housing – Page 1268 – NewzIntel.com

MIL-OSI USA: West Virginians Have One Week Left to Apply for FEMA Assistance

Source: US Federal Emergency Management Agency

Headline: West Virginians Have One Week Left to Apply for FEMA Assistance

West Virginians Have One Week Left to Apply for FEMA Assistance

Oct. 24, 2024DR-4787-WV NR-014FEMA News Desk: 215-931-5597FEMAR3NewsDesk@fema.dhs.govNews releaseWest Virginians Have One Week Left to Apply for FEMA AssistanceCHARLESTON, W.Va. – Residents in Boone, Hancock, Kanawha, Marshall, Ohio, Roane, Wetzel and Wood counties have one week left to apply for FEMA Assistance for damages sustained during the severe storm of April 11-12, 2024. The deadline to apply is SATURDAY, NOV. 2.FEMA assistance for individuals and families affected by the flooding can cover home repairs, personal property losses and other disaster-related needs not covered by insurance.Residents may apply online at DisasterAssistance.gov or by phone at 800-621-3362. The toll-free telephone line operates from 7 a.m. to 11 p.m. If you use a relay service, such as video relay service (VRS), captioned telephone service or others, give FEMA the number for that service.Nov. 2 is also the deadline to apply for a U.S. Small Business Administration disaster loan. Residents can do so—and get more information –online at sba.gov/disaster. They can also call SBA’s Customer Service Center at (800) 659-2955, or email disastercustomerservice@sba.gov for more information on SBA disaster assistance.For more information on West Virginia’s disaster recovery, visit emd.wv.gov, West Virginia Emergency Management Division Facebook page,www.fema.gov/disaster/4787 and www.facebook.com/FEMA.###FEMA’s mission is helping people before, during and after disasters. FEMA Region 3’s jurisdiction includes Delaware, the District of Columbia, Maryland, Pennsylvania, Virginia and West Virginia.Follow us on X at x.com/FEMAregion3 and on LinkedIn at linkedin.com/company/femaregion3Disaster recovery assistance is available without regard to race, color, religion, nationality, sex, age, disability, English proficiency, or economic status. If you or someone you know has been discriminated against, call FEMA toll-free at 833-285-7448. If you use a relay service, such as video relay service (VRS), captioned telephone service or others, give FEMA the number for that service. Multilingual operators are available (press 2 for Spanish and 3 for other languages).
issa.mansaray
Thu, 10/24/2024 – 15:15

MIL OSI USA News –

January 25, 2025

MIL-OSI: Cegedim: Revenue growth continued in the third quarter of 2024

Source: GlobeNewswire (MIL-OSI)

PRESS RELEASE

Quarterly financial information as of September 30, 2024
IFRS – Regulated information – Not audited

Cegedim: Revenue growth continued in the third quarter of 2024

Revenue of €156.8 million in Q3 2024, up 5.7%
Marketing, BPO, HR, and cloud businesses led the way
Revenue for the first nine months of 2024 grew 5.9% to €475.8 million

Boulogne-Billancourt, France, October 24, 2024, after the market close.
Revenue

	Third quarter				Change Q3 2024 / 2023
in millions of euros	*2024*	*2023* *reclassified*⁽¹⁾	*Reclassification*⁽¹⁾	*2023* *Reported*	*Reported* *vs. reclassified*⁽¹⁾	*Like for like⁽²⁾⁽³⁾ vs. reclassified*⁽¹⁾
Software & Services	75.6	76.0	-4.8	80.8	-0.5%	-4.2%
Flow	23.7	22.4	-0.4	22.8	5.5%	5.4%
Data & Marketing	28.2	24.1	0.0	24.1	17.0%	17.1%
BPO	21.6	19.0	0.0	19.0	13.9%	13.9%
Cloud & Support	7.7	6.8	+5.2	1.6	12.5%	12.5%
Cegedim	156.8	148.3	0.0	148.3	5.7%	3.8%

	First 9 months				Change 9M 2023 / 2022
in millions of euros	*2024*	*2023* *reclassified*⁽¹⁾	*Reclassification*⁽¹⁾	*2023* *Reported*	*Reported* *vs. reclassified*⁽¹⁾	*Like for like⁽²⁾⁽⁴⁾ vs. reclassified*⁽¹⁾
Software & Services	227.7	226.6	-15.7	242.3	0.5%	-2.6%
Flow	73.2	69.2	-1.8	71.0	5.7%	5.6%
Data & Marketing	87.5	79.0	0.0	79.0	10.8%	10.8%
BPO	61.5	51.8	0.0	51.8	18.8%	18.8%
Cloud & Support	25.8	22.6	+17.5	5.1	13.9%	13.9%
Cegedim	475.8	449.3	0.0	449.3	5.9%	4.3%

Cegedim posted consolidated third quarter revenues up 5.7% as reported and 3.8% like for like⁽²⁾ compared with the same period in 2023. Revenues to end-September rose 5.9% as reported and 4.3% like for like compared with 9M 2023. Marketing, BPO, HR, and cloud businesses all delivered solid growth in the third quarter. As expected, the Software & Services division felt the impact of comparisons with Ségur public health investment spending in 2023 and a slowdown in international sales owing to the decision to refocus the Group’s UK doctor software activities on Scotland.
Analysis of business trends by division

Software & Services

Software & Services	Third quarter		Change Q3 2024 / 2023		First 9 months		Change 9M 2024 / 2023
in millions of euros	*2024*	*2023 reclassified*⁽³⁾	*Reported vs. reclassified*⁽¹⁾	*Like for like⁽²⁾ vs.* *reclassified*⁽¹⁾	*2024*	*2023* *reclassified*⁽¹⁾	*Reported vs. reclassified*⁽¹⁾	*Like for like⁽²⁾ vs.* *reclassified*⁽¹⁾
Cegedim Santé	20.1	18.6	8.0%	-6.2%	58.9	58.4	0.9%	-9.8%
Insurance, HR, Pharmacies, and other services	42.7	43.9	-2.7%	-2.7%	129.5	128.4	0.9%	0.8%
International businesses	12.8	13.5	-5.0%	-6.1%	39.3	39.8	-1.3%	-2.8%
Software & Services	75.6	76.0	-0.5%	-4.2%	227.7	226.6	0.5%	-2.6%

Revenues at Cegedim Santé grew 8.0% as reported in the third quarter but fell 6.2% like for like. We did not fully meet our 2024 goal of offsetting last year’s Ségur impact and keeping like-for-like sales stable, but we are closing the gap with each quarter. Reported growth figures include Visiodent as of March 1, 2024. Visiodent’s gradual transition to Cegedim Group products for scheduling, databases, and so on is generating internal sales, which do not appear in the consolidated scope.

Other French subsidiaries had a challenging quarter, with revenues down 2.7%. We saw positive growth at our insurance businesses, thanks to robust project-based sales, and in HR, which is still getting a boost from its client diversification strategy. Conversely, the €2 million in Ségur public health investment subsidies we recorded in Q3 2023 made for a demanding comparison in the pharmacy business, where equipment sales also flagged after accelerating last year.

Internationally, revenues from software sales to UK doctors declined, as expected, following the decision to refocus the activity on Scotland.

Flow

Flow	Third quarter		Change Q3 2024 / 2023		First 9 months		Change 9M 2024 / 2023
in millions of euros	*2024*	*2023* *reclassified*⁽¹⁾	*Reported vs. reclassified*⁽¹⁾	*Like for like⁽²⁾ vs. reclassified*⁽¹⁾	*2024*	*2023 reclassified*⁽¹⁾	*Reported vs. reclassified*⁽¹⁾	*Like for like⁽²⁾ vs. reclassified*⁽¹⁾
e-business	13.5	13.5	-0.2%	-0.4%	43.5	41.3	5.1%	4.8%
Third-party payer	10.2	8.9	14.3%	14.3%	29.7	27.9	6.7%	6.7%
Flow	23.7	22.4	5.5%	5.4%	73.2	69.2	5.7%	5.6%

Third-quarter growth in e-business, e-invoicing, and digitized data exchanges was nearly flat, at -0.2%. Healthcare flows offset a relative slowdown in the Invoicing & Procurement segment, which last year enjoyed sustained growth in France ahead of the e-invoicing reform scheduled to take effect July 1, 2024, but which has since been postponed to September 2026.

The digital data flow business dealing with reimbursement of healthcare payments in France (Third-party payer) experienced 14.3% yoy growth in Q3. It was boosted by strong growth in demand for its fraud and long-term illness detection offerings.

Data & Marketing

Data & Marketing	Third quarter		Change Q3 2024 / 2023		First 9 months		Change 9M 2024 / 2023
in millions of euros	*2024*	*2023 reclassified*⁽¹⁾	*Reported vs. reclassified*⁽¹⁾	*Like for like⁽²⁾ vs. reclassified*⁽¹⁾	*2024*	*2023 reclassified*⁽¹⁾	*Reported vs. reclassified*⁽¹⁾	*Like for like⁽²⁾ vs. reclassified*⁽¹⁾
Data	15.1	14.6	3.4%	3.4%	43.1	43.4	-0.7%	-0.7%
Marketing	13.1	9.5	38.0%	38.0%	44.4	35.6	24.8%	24.8%
Data & Marketing	28.2	24.1	17.0%	17.1%	87.5	79.0	10.8%	10.8%

Data business posted 3.4% yoy growth in the third quarter, resulting in nearly stable growth over nine months. Growth was led by French sales, which were more dynamic than international sales.

The Marketing segment had a record third quarter, up 38% owing to special ad campaigns during the Olympics. The rising popularity of our phygital media offerings in pharmacies helped the segment post 24.8% growth over the first nine months.

BPO

BPO	Third quarter		Change Q3 2024 / 2023		First 9 months		Change 9M 2024 / 2023
in millions of euros	*2024*	*2023 reclassified*⁽¹⁾	*Reported vs. reclassified*⁽¹⁾	*Like for like⁽²⁾ vs. reclassified*⁽¹⁾	*2024*	*2023 reclassified*⁽¹⁾	*Reported vs. reclassified*⁽¹⁾	*Like for like⁽²⁾ vs. reclassified*
Insurance BPO	15.9	13.8	15.7%	15.7%	44.6	35.9	24.2%	24.2%
Business Services BPO	5.7	5.2	+9.2%	+9.2%	16.9	15.9	6.5%	6.5%
BPO	21.6	19.0	13.9%	13.9%	61.5	51.8	18.8%	18.8%

The Insurance BPO business grew by more than 15.7% over the third quarter, chiefly owing to its overflow business, which has been flourishing since the start of the year. Growth over nine months amounted to 24.2%, partly thanks to a favorable comparison stemming from the April 1, 2023, launch of the Allianz contract.

Business Services BPO (HR and digitalization) continues to report strong growth, up 9.2% yoy over the quarter on the back of a popular compliance offering and new clients.

Cloud & Support

Cloud & Support	Third quarter		Change Q3 2024 / 2023		First 9 months		Change 9M 2024 / 2023
in millions of euros	*2024*	*2023* *reclassified*⁽⁴⁾	*Reported vs. reclassified*⁽¹⁾	*Like for like⁽²⁾ vs.* *reclassified*⁽¹⁾	*2024*	*2023* *reclassified*⁽¹⁾	*Reported vs. reclassified*⁽¹⁾	*Like for like⁽²⁾ vs.* *reclassified*⁽¹⁾
Cloud & Support	7.7	6.8	12.5%	12.5%	25.8	22.6	13.9%	13.9%

The Cloud & Support division’s trajectory continued over the third quarter, with growth of 12.5% reflecting our expanded range of sovereign cloud-backed products and services.

Highlights

Apart from the items cited below, to the best of the company’s knowledge, there were no events or changes during Q3 2024 that would materially alter the Group’s financial situation.

• New financing arrangement

On July 31, 2024, Cegedim announced that it had secured a new financing arrangement consisting of a €230 million syndicated loan. The arrangement is split into €180 million of lines drawn upon closing to refinance the Group’s existing debt (RCF and Euro PP, which were to mature in October 2024 and October 2025 respectively) and an additional, undrawn revolving credit facility (RCF) of €50 million. This new financing arrangement will bolster the Group’s liquidity and extend the maturity of its debt to, respectively, 5 years (€30 million, payments every six months); 6 years (€60 million, repayable upon maturity); and 7 years (€90 million, repayable upon maturity).

Significant transactions and events post September 30, 2024

To the best of the company’s knowledge, there were no post-closing events or changes after September 30, 2024, that would materially alter the Group’s financial situation.

Outlook

Based on the currently available information, the Group expects 2024 like-for-like revenue⁽¹⁾ growth to be towards the lower end of the 5-8% range relative to 2023. That said, we still expect recurring operating income to continue to improve.
These targets are not forecasts and may need to be revised if there is a significant worsening of geopolitical, macroeconomic, or currency risks.

—————

Webcast on October 24, 2024, at 6:15 pm (Paris time)

The webcast is available at: www.cegedim.fr/webcast

The Q3 2024 revenue presentation is available here:
https://www.cegedim.fr/documentation/Pages/presentation.aspx

Financial calendar:

2025

January 29 after the close

March 27 after the close

March 28 at 10:00 am

April 24 after the close

June 13 at 9:30

July 24 after the close

September 25 after the close

September 26 at 10:00 am

October 23 after the close

2024 revenue

2024 results

SFAF meeting

Q1 2025 revenue

Shareholders’ general meeting

H1 2025 revenue

H1 2025 results

SFAF meeting

Q3 2025 revenue

Financial calendar: https://www.cegedim.fr/finance/agenda/Pages/default.aspx

Disclaimer
This press release is available in French and in English. In the event of any difference between the two versions, the original French version takes precedence. This press release may contain inside information. It was sent to Cegedim’s authorized distributor on October 24, 2024, no earlier than 5:45 pm Paris time.
The figures cited in this press release include guidance on Cegedim’s future financial performance targets. This forward-looking information is based on the opinions and assumptions of the Group’s senior management at the time this press release is issued and naturally entails risks and uncertainty. For more information on the risks facing Cegedim, please refer to Chapter 7, “Risk management”, section 7.2, “Risk factors and insurance”, and Chapter 3, “Overview of the financial year”, section 3.6, “Outlook”, of the 2023 Universal Registration Document filled with the AMF on April 3, 2024, under number D.24-0233.

About Cegedim:
Founded in 1969, Cegedim is an innovative technology and services group in the field of digital data flow management for healthcare ecosystems and B2B, and a business software publisher for healthcare and insurance professionals. Cegedim employs more than 6,500 people in more than 10 countries and generated revenue of €616 million in 2023.
Cegedim SA is listed in Paris (EURONEXT: CGM).
To learn more please visit: www.cegedim.fr
And follow Cegedim on X: @CegedimGroup, LinkedIn, and Facebook.

Aude Balleydier
Cegedim
Media Relations
and Communications Manager

Tel.: +33 (0)1 49 09 68 81
aude.balleydier@cegedim.fr

Damien Buffet
Cegedim
Head of Financial
Communication

Tel.: +33 (0)7 64 63 55 73
damien.buffet@cegedim.com

Céline Pardo
Becoming RP Agency
Media Relations Consultant

Tel.: +33 (0)6 52 08 13 66
cegedim@becoming-group.com

Annexes

Breakdown of revenue by quarter and division

Year 2024

In € million	Q1	Q2	Q3		Q4	Total
Software & Services	74.3	77.8		75.6		227.7
Flow	25.3	24.2		23.7		73.2
Data & Marketing	27.0	32.3		28.2		87.5
BPO	20.2	19.7		21.6		61.5
Cloud & Support	9.0	9.1		7.7		25.8
Group revenue	155.9	163.1		156.8		475.8

Year 2023

In € million	Q1 reclassified	Q2 reclassified	Q3 reclassified	Q4 reclassified	Total reclassified
Software & Services	74.4	76.2	76.0		226.6
Flow	24.0	22.8	22.4		69.2
Data & Marketing	24.6	30.3	24.1		79.0
BPO	14.4	18.4	19.0		51.8
Cloud & Support	8.4	7.4	6.8		22.6
Group revenue	145.9	155.1	148.3		449.4

Breakdown of revenue by geographic zone, currency and division at September 30, 2024

as a % of consolidated revenues	*Geographic zone*			*Currency*
as a % of consolidated revenues	France	EMEA ex. France	Americas	Euro	GBP	Other
Software & Services	82.8%	17.1%	0.1%	86.2%	12.0%	1.7%
Flow	91.9%	8.1%	0.0%	94.5%	5.5%	0.0%
Data & Marketing	97.9%	2.1%	0.0%	98.0%	0.0%	2.0%
BPO	100.0%	0.0%	0.0%	100.0%	0.0%	0.0%
Cloud & Support	99.9%	0.1%	0.0%	100.0%	0.0%	0.0%
Cegedim	90.1%	9.8%	0.1%	92.2%	6.6%	1.2%

¹As of January 1, 2024, our Cegedim Outsourcing and Audiprint subsidiaries—which were previously housed in the Software & Services division—as well as BSV—formerly of the Flow division—have been moved to the Cloud & Support division in order to capitalize on operating synergies between cloud activities and IT solutions integration.

²At constant scope and exchange rates. The positive currency impact of 0.2% was mainly due to the pound sterling. The positive scope effect of 1.8% was attributable to the first-time consolidation in Cegedim’s accounts of Visiodent starting March 1, 2024.The positive currency impact of 0.1% was mainly due to the pound sterling. The positive scope effect of 1.4% was attributable to the first-time consolidation in Cegedim’s accounts of Visiodent starting March 1, 2024.

³To take advantage of synergies, Cegedim Outsourcing, Audiprint, and BSV have been reassigned to the Cloud & Support division.At constant scope and exchange rates.

⁴To take advantage of synergies, Cegedim Outsourcing, Audiprint, and BSV have been reassigned to the Cloud & Support division.At constant scope and exchange rates.

Attachment

Cegedim_Revenue_3Q2024_ENG

The MIL Network –

January 25, 2025

MIL-OSI USA: Supporting women in ocean sciences

Source: US Government research organizations

The U.S. National Science Foundation, in collaboration with Every Page Foundation (EPF), is excited to announce 22 women science leaders as the 2024 NSF-EPF Ocean Decade Champions.

Each champion is associated with a project funded by the NSF Coastlines and People (NSF CoPe) program and receives a monetary award to support leadership activities, networking opportunities, technical and communications training and cross-disciplinary and intercultural scientific endeavors.

NSF CoPe is endorsed by the United Nations Decade of Ocean Science for Sustainable Development, also known as the Ocean Decade, which aims to promote ocean health and ensure any development efforts are sustainable and informed by science. The initiative’s 10 Decade Challenges include a fair representation of women and other underrepresented groups in ocean science and decision-making.

The champions contribute to CoPe projects focused on coastline and community research that integrates natural and social processes and creates new or adapts existing technologies to bolster coastal resilience. The champions excel in their research and prioritize mentoring others and positively impacting society.

NSF and EPF, along with support from Panorama Global, contributed over half a million dollars to support the careers of these leading women. Each awardee received support ranging from $20,000 to $50,000.

The 2024 NSF-EPF Ocean Decade Champions

Lynette Adams
Black in Marine Science
NSF Award Number: 2209284
Lynnette Adams is a director of development leading initiatives that bridge science, community and advocacy while centering joy as a driving force for equity and inclusion in marine biology.

Wai Allen
Arizona State University
NSF Award Number: 2103843
Wai Allen (Diné/Navajo) is a postdoctoral researcher exploring the interface between systems of Western science and Indigenous knowledge that converge to help Indigenous communities actualize their self-determination through Indigenous data sovereignty and governance in the geosciences.

Sharon Alston
Norfolk State University
NSF Award Number: 2209139
Sharon Alston is an associate professor of social work, researching risk and resilience among youth in public housing and exploring the career aspirations of African American youth.

Rebecca Asch
East Carolina University
NSF Award Number: 2052889
Rebecca Asch is a fisheries oceanographer researching interactions between fish reproduction, fish early life history, plankton ecology, climate change and climate variability.

Natasha Batista
Stanford University
NSF Award Number: 2209284
Natasha Batista is a marine spatial analyst and researcher investigating blue carbon modeling, ecosystem service valuations, community-based management and co-developed nature-based solutions.

Mona Behl
University of Georgia
NSF Award Number: 1940082
Mona Behl is an associate director of Georgia Sea Grant, and her research focuses on building climate adaptation and broadening participation in geosciences and workforce readiness.

Marilyn Brandt
University of the Virgin Islands
NSF Award Number: 2209284
Marilyn Brandt is a research associate professor studying the characteristics and impacts of coral reef diseases and using insights from her work to create effective strategies for coral conservation and restoration.

Lisa Carne
Fragments of Hope
NSF Award Number: 2209284
Lisa Carne founded Fragments of Hope, a community-based organization restoring coral reef habitats in 2013 after conducting coral reef research in Belize and witnessing the area’s vulnerability to hurricanes and rising sea temperatures.

Jade Delevaux
Seascape Solutions
NSF Award Number: 2209284
Jade Maeva Delevaux is a natural resource management specialist who works with decision-makers, local communities and nongovernmental organizations across the Pacific and the Caribbean to co-develop place-based solutions.

Allie Durdall
University of the Virgin Islands
NSF Award Number: 2209284
Allie Durdall is a marine and environmental scientist dedicated to coastal systems — mangroves, seagrass beds and salt ponds — who prioritizes fostering camaraderie among women and minorities in science.

Anne Guerry
Stanford University
NSF Award Number: 2209284
Anne Guerry is a scientist who studies the relationship between people and nature. She works on coastal resilience, marine planning, natural capital assessments and ecosystem services.

Sucharita Gopal
Boston University
NSF Award Number: 2209284
Sucharita Gopal is a multidisciplinary researcher who uses spatial analysis and modeling, GIS, data mining, information visualization and artificial neural networks to address various problems in biology, environmental science, public health and business.

Cindy Grace-McCaskey
East Carolina University
NSF Award Number: 2209284
Cindy Grace-McCaskey is an applied environmental anthropologist who uses qualitative, quantitative and participatory methods to examine the multiple ways social and natural systems interact with and influence one another and what that means for equitable resource management, adaptation and governance.

Kristin Grimes
University of the Virgin Islands
NSF Award Number: 2209284
Kristin Grimes is a research assistant professor who studies human impacts on nearshore environments. She focuses on mangrove ecosystems and is interested in how community-driven science approaches can improve restoration, education and stewardship outcomes.

Jamie Melvin
Elizabeth River Project
NSF Award Number: 2209139
Jamie Melvin is an engagement coordinator who develops and implements thoughtful and equitable programming at the Elizabeth River Project’s new Ryan Resilience Lab to engage with Norfolk’s diverse communities and coordinate the Knitting Mill Creek EcoDistrict.

Laura Moore
University of North Carolina
NSF Award Number: 1939447
Laura Moore is a professor researching how low-lying coastlines respond to climate change, emphasizing understanding the interactions between human activities and natural processes.

Tiara Moore
Black in Marine Science
NSF Award Number: 2209284
Tiara Moore is a CEO dedicated to promoting diversity and involvement in science through her research on biodiversity and efforts to increase participation in science through innovative methods such as environmental DNA and community engagement.

Shouraseni Sen Roy
University of Miami
NSF Award Number: 2209284
Shouraseni Sen Roy is a geographer working on the long-term spatial-temporal patterns of climate processes, trends and impacts in the “global south,” incorporating geospatial analysis techniques.

Diamond Tachera
Rising Voices Center for Indigenous and Earth Sciences, NSF National Center for Atmospheric Research
NSF Award Number: 2103843
Diamond Tachera is a kanaka ‘ōiwi (Native Hawaiian) and co-director whose research is driven by the Indigenous knowledge of her kūpuna (ancestors); she uses modern hydrogeochemical techniques to investigate the relationships between ʻāina (land), wai (water) and kānaka (people).

Nikki Taylor-Knowles
University of Miami
NSF Award Number: 2209284
Nikki Traylor-Knowles is a cell biologist whose research is dedicated to unraveling the evolution of immunity, wound healing and regeneration. She seeks to apply her research to conservation efforts.

Maya Trotz
University of South Florida
NSF Award Number: 2209284
Maya Trotz is a professor whose research covers water quality, water source protection and water provision for sustainable communities. She works with partners in the United States and the Caribbean on ridge-to-reef nature-based solutions.

Jingya Wang
University of Delaware
NSF Award Number: 2209190
Jingya Wang is a postdoctoral researcher focused on studying decision-making under deep uncertainties and strategies for adapting to climate change. She specializes in making risk-informed decisions to adapt systems to evolving conditions.

Rebecca Zarger
University of South Florida
NSF Award Number: 2209284
Rebecca Zarger is an environmental anthropologist working at the intersection of environmental knowledge and social justice to address coastal futures, climate change and youth informal science education.

MIL OSI USA News –

January 25, 2025

MIL-OSI USA: Speech of Commissioner Summer K. Mersinger to Keynote at the S&P Global Commodity Insights Nodal Trader Conference

Source: US Commodity Futures Trading Commission

Good morning, and thank you for the warm welcome. A special thank you to Nodal for inviting me to join your annual Trader Conference again this year. It is truly an honor to address all of you this morning. I am more than two years into my role as a commissioner at the Commodity Futures Trading Commission, and I still feel humbled by the opportunity to stand on a stage with a microphone to address accomplished professionals like all of you. My children, on the other hand, are surprised that anyone would want to hear me talk about anything, and they are even more shocked that I would need a microphone to be heard as they are convinced that the only volume I ever use when speaking is shouting.

