NewzIntel.com

Category: Finance

  • MIL-OSI USA: 10.22.2024 Cruz, Lankford Challenge Biden-Harris Administration’s ‘Gender Identity’ Guidance Targeting Women, People of Faith

    US Senate News:

    Source: United States Senator for Texas Ted Cruz
    ASHINGTON, D.C. – U.S. Sen. Ted Cruz (R-Texas), member of the Senate Judiciary Committee and Ranking Member of the Subcommittee on the Constitution, and Sen. James Lankford (R-Okla.) sent a letter to the Department of Health and Human Services (HHS) Secretary Xavier Becerra about new guidance from HHS that compels speech, targets the ability of federal employees to practice their faith, and endangers women.
    In the letter, the senators wrote, “We write out of deep concern over Guidance you issued entitled ‘Gender Identity Non-Discrimination and Inclusion Policy for Employees and Applicants.’… According to the Guidance, failure to use the preferred names and pronouns an individual asks to be addressed with ‘contribute[s] to an unlawful hostile work environment.’ Notably, your Guidance states that the Department cannot ‘require a legal change of name or gender marker, medical certification, or other documentation.’ In other words, anyone can change their names and pronouns and compel coworkers to use that name or pronoun, or face disciplinary action.
    “Perhaps more egregious than the Guidance’s position on compelled speech related to pronoun usage is the policy on bathroom, locker room, and lactation room usage. According to the Guidance, HHS will ‘ensure there are no barriers to equally accessing restrooms, locker rooms, lactation rooms, or other personal care spaces.’… Including lactation rooms in this same Guidance is blatantly offensive—males cannot breastfeed their children, and claiming to be female does not change that reality. The only reason for including this in the Guidance is to continue to push a radical agenda in every facet of the federal workplace.”
    Sens. Cruz and Lankford were joined by Sens. Jim Risch (R-Idaho), Mike Lee (R-Utah), Marco Rubio (R-Fla.), and Steve Daines (R-Mont.) in signing the letter.
    Read the full letter here or below:
    Dear Mr. Secretary:
    We write out of deep concern over Guidance you issued entitled “Gender Identity Non-Discrimination and Inclusion Policy for Employees and Applicants.” This Guidance denies science, compels speech, jeopardizes the ability of federal employees to practice their faith without fear of retaliation, endangers women, and further erodes the American people’s trust in public institutions. We urge you to reverse course and rescind this Guidance.
    According to the Guidance, failure to use the preferred names and pronouns an individual asks to be addressed with “contribute[s] to an unlawful hostile work environment.” Notably, your Guidance states that the Department cannot “require a legal change of name or gender marker, medical certification, or other documentation.” In other words, anyone can change their names and pronouns and compel coworkers to use that name or pronoun, or face disciplinary action. The Guidance also stipulates that training on this guidance will be included in “all new employee training.” It also says additional trainings regarding gender identity will be made available, and that “specialized training” may be deemed necessary “for particular offices or Department-wide.” There is no mention anywhere in the Guidance about accommodations for those with religious or conscience objections to the compelled use of incorrect pronouns.
    In addition to violating extremely clear, long-standing Supreme Court precedents on compelled speech, reaffirmed as recently as 303 Creative v Elenis, this also violates Title VII of the Civil Rights Act of 1964, as well as the Religious Freedom Restoration Act. In forcing employees to choose between deeply held religious beliefs or losing their job, HHS is creating a hostile work environment for employees.
    Perhaps more egregious than the Guidance’s position on compelled speech related to pronoun usage is the policy on bathroom, locker room, and lactation room usage. According to the Guidance, HHS will “ensure there are no barriers to equally accessing restrooms, locker rooms, lactation rooms, or other personal care spaces.” The Guidance notes that, “HHS will not condition this access on an employee having undergone or providing proof of gender-affirming surgeries or other medical procedures.” Further, if any employees are made uncomfortable by having to share bathrooms, locker rooms, or lactation rooms with individuals using the wrong space, they will be directed to use other facilities, because “employees will not be barred from using the restroom consistent with their gender identity.”
    Given the Guidance’s stipulation on not requiring any evidence of gender dysphoria or gender transition procedures, women could be forced to be exposed to fully male anatomy in the bathroom or in the locker room. This creates a hostile work environment for women who may have no other option than using the facilities at work. A female employee who has used a women’s restroom for more than a decade will be told that she has to find a new option for a restroom if she is uncomfortable with a biological male in her restroom. Women deserve better. Including lactation rooms in this same Guidance is blatantly offensive—males cannot breastfeed their children, and claiming to be female does not change that reality. The only reason for including this in the Guidance is to continue to push a radical agenda in every facet of the federal workplace.
    Finally, the Guidance’s denial of science—and incorporation of that denial into the hiring, firing, and promotion process—raises questions about the work and research being done through the HHS. Gender is not, as the Guidance erroneously asserts, “a social construct of identities, norms, behaviors, and roles that vary between societies over time.” There are only two sexes: male and female. Research by the HHS at taxpayer expense should not be done in contravention of that scientific and self-evident fact.
    HHS is rapidly losing the confidence of the American people over the last three years. According to Pew Research polling, in 2020, HHS had a favorable/unfavorable rating of 73/19. In 2023, that favorability metric had plummeted to 55/30. By rejecting science and diving deeper into the culture wars, HHS risks further undermining faith in critical public institutions. We urge you to rescind this Guidance, and request answers to the following questions no later than October 30.
    In your response to a Finance Committee question for the record, you stated that this Guidance does not change any religious protections for employees, but you did not answer whether there was a specific exemption process in place for this guidance. What exemption process is HHS providing to employees and managers being required to follow or implement this guidance based on religious or conscience objections?
    Please provide detailed account of the exemption process; how HHS is ensuring employees are aware of this process; if individuals have to apply for an exemption; and how many individuals have received exemptions.
    The Guidance requires managers who become aware of “derogatory remarks or demeaning behaviors” to “take appropriate steps to immediately and effectively stop these activities.”
    Is an employee’s refusal to use preferred name or pronouns considered “derogatory remarks or demeaning behavior?”
    What does HHS consider “appropriate steps?”
    How many HHS employees have faced employment consequences of any type for not abiding this guidance?
    The Guidance refers to updating websites, policies, programs, trainings, and publications to “replace gendered language with gender-neutral and gender-inclusive language.”
    Please provide detailed accounts of how many hours have already or will be used on this, the total cost of updating training materials, and any other expenses incurred as a result of this change.
    Will information pertaining to male and female specific medical issues—including testicular or ovarian cancer, maternal health, etc.—also be changed to gender neutral language?
    The Guidance creates an “LGBTQI+ Coordinating Committee.”
    Who will determine the members of this committee?
    What funds will be used to pay for the activities of this committee?
    Will there be a member on this committee dedicated to ensuring the protection of employees with religious and conscience objections?
    On what statutory authority does HHS base this Guidance?
    We look forward to your prompt response.
    Sincerely,
    /X/

    MIL OSI USA News –

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

    US Senate News:

    Source: United States Senator for Pennsylvania Bob Casey

    Funding will help improve the terminal building

    Airport Terminal Program funding comes from infrastructure law

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

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

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

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

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

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

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

    MIL OSI USA News –

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

    US Senate News:

    Source: United States Senator for Pennsylvania Bob Casey

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

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

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

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

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

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

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

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

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

    MIL OSI USA News –

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

    US Senate News:

    Source: United States Senator for Pennsylvania Bob Casey

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

    Airport Terminal Program funding comes from infrastructure law

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

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

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

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

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

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

    MIL OSI USA News –

  • MIL-OSI Security: Prior felon pleads guilty to multiple drug and gun charges

    Source: Office of United States Attorneys

    BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Nader Ngoopos a/k/a Nike, 25, of Buffalo, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiracy to possess with intent to distribute, and distribute, 500 grams or more of cocaine and 100 grams or more of heroin, possession of a firearm in furtherance of a crime of violence, and being a felon in possession of a firearm and ammunition. The charges carry a mandatory minimum penalty of five years in prison, a maximum of life and a $5,000,000 fine.

    Assistant U.S. Attorney Evan K. Glaberson, who is handling the case, stated that between 2016, and late 2018, Ngoopos agreed with others to obtain cocaine and heroin in the Buffalo area and travel to Olean, NY, to distribute the cocaine and heroin. Ngoopos personally traveled to Olean on at least a weekly basis, selling cocaine and heroin out of various locations in Olean, including North 8th Street and South 11th Street. Co-conspirators also sold cocaine and heroin as part of the conspiracy on a weekly basis.

    On October 15, 2018, Ngoopos participated in an armed robbery at St. Bonaventure University in Olean, with two others. The three gained entry to a dormitory at St. Bonaventure, and broke into a dorm room where Ngoopos, who possessed a firearm,  believed he and his co-conspirators would find marijuana and money. Once they gained entry, Ngoopos and his co-conspirators pointed their firearms at the heads of the two occupants of the dorm room, threatened them, and then stole about an ounce of marijuana and approximately $300 – $400.

    On September 2, 2021, law enforcement officers observed Ngoopos get into a vehicle in Buffalo. Officers attempted to stop the vehicle, but it sped away leading officers on a high-speed chase. Eventually, the car came to a stop on East Amherst Street. As the car came to a stop, Ngoopos got out of the car and ran away, dropping a pistol. In June 2020, Ngoopos was convicted in Cattaraugus County Court of a felony and legally prohibited from possessing a firearm and ammunition.

    The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the Olean Police Department, under the direction of Chief Ron Richardson, the Cattaraugus County Sheriff’s Office, under the direction of Sheriff Timothy Whitcomb, the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia, and the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia.

    Sentencing is scheduled for February 21, 2025, at 1:00 p.m. before Judge Sinatra.

    # # # #

    MIL Security OSI –

  • MIL-OSI New Zealand: First Responders – Waikato wetland fire update #6

    Source: Fire and Emergency New Zealand

    Fire and Emergency New Zealand crews have started the third day of fighting a large vegetation fire near Meremere, which includes the Whangamarino wetlands.
    Incident Controller Mark Tinworth says the fire now has a perimeter of 15 kilometres and has burned more than 1,000 hectares of land.
    “This is a large fire and it could take some days to bring it under control properly,” he says.
    “Peat fires are particularly challenging, as they can continue to burn underground and can be hard to find and extinguish.”
    There are currently more than 50 Fire and Emergency personnel involved in the firefighting operation, supported by helicopters and fixed-wing aircraft.
    Fire Investigators are on the scene, but an origin and cause of the fire have not yet been confirmed.
    “There is a lot of smoke in the area, so we’re advising local people to keep windows and doors closed, and to avoid the area altogether if possible.”

    MIL OSI New Zealand News –

  • MIL-OSI Security: Whitehorse — Crime Reduction Unit arrests repeat offender

    Source: Royal Canadian Mounted Police

    At approximately 4 pm on October 16, 2024, members of Yukon Crime Reduction Unit, assisted by Whitehorse Detachment General Investigation Section arrested 34-year-old Marcus Hickey. Mr. Hickey was wanted on an un-endorsed warrant for two counts of breaching a release order.

    Hickey resisted arrest and subsequently struck an officer in the eye. Both Mr. Hickey and the officer were evaluated at Whitehorse General Hospital for minor injuries.

    Mr. Hickey while in the process of being transported from Whitehorse General Hospital to the Arrest Processing Unit, pushed police and attempted to grab items on the officer’s duty belt. Mr. Hickey then attempted to flee from police by running away but was quickly caught and arrested.

    Mr. Hickey was charged with: attempting to disarm a police officer, two counts of assault on a police officer, two counts of resist arrest, and escape lawful custody.

    Mr. Hickey currently has 31 charges before the courts. His next appearance is October 30, 2024.

    MIL Security OSI –

  • MIL-OSI Security: Deputy U.S. Marshal Receives 40 Under 40 Leadership Award at IACP Conference

    Source: US Marshals Service

    On Tuesday, October 22, 2024, Deputy U.S. Marshal Maggie Barone received the 2024 International Association of Chiefs of Police (IACP) 40 Under 40 Award at IACP’s annual conference in Boston, Massachusetts. This award program is designed to recognize 40 law enforcement professionals under the age of 40 from around the world who demonstrate leadership and exemplify commitment to their profession.

    “Deputy Barone embodies what it means to be a great leader and consistently demonstrates exemplary initiative and steadfast determination in her assignments,” said U.S. Marshals Service (USMS) Director Ronald L. Davis, who attended the event. “The level of excellence, dedication, and professionalism she brings with her makes her an ideal recipient of this prestigious award.”

    “Deputy Barone typifies the U.S. Marshals Service’s values of leadership, innovation, and public safety, and brings her extraordinary commitment to apprehending dangerous fugitives, advancing cutting-edge technology, and solving cold cases,” said Investigative Operations Division Assistant Director Peter Marketos. “She has made a profound impact on our agency and the communities we serve.”

    Barone currently serves as the Assistant Chief of the USMS’ Office of Operational Technologies, which is dedicated to pioneering and implementing cutting-edge investigative technologies that enhance the effectiveness and efficiency of law enforcement, while steadfastly upholding and protecting civil liberties.

    Over the past year, Barone served a temporary duty and promotion assignment as the Assistant Chief of the Criminal Intelligence Branch, with a direct oversight role as program manager of SHIELD, a first-of-its-kind technology, enabling Deputies, Investigators, and Task Force Officers to access certain criminal information via agency-issued mobile devices. Barone not only ensured the endeavor succeeded but accomplished this feat under budget and ahead of schedule. 

    “It is an honor to be named alongside such a remarkable group as one of this year’s 40 under 40. Throughout my career with the Marshals Service, I have worked with some of the most hard working and dedicated folks in law enforcement, who have inspired me each step of the way,” Barone said. “This award is not just a reflection of one person’s accomplishments, but that of a team. We never succeed alone, and I want to say thank you to everyone on my team!”

    Barone is a founding member and primary manager of one of the USMS’ newest initiatives, the Cold and Complex Cases (C3) Program. Having read a study regarding fugitive investigations that showed, after 3 years, the chances of finding a fugitive are low, Barone initiated C3 to intervene sooner and more intensely on the USMS’s most significant cold cases.

    Barone has also been part of several national initiatives including USMS’s 15 Most Wanted and has appeared on media programs to further educate the public about USMS and certain high-profile cases. 

    Director Davis with IACP 40 Under 40 Award recipient Assistant Chief Maggie Barone of the Investigative Operations Division.

    MIL Security OSI –

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

    • A regular quarterly dividend of $0.015 per share and a special dividend of $0.05 per share were declared and paid in the third quarter. For the nine-month period, regular quarterly dividends totalled $0.04375 per share. Regular and special dividends declared and paid in the first three quarters of 2024 totalled $4.8 million;
    • In the nine-month period ended September 30, 2024, Pulse purchased and cancelled, through its normal course issuer bid, 3.2% of the shares outstanding at December 31, 2023, for a total of 1,686,300 common shares at a total cost of approximately $3.7 million (at an average cost of $2.17 per common share including commissions);
    • At September 30, 2024, Pulse was debt-free and held cash of $7.5 million;
    • Shareholder free cash flow(a) was $1.1 million ($0.02 per share basic and diluted) for the third quarter of 2024 compared to $2.8 million ($0.05 per share basic and diluted) for the comparable period in 2023. Shareholder free cash flow was $10.0 million ($0.19 per share basic and diluted) for the nine months ended September 30, 2024, compared to $13.9 million ($0.26 per share basic and diluted) for the nine months ended September 30, 2023;
    • EBITDA(a) was $1.1 million ($0.02 per share basic and diluted) for the three months ended September 30, 2024, compared to $3.3 million ($0.06 per share basic and diluted) for the three months ended September 30, 2023. EBITDA was $11.7 million ($0.23 per share basic and diluted) for the nine months ended September 30, 2024, compared to $16.8 million ($0.32 per share basic and diluted) for the nine months ended September 30, 2023;
    • For the three months ended September 30, 2024, there was a net loss of $1.4 million ($0.03 per share basic and diluted) compared to net earnings of $393,000 ($0.01 per share basic and diluted) for the three months ended September 30, 2023. Net earnings for the nine months ended September 30, 2024, was $2.6 million ($0.05 per share basic and diluted) compared to net earnings of $6.7 million ($0.13 per share basic and diluted) for the nine months ended September 30, 2023; and
    • Total revenue was $2.7 million for the three months ended September 30, 2024, compared to $5.1 million for the three months ended September 30, 2023. For the nine months ended September 30, 2024, total revenue was $17.8 million compared to $22.3 million for the nine months ended September 30, 2023.
     
    SELECTED FINANCIAL AND
    OPERATING INFORMATION    		          
               
               
    (Thousands of dollars except per share data, Three months ended
    September 30,    		 Nine months ended
    September 30,    		 Year ended
    numbers of shares and kilometres of seismic data) 2024 2023 2024 2023 December 31,
      (Unaudited) (Unaudited) 2023
    Revenue        
    Data library sales 2,726 5,103 17,803 22,266 39,127
               
    Amortization of seismic data library 2,278 2,273 6,827 6,833 9,103
    Net earnings (loss) (1,405) 393 2,617 6,700 15,007
    Per share basic and diluted (0.03) 0.01 0.05 0.13 0.28
    Cash provided by operating activities 2,665 10,564 11,860 16,524 23,524
    Per share basic and diluted 0.05 0.20 0.23 0.31 0.44
    EBITDA (a) 1,064 3,289 11,711 16,839 30,431
    Per share basic and diluted (a) 0.02 0.06 0.23 0.32 0.57
    Shareholder free cash flow (a) 1,061 2,793 9,968 13,883 24,829
    Per share basic and diluted (a) 0.02 0.05 0.19 0.26 0.47
               
    Capital expenditures          
    Seismic data – – 225 – –
    Property and equipment 45 14 45 28 28
    Total capital expenditures 45 14 270 28 28
               
    Dividends          
    Regular dividends 766 731 2,255 2,138 2,862
    Special dividends 2,548 7,992 2,548 7,992 18,519
    Total dividends 3,314 8,723 4,803 10,130 21,381
               
    Normal course issuer bid          
    Number of shares purchased and cancelled 519,500 853,158 1,686,300 945,506 1,005,006
    Cost of shares purchased and cancelled 1,245 1,670 3,653 1,830 1,943
               
    Weighted average shares outstanding          
    Basic and diluted 51,071,111 53,135,041 51,640,483 53,436,340 53,237,569
    Shares outstanding at period-end     50,935,563 52,681,363 52,621,863
               
    Seismic library          
    2D in kilometres     829,207 829,207 829,207
    3D in square kilometres     65,310 65,310 65,310
               

    FINANCIAL POSITION AND RATIO

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

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

    OUTLOOK

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

    CORPORATE PROFILE

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

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

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

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

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

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

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

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

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

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

    The MIL Network –

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

    By Sialai Sarafina Sanerivi in Apia

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

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

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


    Commonwealth pushes for ocean protection with historic Apia Ocean Declaration. Video: Samoa Observer

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    “Oceans are the most underfunded area.

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

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

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

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

    Republished from the Samoa Observer with permission.

