand with monetary policy that works on addressing inflation.  Inflation is going down and I think this is a positive news.  We expect it next year to reach 16 percent.  Of course, there are some short term hikes when some of the measures are introduced, but those are usually short lived impact.  Therefore, monetary policy is also a priority in order to reduce the macro instability, but also reduce the pressure on the low middle income people.  Three is we need to create growth.  Also, we’re happy to see that the growth prospects for next year are improving 4 percent for the fiscal year 2025.  But I think we can do more.  How to do more is by allowing the private sector to be investing, creating jobs.  And the best way to do it is for the state to give more space to the private sector and also for the state to be, I would say allowing them the competition to take place.  And this requires to accelerate some of the reforms of the SOEs, including increasing the private sector share in those investments. 

              The program has been built based on those objectives and when shocks occurred, the Fund responded very quickly.  We have increased the size of the program from $3 billion to $8 billion in the last review that took place in April.  Taking into consideration that Egypt has been subjected to the shock of the conflict.  The other also positive element that FDIs have increased with 35, 34 billion dollars of investment from UAE.  I think this provided additional needed investment and also needed inflow.  And we hope that this investment will be one of the elements that will bring growth to Egypt.  Therefore, in terms of inflows Egypt has been receiving, in addition to what the Fund has provided, what the UAE has provided also additional financing from bilateral and multilateral institutions.  The World Bank, the EU have increased their financing to Egypt and therefore, going back to the question, should we revisit the size of the program?  I think the macroeconomic conditions today are showing that the program as it’s designed and its finance is still appropriate. 

              On the question of some of the specific.  The impact of some of the specific measures here, I think we have to differentiate between two dimensions.  There are certain measures who have impact and those need to be countered by some other measures, especially on the social front.  And we are happy to see that the various programs that exist, Takaful and Karama and other programs are activated in order to address some of these issues.  Whenever you introduce those kind of fiscal measures, you need to protect the most vulnerable.  You need to allow the mostly affected and those who have limited capacity to be protected.  And therefore, when you do so, it allows you to create fiscal buffers, especially on the revenue side, to make it fairer and more effective i.e.not to have all the tax burden on the low income or middle-income people through consumption tax to increase the progressivity in the tax system, but also on the other hand, to provide more on the social protection level the program has in it.And the Fund team is working with authorities on the way to make sure that what is in the program is sufficient enough and what needs to be done to improve the outreach of the social program.  And during the visit of the MD, this will be one of the priority issues that the MD will raise and will discuss is how effective the social protection programs are.  Therefore, I think whenever you have to address imbalances that have been there for some time, there are some consolidation.  But you want to make sure that this consolidation is growth friendly, is inclusive and also it provides sustainable economic transformation. 

              This is how the program has been designed.  It has been designed to live in a shock prone world.  It has been designed in order to allow the economy to be more geared toward growth that is driven by export and create more opportunities.  Of course the uncertainty in the region is high.  We take this into consideration and earlier I mentioned that we are constantly looking at the impact.  We’re looking also at the potential escalations and what does it mean for our countries. 

              But again, I think it’s important in the case of Egypt as well as also in Jordan.  Those programs provide an anchor of stability at a time of uncertainty.  I think there is a great value of those programs.  We saw it in Jordan with the upgrade of Jordan in terms of rating.  Those programs provide an anchor of stability, and I think what the region needs today is stability.  And this is on that premise that we are engaging with countries in the region, and we are in fact we’re ready to engage and to provide more support. 

    MS. AL SHAMI: Thank you, Jihad.  Let’s turn to the room.  Maybe we’ll go to the gentleman in the back.  Yes, right here.  Thank you. 

    QUESTIONER:  He will ask the question in Arabic.  In light of the environment in the GCC region, what are your projections for growth and specifically the Kingdom of Saudi Arabia, your projections for growth? 

    MR. AZOUR: No doubt, no doubt that the GCC countries have managed over the past years to adapt to a large number of shocks and challenges that are being witnessed in the region and the whole world.  Starting from COVID pandemic and oil shocks.  And oil countries and GCC countries have maintained a certain level of growth despite the fact that there was the OPEC+ and its agreements. 

              For 2024, our projections are better than 2023.  The growth is about 1.2 percent in 2024 and will improve in 2025 to reach 4.2 percent in 25.  And this is very important if we put this in the framework of the fact that the main driving force behind the growth in the GCC countries is the development of non-oil economy.  And this is a very important element.  The development of non-oil economy was a main leverage for growth and the Gulf countries maintained a good level of growth ranging between 3 to 4 percent for non-oil growth under our investments that are aimed to develop other economic sectors in the future such as renewable energy as well as technology which contribute to increasing the capacity of these countries to increase the revenue, to diversify the sources of revenue for the economy and to adapt to the economic changes all over the world. 

              With regard to economy of Saudi Arabia, we expect that this year the growth will be 1.5 percent which is an improvement as compared to growth last year which was minus 0.2 percent.  And for next year it will be 4.6 percent for Saudi Arabia.  What has contributed to this in the first place?  The economic development, non-oil economy in the Kingdom of Saudi Arabia and also the production which has been improving and also the unwinding of the OPEC agreement.  And again the question. 

    MS. AL SHAMI: If not, we’ll turn to the room.  Maybe the — yes.  .  Yes, we can hear you now. 

    QUESTIONER:  Good evening.  Thank you and good evening.  Mr. Jihad, I would like to ask in Arabic my question.  What made the IMF expect that the growth will be 2.9 percent for Jordan next year compared to 2.5 percent this year.  In light of the continuing war in the Middle East.  This is first.  Second question.  The IMF in its last review has said that the revenue of Jordan have decreased, whereas other estimates would say that the revenue have increased.  How would you interpret these different estimates or different numbers?  And what can Jordan do to increase its revenues?  Thank you,Also a few questions. 

    MS. AL SHAMI: Please be brief.  Thank you. 

    QUESTIONER:  Hello, can you hear me well? 

    MS. AL SHAMI: Yes, we can hear you. 

    QUESTIONER:  Thank you for this opportunity.  First of all, to ask my questions.  I would like to ask you about the upcoming COP 29 conference which is scheduled to be held in Azerbaijan very soon.  And what are specific initiatives that the IMF plans to support during the conference to promote sustainable development? 

    MS. AL SHAMI: We lost — okay, I think we can’t hear you,  but we’ll come back.  Maybe we’ll take one in the room.  Yes, please. 

    QUESTIONER:  I’m from Kazakhstan.  So my question is, how do you evaluate the effect of the war in Ukraine on the economies of Central Asian region, specifically my country, Kazakhstan?  Because we’re located too close to Russia and my country has the same border with it, and we are tied economically. 

    MS. AL SHAMI: Thank you.  So that was a question on Kazakhstan and we had an earlier question, Azerbaijan.  You want to have one final question before we turn to you, Jihad. 

    QUESTIONER:  I have a question about the main obstacles to foreign investment in Saudi Arabia and what the authorities can do in order to improve that.  Thank you. 

    MR. AZOUR: Thank you.  The first question I think is about the economic impact in Jordan of the war.  Of course, the Jordanian economy is close to the hot area.  Jordan was affected in tourism, as I said before.  And this impact on tourism also affected the economy in Jordan.  Also trade and the Aqaba port.  The impact continues, but no doubt the uncertainty and the fluidity is very high.  However, last year and this year Jordan managed to maintain economic stability and to achieve an acceptable growth rate, 2.3.  This year we expect it to improve to 2.5 percent if the situation continues as it is and there was no more escalation in the region.  We attribute this to the measures taken by the government in the previous years in order to improve the performance of the economy and to achieve stabilization. 

              The Jordanian economy proved to be resilient despite the tensions.  The additional good factor is that inflation is low.  And the Central bank of Jordan managed to keep low inflation at 1.8 percent this year, which contributes to the easing of monetary policy. With regard to the point about the revenues, the amount of revenues, I’ll go back to you when I talk with the team.  But what I want to say is that in the past few years Jordan achieved successes in raising revenues which contributed to lower deficits and better stability, which enabled Jordan to secure the main financial needs and to keep stability and to increase investments and financial flows.  And we’ve seen this improvement at the beginning of this year in the form of the higher rating agencies rating for Jordan.

              The COP 29 the COP 29 the Fund has been an important partner to Azerbaijan for the preparation of the COP 29.  As you know, last year and before, the Fund has been extremely involved and the Fund has scaled up its support to members on the climate side by providing programs to help countries accelerate their transformation and finance long term climate priorities.  The Fund is also mainstreaming the climate issues in the surveillance and is providing a wealth of knowledge on the priorities, including for the Caucasus and Central Asia region where the Fund has recently produced a series of analytical pieces about the importance of adaptation for the region as well as also how to tackle the issue of mitigation and climate finance.  And I would encourage you and others to look at those.  Those are important pieces that will be featured during the COP 29.  Of course, we had recently during this week meetings with the authorities and the Fund is looking forward to maintain its active partnership with the authorities and play an important role in COP 29. 

              The last question was impact of the conflict between Russia and Ukraine on CCA countries and in particular on Kazakhstan.  Of course, let me say a few words on that.  Countries in the CCA in general have been able over the last four years and specifically over the last two years to protect their economies from the negative impact of the war in Ukraine and at the same time they were able to address the other risk that was coming from the increase in inflation or inflationary pressure.  When it comes to Kazakhstan, we project growth this year to be at 3.5 percent and we expect it to improve next year and reach 4.6 percent.  Of course, part of it is also due to the new investments in energy and in the new the new oil and gas fields, but also to the good performance of the non-oil sector. 

              Clearly here also the level of uncertainty is high, and we recommend countries to maintain on one hand their reform drive to preserve macroeconomic stability and on the other hand to accelerate structural reforms to regain levels of growth that would be needed in order to allow economic convergence between Central Asia and Caucasus countries with their peers to this gap to widen.  And this afternoon we will.  Sorry.  Tomorrow we will have a special session on the medium-term growth priorities, including the structural reforms.  And we will tackle some of the priorities for Kazakhstan as well as also other Central Asian countries. 

              The last question is obstacles to investment in Saudi Arabia.  This is the last question.  You want it in Arabic or English?  In Arabic.  If we look at the past few years under Vision 2030, you will see that there are some reforms that have contributed primarily to the improvement of the investment climate and to increase the growth rate outside of the government scope.  There was lower unemployment, especially among the youth, and also an increase in the participation of women.  And this has improved things despite all the volatilities and all the oil production cuts.  These reforms and investment projects that were adopted improve the size of the economy and make it more able to attract investments in the oil sector and also other like entertainment and technology. 

              In the past year there was a revisiting of the priorities, and the priority was more priority was given to technology, AI, climate.  All of this opens the door for more direct investment from abroad as in Saudi Arabia, also in the region.  Direct investment in the past 10 years was not as aspired.  There are internal reasons and also regional reasons because of the volatility and also because the global economic development reduced direct investments in the region. 

    MS. AL SHAMI: Today’s briefing.  Thank you very much all for joining us today.  Jihad, any final words on the launch? 

    MR. AZOUR: One, I would like to thank you very much again, I would like to ask you to remain tuned.  I mentioned in my opening that the volatility of the situation requires from us and the high level of uncertainty to keep ourselves updated and to keep updating you.  This afternoon we will.  Sorry.  Tomorrow afternoon we will have an interesting session that looks into not the short-term where the level of uncertainty is extremely high, but the medium-term.  What are the priorities in terms of growth?  What are the priorities also in terms of investment?  We will launch officially with the details with the tables the outlook in Dubai next week.  It will be on October 31st and then immediately also we will launch the outlook for Caucuses and Central Asia.

              Tomorrow at 3pm I would like to invite you all for an interesting session where we are going to discuss one of our key analytical chapters that has to focus on medium term growth.  With that, thank you very much.  I’m sure there are follow up questions.  Myself and the team who is here will be ready to provide you with additional answers to your questions. 

    MS. AL SHAMI: Thank you all.  Thank you very much. 

    *  *  *  *  *

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Angham Al Shami

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    @IMFSpokesperson

    MIL OSI Economics –

  • MIL-OSI New Zealand: Zero Waste Champions lead the way at the 2024 Tāmaki Makaurau Awards

    Source: Auckland Council

    Wonky cherries transformed into cola, discarded fishing nets repurposed into kitchen panels, a waste waka cleaning the streets, and community composting efforts were all celebrated at the 2024 Tāmaki Makaurau Zero Waste Awards.

    The awards night, held on Thursday 24 October, honoured outstanding contributions to zero waste initiatives from people right across Auckland. Among the guests were the 170 individuals, groups, schools, marae, businesses, and social enterprises that were nominated for their dedication to reducing waste and championing sustainability across the region.

    “We celebrate the work and success of Zero Waste Award winners and nominees in reducing waste and supporting a circular economy. We had a record number of nominations this year which is testament to the ingenuity and aspirations of every Aucklander working in this space. Auckland Council congratulates the winners and thanks everyone who is striving for a Zero-Waste future,” says Parul Sood, Deputy Director Resilience and Infrastructure at Auckland Council.

    Judges Charmaine Bailie (Uru Whakaaro), Ngarimu Blair (Ngāti Whātua Ōrākei), Parul Sood (Auckland Council) and Carla Gee (EcoMatters) selected winners as well as highly commending several other entries in each of the six categories.

    Rangatahi Leadership Award – Rangatahi, rangawhenua, rangatangata

    The winner is Pacific Vision Aotearoa’s Food Hub Gang. The self-named trio of young volunteers – Nazihah Buksh, Ayla Brockes, and Alena Lui – collects food scraps from New World supermarket to create compost at the Papatoetoe Food Hub. Despite their busy schedules, they contribute weekly with dedication, diverting 1.5 tonnes of waste from landfills. Each member has a unique role, with their efforts supporting community gardens and highlighting the importance of reducing waste.

    Growing the Movement Award – Whakakanohi i te kaupapa para kore

    The winner is Brigitte Sistig, co-founder of Repair Cafe Aotearoa NZ and a key figure since 2013. She launched the Repair Café in 2016 with Auckland Council funding, delivering 18 events with 12 community partners across Tāmaki Makaurau. Now largely volunteering, she helps manage 22 regular Repair Cafes in Auckland, at both permanent and pop-up locations, with the first Repair Festival having taken place in September 2024. Brigitte also leads the Right to Repair Aotearoa Coalition, advocating for the Consumer Guarantees (Right to Repair) Amendment Bill Campaign.

    Community Collaboration Award – Hā ora, Hāpori

    The winner is Junk2Go, a rubbish collection business in Avondale that focuses on diverting usable items to people in need instead of sending them to landfill. Collected items like furniture, clothing, appliances, and e-waste are sorted and donated through the “Junk2Go turning Junk2Good” initiative. Nothing is sold. Their depot opens weekly to charity partners, allowing them and the families they support to freely take what they need, helping to turn houses into homes.

    Cultural Connection Award – Whīria te ahurea, whīria te kaitīakitanga

    The winner is PlanetFM, a not-for-profit community radio station, that amplifies the voices of Tāmaki Makaurau’s minority and special interest groups. It has supported the zero waste campaign by broadcasting programmes and ads in multiple languages, including Arabic, Nepali, and Tamil, to reach ethnically diverse communities. Volunteers were trained to promote zero waste and used their networks to extend the campaign’s impact, delivering messages in culturally relevant ways through trusted community leaders.

    Innovation Award – Anga whakamua

    The winner is Clevaco. Clevaco created New Zealand’s first circular building foundation with its CLEVA POD® system, made from 100% recycled plastic. This system replaces polystyrene pods and can be fully recovered during demolition, avoiding landfill waste. CLEVA POD® offers the building industry an easy, sustainable alternative. Clevaco partners with companies committed to environmental practices, helping them adopt circular construction and sustainable building methods.

    Community Engagement – Food Scraps Service Rollout – Rukenga kai

    The joint winners are A Fool’s Company and the EcoMatters Food Scraps team.

    A Fool’s Company helped roll out the food scraps service with an interactive theatre show for primary schools in Tāmaki Makaurau. “Freddie’s Food Scraps Quest: A Rukenga Kai Story” is a 45-minute performance combining storytelling, comedy, music, and audience participation. Teaching children the importance of rukenga kai, 75 shows have reached over 11,000 children and 500 adults since August 2023. The success has led to renewed funding, allowing free performances across the region and expansion into recycling education.

    The EcoMatters Food Scraps team received six individual nominations. They spent 10 months educating Tāmaki Makaurau residents on using the rukenga kai service. A team of 25 canvassers held over 35,000 conversations across 98 areas, putting in 3000 hours. They engaged the public at community events, door-knocking, and even beside sports fields.

    This year’s awards were organised by EcoMatters Environment Trust, in partnership with Auckland Council, as part of its aspirational goal for Tāmaki Makaurau to be zero waste by 2040.

    MIL OSI New Zealand News –

  • MIL-Evening Report: At $300m, Jules Verne-inspired Nautilus is the most expensive Australian-made show. But Disney+ was right to dump it

    Source: The Conversation (Au and NZ) – By Ari Mattes, Lecturer in Communications and Media, University of Notre Dame Australia

    Stan

    Investing in film and TV productions is a risky venture. Even the best directors and producers are just a flop away from ruining their careers.

    So if a company owns the intellectual property to a popular material, or if that material enters the public domain, these companies – risk-averse entities, to be sure – will hastily retread their tyres for another lap of the track. This is partly why you’ll see well-worn stories from your childhood told over and over onscreen, even now.

    But if the new version is too similar to the old, people will cynically roll their eyes. Enter Disney, which has perfected the strategy over the past few decades of retelling the same stories from different characters’ perspectives – a gambit that seems to strike people as inherently interesting.

    Maleficent, for example, is Sleeping Beauty from the perspective of the evil queen. Although this kind of fairytale revisionism goes back to Angela Carter’s best-selling feminist fiction, Disney has, more than any other corporation, become an expert at co-opting social movements in pursuit of profits.

    The latest revisionist work set to be distributed by Disney+ was Nautilus. The series filters the story of Jules Verne’s inimitable maritime adventure novel 20,000 Leagues Under the Sea through the lens of Captain Nemo, framed as a prequel to the original.

    The fact that Disney+ dropped Nautilus before its release (it has been picked up by Prime in the UK and Ireland and Stan in Australia) immediately stoked my interest. This is particularly notable because, with a budget of A$300 million, it’s the most expensive series ever made in Australia (filmed mainly on the Gold Coast).

    Alas, after restlessly sitting through all ten episodes, I understand Disney’s decision.

    Diluting a powerful message

    Where Verne’s novel (and to a lesser extent, the 1954 Disney live action film) effortlessly creates an authentic world, which is absolutely critical to the effectiveness of any fantasy work, Nautilus seems painfully contrived from its opening.

    It’s the kind of show where all the British soldiers and East India Company men speak in toffee accents and spout horrifically ruthless commands between sips of tea.

    The show is a $300 million wreck.
    Stan

    The Nautilus’ crew is made up of a miscellany of virtuous victims of the company (and thus of the British empire): a wealthy British woman being forced into an arranged marriage, an old Chinese worker, a Māori cook, a trader from Zanzibar and ex‑slave Indians.

    The characters frequently pontificate about the value of freedom, the evils of slavery and the glory of the environment. In one particularly ludicrous scene early on, Nemo jumps onto a whale’s back to remove a harpoon.

    In the novel, Nemo’s romantic alienation perfectly complements his maniacal drive, interspersed with Verne’s faux-scientific descriptions of the submarine, giant squid and other objects.

    Similarly, here, Nemo is presented as being far from mercenary; hounded to the north seas by the British, he’s seeking treasure in order to bring the company down. But lead Shazad Latif’s delivery is monotonous and strained, as though even he doesn’t buy it.

    British actor Shazad Latif’s performance as Captain Nemo is far from convincing.
    Stan

    The idea that this is some kind of “fresh” (read “politically correct”) re‑imagining of the world of the novel is strange in the first place, given the original story (although narrated by Professor Aronnax) is already closely anchored to Nemo’s point of view.

    Verne clearly presents Nemo as a kind of eco-warrior responding to the brutalities of colonialism. If anything, the original message is diluted in this adaptation as it implies Nemo’s quest is mainly personal – that he simply wants vengeance for what the company did to his family – rather than political.

    At the same time, I sense the creators are going for some kind of psychological realism by painfully spelling out that Nemo had bad things done to him by the British. But this didacticism causes the spirit of adventure to suffer, so we’re left with something both silly and not particularly exciting.

    The British soldiers and company men speak in ridiculous accents.
    Stan

    A big fish isn’t always a good fish

    The show’s production design and cinematography (some of the most important components in this kind of adventure epic) seem flat, too. The sets, though colourful, look decidedly artificial. The synthesis of CGI elements with filmed footage is far from smooth.

    And the odd colour grade makes the characters’ skin look hyper-artificial. This was surely the intention, but why? It is distracting in every closeup.

    Not to single out any particular department, every aspect of the production seems dialled in, including the score, which sounds like something hastily composed using AI software.

    Of course, one could talk about the production’s benefits to the Australian industry, but this seems like a hapless argument if the work is no good. How many low-budget films could have been made with $300 million? 100? 150? Those would have also invested money in the industry, while developing local talent.

    The impact of a big-budget production on local industries isn’t clear when the production in question isn’t very compelling.
    Stan

    Not camp enough, yet not careful enough

    If it were camper, Nautilus could have acquired the cult value of a great cinematic fiasco such as Renny Harlin’s 1995 film Cutthroat Island. All the actors seem to be trying hard, and the writers clearly laboured away at the story.

    Perhaps this is the problem. Like so many new commercial works, Nautilus tries so hard to please everyone it ends up pleasing no one. The wider the appeal, the greater the risk mitigation, apparently.

    But given it actually tries to embed the story in a sense of history, its sins seem greater than mere televisual boredom for the viewer. The series presents a monolithic and simplistic image of the way colonialism and capitalism are intertwined.

    At best, this is naïve – one could argue, “who cares, it’s just a silly fantasy series”. At worst, however, it is actively destructive of historical consciousness. And that’s not smooth sailing.

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

    – ref. At $300m, Jules Verne-inspired Nautilus is the most expensive Australian-made show. But Disney+ was right to dump it – https://theconversation.com/at-300m-jules-verne-inspired-nautilus-is-the-most-expensive-australian-made-show-but-disney-was-right-to-dump-it-241583

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI Australia: UPDATE: Call for information – Hit and runs – Darwin

    Source: Northern Territory Police and Fire Services

    Northern Territory Police are continuing to call for information after suspicious hit and runs in Darwin yesterday morning.

    Investigators from Serious Crime have confirmed the vehicle was a stolen Silver Toyota Corolla Hatchback with Northern Territory Registration “HARYANV”.

    The vehicle was allegedly involved in 2 intentional hit and run incidents on McMinn Street and Illife Street, along with property offences in Woolner.

    Police urge anyone with information on the vehicle, or who has dash cam or CCTV footage, to contact police and quote reference number P24293700.

    Anonymous reports can also be made through Crime Stoppers on 1800 333 000 or via https://crimestoppersnt.com.au/.

    MIL OSI News –

  • MIL-OSI USA: 2022 and 2023 National Medal of Arts and National Humanities Medal  Citations

    US Senate News:

