Category: housing

MIL-OSI Economics: Strong Portfolio and Strategic Priorities Support Phillips 66 Third-Quarter Results

Source: Phillips

Reported third-quarter earnings of $346 million or $0.82 per share; adjusted earnings of $859 million or $2.04 per share
Returned $1.3 billion to shareholders through dividends and share repurchases
Achieved business transformation $1.4 billion run-rate savings target, including $1 per barrel Refining cost reduction
Progressed asset dispositions totaling $2.7 billion toward $3 billion target, including recently executed agreements

HOUSTON–(BUSINESS WIRE)– Phillips 66 (NYSE: PSX), a leading integrated downstream energy provider, announced third-quarter earnings.
“Our employees continue to execute our strategic priorities, deliver strong operating performance and leverage the benefits of our differentiated downstream portfolio,” said Mark Lashier, chairman and CEO of Phillips 66.
“We have achieved our cost reduction and Midstream synergy targets,” said Lashier. “In addition, we have significantly advanced our asset disposition program with recently announced transactions. Our commitment to operational excellence and disciplined capital allocation continues to create long-term shareholder value.”
Financial Results Summary ( in millions of dollars, except as indicated)

3Q 2024

2Q 2024

Earnings

$

346

1,015

Adjusted Earnings 1

859

984

Adjusted EBITDA 1

1,998

2,183

Earnings Per Share

Earnings Per Share – Diluted

0.82

2.38

Adjusted Earnings Per Share – Diluted 1

2.04

2.31

Cash Flow From Operations

1,132

2,097

Cash Flow From Operations, Excluding Working Capital 1

1,513

1,181

Capital Expenditures & Investments 2

358

367

Return of Capital to Shareholders

1,277

1,325

Share repurchases

800

840

Dividends paid

477

485

Cash

1,637

2,444

Debt

19,998

19,960

Debt-to-capital ratio

40

%

40

%

Net debt-to-capital ratio 1

38

%

36

%

1Represents a non-GAAP financial measure. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release.

2Excludes acquisitions of $567 million in the third quarter of 2024, and purchases of government obligations of $1.1 billion in third-quarter of 2024.

Segment Financial and Operating Highlights (in millions of dollars, except as indicated)

3Q 2024

2Q 2024

Change

Earnings 1

$

346

1,015

(669

)

Midstream

644

767

(123

)

Chemicals

342

222

120

Refining

(108

)

302

(410

)

Marketing and Specialties

(22

)

415

(437

)

Renewable Fuels

(116

)

(55

)

(61

)

Corporate and Other

(327

)

(340

)

13

Income tax expense

(44

)

(291

)

247

Noncontrolling interests

(23

)

(5

)

(18

)

Adjusted Earnings 1,2

$

859

984

(125

)

Midstream

672

753

(81

)

Chemicals

342

222

120

Refining

(67

)

302

(369

)

Marketing and Specialties

583

415

168

Renewable Fuels

(116

)

(55

)

(61

)

Corporate and Other

(327

)

(340

)

13

Income tax expense

(205

)

(278

)

73

Noncontrolling interests

(23

)

(35

)

12

Adjusted EBITDA 2

$

1,998

2,183

(185

)

Midstream

892

971

(79

)

Chemicals

466

348

118

Refining

188

531

(343

)

Marketing and Specialties

656

484

172

Renewable Fuels

(92

)

(43

)

(49

)

Corporate and Other

(112

)

(108

)

(4

)

Operating Highlights

Midstream NGL Fractionated Volumes (MBD)

728

744

(16

)

Chemicals Global O&P Utilization

98

%

98

%

—

%

Refining

Turnaround Expense ($)

137

100

37

Realized Margin ($/BBL) 2

8.31

10.01

(1.70

)

Crude Capacity Utilization

94

%

98

%

(4

%)

Clean Product Yield

87

%

86

%

1

%

Renewable Fuels Produced (MBD)

44

31

13

1Segment reporting is pre-tax.

2Represents a non-GAAP financial measure. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release.

Third-Quarter 2024 Financial Results
Reported earnings were $346 million for the third quarter of 2024 versus $1.0 billion in the second quarter. Third-quarter earnings included a legal accrual of $605 million in the Marketing and Specialties segment, costs related to the planned shutdown of the Los Angeles Refinery of $41 million in the Refining segment, and an impairment of $28 million in the Midstream segment. Second-quarter earnings included a gain on sale of investment of $238 million and an impairment of $224 million, both impacting the Midstream segment. Adjusted earnings for the third quarter were $859 million versus $984 million in the second quarter.
Midstream third-quarter 2024 adjusted pre-tax income decreased compared with the second quarter mainly due to seasonal maintenance costs and lower equity earnings, partially offset by higher export margins.
Chemicals reported pre-tax income increased mainly due to higher margins and lower costs.
Refining adjusted pre-tax loss was a decrease compared to the second quarter, primarily due to a decline in realized margins largely driven by lower market crack spreads.
Marketing and Specialties adjusted pre-tax income increased primarily due to higher margins.
Renewable Fuels reported pre-tax loss increased primarily due to lower realized margins, partially offset by higher volumes.
As of September 30, 2024, the company had $1.6 billion of cash and cash equivalents and $5.3 billion of committed capacity available under credit facilities.
Business Highlights and Strategic Priorities Progress
Distributed $12.5 billion through share repurchases and dividends since July 2022 and on pace to achieve the company’s $13 billion to $15 billion target by year-end.
Achieved $1.4 billion in run-rate business transformation savings, delivering on the company’s target ahead of schedule.
Expanded its Midstream NGL wellhead-to-market business with the acquisition of Pinnacle Midstream and approved a follow-on processing plant expansion in the Midland Basin expected to be completed in mid-year 2025.
Achieved target of over $400 million of run-rate synergies from the successful integration of DCP Midstream.
Received proceeds of $1.3 billion since 2022 toward the company’s $3 billion asset disposition target. In addition, the company recently agreed to sell its 49% interest in a Switzerland-based retail joint venture for $1.24 billion, and its interests in non-core Midstream assets in North Dakota.
Investor Webcast
Members of Phillips 66 executive management will host a webcast at noon ET to provide an update on the company’s strategic initiatives and discuss the company’s third-quarter performance. To access the webcast and view related presentation materials, go to phillips66.com/investors and click on “Events & Presentations.” For detailed supplemental information, go to phillips66.com/supplemental.
About Phillips 66
Phillips 66 (NYSE: PSX) is a leading integrated downstream energy provider that manufactures, transports and markets products that drive the global economy. The company’s portfolio includes Midstream, Chemicals, Refining, Marketing and Specialties, and Renewable Fuels businesses. Headquartered in Houston, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future. For more information, visit phillips66.com or follow @Phillips66Co on LinkedIn.Use of Non-GAAP Financial Information —This news release includes the terms “adjusted earnings,” “adjusted pre-tax income (loss),” “adjusted EBITDA,” “adjusted earnings per share,” “refining realized margin per barrel,” “cash from operations, excluding working capital,” and “net debt-to-capital ratio.” These are non-GAAP financial measures that are included to help facilitate comparisons of operating performance across periods and to help facilitate comparisons with other companies in our industry. Where applicable, these measures exclude items that do not reflect the core operating results of our businesses in the current period or other adjustments to reflect how management analyzes results. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release.
References in the release to earnings refer to net income attributable to Phillips 66. References to run-rate business transformation savings include cost savings and other benefits that will be captured in the sales and other operating revenues impacting gross margin; purchased crude oil and products costs impacting gross margin; operating expenses; selling, general and administrative expenses; and equity in earnings of affiliates lines on our consolidated statement of income when realized. Run-rate savings include run-rate sustaining capital savings. Run-rate sustaining capital savings include savings that will be captured in the capital expenditures and investments on our consolidated statement of cash flows when realized.
Basis of Presentation — Effective April 1, 2024, we changed the internal financial information reviewed by our chief executive officer to evaluate performance and allocate resources to our operating segments. This included changes in the composition of our operating segments, as well as measurement changes for certain activities between our operating segments. The primary effects of this realignment included establishment of a Renewable Fuels operating segment, which includes renewable fuels activities and assets historically reported in our Refining, Marketing and Specialties (M&S), and Midstream segments; change in method of allocating results for certain Gulf Coast distillate export activities from our M&S segment to our Refining segment; reclassification of certain crude oil and international clean products trading activities between our M&S segment and our Refining segment; and change in reporting of our 16% investment in NOVONIX from our Midstream segment to Corporate and Other. Accordingly, prior period results have been recast for comparability.
In the third quarter of 2024, we began presenting the line item “Capital expenditures and investments” on our consolidated statement of cash flows exclusive of acquisitions, net of cash acquired. Accordingly, prior period information has been reclassified for comparability.
Cautionary Statement for the Purposes of the “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995 —This news release contains forward-looking statements within the meaning of the federal securities laws relating to Phillips 66’s operations, strategy and performance. Words such as “anticipated,” “estimated,” “expected,” “planned,” “scheduled,” “targeted,” “believe,” “continue,” “intend,” “will,” “would,” “objective,” “goal,” “project,” “efforts,” “strategies” and similar expressions that convey the prospective nature of events or outcomes generally indicate forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements included in this news release are based on management’s expectations, estimates and projections as of the date they are made. These statements are not guarantees of future events or performance, and you should not unduly rely on them as they involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include: changes in governmental policies or laws that relate to our operations, including regulations that seek to limit or restrict refining, marketing and midstream operations or regulate profits, pricing, or taxation of our products or feedstocks, or other regulations that restrict feedstock imports or product exports; our ability to timely obtain or maintain permits necessary for projects; fluctuations in NGL, crude oil, refined petroleum, renewable fuels and natural gas prices, and refining, marketing and petrochemical margins; the effects of any widespread public health crisis and its negative impact on commercial activity and demand for refined petroleum or renewable fuels products; changes to worldwide government policies relating to renewable fuels and greenhouse gas emissions that adversely affect programs including the renewable fuel standards program, low carbon fuel standards and tax credits for renewable fuels; potential liability from pending or future litigation; liability for remedial actions, including removal and reclamation obligations under existing or future environmental regulations; unexpected changes in costs for constructing, modifying or operating our facilities; our ability to successfully complete, or any material delay in the completion of, any asset disposition, acquisition, shutdown or conversion that we have announced or may pursue, including receipt of any necessary regulatory approvals or permits related thereto; unexpected difficulties in manufacturing, refining or transporting our products; the level and success of drilling and production volumes around our midstream assets; risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products, renewable fuels or specialty products; lack of, or disruptions in, adequate and reliable transportation for our products; failure to complete construction of capital projects on time or within budget; our ability to comply with governmental regulations or make capital expenditures to maintain compliance with laws; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets, which may also impact our ability to repurchase shares and declare and pay dividends; potential disruption of our operations due to accidents, weather events, including as a result of climate change, acts of terrorism or cyberattacks; general domestic and international economic and political developments, including armed hostilities (such as the Russia-Ukraine war), expropriation of assets, and other diplomatic developments; international monetary conditions and exchange controls; changes in estimates or projections used to assess fair value of intangible assets, goodwill and property and equipment and/or strategic decisions with respect to our asset portfolio that cause impairment charges; investments required, or reduced demand for products, as a result of environmental rules and regulations; changes in tax, environmental and other laws and regulations (including alternative energy mandates); political and societal concerns about climate change that could result in changes to our business or increase expenditures, including litigation-related expenses; the operation, financing and distribution decisions of equity affiliates we do not control; and other economic, business, competitive and/or regulatory factors affecting Phillips 66’s businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

Earnings

Millions of Dollars

2024

2023

3Q

2Q

Sep YTD

3Q

Sep YTD

Midstream

$

644

767

1,965

724

2,060

Chemicals

342

222

769

104

494

Refining

(108

)

302

410

1,712

4,481

Marketing and Specialties

(22

)

415

759

605

1,501

Renewable Fuels

(116

)

(55

)

(226

)

22

164

Corporate and Other

(327

)

(340

)

(989

)

(354

)

(992

)

Pre-Tax Income

413

1,311

2,688

2,813

7,708

Less: Income tax expense

44

291

538

670

1,754

Less: Noncontrolling interests

23

5

41

46

199

Phillips 66

$

346

1,015

2,109

2,097

5,755

Adjusted Earnings

Millions of Dollars

2024

2023

3Q

2Q

Sep YTD

3Q

Sep YTD

Midstream

$

672

753

2,038

581

1,915

Chemicals

342

222

769

104

494

Refining

(67

)

302

548

1,742

4,525

Marketing and Specialties

583

415

1,305

605

1,501

Renewable Fuels

(116

)

(55

)

(226

)

22

164

Corporate and Other

(327

)

(340

)

(989

)

(303

)

(812

)

Pre-Tax Income

1,087

1,297

3,445

2,751

7,787

Less: Income tax expense

205

278

709

660

1,768

Less: Noncontrolling interests

23

35

71

21

218

Phillips 66

$

859

984

2,665

2,070

5,801

Millions of Dollars

Except as Indicated

2024

2023

3Q

2Q

Sep YTD

3Q

Sep YTD

Reconciliation of Consolidated Earnings to Adjusted Earnings

Consolidated Earnings

$

346

1,015

2,109

2,097

5,755

Pre-tax adjustments:

Impairments 1

28

224

415

—

—

Net gain on asset dispositions

—

(238

)

(238

)

(101

)

(123

)

Change in inventory method for acquired business

—

—

—

(46

)

(46

)

Los Angeles Refinery shutdown-related costs 2

41

—

41

—

—

Legal accrual 3

605

—

605

30

30

Legal settlement

—

—

(66

)

—

—

Business transformation restructuring costs

—

—

—

51

127

Loss on early redemption of DCP debt

—

—

—

—

53

DCP integration restructuring costs

—

—

—

4

38

Tax impact of adjustments 4

(161

)

13

(171

)

10

(14

)

Noncontrolling interests

—

(30

)

(30

)

25

(19

)

Adjusted earnings

$

859

984

2,665

2,070

5,801

Earnings per share of common stock ( dollars )

$

0.82

2.38

4.94

4.69

12.61

Adjusted earnings per share of common stock ( dollars ) 5

$

2.04

2.31

6.25

4.63

12.71

Reconciliation of Segment Pre-Tax Income (Loss) to Adjusted Pre-Tax Income (Loss)

Midstream Pre-Tax Income

$

644

767

1,965

724

2,060

Pre-tax adjustments:

Impairments 1

28

224

311

—

—

Net gain on asset disposition

—

(238

)

(238

)

(101

)

(137

)

Change in inventory method for acquired business

—

—

—

(46

)

(46

)

DCP integration restructuring costs

—

—

—

4

38

Adjusted pre-tax income

$

672

753

2,038

581

1,915

Chemicals Pre-Tax Income

$

342

222

769

104

494

Pre-tax adjustments:

None

—

—

—

—

—

Adjusted pre-tax income

$

342

222

769

104

494

Refining Pre-Tax Income (Loss)

$

(108

)

302

410

1,712

4,481

Pre-tax adjustments:

Impairments 1

—

—

104

—

—

Los Angeles Refinery shutdown-related costs 2

41

—

41

—

—

Net loss on asset disposition

—

—

—

—

14

Legal accrual 3

—

—

—

30

30

Legal settlement

—

—

(7

)

—

—

Adjusted pre-tax income (loss)

$

(67

)

302

548

1,742

4,525

Marketing and Specialties Pre-Tax Income (Loss)

$

(22

)

415

759

605

1,501

Pre-tax adjustments:

Legal accrual 3

605

—

605

—

—

Legal settlement

—

—

(59

)

—

—

Adjusted pre-tax income

$

583

415

1,305

605

1,501

Renewable Fuels Pre-Tax Income (Loss)

$

(116

)

(55

)

(226

)

22

164

Pre-tax adjustments:

None

—

—

—

—

—

Adjusted pre-tax income (loss)

$

(116

)

(55

)

(226

)

22

164

Corporate and Other Pre-Tax Loss

$

(327

)

(340

)

(989

)

(354

)

(992

)

Pre-tax adjustments:

Business transformation restructuring costs

—

—

—

51

127

Loss on early redemption of DCP debt

—

—

—

—

53

Adjusted pre-tax loss

$

(327

)

(340

)

(989

)

(303

)

(812

)

1Impairments primarily related to certain gathering and processing assets in the Midstream segment, as well as certain crude oil processing and logistics assets in California, reported in the Refining segment.

2Shutdown-related costs recorded in the Refining segment include pre-tax charges for severance costs.

3Legal accrual primarily related to ongoing litigation.

4We generally tax effect taxable U.S.-based special items using a combined federal and state statutory income tax rate of approximately 24%. Taxable special items attributable to foreign locations likewise use a local statutory income tax rate. Nontaxable events reflect zero income tax. These events include, but are not limited to, most goodwill impairments, transactions legislatively exempt from income tax, transactions related to entities for which we have made an assertion that the undistributed earnings are permanently reinvested, or transactions occurring in jurisdictions with a valuation allowance.

5YTD 2024, Q3 2024, Q3 2023 are based on adjusted weighted-average diluted shares of 426,301 thousand, 419,827 thousand, and 447,255 thousand, respectively. Other periods are based on the same weighted-average diluted shares outstanding as that used in the GAAP diluted earnings per share calculation. Income allocated to participating securities, if applicable, in the adjusted earnings per share calculation is the same as that used in the GAAP diluted earnings per share calculation.

Millions of Dollars

Except as Indicated

2024

3Q

2Q

Reconciliation of Consolidated Net Income to Adjusted EBITDA

Net Income

$

369

1,020

Plus:

Income tax expense

44

291

Net interest expense

191

200

Depreciation and amortization

543

497

Phillips 66 EBITDA

$

1,147

2,008

Special Item Adjustments (pre-tax):

Impairments

28

224

Net gain on asset disposition

—

(238

)

Los Angeles Refinery shutdown-related costs

41

—

Legal accrual

605

—

Legal settlement

—

—

Total Special Item Adjustments (pre-tax)

674

(14

)

Change in Fair Value of NOVONIX Investment

—

7

Phillips 66 EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment

$

1,821

2,001

Other Adjustments (pre-tax):

Proportional share of selected equity affiliates income taxes

24

26

Proportional share of selected equity affiliates net interest

12

19

Proportional share of selected equity affiliates depreciation and amortization

188

195

Adjusted EBITDA attributable to noncontrolling interests

(47

)

(58

)

Phillips 66 Adjusted EBITDA

$

1,998

2,183

Reconciliation of Segment Income before Income Taxes to Adjusted EBITDA

Midstream Income before income taxes

$

644

767

Plus:

Depreciation and amortization

233

224

Midstream EBITDA

$

877

991

Special Item Adjustments (pre-tax):

Net gain on asset disposition

—

(238

)

Impairments

28

224

Midstream EBITDA, Adjusted for Special Items

$

905

977

Other Adjustments (pre-tax):

Proportional share of selected equity affiliates income taxes

5

5

Proportional share of selected equity affiliates net interest

3

10

Proportional share of selected equity affiliates depreciation and amortization

26

37

Adjusted EBITDA attributable to noncontrolling interests

(47

)

(58

)

Midstream Adjusted EBITDA

$

892

971

Chemicals Income before income taxes

$

342

222

Plus:

None

—

—

Chemicals EBITDA

$

342

222

Special Item Adjustments (pre-tax):

None

—

—

Chemicals EBITDA, Adjusted for Special Items

$

342

222

Other Adjustments (pre-tax):

Proportional share of selected equity affiliates income taxes

13

15

Proportional share of selected equity affiliates net interest

(2

)

—

Proportional share of selected equity affiliates depreciation and amortization

113

111

Chemicals Adjusted EBITDA

$

466

348

Refining Income (loss) before income taxes

$

(108

)

302

Plus:

Depreciation and amortization

230

204

Refining EBITDA

$

122

506

Special Item Adjustments (pre-tax):

Los Angeles Refinery shutdown-related costs

41

—

Refining EBITDA, Adjusted for Special Items

$

163

506

Other Adjustments (pre-tax):

Proportional share of selected equity affiliates income taxes

(1

)

1

Proportional share of selected equity affiliates net interest

(1

)

(2

)

Proportional share of selected equity affiliates depreciation and amortization

27

26

Refining Adjusted EBITDA

$

188

531

Marketing and Specialties Income (loss) before income taxes

$

(22

)

415

Plus:

Depreciation and amortization

32

32

Marketing and Specialties EBITDA

$

10

447

Special Item Adjustments (pre-tax):

Legal accrual

605

—

Marketing and Specialties EBITDA, Adjusted for Special Items

$

615

447

Other Adjustments (pre-tax):

Proportional share of selected equity affiliates income taxes

7

5

Proportional share of selected equity affiliates net interest

12

11

Proportional share of selected equity affiliates depreciation and amortization

22

21

Marketing and Specialties Adjusted EBITDA

$

656

484

Renewable Fuels Loss before income taxes

$

(116

)

(55

)

Plus:

Depreciation and amortization

24

12

Renewable Fuels EBITDA

$

(92

)

(43

)

Special Item Adjustments (pre-tax):

None

—

—

Renewable Fuels EBITDA, Adjusted for Special Items

$

(92

)

(43

)

Corporate and Other Loss before income taxes

$

(327

)

(340

)

Plus:

Net interest expense

191

200

Depreciation and amortization

24

25

Corporate and Other EBITDA

$

(112

)

(115

)

Special Item Adjustments (pre-tax):

None

—

—

Total Special Item Adjustments (pre-tax)

—

—

Change in Fair Value of NOVONIX Investment

—

7

Corporate EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment

$

(112

)

(108

)

Millions of Dollars

Except as Indicated

September 30, 2024

Debt-to-Capital Ratio

Total Debt

$

19,998

Total Equity

29,784

Debt-to-Capital Ratio

40

%

Total Cash

1,637

Net Debt-to-Capital Ratio

38

%

Millions of Dollars

September 30, 2024

Reconciliation of Net Cash Used in Operating Activities to Operating Cash Flow, Excluding Working Capital

Net Cash Used in Operating Activities

$

1,132

Less: Net Working Capital Changes

(381

)

Operating Cash Flow, Excluding Working Capital

$

1,513

Millions of Dollars

Except as Indicated

2024

3Q

2Q

Reconciliation of Refining Income (Loss) Before Income Taxes to Realized Refining Margins

Income (loss) before income taxes

$

(108

)

302

Plus:

Taxes other than income taxes

100

74

Depreciation, amortization and impairments

230

203

Selling, general and administrative expenses

60

51

Operating expenses

922

884

Equity in earnings of affiliates

12

(33

)

Other segment expense, net

(4

)

(1

)

Proportional share of refining gross margins contributed by equity affiliates

193

260

Special items:

None

—

—

Realized refining margins

$

1,405

1,740

Total processed inputs ( thousands of barrels )

145,440

151,296

Adjusted total processed inputs ( thousands of barrels )*

168,951

174,107

Income (loss) before income taxes ( dollars per barrel )**

$

(0.74

)

2.00

Realized refining margins ( dollars per barrel )***

$

8.31

10.01

*Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate.

**Income before income taxes divided by total processed inputs.

***Realized refining margins per barrel, as presented, are calculated using the underlying realized refining margin amounts, in dollars, divided by adjusted total processed inputs, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts.

Source: Phillips 66

MIL OSI Economics –

January 25, 2025
MIL-OSI: Captivision Announces Venture at Dream Hollywood Hotel

Source: GlobeNewswire (MIL-OSI)

MIAMI and SEOUL, Korea, Oct. 29, 2024 (GLOBE NEWSWIRE) — Captivision Inc. (“Captivision” or the “Company”) (Nasdaq: CAPT), a pioneer manufacturer of architectural media glass and innovative LED solution provider, today announced its first collaboration with the Dream Hollywood hotel in Los Angeles. Crescent Hotels & Resorts, a leading hotel management company, manages Dream Hollywood. The property is part of Hyatt’s global portfolio of hotels, under the Dream Hotels brand.

The collaboration catalyzes Captivision’s expansion into digital out-of-home (“OOH”) in a high-profile Los Angeles location with extraordinary partners. Unlike traditional LED signage, Captivision is creating a uniquely transparent and vibrant digital display, generating a new recurring revenue stream for the Company and its partners. This groundbreaking venture is emblematic of Captivision’s broadening business model as a trusted solution provider featuring highly innovative and transformational technology. The Dream Hollywood display is expected to generate in excess of three million social media impressions annually. Playing a pivotal role in the creation and operation of the OOH digital media at the Dream Hollywood, California-based company, Integrated Market Optimization, Inc. and Smart City Labs, have partnered with Captivision to bring their expertise and industry-leading solutions to this high-profile project.

“Joining forces with Dream Hollywood is a pivotal venture for our company in multiple respects,” said Gary Garrabrant, Chairman and CEO of Captivision. “Captivision is quickly becoming a solution provider across the LED product spectrum generating entirely new revenue streams with valued partners and clients. We believe this collaboration will kickstart an exciting new chapter of growth for Captivision in the United States and globally.”

Dream Hollywood (Façade Render)

Captivision’s transparent and non-transparent LED media solutions provide a versatile and dynamic platform showcasing high-resolution content without compromising architectural integrity and user experience. This seminal venture combines cutting-edge physical and streaming technology to generate social media driven advertising revenue, the first of what promises to be many meaningful applications with recognized and valued partners and clients.

About Captivision
Captivision is a pioneering manufacturer of media glass, combining IT building materials with architectural glass. The product has a boundless array of applications including entertainment media, information media, cultural and artistic content as well as marketing use cases. Captivision can transform any glass façade into a transparent media screen with real time live stream capability. Captivision is fast becoming a solution provider across the LED product spectrum.

Captivision’s media glass and solutions have been implemented in hundreds of locations globally across sports stadiums, entertainment venues, casinos and hotels, convention centers, office and retail properties, and airports. Learn more at http://www.captivision.com.

About Crescent Hotels & Resorts
Crescent Hotels & Resorts is an award-winning, nationally recognized, operator of hotels and resorts with over 120 properties in the United States and Canada. Crescent is one of the few elite management companies approved to operate upper-upscale and luxury hotels under the brand families of Marriott, Hilton, and Hyatt. Crescent also works a collection of independent and lifestyle properties under the Latitudes Collection umbrella. These properties include PGA National Resort, The Opus Westchester, Autograph Collection, and NOPSI Hotel New Orleans. Powered by innovative, forward thinking experts, Latitudes is a modern management platform for lifestyle hotels and resorts where creative concepts connect with modern travelers from urban boutique hotels to oceanside resorts.