    MIL OSI Analysis – EveningReport.nz –

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

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

    Damitha Jayawardena/Shutterstock

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

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

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

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

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

    Striking the right balance

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

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

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

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

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

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

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

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

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

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

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

    It’s time for carbon pricing

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

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

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

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

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

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

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

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

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

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

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

    A carbon solutions levy

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

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

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

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

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

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

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

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

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

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

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

    Regional considerations

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

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

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

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

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

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

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

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

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

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

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

    The alternatives to carbon pricing are weak

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI USA: Congressman Cohen Announces $3 Million Grant for Memphis International Airport

    Source: United States House of Representatives – Congressman Steve Cohen (TN-09)

    MEMPHIS – Congressman Steve Cohen (TN-9), a senior member of the Committee on Transportation and Infrastructure and Ranking Member of its Aviation Subcommittee, today announced that the Memphis International Airport will receive $3 million for the reconstruction of a portion of the Terminal Access Road which will allow for the expansion of the terminal building. The work will provide easier access to the front of the airport, including for Americans with Disabilities Act (ADA) passengers, where four lanes will be curb-less. The funding came from the Infrastructure Investment and Jobs Act that Congressman Cohen alone among the current Tennessee Congressional Delegation voted for.

    Congressman Cohen made the following statement:

    “This Airport Terminal Program funding will enhance Americans with Disabilities Act access and allow for the expansion of the terminal building at our airport. Memphis International Airport is an economic engine for our entire region. This investment strengthens its ability to attract and serve the flying public.”

    # # #

     

    MIL OSI USA News –

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

    Source: GlobeNewswire (MIL-OSI)

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

    QUARTER HIGHLIGHTS (3rdQuarter 2024 versus 2ndQuarter 2024)

    Income Statement

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

    Balance Sheet

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

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

    Discussion of Operating Results

    Net Interest Income/Net Interest Margin

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

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

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

    Provision for Credit Losses

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

    Noninterest Income and Noninterest Expense

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

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

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

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

    Income Taxes

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

    Discussion of Financial Condition

    Earning Assets

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

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

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

    Allowance for Credit Losses

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

    Credit Quality

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

    Deposits

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

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

    Liquidity

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

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

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

    Capital

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

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

    About Capital City Bank Group, Inc.

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

    FORWARD-LOOKING STATEMENTS

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

    USE OF NON-GAAP FINANCIAL MEASURES
    Unaudited

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

    The GAAP to non-GAAP reconciliations are provided below.

    (Dollars in Thousands, except per share data) Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023
    Shareowners’ Equity (GAAP)     $ 476,499   $ 460,999   $ 448,314   $ 440,625   $ 419,706  
    Less: Goodwill and Other Intangibles (GAAP)       92,813     92,853     92,893     92,933     92,973  
    Tangible Shareowners’ Equity (non-GAAP) A     383,686     368,146     355,421     347,692     326,733  
    Total Assets (GAAP)       4,225,316     4,225,695     4,259,922     4,304,477     4,138,287  
    Less: Goodwill and Other Intangibles (GAAP)       92,813     92,853     92,893     92,933     92,973  
    Tangible Assets (non-GAAP) B   $ 4,132,503   $ 4,132,842   $ 4,167,029   $ 4,211,544   $ 4,045,314  
    Tangible Common Equity Ratio (non-GAAP) A/B     9.28%     8.91%     8.53%     8.26%     8.08%  
    Actual Diluted Shares Outstanding (GAAP) C     16,980,686     16,970,228     16,947,204     17,000,758     16,997,886  
    Tangible Book Value per Diluted Share (non-GAAP) A/C   $ 22.60   $ 21.69   $ 20.97   $ 20.45   $ 19.22  
     
    CAPITAL CITY BANK GROUP, INC.                      
    EARNINGS HIGHLIGHTS                      
    Unaudited                      
                           
        Three Months Ended   Nine Months Ended  
    (Dollars in thousands, except per share data)   Sep 30, 2024   Jun 30, 2024   Sep 30, 2023   Sep 30, 2024   Sep 30, 2023  
    EARNINGS                      
    Net Income Attributable to Common Shareowners $ 13,118 $ 14,150 $ 12,655 $ 39,825 $ 40,539  
    Diluted Net Income Per Share $ 0.78 $ 0.83 $ 0.74 $ 2.35 $ 2.38  
    PERFORMANCE                      
    Return on Average Assets (annualized)   1.24 % 1.33 % 1.19 % 1.26 % 1.26 %
    Return on Average Equity (annualized)   10.87   12.23   11.74   11.39   13.00  
    Net Interest Margin   4.12   4.02   4.03   4.05   4.04  
    Noninterest Income as % of Operating Revenue   32.67   33.30   29.87   32.69   31.25  
    Efficiency Ratio   71.81 % 68.61 % 69.88 % 70.49 % 67.07 %
    CAPITAL ADEQUACY                      
    Tier 1 Capital   16.77 % 16.31 % 15.11 % 16.77 % 15.11 %
    Total Capital   17.97   17.50   16.30   17.97   16.30  
    Leverage   10.89   10.51   9.98   10.89   9.98  
    Common Equity Tier 1   14.88   14.44   13.26   14.88   13.26  
    Tangible Common Equity (1)   9.28   8.91   8.08   9.28   8.08  
    Equity to Assets   11.28 % 10.91 % 10.14 % 11.28 % 10.14 %
    ASSET QUALITY                      
    Allowance as % of Non-Performing Loans   452.64 % 529.79 % 619.58 % 452.64 % 619.58 %
    Allowance as a % of Loans HFI   1.11   1.09   1.08   1.11   1.08  
    Net Charge-Offs as % of Average Loans HFI   0.19   0.18   0.17   0.20   0.16  
    Nonperforming Assets as % of Loans HFI and OREO   0.27   0.23   0.17   0.27   0.17  
    Nonperforming Assets as % of Total Assets   0.17 % 0.15 % 0.11 % 0.17 % 0.11 %
    STOCK PERFORMANCE                      
    High $ 36.67 $ 28.58 $ 33.44 $ 36.67 $ 36.86  
    Low   26.72   25.45   28.64   25.45   28.03  
    Close $ 35.29 $ 28.44 $ 29.83 $ 35.29 $ 29.83  
    Average Daily Trading Volume   37,151   29,861   26,774   32,720   33,936  
                           
    (1) Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a
    reconciliation to GAAP, refer to Page 6.    
                           
    CAPITAL CITY BANK GROUP, INC.          
    CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
    Unaudited          
                         
      2024     2023  
    (Dollars in thousands) Third Quarter   Second Quarter   First Quarter   Fourth Quarter   Third Quarter
    ASSETS                    
    Cash and Due From Banks $ 83,431   $ 75,304   $ 73,642   $ 83,118   $ 72,379  
    Funds Sold and Interest Bearing Deposits   261,779     272,675     231,047     228,949     95,119  
    Total Cash and Cash Equivalents   345,210     347,979     304,689     312,067     167,498  
                         
    Investment Securities Available for Sale   336,187     310,941     327,338     337,902     334,052  
    Investment Securities Held to Maturity   561,480     582,984     603,386     625,022     632,076  
    Other Equity Securities   6,976     2,537     3,445     3,450     3,585  
    Total Investment Securities   904,643     896,462     934,169     966,374     969,713  
                         
    Loans Held for Sale   31,251     24,022     24,705     28,211     34,013  
                         
    Loans Held for Investment (“HFI”):                    
    Commercial, Financial, & Agricultural   194,625     204,990     218,298     225,190     221,704  
    Real Estate – Construction   218,899     200,754     202,692     196,091     197,526  
    Real Estate – Commercial   819,955     823,122     823,690     825,456     828,234  
    Real Estate – Residential   1,023,485     1,012,541     1,012,791     1,001,257     966,512  
    Real Estate – Home Equity   210,988     211,126     214,617     210,920     203,606  
    Consumer   213,305     234,212     254,168     270,994     285,122  
    Other Loans   461     2,286     3,789     2,962     1,401  
    Overdrafts   1,378     1,192     1,127     1,048     1,076  
    Total Loans Held for Investment   2,683,096     2,690,223     2,731,172     2,733,918     2,705,181  
    Allowance for Credit Losses   (29,836 )   (29,219 )   (29,329 )   (29,941 )   (29,083 )
    Loans Held for Investment, Net   2,653,260     2,661,004     2,701,843     2,703,977     2,676,098  
                         
    Premises and Equipment, Net   81,876     81,414     81,452     81,266     81,677  
    Goodwill and Other Intangibles   92,813     92,853     92,893     92,933     92,973  
    Other Real Estate Owned   650     650     1     1     1  
    Other Assets   115,613     121,311     120,170     119,648     116,314  
    Total Other Assets   290,952     296,228     294,516     293,848     290,965  
    Total Assets $ 4,225,316   $ 4,225,695   $ 4,259,922   $ 4,304,477   $ 4,138,287  
    LIABILITIES                    
    Deposits:                    
    Noninterest Bearing Deposits $ 1,330,715   $ 1,343,606   $ 1,361,939   $ 1,377,934   $ 1,472,165  
    NOW Accounts   1,174,585     1,177,180     1,212,452     1,327,420     1,092,996  
    Money Market Accounts   401,272     413,594     398,308     319,319     304,323  
    Savings Accounts   507,604     514,560     530,782     547,634     571,003  
    Certificates of Deposit   164,901     159,624     151,320     129,515     99,958  
    Total Deposits   3,579,077     3,608,564     3,654,801     3,701,822     3,540,445  
                         
    Repurchase Agreements   29,339     22,463     23,477     26,957     22,910  
    Other Short-Term Borrowings   7,929     3,307     8,409     8,384     18,786  
    Subordinated Notes Payable   52,887     52,887     52,887     52,887     52,887  
    Other Long-Term Borrowings   794     1,009     265     315     364  
    Other Liabilities   71,974     69,987     65,181     66,080     75,585  
    Total Liabilities   3,742,000     3,758,217     3,805,020     3,856,445     3,710,977  
                         
    Temporary Equity   6,817     6,479     6,588     7,407     7,604  
    SHAREOWNERS’ EQUITY                    
    Common Stock   169     169     169     170     170  
    Additional Paid-In Capital   36,070     35,547     34,861     36,326     36,182  
    Retained Earnings   454,342     445,959     435,364     426,275     418,030  
    Accumulated Other Comprehensive Loss, Net of Tax   (14,082 )   (20,676 )   (22,080 )   (22,146 )   (34,676 )
    Total Shareowners’ Equity   476,499     460,999     448,314     440,625     419,706  
    Total Liabilities, Temporary Equity and Shareowners’ Equity $ 4,225,316   $ 4,225,695   $ 4,259,922   $ 4,304,477   $ 4,138,287  
    OTHER BALANCE SHEET DATA                    
    Earning Assets $ 3,880,769   $ 3,883,382   $ 3,921,093   $ 3,957,452   $ 3,804,026  
    Interest Bearing Liabilities   2,339,311     2,344,624     2,377,900     2,412,431     2,163,227  
    Book Value Per Diluted Share $ 28.06   $ 27.17   $ 26.45   $ 25.92   $ 24.69  
    Tangible Book Value Per Diluted Share(1)   22.60     21.69     20.97     20.45     19.22  
    Actual Basic Shares Outstanding   16,944     16,942     16,929     16,950     16,958  
    Actual Diluted Shares Outstanding   16,981     16,970     16,947     17,001     16,998  
    (1) Tangible book value per diluted share is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 6.
     
    CAPITAL CITY BANK GROUP, INC.              
    CONSOLIDATED STATEMENT OF OPERATIONS           
    Unaudited              
                                 
        2024   2023   Nine Months Ended
    September 30,
    (Dollars in thousands, except per share data)   Third
    Quarter    		   Second
    Quarter    		   First
    Quarter    		   Fourth
    Quarter    		   Third
    Quarter    		   2024   2023
    INTEREST INCOME                            
    Loans, including Fees $ 41,659 $ 41,138 $ 40,683 $ 40,407 $ 39,344 $ 123,480 $ 111,845
    Investment Securities   4,155   4,004   4,244   4,392   4,561   12,403   14,300
    Federal Funds Sold and Interest Bearing Deposits   3,514   3,624   1,893   1,385   1,848   9,031   8,741
    Total Interest Income   49,328   48,766   46,820   46,184   45,753   144,914   134,886
    INTEREST EXPENSE                            
    Deposits   8,223   8,579   7,594   5,872   5,214   24,396   11,710
    Repurchase Agreements   221   217   201   199   190   639   314
    Other Short-Term Borrowings   52   68   39   310   440   159   1,228
    Subordinated Notes Payable   610   630   628   627   625   1,868   1,800
    Other Long-Term Borrowings   11   3   3   5   4   17   15
    Total Interest Expense   9,117   9,497   8,465   7,013   6,473   27,079   15,067
    Net Interest Income   40,211   39,269   38,355   39,171   39,280   117,835   119,819
    Provision for Credit Losses   1,206   1,204   920   2,025   2,393   3,330   7,689
    Net Interest Income after Provision for Credit Losses   39,005   38,065   37,435   37,146   36,887   114,505   112,130
    NONINTEREST INCOME                            
    Deposit Fees   5,512   5,377   5,250   5,304   5,456   16,139   16,021
    Bank Card Fees   3,624   3,766   3,620   3,713   3,684   11,010   11,205
    Wealth Management Fees   4,770   4,439   4,682   4,276   3,984   13,891   12,061
    Mortgage Banking Revenues   3,966   4,381   2,878   2,327   1,839   11,225   8,072
    Other   1,641   1,643   1,667   1,537   1,765   4,951   7,093
    Total Noninterest Income   19,513   19,606   18,097   17,157   16,728   57,216   54,452
    NONINTEREST EXPENSE                            
    Compensation   25,800   24,406   24,407   23,822   23,003   74,613   69,965
    Occupancy, Net   7,098   6,997   6,994   7,098   6,980   21,089   20,562
    Other   10,023   9,038   8,770   9,038   9,122   27,831   26,539
    Total Noninterest Expense   42,921   40,441   40,171   39,958   39,105   123,533   117,066
    OPERATING PROFIT   15,597   17,230   15,361   14,345   14,510   48,188   49,516
    Income Tax Expense   2,980   3,189   3,536   2,909   3,004   9,705   10,130
    Net Income   12,617   14,041   11,825   11,436   11,506   38,483   39,386
    Pre-Tax Loss Attributable to Noncontrolling Interest   501   109   732   284   1,149   1,342   1,153
    NET INCOME ATTRIBUTABLE TO
    COMMON SHAREOWNERS    		 $ 13,118 $ 14,150 $ 12,557 $ 11,720 $ 12,655 $ 39,825 $ 40,539
    PER COMMON SHARE                            
    Basic Net Income $ 0.77 $ 0.84 $ 0.74 $ 0.69 $ 0.75 $ 2.35 $ 2.38
    Diluted Net Income   0.78   0.83   0.74   0.70   0.74   2.35   2.38
    Cash Dividend $ 0.23 $ 0.21 $ 0.21 $ 0.20 $ 0.20 $ 0.65 $ 0.56
    AVERAGE SHARES                            
    Basic   16,943   16,931   16,951   16,947   16,985   16,942   17,001
    Diluted   16,979   16,960   16,969   16,997   17,025   16,966   17,031
     
    CAPITAL CITY BANK GROUP, INC.              
    ALLOWANCE FOR CREDIT LOSSES (“ACL”)
    AND CREDIT QUALITY              
    Unaudited              
                                 
        2024     2023     Nine Months Ended
    September 30,
    (Dollars in thousands, except per share data)   Third
    Quarter    		   Second
    Quarter    		   First
    Quarter    		   Fourth
    Quarter    		   Third
    Quarter    		   2024     2023
    ACL – HELD FOR INVESTMENT LOANS                            
    Balance at Beginning of Period $ 29,219   $ 29,329   $ 29,941   $ 29,083   $ 28,243   $ 29,941   $ 25,068
    Transfer from Other (Assets) Liabilities   –     –     (50 )   66     –     (50 )   –
    Provision for Credit Losses   1,879     1,129     932     2,354     1,993     3,940     7,175
    Net Charge-Offs (Recoveries)   1,262     1,239     1,494     1,562     1,153     3,995     3,160
    Balance at End of Period $ 29,836   $ 29,219   $ 29,329   $ 29,941   $ 29,083   $ 29,836   $ 29,083
    As a % of Loans HFI   1.11%     1.09%     1.07%     1.10%     1.08%     1.11%     1.08%
    As a % of Nonperforming Loans   452.64%     529.79%     431.46%     479.70%     619.58%     452.64%     619.58%
    ACL – UNFUNDED COMMITMENTS                            
    Balance at Beginning of Period   3,139   $ 3,121   $ 3,191   $ 3,502   $ 3,120   $ 3,191   $ 2,989
    Provision for Credit Losses   (617 )   18     (70 )   (311 )   382     (669 )   513
    Balance at End of Period(1)   2,522     3,139     3,121     3,191     3,502     2,522     3,502
    ACL – DEBT SECURITIES                            
    Provision for Credit Losses $ (56 ) $ 57   $ 58   $ (18 ) $ 18   $ 59   $ 1
    CHARGE-OFFS                            
    Commercial, Financial and Agricultural $ 331   $ 400   $ 282   $ 217   $ 76   $ 1,013   $ 294
    Real Estate – Construction   –     –     –     –     –     –     –
    Real Estate – Commercial   3     –     –     –     –     3     120
    Real Estate – Residential   –     –     17     79     –     17     –
    Real Estate – Home Equity   23     –     76     –     –     99     39
    Consumer   1,315     1,061     1,550     1,689     1,340     3,926     4,065
    Overdrafts   611     571     638     602     659     1,820     2,187
    Total Charge-Offs $ 2,283   $ 2,032   $ 2,563   $ 2,587   $ 2,075   $ 6,878   $ 6,705
    RECOVERIES                            
    Commercial, Financial and Agricultural $ 176   $ 59   $ 41   $ 83   $ 28   $ 276   $ 194
    Real Estate – Construction   –     –     –     –     –     –     2
    Real Estate – Commercial   5     19     204     16     17     228     36
    Real Estate – Residential   88     23     37     34     30     148     219
    Real Estate – Home Equity   59     37     24     17     53     120     209
    Consumer   405     313     410     433     418     1,128     1,503
    Overdrafts   288     342     353     442     376     983     1,382
    Total Recoveries $ 1,021   $ 793   $ 1,069   $ 1,025   $ 922   $ 2,883   $ 3,545
    NET CHARGE-OFFS (RECOVERIES) $ 1,262   $ 1,239   $ 1,494   $ 1,562   $ 1,153   $ 3,995   $ 3,160
    Net Charge-Offs as a % of Average Loans HFI(2)   0.19%     0.18%     0.22%     0.23%     0.17%     0.20%     0.16%
    CREDIT QUALITY                            
    Nonaccruing Loans $ 6,592   $ 5,515   $ 6,798   $ 6,242   $ 4,694          
    Other Real Estate Owned   650     650     1     1     1          
    Total Nonperforming Assets (“NPAs”) $ 7,242   $ 6,165   $ 6,799   $ 6,243   $ 4,695          
                                 
    Past Due Loans 30-89 Days $ 9,388   $ 5,672   $ 5,392   $ 6,855   $ 5,577          
    Classified Loans   25,501     25,566     22,305     22,203     21,812          
                                 
    Nonperforming Loans as a % of Loans HFI   0.25%     0.21%     0.25%     0.23%     0.17%          
    NPAs as a % of Loans HFI and Other Real Estate   0.27%     0.23%     0.25%     0.23%     0.17%          
    NPAs as a % of Total Assets   0.17%     0.15%     0.16%     0.15%     0.11%          
                                 