    Source: The White House
    On Monday, October 21st, President Biden held an East Room ceremony at the White House to present the 2022 and 2023 National Medals of Arts and the 2022 and 2023 National Humanities Medals.
    The National Medal of Arts is the highest award given to artists, arts patrons, and groups by the United States Government and honors exemplary individuals and organizations that have advanced the arts in America and offered inspiration to others through their distinguished achievement, support, or patronage. The National Humanities Medal honors individuals or groups whose work has deepened the nation’s understanding of the humanities and broadened our citizens’ engagement with history, literature, languages, philosophy, and other humanities subjects.
    Below are the citations presented to the 2022 and 2023 medal recipients:
    National Medal of Arts – Class of 2022
    Ruth Asawa (Posthumously)
    For groundbreaking modernism and championing art for everyone. From a family of Japanese immigrants separated in incarceration camps, Ruth Asawa emerged to become a renowned educator and artist, bringing her distinctive wire sculptures to the Nation’s museums, homes, and classrooms, and leaving a legacy as powerful and profound as her portfolio.
    Randy A. Batista
    For focusing the lens on human nature. Born in Tampa, Florida, to Italian and Cuban immigrants and raised on both sides of the Straits of Florida, Randy Batista is known as the people’s photographer. With the camera as his sixth sense of deep empathy, he captures people’s pain and challenges us to respect their inherent dignity.
    Clyde Butcher
    For focusing the lens on Mother Nature. From humble beginnings as a self-taught photographer, Clyde Butcher is considered America’s most acclaimed landscape photographer today. From the Rocky Mountains to the Everglades, and countless pristine places in between, his images inspire and challenge us to respect and defend our natural wonders.
    Country Music Hall of Fame and Museum
    For cataloging one of the Nation’s great homegrown art forms. As the world’s largest repository of country music history, in the country music capital of Nashville, Tennessee, the Country Music Hall of Fame and Museum preserves history, honors giants of the genre, and inspires future generations to write their own songs about the American story.
    Melissa “Missy” Elliott
    For shattering glass ceilings with timeless beats. From a child singing in the church choir to becoming a best-selling female rapper and pioneering hip-hop icon, Missy Elliott’s genre-defying music and rhymes have elevated an industry into a global powerhouse and inspired generations to push the sound and movement of America.
    Leonardo “Flaco” Jiménez
    For harnessing heritage to enrich American music. The son of a musical family in Texas, Flaco Jiménez mastered the accordion and Spanglish lyrics as a trailblazer of Conjunto. Blending Norteño, Tex Mex, and Tejano music with the Blues, Rock n’ Roll, and Pop Music, he sings the soul of America’s Southwest.
    Eva Longoria
    For recognizing the strength of our diversity and the full talents of our Nation. Actor, producer, director, and proud Mexican American, Eva Longoria has broken barriers on screen and uses her power to lift up Latino voices all across American life — challenging stereotypes and instilling Latino pride in our Nation.
    Idina Menzel
    For magical songs that lift our spirits and stir our souls. From Broadway stages to movie screens, Idina Menzel’s powerful voice has sold out shows, topped Billboard charts, and above all, empowered millions of Americans of all ages and backgrounds to be strong, use their voice, and lead with their hearts.
    Herbert I. Ohta
    For redefining ukulele music as a deeply moving American sound. The Hawaiian son of Japanese immigrants, Herb Ohta learned his first chords as a child and played through his service as a United States Marine. A musical innovator and mentor, he has bridged cultures and genres, spreading the peace and hope of aloha spirit.
    Bruce Sagan
    For seeking the truth as a true public citizen. A Chicago, Illinois, journalism legend and lifelong supporter of the performing arts, Bruce Sagan’s seven decades of leadership and stewardship in building, protecting, and uplifting local newspapers, voices, artists, and dancers have inspired his beloved city and enriched the tapestry of American life and culture.
    Carrie Mae Weems
    For capturing the resilience and dignity of Black America and our deeper humanity.
    Over three decades at the forefront of American expression, Carrie Mae Weems has honed her craft as a renowned artist whose photography, film, video, and art confront hard truths about power and prejudice, while celebrating the indomitable human spirit.
    National Medal of Arts – Class of 2023
    Mark Bradford
    For revealing the full history of the Nation through groundbreaking art. Inspired by the diverse cultures of Southern California, Mark Bradford’s paper-on-canvas storytelling reveals the interwoven hopes, sorrows, and joys of communities of color, with each layer challenging convention, shining light, and reminding us all of the full potential of America.
    Ken Burns
    For documenting the hope and history of our Nation. From his home in rural New Hampshire and deep from his imagination, Ken Burns´ pioneering documentaries of diverse people, places, and histories have shaped our understanding of the American experience, and defined him as one of the most respected filmmakers of our time.
    Bruce Cohen
    For championing the arts to express our highest ideals of freedom, justice, and equality.
    An entertainment industry icon ahead of his time, Bruce Cohen has produced our biggest moments on screen and stage by lifting up people and stories that need to be seen and heard, making real the promise of America for all Americans.
    Alex Katz
    For conjuring an enduring portrait of America. Born in Brooklyn, New York, to Russian immigrants, Alex Katz is among the most prolific and distinctive artists in our history. With a ferocious work ethic and visionary style, he continues to condense the complexities of everyday life into iconic faces and landscapes that reveal the essence of who we are as Americans.
    Jo Carole Lauder
    For devoted support of the arts, culture, and civic causes in America. A renowned philanthropist leading an array of causes — from supporting the White House Historical Association to refurbishing and preserving United States embassies abroad to inspiring participation in Jewish life worldwide —Jo Carole Lauder channels her creative talents to beautify the spirit of our Nation.
    Spike Lee
    For revolutionizing American cinema and culture. One of the most thought-provoking filmmakers of our time, Spike Lee honors his Brooklyn, New York, roots by daring to capture the depth of the Black experience and lifting up Black culture on the world stage through vibrant films and courtside pride that shapes our Nation’s collective conscience.
    Queen Latifah
    For leading the Nation as a champion of women’s empowerment. A natural storyteller and one of the first ladies of hip-hop, Queen Latifah breaks the mold for women in entertainment — rapping about overcoming loss and abuse of power to exuding cool and confidence as a critically-acclaimed actor and activist, showing how infinite love is the only hope for unity.
    Selena Quintanilla (Posthumously)
    For cementing Tejano music into the heart of the Nation. The youngest of the Quintanilla music family, Selena brought Latin music to the masses as the Queen of Tejano music and one of the most celebrated entertainers in our history. Her young life was tragically cut short, but her voice and spirit endure for the ages.
    Steven Spielberg
    For filmmaking that entertains, educates, and inspires. Growing up moved by the power of films, Steven Spielberg is considered one of the greatest filmmakers ever, using his gift of storytelling to stretch our imaginations, confront the horrors of history, and inspire us to be the characters of our Nation and the world’s future — full of courage, honor, and dignity.
    National Humanities Medal – Class of 2022
    Wallis Annenberg
    For transforming philanthropy in our Nation. The daughter of a groundbreaking media family in Los Angeles, California, Wallis Annenberg is a visionary giver and innovator who has donated to thousands of organizations in the arts, education, environment, medical research, social justice, and more — transforming countless lives by advancing, healing, and inspiring communities across America.
    Appalshop
    For amplifying the voices of Appalachia. Located in Kentucky’s Appalachian Mountains for 50 years, Appalshop is home to the world’s largest collection of creative work on Appalachia — a hub for new generations of artists, filmmakers, musicians, and playwrights to share their stories of pride and promise of their American roots.
    Joy Harjo
    For shining the light on the sacred traditions of Native American storytelling. A member of the Muscogee Nation in Oklahoma, and the first Native American Poet Laureate of the United States, Joy Harjo’s distinguished poetry and award-winning music about art, justice, and healing honors ancestral generations and empowers those that follow.
    Robin Harris
    For educating our youngest students to be dreamers and doers of our Nation. As an elementary school teacher and trailblazing principal in Massachusetts, Robin Harris is redefining K-12 education to empower students, embrace parents, and extend learning and leadership beyond the walls of the classroom and into the free spirit of the mind.
    Juan Felipe Herrera
    For poeticism that captures America’s imagination. The son of California farm workers, Juan Felipe Herrera takes readers across countries and cultures, genres, and disciplines as a towering figure in Chicano poetry and the first Latino Poet Laureate of the United States, using the power of his pen to give life to our identities and common bonds.
    Robert Martin
    For dedicating his career to the academic achievement of Native American students. A member of the Cherokee Nation of Oklahoma, Dr. Robert Martin has led Tribal colleges and launched Indian Studies programs at institutions of higher learning across the country to strengthen Tribal self-determination and empower future Native American leaders.
    Jon Meacham
    For drawing wisdom from history to shape the future of America. A proud son of Tennessee and celebrated historian and biographer, Jon Meacham chronicles the journey of America with an unmatched mix of historical context, parables from Scripture, and unyielding faith in the goodness of the American people that makes us a truly great Nation.
    Ruth J. Simmons
    For pioneering equity in our Nation’s higher education system. One of twelve children born into a sharecropper family in Texas, Dr. Ruth Simmons blazed trails in academia as a distinguished professor of literature and the first African American woman president of an Ivy League institution—showing how an education makes one free and fearless.
    Pauline Yu
    For a lifetime of advocacy for the humanities in America. The daughter of Chinese immigrants raised in Rochester, New York, Dr. Pauline Yu is a respected scholar of Chinese poetry and renowned advocate for the humanities, who has deepened cross-cultural understanding through language and literature, and advanced core democratic values of truth, reason, and free inquiry.
    National Humanities Medal – Class of 2023
    Anthony Bourdain (Posthumously)
    For making food a gateway to understanding the world and one another. A beloved chef, writer, and social commentator, Anthony Bourdain is remembered across the globe for his empathy, openness, and humor—approaching every table with equal reverence for the people it convened, and embodying the best of American curiosity and exploration.
    LeVar Burton
    For imagining a more optimistic and enlightened America for everyone. A celebrated actor, advocate, and storyteller, LeVar Burton confronted the trauma of history, took us to the depths of space, and transformed literacy in America by sharing the gift of reading with generations of children, unlocking our imaginations and spirit of discovery.
    Roz Chast
    For healing a Nation with humor and observation. One of the most prolific cartoonists of our time, Roz Chast has wielded pen and watercolor for over 45 years to make ordinary things extraordinary, blaze a trail for women in her field, and define an era of American wit and wisdom.
    Nicolás Kanellos
    For amplifying Hispanic voices in America’s past, present, and future. Raised between Puerto Rico and Jersey City, New Jersey, Nicolás Kanellos channeled a childhood love for Spanish literature into a distinguished literary career in Houston, Texas, leading the Nation’s oldest and largest Hispanic publishing house and elevating the diversity of American literature.
    Robin Wall Kimmerer
    For sharing Indigenous wisdom in America’s natural sciences. A citizen of Potawatomi Nation and a renowned scientist and writer, Robin Wall Kimmerer has transformed our understanding of environmental science by incorporating Indigenous knowledge into college curriculum and critical efforts to heal a climate in crisis, offering new hope for generations to come.
    Mellon Foundation
    For charting an unparalleled course for the arts and humanities in America. For over 50 years, the Mellon Foundation has been the trusted benefactor for thousands of people and organizations harnessing the power of ideas and imagination to advance social justice and freedom, and defend the arts as essential to American democracy.
    Dawn Porter
    For documenting the good, the bad, and the truth of our Nation. Beginning her career as a lawyer, Dawn Porter pursued filmmaking to showcase the vibrancy of Black culture and history. By chronicling the lives of America’s everyday heroes and legendary leaders, her award-winning documentaries remind us that the work of perfecting our Union is essential and never-ending.
    Aaron Sorkin
    For trademark storytelling in America. Drawn to theatre at a young age, Aaron Sorkin found his calling as a groundbreaking writer and creator, scripting and show-running iconic films and television shows that inspired an entire generation to believe in the possibilities of our Nation and walk, talk, and answer “what’s next?”
    Darren Walker
    For showing us hope is the oxygen of democracy. With boundless passion and enduring purpose, Darren Walker harnesses empathy from his modest upbringing in the South to advance the most ambitious philanthropic goals of our Nation, as a visionary leader whose commitment to improving the human condition has fortified justice and good governance in America and around the world.
    Rosita Worl
    For embodying the resilient community spirit of Native American culture. As a child in Alaska, Dr. Rosita Worl survived the brutalities of Federal Indian boarding school that took her from her family and Nation. As an anthropologist and advocate, she has since spent her life pushing to right wrongs and build a new era of understanding and healing.
    Additional information
    National Endowment for the Arts
    The National Endowment for the Arts (NEA), established by Congress in 1965, is an independent Federal agency that is the largest public funder of the arts and arts education in communities nationwide and a catalyst of public and private support for the arts. The NEA’s mission is based on an abiding conviction that the arts play an integral role in our national life and public discourse. The arts strengthen and promote the well-being and resilience of people and communities. By advancing equitable opportunities for arts participation and practice, the NEA fosters and sustains an environment in which the arts belong to and benefit everyone in the United States.
    National Endowment for the Humanities
    Created in 1965 as an independent Federal agency, the National Endowment for the Humanities (NEH) supports learning in history, literature, philosophy, and other humanities subjects by funding selected, peer-reviewed proposals from around the Nation that support research in the humanities, foster education, nurture humanities infrastructure, and expand the reach of the humanities. Since 1965, NEH has awarded over six billion dollars to cultural institutions, individual scholars, and communities throughout the United States. The Endowment serves and strengthens the country by bringing high-quality historical and cultural experiences to large and diverse audiences in all 50 States, the District of Columbia, and five territories; providing opportunities for lifelong learning, expanding access to cultural and educational resources, and preserving the human stories that connect all Americans.
    The President’s Committee on the Arts and the Humanities
    The President’s Committee on the Arts and the Humanities (PCAH) was founded in 1982 by Executive Order to advise the President on cultural policy. The First Lady has historically served as Honorary Chair of the Committee, which is composed of members appointed by the President. Private committee members include prominent artists, scholars, and philanthropists who have demonstrated a serious commitment to the arts and humanities. Public members represent the heads of key Federal agencies with a role in culture, including the Chairs of the National Endowments for the Arts and the Humanities, the Librarian of Congress, the Secretary of the Smithsonian, and the Director of the Institute of Museum and Library Services among others. The PCAH facilitates public-private partnerships, promotes interagency cooperation, and proposes programs that enhance arts, humanities, museums, and library services across the country. Over the past 40 years, PCAH has catalyzed Federal programs and played a vital role in the advancement of arts and humanities education, cultural diplomacy, and the creative economy.

    MIL OSI USA News –

  • MIL-OSI Australia: NSW Grandparents Day perfect time to celebrate family

    Source: New South Wales Ministerial News

    Published: 25 October 2024

    Released by: Minister for Seniors

    This Sunday 27 October is NSW Grandparents Day – a day for families to come together to celebrate grandparents and those who play grandparent roles in our lives.

    NSW Grandparents Day has been an initiative under the NSW Ageing Strategy since 2011 and is celebrated on the last Sunday of October.

    Whether they’re nan and pop, grandad and grandma, nonna and nonno or mama and papa or simply a grand-friend, NSW Grandparents Day is an occasion to enjoy family fun, whether that’s a picnic, a trip to the park or simply reading a book together.

    The NSW Government provides over $50,000 in funding to local libraries to deliver activities to help the community celebrate Grandparents Day this Friday through the weekend. Events include special storytime, digital programs and even musical performances. This year, 105 libraries across NSW will be running events for the whole family.

    For more information and ways to celebrate, visit https://www.nsw.gov.au/family-and-relationships/grandparents-day/story-time-library-resources

    Minister for Seniors Jodie Harrison said:

    “NSW Grandparents Day recognises the diversity of grandparent relationships and the roles of older people in our community.

    “It’s important to celebrate the contributions grandparents make to their families and communities.

    “The bond between grandparents and grandchildren is special and should be celebrated year-round, but having a special day to recognise that connection and do an activity together is a great way of acknowledging their special and meaningful contributions to family and the community.

    “If you can’t make it to a library for storytime, there are still plenty of other ways to thank grandparents such as having a morning tea together, sending them a hand-drawn card, or by calling them on the phone.”

    MIL OSI News –

  • MIL-Evening Report: Chaotic scenes at Travis Scott’s Melbourne concert: what is the role of artists in crowd behaviour?

    Source: The Conversation (Au and NZ) – By Milad Haghani, Senior Lecturer of Urban Analytics & Resilience, UNSW Sydney

    Travis Scott’s Melbourne concert on October 22 lived up to his reputation for chaotic performances. Fans, eager for a high-energy show, were met with unruly scenes both inside and outside the venue.

    Reports described concertgoers clashing, throwing plastic bottles and dismantling barricades.

    As some fans attempted to breach security barriers to enter the mosh pit, physical altercations with security guards erupted. One fan reportedly suffered a seizure after trying to bypass barricades.

    These occurrences, at times, were reminiscent of the dangerous atmosphere at Scott’s past concerts, including the fatal 2021 crowd crush at Astroworld Festival in Houston.

    Modern crowd psychology shows us collective behaviour is shaped by perceived group norms, and these norms can either foster safety or encourage chaos. This performance – contrasted with other recent big concerts in Australia – highlights the urgent need to rethink the roles of performers in crowd management.

    Defiance is normalised

    While performing, Scott often urges fans to lose control and embrace the chaos. This induces behaviours such as mosh pits, crowd surfing, and even at times, ignoring fans in distress.

    Scott’s performances are characterised by his desire to have his energy reciprocated by the audience, which creates an environment where defiance is normalised.

    Statements such as “forget security, this is for y’all” push fans toward risky behaviours, making these concerts highly charged and, at times, uncontrollable.

    While this may foster excitement and adrenaline, it also sets the stage for unsafe crowd dynamics.

    The 2021 Astroworld tragedy, in which ten people died and thousands were injured in a crowd surge, should have served as a wake-up call about the elevated risks at Scott’s performances.

    Despite signs of crowd distress, Scott continued performing for nearly 40 minutes after Houston officials started responding to the mass casualty event. Despite visible signs of crowd distress, the show continued.

    More than 300 injury lawsuits were settled between festivalgoers and Scott and concert promoter Live Nation. Plaintiffs argued the concert’s organisers failed to act swiftly to prevent the disaster once the crowd surge became life-threatening.

    Though the Melbourne concert didn’t reach the same tragic levels, the chaotic scenes were reminders of the ongoing risks at Scott’s performances.

    Incidents like the one in Melbourne – with security struggles, fan injuries and disorder – should serve as near-miss warnings. The same volatile energy persists in Travis’ concerts and could amount to risky behaviour, luckily not of catastrophic consequences in this case.

    Different artists set different safety cultures

    While Scott’s concerts are known for their chaotic energy, artists such as Taylor Swift present a stark contrast in terms of crowd dynamics and audience behaviour.

    Swift’s recent Australian shows, which hosted record-breaking attendance numbers, ran smoothly.

    The difference in audience behaviour isn’t just about the genre of music and the energy and culture that comes with it. It’s also about how the artist interacts with the crowd. Swift creates an atmosphere of excitement while maintaining a sense of order, often engaging the audience in a way that fosters respect for boundaries and safety.

    Swift has a strong track record of prioritising audience safety and wellbeing during her concerts.

    In many shows, she stopped to address issues such as heat exhaustion or crowd distress, by encouraging fans to stay hydrated and to look out for each other.

    At her Edinburgh show in June 2024, she paused the concert three separate times to assist fans who were struggling in the crowd.

    ‘Perceived contextual norms’ are at play

    Crowd psychology emphasises how individuals in large gatherings adjust behaviour based on the perceived norms of the group.

    The Social Identity Theory of crowds explains that people align their behaviour with the crowd’s collective identity.

    A shared social identity within a crowd increases the likelihood of people adopting collective norms – even if those norms encourage risk-taking. Perceived group norms can override personal caution in favour of behaviour that is seen as accepted or approved by the group.

    Based on these theories, leaders influence group behaviour by reinforcing collective identity and norms.

    In the case of music performers, artists can guide actions that align with the group’s sense of “us”. This can ultimately lead to shifts in behaviour towards safety or risk-taking.

    What now?

    The contrasting experiences between Scott’s and Swift’s concerts offers a crucial lesson in crowd management: the role of leadership and the norms set by performers.

    We need to rethink the roles of performers in crowd management. Artists such as Scott wield immense influence over crowd dynamics, and this power should be harnessed more consciously.

    The chaotic, high-energy nature of Scott’s performances is part of his identity. Fans attend his shows expecting that intensity.

    The key difference lies in how the artist can create a high-energy environment without compromising fan safety. Encouraging fans to disregard security is an example of where defiance can stretch too far. The line between excitement and chaos becomes blurred. The messaging needs to shift to maintaining intensity but within boundaries that safeguard the audience.

    Awareness around how crowd behaviour is influenced by artists and the group norms that they set can help walk the line between excitement and chaos.

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

    – ref. Chaotic scenes at Travis Scott’s Melbourne concert: what is the role of artists in crowd behaviour? – https://theconversation.com/chaotic-scenes-at-travis-scotts-melbourne-concert-what-is-the-role-of-artists-in-crowd-behaviour-242115

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI: FirstCash Reports Record Third Quarter Operating Results; Strength in U.S. Pawn Segment Drives Record Revenue and Earnings; Declares Quarterly Cash Dividend

    Source: GlobeNewswire (MIL-OSI)

    FORT WORTH, Texas, Oct. 24, 2024 (GLOBE NEWSWIRE) — FirstCash Holdings, Inc. (“FirstCash” or the “Company”) (Nasdaq: FCFS), the leading international operator of more than 3,000 retail pawn stores and a leading provider of retail point-of-sale (“POS”) payment solutions through American First Finance (“AFF”), today announced operating results for the three and nine month periods ended September 30, 2024. The Company also announced that the Board of Directors declared a quarterly cash dividend of $0.38 per share, which will be paid in November 2024.

    Mr. Rick Wessel, chief executive officer, stated, “FirstCash achieved record revenue and earnings results for both the third quarter and year-to-date periods. Impressive third quarter achievements also included a fifth consecutive quarter of double-digit growth in same-store pawn receivables for the U.S. pawn segment. The LatAm pawn segment also saw continued growth in local currency pawn revenues and receivables, while AFF recorded a 14% increase in third quarter gross origination volumes driven primarily by 25% growth in new merchant locations.

    “Expansion of retail pawn locations continues to be robust as well, with the opening of 16 new pawn stores in the third quarter and the combined opening and acquisition of 83 total stores during the first nine months of this year. Growth in the number of stores and earning assets, coupled with consistent shareholder returns through dividends and share repurchases, continue to be funded primarily through operating cash flows.”

    This release contains adjusted financial measures, which exclude certain non-operating and/or non-cash income and expenses, that are non-GAAP financial measures. Please refer to the descriptions and reconciliations to GAAP of these and other non-GAAP financial measures at the end of this release.

        Three Months Ended September 30,
        As Reported (GAAP)   Adjusted (Non-GAAP)
    In thousands, except per share amounts   2024   2023   2024   2023
    Revenue   $ 837,321   $ 786,301   $ 837,321   $ 786,301
    Net income   $ 64,827   $ 57,144   $ 75,179   $ 70,775
    Diluted earnings per share   $ 1.44   $ 1.26   $ 1.67   $ 1.56
    EBITDA (non-GAAP measure)   $ 138,134   $ 129,350   $ 139,278   $ 132,985
    Weighted-average diluted shares     44,970     45,374     44,970     45,374
        Nine Months Ended September 30,
        As Reported (GAAP)   Adjusted (Non-GAAP)
    In thousands, except per share amounts   2024   2023   2024   2023
    Revenue   $ 2,504,703   $ 2,299,662   $ 2,504,703   $ 2,299,662
    Net income   $ 175,268   $ 149,712   $ 207,266   $ 184,028
    Diluted earnings per share   $ 3.88   $ 3.27   $ 4.58   $ 4.02
    EBITDA (non-GAAP measure)   $ 388,372   $ 348,291   $ 392,752   $ 350,028
    Weighted-average diluted shares     45,214     45,747     45,214     45,747
                             

    Consolidated Operating Highlights

    • Gross revenues totaled $837 million in the third quarter, an increase of 6% on a U.S. dollar basis and 9% on a constant currency basis compared to the prior-year quarter. Year-to-date revenues totaled $2.5 billion, an increase of 9%, in both dollars and constant currency, compared to the prior-year period.
    • Diluted earnings per share for the third quarter increased 14% over the prior-year quarter on a GAAP basis while adjusted diluted earnings per share increased 7% compared to the prior-year quarter. Year-to-date diluted earnings per share increased 19% over the prior-year period on a GAAP basis while adjusted diluted earnings per share increased 14% compared to the prior-year period.
    • Net income for the third quarter increased 13% over the prior-year quarter on a GAAP basis while adjusted net income increased 6% compared to the prior-year quarter. Year-to-date, net income totaled $175 million on a GAAP basis while adjusted net income was $207 million. 
    • For the trailing twelve month period ended September 30, 2024:
      • Revenues totaled a record $3.4 billion
      • Net income totaled $245 million on a GAAP basis while adjusted net income was $300 million
      • Adjusted EBITDA was $554 million
      • Operating cash flows were $441 million and adjusted free cash flows were $217 million

    Store Base and Platform Growth

    • Pawn Stores – 16 new pawn locations were added in the third quarter through acquisitions and new store openings. Year-to-date through September 30, 2024, a total of 83 pawn locations have been added:
      • One U.S. store was acquired in Georgia during the third quarter. Year-to-date through September 30, 2024, a total of 29 new locations have opened or been acquired in the U.S.
      • There were 15 new store openings in Latin America in the third quarter which included 11 locations in Mexico and four locations in Guatemala. Year-to-date through September 30, 2024, a total of 54 new locations have opened in Latin America.
      • As of September 30, 2024, the Company had 3,025 locations, comprised of 1,201 U.S. locations and 1,824 locations in Latin America.
    • Retail POS Payment Solutions (AFF) Merchant Partnerships – At September 30, 2024, there were approximately 13,500 active retail and e-commerce merchant partner locations, representing a 25% increase in the number of active merchant locations compared to a year ago.

    U.S. Pawn Segment Operating Results

    • Segment pre-tax operating income in the third quarter of 2024 was a record $98 million, an increase of $14 million, or 16%, compared to the prior-year quarter. The resulting segment pre-tax operating margin was 25% for the third quarter of 2024 which is consistent with the margin for the prior-year quarter.
    • Year-to-date segment pre-tax operating income increased by $48 million, or 20%, compared to the prior-year period. The pre-tax operating margin increased to 25% for the year-to-date period, as compared to the 24% margin for the prior-year period.
    • Pawn receivables continued to grow to record levels, increasing 12% in total at September 30, 2024 compared to the prior year. The increase in total pawn receivables was driven by a 4% increase in the weighted-average U.S. store count coupled with an impressive 10% same-store increase. The same-store increase was driven by a 7% increase in average loan size and a 3% increase in the number of loans outstanding.
    • Pawn loan fees increased 13% for the third quarter and 18% year-to-date, while on a same-store basis, pawn loan fee revenue increased 8% for the quarter and 11% year-to-date compared to the respective prior-year periods. The increased pawn loan fee revenue reflected both store growth and continued growth in demand for pawn loans.
    • Retail merchandise sales increased 15% in the third quarter of 2024 compared to the prior-year quarter, while same-store retail sales increased 7% compared to the prior-year quarter.
    • Retail sales margins were 43% for the third quarter, improving sequentially over the second quarter and in-line with the prior-year margins. Year-to-date margins were 42% compared to 43% in the prior-year period.
    • Annualized inventory turnover was 2.8 times for the trailing twelve months ended September 30, 2024, which equaled the prior-year annualized inventory turnover. Inventories aged greater than one year at September 30, 2024 remained low at 2% of total inventories.
    • Operating expenses for the third quarter increased 12% in total due to the 4% weighted-average store count growth over the past year and increased same-store expenses of 6% compared to the prior-year period.

    Latin America Pawn Segment Operating Results

    Note: Certain growth rates below are calculated on a constant currency basis, a non-GAAP financial measure defined at the end of this release. The average Mexican peso to U.S. dollar exchange rate for the third quarter of 2024 was 18.9 pesos / dollar, an unfavorable change of 11% versus the comparable prior-year period, and for the nine month period ended September 30, 2024 was 17.7 pesos / dollar, a favorable change of 1% versus the prior-year period.

    • Third quarter segment pre-tax operating income totaled $38 million, a 6% decline on a U.S. dollar-basis compared to the prior year due primarily to an 11% decline in the Mexican peso exchange rate. On a constant currency basis, segment income increased 2% for the quarter. The resulting pre-tax operating margin was 19% compared to 20% in the prior-year quarter.
    • Year-to-date segment pre-tax operating income totaled $107 million, a 4% decline on a U.S. dollar-basis compared to the prior-year period due primarily to increased labor costs and store expansion expenses as described further below. The year-to-date pre-tax operating margin was 18% compared to 19% in the prior-year period.
    • While total and same-store pawn loan fees in the third quarter decreased 4% on a U.S. dollar-basis, they increased 6% on a constant currency basis compared to the prior-year quarter. Year-to-date pawn loan fees increased 7%, or 6% on a constant currency basis, compared to the prior-year period. Same-store pawn loan fees were up 6%, both in total and on a constant currency basis, compared to the prior year-to-date period.
    • While total and same-store receivables at September 30, 2024 were down 4% on a U.S. dollar basis, they increased 6% on a constant currency basis compared to the prior year.
    • Both total and same-store retail merchandise sales in the third quarter of 2024 decreased 3% on a U.S. dollar basis, but increased 7% on a constant currency basis compared to the prior-year quarter. Year-to-date retail merchandise sales increased 4% in total and on a constant currency basis while same-store retail merchandise sales increased 4%, or 3% on a constant currency basis.
    • Retail margins were 35% for the third quarter of 2024 compared to 36% in the prior-year quarter. Annualized inventory turnover was 4.2 times for the trailing twelve months ended September 30, 2024 compared to 4.3 times in the prior-year period. Inventories aged greater than one year at September 30, 2024 remained extremely low at 1%.
    • Operating expenses decreased 1% in total and 2% on a same-store basis compared to the prior-year quarter. On a constant currency basis, they increased 8% in total and on a same-store basis. The increase in constant currency expenses from all stores reflected increased store counts, accelerated store opening activity and higher labor costs (due primarily to further increases in the federal minimum wage and other mandated benefit programs), along with other inflationary impacts.