Crescent’s clients include premiere REITs, private equity firms and major developers. For more information, please visit www.crescenthotels.com and www.latitudesbycrescent.com or connect with Crescent on LinkedIn.

Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements include, without limitation, statements relating to expectations for future financial performance, business strategies, or expectations for the Company’s respective businesses. These statements are based on the beliefs and assumptions of the management of the Company. Although the Company believes that its plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, it cannot assure you that it will achieve or realize these plans, intentions or expectations. These statements constitute projections, forecasts, and forward-looking statements, and are not guarantees of performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this press release, words such as “believe”, “can”, “continue”, “expect”, “forecast”, “may”, “plan”, “project”, “should”, “will” or the negative of such terms, and similar expressions, may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

The risks and uncertainties include, but are not limited to: (1) the ability to raise financing in the future and to comply with restrictive covenants related to indebtedness; (2) the ability to realize the benefits expected from the business combination and the Company’s strategic direction; (3) the significant market adoption, demand and opportunities in the construction and digital out of home media industries for the Company’s products; (4) the ability to maintain the listing of the Company’s ordinary shares and warrants on Nasdaq; (5) the ability of the Company to remain competitive in the fourth generation architectural media glass industry in the face of future technological innovations; (6) the ability of the Company to execute its international expansion strategy; (7) the ability of the Company to protect its intellectual property rights; (8) the profitability of the Company’s larger projects, which are subject to protracted sales cycles; (9) whether the raw materials, components, finished goods, and services used by the Company to manufacture its products will continue to be available and will not be subject to significant price increases; (10) the IT, vertical real estate, and large format wallscape modified regulatory restrictions or building codes; (11) the ability of the Company’s manufacturing facilities to meet their projected manufacturing costs and production capacity; (12) the future financial performance of the Company; (13) the emergence of new technologies and the response of the Company’s customer base to those technologies; (14) the ability of the Company to retain or recruit, or to effect changes required in, its officers, key employees, or directors; (15) the ability of the Company to comply with laws and regulations applicable to its business; and (16) other risks and uncertainties set forth under the section of the Company’s Annual Report on Form 20-F entitled “Risk Factors.”

These forward-looking statements are based on information available as of the date of this press release and the Company’s management team’s current expectations, forecasts, and assumptions, and involve a number of judgments, known and unknown risks and uncertainties and other factors, many of which are outside the control of the Company and its directors, officers, and affiliates. Accordingly, forward-looking statements should not be relied upon as representing the Company management team’s views as of any subsequent date. The Company does not undertake any obligation to update, add or to otherwise correct any forward-looking statements contained herein to reflect events or circumstances after the date they were made, whether as a result of new information, future events, inaccuracies that become apparent after the date hereof or otherwise, except as may be required under applicable securities laws.

Media Contact:
Dukas Linden Public Relations
+1 212.704.7385
captivision@dlpr.com

Investor Contact:
Gateway Group
Ralf Esper
+1 949.574.3860
CAPT@gateway-grp.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/4835d4a9-4083-475d-996e-b09ab5decf06

The MIL Network –

January 25, 2025
MIL-OSI: Bitfarms Nominates Andrew J. Chang for Election to the Board of Directors

Source: GlobeNewswire (MIL-OSI)

This news release constitutes a “designated news release” for the purposes of the Company’s prospectus supplement dated March 8, 2024, to its short form base shelf prospectus dated November 10, 2023.

TORONTO, Ontario and BROSSARD, Québec, Oct. 29, 2024 (GLOBE NEWSWIRE) — Bitfarms Ltd. (NASDAQ/TSX: BITF) (“Bitfarms” or the “Company”), a global leader in vertically integrated Bitcoin data center operations, today announced that it has nominated Andrew J. Chang for election to its Board of Directors (the “Board”) at the Special Meeting of shareholders to be held on November 20, 2024 at 4:00p.m. Eastern Time (the “Special Meeting”).

Bitfarms Special Meeting of Shareholders
Pursuant to the Settlement Agreement between the Company and Riot Platforms, Inc. dated September 23, 2024, at the Special Meeting, shareholders will be asked to approve an expansion of the Board from five members to six members, to elect an independent director nominated by the Board to serve as the sixth member of the Board, to ratify the Company’s shareholder rights plan adopted on July 24, 2024, and to conduct such other business as may properly come before the Special Meeting.

Shareholders and guests can access the virtual meeting using this link. Additional information regarding the Special Meeting, including how to vote, is available via the proxy materials disseminated to shareholders by Bitfarms and as filed on SEDAR+ at http://www.sedarplus.ca and on EDGAR at http://www.sec.gov/EDGAR.

Nomination of Andrew J. Chang to Bitfarms Board of Directors
Bitfarms’ Governance and Nominating Committee conducted a thorough director search process and held interviews with several qualified candidates, and, along with the Board, unanimously supports the nomination of Andrew J. Chang for election at the Special Meeting.

Mr. Chang is a 20-year veteran of the technology industry with experience as an investor, operating executive, entrepreneur, and advisor. He was a founding partner of Liberty City Ventures, a leading venture capital fund. Mr. Chang also served as Chief Operating Officer of Paxos, a blockchain infrastructure platform that has powered solutions for PayPal, Stripe, and more. At Paxos, he helped grow the team from 8 to 190 employees and launched the first regulated blockchain focused trust company and the first regulated stablecoin in the U.S. During that time, Paxos raised $500M in capital and its most recent valuation is $2.4 billion.

Before joining Paxos, Andrew served as a Lead Strategic Partner Development Manager at Google, working in business development for display ad products. Prior to that, he was the Chief Operating Officer of ConditionOne and an associate at TechStars (New York). He also has experience managing innovation in research, analytics and digital media at WPP PLC-owned Kantar Video and at 360i, a digital marketing agency.

Andrew earned his MBA from New York University’s Leonard N. Stern School of Business, where he was President of the student body, and a BS from Boston College.

Brian Howlett, Independent Chairman of the Board, said, “The Bitfarms Board is committed to strong corporate governance and recognizes that a diverse set of skills is required to effectively oversee the execution of the Company’s strategic initiatives. Andrew is an impressive technology industry veteran whose experience and knowledge is highly complementary to that of our current Board. We believe he will be instrumental as we execute our aggressive growth plan, and we look forward to leveraging his expertise to maximize value for Bitfarms shareholders.”

About Bitfarms Ltd.

Founded in 2017, Bitfarms is a global vertically integrated Bitcoin data center company that contributes its computational power to one or more mining pools from which it receives payment in Bitcoin. Bitfarms develops, owns, and operates vertically integrated data centers with in-house management and company-owned electrical engineering, installation service, and multiple onsite technical repair centers. The Company’s proprietary data analytics system delivers best-in-class operational performance and uptime.

Bitfarms currently has 12 operating Bitcoin data centers and two under development situated in four countries: Canada, the United States, Paraguay, and Argentina. Powered predominantly by environmentally friendly hydro-electric and long-term power contracts, Bitfarms is committed to using sustainable and often underutilized energy infrastructure.

To learn more about Bitfarms’ events, developments, and online communities:

www.bitfarms.com
https://www.facebook.com/bitfarms/
https://twitter.com/Bitfarms_io
https://www.instagram.com/bitfarms/
https://www.linkedin.com/company/bitfarms/

Forward-Looking Statements

This news release contains certain “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) that are based on expectations, estimates and projections as at the date of this news release and are covered by safe harbors under Canadian and United States securities laws. The statements and information in this release regarding holding the Special Meeting and the timing thereof, and the matters to be put before the Company’s shareholders at the Special Meeting are forward-looking information.

Any statements that involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “prospects”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information. This forward-looking information is based on assumptions and estimates of management of Bitfarms at the time they were made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of Bitfarms to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, risks relating to: the construction and operation of new facilities may not occur as currently planned, or at all; expansion of existing facilities may not materialize as currently anticipated, or at all; new miners may not perform up to expectations; revenue may not increase as currently anticipated, or at all; the ongoing ability to successfully mine Bitcoin is not assured; failure of the equipment upgrades to be installed and operated as planned; the availability of additional power may not occur as currently planned, or at all; expansion may not materialize as currently anticipated, or at all; and the power purchase agreements and economics thereof may not be as advantageous as expected. For further information concerning these and other risks and uncertainties, refer to Bitfarms’ filings on www.sedarplus.ca (which are also available on the website of the U.S. Securities and Exchange Commission at www.sec.gov), including the MD&A for the year-ended December 31, 2023, filed on March 7, 2024 and the MD&A for the three and six months ended June 30, 2024 filed on August 8, 2024. Although Bitfarms has attempted to identify important factors that could cause actual results to differ materially from those expressed in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended, including factors that are currently unknown to or deemed immaterial by Bitfarms. There can be no assurance that such statements will prove to be accurate as actual results, and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on any forward-looking information. Bitfarms undertakes no obligation to revise or update any forward-looking information other than as required by law. Trading in the securities of the Company should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the Toronto Stock Exchange, Nasdaq, or any other securities exchange or regulatory authority accepts responsibility for the adequacy or accuracy of this release.

Investor Relations Contact:

Bitfarms
Tracy Krumme
SVP, Head of IR & Corp. Comms.
+1 786-671-5638
tkrumme@bitfarms.com

Media Contact:

Québec: Tact
Louis-Martin Leclerc
+1 418-693-2425
lmleclerc@tactconseil.ca

The MIL Network –

January 25, 2025
MIL-OSI: Bitget Wallet Launches Babylon Staking Program with Billion-Point Airdrop

Source: GlobeNewswire (MIL-OSI)

VICTORIA, Seychelles, Oct. 29, 2024 (GLOBE NEWSWIRE) — Bitget Wallet, a leading non-custodial Web3 wallet, has announced the launch of a new Babylon ecosystem staking program available through its Task2Get feature in the Earning Center. This month-long program runs from October 28 to November 28, offering users multiple opportunities to engage with Babylon ecosystem projects while earning significant rewards, including a total of 9 billion points and 100,000 pSTAKE tokens airdrop.

Babylon connects Bitcoin’s Proof-of-Work model with Proof-of-Stake networks, enabling Bitcoin staking in PoS systems to expand its use beyond a store of value. The Babylon ecosystem builds on this, offering DeFi projects and tools that increase Bitcoin’s utility and cross-chain opportunities. The Babylon ecosystem staking initiative on Bitget Wallet’s platform includes tasks tied to prominent blockchain projects like pSTAKE, Corn, Solv, Bedrock, StakeStone, Lorenzo, SatLayer, and PumpBTC. Participants can complete various staking-related interactions within the wallet to be eligible for reward distributions.

By engaging in on-chain staking and exploring Babylon’s ecosystem offerings through Bitget Wallet, users can share in the substantial reward pool provided by Babylon ecosystem projects. Bitget Wallet’s Earning Center is dedicated to bringing users streamlined access to cryptocurrency earning opportunities. Within the Task2Get section, users can conveniently participate in various incentivized activities while deepening their involvement with leading blockchain projects.

Alvin Kan, COO of Bitget Wallet, stated, “Our partnership with Babylon allows us to offer a robust range of staking opportunities, underscoring our commitment to providing a rewarding and engaging experience for users. This initiative makes it easier for our community to explore the Babylon ecosystem and benefit from an impressive reward structure that enhances their overall Web3 journey.”

About Bitget Wallet

Bitget Wallet is the home of Web3, where endless possibilities come together in one wallet. Uniting over 40 million users, this non-custodial wallet brings everything onchain in one place—asset management, quick swaps, rewards, staking, trading tools, live market data, a DApp browser, and an NFT marketplace. With wallet options like mnemonic, MPC, and AA, Bitget Wallet serves everyone from beginners to advanced traders. Supporting 100+ blockchains, 20,000+ DApps and 500,000+ tokens, it connects to hundreds of DEXs and cross-chain bridges for seamless multi-chain trading, and offers a $300 million protection fund to keep your digital assets safe.

Experience Bitget Wallet Lite to start your Web3 journey.

For more information, visit: Website | Twitter | Telegram | Instagram | YouTube | LinkedIn | TikTok | Discord

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/9b9bd1b1-4a0b-4570-8c71-aff9772a24b8

The MIL Network –

January 25, 2025

MIL-OSI: DT Midstream Reports Strong Third Quarter 2024 Results; Raises Adjusted EBITDA Guidance

Source: GlobeNewswire (MIL-OSI)

DETROIT, Oct. 29, 2024 (GLOBE NEWSWIRE) — DT Midstream, Inc. (NYSE: DTM) today announced third quarter 2024 reported net income of $88 million, or $0.90 per diluted share. For the third quarter of 2024, Operating Earnings were also $88 million, or $0.90 per diluted share. Adjusted EBITDA for the quarter was $241 million.

Reconciliations of Operating Earnings and Adjusted EBITDA (non-GAAP measures) to reported net income are included at the end of this news release.

The company also announced that the DT Midstream Board of Directors declared a $0.735 per share dividend on its common stock payable January 15, 2025 to stockholders of record at the close of business December 16, 2024.

“We continue our strong performance in 2024,” said David Slater, President and CEO. “And we have made great progress advancing new opportunities which will support our future growth.”

Slater noted the following significant business updates:

Reached final investment decision on the Phase 4 expansion of the LEAP system, which will expand the system to 2.1 Bcf/d by the first half of 2026
Upsized the future interconnect between our Stonewall System and Mountain Valley Pipeline
Upgraded to investment-grade by Fitch Ratings

“Our year-to-date results are ahead of plan,” said Jeff Jewell, Executive Vice President and CFO. “Our strong performance is leading us to increase our Adjusted EBITDA guidance for 2024 to $950 – $980 million.”

The company has scheduled a conference call to discuss results for 9:00 a.m. ET (8:00 a.m. CT) today. Investors, the news media and the public may listen to a live internet broadcast of the call at this link. The participant toll-free telephone dial-in number in the U.S. and Canada is 888.596.4144, and the toll number is 646.968.2525; the passcode is 4749988. International access numbers are available here. The webcast will be archived on the DT Midstream website at investor.dtmidstream.com.

About DT Midstream

DT Midstream (NYSE: DTM) is an owner, operator and developer of natural gas interstate and intrastate pipelines, storage and gathering systems, compression, treatment and surface facilities. The company transports clean natural gas for utilities, power plants, marketers, large industrial customers and energy producers across the Southern, Northeastern and Midwestern United States and Canada. The Detroit-based company offers a comprehensive, wellhead-to-market array of services, including natural gas transportation, storage and gathering. DT Midstream is transitioning towards net zero greenhouse gas emissions by 2050, including a goal of achieving 30% of its carbon emissions reduction by 2030. For more information, please visit the DT Midstream website at www.dtmidstream.com.

Why DT Midstream Uses Operating Earnings, Adjusted EBITDA and Distributable Cash Flow

Use of Operating Earnings Information – Operating Earnings exclude non-recurring items, certain mark-to-market adjustments and discontinued operations. DT Midstream management believes that Operating Earnings provide a more meaningful representation of the company’s earnings from ongoing operations and uses Operating Earnings as the primary performance measurement for external communications with analysts and investors. Internally, DT Midstream uses Operating Earnings to measure performance against budget and to report to the Board of Directors.

Adjusted EBITDA is defined as GAAP net income attributable to DT Midstream before expenses for interest, taxes, depreciation and amortization, and loss from financing activities, further adjusted to include the proportional share of net income from equity method investees (excluding interest, taxes, depreciation and amortization), and to exclude certain items the company considers non-routine. DT Midstream believes Adjusted EBITDA is useful to the company and external users of DT Midstream’s financial statements in understanding operating results and the ongoing performance of the underlying business because it allows management and investors to have a better understanding of actual operating performance unaffected by the impact of interest, taxes, depreciation, amortization and non-routine charges noted in the table below. We believe the presentation of Adjusted EBITDA is meaningful to investors because it is frequently used by analysts, investors and other interested parties in the midstream industry to evaluate a company’s operating performance without regard to items excluded from the calculation of such measure, which can vary substantially from company to company depending on accounting methods, book value of assets, capital structure and the method by which assets were acquired, among other factors. DT Midstream uses Adjusted EBITDA to assess the company’s performance by reportable segment and as a basis for strategic planning and forecasting.

Distributable Cash Flow (DCF) is calculated by deducting earnings from equity method investees, depreciation and amortization attributable to noncontrolling interests, cash interest expense, maintenance capital investment (as defined below), and cash taxes from, and adding interest expense, income tax expense, depreciation and amortization, certain items we consider non-routine and dividends and distributions from equity method investees to, Net Income Attributable to DT Midstream. Maintenance capital investment is defined as the total capital expenditures used to maintain or preserve assets or fulfill contractual obligations that do not generate incremental earnings. We believe DCF is a meaningful performance measurement because it is useful to us and external users of our financial statements in estimating the ability of our assets to generate cash earnings after servicing our debt, paying cash taxes and making maintenance capital investments, which could be used for discretionary purposes such as common stock dividends, retirement of debt or expansion capital expenditures.

DT Midstream does not forecast net income as it cannot, without unreasonable efforts, estimate or predict with certainty the components of net income. These components, net of tax, may include, but are not limited to, impairments of assets and other charges, divestiture costs, acquisition costs, or changes in accounting principles. All of these components could significantly impact such financial measures. At this time, DT Midstream is not able to estimate the aggregate impact, if any, of these items on future period reported earnings. Accordingly, DT Midstream is not able to provide a corresponding GAAP equivalent for Adjusted EBITDA.

Forward-looking Statements

This release contains statements which, to the extent they are not statements of historical or present fact, constitute “forward-looking statements” under the securities laws. These forward-looking statements are intended to provide management’s current expectations or plans for our future operating and financial performance, business prospects, outcomes of regulatory proceedings, market conditions, and other matters, based on what we believe to be reasonable assumptions and on information currently available to us.

Forward-looking statements can be identified by the use of words such as “believe,” “expect,” “expectations,” “plans,” “strategy,” “prospects,” “estimate,” “project,” “target,” “anticipate,” “will,” “should,” “see,” “guidance,” “outlook,” “confident” and other words of similar meaning. The absence of such words, expressions or statements, however, does not mean that the statements are not forward-looking. In particular, express or implied statements relating to future earnings, cash flow, results of operations, uses of cash, tax rates and other measures of financial performance, future actions, conditions or events, potential future plans, strategies or transactions of DT Midstream, and other statements that are not historical facts, are forward-looking statements.

Forward-looking statements are not guarantees of future results and conditions, but rather are subject to numerous assumptions, risks, and uncertainties that may cause actual future results to be materially different from those contemplated, projected, estimated, or budgeted. Many factors may impact forward-looking statements of DT Midstream including, but not limited to, the following: changes in general economic conditions, including increases in interest rates and associated Federal Reserve policies, a potential economic recession, and the impact of inflation on our business; industry changes, including the impact of consolidations, alternative energy sources, technological advances, infrastructure constraints and changes in competition; global supply chain disruptions; actions taken by third-party operators, processors, transporters and gatherers; changes in expected production from Expand Energy and other third parties in our areas of operation; demand for natural gas gathering, transmission, storage, transportation and water services; the availability and price of natural gas to the consumer compared to the price of alternative and competing fuels; our ability to successfully and timely implement our business plan; our ability to complete organic growth projects on time and on budget; our ability to finance, complete, or successfully integrate acquisitions; the price and availability of debt and equity financing; restrictions in our existing and any future credit facilities and indentures; the effectiveness of our information technology and operational technology systems and practices to detect and defend against evolving cyber attacks on United States critical infrastructure; changing laws regarding cybersecurity and data privacy, and any cybersecurity threat or event; operating hazards, environmental risks, and other risks incidental to gathering, storing and transporting natural gas; geologic and reservoir risks and considerations; natural disasters, adverse weather conditions, casualty losses and other matters beyond our control; the impact of outbreaks of illnesses, epidemics and pandemics, and any related economic effects; the impacts of geopolitical events, including the conflicts in Ukraine and the Middle East; labor relations and markets, including the ability to attract, hire and retain key employee and contract personnel; large customer defaults; changes in tax status, as well as changes in tax rates and regulations; the effects and associated cost of compliance with existing and future laws and governmental regulations, such as the Inflation Reduction Act; changes in environmental laws, regulations or enforcement policies, including laws and regulations relating to climate change and greenhouse gas emissions; ability to develop low carbon business opportunities and deploy greenhouse gas reducing technologies; changes in insurance markets impacting costs and the level and types of coverage available; the timing and extent of changes in commodity prices; the success of our risk management strategies; the suspension, reduction or termination of our customers’ obligations under our commercial agreements; disruptions due to equipment interruption or failure at our facilities, or third-party facilities on which our business is dependent; the effects of future litigation; and the risks described in our Annual Report on Form 10-K for the year ended December 31, 2023 and our reports and registration statements filed from time to time with the SEC.

The above list of factors is not exhaustive. New factors emerge from time to time. We cannot predict what factors may arise or how such factors may cause actual results to vary materially from those stated in forward-looking statements, see the discussion under the section entitled “Risk Factors” in our Annual Report for the year ended December 31, 2023, filed with the SEC on Form 10-K and any other reports filed with the SEC. Given the uncertainties and risk factors that could cause our actual results to differ materially from those contained in any forward-looking statement, you should not put undue reliance on any forward-looking statements.

Any forward-looking statements speak only as of the date on which such statements are made. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements, whether as a result of new information, subsequent events or otherwise.


DT Midstream, Inc. Reconciliation of Reported to Operating Earnings (non-GAAP, unaudited)
		Three Months Ended
		September 30,								June 30,
		2024								2024
		Reported Earnings		Pre-tax Adjustments		Income Taxes⁽¹⁾		Operating Earnings		Reported Earnings		Pre-tax Adjustments		Income Taxes⁽¹⁾		Operating Earnings
		*(millions)*
	Adjustments			$	—	$	—					$	—	$	—
	Net Income Attributable to DT Midstream	$	88	$	—	$	—	$	88	$	96	$	—	$	—	$	96

		Nine Months Ended
		September 30,								September 30,
		2024								2023
		Reported Earnings		Pre-tax Adjustments		Income Taxes⁽¹⁾		Operating Earnings		Reported Earnings		Pre-tax Adjustments		Income Taxes⁽¹⁾		Operating Earnings
		*(millions)*
	Adjustments			$	—	$	—					$	—	$	—
	Net Income Attributable to DT Midstream	$	281	$	—	$	—	$	281	$	263	$	—	$	—	$	263

	(1) Excluding tax related adjustments, the amount of income taxes was calculated based on a combined federal and state income tax rate, considering the applicable jurisdictions of the respective segments and deductibility of specific operating adjustments


DT Midstream, Inc. Reconciliation of Reported to Operating Earnings per diluted share⁽²⁾(non-GAAP, unaudited)

		Three Months Ended
		September 30,								June 30,
		2024								2024
		Reported Earnings		Pre-tax Adjustments		Income Taxes⁽¹⁾		Operating Earnings		Reported Earnings		Pre-tax Adjustments		Income Taxes⁽¹⁾		Operating Earnings
		*(per share)*
	Adjustments			$	—	$	—					$	—	$	—
	Net Income Attributable to DT Midstream	$	0.90	$	—	$	—	$	0.90	$	0.98	$	—	$	—	$	0.98

		Nine Months Ended
		September 30,								September 30,
		2024								2023
		Reported Earnings		Pre-tax Adjustments		Income Taxes⁽¹⁾		Operating Earnings		Reported Earnings		Pre-tax Adjustments		Income Taxes⁽¹⁾		Operating Earnings
		*(per share)*
	Adjustments			$	—	$	—					$	—	$	—
	Net Income Attributable to DT Midstream	$	2.87	$	—	$	—	$	2.87	$	2.70	$	—	$	—	$	2.70

	(1) Excluding tax related adjustments, the amount of income taxes was calculated based on a combined federal and state income tax rate, considering the applicable jurisdictions of the respective segments and deductibility of specific operating adjustments
	(2) Per share amounts are divided by Weighted Average Common Shares Outstanding — Diluted, as noted on the Consolidated Statements of Operations


DT Midstream, Inc. Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA (non-GAAP, unaudited)

		Three Months Ended						Nine Months Ended
		September 30,			June 30,			September 30,			September 30,
			2024			2024			2024			2023
Consolidated		*(millions)*
Net Income Attributable to DT Midstream		$	88		$	96		$	281		$	263
Plus: Interest expense			38			39			117			111
Plus: Income tax expense			30			33			94			102
Plus: Depreciation and amortization			53			53			156			133
Plus: Loss from financing activities			4			—			4			—
Plus: EBITDA from equity method investees⁽¹⁾			70			67			212			212
Less: Interest income			(1	)		—			(2	)		(1	)
Less: Earnings from equity method investees			(40	)		(39	)		(125	)		(132	)
Less: Depreciation and amortization attributable to noncontrolling interests			(1	)		(1	)		(3	)		(3	)
Adjusted EBITDA		$	241		$	248		$	734		$	685

(1) Includes share of our equity method investees’ earnings before interest, taxes, depreciation and amortization, which we refer to as “EBITDA.” A reconciliation of earnings from equity method investees to EBITDA from equity method investees follows:

		Three Months Ended						Nine Months Ended
		September 30,			June 30,			September 30,			September 30,
			2024			2024			2024			2023
		*(millions)*
	Earnings from equity methods investees	$	40		$	39		$	125		$	132
	Plus: Depreciation and amortization attributable to equity method investees		20			21			61			61
	Plus: Interest expense attributable to equity method investees		10			7			26			19
	EBITDA from equity method investees	$	70		$	67		$	212		$	212


DT Midstream, Inc. Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Pipeline Segment (non-GAAP, unaudited)

		Three Months Ended						Nine Months Ended
		September 30,			June 30,			September 30,			September 30,
			2024			2024			2024			2023
Pipeline		*(millions)*
Net Income Attributable to DT Midstream		$	71		$	71		$	216		$	185
Plus: Interest expense			12			12			37			42
Plus: Income tax expense			24			24			72			72
Plus: Depreciation and amortization			18			19			55			50
Plus: Loss from financing activities			2			—			2			—
Plus: EBITDA from equity method investees⁽¹⁾			70			67			212			212
Less: Interest income			—			—			(1	)		(1	)
Less: Earnings from equity method investees			(40	)		(39	)		(125	)		(132	)
Less: Depreciation and amortization attributable to noncontrolling interests			(1	)		(1	)		(3	)		(3	)
Adjusted EBITDA		$	156		$	153		$	465		$	425

(1) Includes share of our equity method investees’ earnings before interest, taxes, depreciation and amortization, which we refer to as “EBITDA.” A reconciliation of earnings from equity method investees to EBITDA from equity method investees follows:

		Three Months Ended						Nine Months Ended
		September 30,			June 30,			September 30,			September 30,
			2024			2024			2024			2023
		*(millions)*
	Earnings from equity methods investees	$	40		$	39		$	125		$	132
	Plus: Depreciation and amortization attributable to equity method investees		20			21			61			61
	Plus: Interest expense attributable to equity method investees		10		$	7			26			19
	EBITDA from equity method investees	$	70		$	67		$	212		$	212


DT Midstream, Inc. Reconciliation of Net Income Attributable to DT Midstream to Adjusted EBITDA Gathering Segment (non-GAAP, unaudited)

		Three Months Ended					Nine Months Ended
		September 30,			June 30,		September 30,			September 30,
			2024			2024		2024			2023
	Gathering	*(millions)*
	Net Income Attributable to DT Midstream	$	17		$	25	$	65		$	78
	Plus: Interest expense		26			27		80			69
	Plus: Income tax expense		6			9		22			30
	Plus: Depreciation and amortization		35			34		101			83
	Plus: Loss from financing activities		2			—		2			—
	Less: Interest income		(1	)		—		(1	)		—
	Adjusted EBITDA	$	85		$	95	$	269		$	260


DT Midstream, Inc. Reconciliation of Net Income Attributable to DT Midstream to Distributable Cash Flow (non-GAAP, unaudited)

		Three Months Ended						Nine Months Ended
		September 30,			June 30,			September 30,			September 30,
			2024			2024			2024			2023
	Consolidated	*(millions)*
	Net Income Attributable to DT Midstream	$	88		$	96		$	281		$	263
	Plus: Interest expense		38			39			117			111
	Plus: Income tax expense		30			33			94			102
	Plus: Depreciation and amortization		53			53			156			133
	Plus: Loss from financing activities		4			—			4			—
	Plus: Adjustments for non-routine items⁽¹⁾		(416	)		—			(416	)		(371	)
	Less: Earnings from equity method investees		(40	)		(39	)		(125	)		(132	)
	Less: Depreciation and amortization attributable to noncontrolling interests		(1	)		(1	)		(3	)		(3	)
	Plus: Dividends and distributions from equity method investees		465			50			590			557
	Less: Cash interest expense		(6	)		(64	)		(80	)		(76	)
	Less: Cash taxes		(4	)		(1	)		(7	)		(21	)
	Less: Maintenance capital investment⁽²⁾		(4	)		(6	)		(17	)		(22	)
	Distributable Cash Flow	$	207		$	160		$	594		$	541

	(1) Distributable Cash Flow calculation excludes certain items we consider non-routine. For the three and nine months ended September 30, 2024, adjustments for non-routine items included the $416 million Millennium financing distribution. For the nine months ended September 30, 2023, adjustments for non-routine items included the $371 million NEXUS financing distribution.
	(2) Maintenance capital investment is defined as the total capital expenditures used to maintain or preserve assets or fulfill contractual obligations that do not generate incremental earnings.