    (1)Recorded in other liabilities              
    (2)Annualized              
     
    CAPITAL CITY BANK GROUP, INC.      
    AVERAGE BALANCE AND INTEREST RATES      
    Unaudited                                                     
                                                                                                       
        Third Quarter 2024     Second Quarter 2024     First Quarter 2024     Fourth Quarter 2023     Third Quarter 2023     Sep 2024 YTD     Sep 2023 YTD  
    (Dollars in thousands)   Average
    Balance    		   Interest   Average
    Rate    		     Average
    Balance    		   Interest   Average
    Rate    		     Average
    Balance    		   Interest   Average
    Rate    		     Average
    Balance    		   Interest   Average
    Rate    		     Average
    Balance    		   Interest   Average
    Rate    		     Average
    Balance    		   Interest   Average
    Rate    		     Average
    Balance    		   Interest   Average
    Rate    		  
    ASSETS:                                                                                                  
    Loans Held for Sale $ 24,570   $ 720   7.49 % $ 26,281   $ 517   5.26 % $ 27,314   $ 563   5.99 % $ 49,790     817   6.50 % $ 62,768   $ 971   6.14 % $ 26,050   $ 1,800   6.22 % $ 57,438   $ 2,416   5.62 %
    Loans Held for Investment(1)   2,693,533     40,985   6.09     2,726,748     40,683   6.03     2,728,629     40,196   5.95     2,711,243     39,679   5.81     2,672,653     38,455   5.71     2,716,220     121,864   6.02     2,637,911     109,688   5.56  
                                                                                                       
    Investment Securities                                                                                                  
    Taxable Investment Securities   907,610     4,148   1.82     918,989     3,998   1.74     952,328     4,239   1.78     962,322     4,389   1.81     1,002,547     4,549   1.80     926,241     12,385   1.78     1,034,825     14,265   1.84  
    Tax-Exempt Investment Securities(1)   846     10   4.33     843     9   4.36     856     9   4.34     862     7   4.32     2,456     17   2.66     848     28   4.34     2,649     50   2.49  
                                                                                                       
    Total Investment Securities   908,456     4,158   1.82     919,832     4,007   1.74     953,184     4,248   1.78     963,184     4,396   1.82     1,005,003     4,566   1.81     927,089     12,413   1.78     1,037,474     14,315   1.84  
                                                                                                       
    Federal Funds Sold and Interest Bearing Deposits   256,855     3,514   5.44     262,419     3,624   5.56     140,488     1,893   5.42     99,763     1,385   5.51     136,556     1,848   5.37     220,056     9,031   5.48     237,987     8,741   4.91  
                                                                                                       
    Total Earning Assets   3,883,414   $ 49,377   5.06 %   3,935,280   $ 48,831   4.99 %   3,849,615   $ 46,900   4.90 %   3,823,980   $ 46,277   4.80 %   3,876,980   $ 45,840   4.69 %   3,889,415   $ 145,108   4.98 %   3,970,810   $ 135,160   4.55 %
                                                                                                       
    Cash and Due From Banks   70,994               74,803               75,763               76,681               75,941               73,843               75,483            
    Allowance for Credit Losses   (29,905 )             (29,564 )             (30,030 )             (29,998 )             (29,172 )             (29,833 )             (27,581 )          
    Other Assets   291,359               291,669               295,275               296,114               295,106               292,762               297,688            
                                                                                                       
    Total Assets $ 4,215,862             $ 4,272,188             $ 4,190,623             $ 4,166,777             $ 4,218,855             $ 4,226,187             $ 4,316,400            
                                                                                                       
    LIABILITIES:                                                                                                  
    Noninterest Bearing Deposits $ 1,332,305             $ 1,346,546             $ 1,344,188             $ 1,416,825             $ 1,474,574             $ 1,340,981             $ 1,538,268            
    NOW Accounts   1,145,544   $ 4,087   1.42 %   1,207,643   $ 4,425   1.47 %   1,201,032   $ 4,497   1.51 %   1,138,461   $ 3,696   1.29 %   1,125,171   $ 3,489   1.23 %   1,184,596   $ 13,009   1.47 %   1,184,453   $ 8,679   0.98 %
    Money Market Accounts   418,625     2,694   2.56     407,387     2,752   2.72     353,591     1,985   2.26     318,844     1,421   1.77     322,623     1,294   1.59     393,294     7,431   2.52     293,089     2,249   1.03  
    Savings Accounts   512,098     180   0.14     519,374     176   0.14     539,374     188   0.14     557,579     202   0.14     579,245     200   0.14     523,573     544   0.14     603,643     396   0.09  
    Time Deposits   163,462     1,262   3.07     160,078     1,226   3.08     138,328     924   2.69     116,797     553   1.88     95,203     231   0.96     153,991     3,412   2.96     90,970     386   0.57  
    Total Interest Bearing Deposits   2,239,729     8,223   1.46     2,294,482     8,579   1.50     2,232,325     7,594   1.37     2,131,681     5,872   1.09     2,122,242     5,214   0.97     2,255,454     24,396   1.44     2,172,155     11,710   0.72  
    Total Deposits   3,572,034     8,223   0.92     3,641,028     8,579   0.95     3,576,513     7,594   0.85     3,548,506     5,872   0.66     3,596,816     5,214   0.58     3,596,435     24,396   0.91     3,710,423     11,710   0.42  
    Repurchase Agreements   27,126     221   3.24     26,999     217   3.24     25,725     201   3.14     26,831     199   2.94     25,356     190   2.98     26,619     639   3.21     17,588     314   2.39  
    Other Short-Term Borrowings   2,673     52   7.63     6,592     68   4.16     3,758     39   4.16     16,906     310   7.29     24,306     440   7.17     4,334     159   4.88     26,586     1,228   6.17  
    Subordinated Notes Payable   52,887     610   4.52     52,887     630   4.71     52,887     628   4.70     52,887     627   4.64     52,887     625   4.62     52,887     1,868   4.64     52,887     1,800   4.49  
    Other Long-Term Borrowings   795     11   5.55     258     3   4.31     281     3   4.80     336     5   4.72     387     4   4.73     447     17   5.16     433     15   4.78  
    Total Interest Bearing Liabilities   2,323,210   $ 9,117   1.56 %   2,381,218   $ 9,497   1.60 %   2,314,976   $ 8,465   1.47 %   2,228,641   $ 7,013   1.25 %   2,225,178   $ 6,473   1.15 %   2,339,741   $ 27,079   1.55 %   2,269,649   $ 15,067   0.89 %
                                                                                                       
    Other Liabilities   73,767               72,634               68,295               78,772               83,099               71,574               82,877            
                                                                                                       
    Total Liabilities   3,729,282               3,800,398               3,727,459               3,724,238               3,782,851               3,752,296               3,890,794            
    Temporary Equity   6,443               6,493               7,150               7,423               8,424               6,694               8,719            
                                                                                                       
    SHAREOWNERS’ EQUITY:   480,137               465,297               456,014               435,116               427,580               467,197               416,887            
                                                                                                       
    Total Liabilities, Temporary Equity and Shareowners’ Equity $ 4,215,862             $ 4,272,188             $ 4,190,623             $ 4,166,777             $ 4,218,855             $ 4,226,187             $ 4,316,400            
                                                                                                       
    Interest Rate Spread     $ 40,260   3.49 %     $ 39,334   3.38 %     $ 38,435   3.43 %     $ 39,264   3.55 %     $ 39,367   3.54 %     $ 118,029   3.43 %     $ 120,093   3.66 %
                                                                                                       
    Interest Income and Rate Earned(1)       49,377   5.06         48,831   4.99         46,900   4.90         46,277   4.80         45,840   4.69         145,108   4.98         135,160   4.55  
    Interest Expense and Rate Paid(2)       9,117   0.93         9,497   0.97         8,465   0.88         7,013   0.73         6,473   0.66         27,079   0.93         15,067   0.51  
                                                                                                       
    Net Interest Margin     $ 40,260   4.12 %     $ 39,334   4.02 %     $ 38,435   4.01 %     $ 39,264   4.07 %     $ 39,367   4.03 %     $ 118,029   4.05 %     $ 120,093   4.04 %
                                                                                                       
    (1)Interest and average rates are calculated on a tax-equivalent basis using a 21% Federal tax rate.                                    
    (2)Rate calculated based on average earning assets.      
     

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

    The MIL Network –

  • MIL-OSI: Gabelli Funds to Host 48th Annual Automotive Symposium at The Encore at Wynn, Las Vegas, Nevada

    Source: GlobeNewswire (MIL-OSI)

    GREENWICH, Conn., Oct. 22, 2024 (GLOBE NEWSWIRE) — Gabelli Funds will host its 48th Annual Automotive Symposium on November 4th and 5th, 2024 at the Encore at Wynn in Las Vegas, Nevada. This two-day symposium will feature presentations by senior managements of leading automotive and trucking companies, with a lineup that enables investors to understand ever-changing dynamics within the automotive industry.

    Presenting attendees, which include original equipment suppliers, automotive retailers, aftermarket service participants and next-gen tech companies driving vehicle electrification will provide a “cradle to grave” look at the automotive ecosystem and help investors understand “What’s Next?” for the automotive space.

    Agenda

      Monday, November 4   Tuesday, November 5
    11:00AM Gabelli Auto Team 8:20AM Introduction
    11:20 NN, Inc. (NASDAQ: NNBR) 8:30 Dorman Products, Inc. (NASDAQ: DORM)
    11:50 MP Materials Corp. (NYSE: MP) 9:00 AutoNation, Inc. (NYSE: AN)
    12:10PM Lunch Break 9:30 PHINIA Inc. (NYSE: PHIN)
    12:30 Gentex Corporation (NASDAQ: GNTX) 10:00 AutoZone, Inc. (NYSE: AZO)
    1:00 Garrett Motion Inc. (NASDAQ: GTX) 10:30 Standard Motor Products, Inc. (NYSE: SMP)
    1:30 Donaldson Company, Inc. (NYSE: DCI) 11:00 Genuine Parts Company (NYSE: GPC)
    2:00 MEMA / AASA 11:30 Monro, Inc. (NASDAQ: MNRO)
    3:00 Dana Incorporated (NYSE: DAN) 12:00PM Lunch Break
    3:30 Rush Enterprises, Inc. (NASDAQ: RUSHA/RUSHB) 12:15 Keynote – EVolving Landscape in Auto Repair
    4:00 Penske Automotive Group, Inc. (NYSE: PAG) 1:00 Motorcar Parts of America, Inc. (NASDAQ: MPAA)
    4:30 Myers Industries, Inc. (NYSE: MYE) 1:30 O’Reilly Automotive, Inc. (NASDAQ: ORLY)
    TBD Gabelli Funds’ Cocktail Reception 2:00 CarParts.com, Inc. (NASDAQ: PRTS)
        2:30 Strattec Security Corporation (NASDAQ: STRT)
           

    The Encore at Wynn, Las Vegas, NV
    Monday, November 4th and Tuesday, November 5th

    Registration link: CLICK HERE

    For general inquiries, contact:
    James Carey, Associate – Private Wealth Management, 914-921-8318, jcarey@gabelli.com
    Miles McQuillen, AVP – Private Wealth Management, 914-921-5112, mmcquillen@gabelli.com

    Gabelli Funds, LLC is a registered investment adviser with the Securities and Exchange Commission and is a wholly owned subsidiary of GAMCO Investors, Inc.

    Contact: Brian Sponheimer
    Portfolio Manager
    (914) 921-8336

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

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

    CEO COMMENTARY:

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


    THIRD     QUARTER HIGHLIGHTS2:

    Net Income
    • Net income applicable to common shares of $139.8 million; adjusted net income applicable to common shares1 of $147.2 million
    • Earnings per diluted common share (“EPS”) of $0.44; adjusted EPS1 of $0.46
       
    Net Interest Income/NIM
    • Net interest income on a fully taxable equivalent basis1 of $397.9 million
    • Net interest margin on a fully taxable equivalent basis1 (“NIM”) of 3.32%, down 1 basis point (“bp”)
       
    Operating Performance
    • Pre-provision net revenue1 (“PPNR”) of $219.7 million; adjusted PPNR1 of $229.3 million
    • Noninterest expense of $272.3 million; adjusted noninterest expense1 of $262.8 million
    • Efficiency ratio1 of 53.8%; adjusted efficiency ratio1 of 51.2%
       
    Deposits and Funding
    • Period-end total deposits of $40.8 billion, up $0.8 billion; core deposits up $1.0 billion
    • Granular low-cost deposit franchise; total deposit costs of 225 bps
       
    Loans and Credit Quality
    • End-of-period total loans3 of $36.5 billion, up 2.7% annualized
    • Provision for credit losses4 (“provision”) of $28.5 million
    • Net charge-offs of $17.5 million, or 19 bps of average loans; 16 bps excluding purchased credit deteriorated (“PCD”) loans that had an allowance at acquisition
    • 30+ day delinquencies of 0.26% and non-performing loans of 1.22% of total loans
     
    Return Profile & Capital
    • Return on average tangible common equity1 of 16.0%; adjusted return on average tangible common equity1 of 16.8%
    • Tangible common equity to tangible assets1 of 7.4%, up 7.2%
       
    Notable Items
    • $6.9 million of pre-tax merger-related charges
    • $2.6 million of pre-tax separation expense5


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

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

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

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

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

    LOANS
    Broad-based disciplined commercial loan growth.

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

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

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

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

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

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

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

    NONINTEREST EXPENSE
    Disciplined expense management.

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

    INCOME TAXES

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

    CAPITAL
    Capital ratios remain strong.

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

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

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

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

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

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

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

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

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

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

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

    CONTACTS:    
    Media: Kathy Schoettlin   Investors: Lynell Durchholz
    (812) 465-7269   (812) 464-1366
    Kathy.Schoettlin@oldnational.com   Lynell.Durchholz@oldnational.com
                   
    Financial Highlights (unaudited)
    ($ and shares in thousands, except per share data)
                     
      Three Months Ended   Nine Months Ended
      September 30, June 30, March 31, December 31, September 30,   September 30, September 30,
        2024     2024     2024     2023     2023       2024     2023  
    Income Statement                
    Net interest income $ 391,724   $ 388,421   $ 356,458   $ 364,408   $ 375,086     $ 1,136,603   $ 1,138,745  
    FTE adjustment1,3   6,144     6,340     6,253     6,100     5,837       18,737     17,328  
    Net interest income – tax equivalent basis3   397,868     394,761     362,711     370,508     380,923       1,155,340     1,156,073  
    Provision for credit losses   28,497     36,214     18,891     11,595     19,068       83,602     47,292  
    Noninterest income   94,138     87,271     77,522     100,094     80,938       258,931     233,248  
    Noninterest expense   272,283     282,999     262,317     284,235     244,776       817,599     742,071  
    Net income available to common shareholders $ 139,768   $ 117,196   $ 116,250   $ 128,446   $ 143,842     $ 373,214   $ 437,411  
    Per Common Share Data                
    Weighted average diluted shares   317,331     316,461     292,207     292,029     291,717       308,605     291,809  
    EPS, diluted $ 0.44   $ 0.37   $ 0.40   $ 0.44   $ 0.49     $ 1.21   $ 1.50  
    Cash dividends   0.14     0.14     0.14     0.14     0.14       0.42     0.42  
    Dividend payout ratio2   32 %   38 %   35 %   32 %   29 %     35 %   28 %
    Book value $ 19.20   $ 18.28   $ 18.24   $ 18.18   $ 17.07     $ 19.20   $ 17.07  
    Stock price   18.66     17.19     17.41     16.89     14.54       18.66     14.54  
    Tangible book value3   11.97     11.05     11.10     11.00     9.87       11.97     9.87  
    Performance Ratios                
    ROAA   1.08 %   0.92 %   0.98 %   1.09 %   1.22 %     0.99 %   1.25 %
    ROAE   9.4 %   8.2 %   8.7 %   10.2 %   11.4 %     8.8 %   11.7 %
    ROATCE3   16.0 %   14.1 %   14.9 %   18.1 %   20.2 %     15.0 %   20.8 %
    NIM (FTE)   3.32 %   3.33 %   3.28 %   3.39 %   3.49 %     3.31 %   3.59 %
    Efficiency ratio3   53.8 %   57.2 %   58.3 %   59.0 %   51.7 %     56.4 %   51.9 %
    NCOs to average loans   0.19 %   0.16 %   0.14 %   0.12 %   0.24 %     0.16 %   0.19 %
    ACL on loans to EOP loans   1.05 %   1.01 %   0.95 %   0.93 %   0.93 %     1.05 %   0.93 %
    ACL4 to EOP loans   1.12 %   1.08 %   1.03 %   1.03 %   1.03 %     1.12 %   1.03 %
    NPLs to EOP loans   1.22 %   0.94 %   0.98 %   0.83 %   0.80 %     1.22 %   0.80 %
    Balance Sheet (EOP)                
    Total loans $ 36,400,643   $ 36,150,513   $ 33,623,319   $ 32,991,927   $ 32,577,834     $ 36,400,643   $ 32,577,834  
    Total assets   53,602,293     53,119,645     49,534,918     49,089,836     49,059,448       53,602,293     49,059,448  
    Total deposits   40,845,746     39,999,228     37,699,418     37,235,180     37,252,676       40,845,746     37,252,676  
    Total borrowed funds   5,449,096     6,085,204     5,331,161     5,331,147     5,556,010       5,449,096     5,556,010  
    Total shareholders’ equity   6,367,298     6,075,072     5,595,408     5,562,900     5,239,537       6,367,298     5,239,537  
    Capital Ratios                
    Risk-based capital ratios (EOP):                
    Tier 1 common equity   11.00 %   10.73 %   10.76 %   10.70 %   10.41 %     11.00 %   10.41 %
    Tier 1 capital   11.60 %   11.33 %   11.40 %   11.35 %   11.06 %     11.60 %   11.06 %
    Total capital   12.94 %   12.71 %   12.74 %   12.64 %   12.32 %     12.94 %   12.32 %
    Leverage ratio (average assets)   9.05 %   8.90 %   8.96 %   8.83 %   8.70 %     9.05 %   8.70 %
    Equity to assets (averages)3   11.60 %   11.31 %   11.32 %   10.81 %   10.88 %     11.41 %   10.95 %
    TCE to TA3   7.44 %   6.94 %   6.86 %   6.85 %   6.15 %     7.44 %   6.15 %
    Nonfinancial Data                
    Full-time equivalent employees   4,105    4,267    3,955    3,940    3,981      4,105    3,981 
    Banking centers   280    280    258    258    257      280    257 
    1 Calculated using the federal statutory tax rate in effect of 21% for all periods.          
    2 Cash dividends per common share divided by net income per common share (basic).          
    3 Represents a non-GAAP financial measure. Refer to the “Non-GAAP Measures” table for reconciliations to GAAP financial measures.
        September 30, 2024 capital ratios are preliminary.
    4 Includes the allowance for credit losses on loans and unfunded loan commitments.          
                     