    American First Finance (AFF) – Retail POS Payment Solutions Segment Operating Results

    • Third quarter segment pre-tax operating income totaled $30 million compared to $39 million in the prior-year quarter, as a significant $35 million dollar increase in gross transaction origination volume over the same quarter last year drove an increase in up-front lifetime lease and loan loss provisioning of approximately $10 million.
    • Year-to-date segment pre-tax operating income totaled $89 million, a 1% increase over the prior-year period which was also generally consistent with year-to-date gross origination activity.
    • Segment revenues for the quarter, comprised of lease-to-own (“LTO”) fees and interest and fees on finance receivables, were flat compared to the prior-year quarter while increasing 4% year-to-date.
    • Gross transaction volume of lease and loan originations during the third quarter increased $35 million, or 14%, compared to last year, driven primarily by the 25% increase in active merchant door counts and continued growth in non-furniture verticals. Excluding furniture, third quarter origination volume increased approximately 35%. For the year-to-date period, overall gross transaction volume increased 5% over the same prior-year period and was up 23% excluding furniture.
    • Combined gross leased merchandise and finance receivables outstanding at September 30, 2024 increased 1% compared to the September 30, 2023 balances.
    • The combined lease and loan loss provision as a percentage of the total gross transaction volume originated was 28% for the third quarter of 2024, compared to the 29% provisioning rate in the third quarter of 2023. The resulting allowance on combined leased merchandise and finance receivables at September 30, 2024 was 44% of gross leased merchandise and receivables, which was consistent with the prior year.
    • The average monthly net charge-off (“NCO”) rate for combined leased merchandise and finance receivable products was 5.8% for the third quarter of 2024 and 5.2% for the year-to-date period. While slightly above the prior year, charge-offs remain within the range of forecast expectations.
    • Operating expenses were flat compared to the prior-year quarter and the year-to-date period, which was reflective of continued realization of operating synergies.

    Cash Flow and Liquidity

    • Each of the Company’s business segments generated significant operating cash flows during the twelve month period ended September 30, 2024. Consolidated operating cash flows for the twelve month period ended September 30, 2024 totaled $441 million and adjusted free cash flows (a non-GAAP measure) were $217 million.
    • The operating cash flows helped fund significant growth in earning assets and continued investments in the store platform over the past twelve months with a nominal increase in net debt:
      • A total of 36 pawn stores were acquired for a combined purchase price of $82 million.
      • 64 new, or de novo, pawn stores were added with a combined investment of $20 million in fixed assets and working capital.
      • Investments in real estate totaled $78 million as the Company purchased the underlying real estate at 63 of its existing pawn stores, bringing the number of owned properties to over 380 locations.
    • In August 2024, the Company amended its U.S. revolving commercial bank credit facility to increase the total lender commitment from $640 million to $700 million with two new banks added to the commercial bank lending group. The term of the facility was extended through August 8, 2029. In addition, the permitted consolidated leverage ratio was increased to 3.25 times adjusted EBITDA for the full term of the agreement, while the other financial covenants remain substantially unchanged.
    • Over $1.5 billion of the Company’s long-term financing remains fixed rate debt with favorable interest rates ranging from 4.625% to 6.875% and maturity dates that do not begin until 2028 and continue into 2032.
    • Based on trailing twelve month results, the net debt to adjusted EBITDA ratio was 2.96x at September 30, 2024.

    Shareholder Returns

    • The Board of Directors declared a $0.38 per share fourth quarter cash dividend, which will be paid on November 27, 2024 to stockholders of record as of November 15, 2024. This represents an annualized dividend of $1.52 per share. Any future dividends are subject to approval by the Company’s Board of Directors.
    • Year-to-date, the Company has repurchased $85 million of common stock. The Company has $115 million available under the $200 million share repurchase program authorized in July 2023. Future share repurchases are subject to expected liquidity, acquisitions and other investment opportunities, debt covenant restrictions, market conditions and other relevant factors.
    • The Company generated a 12% return on equity and a 6% return on assets for the twelve months ended September 30, 2024. Using adjusted net income for the twelve months ended September 30, 2024, the adjusted return on equity was 15% while the adjusted return on assets was 7%.

    2024 Outlook

    The outlook for the remainder of 2024 continues to be highly positive, with expected year-over-year growth in consolidated revenue and earnings driven by the continued growth in earning asset balances coupled with store additions. Anticipated conditions and trends for the fourth quarter include the following:

    Pawn Operations:

    • Pawn operations are expected to remain the primary earnings driver in 2024 as the Company expects segment income from the combined U.S. and Latin America pawn segments to be over 80% of total segment level pre-tax income for the full year.
    • The company is targeting the addition of approximately 90 total pawn locations for 2024 through a combination of new store openings and acquisitions.

    U.S. Pawn

    • Pawn receivables were up 12% at September 30, 2024 compared to a year ago, with October balances to date up similarly. Resulting pawn fees are expected to increase in the range of 10% to 12%.
    • Retail sales growth is expected to remain in-line with the inventory growth of 10% at the most recent quarter end while retail margins are projected to remain consistent with the year-to-date results.

    Latin America Pawn

    • Latin America results in the fourth quarter are expected to be negatively impacted by the lower exchange rate for the Mexican peso which has recently been in a range of 19 to 20 pesos per U.S. dollar.
    • Pawn loan growth to-date in October is up approximately 8% on a constant currency basis, although down 2% on a U.S. dollar basis as compared to the prior year assuming the current exchange rate. A similar result is projected for constant currency fourth quarter pawn fees.
    • Retail sales in Latin America are also expected to increase in-line with inventory growth of 9% on a constant currency basis and are expected to be roughly flat to the prior year on a U.S. dollar basis, assuming the current exchange rate, with consistent retail margins.

    Retail POS Payment Solutions (AFF) Operations:

    • While weakness in the macro furniture retail environment continues to negatively impact performance from many of its merchant retail partners in the furniture retail vertical, year-over-year growth in gross transaction volumes is still projected for the full year and fourth quarter of 2024, driven by increasing active merchant doors and further expansion of non-furniture verticals. Resulting full year gross revenues for 2024 are expected to remain at or above the prior-year level. AFF now expects furniture to account for less than 40% of 2024 originations compared to almost 50% in 2023.
    • The origination and revenue outlook takes into consideration the previously announced bankruptcy filing of Conn’s Home Plus which now assumes minimal originations from November 2024 forward from this merchant relationship.
    • Anticipated provision rates (combined provision for lease and loan losses as a percentage of the total gross transaction volume originated) are expected to range between 25% and 28% in the fourth quarter of the year.

    Interest Expense, Tax Rates and Currency:

    • Interest expense for the fourth quarter is expected to be consistent with the prior year.
    • The full year 2024 effective income tax rate under current tax codes in the U.S. and Latin America is expected to range from 24.5% to 25.5%.
    • Each full point change in the exchange rate of the Mexican peso represents an annual earnings impact of approximately $0.10 per share.

    Additional Commentary and Analysis   

    Mr. Wessel provided additional insights on the Company’s third quarter results and outlook for the remainder of 2024, “Our results continue to demonstrate strong fundamental product demand trends which we expect to drive future revenue and earnings growth.

    “The U.S. pawn segment again saw continued record levels of demand for pawn loans and record per store loan balances. The 10% growth in same-store pawn receivables is especially strong given that the comparative prior-year comp was 11%. On a stacked, two-year basis, same-store pawn loans are up 21% compared to the third quarter of 2022, illustrating tremendous, continued momentum in the business. Demand trends in October remain strong and we believe lending volumes should continue to also benefit from increased gold prices while our inventories are well positioned for the holiday sales season.

    “In Latin America, currency adjusted pawn receivables and pawn fees continued to show impressive growth in the third quarter, with further acceleration to date in October, while third quarter retail sales grew even faster. While the volatility of the Mexican peso slightly impacted third quarter earnings results by approximately $0.04 per share, there is minimal impact on cash flows as we continue to reinvest a large portion of our cash flows in Latin America. We believe in the long term opportunity for Latin America, driven by near-shore manufacturing expansion and the use of pawn loans being an integral part of the economy for our customer base.

    “Unit growth in both pawn segments remains exceptional. We have now added 83 stores this year and a total of 240 stores since the beginning of 2023. Looking ahead, we continue to see and evaluate expansion opportunities across markets in both the U.S. and Latin America.

    “AFF’s gross transaction volumes in the third quarter improved both sequentially and year-over-year (even when excluding Conn’s Home Plus third quarter closeout volume) with significant contributions from both new doors and expanding non-furniture verticals driven largely by robust productivity from our field sales channel. Excluding furniture, third quarter origination volume increased approximately 35%. This growth has led to a further decrease in large merchant concentration risk, with the largest merchant partner now representing approximately 12% of current total gross transaction volume. Additionally, combined lease and loan losses remain well within our target metrics while the combined reserve remains consistent at over 40% of the total portfolio.

    “All of FirstCash’s business segments continue to generate strong cash flows while its balance sheet remains highly liquid. Over 60% of pawn loans are collateralized with jewelry, which is primarily gold and very liquid, while almost 50% of retail inventories are comprised of jewelry that typically has the highest margins. Our balance sheet maintains favorable unsecured financing featuring long-dated maturities at attractive rates. Accordingly, we believe that we are well positioned to drive continued shareholder value through organic store growth, strategic acquisitions, dividends and share repurchases,” concluded Mr. Wessel.

    About FirstCash

    FirstCash is the leading international operator of pawn stores focused on serving cash and credit-constrained consumers. FirstCash’s more than 3,000 pawn stores in the U.S. and Latin America buy and sell a wide variety of jewelry, electronics, tools, appliances, sporting goods, musical instruments and other merchandise, and make small non-recourse pawn loans secured by pledged personal property. FirstCash’s pawn segments in the U.S. and Latin America currently account for approximately 80% of segment earnings, with the remainder provided by its wholly owned subsidiary, AFF, which provides lease-to-own and retail finance payment solutions for consumer goods and services.

    FirstCash is a component company in both the Standard & Poor’s MidCap 400 Index® and the Russell 2000 Index®. FirstCash’s common stock (ticker symbol “FCFS”) is traded on the Nasdaq, the creator of the world’s first electronic stock market. For additional information regarding FirstCash and the services it provides, visit FirstCash’s websites located at http://www.firstcash.com and http://www.americanfirstfinance.com.

    Forward-Looking Information     

    This release contains forward-looking statements about the business, financial condition, outlook and prospects of FirstCash Holdings, Inc. and its wholly owned subsidiaries (together, the “Company”), including the Company’s outlook for 2024. Forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, can be identified by the use of forward-looking terminology such as “outlook,” “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends,” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic,” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, guidance, expectations, outlook and future plans. Forward-looking statements can also be identified by the fact these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties.

    While the Company believes the expectations reflected in forward-looking statements are reasonable, there can be no assurances such expectations will prove to be accurate. Security holders are cautioned that such forward-looking statements involve risks and uncertainties. Certain factors may cause results to differ materially from those anticipated by the forward-looking statements made in this release. Such factors may include, without limitation, risks related to the extensive regulatory environment in which the Company operates; risks associated with the legal and regulatory proceedings that the Company is a party to or may become a party to in the future, including the Consumer Financial Protection Bureau (the “CFPB”) lawsuit filed against the Company; risks related to the Company’s acquisitions, including the failure of the Company’s acquisitions to deliver the estimated value and benefits expected by the Company and the ability of the Company to continue to identify and consummate acquisitions on favorable terms, if at all; potential changes in consumer behavior and shopping patterns which could impact demand for the Company’s pawn loan, retail, lease-to-own (“LTO”) and retail finance products; labor shortages and increased labor costs; a deterioration in the economic conditions in the United States and Latin America, including as a result of inflation, elevated interest rates and higher gas prices, which potentially could have an impact on discretionary consumer spending and demand for the Company’s products; currency fluctuations, primarily involving the Mexican peso; competition the Company faces from other retailers and providers of retail payment solutions; the ability of the Company to successfully execute on its business strategies; contraction in sales activity at merchant partners of the Company’s retail POS payment solutions business; impact of store closures, financial difficulties or even bankruptcies at the merchant partners of the Company’s retail POS payment solutions business; and other risks discussed and described in the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”), including the risks described in Part 1, Item 1A, “Risk Factors” thereof, and other reports filed with the SEC. Many of these risks and uncertainties are beyond the ability of the Company to control, nor can the Company predict, in many cases, all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. The forward-looking statements contained in this release speak only as of the date of this release, and the Company expressly disclaims any obligation or undertaking to report any updates or revisions to any such statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

    FIRSTCASH HOLDINGS, INC.
    CONSOLIDATED STATEMENTS OF INCOME
    (unaudited, in thousands)
     
      Three Months Ended   Nine Months Ended
      September 30,   September 30,
      2024   2023   2024   2023
    Revenue:              
    Retail merchandise sales $ 363,141     $ 335,081     $ 1,093,425     $ 983,860  
    Pawn loan fees   186,561       174,560       547,142       480,298  
    Leased merchandise income   188,560       189,382       588,801       562,625  
    Interest and fees on finance receivables   61,198       61,413       175,384       174,247  
    Wholesale scrap jewelry sales   37,861       25,865       99,951       98,632  
    Total revenue   837,321       786,301       2,504,703       2,299,662  
                   
    Cost of revenue:              
    Cost of retail merchandise sold   218,178       199,719       659,854       590,991  
    Depreciation of leased merchandise   104,928       103,698       335,369       307,824  
    Provision for lease losses   39,171       39,736       129,834       141,674  
    Provision for loan losses   40,557       33,096       102,091       90,571  
    Cost of wholesale scrap jewelry sold   29,880       21,405       81,711       79,012  
    Total cost of revenue   432,714       397,654       1,308,859       1,210,072  
                   
    Net revenue   404,607       388,647       1,195,844       1,089,590  
                   
    Expenses and other income:              
    Operating expenses   224,926       211,524       674,431       615,366  
    Administrative expenses   40,930       45,056       129,563       124,428  
    Depreciation and amortization   25,933       27,365       78,507       81,526  
    Interest expense   27,424       24,689       78,029       66,657  
    Interest income   (403 )     (328 )     (1,407 )     (1,253 )
    Loss (gain) on foreign exchange   882       (286 )     2,133       (1,905 )
    Merger and acquisition expenses   225       3,387       2,186       3,670  
    Other expenses (income), net   (490 )     (384 )     (841 )     (260 )
    Total expenses and other income   319,427       311,023       962,601       888,229  
                   
    Income before income taxes   85,180       77,624       233,243       201,361  
                   
    Provision for income taxes   20,353       20,480       57,975       51,649  
                   
    Net income $ 64,827     $ 57,144     $ 175,268     $ 149,712  
    FIRSTCASH HOLDINGS, INC.
    CONSOLIDATED BALANCE SHEETS
    (unaudited, in thousands)
     
      September 30,   December 31,
      2024   2023   2023
    ASSETS          
    Cash and cash equivalents $ 106,320     $ 86,547     $ 127,018  
    Accounts receivable, net   74,378       72,336       71,922  
    Pawn loans   517,877       483,785       471,846  
    Finance receivables, net   123,751       113,307       113,901  
    Inventories   334,394       314,382       312,089  
    Leased merchandise, net   137,769       143,169       171,191  
    Prepaid expenses and other current assets   34,861       21,114       38,634  
    Total current assets   1,329,350       1,234,640       1,306,601  
               
    Property and equipment, net   689,075       604,673       632,724  
    Operating lease right of use asset   329,228       312,097       328,458  
    Goodwill   1,788,795       1,713,354       1,727,652  
    Intangible assets, net   241,389       291,690       277,724  
    Other assets   10,339       10,057       10,242  
    Deferred tax assets, net   4,671       8,052       6,514  
    Total assets $ 4,392,847     $ 4,174,563     $ 4,289,915  
               
    LIABILITIES AND STOCKHOLDERS’ EQUITY          
    Accounts payable and accrued liabilities $ 133,792     $ 146,873     $ 163,050  
    Customer deposits and prepayments   78,083       71,752       70,580  
    Lease liability, current   96,598       98,745       101,962  
    Total current liabilities   308,473       317,370       335,592  
               
    Revolving unsecured credit facilities   200,000       560,229       568,000  
    Senior unsecured notes   1,530,604       1,037,151       1,037,647  
    Deferred tax liabilities, net   127,425       139,713       136,773  
    Lease liability, non-current   227,151       202,516       215,485  
    Total liabilities   2,393,653       2,256,979       2,293,497  
               
    Stockholders’ equity:          
    Common stock   575       573       573  
    Additional paid-in capital   1,764,351       1,737,497       1,741,046  
    Retained earnings   1,344,542       1,164,228       1,218,029  
    Accumulated other comprehensive loss   (114,807 )     (64,521 )     (43,037 )
    Common stock held in treasury, at cost   (995,467 )     (920,193 )     (920,193 )
    Total stockholders’ equity   1,999,194       1,917,584       1,996,418  
    Total liabilities and stockholders’ equity $ 4,392,847     $ 4,174,563     $ 4,289,915  
    FIRSTCASH HOLDINGS, INC.
    U.S. PAWN SEGMENT RESULTS
    (UNAUDITED)
     
    U.S. Pawn Operating Results and Margins (dollars in thousands)
     
      Three Months Ended        
      September 30,    
      2024   2023   Increase
    Revenue:                  
    Retail merchandise sales $ 235,037     $ 203,769       15 %  
    Pawn loan fees   128,393       114,022       13 %  
    Wholesale scrap jewelry sales   26,685       17,140       56 %  
    Total revenue   390,115       334,931       16 %  
                       
    Cost of revenue:                  
    Cost of retail merchandise sold   134,966       115,670       17 %  
    Cost of wholesale scrap jewelry sold   21,393       14,297       50 %  
    Total cost of revenue   156,359       129,967       20 %  
                       
    Net revenue   233,756       204,964       14 %  
                       
    Segment expenses:                  
    Operating expenses   128,104       113,976       12 %  
    Depreciation and amortization   7,365       6,586       12 %  
    Total segment expenses   135,469       120,562       12 %  
                       
    Segment pre-tax operating income $ 98,287     $ 84,402       16 %  
                       
    Operating metrics:                  
    Retail merchandise sales margin 43 %   43 %        
    Net revenue margin 60 %   61 %        
    Segment pre-tax operating margin 25 %   25 %        
    FIRSTCASH HOLDINGS, INC.
    U.S. PAWN SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
      Nine Months Ended        
      September 30,    
      2024   2023   Increase
    Revenue:                  
    Retail merchandise sales $ 702,120     $ 610,493       15 %  
    Pawn loan fees   371,699       315,679       18 %  
    Wholesale scrap jewelry sales   70,722       61,108       16 %  
    Total revenue   1,144,541       987,280       16 %  
                       
    Cost of revenue:                  
    Cost of retail merchandise sold   407,329       349,138       17 %  
    Cost of wholesale scrap jewelry sold   57,928       49,604       17 %  
    Total cost of revenue   465,257       398,742       17 %  
                       
    Net revenue   679,284       588,538       15 %  
                       
    Segment expenses:                  
    Operating expenses   372,191       331,916       12 %  
    Depreciation and amortization   21,609       18,786       15 %  
    Total segment expenses   393,800       350,702       12 %  
                       
    Segment pre-tax operating income $ 285,484     $ 237,836       20 %  
                       
    Operating metrics:                  
    Retail merchandise sales margin 42 %   43 %        
    Net revenue margin 59 %   60 %        
    Segment pre-tax operating margin 25 %   24 %        
    FIRSTCASH HOLDINGS, INC.
    U.S. PAWN SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
    U.S. Pawn Earning Assets and Portfolio Metrics (dollars in thousands, except as otherwise noted)
     
      As of September 30,    
      2024   2023   Increase
    Earning assets:                  
    Pawn loans $ 380,962     $ 341,123       12 %  
    Inventories   238,668       217,406       10 %  
      $ 619,630     $ 558,529       11 %  
                       
    Average outstanding pawn loan amount (in ones) $ 264     $ 245       8 %  
                       
    Composition of pawn collateral:                  
    General merchandise 30 %   31 %        
    Jewelry 70 %   69 %        
      100 %   100 %        
                       
    Composition of inventories:                  
    General merchandise 43 %   45 %        
    Jewelry 57 %   55 %        
      100 %   100 %        
                       
    Percentage of inventory aged greater than one year 2 %   1 %        
                       
    Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories) 2.8 times   2.8 times        
    FIRSTCASH HOLDINGS, INC.
    LATIN AMERICA PAWN SEGMENT RESULTS
    (UNAUDITED)
     
    Constant currency results are non-GAAP financial measures, which exclude the effects of foreign currency translation and are calculated by translating current-year results at prior-year average exchange rates. See the “Constant Currency Results” section below for additional discussion of constant currency operating results.
     
    Latin America Pawn Operating Results and Margins (dollars in thousands)
     
                          Constant Currency Basis
                          Three Months        
                    Ended        
        Three Months Ended           September 30,   Increase /
        September 30,   Increase /   2024   (Decrease)
        2024     2023   (Decrease)   (Non-GAAP)   (Non-GAAP)
    Revenue:                              
    Retail merchandise sales   $ 129,081       $ 132,784       (3 )%     $ 142,147       7 %  
    Pawn loan fees     58,168         60,538       (4 )%       64,130       6 %  
    Wholesale scrap jewelry sales     11,176         8,725       28 %       11,176       28 %  
    Total revenue     198,425         202,047       (2 )%       217,453       8 %  
                                   
    Cost of revenue:                              
    Cost of retail merchandise sold     83,729         84,816       (1 )%       92,131       9 %  
    Cost of wholesale scrap jewelry sold     8,487         7,108       19 %       9,378       32 %  
    Total cost of revenue     92,216         91,924       — %       101,509       10 %  
                                   
    Net revenue     106,209         110,123       (4 )%       115,944       5 %  
                                   
    Segment expenses:                              
    Operating expenses     63,062         63,907       (1 )%       69,199       8 %  
    Depreciation and amortization     4,676         5,236       (11 )%       5,117       (2 )%  
    Total segment expenses     67,738         69,143       (2 )%       74,316       7 %  
                                     
    Segment pre-tax operating income   $ 38,471       $ 40,980       (6 )%     $ 41,628       2 %  
                                   
    Operating metrics:                              
    Retail merchandise sales margin 35 %   36 %         35 %        
    Net revenue margin 54 %   55 %         53 %        
    Segment pre-tax operating margin 19 %   20 %         19 %        
    FIRSTCASH HOLDINGS, INC.
    LATIN AMERICA PAWN SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
                          Constant Currency Basis
                          Nine Months        
                    Ended        
        Nine Months Ended           September 30,   Increase /
        September 30,   Increase /    2024   (Decrease)
         2024      2023   (Decrease)   (Non-GAAP)   (Non-GAAP)
    Revenue:                              
    Retail merchandise sales   $ 394,375       $ 378,302       4 %     $ 391,606       4 %  
    Pawn loan fees     175,443         164,619       7 %       174,228       6 %  
    Wholesale scrap jewelry sales     29,229         37,524       (22 )%       29,229       (22 )%  
    Total revenue     599,047         580,445       3 %       595,063       3 %  
                                   
    Cost of revenue:                              
    Cost of retail merchandise sold     254,188         244,439       4 %       252,377       3 %  
    Cost of wholesale scrap jewelry sold     23,783         29,408       (19 )%       23,627       (20 )%  
    Total cost of revenue     277,971         273,847       2 %       276,004       1 %  
                                   
    Net revenue     321,076         306,598       5 %       319,059       4 %  
                                   
    Segment expenses:                              
    Operating expenses     198,389         179,170       11 %       196,986       10 %  
    Depreciation and amortization     15,199         15,884       (4 )%       15,072       (5 )%  
    Total segment expenses     213,588         195,054       10 %       212,058       9 %  
                                   
    Segment pre-tax operating income   $ 107,488       $ 111,544       (4 )%     $ 107,001       (4 )%  
                                   
    Operating metrics:                              
    Retail merchandise sales margin 36 %   35 %         36 %        
    Net revenue margin 54 %   53 %         54 %        
    Segment pre-tax operating margin 18 %   19 %         18 %        
    FIRSTCASH HOLDINGS, INC.
    LATIN AMERICA PAWN SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
    Latin America Pawn Earning Assets and Portfolio Metrics (dollars in thousands, except as otherwise noted)
     
                          Constant Currency Basis
                          As of        
                          September 30,    
      As of September 30,       2024   Increase
      2024   2023   (Decrease)   (Non-GAAP)   (Non-GAAP)
    Earning assets:                              
    Pawn loans $ 136,915     $ 142,662       (4 )%   $ 151,486     6 %  
    Inventories   95,726       96,976       (1 )%     105,792     9 %  
      $ 232,641     $ 239,638       (3 )%   $ 257,278     7 %  
                                   
    Average outstanding pawn loan amount (in ones) $ 85     $ 89       (4 )%   $ 94     6 %  
                                   
    Composition of pawn collateral:                              
    General merchandise 62 %   66 %                    
    Jewelry 38 %   34 %                    
      100 %   100 %                    
                                   
    Composition of inventories:                              
    General merchandise 70 %   68 %                    
    Jewelry 30 %   32 %                    
      100 %   100 %                    
                                   
    Percentage of inventory aged greater than one year 1 %   1 %                    
                                   
    Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories) 4.2 times   4.3 times                    
    FIRSTCASH HOLDINGS, INC.
    RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS
    (UNAUDITED)
     
    Retail POS Payment Solutions Operating Results (dollars in thousands)
     
      Three Months Ended        
      September 30,   Increase /
      2024   2023   (Decrease)
    Revenue:              
    Leased merchandise income $ 188,560   $ 189,382     — %  
    Interest and fees on finance receivables   61,198     61,413     — %  
    Total revenue   249,758     250,795     — %  
                   
    Cost of revenue:              
    Depreciation of leased merchandise   105,308     104,198     1 %  
    Provision for lease losses   39,268     39,640     (1 )%  
    Provision for loan losses   40,557     33,096     23 %  
    Total cost of revenue   185,133     176,934     5 %  
                   
    Net revenue   64,625     73,861     (13 )%  
                   
    Segment expenses:              
    Operating expenses   33,760     33,641     — %  
    Depreciation and amortization   679     771     (12 )%  
    Total segment expenses   34,439     34,412     — %  
                   
    Segment pre-tax operating income $ 30,186   $ 39,449     (23 )%  
    FIRSTCASH HOLDINGS, INC.
    RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
      Nine Months Ended        
      September 30,   Increase /
      2024   2023   (Decrease)
    Revenue:              
    Leased merchandise income $ 588,801   $ 562,625     5 %  
    Interest and fees on finance receivables   175,384     174,247     1 %  
    Total revenue   764,185     736,872     4 %  
                   
    Cost of revenue:              
    Depreciation of leased merchandise   336,649     309,432     9 %  
    Provision for lease losses   130,272     141,854     (8 )%  
    Provision for loan losses   102,091     90,571     13 %  
    Total cost of revenue   569,012     541,857     5 %  
                   
    Net revenue   195,173     195,015     — %  
                   
    Segment expenses:              
    Operating expenses   103,851     104,280     — %  
    Depreciation and amortization   2,078     2,258     (8 )%  
    Total segment expenses   105,929     106,538     (1 )%  
                   
    Segment pre-tax operating income $ 89,244   $ 88,477     1 %  
    FIRSTCASH HOLDINGS, INC.
    RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
    Retail POS Payment Solutions Gross Transaction Volumes (dollars in thousands)
     
      Three Months Ended        
      September 30,   Increase /
      2024   2023   (Decrease)
    Leased merchandise $ 143,146   $ 147,513     (3 )%  
    Finance receivables   142,910     103,183     39 %  
    Total gross transaction volume $ 286,056   $ 250,696     14 %  
                   
                   
      Nine Months Ended        
      September 30,   Increase /
      2024   2023   (Decrease)
    Leased merchandise $ 444,045   $ 452,792     (2 )%  
    Finance receivables   350,332     303,485     15 %  
    Total gross transaction volume $ 794,377   $ 756,277     5 %  
    Retail POS Payment Solutions Earning Assets (dollars in thousands)
     
      As of September 30,   Increase /
      2024   2023   (Decrease)
    Leased merchandise, net:              
    Leased merchandise, before allowance for lease losses $ 231,796     $ 250,298       (7 )%  
    Less allowance for lease losses   (93,823 )     (105,472 )     (11 )%  
    Leased merchandise, net $ 137,973     $ 144,826       (5 )%  
                   
    Finance receivables, net:              
    Finance receivables, before allowance for loan losses $ 232,948     $ 209,991       11 %  
    Less allowance for loan losses   (109,197 )     (96,684 )     13 %  
    Finance receivables, net $ 123,751     $ 113,307       9 %  
    FIRSTCASH HOLDINGS, INC.
    RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
    Allowance for Lease and Loan Losses and Other Portfolio Metrics (dollars in thousands)
     
      Three Months Ended        
      September 30,   Increase /
        2024     2023   (Decrease)
    Allowance for lease losses:                  
    Balance at beginning of period   $ 103,301       $ 110,964       (7 )%  
    Provision for lease losses     39,268         39,640       (1 )%  
    Charge-offs     (50,394 )       (46,794 )     8 %  
    Recoveries     1,648         1,662       (1 )%  
    Balance at end of period   $ 93,823       $ 105,472       (11 )%  
                       
    Leased merchandise portfolio metrics:                  
    Provision rate(1) 27 %   27 %        
    Average monthly net charge-off rate(2) 6.8 %   5.9 %        
    Delinquency rate(3) 23.6 %   23.2 %        
                       
    Allowance for loan losses:                  
    Balance at beginning of period   $ 99,961       $ 93,054       7 %  
    Provision for loan losses     40,557         33,096       23 %  
    Charge-offs     (32,969 )       (30,890 )     7 %  
    Recoveries     1,648         1,424       16 %  
    Balance at end of period   $ 109,197       $ 96,684       13 %  
                       
    Finance receivables portfolio metrics:                  
    Provision rate(1) 28 %   32 %        
    Average monthly net charge-off rate(2) 4.8 %   4.7 %        
    Delinquency rate(3) 19.4 %   21.9 %        

    (1)   Calculated as provision for lease or loan losses as a percentage of the respective gross transaction volume originated.
    (2)   Calculated as charge-offs, net of recoveries, as a percentage of the respective average earning asset balance before allowance for lease or loan losses.
    (3)   Calculated as the percentage of the respective contractual earning asset balance owed that is 1 to 89 days past due (the Company charges off leases and finance receivables when they are 90 days or more contractually past due).