The MIL Network –

January 25, 2025

MIL-OSI United Kingdom: Council seeks local views to improve South Quay Shed

Source: City of Canterbury

Home » Latest News » Council seeks local views to improve South Quay Shed

Residents, businesses and visitors are being asked to have their say on how to improve South Quay Shed in Whitstable Harbour.

An online survey has been launched this week by Canterbury Council to find out why people visit the popular destination and what they think of the current food and retail offer, atmosphere, events and pricing.

It will also ask about improvements to the space and how it can become more attractive to residents and visitors alike.

The results of the short questionnaire will help inform future plans for the Shed which opened in 2022 as a community event, retail and leisure space with affordable rental units supporting local, creative start-up businesses and food outlets.

Since opening, it has become home to a wide selection of local businesses and hit national headlines when the Shed’s HatsHats Coffee launched a pop-up shop run by pupils with profound and multiple learning disabilities from St Nicholas School in Canterbury.

Cllr Chris Cornell, Chair of the Whitstable Harbour Board and Cabinet Member for Economic Development and Inclusion and Coastal Towns Champion, said: “We are committed to making sure the harbour remains a vibrant and thriving home for our communities – and South Quay Shed has a vital role in supporting these ambitions.

“After three successful seasons, we want to know what people think about it. Do they visit it often? If not, why not? And how can we make it better?”

The survey follows a consultation by Whitstable Harbour Board and the council about their strategic plans for the harbour over the next decade.

Feedback from this consultation, which ended in January this year, showed huge support for a commercial working harbour and development plans focused on a reduced carbon footprint and increased accessibility.

Complete the survey online by Friday 29 November 2024.

Published: 29 October 2024

MIL OSI United Kingdom –

January 25, 2025
MIL-OSI United Kingdom: Highway repairs and improvements planned for Western Road

Source: City of Leicester

TRAFFIC restrictions will be in place on a busy residential road in Leicester’s West End from next week, while extensive resurfacing and other improvements are carried out.

Leicester City Council will carry out essential maintenance work on Western Road from Sunday 3 November.

Footpaths will be improved to remove dropped kerbs that cut across the pavement and do not now provide access to a parking or loading area. Work to improve carriageway drainage in Western Road will also be carried out.

Changes will also be made to the crossroads at the junction of Western Road and Briton Street, where adjustments will be made to give priority to vehicles and cycles on Briton Street.

Resurfacing of the main carriageway on Western Road, between its junctions with Braunstone Gate and Briton Street, will be carried out in Spring 2025.

Initial works are expected to be complete by late January, and will be carried out in phases on short sections of the road to help minimise disruption. Parking restrictions and rolling road closures will be required, with well signposted diversions in place. Access to houses, shops and businesses will be maintained. Work will be suspended during the Christmas holiday period with full access reinstated.

Cllr Geoff Whittle, assistant city mayor for environment and transport, said: “The city’s road network needs regular maintenance and repairs to ensure it can cope with modern demands.

“These latest works will see major maintenance and improvements made to a busy residential street and important local route, which will benefit of everyone who uses it.

“For that work to take place, parts of the road will need to be closed temporarily but diversions will be clearly signposted and disruption will be kept to a minimum wherever possible.”

The scheme is expected to cost about £700,000 and will be funded as part of the Connecting Leicester programme which is supported by the Department for Transport’s Transforming Cities Fund.

MIL OSI United Kingdom –

January 25, 2025
MIL-OSI United Kingdom: New funding aims to boost business innovation and deliver positive change for local communities
Source: City of Leeds

New funding is on offer for projects that will help local business innovators make a positive difference to life in Leeds.
Leeds City Council’s Innovation@Leeds programme has up to £175,000 available for distribution in the form of individual grants ranging from £15,000 to £25,000.

The grants are intended to fund knowledge-sharing projects that will – through the provision of advice, guidance, mentoring or training – encourage world-class innovative thinking and activity by the city’s businesses.

This in turn, it is hoped, will enable them to deliver cutting-edge products, processes and services that make Leeds a healthier, greener and more inclusive place to live.

The exact nature of the projects will depend on the proposals submitted by grant applicants, who are being asked to show how their idea can achieve at least one of three main aims. These are:

Boosting the capabilities of innovative businesses already operating in fields such as artificial intelligence or financial, health and legal technology;

Supporting people from diverse backgrounds who want to launch their own innovation-led businesses;

Raising the profile of Leeds as a centre for innovation and showcasing its strengths to outside investors.

To be considered for a grant to set up and run a project, applicants must be a Leeds-registered small business or microbusiness.

They should also be able to demonstrate a proven track record in providing development support for innovation-led businesses.

Councillor Jonathan Pryor, Leeds City Council’s deputy leader and executive member for economy, transport and sustainable development, said:

“We know Leeds is a city bursting with ideas and inspiration, and we are keen to do whatever we can to ensure local residents realise their full potential.

“We’re also committed to helping innovative businesses and aspiring entrepreneurs find solutions and ways of working that will have a positive impact on our communities.

“The new grants will support both of those ambitions – and underline the power of collaboration – by giving innovators access to top-quality knowledge-sharing opportunities.

“I’d encourage as many eligible small businesses and microbusinesses as possible to apply for a grant, and look forward to seeing the results achieved by the successful projects.”

Innovation@Leeds was launched by the council in 2021 to ensure that people from all backgrounds have the means to make the most of their talents in fields such as digital and other emerging technologies.

The programme’s latest grants are being funded through central government’s UK Shared Prosperity Fund, which is administered locally by the West Yorkshire Combined Authority.

The award of the grants will align with a city-wide vision – co-created by the council with key local partners – for stimulating innovation in a way that has a positive social impact.

One crucial aspect of that vision is the further development and transformation of the Leeds Innovation Arc, an area on the west side of the city centre that is home to globally-renowned educational, health and cultural establishments as well as an array of start-ups, scale-ups and major businesses.

For more information about the Innovation@Leeds grants, click here. Applications can be made until November 21, while the projects that secure funding must be delivered by March 28 next year.

ENDS
MIL OSI United Kingdom –
January 25, 2025
MIL-OSI Russia: Yuri Trutnev: The Russian President’s order to implement master plans will be fulfilled

Translation. Region: Russian Federation –

Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

Yuri Trutnev held a meeting on the implementation of long-term plans for the integrated development of cities in the Amur Region

Deputy Prime Minister and Presidential Plenipotentiary Representative in the Far Eastern Federal District Yuri Trutnev held a meeting on the implementation of long-term plans for the integrated development of cities in the Amur Region.

“In accordance with the instructions of the President of the Russian Federation Vladimir Vladimirovich Putin, a large-scale program for the renovation of cities has begun in the Far East and the Arctic. Our task is to make them as comfortable as possible for people to live in. This is a big job with a large amount of necessary funding. I repeat once again: it has been mobilized throughout the Far East and the Arctic. We will constantly keep it under control. Today we will hear how the work is going in the Amur Region,” Yuri Trutnev opened the meeting.

“In the Amur Region, long-term comprehensive plans have been approved for four cities – Blagoveshchensk, Tynda, Svobodny and Belogorsk, a draft master plan has been developed for the closed administrative-territorial entity Tsiolkovsky, and a general plan for the agglomeration of Svobodny and Tsiolkovsky is at an advanced stage of readiness. Key projects are already being implemented in each of them. A regional headquarters has been created. It includes the regional government, heads of municipalities, and representatives of development institutions. The headquarters meets weekly. Work is ongoing in the project management information system under the supervision of the Ministry for the Development of the Russian Far East and the Far East Development Committee,” said Vasily Orlov, Governor of the Amur Region.

A number of master plan objects will be built using funding from a single presidential subsidy provided by the Ministry for the Development of the Russian Far East and special treasury loans.

The Blagoveshchensk master plan includes 54 events for the development of municipal, social, transport and tourism infrastructure. The master plan includes such key events as the construction of the Blagoveshchensk-Heihe cross-border cableway, the modernization of the Blagoveshchensk International Airport (Ignatievo), the construction of the large city center “Tribuna Hall”, the construction of a regional blood transfusion station and a children’s art school, the creation of an international university campus and many others.

In the first year of implementing the long-term plan for comprehensive socio-economic development, several areas became central for the city. Among them are the creation of spaces for comfortable living, self-realization and education of citizens, platforms for Russian-Chinese business cooperation and other projects. In total, 13 events are being implemented this year, six of which will be completed by the end of the year.

One of the tasks included in the Blagoveshchensk master plan was to unite the city with a system of green spaces. Citizens will get a new park – Lomonosovsky. The second space, where work started in 2024, was the Valery Priyomykhov Square. The famous actor, film director and screenwriter was born in the Amur Region. The area adjacent to the site of the installation of the bust of Valery Mikhailovich will be landscaped in a cinema theme. The Katushka cafe, an open-air cinema, and the Montazhnaya coworking area will open in the square. The entire facility will be completed by October 2025. Along with the square, part of 50 Let Oktyabrya Street will be landscaped. It will connect the Priyomykhov Square with another public space – the Babochka Square.

A major renovation of the city park of culture and recreation is planned in Blagoveshchensk. The concept of the park has already been formed, the territory will be divided into two parts. The first is a green zone with places for quiet rest, themed areas and equipment for children of different ages. The second zone will be an area with attractions and catering points. The concept formed the basis of the technical specifications for the design and estimate documentation, which will be developed by the end of 2024.

Within the framework of the master plan, a large project of comprehensive reconstruction of the infrastructure of the Blagoveshchensk International Airport is being implemented. Work on the creation of the city center “Tribuna Hall” has reached the final stage. The complex is conceived as a space with a landscape park and a cultural center with an observation deck. Improvement of courtyard areas is underway.

The master plan for Belogorsk in Amur positions the city as an industrial and logistics center with a developed service economy. At the request of residents, the strategy emphasizes the development of social and transport infrastructure, renovation of microdistricts, modernization of the city center and the coastal area. The construction of a water supply system from water intake wells to the Yuzhny microdistrict and the overhaul of the children’s art school have been completed. The construction of a gas boiler house and a supply gas pipeline, which started in 2022, is in the final stage. Design and estimate documentation is being developed for two important projects – the creation of treatment facilities in the Transportny district of the city and the construction of a central water intake. Work has begun on the construction of a sports and recreation complex with a skating rink in the Yuzhny microdistrict.

The development plan for the BAM capital Tynda includes 34 events. Within the framework of the master plan, 12 events have already been completed, the key ones being the overhaul of the Tynda Central Library, the reconstruction of the BAM History Museum, the renovation of the drama theater, as well as the renovation and illumination of the facades of city buildings, the improvement of 13 courtyard areas and the Bagulnik Park.

According to the master plan, several areas have become priorities for the city: gasification, repair of social facilities, improvement of transport infrastructure and other projects. The city is reconstructing and modernizing heat supply facilities with the replacement of other types of fuel with natural gas. According to the plan, three new gas boiler houses will be built in Tynda; contracts for the preparation of documentation for them have already been concluded. In addition, the central boiler house of the city awaits reconstruction with the transfer to gas. The capital repairs of the city cultural center “Rus” and the public bathhouse are nearing completion. The street and road network is being brought up to standard and 32 new bus stops are being installed.

Within the framework of the master plan of the city of Svobodny, 22 events will be implemented. By 2030, the city will become the center of the gas chemical cluster with a high level of urban environment and services. This year, work has begun on five events, two of which should be completed by the end of the year.

The renovation of Svobodny is connected with the renewal of social infrastructure. In the Yuzhny microdistrict, a school for 528 children is being prepared for construction. The design and estimate documentation for the facility is already ready. In the Mikhailo-Chesnokovsky microdistrict, a building of a physical education and health complex with a universal games hall is being built. The development of design documentation for a children’s art school for 650 children in the Central District has begun. The construction of a new registry office building has been completed; its official opening took place in October. The improvement of the urban environment is underway. In November 2024, the improvement of the city park on Upravlencheskaya Street will be completed. The construction of a new Alekseevsky microdistrict for employees of the Amur Gas Processing Plant continues. In addition to residential buildings, communal and social infrastructure facilities are being built in the microdistrict: a school, a kindergarten, a clinic, a department store, a sports complex, a cultural and leisure center, an apart-hotel, multi-level parking lots, and engineering infrastructure facilities. In September of this year, a school for 900 students opened in the Alekseevsky microdistrict.

An important point in the development of Svobodny is improving the quality of the city’s engineering infrastructure. A large amount of work is being carried out within the framework of this area of the master plan. At the moment, design and estimate documentation is being developed for the reconstruction of treatment facilities in the Dubovsky, Surazhevsky and Zalineyny microdistricts, as well as the reconstruction of the main engineering networks of heat, water supply and sanitation. A large amount of work is associated with the capital repairs of the existing and the construction of a new street and road network and the reconstruction of the road bridge across the Klyuchevaya River along Zagorodnaya Street.

“Work on implementing master plans has begun. Stadiums and libraries are being restored in the Amur Region. A lot of work is being done to provide master plans with funding. It is necessary for the events to be reflected in state programs and national projects. This work is underway. We will do everything to fulfill the President’s instructions so that people receive comfortable living conditions,” Yuri Trutnev summed up the meeting.

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

MIL OSI Russia News –

January 25, 2025
MIL-OSI Security: Shelburne — Shelburne RCMP charge man with attempted murder

Source: Royal Canadian Mounted Police

Shelburne RCMP Detachment has charged a man with attempted murder after a stabbing in Shelburne.

On October 27, at approximately 2:50 a.m., officers responded to a report that a man had been stabbed at a home on Shore Rd. Upon arrival at the residence, they located a man with serious injuries; he was transported to hospital by EHS. The suspect and victim were known to each other, and the suspect had fled the home before police arrived.

Officers, including RCMP Police Dog Services, followed up at another home in Shelburne, where they located and safely arrested one man related to this incident.

Jason Morash, 41, of Shelburne, has been charged with Attempted Murder, Possession of a Weapon for a Dangerous Purpose, and Aggravated Assault. Morash had a first court appearance in Yarmouth Provincial Court on October 28 and was held in custody pending his next court appearance on November 4.

The investigation is ongoing.

MIL Security OSI –

January 25, 2025
MIL-OSI NGOs: Israel/OPT: Law to ban UNRWA is ‘inhumane’ and an ‘outright attack’ on the rights of Palestinian refugees

Source: Amnesty International –

UNRWA has long served as a sole lifeline to Palestinian refugees offering indispensable humanitarian aid, education and shelter

The UN agency also provides desperately needed aid for millions of other Palestinian refugees living in neighbouring Arab countries

‘This appalling, inhumane law will only exacerbate the suffering of Palestinians who have endured unimaginable hardship’ – Agnès Callamard

In response to the news that the Israeli parliament has passed a law to ban the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) from operating inside Israel, Agnès Callamard, Amnesty International’s Secretary General, said:

“This unconscionable law is an outright attack on the rights of Palestinian refugees. It is clearly designed to make it impossible for the agency to operate in the Occupied Palestinian Territory by forcing the closure of the UNRWA headquarters in East Jerusalem and ending visas for its staff. It amounts to the criminalisation of humanitarian aid and will worsen an already catastrophic humanitarian crisis.

“UNRWA has played an indispensable role in offering, food, water, medical aid, education and shelter to the nearly 2 million Palestinians in Gaza who have been forcibly displaced, subjected to an engineered famine, and stand at serious risk of genocide as a result of Israel’s relentless offensive in the last 12 months. This law flies in the face of the International Court of Justice order to Israel to ensure sufficient humanitarian assistance and facilitate basic services.

“UNRWA has been a lifeline for Palestinian refugees in the occupied Gaza Strip and the West Bank and in neighbouring countries throughout the 75 years since its foundation. The plight of the Palestinian people would be even more severe if not for UNRWA’s tireless work over the last three quarters of a century.

“This appalling, inhumane law will only exacerbate the suffering of Palestinians who have endured unimaginable hardship since the horrific attacks by Hamas and other armed groups in southern Israel one year ago, and whose need for global support is greater than ever.

“The international community must be quick to condemn it in the strongest possible terms and exert any influence they have on the Israeli government to repeal it.”

UNWRA

Founded in 1949, UNRWA is a UN agency that supports the relief and human development of Palestinian refugees. It is funded almost entirely by voluntary contributions from UN Member States. UNRWA has defined Palestine refugees as “persons whose regular place of residence was Palestine during the period 1 June 1946 to 15 May 1948, and who lost both home and means of livelihood as a result of the 1948 conflict.”

At a time when Israel, the occupying power, continues to flagrantly violate its obligations vis-à-vis Palestinian refugees in Gaza and the rest of the Occupied Palestinian Territory, UNRWA has long served as a sole lifeline, offering indispensable humanitarian aid, education and shelter. The agency also provides desperately needed aid for millions of other Palestinian refugees living in neighbouring Arab countries.

In January 2024 over a dozen states and the EU announced the suspension of funding to UNRWA following allegations that individual staff members were involved in the 7 October attacks carried out by Hamas and other armed groups in southern Israel. UNRWA immediately dismissed nine employees over the allegations at the time.

Almost all of the countries that had previously suspended funding for UNRWA have since reinstated their financial support, aside from the United States, where funding remains frozen until at least March 2025.

MIL OSI NGO –

January 25, 2025
MIL-OSI Video: Secretary Blinken remarks on the economic benefits of U.S. travel and tourism

Source: United States of America – Department of State (video statements)

Secretary of State Antony J. Blinken delivers remarks with Secretary of Commerce Gina Raimondo on the economic benefits of U.S. travel and tourism at the Department of State, on October 29, 2024.

———-
Under the leadership of the President and Secretary of State, the U.S. Department of State leads America’s foreign policy through diplomacy, advocacy, and assistance by advancing the interests of the American people, their safety and economic prosperity. On behalf of the American people we promote and demonstrate democratic values and advance a free, peaceful, and prosperous world.

The Secretary of State, appointed by the President with the advice and consent of the Senate, is the President’s chief foreign affairs adviser. The Secretary carries out the President’s foreign policies through the State Department, which includes the Foreign Service, Civil Service and U.S. Agency for International Development.

Get updates from the U.S. Department of State at www.state.gov and on social media!
Facebook: https://www.facebook.com/statedept
Twitter: https://twitter.com/StateDept
Instagram: https://www.instagram.com/statedept
Flickr: https://flickr.com/photos/statephotos/

Subscribe to the State Department Blog: https://www.state.gov/blogs
Watch on-demand State Department videos: https://video.state.gov/
Subscribe to The Week at State e-newsletter: http://ow.ly/diiN30ro7Cw

State Department website: https://www.state.gov/
Careers website: https://careers.state.gov/
White House website: https://www.whitehouse.gov/
Terms of Use: https://state.gov/tou

#StateDepartment #DepartmentofState #Diplomacy

https://www.youtube.com/watch?v=gjADb8Gihp0

MIL OSI Video –

January 25, 2025
MIL-OSI Video: Department of State Daily Press Briefing – October 29, 2024 – 1:15 PM

Source: United States of America – Department of State (video statements)

Spokesperson Matthew Miller leads the Department Press Briefing, at the Department of State, onnOctober 29, 2024.

———-
Under the leadership of the President and Secretary of State, the U.S. Department of State leads America’s foreign policy through diplomacy, advocacy, and assistance by advancing the interests of the American people, their safety and economic prosperity. On behalf of the American people we promote and demonstrate democratic values and advance a free, peaceful, and prosperous world.

The Secretary of State, appointed by the President with the advice and consent of the Senate, is the President’s chief foreign affairs adviser. The Secretary carries out the President’s foreign policies through the State Department, which includes the Foreign Service, Civil Service and U.S. Agency for International Development.

Get updates from the U.S. Department of State at www.state.gov and on social media!
Facebook: https://www.facebook.com/statedept
Twitter: https://twitter.com/StateDept
Instagram: https://www.instagram.com/statedept
Flickr: https://flickr.com/photos/statephotos/

Subscribe to the State Department Blog: https://www.state.gov/blogs
Watch on-demand State Department videos: https://video.state.gov/
Subscribe to The Week at State e-newsletter: http://ow.ly/diiN30ro7Cw

State Department website: https://www.state.gov/
Careers website: https://careers.state.gov/
White House website: https://www.whitehouse.gov/
Terms of Use: https://state.gov/tou

#StateDepartment #DepartmentofState #Diplomacy

https://www.youtube.com/watch?v=o0DZRsxwOqM

MIL OSI Video –

January 25, 2025
MIL-OSI Russia: Dmitry Patrushev took part in the keel-laying ceremony of the research expedition vessel Ivan Frolov in St. Petersburg

Translation. Region: Russian Federation –

Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

Deputy Prime Minister Dmitry Patrushev, as part of a working visit to St. Petersburg, together with the city’s governor, Alexander Beglov, took part in the ceremonial laying of the keel of the scientific expedition vessel Ivan Frolov.

Dmitry Patrushev took part in the keel-laying ceremony of the research expedition vessel Ivan Frolov in St. Petersburg

October 29, 2024

Keel-laying ceremony of the research expedition vessel “Ivan Frolov”

October 29, 2024

Keel-laying ceremony of the research expedition vessel “Ivan Frolov” in St. Petersburg

October 29, 2024

Dmitry Patrushev took part in the keel-laying ceremony of the research expedition vessel Ivan Frolov in St. Petersburg

October 29, 2024

Minister of Natural Resources and Environment Alexander Kozlov took part in the keel-laying ceremony of the research expedition vessel Ivan Frolov in St. Petersburg

October 29, 2024

Keel-laying ceremony of the research expedition vessel “Ivan Frolov”

October 29, 2024

Keel-laying ceremony of the research expedition vessel “Ivan Frolov”

October 29, 2024

Keel-laying ceremony of the research expedition vessel “Ivan Frolov”

October 29, 2024

Keel-laying ceremony of the research expedition vessel “Ivan Frolov”

October 29, 2024

Previous news Next news

Dmitry Patrushev took part in the keel-laying ceremony of the research expedition vessel Ivan Frolov in St. Petersburg

According to the Deputy Prime Minister, after commissioning, the vessel should become the flagship of the Roshydromet fleet. It will house a powerful scientific complex that will allow research to be conducted even in the harshest weather conditions. And in general, this multi-purpose project will ensure the uninterrupted operation of Roshydromet polar stations – five year-round and five field bases in Antarctica.

“Studying the Arctic and Antarctic is one of the key areas of activity of the federal service. More than 20 expeditions are already conducted annually. They allow us to track climate change, collect data for the development of navigation along the Northern Sea Route and clarify the boundaries of the country’s continental shelf. The appearance of the new vessel “Ivan Frolov” will certainly strengthen our positions in the polar regions,” said Dmitry Patrushev.

The Deputy Prime Minister noted that a range of advanced knowledge and technologies is being used in construction. This will contribute to the development of Russia’s competencies in high-tech areas.

It is planned that the research and expedition vessel Ivan Frolov will replace the flagship of the polar fleet Akademik Fedorov and will remain in service for at least 30 years. The vessel will be about 165 m long. Up to 20 laboratories and a platform for helicopters will be located on board. The research vessel will allow scientific research to be carried out on modular programs of any complexity by different scientific teams. Dozens of scientific projects will be carried out on board at the same time – from research of the ocean floor to the upper atmosphere and space, depending on the need and priority of research in polar latitudes.