The topic for my speech on today’s agenda is: New Perspectives on Energy Trading and Power Markets, and I plan to focus on the road ahead for these markets. But before discussing the road ahead, I will start with a story from my childhood about when I learned to drive. I say this is a story from my childhood because in South Dakota, children as young as fourteen years old are allowed to obtain a driver’s license. As much as I miss my home state, when I look at my fourteen-year-old son and think about him driving, I see the wisdom in Virginia’s approach.

At the ripe old age of twelve, my dad decided it was time for me to learn how to drive. As a tall child, I could reach the gas and brake pedals, which was apparently the minimum criteria for beginning driving lessons on the farm. To be honest, I was scared to death of driving. But my parents said I should learn because if there was ever an emergency, and I was the only one home, I may need to drive for help. That logic just made me scared of driving and being left alone on the farm.

My experience as a parent teaching two teenagers to drive involved multiple practice sessions in empty parking lots before slowly graduating to quiet side roads before paying another adult to do the really scary stuff, such as driving on highways and making left turns across oncoming traffic. I suspect that sounds familiar to many in this room as well.

But that suburban approach is not how I learned to drive. My lesson – notice I said lesson, not lessons—was a little more hands-off. On the day I learned to drive, my dad had me jump in the passenger seat of his 1977 blue Chevy pick-up truck to take a ride with him. Oddly, my older brother jumped in another farm truck and followed close behind.

After driving a few miles away from our house, my dad drove the truck into the middle of a freshly plowed field. Dad threw the truck into park, jumped out, and told me to slide over to the driver’s seat. He then shut the door, leaned into the window, and told me to drive around the field until I was comfortable enough to drive myself home. At that point, I realized why my brother had followed us in another vehicle—it was my dad’s getaway car.

Honestly, I panicked. I screamed, pleaded, and begged. But my dad was confident in his approach. And he left me with this advice: always keep your eyes on the road. But don’t just look at the road immediately in front of the vehicle; be sure to watch the road ahead so you know where you are going—and so that you do not smash into a deer.

I’m sharing this story with you today for two reasons. First, to offer some entertainment.

Second, I found the advice my dad gave me that day relevant to the topic for my speech today. Specifically, I want to share with you some thoughts and observations on energy markets, the road ahead for these markets, and potential down-the-road effects on the derivatives markets that are regulated by the CFTC.

Being a derivatives regulator can feel a little like being that driver who is looking down the road to see what is ahead. Our markets are forward looking, offering a view into points off in the distance so drivers are prepared for the path ahead. But, just like a careful driver needs to see what is right in front of the vehicle as much as what is on the road ahead, careful regulation requires us to also keep our eyes on current market conditions, in addition to ensuring the reliability and safety of the futures markets, which reflect the road ahead. The CFTC is always surveilling markets, spotting trends, and monitoring for risk that could impact the futures markets.

Now, here is where this speech will diverge from my story of learning to drive. While I was left to teach myself how to drive and had no one willing to share their expertise with me, our work at the CFTC in following markets occurs with the benefit of a variety of internal resources (such as the Market Intelligence Branch of the Division of Market Oversight and the Office of the Chief Economist) as well as external resources (such as our advisory committees).

At the CFTC, we have five advisory committees, each of which is sponsored by a commissioner. These committees are comprised of subject matter experts representing a variety of viewpoints, such as private sector stakeholders, non-profit groups, academia, and other governmental entities. As many of you know, especially those who are members, I sponsor the Energy and Environmental Markets Advisory Committee.

Growing up on a farm in South Dakota, I always understood that the price of energy had a major impact on whether it was a good year or a bad year for the farm. Even at a young age, I could tell you the exact cost-per-gallon of diesel because either my dad was grumbling about it as he left for the field, or it was the topic of discussion at the local café in town where the older farmers convened for their morning coffee.

The price of diesel determined the cost of running planters, tractors, combines, and trucks. The cost of fertilizers and pesticides are also directly linked to fossil fuel input prices, and spreading those fertilizers and pesticides required hiring a spray pilot whose services were priced based on the cost of the aviation fuel.

Even after our crops were harvested, energy costs were critical. Energy prices influenced the cost of storage at the grain elevators and transportation; barges and ships run on bunker fuel and trains need diesel. Everything in the farm economy depends on the price of energy. You might have perfect temperatures, exactly the right amount of rain at exactly the right time, and high yields but still see your net profit shrink due to high energy prices.

As the only Commissioner with a background in production agriculture, sponsoring the Commission’s Agriculture Advisory Committee may have seemed like the obvious choice. But I saw the EEMAC as an opportunity to focus on sectors critical to the agricultural economy and to study those energy markets to understand their impact on the markets we regulate. The goal is for the energy futures complex to serve end-users who need to hedge those costs and to mitigate the frequent price volatility experienced by the underlying cash markets.

As the EEMAC has held meetings and participated in discussions around energy markets, we have heard over and over that the United States has critical gaps in its energy and power infrastructure. As those gaps widen, so do risks to the stability of these markets that become more sensitive and less resilient to forces beyond US control. Instability and volatility in spot energy markets and prices have a direct impact on the derivative products we regulate.

Energy infrastructure’s impact on energy prices is something that cannot be ignored, and this reality has become even more apparent in the last decade. Of course, it makes sense that energy transmission and delivery directly impact the cost to the end consumer. However, truly understanding how energy infrastructure market fundamentals influence energy spot and derivatives prices requires hearing directly from hardworking domestic energy producers and seeing the infrastructure up close.

With that in mind, the EEMAC has held a series of meetings on the road, and members of the advisory committee have joined me in getting outside of Washington to see our energy production and infrastructure and to talk directly with the experts who manage these facilities.

In our first meeting, we visited Oklahoma and focused on more traditional energy markets such as crude oil and natural gas.[1] We visited Cushing, Oklahoma, where the WTI Crude Oil contract settles to see the pipelines and storage facilities as well as to talk with those in charge of storing, blending, and moving the oil to locations throughout the US. During the EEMAC meeting, a witness from the Federal Energy Regulatory Commission described an anomaly in the price of natural gas in New England.[2] Despite having one of the largest concentrations of natural gas in the Marcellus Shale just over two hundred miles away, a lack of pipeline capacity makes it impossible to fully supply New England with gas from the Marcellus Shale.[3] This situation means that New England relies on liquified natural gas (“LNG”) supplies from tanker ships. As a result, the price New England end users pay is based on the Henry Hub price for exported LNG, rather than the domestic production price. This circumstance creates an unusual situation where the spot price that a natural gas-fired power plant in Massachusetts pays for its fuel is more dependent on Europe’s desire for natural gas and a global market thousands of miles away than on the price and availability of natural gas produced two states away in Pennsylvania.

To examine power markets and electrification, we held meetings in Roy, Utah; Nashville, Tennessee; and Golden, Colorado.[4] In the course of those meetings, we had the opportunity to tour a large Ford EV production facility in Spring Hill, Tennessee, the Bingham Canyon Copper Mine in Utah, and a startup company looking to reuse mine tailings to produce critical metals and minerals in Golden, Colorado.

Here in the United States, we have some of the largest deposits of the metals necessary for power generation, transmission, and use, but large gaps in our infrastructure and policies render these advantages almost meaningless. In Golden, Colorado, we learned that despite a startup company’s cutting-edge technology that can turn mine waste into critical metals and minerals, China’s dominance in rare earth markets means that they can manipulate prices at will and squeeze out competition and force any US production into bankruptcy.

Southwest of Salt Lake City, Utah, we toured the Bingham Canyon Copper Mine. The Bingham County Mine is the largest man-made excavation in the world.[5] It’s also the world’s deepest open pit mine, and it has produced more copper than any other mine in the world.[6] As you can probably guess, the US has abundant supplies of copper; however, because of a lack of domestic smelting capacity, much of the copper mined in the US must be shipped overseas, often to China, to be processed and refined. In fact, since 2000, China has been responsible for 75% of the global smelter capacity growth.[7]

Finally, in Spring Hill, Tennessee, we learned that car companies are increasingly concerned about logistical challenges reducing their ability to provide cost-competitive electric vehicles. This is not an idle concern. Just four weeks ago, Rivian disclosed that it will be forced to reduce production and decrease its sales target in 2024 by almost 20% because of difficulties sourcing a component used in its electric motor.[8] And last week, to secure a steady supply of lithium, GM announced an almost $1 billion investment in the Thacker Pass mine in Nevada.[9]

For years, the problem for domestic energy policy was how to mine, drill, and import enough raw materials to satisfy America’s growing energy demand.[10] Even after the oil glut of the 1980s and lower energy prices, we were still concerned with our reliance on foreign energy.[11] The continuous mantra of Presidents starting with Richard Nixon was the concept of “Energy Independence” as a policy goal.[12] Now, not because of government mandates, plans, or policies, but thanks to technological innovation, hard work, and the deployment of private capital, that goal has largely been achieved. We have the raw materials in the ground that we need to power American energy independence; however, we need our infrastructure to catch-up with our domestic supply.

Returning to my driving lesson, when I look at the road ahead, I see the United States coming to a crossroads. One road leads to more resilient infrastructure, lower prices, and energy abundance. The other road leads to energy scarcity, higher prices, and a loss of energy independence. The direction we take as a country will have a major impact on the energy markets and the futures markets we regulate at the CFTC. Unfortunately, gaps in energy infrastructure lead to instability and volatility in energy markets, which have a direct impact on the derivatives markets. If derivatives markets fail to offer adequate price discovery and risk mitigation, they will no longer serve producers and end users as appropriate tools to hedge their exposure. That is a road we cannot afford to go down.

As a regulator, the CFTC is not the driver of this car, but we definitely have an interest in taking the road that leads to liquid, stable, and vibrant derivatives markets that serve as a tool for hedging against risk. We can do that by ensuring that new derivative products come to market efficiently without the fear of litigation or unreasonable staff positions, and by cultivating new market structures that minimize conflicts and instill market confidence. Our enforcement efforts should be focused on ‘bad actors’ and not on trying to shortcut deliberative policymaking. The CFTC should prefer “responsible regulation” over “regulation by enforcement.” To arrive at our desired destination, we all need to keep our eyes on the road, to see what is right in front of us while simultaneously paying attention to the road ahead.

Thank you for taking this road trip with me today. I look forward to answering your questions.

[1] CFTC Energy and Environmental Markets Advisory Committee meeting in Stillwater, Oklahoma, September 20, 2022.

[4] CFTC Energy and Environmental Markets Advisory Committee meeting in Nashville, Tennessee, February 28, 2023. CFTC Energy and Environmental Markets Advisory Committee meeting in Roy, Utah, June 27, 2023. CFTC Energy and Environmental Markets Advisory Committee meeting in Golden, Colorado, February 13, 2024.

[5] Kristine L. Pankow, Jeffrey R. Moore, J. Mark Hale, Keith D. Koper, Tex Kubacki, Katherine M. Whidden, and Michael K. McCarter. “Massive landslide at Utah copper mine generates wealth of geophysical data.” Geological Society of America, vol. 24, no. 1, January 2014.

[7] Securing Copper Supply: No China, No Energy Transition, WoodsMcKenzie, August 2024, Nick Pickens, Robin Griffin, Eleni Joanides, and Zhifei Liu.

[8] Ed Ludlow and Kiel Porter. “Rivian Misstep Triggered Parts Shortage Hobbling Its EV Output.” Bloomberg, October 7, 2024.

[9] Camilla Hodgson. “General Motors increases investment in lithium mine to nearly $1bn.” Financial Times, October 6, 2024.

[10] US Energy Information Administration, “U.S. energy facts explained, Imports & Exports.” Last updated July 15, 2024, with data from the Monthly Energy Review.

[12] Charles Homans, “Energy Independence: A Short History.” Foreign Policy, January 3, 2012.

MIL OSI USA News –

January 25, 2025

MIL-OSI: Federal Home Loan Bank of New York Announces Third Quarter 2024 Operating Highlights

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Oct. 24, 2024 (GLOBE NEWSWIRE) — The Federal Home Loan Bank of New York (“FHLBNY”) today released its unaudited financial highlights for the quarter ended September 30, 2024.

“Throughout the first nine months of 2024, the Federal Home Loan Bank of New York has continued to successfully execute on our mission, meeting the needs of our members and working together to the benefit of the communities we all serve,” said José R. González, president and CEO of the FHLBNY.

Highlights from the third quarter of 2024 include:

Net income for the quarter was $183.4 million, an increase of $1.5 million, or 0.8%, from net income of $181.9 million for the third quarter of 2023. Net interest income for the quarter was $237.2 million, a decrease of $5.3 million, or 2.2%, from $242.4 million in the third quarter last year. Non-interest income increased by $23.3 million in the third quarter of 2024 compared with the prior year’s quarter, mainly due to an increase in unrealized fair value gains on derivatives, hedged items and trading securities. Non-interest expense increased by $16.2 million to $68.4 million in the third quarter of 2024, primarily due to larger voluntary contributions for housing and community development initiatives and increases in headcount.
Return on average equity (“ROE”) for the quarter was 8.29% (annualized), compared to ROE of 9.13% for the third quarter of 2023.
As of September 30, 2024, total assets were $155.5 billion, a decrease of $2.8 billion, or 1.8%, from total assets of $158.3 billion at December 31, 2023. As of September 30, 2024, advances were $106.4 billion, a decrease of $2.5 billion, or 2.3%, from $108.9 billion at December 31, 2023.
As of September 30, 2024, total capital was $8.4 billion, an increase of $0.2 billion from total capital of $8.2 billion at December 31, 2023. The FHLBNY’s retained earnings increased by $0.2 billion to $2.5 billion as of September 30, 2024, of which $1.3 billion was unrestricted retained earnings and $1.2 billion was restricted retained earnings. At September 30, 2024, the FHLBNY met its regulatory capital ratios and liquidity requirements.
The FHLBNY allocated $20.4 million from its third quarter 2024 earnings for its Affordable Housing Program.

The FHLBNY expects to file its Form 10-Q for the third quarter of 2024 with the U.S. Securities and Exchange Commission on or before November 7, 2024.


Selected Balance Sheet Items (dollars in millions)
	September 30,			December 31,
	2024			2023			Change

Advances	$	106,435		$	108,890		$	(2,455	)
Mortgage loans held for portfolio	2,308			2,180			128
Mortgage-backed securities	19,736			19,582			154
Liquidity assets	24,581			25,340				(759	)
Total assets	$	155,454		$	158,333		$	(2,879	)

Consolidated obligations	$	143,809		$	145,476		$	(1,667	)
Capital stock	6,014			6,050				(36	)
Unrestricted retained earnings	1,309			1,277			32
Restricted retained earnings	1,178			1,061			117
Accumulated other comprehensive income		(85	)		(143	)	58
Total capital	$	8,416		$	8,245		$	171

Capital-to-assets ratio (GAAP)	5.41		%	5.21		%
Capital-to-assets ratio (Regulatory)	5.47		%	5.30		%


Operating Results (dollars in millions)
	Three Months Ended September 30,									Nine Months Ended September 30,
	2024			2023			Change			2024			2023			Change

Total interest income	$	2,316.6		$	2,030.7		$	285.9		$	6,916.0		$	6,264.1		$	651.9
Total interest expense	2,079.4			1,788.3			291.1			6,166.1			5,517.2			648.9
Net interest income	237.2			242.4			(5.2		)	749.9			746.9			3.0
Provision (Reversal) for credit losses	0.1			(0.1		)	0.2			(0.7		)	1.8			(2.5		)
Net interest income after provision for credit losses	237.1			242.5			(5.4		)	750.6			745.1			5.5
Non-interest income (loss)	35.1			11.8			23.3			88.2			70.7			17.5
Non-interest expense	68.4			52.2			16.2			188.5			153.3			35.2
Affordable Housing Program assessments	20.4			20.2			0.2			65.1			66.3			(1.2		)
Net income	$	183.4		$	181.9		$	1.5		$	585.2		$	596.2		$	(11.0	)

Return on average equity	8.29		%	9.13		%				9.09		%	9.54		%
Return on average assets	0.43		%	0.48		%				0.46		%	0.48		%
Net interest margin	0.56		%	0.64		%				0.59		%	0.60		%

Federal Home Loan Bank of New York
The Federal Home Loan Bank of New York is a Congressionally chartered, wholesale Bank. It is part of the Federal Home Loan Bank System, a national wholesale banking network of 11 regional, stockholder-owned banks. As of September 30, 2024, the FHLBNY serves 338 financial institutions and housing associates in New Jersey, New York, Puerto Rico, and the U.S. Virgin Islands. The mission of the FHLBNY is to provide members with reliable liquidity in support of housing and local community development.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This report may contain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. These statements may use forward-looking terms, such as “projected,” “expects,” “may,” or their negatives or other variations on these terms. The Bank cautions that, by their nature, forward-looking statements involve risk or uncertainty and that actual results could differ materially from those expressed or implied in these forward-looking statements or could affect the extent to which a particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties including, but not limited to, the Risk Factors set forth in our Annual Reports on Form 10-K and our Quarterly Reports on Form 10-Q filed with the SEC, as well as regulatory and accounting rule adjustments or requirements, changes in interest rates, changes in projected business volumes, changes in prepayment speeds on mortgage assets, the cost of our funding, changes in our membership profile, the withdrawal of one or more large members, competitive pressures, shifts in demand for our products, and general economic conditions. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to revise or update publicly any forward-looking statements for any reason.

CONTACT:
Brian Finnegan
(212) 441-6877
brian.finnegan@fhlbny.com

The MIL Network –

January 25, 2025

MIL-OSI: 3PLs Balance Decreasing Order Volumes and Rising Costs While Maximizing Technology and Capacity to Achieve New Industry Standards

Source: GlobeNewswire (MIL-OSI)

EL SEGUNDO, Calif., Oct. 24, 2024 (GLOBE NEWSWIRE) — Extensiv — a leading provider of warehouse, order, and inventory management software to the third-party logistics (3PL) industry and the brands they serve, today announced the results of its fifth annual Third-Party Logistics (3PL) Warehouse Benchmark Report. The readout is the only benchmark report focused exclusively on the 3PL warehouse industry. This year’s report revealed decreased order volume growth, increased profitability for those operating at high warehouse capacity (over 80% capacity), and a convergence between AI advancement and network fulfillment points for 2025.

The Third-Party Logistics Warehouse Benchmark Report aggregates data from more than 250 3PL warehouses and provides insight on more than 30 industry-specific topics. The report builds on prior data and provides year-over-year changes and trends to help warehouses understand market growth opportunities and industry challenges.

Key takeaways from the 2024 report include:

Adapting to Challenges is Key. The 3PL industry is navigating through tough times with slowing growth in order volumes and profitability (only 69% reported progress on profitability in 2024). Yet, businesses are showing resilience and adaptability. 3PL’s operating at larger scales seem to be best suited for navigating today’s market volatility.
AI is the Future. Artificial Intelligence (AI) is gaining traction, with significant interest in its applications for optimizing various aspects of warehouse operations. The number of respondents saying they were looking into AI rose sharply from 16% last year to 25% this year. While the industry is still exploring the best use cases, integrations with AI are looking like an inevitability.
Fourth-party Fulfillment Strategies. There is a clear trend towards adding warehouses to obtain geographic disbursement. The percentage of organizations with 2 to 5 warehouses has followed an upward trajectory by an average of 2% each year. This year, it sits at 51%. This growth also reflects a growing interest in utilizing fourth-party logistics (4PLs) to drive efficiency and reduce risk while strategically positioning inventory to better serve customers.
Optimizing Labor. While the percentage of 3PLs expecting to add workers is the lowest it has been in the past four years (57%), the focus has shifted to optimizing labor productivity through management tools and efficiency measures outside of a reliance on robotics. While worries about employee turnover are declining, ensuring maximum efficiency among workers is still top of mind for the industry.
Better Billing is Crucial. Cash flow is still king in 2024 and more 3PLs are looking to automate their billing processes to maintain financial stability. This year, the time spent billing customers increased, however those who spent less than 16 hours on billing and invoicing per month were 2.8 times more likely to see high profitability growth. With the correlation between time spent on billing and profitability, more 3PLs are looking for ways to leverage invoicing functions directly within their WMS.

Other key areas of the report include an outlook for 2025, as well as trends and metrics related to growth opportunities, technology adoption, warehouse operations, and industry challenges. Despite concerns about decreasing order volume and cash flow constraints, 3PLs are approaching 2025 with resilience and optimism.

“With this, the 5^th edition of the 3PL Warehouse Benchmark Report, Extensiv equips 3PLs with the information needed to best navigate the evolving supply chain,” said Aaron Stead, CEO of Extensiv. “It further displays the market leadership position Extensiv holds and connection to the pulse of our industry.”

To see more critical 3PL trends, download the 2024 Extensiv Third-Party Logistics Warehouse Benchmark Report here. For additional insight, listen to an on-demand discussion of the results.

About Extensiv

Extensiv, formerly 3PL Central, is a visionary technology leader focused on creating the future of omnichannel fulfillment. We partner with warehouse professionals and entrepreneurial brands to transform their fulfillment operations in the radically changing world of commerce and consumer expectations. Through our unrivaled network of more than 1,500 connected 3PLs and a suite of integrated, cloud-native warehouse management (WMS), order management (OMS), inventory management (IMS), and integration management software, we enable modern merchants and brands to fulfill demand anywhere with superior flexibility and scale without painful platform migrations as they grow. More than 25,000 logistics professionals and thousands of brands trust Extensiv every day to drive commerce at the pace that modern consumers expect. Learn more at www.extensiv.com.

Media contact:
Jill Hillen
jhillen@extensiv.com

The MIL Network –

January 25, 2025

MIL-OSI NGOs: Whatever we lose we will come back

Source: Médecins Sans Frontières –

Amid the ongoing Israeli bombardment and incursions across southern Lebanon, countless families have been uprooted, many seeking refuge in the coastal city of Saida. Médecins Sans Frontières’ (MSF’s) mobile medical teams have been visiting several locations in the southern city, offering general healthcare, medication, and mental health support to people displaced by the violence. Here are some of the testimonies of our patients there:

Hassan Zeineddine

“There’s nothing like living in your own home,” reflects Hassan Zeineddine, 67, an internally displaced Lebanese man with hypertension. He and his wife fled Kfar Melki, in the south of Lebanon, after nearby Israeli bombardments, leaving with only the clothes on their backs. “My sons are also displaced, scattered across the country. That alone is a struggle, but what we are going through is similar to what everyone else is.”

Having been uprooted three times during the recent escalations, Hassan, a retired employee who lost his pension and savings in the 2020 economic crisis, reminisces about the olive harvest and his deep connection to the land he was forced to leave behind.

“There is nothing quite like the south,” he says. “Wherever we go, whatever we lose, and whatever we are offered, we will always come back. I lived through the 1982 Israeli invasion and remember the airstrikes on southern villages then. As we returned to our homes then, we will now.”

Khadija

Khadija, a Syrian refugee and mother of five, was displaced from Nabatieh with her family. “She’s fading right before my eyes,” says Khadija, pointing to her seven-year-old daughter, who she says suffers from stunted growth. She describes the harsh conditions in the open parking lot by the Saida coastline where they’ve sought refuge.

“We never feel clean. People are competing over food here, and we don’t have enough clean water to wash. We go to the sea to relieve ourselves, but there are often men around.”

Her children are battling various health issues and it’s breaking her spirit. “Sidra, 13, has asthma, Hiba, 7, weighs barely 10 kilograms, and Malak, my 8-month-old, has a fever and diarrhoea. I breastfeed her whenever I can, but it’s not always enough, and I can’t properly clean her bottles.”

In a moment of despair Khadija admits, “Sometimes I wish we had stayed and died in an airstrike instead of living like this.”

Um Mohammad

Um Mohammad, a 40-year-old Syrian refugee displaced from Qsaibeh, in south Lebanon, has three daughters. She used to maintain her employer’s garden, landscaping and building fences around his land. The night she fled Qsaibeh, an airstrike landed dangerously close.

She recalls joining the community with buckets of water to put out the fire, and then her employer told her it was time to leave. She packed a change of clothes for each of her daughters, aged 18, 6, and 4, and grabbed only a blanket, leaving behind the groceries she had just bought that day on her kitchen floor.

Hala

Hala, 24, is a Syrian refugee and mother of three—Yamen, 2, Rawan, 3, and Razan, 6. She fled from the coastal town of Adloun in south Lebanon amidst airstrikes and the sirens of ambulances. “We left with nothing. We escaped on a motorcycle, but it broke down here in Saida. My husband went back to retrieve our belongings, but everything was stolen.”

Now, they rely on aid for food.

“All my children are sick with vomiting and diarrhoea. Rawan, who has down syndrome, used to receive physical therapy to walk and move. We had high hopes that she would begin verbal communication through speech therapy soon, and she had made so much progress. But now, all that is gone. She requires lots of medications and is often bullied by other children for not being able to express herself.”

Shams Al Mahmoud, Marimar, and Kazem

Shams Al Mahmoud, whose first name means ‘sun’ in Arabic and is a Syrian refugee, remains as bright and warm as ever, despite the hardships she and her family have endured. Along with her children—Mimar, 24, Mimas, Kazem, 20, and Marimar,14—Shams was displaced from Kfar Roumane and now lives in a parking lot in Saida, southern Lebanon.