    FIRSTCASH HOLDINGS, INC.
    RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
      Nine Months Ended        
      September 30,   Increase /
        2024     2023   (Decrease)
    Allowance for lease losses:                  
    Balance at beginning of period   $ 95,752       $ 79,576       20 %  
    Provision for lease losses     130,272         141,854       (8 )%  
    Charge-offs     (137,516 )       (120,966 )     14 %  
    Recoveries     5,315         5,008       6 %  
    Balance at end of period   $ 93,823       $ 105,472       (11 )%  
                       
    Leased merchandise portfolio metrics:                  
    Provision rate(1) 29 %   31 %        
    Average monthly net charge-off rate(2) 5.9 %   5.3 %        
    Delinquency rate(3) 23.6 %   23.2 %        
                       
    Allowance for loan losses:                  
    Balance at beginning of period   $ 96,454       $ 84,833       14 %  
    Provision for loan losses     102,091         90,571       13 %  
    Charge-offs     (95,061 )       (83,281 )     14 %  
    Recoveries     5,713         4,561       25 %  
    Balance at end of period   $ 109,197       $ 96,684       13 %  
                       
    Finance receivables portfolio metrics:                  
    Provision rate(1) 29 %   30 %        
    Average monthly net charge-off rate(2) 4.5 %   4.4 %        
    Delinquency rate(3) 19.4 %   21.9 %        

    (1)   Calculated as provision for lease or loan losses as a percentage of the respective gross transaction volume originated.
    (2)   Calculated as charge-offs, net of recoveries, as a percentage of the respective average earning asset balance before allowance for lease or loan losses.
    (3)   Calculated as the percentage of the respective contractual earning asset balance owed that is 1 to 89 days past due (the Company charges off leases and finance receivables when they are 90 days or more contractually past due).

    FIRSTCASH HOLDINGS, INC.
    PAWN STORE LOCATIONS AND MERCHANT PARTNER LOCATIONS
     
    Pawn Operations
     
    As of September 30, 2024, the Company operated 3,025 pawn store locations composed of 1,201 stores in 29 U.S. states and the District of Columbia, 1,723 stores in 32 states in Mexico, 72 stores in Guatemala, 17 stores in El Salvador and 12 stores in Colombia.
     
    The following tables detail pawn store count activity for the three and nine months ended September 30, 2024:
     
      Three Months Ended September 30, 2024
      U.S.   Latin America   Total
    Total locations, beginning of period 1,201     1,817     3,018  
    New locations opened(1) —     15     15  
    Locations acquired 1     —     1  
    Consolidation of existing pawn locations(2) (1 )   (8 )   (9 )
    Total locations, end of period 1,201     1,824     3,025  
               
               
      Nine Months Ended September 30, 2024
      U.S.   Latin America   Total
    Total locations, beginning of period 1,183     1,814     2,997  
    New locations opened(1) 1     54     55  
    Locations acquired 28     —     28  
    Consolidation of existing pawn locations(2) (3) (11 )   (44 )   (55 )
    Total locations, end of period 1,201     1,824     3,025  

    (1)   In addition to new store openings, the Company strategically relocated three stores in the U.S. and one store in Latin America during the three months ended September 30, 2024. During the nine months ended September 30, 2024, the Company strategically relocated nine stores in the U.S and one store in Latin America.
    (2)   Store consolidations were primarily acquired locations which have been combined with overlapping stores and for which the Company expects to maintain a significant portion of the acquired customer base in the consolidated location.
    (3)   Includes 10 pawnshops located in Acapulco, Mexico that were severely damaged by a hurricane in the fall of 2023 which the Company elected to consolidate with other stores in this market. The Company expects to replace certain of these locations in this market over time as the city’s infrastructure recovers.

    Retail POS Payment Solutions

    As of September 30, 2024, AFF provided LTO and retail POS payment solutions for consumer goods and services through a network of approximately 13,500 active retail merchant partner locations located in all 50 U.S. states, the District of Columbia and Puerto Rico. This compares to the active door count of approximately 10,800 locations at September 30, 2023.

    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES
    (UNAUDITED)
     

    The Company uses certain financial calculations such as adjusted net income, adjusted diluted earnings per share, EBITDA, adjusted EBITDA, free cash flow, adjusted free cash flow, adjusted return on equity, adjusted return on assets and constant currency results as factors in the measurement and evaluation of the Company’s operating performance and period-over-period growth. The Company derives these financial calculations on the basis of methodologies other than generally accepted accounting principles (“GAAP”), primarily by excluding from a comparable GAAP measure certain items the Company does not consider to be representative of its actual operating performance. These financial calculations are “non-GAAP financial measures” as defined under the SEC rules. The Company uses these non-GAAP financial measures in operating its business because management believes they are less susceptible to variances in actual operating performance that can result from the excluded items, other infrequent charges and currency fluctuations. The Company presents these financial measures to investors because management believes they are useful to investors in evaluating the primary factors that drive the Company’s core operating performance and provide greater transparency into the Company’s results of operations. However, items that are excluded and other adjustments and assumptions that are made in calculating these non-GAAP financial measures are significant components in understanding and assessing the Company’s financial performance. These non-GAAP financial measures should be evaluated in conjunction with, and are not a substitute for, the Company’s GAAP financial measures. Further, because these non-GAAP financial measures are not determined in accordance with GAAP, and are thus susceptible to varying calculations, the non-GAAP financial measures, as presented, may not be comparable to other similarly-titled measures of other companies.

    While acquisitions are an important part of the Company’s overall strategy, the Company has adjusted the applicable financial calculations to exclude merger and acquisition expenses and amortization of acquired AFF intangible assets. The Company does not consider these items to be related to the organic operations of the acquired businesses or its continuing operations and are generally not relevant to assessing or estimating the long-term performance of the acquired businesses. In addition, excluding these items allows for more accurate comparisons of the financial results to prior periods. Merger and acquisition expenses include incremental costs directly associated with merger and acquisition activities, including professional fees, legal expenses, severance, retention and other employee-related costs, contract breakage costs and costs related to the consolidation of technology systems and corporate facilities, among others.

    The Company has certain leases in Mexico which are denominated in U.S. dollars. The lease liability of these U.S. dollar-denominated leases, which is considered a monetary liability, is remeasured into Mexican pesos using current period exchange rates, resulting in the recognition of foreign currency exchange gains or losses. The Company has adjusted the applicable financial measures to exclude these remeasurement gains or losses (i) because they are non-cash, non-operating items that could create volatility in the Company’s consolidated results of operations due to the magnitude of the end of period lease liability being remeasured and (ii) to improve comparability of current periods presented with prior periods.

    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES (CONTINUED)
    (UNAUDITED)
     

    Adjusted Net Income and Adjusted Diluted Earnings Per Share

    Management believes the presentation of adjusted net income and adjusted diluted earnings per share provides investors with greater transparency and provides a more complete understanding of the Company’s financial performance and prospects for the future by excluding items that management believes are non-operating in nature and are not representative of the Company’s core operating performance. In addition, management believes the adjustments shown below are useful to investors in order to allow them to compare the Company’s financial results for the current periods presented with the prior periods presented.

    The following tables provide a reconciliation between net income and diluted earnings per share calculated in accordance with GAAP to adjusted net income and adjusted diluted earnings per share, which are shown net of tax (in thousands, except per share amounts):

                      Trailing Twelve
      Three Months Ended   Nine Months Ended Months Ended
      September 30,   September 30, September 30,
      2024
    		 2023 2024
    		 2023 2024
    		 2023
      In Thousands   In Thousands   In Thousands   In Thousands   In Thousands   In Thousands
    Net income, as reported $ 64,827     $ 57,144     $ 175,268     $ 149,712     $ 244,857     $ 229,778  
    Adjustments, net of tax:                      
    Merger and acquisition expenses   171       2,605       1,675       2,818       4,946       4,379  
    Non-cash foreign currency loss (gain) related to lease liability   986       442       2,124       (1,171 )     1,517       (1,856 )
    AFF purchase accounting and other adjustments   9,572       10,880       28,717       32,869       50,189       50,529  
    Gain on revaluation of contingent acquisition consideration   —       —       —       —       —       (21,952 )
    Other expenses (income), net   (377 )     (296 )     (518 )     (200 )     (1,397 )     (208 )
    Adjusted net income $ 75,179     $ 70,775     $ 207,266     $ 184,028     $ 300,112     $ 260,670  
    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES (CONTINUED)
    (UNAUDITED)
                   
      Three Months Ended   Nine Months Ended
      September 30,   September 30,
      2024   2023   2024   2023
      Per Share   Per Share   Per Share   Per Share
    Diluted earnings per share, as reported $ 1.44     $ 1.26     $ 3.88     $ 3.27  
    Adjustments, net of tax:              
    Merger and acquisition expenses   0.01       0.06       0.04       0.06  
    Non-cash foreign currency loss (gain) related to lease liability   0.02       0.01       0.05       (0.03 )
    AFF purchase accounting and other adjustments   0.21       0.24       0.63       0.72  
    Other expenses (income), net   (0.01 )     (0.01 )     (0.02 )     —  
    Adjusted diluted earnings per share $ 1.67     $ 1.56     $ 4.58     $ 4.02  
    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES (CONTINUED)
    (UNAUDITED)
     

    Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA

    The Company defines EBITDA as net income before income taxes, depreciation and amortization, interest expense and interest income and adjusted EBITDA as EBITDA adjusted for certain items, as listed below, that management considers to be non-operating in nature and not representative of its actual operating performance. The Company believes EBITDA and adjusted EBITDA are commonly used by investors to assess a company’s financial performance, and adjusted EBITDA is used as a starting point in the calculation of the consolidated total debt ratio as defined in the Company’s senior unsecured notes. The following table provides a reconciliation of net income to EBITDA and adjusted EBITDA (in thousands):

                Trailing Twelve
        Three Months Ended   Nine Months Ended   Months Ended
        September 30,   September 30,   September 30,
        2024   2023   2024   2023   2024   2023
    Net income   $ 64,827     $ 57,144     $ 175,268     $ 149,712     $ 244,857     $ 229,778  
    Income taxes     20,353       20,480       57,975       51,649       79,874       73,189  
    Depreciation and amortization     25,933       27,365       78,507       81,526       106,142       107,863  
    Interest expense     27,424       24,689       78,029       66,657       104,615       86,616  
    Interest income     (403 )     (328 )     (1,407 )     (1,253 )     (1,623 )     (1,462 )
    EBITDA     138,134       129,350       388,372       348,291       533,865       495,984  
    Adjustments:                                    
    Merger and acquisition expenses     225       3,387       2,186       3,670       6,438       5,697  
    Non-cash foreign currency loss (gain) related to lease liability     1,409       632       3,035       (1,673 )     2,168       (2,652 )
    AFF purchase accounting and other adjustments(1)     —       —       —       —       13,968       8,760  
    Gain on revaluation of contingent acquisition consideration     —       —       —       —       —       (26,760 )
    Other expenses (income), net     (490 )     (384 )     (841 )     (260 )     (1,983 )     (270 )
    Adjusted EBITDA   $ 139,278     $ 132,985     $ 392,752     $ 350,028     $ 554,456     $ 480,759  
    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES (CONTINUED)
    (UNAUDITED)
     

    (1)   The following table details AFF purchase accounting and other adjustments for the trailing twelve months ended September 30, 2024 and 2023 (in thousands):

      Trailing Twelve
      Months Ended
      September 30,
      2024   2023
    Amortization of fair value adjustment on acquired finance receivables included in interest and fees on finance receivables $ —   $ 7,859
    Amortization of fair value adjustment on acquired leased merchandise included in depreciation of leased merchandise   —     901
    Other non-recurring costs included in administrative expenses related to a discontinued finance product   13,968     —
      $ 13,968   $ 8,760
    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES (CONTINUED)
    (UNAUDITED)
     

    Free Cash Flow and Adjusted Free Cash Flow

    For purposes of its internal liquidity assessments, the Company considers free cash flow and adjusted free cash flow. The Company defines free cash flow as cash flow from operating activities less purchases of furniture, fixtures, equipment and improvements and net fundings/repayments of pawn loan and finance receivables, which are considered to be operating in nature by the Company but are included in cash flow from investing activities. Adjusted free cash flow is defined as free cash flow adjusted for merger and acquisition expenses paid that management considers to be non-operating in nature.

    Free cash flow and adjusted free cash flow are commonly used by investors as additional measures of cash generated by business operations that may be used to repay scheduled debt maturities and debt service or, following payment of such debt obligations and other non-discretionary items, that may be available to invest in future growth through new business development activities or acquisitions, repurchase stock, pay cash dividends or repay debt obligations prior to their maturities. These metrics can also be used to evaluate the Company’s ability to generate cash flow from business operations and the impact that this cash flow has on the Company’s liquidity. However, free cash flow and adjusted free cash flow have limitations as analytical tools and should not be considered in isolation or as a substitute for cash flow from operating activities or other income statement data prepared in accordance with GAAP. The following table reconciles cash flow from operating activities to free cash flow and adjusted free cash flow (in thousands):

                        Trailing Twelve
        Three Months Ended   Nine Months Ended   Months Ended
        September 30,   September 30,   September 30,
        2024   2023   2024   2023   2024   2023
    Cash flow from operating activities   $ 113,090     $ 111,368     $ 341,809     $ 317,037     $ 440,914     $ 460,544  
    Cash flow from certain investing activities:                        
    Pawn loans, net(1)     (48,836 )     (59,614 )     (69,723 )     (59,426 )     (45,275 )     (20,536 )
    Finance receivables, net     (48,623 )     (30,869 )     (86,186 )     (87,994 )     (113,634 )     (123,713 )
    Purchases of furniture, fixtures, equipment and improvements     (13,368 )     (18,375 )     (56,032 )     (46,723 )     (69,457 )     (52,679 )
    Free cash flow     2,263       2,510       129,868       122,894       212,548       263,616  
    Merger and acquisition expenses paid, net of tax benefit     171       2,605       1,675       2,818       4,946       4,379  
    Adjusted free cash flow   $ 2,434     $ 5,115     $ 131,543     $ 125,712     $ 217,494     $ 267,995  

    (1)   Includes the funding of new loans net of cash repayments and recovery of principal through the sale of inventories acquired from forfeiture of pawn collateral.

    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES (CONTINUED)
    (UNAUDITED)
     

    Adjusted Return on Equity and Adjusted Return on Assets

    Management believes the presentation of adjusted return on equity and adjusted return on assets provides investors with greater transparency and provides a more complete understanding of the Company’s financial performance by excluding items that management believes are non-operating in nature and not representative of the Company’s core operating performance.

    Annualized adjusted return on equity and adjusted return on assets is calculated as follows (dollars in thousands):

      Trailing Twelve
      Months Ended
      September 30, 2024
    Adjusted net income(1) $ 300,112  
         
    Average stockholders’ equity (average of five most recent quarter-end balances) $ 1,987,405  
    Adjusted return on equity (trailing twelve months adjusted net income divided by average equity) 15 %
         
    Average total assets (average of five most recent quarter-end balances) $ 4,285,437  
    Adjusted return on assets (trailing twelve months adjusted net income divided by average total assets) 7 %

    (1)   See detail of adjustments to net income in the “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section above.

    Constant Currency Results

    The Company’s reporting currency is the U.S. dollar, however, certain performance metrics discussed in this release are presented on a “constant currency” basis, which is considered a non-GAAP financial measure. The Company’s management uses constant currency results to evaluate operating results of business operations in Latin America, which are transacted in local currencies in Mexico, Guatemala and Colombia. The Company also has operations in El Salvador, where the reporting and functional currency is the U.S. dollar.

    The Company believes constant currency results provide valuable supplemental information regarding the underlying performance of its business operations in Latin America, consistent with how the Company’s management evaluates such performance and operating results. Constant currency results reported herein are calculated by translating certain balance sheet and income statement items denominated in local currencies using the exchange rate from the prior-year comparable period, as opposed to the current comparable period, in order to exclude the effects of foreign currency rate fluctuations for purposes of evaluating period-over-period comparisons. See the Latin America pawn segment tables elsewhere in this release for an additional reconciliation of certain constant currency amounts to as reported GAAP amounts.

    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES (CONTINUED)
    (UNAUDITED)
     
    Exchange Rates for the Mexican Peso, Guatemalan Quetzal and Colombian Peso
     
      September 30,   Favorable /
      2024   2023   (Unfavorable)
    Mexican peso / U.S. dollar exchange rate:              
    End-of-period 19.6   17.6     (11 )%  
    Three months ended 18.9   17.1     (11 )%  
    Nine months ended 17.7   17.8     1 %  
                   
    Guatemalan quetzal / U.S. dollar exchange rate:              
    End-of-period 7.7   7.9     3 %  
    Three months ended 7.7   7.9     3 %  
    Nine months ended 7.8   7.8     — %  
                   
    Colombian peso / U.S. dollar exchange rate:              
    End-of-period 4,164   4,054     (3 )%  
    Three months ended 4,095   4,048     (1 )%  
    Nine months ended 3,979   4,413     10 %  
                     
    FIRSTCASH HOLDINGS, INC.
    INTERSEGMENT TRANSACTIONS
    (UNAUDITED)
     

    Intersegment transactions relate to the Company offering AFF’s LTO payment solution in its U.S. pawn stores and are eliminated to arrive at consolidated totals. For the three months ended September 30, 2024 and 2023, these intersegment amounts are as follows:

    • U.S. pawn retail merchandise sales includes $1.0 million and $1.5 million, respectively. Excluding these intersegment sales, consolidated U.S. retail merchandise sales totaled $234.1 million and $202.3 million, respectively.
    • U.S. pawn cost of retail merchandise sold includes $0.5 million and $0.8 million, respectively. Excluding these intersegment sales, consolidated U.S. cost of retail merchandise sold totaled $134.4 million and $114.9 million, respectively.
    • Retail POS payment solutions depreciation of leased merchandise includes $0.4 million and $0.5 million respectively. Excluding these intersegment transactions, consolidated depreciation of leased merchandise totaled $104.9 million and $103.7 million, respectively.
    • Retail POS payment solutions provision for lease losses includes an increase of $0.1 million and a provision reduction of $0.1 million, respectively. Excluding these intersegment transactions, consolidated provision for lease losses totaled $39.2 million and $39.7 million, respectively.

    For the nine months ended September 30, 2024 and 2023, these intersegment amounts are as follows:

    • U.S. pawn retail merchandise sales includes $3.1 million and $4.9 million, respectively. Excluding these intersegment sales, consolidated U.S. retail merchandise sales totaled $699.1 million and $605.6 million, respectively.
    • U.S. pawn cost of retail merchandise sold includes $1.7 million and $2.6 million, respectively. Excluding these intersegment sales, consolidated U.S. cost of retail merchandise sold totaled $405.7 million and $346.6 million, respectively.
    • Retail POS payment solutions depreciation of leased merchandise includes $1.3 million and $1.6 million, respectively. Excluding these intersegment transactions, consolidated depreciation of leased merchandise totaled $335.4 million and $307.8 million, respectively.
    • Retail POS payment solutions provision for lease losses includes $0.4 million and $0.2 million, respectively. Excluding these intersegment transactions, consolidated provision for lease losses totaled $129.8 million and $141.7 million, respectively.

    As of September 30, 2024 and 2023, these intersegment amounts are as follows:

    • Retail POS payment solutions leased merchandise, net includes $0.2 million and $1.7 million, respectively. Excluding these intersegment transactions, consolidated net leased merchandise totaled $137.8 million and $143.2 million, respectively.

    The MIL Network –

  • MIL-OSI United Kingdom: Carols in the Chamber 2024

    Source: City of Preston

    This December, the Council’s Chamber will come alive with the sound of Christmas as the Mayor of Preston hosts the annual ‘Carols in the Chamber’.

    On Wednesday, 4 December, members of the community are invited to join the Mayor, civic leaders and Preston Gilbert and Sullivan Society, at Preston Town Hall for a heartwarming evening of traditional carols.

    Preston Gilbert and Sullivan Society will lead the audience in singing Christmas classics such as O Little Town of Bethlehem, Away in a Manger, Joy to the World, Hark the Herald Angels Sing, and Silent Night.

    Councillor Phil Crowe, Mayor of Preston, said:

    “This is a tradition that dates back many years, and I’m privileged to host this event once again. I look forward to welcoming the community for an evening of festivities and joyful singing.

    The money raised from the event will be going to my chosen charities which I am proud to support and all do fantastic work in their communities.”

    The evening will begin with a festive reception at 6:30pm, featuring complimentary mince pies and drink. Carols will commence at 7pm.

    Tickets for the evening cost £10, with all proceeds from the event going to the Mayor’s chosen charities:

    • Let’s Grow Preston
    • Disability Equality Northwest
    • Furniture for Education Worldwide.

    For tickets, please email The Mayor on themayor@preston.gov.uk, by 15 November 2024.

    Join us for an evening of music, community, and festive spirit, all in support of these causes.

    MIL OSI United Kingdom –

  • MIL-OSI: Legible Announces $2.1 Million Private Placement Unit Offering and Appointment of Chief Technology Officer

    Source: GlobeNewswire (MIL-OSI)

    VANCOUVER, British Columbia, Oct. 24, 2024 (GLOBE NEWSWIRE) — Legible Inc. (CSE: READ) (OTCQB: LEBGF) (FSE: D0T) (“Legible or “the Company”), a leading platform and innovator in digital literature, announces an offering of units (“Units”) for gross proceeds of $2,100,000 by way of a non-brokered private placement (the “Offering”) pursuant to exemptions from applicable securities laws. Each Unit consists of one common share (“Common Share(s)”) and one whole Common Share purchase warrant (“Warrant(s)”) with each Warrant entitling the holder to acquire 1 Common Share at a price of $0.14, at any time prior to 5:00 pm (PST) on the date that is two years from the closing date. If the volume weighted average trading price of the Common shares is at least $0.40 per Common Share for a period of 5 consecutive trading days, the expiry date of the Warrants may be accelerated by the Company to a date that is not less than 14 days after the date that notice of such acceleration is provided to the Warrant holders by way of a press release.

    The Company has received subscription agreements totaling $1.7 Million. Closing may occur in tranches, with the first tranche expected to close on or about October 31, 2024.

    Legible is also pleased to announce the appointment of Mr. Andrew Nelson to the position of Chief Technology Officer. Mr. Nelson is a Senior Software Engineer who brings nearly 20 years of experience in a wide array of technological and business development roles spanning a wide array of industries, having held a number of senior positions. Prior to Mr. Nelson’s appointment as Legible’s CTO, Mr. Nelson held the position of Director of Technology at Legible as of January 2024. Mr. Nelson’s proficiencies in software development, web design, cybersecurity, data analytics, organizational planning, and product development have helped companies create and implement scalable, customer-focused solutions to drive business growth and brand recognition. Mr. Nelson also has extensive executive and board experience.

    Andrew Nelson stated, “I’m incredibly grateful to take on this leadership role at Legible, a company with such a positive mission to revolutionize how people read and interact with digital literature. Our technology roadmap is centered around creating personalized, accessible, and intuitive experiences that seamlessly integrate into everyday life. As CTO, I’m committed to ensuring that our product innovation and leadership align fully with Legible’s mission, enriching the way audiences engage with literature across the globe.”

    Kaleeg Hainsworth, CEO of Legible, commented, “We are deeply grateful for the support of our lead investor, a U.S.-based private financial services corporation, which has committed CDN$1.61 million to this Offering. This funding will strengthen our balance sheet and empower us to ramp up marketing and sales initiatives, fueling the growth of our Legible Unbound Subscription service. At just US$9.99 per month, Legible Unbound is gaining traction by offering unlimited access to a vast and growing catalogue of eBooks and audiobooks. We are thrilled also to welcome Andrew Nelson as our new Chief Technology Officer. Andrew’s sophisticated understanding of user experience, technological trends, and eCommerce will be invaluable as we scale globally across all our verticals. He is experienced, proven, genuinely understands what Legible is achieving, resilient, a fantastic people person, and is greatly respected in his community. Andrew enhances our executive team and supports Legible’s mission to innovate and lead in the digital literary space, now more than ever.”

    Further to Legible’s Press Release dated July 18, 2024 wherein Legible announced its warrant incentive program (the “WIP”), Legible is pleased to announce the WIP resulted in: (i) a total of 3,374,936 warrants being exercised at $0.07 for proceeds of $236,246, which included $180,233 in the settlement of outstanding indebtedness; and (ii) the issuance of new warrants exercisable on or before August 16, 2025 at $0.10 for an additional 3,374,936 common shares. In the event that the volume weighted average trading price of the common shares of Legible on the Canadian Securities Exchange is at least $0.30 for a minimum of 10 consecutive trading days (whether or not trading occurs on all such days), Legible may, in its sole discretion, issue a news release announcing that the exercise period has been reduced to twenty-one (21) days following the date of the issuance of such news release (the “Accelerated Expiry Date”). If such news release is issued, all such warrants that are not exercised prior to 5:00 p.m. Vancouver time on the Accelerated Expiry Date will expire immediately after such time on the Accelerated Expiry Date.