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

MIL OSI Russia News –

January 25, 2025
MIL-OSI USA: Gateway: Centering Science

Source: NASA

Gateway is set to advance science in deep space, bringing groundbreaking research opportunities to lunar orbit.

Stephanie Dudley sits at the intersection of human spaceflight and science for Gateway, humanity’s first lunar space station that will host astronauts and unique scientific investigations.
Gateway’s mission integration and utilization manager, Dudley recently posed for this photo in a high-fidelity mockup of the space station’s HALO (Habitation and Logistics Outpost), where astronauts will live, conduct science, and prepare for missions to investigate the lunar South Pole region. Dudley works with NASA’s partner space agencies and academia to identify science opportunities on Gateway.
HALO will host various science experiments, including the Heliophysics Environmental and Radiation Measurement Experiment Suite, led by NASA, and the Internal Dosimeter Array, led by ESA (European Space Agency) and JAXA (Japan Aerospace Exploration Agency). The heliophysics experiment will fly on HALO’s exterior, and the dosimeter will be housed inside Gateway in a series of racks, mockups of which are shown to the right of Dudley in the image above. Both experiments will study solar and cosmic radiation to help the science community better understand how to protect astronauts and hardware during deep space travels to places like Mars.
“We are building [Gateway] for a 15-year lifespan, but definitely hope that we go longer than that,” Dudley recently said on Houston We Have a Podcast. “And so that many years of scientific study in a place where humans have never worked and lived long-term, Gateway is going to allow us to do that.”
Dudley pulls double duty as a deputy director for the Exploration Operations Office within NASA’s Moon to Mars Program, a role that connects her to Artemis science beyond Gateway, including science investigations on the Orion and Human Landing System spacecraft and lunar terrain vehicle.
“My work…is helping to make sure that across all of the six [Artemis] programs, including Gateway, we’re all focusing on utilization in the same way,” Dudley said.
Dudley’s team coordinates science payloads for Artemis II, the first mission to send humans to the Moon since 1972, and Artemis III, the first landing in the lunar South Pole region that is of keen interest to the global science community.
Gateway’s HALO will launch with the space station’s Power and Propulsion Element ahead of the Artemis IV mission in 2028, the first lunar mission to include an orbiting space station.
“Gateway sounds so science fiction, but it’s real,” Dudley recently said. “And we’re building it. And in a few years, it’s going to be around the Moon and that’s when the real work, the fun work in my opinion, is going to begin and science will never be the same.”
Gateway is humanity’s first lunar space station as a central component of the Artemis campaign that will return humans to the Moon for scientific discovery and chart a path for the first human missions to Mars.

MIL OSI USA News –

January 25, 2025
MIL-OSI Security: Darnell Bishop Sentenced To 15 Years For Role In Benton Harbor Dunham’s Store Handgun Theft

Source: Office of United States Attorneys

  GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Darnell Bishop, 32, of Benton Harbor, was sentenced to 15 years in federal prison for kidnapping and brandishing a firearm during and in relation to a crime of violence.

“Mr. Bishop’s criminal scheme, had it succeeded, would have flooded the streets of southwest Michigan with illegal guns,” said U.S. Attorney Mark Totten. “The proliferation of illegal guns is one cause behind the gun violence epidemic we are experiencing in Benton Harbor, across the state, and across the nation. I am grateful to our local, state, and federal law enforcement partners for their swift and smart response that prevented the worst from happening. Moving forward, we will continue to focus our efforts on those few individuals who are driving gun violence in their communities.”

Bishop was charged along with his brother and codefendant, Dontrell Nance, for the theft of 123 handguns from Benton Harbor Dunham’s Sports Store. Bishop and Nance kidnapped the Dunham’s manager from outside the manager’s home using a pistol, blindfolded and handcuffed him, took him to a second location, and threatened the manager into providing the alarm code for Dunham’s. Bishop then went to the store and stole 123 pistols, which he carried away in two large coolers. Law enforcement has since recovered all the firearms.

Nance previously pled guilty to kidnapping and brandishing a firearm during and in relation to a crime of violence. He was sentenced to 15 years in federal prison.

“Today’s sentence is an example of our commitment to our industry partners and their employees, that their safety and security is one of ATF’s top priorities,” said Detroit Field Division Special Agent in Charge James Deir. “Mr. Bishop and his cohorts need to be held accountable for their actions and represent the most deserving of Federal prosecution. They are criminals who put personal greed before the safety of Dunham’s employees and their families. Now, they will have plenty of time in prison to reflect on their wrongdoing.”

  “Mr. Bishop’s sentencing brings closure to a community left rattled by a violent attack against Dunham’s Sports and its manager in a plot to traffic over 100 illegal guns into our streets,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “I am thankful for the cooperation of our law enforcement partners, especially the Benton Harbor Safe Streets Task Force, whose prompt response thwarted this plot and averted potentially devastating consequences.”

This case was investigated by the Benton Charter Township Police Department, Benton Harbor Department of Public Safety, Berrien County Sheriff’s Department, Michigan State Police, ATF, and FBI.

###

The previous press releases, complaint, and press conference can be viewed at the following links here, here, here, here, and here.

MIL Security OSI –

January 25, 2025
MIL-OSI: Locus Unveils Refrigerant Management Software Aligned with the EPA’s Final Rule on Hydrofluorocarbon Phasedown

Source: GlobeNewswire (MIL-OSI)

MOUNTAIN VIEW, Calif., Oct. 29, 2024 (GLOBE NEWSWIRE) — Locus Technologies the sustainability and Environmental Health and Safety (EHS) compliance software leader, today announced the release of Locus Refrigerant Management software, the cloud-based, mobile-friendly product that generates exceedance alerts, facilitates leak detection, and automates response protocols in addition to providing comprehensive tracking of fluorinated greenhouse gases (F-gases), chlorofluorocarbons (CFCs), hydrochlorofluorocarbons (HCFCs), and substitutes like hydrofluorocarbons (HFCs). The software empowers companies to manage complex refrigerant phasedowns with accuracy and confidence, ultimately avoiding excessive emissions. The software also positions Locus clients to comply with tougher US federal regulations taking effect 14 months from now and to easily adapt as US and EU rules evolve in the future.

On September 20, 2024, EPA Administrator, Michael S. Regan, signed the final rule Phasedown of Hydrofluorocarbons: Management of Certain Hydrofluorocarbons and Substitutes under of the American Innovation and Manufacturing (AIM) Act which indicates tougher requirements will be phased in starting January 1, 2026. Refrigerants are the most potent of greenhouse gases, with some varieties having a global warming potential hundreds and even thousands of times greater than CO₂. Even small leaks pack a big punch on the environment, which is why stricter regulations are emerging.

“These next 12 months will be critical for companies to articulate their refrigerant management plans, train their technicians, and adopt technology that will help them avoid costly errors and get this right,” said Mark Harbin, veteran refrigerant compliance expert and Locus product designer. “Locus is pleased to bring to market refrigerant management software as well as refrigerant management training and certification to help each client manage the phase down and transition successfully.”

Immediate regulatory priorities include detecting leaks and resolving them within mandated timeframes; comprehensive record keeping of equipment, inspections, refrigerant inventories, and rates of use; and meticulously disposing and reclaiming used refrigerants. Locus Refrigerant Management software simplifies these challenges. Locus manages everything from service records to cylinder barcodes and automatically alerts users when any dates or datapoints are out of compliance. Immediate notifications and dynamic dashboards deliver real-time insights, and the software’s fully configurable components flex to future demands.

“Refrigeration and air conditioning cause up to 10 percent of global carbon emissions, and the leaks alone produce more carbon than all the air travel worldwide, which is why waiting on periodic reports pulled from static refrigerant databases just won’t cut it,” said Wes Hawthorne, President of Locus Technologies. “Locus software enables clients to act quickly; the software immediately alerts users of potential problems with their equipment so that issues can be resolved before becoming disastrous.”

Locus Refrigerant Management is one of several integrated applications available in Locus software. Other Locus offerings include EHS risk and compliance, sustainable construction, waste management, water quality, incident management, ESG reporting, and robust environmental data management software. This collection of specialized and unified SaaS applications enables clients to manage every facet of refrigerant management and environmental data in one place. To learn more about Locus Refrigerant Management or the full suite of applications, please visit www.locustec.com.

About Locus Technologies
Locus Technologies, the global environmental, social, governance (ESG), sustainability, and EHS compliance software leader, empowers companies of every size and industry to be credible with ESG reporting. From 1997, Locus pioneered enterprise software-as-a-service (SaaS) for EHS compliance, water management, and ESG credible reporting. Locus apps and software solutions improve business performance by strengthening risk management and EHS for organizations across industries and government agencies. Organizations ranging from medium-sized businesses to Fortune 500 enterprises, such as Sempra, Corteva, Chevron, DuPont, Chemours, San Jose Water Company, The Port Authority of New York and New Jersey, Port of Seattle, and Los Alamos National Laboratory, have selected Locus. Locus is headquartered in Mountain View, California. For further information regarding Locus and its commitment to excellence in SaaS solutions, please visit www.locustec.com or email info@locustec.com.

The MIL Network –

January 25, 2025
MIL-OSI: Paycor Launches Integration Platform to Transform Connectivity
Source: GlobeNewswire (MIL-OSI)

CINCINNATI, Oct. 29, 2024 (GLOBE NEWSWIRE) — Paycor HCM, Inc. (Nasdaq: PYCR) (“Paycor”), a leading provider of human capital management (HCM) software, today announced the launch of its Integration Platform, offering flexible solutions to make connecting data and systems easier, especially for organizations who don’t have in-house IT or developer support. The platform enables customers to integrate their third-party HR software and business applications more efficiently, as well as drive better data accuracy and real-time availability.

The Paycor Integration Platform comes at a critical time, as Finch reports half of HR professionals leverage seven or more employment systems and most of these applications are not integrated, leading to time-consuming manual workarounds, errors, and inefficiencies. Paycor’s Integration Platform offers three flexible ways to enhance connectivity:
1. Paycor Marketplace: Provides access to over 320 pre-built connectors to industry-leading HCM vendor partners, including vertical-specific market needs.
2. Developer Services: Offers expert teams to scope, design, build and support custom integrations for clients, many of which are built in 10 days or less.
3. Developer Tools: Supplies resources that make it easier for customers to build a range of integrations, data feeds and reports. Our robust Developer Portal includes 140+ APIs, customizable templates and pre-built connectors to Paycor’s reporting and data sharing tools.
“Our Integration Platform represents an industry step change, enabling customers to seamlessly connect their preferred business solutions to our HCM platform,” said Ryan Bergstrom, Chief Product & Technology Officer at Paycor. “By offering industry-specific, highly customized solutions, we’re not just connecting systems, we’re fueling scalable operational efficiency by empowering leaders to meaningfully connect with their people, data and expertise. With this platform, we’re giving mid-market companies the ability to connect systems at a level and scope historically reserved for larger enterprises.”

To learn more about how Paycor is transforming connectivity, visit Paycor Integration Platform.

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

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

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

The MIL Network –
January 25, 2025

MIL-OSI: CALIFORNIA BANCORP REPORTS FINANCIAL RESULTS FOR THE THIRD QUARTER OF 2024

Source: GlobeNewswire (MIL-OSI)

San Diego, Calif., Oct. 29, 2024 (GLOBE NEWSWIRE) — California BanCorp (“us,” “we,” “our,” or the “Company”) (NASDAQ: BCAL), the holding company for California Bank of Commerce, N.A. (the “Bank”) announces its consolidated financial results for the third quarter of 2024.

The Company reported net loss of $16.5 million for the third quarter of 2024, or $0.59 diluted loss per share, compared to net income of $190 thousand, or $0.01 per diluted share in the second quarter of 2024, and $6.6 million, or $0.35 per diluted share in the third quarter of 2023.

“As we previously reported, the merger of Southern California Bancorp and California BanCorp closed on July 31, 2024, and I am pleased to announce we executed a successful core conversion on September 20, 2024,” said David Rainer, Executive Chairman of the Company and the Bank. “We are excited to have created a commercial banking franchise with a footprint that covers the best banking markets in both Northern and Southern California and that is based on our trusted brands and reputations. Our scalable business model is expected to bring cost savings and greater efficiency to our operations, while allowing us to offer complementary products and services to all our clients. We will continue to build on our history of service to our communities and remain dedicated to increasing shareholder value.”

“With the close of the merger and successful conversion behind us, we are now focused on the prudent growth of our franchise by offering the highest quality and level of customer service available to middle-market businesses in both Northern and Southern California,” said Steven Shelton, CEO of the Company and the Bank. “We are excited about our future and look forward to the traction we expect our combined banking franchise will realize in the coming quarters.”

Third Quarter 2024 Highlights

	●	Merger closed on July 31, 2024, whereby California BanCorp (“CALB”) merged with and into Southern California Bancorp and California Bank of Commerce merged with and into Bank of Southern California, N.A. CALB had total loans of $1.43 billion, total assets of $1.91 billion, and total deposits of $1.64 billion. The combined holding company has assumed the California BanCorp name, and the combined bank has assumed the California Bank of Commerce, N.A. name. The merger created a bank holding company with approximately $4.25 billion in assets and 14 branches across California, with approximately 300 employees serving our communities.
	●	Total aggregate consideration paid was approximately $216.6 million and resulted in approximately $74.7 million of preliminary goodwill subject to adjustment in accordance with ASC 805.
	●	Net loss of $16.5 million or $0.59 diluted loss per share for the third quarter reflects the after-tax one-time initial provision for credit losses (“day one provision”) related to non-purchased credit deteriorated (“non-PCD”) loans and unfunded loan commitments of $15.0 million and merger related expenses of $10.6 million; adjusted net income (non-GAAP¹) was $9.1 million or $0.33 per share for the third quarter.
	●	Net interest margin of 4.43%, compared with 3.94% in the prior quarter; average total loan yield of 6.79% compared with 6.21% in the prior quarter.
	●	Provision for credit losses of $23.0 million for the third quarter, of which $21.3 million was due to the day one provision for credit losses on non-PCD loans and unfunded loan commitments.

¹ Reconciliations of non–U.S. generally accepted accounting principles (“GAAP”) measures are set forth at the end of this press release.

	●	Return on average assets of (1.82)%, compared with 0.03% in the prior quarter.
	●	Return on average common equity of (15.28)%, compared with 0.26% in the prior quarter.
	●	Efficiency ratio (non-GAAP¹) of 98.9% compared with 85.7% in the prior quarter; excluding merger related expenses the efficiency ratio was 60.5%, compared with 83.5% in the prior quarter.
	●	Tangible book value per common share (“TBV”) (non-GAAP¹) of $11.28 at September 30, 2024, down $2.43 from $13.71 at June 30, 2024.
	●	Total assets of $4.36 billion at September 30, 2024, compared with $2.29 billion at June 30, 2024.
	●	Total loans, including loans held for sale of $3.23 billion at September 30, 2024, compared with $1.88 billion at June 30, 2024, largely due to the merger, with the fair value of the acquired loans totaling $1.36 billion.
	●	Nonperforming assets to total assets ratio of 0.68% at September 30, 2024, compared with 0.20% at June 30, 2024, which included the fair value of $13.9 million in nonaccrual PCD loans in connection with the merger.
	●	Allowance for credit losses (“ACL”) was 1.80% of total loans held for investment at September 30, 2024; allowance for loan losses (“ALL”) was 1.67% of total loans held for investment at September 30, 2024.
	●	Total deposits of $3.74 billion at September 30, 2024, increased $1.81 billion or 93.2% compared with $1.94 billion at June 30, 2024, largely due to the $1.64 billion of deposits acquired in the merger.
	●	Noninterest-bearing demand deposits of $1.37 billion at September 30, 2024, an increase of $701.7 million or 105.3%, of which $635.5 million was related to the merger; noninterest bearing deposits represented 36.6% of total deposits, compared with $666.6 million, or 34.4% of total deposits at June 30, 2024.
	●	Cost of deposits was 2.09%, compared with 2.12% in the prior quarter.
	●	Cost of funds was 2.19%, compared with 2.21% in the prior quarter.
	●	The Company’s capital exceeds minimums required to be “well-capitalized,” the highest regulatory capital category.

Third Quarter Operating Results

Net Loss

Net loss for the third quarter of 2024 was $16.5 million, or $0.59 loss per diluted share, compared with net income of $190 thousand, or $0.01 per diluted share in the second quarter of 2024. Our third quarter results were negatively impacted by a day one $15.0 million after-tax CECL-related provision for credit losses on non-PCD loans and unfunded loan commitments related to the merger, or $0.54 loss per diluted share, and $10.6 million of after-tax merger expenses, or $0.38 loss per diluted share. Excluding one-time CECL-related provision for credit losses on acquired loans and unfunded loan commitments, and merger related expenses, the Company would have reported net income (non-GAAP¹) of $9.1 million, or $0.33 per diluted share, for the third quarter of 2024. Pre-tax, pre-provision income (non-GAAP¹) for the third quarter was $436 thousand, a decrease of $2.7 million or 86.3% from the prior quarter.

Net Interest Income and Net Interest Margin

Net interest income for the third quarter of 2024 was $36.9 million, compared with $21.0 million in the prior quarter. The increase in net interest income was primarily due to a $22.3 million increase in total interest and dividend income, partially offset by a $6.3 million increase in total interest expense in the third quarter of 2024, as compared to the prior quarter. During the third quarter of 2024, loan interest income increased $18.5 million, of which $4.1 million was related to accretion income from the net purchase accounting discounts on acquired loans, total debt securities income increased $458 thousand, and interest and dividend income from other financial institutions increased $3.3 million. The increase in interest income was primarily driven by the mix of interest-earning assets added by the merger and the impact of the accretion and amortization of fair value marks. Average total interest-earning assets increased $1.17 billion, the result of a $900.7 million increase in average total loans, a $114.2 million increase in average deposits in other financial institutions, a $25.1 million increase in average total debt securities, a $124.1 million increase in average Fed funds sold/resale agreements and a $7.5 million increase in average restricted stock investments and other bank stock. The increase in interest expense for the third quarter of 2024 was primarily due to a $6.0 million increase in interest expense on interest-bearing deposits, the result of a $763.7 million increase in average interest-bearing deposits, coupled with a $34.3 million increase in average subordinated debt, partially offset by a 6 basis point decrease in average interest-bearing deposit costs, and a $378 thousand decrease in interest expense on Federal Home Loan Bank (“FHLB”) borrowings, the result of a $26.8 million decrease in average FHLB borrowings in the third quarter of 2024.

Net interest margin for the third quarter of 2024 was 4.43%, compared with 3.94% in the prior quarter. The increase was primarily related to a 52 basis point increase in the total interest-earning assets yield, coupled with a 2 basis point decrease in the cost of funds. The yield on total average earning assets in the third quarter of 2024 was 6.49%, compared with 5.97% in the prior quarter. The yield on average total loans in the third quarter of 2024 was 6.79%, an increase of 58 basis points from 6.21% in the prior quarter. Accretion income from the net purchase accounting discounts on acquired loans was $4.1 million and the amortization expense impact on interest expense was $283 thousand, which increased the net interest margin by 46 basis points in the third quarter of 2024. Accretion income from the net purchase accounting discounts on acquired loans was $4.1 million, which increased the yield on average total loans by 59 basis points in the third quarter of 2024.

Cost of funds for the third quarter of 2024 was 2.19%, a decrease of 2 basis points from 2.21% in the prior quarter. The decrease was primarily driven by a 6 basis point decrease in the cost of average interest-bearing deposits, and an increase in average noninterest-bearing deposits, partially offset by an increase of 187 basis points in the cost of total borrowings, which was driven primarily by the amortization expense of $373 thousand, or 281 basis points from the purchase accounting discounts on acquired subordinated debts. Average noninterest-bearing demand deposits increased $373.8 million to $1.03 billion and represented 33.6% of total average deposits for the third quarter of 2024, compared with $658.0 million and 34.1%, respectively, in the prior quarter; average interest-bearing deposits increased $763.7 million to $2.04 billion during the third quarter of 2024. The total cost of deposits in the third quarter of 2024 was 2.09%, a decrease of 3 basis points from 2.12% in the prior quarter. The cost of total interest-bearing deposits decreased primarily due to the Company’s deposit repricing strategy and paying off high cost brokered deposits in the third quarter of 2024.

Average total borrowings increased $7.6 million to $52.9 million for the third quarter of 2024, primarily due to an increase of $34.3 million in average subordinated debt from the $50.8 million in fair value of subordinated debt acquired in the merger, partially offset by a decrease of $26.8 million in average FHLB borrowings during the third quarter of 2024. The average cost of total borrowings was 7.71% for the third quarter of 2024, up from 5.84% in the prior quarter.

Provision for Credit Losses

The Company recorded a provision for credit losses of $23.0 million in the third quarter of 2024, compared to $2.9 million in the prior quarter. The increase was largely related to the merger, and the resulting one-time initial provision for credit losses on acquired non-PCD loans of $18.5 million and unfunded commitments of $2.7 million. Total net charge-offs were $1.2 million in the third quarter of 2024, which included $967 thousand from a construction loan and $135 thousand from an acquired consumer solar loan portfolio. The provision for credit losses in the third quarter of 2024 included a $3.3 million provision for unfunded loan commitments, of which $2.7 million was related to the one-time initial provision for credit losses on acquired unfunded loan commitments, and $511 thousand related to the increase in unfunded loan commitments during the third quarter of 2024, coupled with higher loss rates and average funding rates used to estimate the allowance for credit losses on unfunded commitments. Total unfunded loan commitments increased $662.4 million to $1.03 billion at September 30, 2024, including $574.3 million in unfunded loan commitment related to the merger, compared to $371.5 million in unfunded loan commitments at June 30, 2024. The provision for credit losses for loans held for investment in the third quarter of 2024 was $19.7 million, an increase of $16.7 million from $3.0 million in the prior quarter. The increase was driven primarily by the one-time initial provision for credit losses on acquired non-PCD loans and increases in legacy special mention loans and loans held for investment. Additionally, qualitative factors, coupled with changes in the portfolio mix and in net charge-offs, and in the reasonable and supportable forecast, primarily related to the economic outlook for California which were partially offset by decreases in legacy substandard accruing loans, were factors related to the increase in the provision for credit losses. The Company’s management continues to monitor macroeconomic variables related to increasing interest rates, inflation and the concerns of an economic downturn, and believes it has appropriately provisioned for the current environment.

Noninterest Income

The Company recorded noninterest income of $1.2 million in the third quarter of 2024, a decrease of $5 thousand compared to $1.2 million in the second quarter of 2024. There was no gain on SBA 7A loan sales in the second and third quarters of 2024. Noninterest income was impacted by the merger through increases in service charges and fees on deposit accounts, bank owned life insurance income, and servicing and related income on loans; offset by a $614 thousand valuation allowance on other real estate owned (“OREO”) due to a decline in the fair value of the underlying property in the third quarter of 2024.

Noninterest Expense

Total noninterest expense for the third quarter of 2024 was $37.7 million, an increase of $18.7 million from total noninterest expense of $19.0 million in the prior quarter, which was largely due to the increase in merger related expenses.

Salaries and employee benefits increased $6.6 million during the quarter to $15.4 million. The increase in salaries and employee benefits was primarily the result of the merger and included $1.4 million related to one-time costs associated with non-continuing directors, executives and employees. Merger and related expenses in connection with the merger increased $14.1 million to $14.6 million. These costs primarily included retention bonus, severance and change in control costs of $6.2 million, financial advisory fees of $2.3 million, information technology expenses of $4.5 million, insurance costs of $919 thousand and legal and other professional costs of $305 thousand. The increase in core deposit intangible amortization was primarily driven by $622 thousand related to the additional amortization from the core deposit intangible of $22.7 million acquired in the merger.

The Company sold other real estate owned and recognized a $4.8 million loss in the second quarter of 2024. There was no comparable transaction in the third quarter of 2024.

Efficiency ratio (non-GAAP¹) for the third quarter of 2024 was 98.9%, compared to 85.7% in the prior quarter. Excluding the merger and related expenses of $14.6 million, the efficiency ratio (non-GAAP¹) for the third quarter of 2024 would have been 60.5%.

Income Tax

In the third quarter of 2024, the Company’s income tax benefit was $6.1 million, compared with an $88 thousand income tax expense in the second quarter of 2024. The effective rate was 26.9% for the third quarter of 2024 and 31.7% for the second quarter of 2024. The decrease in the effective tax rate for the third quarter of 2024 was primarily attributable to the impact of the vesting and exercise of equity awards combined with changes in the Company’s stock price over time, as well as non-deductible merger-related expenses.

Balance Sheet

Assets

Total assets at September 30, 2024 were $4.36 billion, an increase of $2.07 billion or 90.2% from June 30, 2024. The increase in total assets from the prior quarter was primarily related to the $1.86 billion in fair value of total assets acquired in the merger, which included increases of $1.36 billion in loans held for investment, $42.6 million in debt securities, and $336.3 million in cash and cash equivalents. In addition, the Company recorded preliminary goodwill of $74.7 million related to the merger in the third quarter of 2024.

Loans

Total loans held for investment were $3.20 billion at September 30, 2024, an increase of $1.32 billion, compared to June 30, 2024, primarily the result of the $1.36 billion fair value of loans acquired in the merger. During the third quarter 2024, there were new originations of $70.0 million and net advances of $8.9 million, offset by payoffs of $64.9 million, and the transfer of a multifamily nonaccrual loan of $4.7 million to OREO and the partial charge-off of loans in the amount of $1.2 million. Total loans secured by real estate increased by $814.5 million, including $780.9 million acquired in the merger, construction and land development loans increased by $42.9 million, commercial real estate and other loans increased by $712.2 million, 1-4 family residential loans decreased by $4.8 million and multifamily loans increased by $64.2 million. Commercial and industrial loans increased by $482.3 million, and consumer loans increased by $25.3 million, largely due to a $25.2 million increase in consumer loans related to the merger. The Company had $33.7 million in loans held for sale at September 30, 2024, compared to $7.0 million at June 30, 2024.