    FTE – Fully taxable equivalent basis ROAA – Return on average assets ROAE – Return on average equity ROATCE – Return on average tangible common equity
    NCOs – Net Charge-offs ACL – Allowance for Credit Losses EOP – End of period actual balances NPLs – Non-performing Loans TCE – Tangible common equity TA – Tangible assets
                     
    Income Statement (unaudited)
    ($ and shares in thousands, except per share data)
      Three Months Ended   Nine Months Ended
      September 30, June 30, March 31, December 31, September 30,   September 30, September 30,
        2024     2024     2024     2023     2023       2024     2023  
    Interest income $ 679,925   $ 663,663   $ 595,981   $ 589,751   $ 576,519     $ 1,939,569   $ 1,617,070  
    Less: interest expense   288,201     275,242     239,523     225,343     201,433       802,966     478,325  
    Net interest income   391,724     388,421     356,458     364,408     375,086       1,136,603     1,138,745  
    Provision for credit losses   28,497     36,214     18,891     11,595     19,068       83,602     47,292  
    Net interest income after provision for credit losses   363,227     352,207     337,567     352,813     356,018       1,053,001     1,091,453  
    Wealth and investment services fees   29,117     29,358     28,304     27,656     26,687       86,779     80,128  
    Service charges on deposit accounts   20,350     19,350     17,898     18,667     18,524       57,598     53,278  
    Debit card and ATM fees   11,362     10,993     10,054     10,700     10,818       32,409     31,453  
    Mortgage banking revenue   7,669     7,064     4,478     3,691     5,063       19,211     12,628  
    Capital markets income   7,426     4,729     2,900     5,416     5,891       15,055     19,003  
    Company-owned life insurance   5,315     5,739     3,434     3,773     3,740       14,488     11,624  
    Gain on sale of Visa Class B restricted shares   —     —     —     21,635     —       —     —  
    Other income   12,975     10,036     10,470     9,381     10,456       33,481     30,574  
    Debt securities gains (losses), net   (76 )   2     (16 )   (825 )   (241 )     (90 )   (5,440 )
    Total noninterest income   94,138     87,271     77,522     100,094     80,938       258,931     233,248  
    Salaries and employee benefits   147,494     159,193     149,803     141,649     131,541       456,490     404,715  
    Occupancy   27,130     26,547     27,019     26,514     25,795       80,696     80,162  
    Equipment   9,888     8,704     8,671     8,769     8,284       27,263     23,394  
    Marketing   11,036     11,284     10,634     10,813     9,448       32,954     28,698  
    Technology   23,343     24,002     20,023     20,493     20,592       67,368     59,850  
    Communication   4,681     4,480     4,000     4,212     4,075       13,161     12,768  
    Professional fees   7,278     10,552     6,406     8,250     5,956       24,236     19,085  
    FDIC assessment   11,722     9,676     11,313     27,702     9,000       32,711     29,028  
    Amortization of intangibles   7,411     7,425     5,455     5,869     6,040       20,291     18,286  
    Amortization of tax credit investments   3,277     2,747     2,749     7,200     2,644       8,773     8,167  
    Other expense   19,023     18,389     16,244     22,764     21,401       53,656     57,918  
    Total noninterest expense   272,283     282,999     262,317     284,235     244,776       817,599     742,071  
    Income before income taxes   185,082     156,479     152,772     168,672     192,180       494,333     582,630  
    Income tax expense   41,280     35,250     32,488     36,192     44,304       109,018     133,118  
    Net income $ 143,802   $ 121,229   $ 120,284   $ 132,480   $ 147,876     $ 385,315   $ 449,512  
    Preferred dividends   (4,034 )   (4,033 )   (4,034 )   (4,034 )   (4,034 )     (12,101 )   (12,101 )
    Net income applicable to common shares $ 139,768   $ 117,196   $ 116,250   $ 128,446   $ 143,842     $ 373,214   $ 437,411  
                     
    EPS, diluted $ 0.44   $ 0.37   $ 0.40   $ 0.44   $ 0.49     $ 1.21   $ 1.50  
    Weighted Average Common Shares Outstanding                
    Basic   315,622     315,585     290,980     290,701     290,648       307,426     290,763  
    Diluted   317,331     316,461     292,207     292,029     291,717       308,605     291,809  
    Common shares outstanding (EOP)   318,955     318,969     293,330     292,655     292,586       318,955     292,586  
                     
                     
     
    End of Period Balance Sheet (unaudited)
    ($ in thousands)
      September 30, June 30, March 31, December 31, September 30,
        2024     2024     2024     2023     2023  
    Assets          
    Cash and due from banks $ 498,120   $ 428,665   $ 350,990   $ 430,866   $ 381,343  
    Money market and other interest-earning investments   693,450     804,381     588,509     744,192     1,282,087  
    Investments:          
    Treasury and government-sponsored agencies   2,335,716     2,207,004     2,243,754     2,453,950     2,515,249  
    Mortgage-backed securities   6,085,826     5,890,371     5,566,881     5,245,691     4,906,290  
    States and political subdivisions   1,665,128     1,678,597     1,672,061     1,693,819     1,705,200  
    Other securities   783,079     775,623     760,847     779,048     751,404  
    Total investments   10,869,749     10,551,595     10,243,543     10,172,508     9,878,143  
    Loans held-for-sale, at fair value   62,376     66,126     19,418     32,006     122,033  
    Loans:          
    Commercial   10,408,095     10,332,631     9,648,269     9,512,230     9,333,448  
    Commercial and agriculture real estate   16,356,216     16,016,958     14,653,958     14,140,629     13,916,221  
    Residential real estate   6,757,896     6,894,957     6,661,379     6,699,443     6,696,288  
    Consumer   2,878,436     2,905,967     2,659,713     2,639,625     2,631,877  
    Total loans   36,400,643     36,150,513     33,623,319     32,991,927     32,577,834  
    Allowance for credit losses on loans   (380,840 )   (366,335 )   (319,713 )   (307,610 )   (303,982 )
    Premises and equipment, net   599,528     601,945     564,007     565,396     565,607  
    Goodwill and other intangible assets   2,305,084     2,306,204     2,095,511     2,100,966     2,106,835  
    Company-owned life insurance   863,723     862,032     767,423     767,902     774,517  
    Accrued interest receivable and other assets   1,690,460     1,714,519     1,601,911     1,591,683     1,675,031  
    Total assets $ 53,602,293   $ 53,119,645   $ 49,534,918   $ 49,089,836   $ 49,059,448  
               
    Liabilities and Equity          
    Noninterest-bearing demand deposits $ 9,429,285   $ 9,336,042   $ 9,257,709   $ 9,664,247   $ 10,091,352  
    Interest-bearing:          
    Checking and NOW accounts   7,314,245     7,680,865     7,236,667     7,331,487     7,495,417  
    Savings accounts   4,781,447     4,983,811     5,020,095     5,099,186     5,296,985  
    Money market accounts   11,601,461     10,485,491     10,234,113     9,561,116     8,793,218  
    Other time deposits   6,010,070     5,688,432     4,760,659     4,565,137     4,398,182  
    Total core deposits   39,136,508     38,174,641     36,509,243     36,221,173     36,075,154  
    Brokered deposits   1,709,238     1,824,587     1,190,175     1,014,007     1,177,522  
    Total deposits   40,845,746     39,999,228     37,699,418     37,235,180     37,252,676  
               
    Federal funds purchased and interbank borrowings   135,263     250,154     50,416     390     918  
    Securities sold under agreements to repurchase   244,626     240,713     274,493     285,206     279,061  
    Federal Home Loan Bank advances   4,471,153     4,744,560     4,193,039     4,280,681     4,412,576  
    Other borrowings   598,054     849,777     813,213     764,870     863,455  
    Total borrowed funds   5,449,096     6,085,204     5,331,161     5,331,147     5,556,010  
    Accrued expenses and other liabilities   940,153     960,141     908,931     960,609     1,011,225  
    Total liabilities   47,234,995     47,044,573     43,939,510     43,526,936     43,819,911  
    Preferred stock, common stock, surplus, and retained earnings   6,971,054     6,866,480     6,375,036     6,301,709     6,208,352  
    Accumulated other comprehensive income (loss), net of tax   (603,756 )   (791,408 )   (779,628 )   (738,809 )   (968,815 )
    Total shareholders’ equity   6,367,298     6,075,072     5,595,408     5,562,900     5,239,537  
    Total liabilities and shareholders’ equity $ 53,602,293   $ 53,119,645   $ 49,534,918   $ 49,089,836   $ 49,059,448  
     
                             
    Average Balance Sheet and Interest Rates (unaudited)
    ($ in thousands)
                             
                             
        Three Months Ended   Three Months Ended   Three Months Ended
        September 30, 2024   June 30, 2024   September 30, 2023
        Average Income1/ Yield/   Average Income1/ Yield/   Average Income1/ Yield/
    Earning Assets:   Balance Expense Rate   Balance Expense Rate   Balance Expense Rate
    Money market and other interest-earning investments   $ 904,176   $ 11,696 5.15 %   $ 814,944   $ 11,311 5.58 %   $ 980,813   $ 13,194 5.34 %
    Investments:                        
    Treasury and government-sponsored agencies     2,255,629     21,851 3.87 %     2,208,935     21,531 3.90 %     2,376,864     23,037 3.88 %
    Mortgage-backed securities     5,977,058     48,425 3.24 %     5,828,225     47,904 3.29 %     5,079,091     33,237 2.62 %
    States and political subdivisions     1,668,454     14,042 3.37 %     1,686,994     14,290 3.39 %     1,737,037     14,220 3.27 %
    Other securities     785,107     12,547 6.39 %     788,571     12,583 6.38 %     793,196     10,127 5.11 %
    Total investments     10,686,248     96,865 3.63 %     10,512,725     96,308 3.66 %     9,986,188     80,621 3.23 %
    Loans:2                        
    Commercial     10,373,340     183,878 7.09 %     10,345,098     183,425 7.09 %     9,612,102     163,869 6.82 %
    Commercial and agriculture real estate     16,216,842     274,832 6.78 %     15,870,809     260,407 6.56 %     13,711,156     219,575 6.41 %
    Residential real estate loans     6,833,597     67,084 3.93 %     6,952,942     67,683 3.89 %     6,712,269     62,775 3.74 %
    Consumer     2,891,260     51,714 7.12 %     2,910,331     50,869 7.03 %     2,614,928     42,322 6.42 %
    Total loans     36,315,039     577,508 6.36 %     36,079,180     562,384 6.24 %     32,650,455     488,541 5.98 %
                             
    Total earning assets   $ 47,905,463   $ 686,069 5.73 %   $ 47,406,849   $ 670,003 5.66 %   $ 43,617,456   $ 582,356 5.34 %
                             
    Less: Allowance for credit losses on loans     (366,667 )         (331,043 )         (300,071 )    
                             
    Non-earning Assets:                        
    Cash and due from banks   $ 413,583         $ 430,256         $ 382,755      
    Other assets     5,394,032           5,341,022           4,960,383      
                             
    Total assets   $ 53,346,411         $ 52,847,084         $ 48,660,523      
                             
    Interest-Bearing Liabilities:                        
    Checking and NOW accounts   $ 7,551,264   $ 29,344 1.55 %   $ 8,189,454   $ 34,398 1.69 %   $ 7,515,439   $ 25,531 1.35 %
    Savings accounts     4,860,161     5,184 0.42 %     5,044,800     5,254 0.42 %     5,414,775     4,268 0.31 %
    Money market accounts     11,064,433     106,148 3.82 %     10,728,156     102,560 3.84 %     7,979,999     65,549 3.26 %
    Other time deposits     5,928,241     64,435 4.32 %     5,358,103     56,586 4.25 %     4,229,692     37,110 3.48 %
    Total interest-bearing core deposits     29,404,099     205,111 2.78 %     29,320,513     198,798 2.73 %     25,139,905     132,458 2.09 %
    Brokered deposits     1,829,218     24,616 5.35 %     1,244,237     17,008 5.50 %     1,183,228     14,970 5.02 %
    Total interest-bearing deposits     31,233,317     229,727 2.93 %     30,564,750     215,806 2.84 %     26,323,133     147,428 2.22 %
                             
    Federal funds purchased and interbank borrowings     14,549     292 7.98 %     148,835     1,986 5.37 %     62,921     910 5.74 %
    Securities sold under agreements to repurchase     239,524     612 1.02 %     249,939     639 1.03 %     302,305     710 0.93 %
    Federal Home Loan Bank advances     4,572,046     47,719 4.15 %     4,473,978     44,643 4.01 %     4,537,250     40,382 3.53 %
    Other borrowings     754,544     9,851 5.19 %     891,609     12,168 5.49 %     841,307     12,003 5.66 %
    Total borrowed funds     5,580,663     58,474 4.17 %     5,764,361     59,436 4.15 %     5,743,783     54,005 3.73 %
                             
    Total interest-bearing liabilities   $ 36,813,980   $ 288,201 3.11 %   $ 36,329,111   $ 275,242 3.05 %   $ 32,066,916   $ 201,433 2.49 %
                             
    Noninterest-Bearing Liabilities and Shareholders’ Equity                      
    Demand deposits   $ 9,371,698         $ 9,558,675         $ 10,338,267      
    Other liabilities     970,662           980,322           961,268      
    Shareholders’ equity     6,190,071           5,978,976           5,294,072      
                             
    Total liabilities and shareholders’ equity   $ 53,346,411         $ 52,847,084         $ 48,660,523      
                             
    Net interest rate spread       2.62 %       2.61 %       2.85 %
                             
    Net interest margin (GAAP)       3.27 %       3.28 %       3.44 %
                             
    Net interest margin (FTE)3       3.32 %       3.33 %       3.49 %
                             
    FTE adjustment     $ 6,144       $ 6,340       $ 5,837  
                             
    1 Interest income is reflected on a FTE basis.  
    2 Includes loans held-for-sale.  
    3 Represents a non-GAAP financial measure. Refer to the “Non-GAAP Measures” table for reconciliations to GAAP financial measures.  
     
                     
    Average Balance Sheet and Interest Rates (unaudited)
    ($ in thousands)
                     
                     
        Nine Months Ended   Nine Months Ended
        September 30, 2024   September 30, 2023
        Average Income1/ Yield/   Average Income1/ Yield/
    Earning Assets:   Balance Expense Rate   Balance Expense Rate
    Money market and other interest-earning investments   $ 825,743   $ 32,992 5.34 %   $ 736,225   $ 25,258 4.59 %
    Investments:                
    Treasury and government-sponsored agencies     2,275,607     66,648 3.91 %     2,266,177     58,923 3.47 %
    Mortgage-backed securities     5,721,725     135,217 3.15 %     5,268,509     102,618 2.60 %
    States and political subdivisions     1,678,504     42,308 3.36 %     1,771,155     43,306 3.26 %
    Other securities     781,385     37,303 6.37 %     785,474     28,726 4.88 %
    Total investments   $ 10,457,221   $ 281,476 3.59 %   $ 10,091,315   $ 233,573 3.09 %
    Loans:2                
    Commercial     10,087,322     534,566 7.07 %     9,644,541     475,210 6.57 %
    Commercial and agriculture real estate     15,488,010     765,325 6.59 %     13,180,509     598,337 6.05 %
    Residential real estate loans     6,826,809     197,770 3.86 %     6,626,551     181,592 3.65 %
    Consumer     2,815,837     146,177 6.93 %     2,612,519     120,428 6.16 %
    Total loans     35,217,978     1,643,838 6.22 %     32,064,120     1,375,567 5.72 %
                     
    Total earning assets   $ 46,500,942   $ 1,958,306 5.62 %   $ 42,891,660   $ 1,634,398 5.08 %
                     
    Less: Allowance for credit losses on loans     (337,168 )         (301,909 )    
                     
    Non-earning Assets:                
    Cash and due from banks   $ 402,213         $ 412,998      
    Other assets     5,232,807           4,917,592      
                     
    Total assets   $ 51,798,794         $ 47,920,341      
                     
    Interest-Bearing Liabilities:                
    Checking and NOW accounts   $ 7,627,029   $ 88,994 1.56 %   $ 7,793,561   $ 69,248 1.19 %
    Savings accounts     4,976,361     15,455 0.41 %     5,791,780     9,745 0.22 %
    Money market accounts     10,571,821     302,921 3.83 %     6,577,317     120,917 2.46 %
    Other time deposits     5,327,361     168,453 4.22 %     3,660,156     79,032 2.89 %
    Total interest-bearing core deposits     28,502,572     575,823 2.70 %     23,822,814     278,942 1.57 %
    Brokered deposits     1,375,231     55,149 5.36 %     879,886     32,053 4.87 %
    Total interest-bearing deposits     29,877,803     630,972 2.82 %     24,702,700     310,995 1.68 %
                     
    Federal funds purchased and interbank borrowings     77,262     3,239 5.60 %     306,480     11,404 4.97 %
    Securities sold under agreements to repurchase     261,818     2,168 1.11 %     351,362     2,389 0.91 %
    Federal Home Loan Bank advances     4,477,851     133,529 3.98 %     4,699,074     123,466 3.51 %
    Other borrowings     823,746     33,058 5.36 %     806,575     30,071 4.98 %
    Total borrowed funds     5,640,677     171,994 4.07 %     6,163,491     167,330 3.63 %
                     
    Total interest-bearing liabilities     35,518,480     802,966 3.02 %     30,866,191     478,325 2.07 %
                     
    Noninterest-Bearing Liabilities and Shareholders’ Equity              
    Demand deposits   $ 9,396,081         $ 10,864,375      
    Other liabilities     971,687           944,619      
    Shareholders’ equity     5,912,546           5,245,156      
                     
    Total liabilities and shareholders’ equity   $ 51,798,794         $ 47,920,341      
                     
    Net interest rate spread       2.60 %       3.01 %
                     
    Net interest margin (GAAP)       3.26 %       3.54 %
                     
    Net interest margin (FTE)3       3.31 %       3.59 %
                     
    FTE adjustment     $ 18,737       $ 17,328  
                     
    1 Interest income is reflected on a FTE.
    2 Includes loans held-for-sale.                
    3 Represents a non-GAAP financial measure. Refer to the “Non-GAAP Measures” table for reconciliations to GAAP financial measures.    
     