With an endearing smile, she recounts the moments her family escaped Israeli airstrikes in the town they had called home for over a decade, fleeing for 12 hours on foot to finally find relative safety in Saida. A few days later, Kazem and one of his sisters made a dangerous trip back to their former home on a borrowed motorcycle to rescue their two kittens, Simba and Mimi.

“We thought of them as we were leaving,” says Marimar, as she fondly strokes one of the kittens. “But the airstrikes were too close. I’m so relieved we could go back for them.”

Najah Ashour

Najah Ashour, a Syrian refugee living in south Lebanon, was displaced once again along with her daughters—Maya, 11, Lujain, 6, and Sary, 9 months—after airstrikes struck the southern town of Baisariyeh. She is among the 1.2 million people displaced by the ongoing Israeli bombardments. While the war affects everyone, minority groups like Syrian refugees, migrant workers, the elderly, and people with disabilities face even greater risks of discrimination and exclusion, further limiting their access to healthcare and humanitarian aid.

MIL OSI NGO –

January 25, 2025

MIL-OSI Global: ‘Our nuclear childhood’: the sisters who witnessed H-bomb tests over their Pacific island, and are still coming to terms with the fallout

Source: The Conversation – UK – By Christopher Hill, Associate Professor (Research and Development), Faculty of Business and Creative Industries, University of South Wales

Nuclear detonations were the backdrop to Teeua and Teraabo’s childhood. By the time the sisters were eight and four, the Pacific island on which they grew up, Kiritimati, had hosted 30 atomic and thermonuclear explosions – six during Operation Grapple, a British series between 1957 and 1958, and 24 during Operation Dominic, led by the US in 1962.

The UK’s secretary of state for the colonies, Alan Lennox-Boyd, had claimed the Grapple series would put Britain “far ahead of the Americans, and probably the Russians too, in super-bomb development”. Grapple, the country’s largest tri-service operation since D-Day, also involved troops from Fiji and New Zealand. It sought to secure the awesome power of the hydrogen bomb: a thermonuclear device far more destructive than the atomic bomb.

Britain’s seat at the top table of “super-bomb development” was emphatically announced in April 1958 with Grapple Y: an “H-bomb” 200 times more powerful than the bomb dropped on Hiroshima in 1945. This remains Britain’s largest nuclear detonation – one of more than 100 conducted by the UK, US and Soviet Union in 1958 alone.

More than six decades later, the health effects on former servicemen based on Kiritimati, as well as at test locations in South and Western Australia, remain unresolved. Greater Manchester’s mayor, Andy Burnham, has called the treatment of UK nuclear test veterans “the longest-standing and, arguably, the worst” of all the British public scandals in recent history.

Unlike the Post Office, infected blood and Grenfell Tower inquiries in 2024, there has been no UK inquiry into British nuclear weapon tests in Australia and the Pacific. Yet veterans and their descendants maintain these tests caused hereditary ill-health effects and premature deaths among participants. The British government has been accused of hiding records of these health impacts for decades behind claims of national security.

Over the past year, the life stories of British nuclear test veterans have been collected by researchers, including myself, for an oral history project in partnership with the British Library. Whether from a vantage point of air, land or sea, the veterans all recall witnessing nuclear explosions with startling clarity, as if the moment was seared on to their memories. According to Doug Herne, a ship’s cook with the Royal Navy:

When the flash hit you, you could see the X-rays of your hands through your closed eyes. Then the heat hit you, and it was as if someone my size had caught fire and walked through me. To say it was frightening is an understatement. I think it shocked us into silence.

British servicemen describe their nuclear test experiences. Video: Wester van Gaal/Motherboard.

But what of the experiences of local people on Kiritimati? I have recently interviewed two sisters who are among the few surviving islanders who witnessed the nuclear tests. This is their story.

‘A mushroom cloud igniting the sky’

At the start of Operation Grapple in May 1957, around 250 islanders lived on Kiritimati – the world’s largest coral reef atoll, slap bang in the centre of the Pacific Ocean, around 1,250 miles (2,000km) due south of Hawaii. The island’s name is derived from the English word “Christmas”, the atoll having been “discovered” by the British explorer James Cook on Christmas Eve 1777.

In May 2023, I visited Kiritimati for a research project on “British nuclear imperialism”, which investigated how post-war Britain used its dwindling imperial assets and resources as a springboard for nuclear development. I sought to interview islanders who had remained on the atoll since the tests, including Teeua Tekonau, then aged 68. In 2024, I visited her younger sister, Teraabo Pollard, who lives more than 8,000 miles away in the contrasting surroundings of Burnley, north-west England.

Far from descriptions of fear and terror, both Teeua and Teraabo looked back on the tests with striking enthusiasm. Teraabo recalled witnessing them from the local maneaba (open-air meeting place) or tennis court as a “pleasurable” experience full of “excitement”.

She described having her ears plugged with cotton wool before being covered with a blanket. As if by magic, the blanket was then lifted to reveal a mushroom cloud igniting the night sky – a sight accompanied by sweetened bread handed out by American soldiers. So vivid was the light that Teraabo, then aged four, described “being excited about it being daytime again”.

An Operation Grapple thermonuclear test near Kiritimati, 1957-58. Video: Imperial War Museums.

In view of the violence of the tests, I was struck that Teeua and Teraabo volunteered these positive memories. Their enthusiasm seemed in marked contrast to growing concerns about the radioactive fallout – including those voiced by surviving test veterans and their descendants. As children, the tests seem to have offered the sisters a spectacle of fantasy and escapism – glazed with the saccharine of American treats and Disney films on British evacuation ships.

Yet they have also lived through the premature deaths of family members and, in Teraabo’s case, a malignant tumour dating from the time of the tests. And there have been similar stories from other families who lived in the shadow of these very risky, loosely controlled experiments. Teraabo told me about a friend who had peeked out from her blanket as a young girl – and who suffered from eye and health problems ever since.

‘Only a very slight health hazard’

Kiritimati forms part of the impossibly large Republic of Kiribati – a nation of 33 islands spread over 3.5 million square kilometres; the only one to have territory in all four hemispheres and, until 1995, on either side of the international date line. Before independence from Britain in 1979, Kiribati belonged to the Gilbert and Ellice Island Colony, which in effect made Kiritimati a “nuclear colony” for the purpose of British and American testing.

In 1955, Teeua and Teraabo’s parents, Taraem and Tekonau Tetoa, left their home island of Tabiteuea, a small atoll belonging to the Gilbert group of islands in the western Pacific. They boarded a British merchant vessel bound for Christmas Island nearly 2,000 miles away. Setting sail with new-born Teeua in their arms, the family looked forward to a future cutting copra on Kiritimati’s British coconut plantation.

The scale of this journey, with four young children, was immense. Just how the hundred or so Gilbertese passengers “managed to live [during the voyage] was better not asked”, according to one royal engineer who described a similar voyage a few years later. “There were piles of coconuts everywhere – perhaps they were for both food and drink.”

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Within two years of their arrival, the family faced more upheaval as mother Taraem and her children were packed aboard another ship ahead of the first three sets of British nuclear tests in the Pacific. Known as Grapple 1, 2 and 3, they were to be detonated over Malden Island, an atoll some 240 miles to the south of Kiritimati – but still too close for the comfort of local residents.

According to Teeua, the evacuation was prompted by disillusioned labourers brought to Kiritimati without their families, who went on strike after learning how much the British troops were being paid. But the islanders’ perspectives do not feature much in the colonial records, which give precedence to British disputes about logistical costs and safety calculations.

The Grapple task force resolved that the safe limit set by the International Commission on Radiological Protection should be reduced, to limit the cost of evacuations. A meeting in November 1956 noted that “only a very slight health hazard to people would arise from this reduction – and that only to primitive peoples”.

Shocking as this remark sounds, it is typical of the disregard that nuclear planners appear to have had, both for Indigenous communities and the mostly working-class soldiers. These lives did not seem to matter much in the context of Britain’s quest for nuclear supremacy. William Penney, Britain’s chief nuclear scientist, had bemoaned how critics during tests in Australia were “intent on thwarting the whole future of the British Empire for the sake of a few Aboriginals”.

Tekonau, Teeua’s father, was one of the 30 or so I-Kiribati people to stay behind on Kiritimati during the Malden tests in May and June 1957. As one of the only labourers to speak English, he had gained the trust of the district commissioner, Percy Roberts, who invited Tekonau to accompany him during inspections of villagers’ houses in Port London, then the island’s only village. On one occasion, Teeua said, the islanders did not recognise her father as he had been given a “flat top” haircut like the Fijian soldiers. “This means he had a nice relationship with the soldiers,” she told me. “Thank God for giving me such a good and clever dad.”

Since the initial tests did not produce a thermonuclear explosion, the task force embarked on further trials between November 1957 and September 1958, known as Grapple X, Y and Z. In view of expense and time, these were conducted on Kiritimati rather than Malden Island – and this time, the residents were not evacuated to other islands. Rather, families were brought aboard ships in the island’s harbour and shown films below deck.

After these tests, the islanders returned to find the large X and Y detonations had cracked the walls of their homes and smashed their doors and furniture. One islander found their pet frigate bird, like so many of the wild birds on Kiritimati, had been blinded by the flash of Grapple Y. No compensation was ever paid to the islanders, although the Ministry of Supply did reimburse the colony for deterioration of “plantation assets”, including £4 for every damaged coconut tree (equivalent to £120 today).

A month before Grapple Y, Teraabo was born. Her earliest and most vivid childhood memories are of the US-led Operation Dominic four years later, by which time evacuation procedures had been abandoned altogether.

This series of tests was sanctioned by Britain in exchange for a nuclear-powered submarine and access to the Nevada Proving Grounds in the US – regarded as pivotal to the future of British weapons technology ahead of the signing of the Test Ban Treaty in October 1963, which would prohibit atmospheric testing.

Dominic’s 24 detonations on Kiritimati – which usually took place after sunset around 6pm, between April and November 1962 – were “awesome”, according to Teraabo. Recalling the suspense as the “tannoy announced the countdown”, she described “coming out of cover [and] witnessing the bomb [as] an amazing experience … When the bomb set off, the brilliance of the light was tremendous.”

Each explosion’s slow expiration would re-illuminate the Pacific sky. One, Starfish Prime, became known as a “rainbow bomb” because of the multi-coloured aurora it produced over the Pacific, having been launched into space where it exploded.

So spectacular were these descriptions that I almost felt I had to suspend disbelief as I listened. At one point in my interview with Teraabo, she leaned in to reassure me that she had no interest in exaggerating these events: “I’m a very proud person,” she whispered, “I would never lie.”

‘In our blood’

More than six decades on from the Grapple tests, I was sitting in Teeua’s kitchen in the village of Tabwakea (meaning “turtle”), near the northern tip of Kiritimati. I had driven here in a Subaru Forester, clapped-out from the many potholes on the island’s main road, itself built by royal engineers over 60 years ago.

Teeua Tekonau in her kitchen during the author’s visit to Kiritimati in 2023.
Christopher R. Hill., CC BY

Teeua’s home, nestled down a sand track, had a wooden veranda at the front where she would teach children to read and write under shelter from the hot equatorial sun. Handcrafted mats lined the sand and coral floor, fanning out from the veranda to the kitchen at the back.

The house felt full of the sounds of the local community, from the chatter of neighbours to the laughter of children outdoors. No one could feel lonely here, despite the vastness of the ocean that surrounds Kiritimati.

As Teeua cooked rice and prepared coffee, we discussed the main reason for my visit: to understand the impacts of the nuclear tests on the islanders, their descendents, and the sensitive ecosystem in which they live. Teeua is chair of Kiritimati’s Association of Atomic Cancer Patients, and one of only three survivors of the tests still living on Kiritimati. She pulled up a seat and looked at me:

Many, many died of cancer … And many women had babies that died within three months … I remember the coconut trees … when you drank [from the coconuts], you [were] poisoned.

Both Teeua’s parents and four of her eight siblings had died of cancer or unexplained conditions, she said. Her younger brother, Takieta, died of leukaemia at the age of two in November 1963 – less than a year after Operation Dominic ended. Her sister Teraabo, who discovered a tumour in her stomach shortly after the trials, was only able to have her stomach treated once she moved to the UK in 1981, by which time the tumour had turned malignant.

Teeua’s testimony pointed to the gendered impacts of the nuclear tests. She referred to the prevalence of menstrual problems and stillbirths, evidence of which can be inferred from the testimony of another nuclear survivor, Sui Kiritome, a fellow I-Kiribati who had arrived on Kiritimati in 1957 with her teacher husband. Sui has described how their second child, Rakieti, had “blood coming out of all the cavities of her body” at birth.

A rare military hospital record from 1958 – stored in the UK’s National Archives at Kew in London – also refers to the treatment of a civilian woman for ante-partum haemorrhage and stillbirth, though it is unclear whether this was a local woman or one of the soldier’s wives on the passenger ship HMT Dunera, which visited briefly to “boost morale” after Grapple X.

Members of the Kiritimati Association of Atomic Cancer Patients.
Courtesy: Teeua Taukaro., CC BY-ND

Having re-established the Association of Atomic Cancer Patients in 2009, Teeua has continued much of the work that Ken McGinley, first chair of the British Nuclear Tests Veterans Association, did after its establishment in 1983. She has documented the names of all I-Kiribati people present during the tests, along with their spouses, children and other relatives. And she has listed the cancers and illnesses from which they have suffered.

In the absence of medical records at the island hospital, these handwritten notes are the closest thing on the atoll to epidemiological data about the tests. But according to Teeua, concerns about the health effects of the tests date back much longer, to 1965 when a labourer named Bwebwe spoke out about poisonous clouds. “Everyone thought he was crazy,” Teeua recalled.

But Bwebwe’s speculations were lent credibility by Sui Kiritome’s testimony, and by the facial scars she bore that were visible for all to see. In an interview with her daughter, Sui explained how she was only 24 when she started to lose her hair, and “burns developed on my face, scalp and parts of my shoulder”.

In a similar manner to claims made by British nuclear test veterans, Sui attributed her health problems to being rained on during Grapple Y – which may have been detonated closer to the atoll’s surface than the task force was prepared to admit.

When I asked Teeua why her campaigning association was only reformed in 2009, she explained it had been prompted by a visit from British nuclear test veterans who “told us that everyone [involved in the tests] has cancer – blood cancer”. They had been told this in the past but, she said, “we did not believe it. But after years … after our children [also] died of cancer, then we remembered what they told us.”

After some visiting researchers explained to Teeua and the community that the effects of the tests were “not good”, she concluded that “our kids died of cancer because of the tests … That’s why we start to combine together … the nuclear survivors, to talk about what they did to our kids”.

I found Teeua’s testimony deeply troubling: not only because of the suffering she and other families have been through, but in the way that veterans had returned to Kiritimati as civilians, raising concerns among locals that may have lain dormant or been forgotten. The suggestion that radiation was “in her blood” must have been deeply disturbing for Teeua and her community.

But I reminded myself that the veterans who came looking for answers in 2009 were also victims. They made the long journey seeking clues about their health problems, or a silver bullet to prove their government’s deception over the nuclear fallout.

As young men, they were unwittingly burdened with a lifetime of uncertainty – compounded by endless legal disputes with the Ministry of Defence or inconclusive health studies that jarred with their personal medical histories. And, like the islanders, some of these servicemen died young after experiencing agonising illnesses.

The scramble for the Pacific

My research on British nuclear imperialism also sheds light on how imperial and settler colonial perceptions of “nature” shaped how these nuclear tests were planned and operationalised.

British sites were selected on the basis of in-depth environmental research. When searching the site for Britain’s first atomic bomb (the Montebello Islands off the west coast of Australia), surveyors discovered 20 new species of insect, six new plants, and a species of legless lizard.

Monitoring of radioactive fallout from nuclear tests fed into the rise of ecosystem ecologies as an academic discipline. In the words of one environmental specialist on the US tests, it seemed that “destruction was the enabling condition for understanding life as interconnected”.

Since H-bombs would exceed the explosive yield deemed acceptable by Australia, Winston Churchill’s government in the mid-1950s had been forced to look for a new test site beyond Western and South Australia. British planners drew on a wealth of imperial knowledge and networks – but their proposal to use the Kermadec Islands, an archipelago 600 miles north-east of Auckland, was rejected by New Zealand on environmental grounds.

So, when Teeua and her family landed on Kiritimati in 1955, their journey was part of “the scramble for the Pacific”: a race between Britain and the US to lay claim to the sovereignty of Pacific atolls in light of their strategic significance for air and naval power.

The British government archives include some notable environmental “what ifs?” Had the US refused the UK’s selection of Kiritimati because of its own sovereignty claim, then it would have been probable, as Lennox-Boyd, Britain’s colonial secretary, admitted, that “the Antarctic region south of Australia might have to be used” for its rapidly expanding nuclear programme.

Instead, this extraordinary period in global history recently took me to a Victorian mansion in the Lancashire town of Burnley, where I interviewed Teeua’s younger sister, Teraabo, about her memories of the Kiritimati tests.

‘No longer angry’

Teraabo’s home felt like the antithesis of Teeua’s island abode 8,300 miles away: ordered instead of haphazard, private instead of communal, spacious instead of crowded. And our interview had a more detached, philosophical tone.

Teraabo Pollard with her father’s nuclear test veteran medal.
Christopher R. Hill., CC BY-ND

Like her sister, Teraabo has worked to raise awareness about the legacy of the nuclear tests, including with the Christmas Island Appeal, an offshoot of the British Nuclear Test Veterans Association that sought to publicise the extent of the waste left on Kiritimati from the nuclear test period.

The appeal succeeded in persuading Tony Blair’s UK government to tackle the remaining waste in Kiritimati – most of which was non-radiological, according to a 1998 environmental assessment. The island was “cleaned up” and remediated between 2004 and 2008, at a cost of around £5 million to the Ministry of Defence. Much of the waste was flown or shipped back to the UK, where 388 tonnes of low-grade radioactive material were deposited in a former salt mine at Port Clarence, near Middlesbrough.

Yet Teraabo’s views have evolved. She told me she is “no longer angry” about the tests, a stark contrast to her position 20 years ago, when she told British journalist Alan Rimmer how islanders had “led a simple life with disease virtually unknown. But after the tests, everything changed. I now realise the whole island was poisoned.”

Whereas the Teraabo of 2003 blamed “the British government for all this misery”, she has since become more reflective. In the context of the cold war and the nuclear arms race, she even told me she could understand the British rationale for selecting Kiritimati as a test site. This seemed a remarkable statement from a survivor who had lost so much.

Over the course of the interview, it became clear Teraabo had grown tired of being angry – and that she had felt “trapped” by the tragic figure she was meant to represent in the campaigns of veterans and disarmers. Each time Teraabo rehearsed the doom-laden script of radiation exposure, she admitted she was also suppressing the joy of her childhood memories.

A turning point for Teraabo seems to have come in 2007, when she last visited Kiritimati and met her sister Teeua. By this time, the atoll’s population was 4,000 – quite a leap from the 300 residents she grew up with. “It is no longer the island I remember,” she said.

The Kiritimati of Teraabo’s memory was neat and well-structured. The one she described encountering in 2007 was chaotic and unkempt. She had come to the realisation that the Kiritimati she had been campaigning for – the pristine, untouched atoll of her parents – had long since moved on, so she should move on with it. The sorrow caused by the test operations would not define her.

Radioactive colonialism

Not long after I left Kiritimati in June 2023, the global nuclear disarmament organisation Ican began researching the atoll ahead of a major global summit to discuss the UN Treaty on the Prohibition of Nuclear Weapons. Descendants of Kiritimati’s nuclear test survivors were asked a series of questions, with those who provided the “right” answers being selected for a sponsored trip to UN headquarters in New York.

The chosen representatives included Teeua’s daughter, Taraem. I wondered if the survivors of Kiritimati are doomed to forever rehearse the stories of their nuclear past – a burden that Teeua and Teraabo have had to carry ever since they stood in awe of atomic and thermonuclear detonations more than 60 years ago.

They have had to deal with “radioactive colonialism” all their adult lives – the outside world demanding to see the imprint of radioactivity on their health and memories. But the sisters’ fondness for British order, despite all they have been through, prevails.

Their positive memories of Britain may in part reflect the elevated role of their father, Tekonau Tetoa – a posthumous recipient of the test veteran medal – within the British colonial system. During my visit, I happened upon an old photo of Tekonau, looking immaculate as he hangs off the side of a plantation truck in a crisp white shirt. Knowing Teeua did not possess a photo of her parents, I took a scan and raced to her house down the road.

“Do you recognise this man?” I asked, holding up my phone.

She flickered with recognition. “Is that my father?”

I nodded, and she shed a tear of joy.

Tekonau Tetoa, father of Teeua and Teraabo, hangs off the door of a coconut plantation truck in Kiritimati.
Courtesy: John Bryden., CC BY-ND

Memories of Teeua and Teraabo’s father are preserved in the island landscape of their youth: pristine, regimented by the ostensible tidiness of colonial and military order.

But such order masked contamination: an unknown quantity that would only become evident years later in ill-health and environmental damage. It was not only the nuclear tests: from 1957 to 1964, the atoll was sprayed four times a week with DDT, a carcinogenic insecticide, as part of attempts to reduce insect-borne disease. In the words of one of the pilots: “I had many a wave from the rather fat Gilbo ladies sitting on their loos as I passed overhead, and gave them some spray for good measure!” British tidiness concealed a special brand of poison.

Today, the prospect of a meaningful response from the UK to the concerns raised by the islanders and servicemen alike seems slim. In October 2023, the UK and France followed North Korea and Russia in vetoing a Kiribati and Kazakhstan-proposed UN resolution on victim assistance and environmental remediation for people and places harmed by nuclear weapons use and testing.

Over in Kiritimati, meanwhile, Teeua still tends to a small plot where Prince Philip planted a commemorative tree in April 1959, shortly after the British-led nuclear tests had ended. It is rumoured he did not drink from the atoll’s water while he was there.

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Christopher Hill receives funding from the Office for Veterans’ Affairs, UK Cabinet Office. The research for this article was also supported by funding from the Arts and Humanities Research Council (AHRC), UKRI. The author wishes to thank the following for their support with this article: Fiona Bowler, Ian Brailsford, Joshua Bushen, John Bryden, Jon Hogg, Brian Jones, Rens van Munster, Wesley Perriman, Maere Tekanene, Michael Walsh, Rotee Walsh and Derek Woolf. Sincere thanks to Teeua Tekonau and Teraabo Pollard for sharing their family stories.

– ref. ‘Our nuclear childhood’: the sisters who witnessed H-bomb tests over their Pacific island, and are still coming to terms with the fallout – https://theconversation.com/our-nuclear-childhood-the-sisters-who-witnessed-h-bomb-tests-over-their-pacific-island-and-are-still-coming-to-terms-with-the-fallout-239780

MIL OSI – Global Reports –

January 25, 2025

MIL-OSI Global: King Charles heckled in Australia: the crown’s role in Indigenous rights in the Commonwealth

Source: The Conversation – UK – By Philip Murphy, Director of History & Policy at the Institute of Historical Research and Professor of British and Commonwealth History, School of Advanced Study, University of London

That the recent visit of King Charles to Australia – his first as the country’s sovereign – attracted protests will have come as a surprise to very few people.

The right-wing press in the UK anticipated some kind of snub to Charles from republican, “woke leftist” Australians. The palace had prepared the ground for the visit in a letter to the non-partisan independence group the Australian Republican Movement which repeated its longstanding position that, as with any of the other Commonwealth realms, the question of whether the country became a republic was “a matter for the Australian public to decide”.

But the message from the most prominent protester was, perhaps, less expected. At the end of a speech by the king at Parliament House in Canberra on October 21, he was heckled by Lidia Thorpe, an independent senator of Aboriginal (Djab Wurrung, Gunnai and Gunditjmara) origin.

She told him: “You committed genocide against our people. Give us our land back. Give us what you stole from us – our bones, our skulls, our babies, our people.”

Earlier in the day, Thorpe had issued a statement outlining her position. In it, she claimed:

As First Peoples, we never ceded our Sovereignty over this land. The crown invaded this country, has not sought treaty with First Peoples, and committed a genocide of our people. King Charles is not the legitimate sovereign of these lands. Any move towards a republic must not continue this injustice. Treaty must play a central role in establishing an independent nation. A republic without a treaty must not happen.

Historic treaties

The recognition of the rights of Aboriginal peoples through a formal treaty has been a demand of Australian indigenous rights campaigners for decades. Indeed, Australia is unusual among British settler colonies in the failure of the crown to forge treaties with Indigenous peoples in the process of imperial occupation. In New Zealand and Canada these treaties continue to be invoked as an historical underpinning of indigenous rights.

The 1840 Treaty of Waitangi between Māori leaders and the crown as well as the rights and principles that followed from it are certainly politically contentious in New Zealand. Yet the Treaty is still widely regarded as the country’s founding document and a key symbolic basis for inclusion and reconciliation.

In Canada, the treaties signed by the crown with First Nations peoples are explicitly referenced in the country’s 1982 constitution and are cited by the Canadian government as “a framework for living together and sharing the land Indigenous peoples traditionally occupied.”