Deposits

Total deposits at September 30, 2024 were $3.74 billion, an increase of $1.81 billion from June 30, 2024 due to the $1.64 billion in fair value of deposits related to the merger. Noninterest-bearing demand deposits at September 30, 2024, were $1.37 billion, including $635.5 million noninterest-bearing demand deposits related to the merger, or 36.6% of total deposits, compared with $666.6 million, or 34.4% of total deposits at June 30, 2024. At September 30, 2024, total interest-bearing deposits were $2.37 billion, compared to $1.27 billion at June 30, 2024. At September 30, 2024, total brokered time deposits were $222.6 million, including a $251.4 million increase of brokered time deposits related to the merger, compared to $103.4 million in brokered time deposits at June 30, 2024. The Company used excess cash acquired from the merger to pay off high cost callable and noncallable brokered time deposits totaling $131.9 million during the third quarter 2024. The Company also offers the Insured Cash Sweep (ICS) product, providing customers with FDIC insurance coverage at ICS network institutions. At September 30, 2024, ICS deposits were $699.6 million, or 18.7% of total deposits, compared to $239.8 million, or 12.4% of total deposits at June 30, 2024. Legacy CALB was also a participant in the Certificate of Deposit Account Registry Service (CDARS), and Reich & Tang Deposit Solutions (R&T) network, both of which provide reciprocal deposit placement services to fully qualified large customer deposits for FDIC insurance among other participating banks. At July 31, 2024, the Company acquired the fair value of $37.7 million in CDARS deposits and $306.6 million in R&T deposits.

Federal Home Loan Bank (“FHLB”) and Liquidity

The Company repaid all FHLB borrowings with liquidity primarily derived from the cash acquired in the merger during the third quarter of 2024. At September 30, 2024, the Company had no overnight FHLB borrowings, a $25.0 million decrease from June 30, 2024. There were no outstanding Federal Reserve Discount Window borrowings at September 30, 2024 or June 30, 2024.

At September 30, 2024, the Company had available borrowing capacity from the FHLB secured line of credit of approximately $663.6 million and available borrowing capacity from the Federal Reserve Discount Window of approximately $446.4 million. The Company also had available borrowing capacity from eight unsecured credit lines from correspondent banks of approximately $121.0 million at September 30, 2024, with no outstanding borrowings. Total available borrowing capacity was $1.23 billion at September 30, 2024. Additionally, the Company had unpledged liquid securities at fair value of approximately $159.3 million and cash and cash equivalents of $614.4 million at September 30, 2024.

In connection with the merger, the Company assumed subordinated borrowings of $55.0 million, with a fair value of $50.8 million. The subordinated borrowings include $20.0 million with a maturity date in September 2030 and $35.0 million with a maturity date in September 2031.

Asset Quality

Total non-performing assets increased to $29.8 million, or 0.68% of total assets at September 30, 2024, compared with $4.7 million, or 0.20% of total assets at June 30, 2024.

The increase in non-performing assets in the third quarter of 2024 was primarily attributable to downgrades of a construction loan and 1-4 family residential loan from one relationship totaling $12.7 million and a $13.9 million of nonaccrual PCD loans acquired in the merger. This increase was net of total charge-offs of $1.2 million, which included a partial charge-off of $967 thousand for a substandard nonaccrual construction loan collateralized by a stalled construction project in Los Angeles, California. Based on the Company’s internal analysis, which included a review of an updated appraisal, the estimated net collateral value was $9.7 million, which was $967 thousand lower than the subject loan’s net carrying value resulting in a partial charge-off in the third quarter of 2024. The Company expects to pursue the resolution of this matter. Non-performing assets in the third quarter of 2024 included OREO, net of valuation allowance, of $4.1 million related to a multifamily nonaccrual loan of $4.7 million that was transferred to OREO and the Company recorded a $614 thousand valuation allowance on OREO due to a decline in the fair value of the underlying property in the third quarter of 2024.

Total non-performing loans increased to $25.7 million, or 0.80% of total loans held for investment at September 30, 2024, compared with $4.7 million, or 0.25% of total loans at June 30, 2024. The increase from June 30, 2024 was due primarily to the aforementioned downgrades of a construction loan and 1-4 family residential loan from one relationship, nonaccrual PCD loans acquired in the merger and partial charge-offs of loans in the amount of $1.2 million in the third quarter of 2024.

Special mention loans increased by $65.6 million, including $41.0 million non-PCD loans and $10.1 million PCD loans, during the third quarter of 2024 to $93.4 million at September 30, 2024. The $14.5 million increase in the legacy special mention loans was due mostly to a $2.2 million increase in special mention commercial real estate loans and a $12.3 million increase in special mention commercial and industrial loans. Substandard loans increased by $81.2 million, including $2.3 million non-PCD loans, $71.3 million PCD loans, and $13.5 million nonaccrual PCD loans, during the third quarter of 2024 to $104.3 million at September 30, 2024. The $5.8 million decrease in the legacy substandard loans was due primarily to the transfer of a multifamily nonaccrual loan of $4.7 million to OREO and the partial charge-off of $967 thousand for the nonaccrual construction loan, partially offset by a downgrade to substandard of a commercial and industrial loan of $118 thousand during the third quarter of 2024.

The Company had $37 thousand in consumer solar loans that were over 90 days past due that were accruing interest at September 30, 2024, and no delinquencies at June 30, 2024.

There were $19.1 million in loan delinquencies (30-89 days past due, excluding nonaccrual loans) at September 30, 2024 and no delinquencies at June 30, 2024.

The allowance for credit losses, which is comprised of the allowance for loan losses (“ALL”) and reserve for unfunded loan commitments, totaled $57.6 million at September 30, 2024, compared to $24.6 million at June 30, 2024. The $33.0 million increase in the allowance included a $19.7 million provision for credit losses for the loan portfolio, of which $11.2 million related to the initial allowance for credit losses on acquired PCD loans, $21.3 million related to the initial provision for credit losses on acquired non-PCD loans and unfunded loan commitments, partially offset by total charge-offs of $1.2 million for the quarter ended September 30, 2024.

The ALL was $53.6 million, or 1.67% of total loans held for investment at September 30, 2024, compared with $23.8 million, or 1.27% at June 30, 2024.

Capital

Tangible book value (non-GAAP¹) per common share at September 30, 2024, was $11.28, compared with $13.71 at June 30, 2024. In the third quarter of 2024, tangible book value was primarily impacted by the net loss for the third quarter, the impact of equity issued in connection with the merger, stock-based compensation expense, and a decrease in net of unrealized tax losses on available-for-sale debt securities. Other comprehensive losses related to unrealized losses, net of taxes, on available-for-sale debt securities decreased by $3.6 million to $2.9 million at September 30, 2024, from $6.5 million at June 30, 2024. The decrease in the unrealized losses, net of taxes, on available-for-sale debt securities was primarily attributable to factors other than credit related, including decreases in market interest rates driven by the Federal Reserve’s 50 basis point rate cut in September 2024. Tangible common equity (non-GAAP¹) as a percentage of total tangible assets (non-GAAP¹) at September 30, 2024, decreased to 8.58% from 11.28% in the prior quarter, and unrealized losses, net of taxes, on available-for-sale debt securities as a percentage of tangible common equity (non-GAAP¹) at September 30, 2024 decreased to 0.8% from 2.6% in the prior quarter.

The Company’s preliminary capital exceeds minimums required to be “well-capitalized” at September 30, 2024.

ABOUT CALIFORNIA BANCORP

California BanCorp (NASDAQ: BCAL) is a registered bank holding company headquartered in San Diego, California. California Bank of Commerce, N.A., a national banking association chartered under the laws of the United States (the “Bank”) and regulated by the Office of Comptroller of the Currency, is a wholly owned subsidiary of California BanCorp. Established in 2001 and headquartered in San Diego, California, the Bank offers a range of financial products and services to individuals, professionals, and small to medium-sized businesses through its 14 branch offices and four loan production offices serving Northern and Southern California. The Bank’s solutions-driven, relationship-based approach to banking provides accessibility to decision makers and enhances value through strong partnerships with its clients. Additional information is available at www.bankcbc.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

In addition to historical information, this release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and other matters that are not historical facts. Examples of forward-looking statements include, among others, statements regarding expectations, plans or objectives for future operations, products or services, loan recoveries, projections, expectations regarding the adequacy of reserves for credit losses and statements about the benefits of the Company’s merger with CALB (the “Merger”), as well as forecasts relating to financial and operating results or other measures of economic performance. Forward-looking statements reflect management’s current view about future events and involve risks and uncertainties that may cause actual results to differ from those expressed in the forward-looking statement or historical results. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and often include the words or phrases such as “aim,” “can,” “may,” “could,” “predict,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “hope,” “intend,” “plan,” “potential,” “project,” “will likely result,” “continue,” “seek,” “shall,” “possible,” “projection,” “optimistic,” and “outlook,” and variations of these words and similar expressions.

Factors that could cause or contribute to results differing from those in or implied in the forward-looking statements include but are not limited to risk related to the Merger, including the risks that costs may be greater than anticipated, cost savings may be less than anticipated, and difficulties in retaining senior management, employees or customers, the impact of bank failures or other adverse developments at other banks on general investor sentiment regarding the stability and liquidity of banks, changes in real estate markets and valuations; the impact on financial markets from geopolitical conflicts; inflation, interest rate, market and monetary fluctuations and general economic conditions, either nationally or locally in the areas in which the Company conducts business; increases in competitive pressures among financial institutions and businesses offering similar products and services; general credit risks related to lending, including changes in the value of real estate or other collateral, the financial condition of borrowers, the effectiveness of our underwriting practices and the risk of fraud; higher than anticipated defaults in the Company’s loan portfolio; changes in management’s estimate of the adequacy of the allowance for credit losses or the factors the Company uses to determine the allowance for credit losses; changes in demand for loans and other products and services offered by the Company; the costs and outcomes of litigation; legislative or regulatory changes or changes in accounting principles, policies or guidelines and other risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (“SEC”) and other documents the Company may file with the SEC from time to time.

Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and other documents the Company files with the SEC from time to time.

Any forward-looking statement made in this release is based only on information currently available to management and speaks only as of the date on which it is made. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements or to conform such forward-looking statements to actual results or to changes in its opinions or expectations, except as required by law.

California BanCorp and Subsidiary
Financial Highlights (Unaudited)

	At or for the Three Months Ended									At or for the Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
EARNINGS	($ in thousands except share and per share data)
Net interest income	$	36,942		$	21,007		$	23,261		$	78,443		$	71,579
Provision for (reversal of) credit losses	$	22,963		$	2,893		$	(96	)	$	25,525		$	91
Noninterest income	$	1,174		$	1,169		$	815		$	3,756		$	3,481
Noninterest expense	$	37,680		$	19,005		$	14,781		$	71,666		$	44,407
Income tax (benefit) expense	$	(6,063	)	$	88		$	2,835		$	(3,653	)	$	9,064
Net (loss) income	$	(16,464	)	$	190		$	6,556		$	(11,339	)	$	21,498
Pre-tax pre-provision income ⁽¹⁾	$	436		$	3,171		$	9,295		$	10,533		$	30,653
Adjusted pre-tax pre-provision income ⁽¹⁾	$	15,041		$	3,662		$	9,295		$	26,178		$	30,653
Diluted (loss) earnings per share	$	(0.59	)	$	0.01		$	0.35		$	(0.53	)	$	1.15
Shares outstanding at period end		32,142,427			18,547,352			18,309,282			32,142,427			18,309,282

PERFORMANCE RATIOS
Return on average assets		(1.82	)%		0.03	%		1.12	%		(0.55	)%		1.25	%
Adjusted return on average assets ⁽¹⁾		1.01	%		0.11	%		1.12	%		0.74	%		1.25	%
Return on average common equity		(15.28	)%		0.26	%		9.38	%		(4.48	)%		10.63	%
Adjusted return on average common equity ⁽¹⁾		8.44	%		0.82	%		9.38	%		6.00	%		10.63	%
Yield on total loans		6.79	%		6.21	%		5.97	%		6.40	%		5.89	%
Yield on interest earning assets		6.49	%		5.97	%		5.72	%		6.15	%		5.63	%
Cost of deposits		2.09	%		2.12	%		1.56	%		2.09	%		1.22	%
Cost of funds		2.19	%		2.21	%		1.62	%		2.19	%		1.30	%
Net interest margin		4.43	%		3.94	%		4.23	%		4.12	%		4.43	%
Efficiency ratio ⁽¹⁾		98.86	%		85.70	%		61.39	%		87.19	%		59.16	%
Adjusted efficiency ratio ⁽¹⁾		60.54	%		83.49	%		61.39	%		68.15	%		59.16	%

	As of
	September 30, 2024			June 30, 2024			December 31, 2023
CAPITAL	($ in thousands except share and per share data)
Tangible equity to tangible assets ⁽¹⁾		8.58	%		11.28	%		10.73	%
Book value (BV) per common share	$	15.50		$	15.81		$	15.69
Tangible BV per common share ⁽¹⁾	$	11.28		$	13.71		$	13.56

ASSET QUALITY
Allowance for loan losses (ALL)	$	53,552		$	23,788		$	22,569
Reserve for unfunded loan commitments	$	4,071		$	819		$	933
Allowance for credit losses (ACL)	$	57,623		$	24,607		$	23,502
Allowance for loan losses to nonperforming loans		2.09	x		5.07	x		1.74	x
ALL to total loans held for investment		1.67	%		1.27	%		1.15	%
ACL to total loans held for investment		1.80	%		1.31	%		1.20	%
30-89 days past due, excluding nonaccrual loans	$	19,110		$	—		$	19
Over 90 days past due, excluding nonaccrual loans	$	37		$	—		$	—
Special mention loans	$	93,448		$	27,861		$	2,996
Special mention loans to total loans held for investment		2.92	%		1.48	%		0.15	%
Substandard loans	$	104,298		$	23,080		$	19,502
Substandard loans to total loans held for investment		3.26	%		1.23	%		1.00	%
Nonperforming loans	$	25,698		$	4,696		$	13,004
Nonperforming loans total loans held for investment		0.80	%		0.25	%		0.66	%
Other real estate owned, net	$	4,083		$	—		$	—
Nonperforming assets	$	29,781		$	4,696		$	13,004
Nonperforming assets to total assets		0.68	%		0.20	%		0.55	%

END OF PERIOD BALANCES
Total loans, including loans held for sale	$	3,233,418		$	1,884,599		$	1,964,791
Total assets	$	4,362,767		$	2,293,693		$	2,360,252
Deposits	$	3,740,915		$	1,935,862		$	1,943,556
Loans to deposits		86.4	%		97.4	%		101.1	%
Shareholders’ equity	$	498,064		$	293,219		$	288,152

(1) Non-GAAP measure. See – GAAP to Non-GAAP reconciliation.

	At or for the Three Months Ended									At or for the Nine Months Ended
ALLOWANCE for CREDIT LOSSES	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
	($ in thousands)
Allowance for loan losses
Balance at beginning of period	$	23,788		$	22,254		$	22,502		$	22,569		$	17,099
Adoption of ASU 2016-13 ⁽¹⁾		—			—			—			—			5,027
Initial Allowance for PCD loans		11,216			—			—			11,216			—
Provision for credit losses ⁽²⁾		19,711			2,990			202			22,387			600
Charge-offs		(1,163	)		(1,456	)		—			(2,620	)		(36	)
Recoveries		—			—			1			—			15
Net (charge-offs) recoveries		(1,163	)		(1,456	)		1			(2,620	)		(21	)
Balance, end of period	$	53,552		$	23,788		$	22,705		$	53,552		$	22,705
Reserve for unfunded loan commitments ⁽³⁾
Balance, beginning of period	$	819		$	916		$	1,538		$	933		$	1,310
Adoption of ASU 2016-13 ⁽¹⁾		—			—			—			—			439
Provision for (reversal of) credit losses ⁽⁴⁾		3,252			(97	)		(298	)		3,138			(509	)
Balance, end of period		4,071			819			1,240			4,071			1,240
Allowance for credit losses	$	57,623		$	24,607		$	23,945		$	57,623		$	23,945

ALL to total loans held for investment		1.67	%		1.27	%		1.18	%		1.67	%		1.18	%
ACL to total loans held for investment		1.80	%		1.31	%		1.24	%		1.80	%		1.24	%
Net (charge-offs) recoveries to average total loans		(0.17	)%		(0.31	)%		0.00	%		(0.16	)%		0.00	%

(1	)	Represents the impact of adopting ASU 2016-13, Financial Instruments – Credit Losses on January 1, 2023. As a result of adopting ASU 2016-13, our methodology to compute our allowance for credit losses is based on a current expected credit loss methodology, rather than the previously applied incurred loss methodology.
(2	)	Includes $18.5 million for the three and nine months ended September 30, 2024 related to the initial provision for credit losses for non-PCD loans acquired in the merger with CALB.
(3	)	Included in “Accrued interest and other liabilities” on the consolidated balance sheet.
(4	)	Includes $2.7 million for the three and nine months ended September 30, 2024 related to the initial provision for credit losses on unfunded commitments acquired in the merger with CALB.

California BanCorp and Subsidiary

Balance Sheets (Unaudited)

	September 30, 2024			June 30, 2024			December 31, 2023
ASSETS	($ in thousands)
Cash and due from banks	$	115,165		$	29,153		$	33,008
Federal funds sold & interest-bearing balances		499,258			75,580			53,785
Total cash and cash equivalents		614,423			104,733			86,793

Debt securities available-for-sale, at fair value (amortized cost of $163,384, $132,862 and $136,366 at September 30, 2024, June 30, 2024 and December 31, 2023)		159,330			123,653			130,035
Debt securities held-to-maturity, at cost (fair value of $49,487, $48,476 and $50,432 at September 30, 2024, June 30, 2024 and December 31, 2023)		53,364			53,449			53,616
Loans held for sale		33,704			6,982			7,349
Loans held for investment:
Construction & land development		247,934			205,072			243,521
1-4 family residential		152,540			157,323			143,903
Multifamily		252,134			187,960			221,247
Other commercial real estate		1,755,908			1,043,662			1,024,243
Commercial & industrial		765,472			283,203			320,142
Other consumer		25,726			397			4,386
Total loans held for investment		3,199,714			1,877,617			1,957,442
Allowance for credit losses – loans		(53,552	)		(23,788	)		(22,569	)
Total loans held for investment, net		3,146,162			1,853,829			1,934,873

Restricted stock at cost		27,394			16,898			16,055
Premises and equipment		13,996			12,741			13,270
Right of use asset		15,310			8,298			9,291
Other real estate owned, net		4,083			—			—
Goodwill		112,515			37,803			37,803
Core deposit intangible		23,031			1,065			1,195
Bank owned life insurance		66,180			39,445			38,918
Deferred taxes, net		45,644			11,080			11,137
Accrued interest and other assets		47,631			23,717			19,917
Total assets	$	4,362,767		$	2,293,693		$	2,360,252

LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Noninterest-bearing demand	$	1,368,303		$	666,606		$	675,098
Interest-bearing NOW accounts		781,125			355,994			381,943
Money market and savings accounts		1,149,268			660,808			636,685
Time deposits		442,219			252,454			249,830
Total deposits		3,740,915			1,935,862			1,943,556

Borrowings		69,142			42,913			102,865
Operating lease liability		19,211			10,931			12,117
Accrued interest and other liabilities		35,435			10,768			13,562
Total liabilities		3,864,703			2,000,474			2,072,100

Shareholders’ Equity:
Common stock – 50,000,000 shares authorized, no par value; issued and outstanding 32,142,427, 18,547,352 and 18,369,115 at September 30, 2024, June 30, 2024 and December 31, 2023)		441,684			224,006			222,036
Retained earnings		59,236			75,700			70,575
Accumulated other comprehensive loss – net of taxes		(2,856	)		(6,487	)		(4,459	)
Total shareholders’ equity		498,064			293,219			288,152
Total liabilities and shareholders’ equity	$	4,362,767		$	2,293,693		$	2,360,252

California BanCorp and Subsidiary

Income Statements – Quarterly and Year-to-Date (Unaudited)

	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
	($ in thousands except share and per share data)
INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$	47,528		$	29,057		$	28,977		$	105,169		$	83,983
Interest on debt securities		1,687			1,229			942			4,129			2,506
Interest on tax-exempted debt securities		306			306			359			918			1,302
Interest and dividends from other institutions		4,606			1,257			1,206			7,024			3,162
Total interest and dividend income		54,127			31,849			31,484			117,240			90,953

INTEREST EXPENSE
Interest on NOW, savings, and money market accounts		11,073			7,039			5,922			24,882			13,555
Interest on time deposits		5,087			3,145			1,867			11,253			4,373
Interest on borrowings		1,025			658			434			2,662			1,446
Total interest expense		17,185			10,842			8,223			38,797			19,374
Net interest income		36,942			21,007			23,261			78,443			71,579

Provision for (reversal of ) credit losses ⁽¹⁾		22,963			2,893			(96	)		25,525			91
Net interest income after provision for (reversal of) credit losses		13,979			18,114			23,357			52,918			71,488

NONINTEREST INCOME
Service charges and fees on deposit accounts		1,136			568			470			2,229			1,439
Gain on sale of loans		8			—			(54	)		423			831
Bank owned life insurance income		398			266			238			925			693
Servicing and related income (expense) on loans		82			(5	)		61			150			223
Loss on sale of debt securities		—			—			—			—			34
Loss on sale of building and related fixed assets		—			(19	)		—			(19	)		—
Other charges and fees		(450	)		359			100			48			261
Total noninterest income		1,174			1,169			815			3,756			3,481

NONINTEREST EXPENSE
Salaries and employee benefits		15,385			8,776			9,736			33,771			29,651
Occupancy and equipment expenses		2,031			1,445			1,579			4,928			4,553
Data processing		1,536			1,186			1,144			3,872			3,376
Legal, audit and professional		669			557			598			1,742			2,050
Regulatory assessments		544			347			369			1,278			1,188
Director and shareholder expenses		520			229			215			952			642
Merger and related expenses		14,605			491			—			15,645			—
Core deposit intangible amortization		687			65			128			817			309
Other real estate owned expense		3			4,935			—			5,026			—
Other expense		1,700			974			1,012			3,635			2,638
Total noninterest expense		37,680			19,005			14,781			71,666			44,407
(Loss) income before income taxes		(22,527	)		278			9,391			(14,992	)		30,562
Income tax (benefit) expense		(6,063	)		88			2,835			(3,653	)		9,064
Net (loss) income	$	(16,464	)	$	190		$	6,556		$	(11,339	)	$	21,498

Net (loss) income per share – basic	$	(0.59	)	$	0.01		$	0.36		$	(0.53	)	$	1.18
Net (loss) income per share – diluted	$	(0.59	)	$	0.01		$	0.35		$	(0.53	)	$	1.15
Weighted average common shares-diluted		27,705,844			18,799,513			18,672,132			21,579,175			18,632,890
Pre-tax, pre-provision income ⁽²⁾	$	436		$	3,171		$	9,295		$	10,533		$	30,653

(1) Included provision for (reversal of) unfunded loan commitments of $3.3 million, $(97) thousand and $(298) thousand for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively, and $3.1 million and $(509) thousand for the nine months ended September 30, 2024 and 2023, respectively
(2) Non-GAAP measure. See – GAAP to Non-GAAP reconciliation.

California BanCorp and Subsidiary
Average Balance Sheets and Yield Analysis
(Unaudited)

	Three Months Ended
	September 30, 2024							June 30, 2024							September 30, 2023
	Average Balance		Income/ Expense		Yield/ Cost			Average Balance		Income/ Expense		Yield/ Cost			Average Balance		Income/ Expense		Yield/ Cost
Assets	($ in thousands)
Interest-earning assets:
Total loans	$	2,783,581	$	47,528		6.79	%	$	1,882,845	$	29,057		6.21	%	$	1,924,384	$	28,977		5.97	%
Taxable debt securities		149,080		1,687		4.50	%		123,906		1,229		3.99	%		111,254		942		3.36	%
Tax-exempt debt securities ⁽¹⁾		53,682		306		2.87	%		53,754		306		2.90	%		59,630		359		3.02	%
Deposits in other financial institutions		161,616		2,215		5.45	%		47,417		638		5.41	%		50,367		681		5.36	%
Fed funds sold/resale agreements		143,140		1,886		5.24	%		19,062		261		5.51	%		20,653		283		5.44	%
Restricted stock investments and other bank stock		24,587		505		8.17	%		17,091		358		8.42	%		16,365		242		5.87	%
Total interest-earning assets		3,315,686		54,127		6.49	%		2,144,075		31,849		5.97	%		2,182,653		31,484		5.72	%
Total noninterest-earning assets		277,471							150,603							131,288
Total assets	$	3,593,157						$	2,294,678						$	2,313,941

Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing NOW accounts	$	617,373	$	2,681		1.73	%	$	361,244	$	2,134		2.38	%	$	353,714	$	1,706		1.91	%
Money market and savings accounts		999,322		8,392		3.34	%		653,244		4,905		3.02	%		675,609		4,216		2.48	%
Time deposits		421,241		5,087		4.80	%		259,722		3,145		4.87	%		183,745		1,867		4.03	%
Total interest-bearing deposits		2,037,936		16,160		3.15	%		1,274,210		10,184		3.21	%		1,213,068		7,789		2.55	%
Borrowings:
FHLB advances		611		9		5.86	%		27,391		387		5.68	%		11,731		163		5.51	%
Subordinated debt		52,246		1,016		7.74	%		17,901		271		6.09	%		17,830		271		6.03	%
Total borrowings		52,857		1,025		7.71	%		45,292		658		5.84	%		29,561		434		5.82	%
Total interest-bearing liabilities		2,090,793		17,185		3.27	%		1,319,502		10,842		3.30	%		1,242,629		8,223		2.63	%

Noninterest-bearing liabilities:
Noninterest-bearing deposits ⁽²⁾		1,031,844							658,001							768,148
Other liabilities		41,962							23,054							25,722
Shareholders’ equity		428,558							294,121							277,442
Total Liabilities and Shareholders’ Equity	$	3,593,157						$	2,294,678						$	2,313,941

Net interest spread						3.22	%						2.67	%						3.09	%
Net interest income and margin			$	36,942		4.43	%			$	21,007		3.94	%			$	23,261		4.23	%
Cost of deposits	$	3,069,780	$	16,160		2.09	%	$	1,932,211	$	10,184		2.12	%	$	1,981,216	$	7,789		1.56	%
Cost of funds	$	3,122,637	$	17,185		2.19	%	$	1,977,503	$	10,842		2.21	%	$	2,010,777	$	8,223		1.62	%

(1) Tax-exempt debt securities yields are presented on a tax equivalent basis using a 21% tax rate.
(2) Average noninterest-bearing deposits represent 33.61%, 34.05% and 38.77% of average total deposits for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.