                     
    Asset Quality (EOP) (unaudited)
    ($ in thousands)
                     
      Three Months Ended   Nine Months Ended
      September 30, June 30, March 31, December 31, September 30,   September 30, September 30,
        2024     2024     2024     2023     2023       2024     2023  
    Allowance for credit losses:                
    Beginning allowance for credit losses on loans $ 366,335   $ 319,713   $ 307,610   $ 303,982   $ 300,555     $ 307,610   $ 303,671  
    Allowance established for acquired PCD loans   2,803     23,922     —     —     —       26,725     —  
    Provision for credit losses on loans   29,176     36,745     23,853     13,329     23,115       89,774     46,520  
    Gross charge-offs   (18,965 )   (17,041 )   (14,020 )   (13,202 )   (22,750 )     (50,026 )   (55,261 )
    Gross recoveries   1,491     2,996     2,270     3,501     3,062       6,757     9,052  
    NCOs   (17,474 )   (14,045 )   (11,750 )   (9,701 )   (19,688 )     (43,269 )   (46,209 )
    Ending allowance for credit losses on loans $ 380,840   $ 366,335   $ 319,713   $ 307,610   $ 303,982     $ 380,840   $ 303,982  
    Beginning allowance for credit losses on unfunded commitments $ 25,733   $ 26,264   $ 31,226   $ 32,960   $ 37,007     $ 31,226   $ 32,188  
    Provision (release) for credit losses on unfunded commitments   (679 )   (531 )   (4,962 )   (1,734 )   (4,047 )     (6,172 )   772  
    Ending allowance for credit losses on unfunded commitments $ 25,054   $ 25,733   $ 26,264   $ 31,226   $ 32,960     $ 25,054   $ 32,960  
    Allowance for credit losses $ 405,894   $ 392,068   $ 345,977   $ 338,836   $ 336,942     $ 405,894   $ 336,942  
    Provision for credit losses on loans $ 29,176   $ 36,745   $ 23,853   $ 13,329   $ 23,115     $ 89,774   $ 46,520  
    Provision (release) for credit losses on unfunded commitments   (679 )   (531 )   (4,962 )   (1,734 )   (4,047 )     (6,172 )   772  
    Provision for credit losses $ 28,497   $ 36,214   $ 18,891   $ 11,595   $ 19,068     $ 83,602   $ 47,292  
    NCOs / average loans1   0.19 %   0.16 %   0.14 %   0.12 %   0.24 %     0.16 %   0.19 %
    Average loans1 $ 36,299,544   $ 36,053,845   $ 33,242,739   $ 32,752,406   $ 32,639,812     $ 35,202,727   $ 32,057,989  
    EOP loans1   36,400,643     36,150,513     33,623,319     32,991,927     32,577,834       36,400,643     32,577,834  
    ACL on loans / EOP loans1   1.05 %   1.01 %   0.95 %   0.93 %   0.93 %     1.05 %   0.93 %
    ACL / EOP loans1   1.12 %   1.08 %   1.03 %   1.03 %   1.03 %     1.12 %   1.03 %
    Underperforming Assets:                
    Loans 90 days and over (still accruing) $ 1,177   $ 5,251   $ 2,172   $ 961   $ 1,192     $ 1,177   $ 1,192  
    Nonaccrual loans   443,597     340,181     328,645     274,821     261,346       443,597     261,346  
    Foreclosed assets   4,077     8,290     9,344     9,434     9,761       4,077     9,761  
    Total underperforming assets $ 448,851   $ 353,722   $ 340,161   $ 285,216   $ 272,299     $ 448,851   $ 272,299  
    Classified and Criticized Assets:                
    Nonaccrual loans $ 443,597   $ 340,181   $ 328,645   $ 274,821   $ 261,346     $ 443,597   $ 261,346  
    Substandard loans (still accruing)   1,074,243     841,087     626,157     599,358     563,427       1,074,243     563,427  
    Loans 90 days and over (still accruing)   1,177     5,251     2,172     961     1,192       1,177     1,192  
    Total classified loans – “problem loans”   1,519,017     1,186,519     956,974     875,140     825,965       1,519,017     825,965  
    Other classified assets   59,485     60,772     54,392     48,930     48,998       59,485     48,998  
    Special Mention   837,543     967,655     827,419     843,920     775,526       837,543     775,526  
    Total classified and criticized assets $ 2,416,045   $ 2,214,946   $ 1,838,785   $ 1,767,990   $ 1,650,489     $ 2,416,045   $ 1,650,489  
    Loans 30-89 days past due (still accruing) $ 91,750   $ 51,712   $ 53,112   $ 71,868   $ 56,772     $ 91,750   $ 56,772  
    Nonaccrual loans / EOP loans1   1.22 %   0.94 %   0.98 %   0.83 %   0.80 %     1.22 %   0.80 %
    ACL / nonaccrual loans   92 %   115 %   105 %   123 %   129 %     92 %   129 %
    Under-performing assets/EOP loans1   1.23 %   0.98 %   1.01 %   0.86 %   0.84 %     1.23 %   0.84 %
    Under-performing assets/EOP assets   0.84 %   0.67 %   0.69 %   0.58 %   0.56 %     0.84 %   0.56 %
    30+ day delinquencies/EOP loans1   0.26 %   0.16 %   0.16 %   0.22 %   0.18 %     0.26 %   0.18 %
                     
    1 Excludes loans held-for-sale.            
                     

                    

                     
    Non-GAAP Measures (unaudited)
    ($ and shares in thousands, except per share data)
                     
      Three Months Ended   Nine Months Ended
      September 30, June 30, March 31, December 31, September 30,   September 30, September 30,
        2024     2024     2024     2023     2023       2024     2023  
    Earnings Per Share:                
    Net income applicable to common shares $ 139,768   $ 117,196   $ 116,250   $ 128,446   $ 143,842     $ 373,214   $ 437,411  
    Adjustments:                
    Merger-related charges   6,860     19,440     2,908     5,529     6,257       29,208     23,187  
    Tax effect1   (1,528 )   (4,413 )   (710 )   (1,343 )   (1,042 )     (6,651 )   (4,491 )
    Merger-related charges, net   5,332     15,027     2,198     4,186     5,215       22,557     18,696  
    Separation expense   2,646     —     —     —     —       2,646     —  
    Tax effect1   (589 )   —     —     —     —       (589 )   —  
    Separation expense, net   2,057     —     —     —     —       2,057     —  
    Debt securities (gains) losses   76     (2 )   16     825     241       90     5,440  
    Tax effect1   (17 )   1     (4 )   (200 )   (40 )     (20 )   (1,175 )
    Debt securities (gains) losses, net   59     (1 )   12     625     201       70     4,265  
    CECL Day 1 non-PCD provision expense   —     15,312     —     —     —       15,312     —  
    Tax effect1   —     (3,476 )   —     —     —       (3,476 )   —  
    CECL Day 1 non-PCD provision expense, net   —     11,836     —     —     —       11,836     —  
    Distribution of excess pension assets   —     —     13,318     —     —   —   13,318     —  
    Tax effect1   —     —     (3,250 )   —     —   —   (3,250 )   —  
    Distribution excess pension assets, net   —     —     10,068     —     —       10,068     —  
    FDIC special assessment   —     —     2,994     19,052     —       2,994     —  
    Tax effect1   —     —     (731 )   (4,628 )   —       (731 )   —  
    FDIC special assessment, net   —     —     2,263     14,424     —       2,263     —  
    Gain on sale of Visa Class B restricted shares   —     —     —     (21,635 )   —       —     —  
    Tax effect1   —     —     —     5,255     —       —     —  
    Gain on sale of Visa Class B restricted shares, net   —     —     —     (16,380 )   —       —     —  
    Contract termination charge   —     —     —     4,413     —       —     —  
    Tax effect1   —     —     —     (1,072 )   —       —     —  
    Contract termination charge, net   —     —     —     3,341     —       —     —  
    Louisville expenses   —     —     —     —     —       —     3,361  
    Tax effect1   —     —     —     —     —       —     (392 )
    Louisville expenses, net   —     —     —     —     —       —     2,969  
    Property optimization charges   —     —     —     —     —       —     1,559  
    Tax effect1   —     —     —     —     —       —     (315 )
    Property optimization charges, net   —     —     —     —     —       —     1,244  
    Total adjustments, net   7,448     26,862     14,541     6,196     5,416       48,851     27,174  
    Net income applicable to common shares, adjusted $ 147,216   $ 144,058   $ 130,791   $ 134,642   $ 149,258     $ 422,065   $ 464,585  
    Weighted average diluted common shares outstanding   317,331     316,461     292,207     292,029     291,717       308,605     291,809  
    EPS, diluted $ 0.44   $ 0.37   $ 0.40   $ 0.44   $ 0.49     $ 1.21   $ 1.50  
    Adjusted EPS, diluted $ 0.46   $ 0.46   $ 0.45   $ 0.46   $ 0.51     $ 1.37   $ 1.59  
    NIM:                
    Net interest income $ 391,724   $ 388,421   $ 356,458   $ 364,408   $ 375,086     $ 1,136,603   $ 1,138,745  
    Add: FTE adjustment2   6,144     6,340     6,253     6,100     5,837       18,737     17,328  
    Net interest income (FTE) $ 397,868   $ 394,761   $ 362,711   $ 370,508   $ 380,923     $ 1,155,340   $ 1,156,073  
    Average earning assets $ 47,905,463   $ 47,406,849   $ 44,175,079   $ 43,701,283   $ 43,617,456     $ 46,500,942   $ 42,891,660  
    NIM (GAAP)   3.27 %   3.28 %   3.23 %   3.34 %   3.44 %     3.26 %   3.54 %
    NIM (FTE)   3.32 %   3.33 %   3.28 %   3.39 %   3.49 %     3.31 %   3.59 %
                     
    Refer to last page of Non-GAAP reconciliations for footnotes.            
                     
    Non-GAAP Measures (unaudited)
    ($ in thousands)
                     
      Three Months Ended   Nine Months Ended
      September 30, June 30, March 31, December 31, September 30,   September 30, September 30,
        2024     2024     2024     2023     2023       2024     2023  
    PPNR:                
    Net interest income (FTE)2 $ 397,868   $ 394,761   $ 362,711   $ 370,508   $ 380,923     $ 1,155,340   $ 1,156,073  
    Add: Noninterest income   94,138     87,271     77,522     100,094     80,938       258,931     233,248  
    Total revenue (FTE)   492,006     482,032     440,233     470,602     461,861       1,414,271     1,389,321  
    Less: Noninterest expense   (272,283 )   (282,999 )   (262,317 )   (284,235 )   (244,776 )     (817,599 )   (742,071 )
    PPNR $ 219,723   $ 199,033   $ 177,916   $ 186,367   $ 217,085     $ 596,672   $ 647,250  
    Adjustments:                
    Gain on sale of Visa Class B restricted shares $ —   $ —   $ —   $ (21,635 ) $ —     $ —   $ —  
    Debt securities (gains) losses   76     (2 )   16     825     241       90     5,440  
    Noninterest income adjustments   76     (2 )   16     (20,810 )   241       90     5,440  
    Adjusted noninterest income   94,214     87,269     77,538     79,284     81,179       259,021     238,688  
    Adjusted revenue $ 492,082   $ 482,030   $ 440,249   $ 449,792   $ 462,102     $ 1,414,361   $ 1,394,761  
    Adjustments:                
    Merger-related charges $ 6,860   $ 19,440   $ 2,908   $ 5,529   $ 6,257     $ 29,208   $ 23,187  
    Separation expense   2,646     —     —     —     —       2,646     —  
    Distribution of excess pension assets   —     —     13,318     —     —       13,318     —  
    FDIC Special Assessment   —     —     2,994     19,052     —       2,994     —  
    Contract termination charges   —     —     —     4,413     —       —     —  
    Louisville expenses   —     —     —     —     —       —     3,361  
    Property optimization charges   —     —     —     —     —       —     1,559  
    Noninterest expense adjustments   9,506     19,440     19,220     28,994     6,257       48,166     28,107  
    Adjusted total noninterest expense   (262,777 )   (263,559 )   (243,097 )   (255,241 )   (238,519 )     (769,433 )   (713,964 )
    Adjusted PPNR $ 229,305   $ 218,471   $ 197,152   $ 194,551   $ 223,583     $ 644,928   $ 680,797  
    Efficiency Ratio:                
    Noninterest expense $ 272,283   $ 282,999   $ 262,317   $ 284,235   $ 244,776     $ 817,599   $ 742,071  
    Less: Amortization of intangibles   (7,411 )   (7,425 )   (5,455 )   (5,869 )   (6,040 )     (20,291 )   (18,286 )
    Noninterest expense, excl. amortization of intangibles   264,872     275,574     256,862     278,366     238,736       797,308     723,785  
    Less: Amortization of tax credit investments   (3,277 )   (2,747 )   (2,749 )   (7,200 )   (2,644 )     (8,773 )   (8,167 )
    Less: Noninterest expense adjustments   (9,506 )   (19,440 )   (19,220 )   (28,994 )   (6,257 )     (48,166 )   (28,107 )
    Adjusted noninterest expense, excluding amortization $ 252,089   $ 253,387   $ 234,893   $ 242,172   $ 229,835     $ 740,369   $ 687,511  
    Total revenue (FTE)2 $ 492,006   $ 482,032   $ 440,233   $ 470,602   $ 461,861     $ 1,414,271   $ 1,389,321  
    Less: Debt securities (gains) losses   76     (2 )   16     825     241       90     5,440  
    Total revenue excl. debt securities (gains) losses   492,082     482,030     440,249     471,427     462,102       1,414,361     1,394,761  
    Less: Gain on sale of Visa Class B restricted shares   —     —     —     (21,635 )   —       —     —  
    Total adjusted revenue $ 492,082   $ 482,030   $ 440,249   $ 449,792   $ 462,102     $ 1,414,361   $ 1,394,761  
    Efficiency Ratio   53.8 %   57.2 %   58.3 %   59.0 %   51.7 %     56.4 %   51.9 %
    Adjusted Efficiency Ratio   51.2 %   52.6 %   53.4 %   53.8 %   49.7 %     52.3 %   49.3 %
                     
    Refer to last page of Non-GAAP reconciliations for footnotes.            
                     
    Non-GAAP Measures (unaudited)
    ($ in thousands)
                     
      Three Months Ended   Nine Months Ended
      September 30, June 30, March 31, December 31, September 30,   September 30, September 30,
        2024     2024     2024     2023     2023       2024     2023  
    ROAE and ROATCE:                
    Net income applicable to common shares $ 139,768   $ 117,196   $ 116,250   $ 128,446   $ 143,842     $ 373,214   $ 437,411  
    Amortization of intangibles   7,411     7,425     5,455     5,869     6,040       20,291     18,286  
    Tax effect1   (1,853 )   (1,856 )   (1,364 )   (1,467 )   (1,510 )     (5,073 )   (4,572 )
    Amortization of intangibles, net   5,558     5,569     4,091     4,402     4,530       15,218     13,714  
    Net income applicable to common shares, excluding intangibles amortization   145,326     122,765     120,341     132,848     148,372       388,432     451,125  
    Total adjustments, net (see pg.12)   7,448     26,862     14,541     6,196     5,416       48,851     27,174  
    Adjusted net income applicable to common shares, excluding intangibles amortization $ 152,774   $ 149,627   $ 134,882   $ 139,044   $ 153,788     $ 437,283   $ 478,299  
    Average shareholders’ equity $ 6,190,071   $ 5,978,976   $ 5,565,542   $ 5,281,487   $ 5,294,072     $ 5,912,546   $ 5,245,156  
    Less: Average preferred equity   (243,719 )   (243,719 )   (243,719 )   (243,719 )   (243,719 )     (243,719 )   (243,719 )
    Average shareholders’ common equity $ 5,946,352   $ 5,735,257   $ 5,321,823   $ 5,037,768   $ 5,050,353     $ 5,668,827   $ 5,001,437  
    Average goodwill and other intangible assets   (2,304,597 )   (2,245,405 )   (2,098,338 )   (2,103,935 )   (2,109,944 )     (2,216,437 )   (2,115,953 )
    Average tangible shareholder’s common equity $ 3,641,755   $ 3,489,852   $ 3,223,485   $ 2,933,833   $ 2,940,409     $ 3,452,390   $ 2,885,484  
    ROAE   9.4 %   8.2 %   8.7 %   10.2 %   11.4 %     8.8 %   11.7 %
    ROAE, adjusted   9.9 %   10.0 %   9.8 %   10.7 %   11.8 %     9.9 %   12.4 %
    ROATCE   16.0 %   14.1 %   14.9 %   18.1 %   20.2 %     15.0 %   20.8 %
    ROATCE, adjusted   16.8 %   17.2 %   16.7 %   19.0 %   20.9 %     16.9 %   22.1 %
                     
    Refer to last page of Non-GAAP reconciliations for footnotes.            
               
    Non-GAAP Measures (unaudited)
    ($ in thousands)
               
      As of
      September 30, June 30, March 31, December 31, September 30,
        2024     2024     2024     2023     2023  
    Tangible Common Equity:          
    Shareholders’ equity $ 6,367,298   $ 6,075,072   $ 5,595,408   $ 5,562,900   $ 5,239,537  
    Less: Preferred equity   (243,719 )   (243,719 )   (243,719 )   (243,719 )   (243,719 )
    Shareholders’ common equity $ 6,123,579   $ 5,831,353   $ 5,351,689   $ 5,319,181   $ 4,995,818  
    Less: Goodwill and other intangible assets   (2,305,084 )   (2,306,204 )   (2,095,511 )   (2,100,966 )   (2,106,835 )
    Tangible shareholders’ common equity $ 3,818,495   $ 3,525,149   $ 3,256,178   $ 3,218,215   $ 2,888,983  
               
    Total assets $ 53,602,293   $ 53,119,645   $ 49,534,918   $ 49,089,836   $ 49,059,448  
    Less: Goodwill and other intangible assets   (2,305,084 )   (2,306,204 )   (2,095,511 )   (2,100,966 )   (2,106,835 )
    Tangible assets $ 51,297,209   $ 50,813,441   $ 47,439,407   $ 46,988,870   $ 46,952,613  
               
    Risk-weighted assets3 $ 40,584,608   $ 40,627,117   $ 37,845,139   $ 37,407,347   $ 37,501,646  
               
    Tangible common equity to tangible assets   7.44 %   6.94 %   6.86 %   6.85 %   6.15 %
    Tangible common equity to risk-weighted assets3   9.41 %   8.68 %   8.60 %   8.60 %   7.70 %
    Tangible Common Book Value:          
    Common shares outstanding   318,955     318,969     293,330     292,655     292,586  
    Tangible common book value $ 11.97   $ 11.05   $ 11.10   $ 11.00   $ 9.87  
               
    1 Tax-effect calculations use management’s estimate of the full year FTE tax rates (federal + state).
    2 Calculated using the federal statutory tax rate in effect of 21% for all periods.
    3 September 30, 2024 figures are preliminary.

    The MIL Network –

  • MIL-OSI: First Financial Corporation Reports Third Quarter Results

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

    Average Total Loans

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

    Total Loans Outstanding

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

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

    Average Total Deposits

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

    Total Deposits

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

    Shareholders’ Equity

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

    Book Value Per Share

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

    Tangible Common Equity to Tangible Asset Ratio

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

    Net Interest Income

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

    Net Interest Margin

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

    Nonperforming Loans

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

    Credit Loss Provision

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

    Net Charge-Offs

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

    Allowance for Credit Losses

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

    Non-Interest Income

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

    Non-Interest Expense

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

    Efficiency Ratio

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

    Income Taxes

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

    About First Financial Corporation

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

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

                                   
        Three Months Ended   Nine Months Ended
        September 30,    June 30,   September 30,    September 30,    September 30, 
        2024   2024   2023   2024   2023
    END OF PERIOD BALANCES                              
    Assets   $ 5,483,351   $ 4,891,068   $ 4,784,806   $ 5,483,351   $ 4,784,806
    Deposits   $ 4,717,489   $ 4,132,327   $ 4,040,995   $ 4,717,489   $ 4,040,995
    Loans, including net deferred loan costs   $ 3,715,235   $ 3,204,009   $ 3,117,626   $ 3,715,235   $ 3,117,626
    Allowance for Credit Losses   $ 46,169   $ 38,334   $ 39,034   $ 46,169   $ 39,034
    Total Equity   $ 565,951   $ 530,670   $ 470,168   $ 565,951   $ 470,168
    Tangible Common Equity (a)   $ 446,786   $ 438,569   $ 377,367   $ 446,786   $ 377,367
                                   
    AVERAGE BALANCES                              
    Total Assets   $ 5,483,572   $ 4,813,308   $ 4,814,251   $ 5,033,748   $ 4,828,165
    Earning Assets   $ 5,165,520   $ 4,556,839   $ 4,575,996   $ 4,762,940   $ 4,590,258
    Investments   $ 1,342,037   $ 1,279,278   $ 1,351,433   $ 1,309,879   $ 1,384,941
    Loans   $ 3,705,779   $ 3,197,695   $ 3,147,317   $ 3,361,207   $ 3,104,623
    Total Deposits   $ 4,705,614   $ 4,113,826   $ 4,000,302   $ 4,288,426   $ 4,124,520
    Interest-Bearing Deposits   $ 4,403,454   $ 3,413,752   $ 3,222,633   $ 3,714,432   $ 3,309,111
    Interest-Bearing Liabilities   $ 157,227   $ 152,303   $ 309,948   $ 176,985   $ 197,142
    Total Equity   $ 546,912   $ 517,890   $ 493,764   $ 529,174   $ 494,428
                                   
    INCOME STATEMENT DATA                              
    Net Interest Income   $ 47,170   $ 39,294   $ 41,150   $ 125,384   $ 127,672
    Net Interest Income Fully Tax Equivalent (b)   $ 48,630   $ 40,673   $ 42,539   $ 129,600   $ 131,774
    Provision for Credit Losses   $ 9,400   $ 2,966   $ 1,200   $ 14,166   $ 4,800
    Non-interest Income   $ 11,223   $ 9,905   $ 11,627   $ 30,559   $ 31,455
    Non-interest Expense   $ 38,564   $ 32,651   $ 32,265   $ 104,637   $ 95,932
    Net Income   $ 8,741   $ 11,369   $ 16,285   $ 31,034   $ 48,252
                                   