It should not come as much of a surprise that the issue of the the absence of similar treaties in Australia has been raised during the king’s visit. The rather dull itineraries of royal visits provide activists with a perfect opportunity to have their voices heard by journalists desperate for something interesting to write about. There is a history of Aboriginal protesters using them in this way.

In 1972, the Larrakia people, the traditional owners of the Darwin region in the Northern Territory, used a visit by Princess Margaret to draw attention to a petition asking Queen Elizabeth II to assist them in their demand for land rights and political representation.

The palace and the governments of the Realms are keenly aware of these sensitivities and plan royal tours accordingly. During his visit to Canada in 2022, for example, while he was still Prince of Wales, Charles made a point of meeting the survivors of the country’s notorious residential schools where thousands of indigenous children suffered abuse.

Ironically, indigenous treaties with the crown have complicated the republican issue, forcing campaigners for a republic in both New Zealand and Canada to offer assurances that the rights and obligations in those treaties would not be lost if the monarchy was to be abolished.

The question of reparations

Charles has followed his Australia visit by flying to Samoa for the summit of the Commonwealth Heads of Government. Again, the UK press sensed trouble ahead, predicting that as head of the Commonwealth Charles might be caught up in a row between the British government and Caribbean nations over the call for reparations for slavery.

The UK is not the only government in the Commonwealth having to wrestle with colonial legacy issues. But there is no avoiding them.

Britain has a monarchy steeped in imperial history, with a king who is quite separately sovereign of 14 other realms. Its government continues to profess a belief in the value of the Commonwealth, when its members have little else in common except that most of them were colonised by Britain.

A recent report by the UK thinktank Policy Exchange, which imagined the Commonwealth playing a greater role in British diplomatic, defence and trade policy, seemed blithely unaware of the tensions within the organisation and the barriers to collective action.

In a similar vein, UK prime minister Keir Starmer has claimed that he wants to “look forward” and focus on issues such as climate change and boosting prosperity rather than reparations.

But the Commonwealth is simply not a logical framework for the discussion of these matters. On the other hand, it is uniquely qualified to debate the impact of colonialism and the question of reparatory justice. And even if Britain doesn’t want to have that conversation, other Commonwealth countries certainly do.

Philip Murphy has received funding from the AHRC. He belongs to the European Movement UK.

– ref. King Charles heckled in Australia: the crown’s role in Indigenous rights in the Commonwealth – https://theconversation.com/king-charles-heckled-in-australia-the-crowns-role-in-indigenous-rights-in-the-commonwealth-241993

MIL OSI – Global Reports –

January 25, 2025

MIL-OSI USA: Smucker Named Friend of the Farm Bureau

Source: United States House of Representatives – Representative Lloyd Smucker (PA-16)

Fawn Grove, PA – Rep. Lloyd Smucker (PA-11) has been named a recipient of the Friend of the Farm Bureau Award for the 118^th Congress, given to Members of Congress who support legislation benefiting agriculture, farmers, and producers.

Rep. Smucker received the award during a visit to Maple Heights Farm in Fawn Grove, a third-generation grain farm operated by Julie Schrum, a member of the Pennsylvania Farm Bureau (PFB) Board of Directors.

“The men and women of Pennsylvania’s 11^th Congressional District, home to the Garden Spot of America and one of the largest agricultural districts in our Commonwealth, can count on me to advocate for policies in Congress that support farmers and producers. Our agricultural heritage is at the heart of our community. I will continue to fight for a Farm Bill that supports our community and farmers across the nation, as well as a pro-growth tax agenda that helps family-owned farms compete and be passed down from generation to generation,” said Rep. Lloyd Smucker (PA-11).

“On behalf of Pennsylvania Farm Bureau, the state’s largest general farm organization, we would like to thank these members of Pennsylvania’s congressional delegation for supporting legislation that benefits agriculture,” said PFB President Chris Hoffman.

“The support from our Friend of Farm Bureau recipients helps preserve the future of family farms in Pennsylvania, maintain our ability to produce safe and affordable food for consumers, and provide resources to assist farmers in implementing conservation practices on the farm. With record-high input costs and an increase in red tape, farm families have been greatly challenged in recent years. Continued support by lawmakers to implement sound agricultural policy is vital to ensure food and national security.”

Rep. Smucker is one of only seven of Pennsylvania’s elected officials who were selected to receive the award for the 118^th Congress. Smucker has been named a recipient of the Friend of the Farm Bureau during each term of his congressional service.

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MIL OSI USA News –

January 25, 2025

MIL-OSI USA: Rep. Sewell Announces $43.7 Million for Water Infrastructure in Alabama

Source: United States House of Representatives – Congresswoman Terri Sewell (AL-07)

Birmingham, AL – Today, U.S. Rep. Terri Sewell (AL-07) announced that the U.S. Environmental Protection Agency (EPA) is investing $3.6 billion in new funding under the Biden-Harris Administration’s Bipartisan Infrastructure Law to upgrade our nation’s water infrastructure, including $43.7 million for the State of Alabama. This funding will help communities across Alabama upgrade water infrastructure that is essential to safely managing wastewater and drinking water in our homes, schools, and businesses.

“I voted for the Biden-Harris Infrastructure Law because it promised to make the largest investment in wastewater and drinking water infrastructure in our nation’s history,” said Rep. Sewell. “Thanks to the Biden-Harris Administration, we are delivering on that promise. I am thrilled to announce that Alabama will receive over $43.7 million to help communities upgrade wastewater and drinking water infrastructure. Access to clean water is a basic human right, and this investment represents critical progress in our continued fight for equitable and safe wastewater systems. I thank President Biden and Vice President Harris for this historic investment, and I look forward to working with the State of Alabama to ensure these new resources reach the communities that need them most.”

“Water keeps us healthy, sustains vibrant communities and dynamic ecosystems, and supports economic opportunity. When our water infrastructure fails, it threatens people’s health, peace of mind, and the environment,” said EPA Administrator Michael S. Regan. “With the Bipartisan Infrastructure Law’s historic investment in water, EPA is working with states and local partners to upgrade infrastructure and address local challenges—from lead in drinking water, to PFAS, to water main breaks, to sewer overflows and climate resilience. Together, we are creating good-paying jobs while ensuring that all people can rely on clean and safe water.”

The Bipartisan Infrastructure Law funds will flow through the Clean Water and Drinking Water State Revolving Funds (CWSRF and DWSRF), a long-standing federal-state water investment partnership. This multibillion-dollar investment will fund state-run, low-interest loan programs that address key challenges in financing water infrastructure. Today’s announcement includes allotments for Bipartisan Infrastructure Law Clean Water General Supplemental funds for Alabama ($27,824,000), Emerging Contaminant funds ($2,402,000), and ($13,490,000) under the Drinking Water Emerging Contaminant Fund.

This funding is part of a five-year, $50 billion investment in water infrastructure through the Bipartisan Infrastructure Law – the largest investment in water infrastructure in American history. To ensure investments reach communities that need them the most, the Bipartisan Infrastructure Law mandates that most of the funding announced today must be provided to disadvantaged communities in the form of grants or loans that do not have to be repaid.

To read stories about how unprecedented investments in water from the Bipartisan Infrastructure Law are transforming communities across the country, visit EPA’s Investing in America’s Water Infrastructure Storymap. To read more about additional projects, see EPA’s recently released Quarterly Report on Bipartisan Infrastructure Law Funded Clean Water and Drinking Water SRF projects.

For more information, including the state-by-state allocation of 2025 funding and a breakdown of EPA SRF funding available under the Bipartisan Infrastructure Law, please visit the Clean Water State Revolving Fund website and Drinking Water State Revolving Fund website. Additionally, the SRF Public Portal allows users to access data from both the Drinking Water and Clean Water SRF programs through interactive reports, dashboards, and maps.

The State Revolving Fund (SRF) programs have been the foundation of water infrastructure investments for more than 30 years, providing low-cost financing for local projects across America. SRF programs are critically important programs for investing in the nation’s water infrastructure. They are designed to generate significant and sustainable water quality and public health benefits across the country. Their impact is amplified by the growth inherent in a revolving loan structure, in which payments of principal and interest on loans become available to address future needs.

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MIL OSI USA News –

January 25, 2025

MIL-OSI Video: Addressing the Humanitarian Crisis in Gaza

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

Today, we’re announcing an additional $135 million dollars in humanitarian assistance — water, sanitation, maternal health — for Palestinians in Gaza as well as in the region. – Secretary Blinken from Doha, Qatar on October 24, 2024.

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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.

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

MIL OSI Video –

January 25, 2025

MIL-OSI United Kingdom: Local Government Association Conference

Source: United Kingdom – Executive Government & Departments

A speech from the Deputy Prime Minister

Location:: Harrogate
Delivered on:: 24 October 2024 (Transcript of the speech, exactly as it was delivered)

Firstly, I want to say a massive thank you to you, some of our most dedicated, brilliant public servants in this room.

For everything that you do, every day, to keep our country going.

You’ve shown remarkable resilience through some tough – and very tough – years.

During the pandemic, you kept vital services running in our communities.

Through this period of economic instability, you’ve made tough choices to protect the most vulnerable.

And following a summer of violent far-right disorder, you stood up for the values of decency and community that define our country.

And time and again, you step forward to support your local communities.

Now, I understand that this conference was originally planned for just before the General Election.

I have to admit that I’m much happier to be stood here as your Deputy Prime Minister!

Last year in Bournemouth, I said that if we were elected, we would deliver a plan for change.

A new way of governing. A government of public service.

And just over 100 days into government and we are getting on with the job.

We’re fixing the foundations to build a country that works for working people.

And local government is at the heart of this vision.

Because as you all know, I am a creature of local government.

I loved my job as a home help for Stockport council.

And I learned the importance of a good local service, and what it meant to really know and trust your community.

Back then, local government wasn’t on its knees.

Don’t get me wrong, things weren’t easy.

But we had the time and resource to provide a good service.

I know that good, functioning local government looks like great working with a good central government working in genuine partnership to deliver better outcomes.

So I know we can’t deliver true change for Britain without the support of every one of you in this room.

We can’t deliver for our missions without you.

Take our plans to deliver 1.5 million homes, including a new generation of secure, social and affordable homes.

The delivery of safer streets, an NHS and social care system that’s back on its feet.

The sustained economic growth we need to raise living standards.

And the strong communities on which good lives are built.

That’s why, in my very first week in the job – as Secretary of State for Housing, Communities and Local Government – I put local government back where it belongs.

At the heart of my department’s name and mission. 

And I’m lucky I have Jim by my side, the Minister of State for Local Government – who has run a council and knows local government from the inside out – and he’s here with me today and as part of the team.

Louise, your new Chair, also represents the best of local government – a fierce commitment to public service and leadership steeped in years of experience – not too many years, but a few.

And the fact that her predecessor, Shaun, has now joined us in the House of Commons just goes to show we are a government that believes in the power of local government.

We know what’s possible when you give people with skin in the game the power to change lives.

And, after an incredibly difficult few years, it’s time to unleash that power.

Which means resetting our relationship with local government and rebuilding its foundations.

It means ditching the slogans and gimmicks and going back to basics: delivering services that people can rely on.

You don’t need me to tell you how much harder that job has been after fourteen years of neglect.

[Redacted political content]

Councils stuck in a doom loop with money pouring out of a system with too many cracks.

And it isn’t just the scandal of wasted money. It’s the heartache of the wasted lives and potential.

[Redacted political content]

For all the promises about localism and levelling up, there was an assumption that if something needed doing, it should be done from Whitehall.

With central government hoarding power, micromanaging you, intervening in an uncoordinated and unhelpful way.

A begging-bowl system of wasteful competitive pots that led to councils bidding to pay for chess tables in public parks.

No more.

We’re going to turn the page on this failed approach – bringing local government into the heart of government.

As part of a partnership based on honesty and respect.

And it’s in that spirit that we need to face up to the financial crisis facing local government.

We all know that there’s no quick fix.

The dire public finances – the £22 billion black hole – we’ve inherited mean that it’s going to take hard graft on all sides to get us back on the road to recovery.

We knew things were bad, but on entering office, we uncovered a shocking crisis in local government which was far beyond what we had anticipated.

Councils of all political stripes have been left shelling out millions to plaster over the government’s mismanagement.

[Redacted political content]

To make matters worse, we discovered that over the last decade, the last [Redacted political content] government ripped away any financial oversight of council spending, scrapping the Audit Commission and pushing councils to borrow more and more.

This reckless approach has left the government with no transparent system in place to warn the public when a council is struggling.

And more and more authorities are struggling to stay afloat with communities in the most deprived parts of our country disproportionately affected, through cuts to services that they desperately depend on, as people’s [inaudible] go up.

And get it.

And I know we need change urgently.

You’ve all heard me say it – I’m going provide multi-year funding settlements, that will give you the stability and certainty to plan and invest for the long-term.

And that we will end the Dragon’s Den-style bidding wars between councils for competitive funding pots.

Instead, we’ll show you some respect with long-term funding, giving you flexibility to spend it where it is needed. 

And through the next Local Government Finance Settlement and beyond, we will provide more detail on how this is going to work.

Let me be clear that we can’t fix the system overnight.

[Redacted political content]

And I have to say, looking at the numbers we inherited, I am shocked by the scale of neglect.

It is going to be a long, hard slog to get local government back on its feet.

And in the short term, we’re doing all that we can to protect severely struggling councils, which is why I can announce that we are scrapping the punitive ‘pay day loan’ premium on borrowing for councils in need of Exceptional Financial Support.

This government will take a collaborative and a constructive approach to councils in financial difficulty.

You know I can’t go into detail about the Spending Review.

So let me talk to you today about things that I can tell you.

Fundamentally, I want to work together, across central and local government to reform high-cost public services and focus on preventing people from needing them in the first place.

Tackling profiteering in broken markets serving vulnerable groups, like we’ve seen in some of the private children’s homes.

When it comes to prevention, there can be few bigger priorities for us than preventing homelessness – one of the biggest pressures that you face.

By getting Britain building again. Speeding up the planning system and reintroducing mandatory housing targets.

I know that this will mean asking more from local councils.

Which is why we’re boosting the number of planners.

As part of our plans, to strengthen local planning departments and reinforce planning obligations to deliver more affordable homes on new developments – we will support you to hold developers to account.

And it’s why we’re also reviewing Right to Buy, to stem the loss of precious council homes.

But we’ll also tackle homelessness directly, by learning lessons from the past and working with local leaders to take action on all forms of homelessness.

We will develop a cross-government strategy to get us back on track to end homelessness.

We will also reform the broken local audit system in England that we inherited.

This should be the bedrock of local accountability and transparency, of trust and confidence in local democracy.

Instead, last year, just one percent of local bodies were able to publish audited accounts by the deadline.

This cannot go on.

We have already taken decisive action to introduce backstop dates to clear the backlog in unaudited accounts.

Local audit will and must provide value for money for the taxpayers and be fit for the future.

And similarly, when the way councils are run has gone wrong, central government hasn’t always responded constructively.

Instead kicking councils when they’re down for political reasons.

This Labour government are going to do things differently.

We will work with every council that needs it to put in place clear, deliverable plans to address problems and protect local taxpayers, rather than treating them as political footballs.

That’s the approach we’re taking in Birmingham.

Significant challenges continue to face the city council, but we’re going to work with the councillors and the community to solve them in partnership.

Birmingham has huge potential – and we’re going to work closely with the partners across the West Midlands to unlock that potential, including with the Mayor Parker of the West Midlands Combined Authority.

And that’s the change that we represent.

Not punishment, but collaboration.

Getting places into a stable financial footing by, yes, making difficult decisions, but with the interests of residents at the heart.

Our aim is to support councils to perform at their very best.

Councillor conduct / standards framework

Standards in local government matter – both the delivery of services and personal conduct.

Every decision you make has an impact on the daily lives of those you serve.

And most councillors meet the highest standards of public office and I am so proud to be representing you in government.

But sadly we all know there are rare occasions where bad behaviour occurs.

I’ve been made aware of cases of persistent bullying and harassment by councillors, even, in some cases, leading to victims’ resignations.

We don’t have a system that protects victims or empowers councils to deal with unacceptable behaviour.

And this cannot go on and we will give councils the powers to address poor conduct.

We will consult on reforms to the local government standards framework, including a proposal to allow for the suspension of members who violate codes of conduct.

But we also recognise that too often, councillors become victims themselves.

Too often I speak to dedicated councillors who are facing death threats and intimidation.

And I take this very seriously and recognise the impact this has on the lives of dedicated public servants and their families.

That’s why we are taking decisive action to prevent councillors from being subjected to intimidation and harassment by removing the requirement for members’ home addresses to be published.

[And I want you to know] this is a government that respects and appreciates the huge contribution made by councillors who work tirelessly for residents – and we will always have your back.

We are also taking a more collaborative approach to pressing issues like the widespread workforce challenges you are experiencing.

Ninety-four per cent of councils say they’re having difficulties with recruitment and retention.

This isn’t just your problem – it’s all our problem because council staff are on the frontline serving local communities.

So, we’re ready to work hand in hand with you to find creative solutions to staffing issues.

We’ll launch a Workforce Development Group in partnership with the sector to gain a shared understanding of the most immediate priorities and focus our efforts on where we can add the most value to your work.

And when we say we’ll work in partnership with the sector, every step of the way, we mean it.

I have formally launched our new Leaders’ Council at this very conference – which will give local government a voice at the heart of government – this a mark of just how seriously we take this.

The Council will bring together local government leaders and ministers to tackle shared problems and deliver for the communities they all ultimately serve.

We will use it to learn from the exciting innovations that councils are pioneering.

And we hugely respect your knowledge and expertise.

But it’s more than that.

The Leaders’ Council will be critical for co-designing policy at the highest levels.

And I look forward to working closely with the Council over the coming years.

Gone are the day of diktats from above.

It is time for those with skin in the game to be put in the driving seat.

That is what our devolution agenda is all about.

We will make it easier for you to come together and form combined authorities and devolve more powers to existing ones – meaning access to new powers over skills, transport and employment support.

Our landmark English Devolution Bill will deliver our manifesto commitment to transfer power out of Whitehall, making devolution the default setting.

And look, I know the coming years won’t always be easy, but I’m confident that, working in partnership, we can fix the basics so that you can focus on the things that really matter to our and your communities.

My starting point is that we should be clear about what we ask of you and then give you the autonomy and the support you need to deliver.

So, where we don’t need to get involved, we won’t.

It’s not our place, for example, to decide whether councillors should attend your meetings remotely or use proxy votes when they need to.

So, I can announce today that we’re putting forward proposals to let councils make the decision for themselves.

Which means making it possible for people from all walks of life to have a stake in local democracy, whether they have caring responsibilities or aren’t able to make it to the town hall in person because of illness or disability.

It’s right that we make it easier for more people to get involved in making their community a great place to live.

It’s also right that we expect the highest standards of local government – with central government playing its part as a responsible steward.

And for me this is personal.

I’m passionate about backing you with the long-term funding and certainty that you need.

The powers you need.

And the new relationship that we all need.

So local government can once again be a strong, functioning arm of the state, providing public services that people can rely on.

And I want to thank you, once again, for everything that you do for our communities.

This is a government of service that is on your side.

And the road ahead won’t always be a smooth path, but we will walk it together and build a better Britain.

Thank you.

Published 24 October 2024

MIL OSI United Kingdom –

January 25, 2025

MIL-OSI United Kingdom: Extensive support on claiming Pension Credit rolled out as city council ramps up help on ‘Cost of Living’ crisis

Source: City of Stoke-on-Trent

Stoke-on-Trent City Council is committing further help to support people through the ‘Cost of Living Crisis’ this winter.

As the clocks go back later this week, the city council is renewing its pledge to help residents across Stoke-on-Trent meet their fuel and food bills.

The measures include ensuring everyone who is entitled to Pension Credit is supported to claim it and providing six-figure funding to Citizens Advice, through the Government’s UK Shared Prosperity Fund, to offer financial MOTs to residents.

At today’s city council meeting (October 24), Council Leader, Councillor Jane Ashworth, outlined the proactive approach the authority is taking to help eligible residents claim for Pension Credit.

Among the measures are a letter which has been sent to all residents who the council has identified as potentially being eligible for Pension Credit, to encourage them to claim for the support.

Pension Credit take-up has also been encouraged and promoted through social media and other council media channels and newsletters. Meanwhile, city council housing and revenue, benefits and financial assessment officers are helping to signpost people they come into contact with towards support, where appropriate.

Flyers are also being printed to be distributed around the city in a targeted approach.

In addition, The Department of Work and Pensions is undertaking its own advertising campaigns by joining forces with charities, broadcasters and a range of partners to encourage people to claim.

Official statistics from February 2024 show that 6,233 people are claiming Pension Credit in the city, and a total of 42,661 residents are in receipt of state pension.

According to the latest figures from the National Audit Office, it is estimated that three quarters of those eligible for Pension Credit are claiming it. This means that an estimated 2,000 people need to be identified in Stoke-on-Trent who are eligible but have not claimed.

Cllr. Ashworth said: “We have sent letters to all residents who are potentially eligible for Pension Credit, based on the current council tax support and housing benefit data we hold, and we will continue to work with internal and external agencies to ensure all our residents are receiving the support they are entitled to.

“Our officers are also regularly signposting households to support services, where appropriate.

“Additionally, through our Help is at Hand campaign, which was launched to help support families through the ‘Cost of Living Crisis’, we have supported over 5,500 households in the city with advice and assistance to help alleviate fuel poverty, this includes referrals for grant support, fuel vouchers, debt advice and water tariff assistance.

“This is all part of our commitment to make Stoke-on-Trent a healthier, wealthier and safer place to live.”

The council is also providing funding to Citizens Advice, through the Government’s UK Shared Prosperity Fund, so they can offer financial MOTs to residents. The funding for 2024/25 is £105,000 and that is on top of £70,000 provided in 2023/24.

The measures come on the back of a whole raft of support the council has introduced over the last few months to help people through the ‘Cost of Living’ crisis.

This includes:

The Household Support Fund – a £2.7 million fund received from Government, which the city council is using to help families with eligible children during the Christmas holidays along with support to residents with fuel costs and buying white goods, beds and hygiene supplies.

The #Help Is at Hand campaign – launched to help support families through the ‘Cost of Living’ crisis. So far, more than 5,500 households in the city have been supported with advice and assistance to help alleviate fuel, food and financial poverty. This includes referrals for grant support, fuel vouchers, debt advice and water tariff assistance.

A Benefits Calculator – which is available online (entitledto.co.uk). Residents can complete the form with their household details to discover if they would be entitled to any support.

Regular Money Matters events – Benefits Assessors have attended Money Matters events to enable residents to seek advice and support directly from a Benefits Officer.

Community Lounges – The council has 18 community lounges. These offer welcoming spaces to connect with experts and receive helpful information and guidance on a wide range of topics, including financial stability, maximising benefits and overcoming fuel poverty.

Council tax support and Council tax hardship relief fund – set up to help residents pay their bill if they are unemployed on low income or in severe financial difficulties (subject to eligibility criteria).

Sustainable Food Network – a cross-sector partnership led by YMCA North Staffordshire and VAST which supports the health, wellbeing and prosperity of communities by prioritising food availability, food affordability and food sustainability.

Councillor Sarah Jane Colclough, cabinet member for education and anti-poverty, said: “There is a vast amount of co-ordinated advice around the city, from budgeting and energy efficiency advice to food support and sustainable healthy eating.

“I would encourage anyone who is experiencing concerns to reach out and access support as early as possible to prepare for any financial or other difficulties over the winter months”

For more details, visit the dedicated Cost of Living section on Stoke-on-Trent City Council’s website – stoke.gov.uk/help is at hand

MIL OSI United Kingdom –

January 25, 2025

MIL-OSI USA: Chavez-DeRemer Joins Oregon Delegation in Seeking Federal Help for State’s Record Fire Season

Source: United States House of Representatives – Lori Chavez-DeRemer (OR-05)

Citing severe damages to Central and Eastern Oregon, lawmakers’ letter asks President Biden “to swiftly provide the federal resources for our communities to recover and rebuild.”

WASHINGTON, D.C. – Oregon’s entire congressional delegation, including Reps. Lori Chavez-DeRemer, Cliff Bentz, Earl Blumenauer, Suzanne Bonamici, Val Hoyle, Andrea Salinas, and Sens. Ron Wyden and Jeff Merkley, are urging President Biden to grant the governor’s request for Oregon to receive a major disaster declaration in response to record-setting wildfires that burned about three times the average acreage this year.

“The 2024 wildfire season has been one of the most devastating and costly fire seasons on record,” the lawmakers wrote. “Central and Eastern Oregon experienced intense heat waves this summer, which dried out vegetation and created extreme fire risk on the landscape. Severe lightning storms ignited a large number of fires, and windy conditions allowed many of these fires to spread rapidly.”

“Over 1.9 million acres burned, making it the largest wildfire season by acreage in Oregon’s history. For context, the state’s 10-year average acres burned is 640,000 acres,” they continued. “The estimated damages and cost to public infrastructure exceeds $650 million, and this figure does not account for the long-term loss in revenue local businesses will experience as a result of these fires.“

The delegation wrote that this year’s extreme infernos and severe storms hit Gilliam, Grant, Jefferson, Umatilla, Wasco, and Wheeler counties hardest.