California BanCorp and Subsidiary
Average Balance Sheets and Yield Analysis
(Unaudited)

	Nine Months Ended
	September 30, 2024							September 30, 2023
	Average Balance		Income/ Expense		Yield/ Cost			Average Balance		Income/ Expense		Yield/ Cost
Assets	($ in thousands)
Interest-earning assets:
Total loans	$	2,194,059	$	105,169		6.40	%	$	1,906,327	$	83,983		5.89	%
Taxable debt securities		133,321		4,129		4.14	%		104,881		2,506		3.19	%
Tax-exempt debt securities ⁽¹⁾		53,759		918		2.89	%		68,043		1,302		3.24	%
Deposits in other financial institutions		87,966		3,569		5.42	%		43,629		1,675		5.13	%
Fed funds sold/resale agreements		57,634		2,281		5.29	%		21,182		798		5.04	%
Restricted stock investments and other bank stock		19,383		1,174		8.09	%		15,774		689		5.84	%
Total interest-earning assets		2,546,122		117,240		6.15	%		2,159,836		90,953		5.63	%
Total noninterest-earning assets		189,573							133,224
Total assets	$	2,735,695						$	2,293,060

Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing NOW accounts	$	446,759	$	6,860		2.05	%	$	290,326	$	3,301		1.52	%
Money market and savings accounts		767,916		18,022		3.13	%		674,452		10,254		2.03	%
Time deposits		312,544		11,253		4.81	%		170,620		4,373		3.43	%
Total interest-bearing deposits		1,527,219		36,135		3.16	%		1,135,398		17,928		2.11	%
Borrowings:
FHLB advances		26,105		1,103		5.64	%		16,282		632		5.19	%
Subordinated debt		29,425		1,559		7.08	%		17,807		814		6.11	%
Total borrowings		55,530		2,662		6.40	%		34,089		1,446		5.67	%
Total interest-bearing liabilities		1,582,749		38,797		3.27	%		1,169,487		19,374		2.21	%

Noninterest-bearing liabilities:
Noninterest-bearing deposits ⁽²⁾		784,609							829,082
Other liabilities		30,524							24,086
Shareholders’ equity		337,813							270,405

Total Liabilities and Shareholders’ Equity	$	2,735,695						$	2,293,060

Net interest spread						2.88	%						3.42	%
Net interest income and margin			$	78,443		4.12	%			$	71,579		4.43	%
Cost of deposits	$	2,311,828	$	36,135		2.09	%	$	1,964,480	$	17,928		1.22	%
Cost of funds	$	2,367,358	$	38,797		2.19	%	$	1,998,569	$	19,374		1.30	%

(1) Tax-exempt debt securities yields are presented on a tax equivalent basis using a 21% tax rate.
(2) Average noninterest-bearing deposits represent 33.94%, and 42.20% of average total deposits for the nine months ended September 30, 2024 and September 30, 2023, respectively.

California BanCorp and Subsidiary
GAAP to Non-GAAP Reconciliation
(Unaudited)

The following tables present a reconciliation of non-GAAP financial measures to GAAP measures for: (1) adjusted net (loss) income, (2) efficiency ratio, (3) adjusted efficiency ratio, (4) pre-tax pre-provision income, (5) adjusted pre-tax pre-provision income, (6) average tangible common equity, (7) adjusted return on average assets, (8) adjusted return on average equity, (9) return on average tangible common equity, (10) adjusted return on average tangible common equity, (11) tangible common equity, (12) tangible assets, (13) tangible common equity to tangible asset ratio, and (14) tangible book value per share. We believe the presentation of certain non-GAAP financial measures provides useful information to assess our consolidated financial condition and consolidated results of operations and to assist investors in evaluating our financial results relative to our peers. These non-GAAP financial measures complement our GAAP reporting and are presented below to provide investors and others with information that we use to manage the business each period. Because not all companies use identical calculations, the presentation of these non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. These non-GAAP measures should be taken together with the corresponding GAAP measures and should not be considered a substitute of the GAAP measures.

	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
	($ in thousands)
Adjusted net income
Net (loss) income	$	(16,464	)	$	190		$	6,556		$	(11,339	)	$	21,498
Add: After-tax Day1 provision for non PCD loans and unfunded loan commitments ⁽¹⁾		14,978			—			—			14,978			—
Add: After-tax merger and related expenses ⁽¹⁾		10,576			412			—			11,535			—
Adjusted net (loss) income (non-GAAP)	$	9,090		$	602		$	6,556		$	15,174		$	21,498

Efficiency Ratio
Noninterest expense	$	37,680		$	19,005		$	14,781		$	71,666		$	44,407
Deduct: Merger and related expenses		14,605			491			—			15,645			—
Adjusted noninterest expense		23,075			18,514			14,781			56,021			44,407

Net interest income		36,942			21,007			23,261			78,443			71,579
Noninterest income		1,174			1,169			815			3,756			3,481
Total net interest income and noninterest income	$	38,116		$	22,176		$	24,076		$	82,199		$	75,060
Efficiency ratio (non-GAAP)		98.9	%		85.7	%		61.4	%		87.2	%		59.2	%
Adjusted efficiency ratio (non-GAAP)		60.5	%		83.5	%		61.4	%		68.2	%		59.2	%

Pre-tax pre-provision income
Net interest income	$	36,942		$	21,007		$	23,261		$	78,443		$	71,579
Noninterest income		1,174			1,169			815			3,756			3,481
Total net interest income and noninterest income		38,116			22,176			24,076			82,199			75,060
Less: Noninterest expense		37,680			19,005			14,781			71,666			44,407
Pre-tax pre-provision income (non-GAAP)		436			3,171			9,295			10,533			30,653
Add: Merger and related expenses		14,605			491			—			15,645			—
Adjusted pre-tax pre-provision income (non-GAAP)	$	15,041		$	3,662		$	9,295		$	26,178		$	30,653

(1) After-tax merger and related expenses are presented using a 29.56% tax rate.

Return on Average Assets, Equity, and Tangible Equity
Net (loss) income	$	(16,464	)	$	190		$	6,556		$	(11,339	)	$	21,498
Adjusted net (loss) income (non-GAAP)	$	9,090		$	602		$	6,556		$	15,174		$	21,498

Average assets	$	3,593,157		$	2,294,678		$	2,313,941		$	2,735,695		$	2,293,060
Average shareholders’ equity		428,558			294,121			277,442			337,813			270,405
Less: Average intangible assets		104,409			38,900			39,158			60,917			39,249
Average tangible common equity (non-GAAP)	$	324,149		$	255,221		$	238,284		$	276,896		$	231,156

Return on average assets		(1.82	%)		0.03	%		1.12	%		(0.55	%)		1.25	%
Adjusted return on average assets (non-GAAP)		1.01	%		0.11	%		1.12	%		0.74	%		1.25	%
Return on average equity		(15.28	%)		0.26	%		9.38	%		(4.48	%)		10.63	%
Adjusted return on average equity (non-GAAP)		8.44	%		0.82	%		9.38	%		6.00	%		10.63	%
Return on average tangible common equity (non-GAAP)		(20.21	%)		0.30	%		10.92	%		(5.47	%)		12.43	%
Adjusted return on average tangible common equity (non-GAAP)		11.16	%		0.95	%		10.92	%		7.32	%		12.43	%

	September 30, 2024			December 31, 2023
	($ in thousands except share and per share data)
Tangible Common Equity Ratio/Tangible Book Value Per Share
Shareholders’ equity	$	498,064		$	288,152
Less: Intangible assets		135,546			38,998
Tangible common equity (non-GAAP)	$	362,518		$	249,154

Total assets	$	4,362,767		$	2,360,252
Less: Intangible assets		135,546			38,998
Tangible assets (non-GAAP)	$	4,227,221		$	2,321,254

Equity to asset ratio		11.42	%		12.21	%
Tangible common equity to tangible asset ratio (non-GAAP)		8.58	%		10.73	%
Book value per share	$	15.50		$	15.69
Tangible book value per share (non-GAAP)	$	11.28		$	13.56
Shares outstanding		32,142,427			18,369,115

INVESTOR RELATIONS CONTACT
Kevin Mc Cabe
California Bank of Commerce, N.A.
kmccabe@bankcbc.com
818.637.7065

The MIL Network –

January 25, 2025

MIL-OSI: StoneX Announces Election Trading Partnership Between FOREX.com and Kalshi

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Oct. 29, 2024 (GLOBE NEWSWIRE) — FOREX.com, the number one forex broker in the US*, is delighted to announce a new partnership with Kalshi, the innovative CFTC-regulated exchange for trading on the outcome of future events.

This partnership enables traders to trade FX markets with the leading forex broker in the US while expressing a view on the US Presidential Election through Kalshi’s unique event-based platform. This partnership also incorporates a $20 bonus** for FOREX.com clients accessing the Kalshi platform to trade the US Presidential Election, subject to certain conditions.

Sixto Alonso, Regional Director of FOREX.com Americas commented, “At FOREX.com, we remain steadfast in our commitment to providing our clients with tools and products that enhance their trading experience and broaden their ability to access political and market events. We consider this partnership to be just the start, and plan to develop it further with other event-based promotions for our clients.”

Tarek Mansour, founder of Kalshi added, “As the first and largest regulated prediction market, Kalshi’s vision is to bring this asset class mainstream. We are excited to partner with FOREX.com to offer election markets to their hundreds of thousands of customers.”

About Kalshi

Kalshi is the first and largest legal prediction market in the United States. After leading the charge to legalize election-based event contracts, the Kalshi platform has seen over $100 million in trading volume in less than a month. With deep liquidity and large market makers, Kalshi can easily fulfill institutional demand, up to $100 million.

FOREX.com and StoneX Group Inc.

FOREX.com is a trading name of StoneX Group Inc. (NASDAQ: SNEX; “StoneX” or the “Company”), a financial services network that connects companies, organizations, traders and investors to the global market ecosystem. StoneX and its over 4,000 employees serve more than 54,000 commercial, institutional, and international payments clients and over 400,000 self-directed accounts from more than 80 offices spread across 6 continents. More information on the company is available at www.stonex.com.

Please be aware that political events can cause significant market volatility and increase risks.

For more information, please contact:

StoneX: stonex@cognitomedia.com

Kalshi: media@kalshi.com

For further details and inquiries, please visit:

StoneX.com

* Based on client assets per the 2023 monthly Retail Forex Obligation reports published by the CFTC

** To receive the $20 cash bonus, FOREX.com clients must apply and be approved for a Kalshi account and satisfy any other qualification requirements as determined by Kalshi. Please refer to the Kalshi website for details. The $20 bonus is paid by Kalshi in accordance with their terms and conditions.

The MIL Network –

January 25, 2025

MIL-OSI: Franklin Electric Reports Third Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

Third Quarter 2024 Highlights

Consolidated net sales of $531.4 million, a decrease of 1% to the prior year
Water Systems and Distribution net sales increased 2% and 1%, respectively, while Fueling Systems net sales decreased 10%
Operating income was $73.5 million with operating margin of 13.8%
GAAP fully diluted earnings per share (EPS) was $1.17

FORT WAYNE, Ind., Oct. 29, 2024 (GLOBE NEWSWIRE) — Franklin Electric Co., Inc. today announced its third quarter financial results for fiscal year 2024.

Third quarter 2024 net sales were $531.4 million, compared to third quarter 2023 net sales of $538.4 million. Third quarter 2024 operating income was $73.5 million, compared to third quarter 2023 operating income of $78.1 million. Third quarter 2024 EPS was $1.17, versus EPS in the third quarter 2023 of $1.23.

“Our third quarter results were softer than expected due to continued macro pressure from lower home sales and starts, along with weather being wetter than normal. However, the demand environment remains healthy across our key end markets, which has normalized following record levels of sales in recent years. Margins remained stable due to our disciplined cost management, and we are actively pursuing opportunities to further reduce expenses across the enterprise,” commented Joe Ruzynski, Franklin Electric’s CEO.

“As we close out the year, we expect tempered order activity in-line with seasonal patterns. That said, having spent time with our incredible global team members over the past few months, I am energized by the potential of Franklin Electric. With our wide range of capabilities, strategic footprint, and flexible balance sheet, we have the ability to drive differentiated growth and accelerate productivity for years to come,” concluded Mr. Ruzynski.

Segment Summaries

Water Systems net sales were $302.2 million, a new third quarter record, an increase of $6.4 million or 2 percent compared to the third quarter 2023. The sales increase was driven by higher sales of groundwater products, all other surface products and water treatment products. The sales increase was partially offset by lower sales of large dewatering pumps, which had a record quarter last year. Water Systems operating income in the third quarter 2024 was $52.8 million, a new third quarter record. Third quarter 2023 Water Systems operating income was $52.7 million.

Distribution net sales were $190.8 million, an increase of $1.6 million or 1 percent compared to the third quarter 2023. Sales increases were driven by sales from a recent acquisition. The Distribution segment operating income in the third quarter 2024 was $12.2 million. Third quarter 2023 Distribution operating income was $10.7 million.

Fueling Systems net sales were $69.7 million in the third quarter 2024, a decrease of $8.0 million or 10 percent compared to the third quarter 2023. Sales decreases were driven by lower volumes. Fueling Systems operating income in the third quarter 2024 was $24.1 million. Third quarter 2023 Fueling Systems operating income was $25.8 million.

2024 Guidance

The Company is lowering its sales guidance for full year 2024 to be approximately $2.00 billion and reducing its EPS guidance for full year 2024 to be in the range of $3.75 to $3.85 which incorporates the Company’s first nine months performance and its outlook for the fourth quarter.

Earnings Conference Call

A conference call to review earnings and other developments in the business will commence at 9:00 am ET. The third quarter 2024 earnings call will be available via a live webcast. The webcast will be available in a listen only mode by going to:

https://edge.media-server.com/mmc/p/cp5pmtx9

For those interested in participating in the question-and-answer portion of the call, please register for the call at the link below.

https://register.vevent.com/register/BIa5e3e952cc2d47c28144fef8683c97e0

All registrants will receive dial-in information and a PIN allowing them to access the live call. It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call).

A replay of the conference call will be available from Tuesday, October 29, 2024, through 9:00 am ET on Tuesday, November 5, 2024, by visiting the listen-only webcast link above.

Forward Looking Statements

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including those relating to market conditions or the Company’s financial results, costs, expenses or expense reductions, profit margins, inventory levels, foreign currency translation rates, liquidity expectations, business goals and sales growth, involve risks and uncertainties, including but not limited to, risks and uncertainties with respect to general economic and currency conditions, various conditions specific to the Company’s business and industry, weather conditions, new housing starts, market demand, competitive factors, changes in distribution channels, supply constraints, effect of price increases, raw material costs, technology factors, integration of acquisitions, litigation, government and regulatory actions, the Company’s accounting policies, future trends, epidemics and pandemics, and other risks which are detailed in the Company’s Securities and Exchange Commission filings, included in Item 1A of Part I of the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2023, Exhibit 99.1 attached thereto and in Item 1A of Part II of the Company’s Quarterly Reports on Form 10-Q. These risks and uncertainties may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements made herein are based on information currently available, and the Company assumes no obligation to update any forward-looking statements.

About Franklin Electric

Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and energy. Recognized as a technical leader in its products and services, Franklin Electric serves customers around the world in residential, commercial, agricultural, industrial, municipal, and fueling applications. Franklin Electric is proud to be named in Newsweek’s lists of America’s Most Responsible Companies and Most Trustworthy Companies for 2023 and America’s Climate Leaders 2023 by USA Today.

Franklin Electric Contact:

Jeffery L. Taylor
Franklin Electric Co., Inc.
InvestorRelations@fele.com



FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

(In thousands, except per share amounts)

	Third Quarter Ended						Nine Months Ended
	September 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023

Net sales	$	531,438		$	538,431		$	1,535,596		$	1,592,163

Cost of sales		341,775			352,178			982,556			1,055,164

Gross profit		189,663			186,253			553,040			536,999

Selling, general, and administrative expenses		115,998			107,687			352,290			324,651

Restructuring expense		139			462			139			735

Operating income		73,526			78,104			200,611			211,613

Interest expense		(1,556	)		(2,984	)		(4,980	)		(10,309	)
Other (expense) income, net		(181	)		277			709			1,865
Foreign exchange income (expense), net		88			(2,483	)		(5,228	)		(8,098	)

Income before income taxes		71,877			72,914			191,112			195,071

Income tax expense		16,983			14,746			43,795			39,167

Net income	$	54,894		$	58,168		$	147,317		$	155,904

Less: Net income attributable to noncontrolling interests		(298	)		(370	)		(663	)		(1,181	)

Net income attributable to Franklin Electric Co., Inc.	$	54,596		$	57,798		$	146,654		$	154,723

Earnings per share:
Basic	$	1.19		$	1.25		$	3.18		$	3.34
Diluted	$	1.17		$	1.23		$	3.14		$	3.29


FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

(In thousands)

	September 30, 2024		December 31, 2023
ASSETS

Cash and cash equivalents	$	106,273	$	84,963
Receivables (net)		272,003		222,418
Inventories		524,647		508,696
Other current assets		39,560		37,718
Total current assets		942,483		853,795

Property, plant, and equipment, net		226,072		229,739
Lease right-of-use assets, net		62,694		57,014
Goodwill and other assets		575,994		587,574
Total assets	$	1,807,243	$	1,728,122


LIABILITIES AND EQUITY

Accounts payable	$	173,935	$	152,419
Accrued expenses and other current liabilities		124,865		104,949
Current lease liability		17,963		17,316
Current maturities of long-term debt and short-term borrowings		76,402		12,355
Total current liabilities		393,165		287,039

Long-term debt		11,581		88,056
Long-term lease liability		43,484		38,549
Income taxes payable non-current		–		4,837
Deferred income taxes		31,128		29,461
Employee benefit plans		30,781		35,973
Other long-term liabilities		23,219		33,914

Redeemable noncontrolling interest		1,179		1,145

Total equity		1,272,706		1,209,148
Total liabilities and equity	$	1,807,243	$	1,728,122


FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	Nine Months Ended
(In thousands)
	September 30, 2024			September 30, 2023
Cash flows from operating activities:
Net income	$	147,317		$	155,904
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization		41,825			39,582
Non-cash lease expense		15,223			12,664
Share-based compensation		10,127			8,449
Other		5,178			10,894
Changes in assets and liabilities:
Receivables		(51,440	)		(20,427	)
Inventory		(18,760	)		2,537
Accounts payable and accrued expenses		17,218			4,376
Operating leases		(15,700	)		(12,847	)
Income taxes-U.S. Tax Cuts and Jobs Act		(3,870	)		(2,902	)
Other		3,968			399

Net cash flows from operating activities		151,086			198,629

Cash flows from investing activities:
Additions to property, plant, and equipment		(28,897	)		(30,155	)
Proceeds from sale of property, plant, and equipment		704			–
Acquisitions and investments		(1,151	)		(6,641	)
Other investing activities		37			26

Net cash flows from investing activities		(29,307	)		(36,770	)

Cash flows from financing activities:
Net change in debt		(12,477	)		(87,653	)
Proceeds from issuance of common stock		5,269			9,010
Purchases of common stock		(56,989	)		(29,888	)
Dividends paid		(35,442	)		(31,315	)
Deferred payments for acquisitions		(348	)		(448	)

Net cash flows from financing activities		(99,987	)		(140,294	)

Effect of exchange rate changes on cash and cash equivalents		(482	)		(4,848	)
Net change in cash and cash equivalents		21,310			16,717
Cash and cash equivalents at beginning of period		84,963			45,790
Cash and cash equivalents at end of period	$	106,273		$	62,507

Key Performance Indicators: Net Sales Summary


	Net Sales
	United States			Latin			Europe, Middle			Asia			Total
(in millions)	& Canada			America			East & Africa			Pacific			Water			Fueling			Distribution			Other/Elims			Consolidated

Q3 2023		$182.0			$45.5			$48.7			$19.6			$295.8			$77.7			$189.2			($24.3	)		$538.4
Q3 2024		$183.6			$43.5			$53.4			$21.7			$302.2			$69.7			$190.8			($31.3	)		$531.4
Change		$1.6			($2.0	)		$4.7			$2.1			$6.4			($8.0	)		$1.6			($7.0	)		($7.0	)
% Change		1	%		-4	%		10	%		11	%		2	%		-10	%		1	%					-1	%

Foreign currency translation *		($0.3	)		($4.4	)		($0.3	)		$0.0			($5.0	)		$0.1			$0.0						($4.9	)
% Change		0	%		-10	%		-1	%		0	%		-2	%		0	%		0	%					-1	%

Acquisitions		$4.5			$0.0			$0.0			$0.0			$4.5			$0.0			$4.7						$9.2
% Change		2	%		0	%		0	%		0	%		2	%		0	%		2	%					2	%

Volume/Price		($2.6	)		$2.4			$5.0			$2.1			$6.9			($8.1	)		($3.1	)		($7.0	)		($11.3	)
% Change		-1	%		5	%		10	%		11	%		2	%		-10	%		-2	%		29	%		-2	%

*The Company has presented local currency price increases used to offset currency devaluation in the Argentina and Turkey hyperinflationary economies within the foreign currency translation, net row above.

Key Performance Indicators: Operating Income and Margin Summary


Operating Income and Margins
(in millions)	For the Third Quarter 2024
	Water			Fueling			Distribution			Other/Elims			Consolidated
Operating Income / (Loss)	$	52.8		$	24.1		$	12.2		$	(15.6	)	$	73.5
% Operating Income To Net Sales		17.5	%		34.6	%		6.4	%					13.8	%


Operating Income and Margins
(in millions)	For the Third Quarter 2023
	Water			Fueling			Distribution			Other/Elims			Consolidated
Operating Income / (Loss)	$	52.7		$	25.8		$	10.7		$	(11.1	)	$	78.1
% Operating Income To Net Sales		17.8	%		33.2	%		5.7	%					14.5	%

The MIL Network –

January 25, 2025

MIL-OSI: Rigetti Computing to Report Third Quarter 2024 Financial Results and Host Conference Call on November 12, 2024

Source: GlobeNewswire (MIL-OSI)

BERKELEY, Calif., Oct. 29, 2024 (GLOBE NEWSWIRE) — Rigetti Computing, Inc. (“Rigetti” or the “Company”) (Nasdaq: RGTI), a pioneer in hybrid quantum-classical computing, announced today that it will release third quarter 2024 results on Tuesday, November 12, 2024 pre-market open. The Company will host a conference call to discuss its financial results and provide an update on its business operations at 8:30 a.m. ET the same day.

Key details regarding the call are as follows:

Call Date: Tuesday, November 12, 2024
Call Time: 8:30 a.m. ET / 5:30 a.m. PT
Webcast Link: https://edge.media-server.com/mmc/p/aoxe8j5p/
Live Call Participant Link: https://register.vevent.com/register/BI66e8b07255734ee49c6d5daf2166b220

Webcast Instructions
You can listen to a live audio webcast of the conference call by visiting the “Webcast Link” above or the “Events & Presentations” section of the Company’s Investor Relations website at https://investors.rigetti.com/. A replay of the conference call will be available at the same locations following the conclusion of the call for one year.

Live Call Participant Instructions
To participate in the live call, you must register using the “Live Call Participant Link” above. Once registered, you will receive dial-in numbers and a unique PIN number. When you dial in, you will input your PIN and be routed into the call. If you register and forget your PIN, or lose the registration confirmation email, simply re-register to receive a new PIN.

About Rigetti
Rigetti is a pioneer in full-stack quantum computing. The Company has operated quantum computers over the cloud since 2017 and serves global enterprise, government, and research clients through its Rigetti Quantum Cloud Services platform. The Company’s proprietary quantum-classical infrastructure provides high performance integration with public and private clouds for practical quantum computing. Rigetti has developed the industry’s first multi-chip quantum processor for scalable quantum computing systems. The Company designs and manufactures its chips in-house at Fab-1, the industry’s first dedicated and integrated quantum device manufacturing facility. Learn more at www.rigetti.com.

Contact
Rigetti Computing Media Contact:
press@rigetti.com

Rigetti Computing Investor Relations Contact:
IR@Rigetti.com

The MIL Network –

January 25, 2025
MIL-OSI: Global Carbon Dioxide Removal (CDR) Market Valuation Expected to Reach $2.11 Billion by 2032

Source: GlobeNewswire (MIL-OSI)

PALM BEACH, Fla., Oct. 29, 2024 (GLOBE NEWSWIRE) — FN Media Group News Commentary – The global Carbon Dioxide Removal (CDR) Market has been growing in the past years and is expected to continue at a substantial pace for years to come. Growing awareness and concern about the impacts of climate change are driving governments, businesses, and individuals to seek effective solutions for mitigating carbon dioxide emissions. The CDR market benefits from this heightened awareness and the urgent need for sustainable practices. A report from Custom Marketing Insights said that the global Carbon Dioxide Removal (CDR) Market size is expected to record a CAGR of 14.8% from 2023 to 2032. In 2023, the market size is projected to reach a valuation of USD 610.9 Million. By 2032, the valuation is anticipated to reach USD 2,115.5 Million.   The report said: “Stringent Regulatory Policies and Targets: Governments around the world are implementing and enhancing regulatory frameworks aimed at reducing greenhouse gas emissions. The imposition of carbon reduction targets and the integration of carbon pricing mechanisms create a favorable environment for the growth of the CDR market, as industries seek ways to comply with these regulations.   Advancements in CDR Technologies: Ongoing research and development efforts are leading to technological advancements in carbon removal methods. Improved efficiency, scalability, and cost-effectiveness of CDR technologies contribute to their wider adoption and growth in the market.   Increasing Corporate Sustainability Initiatives: Many companies are adopting sustainability goals and committing to achieving net-zero emissions. As part of their corporate social responsibility (CSR) initiatives, businesses are investing in CDR technologies to offset their carbon footprint, contributing to the overall growth of the market.”   Active carbon companies in the markets this week include: BluSky Carbon Inc. (CSE: BSKY) (OTCQB: BSKCF), SLB (NYSE: SLB), DevvStream Holdings Inc. (OTCQB: DSTRF) (NEO: DESG), Base Carbon Inc. (OTCQX: BCBNF) (NEO: BCBN), LanzaTech Global, Inc. (NASDAQ: LNZA).