    PER SHARE DATA                              
    Basic and Diluted Net Income Per Common Share   $ 0.74   $ 0.96   $ 1.37   $ 2.63   $ 4.02
    Cash Dividends Declared Per Common Share   $ 0.45   $ 0.45   $ —   $ 1.35   $ 0.54
    Book Value Per Common Share   $ 47.93   $ 44.92   $ 40.00   $ 47.93   $ 40.00
    Tangible Book Value Per Common Share (c)   $ 36.22   $ 36.04   $ 33.69   $ 37.84   $ 32.10
    Basic Weighted Average Common Shares Outstanding     11,808     11,814     11,901     11,809     11,993

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

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

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

                                   
                                   
    Asset Quality   Three Months Ended   Nine Months Ended
        September 30,   June 30,   September 30,   September 30,   September 30,
        2024   2024   2023   2024   2023
    Accruing loans and leases past due 30-89 days   $ 16,391   $ 14,913   $ 15,961   $ 16,391   $ 15,961
    Accruing loans and leases past due 90 days or more   $ 1,517   $ 1,353   $ 1,370   $ 1,517   $ 1,370
    Nonaccrual loans and leases   $ 12,617   $ 14,563   $ 11,214   $ 12,617   $ 11,214
    Other real estate owned   $ 169   $ 170   $ 63   $ 169   $ 63
    Nonperforming loans and other real estate owned   $ 14,303   $ 16,086   $ 12,647   $ 14,303   $ 12,647
    Total nonperforming assets   $ 17,179   $ 18,978   $ 15,671   $ 17,179   $ 15,671
    Gross charge-offs   $ 6,936   $ 6,091   $ 3,601   $ 16,219   $ 11,520
    Recoveries   $ 2,365   $ 1,414   $ 1,528   $ 5,449   $ 5,975
    Net charge-offs/(recoveries)   $ 4,571   $ 4,677   $ 2,073   $ 10,770   $ 5,545
                     
    Non-GAAP Reconciliations   Three Months Ended September 30,
        2024   2023
    ($in thousands, except EPS)                
    Income before Income Taxes   $ 10,429     $ 19,312  
    Provision for credit losses     9,400       1,200  
    Provision for unfunded commitments     100       —  
    Pre-tax, Pre-provision Income   $ 19,929     $ 20,512  
                 
    Non-GAAP Reconciliations   Nine Months Ended September 30,
        2024    2023 
    ($ in thousands, except EPS)            
    Income before Income Taxes   $ 37,140     $ 58,395  
    Provision for credit losses     14,166       4,800  
    Provision for unfunded commitments     (200 )     (100 )
    Pre-tax, Pre-provision Income   $ 51,106     $ 63,095  
     
    CONSOLIDATED BALANCE SHEETS
    (Dollar amounts in thousands, except per share data)
           
        September 30,   December 31, 
        2024   2023
        (unaudited)
    ASSETS            
    Cash and due from banks   $ 77,312     $ 76,759  
    Federal funds sold     1,356       282  
    Securities available-for-sale     1,271,992       1,259,137  
    Loans:            
    Commercial     2,112,738       1,817,526  
    Residential     924,276       695,788  
    Consumer     671,353       646,758  
          3,708,367       3,160,072  
    (Less) plus:            
    Net deferred loan costs     6,868       7,749  
    Allowance for credit losses     (46,169 )     (39,767 )
          3,669,066       3,128,054  
    Restricted stock     15,366       15,364  
    Accrued interest receivable     25,386       24,877  
    Premises and equipment, net     82,213       67,286  
    Bank-owned life insurance     128,242       114,122  
    Goodwill     93,363       86,985  
    Other intangible assets     25,802       5,586  
    Other real estate owned     169       107  
    Other assets     93,084       72,587  
    TOTAL ASSETS   $ 5,483,351     $ 4,851,146  
                 
    LIABILITIES AND SHAREHOLDERS’ EQUITY            
    Deposits:            
    Non-interest-bearing   $ 831,575     $ 750,335  
    Interest-bearing:            
    Certificates of deposit exceeding the FDIC insurance limits     159,618       92,921  
    Other interest-bearing deposits     3,726,296       3,246,812  
          4,717,489       4,090,068  
    Short-term borrowings     84,363       67,221  
    FHLB advances     30,456       108,577  
    Other liabilities     85,092       57,304  
    TOTAL LIABILITIES     4,917,400       4,323,170  
                 
    Shareholders’ equity            
    Common stock, $.125 stated value per share;            
    Authorized shares-40,000,000            
    Issued shares-16,165,023 in 2024 and 16,137,220 in 2023            
    Outstanding shares-11,808,304 in 2024 and 11,795,024 in 2023     2,016       2,014  
    Additional paid-in capital     144,785       144,152  
    Retained earnings     677,155       663,726  
    Accumulated other comprehensive income/(loss)     (102,800 )     (127,087 )
    Less: Treasury shares at cost-4,356,719 in 2024 and 4,342,196 in 2023     (155,205 )     (154,829 )
    TOTAL SHAREHOLDERS’ EQUITY     565,951       527,976  
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   $ 5,483,351     $ 4,851,146  
     
    CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
    (Dollar amounts in thousands, except per share data)
                 
        Three Months Ended   Nine Months Ended
        September 30,   September 30,
        2024   2023   2024   2023
            (unaudited)
    INTEREST INCOME:                        
    Loans, including related fees   $ 61,367   $ 49,146     $ 162,878   $ 140,220  
    Securities:                        
    Taxable     6,319     6,164       18,083     18,631  
    Tax-exempt     2,715     2,661       7,919     7,937  
    Other     1,294     752       2,989     2,864  
    TOTAL INTEREST INCOME     71,695     58,723       191,869     169,652  
    INTEREST EXPENSE:                        
    Deposits     22,197     13,627       59,622     35,111  
    Short-term borrowings     993     1,923       2,928     4,025  
    Other borrowings     1,335     2,023       3,935     2,844  
    TOTAL INTEREST EXPENSE     24,525     17,573       66,485     41,980  
    NET INTEREST INCOME     47,170     41,150       125,384     127,672  
    Provision for credit losses     9,400     1,200       14,166     4,800  
    NET INTEREST INCOME AFTER PROVISION                        
    FOR LOAN LOSSES     37,770     39,950       111,218     122,872  
    NON-INTEREST INCOME:                        
    Trust and financial services     1,251     1,140       3,903     3,642  
    Service charges and fees on deposit accounts     8,139     7,099       21,576     20,971  
    Other service charges and fees     191     213       700     613  
    Securities gains (losses), net     103     —       104     —  
    Interchange income     177     —       490     47  
    Loan servicing fees     274     447       957     997  
    Gain on sales of mortgage loans     411     321       886     811  
    Other     677     2,407       1,943     4,374  
    TOTAL NON-INTEREST INCOME     11,223     11,627       30,559     31,455  
    NON-INTEREST EXPENSE:                        
    Salaries and employee benefits     18,521     17,159       53,231     51,263  
    Occupancy expense     2,556     2,389       7,116     7,120  
    Equipment expense     4,280     3,580       12,736     10,404  
    FDIC Expense     558     613       1,721     1,977  
    Other     12,649     8,524       29,833     25,168  
    TOTAL NON-INTEREST EXPENSE     38,564     32,265       104,637     95,932  
    INCOME BEFORE INCOME TAXES     10,429     19,312       37,140     58,395  
    Provision for income taxes     1,688     3,027       6,106     10,143  
    NET INCOME     8,741     16,285       31,034     48,252  
    OTHER COMPREHENSIVE INCOME (LOSS)                        
    Change in unrealized gains/(losses) on securities, net of reclassifications and taxes     31,628     (34,934 )     24,067     (36,504 )
    Change in funded status of post retirement benefits, net of taxes     73     146       220     440  
    COMPREHENSIVE INCOME (LOSS)   $ 40,442   $ (18,503 )   $ 55,321   $ 12,188  
    PER SHARE DATA                        
    Basic and Diluted Earnings per Share   $ 0.74   $ 1.37     $ 2.63   $ 4.02  
    Weighted average number of shares outstanding (in thousands)     11,808     11,901       11,809     11,993  

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

    The following table presents disaggregated net income (loss):

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

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

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

    Net Interest Income and Net Interest Margin

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

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

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

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

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

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

    Non-Interest Income

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

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

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

    Non-Interest Expense

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

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

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

    Income Taxes

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

    About the Company

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

    Forward Looking Statement

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

    QNB Corp.  
    Consolidated Selected Financial Data (unaudited)  
    (Dollars in thousands)                    
    Balance Sheet (Period End) 9/30/24   6/30/24   3/31/24   12/31/23   9/30/23  
    Assets $ 1,841,563   $ 1,761,487   $ 1,716,081   $ 1,706,318   $ 1,684,392  
    Cash and cash equivalents   104,232     76,909     50,963     62,657     55,141  
    Investment securities                    
    Debt securities, AFS   510,036     460,418     481,596     490,181     505,390  
    Equity securities   2,760     7,233     6,217     5,910     4,765  
    Loans held-for-sale   294     786     —     549     446  
    Loans receivable   1,171,361     1,162,310     1,122,616     1,093,533     1,060,450  
    Allowance for loan losses   (8,987 )   (8,858 )   (8,738 )   (8,852 )   (8,542 )
    Net loans   1,162,374     1,153,452     1,113,878     1,084,681     1,051,908  
    Deposits   1,626,284     1,572,839     1,536,188     1,488,713     1,483,333  
    Demand, non-interest bearing   190,240     190,333     188,260     185,098     192,226  
    Interest-bearing demand, money market and savings   1,055,409     1,003,813     990,451     988,634     1,000,921  
    Time   380,635     378,693     357,477     314,981     290,186  
    Short-term borrowings   22,918     49,066     55,088     94,094     96,703  
    Long-term debt   30,000     30,000     20,000     20,000     20,000  
    Subordinated debt   39,030     —     —     —     —  
    Shareholders’ equity   105,340     96,885     93,686     90,824     74,081  
                         
    Asset Quality Data (Period End)                    
    Non-accrual loans $ 1,696   $ 2,078   $ 2,001   $ 1,940   $ 1,893  
    Loans past due 90 days or more and still accruing   —     —     —     —     —  
    Non-performing loans   1,696     2,078     2,001     1,940     1,893  
    Other real estate owned and repossessed assets   —     —     —     —     —  
    Non-performing assets $ 1,696   $ 2,078   $ 2,001   $ 1,940   $ 1,893  
                         
    Allowance for credit losses on loans $ 8,987   $ 8,858   $ 8,738   $ 8,852   $ 8,542  
                         
    Non-performing loans / Loans excluding held-for-sale   0.14 %   0.18 %   0.18 %   0.18 %   0.18 %
    Non-performing assets / Assets   0.09 %   0.12 %   0.12 %   0.11 %   0.11 %
    Allowance for credit losses on loans / Loans excluding held-for-sale   0.77 %   0.76 %   0.78 %   0.81 %   0.81 %
    QNB Corp.
    Consolidated Selected Financial Data (unaudited)
    (Dollars in thousands, except per share data) Three months ended,   Nine months ended,
    For the period: 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23   9/30/24 9/30/23
    Interest income $ 21,945   $ 20,345   $ 19,569   $ 19,257   $ 18,497     $ 61,859   $ 49,825  
    Interest expense   10,818     9,753     9,401     9,065     8,284       29,972     19,862  
    Net interest income   11,127     10,592     10,168     10,192     10,213       31,887     29,963  
    Provision for credit losses   159     114     (86 )   293     459       187     (1,137 )
    Net interest income after provision for credit losses   10,968     10,478     10,254     9,899     9,754       31,700     31,100  
    Non-interest income:                
    Fees for services to customers   469     427     420     414     421       1,316     1,237  
    ATM and debit card   691     705     636     687     685       2,032     2,048  
    Retail brokerage and advisory income   139     126     93     207     219       358     655  
    Net realized (loss) gain on investment securities   224     (1,096 )   377     (2,262 )   131       (495 )   185  
    Unrealized gain (loss) on equity securities   143     1,016     (30 )   904     (138 )     1,129     (654 )
    Net gain on sale of loans   19     (2 )   15     11     4       32     5  
    Other   282     289     325     322     433       896     1,078  
    Total non-interest income   1,967     1,465     1,836     283     1,755       5,268     4,554  
    Non-interest expense:                
    Salaries and employee benefits   4,650     5,038     4,974     4,717     4,971       14,662     14,309  
    Net occupancy and furniture and equipment   1,531     1,481     1,515     1,477     1,504       4,527     4,348  
    Other   2,455     2,415     2,344     2,552     2,196       7,214     6,706  
    Total non-interest expense   8,636     8,934     8,833     8,746     8,671       26,403     25,363  
    Income before income taxes   4,299     3,009     3,257     1,436     2,838       10,565     10,291  
    Provision for income taxes   961     544     663     302     494       2,168     1,942  
    Net income $ 3,338   $ 2,465   $ 2,594   $ 1,134   $ 2,344     $ 8,397   $ 8,349  
                     
    Share and Per Share Data:                
    Net income – basic $ 0.91   $ 0.67   $ 0.71   $ 0.31   $ 0.65     $ 2.29   $ 2.32  
    Net income – diluted $ 0.91   $ 0.67   $ 0.71   $ 0.31   $ 0.65     $ 2.29   $ 2.32  
    Book value $ 28.57   $ 26.34   $ 25.57   $ 24.86   $ 20.35     $ 28.57   $ 20.35  
    Cash dividends $ 0.37   $ 0.37   $ 0.37   $ 0.37   $ 0.37     $ 1.11   $ 1.11  
    Average common shares outstanding -basic   3,679,799     3,665,695     3,655,176     3,642,096     3,613,230       3,666,937     3,600,137  
    Average common shares outstanding -diluted   3,682,773     3,665,695     3,655,176     3,642,096     3,613,230       3,666,937     3,600,137  
    Selected Ratios:                
    Return on average assets   0.72 %   0.55 %   0.59 %   0.25 %   0.52 %     0.62 %   0.64 %
    Return on average shareholders’ equity   8.13 %   6.14 %   6.53 %   2.83 %   5.88 %     6.95 %   7.13 %
    Net interest margin (tax equivalent)   2.48 %   2.46 %   2.39 %   2.36 %   2.38 %     2.45 %   2.40 %
    Efficiency ratio (tax equivalent)   65.28 %   73.26 %   72.73 %   82.38 %   71.59 %     70.28 %   72.55 %
    Average shareholders’ equity to total average assets   8.80 %   8.97 %   8.98 %   8.93 %   8.91 %     8.92 %   9.01 %
    Net loan charge-offs (recoveries) $ 25   $ 12   $ 21   $ (19 ) $ 275     $ 58   $ (219 )
    Net loan charge-offs (recoveries) – annualized / Average loans excluding held-for-sale   0.01 %   0.00 %   0.01 %   -0.01 %   0.10 %     0.01 %   -0.03 %
    Balance Sheet (Average)                
    Assets $ 1,856,034   $ 1,798,040   $ 1,778,585   $ 1,779,627   $ 1,773,138     $ 1,811,051   $ 1,737,417  
    Investment securities (AFS & Equities)   552,323     569,135     578,615     604,292     624,423       566,638     636,498  
    Loans receivable   1,158,731     1,139,874     1,108,836     1,072,616     1,039,170       1,135,898     1,029,042  
    Deposits   1,600,925     1,542,661     1,497,692     1,490,244     1,488,632       1,547,290     1,443,816  
    Shareholders’ equity   163,274     161,340     159,739     158,987     158,063       161,458     156,499  
    QNB Corp. (Consolidated)  
    Average Balances, Rate, and Interest Income and Expense Summary (Tax-Equivalent Basis)  
                               
      Three Months Ended  
      September 30, 2024     September 30, 2023  
      Average   Average         Average   Average      
      Balance   Rate   Interest     Balance   Rate   Interest  
    Assets                          
    Investment securities:                          
    U.S. Treasury $ 12,811     4.94 % $ 159     $ 7,111     5.17 % $ 92  
    U.S. Government agencies   75,956     1.18     224       101,947     1.11     283  
    State and municipal   105,674     3.74     989       109,157     3.30     901  
    Mortgage-backed and CMOs   345,119     2.84     2,453       394,607     2.53     2,500  
    Corporate debt securities and mutual funds   8,804     5.97     131       6,648     4.40     73  
    Equities   3,959     4.61     46       4,953     4.70     59  
    Total investment securities   552,323     2.90     4,002       624,423     2.50     3,908  
    Loans:                          
    Commercial real estate   819,091     5.60     11,525       722,833     5.10     9,288  
    Residential real estate   110,760     4.21     1,165       107,332     3.81     1,022  
    Home equity loans   66,239     6.84     1,138       57,694     6.65     967  
    Commercial and industrial   140,980     7.61     2,696       128,601     7.23     2,343  
    Consumer loans   3,613     7.75     70       3,823     7.53     73  
    Tax-exempt loans   18,305     3.88     179       19,630     3.59     178  
    Total loans, net of unearned income*   1,158,988     5.76     16,773       1,039,913     5.29     13,871  
    Other earning assets   95,780     5.43     1,307       62,420     5.48     862  
    Total earning assets   1,807,091     4.86     22,082       1,726,756     4.28     18,641  
    Cash and due from banks   15,540               15,679          
    Allowance for loan losses   (8,860 )             (8,396 )        
    Other assets   42,263               39,099          
    Total assets $ 1,856,034             $ 1,773,138          
                               
    Liabilities and Shareholders’ Equity                          
    Interest-bearing deposits:                          
    Interest-bearing demand $ 356,763     1.00 %   898     $ 319,335     0.74 %   600  
    Municipals   154,619     4.69     1,823       157,391     4.63     1,837  
    Money market   238,494     3.56     2,132       201,277     3.01     1,527  
    Savings   278,247     1.28     896       325,567     1.27     1,038  
    Time < $100   178,228     4.12     1,846       128,884     2.92     947  
    Time $100 through $250   152,416     4.64     1,777       106,920     3.69     996  
    Time > $250   49,506     4.61     573       43,856     3.41     377  
    Total interest-bearing deposits   1,408,273     2.81     9,945       1,283,230     2.26     7,322  
    Short-term borrowings   34,078     2.18     186       95,568     3.07     740  
    Long-term debt   30,000     4.75     364       20,000     4.36     222  
    Subordinated debt   13,716     9.42     323       —     —     —  
    Total interest-bearing liabilities   1,486,067     2.90     10,818       1,398,798     2.35     8,284  
    Non-interest-bearing deposits   192,652               205,402          
    Other liabilities   14,041               10,875          
    Shareholders’ equity   163,274               158,063          
    Total liabilities and                          
    shareholders’ equity $ 1,856,034             $ 1,773,138          
    Net interest rate spread       1.96 %             1.93 %    
    Margin/net interest income       2.48 % $ 11,264           2.38 % $ 10,357  
    Tax-exempt securities and loans were adjusted to a tax-equivalent basis and are based on the Federal corporate tax rate of 21%  
    Non-accrual loans and investment securities are included in earning assets.  
    * Includes loans held-for-sale  
    QNB Corp. (Consolidated)  
    Average Balances, Rate, and Interest Income and Expense Summary (Tax-Equivalent Basis)  
                               