“The fires destroyed 42 homes and 132 additional buildings and structures, damaged critical infrastructure and the natural environment, interrupted schools, care facilities, and social services, injured 26 civilians and fire responders, and led to the death of an air tanker pilot,” the lawmakers wrote. “These fires have also created profound hardship for our ranchers, as they destroyed private and public grazing lands and cut off access to essential resources for livestock.”

In their letter supporting the governor’s request for federal disaster assistance, the Oregon lawmakers asked the Biden-Harris administration to ensure state, local, and tribal governments have access to all available resources through the Federal Emergency Management Agency and that the state’s cost-share be waived due to a lack of available state funding.

“Oregonians now require federal support and assistance to navigate the aftermath of this unprecedented fire season. The back-to-back incidents and lack of basic services had a devastating effect on the safety and stamina of our fire crews,” the delegation wrote. “We urge you and your administration to swiftly provide the federal resources for our communities to recover and rebuild.”

Full text of the letter is available HERE.

###

MIL OSI USA News –

January 25, 2025

MIL-OSI USA: Manchin, Bipartisan Colleagues Push for Maximum H2-B Visas to Support Small Businesses in 2025

US Senate News:

Source: United States Senator for West Virginia Joe Manchin

October 24, 2024

H-2B visas help employers fill temporary, seasonal positions

Charleston, WV – U.S. Senator Joe Manchin (I-WV) led a bipartisan group of colleagues in urging the Department of Labor (DOL) and the Department of Homeland Security (DHS) to release the maximum allowable number of additional H-2B visas for Fiscal Year (FY) 2025.

H-2B visas allow small businesses across the country, including in West Virginia, to fill vital staffing needs when there are not enough able and willing workers to fill these temporary, seasonal positions. As required by law, employers must first make a concerted effort to hire American workers to fill open positions; when the local workforce is insufficient, H-2Bs can be used as a necessary tool to support local economies. The H-2B visa program allows West Virginia businesses to grow and thrive.

“Many employers turn to the H-2B program to meet their workforce needs to not only sustain their businesses, but also support their American workers. The H-2B program places requirements on employers to recruit U.S. workers, who are intentionally prioritized by the program and also receive demonstrated, positive impacts from their seasonal colleagues,” the Senators wrote in part. “The most current employment data illustrates the workforce struggles of seasonal businesses nationwide. The Department of Labor’s Job Openings and Labor Turnover Surveys (JOLTS) show the rate of job openings have increased year over year for the industries that represent the top five H-2B occupations.”

The letter was also signed by Senators Angus King (I-ME), Mike Rounds (R-SD), John Barrasso (R-WY), Michael Bennet (D-CO), Maria Cantwell (D-WA), Ben Cardin (D-MD), Tom Carper (D-DE), Susan Collins (R-ME), Chris Coons (D-DE), John Cornyn (R-TX), Kevin Cramer (R-ND), Mike Crapo (R-ID), John Fetterman (D-PA), Lindsey Graham (R-SC), Maggie Hassan (D-NH), George Helmy (D-NJ), John Hickenlooper (D-CO), Cindy Hyde-Smith (R-MS), Tim Kaine (D-VA), Amy Klobuchar (D-MN), Cynthia Lummis (R-WY), Jerry Moran (R-KS), Lisa Murkowski (R-AK), Pete Ricketts (R-NE), Jim Risch (R-ID), Jeanne Shaheen (D-NH), Tina Smith (D-MN), Dan Sullivan (R-AK), John Thune (R-SD), Thom Tillis (R-NC), Chris Van Hollen (D-MD), Mark Warner (D-VA), Raphael Warnock (D-GA), Peter Welch (D-VT), Sheldon Whitehouse (D-RI), Roger Wicker (R-MS), Ron Wyden (D-OR), Kyrsten Sinema (I-AZ) and Tim Scott (R-SC).

The full text of the letter is available below and here.

MIL OSI USA News –

January 25, 2025

MIL-OSI USA: Congressman DeSaulnier to Present Funding to Seneca Family of Agencies to Help Protect Contra Costa Children from Exploitation in Martinez on Wednesday, October 30th

Source: United States House of Representatives – Congressman Mark DeSaulnier Representing the 11th District of California

Walnut Creek, C.A. – Today, Congressman Mark DeSaulnier (CA-10) announced he will present funding he secured to Seneca Family of Agencies to help local law enforcement, the probation system, behavioral health partners, and child welfare organizations to identify and respond to commercial and sexual exploitation of children in Contra Costa County on Wednesday, October 30^th. This funding was part of the Consolidated Appropriations Act, 2024 (H.R. 4366), which included a total of $15.2 million in federal funding Congressman DeSaulnier secured for 15 projects across Contra Costa County and Alameda County.

This event is open to press and photographers. Media interested in attending the event should RSVP to Mairead Glowacki at (202) 760-1365 or mairead.glowacki@mail.house.gov.

TIME: Wednesday, October 30^th from 12:15 p.m. – 12:45 p.m. PT

WHERE: 50 Douglas Drive, Martinez, CA 94553

WHAT: Congressman DeSaulnier will present funding he secured for Seneca Family of Agencies to coordinate between law enforcement and community partners to better protect children in Contra Costa County from commercial and sexual exploitation.

WHO:
U.S. Congressman Mark DeSaulnier
Chief Program Officer of Northern California Programs, Seneca Family of Agencies, Lauren Crutsinger
Chief Probation Officer, Contra Costa County, Esa Ehmen-Krause
Chief of Police, San Ramon Police Department, Denton Carlson

MIL OSI USA News –

January 25, 2025

MIL-OSI USA: Senate Intelligence Committee Chairman Presses Domain Registrars Providing Support to Russian Influence Efforts

US Senate News:

Source: United States Senator for Commonwealth of Virginia Mark R Warner

WASHINGTON – U.S. Senator Mark R. Warner (D-VA), Chairman of the Senate Select Committee on Intelligence, today wrote to American domain registrars NameCheap, GoDaddy, Cloudflare, NewFold Digital, NameSilo, and Versign – which were identified in a Department of Justice affidavit as providing domain services to the “Doppelganger” Russian covert influence network – pressing them to take immediate steps to address the continued abuse of their services for foreign covert influence, particularly in the period preceding and following Election Day.

Through the maintenance of both inauthentic social media accounts and websites, the hallmark of the Russian government-directed foreign malign influence campaigns known as “Doppelganger” has been the impersonation of Western media institutions online, including outlets like the Washington Post, Fox News, and Forward. Russian influence operatives have been attributed impersonating dozens of legitimate organizations online as early as September 2022, when researchers at the nonprofit EU Disinfo Lab first identified the network’s campaigns, using misleading domains (such as www.washingtonpost.pm, www.washingtonpost.ltd, www.fox-news.in, www.fox-news.top and www.forward.pw) to covertly spread Russian government propaganda with the aim of reducing international support for Ukraine, bolstering pro-Russian policies and interests, and influencing voters in U.S. and foreign elections, including the 2024 presidential election.

Citing research conducted by Meta in 2023, Warner noted several ways in which the global domain name industry has enabled Russian malign influence activity, including withholding vital domain name registration information from good-faith researchers and digital forensic investigators, ignoring inaccurate registration information submitted by registrants, and failing to identify repeated instances of intentional and malicious domain name squatting used to impersonate legitimate organizations.

Wrote Warner today, “Information included in the affidavit supporting recent seizure of a number of these domains provides further indication of your industry’s apparent inattention to abuses by foreign actors engaged in covert influence. Specifically, Russian influence actors utilized a number of tactics, techniques, and procedures that – against the backdrop of extensive open source literature on Doppelganger’s practices – should have alerted your company to abuse of its services, including the use of cryptocurrency to purchase domains, heavy reliance on anonymizing infrastructure to access your registration services (including the use of IPs widely associated with cybercriminal obfuscation network activity), the use of credit cards issued to a U.S. company “that has significant ties to, and employees based in, Russia,” use of fictitious and poorly-backstopped identities for registrants, and in at least one instance the use of a Russian address.”

Noted Warner, “While foreign covert influence represents one of the most egregious abuses of the domain name system, the industry’s inattention to abuse has been well-documented for years, enabling malicious activity such as phishing campaigns, drive-by malware, and online scams – all possible because of malicious actors using your services… Given the continued lapses of your industry to address these abuses, I believe Congress may need to evaluate legislative remedies that promote greater diligence across the global domain name ecosystem.”

“In the interim, your company must take immediate steps to address the continued abuse of your services for foreign covert influence – particularly in the days preceding, and weeks immediately following, Election Day. With the prospect of a close election – and declassified intelligence demonstrating the past practice of foreign adversaries in spreading narratives that undermine confidence in election processes– Americans will be particularly reliant on media organizations and state and local government websites to provide authoritative and accurate election information. It is imperative that your company work to diminish the risk that foreign adversaries use impersonated domains to promote false narratives in this context,” Warner concluded.

As Chairman of the Senate Select Committee on Intelligence, Warner has been consistently warning about the threat posed by foreign covert influence networks ahead of the 2024 elections. Last month, he convened a public hearing with representatives from Alphabet, Meta and Microsoft examining the roles and responsibilities of U.S. platforms to prevent the spread of foreign propaganda and misinformation on their networks.

A copy of the letters are available here.

MIL OSI USA News –

January 25, 2025

MIL-OSI USA: Ciscomani, Chairman Bost Attend Veteran-Focused Events in AZ06

Source: United States House of Representatives – Congressman Juan Ciscomani (Arizona)

ARIZONA 6th – U.S. Congressman Juan Ciscomani (AZ-06) and House Committee on Veterans’ Affairs Chairman Mike Bost (IL-12) attended several veterans-focused events in Arizona’s 6th Congressional district, which is home to over 70,000 veterans. 

The events included hosting a quarterly meeting with Ciscomani’s Veterans Advisory Council, touring Northstar Neurology’s facilities, attending the Cochise County Veteran StandDown Resource Fair, discussing Cochise College’s Military and Veteran Serving Program, and attending the Fort Huachuca Quarterly Installation Retirement Ceremony.

“As the Representative to over 70,000 veterans that call Arizona’s 6th district home, it is my duty and honor to advocate on their behalf and ensure their needs are prioritized by the federal government,” said Ciscomani. “I am grateful to Chairman Bost for his leadership and taking the time to talk directly with veterans in my district. I will continue to push for legislation, funding, and other efforts that provide comprehensive healthcare, mental health support, educational opportunities, and employment resources to our veterans to empower them to transition successfully into civilian life.”

“As Chairman of the House Committee on Veterans’ Affairs, I was honored to visit with my friend and colleague Rep. Juan Ciscomani in Arizona’s sixth congressional district last week to meet with his veteran community,” said Chairman Bost. “We visited with veterans from all walks of life, including veterans from the Cochise community, and veterans’ survivors to see firsthand how Arizona is leading the way to get veterans and their family’s access to the economic opportunities, education, and outside-the-box mental health support and resources they have earned. House Republicans will continue pushing to cut through the red tape and open more doors for veterans and transitioning active-duty servicemembers across the country. It goes without saying that veterans in southeastern Arizona have no better advocate than my friend, Rep. Ciscomani, fighting for them every day in DC on the issues that matter most to them.”

Veterans Advisory Council

Ciscomani, Bost hosted a quarterly meeting with Ciscomani’s Veteran Advisory Council, which is chaired by Maj. Gen. Don Shepperd (Ret.) and is comprised of veterans from the U.S. Marine Corps, U.S. Air Force, U.S. Army, and U.S. Navy. The council has identified specific areas of focus, which include which include veterans’ transition into civilian life, access to housing, mental health and suicide prevention, and workforce and education opportunities.

Tour of Northstar Neurology

Ciscomani and Bost toured Northstar Neurology, a treatment facility in Tucson founded in 2017 that provides critical help to veterans suffering with a traumatic brain injury or PTSD.

Cochise County Veteran StandDown Resource Fair 

Ciscomani, Bost, and Congressman Tony Gonzales (TX-23) attended the Cochise County Veteran StandDown Resource Fair to speak directly with veterans about the most pressing issues they face and share resources Ciscomani’s office can offer to veterans. 

Cochise College Military & Veteran Serving Program

Ciscomani, Bost visited Cochise College to discuss their Military and Veteran Serving Program and strong partnership with Fort Huachuca to assist active-duty members and veterans and the two new Baccalaureate programs.

Fort Huachuca Quarterly Installation Retirement Ceremony

Ciscomani, Bost attended Fort Huachuca Quarterly Installation Retirement Ceremony to celebrate military retirees. 

Background:

In his freshman term in office, Congressman Ciscomani, who is a member of the House Committee on Veterans’ Affairs, has introduced ten pieces of veterans-focused legislation. These include: 

The VET-TEC Authorization Act of 2023 (H.R. 1669) which extends a popular program that covers costs for veterans seeking job training in high-tech industries. 
The VETS Opportunity Act (H.R. 7896), to expand veterans’ access to educational opportunities for in-demand skilled trade and vocational programs.

The VET MEDS Act (H.R. 5470) to extend the VA’s authority to allow certain healthcare providers to conduct exams across state lines.   
The Veterans’ Appeals Backlog Improvement Act (H.R. 1378) to reduce wait times for veterans seeking disability claims and ensure they are processed faster.  
The Prioritizing Veterans’ Survivors Act (H.R. 7100) to move the Office of Survivors Assistance (OSA) back within the Office of the VA Secretary. This move ensures that OSA has direct access to the Secretary to fix policy and program-wide problems.
The Rural Veterans’ Benefit Improvement Act (H.R. 8881) to ensure veterans have permanent, cross-state access to certified healthcare providers for disability claim exams.  
The Senator Elizabeth Dole 21st Century Veterans Healthcare and Benefits Improvement Act (H.R. 8371), which will be the flagship veterans’ package for the 118th Congress. It includes a number of bipartisan and bicameral proposals to reform and improve the delivery of healthcare, benefits, and services at the Department of Veterans Affairs (VA) for veterans, their families, and their survivors. This includes your effort to reauthorize the VET-TEC program.   
The Expanding Access for Online Veterans Student Act (H.R. 5702), which increased housing stipends for student veterans attending classes online.   
The Veteran Exam Expansion Act (H.R. 5938), which expands the pool of providers eligible to cross state lines when conducting disability exams for veterans.  
The Coordinating Care for Senior Veterans and Wounded Warriors Act (H.R. 9399) to improve healthcare coordination and management for veterans who receive services through Medicare and the Department of Veteran Affairs (VA).

Through casework, the Congressman’s team has returned over $5 million to constituents, including $1.9 million to the veterans of Arizona’s 6th Congressional District. This is money and benefits that were owed to constituents but were stuck in the bureaucracy of a federal agency.

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MIL OSI USA News –

January 25, 2025

MIL-OSI USA: Baldwin Announces $86 Million for Clean and Safe Drinking Water in Wisconsin Through Bipartisan Infrastructure Law

US Senate News:

Source: United States Senator for Wisconsin Tammy Baldwin

WISCONSIN – Today, U.S. Senator Tammy Baldwin (D-WI) announced Wisconsin is receiving an additional $86 million through her Bipartisan Infrastructure Law to upgrade water infrastructure and ensure communities have access to clean and safe drinking water. The funding will help communities across Wisconsin protect local freshwater resources, replace dangerous lead pipes, address PFAS and other contaminants, and deliver safe drinking water to homes, schools, and businesses.

“No matter your zip code, every Wisconsin family should be confident when they turn on the tap, their drinking water is clean and safe. Our Bipartisan Infrastructure Law is replacing dangerous lead pipes, protecting families from dangerous chemicals like PFAS, and delivering clean water to homes, schools, and businesses in every corner of the Badger State. I’m proud to help deliver this investment for Wisconsin families’ health and future,” said Senator Baldwin.

“Wisconsinites deserve to be able to trust that the water coming from their tap is clean and safe to drink,” said Wisconsin Governor Tony Evers. “Thanks to the hard work of Senator Baldwin and the Biden-Harris Administration’s Investing in America Agenda, these investments will help us build upon our work to improve our state’s water infrastructure, get rid of harmful contaminants like PFAS and lead, and make a real difference for folks and families across our state.”

The Baldwin-backed Bipartisan Infrastructure Law funds will flow through Wisconsin’s Clean Water and Drinking Water State Revolving Funds (CWSRF and DWSRF), a long-standing federal-state water investment partnership. The investment will fund state-run, low-interest loan programs that address key challenges in financing water infrastructure. Today’s announcement includes allotments for Bipartisan Infrastructure Law Clean Water General Supplemental funds for Wisconsin ($67,272,000), Emerging Contaminant funds ($5,807,000), and ($13,082,000) under the Drinking Water Emerging Contaminant Fund.

Senator Baldwin secured key provisions of her Made in America Act in the Bipartisan Infrastructure Law, ensuring that American iron and steel are used in the construction of the water infrastructure under the CWSRF and DWSRF. In addition to today’s funding announcement, Wisconsin has so far received over $330 million for water infrastructure under the Bipartisan Infrastructure Law.

More information about this announcement is available here.

MIL OSI USA News –

January 25, 2025

MIL-OSI USA: Newhouse Introduces Bill To Reform Telework Locality Pay for Federal Employees

Source: United States House of Representatives – Congressman Dan Newhouse (4th District of Washington)

Headline: Newhouse Introduces Bill To Reform Telework Locality Pay for Federal Employees

This week, Rep. Dan Newhouse (WA-04) introduced The Federal Employee Return to Work Act to crack down on wasteful government spending and incentivize federal employees to return to in-person work. Federal employees who telework from home currently receive annual locality bonuses despite not being required to physically attend their offices located in a high-cost-of-living area. This bill is the House companion to U.S. Senator Bill Cassidy of Louisiana’s bill.

“The federal government pays for massive offices for agency employees in Washington, D.C. and we now know that 17 of the 24 federal agencies are using less than a quarter of their space because of work from home employees,” said Rep. Newhouse.

Newhouse continued, “If agencies wish to allow their employees to work from home, that is within their right to do so. But if they do, then the government should not be paying locality bonuses to those employees and they should be treated like any other work from home federal employee that doesn’t receive such a bonus. Taxpayers pay for federal buildings and salaries; it is time to stop wasting their money on empty buildings and unneeded work from home bonuses.”

U.S. Senator Bill Cassidy (R-LA) said, “Federal employees get paid extra to work in higher-cost cities. But what if they don’t show up to work? Why should they get paid?” said Dr. Cassidy. “If you don’t show up for work, you don’t get paid at the same rate just for teleworking.”

The U.S. Government Accountability Office (GAO) found that 17 of the 24 federal agencies were using 25% or less of their headquarters building’s capacity at the beginning of 2023.

GAO identified six agencies that were on average 91% vacant while their employees still received a 16.44% locality bonus compared to the rest of the country, regardless of their in-office attendance. These agencies included the Social Security Administration, the Small Business Administration, and the Department of Housing and Urban Development.

The bill excludes certain federal employees who telework at least one day a week from receiving raises and special locality bonuses for their office location being in a high-cost-of-living area despite working from home.

In the bill, the term “covered employee” means “an employee who teleworks not fewer than 1 day, or in the case of an alternative work schedule, not less than 20 percent a week.” The term does not include an employee who teleworks not fewer than 1 day a week; is disabled and receives reasonable accommodations; is a member of the Foreign Service; Federal law enforcement; Armed Services; or any other employee, the official worksite of whom is not described in section 531.605(a)(1) of title 5.

If the employee meets the definition of “covered employee,” then they may not receive an annual adjustment under section 5303 of title 5. They shall be paid at the rate of basic pay under the applicable grade under the locality pay area designated as “Rest of U.S.”

Full bill text can be found here.

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MIL OSI USA News –

January 25, 2025

MIL-OSI: Origin Bancorp, Inc. Reports Earnings For Third Quarter 2024

Source: GlobeNewswire (MIL-OSI)

RUSTON, La., Oct. 23, 2024 (GLOBE NEWSWIRE) — Origin Bancorp, Inc. (NYSE: OBK) (“Origin,” “we,” “our” or the “Company”), the holding company for Origin Bank (the “Bank”), today announced net income of $18.6 million, or $0.60 diluted earnings per share for the quarter ended September 30, 2024, compared to net income of $21.0 million, or $0.67 diluted earnings per share, for the quarter ended June 30, 2024. Pre-tax, pre-provision (“PTPP”)⁽¹⁾ earnings was $28.3 million for the quarter ended September 30, 2024, compared to $32.0 million for the linked quarter.

“I am pleased with the balance sheet trends we showed in the third quarter,” said Drake Mills, chairman, president and CEO of Origin Bancorp, Inc. “I am confident these trends will continue and our bankers will capitalize on opportunities throughout our markets.”

⁽¹⁾ PTPP earnings is a non-GAAP financial measure, please see the last few pages of this document for a reconciliation of this alternative financial measure to its most directly comparable GAAP measure.

Financial Highlights

Total loans held for investment (“LHFI”) were $7.96 billion at both September 30, 2024, and June 30, 2024. LHFI, excluding mortgage warehouse lines of credit (“MW LOC”), were $7.46 billion at September 30, 2024, reflecting an increase of $8.9 million, or 0.12%, compared to June 30, 2024.
Noninterest-bearing deposits were $1.89 billion at September 30, 2024, reflecting an increase of $27.1 million, or 1.5%, compared to June 30, 2024.
Net interest income was $74.8 million for the quarter ended September 30, 2024, reflecting an increase of $914,000, or 1.2%, compared to the linked quarter.
Our book value per common share was $36.76 as of September 30, 2024, reflecting an increase of $1.53, or 4.3%, compared to June 30, 2024. Tangible book value per common share⁽¹⁾ was $31.37 at September 30, 2024, reflecting an increase of $1.60, or 5.4%, compared to June 30, 2024.
Stockholders’ equity was $1.15 billion at September 30, 2024, reflecting an increase of $49.8 million, or 4.5%, compared to June 30, 2024.
At September 30, 2024, and June 30, 2024, the ratio of Company-level common equity Tier 1 capital to risk-weighted assets was 12.46%, and 12.15%, respectively, the Tier 1 leverage ratio was 10.93% and 10.70%, respectively, and the total capital ratio was 15.45% and 15.16%, respectively. The ratio of tangible common equity to tangible assets⁽¹⁾ was 9.98% at September 30, 2024, compared to 9.47% at June 30, 2024.

⁽¹⁾ Tangible book value per common share and tangible common equity to tangible assets are non-GAAP financial measures. Please see the last few pages of this document for a reconciliation of these alternative financial measures to their most directly comparable GAAP measures.

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

Net Interest Income and Net Interest Margin

Net interest income for the quarter ended September 30, 2024, was $74.8 million, an increase of $914,000, or 1.2%, compared to the quarter ended June 30, 2024, $813,000 of which was driven by one additional day in the current quarter. Higher interest rates drove a net increase of $147,000 in net interest income, which was reflected in a $1.2 million increase in interest income earned on interest-earnings assets offset by a $1.1 million increase in interest expense paid on interest-bearing liabilities.

Higher interest rates on LHFI drove a $2.0 million increase in the yield for the quarter ended September 30, 2024, compared to the quarter ended June 30, 2024, $1.5 million of which was driven by real estate-based loans. The average rate on LHFI increased to 6.67% for the quarter ended September 30, 2024, compared to 6.58% for the quarter ended June 30, 2024. Higher interest rates on savings and interest-bearing transaction accounts drove a $1.1 million increase in interest expense, compared to the quarter ended June 30, 2024. The average rate on interest-bearing deposits increased to 4.01% for the quarter ended September 30, 2024, compared to 3.95% for the quarter ended June 30, 2024.

The Federal Reserve Board sets various benchmark rates, including the federal funds rate, and thereby influences the general market rates of interest, including the loan and deposit rates offered by financial institutions. The federal funds target rate range was reduced by 50 basis points on September 18, 2024, to a range of 4.75% to 5.00%, the first rate reduction since early 2020.

The NIM-FTE was 3.18% for the quarter ended September 30, 2024, representing a one- and a four-basis-point increase compared to the linked quarter and the prior year same quarter, respectively. The yield earned on interest-earning assets for the quarter ended September 30, 2024, was 6.09%, an increase of five and 40 basis points compared to the linked quarter and the prior year same quarter, respectively. The average rate paid on total interest-bearing liabilities for the quarter ended September 30, 2024, was 4.04%, representing a six- and 45-basis point increase compared to the linked quarter and the prior year same quarter, respectively.

As discussed in our June 30, 2024, Origin Bancorp, Inc. Earnings Release, we reversed $1.2 million of accrued loan interest during the quarter ended June 30, 2024, due to certain questioned activity involving a single banker, who has since been terminated, in our East Texas market. This reversal of accrued loan interest income negatively impacted the fully tax equivalent net interest margin (“NIM-FTE”) by five basis points for the linked quarter. Had we not experienced the reversal of the $1.2 million of accrued interest income during the quarter ended June 30, 2024, our NIM-FTE would have been 3.22% for the linked quarter, and we would have experienced a four-basis point decrease in our current NIM-FTE compared to the linked quarter. There was no equivalent interest income reversal during the current quarter and these loans remain on non-accrual.