Custom Marketing Insights continued: “Rising Investments and Funding: The CDR market is witnessing increased investments from both public and private sectors. Governments, venture capital firms, and major corporations are allocating funds to support research, development, and implementation of carbon removal technologies, fostering market growth.   Emergence of Carbon Offset Markets: The development of carbon offset markets, where entities can buy and sell carbon credits, provides financial incentives for the deployment of CDR technologies. This market dynamic encourages the adoption of carbon removal solutions as a means for businesses to offset their emissions and comply with regulatory requirements, thereby driving market growth.”

BluSky Carbon Inc. (CSE: BSKY) (OTCQB: BSKCF) Commences Biochar Production in Arkansas – BluSky Carbon Inc. (FWB: QE4 /WKN A401NM) (“BluSky” or the “Company”), an innovative entry into the carbon removal clean technology sector is very pleased to announce that it has commenced production of biochar at a dedicated facility in Arkansas. The event marks the official startup of initial biochar production aimed at servicing the recently announced $105 million, ten-year supply agreement (see Company news release dated Sept 24, 2024) (“Supply Agreement”).

A video showing the equipment start-up and providing some insights into the facility, the region, and BluSky’s strategic plan is available here.

The startup of the Vulcan Heavy system at this location represents the first of three units required to service the totality of the Supply Agreement. Once the other two units are procured and fully operational (see news release dated September 24, 2024), these machines are expected to produce a combined output of approximately 40,000 tons of biochar annually. It is also expected that production byproducts such as bio-oil and syngas may help reduce the Company’s overall production costs by providing some of the energy required to power the Vulcan systems, potentially along with surplus power capacity to contribute towards operating BluSky’s related carbon removal technologies (CDR) including its Medusa Carbon mineralization process and Kronos Direct Air Carbon Capture technology.

The inaugural production plant has been dedicated as “AR1“ and is located at 110 Industrial Park Drive in Warren, Arkansas. The facility consists of a multi-room 50,000 sq/ft enclosure located on an 8.54-acre property. Warren services an established sustainable timber industry with a strong presence in the town and surrounding area. Nearby softwood wood chip production (mostly yellow pine) serves as a nearly limitless source of clean biomass feedstock for the BluSky Vulcan Heavy pyrolysis systems.

BluSky CEO Will Hessert comments, “The facility is ideally suited for scalability. We have ample room for the three Vulcan Heavy units as required to service our initial regional contract, with additional room to double that production without the need to create more space. The property itself is large and well suited to handle industrial scale logistics and storage needs.”   CONTINUED… Read this full press release and more news for BluSky Carbon at:   https://bluskycarbon.com/news/

Other recent carbon developments in the markets of note include:

SLB (NYSE: SLB), formerly known as Schlumberger, recently announced it was aiming to accelerate the deployment of carbon capture technology through an investment in Norway’s Aker Carbon Capture. SLB said that it will pay about $380 million, or 4.12 billion Norwegian kroner, for an 80% stake in the pure-play carbon capture company. The deal is expected to close by the end of the second quarter.

Schlumberger rebranded as SLB in 2022 as part of the company’s growing focus on lower-carbon technologies. SLB is targeting $3 billion in revenue from its new energy business by the end of the decade. CEO Olivier Le Peuch told analysts during the company’s fourth-quarter earnings call that carbon capture and storage will be a leading contributor to that $3 billion target. SLB is participating in more than $400 million worth of tenders related to carbon capture and storage.

DevvStream Holdings Inc. (NEO: DESG) (OTCQB: DSTRF), a leading carbon credit project co-development and generation firm specializing in technology-based solutions, recently announced an agreement (the “Agreement”) to purchase 1.2 million carbon credits from the Ipixuna REDD+ Project (the “Project”), subject to final approval by the board of Focus Impact Acquisition Corp. (“Focus Impact”). In exchange for the credits, the vendor will receive newly authorized shares of common stock of the public company (“NewCo”) resulting from DevvStream’s previously announced business combination with Focus Impact (the “Business Combination”). Upon closing of the Business Combination-projected to occur on or before October 31, 2024-NewCo is expected to be named DevvStream Corp. and begin trading on the Nasdaq Stock Market LLC (“Nasdaq”) under the ticker symbol “DEVS.” The Company expects the carbon credit purchase Agreement to close in conjunction with and conditional upon the Business Combination and Nasdaq listing.

Base Carbon Inc. (NEO: BCBN) (OTCQX: BCBNF) with operations through its wholly-owned subsidiary, Base Carbon Capital Partners Corp. (together, with affiliates, “Base Carbon”, or the “Company”), recently announced that it has received a second transfer of 1,014,635 carbon credits from its Rwanda project, each designated with Verra’s Article 6 Authorized label.

Pursuant to the terms of the project agreement with the DelAgua Group, the project developer, and the letter of authorization issued by the Government of Rwanda (“LOA”) with respect to the project, the Company has received a transfer of 1,014,635 Article 6 Authorized labeled carbon credits. This volume is net of 23,060 carbon credits which have been retired to contribute towards global emission reductions and 115,300 carbon credits to be made available to the Government of Rwanda pursuant to the terms of the LOA. The Company now holds a total inventory of 1,712,193 carbon credits generated from the Rwanda project, all designated with Verra’s Article 6 Authorized label.

LanzaTech Global, Inc. (NASDAQ: LNZA), the carbon recycling company transforming waste carbon into sustainable fuels, chemicals, materials, and protein, has been awarded $3 million by the U.S. Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM), as part of a broader $29 million investment program to advance its carbon management priorities. LanzaTech’s Project ADAPT (“Accelerating Decarbonization via Advanced Production Technologies”) was selected to address FECM’s priority of converting carbon dioxide (CO2) into environmentally responsible and economically valuable products…

…”We are thrilled to receive this support from the U.S. Department of Energy to progress our work around scaling the conversion of waste CO2 to make some of the world’s most needed chemicals,” said Dr. Jennifer Holmgren, CEO of LanzaTech. “CO2 is an essential feedstock of today and the future, and Project ADAPT leverages our expertise and existing operations to accelerate the commercialization of transformational carbon capture and utilization technologies that deliver cleaner and more sustainable energy and products.”

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

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The MIL Network –

January 25, 2025
MIL-OSI Banking: Pan Gongsheng: Strike the right balance and pursue high-quality development of the Chinese economy

Source: Bank for International Settlements

Distinguished Party Secretary Yin Li, Mayor Yin Yong, Mr. Wang Jiang, Mr. Li Yunze, Mr. Wu Qing, Mr. Fu Hua, Mr. Zhu Hexin, and dear guests,

Good morning!

It is a great pleasure to attend the Financial Street Forum. I would like to take this opportunity to exchange views with you on three issues.

I. Progress in implementing a package of incremental monetary policies

According to arrangements of the CPC Central Committee, financial regulators announced a package of policies to support stable economic growth on September 24. The move attracted great attention and received extensive support. The day before yesterday, the PBOC, the National Financial Regulatory Administration (NFRA), and China Securities Regulatory Commission (CSRC) organized a meeting with major commercial banks, securities firms, and fund companies to make arrangements for prompt implementation of the package of policies. Here I would like to share with you our progress in implementing relevant policies.

In terms of the required reserve ratio (RRR) and interest rate cut, on September 27, the RRR was cut by 0.5 percentage points, the 7-day reverse repo rate was cut by 0.2 percentage points, and the medium-term lending facility (MLF) rate was cut by 0.3 percentage points from 2.3 percent to 2 percent. We might further cut the RRR by 0.25-0.5 percentage points at proper time, depending on the market liquidity before the year-end. This morning, the commercial banks have announced to lower the deposit rates, and the loan prime rate (LPR) to be released on October 21 is also expected to drop by 0.2-0.25 percentage points. The four policies related to real estate finance have all been rolled out. Specifically, the adjustment of rates on existing housing loans is a policy to benefit people’s livelihood unveiled at the decision of the CPC Central Committee. It will benefit 50 million households, whose interest expenses will be reduced by about RMB150 billion each year. As for the two financial instruments to support stable development of the capital market, the PBOC has established a special working group together with the CSRC and NFRA. Securities, funds and insurance companies swap facility (SFISF) are now open to financial institutions for application. The policies related to special central bank lending for shares buyback and holdings increase have been officially released today for implementation.

Since it was announced and implemented, the policy package has received positive feedback both at home and abroad. It has vigorously boosted social confidence and played an effective role in promoting stable economic and financial performance. We have taken three main factors into consideration while formulating these policies.

First, given the current economic performance, we need to implement strong macro aggregate policies. Major problems in the current economic operation, as reflected at the macro level, are insufficient effective demand, weak social expectations and low prices. A common market view is that we need to launch strong macro policies. According to the arrangements of the CPC Central Committee, the PBOC has conducted in-depth researches and prepared policy plans in advance. Against this backdrop, the CPC Central Committee promptly made the decision to launch a package of incremental policies, which reflect its determination to secure the economy, stabilize expectations, boost consumption and benefit people’s livelihood. The market responded to the initiative positively.

Second, the economy still faces some prominent challenges, which are mainly related to the real estate market and the capital market. Drawing on international experience and China’s practices in the past, we need to unveil targeted policies in response.

In terms of the real estate market, the PBOC, based on its mandate, has improved four real estate finance-related policies, supporting risk defusing and sound development of the real estate market from a macro-prudential perspective.

In terms of the capital market, the PBOC, together with the CSRC, has developed two instruments to facilitate the stable development of the capital market. The two instruments were designed completely based on market principles, and internationally there had been successful practices. Regarding the SFISF, the central bank does not provide fund support for the market directly, so it does not expand the central bank’s money supply and base money. The central bank lending for shares buyback and holdings increase is targeted. The credit funds must not enter the stock market in violation of financial regulation. This remains a red line. The two instruments showcase the efforts of the PBOC to expand and explore its mandate of maintaining financial stability. We will keep on cooperating with the CSRC to gradually improve the instruments in practice, and explore day-to-day institutional arrangements.

Third, the central bank needs to observe and evaluate financial market risks, and adopt proper measures to cut off or moderate the accumulation of financial market risks from the perspective of macro-prudential management. Recently, the PBOC strengthened communications with the market on the long-term government bond yield. We aimed to contain the potential systemic risk derived from one-sided downward movement of long-term government bond yield driven by herd effect. The financial markets are highly sensitive, which means they rapidly react to and price in changes in policies and various factors. From a macro and in-depth point of view, the real economy and the capital market are interwoven and interactive. The valuation recovery helps the capital market to perform its functions of investment and financing. It breaks the vicious cycle of market slump and equity pledge risks, thus promoting the healthy development of listed companies, improving social expectations, and invigorating consumption and investment demand.

II. The right balance and high-quality development of the Chinese economy

The objective of macroeconomic adjustments is to calibrate the economic development trajectory in the short term, while that of reforms and economic restructuring focuses on the mid- to long-term, which is to achieve high-quality development and sustainable economic growth.

Since the 18th National Congress of the CPC, General Secretary Xi Jinping and the CPC Central Committee have been highlighting the importance of improving the quality and benefits of economic growth. The 19th National Congress of the CPC made it clear that the Chinese economy had been transitioning from a phase of rapid growth to a stage of high-quality development. A requisite for China to adapt to the evolution of the principal contradiction facing the Chinese society, high-quality development focuses on addressing the problem of unbalanced and inadequate development, so as to better harmonize the major ratios in the national economy.

In physics, balance means that an object remains relatively stable under the combined action of several forces. The right balance in economic development refers to a dynamic process of the interaction and improvement of various economic structures and ratios, and it is a common phenomenon in the economic development of various countries.

Since the beginning of this century, the global economy has gone through three major balancing periods in which China were deeply engaged and made active contributions.

The first period was between 2001 and 2007. After China’s accession to the WTO, its low cost factors fully integrated into the global industrial division of labour, which effectively expanded global supply, and enhanced the production efficiency. It helped to tame the global inflation and boost economic growth.

The second period was between 2008 and 2017. After the Global Financial Crisis, the world economy featured “three lows and one high”, namely, low growth rate, low inflation, low interest rate, and high debt level. When the global demand was dampened, China took the initiative to vigorously boost domestic demand. The efforts helped spur the world economy and avoid its deflation. During the decade, China’s contribution to the world economic growth was stable at around 30 percent.

The third period was after the outbreak of the COVID-19. Due to supply shocks and potent demand side stimulus, the global inflation once surged and stayed elevated. While China’s supply chain system remained stable, it helped to fill the global supply gap, presenting China’s sustained contribution to bringing down inflation and achieving economic balance in the world.

The Chinese economy has also undergone profound restructuring and balancing processes. In recent years, with the deepening of supply-side structural reforms, the acceleration in the establishment of a new development paradigm, and the adoption of other strategic measures, China has made continued efforts to shift its economic growth model from the traditional focus on high-speed growth to an innovation-driven, quality- and efficiency-oriented mode. As a result, the quality and efficiency of supply have been improving while the value added of high-tech manufacturing has accounted for an expanding share. With the contribution from consumption continuously on the rise, consumption, investment, and net exports made up 56 percent, 42 percent, and 2 percent of China’s GDP in 2023, respectively, as compared with the corresponding data of 49 percent, 47 percent, and 4 percent in 2010.

To promote high-quality economic development and sustainable growth, we need to strike the right balance in economic operation from the following three perspectives.

First, we need to strike the right balance between the pace and quality of economic growth. Given the vast size of the Chinese economy, we need to keep economic growth at a reasonable rate in order to boost employment and people’s income. As the transformation of the economic development model and economic restructuring will likely affect economic growth in the short term, we need to strike the right balance, put effort into fostering the new drivers of economic growth, and firmly support stable economic growth so as to effectively upgrade and appropriately expand China’s economic output.

Second, we need to strike the right balance between internal and external concerns in achieving economic growth. In recent years, the Chinese economy has seen effective improvements in its external equilibrium. China’s current account surplus-to-GDP ratio, which fell from around 10 percent in 2007 to approximately 2 percent in 2011, has stayed within an internationally accepted range of 1-2 percent in recent years. Currently, as international geopolitical tensions have led to economic deglobalization, international trade politicalization and instrumentalization, the world’s sustainable economic growth and welfare growth are facing obstacles. Upholding free trade and fair competition, we will remain committed to expanding two-way opening-up, and we will make better use of both domestic and international markets as well as their resources to further enhance the international competitiveness of Chinese enterprises and to accelerate the establishment of a new development paradigm.

Third, we need to strike the right balance between investment and consumption. During past economic cycles in the history, we have confronted economic downward pressures mainly by boosting investment and maintaining supply-side productive capacity, which has played a significant and effective role. In pursuing high-quality development, we need to follow the direction of economic restructuring to adjust investments and channel more of them to areas such as sci-tech innovation and basic livelihoods. We will continue to apply a people-centered development philosophy, focus on raising household income, optimize the structure of fiscal expenditures, enhance the social security system, and promote consumption growth, thus giving rise to a virtuous cycle in which “government encourages consumption, consumption activates markets, markets lead businesses, and businesses expand investment”.

To achieve the right balance in the economy, we need to deal with the following priorities. First, macro economic policies should pivot from over-emphasis on investment to both consumption and investment, with more focus on consumption. Second, the relationship between government and market should be handled in a more appropriate manner, which calls for a scientific management and balance of the boundaries between government and market, and an enhanced pertinence as well as targetedness of policies regarding market concerns. Third, reform and opening-up will be further deepened to foster a favorable economic environment based on the rule of law and to create a more equitable and vibrant market environment.

III. The positive role the PBOC plays in serving high-quality development of the economy

The PBOC is both a financial regulator and a supervisory authority of the macro economy. Focused on the primary mandate of serving high-quality development, we will intensify the counter-cyclical adjustments of monetary policies and macro-prudential policies, and enhance the precision and effectiveness of financial support policies, so as to create a sound monetary and financial environment for the stable growth and structural adjustments of the economy. We will steadily advance the financial opening-up at a high level and strike the right balance of the economy.

First, we will further improve the monetary policy framework. I elaborated on the framework in Lujiazui Forum in June. Today, I would like to emphasize the following points. In terms of policy objectives, we will take reasonable prices rise as an important consideration, and give a bigger role to price-based policy tools, such as interest rate. In terms of policy implementation, we will enrich the monetary policy toolbox on an ongoing basis, make good use of structural monetary policy tools, and gradually increase transactions of government bonds in open market operations. The PBOC and the Ministry of Finance (MOF) have established a joint working group, and relevant institutional arrangements will be improved continuously. In terms of policy transmission, we will continue to enhance the transparency of monetary policies, improve the independent pricing capabilities of financial institutions, and heighten consistency with fiscal policies, industrial policies, and regulatory policies, in a bid to achieve a more efficient transmission of monetary policies.

Second, we will provide more adaptive and targeted financial services to support economic restructuring and rebalancing. We will further intensify the macro credit management, continue to promote technology finance, green finance, inclusive finance, old-age finance and digital finance, and step up efforts to provide prime financial services for major national strategies, key areas and weak links. We will continue to build a financial market that is well-regulated, transparent, open, dynamic and resilient, and support developing diversified financing channels.

The high-quality development is inseparable from sci-tech innovation. Modern sci-tech innovation projects are characterized by long investment cycle, huge investment, high risk and uncertainty. They call for diversified financial services. In particular, enterprises in seed stage and start-ups are highly reliant on equity financing. Therefore, active private equity investments (PEs) and venture capitals (VCs) are very important market participants. The PBOC will strengthen communication and cooperation with relevant authorities, improve the financial policies supporting sci-tech innovation, cultivate a financial market ecology that is conducive to sci-tech innovation, so as to continuously enhance the capacity, intensity and quality of financial support for sci-tech innovation.

Third, we will improve the macro-prudential framework and the mechanism for systemic financial risk prevention and resolution. From a macro perspective, we will maintain a right balance between economic growth, economic restructuring and financial risk prevention, improve the system of risk monitoring, early warning and resolution, and enhance the financial stability guarantee system. We will closely watch the economic and financial performance, make timely counter-cyclical adjustments, and preemptively forestall and defuse systemic financial risks.

Fourth, we will build a new and open financial system at a higher level. We will steadily expand the institutional opening-up of financial services and financial markets, expand the connectivity between domestic and overseas financial markets, facilitate trade, investment and financing. In line with the market-driven principle and based on the independent decision-making of market participants, we will make steady and solid progress in advancing RMB internationalization. We will take an active part in global economic and financial governance and cooperation, and promote the balanced and sustainable economic development of China and the world as a whole.

Last but not least, I’d like to wish this forum a complete success! Thank you!

MIL OSI Global Banks –

January 25, 2025
MIL-OSI Banking: Ida Wolden Bache: Monetary policy trade-offs in a small open economy – the case of Norway

Source: Bank for International Settlements

Presentation accompanying the speech

Introduction

Good afternoon. Let me start by thanking the Peterson Institute for the invitation and for giving me the opportunity to address this distinguished audience. It’s a pleasure to be here.

[Chart: The tightening was synchronised across countries]

The tightening of monetary policy by central banks over the past few years has been unprecedented in several respects. By some measures, this has been the most globally synchronised of all tightening episodes in the past half century.

In Norway, as in many other countries, global supply chain disruptions contributed to a rise in prices for a broad range of goods during the pandemic. When pandemic restrictions were lifted, economic activity quickly rebounded. The high level of household saving gave an additional impetus to demand. When Russia invaded Ukraine in February 2022, energy and commodity prices soared. Since Norway is a major exporter of oil and gas, those price increases constituted a positive terms-of-trade shock, and they generated large inflows into the Norwegian government’s sovereign wealth fund, the Government Pension Fund Global. But at the same time, the increases in energy prices contributed to pushing up domestic business costs and spilled over into consumer prices.

[Chart: Policy rate at 4.5% to end of year, according to forecast]

Norges Bank started a gradual normalisation of interest rates in September 2021, and our key policy rate now stands at 4.5 percent. The policy rate forecast in our latest Monetary Policy Report in September implies that the policy rate will remain at 4.5 percent to the end of this year, before being gradually reduced from first quarter 2025.

MIL OSI Global Banks –

January 25, 2025
MIL-OSI Global: RFK Jr.’s pivot to Trump is a journey taken by many populists swept along the left-to-right alternative media pipeline

Source: The Conversation – USA – By Rachel Meade, Lecturer of Political Science, Boston University

When Robert F. Kennedy Jr. ended his independent presidential run in August 2024 and endorsed Republican Donald Trump, it might have seemed a surprising turn of events.

Kennedy began his presidential run as a Democrat and is the scion of a Democratic dynasty. Nephew to former President John F. Kennedy and the son of former Attorney General Robert F. Kennedy, Kennedy spent most of his career as a lawyer representing environmental groups that sued polluting corporations and municipalities.

Yet Kennedy, 70, has long held positions that put him at odds with the Democratic mainstream. He pushes public health misinformation around vaccines and HIV/AIDS, opposes U.S. military involvement in foreign wars, including in Ukraine, and claims that the CIA assassinated his uncle.

Kennedy’s ideologically mixed politics are hard to categorize in traditional left-right terms.

My political science research finds that Kennedy’s journey from left-aligned skepticism into Trumpism is part of a broader trend of contemporary left-to-right populist transformations happening across the United States.

Rise of the populist alternative media

Populism is a political story that presents the good “people” of a nation as in a struggle against its “elites,” who have corrupted democratic institutions to further their own selfish interests. It cuts across the ideological spectrum, often combining left-wing economic critiques with right-wing cultural ones.

Based on my research, I find that Kennedy uses a populist style of speech that matches the rhetoric of today’s online alternative media, also known as the “alternative influence network.”

If populism cuts across the ideological spectrum, so does the alternative media.

This network of politically diverse independent podcasters, YouTube hosts and other creators connects with young, politically disaffected audiences by mixing politics with comedy and pop culture, and presenting themselves as embattled defenders of free thinking – in opposition to mainstream media and mainstream parties.

Top-rated shows include “Breaking Points,” “Stay Free with Russell Brand,” “The Joe Rogan Experience,” The Culture War with Tim Pool and “This Past Weekend w/ Theo Von.”

While many of these shows have been around since the 2010s, the network expanded throughout the Trump era. Their popularity skyrocketed during the COVID-19 pandemic, when public distrust in government, anger over pandemic restrictions and vaccine skepticism surged.

These shows hosted Kennedy frequently throughout his presidential run in 2023 and 2024.

Kennedy finds his audience

I analyzed a set of Kennedy’s appearances for this story. Both Kennedy and alternative media hosts claim to care about “the real issues” facing Americans such as war, corporate and political malfeasance and economic troubles. They condemn the “mainstream” for promoting frivolous “culture war” topics related to race and identity politics.

Kennedy and the alternative media hosts also combine left and right arguments in a typically populist way. They claim that corporations control the government and that liberals and corporations censor free speech.

For example, on a May 2024, episode of “Stay Free with Russell Brand,” Brand asserted that corrupt institutions are backed by the “deep state.” He asked Kennedy how he would fight these powerful interests.

“The major agencies of government have all been captured by the industries they’re supposed to regulate and act as sock puppets serving the mercantile interests of these big corporations,” responded Kennedy. “I have a particular ability to unravel that because I’ve litigated against so many of these agencies.”

My research found that Kennedy often bonded with his alternative media hosts over his perception that liberal media sources – allegedly controlled by the Democratic National Committee or the CIA – were censoring his campaign.

Like Kennedy, alternative media hosts often identify as former or disaffected Democrats. Many used to work at mainstream left news sites, where they say they experienced censorship.

‘This little island of free speech’

In a June 2023 episode of “The Joe Rogan Experience,” Rogan explained that he no longer identifies as a liberal because of the “orthodoxy it preaches” around issues like vaccines. He then cited YouTube’s removal of some of Kennedy’s vaccine-related videos for violating its COVID-19 misinformation policy.

Kennedy had just spent 90 minutes outlining his journey toward vaccine skepticism, which started with meeting a mother who believed vaccines caused her son’s autism.

“If a woman tells you something about her child, you should listen,” he said.

Kennedy also described being convinced by a set of studies that public health officials had ignored.

“Trust the experts is not a function of science, it’s a function of religion,” he said. “I’ve been litigating 40 years; there’s experts on both sides.”

Afterward, he thanked Rogan for maintaining “this little island of free speech in a desert of suppression and of critical thinking.”

Kennedy reiterated this point in the Aug. 23, 2024, speech that ended his campaign, saying the “alternative media” had kept his ideas alive, while the mainstream networks had shut him out despite his historically high third-party poll numbers of 15% to 20%.

“The DNC-allied mainstream media networks maintained a near-perfect embargo on interviews with me,” Kennedy said.

Speaking directly to the reporters in the room, he added, “Your institutions and media made themselves government mouthpieces and stenographers for the organs of power.”

Left-to-right pipeline

Trust in a range of U.S. institutions is at historical lows. Americans on both the right and the left are skeptical of power and crave radical change.

Alternative media hosts tap into this desire, helping to push some disaffected listeners down the same left-to-right pipeline that landed Kennedy in Trump’s orbit.

Trump and his allies are adept at harnessing the power of the alternative media ecosystem. Trump has appeared on male-centric shows like “This Past Weekend w/ Theo Von and ”The Joe Rogan Experience,“ and he founded the alternative social media platform Truth Social.

Trump’s former adviser Steve Bannon hosts an influential podcast called the “War Room” on another MAGA alternative media platform, Rumble. Known for its fiery populist rhetoric, the “War Room” broadcasts live for an astonishing 22 hours a week.

Until recently, Democrats have largely embraced traditional media. During the first months of her 2024 presidential campaign, Vice President Kamala Harris appeared on CBS’ “60 Minutes,” ABC’s “The View” and MSNBC’s “Stephanie Ruhle.”

Then, on Oct. 12, Harris appeared on “Call her Daddy.” Spotify’s second-most popular podcast, it has a young, female audience. Days later, she sat down for an interview with Fox News and is reportedly in talks to appear on Joe Rogan’s show.

Kennedy might approve of all this aisle-crossing.

“Step outside the culture war!” he tweeted in July 2024. “Step outside the politics of hating the other side!”