    In addition, further to the Company’s press release dated January 24, 2024, Legible announces the conclusion of its engagement with Investor Cubed Inc. (“Investor Cubed”), which provided investor relations and shareholder communication services, effective immediately. Legible extends its gratitude to Investor Cubed for their contributions and support during the engagement.

    About Legible Inc.

    Legible is a groundbreaking, mobile-centric global company specializing in eBook and audiobook entertainment. Its extensive partnerships encompass four of the Big 5 Publishers, the world’s largest eBook distributors, and outstanding publishers of all sizes, enabling Legible to deliver millions of eBooks and audiobooks, transforming any smart device into a source of cutting-edge infotainment.

    Legible recently released My Model Kitchen – Vol. 2: Vegetables – The Garden of Earthly Delights, the second of 15 video-enriched Living Cookbooks by former supermodel, bestselling author, TV host and celebrity chef Cristina Ferrare, with an AI Sous Chef for each recipe. The Living Cookbooks and Ms. Ferrare have been featured twice on the Drew Barrymore Show and in many other major US media outlets.

    A first mover in the rapidly expanding automotive infotainment market, Legible has partnered with media providers Faurecia Aptoide, Harman Ignite, LiveOne, and Visteon. Legible has the only Android Automotive app that delivers both audiobooks and eBooks to drivers and passengers in tens of millions of vehicles around the globe, positioning Legible at the forefront of the new world of in-car infotainment experiences.

    The 2024 EdTech Breakthrough Award winner for eLearning Innovation of the Year, Legible is reshaping the digital publishing landscape, committed to gaining significant market share through its innovative 21st-century publishing solutions and enriched reading experiences. Visit Legible.com, where eBooks come to life.

    Press Contacts:

    Legible Inc.

    Ms. Deborah Harford
    EVP, Global Strategic Partnerships
    invest@legible.com
    Website: https://invest.legible.com

    Legible Media Relations

    Krupp Kommunications, Inc.
    Ms. Kathy Giaconia
    VP Media Relations
    kgiaconia@kruppagency.com
    1-213-324-5665
    http://www.KruppAgency.com

    Cautionary Note Regarding Forward Looking Information
    This Press Release contains certain statements which constitute forward-looking statements or information (“forward-looking statements”), including statements regarding Legible’s business. Such forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Legible’s control, including the impact of general economic conditions, industry conditions, currency fluctuations, the lack of availability of qualified personnel or management, stock market volatility and the ability to access sufficient capital from internal and external sources. Although Legible believes that the expectations in its forward-looking statements are reasonable, they are based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward- looking information. As such, readers are cautioned not to place undue reliance on the forward- looking information, as no assurance can be provided as to future results, levels of activity or achievements. The forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Legible does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

    NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES
    OR FOR DISSEMINATION IN THE UNITED STATES

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/989cb8b1-ce9c-4e00-b6a0-53c60c30fc72

    The MIL Network –

  • MIL-OSI: Media Advisory: Hut 8 Announces Conference Call to Discuss Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    MIAMI, Oct. 24, 2024 (GLOBE NEWSWIRE) — Hut 8 Corp. (Nasdaq | TSX: HUT) (“Hut 8” or the “Company”), a leading, vertically integrated operator of large-scale energy infrastructure and one of North America’s largest Bitcoin miners, will host a conference call and webinar on Wednesday, November 13, 2024 to review third quarter 2024 results.

    Who: Analysts, media, and investors are invited to attend.
    What: Hut 8 executives will review the Company’s financial results for the third quarter of 2024.
    When: Results will be shared via media release and on the Company’s website at https://hut8.com/investors/ on November 13, 2024. The conference call and webinar will begin at 8:30 a.m. ET.
    Where: The webcast can be viewed at: https://www.hut8.com/q3-2024/.

    Analysts can register here.


    About Hut 8

    Hut 8 Corp. is an energy infrastructure operator and Bitcoin miner with self-mining, hosting, managed services, and traditional data center operations across North America. Headquartered in Miami, Florida, Hut 8 Corp. has a portfolio comprising twenty sites: eleven Bitcoin mining, hosting, and Managed Services sites in Alberta, New York, and Texas, five high performance computing data centers in British Columbia and Ontario, and four power generation assets in Ontario. For more information, visit www.hut8.com and follow us on X (formerly known as Twitter) at @Hut8Corp.

    Hut 8 Investor Relations

    Sue Ennis

    ir@hut8.com

    Hut 8 Media Relations

    media@hut8.com

    The MIL Network –

  • MIL-OSI: Bread Financial Declares Dividend on Common Stock

    Source: GlobeNewswire (MIL-OSI)

    COLUMBUS, Ohio, Oct. 24, 2024 (GLOBE NEWSWIRE) — Bread Financial Holdings, Inc.® (NYSE: BFH), a tech-forward financial services company that provides simple, flexible payment, lending and saving solutions, today announced that its Board of Directors declared a quarterly cash dividend of $0.21 per share on the Company’s common stock, payable on December 13, 2024 to stockholders of record at the close of business on November 8, 2024.

    About Bread Financial® 
    Bread Financial® (NYSE: BFH) is a tech-forward financial services company providing simple, personalized payment, lending and saving solutions. The company creates opportunities for its customers and partners through digitally enabled choices that offer ease, empowerment, financial flexibility and exceptional customer experiences. Driven by a digital-first approach, data insights and white-label technology, Bread Financial delivers growth for its partners through a comprehensive suite of payment solutions that includes private label and co-brand credit cards and Bread Pay® buy now, pay later products. Bread Financial also offers direct-to-consumer products that give customers more access, choice and freedom through its branded Bread Cashback® American Express® Credit Card, Bread Rewards™ American Express® Credit Card and Bread Savings® products. 

    Headquartered in Columbus, Ohio, Bread Financial is powered by its approximately 7,000 global associates and is committed to sustainable business practices. To learn more about Bread Financial, visit breadfinancial.com or follow us on Facebook, LinkedIn, X and Instagram.

    Contacts
    Brian Vereb – Investor Relations
    Brian.Vereb@BreadFinancial.com

    Susan Haugen – Investor Relations
    Susan.Haugen@BreadFinancial.com

    Rachel Stultz – Media
    Rachel.Stultz@BreadFinancial.com

    The MIL Network –

  • MIL-OSI: Bread Financial Reports Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    COLUMBUS, Ohio, Oct. 24, 2024 (GLOBE NEWSWIRE) — Bread Financial Holdings, Inc.® (NYSE: BFH), a tech-forward financial services company that provides simple, flexible payment, lending and saving solutions, today announced its third quarter 2024 financial results. All earnings-related materials are now available at the company’s investor relations website, here.

    Bread Financial President and Chief Executive Officer Ralph Andretta and Chief Financial Officer Perry Beberman will host a conference call at 8:30 a.m. ET today to discuss results. A link to the conference call will be available at the company’s investor relations website, and a replay will also be available there following the call.

    About Bread Financial® 
    Bread Financial® (NYSE: BFH) is a tech-forward financial services company providing simple, personalized payment, lending and saving solutions. The company creates opportunities for its customers and partners through digitally enabled choices that offer ease, empowerment, financial flexibility and exceptional customer experiences. Driven by a digital-first approach, data insights and white-label technology, Bread Financial delivers growth for its partners through a comprehensive suite of payment solutions that includes private label and co-brand credit cards and Bread Pay® buy now, pay later products. Bread Financial also offers direct-to-consumer products that give customers more access, choice and freedom through its branded Bread Cashback® American Express® Credit Card, Bread Rewards™ American Express® Credit Card and Bread Savings® products.

    Headquartered in Columbus, Ohio, Bread Financial is powered by its approximately 7,000 global associates and is committed to sustainable business practices. To learn more about Bread Financial, visit breadfinancial.com or follow us on Facebook, LinkedIn, X and Instagram.  

    Contacts
    Brian Vereb — Investor Relations
    Brian.Vereb@breadfinancial.com

    Susan Haugen — Investor Relations
    Susan.Haugen@breadfinancial.com

    Rachel Stultz — Media
    Rachel.Stultz@breadfinancial.com

    The MIL Network –

  • MIL-OSI Video: Spiritual Care: VA Chaplains – Service Beyond Religious Roles

    Source: United States of America – Federal Government Departments (video statements)

    Welcome to our special tribute to the VA Chaplains who serve Veterans, their caregivers, and their families across the nation. In honor of Spiritual Care Week, we’re shining a spotlight on the diverse roles chaplains play within the VA system – roles that extend far beyond the traditional image of religious service.

    Chaplains at the VA are much more than spiritual advisors. They are compassionate guides, supporting Veterans and their families through some of the most challenging moments in life. From crisis intervention and mental health support to assisting caregivers and providing grief care, our chaplains walk beside Veterans every step of the way. They offer help in unexpected ways – whether it’s a listening ear, connecting Veterans with essential services, or simply being a comforting presence in times of need.

    In this video, you’ll hear from VA leadership and chaplains as they share their personal experiences, showcasing how they integrate spiritual care into whole-person health. They support not only Veterans, but also VA employees, offering emotional and spiritual well-being in both times of crisis and everyday life.

    Who is this for?

    If you’re a Veteran, caregiver, survivor, or part of the VA team, this video is for you. Whether you’ve worked with a VA chaplain before or are learning about their roles for the first time, we hope this video inspires you to see how spiritual care plays a vital role in your journey of healing and support.

    Chaplains featured in this video include:

    Deb O’Neill Lewis: Offering holistic support, from helping Veterans navigate VA facilities to providing emotional and practical care.
    Mohammed M. Hossain: Serving Veterans of all faiths and backgrounds, embodying service to humanity beyond religious lines.
    Carol Ramsey Lucas: Guiding Veterans through spiritual recovery, addressing grief, moral injury, and supporting PTSD groups.
    Dallas Jones: Drawing from personal health experiences to offer empathy and understanding to Veterans and their families.
    Cindy Wallace: Integrating mind, body, and spirit to help Veterans find meaning and hope in their lives.
    Jonathan Morse: Promoting spiritual growth, helping Veterans navigate life’s challenges across all faiths.
    Kyle Gildner: Using creative expression like music to help Veterans rediscover their purpose and heal from trauma.
    Lacyndra Purdy: Supporting caregivers and staff through compassion and education.
    Kimberly Willis, Executive Director, VA National Chaplain Service: Leading the VA’s spiritual care efforts, especially in critical moments of grief, crisis, and moral injury.

    Special Messages from:
    Denis McDonough, Secretary of Veterans Affairs
    Dr. Shereef Elnahal, Under Secretary for Health

    Join us in celebrating our VA Chaplains who provide “Service Beyond Religious Roles” and are truly at the heart of whole-person care within the VA.

    Watch now to learn more about the invaluable work of VA Chaplains and their service to Veterans, families, and caregivers.

    #VAChaplains #SpiritualCareWeek #ServiceBeyondReligiousRoles #VeteranSupport #Caregivers #VAEmployees #WholeHealth #HealingJourney

    https://www.youtube.com/watch?v=92DGa8xrGIY

    MIL OSI Video –

  • MIL-OSI: Bread Financial Provides Performance Update for September 2024

    Source: GlobeNewswire (MIL-OSI)

    COLUMBUS, Ohio, Oct. 24, 2024 (GLOBE NEWSWIRE) — Bread Financial Holdings, Inc.® (NYSE: BFH), a tech-forward financial services company that provides simple, personalized payment, lending and saving solutions, provided a performance update. The following tables present the Company’s net loss rate and delinquency rate for the periods indicated.

      For the
    month ended
    September 30, 2024    		   For the
    three months ended
    September 30, 2024
      (dollars in millions)
    End-of-period credit card and other loans $ 17,933     $ 17,933  
    Average credit card and other loans (1) $ 17,955     $ 17,766  
    Year-over-year change in average credit card and other loans (1)   3 %     1 %
    Net principal losses $ 110     $ 347  
    Net loss rate (1)   7.4 %     7.8 %
                   
      As of
    September 30, 2024    		   As of
    September 30, 2023
      (dollars in millions)
    30 days + delinquencies – principal $ 1,062     $ 1,038  
    Period ended credit card and other loans – principal $ 16,476     $ 16,585  
    Delinquency rate   6.4 %     6.3 %

    __________________________________________________________________________

    (1) Beginning in January 2024, we revised the calculation of Average credit card and other loans to more closely align with industry practice by incorporating an average daily balance. Prior to 2024, Average credit card and other loans represent the average balance of the loans at the beginning and end of each month, averaged over the periods indicated. Consequentially, the calculations for Year-over-year change in average credit card and other loans and Net loss rate differ for the periods presented.

    About Bread Financial® 
    Bread Financial® (NYSE: BFH) is a tech-forward financial services company providing simple, personalized payment, lending and saving solutions. The company creates opportunities for its customers and partners through digitally enabled choices that offer ease, empowerment, financial flexibility and exceptional customer experiences. Driven by a digital-first approach, data insights and white-label technology, Bread Financial delivers growth for its partners through a comprehensive suite of payment solutions that includes private label and co-brand credit cards and Bread Pay® buy now, pay later products. Bread Financial also offers direct-to-consumer products that give customers more access, choice and freedom through its branded Bread Cashback® American Express® Credit Card, Bread Rewards™ American Express® Credit Card and Bread Savings® products.    
         
    Headquartered in Columbus, Ohio, Bread Financial is powered by its approximately 7,000 global associates and is committed to sustainable business practices. To learn more about Bread Financial, visit breadfinancial.com or follow us on Facebook, LinkedIn, X and Instagram.

    Forward-Looking Statements
    This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give our expectations or forecasts of future events and can generally be identified by the use of words such as “believe,” “expect,” “anticipate,” “estimate,” “intend,” “project,” “plan,” “likely,” “may,” “should” or other words or phrases of similar import. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding, and the guidance we give with respect to, our anticipated operating or financial results, future financial performance and outlook, future dividend declarations, and future economic conditions.

    We believe that our expectations are based on reasonable assumptions. Forward-looking statements, however, are subject to a number of risks and uncertainties that are difficult to predict and, in many cases, beyond our control. Accordingly, our actual results could differ materially from the projections, anticipated results or other expectations expressed in this release, and no assurances can be given that our expectations will prove to have been correct. Factors that could cause the outcomes to differ materially include, but are not limited to, the following: macroeconomic conditions, including market conditions, inflation, higher interest rates, labor market conditions, recessionary pressures or a concern over a prolonged economic slowdown, and the related impact on consumer spending behavior, payments, debt levels, savings rates and other behavior; global political and public health events and conditions, including ongoing wars and military conflicts and natural disasters; future credit performance, including the level of future delinquency and write-off rates; the loss of, or reduction in demand from, significant brand partners or customers in the highly competitive markets in which we compete; the concentration of our business in U.S. consumer credit; inaccuracies in the models and estimates on which we rely, including the amount of our Allowance for credit losses and our credit risk management models; the inability to realize the intended benefits of acquisitions, dispositions and other strategic initiatives; our level of indebtedness and ability to access financial or capital markets; pending and future federal and state legislation, regulation, supervisory guidance, and regulatory and legal actions, including, but not limited to, those related to financial regulatory reform and consumer financial services practices, as well as any such actions with respect to late fees, interchange fees or other charges; impacts arising from or relating to the transition of our credit card processing services to third party service providers that we completed in 2022; failures or breaches in our operational or security systems, including as a result of cyberattacks, unanticipated impacts from technology modernization projects or otherwise; and any tax or other liability or adverse impacts arising out of or related to the spinoff of our former LoyaltyOne segment or the bankruptcy filings of Loyalty Ventures Inc. (LVI) and certain of its subsidiaries and subsequent litigation or other disputes. In addition, the Consumer Financial Protection Bureau (CFPB) has issued a final rule that, absent a successful legal challenge, will place significant limits on credit card late fees, which would have a significant impact on our business and results of operations for at least the short term and, depending on the effectiveness of the mitigating actions that we have taken or may in the future take in anticipation of, or in response to, the final rule, may potentially adversely impact us over the long term; we cannot provide any assurance as to the effective date of the rule, the result of any pending or future challenges or other litigation relating to the rule, or our ability to mitigate or offset the impact of the rule on our business and results of operations. The foregoing factors, along with other risks and uncertainties that could cause actual results to differ materially from those expressed or implied in forward-looking statements, are described in greater detail under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the most recently ended fiscal year, which may be updated in Item 1A of, or elsewhere in, our Quarterly Reports on Form 10-Q filed for periods subsequent to such Form 10-K. Our forward-looking statements speak only as of the date made, and we undertake no obligation, other than as required by applicable law, to update or revise any forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.

    Contacts
    Brian Vereb – Investor Relations
    Brian.Vereb@BreadFinancial.com

    Susan Haugen – Investor Relations
    Susan.Haugen@BreadFinancial.com

    Rachel Stultz – Media
    Rachel.Stultz@BreadFinancial.com

    The MIL Network –

  • MIL-OSI: Valley National Bancorp Announces Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Oct. 24, 2024 (GLOBE NEWSWIRE) — Valley National Bancorp (NASDAQ:VLY), the holding company for Valley National Bank, today reported net income for the third quarter 2024 of $97.9 million, or $0.18 per diluted common share, as compared to the second quarter 2024 net income of $70.4 million, or $0.13 per diluted common share, and net income of $141.3 million, or $0.27 per diluted common share, for the third quarter 2023. Excluding all non-core income and charges, our adjusted net income (a non-GAAP measure) was $96.8 million, or $0.18 per diluted common share, for the third quarter 2024, $71.6 million, or $0.13 per diluted common share, for the second quarter 2024, and $136.4 million, or $0.26 per diluted common share, for the third quarter 2023. See further details below, including a reconciliation of our non-GAAP adjusted net income, in the “Consolidated Financial Highlights” tables.

    Ira Robbins, CEO, commented, “The third quarter’s financial results highlight the significant progress that we continue to make towards achieving our strategic balance sheet goals. On October 23, 2024, we entered into an agreement to sell performing commercial real estate loans expected to total over $800 million at a very modest discount of approximately 1 percent to a single investor. This economically compelling transaction is expected to close in the fourth quarter 2024 and reflects the strength and desirability of our commercial real estate portfolio. We have executed on a variety of strategic transactions this year that have notably strengthened our balance sheet and enhanced our financial flexibility.”

    Mr. Robbins continued, “This quarter’s results also indicated the early stages of normalized profitability which we expect will accelerate as we enter 2025. Net interest income and non-interest income both improved meaningfully from the second quarter 2024, and our operating expenses were well-controlled and effectively unchanged on a year-over-year basis. While recent weather events weighed on the sequential provision improvement that we anticipated, our pre-provision earnings continued to improve during the third quarter and could set the stage for more stable results in the near future. And most importantly, our thoughts are with those affected by the recent hurricanes in our Florida markets and the other areas in the southeast. We are strongly committed to supporting our associates, clients and communities throughout the rebuilding and recovery process.”

    Key financial highlights for the third quarter 2024:

    • Net Interest Income and Margin: Net interest income on a tax equivalent basis of $411.8 million for the third quarter 2024 increased $8.8 million compared to the second quarter 2024 and decreased $1.8 million as compared to the third quarter 2023. Our net interest margin on a tax equivalent basis also increased by 2 basis points to 2.86 percent in the third quarter 2024 as compared to 2.84 percent for the second quarter 2024. The increases from the second quarter 2024 were mostly due to continued yield expansion on average loans and additional interest income and higher yields from targeted growth within our available for sale securities portfolio. See the “Net Interest Income and Margin” section below for more details.
    • Loan Portfolio: Total loans decreased $956.4 million, or 7.6 percent on an annualized basis, to $49.4 billion at September 30, 2024 from June 30, 2024 mostly due to the transfer of performing commercial real estate loans totaling $823.1 million, net of unearned fees, to loans held for sale at September 30, 2024 and normal repayment activity mainly within the commercial real estate non-owner occupied and multi-family loans, as we continue to actively reduce these loan categories. Our commercial and industrial loans grew $320.1 million, or 13.5 percent on an annualized basis, to $9.8 billion at September 30, 2024 from June 30, 2024 due to solid organic growth during the third quarter 2024. Residential mortgage and total consumer loans also increased modestly during the third quarter 2024. See the “Loans” section below for more details.
    • Deposits: Actual ending balances for deposits increased $283.8 million to $50.4 billion at September 30, 2024 as compared to $50.1 billion at June 30, 2024 mainly due to higher period-end direct commercial customer money market and non-interest bearing deposits, partially offset by a decline in time deposits. See the “Deposits” section below for more details.
    • Allowance and Provision for Credit Losses for Loans: The allowance for credit losses for loans totaled $564.7 million and $532.5 million at September 30, 2024 and June 30, 2024, respectively, representing 1.14 percent and 1.06 percent of total loans at each respective date. During the third quarter 2024, we recorded a provision for credit losses for loans of $75.0 million as compared to $82.1 million and $9.1 million for the second quarter 2024 and third quarter 2023, respectively. The third quarter 2024 provision reflects, among other factors, increased quantitative reserves allocated to commercial real estate loans, significant commercial and industrial loan growth and $8.0 million of qualitative reserves related to the estimated impact of Hurricane Helene, which hit Florida in late September 2024.
    • Credit Quality: Non-accrual loans totaled $296.3 million, or 0.60 percent of total loans at September 30, 2024 as compared to $303.3 million, or 0.60 percent of total loans at June 30, 2024. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) increased to 0.35 percent of total loans at September 30, 2024 as compared to 0.14 percent at June 30, 2024 largely due to two well-secured commercial real estate loans at various stages of expected collection within the early stage delinquency categories. Net loan charge-offs totaled $42.9 million for the third quarter 2024 as compared to $36.8 million and $5.5 million for the second quarter 2024 and third quarter 2023, respectively. The loan charge-offs in the third quarter 2024 included partial charge-offs totaling a combined $30.1 million related to two commercial real estate loan relationships. See the “Credit Quality” section below for more details.
    • Non-Interest Income: Non-interest income increased $9.5 million to $60.7 million for the third quarter 2024 as compared to the second quarter 2024 mainly due to increases in other income; wealth management and trust fees; and service charges on deposits totaling $11.2 million, $2.0 million, and $1.6 million, respectively. The increases in the aforementioned categories were partially offset by a $5.8 million mark to market loss (recorded within net losses on sales of loans) associated with the performing commercial real estate loans transferred to loans held for sale at September 30, 2024, as well as lower swap fees related to commercial loan transactions (within capital market fees) and insurance commissions. The increase in other income was mostly the result of income from litigation settlements totaling $7.3 million for the third quarter 2024.
    • Non-Interest Expense: Non-interest expense decreased $8.0 million to $269.5 million for the third quarter 2024 as compared to the second quarter 2024 largely due to a $6.2 million decrease in technology, furniture and equipment expense and a $3.8 million decrease in professional and legal expenses, partially offset by higher net occupancy expense during the third quarter 2024.
    • Efficiency Ratio: Our efficiency ratio was 56.13 percent for the third quarter 2024 as compared to 59.62 percent and 56.72 percent for the second quarter 2024 and third quarter 2023, respectively. See the “Consolidated Financial Highlights” tables below for additional information regarding our non-GAAP measures.
    • Performance Ratios: Annualized return on average assets (ROA), shareholders’ equity (ROE) and tangible ROE were 0.63 percent, 5.70 percent and 8.06 percent for the third quarter 2024, respectively. Annualized ROA, ROE, and tangible ROE, adjusted for non-core income and charges, were 0.62 percent, 5.64 percent and 7.97 percent for the third quarter 2024, respectively. See the “Consolidated Financial Highlights” tables below for additional information regarding our non-GAAP measures.

    Net Interest Income and Margin

    Net interest income on a tax equivalent basis of $411.8 million for the third quarter 2024 increased $8.8 million compared to the second quarter 2024 and decreased $1.8 million as compared to the third quarter 2023. Interest income on a tax equivalent basis increased $27.1 million to $861.9 million for the third quarter 2024 as compared to the second quarter 2024. The increase was mostly due to higher yields on both new loan originations and adjustable rate loans, as well as higher yields and additional interest income from targeted purchases of taxable investments within the available for sale securities portfolio during the second and third quarter 2024. Total interest expense increased $18.3 million to $450.1 million for the third quarter 2024 as compared to the second quarter 2024 mainly due to an increase in average time deposit balances coupled with higher costs on most interest bearing deposit products. See the “Deposits” and “Other Borrowings” sections below for more details.

    Net interest margin on a tax equivalent basis of 2.86 percent for the third quarter 2024 increased by 2 basis points from 2.84 percent for the second quarter 2024 and decreased 5 basis points from 2.91 percent for the third quarter 2023. The increase as compared to the second quarter 2024 was largely driven by the higher yield on average interest earning assets largely offset by an increase in the cost of average interest bearing liabilities. The yield on average interest earning assets increased by 10 basis points to 5.98 percent on a linked quarter basis largely due to higher yielding investment purchases and new loan originations during the second and third quarter 2024. The overall cost of average interest bearing liabilities increased 7 basis points to 4.22 percent for the third quarter 2024 as compared to the second quarter 2024 largely due to higher interest rates on deposits. Our cost of total average deposits was 3.25 percent for the third quarter 2024 as compared to 3.18 percent and 2.94 percent for the second quarter 2024 and the third quarter 2023, respectively.

    Loans, Deposits and Other Borrowings

    Loans. Total loans decreased $956.4 million, or 7.6 percent on an annualized basis, to $49.4 billion at September 30, 2024 from June 30, 2024. Commercial and industrial loans grew by $320.1 million , or 13.5 percent on an annualized basis, to $9.8 billion at September 30, 2024 from June 30, 2024 largely due to our continued strategic focus on the expansion of new loan production within this category. Total commercial real estate (including construction) loans decreased $1.4 billion to $30.4 billion at September 30, 2024 from June 30, 2024. This decline was primarily driven by the transfer of $823.1 million of commercial real estate loans, net of unearned loan fees, from the loans held for investment portfolio to loans held for sale as of September 30, 2024. In addition, we remained highly selective on new originations and projects in an effort to reduce commercial real estate loan concentrations, mainly within the non-owner occupied and multifamily loan categories. Automobile loan balances increased by $60.9 million, or 13.8 percent on an annualized basis, to $1.8 billion at September 30, 2024 from June 30, 2024 mainly due to continued consumer demand generated by our indirect auto dealer network and low prepayment activity within the portfolio. Other consumer loans decreased $42.4 million, or 15.3 percent on an annualized basis, to $1.1 billion at September 30, 2024 from June 30, 2024 primarily due to the negative impact of the high level of market interest rates on the demand and usage of collateralized personal lines of credit.