Credit Quality

The table below includes key credit quality information:

	At and For the Three Months Ended									Change			% Change
(Dollars in thousands, unaudited)	September 30, 2024			June 30, 2024			September 30, 2023			Linked Quarter			Linked Quarter
Past due LHFI	$	38,838		$	66,276		$	20,347		$	(27,438	)	(41.4)%
Allowance for loan credit losses (“ALCL”)		95,989			100,865			95,177			(4,876	)	(4.8	)
Classified loans		107,486			118,254			64,021			(10,768	)	(9.1	)
Total nonperforming LHFI		64,273			75,812			31,608			(11,539	)	(15.2	)
Provision for credit losses		4,603			5,231			3,515			(628	)	(12.0	)
Net charge-offs		9,520			2,946			2,686			6,574		223.2
Credit quality ratios⁽¹⁾:
ALCL to nonperforming LHFI		149.35	%		133.05	%		301.12	%		16.30	%	N/A
ALCL to total LHFI		1.21			1.27			1.26			(0.06	)	N/A
ALCL to total LHFI, adjusted⁽²⁾		1.28			1.34			1.30			(0.06	)	N/A
Classified loans to total LHFI		1.35			1.49			0.85			(0.14	)	N/A
Nonperforming LHFI to LHFI		0.81			0.95			0.42			(0.14	)	N/A
Net charge-offs to total average LHFI (annualized)		0.48			0.15			0.14			0.33		N/A

___________________________

⁽¹⁾	Please see the Loan Data schedule at the back of this document for additional information.
⁽²⁾	The ALCL to total LHFI, adjusted, is calculated by excluding the ALCL for MW LOC loans from the total LHFI ALCL in the numerator and excluding the MW LOC loans from the LHFI in the denominator. Due to their low-risk profile, MW LOC loans require a disproportionately low allocation of the ALCL.

As discussed in our June 30, 2024, Origin Bancorp, Inc. Earnings Release, our credit metrics were negatively impacted by certain questioned activity involving a single banker, who has since been terminated, in our East Texas market. Our investigation of this activity remains ongoing and is not final; however, as a result of a forbearance agreement with one of our impacted customer relationships, our past due LHFI declined $26.4 million when compared to the quarter ended June 30, 2024. There was no material change in the level of our nonperforming or classified LHFI principal balances between the current quarter and the linked quarter as a result of the questioned activity. We continue to work with an outside forensic accounting firm to confirm the bank’s identification and reconciliation of the activity, targeting a conclusion of this analysis by the end of this year. At this time, we believe that any ultimate loss arising from the situation will not be material to our financial position.

Past due LHFI were $38.8 million for the quarter ended September 30, 2024, compared to $66.3 million at June 30, 2024. Of the $27.4 million decrease, $26.4 million were impacted by or related to the questioned activity. The remaining net decrease in past due LHFI was primarily due to charge-offs or payoffs in commercial and industrial past due loans during the quarter ended September 30, 2024.

Nonperforming LHFI decreased $11.5 million for the quarter reflecting a decrease in the percentage of nonperforming LHFI to LHFI to 0.81% compared to 0.95% for the linked quarter. The decrease in nonperforming loans was primarily driven by three commercial and industrial loan relationships totaling $14.6 million at June 30, 2024, $10.4 million of which were charged-off and $4.2 million were paid down during the current quarter.

Classified loans decreased $10.8 million to $107.5 million at September 30, 2024, reflecting 1.35% as a percentage of total LHFI, down 14 basis points from the linked quarter. The decrease in classified loans was primarily driven by the same three commercial and industrial loan relationships mentioned in the nonperforming loan paragraph directly above.

Noninterest Income

Noninterest income for the quarter ended September 30, 2024, was $16.0 million, a decrease of $6.5 million, or 28.8%, from the linked quarter. The decrease from the linked quarter was primarily driven by decreases of $5.2 million, $725,000 and $621,000 in the change in fair value of equity investments, mortgage banking revenue and other income, respectively.

The decrease in change in fair value of equity investments was due to a $5.2 million positive valuation adjustment on a non-marketable equity security recognized during the linked quarter with no comparable amount recognized during the current quarter.

The decrease in mortgage banking revenue was primarily due to an $833,000 combined decrease in the pipeline and interest rate lock commitment fair values during the current quarter compared to the linked quarter.

The decrease in other income was primarily due to an $818,000 gain on sale of bank property recognized in the linked quarter with no comparable amount recognized in the current quarter.

Noninterest Expense

Noninterest expense for the quarter ended September 30, 2024, was $62.5 million, a decrease of $1.9 million, or 2.9% from the linked quarter. The decrease was primarily driven by a decrease of $1.6 million and in other noninterest expense.

The decrease in other expenses resulted from recognizing contingent liabilities totaling approximately $1.2 million related to certain questioned activity involving a single banker, who has since been terminated, in our East Texas market, as described previously, in the linked quarter with no comparable liability incurred in the current quarter. Also, contributing to the quarter over quarter decline was a $357,000 decrease in corporate membership fees.

Financial Condition

Loans

Total LHFI were $7.96 billion at both September 30, 2024, and June 30, 2024, and reflected an increase of $388.7 million, or 5.1%, compared to September 30, 2023.
Total LHFI, excluding MW LOC, were $7.46 billion at September 30, 2024, representing an increase of $8.9 million, or 0.1%, from June 30, 2024, and an increase of $179.8 million, or 2.5%, from September 30, 2023.
During the quarter ended September 30, 2024, compared to the linked quarter, we experienced declines in construction/land/land development loans and MW LOC of $25.8 million and $11.3 million, respectively, partially offset by growth in multi-family real estate loans of $36.1 million.

Securities

Total securities were $1.18 billion at both September 30, 2024, and June 30, 2024, and reflected a decrease of $129.8 million, or 9.9%, compared to September 30, 2023.
Accumulated other comprehensive loss, net of taxes, primarily associated with the available for sale (“AFS”) portfolio, was $94.2 million at September 30, 2024, an improvement of $32.9 million, or 25.9%, from the linked quarter.
The weighted average effective duration for the total securities portfolio was 4.21 years as of September 30, 2024, compared to 4.28 years as of June 30, 2024.

Deposits

Total deposits at September 30, 2024, were $8.49 billion, a decrease of $24.3 million, or 0.3%, compared to the linked quarter, and represented an increase of $112.1 million, or 1.3%, from September 30, 2023. The decrease in the current quarter compared to the linked quarter was primarily due to a decrease of $205.2 million in brokered (which includes both brokered time and brokered interest-bearing demand) deposits. The decrease in brokered deposits was primarily replaced with customer deposits.
Excluding brokered deposits, total deposit increased $180.9 million, or 2.3%, to $8.05 billion, primarily due to increases of $87.0 million, $64.4 million and $27.1 million in money market deposits, interest-bearing demand deposits and noninterest-bearing demand deposits, respectively.
At September 30, 2024, noninterest-bearing deposits as a percentage of total deposits were 22.3%, compared to 21.9% and 24.0% at June 30, 2024, and September 30, 2023, respectively. Excluding brokered deposits, noninterest-bearing deposits as a percentage of total deposits were 23.5%, compared to 23.7% and 26.1% at June 30, 2024, and September 30, 2023, respectively.

Borrowings

FHLB advances and other borrowings at September 30, 2024, were $30.4 million, a decrease of $10.3 million, or 25.3%, compared to the linked quarter and represented an increase of $18.2 million, or 149.3%, from September 30, 2023.

Stockholders’ Equity

Stockholders’ equity was $1.15 billion at September 30, 2024, an increase of $49.8 million, or 4.5%, compared to $1.10 billion at June 30, 2024, and an increase of $146.7 million, or 14.7%, compared to September 30, 2023.
The increase in stockholders’ equity from the linked quarter is primarily due to a decrease in accumulated other comprehensive loss of $32.9 million and net income of $18.6 million, partially offset by dividends declared of $4.8 million during the current quarter.

Conference Call

Origin will hold a conference call to discuss its third quarter 2024 results on Thursday, October 24, 2024, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). To participate in the live conference call, please dial +1 (929) 272-1574 (U.S. Local / International 1); +1 (857) 999-3259 (U.S. Local / International 2); +1 (800) 528-1066 (U.S. Toll Free), enter Conference ID: 84865 and request to be joined into the Origin Bancorp, Inc. (OBK) call. A simultaneous audio-only webcast may be accessed via Origin’s website at www.origin.bank under the investor relations, News & Events, Events & Presentations link or directly by visiting https://dealroadshow.com/e/ORIGINQ324.

If you are unable to participate during the live webcast, the webcast will be archived on the Investor Relations section of Origin’s website at www.origin.bank, under Investor Relations, News & Events, Events & Presentations.

About Origin

Origin Bancorp, Inc. is a financial holding company headquartered in Ruston, Louisiana. Origin’s wholly owned bank subsidiary, Origin Bank, was founded in 1912 in Choudrant, Louisiana. Deeply rooted in Origin’s history is a culture committed to providing personalized relationship banking to businesses, municipalities, and personal clients to enrich the lives of the people in the communities it serves. Origin provides a broad range of financial services and currently operates more than 60 locations from Dallas/Fort Worth, East Texas, Houston, North Louisiana, Mississippi, South Alabama and the Florida Panhandle. For more information, visit www.origin.bank.

Non-GAAP Financial Measures

Origin reports its results in accordance with generally accepted accounting principles in the United States of America (“GAAP”). However, management believes that certain supplemental non-GAAP financial measures may provide meaningful information to investors that is useful in understanding Origin’s results of operations and underlying trends in its business. However, non-GAAP financial measures are supplemental and should be viewed in addition to, and not as an alternative for, Origin’s reported results prepared in accordance with GAAP. The following are the non-GAAP measures used in this release: PTPP earnings, adjusted NIM-FTE, PTPP ROAA, tangible book value per common share, adjusted tangible book value per common share, tangible common equity to tangible assets, ROATCE, and core efficiency ratio.

Please see the last few pages of this release for reconciliations of non-GAAP measures to the most directly comparable financial measures calculated in accordance with GAAP.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding Origin’s future financial performance, business and growth strategies, projected plans and objectives, and any expected purchases of its outstanding common stock, and related transactions and other projections based on macroeconomic and industry trends, including changes to interest rates by the Federal Reserve and the resulting impact on Origin’s results of operations, estimated forbearance amounts and expectations regarding the Company’s liquidity, including in connection with advances obtained from the FHLB, which are all subject to change and may be inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such changes may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions and current expectations, estimates and projections about Origin and its subsidiaries, any of which may change over time and some of which may be beyond Origin’s control. Statements or statistics preceded by, followed by or that otherwise include the words “assumes,” “anticipates,” “believes,” “estimates,” “expects,” “foresees,” “intends,” “plans,” “projects,” and similar expressions or future or conditional verbs such as “could,” “may,” “might,” “should,” “will,” and “would” and variations of such terms are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. Further, certain factors that could affect Origin’s future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: the impact of current and future economic conditions generally and in the financial services industry, nationally and within Origin’s primary market areas, including the effects of declines in the real estate market, high-profile bank failures, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers and changes to customer and client behavior as a result of the foregoing; changes in benchmark interest rates and the resulting impacts on net interest income; deterioration of Origin’s asset quality; factors that can impact the performance of Origin’s loan portfolio, including real estate values and liquidity in Origin’s primary market areas; the financial health of Origin’s commercial borrowers and the success of construction projects that Origin finances; changes in the value of collateral securing Origin’s loans; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; Origin’s ability to anticipate interest rate changes and manage interest rate risk (including the impact of higher interest rates on macroeconomic conditions, competition, and the cost of doing business and the impact of prolonged elevated interest rates on our financial projections, models and guidance); the effectiveness of Origin’s risk management framework and quantitative models; Origin’s inability to receive dividends from Origin Bank and to service debt, pay dividends to Origin’s common stockholders, repurchase Origin’s shares of common stock and satisfy obligations as they become due; the impact of labor pressures; changes in Origin’s operation or expansion strategy or Origin’s ability to prudently manage its growth and execute its strategy; changes in management personnel; Origin’s ability to maintain important customer relationships, reputation or otherwise avoid liquidity risks; increasing costs as Origin grows deposits; operational risks associated with Origin’s business; significant turbulence or a disruption in the capital or financial markets and the effect of market disruption and interest rate volatility on our investment securities; increased competition in the financial services industry, particularly from regional and national institutions, as well as from fintech companies; difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the market areas in which Origin operates and in which its loans are concentrated; Origin’s level of nonperforming assets and the costs associated with resolving any problem loans including litigation and other costs; the credit risk associated with the substantial amount of commercial real estate, construction and land development, and commercial loans in Origin’s loan portfolio; changes in laws, rules, regulations, interpretations or policies relating to financial institutions, and potential expenses associated with complying with such regulations; periodic changes to the extensive body of accounting rules and best practices; further government intervention in the U.S. financial system; a deterioration of the credit rating for U.S. long-term sovereign debt or actions that the U.S. government may take to avoid exceeding the debt ceiling; a potential U.S. federal government shutdown and the resulting impacts; compliance with governmental and regulatory requirements, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and others relating to banking, consumer protection, securities, and tax matters; Origin’s ability to comply with applicable capital and liquidity requirements, including its ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets; changes in the utility of Origin’s non-GAAP liquidity measurements and its underlying assumptions or estimates; possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies and similar organizations; natural disasters and adverse weather events, acts of terrorism, an outbreak of hostilities (including the impacts related to or resulting from Russia’s military action in Ukraine or the conflict in Israel and surrounding areas, including the imposition of additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environments), regional or national protests and civil unrest (including any resulting branch closures or property damage), widespread illness or public health outbreaks or other international or domestic calamities, and other matters beyond Origin’s control; the impact of generative artificial intelligence; fraud or misconduct by internal or external actors (including Origin employees) which Origin may not be able to prevent, detect or mitigate, system failures, cybersecurity threats or security breaches and the cost of defending against them; Origin’s ability to maintain adequate internal controls over financial and non-financial reporting; and potential claims, damages, penalties, fines, costs and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions. For a discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in Origin’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any updates to those sections set forth in Origin’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Origin’s underlying assumptions prove to be incorrect, actual results may differ materially from what Origin anticipates. Accordingly, you should not place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Origin does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

New risks and uncertainties arise from time to time, and it is not possible for Origin to predict those events or how they may affect Origin. In addition, Origin cannot assess the impact of each factor on Origin’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Origin or persons acting on Origin’s behalf may issue. Annualized, pro forma, adjusted, projected, and estimated numbers are used for illustrative purposes only, are not forecasts, and may not reflect actual results.

Contact:

Investor Relations
Chris Reigelman
318-497-3177
chris@origin.bank

Media Contact
Ryan Kilpatrick
318-232-7472
rkilpatrick@origin.bank

Origin Bancorp, Inc.
Selected Quarterly Financial Data
(Unaudited)

	Three Months Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023

Income statement and share amounts	(Dollars in thousands, except per share amounts)
Net interest income	$	74,804		$	73,890		$	73,323		$	72,989		$	74,130
Provision for credit losses		4,603			5,231			3,012			2,735			3,515
Noninterest income		15,989			22,465			17,255			8,196			18,119
Noninterest expense		62,521			64,388			58,707			60,906			58,663
Income before income tax expense		23,669			26,736			28,859			17,544			30,071
Income tax expense		5,068			5,747			6,227			4,119			5,758
Net income	$	18,601		$	20,989		$	22,632		$	13,425		$	24,313
PTPP earnings⁽¹⁾	$	28,272		$	31,967		$	31,871		$	20,279		$	33,586
Basic earnings per common share		0.60			0.68			0.73			0.43			0.79
Diluted earnings per common share		0.60			0.67			0.73			0.43			0.79
Dividends declared per common share		0.15			0.15			0.15			0.15			0.15
Weighted average common shares outstanding – basic		31,130,293			31,042,527			30,981,333			30,898,941			30,856,649
Weighted average common shares outstanding – diluted		31,239,877			31,131,829			31,078,910			30,995,354			30,943,860

Balance sheet data
Total LHFI	$	7,956,790		$	7,959,171		$	7,900,027		$	7,660,944		$	7,568,063
Total LHFI excluding MW LOC		7,461,602			7,452,666			7,499,032			7,330,978			7,281,770
Total assets		9,965,986			9,947,182			9,892,379			9,722,584			9,733,303
Total deposits		8,486,568			8,510,842			8,505,464			8,251,125			8,374,488
Total stockholders’ equity		1,145,673			1,095,894			1,078,853			1,062,905			998,945

Performance metrics and capital ratios
Yield on LHFI		6.67	%		6.58	%		6.58	%		6.46	%		6.35	%
Yield on interest-earnings assets		6.09			6.04			5.99			5.86			5.69
Cost of interest-bearing deposits		4.01			3.95			3.85			3.71			3.47
Cost of total deposits		3.14			3.08			2.99			2.84			2.61
NIM – fully tax equivalent (“FTE”)		3.18			3.17			3.19			3.19			3.14
Return on average assets (annualized) (“ROAA”)		0.74			0.84			0.92			0.55			0.96
PTPP ROAA (annualized)⁽¹⁾		1.13			1.28			1.30			0.82			1.33
Return on average stockholders’ equity (annualized) (“ROAE”)		6.57			7.79			8.57			5.26			9.52
Book value per common share	$	36.76		$	35.23		$	34.79		$	34.30		$	32.32
Tangible book value per common share⁽¹⁾		31.37			29.77			29.24			28.68			26.78
Adjusted tangible book value per common share⁽¹⁾		34.39			33.86			33.27			32.59			32.37
Return on average tangible common equity (annualized) (“ROATCE”)⁽¹⁾		7.74	%		9.25	%		10.24	%		6.36	%		11.48	%
Efficiency ratio⁽²⁾		68.86			66.82			64.81			75.02			63.59
Core efficiency ratio⁽¹⁾		67.48			65.55			65.24			70.55			60.49
Common equity tier 1 to risk-weighted assets⁽³⁾		12.46			12.15			11.97			11.83			11.46
Tier 1 capital to risk-weighted assets⁽³⁾		12.64			12.33			12.15			12.01			11.64
Total capital to risk-weighted assets⁽³⁾		15.45			15.16			14.98			15.02			14.61
Tier 1 leverage ratio⁽³⁾		10.93			10.70			10.66			10.50			10.00

__________________________

⁽¹⁾	PTPP earnings, PTPP ROAA, tangible book value per common share, adjusted tangible book value per common share, ROATCE, and core efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their most directly comparable GAAP measures, please see the last few pages of this release.
⁽²⁾	Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
⁽³⁾	September 30, 2024, ratios are estimated and calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve Board.

Origin Bancorp, Inc.
Selected Year-To-Date Financial Data
(Unaudited)

	Nine Months Ended September 30,
(Dollars in thousands, except per share amounts)		2024			2023

Income statement and share amounts
Net interest income	$	222,017		$	226,568
Provision for credit losses		12,846			14,018
Noninterest income		55,709			50,139
Noninterest expense		185,616			174,310
Income before income tax expense		79,264			88,379
Income tax expense		17,042			18,004
Net income	$	62,222		$	70,375
PTPP earnings⁽¹⁾	$	92,110		$	102,397
Basic earnings per common share		2.00			2.29
Diluted earnings per common share		2.00			2.28
Dividends declared per common share		0.45			0.45
Weighted average common shares outstanding – basic		31,051,672			30,797,399
Weighted average common shares outstanding – diluted		31,160,867			30,903,222

Performance metrics
Yield on LHFI		6.61	%		6.19	%
Yield on interest-earning assets		6.04			5.50
Cost of interest-bearing deposits		3.94			3.03
Cost of total deposits		3.07			2.22
NIM-FTE		3.18			3.24
Adjusted NIM-FTE⁽²⁾		3.18			3.21
ROAA (annualized)		0.84			0.94
PTPP ROAA (annualized)⁽¹⁾		1.24			1.37
ROAE (annualized)		7.62			9.45
ROATCE (annualized)⁽¹⁾		9.04			11.47
Efficiency ratio⁽³⁾		66.83			62.99
Core efficiency ratio⁽¹⁾		66.09			59.94

____________________________

⁽¹⁾	PTPP earnings, PTPP ROAA, ROATCE, and core efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their most directly comparable GAAP measures, please see the last few pages of this release.
⁽²⁾	Adjusted NIM-FTE is a non-GAAP financial measure and is calculated for nine months ended September 30, 2024, by removing the $20,000 net purchase accounting amortization from net interest income. And, for the nine months ended September 30, 2023, by removing the $2.2 million net purchase accounting accretion from net interest income.
⁽³⁾	Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.

Origin Bancorp, Inc.
Consolidated Quarterly Statements of Income
(Unaudited)

	Three Months Ended
	September 30, 2024		June 30, 2024		March 31, 2024			December 31, 2023			September 30, 2023

Interest and dividend income	(Dollars in thousands, except per share amounts)
Interest and fees on loans	$	133,195	$	129,879	$	127,186		$	123,673		$	121,204
Investment securities-taxable		6,536		6,606		6,849			7,024			8,194
Investment securities-nontaxable		905		893		910			1,124			1,281
Interest and dividend income on assets held in other financial institutions		3,621		4,416		3,756			3,664			4,772
Total interest and dividend income		144,257		141,794		138,701			135,485			135,451
Interest expense
Interest-bearing deposits		67,051		65,469		62,842			59,771			55,599
FHLB advances and other borrowings		482		514		518			220			3,207
Subordinated indebtedness		1,920		1,921		2,018			2,505			2,515
Total interest expense		69,453		67,904		65,378			62,496			61,321
Net interest income		74,804		73,890		73,323			72,989			74,130
Provision for credit losses		4,603		5,231		3,012			2,735			3,515
Net interest income after provision for credit losses		70,201		68,659		70,311			70,254			70,615
Noninterest income
Insurance commission and fee income		6,928		6,665		7,725			5,446			6,443
Service charges and fees		4,664		4,862		4,688			4,889			4,621
Other fee income		2,114		2,404		2,247			2,118			2,006
Mortgage banking revenue (loss)		1,153		1,878		2,398			(719	)		892
Swap fee income		106		44		57			196			366
Gain (loss) on sales of securities, net		221		—		(403	)		(4,606	)		(7,173	)
Change in fair value of equity investments		—		5,188		—			—			10,096
Other income		803		1,424		543			872			868
Total noninterest income		15,989		22,465		17,255			8,196			18,119
Noninterest expense
Salaries and employee benefits		38,491		38,109		35,818			35,931			34,624
Occupancy and equipment, net		6,298		7,009		6,645			6,912			6,790
Data processing		3,470		3,468		3,145			3,062			2,775
Office and operations		2,984		3,072		2,502			2,947			2,868
Intangible asset amortization		1,905		2,137		2,137			2,259			2,264
Regulatory assessments		1,791		1,842		1,734			1,860			1,913
Advertising and marketing		1,449		1,328		1,444			1,690			1,371
Professional services		2,012		1,303		1,231			1,440			1,409
Loan-related expenses		751		1,077		905			1,094			1,220
Electronic banking		1,308		1,238		1,239			1,103			1,384
Franchise tax expense		721		815		477			942			520
Other expenses		1,341		2,990		1,430			1,666			1,525
Total noninterest expense		62,521		64,388		58,707			60,906			58,663
Income before income tax expense		23,669		26,736		28,859			17,544			30,071
Income tax expense		5,068		5,747		6,227			4,119			5,758
Net income	$	18,601	$	20,989	$	22,632		$	13,425		$	24,313
Basic earnings per common share	$	0.60	$	0.68	$	0.73		$	0.43		$	0.79
Diluted earnings per common share		0.60		0.67		0.73			0.43			0.79

Origin Bancorp, Inc.
Consolidated Balance Sheets
(Unaudited)

(Dollars in thousands)	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Assets
Cash and due from banks	$	159,337		$	137,615		$	98,147		$	127,278		$	141,705
Interest-bearing deposits in banks		161,854			150,435			193,365			153,163			163,573
Total cash and cash equivalents		321,191			288,050			291,512			280,441			305,278
Securities:
AFS		1,160,965			1,160,048			1,190,922			1,253,631			1,290,839
Held to maturity, net of allowance for credit losses		11,096			11,616			11,651			11,615			10,790
Securities carried at fair value through income		6,533			6,499			6,755			6,808			6,772
Total securities		1,178,594			1,178,163			1,209,328			1,272,054			1,308,401
Non-marketable equity securities held in other financial institutions		67,068			64,010			53,870			55,190			63,842
Loans held for sale		7,631			18,291			14,975			16,852			14,944
Loans		7,956,790			7,959,171			7,900,027			7,660,944			7,568,063
Less: ALCL		95,989			100,865			98,375			96,868			95,177
Loans, net of ALCL		7,860,801			7,858,306			7,801,652			7,564,076			7,472,886
Premises and equipment, net		126,751			121,562			120,931			118,978			111,700
Mortgage servicing rights		—			—			—			15,637			19,189
Cash surrender value of bank-owned life insurance		40,602			40,365			40,134			39,905			39,688
Goodwill		128,679			128,679			128,679			128,679			128,679
Other intangible assets, net		39,272			41,177			43,314			45,452			42,460
Accrued interest receivable and other assets		195,397			208,579			187,984			185,320			226,236
Total assets	$	9,965,986		$	9,947,182		$	9,892,379		$	9,722,584		$	9,733,303
Liabilities and Stockholders’ Equity
Noninterest-bearing deposits	$	1,893,767		$	1,866,622		$	1,887,066		$	1,919,638		$	2,008,671
Interest-bearing deposits excluding brokered interest-bearing deposits		5,137,940			4,984,817			4,990,632			4,918,597			4,728,263
Time deposits		1,023,252			1,022,589			1,030,656			967,901			968,352
Brokered deposits		431,609			636,814			597,110			444,989			669,202
Total deposits		8,486,568			8,510,842			8,505,464			8,251,125			8,374,488
FHLB advances and other borrowings		30,446			40,737			13,158			83,598			12,213
Subordinated indebtedness		159,861			159,779			160,684			194,279			196,825
Accrued expenses and other liabilities		143,438			139,930			134,220			130,677			150,832
Total liabilities		8,820,313			8,851,288			8,813,526			8,659,679			8,734,358
Stockholders’ equity:
Common stock		155,837			155,543			155,057			154,931			154,534
Additional paid-in capital		535,662			532,950			530,380			528,578			525,434
Retained earnings		548,419			534,585			518,325			500,419			491,706
Accumulated other comprehensive loss		(94,245	)		(127,184	)		(124,909	)		(121,023	)		(172,729	)
Total stockholders’ equity		1,145,673			1,095,894			1,078,853			1,062,905			998,945
Total liabilities and stockholders’ equity	$	9,965,986		$	9,947,182		$	9,892,379		$	9,722,584		$	9,733,303