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

– ref. RFK Jr.’s pivot to Trump is a journey taken by many populists swept along the left-to-right alternative media pipeline – https://theconversation.com/rfk-jr-s-pivot-to-trump-is-a-journey-taken-by-many-populists-swept-along-the-left-to-right-alternative-media-pipeline-236828

MIL OSI – Global Reports –

January 25, 2025
MIL-OSI Global: On foreign policy, Trump opts for disruption and Harris for engagement − but they share some of the same concerns

Source: The Conversation – USA – By Garret Martin, Senior Professorial Lecturer, Co-Director Transatlantic Policy Center, American University School of International Service

Who will represent the U.S. better on the global stage? Justin Sullivan/Getty Images

According to conventional wisdom, U.S. voters are largely motivated by domestic concerns and especially the economy.

But the upcoming presidential election may be somewhat of an outlier. In a September 2024 poll, foreign policy actually ranks quite high in voters’ concerns – with more Democrats and Republicans combined saying it was “very important” to their vote than, say, immigration and abortion.

As such, understanding where Republican presidential nominee Donald Trump and Democratic rival Kamala Harris stand on the significant international issues of the day is important. And we can do so by looking at the records of their respective administrations in the three regions they prioritized: the Indo-Pacific, Europe and the Middle East.

Donald Trump: Disrupter-in-chief

In his 2017 inaugural address, Trump painted a dark picture of the U.S. In his telling, his country was being taken advantage of by other nations, especially in trade and security, while neglecting domestic challenges.

To disrupt this, Trump promised an “America First” approach to guide his administration.

And in practice, his foreign policy certainly proved disruptive. He showed a clear willingness to buck traditions and undid some of former President Barack Obama’s signature policies, such as the Iran nuclear deal, which exchanged sanctions relief for restrictions on Tehran’s domestic nuclear program, and the Trans-Pacific Partnership trade agreement.

In so doing, he ruffled the feathers of allies and foes alike.

Trans-Atlantic relations were tense under Trump, especially because of his hostility toward NATO. After deriding the Atlantic alliance on the campaign trail, Trump stuck to the same tune while in office. He routinely insulted allies at high-level summits and allegedly came close to withdrawing from the alliance altogether in 2018.

While NATO did make inroads in bolstering its Eastern flank in that period, the alliance was primarily defined by internal turmoil and limited cohesion during Trump’s time in office. U.S. relations with the European Union hardly fared better. In 2018, the U.S. imposed steel and aluminum tariffs on the European Union, citing national security concerns.

Trump also broke with previous U.S. presidents in his administration’s Asia policy. One of his first moves in 2017 was to abandon the Trans-Pacific Partnership, a trade deal negotiated by Obama. Trump’s late 2017 national security strategy also announced a major shift toward China, labeling it as a “strategic competitor” – implying a greater emphasis on containing China as opposed to cooperating with it.

This hawkish turn played out especially in the field of trade. Trump’s administration imposed four rounds of tariffs in 2018-19, affecting US$360 billion of Chinese goods. Beijing, of course, responded with tariffs of its own. The two countries did sign a so-called phase-one deal in January 2020 that sought to lower the stakes of this trade war. But the COVID-19 pandemic nullified any chance of success, and relations soured further with each Trump utterance of the pandemic being a “Chinese virus.”

Trump showcased somewhat contradictory impulses toward the Middle East and other issues. He pushed for disengagement and to undo Obama’s major policies. Besides withdrawing from the Paris climate accords in 2017, Trump abandoned the Iran nuclear deal in 2018. His administration also signed a deal to end the U.S. presence in Afghanistan, and it withdrew forces from northern Syria.

But at the same time, Trump continued the bombing campaign against the Islamic State group in Syria and Iraq and authorized the killing of Iranian Gen. Qasem Soleimani in 2020. The latter was consistent with a policy that aimed to pressure and isolate Iran economically and diplomatically. The key example of the diplomatic pressure came through especially via the Abraham Accords through which Trump helped facilitate the establishment of normal diplomatic ties between Israel and the UAE, Bahrain and Morocco.

Kamala Harris: Alliance and engagement

Although not taking a driving role in foreign policy, Harris has been part of an administration that has committed the U.S. to repairing alliances and engaging with the world.

This came across by undoing some major actions from the Trump administration. For example, the U.S. quickly rejoined the Paris climate accords and overturned a decision to leave the World Health Organization.

But in other areas, the Biden administration has shown more continuity with Trump than many expected.

For instance, the U.S. under Biden has not fundamentally deviated from strategic competition with China, even though the tactics have differed a little. The administration maintained Trump’s tariff approach, even adding its own targeted rounds against Beijing on electric vehicles.

Moreover, it cultivated different diplomatic platforms in the Indo-Pacific to act as a counterweight to China. This included the cultivation of the Quad dialogue with Australia, India and Japan, and the AUKUS deal with Australia and the U.K., both of which attempted to further the Biden administration’s strategy of containing China’s influence by enlisting regional allies. Finally, the Biden administration did maintain some channels of communication with China at the highest level as well, with Biden meeting Xi Jinping twice during his presidency.

Ukraine President Volodymyr Zelenskyy walks alongside Vice President Kamala Harris at the White House compound on Sept. 26, 2024.
Tom Brenner/Getty Images

The Biden administration’s Middle Eastern policy displayed significant continuity with Trump’s approach – at first. While it turned out to be chaotic, the U.S. completed the withdrawal of its troops from Afghanistan in summer 2021, as had been agreed under Trump. The Biden administration also embraced the format and goals of the Abraham Accords. It even tried to build on them, with the goal of fostering Israeli-Saudi diplomatic ties.

Of course, the attacks of Oct. 7, 2023, in Israel completely changed the equation in the Middle East. Preventing the spiral of violence in the region has become an all-consuming task. Since then, Biden and Harris have tried, largely unsuccessfully, to balance support for Israel with mediation efforts to liberate the hostages and to ensure a cease-fire.

Trans-Atlantic relations, however, are an area where there were marked differences in the past four years. The tone of the Biden-Harris administration has been in sharp contrast with that of Trump, reaffirming frequently its clear commitment to NATO. And once Russia launched its illegal invasion in February 2022, the U.S. placed itself at the forefront of supporting Ukraine.

Harris has suggested that she would continue Biden’s policy of providing Kyiv with extensive and continuous military support. In conjunction with allies, the White House of Biden and Harris also implemented a broad range of sanctions against Russia. But the U.S. under Biden has not yet been willing to support Ukraine’s immediate entry into NATO.

What next?

Based on their records, what could we expect of a Trump or Harris presidency?

It’s unlikely either candidate will abandon strategic competition with China. But Trump is more likely to seriously escalate the trade war, promising extensive tariffs against Beijing. Trump’s commitment to defending Taiwan is also more ambiguous in comparison with Harris’ pledges.

U.S. policy toward Europe will largely depend on the results of the election. Harris has frequently underlined her steadfast support for NATO, as well as for Ukraine. Trump, on the other hand, is showing signs that he is unwilling to further aid the regime in Kyiv.

And for the Middle East, it remains to be seen whether either Trump or Harris would be able to better shape events in the region.

Garret Martin receives funding from the European Union for the research institute he co-directs, the Transatlantic Policy Center.

– ref. On foreign policy, Trump opts for disruption and Harris for engagement − but they share some of the same concerns – https://theconversation.com/on-foreign-policy-trump-opts-for-disruption-and-harris-for-engagement-but-they-share-some-of-the-same-concerns-238847

MIL OSI – Global Reports –

January 25, 2025
MIL-OSI Global: For an estimated 4 million people with felony convictions, restoring their right to vote is complicated – and varies state by state

Source: The Conversation – USA – By Naomi F. Sugie, Associate Professor of Sociology, University of California, Los Angeles

Desmond Meade, right, registers to vote in Florida on Jan. 8, 2019. after completing his sentence on a federal conviction. Phelan M. Ebenhack for The Washington Post via Getty Images

People who are convicted of felonies might think they can’t vote.

Even in California, where they do have the right to vote, people convicted of felonies cite cases in Florida and Texas where people with felonies who have completed their sentences have been arrested and sentenced to prison for trying to vote illegally.

It’s almost an article of faith that a person loses their right to vote once they have been convicted.

But that’s not universally true.

Since 1997, 26 states and Washington have passed reforms that have expanded voting eligibility to over 2 million people with felony convictions.

The reforms reflect the growing recognition by some politicians that felony disenfranchisement laws often excluded people from voting long after they served their sentences. Rooted in historical racism that restricted access to the ballot box, these laws are at odds with the idea that punishment should end after someone completes their sentence.

But with these reforms comes a new challenge – ensuring that people who have the right to vote are aware that they can.

Different states, different laws

A popular assumption among the general public, and even among those convicted of felonies, is that they can’t vote for life.

During our research, we conducted interviews and focus groups with 137 people, as well as text message conversations with over 1,800 people across five states (California, Michigan, Ohio, Pennsylvania and Texas). Delia, a 40-year-old Hispanic woman in Texas, explained: “It’s very confusing on purpose. The majority of people that I know, who get booked in and are going to jail, one of the biggest things is, you can’t ever vote again. Right. And so, that’s what I believed.”

Laws on felony disenfranchisement vary by state]. In some instances, people with convictions can still vote while they are serving time in Maine, Vermont and Washington, D.C.

Florida Gov. Ron DeSantis announced on Oct. 18, 2022, that the state’s new Office of Election Crimes and Security was in the process of arresting 20 individuals for voter fraud.
Joe Raedle/Getty Images

According to the National Conference of State Legislatures, those convicted of felonies have their rights automatically restored in 23 states when released from prison. But in 10 other states, those convicted of certain felonies can lose rights indefinitely or require a governor’s pardon for voting rights to be restored.

Making matters even more confusing is that state laws make different distinctions on who can and cannot vote. In some cases, the distinctions are based on whether the conviction was a felony or misdemeanor.

Other states distinguish between the timing of the end of imprisonment, parole or probation – and whether all fines and fees have been paid.

The Florida eligibility question

In 2018, for example, Florida voters approved a ballot initiative that “restores the voting rights of Floridians with felony convictions after they complete all terms of their sentence including parole or probation.”

Known as Amendment 4, the measure excluded people who committed murder or a felony sex offense.

But before the measure went into effect, a legal dispute arose over the definition of what it meant to complete a sentence. In 2019, Florida’s Republican-controlled Legislature passed a law that required payment of outstanding fees and fines before a person convicted of a felony conviction could regain their voting rights.

Though the American Civil Liberties Union challenged the constitutionality of the law in court, a federal appellate court backed the Republican lawmakers.

As a result, an estimated 730,000 Floridians who have completed their sentences remain disenfranchised.

Extending voting rights

Over the past nearly 30 years, many states have moved to make it easier for those convicted of felonies to regain their voting rights, starting in 1997 in Texas, where lawmakers eliminated a two-year waiting period before a person convicted of a felony regained their right to vote.

As a result, the number of people with felonies who had lost their right to vote dropped from a high of 6.1 million in 2016 to an estimated 4 million in this election, according to the Sentencing Project. During the U.S. presidential election in 2020, that number was 5.2 million.

So far in 2024 alone, officials in three states have tinkered with their laws on voter eligibility requirements for people convicted of felonies.

In Virginia, lawmakers approved on April 5 a new law that allows registered voters who are imprisoned while awaiting trial or have been convicted of a misdemeanor to vote by absentee ballot.

A month later, in May, Oklahoma lawmakers clarified their existing laws by passing a measure that allows people convicted of felonies to vote under certain conditions, such as receiving a pardon or a reduction of their felony conviction to a lesser misdemeanor.

Though passed by state lawmakers in April 2024, the Nebraska Supreme Court ruled on Oct. 16 that the new law could take effect. The law eliminates the two-year waiting period following the completion of a prison sentence before voting rights could be restored.

Increasing voter turnout

Numerous studies of those with felony convictions have shown that they believe the voting process is unclear and confusing.

In our study of voting behavior of people with convictions, we interviewed Raymond, a 49-year-old Black man in Michigan. When asked about the process of registering to vote, he told us: “I ain’t going to say scary, but it was unfamiliar. It can be overwhelming for people who don’t want to do it. You don’t know where to go, you don’t know who to really vote for.”

To get the word out to newly eligible voters, community organizations across the U.S. have launched grassroots operations to inform people with convictions of their voting rights and help guide them through the registration process.

As part of that effort, community organizations such as Alliance for Safety and Justice and TimeDone are working with academic researchers to further understand how different methods of outreach can increase voter turnout among people with felony convictions.

With many people newly eligible to vote in their first presidential election this year, I believe providing them with accurate information about voting and their state’s felony voting laws is critical to ensuring that the idea of a second chance includes the right to vote.

Naomi F. Sugie receives funding from the National Science Foundation, National Endowment for the Humanities, Council on Library and Information Resources, Orange County, Alliance for Safety and Justice, Crankstart, and Public Agenda.

– ref. For an estimated 4 million people with felony convictions, restoring their right to vote is complicated – and varies state by state – https://theconversation.com/for-an-estimated-4-million-people-with-felony-convictions-restoring-their-right-to-vote-is-complicated-and-varies-state-by-state-239681

MIL OSI – Global Reports –

January 25, 2025
MIL-OSI Global: How Trump’s racist talk of immigrant ‘bad genes’ echoes some of the last century’s darkest ideas about eugenics

Source: The Conversation – USA – By Shannon Bow O’Brien, Associate Professor of Instruction, The University of Texas at Austin

Donald Trump speaks at Madison Square Garden in New York on Oct. 27, 2024. John Salangsang/Invision/AP

Republican presidential nominee Donald Trump has repeatedly denounced immigrants who enter the U.S. illegally and the danger he says that poor immigrants of color pose for the U.S. – often using hateful language to make his point.

In early October 2024, Trump took his comments a step further when he questioned immigrants’ faulty genes, saying without support that “Many of them murdered far more than one person, and they are now happily living in the United States. You know, now a murderer, I believe this, it’s in their genes. And we got a lot of bad genes in our country right now.”

It was far from the first time Trump has invoked eugenics – a false, racist theory that some people, and even some races, are genetically superior to others.

In 1988, for example, Trump told Oprah Winfrey during an interview: “You have to be born lucky in the sense that you have to have the right genes.”

In 2016, Trump said that his German roots are the reason behind his greatness:

“I always said that winning is somewhat, maybe, innate. Maybe it’s just something you have; you have the winning gene. Frankly it would be wonderful if you could develop it, but I’m not so sure you can. You know, I’m proud to have that German blood, there’s no question about it. Great stuff.”

And in 2020, Trump again alluded to his belief that bloodlines convey excellence:

“I had an uncle who went to MIT who is a top professor. Dr. John Trump. A genius. It’s in my blood. I’m smart.”

Trump’s repeated and countless comments about white people’s racial superiority to people of color have prompted some comparisons to the Nazis and their ideology of racial superiority.

The Nazis are indeed the most infamous believers of the false idea that white, blue-eyed, blonde-haired people were superior to others – and that the human population should be selectively managed to breed white people.

But the Nazis didn’t originate these ideas. In fact, the Nazis were so impressed with many American eugenic ideas that they incorporated them into their racist, antisemitic laws.

Root of eugenics

The British scientist Francis Galton, a cousin of the evolutionist Charles Darwin, first developed the theory of eugenics in the 1860s, and it gained a foothold in the U.S. and Britain around this time.

Eugenics sets racial identity, and especially white identity, as the most desirable and worthy.

By the dawn of the early 1900s, much of the American eugenics scholarship looked down on American immigrants from any place other than Scandinavia, thus coining the term “Nordicism.”

In the late 19th and early 20th century, immigration to the U.S. was at its peak. In 1890, 14.8% of people living in the U.S. were immigrants. Many people felt concerned about immigration in the U.S., and there were many prominent eugenicists in America. Two of the most famous were Madison Grant and Lothrop Stoddard.

Both were avowed white supremacists who advocated for scientific racism. They wrote popular and widely read books that helped shape American and German law in the 1920s and 1930s.

Grant, Stoddard and other theorists in the U.S. embraced eugenics as a way to justify racial segregation, restrict immigration, enforce sterilization and uphold other systemic inequalities.

Stoddard attacked the United States’ immigration policies in his 1920 book, “The Rising Tide of Color: The Threat Against White World-Supremacy.” He wrote: “If the present drift is not changed, we whites are all ultimately doomed. … We now know that men are not, and never will be equal. We now know that environment and education can only develop what heredity brings.”

Another prominent eugenicist was Harry H. Laughlin, an educator and superintendent of the Eugenics Record Office, a now-defunct research group that gathered biological and social information about the American population.

Laughlin wrote an influential 1922 book, “Eugenical Sterilization in the United States,” which included a chapter on model sterilization laws. The Third Reich used his book and laws as a template when implementing them in Germany during the height of the Nazi period.

Laughlin also regularly testified before U.S. Congress, with this 1922 testimony representative of his message to lawmakers: “Immigration is essentially and fundamentally a racial and biological problem. There are many factors to consider, but, from the standpoint of the future, immigration is primarily a long time national investment in human family stocks.”

Eugenicists, including Laughlin, have long been specifically preoccupied with Norwegian genetics – believing that America is under attack when immigration occurs from non-Nordic countries.

In November 1922, Laughlin said, “Some of our finest and most desirable immigrants are from Norway.”

In 1924, Congress approved the Immigration Act, which severely limited immigration to the U.S., established quotas for immigrants based on nationality and barred immigrants from Asia.

It was only following the end of World War II and the Holocaust that eugenics fell out of favor and lost its prominence in American thinking.

Trump’s recycling of history

Fears over foreign immigrants weakening the U.S. were popular a century ago, and Trump and many of his followers still embrace them today.

Trump has promised that he will carry out mass deportations of immigrants living in the U.S. illegally, forcibly detaining immigrants in camps and removing 1 million people a year.

In April 2024, Trump used dehumanizing language to express his apparent belief that immigrants are unworthy of empathy. “The Democrats say, ‘Please don’t call them animals. They’re humans.’ I said, ‘No, they’re not humans, they’re not humans, they’re animals.’”

Trump has also promoted eugenicists’ obsession with Scandinavia and the superiority of white people.

In 2018, Trump spoke about immigrants from Haiti, El Salvador and Africa, saying “Why are we having all these people from shithole countries come here?”

In the same meeting, Trump also reportedly suggested that the U.S. should instead draw in more people from countries like Norway.

In April 2024, Trump again embraced this idea of Scandinavian superiority, saying that he wants immigrants from “Nice countries. You know, like Denmark, Switzerland? Do we have any people coming in from Denmark? How about Switzerland? How about Norway?”

A dangerous flash to the past

A person running for president in 1924 would seem more likely than a candidate in 2024 to espouse this now-discredited point of view.

President Calvin Coolidge ran for election on an “America First” platform in 1924, with the slogan only falling out of favor after groups like the Ku Klux Klan embraced it around the same time.

The idea of America First, at the time, denoted American nationalism and exceptionalism – but also was linked to anti-immigration and fascist movements.

When Coolidge signed the heavily restrictive 1924 Immigration Act into law he stated, “America must remain American.”

One hundred years later, Trump calls to mind an America First mentality, including when he regularly reads the lyrics to a song called “The Snake” during his rallies as a way to explain the dangers of welcoming immigrants into the U.S. The civil rights activist Oscar Brown wrote this poem in 1963, and his family has said that Trump misinterprets the song’s words.

‘I saved you,’ cried that woman.

‘And you’ve bit me even, why’

‘You know your bite is poisonous and now I’m going to die.’

‘Oh shut up, silly woman,’ said the reptile with a grin,

‘You knew damn well I was a snake before you took me in.’

I have written a book on this and I used many of my citations in Chapter 4 to help develop this piece though I reworded or reframed it.

– ref. How Trump’s racist talk of immigrant ‘bad genes’ echoes some of the last century’s darkest ideas about eugenics – https://theconversation.com/how-trumps-racist-talk-of-immigrant-bad-genes-echoes-some-of-the-last-centurys-darkest-ideas-about-eugenics-241548

MIL OSI – Global Reports –

January 25, 2025
MIL-OSI Global: Grow fast, die young? Animals that invest in building high-quality biomaterials may slow aging and increase their lifespans

Source: The Conversation – USA – By Chen Hou, Associate Professor of Biology, Missouri University of Science and Technology

Allocating more energy for growth versus for maintenance comes with longevity trade-offs. Matthias Clamer/Stone via Getty Images

Fancy, high-quality products such as Rolex watches and Red Wing boots often cost more to make but last longer. This is a principle that manufacturers and customers are familiar with. But while this also applies to biology, scientists rarely discuss it.

Researchers have known for decades that the faster an animal grows, the shorter its lifespan, at least among mammals. This holds across species of different sizes. Ecophysiologists like me have been studying the trade-offs between allocating energy for growth or for maintenance, and how those trade-offs affect aging and lifespan.

One explanation is that since animals have a limited amount of energy available, investing more energy in growth will reduce the energy they have left to maintain their health, therefore leading to faster aging.

Another explanation is based on the observation that metabolism – all the physical and chemical processes that convert or use energy – fuels growth. Some researchers have suggested that fast growth is associated with high metabolism, in turn causing stress that speeds up aging.

However, these two explanations may not capture the whole picture of the trade-off between growth and longevity. For example, certain species allocate a larger fraction of their energy to maintenance but don’t have better resistance to stress than species that allocate less energy to those processes. This finding indicates that the amount of energy allocated to maintenance may not be the only thing that determines its quality.

Meanwhile, I found that this negative association still strongly holds even after accounting for metabolic rate. That means the higher metabolism associated with faster growth cannot completely explain faster aging. There had to be other missing links to consider.

What have scientists overlooked? My recently published research suggests that the energy cost it takes to make biological materials, or the biosynthetic cost, also affects lifespan.

Whales have some of the longest lifespans among mammals.
lisabskelton/iStock via Getty Images Plus

Cost of making biomass

It costs energy to make biological materials, or biomass, such as assembling individual amino acids into whole proteins. It also costs energy to check newly synthesized materials for errors, break down and rebuild materials with errors, and transport finished materials to where they need to be.

To measure the energy investment in building biomass across species, I derived a mathematical relationship between biosynthetic cost and rates of growth and metabolism. I based my equation on the first principle of energy conservation, which states that energy is neither created nor destroyed, and data on the growth and metabolism rates of different mammals routinely measured by other researchers in the field.

While researchers previously believed that the cost of synthesizing new biomass was the same across species, my analysis of data from 139 different animals found that there is a great difference in biosynthetic cost between species. For example, a naked mole rat has a biosynthetic cost that is over three times as that of a mouse with the same body mass. While the naked mole rat has a lifespan of 30 years, the mouse’s lifespan is only two to three years.

My findings suggest that some species spend more energy than others to make one unit of biomass. This is perhaps partially due to living in a more dangerous environment. Animals that grow faster are more likely to reach reproductive maturity than animals that grow more slowly, but the price to pay is low-quality biomaterials.

Biosynthetic cost and aging

If everything else is kept the same, the more expensive growth is, the lower the growth rate will be. But how does this energy cost contribute to the aging process?

I used what I call a cost-quality hypothesis to answer this question. At the cellular level, biosynthetic cost is in part determined by the cell’s tolerance for errors in making materials. Take proteins as an example. Research has repeatedly suggested that protein homeostasis – the collective processes that maintain protein level, structure and function – plays a key role in the aging process. In simple terms, the accumulation of proteins with errors leads to aging.

Protein synthesis and folding is imperfect. Researchers have estimated that 20% to 30% of new proteins are rapidly degraded after they’re made due to errors. Different species have different degrees of error tolerance and protein quality control. For example, the mouse proteome has two- to tenfold higher levels of proteins with incorrect amino acids relative to the proteome of naked mole rats.

Let’s consider two species, where one is picky about protein errors and the other not so much. The picky species will break down and remake a protein when it finds an error, constantly using protein quality control mechanisms to proofread, quickly unfold and refold, degrade or resynthesize proteins. Not only do these processes cost energy, they also slow down an animal’s overall biomass growth rate. A pickier species would spend more energy for a unit of net new biomass synthesized than a species with high tolerance, growing more slowly overall.

On the other hand, a species with higher tolerance to errors would have a lower biosynthetic cost because it would just incorporate the faulty protein into their new biomass. Because this species can function with faulty proteins, it is more resistant to stress and therefore lives longer.

Naked mole rats live the longest among rodents – their lifespans can push past 30 years.
Tennessee Witney/iStock via Getty Images Plus

Making things last

An animal’s ability to maintain homeostasis not only depends on the amount of energy it allocates to maintenance but also on the quality of the tissue it produces. And the quality of that tissue is at least partially due to the energy it invests in making biomass.

In other words, fancy stuff costs more to make but lasts longer.

My hope is that these results could be used as a framework to investigate how differences in a person’s development and growth rate affect their health, risk for aging-related diseases and lifespan. It also opens a door to a new research area: Could we manipulate the mechanisms that determine the energetic cost of biosynthesis and slow aging?

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

– ref. Grow fast, die young? Animals that invest in building high-quality biomaterials may slow aging and increase their lifespans – https://theconversation.com/grow-fast-die-young-animals-that-invest-in-building-high-quality-biomaterials-may-slow-aging-and-increase-their-lifespans-240517

MIL OSI – Global Reports –

January 25, 2025

Category: housing

Dmitry Patrushev took part in the keel-laying ceremony of the research expedition vessel Ivan Frolov in St. Petersburg

Keel-laying ceremony of the research expedition vessel “Ivan Frolov”

Keel-laying ceremony of the research expedition vessel “Ivan Frolov” in St. Petersburg

Dmitry Patrushev took part in the keel-laying ceremony of the research expedition vessel Ivan Frolov in St. Petersburg

Minister of Natural Resources and Environment Alexander Kozlov took part in the keel-laying ceremony of the research expedition vessel Ivan Frolov in St. Petersburg

Keel-laying ceremony of the research expedition vessel “Ivan Frolov”

Keel-laying ceremony of the research expedition vessel “Ivan Frolov”

Keel-laying ceremony of the research expedition vessel “Ivan Frolov”

Keel-laying ceremony of the research expedition vessel “Ivan Frolov”

I. Progress in implementing a package of incremental monetary policies

II. The right balance and high-quality development of the Chinese economy

III. The positive role the PBOC plays in serving high-quality development of the economy

Introduction

Rise of the populist alternative media

Kennedy finds his audience

‘This little island of free speech’

Left-to-right pipeline

Donald Trump: Disrupter-in-chief

Kamala Harris: Alliance and engagement

What next?

Different states, different laws

The Florida eligibility question

Extending voting rights

Increasing voter turnout

Root of eugenics

Trump’s recycling of history

A dangerous flash to the past

Cost of making biomass

Biosynthetic cost and aging

Making things last