    Deposits. Actual ending balances for deposits increased $283.8 million to $50.4 billion at September 30, 2024 from June 30, 2024 mainly due to an increase of $358.3 million in savings, NOW and money market deposits and an increase of $36.0 million in non-interest bearing deposits, partially offset by a decrease of $110.5 million in time deposits. Non-interest bearing deposit and savings, NOW and money market deposit balances increased at September 30, 2024 from June 30, 2024 mostly due to increases in national specialized deposits and higher direct commercial customer deposit accounts. Total indirect customer deposits (including both brokered money market and time deposits) totaled $9.1 billion in both September 30, 2024 and June 30, 2024. Non-interest bearing deposits; savings, NOW and money market deposits; and time deposits represented approximately 22 percent, 50 percent and 28 percent of total deposits as of September 30, 2024, respectively, as compared to 22 percent, 49 percent and 29 percent of total deposits as of June 30, 2024, respectively.

    Other Borrowings. Short-term borrowings, consisting of securities sold under agreements to repurchase, decreased $5.5 million to $58.3 million at September 30, 2024 from June 30, 2024. Long-term borrowings totaled $3.3 billion at September 30, 2024 and also remained relatively unchanged as compared to June 30, 2024.

    Credit Quality

    Hurricanes Helene and Milton. In the early stages of the fourth quarter 2024, the credit quality of our Florida loan portfolio has remained resilient in the aftermath of Hurricane Helene, which hit Florida in late September 2024, and Hurricane Milton, which made landfall on October 9, 2024. At this time, there have been relatively few loan concessions (mostly in the form of loan payment deferrals up to 90 days) for distressed borrowers impacted by the hurricanes. However, we continue to assess the impact of the hurricanes on our Florida client base and, where appropriate, we will work constructively with individual borrowers.

    Non-Performing Assets (NPAs). Total NPAs, consisting of non-accrual loans, other real estate owned (OREO) and other repossessed assets, decreased $7.8 million to $305.1 million at September 30, 2024 as compared to June 30, 2024. Non-accrual loans decreased $7.0 million to $296.3 million at September 30, 2024 as compared to $303.3 million at June 30, 2024. Non-accrual construction and commercial real estate loans decreased $20.7 million and $9.3 million to $24.7 million and $113.8 million, respectively, at September 30, 2024 as compared to June 30, 2024 mainly due to loan payoffs during the third quarter 2024. The decreases in these loan categories were partially offset by two new non-accrual commercial and industrial loans totaling $19.0 million, as well as moderate increases in non-accrual residential mortgage and consumer loans at September 30, 2024. OREO decreased $887 thousand at September 30, 2024 from June 30, 2024 mostly due to the sale of one commercial property, which resulted in the recognition of an immaterial loss for the third quarter 2024.

    Accruing Past Due Loans. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) increased $102.3 million to $174.7 million, or 0.35 percent of total loans, at September 30, 2024 as compared to $72.4 million, or 0.14 percent of total loans at June 30, 2024. Loans 30 to 59 days past due increased $69.1 million to $115.1 million at September 30, 2024 as compared to June 30, 2024 mainly due to a $74.5 million increase in commercial real estate loans, partially offset by a $7.0 million decline in consumer loan delinquencies. The increase in commercial real estate loans 30 to 59 days past due was mostly due to one new delinquent loan totaling $40.9 million, which is expected to be fully repaid, subject to the borrower’s pending sale of certain collateral, as well as a few other new loan delinquencies. Loans 60 to 89 days past due increased $42.9 million to $54.8 million at September 30, 2024 as compared to June 30, 2024 mostly due to one well-secured commercial real estate loan totaling $43.9 million currently in the process of loan modification. Loans 90 days or more past due and still accruing interest decreased $9.7 million to $4.8 million at September 30, 2024 as compared to June 30, 2024 largely due to one $4.0 million construction loan that was fully repaid and one $4.2 million commercial real estate loan that migrated from this past due category to non-accrual loans during the third quarter 2024. All loans 90 days or more past due and still accruing interest are well-secured and in the process of collection.

    Allowance for Credit Losses for Loans and Unfunded Commitments. The following table summarizes the allocation of the allowance for credit losses to loan categories and the allocation as a percentage of each loan category at September 30, 2024, June 30, 2024 and September 30, 2023:

        September 30, 2024   June 30, 2024   September 30, 2023
            Allocation       Allocation       Allocation
            as a % of       as a % of       as a % of
        Allowance   Loan   Allowance   Loan   Allowance   Loan
      Allocation   Category   Allocation   Category   Allocation   Category
      ($ in thousands)
    Loan Category:                      
    Commercial and industrial loans $ 166,365   1.70 %   $ 149,243   1.57 %   $ 133,988   1.44 %
    Commercial real estate loans:                      
      Commercial real estate   249,608   0.93       246,316   0.87       191,562   0.68  
      Construction   59,420   1.70       54,777   1.54       53,485   1.40  
    Total commercial real estate loans   309,028   1.02       301,093   0.95       245,047   0.77  
    Residential mortgage loans   51,545   0.91       47,697   0.85       44,621   0.80  
    Consumer loans:                      
      Home equity   3,303   0.57       3,077   0.54       3,689   0.67  
      Auto and other consumer   18,086   0.63       18,200   0.63       14,830   0.52  
    Total consumer loans   21,389   0.62       21,277   0.62       18,519   0.55  
    Allowance for loan losses   548,327   1.11       519,310   1.03       442,175   0.88  
    Allowance for unfunded credit commitments   16,344         13,231         20,170    
    Total allowance for credit losses for loans $ 564,671       $ 532,541       $ 462,345    
    Allowance for credit losses for loans as a % total loans     1.14 %       1.06 %       0.92 %
                                 

    Our loan portfolio, totaling $49.4 billion at September 30, 2024, had net loan charge-offs totaling $42.9 million for the third quarter 2024 as compared to $36.8 million and $5.5 million for the second quarter 2024 and the third quarter 2023, respectively. Total gross loan charge-offs in the third quarter 2024 included partial charge-offs totaling $30.1 million related to two non-performing commercial real estate loan relationships that had combined specific reserves of $25.9 million within the allowance for loan losses at June 30, 2024.

    The allowance for credit losses for loans, comprised of our allowance for loan losses and unfunded credit commitments, as a percentage of total loans was 1.14 percent at September 30, 2024, 1.06 percent at June 30, 2024, and 0.92 percent at September 30, 2023. For the third quarter 2024, the provision for credit losses for loans totaled $75.0 million as compared to $82.1 million and $9.1 million for the second quarter 2024 and third quarter 2023, respectively. The provision for credit losses remained somewhat elevated for the third quarter 2024 largely due to higher quantitative reserves allocated to commercial real estate loans, commercial and industrial loan growth and $8.0 million of qualitative reserves related to the estimated impact of Hurricane Helene.

    The allowance for unfunded credit commitments increased to $16.3 million at September 30, 2024 from $13.2 million at June 30, 2024 mainly due to increases in both non-cancellable construction commitments and commercial and industrial standby letters of credit.

    As previously noted, we are currently evaluating the impact of Hurricane Milton, and we also continue to evaluate any further impact of Hurricane Helene, on our loan portfolio. While not anticipated based on information currently available, Hurricane Milton and unexpected losses from Hurricane Helene could result in a significant increase to the current hurricane related reserves within the allowance, loan charge-offs and our provision for the fourth quarter 2024.

    Capital Adequacy

    Valley’s total risk-based capital, common equity Tier 1 capital, Tier 1 capital and Tier 1 leverage capital ratios were 12.56 percent, 9.57 percent, 10.29 percent and 8.40 percent, respectively, at September 30, 2024 as compared to 12.18 percent, 9.55 percent, 9.99 percent and 8.19 percent, respectively, at June 30, 2024. The increases in the total risk-based capital, Tier 1 capital and Tier 1 leverage ratios as compared to June 30, 2024 were largely due to Valley’s issuance of 6.0 million shares of its 8.250 percent Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series C on August 5, 2024. Net proceeds to Valley after deducting underwriting discounts, commissions and offering expenses were approximately $144.7 million.

    Investor Conference Call

    Valley will host a conference call with investors and the financial community at 11:00 AM (ET) today to discuss the third quarter 2024 earnings and related matters. Interested parties should preregister using this link: https://register.vevent.com/register to receive the dial-in number and a personal PIN, which are required to access the conference call. The teleconference will also be webcast live: https://edge.media-server.com and archived on Valley’s website through Monday, December 2, 2024. Investor presentation materials will be made available prior to the conference call at www.valley.com.

    About Valley

    As the principal subsidiary of Valley National Bancorp, Valley National Bank is a regional bank with over $62 billion in assets. Valley is committed to giving people and businesses the power to succeed. Valley operates many convenient branch locations and commercial banking offices across New Jersey, New York, Florida, Alabama, California and Illinois, and is committed to providing the most convenient service, the latest innovations and an experienced and knowledgeable team dedicated to meeting customer needs. Helping communities grow and prosper is the heart of Valley’s corporate citizenship philosophy. To learn more about Valley, go to www.valley.com or call our Customer Care Center at 800-522-4100.

    Forward-Looking Statements

    The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about our business, new and existing programs and products, acquisitions, relationships, opportunities, taxation, technology, market conditions and economic expectations. These statements may be identified by such forward-looking terminology as “intend,” “should,” “expect,” “believe,” “view,” “opportunity,” “allow,” “continues,” “reflects,” “would,” “could,” “typically,” “usually,” “anticipate,” “may,” “estimate,” “outlook,” “project” or similar statements or variations of such terms. Such forward-looking statements involve certain risks and uncertainties. Actual results may differ materially from such forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to:

    • the impact of market interest rates and monetary and fiscal policies of the U.S. federal government and its agencies in connection with the prolonged inflationary pressures, which could have a material adverse effect on our clients, our business, our employees, and our ability to provide services to our customers;
    • the impact of unfavorable macroeconomic conditions or downturns, including an actual or threatened U.S. government shutdown, debt default or rating downgrade, instability or volatility in financial markets, unanticipated loan delinquencies, loss of collateral, decreased service revenues, increased business disruptions or failures, reductions in employment, and other potential negative effects on our business, employees or clients caused by factors outside of our control, such as the outcome of the 2024 U.S. presidential election, geopolitical instabilities or events (including the Israel-Hamas war and the escalation and regional expansion thereof); natural and other disasters (including severe weather events, such as Hurricanes Helene and Milton); health emergencies; acts of terrorism; or other external events;
    • the impact of potential instability within the U.S. financial sector in the aftermath of the banking failures in 2023 and continued volatility thereafter, including the possibility of a run on deposits by a coordinated deposit base, and the impact of the actual or perceived soundness, or concerns about the creditworthiness of other financial institutions, including any resulting disruption within the financial markets, increased expenses, including Federal Deposit Insurance Corporation insurance assessments, or adverse impact on our stock price, deposits or our ability to borrow or raise capital;
    • the impact of negative public opinion regarding Valley or banks in general that damages our reputation and adversely impacts business and revenues;
    • changes in the statutes, regulations, policy, or enforcement priorities of the federal bank regulatory agencies;
    • the loss of or decrease in lower-cost funding sources within our deposit base;
    • damage verdicts or settlements or restrictions related to existing or potential class action litigation or individual litigation arising from claims of violations of laws or regulations, contractual claims, breach of fiduciary responsibility, negligence, fraud, environmental laws, patent, trademark or other intellectual property infringement, misappropriation or other violation, employment related claims, and other matters;
    • a prolonged downturn and contraction in the economy, as well as an unexpected decline in commercial real estate values collateralizing a significant portion of our loan portfolio;
    • higher or lower than expected income tax expense or tax rates, including increases or decreases resulting from changes in uncertain tax position liabilities, tax laws, regulations, and case law;
    • the inability to grow customer deposits to keep pace with loan growth;
    • a material change in our allowance for credit losses under CECL due to forecasted economic conditions and/or unexpected credit deterioration in our loan and investment portfolios;
    • the need to supplement debt or equity capital to maintain or exceed internal capital thresholds;
    • changes in our business, strategy, market conditions or other factors that may negatively impact the estimated fair value of our goodwill and other intangible assets and result in future impairment charges;
    • greater than expected technology related costs due to, among other factors, prolonged or failed implementations, additional project staffing and obsolescence caused by continuous and rapid market innovations;
    • cyberattacks, ransomware attacks, computer viruses, malware or other cybersecurity incidents that may breach the security of our websites or other systems or networks to obtain unauthorized access to personal, confidential, proprietary or sensitive information, destroy data, disable or degrade service, or sabotage our systems or networks;
    • results of examinations by the Office of the Comptroller of the Currency (OCC), the Federal Reserve Bank, the Consumer Financial Protection Bureau (CFPB) and other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for credit losses, write-down assets, reimburse customers, change the way we do business, or limit or eliminate certain other banking activities;
    • application of the OCC heightened regulatory standards for certain large insured national banks, and the expenses we will incur to develop policies, programs, and systems that comply with the enhanced standards applicable to us;
    • our inability or determination not to pay dividends at current levels, or at all, because of inadequate earnings, regulatory restrictions or limitations, changes in our capital requirements, or a decision to increase capital by retaining more earnings;
    • unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on our business caused by severe weather, pandemics or other public health crises, acts of terrorism or other external events;
    • our ability to successfully execute our business plan and strategic initiatives; and
    • unexpected significant declines in the loan portfolio due to the lack of economic expansion, increased competition, large prepayments, risk mitigation strategies, changes in regulatory lending guidance or other factors.

    A detailed discussion of factors that could affect our results is included in our SEC filings, including Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2023.

    We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in our expectations, except as required by law. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

    -Tables to Follow-

    VALLEY NATIONAL BANCORP
    CONSOLIDATED FINANCIAL HIGHLIGHTS

    SELECTED FINANCIAL DATA

      Three Months Ended   Nine Months Ended
      September 30,   June 30,   September 30,   September 30,
    ($ in thousands, except for share data and stock price) 2024   2024   2023   2024   2023
    FINANCIAL DATA:                  
    Net interest income – FTE(1) $ 411,812     $ 402,984     $ 413,657     $ 1,209,643     $ 1,272,390  
    Net interest income $ 410,498     $ 401,685     $ 412,418     $ 1,205,731     $ 1,268,203  
    Non-interest income   60,671       51,213       58,664       173,299       173,038  
    Total revenue   471,169       452,898       471,082       1,379,030       1,441,241  
    Non-interest expense   269,471       277,497       267,133       827,278       822,270  
    Pre-provision net revenue   201,698       175,401       203,949       551,752       618,971  
    Provision for credit losses   75,024       82,070       9,117       202,294       29,604  
    Income tax expense   28,818       22,907       53,486       84,898       162,410  
    Net income   97,856       70,424       141,346       264,560       426,957  
    Dividends on preferred stock   6,117       4,108       4,127       14,344       12,031  
    Net income available to common shareholders $ 91,739     $ 66,316     $ 137,219     $ 250,216     $ 414,926  
    Weighted average number of common shares outstanding:                  
    Basic   509,227,538       509,141,252       507,650,668       508,904,353       507,580,197  
    Diluted   511,342,932       510,338,502       509,256,599       510,713,205       509,204,051  
    Per common share data:                  
    Basic earnings $ 0.18     $ 0.13     $ 0.27     $ 0.49     $ 0.82  
    Diluted earnings   0.18       0.13       0.27       0.49       0.81  
    Cash dividends declared   0.11       0.11       0.11       0.33       0.33  
    Closing stock price – high   9.34       8.02       10.30       10.80       12.59  
    Closing stock price – low   6.58       6.52       7.63       6.52       6.59  
    FINANCIAL RATIOS:                  
    Net interest margin   2.85 %     2.83 %     2.90 %     2.82 %     2.99 %
    Net interest margin – FTE(1)   2.86       2.84       2.91       2.83       3.00  
    Annualized return on average assets   0.63       0.46       0.92       0.57       0.93  
    Annualized return on avg. shareholders’ equity   5.70       4.17       8.56       5.20       8.72  
    NON-GAAP FINANCIAL DATA AND RATIOS:(2)                  
    Basic earnings per share, as adjusted $ 0.18     $ 0.13     $ 0.26     $ 0.50     $ 0.84  
    Diluted earnings per share, as adjusted   0.18       0.13       0.26       0.50       0.84  
    Annualized return on average assets, as adjusted   0.62 %     0.47 %     0.89 %     0.58 %     0.96 %
    Annualized return on average shareholders’ equity, as adjusted   5.64       4.24       8.26       5.27       8.94  
    Annualized return on avg. tangible shareholders’ equity   8.06       5.95       12.39       7.40       12.71  
    Annualized return on average tangible shareholders’ equity, as adjusted   7.97       6.05       11.95       7.50       13.04  
    Efficiency ratio   56.13       59.62       56.72       58.26       55.34  
                       
    AVERAGE BALANCE SHEET ITEMS:                  
    Assets $ 62,242,022     $ 61,518,639     $ 61,391,688     $ 61,674,588     $ 61,050,973  
    Interest earning assets   57,651,650       56,772,950       56,802,565       57,016,790       56,510,997  
    Loans   50,126,963       50,020,901       50,019,414       50,131,468       49,120,153  
    Interest bearing liabilities   42,656,956       41,576,344       40,829,078       41,932,616       39,802,966  
    Deposits   50,409,234       49,383,209       49,848,446       49,459,617       48,165,152  
    Shareholders’ equity   6,862,555       6,753,981       6,605,786       6,781,022       6,531,424  
                                           
      As Of
    BALANCE SHEET ITEMS: September 30,   June 30,   March 31,   December   September 30,
    (In thousands) 2024   2024   2024   2023   2023
    Assets $ 62,092,332     $ 62,058,974     $ 61,000,188     $ 60,934,974     $ 61,183,352  
    Total loans   49,355,319       50,311,702       49,922,042       50,210,295       50,097,519  
    Deposits   50,395,966       50,112,177       49,077,946       49,242,829       49,885,314  
    Shareholders’ equity   6,972,380       6,737,737       6,727,139       6,701,391       6,627,299  
                       
    LOANS:                  
    (In thousands)                  
    Commercial and industrial $ 9,799,287     $ 9,479,147     $ 9,104,193     $ 9,230,543     $ 9,274,630  
    Commercial real estate:                  
    Non-owner occupied   12,647,649       13,710,015       14,962,851       15,078,464       14,741,668  
    Multifamily   8,612,936       8,976,264       8,818,263       8,860,219       8,863,529  
    Owner occupied   5,654,147       5,536,844       4,367,839       4,304,556       4,435,853  
    Construction   3,487,464       3,545,723       3,556,511       3,726,808       3,833,269  
    Total commercial real estate   30,402,196       31,768,846       31,705,464       31,970,047       31,874,319  
    Residential mortgage   5,684,079       5,627,113       5,618,355       5,569,010       5,562,665  
    Consumer:                  
    Home equity   581,181       566,467       564,083       559,152       548,918  
    Automobile   1,823,738       1,762,852       1,700,508       1,620,389       1,585,987  
    Other consumer   1,064,838       1,107,277       1,229,439       1,261,154       1,251,000  
    Total consumer loans   3,469,757       3,436,596       3,494,030       3,440,695       3,385,905  
    Total loans $ 49,355,319     $ 50,311,702     $ 49,922,042     $ 50,210,295     $ 50,097,519  
                       
    CAPITAL RATIOS:                  
    Book value per common share $ 13.00     $ 12.82     $ 12.81     $ 12.79     $ 12.64  
    Tangible book value per common share(2)   9.06       8.87       8.84       8.79       8.63  
    Tangible common equity to tangible assets(2)   7.68 %     7.52 %     7.62 %     7.58 %     7.40 %
    Tier 1 leverage capital   8.40       8.19       8.20       8.16       8.08  
    Common equity tier 1 capital   9.57       9.55       9.34       9.29       9.21  
    Tier 1 risk-based capital   10.29       9.99       9.78       9.72       9.64  
    Total risk-based capital   12.56       12.18       11.88       11.76       11.68  
                                           
      Three Months Ended   Nine Months Ended
    ALLOWANCE FOR CREDIT LOSSES: September 30,   June 30,   September 30,   September 30,
    ($ in thousands) 2024   2024   2023   2024   2023
    Allowance for credit losses for loans                  
    Beginning balance $ 532,541     $ 487,269     $ 458,676     $ 465,550     $ 483,255  
    Impact of the adoption of ASU No. 2022-02   —       —       —       —       (1,368 )
    Beginning balance, adjusted   532,541       487,269       458,676       465,550       481,887  
    Loans charged-off:                  
    Commercial and industrial   (7,501 )     (14,721 )     (7,487 )     (36,515 )     (37,399 )
    Commercial real estate   (33,292 )     (22,144 )     (255 )     (56,640 )     (2,320 )
    Construction   (4,831 )     (212 )     —       (12,637 )     (9,906 )
    Residential mortgage   —       —       (20 )     —       (169 )
    Total consumer   (2,597 )     (1,262 )     (1,156 )     (5,668 )     (3,024 )
    Total loans charged-off   (48,221 )     (38,339 )     (8,918 )     (111,460 )     (52,818 )
    Charged-off loans recovered:                  
    Commercial and industrial   3,162       742       3,043       4,586       6,615  
    Commercial real estate   66       150       5       457       33  
    Construction   1,535       —       —       1,535       —  
    Residential mortgage   29       5       30       59       186  
    Total consumer   521       603       362       1,521       1,513  
    Total loans recovered   5,313       1,500       3,440       8,158       8,347  
    Total net charge-offs   (42,908 )     (36,839 )     (5,478 )     (103,302 )     (44,471 )
    Provision for credit losses for loans   75,038       82,111       9,147       202,423       24,929  
    Ending balance $ 564,671     $ 532,541     $ 462,345     $ 564,671     $ 462,345  
    Components of allowance for credit losses for loans:                  
    Allowance for loan losses $ 548,327     $ 519,310     $ 442,175     $ 548,327     $ 442,175  
    Allowance for unfunded credit commitments   16,344       13,231       20,170       16,344       20,170  
    Allowance for credit losses for loans $ 564,671     $ 532,541     $ 462,345     $ 564,671     $ 462,345  
    Components of provision for credit losses for loans:                  
    Provision for credit losses for loans $ 71,925     $ 86,901     $ 11,221     $ 205,549     $ 29,359  
    Provision (credit) for unfunded credit commitments   3,113       (4,790 )     (2,074 )     (3,126 )     (4,430 )
    Total provision for credit losses for loans $ 75,038     $ 82,111     $ 9,147     $ 202,423     $ 24,929  
    Annualized ratio of total net charge-offs to total average loans   0.34 %     0.29 %     0.04 %     0.27 %     0.12 %
    Allowance for credit losses for loans as a % of total loans   1.14 %     1.06 %     0.92 %     1.14 %     0.92 %
                                           
      As Of
    ASSET QUALITY: September 30,   June 30,   March 31,   December 31,   September 30,
    ($ in thousands) 2024   2024   2024   2023   2023
    Accruing past due loans:                  
    30 to 59 days past due:                  
    Commercial and industrial $ 4,537     $ 5,086     $ 6,202     $ 9,307     $ 10,687  
    Commercial real estate   76,370       1,879       5,791       3,008       8,053  
    Residential mortgage   19,549       17,389       20,819       26,345       13,159  
    Total consumer   14,672       21,639       14,032       20,554       15,509  
    Total 30 to 59 days past due   115,128       45,993       46,844       59,214       47,408  
    60 to 89 days past due:                  
    Commercial and industrial   1,238       1,621       2,665       5,095       5,720  
    Commercial real estate   43,926       —       3,720       1,257       2,620  
    Residential mortgage   6,892       6,632       5,970       8,200       9,710  
    Total consumer   2,732       3,671       1,834       4,715       1,720  
    Total 60 to 89 days past due   54,788       11,924       14,189       19,267       19,770  
    90 or more days past due:                  
    Commercial and industrial   1,786       2,739       5,750       5,579       6,629  
    Commercial real estate   —       4,242       —       —       —  
    Construction   —       3,990       3,990       3,990       3,990  
    Residential mortgage   1,931       2,609       2,884       2,488       1,348  
    Total consumer   1,063       898       731       1,088       391  
    Total 90 or more days past due   4,780       14,478       13,355       13,145       12,358  
    Total accruing past due loans $ 174,696     $ 72,395     $ 74,388     $ 91,626     $ 79,536  
    Non-accrual loans:                  
    Commercial and industrial $ 120,575     $ 102,942     $ 102,399     $ 99,912     $ 87,655  
    Commercial real estate   113,752       123,011       100,052       99,739       83,338  
    Construction   24,657       45,380       51,842       60,851       62,788  
    Residential mortgage   33,075       28,322       28,561       26,986       21,614  
    Total consumer   4,260       3,624       4,438       4,383       3,545  
    Total non-accrual loans   296,319       303,279       287,292       291,871       258,940  
    Other real estate owned (OREO)   7,172       8,059       88       71       71  
    Other repossessed assets   1,611       1,607       1,393       1,444       1,314  
    Total non-performing assets $ 305,102     $ 312,945     $ 288,773     $ 293,386     $ 260,325  
    Total non-accrual loans as a % of loans   0.60 %     0.60 %     0.58 %     0.58 %     0.52 %
    Total accruing past due and non-accrual loans as a % of loans   0.95       0.75       0.72       0.76       0.68  
    Allowance for losses on loans as a % of non-accrual loans   185.05       171.23       163.33       152.83       170.76  
                                           

    NOTES TO SELECTED FINANCIAL DATA

    (1)   Net interest income and net interest margin are presented on a tax equivalent basis using a 21 percent federal tax rate. Valley believes that this presentation provides comparability of net interest income and net interest margin arising from both taxable and tax-exempt sources and is consistent with industry practice and SEC rules.  
    (2)   Non-GAAP Reconciliations. This press release contains certain supplemental financial information, described in the Notes below, which has been determined by methods other than U.S. Generally Accepted Accounting Principles (“GAAP”) that management uses in its analysis of Valley’s performance. The Company believes that the non-GAAP financial measures provide useful supplemental information to both management and investors in understanding Valley’s underlying operational performance, business and performance trends, and may facilitate comparisons of our current and prior performance with the performance of others in the financial services industry. Management utilizes these measures for internal planning, forecasting and analysis purposes. Management believes that Valley’s presentation and discussion of this supplemental information, together with the accompanying reconciliations to the GAAP financial measures, also allows investors to view performance in a manner similar to management. These non-GAAP financial measures should not be considered in isolation or as a substitute for or superior to financial measures calculated in accordance with U.S. GAAP. These non-GAAP financial measures may also be calculated differently from similar measures disclosed by other companies.  
           