      Nine Months Ended  
      September 30, 2024     September 30, 2023  
      Average   Average         Average   Average      
      Balance   Rate   Interest     Balance   Rate   Interest  
    Assets                          
    Investment securities:                          
    U.S. Treasury $ 8,820     5.10 % $ 337     $ 3,618     4.97 % $ 134  
    U.S. Government agencies   81,800     1.17     718       101,945     1.11     849  
    State and municipal   107,237     3.56     2,860       109,877     2.64     2,173  
    Mortgage-backed and CMOs   355,878     2.72     7,262       405,979     1.96     5,971  
    Corporate debt securities and mutual funds   7,416     5.78     321       6,637     4.41     219  
    Equities   5,487     3.87     159       8,442     4.07     257  
    Total investment securities   566,638     2.74     11,657       636,498     2.01     9,603  
    Loans:                          
    Commercial real estate   798,714     5.47     32,701       700,375     4.79     25,091  
    Residential real estate   109,463     4.07     3,337       106,817     3.67     2,943  
    Home equity loans   64,700     6.83     3,307       57,317     6.44     2,762  
    Commercial and industrial   141,148     7.57     7,997       141,176     7.55     7,977  
    Consumer loans   3,679     7.78     214       3,942     7.15     211  
    Tax-exempt loans   18,410     3.86     532       19,984     3.53     527  
    Total loans, net of unearned income*   1,136,114     5.65     48,088       1,029,611     5.13     39,511  
    Other earning assets   61,999     5.45     2,530       27,195     5.67     1,153  
    Total earning assets   1,764,751     4.71     62,275       1,693,304     3.97     50,267  
    Cash and due from banks   13,880               14,046          
    Allowance for loan losses   (8,897 )             (8,871 )        
    Other assets   41,317               38,938          
    Total assets $ 1,811,051             $ 1,737,417          
                               
    Liabilities and Shareholders’ Equity                          
    Interest-bearing deposits:                          
    Interest-bearing demand $ 337,632     0.89 %   2,243     $ 314,012     0.52 %   1,227  
    Municipals   139,810     4.76     4,987       128,270     4.34     4,163  
    Money market   232,140     3.57     6,196       169,308     2.30     2,913  
    Savings   288,885     1.28     2,769       363,496     1.18     3,208  
    Time < $100   168,894     3.98     5,027       113,951     2.30     1,960  
    Time $100 through $250   141,156     4.53     4,790       104,697     3.42     2,676  
    Time > $250   50,855     4.49     1,709       36,590     2.80     767  
    Total interest-bearing deposits   1,359,372     2.72     27,721       1,230,324     1.84     16,914  
    Short-term borrowings   57,880     2.33     1,010       112,724     2.99     2,518  
    Long-term debt   26,058     4.63     918       14,267     3.98     430  
    Subordinated debt   4,605     9.35     323       —     —     —  
    Total interest-bearing liabilities   1,447,915     2.77     29,972       1,357,315     1.96     19,862  
    Non-interest-bearing deposits   187,918               213,492          
    Other liabilities   13,760               10,111          
    Shareholders’ equity   161,458               156,499          
    Total liabilities and                          
    shareholders’ equity $ 1,811,051             $ 1,737,417          
    Net interest rate spread       1.94 %             2.01 %    
    Margin/net interest income       2.45 % $ 32,303           2.40 % $ 30,405  
    Tax-exempt securities and loans were adjusted to a tax-equivalent basis and are based on the Federal corporate tax rate of 21%  
    Non-accrual loans and investment securities are included in earning assets.  
    * Includes loans held-for-sale                          

    The MIL Network –

  • MIL-OSI New Zealand: Activist News – Will Christchurch become first New Zealand city to sanction Israel? – PSNA

    Source: Palestine Solidarity Network Aotearoa

     

    Tomorrow morning (Wednesday 23 October) Christchurch City Council is due to vote on a resolution to amend its procurement policy to exclude companies building and maintaining illegal Israeli settlements in the occupied Palestinian territories. 

     

    The resolution was proposed by PSNA in a presentation to council in June and a positive recommendation is finally coming to council tomorrow.

     

    The details of the agenda item are on Pages 13 to 23 here: Agenda of Finance and Performance Committee – Wednesday, 23 October 2024

     

    “We are delighted the council is to consider this motion tomorrow” says PSNA National Chair John Minto. “If it passes Christchurch will be the first city in New Zealand to end Israeli impunity for war crimes” (Building settlements on occupied land belonging to others is a war crime under international law)

     

    The motion would bring council policy in line with UN Security Council resolution 2334 which was co-sponsored by a previous National government in 2016. It will also mean Christchurch will be the first city council in the country to adopt the policy (Environment Canterbury voted in this policy earlier this year).

     

    “Today Israel is running riot across the Middle East because it has never been held to account for 76 years of flagrant breaches of international law,” says Minto.

     

    “The motion is a small but significant step in sanctioning Israel. Many more steps must follow”.

     

    PSNA National Chair John Minto and University of Canterbury lecturer Josephine Varghese will be speaking to councillors in support of the motion at around 9.40am backed up with supporters in the public gallery.

     

    We hope the media will report this important development in holding Israel to account.

     

    John Minto

    National Chair 

    Palestine Solidarity Network Aotearoa

    MIL OSI New Zealand News –

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

    Source: GlobeNewswire (MIL-OSI)

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

    January to September 2024 in brief

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

    July to September 2024 in brief

    • In the third quarter, the Group’s net revenue totalled EUR 16.7 million (EUR 16.6 million from 1 July to 30 Sept. 2023). The Group’s net fee and commission income was EUR 16.6 million (EUR 16.2 million).
    • The Group’s operating profit fell by 6% to EUR 9.6 million (EUR 10.2 million).
    • The Group’s profit was EUR 7.6 million (EUR 8.1 million).
    • The consolidated earnings per share were EUR 0.18 (EUR 0.20).
    Key ratios 1-9/24 1-9/23 Change 7-9/24 7-9/23 Change 1-12/23
    Net revenue, Group, MEUR 50.9 52.3 -3% 16.7 16.6 1% 70.9
    Net revenue, Asset Management, MEUR 45.5 50.3 -10% 15.2 15.9 -4% 66.9
    Net revenue, Corporate Finance, MEUR 4.3 1.2 251% 1.3 0.3 300% 3.9
    Net revenue, Investments, MEUR 0.5 0.4 15% -0.1 0.3 -133% -0.6
    Net revenue, Group administration and eliminations, MEUR 0.7 0.4   0.2 0.1    0.6
                   
    Operating profit, Group, MEUR 27.6 30.0 -8% 9.6 10.2 -6% 39.7
    Operating profit, Asset Management, MEUR 26.9 31.7 -15% 9.4 10.5 -10% 41.4
    Operating profit, Corporate Finance, MEUR 1.5 -0.9 265% 0.5 -0.2 331% 0.7
    Operating profit, Investments, MEUR 0.5 0.4 15% -0.1 0.3 -133% -0.6
    Operating profit, Group administration, MEUR -1.1 -1.3   -0.3 -0.4   -1.7
                   
    Profit for the period, MEUR 21.9 23.8 -8% 7.6 8.1 -6% 31.5
                   
    Key ratios 1-9/24 1-9/23 Change 7-9/24 7-9/23 Change 1-12/23
    Earnings per share, EUR 0.53 0.59 -9% 0.18 0.20 -8% 0.78
    Equity per share, EUR 1.64 1.65 -1% 1.64 1.65 -1% 1.85
    Cost/income ratio, Group, % 45.7 42.6 7% 42.8 38.5 11% 43.8
                   
    Liquid assets, MEUR 29.0 22.4 29% 29.0 22.4 29% 33.4
    Private equity and real estate fund investments, MEUR 16.5 17.1 -4% 16.5 17.1 -4% 16.6
    Interest-bearing loans, MEUR 0.0 0.0 0% 0.0 0.0 0% 0.0
                   
    Assets under management excluding reporting services, EUR billion 10.4 9.9 4% 10.4 9.9 4% 10.0
    Assets under management, EUR billion 13.3 12.8 4% 13.3 12.8 4% 12.9

    Mikko Koskimies, CEO

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

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

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

    eQ’s operating profit EUR 27.6 million

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

    eQ Asset Management’s assets under management increased

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

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

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

    Advium’s profit grew

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

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

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

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

    The operating profit of Investments increased slightly

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

    Outlook

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

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

    ***

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

    eQ Plc

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

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

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

    Attachment

    The MIL Network –

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

    Source: The White House

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

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

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

    Advancing economic opportunity abroad

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

    Protecting the U.S. financial system from abuse

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

    Keeping America and our partners safe

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

    Defending democracy by rooting out corruption

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

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

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

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

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

    ###

    MIL OSI USA News –

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

    Source: The White House

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

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

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

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

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

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

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

                                  JOSEPH R. BIDEN JR.

    MIL OSI USA News –

  • MIL-OSI China: Revitalizing property, shares high on agenda

    Source: China State Council Information Office

    China’s monetary policymakers are likely to continue next year to prioritize revitalizing market expectations for the ailing property sector and an undervalued capital market to help bring about a steady economic recovery, economists and market mavens said.

    Such a policy stance was clearly signaled by the larger-than-expected lending rate reduction on Monday and the country’s first monetary policy tools that channel funds to the capital market, which will substantively alleviate homebuyer burdens while repairing the valuation of Chinese equities.

    “Shoring up the real estate sector and stabilizing the capital market have become the critical premise for China to expand domestic demand,” said Liu Yuanchun, president of Shanghai University of Finance and Economics.

    On Monday, China cut its market-based benchmark lending rates, with the one-year loan prime rate down to 3.1 percent and the over-five-year LPR, on which lenders base their mortgage rates, to 3.6 percent, both 25 basis points below September levels.

    The cut was slightly larger than expected and marked the biggest cut since 2019 when LPRs became benchmarks.

    Wang Qing, chief macroeconomic analyst at Golden Credit Rating International, said the considerable LPR reduction reflects that the People’s Bank of China, the country’s central bank, is putting into place the “impactful interest rate cuts” outlined by the country’s top leadership, a move that will effectively ease homebuyers’ and enterprises’ financing costs.

    “To ensure that the real estate market stops falling, boosts economic momentum and drives price levels to recover moderately, there remains some room for LPR reductions in 2025,” Wang said.

    China’s A-share market ended higher following the cut, led by smaller-cap stocks, with Shanghai’s tech-heavy STAR 50 index up 2.22 percent to close at 1000.37 points. The market was also lifted by the implementation of a special central bank lending program to buy back shares and boost share holdings.

    The program, starting Friday, offers 300 billion yuan ($42.18 billion) in loans at a rate of 1.75 percent to 21 eligible banks, which will then lend to qualified companies and shareholders at a rate no higher than 2.25 percent.

    As of Sunday, 23 listed companies had applied for over 10 billion yuan of the loans, and more are expected to follow suit.

    Liu, the SUFE president, said the program signals a “significant paradigm shift” that the PBOC is now striving to correct a systemic stock pricing distortion.

    “This will help establish a floor for China’s capital market, addressing the widespread, persistent issue of stock market values falling below book values.”

    Addressing Sibos 2024, a financial services event organized by Swift on Monday, Lu Lei, deputy governor of the PBOC, said the country’s financial sector will continue to embrace opening-up and cooperation, vowing to encourage Chinese sovereign wealth funds and financial institutions to invest abroad.

    MIL OSI China News –

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

    Source: Hong Kong Information Services

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

    MIL OSI Asia Pacific News –

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

    US Senate News:

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

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

    MIL OSI USA News –

  • MIL-OSI USA: Governor Walz Announces $138 Million for I-494 Project

    Source: US State of Minnesota

    Governor Tim Walz today announced that Minnesota received $138 million in federal funding to improve I-494, one of the busiest corridors in the Twin Cities Metropolitan area. The funding comes from President Biden’s Infrastructure Investment and Jobs Act.

    MIL OSI USA News –

  • MIL-OSI Russia: IMF Executive Board Concludes 2024 Article IV Consultation with Türkiye

    Source: IMF – News in Russian

    October 11, 2024

    Washington, DC: On September 27, 2024, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation[1] with Türkiye.

    A decisive shift in economic policies over the past year has tightened Türkiye’s overall policy stance. The Central Bank of the Republic of Türkiye (CBRT) has brought the ex ante real policy rate into positive territory while reducing regulatory complexity. Tax and expenditure measures underpin efforts to restore fiscal prudence and the commitment to stronger incomes policies has strengthened credibility.

    The policy turnaround has reduced economic imbalances and revived confidence. Headline inflation has fallen as tighter financial conditions are weighing on domestic demand. Market sentiment has sharply improved, with domestic and foreign investors shifting into lira-denominated assets while lower commodity prices, buoyant exports, and reduced gold imports have strengthened the current account, supporting a large improvement in both the gross and net reserves position. The financial and corporate sectors appear to have weathered the policy tightening and financial liberalization so far. Credit default swaps (CDS) spreads are now at about half their mid-2023 levels.

    Under the authorities’ gradual policy adjustment, inflation is expected to further decline. Contractionary ex ante real policy rates, moderating wage growth, and more contractionary fiscal policy in 2025 are expected to reduce inflation to 43 percent this year and 24 percent in end-2025. After a strong first quarter, growth has weakened and is expected to fall to 3 percent in 2024 and 2.7 percent in 2025, recovering toward 4 percent in the medium term. Disinflation and improved confidence will support a narrowing of the current account deficit to about 2 percent of GDP and reserves to around 100 percent of the IMF’s adequacy metric.

    Risks around the baseline are significant and tilted to the downside. They include stronger-than-expected wage and price inertia, a reversal of capital flows, higher global energy prices, and escalating geopolitical tensions. Significant financial and external vulnerabilities remain. The authorities’ gradual approach to fighting inflation prolongs the period during which risks might occur.

    Executive Board Assessment[2]

    The Executive Directors agreed with the thrust of the staff appraisal. They commended the authorities for the decisive policy tightening since mid-2023, which has helped to significantly reduce macroeconomic imbalances and risks. However, with inflationary pressures still high, and significant downside risks, they urged the authorities to press ahead with coordinated fiscal, monetary, and incomes policies to anchor inflationary expectations and entrench macroeconomic stability.

    While noting sustainable public debt levels, Directors recommended a larger and more frontloaded fiscal consolidation to support disinflation efforts and further strengthen buffers. They supported strengthening tax administration, rationalizing tax expenditures, broadening the tax base, energy subsidy reform, limiting capital spending to essential projects, and enhancing risk monitoring while protecting earthquake related spending. Directors also urged further efforts to address fiscal risks arising from contingent liabilities in state owned enterprises, public private partnerships, and pension costs.

    While noting the challenges, Directors considered that phasing out backward looking indexation and shifting toward setting wages in line with inflation expectations could significantly help reduce inflation.

    Directors called for continued tight, data dependent monetary policy until inflation converges to target levels. They agreed that the central bank should stand ready to tighten further if needed to ensure that the path of disinflation stays on track. Directors highlighted that further strengthening the monetary transmission mechanism and central bank independence and communication would enhance policy credibility.

    Directors encouraged foreign exchange intervention to focus on smoothing potentially destabilizing exchange rate movements that could dislodge inflation expectations, and to be scaled back as inflation recedes. They highlighted the need to effectively manage volatile capital flows and agreed that capital flow measures should be discontinued gradually as FX liquidity risk and inflation recede.

    Directors underscored the importance of ongoing vigilance and further reforms to maintain financial stability. They supported continued implementation of the 2023 FSAP recommendations and efforts to align the supervisory and regulatory framework with Basel III standards. Directors commended the authorities for recent improvements to the AML/CFT framework and exit from the FATF grey list, while noting that further progress was needed, including to mitigate virtual assets risks.

    Directors called for advancing structural reforms to achieve more inclusive, greener, and higher medium-term growth. Further energy and labor market reforms, including to boost female participation, remain important priorities.

    Türkiye: Selected Economic Indicators, 2019−29

    Population (2023): 85.4 million

    Per capita GDP (2023): US$13,243

    Quota: SDR 4,658.6 million
     

    2019

    2020

    2021

    2022

    2023

    2024

    2025

    2026

    2027

    2028

    2029

     

    Proj.

    Real sector

    (Percent)

    Real GDP growth rate

    0.8

    1.9

    11.4

    5.5

    5.1

    3.0

    2.7

    3.2

    3.4

    3.7

    3.9

    Contributions to real GDP growth

    Private consumption

    0.9

    1.9

    9.2

    11.7

    9.5

    1.1

    0.3

    1.9

    2.0

    2.0

    2.0

    Public consumption

    0.5

    0.3

    0.4

    0.6

    0.3

    0.4

    0.5

    0.5

    0.4

    0.5

    0.4

    Investment (incl. inventories)

    -3.0

    4.8

    -3.2

    -7.5

    -1.6

    0.6

    2.6

    1.1

    1.2

    1.6

    1.7

    Net exports

    2.4

    -5.2

    5.0

    0.7

    -3.1

    0.9

    -0.6

    -0.2

    -0.2

    -0.3

    -0.2

    Output gap

    -2.1

    -4.6

    1.1

    1.5

    1.9

    0.7

    -0.3

    -0.5

    -0.5

    -0.2

    0.0

    GDP deflator growth rate

    13.9

    14.8

    29.0

    96.0

    68.2

    60.0

    31.4

    20.4

    16.6

    15.3

    15.2

    Inflation (period-average)

    15.2

    12.3

    19.6

    72.3

    53.9

    60.9

    33.0

    19.2

    16.0

    15.0

    15.0

    Inflation (end-year)

    11.8

    14.6

    36.1

    64.3

    64.8

    43.0

    24.0

    17.2

    15.3

    15.0

    15.0

    Unemployment rate

    13.7

    13.1

    12.0

    10.4

    9.4

    9.3

    9.9

    9.6

    9.5

    9.3

    9.2

    Fiscal sector

    (Percent of GDP)

    Nonfinancial public sector overall balance

    -5.0

    -4.7

    -3.0

    -2.7

    -5.4

    -5.3

    -3.7

    -3.1

    -3.2

    -3.1

    -3.1

    General government overall balance (headline) 1/

    -3.0

    -4.0

    -2.6

    -0.8

    -5.2

    -5.3

    -3.5

    -3.0

    -3.0

    -3.0

    -3.0

    General government gross debt (EU definition)

    32.4

    39.4

    40.4

    30.8

    29.3

    25.2

    26.0

    26.0

    26.0

    25.9

    25.6

    External sector

    (Percent of GDP)

    Current account balance

    2.0

    -4.3

    -0.8

    -5.1

    -4.0

    -2.2

    -2.1

    -2.0

    -1.9

    -1.9

    -1.9

    Gross external debt

    54.5

    59.8

    53.9

    50.5

    45.2

    41.3

    39.8

    40.9

    40.4

    39.9

    39.3

    Gross financing requirement

    18.0

    24.8

    21.0

    22.9

    21.2

    19.1

    20.0

    20.5

    20.1

    20.0

    19.8

    Monetary conditions (Percent)

    Real average cost of CBRT funding to banks

    5.4

    -1.7

    -1.9

    -59.4

    -35.4

    …

    …

    …

    …

    …

    …

    Growth of broad money (M2)

    27.3

    33.9

    53.0

    59.2

    70.1

    …

    …

    …

    …

    …

    …

    Growth of credit to private sector

    10.9

    34.7

    37.0

    54.7

    54.0

    …

    …

    …

    …

    …

    …

    Sources: Turkish authorities; and IMF staff estimates and projections.

    1/ Headline (or authorities’ definition), which includes items excluded from the IMF ‘program’ definition.

    [1] Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board.

    [2] At the conclusion of the discussion, the Managing Director, as Chairman of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country’s authorities. An explanation of any qualifiers used in summing ups can be found here: http://www.IMF.org/external/np/sec/misc/qualifiers.htm .

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Eva-Maria Graf

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

    @IMFSpokesperson

    https://www.imf.org/en/News/Articles/2024/10/11/pr-24369-turkiye-imf-executive-board-concludes-2024-aiv-consultation

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI Translation: 17/10/2024 The International Monetary Fund positively assesses the Polish economy

    MIL ASI Translation. Region: Polish/Europe –

    Fuente: Gobierno de Polonia en poleco.