Origin Bancorp, Inc.
Loan Data
(Unaudited)

	At and For the Three Months Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023

LHFI	(Dollars in thousands)
Owner occupied commercial real estate	$	991,671		$	959,850		$	948,624		$	953,822		$	932,109
Non-owner occupied commercial real estate		1,533,093			1,563,152			1,472,164			1,488,912			1,503,782
Construction/land/land development		991,545			1,017,389			1,168,597			1,070,225			1,076,756
Residential real estate – single family		1,414,013			1,421,027			1,373,532			1,373,696			1,338,382
Multi-family real estate		434,317			398,202			359,765			361,239			349,787
Total real estate loans		5,364,639			5,359,620			5,322,682			5,247,894			5,200,816
Commercial and industrial		2,074,037			2,070,947			2,154,151			2,059,460			2,058,073
MW LOC		495,188			506,505			400,995			329,966			286,293
Consumer		22,926			22,099			22,199			23,624			22,881
Total LHFI		7,956,790			7,959,171			7,900,027			7,660,944			7,568,063
Less: ALCL		95,989			100,865			98,375			96,868			95,177
LHFI, net	$	7,860,801		$	7,858,306		$	7,801,652		$	7,564,076		$	7,472,886

Nonperforming assets⁽¹⁾
Nonperforming LHFI
Commercial real estate	$	2,776		$	2,196		$	4,474		$	786		$	942
Construction/land/land development		26,291			26,336			383			305			235
Residential real estate⁽²⁾		14,313			13,493			14,918			13,037			13,236
Commercial and industrial		20,486			33,608			20,560			15,897			17,072
Consumer		407			179			104			90			123
Total nonperforming loans		64,273			75,812			40,439			30,115			31,608
Repossessed assets		6,043			6,827			3,935			3,929			3,939
Total nonperforming assets	$	70,316		$	82,639		$	44,374		$	34,044		$	35,547
Classified assets	$	113,529		$	125,081		$	88,152		$	84,474		$	67,960
Past due LHFI⁽³⁾		38,838			66,276			32,835			26,043			20,347

Allowance for loan credit losses
Balance at beginning of period	$	100,865		$	98,375		$	96,868		$	95,177		$	94,353
Provision for loan credit losses		4,644			5,436			4,089			3,582			3,510
Loans charged off		11,226			3,706			6,683			3,803			3,202
Loan recoveries		1,706			760			4,101			1,912			516
Net charge-offs		9,520			2,946			2,582			1,891			2,686
Balance at end of period	$	95,989		$	100,865		$	98,375		$	96,868		$	95,177

Credit quality ratios
Total nonperforming assets to total assets		0.71	%		0.83	%		0.45	%		0.35	%		0.37	%
Nonperforming LHFI to LHFI		0.81			0.95			0.51			0.39			0.42
Past due LHFI to LHFI		0.49			0.83			0.42			0.34			0.27
ALCL to nonperforming LHFI		149.35			133.05			243.27			321.66			301.12
ALCL to total LHFI		1.21			1.27			1.25			1.26			1.26
ALCL to total LHFI, adjusted⁽⁴⁾		1.28			1.34			1.30			1.31			1.30
Net charge-offs to total average LHFI (annualized)		0.48			0.15			0.13			0.10			0.14

____________________________

⁽¹⁾	Nonperforming assets consist of nonperforming/nonaccrual loans and property acquired through foreclosures or repossession, as well as bank-owned property not in use and listed for sale.
⁽²⁾	Includes multi-family real estate.
⁽³⁾	Past due LHFI are defined as loans 30 days or more past due.
⁽⁴⁾	The ALCL to total LHFI, adjusted is calculated by excluding the ALCL for MW LOC loans from the total LHFI ALCL in the numerator and excluding the MW LOC loans from the LHFI in the denominator. Due to their low-risk profile, MW LOC loans require a disproportionately low allocation of the ALCL.

Origin Bancorp, Inc.
Average Balances and Yields/Rates
(Unaudited)

	Three Months Ended
	September 30, 2024				June 30, 2024				September 30, 2023
	Average Balance		Yield/Rate		Average Balance		Yield/Rate		Average Balance		Yield/Rate

Assets	(Dollars in thousands)
Commercial real estate	$	2,507,566	5.93	%	$	2,497,490	5.91	%	$	2,428,969	5.73	%
Construction/land/land development		1,019,302	7.37			1,058,972	6.98			1,044,180	7.04
Residential real estate⁽¹⁾		1,824,725	5.56			1,787,829	5.48			1,663,291	5.06
Commercial and industrial (“C&I”)		2,071,984	7.96			2,128,486	7.87			2,024,675	7.62
MW LOC		484,680	7.64			430,885	7.57			376,275	7.21
Consumer		22,739	7.93			22,396	8.06			23,704	7.74
LHFI		7,930,996	6.67			7,926,058	6.58			7,561,094	6.35
Loans held for sale		14,645	6.28			14,702	6.84			11,829	5.81
Loans receivable		7,945,641	6.67			7,940,760	6.58			7,572,923	6.35
Investment securities-taxable		1,038,634	2.50			1,046,301	2.54			1,310,459	2.48
Investment securities-nontaxable		146,619	2.46			143,232	2.51			216,700	2.35
Non-marketable equity securities held in other financial institutions		66,409	2.85			56,270	6.53			58,421	6.47
Interest-bearing balances due from banks		229,224	5.46			254,627	5.53			279,383	5.42
Total interest-earning assets		9,426,527	6.09			9,441,190	6.04			9,437,886	5.69
Noninterest-earning assets		559,309				567,035				597,678
Total assets	$	9,985,836			$	10,008,225			$	10,035,564

Liabilities and Stockholders’ Equity
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts	$	5,177,522	3.88	%	$	5,130,224	3.80	%	$	4,728,211	3.28	%
Time deposits		1,469,849	4.47			1,534,679	4.46			1,626,935	4.04
Total interest-bearing deposits		6,647,371	4.01			6,664,903	3.95			6,355,146	3.47
FHLB advances and other borrowings		40,331	4.75			41,666	4.96			230,815	5.51
Subordinated indebtedness		159,826	4.78			159,973	4.83			196,792	5.07
Total interest-bearing liabilities		6,847,528	4.04			6,866,542	3.98			6,782,753	3.59
Noninterest-bearing liabilities
Noninterest-bearing deposits		1,850,046				1,894,141				2,088,183
Other liabilities		162,565				163,273				151,716
Total liabilities		8,860,139				8,923,956				9,022,652
Stockholders’ Equity		1,125,697				1,084,269				1,012,912
Total liabilities and stockholders’ equity	$	9,985,836			$	10,008,225			$	10,035,564
Net interest spread			2.05	%			2.06	%			2.10	%
NIM			3.16				3.15				3.12
NIM-FTE⁽²⁾			3.18				3.17				3.14

____________________________

⁽¹⁾	Includes multi-family real estate.
⁽²⁾	In order to present pre-tax income and resulting yields on tax-exempt investments comparable to those on taxable investments, a tax-equivalent adjustment has been computed. This adjustment also includes income tax credits received on Qualified School Construction Bonds.

Origin Bancorp, Inc.
Notable Items
(Unaudited)

	At and For the Three Months Ended
	September 30, 2024						June 30, 2024						March 31, 2024						December 31, 2023						September 30, 2023
	$ Impact			EPS Impact⁽¹⁾			$ Impact			EPS Impact⁽¹⁾			$ Impact			EPS Impact⁽¹⁾			$ Impact			EPS Impact⁽¹⁾			$ Impact			EPS Impact⁽¹⁾

	(Dollars in thousands, except per share amounts)
Notable interest income items:
Interest income reversal on relationships impacted by questioned banker activity	$	—		$	—		$	(1,206	)	$	(0.03	)	$	—		$	—		$	—		$	—		$	—		$	—
Notable provision expense items:
Provision expense related to questioned banker activity		—			—			(3,212	)		(0.08	)		—			—			—			—			—			—
Provision expense on relationships impacted by questioned banker activity		—			—			(4,131	)		(0.10	)		—			—			—			—			—			—
Notable noninterest income items:
MSR gain (impairment)		—			—			—			—			410			0.01			(1,769	)		(0.05	)		—			—
Gain (loss) on sales of securities, net		221			0.01			—			—			(403	)		(0.01	)		(4,606	)		(0.12	)		(7,173	)		(0.18	)
Gain on sub-debt repurchase		—			—			81			—			—			—			—			—			—			—
Positive valuation adjustment on non-marketable equity securities		—			—			5,188			0.13			—			—			—			—			10,096			0.26
Gain on bank property sale		—			—			800			0.02			—			—			—			—			—			—
Notable noninterest expense items:
Operating expense related to questioned banker activity		(848	)		(0.02	)		(1,452	)		(0.04	)		—			—			—			—			—			—
Total notable items	$	(627	)		(0.02	)	$	(3,932	)		(0.10	)	$	7			—		$	(6,375	)		(0.16	)	$	2,923			0.07

____________________________

⁽¹⁾	The diluted EPS impact is calculated using a 21% effective tax rate. The total of the diluted EPS impact of each individual line item may not equal the calculated diluted EPS impact on the total notable items due to rounding.

Origin Bancorp, Inc.
Notable Items – Continued
(Unaudited)

	Nine Months Ended September 30,
		2024						2023
	$ Impact			EPS Impact⁽¹⁾			$ Impact			EPS Impact⁽¹⁾

	(Dollars in thousands, except per share amounts)
Notable interest income items:
Interest income reversal on relationships impacted by questioned banker activity	$	(1,206	)	$	(0.03	)	$	—		$	—
Notable provision expense items:
Provision expense related to questioned banker activity		(3,212	)		(0.08	)		—			—
Provision expense on relationships impacted by questioned banker activity		(4,131	)		(0.10	)		—			—
Notable noninterest income items:
MSR gain		410			0.01			—			—
Loss on sales of securities, net		(182	)		—			(7,029	)		(0.18	)
Gain on sub-debt repurchase		81			—			471			0.01
Positive valuation adjustment on non-marketable equity securities		5,188			0.13			10,096			0.26
Gain on bank property sale		800			0.02			—			—
Notable noninterest expense items:
Operating expense related to questioned banker activity		(2,300	)		(0.06	)		—			—
Total notable items	$	(4,552	)		(0.12	)	$	3,538			0.09

____________________________

⁽¹⁾	The diluted EPS impact is calculated using a 21% effective tax rate. The total of the diluted EPS impact of each individual line item may not equal the calculated diluted EPS impact on the total notable items due to rounding.

Origin Bancorp, Inc.
Non-GAAP Financial Measures
(Unaudited)

	At and For the Three Months Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023

	(Dollars in thousands, except per share amounts)
Calculation of PTPP earnings:
Net income	$	18,601		$	20,989		$	22,632		$	13,425		$	24,313
Provision for credit losses		4,603			5,231			3,012			2,735			3,515
Income tax expense		5,068			5,747			6,227			4,119			5,758
PTPP earnings (non-GAAP)	$	28,272		$	31,967		$	31,871		$	20,279		$	33,586

Calculation of PTPP ROAA:
PTPP earnings	$	28,272		$	31,967		$	31,871		$	20,279		$	33,586
Divided by number of days in the quarter		92			91			91			92			92
Multiplied by the number of days in the year		366			366			366			365			365
PTPP earnings, annualized	$	112,473		$	128,571		$	128,184		$	80,455		$	133,249

Divided by total average assets	$	9,985,836		$	10,008,225		$	9,861,236		$	9,753,847		$	10,035,564
ROAA (annualized) (GAAP)		0.74	%		0.84	%		0.92	%		0.55	%		0.96	%
PTPP ROAA (annualized) (non-GAAP)		1.13			1.28			1.30			0.82			1.33

Calculation of tangible common equity to tangible common assets, book value per common share and adjusted tangible book value per common share:
Total assets	$	9,965,986		$	9,947,182		$	9,892,379		$	9,722,584		$	9,733,303
Goodwill		(128,679	)		(128,679	)		(128,679	)		(128,679	)		(128,679	)
Other intangible assets, net		(39,272	)		(41,177	)		(43,314	)		(45,452	)		(42,460	)
Tangible assets		9,798,035			9,777,326			9,720,386			9,548,453			9,562,164

Total common stockholders’ equity	$	1,145,673		$	1,095,894		$	1,078,853		$	1,062,905		$	998,945
Goodwill		(128,679	)		(128,679	)		(128,679	)		(128,679	)		(128,679	)
Other intangible assets, net		(39,272	)		(41,177	)		(43,314	)		(45,452	)		(42,460	)
Tangible common equity		977,722			926,038			906,860			888,774			827,806
Accumulated other comprehensive loss		94,245			127,184			124,909			121,023			172,729
Adjusted tangible common equity		1,071,967			1,053,222			1,031,769			1,009,797			1,000,535
Divided by common shares outstanding at the end of the period		31,167,410			31,108,667			31,011,304			30,986,109			30,906,716
Book value per common share (GAAP)	$	36.76		$	35.23		$	34.79		$	34.30		$	32.32
Tangible book value per common share (non-GAAP)		31.37			29.77			29.24			28.68			26.78
Adjusted tangible book value per common share (non-GAAP)		34.39			33.86			33.27			32.59			32.37
Tangible common equity to tangible assets (non-GAAP)		9.98	%		9.47	%		9.33	%		9.31	%		8.66	%

Calculation of ROATCE:
Net income	$	18,601		$	20,989		$	22,632		$	13,425		$	24,313
Divided by number of days in the quarter		92			91			91			92			92
Multiplied by number of days in the year		366			366			366			365			365
Annualized net income	$	74,000		$	84,417		$	91,025		$	53,262		$	96,459

Total average common stockholders’ equity	$	1,125,697		$	1,084,269		$	1,062,705		$	1,013,286		$	1,012,912
Average goodwill		(128,679	)		(128,679	)		(128,679	)		(128,679	)		(128,679	)
Average other intangible assets, net		(40,487	)		(42,563	)		(44,700	)		(46,825	)		(43,901	)
Average tangible common equity		956,531			913,027			889,326			837,782			840,332

ROATCE (non-GAAP)		7.74	%		9.25	%		10.24	%		6.36	%		11.48	%

Calculation of core efficiency ratio:
Total noninterest expense	$	62,521		$	64,388		$	58,707		$	60,906		$	58,663
Insurance and mortgage noninterest expense		(8,448	)		(8,402	)		(8,045	)		(8,581	)		(8,579	)
Adjusted total noninterest expense		54,073			55,986			50,662			52,325			50,084

Net interest income	$	74,804		$	73,890		$	73,323		$	72,989		$	74,130
Insurance and mortgage net interest income		(2,578	)		(2,407	)		(2,795	)		(2,294	)		(2,120	)
Total noninterest income		15,989			22,465			17,255			8,196			18,119
Insurance and mortgage noninterest income		(8,081	)		(8,543	)		(10,123	)		(4,727	)		(7,335	)
Adjusted total revenue		80,134			85,405			77,660			74,164			82,794

Efficiency ratio (GAAP)		68.86	%		66.82	%		64.81	%		75.02	%		63.59	%
Core efficiency ratio (non-GAAP)		67.48			65.55			65.24			70.55			60.49

Origin Bancorp, Inc.
Non-GAAP Financial Measures – Continued
(Unaudited)

	Nine Months Ended September 30,
		2024			2023

	(Dollars in thousands, except per share amounts)
Calculation of PTPP earnings:
Net income	$	62,222		$	70,375
Provision for credit losses		12,846			14,018
Income tax expense		17,042			18,004
PTPP earnings (non-GAAP)	$	92,110		$	102,397

Calculation of PTPP ROAA:
PTPP Earnings	$	92,110		$	102,397
Divided by the year-to-date number of days		274			273
Multiplied by number of days in the year		366			365
Annualized PTPP Earnings	$	123,037		$	136,904

Divided by total average assets	$	9,951,890		$	10,004,097
ROAA (annualized) (GAAP)		0.84	%		0.94	%
PTPP ROAA (annualized) (non-GAAP)		1.24			1.37

Calculation of ROATCE:
Net income	$	62,222		$	70,375
Divided by the year-to-date number of days		274			273
Multiplied by number of days in the year		366			365
Annualized net income	$	83,114		$	94,091

Total average common stockholders’ equity	$	1,091,018		$	995,395
Average goodwill		(128,679	)		(128,679	)
Average other intangible assets, net		(42,576	)		(46,391	)
Average tangible common equity		919,763			820,325

ROATCE		9.04	%		11.47	%

Calculation of core efficiency ratio:
Total noninterest expense	$	185,616		$	174,310
Insurance and mortgage noninterest expense		(24,895	)		(25,768	)
Adjusted total noninterest expense		160,721			148,542

Net interest income	$	222,017		$	226,568
Insurance and mortgage net interest income		(7,780	)		(5,187	)
Total noninterest income		55,709			50,139
Insurance and mortgage noninterest income		(26,747	)		(23,714	)
Adjusted total revenue		243,199			247,806

Efficiency ratio		66.83	%		62.99	%
Core efficiency ratio		66.09			59.94

The MIL Network –

January 25, 2025

MIL-OSI: TowneBank Reports Third Quarter 2024 Earnings

Source: GlobeNewswire (MIL-OSI)

SUFFOLK, Va., Oct. 23, 2024 (GLOBE NEWSWIRE) — TowneBank (the “Company” or “Towne”) (NASDAQ: TOWN) today reported earnings for the quarter ended September 30, 2024 of $42.95 million, or $0.57 per diluted share, compared to $44.86 million, or $0.60 per diluted share, for the quarter ended September 30, 2023. Excluding certain items affecting comparability, core earnings (non-GAAP) were $43.39 million, or $0.58 per diluted share, in the current quarter compared to $44.88 million, or $0.60 per diluted share, for the quarter ended September 30, 2023.

“Our third quarter results continued to deliver increased net interest income and noninterest income contributions from our diverse business model which were in line with expectations. We remain committed to prudent balance sheet management strategies. We were also excited to announce our partnership with Village Bank which will meaningfully enhance our Richmond presence, which is core to our franchise future growth. Lastly, the recently released FDIC Deposit Market Share Report for 2024 continues to demonstrate the strength of our Main Street banking model and core deposit franchise, resulting in the #1 market share, or 30%, in our legacy Virginia Beach-Norfolk-Newport News, VA-NC MSA,” said G. Robert Aston, Jr., Executive Chairman.

Highlights for Third Quarter 2024:

Total revenues were $174.52 million, an increase of $1.65 million, or 0.96%, compared to third quarter 2023. Noninterest income increased $2.43 million, driven by growth in residential mortgage banking income and insurance commissions. Partially offsetting the increase in noninterest income was a $0.78 million decline in net interest income.
Total deposits were $14.36 billion, an increase of $482.37 million, or 3.48%, compared to third quarter 2023. Total deposits increased 0.63%, or $90.58 million, in comparison to June 30, 2024, 2.52% on an annualized basis.
Noninterest-bearing deposits decreased 3.99%, to $4.27 billion, compared to third quarter 2023 and represented 29.71% of total deposits. Compared to the linked quarter, noninterest-bearing deposits decreased 0.84%.
Loans held for investment were $11.41 billion, an increase of $239.55 million, or 2.14%, compared to September 30, 2023, but a decrease of $39.23 million, or 0.34%, compared to June 30, 2024.
Annualized return on common shareholders’ equity was 8.18% compared to 9.04% in third quarter 2023. Annualized return on average tangible common shareholders’ equity (non-GAAP) was 11.54% compared to 13.11% in third quarter 2023.
Net interest margin was 2.90% for the quarter and tax-equivalent net interest margin (non-GAAP) was 2.93%, including purchase accounting accretion of 3 basis points, compared to the prior year quarter net interest margin of 2.95% and tax-equivalent net interest margin (non-GAAP) of 2.98%, including purchase accounting accretion of 5 basis points.
Compared to the linked quarter, net interest margin increased 4 bp and spread increased 6 bp.
The effective tax rate was 11.52% in the quarter compared to 17.34% in third quarter 2023 and 15.93% in the linked quarter. The lower effective tax rate in the current quarter was primarily due to the impact on state and federal taxes from the increase in credits and losses related to LIHTC investment properties placed in service during the period.

“Growth has certainly been challenging in the current environment but we believe our balance sheet is well positioned to support mid-single digit growth rates as we look ahead to next year. We plan to aggressively expand Towne Insurance and evaluate other opportunities to enhance our fee-based lines of business to further drive our differentiated business model,” stated William I. Foster III, President and Chief Executive Officer.

Quarterly Net Interest Income:

Net interest income was $112.28 million compared to $113.06 million for the quarter ended September 30, 2023. The decrease was driven by increased deposit costs, which were mostly offset by higher yields on earning assets.
On an average basis, loans held for investment, with a yield of 5.46%, represented 74.16% of earning assets at September 30, 2024 compared to a yield of 5.13% and 73.45% of earning assets in the third quarter of 2023.
The cost of interest-bearing deposits was 3.28% for the quarter ended September 30, 2024, compared to 2.77% in second quarter 2023. Interest expense on deposits increased $17.96 million, or 27.98%, over the prior year quarter driven by the increase in rate and growth in interest-bearing deposits.
Our total cost of deposits increased to 2.29% from 1.84% for the quarter ended September 30, 2023 due to a combination of higher interest-bearing deposit balances coupled with higher rates. The Federal Reserve Open Market Committee lowered the overnight funds rate late in the third quarter. Management is expecting the decrease to have favorable impact on deposit costs in the fourth quarter of 2024.
Average interest-earning assets totaled $15.40 billion at September 30, 2024 compared to $15.21 billion at September 30, 2023, an increase of 1.26%. The Company anticipates approximately $604 million of cash flows from its securities portfolio to be available for reinvestment in the next twenty-four months.
Average interest-bearing liabilities totaled $10.25 billion, an increase of $493.95 million, or 5.06%, from prior year, driven by deposit growth. Borrowings have declined between periods. There were no short term FHLB borrowings in the third quarter of 2024, compared to an average of $248.91 million in the prior year quarter.

Quarterly Provision for Credit Losses:

The quarterly provision for credit losses was a benefit of $1.10 million compared to an expense of $1.01 million in the prior year quarter and a benefit of $177 thousand in the linked quarter.
The allowance for credit losses on loans decreased $2.36 million in third quarter 2024, compared to the linked quarter. The decrease in the allowance was driven by a modest decline in the loan portfolio, primarily in higher-risk real estate construction and development loans, combined with continued strength in credit quality, and improvements in macroeconomic forecast scenarios utilized in our model.
Net loan charge-offs were $0.68 million in the quarter compared to net recoveries of $1.07 million in the prior year quarter and $19 thousand in the linked quarter. Year-to-date 2024, net loan charge-offs were $1.18 million compared to net loan charge-offs of $2.81 million in first nine months of 2023.
The ratio of net charge-offs to average loans on an annualized basis was 0.02% in third quarter 2024, compared to (0.04)% in third quarter 2023 and 0.00% in the linked quarter.
The allowance for credit losses on loans represented 1.08% of total loans at September 30, 2024, compared to 1.12% at September 30, 2023, and 1.10% at June 30, 2024. The allowance for credit losses on loans was 18.70 times nonperforming loans compared to 17.60 times at September 30, 2023 and 19.08 times at June 30, 2024.

Quarterly Noninterest Income:

Total noninterest income was $62.24 million compared to $59.81 million in 2023, an increase of $2.43 million, or 4.06%.
Residential mortgage banking income was $11.79 million compared to $10.65 million in third quarter 2023. Loan volume increased to $598.18 million in third quarter 2024 from $520.41 million in third quarter 2023. Both, the number of loans originated and the per-loan average balance increased in third quarter 2024 compared to third quarter 2023. Refinance activities increased in the quarter after more than a year of low activity. Residential purchase activity was 91.49% of production volume in the third quarter of 2024 compared to 95.96% in third quarter 2023. Management expects mortgage production volumes to be positively impacted by any additional reductions in the Federal Reserve overnight rate.
While level with the linked quarter at 3.28%, gross margins on residential mortgage sales increased 11 basis points from 3.17% in third quarter 2023.
Total net insurance commissions increased $1.95 million, or 8.20%, to $25.73 million in third quarter 2024 compared to 2023. This increase was primarily attributable to increases in property and casualty commissions, which were driven by organic growth.
Property management fee revenue decreased 12.34%, or $1.58 million, to $11.22 million in third quarter 2024 compared to 2023. Reservation levels declined compared to the prior year.