    Non-GAAP Reconciliations to GAAP Financial Measures
     
      Three Months Ended   Nine Months Ended
      September 30,   June 30,   September 30,   September 30,
    ($ in thousands, except for share data) 2024   2024   2023   2024   2023
    Adjusted net income available to common shareholders (non-GAAP):                  
    Net income, as reported (GAAP) $ 97,856     $ 70,424     $ 141,346     $ 264,560     $ 426,957  
    Add: FDIC Special assessment (a)   —       1,363       —       8,757       —  
    Add: Losses on available for sale and held to maturity debt securities, net (b)   1       4       443       12       476  
    Add: Restructuring charge (c)   —       334       (675 )     954       10,507  
    Add: Mark to market loss on commercial real estate loans transferred to loans held for sale (d)   5,794       —       —       5,794       —  
    Add: Provision for credit losses for available for sale securities (e)   —       —       —       —       5,000  
    Add: Merger related expenses (f)   —       —       —       —       4,133  
    Less: Litigation settlements (g)   (7,334 )     —       —       (7,334 )     —  
    Less: Gain on sale of commercial premium finance lending division (h)   —       —       —       (3,629 )     —  
    Less: Net gains on sales of office buildings (h)   —       —       (6,721 )     —       (6,721 )
    Total non-GAAP adjustments to net income   (1,539 )     1,701       (6,953 )     4,554       13,395  
    Income tax adjustments related to non-GAAP adjustments (i)   437       (482 )     1,970       (1,269 )     (2,378 )
    Net income, as adjusted (non-GAAP) $ 96,754     $ 71,643     $ 136,363     $ 267,845     $ 437,974  
    Dividends on preferred stock   6,117       4,108       4,127       14,344       12,031  
    Net income available to common shareholders, as adjusted (non-GAAP) $ 90,637     $ 67,535     $ 132,236     $ 253,501     $ 425,943  
    __________                  
    (a) Included in the FDIC insurance expense.
    (b) Included in gains (losses) on securities transactions, net.
    (c) Represents severance expense related to workforce reductions within salary and employee benefits expense.
    (d) Included in (losses) gains on sales of loans, net.
    (e) Included in provision for credit losses for available for sale and held to maturity securities (tax disallowed).
    (f) Included in salary and employee benefits expense during the first quarter 2023.
    (g) Represents recoveries from legal settlements included in other income.
    (h) Included in gains (losses) on sales of assets, net within non-interest income.
    (i) Calculated using the appropriate blended statutory tax rate for the applicable period.
     
    Adjusted per common share data (non-GAAP):                  
    Net income available to common shareholders, as adjusted (non-GAAP) $ 90,637     $ 67,535     $ 132,236     $ 253,501     $ 425,943  
    Average number of shares outstanding   509,227,538       509,141,252       507,650,668       508,904,353       507,580,197  
    Basic earnings, as adjusted (non-GAAP) $ 0.18     $ 0.13     $ 0.26     $ 0.50     $ 0.84  
    Average number of diluted shares outstanding   511,342,932       510,338,502       509,256,599       510,713,205       509,204,051  
    Diluted earnings, as adjusted (non-GAAP) $ 0.18     $ 0.13     $ 0.26     $ 0.50     $ 0.84  
    Adjusted annualized return on average tangible shareholders’ equity (non-GAAP):                  
    Net income, as adjusted (non-GAAP) $ 96,754     $ 71,643     $ 136,363     $ 267,845     $ 437,974  
    Average shareholders’ equity $ 6,862,555     $ 6,753,981     $ 6,605,786     $ 6,781,022     $ 6,531,424  
    Less: Average goodwill and other intangible assets   2,008,692       2,016,766       2,042,486       2,016,790       2,051,727  
    Average tangible shareholders’ equity $ 4,853,863     $ 4,737,215     $ 4,563,300     $ 4,764,232     $ 4,479,697  
    Annualized return on average tangible shareholders’ equity, as adjusted (non-GAAP)   7.97 %     6.05 %     11.95 %     7.50 %     13.04 %
                                           
    Non-GAAP Reconciliations to GAAP Financial Measures (Continued)
     
      Three Months Ended   Nine Months Ended
      September 30,   June 30,   September 30,   September 30,
    ($ in thousands, except for share data) 2024   2024   2023   2024   2023
    Adjusted annualized return on average assets (non-GAAP):                  
    Net income, as adjusted (non-GAAP) $ 96,754     $ 71,643     $ 136,363     $ 267,845     $ 437,974  
    Average assets $ 62,242,022     $ 61,518,639     $ 61,391,688     $ 61,674,588     $ 61,050,973  
    Annualized return on average assets, as adjusted (non-GAAP)   0.62 %     0.47 %     0.89 %     0.58 %     0.96 %
    Adjusted annualized return on average shareholders’ equity (non-GAAP):                  
    Net income, as adjusted (non-GAAP) $ 96,754     $ 71,643     $ 136,363     $ 267,845     $ 437,974  
    Average shareholders’ equity $ 6,862,555     $ 6,753,981     $ 6,605,786     $ 6,781,022     $ 6,531,424  
    Annualized return on average shareholders’ equity, as adjusted (non-GAAP)   5.64 %     4.24 %     8.26 %     5.27 %     8.94 %
    Annualized return on average tangible shareholders’ equity (non-GAAP):                  
    Net income, as reported (GAAP) $ 97,856     $ 70,424     $ 141,346     $ 264,560     $ 426,957  
    Average shareholders’ equity $ 6,862,555     $ 6,753,981     $ 6,605,786     $ 6,781,022     $ 6,531,424  
    Less: Average goodwill and other intangible assets   2,008,692       2,016,766       2,042,486       2,016,790       2,051,727  
    Average tangible shareholders’ equity $ 4,853,863     $ 4,737,215     $ 4,563,300     $ 4,764,232     $ 4,479,697  
    Annualized return on average tangible shareholders’ equity (non-GAAP)   8.06 %     5.95 %     12.39 %     7.40 %     12.71 %
    Efficiency ratio (non-GAAP):                  
    Non-interest expense, as reported (GAAP) $ 269,471     $ 277,497     $ 267,133     $ 827,278     $ 822,270  
    Less: FDIC Special assessment (pre-tax)   —       1,363       —       8,757       —  
    Less: Restructuring charge (pre-tax)   —       334       (675 )     954       10,507  
    Less: Merger-related expenses (pre-tax)   —       —       —       —       4,133  
    Less: Amortization of tax credit investments (pre-tax)   5,853       5,791       4,191       17,206       13,462  
    Non-interest expense, as adjusted (non-GAAP) $ 263,618     $ 270,009     $ 263,617     $ 800,361     $ 794,168  
    Net interest income, as reported (GAAP)   410,498       401,685       412,418       1,205,731       1,268,203  
    Non-interest income, as reported (GAAP)   60,671       51,213       58,664       173,299       173,038  
    Add: Losses on available for sale and held to maturity securities transactions, net (pre-tax)   1       4       443       12       476  
    Add: Mark-to-market loss on commercial real estate loans transferred to loans held for sale (pre-tax)   5,794       —       —       5,794       —  
    Less: Litigation settlements (pre-tax)   (7,334 )     —       —       (7,334 )     —  
    Less: Gain on sale of premium finance division (pre-tax)   —       —       —       (3,629 )     —  
    Less: Net gains on sales of office buildings (pre-tax)   —       —       (6,721 )     —       (6,721 )
    Non-interest income, as adjusted (non-GAAP) $ 59,132     $ 51,217     $ 52,386     $ 168,142     $ 166,793  
    Gross operating income, as adjusted (non-GAAP) $ 469,630     $ 452,902     $ 464,804     $ 1,373,873     $ 1,434,996  
    Efficiency ratio (non-GAAP)   56.13 %     59.62 %     56.72 %     58.26 %     55.34 %
                                           
      As of
      September 30,   June 30,   March 31,   December 31,   September 30,
    ($ in thousands, except for share data) 2024   2024   2024   2023   2023
    Tangible book value per common share (non-GAAP):                  
    Common shares outstanding   509,252,936       509,205,014       508,893,059       507,709,927       507,660,742  
    Shareholders’ equity (GAAP) $ 6,972,380     $ 6,737,737     $ 6,727,139     $ 6,701,391     $ 6,627,299  
    Less: Preferred stock   354,345       209,691       209,691       209,691       209,691  
    Less: Goodwill and other intangible assets   2,004,414       2,012,580       2,020,405       2,029,267       2,038,202  
    Tangible common shareholders’ equity (non-GAAP) $ 4,613,621     $ 4,515,466     $ 4,497,043     $ 4,462,433     $ 4,379,406  
    Tangible book value per common share (non-GAAP) $ 9.06     $ 8.87     $ 8.84     $ 8.79     $ 8.63  
    Tangible common equity to tangible assets (non-GAAP):                  
    Tangible common shareholders’ equity (non-GAAP) $ 4,613,621     $ 4,515,466     $ 4,497,043     $ 4,462,433     $ 4,379,406  
    Total assets (GAAP)   62,092,332       62,058,974       61,000,188       60,934,974       61,183,352  
    Less: Goodwill and other intangible assets   2,004,414       2,012,580       2,020,405       2,029,267       2,038,202  
    Tangible assets (non-GAAP) $ 60,087,918     $ 60,046,394     $ 58,979,783     $ 58,905,707     $ 59,145,150  
    Tangible common equity to tangible assets (non-GAAP)   7.68 %     7.52 %     7.62 %     7.58 %     7.40 %
                                           

    VALLEY NATIONAL BANCORP
    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
    (in thousands, except for share data)

      September 30,   December 31,
      2024   2023
      (Unaudited)    
    Assets      
    Cash and due from banks $ 511,945     $ 284,090  
    Interest bearing deposits with banks   527,960       607,135  
    Investment securities:      
    Equity securities   73,071       64,464  
    Trading debt securities   3,996       3,973  
    Available for sale debt securities   2,602,260       1,296,576  
    Held to maturity debt securities (net of allowance for credit losses of $1,076 at September 30, 2024 and $1,205 at December 31, 2023)   3,573,960       3,739,208  
    Total investment securities   6,253,287       5,104,221  
    Loans held for sale (includes fair value of $17,153 at September 30, 2024 and $20,640 at December 31, 2023 for loans originated for sale)   843,201       30,640  
    Loans   49,355,319       50,210,295  
    Less: Allowance for loan losses   (548,327 )     (446,080 )
    Net loans   48,806,992       49,764,215  
    Premises and equipment, net   356,649       381,081  
    Lease right of use assets   335,032       343,461  
    Bank owned life insurance   730,081       723,799  
    Accrued interest receivable   250,131       245,498  
    Goodwill   1,868,936       1,868,936  
    Other intangible assets, net   135,478       160,331  
    Other assets   1,472,640       1,421,567  
    Total Assets $ 62,092,332     $ 60,934,974  
    Liabilities      
    Deposits:      
    Non-interest bearing $ 11,153,754     $ 11,539,483  
    Interest bearing:      
    Savings, NOW and money market   25,069,405       24,526,622  
    Time   14,172,807       13,176,724  
    Total deposits   50,395,966       49,242,829  
    Short-term borrowings   58,268       917,834  
    Long-term borrowings   3,274,340       2,328,375  
    Junior subordinated debentures issued to capital trusts   57,368       57,108  
    Lease liabilities   394,971       403,781  
    Accrued expenses and other liabilities   939,039       1,283,656  
    Total Liabilities   55,119,952       54,233,583  
    Shareholders’ Equity      
    Preferred stock, no par value; 50,000,000 authorized shares:      
    Series A (4,600,000 shares issued at September 30, 2024 and December 31, 2023)   111,590       111,590  
    Series B (4,000,000 shares issued at September 30, 2024 and December 31, 2023)   98,101       98,101  
    Series C (6,000,000 shares issued at September 30, 2024)   144,654       —  
    Common stock (no par value, authorized 650,000,000 shares; issued 509,252,936 shares at September 30, 2024 and 507,896,910 shares at December 31, 2023)   178,661       178,187  
    Surplus   5,002,718       4,989,989  
    Retained earnings   1,551,428       1,471,371  
    Accumulated other comprehensive loss   (114,772 )     (146,456 )
    Treasury stock, at cost (186,983 common shares at December 31, 2023)   —       (1,391 )
    Total Shareholders’ Equity   6,972,380       6,701,391  
    Total Liabilities and Shareholders’ Equity $ 62,092,332     $ 60,934,974  
                   

    VALLEY NATIONAL BANCORP
    CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
    (in thousands, except for share data)

      Three Months Ended   Nine Months Ended
      September 30,   June 30,   September 30,   September 30,
      2024   2024   2023   2024   2023
    Interest Income                  
    Interest and fees on loans $ 786,680     $ 770,964     $ 753,638     $ 2,329,197     $ 2,124,036
    Interest and dividends on investment securities:                  
    Taxable   49,700       40,460       32,383       125,957       96,591
    Tax-exempt   4,855       4,799       4,585       14,450       15,485
    Dividends   5,929       6,341       5,299       19,098       18,001
    Interest on federal funds sold and other short-term investments   13,385       10,902       17,113       33,969       66,594
    Total interest income   860,549       833,466       813,018       2,522,671       2,320,707
    Interest Expense                  
    Interest on deposits:                  
    Savings, NOW and money market   235,371       231,597       201,916       699,474       517,524
    Time   174,741       160,442       164,336       486,248       370,398
    Interest on short-term borrowings   451       691       5,189       21,754       89,345
    Interest on long-term borrowings and junior subordinated debentures   39,488       39,051       29,159       109,464       75,237
    Total interest expense   450,051       431,781       400,600       1,316,940       1,052,504
    Net Interest Income   410,498       401,685       412,418       1,205,731       1,268,203
    (Credit) provision for credit losses for available for sale and held to maturity securities   (14 )     (41 )     (30 )     (129 )     4,675
    Provision for credit losses for loans   75,038       82,111       9,147       202,423       24,929
    Net Interest Income After Provision for Credit Losses   335,474       319,615       403,301       1,003,437       1,238,599
    Non-Interest Income                  
    Wealth management and trust fees   15,125       13,136       11,417       46,191       32,180
    Insurance commissions   2,880       3,958       2,336       9,089       7,895
    Capital markets   6,347       7,779       7,141       19,796       35,000
    Service charges on deposit accounts   12,826       11,212       10,952       35,287       31,970
    Gains (losses) on securities transactions, net   47       3       (398 )     99       197
    Fees from loan servicing   3,443       2,691       2,681       9,322       8,054
    (Losses) gains on sales of loans, net   (3,644 )     884       2,023       (1,142 )     3,752
    Gains (losses) on sales of assets, net   55       (2 )     6,653       3,747       6,938
    Bank owned life insurance   5,387       4,545       2,709       13,167       7,736
    Other   18,205       7,007       13,150       37,743       39,316
    Total non-interest income   60,671       51,213       58,664       173,299       173,038
    Non-Interest Expense                  
    Salary and employee benefits expense   138,832       140,815       137,292       421,478       431,872
    Net occupancy expense   26,973       24,252       24,675       75,548       73,880
    Technology, furniture and equipment expense   28,962       35,203       37,320       99,627       106,304
    FDIC insurance assessment   14,792       14,446       7,946       47,474       27,527
    Amortization of other intangible assets   8,692       8,568       9,741       26,672       30,072
    Professional and legal fees   14,118       17,938       17,109       48,521       55,329
    Amortization of tax credit investments   5,853       5,791       4,191       17,206       13,462
    Other   31,249       30,484       28,859       90,752       83,824
    Total non-interest expense   269,471       277,497       267,133       827,278       822,270
    Income Before Income Taxes   126,674       93,331       194,832       349,458       589,367
    Income tax expense   28,818       22,907       53,486       84,898       162,410
    Net Income   97,856       70,424       141,346       264,560       426,957
    Dividends on preferred stock   6,117       4,108       4,127       14,344       12,031
    Net Income Available to Common Shareholders $ 91,739     $ 66,316     $ 137,219     $ 250,216     $ 414,926
                                         

    VALLEY NATIONAL BANCORP
    Quarterly Analysis of Average Assets, Liabilities and Shareholders’ Equity and
    Net Interest Income on a Tax Equivalent Basis

      Three Months Ended
      September 30, 2024   June 30, 2024   September 30, 2023
      Average       Avg.   Average       Avg.   Average       Avg.
    ($ in thousands) Balance   Interest   Rate   Balance   Interest   Rate   Balance   Interest   Rate
    Assets                                  
    Interest earning assets:                              
    Loans (1)(2) $ 50,126,963   $ 786,704     6.28 %   $ 50,020,901   $ 770,987     6.17 %   $ 50,019,414   $ 753,662     6.03 %
    Taxable investments (3)   5,977,211     55,629     3.72       5,379,101     46,801     3.48       4,915,778     37,682     3.07  
    Tax-exempt investments (1)(3)   573,059     6,145     4.29       575,272     6,075     4.22       620,439     5,800     3.74  
    Interest bearing deposits with banks   974,417     13,385     5.49       797,676     10,902     5.47       1,246,934     17,113     5.49  
    Total interest earning assets   57,651,650     861,863     5.98       56,772,950     834,765     5.88       56,802,565     814,257     5.73  
    Other assets   4,590,372             4,745,689             4,589,123        
    Total assets $ 62,242,022           $ 61,518,639           $ 61,391,688        
    Liabilities and shareholders’ equity                                  
    Interest bearing liabilities:                                  
    Savings, NOW and money market deposits $ 25,017,504   $ 235,371     3.76 %   $ 24,848,266   $ 231,597     3.73 %   $ 23,016,737   $ 201,916     3.51 %
    Time deposits   14,233,209     174,741     4.91       13,311,381     160,442     4.82       14,880,311     164,336     4.42  
    Short-term borrowings   81,251     451     2.22       97,502     691     2.83       436,518     5,189     4.75  
    Long-term borrowings (4)   3,324,992     39,488     4.75       3,319,195     39,051     4.71       2,495,512     29,159     4.67  
    Total interest bearing liabilities   42,656,956     450,051     4.22       41,576,344     431,781     4.15       40,829,078     400,600     3.92  
    Non-interest bearing deposits   11,158,521             11,223,562             11,951,398        
    Other liabilities   1,563,990             1,964,752             2,005,426        
    Shareholders’ equity   6,862,555             6,753,981             6,605,786        
    Total liabilities and shareholders’ equity $ 62,242,022           $ 61,518,639           $ 61,391,688        
                                       
    Net interest income/interest rate spread (5)     $ 411,812     1.76 %       $ 402,984     1.73 %       $ 413,657     1.81 %
    Tax equivalent adjustment       (1,314 )             (1,299 )             (1,239 )    
    Net interest income, as reported     $ 410,498             $ 401,685             $ 412,418      
    Net interest margin (6)         2.85             2.83             2.90  
    Tax equivalent effect         0.01             0.01             0.01  
    Net interest margin on a fully tax equivalent basis (6)         2.86 %           2.84 %           2.91 %

    _________

    (1) Interest income is presented on a tax equivalent basis using a 21 percent federal tax rate.
    (2) Loans are stated net of unearned income and include non-accrual loans.
    (3) The yield for securities that are classified as available for sale is based on the average historical amortized cost.
    (4) Includes junior subordinated debentures issued to capital trusts which are presented separately on the consolidated statements of condition.
    (5) Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis.
    (6) Net interest income as a percentage of total average interest earning assets.
       

    SHAREHOLDERS RELATIONS
    Requests for copies of reports and/or other inquiries should be directed to Tina Zarkadas, Assistant Vice President, Shareholder Relations Specialist, Valley National Bancorp, 70 Speedwell Avenue, Morristown, New Jersey, 07960, by telephone at (973) 305-3380, by fax at (973) 305-1364 or by e-mail at tzarkadas@valley.com.

    Contact:   Michael D. Hagedorn
        Senior Executive Vice President and
        Chief Financial Officer
        973-872-4885

    The MIL Network –

  • MIL-OSI: Nasdaq Announces Quarterly Dividend of $0.24 Per Share

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Oct. 24, 2024 (GLOBE NEWSWIRE) — The Board of Directors of Nasdaq, Inc. (Nasdaq: NDAQ) has declared a regular quarterly dividend of $0.24 per share on the company’s outstanding common stock. The dividend is payable on December 20, 2024 to shareholders of record at the close of business on December 6, 2024. Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to approval by the Board of Directors.

    About Nasdaq

    Nasdaq (Nasdaq: NDAQ) is a leading global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions, and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at www.nasdaq.com.

    Cautionary Note Regarding Forward-Looking Statements

    Information set forth in this communication contains forward-looking statements that involve a number of risks and uncertainties. Nasdaq cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information. Such forward-looking statements include, but are not limited to, information regarding our dividend program and future payment obligations. Forward-looking statements involve a number of risks, uncertainties or other factors beyond Nasdaq’s control. These factors include, but are not limited to, Nasdaq’s ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk, U.S. and global competition, and other factors detailed in Nasdaq’s filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 10-K and quarterly reports on Form 10-Q which are available on Nasdaq’s investor relations website at http://ir.nasdaq.com and the SEC’s website at www.sec.gov. Nasdaq undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

    Media Relations Contacts:

    Nick Jannuzzi
    +1.973.760.1741
    Nicholas.Jannuzzi@Nasdaq.com

    Nick Eghtessad
    +1.929.996.8894
    Nick.Eghtessad@Nasdaq.com

    Investor Relations Contact:

    Ato Garrett
    +1.212.401.8737
    Ato.Garrett@Nasdaq.com

    -NDAQF-

    The MIL Network –

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

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

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

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

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

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

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

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

    Official trailer for The Terminator (1984)

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

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

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

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



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

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

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

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

    AI-controlled weapons systems

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

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

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

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

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

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

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

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

    ‘Loitering munitions’

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

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

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

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

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

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

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

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

    MIL OSI – Global Reports –

  • MIL-OSI: Key Advocates Urge CMS to Clarify that Fully Implanted Active Middle Ear Hearing Devices are Prosthetic Devices for Purposes of Medicare Coverage

    Source: GlobeNewswire (MIL-OSI)

    Twelve Members of the Independence Through Enhancement of Medicare and Medicaid (ITEM) Coalition Sign Letter to CMS Seeking Clarification of Prior Decision Making and Action to Bring Novel Hearing Technology to Medicare Beneficiaries

    WHITE BEAR LAKE, Minnesota, Oct. 24, 2024 (GLOBE NEWSWIRE) — Envoy Medical®, Inc. (“Envoy Medical”) (NASDAQ: “COCH”), a hearing health company focused on fully implanted hearing systems, expresses gratitude to the Independence Through Enhancement of Medicare and Medicaid (“ITEM”) Coalition and the twelve ITEM member signatories for sending a strong letter to CMS supporting a reconsideration of the benefit category for fully implanted active middle ear hearing devices.

    The letter states in part: “[W]e request that you please provide an explanation as to CMS’ reasoning for determining that fully implanted active middle ear hearing devices do not qualify as an exception to the hearing aid exclusion under statute. In addition, we believe CMS has the authority to reconsider their decision and urge you to clarify that this technology qualifies as a prosthetic device for purposes of Medicare coverage.”
    ITEM is a national consumer- and clinician-led coalition advocating for access to and coverage of assistive devices, technologies, and related services for people with injuries, illnesses, disabilities, and chronic conditions of all ages. Members represent individuals with a wide range of disabling conditions, as well as the providers who serve them.

    In the letter to CMS, ITEM referenced the profound impact that hearing loss has on quality of life of Medicare beneficiaries. The Hearing Loss Association of America (HLAA) and Alexander Graham Bell Association for the Deaf and Hard of Hearing (AGBA) were two of the twelve organizations willing to lend their voice and influence to the Medicare beneficiaries with significant hearing loss who want access to novel hearing implants.

    “We are grateful that the ITEM Coalition took up such a critically important issue and that twelve coalition member organizations signed the letter urging CMS to do the right thing,” commented Brent Lucas, Envoy Medical CEO. “It especially hits home that the Coalition’s mission is in their name — ‘Independence Through Enhancement of Medicare and Medicaid’ – and we strongly believe that fully implanted hearing devices can help Medicare beneficiaries with hearing impairments significantly regain, or maintain, a level of independence that is good for them and for society as a whole.”

    Envoy Medical is one of the few companies worldwide that has a fully implanted active middle ear implant and is currently the only company that has an FDA-approved, fully implanted active middle ear hearing device.

    About the Esteem® Fully Implanted Active Middle Ear Implant (FI-AMEI)

    The Esteem fully implanted active middle ear implant (FI-AMEI) is the only FDA-approved, fully implanted* hearing device for adults diagnosed with moderate to severe sensorineural hearing loss allowing for 24/7 hearing capability using the ear’s natural anatomy. The Esteem FI-AMEI hearing implant is invisible and requires no externally worn components and nothing is placed in the ear canal for it to function. Unlike hearing aids, you never put it on or take it off. You can’t lose it. You don’t clean it. The Esteem FI-AMEI hearing implant offers true 24/7 hearing.

    *Once activated, the external Esteem FI-AMEI Personal Programmer is not required for daily use.

    Important safety information for the Esteem FI-AMEI can be found at: https://www.envoymedical.com/safety-information.

    About the Fully Implanted Acclaim® Cochlear Implant

    We believe the fully implanted Acclaim Cochlear Implant (“Acclaim CI”) will be a first-of-its-kind fully implanted cochlear implant. Envoy Medical’s fully implanted technology includes a sensor designed to leverage the natural anatomy of the ear instead of a microphone to capture sound.

    The Acclaim CI is designed to address severe to profound sensorineural hearing loss that is not adequately addressed by hearing aids. The Acclaim CI is expected to be indicated for adults who have been deemed adequate candidates by a qualified physician.

    The Acclaim Cochlear Implant received the Breakthrough Device Designation from the U.S. Food and Drug Administration (FDA) in 2019. We believe the Acclaim CI was the first hearing-focused device to receive Breakthrough Device Designation.

    CAUTION The fully implanted Acclaim Cochlear Implant is an investigational device. Limited by Federal (or United States) law to investigational use.

    Additional Information and Where to Find It

    Copies of the documents filed by Envoy Medical with the SEC may be obtained free of charge at the SEC’s website at www.sec.gov.

    Forward-Looking Statements

    This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-Looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. Such statements may include, but are not limited to, statements regarding the expectations of Envoy Medical concerning the outlook for its business, productivity, plans and goals for future operational improvements and capital investments; the potential for passage of legislation or change to CMS’ position related to reimbursement for active middle ear hearing devices; the impact that such proposed legislation might have on the hearing health market, reimbursement for the Esteem FI-AMEI device, and the Envoy Medical business, and future market conditions or economic performance, as well as any information concerning possible or assumed future operations of Envoy Medical. The forward-looking statements contained in this press release reflect Envoy Medical’s current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause its actual results to differ significantly from those expressed in any forward-looking statement. Envoy Medical does not guarantee that the events described will happen as described (or that they will happen at all). These forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to changes in the market price of shares of Envoy Medical’s Class A Common Stock; changes in or removal of Envoy Medical’s shares inclusion in any index; Envoy Medical’s success in retaining or recruiting, or changes required in, its officers, key employees or directors; unpredictability in the medical device industry, the regulatory process to approve medical devices, and the clinical development process of Envoy Medical products; competition in the medical device industry, and the failure to introduce new products and services in a timely manner or at competitive prices to compete successfully against competitors; disruptions in relationships with Envoy Medical’s suppliers, or disruptions in Envoy Medical’s own production capabilities for some of the key components and materials of its products; changes in the need for capital and the availability of financing and capital to fund these needs; changes in interest rates or rates of inflation; legal, regulatory and other proceedings could be costly and time-consuming to defend; changes in applicable laws or regulations, or the application thereof on Envoy Medical; a loss of any of Envoy Medical’s key intellectual property rights or failure to adequately protect intellectual property rights; the effects of catastrophic events, including war, terrorism and other international conflicts; and other risks and uncertainties set forth in the section entitled “Risk Factors” and “Cautionary Note Regarding Forward Looking Statements” in the Annual Report on Form 10-K filed by Envoy Medical on April 1, 2024, and in other reports Envoy Medical files, with the SEC. If any of these risks materialize or Envoy Medical’s assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. While forward-looking statements reflect Envoy Medical’s good faith beliefs, they are not guarantees of future performance. Envoy Medical disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. You should not place undue reliance on any forward-looking statements, which are based only on information currently available to Envoy Medical. 