    On Wednesday, October 17, 2024, the International Monetary Fund (IMF) completed its mission in Poland, presenting the conclusions and recommendations resulting from the annual economic review. After reviewing the country’s current economic situation and plans for economic, fiscal and monetary policy, the Fund’s experts positively assessed the state of the Polish economy. The mission took place on October 8-17, 2024 under Article IV of the IMF’s Statute. The International Monetary Fund positively assessed the state of the Polish economy. According to the Fund’s experts, Poland’s prospects have improved compared to last year, despite the difficult economic conditions in Europe and the ongoing war in Ukraine. According to the Minister of Finance, Andrzej Domański, the International Monetary Fund’s assessment confirms the stability and resilience of the Polish economy to global challenges. The report shows that Poland’s growth prospects are supported by the unblocked European Union funds, which, combined with a moderate level of debt, significant foreign exchange reserves and solid financial sector buffers, contributes to the economy’s recovery. Risks related to the geopolitical situation and the slowdown in Europe are effectively mitigated, providing grounds for optimism for the future.

    MILES AXIS

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

    MIL Translation OSI

  • MIL-OSI: Sampo plc’s share buybacks 21 October 2024

    Source: GlobeNewswire (MIL-OSI)

    Sampo plc, stock exchange release, 22 October 2024 at 8:30 am EEST

    Sampo plc’s share buybacks 21 October 2024

    On 21 October 2024, Sampo plc (business code 0142213-3, LEI 743700UF3RL386WIDA22) has acquired its own A shares (ISIN code FI4000552500) as follows:                

    Sampo plc’s share buybacks Aggregated daily volume (in number of shares) Daily weighted average price of the purchased shares* Market (MIC Code)
      4,877 41.73 AQEU        
      44,103 41.69 CEUX
      594 41.74 TQEX
      40,928 41.70 XHEL
    TOTAL 90,502 41.70  

    *rounded to two decimals                

    On 17 June 2024, Sampo announced a share buyback programme of up to a maximum of EUR 400 million in compliance with the Market Abuse Regulation (EU) 596/2014 (MAR) and the Commission Delegated Regulation (EU) 2016/1052. On 16 September 2024, the Board of Directors of Sampo plc resolved to increase the share buyback programme to EUR 475 million. The programme, which started on 18 June 2024, is based on the authorisation granted by Sampo’s Annual General Meeting on 25 April 2024.

    After the disclosed transactions, the company owns in total 9,042,747 Sampo A shares representing 1.64 per cent of the total number of shares in Sampo plc, taking the issuance of shares on 16 September 2024 into account.

    Details of each transaction are included as an appendix of this announcement.

    On behalf of Sampo plc,
    Morgan Stanley

    For further information, please contact:

    Sami Taipalus
    Head of Investor Relations
    tel. +358 10 516 0030

    Distribution:
    Nasdaq Helsinki
    Nasdaq Stockholm
    Nasdaq Copenhagen
    London Stock Exchange
    The principal media
    FIN-FSA
    DEN-FSA
    http://www.sampo.com

    Attachment

    The MIL Network –

  • MIL-OSI: Wendel announces a transformational transaction in line with its strategic roadmap

    Source: GlobeNewswire (MIL-OSI)

    PRESS RELEASE – OCTOBER 22, 2024

    Wendel announces a transformational transaction
    in line with its strategic roadmap

    • Acquisition of Monroe Capital LLC dramatically expands Wendel’s Asset Management platform and rebalances its business model towards more recurring cash flows and growth
    • Wendel’s Asset Management platform will represent c.€31 billion1 of AuM in private assets and is expected to generate c.€160 million2 of Fee Related Earnings and c.€185 million of total pre-tax profit in 2025

    Wendel (MF-FP) today announced that it has entered into a definitive partnership agreement including the acquisition of 75% of Monroe Capital LLC (“Monroe Capital” or “the Company”), and a sponsoring program of $800 million to accelerate Monroe Capital’s growth, and will invest in GP commitment for up to $200 million.

    For Wendel, the acquisition of a controlling stake in Monroe Capital, a private credit market leader focused on the U.S. lower middle market that has established an outstanding track record, would represent a significant and transformational advancement of the strategy it announced in March 2023 to develop its third-party asset management platform to complement its longstanding principal investments business.

    This transaction follows Wendel’s recent acquisition of IK Partners, a European leader in middle market private equity, as it seeks to build a scaled third-party asset management platform, based on strong performing General Partners with distinctive and focused expertise, an entrepreneurial mindset and an emphasis on the middle market. The embedded organic growth of those acquisitions will be complemented by Wendel’s unique value proposition which includes:

    • Capital to sponsor new strategies and fund organic and inorganic initiatives ($800 million in the sponsoring program and up to $200m of GP commitment for Monroe Capital)
    • Wendel’s network to develop long term strategic partnerships with highly regarded LPs (Wendel and Monroe Capital intend for AXA-IM Prime to participate in the transaction)
    • Cross selling opportunities by combining the expertise and client bases of GPs
    • Development of centralized fundraising platform to address new markets

    The transaction is subject to the satisfaction of closing conditions and receipt of regulatory approvals. It is expected to be completed in the first half of 2025.

    A private credit leader in the U.S. middle market with a demonstrated strong track record across market cycles

    Founded in 2004 by Ted Koenig, Monroe Capital provides private credit solutions to borrowers in the U.S. and Canada, managing $19.53 billion of assets across 45+ investment vehicles. Monroe Capital’s strategic verticals are Lower Middle Market Direct Lending, Alternative Credit, Software & Technology, Real Estate, Venture Debt, Independent Sponsor and Middle Market CLOs. Each vertical has demonstrated strong investment performance and offers potential for significant organic growth.

    Through July 1, 2024, Monroe Capital has directly originated over 700 transactions, has invested over $44 billion and has earned c.10% gross unlevered IRR4 for its directly originated transactions. Monroe Capital’s LP base is very broad and diversified, including public pensions, insurance companies, family offices and high net worth individuals from across the globe.

    The firm, which is headquartered in Chicago, maintains eleven offices, of which nine are in the U.S., one in Abu Dhabi, UAE and one in Seoul, South Korea. Monroe Capital has grown to a team of over 270 employees, including 110 investment professionals.

    A transaction aligning strategic interests of all stakeholders over the long-term

    The envisaged transaction is a strategic partnership in which Monroe Capital’s teams — who remain committed for the long term — will continue to operate independently and autonomously in day-to-day management of current markets and strategies, under the same brand. Monroe Capital’s Investment Committee also would remain fully independent.

    A key feature of the planned partnership will be the commitment of significant capital by Wendel to support Monroe Capital’s present and future funds, as well as the development of new strategies. The contemplated transaction would lead to the full acquisition by Wendel of Monroe Capital over time, with subsequent transactions structured to ensure alignment of interests of all stakeholders:

    (i)      Initial transaction

    As part of the initial transaction, which is expected to be finalized in the first half of 2025, Wendel shall invest $1.13 billion, to acquire 75% of Monroe Capital’s shares (50% from Monroe management and 25% from Bonaccord Capital Partners who is a minority interest owner of Monroe) together with rights to c.20% of the carried interest generated on past and future funds. Monroe management will continue to own 25% of the Company post-closing.

    (ii)      Long-term alignment and subsequent transactions

    This transaction aims to maintain a long term and uncapped alignment of interests between Wendel and Monroe Capital’s 23 partners and employees:

    The initial transaction involving 75% of Monroe Capital would be complemented by an earn-out mechanism in the maximum amount of $255 million, subject to Fee Related Earnings (“FRE”) performance thresholds (Max if CAGR above c.26%) in the period, and if achieved would be paid in cash in 2028.

    The total consideration for the 75% would correspond to c. 14.7x to 18.5x 2025e pre-tax FRE depending on the earn out effectively paid and a 4.2x 2025e pre-tax Performance Related Earnings.

    Wendel will have a path to purchase the remaining 25% of Monroe Capital’s shares in subsequent transactions (put / call mechanisms) that would take place in three instalments over 2028 and 2032 and be payable in cash. The purchase of the remaining 25% shares would be valued through variable purchase multiples determined depending on realized FRE growth.

    (iii)      Capital commitment

    In addition, to accelerate Monroe Capital’s growth, Wendel would seed future new initiatives launched by the Company, with sponsor money, up to a maximum of $800 million in total, thereby supporting Monroe’s growth and diversifying Wendel’s investments in asset classes. In addition, Wendel will fund GP commitment of c.1% of funds to be raised, up to a maximum of $200 million. In total, Wendel will invest $1 billion into Monroe Capital’s funds.

    (iv)      AXA IM Prime’s investment alongside Wendel

    In addition, Wendel and Monroe Capital intend for AXA IM Prime to participate in the transaction. Wendel and AXA IM Prime have longstanding relationship and have jointly worked since inception on the current transaction. Both companies are now in discussion to confirm AXA IM Prime investment (up to $50m) as a minority shareholder, through its GP-stake fund “AXA IM Prime Capital Partners I” (“PCP I”), alongside Wendel in Monroe Capital. AXA Group (CS-FP) is the anchor investor of PCP I and already a significant and historic Limited Partner in Monroe Capital’s funds.

    Wendel to become an Asset Manager alongside its historical Principal Investment activity

    Wendel’s ambition is to build a sizeable Asset Management platform managing investments in multiple private asset classes, alongside its historical Principal Investment activity. The development of the third-party Asset Management platform will provide Wendel with recurring and growing cashflows as well as exposure to multiple and high performing asset classes. As a result, Wendel’s dual business model is expected to generate an attractive and recurring return to shareholders.

    With IK Partners and Monroe Capital, Wendel’s third party private asset management platform will reach c.€31 billion in AUM5, c.€ 455 million revenues, c.€160 million pre-tax FRE (c.€101 million in pre-tax FRE (Wendel share) by 2025 and is expected to reach €150 million (Wendel share) in pre-tax FRE by 2027 through double-digit organic growth.

    This evolution of Wendel’s business model is designed to enable the development, over time, of a value-creating platform with the potential to generate operational synergies.

    The third-party Asset Management platform will be developed alongside Wendel’s Principal Investment strategy, with the objective of generating double-digit Total Shareholder Return.

    Laurent Mignon, Wendel Group CEO, commented:

    “One year after announcing the acquisition of 51% of IK Partners, we are proud to announce the acquisition of 75% of Monroe Capital LLC, creating a strong partnership with a private credit leader in the U.S. lower midmarket. This acquisition marks an important step forward for Wendel’s asset management platform, which we are committed to scaling. Wendel is becoming an asset manager alongside our decades-long activity as a long-term equity investor. Monroe Capital, founded by Ted Koenig in 2004, is a terrific company that has consistently delivered strong performance across various market cycles in North America, bolstered by a surge in demand for private credit solutions and with the scale to capitalize on the growing opportunity set we see in private credit. Monroe Capital is strategically positioned to capitalize on this increasing demand, attracting both institutional and retail investors.

    Through this partnership with Monroe Capital, we are thrilled to collaborate with Ted Koenig, Chairman and CEO, Zia Uddin, President, and their talented teams to support their success and their ability to deliver robust financial performance over the coming years. It will be also a great privilege for Wendel to partner with such a renowned investor as AXA IM Prime.

    Wendel is executing its strategic plan with determination, rigor and financial discipline, as demonstrated by this transformational acquisition, while also focusing on premium assets in our principal investment activities, highlighted by the recent acquisition of Globeducate. Our transformation to a dual-strategy model is now well-grounded, with top partners in asset management such as IK Partners in private equity and now Monroe Capital in private credit. Our priority for the near future will be to build our platform and to work on the rotation of our Principal Investment assets.

    I would like to express my gratitude to the Wendel teams for their unwavering dedication and to the Supervisory Board of Wendel for its constant support in driving this ambitious strategy forward.”

    Theodore L. Koenig, Chairman & CEO of Monroe Capital commented:

    “We are excited to partner with Wendel and AXA IM on this next chapter of Monroe’s growth. Their commitment to our business will provide meaningful and stable capital to thoughtfully scale our platform and better capture the attractive and expanding opportunity in middle market private credit. Specifically, Wendel’s $1 billion commitment will accelerate our client-centric growth strategy and deliver meaningful benefits to our global investor base.”

    UBS acted as exclusive financial advisor to Wendel and Kirkland & Ellis LLP acted as legal counsel to Wendel. Wendel was also assisted by Fenchurch Advisory for this transaction. Goldman Sachs & Co. LLC acted as exclusive financial advisor to Monroe Capital, and Fried, Frank, Harris, Shriver & Jacobson LLP acted as legal counsel to Monroe Capital.

    About Monroe Capital

    Monroe Capital LLC (“Monroe”) is a premier asset management firm specializing in private credit markets across various strategies, including direct lending, technology finance, venture debt, alternative credit solutions, structured credit, real estate and equity. Since 2004, the firm has been successfully providing capital solutions to clients in the U.S. and Canada. Monroe prides itself on being a value-added and user-friendly partner to business owners, management, and both private equity and independent sponsors. Monroe’s platform offers a wide variety of investment products for both institutional and high net worth investors with a focus on generating high quality “alpha” returns irrespective of business or economic cycles. The firm is headquartered in Chicago and maintains 11 offices throughout the United States and Asia.

    About Wendel

    Wendel is one of Europe’s leading listed investment firms. The Group historically has made long-term equity investments in European and North American companies that are leaders in their field, including its current investments ACAMS, Bureau Veritas, Crisis Prevention Institute, Globeducate, IHS Towers, Scalian, Stahl and Tarkett. With Wendel Growth, Wendel also invests via funds or directly in innovative, high-growth companies. In 2023, Wendel announced its intention to build out a third-party private asset management platform to complement its principal investment activities. In the first step in advancing this dual-strategy model, Wendel in May 2024 finalized the acquisition of a 51% stake in IK Partners.

    Agenda

    Thursday, October 24, 2024

    Q3 2024 Trading update – Publication of NAV as of September 30, 2024 (post-market release)

    Friday, December 6, 2024,

    2024 Investor Day.

    Wednesday, February 26, 2025

    Full-Year 2024 Results – Publication of NAV as of December 31, 2024, and Full-Year consolidated financial statements (post-market release)

    Thursday, April 24, 2025

    Q1 2025 Trading update – Publication of NAV as of March 31, 2025 (post-market release)

    Thursday, May 15, 2025

    Annual General Meeting

    Wednesday, July 30, 2025

    H1 2025 results – Publication of NAV as of June 30, 2025, and condensed Half-Year consolidated financial statements (post-market release)

    1 As of September 2024

    2 c.€101m of FRE expected in 2025, Wendel share.

    3 committed and managed capital (as of July 1, 2024)

    4 Across fully exited companies

    5 As of September 2024

    Attachment

    The MIL Network –

  • MIL-OSI Russia: IMF Reaches Staff-Level Agreement with Tanzania on the Fourth Review of the Extended Credit Facility and the First Review of the Resilience and Sustainability Facility

    Source: IMF – News in Russian

    October 17, 2024

    End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF’s Executive Board for discussion and decision.

    • The Tanzanian authorities and the IMF have reached staff-level agreement on the fourth review under the Extended Credit Facility (ECF) and the first review under the Resilience and Sustainability Facility (RSF).
    • Economic growth momentum is picking up in 2024 with improved external and fiscal balances and low inflation. Policy priorities continue to be focused on enhancing exchange rate flexibility, strengthening the monetary policy framework, continuing to implement growth-friendly fiscal consolidation, enhancing domestic revenue mobilization, and expediting structural reform implementation.
    • The RSF is supporting the authorities’ efforts to advance structural reforms and investments in adaptation and mitigation to address risks and challenges associated with climate change.

    Washington, DC: A staff team from the International Monetary Fund (IMF) led by Mr. Charalambos Tsangarides, IMF mission chief for Tanzania, visited Dodoma and Dar es Salaam from October 2 to 17, 2024, to hold discussions with the authorities on the fourth review under the Extended Credit Facility (ECF) and the first review under the Resilience and Sustainability Facility (RSF). Subject to approval by the IMF Executive Board,  the review will make available SDR198.61 million (about US$265.78 million), bringing the total IMF financial support under the ECF arrangement to SDR568.84 million (about US$758.11 million), and SDR85.24 million (about US$114.07 million) under the RSF.

    At the conclusion of the mission, Mr. Tsangarides issued the following statement:

    “I am pleased to announce that the IMF team and the Tanzanian authorities have reached a staff-level agreement on the policies needed to complete the fourth review under Tanzania’s ECF-supported program, and the first review of the RSF arrangement. The IMF’s Executive Board will discuss these requests in the coming weeks.

    “The momentum in Tanzania’s economy is continuing in 2024 with economic activity growing at about 5.4 percent in the first half of 2024 after an annual growth of 5.1 percent in 2023. Inflation in September remained stable at 3.1 percent (yoy), well within the Bank of Tanzania (BoT) target. Earlier headwinds to the economy have subsided, and improved liquidity in the foreign exchange market has alleviated some of the shortage in the formal market, although pressures remain. The outlook is favorable, with growth expected to pick up to 5.4 percent in 2024; however, risks are tilted to the downside as intensification of regional conflicts, increased commodity price volatility, a global slowdown, reemergence of FX pressures in the first half of 2025, and climate related disasters, could weigh negatively on the economy.

    “The current account deficit improved markedly to about 3.1 percent of GDP in FY2023/24 from 6.5 percent of GDP the previous year, on the back of strong service exports growth and a slowdown in imports of goods and services helped by lower commodity prices. Improvements in the current account balance year-on-year, a 13 percent exchange rate depreciation over the same period, and the seasonal inflows of dollars in the second half of the year have helped ease some of the foreign exchange market pressures. The BoT remains committed to continue to allow exchange rate flexibility to ensure a market determined exchange rate, while limiting FX interventions to avoid disorderly market conditions, in line with its intervention policy. Maintaining a moderately tight monetary policy stance will complement efforts to ease pressures in the FX market, while preserving price stability.

    “Fiscal consolidation in FY2023/24 was achieved through improvements in tax revenue collections and adjustments in current spending. The FY2024/25 budget envisages continued growth-friendly consolidation, supported by tax policy and revenue administration efforts. The government is committed to increase priority social spending to protect the most vulnerable. The authorities’ structural reform agenda aims to support a resilient, sustainable, and inclusive growth through improving the business environment and strengthening governance.

    “At its meeting in October, the BoT Monetary Policy Committee maintained the policy rate, the Central Bank Rate, at 6 percent, to contain emerging inflationary pressures. The BoT will continue to calibrate its monetary policy to maintain low and stable prices, while safeguarding the recovery of economic activities from the impacts of global economic shocks and unfavorable weather conditions.

    “Supported by the RSF, the authorities are implementing their climate reform agenda to address climate policy challenges and enhance the resilience and sustainability of the Tanzanian economy. Efforts are underway to clearly define the institutional framework for climate change related policies and strengthen public investment management in line with climate impacts and risks. Progress on the implementation of the RSF reforms continues, and the authorities are mobilizing technical and financial assistance from development partners.

    “The mission met with Minister of Finance, Dr. Mwigulu Nchemba, Bank of Tanzania Governor, Mr. Emmanuel Tutuba, other senior officials, development partners, and private sector representatives. The IMF team would like to thank the Tanzanian authorities and other counterparts for their hospitality, and the candid and productive discussions.”

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Pavis Devahasadin

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

    @IMFSpokesperson

    https://www.imf.org/en/News/Articles/2024/10/17/pr-24378-tanzania-imf-reaches-staff-level-agreement-on-the-4th-rev-of-ecf-and-1st-rev-of-rsf

    MIL OSI

    MIL OSI Russia News –