    ###

    Investor Contact:
    CORE IR
    516-222-2560
    investorrelations@envoymedical.com

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

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

    About FN Media Group:

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

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

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

    Contact Information:
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    SOURCE: FN Media Group

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

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

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

    The MIL Network –

  • MIL-OSI: Billion Dollar Commercial Drone Market Poised for Continued Growth, Driven by A.I. Technological Advances

    Source: GlobeNewswire (MIL-OSI)

    PALM BEACH, Fla., Oct. 24, 2024 (GLOBE NEWSWIRE) — FN Media Group News Commentary – The commercial drone market is experiencing significant growth due to increasing demand from various industries such as construction, agriculture, security, military applications and so much more. Drones offer benefits like cost savings, improved efficiency, and enhanced safety for businesses. Market size is projected to reach USD12.3 billion by 2025, driven by technological advancements and regulatory approvals. AI is driving market transformation… The global commercial drones market size is estimated to grow by USD $126.87 billion from 2024-2028, according to a report from Technavio. The market is estimated to grow at a CAGR of 57.74% during the forecast period. Rising applications of drones is driving market growth, with a trend towards new developments and launches of commercial drones. The report continued: “The commercial drones market is experiencing significant growth due to the continuous introduction of new drones, components, and software solutions by vendors. Companies across various industries are integrating drones into their operations for managing assets, monitoring sites, inspecting facilities, and capturing real-time data… featuring advanced autonomous flight technology and Artificial Intelligence, ensuring safe and stable flight in challenging environments. Such innovations increase the availability of advanced drone products and software solutions, fueling the adoption of commercial drones in the forecast period.” Active Tech Companies in the markets today include ZenaTech, Inc. (NASDAQ: ZENA), C3 AI (NYSE: AI), NVIDIA Corporation (NASDAQ: NVDA), SoundHound AI, Inc. (NASDAQ: SOUN), AeroVironment (NASDAQ: AVAV).

    “The Commercial Drone Market is experiencing significant growth, particularly in sectors like… Agriculture. Drones equipped with high-quality Cameras are trending, with VAPOR Helicopter leading the way. Artificial Intelligence and Machine Learning are revolutionizing Decision making in industries, from Inspection activities to Farm management. Hybrid drones, combining features of Quadcopters, Octocopters, and Hexacopters, are gaining popularity. In Agriculture, drones help reduce costs, increase Yield, and monitor crops using services like Raptor Maps. Filmmakers and Ecommerce sectors also benefit from aerial photography and warehouse management. The Commercial Drone Market is experiencing significant growth as Quadcopters, Octocopters, and Hexacopters find increasing applications in various sectors. Challenges in flight control, firmware, middleware, computer vision, and environmental awareness are being addressed through technological advances in electronics, computing, microcontrollers, and processors.”

    ZenaTech Inc. (NASDAQ:ZENA) Issues Big Development News Today on Adding Patent Assets to the Company – Get the full details by visiting: https://www.financialnewsmedia.com/news-zena/

    Additional Groundbreaking ZenaTech Inc. Developments this week include:

    ZenaTech Announced a Software Company Acquisition Adding Significant Capabilities to Building AI Drones – ZenaTech also announced that it has entered into an agreement to acquire ZooOffice Inc., the holding company for software companies Jadian and DeskFlex, from ZenaTech’s former parent company. The acquisition of these two software companies will provide important compliance and inspection software as well as scheduling and mapping software that will be incorporated into ZenaTech’s ZenaDrone AI drone solutions. This transaction further expands ZenaTech’s portfolio of SaaS software solutions and customer base and is expected to add to recurring revenue in the government sector among others. The acquisition is subject to shareholder and regulatory approvals that may be required.

    “Adding Jadian and DeskFlex software capabilities to the ZenaTech portfolio is part of our strategy to offer full stack, integrated AI drone solutions targeted to multiple sectors such as Agriculture. Jadian’s compliance software will be integrated with ZenaDrone drone hardware and sensors to help farmers track and manage regulatory and environmental requirements such as crop traceability, fertilizer and pesticide use, water conservation, and greenhouse gas emissions. Deskflex scheduling and mapping software will add value integrated into our property management sector solutions,” said CEO Shaun Passley, Ph.D. Read this full release at: https://finance.yahoo.com/news/zenatech-announces-software-company-acquisition-113000656.html

    Other recent developments in the technology industry include:

    C3 AI (NYSE: AI) recently announced the newly re-branded C3 AI Asset Performance Suite, a collection of powerful, purpose-built AI applications that work together to help enterprises maximize value and improve sustainability performance. The C3 AI Asset Performance Suite includes C3 AI Reliability, C3 AI Process Optimization, and C3 AI Energy Management. These applications offer enterprises optimized asset performance through improvements in operational efficiency across business units.

    “C3 AI is the leader in AI-powered predictive maintenance, and our customers are some of the most satisfied in the industry because our technology makes a positive impact on their bottom line and continually maximizes their investments,” said Thomas M. Siebel, CEO, C3 AI. “This re-brand of the C3 AI Asset Performance Suite is in recognition that customers realize the most value by deploying applications that work in concert together and address entire value chains; in this case, with predictive maintenance, process optimization, and energy management.”

    SoundHound AI, Inc. (NASDAQ: SOUN), a global leader in voice artificial intelligence, recently announced its SoundHound Chat AI voice assistant has launched new customization tools to help transform how automotive brands interact with their customers within the vehicle. The new features are currently being piloted with some of SoundHound’s OEM partners.

    In addition to the core features offered from SoundHound Chat AI’s best-in-class voice assistant – which integrates generative AI capabilities with car controls and real-time domains like flight times, navigation, and weather – OEMs will be able to take control with customizations that work for their loyal consumers and align closely with their identity as an automaker. This new layer of customization will provide drivers with a more engaging and informative experience, allowing them to explore vehicle features and functionalities with greater ease and effectiveness.

    AeroVironment (NASDAQ: AVAV) recently announced that the U.S. Army has awarded a $54.9 million delivery order for the production of Switchblade® loitering munition systems. The recently announced award includes an additional contract ceiling of $743 million with $54.9 million in new funding. This contract is issued as part of a broader, previously executed, indefinite delivery, indefinite quantity contract, and ensures continued support for both the U.S. Army and several allied partners, including Lithuania, Romania, and Sweden.

    Work on this contract will be performed in Simi Valley, California, with an estimated completion date of June 30, 2026. The award, which leverages fiscal 2023 and 2024 Army funds along with Foreign Military Sales, highlights AV’s ongoing commitment to delivering proven, battlefield-ready technology that meets the evolving needs of modern armed forces.

    NVIDIA Corporation (NASDAQ: NVDA) recently announced that it has contributed foundational elements of its NVIDIA Blackwell accelerated computing platform design to the Open Compute Project (OCP) and broadened NVIDIA Spectrum-X™ support for OCP standards.

    At this year’s OCP Global Summit, NVIDIA will be sharing key portions of the NVIDIA GB200 NVL72 system electro-mechanical design with the OCP community — including the rack architecture, compute and switch tray mechanicals, liquid-cooling and thermal environment specifications, and NVIDIA NVLink™ cable cartridge volumetrics — to support higher compute density and networking bandwidth.

    NVIDIA has already made several official contributions to OCP across multiple hardware generations, including its NVIDIA HGX™ H100 baseboard design specification, to help provide the ecosystem with a wider choice of offerings from the world’s computer makers and expand the adoption of AI.

    About FN Media Group:

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

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

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

    Contact Information:

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

    SOURCE: FN Media Group

    The MIL Network –

  • MIL-Evening Report: Want to build healthier cities? Make room for bird and tree diversity

    Source: The Conversation (Au and NZ) – By Rachel Buxton, Assistant Professor, Department of Biology, Carleton University

    More than five million Canadians — approximately one in eight of us — are living with a mood, anxiety or substance use disorder. The prevalence of mental disorders is on the rise, with a third of those with a disorder reporting unmet or partially met needs for mental health-care services.

    The stresses of the city, where more than 70 per cent of Canadians now live, can increase the risk of poor mental health even further.

    When most people think about caring for their mental health, they may think about getting more exercise, getting more sleep and making sure they’re eating healthy. Increasingly, research is showing that spending time in nature surrounded by plants and wildlife can also contribute to preventing and treating mental illness.

    Our research focuses on the importance of birds and trees in urban neighbourhoods in promoting mental well-being. In our study, we combined more than a decade of health and ecological data across 36 Canadian cities and found a positive association between greater bird and tree diversity and self-rated mental health.

    The well-being benefits of healthy ecosystems will probably not come as a great surprise to urban dwellers who relish days out in the park or hiking in a nearby nature reserve. Still, the findings of our study speak to the potential of a nature-based urbanism that promotes the health of its citizens.



    Read more:
    How the health of honeybee hives can inform environmental policies in Canadian cities

    Birds, trees and human connection

    Across cultures and societies, people have strong connections with birds. The beauty of their bright song and colour have inspired art, music and poetry. Their contemporary cultural relevance has even earned them an affectionate, absurdist internet nickname: “birbs”.

    There’s something magical about catching a glimpse of a bird and hearing birdsong. For many urbanites, birds are our daily connection to wildlife and a gateway to nature. In fact, even if we don’t realize it, humans and birds are intertwined. Birds provide us with many essential services — controlling insects, dispersing seeds and pollinating our crops.

    People have similarly intimate connections with trees. The terms tree of life, family trees, even tree-hugger all demonstrate the central cultural importance trees have in many communities around the world. In cities, trees are a staple of efforts to bring beauty and tranquility.

    When the Australian city of Melbourne gave urban trees email addresses for people to report problems, residents responded by writing thousands of love letters to their favourite trees. Forest bathing, a practice of being calm and quiet among trees, is a growing wellness trend.

    Birds and trees as promoters of urban wellness

    Contact with nature and greenspace have a suite of mental health benefits.

    Natural spaces reduce stress and offer places for recreation and relaxation for urban dwellers, but natural diversity is key. A growing amount of research shows that the extent of these benefits may be related to the diversity of different natural features.

    For example, in the United States, higher bird diversity is associated with lower hospitalizations for mood and anxiety disorders and longer life expectancy. In a European study, researchers found that bird diversity was as important for life satisfaction as income.

    People’s connection to a greater diversity of birds and trees could be because we evolved to recognize that the presence of more species indicates a safer environment — one with more things to eat and more shelter. Biodiverse environments are also less work for the brain to interpret, allowing restoration of cognitive resources.

    To explore the relationship between biodiversity and mental health in urban Canada, we brought together unique datasets. First, we collected bird data sourced from community scientists, where people logged their bird sightings on an app. We then compared this data with tree diversity data from national forest inventories.

    Finally, we compared both of these data sets to a long-standing health survey that has interviewed approximately 65,000 Canadians each year for over two decades.

    We found that living in a neighbourhood with higher than average bird diversity increased reporting of good mental health by about seven per cent. While living in a neighbourhood with higher than average tree diversity increased good mental health by about five per cent.

    Importance of urban birds and trees

    The results of our study, and those of others, show a connection between urban bird and tree diversity, healthy ecosystems and people’s mental well-being. This underscores the importance of urban biodiversity conservation as part of healthy living promotion.

    Protecting wild areas in parks, planting pollinator gardens and reducing pesticide use could all be key strategies to protect urban wildlife and promote people’s well-being. Urban planners should take note.



    Read more:
    Eco-anxiety: climate change affects our mental health – here’s how to cope

    We’re at a critical juncture: just as we are beginning to understand the well-being benefits of birds and trees, we’re losing species at a faster rate than ever before. It’s estimated that there are three billion fewer birds in North America compared to the 1970s and invasive pests will kill 1.4 million street trees over the next 30 years.

    By promoting urban biodiversity, we can ensure a sustainable and healthy future for all species, including ourselves.

    Rachel Buxton receives funding from Natural Sciences and Engineering Research Council of Canada, National Institutes of Health, and Environment and Climate Change Canada.

    Emma J. Hudgins received funding from the Natural Sciences and Engineering Research Council of Canada and the Fonds de Recherche du Québec – Nature et Technologies for this work. She currently receives funding from Plant Health Australia.

    Stephanie Prince Ware has received funding from the Canadian Institutes of Health Research.

    – ref. Want to build healthier cities? Make room for bird and tree diversity – https://theconversation.com/want-to-build-healthier-cities-make-room-for-bird-and-tree-diversity-235379

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI Global: Want to build healthier cities? Make room for bird and tree diversity

    Source: The Conversation – Canada – By Rachel Buxton, Assistant Professor, Department of Biology, Carleton University

    More than five million Canadians — approximately one in eight of us — are living with a mood, anxiety or substance use disorder. The prevalence of mental disorders is on the rise, with a third of those with a disorder reporting unmet or partially met needs for mental health-care services.

    The stresses of the city, where more than 70 per cent of Canadians now live, can increase the risk of poor mental health even further.

    When most people think about caring for their mental health, they may think about getting more exercise, getting more sleep and making sure they’re eating healthy. Increasingly, research is showing that spending time in nature surrounded by plants and wildlife can also contribute to preventing and treating mental illness.

    Our research focuses on the importance of birds and trees in urban neighbourhoods in promoting mental well-being. In our study, we combined more than a decade of health and ecological data across 36 Canadian cities and found a positive association between greater bird and tree diversity and self-rated mental health.

    The well-being benefits of healthy ecosystems will probably not come as a great surprise to urban dwellers who relish days out in the park or hiking in a nearby nature reserve. Still, the findings of our study speak to the potential of a nature-based urbanism that promotes the health of its citizens.



    Read more:
    How the health of honeybee hives can inform environmental policies in Canadian cities

    Birds, trees and human connection

    Across cultures and societies, people have strong connections with birds. The beauty of their bright song and colour have inspired art, music and poetry. Their contemporary cultural relevance has even earned them an affectionate, absurdist internet nickname: “birbs”.

    There’s something magical about catching a glimpse of a bird and hearing birdsong. For many urbanites, birds are our daily connection to wildlife and a gateway to nature. In fact, even if we don’t realize it, humans and birds are intertwined. Birds provide us with many essential services — controlling insects, dispersing seeds and pollinating our crops.

    People have similarly intimate connections with trees. The terms tree of life, family trees, even tree-hugger all demonstrate the central cultural importance trees have in many communities around the world. In cities, trees are a staple of efforts to bring beauty and tranquility.

    When the Australian city of Melbourne gave urban trees email addresses for people to report problems, residents responded by writing thousands of love letters to their favourite trees. Forest bathing, a practice of being calm and quiet among trees, is a growing wellness trend.

    Birds and trees as promoters of urban wellness

    Contact with nature and greenspace have a suite of mental health benefits.

    Natural spaces reduce stress and offer places for recreation and relaxation for urban dwellers, but natural diversity is key. A growing amount of research shows that the extent of these benefits may be related to the diversity of different natural features.

    For example, in the United States, higher bird diversity is associated with lower hospitalizations for mood and anxiety disorders and longer life expectancy. In a European study, researchers found that bird diversity was as important for life satisfaction as income.

    People’s connection to a greater diversity of birds and trees could be because we evolved to recognize that the presence of more species indicates a safer environment — one with more things to eat and more shelter. Biodiverse environments are also less work for the brain to interpret, allowing restoration of cognitive resources.

    To explore the relationship between biodiversity and mental health in urban Canada, we brought together unique datasets. First, we collected bird data sourced from community scientists, where people logged their bird sightings on an app. We then compared this data with tree diversity data from national forest inventories.

    Finally, we compared both of these data sets to a long-standing health survey that has interviewed approximately 65,000 Canadians each year for over two decades.

    We found that living in a neighbourhood with higher than average bird diversity increased reporting of good mental health by about seven per cent. While living in a neighbourhood with higher than average tree diversity increased good mental health by about five per cent.

    Importance of urban birds and trees

    The results of our study, and those of others, show a connection between urban bird and tree diversity, healthy ecosystems and people’s mental well-being. This underscores the importance of urban biodiversity conservation as part of healthy living promotion.

    Protecting wild areas in parks, planting pollinator gardens and reducing pesticide use could all be key strategies to protect urban wildlife and promote people’s well-being. Urban planners should take note.



    Read more:
    Eco-anxiety: climate change affects our mental health – here’s how to cope

    We’re at a critical juncture: just as we are beginning to understand the well-being benefits of birds and trees, we’re losing species at a faster rate than ever before. It’s estimated that there are three billion fewer birds in North America compared to the 1970s and invasive pests will kill 1.4 million street trees over the next 30 years.

    By promoting urban biodiversity, we can ensure a sustainable and healthy future for all species, including ourselves.

    Rachel Buxton receives funding from Natural Sciences and Engineering Research Council of Canada, National Institutes of Health, and Environment and Climate Change Canada.

    Emma J. Hudgins received funding from the Natural Sciences and Engineering Research Council of Canada and the Fonds de Recherche du Québec – Nature et Technologies for this work. She currently receives funding from Plant Health Australia.

    Stephanie Prince Ware has received funding from the Canadian Institutes of Health Research.

    – ref. Want to build healthier cities? Make room for bird and tree diversity – https://theconversation.com/want-to-build-healthier-cities-make-room-for-bird-and-tree-diversity-235379

    MIL OSI – Global Reports –

  • MIL-OSI Global: Your next favorite story won’t be written by AI – but it could be someday

    Source: The Conversation – USA – By Haoran Chu, Assistant Professor of Communications, University of Florida

    AI language models are getting pretty good at writing – but not so much at creative storytelling. Moor Studio/DigitalVision Vectors via Getty Images

    Stories define people – they shape our relationships, cultures and societies. Unlike other skills replaced by technology, storytelling has remained uniquely human, setting people apart from machines. But now, even storytelling is being challenged. Artificial intelligence, powered by vast datasets, can generate stories that sometimes rival, or even surpass, those written by humans.

    Creative professionals have been among the first to feel the threat of AI. Last year, Hollywood screenwriters protested, demanding – and winning – protections against AI replacing their jobs. As university professors, we’ve seen student work that seems suspiciously AI-generated, which can be frustrating.

    Beyond the threat to livelihoods, AI’s ability to craft compelling, humanlike stories also poses a societal risk: the spread of misinformation. Fake news, which once required significant effort, can now be produced with ease. This is especially concerning because decades of research have shown that people are often more influenced by stories than by explicit arguments and entreaties.

    We set out to study how well AI-written stories stack up against those by human storytellers. We found that AI storytelling is impressive, but professional writers needn’t worry – at least not yet.

    The power of stories

    How do stories influence people? Their power often lies in transportation – the feeling of being transported to and fully immersed in an imagined world. You’ve likely experienced this while losing yourself in the wizarding world of Harry Potter or 19th-century English society in “Pride and Prejudice.” This kind of immersion lets you experience new places and understand others’ perspectives, often influencing how you view your own life afterward.

    When you’re transported by a story, you not only learn by observing, but your skepticism is also suspended. You’re so engrossed in the storyline that you let your guard down, allowing the story to influence you without triggering skepticism in it or the feeling of being manipulated.

    Given the power of stories, can AI tell a good one? This question matters not only to those in creative industries but to everyone. A good story can change lives, as evidenced by mythical and nationalist narratives that have influenced wars and peace.

    Storytelling can be powerfully influential – especially if people sense the human behind the words.
    georgeclerk/E+ via Getty Images

    Studying whether AI can tell compelling stories also helps researchers like us understand what makes narratives effective. Unlike human writers, AI provides a controlled way to experiment with storytelling techniques.

    Head-to-head results

    In our experiments, we explored whether AI could tell compelling stories. We used descriptions from published studies to prompt ChatGPT to generate three narratives, then asked over 2,000 participants to read and rate their engagement with these stories. We labeled half as AI-written and half as human-written.

    Our results were mixed. In three experiments, participants found human-written stories to be generally more “transporting” than AI-generated ones, regardless of how the source was labeled. However, they were not more likely to raise questions about AI-generated stories. In multiple cases, they even challenged them less than human-written ones. The one clear finding was that labeling a story as AI-written made it less appealing to participants and led to more skepticism, no matter the actual author.

    Why is this the case? Linguistic analysis of the stories showed that AI-generated stories tended to have longer paragraphs and sentences, while human writers showed more stylistic diversity. AI writes coherently, with strong links between sentences and ideas, but human writers vary more, creating a richer experience. This also points to the possibility that prompting AI models to write in more diverse tones and styles may improve their storytelling.

    These findings provide an early look at AI’s potential for storytelling. We also looked at research in storytelling, psychology and philosophy to understand what makes a good story.

    We believe four things make stories engaging: good writing, believability, creativity and lived experience. AI is great at writing fluently and making stories believable. But creativity and real-life experiences are where AI falls short. Creativity means coming up with new ideas, while AI is designed to predict the most likely outcome. And although AI can sound human, it lacks the real-life experiences that often make stories truly compelling.

    Closing in?

    It’s too early to come to a definitive conclusion about whether AI can eventually be used for high-quality storytelling. AI is good at writing fluently and coherently, and its creativity may rival that of average writers. However, AI’s strength lies in predictability. Its algorithms are designed to generate the most likely outcome based on data, which can make its stories appealing in a familiar way. This is similar to the concept of beauty in averageness, the documented preference people have for composite images that represent the average face of a population. This predictability, though limiting true creativity, can still resonate with audiences.

    For now, screenwriters and novelists aren’t at risk of losing their jobs. AI can tell stories, but they aren’t quite on par with the best human storytellers. Still, as AI continues to evolve, we may see more compelling stories generated by machines, which could pose serious challenges, especially when they’re used to spread misinformation.

    The authors do not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    – ref. Your next favorite story won’t be written by AI – but it could be someday – https://theconversation.com/your-next-favorite-story-wont-be-written-by-ai-but-it-could-be-someday-239284

    MIL OSI – Global Reports –

  • MIL-OSI Global: Light and sound art show Eclipse by Nonotak is an immersive and sensory experience

    Source: The Conversation – UK – By Rob Flint, Senior Lecturer Nottingham in the School of Art and Design, Nottingham Trent University

    Audiovisual art is changing rapidly. Increasingly powerful projectors, screens and lighting rigs with integrated control systems, pervade the interwoven worlds of cinema, gallery and concert halls. These changes blur the borders of the art form with gaming, club and gig visuals, semi-permanent immersive experiences, and giant outdoor screens and projection-mapped buildings.

    I’m fascinated by electronic light and sound in art, music and cinema, and so was curious to experience Eclipse, “a spatial light and sound experience” by Japanese art studio Nonotak (Noemi Schipfer and Takami Nakamoto).

    You enter the exhibition into a darkened lounge bar that features the first of three separate experiences: a flat, wall-based light work titled Highway that gives a powerful sense of horizontal motion from the stepped sequence of flashing white bands of light.

    The next, Dual, is a large sound and light space that uses the kind of directional lighting seen onstage at concerts to make deep spatial patterns with beams of light against a soft haze.

    The third, Hidden Shadow, returns us to an image-based experience with directional seating and a large flat LED wall, on which shifting and dissolving points continually redefine a circle, linked to powerful overhead strobe-type lights in a way that seems to reference the installation title.

    These are all monochrome, programmed in sequences, with continuous repetition. Although the timed-entry system seems to encourage the viewer’s movement through the spaces, roughly corresponding to their duration, ending again in the lounge and bar area.

    Immersed in pulsing light and sound, I look for coordinates to ground my experience. There’s a long history of artists making light and sound do things simultaneously. Psychedelia seems an obvious ancestor.

    Even before Hoppy Hopkins made liquid light swirl to the sound of Pink Floyd at London’s UFO club in the 1960s, pioneers in the US and Europe had constructed “colour organs” to play coloured lights in a musical way and painted glass slides for theatre projection, to access the synaesthesia (a neurodivergent condition that links the senses in unexpected ways) which was believed by some to be buried deep in all of us.

    Animated film is part of this story, with Disney’s Fantasia the best-known union of music and visual movement in early popular film history, though modernists like Oskar Fischinger (who contributed to Fantasia) and Viking Eggeling made more austere abstract combinations of rhythm and graphic object for avant-garde audiences.

    Nearby the Eclipse venue, the Tate Modern shows Anthony McCall’s 1970’s Solid Light installation works. Originally developed on clattering 16mm celluloid film for dusty and cigarette-smoke-filled social spaces, they play quietly and continually now on digital projectors with programmed haze machines in a clean, purpose-built gallery.

    Closer in appearance (and in time) to the work of Nonotak are audiovisual artists like Carsten Nicolai and Ryoji Ikeda. They reconfigured the “visual music” tradition with a stripped-down and often monochromatic union of sound and light, bringing the precision of post-digital graphics to minimal techno and dub or the spookiness of glitch electronica to what is often now referred to as “a/v performance”.

    Ikeda’s 2017 installation test pattern explored a similar aesthetic across the river at London’s 180 Strand Studios, home of another organisation dedicated to expanded audiovisual art.

    Lumen Studios, who curated and presented the show, are aiming Eclipse at programmers, graphic designers and “edgy people”, literate in gaming, coding, NFTs, cryptocurrencies and other screen-based worlds and objects.

    These are not necessarily the same people who would connect McCall’s lines of “solid light” to 1970s Materialist Cinema’s highly political demand to reject the “illusionistic” conventions of mainstream realist film. Nor should they have to.

    The human eye is trained differently than it was when television ended before midnight and cinemas were not rivalled by streamed media on demand. This space could have entirely different reference points to those I am evoking. Set design, for example. On their website, Nonotak cites scenography, theatre, film, dance, architecture, and drawing among their areas of practice.

    So maybe now it’s me that is the performer, on, or inside, a virtual stage or film set. Standing in the largest of the three installations, Dual, I feel as though I might be running from an alien on a giant transport ship heading for Mars.

    I could also be in a more earth-bound comparison, standing at the back of a giant warehouse party, or a rave, away from the crush of dancing bodies while still in the synchronised cocoon of sensory electronics. It is visual, but also physical, and it creates a powerful kinetic dislocation from the space in which it is situated.

    This last comparison highlights the “in-between” nature of the Eclipse installations in its temporary accommodation in Bermondsey. The cocktail bar points gently (and legally) towards the hedonism of gigs and raves, but the regulated entry system suggests a more institutional mode of attention, closer to the time-stamped immersive museum experience or even a live-action gaming environment, like an upmarket Laserquest.

    Similarly, the audio, filled with effectively light-synchronised rhythmic pulsing, doesn’t have the gut-level bass of a contemporary club or music venue sound system. And while the slightly disembodied vitality of Dual made me think about dancing and moving in a slightly different way, it isn’t a dance floor.

    Nor did it make promises of that kind. So this is less a criticism of the work than a recognition that my coordinates will always need updating, as the spaces we move through adapt to different forms of attention. If our species is fortunate enough to continue devoting time, technology, materials and labour to human sensory curiosity in the decades that follow, there will be more hybrid collisions of light, sound, image, rhythm, music, in real and imaginary, actual and virtual, space. I very much hope so.

    Eclipse by Nonotak is on until December 8 2024 at 47 Tanner St, London


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

    – ref. Light and sound art show Eclipse by Nonotak is an immersive and sensory experience – https://theconversation.com/light-and-sound-art-show-eclipse-by-nonotak-is-an-immersive-and-sensory-experience-241529

    MIL OSI – Global Reports –