Quarterly Noninterest Expense:

Total noninterest expense was $126.90 million compared to $117.70 million in 2023, an increase of $9.20 million, or 7.81%. This increase was primarily attributable to growth in salaries and employee benefits of $4.87 million, professional fees of $1.95 million, software of $0.66 million, data processing of $0.56 million, and advertising and marketing of $0.51 million.
Salaries and benefits expense increases were driven by an increase in banking personnel and production incentives.
Investment in technology related to banking services and information monitoring continued to drive both direct and indirect costs. Professional fees increased due to consulting and outside services. Software costs increased due to higher core system costs, while data processing increased due to higher processing costs and merchant fee increases.
Advertising and marketing increased, driven by business development.

Consolidated Balance Sheet Highlights:

Management is focused on strategic balance sheet management with a concentration on controlled loan growth and maintaining strong levels of liquidity.
Total assets were $17.19 billion for the quarter ended September 30, 2024, a $119.18 million increase compared to $17.07 billion at June 30, 2024. Total assets increased $507.66 million, or 3.04%, from $16.68 billion at September 30, 2023.
Loans held for investment declined $39.23 million, or 0.34%, compared to the linked quarter but increased $239.55 million, or 2.14%, compared to prior year. There were declines in several loan categories from the linked quarter, with the most significant decline in the real estate construction and development category. The Company continued to maintain strong credit discipline throughout the period.
Mortgage loans held for sale increased $76.27 million, or 40.56%, compared to prior year and $63.56 million, or 31.66%, compared to the linked quarter, driven by the increase in production.
Total deposits increased $482.37 million, or 3.48%, primarily in interest-bearing demand and time deposits, compared to prior year. In the linked quarter comparison, total deposits increased $90.58 million, or 2.52% on an annualized basis.
Noninterest-bearing deposits decreased $177.23 million, or 3.99%, compared to prior year and $36.15 million, or 0.84%, compared to the linked quarter, primarily in commercial and escrow accounts.
Total borrowings decreased $116.22 million, or 28.55%, compared to third quarter 2023 and $4.35 million, or 1.47%, compared to the linked quarter. Short-term FHLB advances were zero at each of September 30, 2024, and the linked quarter end, compared to $100 million at September 30, 2023.

Investment Securities:

Total investment securities were $2.60 billion compared to $2.49 billion at June 30, 2024 and $2.54 billion at September 30, 2023. The weighted average duration of the portfolio at September 30, 2024 was 3.1 years. The carrying value of the available-for-sale debt securities portfolio included net unrealized losses of $110.62 million at September 30, 2024, compared to $172.93 million at June 30, 2024 and $238.52 million at September 30, 2023, with the changes in fair value due to the change in interest rates.

Loans and Asset Quality:

Total loans held for investment were $11.41 billion at September 30, 2024, $11.45 billion June 30, 2024, and $11.17 billion at September 30, 2023.
Nonperforming assets were $7.47 million, or 0.04% of total assets, compared to $7.88 million, or 0.05%, at September 30, 2023, and $7.16 million, or 0.04%, in the linked quarter end.
Nonperforming loans were 0.06% of period end loans at September 30, 2024, September 30, 2023, and the linked quarter end.
Foreclosed property consisted of $884 thousand in repossessed autos at September 30, 2024, compared to $276 thousand in other real estate owned and $490 thousand in repossessed autos, for a total of $766 thousand in foreclosed property at September 30, 2023.

Deposits and Borrowings:

Total deposits were $14.36 billion compared to $14.27 billion at June 30, 2024 and $13.88 billion at September 30, 2023.
The ratio of period end loans held for investment to deposits was 79.46% compared to 80.24% at June 30, 2024 and 80.49% at September 30, 2023.
Noninterest-bearing deposits were 29.71% of total deposits at September 30, 2024 compared to 30.15% at June 30, 2024 and 32.02% at September 30, 2023. Noninterest-bearing deposits declined $177.23 million, or 3.99%, compared to September 30, 2023, and $36.15 million, or 0.84%, compared to the linked quarter.
Total borrowings were $290.82 million compared to $295.17 million at June 30, 2024 and $407.03 million at September 30, 2023.

Capital:

Common equity tier 1 capital ratio of 12.63%⁽¹⁾.
Tier 1 leverage capital ratio of 10.38%⁽¹⁾.
Tier 1 risk-based capital ratio of 12.75%⁽¹⁾.
Total risk-based capital ratio of 15.53% ⁽¹⁾ .
Book value per common share was $28.59 compared to $27.62 at June 30, 2024 and $26.28 at September 30, 2023.
Tangible book value per common share (non-GAAP) was $21.65 compared to $20.65 at June 30, 2024 and $19.28 at September 30, 2023.

⁽¹⁾ Preliminary.

About TowneBank:
Founded in 1999, TowneBank is a company built on relationships, offering a full range of banking and other financial services, with a focus of serving others and enriching lives. Dedicated to a culture of caring, Towne values all employees and members by embracing their diverse talents, perspectives, and experiences.

Now celebrating 25 years, TowneBank operates 50 banking offices throughout Hampton Roads and Central Virginia, as well as Northeastern and Central North Carolina – serving as a local leader in promoting the social, cultural, and economic growth in each community. Towne offers a competitive array of business and personal banking solutions, delivered with only the highest ethical standards. Experienced local bankers providing a higher level of expertise and personal attention with local decision-making are key to the TowneBank strategy. TowneBank has grown its capabilities beyond banking to provide expertise through its affiliated companies that include Towne Wealth Management, Towne Insurance Agency, Towne Benefits, TowneBank Mortgage, TowneBank Commercial Mortgage, Berkshire Hathaway HomeServices RW Towne Realty, Towne 1031 Exchange, LLC, and Towne Vacations. With total assets of $17.19 billion as of September 30, 2024, TowneBank is one of the largest banks headquartered in Virginia.

Non-GAAP Financial Measures:
This press release contains certain financial measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Such non-GAAP financial measures include the following: fully tax-equivalent net interest margin, core operating earnings, core net income, tangible book value per common share, total risk-based capital ratio, tier one leverage ratio, tier one capital ratio, and the tangible common equity to tangible assets ratio. Management uses these non-GAAP financial measures to assess the performance of TowneBank’s core business and the strength of its capital position. Management believes that these non-GAAP financial measures provide meaningful additional information about TowneBank to assist investors in evaluating operating results, financial strength, and capitalization. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant charges for credit costs and other factors. These non-GAAP financial measures should not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The computations of the non-GAAP financial measures used in this presentation are referenced in a footnote or in the appendix to this presentation.

Forward-Looking Statements:
This press release contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts, but instead represent only the beliefs, expectations, or opinions of TowneBank and its management regarding future events, many of which, by their nature, are inherently uncertain. Forward-looking statements may be identified by the use of such words as: “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional terms, such as “will,” “would,” “should,” “could,” “may,” “likely,” “probably,” or “possibly.” These statements may address issues that involve significant risks, uncertainties, estimates, and assumptions made by management. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include among others, competitive pressures in the banking industry that may increase significantly; changes in the interest rate environment that may reduce margins and/or the volumes and values of loans made or held as well as the value of other financial assets held; an unforeseen outflow of cash or deposits or an inability to access the capital markets, which could jeopardize our overall liquidity or capitalization; changes in the creditworthiness of customers and the possible impairment of the collectability of loans; insufficiency of our allowance for credit losses due to market conditions, inflation, changing interest rates or other factors; adverse developments in the financial industry generally, such as the recent bank failures, responsive measures to mitigate and manage such developments, related supervisory and regulatory actions and costs, and related impacts on customer and client behavior; general economic conditions, either nationally or regionally, that may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit or other services; geopolitical instability, including wars, conflicts, civil unrest, and terrorist attacks and the potential impact, directly or indirectly, on our business; the effects of weather-related or natural disasters, which may negatively affect our operations and/or our loan portfolio and increase our cost of conducting business; public health events (such as the COVID-19 pandemic) and governmental and societal responses to them; changes in the legislative or regulatory environment, including changes in accounting standards and tax laws, that may adversely affect our business; our ability to close the transaction with Village Bank when expected or at all because required approvals and other conditions to closing are not received or satisfied on the proposed terms or on the anticipated schedule; our integration of Village Bank’s business to the extent that it may take longer or be more difficult, time-consuming or costly to accomplish than expected; deposit attrition, operating costs, customer losses and business disruption following the Village Bank transaction, including adverse effects on relationships with employees and customers; costs or difficulties related to the integration of the businesses we have acquired may be greater than expected; expected growth opportunities or cost savings associated with pending or recently completed acquisitions may not be fully realized or realized within the expected time frame; cybersecurity threats or attacks, whether directed at us or at vendors or other third parties with which we interact, the implementation of new technologies, and the ability to develop and maintain reliable electronic systems; our competitors may have greater financial resources and develop products that enable them to compete more successfully; changes in business conditions; changes in the securities market; and changes in our local economy with regard to our market area. Any forward-looking statements made by us or on our behalf speak only as of the date they are made or as of the date indicated, and we do not undertake any obligation to update forward-looking statements as a result of new information, future events, or otherwise. For additional information on factors that could materially influence forward-looking statements included in this report, see the “Risk Factors” in TowneBank’s Annual Report on Form 10-K for the year ended December 31, 2023, and related disclosures in other filings that have been, or will be, filed by TowneBank with the Federal Deposit Insurance Corporation.

Media contact:
G. Robert Aston, Jr., Executive Chairman, 757-638-6780
William I. Foster III, President and Chief Executive Officer, 757-417-6482

Investor contact:
William B. Littreal, Chief Financial Officer, 757-638-6813


TOWNEBANK
Selected Financial Highlights (unaudited)
(dollars in thousands, except per share data)

		Three Months Ended
		September 30,			June 30,			March 31,			December 31,			September 30,
			2024			2024			2024			2023			2023
Income and Performance Ratios:
	Total revenue	$	174,518		$	174,970		$	167,102		$	155,546		$	172,864
	Net income		43,126			43,039			35,127			28,545			44,745
	Net income available to common shareholders		42,949			42,856			34,687			28,804			44,862
	Net income per common share – diluted		0.57			0.57			0.46			0.39			0.60
	Book value per common share		28.59			27.62			27.33			27.24			26.28
	Book value per common share – tangible ^(non-GAAP)		21.65			20.65			20.31			20.28			19.28
	Return on average assets		1.00	%		1.01	%		0.83	%		0.68	%		1.06	%
	Return on average assets – tangible ^(non-GAAP)		1.09	%		1.11	%		0.92	%		0.77	%		1.17	%
	Return on average equity		8.12	%		8.43	%		6.84	%		5.75	%		8.96	%
	Return on average equity – tangible ^(non-GAAP)		11.42	%		12.03	%		9.87	%		8.53	%		12.97	%
	Return on average common equity		8.18	%		8.49	%		6.89	%		5.79	%		9.04	%
	Return on average common equity – tangible ^(non-GAAP)		11.54	%		12.16	%		9.98	%		8.62	%		13.11	%
	Noninterest income as a percentage of total revenue		35.66	%		37.68	%		38.23	%		30.74	%		34.60	%
Regulatory Capital Ratios (1):
	Common equity tier 1		12.63	%		12.43	%		12.20	%		12.18	%		12.19	%
	Tier 1		12.75	%		12.55	%		12.32	%		12.29	%		12.31	%
	Total		15.53	%		15.34	%		15.10	%		15.06	%		15.09	%
	Tier 1 leverage ratio		10.38	%		10.25	%		10.15	%		10.17	%		10.06	%
Asset Quality:
	Allowance for credit losses on loans to nonperforming loans	18.70x			19.08x			18.01x			18.48x			17.60x
	Allowance for credit losses on loans to period end loans		1.08	%		1.10	%		1.10	%		1.12	%		1.12	%
	Nonperforming loans to period end loans		0.06	%		0.06	%		0.06	%		0.06	%		0.06	%
	Nonperforming assets to period end assets		0.04	%		0.04	%		0.05	%		0.05	%		0.05	%
	Net charge-offs (recoveries) to average loans (annualized)		0.02	%		—	%		0.02	%		—	%	(0.04		)%
	Net charge-offs (recoveries)	$	677		$	(19	)	$	520		$	68		$	(1,074	)

	Nonperforming loans	$	6,588		$	6,582		$	6,987		$	6,843		$	7,110
	Foreclosed property		884			581			780			908			766
	Total nonperforming assets	$	7,472		$	7,163		$	7,767		$	7,751		$	7,876
	Loans past due 90 days and still accruing interest	$	510		$	368		$	323		$	735		$	970
	Allowance for credit losses on loans	$	123,191		$	125,552		$	125,835		$	126,461		$	125,159
Mortgage Banking:
	Loans originated, mortgage	$	421,571		$	430,398		$	289,191		$	302,616		$	348,387
	Loans originated, joint venture		176,612			196,583			135,197			126,332			172,021
	Total loans originated	$	598,182		$	626,981		$	424,388		$	428,948		$	520,408
	Number of loans originated		1,637			1,700			1,247			1,237			1,487
	Number of originators		159			169			176			181			192
	Purchase %		91.49	%		94.85	%		95.66	%		95.06	%		95.96	%
	Loans sold	$	526,998		$	605,134		$	410,895		$	468,014		$	567,291
	Rate lock asset	$	1,548		$	1,930		$	1,681		$	895		$	1,348
	Gross realized gain on sales and fees as a % of loans originated		3.28	%		3.28	%		3.34	%		3.06	%		3.17	%
Other Ratios:
	Net interest margin		2.90	%		2.86	%		2.72	%		2.83	%		2.95	%
	Net interest margin-fully tax-equivalent ^(non-GAAP)		2.93	%		2.89	%		2.75	%		2.86	%		2.98	%
	Average earning assets/total average assets		90.43	%		90.36	%		90.52	%		90.48	%		90.73	%
	Average loans/average deposits		80.07	%		80.80	%		81.48	%		80.72	%		80.75	%
	Average noninterest deposits/total average deposits		30.19	%		30.06	%		30.25	%		31.69	%		33.50	%
	Period end equity/period end total assets		12.58	%		12.24	%		12.24	%		12.21	%		11.90	%
	Efficiency ratio ^(non-GAAP)		70.93	%		68.98	%		73.25	%		76.17	%		66.21	%
	(1) Current reporting period regulatory capital ratios are preliminary.


TOWNEBANK
Selected Data (unaudited)
(dollars in thousands)

Investment Securities										% Change
	Q3			Q3			Q2			Q3 24 vs.		Q3 24 vs.
*Available-for-sale securities, at fair value*		2024			2023			2024		Q3 23		Q2 24
U.S. agency securities	$	291,814		$	300,161		$	281,934		(2.78	)%	3.50	%
U.S. Treasury notes		28,655			26,721			27,701		7.24	%	3.44	%
Municipal securities		455,722			484,587			442,474		(5.96	)%	2.99	%
Trust preferred and other corporate securities		91,525			74,024			88,228		23.64	%	3.74	%
Mortgage-backed securities issued by GSEs and GNMA		1,496,631			1,079,303			1,411,883		38.67	%	6.00	%
Allowance for credit losses		(1,171	)		(1,343	)		(1,541	)	(12.81	)%	(24.01	)%
Total	$	2,363,176		$	1,963,453		$	2,250,679		20.36	%	5.00	%
*Gross unrealized gains (losses) reflected in financial statements*
Total gross unrealized gains	$	6,703		$	475		$	1,983		1,311.16	%	238.02	%
Total gross unrealized losses		(117,319	)		(238,993	)		(174,911	)	(50.91	)%	(32.93	)%
Net unrealized gains (losses) and other adjustments on AFS securities	$	(110,616	)	$	(238,518	)	$	(172,928	)	(53.62	)%	(36.03	)%
*Held-to-maturity securities, at amortized cost*
U.S. agency securities	$	102,428		$	101,659		$	102,234		0.76	%	0.19	%
U.S. Treasury notes		96,942			433,015			97,171		(77.61	)%	(0.24	)%
Municipal securities		5,342			5,249			5,318		1.77	%	0.45	%
Trust preferred corporate securities		2,133			2,185			2,147		(2.38	)%	(0.65	)%
Mortgage-backed securities issued by GSEs		5,577			5,746			5,618		(2.94	)%	(0.73	)%
Allowance for credit losses		(77	)		(85	)		(79	)	(9.41	)%	(2.53	)%
Total	$	212,345		$	547,769		$	212,409		(61.23	)%	(0.03	)%

Total gross unrealized gains	$	323		$	82		$	175		293.90	%	84.57	%
Total gross unrealized losses		(7,929	)		(23,505	)		(12,880	)	(66.27	)%	(38.44	)%
Net unrealized gains (losses) in HTM securities	$	(7,606	)	$	(23,423	)	$	(12,705	)	(67.53	)%	(40.13	)%
Total unrealized gains (losses) on AFS and HTM securities	$	(118,222	)	$	(261,941	)	$	(185,633	)	(54.87	)%	(36.31	)%
										% Change
Loans Held For Investment	Q3			Q3			Q2			Q3 24 vs.		Q3 24 vs.
		2024			2023			2024		Q3 23		Q2 24
Real estate – construction and development	$	1,118,669		$	1,325,976		$	1,190,768		(15.63	)%	(6.05	)%
Commercial real estate – owner occupied		1,655,345			1,686,888			1,673,582		(1.87	)%	(1.09	)%
Commercial real estate – non owner occupied		3,179,699			3,025,985			3,155,958		5.08	%	0.75	%
Real estate – multifamily		750,906			542,611			682,537		38.39	%	10.02	%
Residential 1-4 family		1,891,216			1,818,843			1,887,420		3.98	%	0.20	%
HELOC		408,565			371,861			408,273		9.87	%	0.07	%
Commercial and industrial business (C&I)		1,256,511			1,237,524			1,297,538		1.53	%	(3.16	)%
Government		521,681			523,456			517,954		(0.34	)%	0.72	%
Indirect		546,887			548,621			558,216		(0.32	)%	(2.03	)%
Consumer loans and other		83,039			91,206			79,501		(8.95	)%	4.45	%
Total	$	11,412,518		$	11,172,971		$	11,451,747		2.14	%	(0.34	)%

										% Change
Deposits	Q3			Q3			Q2			Q3 24 vs.		Q3 24 vs.
		2024			2023			2024		Q3 23		Q2 24
Noninterest-bearing demand	$	4,267,628		$	4,444,861		$	4,303,773		(3.99	)%	(0.84	)%
Interest-bearing:
Demand and money market accounts		6,990,103			6,764,415			6,940,086		3.34	%	0.72	%
Savings		319,970			350,031			312,881		(8.59	)%	2.27	%
Certificates of deposits		2,785,469			2,321,498			2,715,848		19.99	%	2.56	%
Total		14,363,170			13,880,805			14,272,588		3.48	%	0.63	%


TOWNEBANK
Average Balances, Yields and Rate Paid (unaudited)
(dollars in thousands)

	Three Months Ended								Three Months Ended								Three Months Ended
	September 30, 2024								June 30, 2024								September 30, 2023
				Interest			Average					Interest			Average					Interest			Average
	Average			Income/			Yield/		Average			Income/			Yield/		Average			Income/			Yield/
	Balance			Expense			Rate (1)		Balance			Expense			Rate (1)		Balance			Expense			Rate (1)
Assets:
Loans (net of unearned income and deferred costs)	$	11,419,428		$	156,610		5.46	%	$	11,471,669		$	155,374		5.45	%	$	11,169,924		$	144,457		5.13	%
Taxable investment securities		2,376,102			20,940		3.53	%		2,368,476			21,671		3.66	%		2,373,731			18,645		3.14	%
Tax-exempt investment securities		168,768			1,686		4.00	%		156,503			1,521		3.89	%		206,639			1,993		3.86	%
Total securities		2,544,870			22,626		3.56	%		2,524,979			23,192		3.67	%		2,580,370			20,638		3.20	%
Interest-bearing deposits		1,226,445			15,249		4.95	%		1,182,816			14,512		4.93	%		1,230,582			15,031		4.85	%
Mortgage loans held for sale		208,513			3,247		6.23	%		165,392			2,945		7.12	%		227,426			3,928		6.91	%
Total earning assets		15,399,256			197,732		5.11	%		15,344,856			196,023		5.14	%		15,208,302			184,054		4.80	%
Less: allowance for loan losses		(125,331	)							(126,792	)							(125,553	)
Total nonearning assets		1,754,216								1,764,418								1,680,110
Total assets	$	17,028,141							$	16,982,482							$	16,762,859
Liabilities and Equity:
Interest-bearing deposits
Demand and money market	$	6,917,622		$	48,896		2.81	%	$	6,896,176		$	48,161		2.81	%	$	6,605,853		$	41,381		2.49	%
Savings		315,338			842		1.06	%		317,774			845		1.07	%		356,116			938		1.05	%
Certificates of deposit		2,723,437			32,390		4.73	%		2,715,615			33,017		4.89	%		2,236,102			21,852		3.88	%
Total interest-bearing deposits		9,956,397			82,128		3.28	%		9,929,565			82,023		3.32	%		9,198,071			64,171		2.77	%
Borrowings		33,867			(25	)	(0.29	)%		100,165			1,627		6.43	%		299,105			3,382		4.42	%
Subordinated debt, net		256,309			2,237		3.49	%		256,093			2,236		3.49	%		255,446			2,245		3.52	%
Total interest-bearing liabilities		10,246,573			84,340		3.27	%		10,285,823			85,886		3.36	%		9,752,622			69,798		2.84	%
Demand deposits		4,305,783								4,267,590								4,633,856
Other noninterest-bearing liabilities		370,736								383,447								389,912
Total liabilities		14,923,092								14,936,860								14,776,390
Shareholders’ equity		2,105,049								2,045,622								1,986,469
Total liabilities and equity	$	17,028,141							$	16,982,482							$	16,762,859
Net interest income (tax-equivalent basis) (4)				$	113,392							$	110,137							$	114,256
Reconciliation of Non-GAAP Financial Measures
Tax-equivalent basis adjustment					(1,110	)							(1,089	)							(1,198	)
Net interest income (GAAP)				$	112,282							$	109,048							$	113,058

Interest rate spread (2)(4)							1.84	%							1.78	%							1.96	%
Interest expense as a percent of average earning assets							2.18	%							2.25	%							1.82	%
Net interest margin (tax-equivalent basis) (3)(4)							2.93	%							2.89	%							2.98	%
Total cost of deposits							2.29	%							2.32	%							1.84	%

(1) Yields and interest income are presented on a tax-equivalent basis using the federal statutory tax rate of 21%.
(2) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax-equivalent.
(3) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax-equivalent.
(4) Non-GAAP.


TOWNEBANK
Average Balances, Yields and Rate Paid (unaudited)
(dollars in thousands)

	Nine Months Ended								Nine Months Ended
	September 30, 2024								September 30, 2023
				Interest			Average					Interest			Average
	Average			Income/			Yield/		Average			Income/			Yield/
	Balance			Expense			Rate (1)		Balance			Expense			Rate (1)
Assets:
Loans (net of unearned income and deferred costs)	$	11,423,458		$	463,794		5.42	%	$	11,159,329		$	417,808		5.01	%
Taxable investment securities		2,395,007			61,327		3.41	%		2,420,634			52,656		2.90	%
Tax-exempt investment securities		162,294			4,756		3.91	%		201,535			5,883		3.89	%
Total securities		2,557,301			66,083		3.45	%		2,622,169			58,539		2.98	%
Interest-bearing deposits		1,192,319			43,995		4.93	%		1,179,952			40,168		4.55	%
Mortgage loans held for sale		163,755			7,908		6.44	%		168,822			8,079		6.38	%
Total earning assets		15,336,833			581,780		5.07	%		15,130,272			524,594		4.64	%
Less: allowance for loan losses		(126,508	)							(120,420	)
Total nonearning assets		1,748,215								1,637,952
Total assets	$	16,958,540							$	16,647,804
Liabilities and Equity:
Interest-bearing deposits
Demand and money market	$	6,880,752		$	145,042		2.82	%	$	6,349,422		$	96,742		2.04	%
Savings		320,696			2,569		1.07	%		376,282			2,676		0.95	%
Certificates of deposit		2,674,509			94,928		4.74	%		1,964,718			47,358		3.22	%
Total interest-bearing deposits		9,875,957			242,539		3.28	%		8,690,422			146,776		2.26	%
Borrowings		115,171			4,679		5.34	%		505,856			17,644		4.60	%
Subordinated debt, net		256,094			6,710		3.49	%		253,612			6,650		3.50	%
Total interest-bearing liabilities		10,247,222			253,928		3.31	%		9,449,890			171,070		2.42	%
Demand deposits		4,265,971								4,873,945
Other noninterest-bearing liabilities		381,547								353,459
Total liabilities		14,894,740								14,677,294
Shareholders’ equity		2,063,800								1,970,510
Total liabilities and equity	$	16,958,540							$	16,647,804
Net interest income (tax-equivalent basis)(4)				$	327,852							$	353,524
Reconciliation of Non-GAAP Financial Measures
Tax-equivalent basis adjustment					(3,304	)							(3,477	)
Net interest income (GAAP)				$	324,548							$	350,047

Interest rate spread (2)(4)							1.76	%							2.22	%
Interest expense as a percent of average earning assets							2.21	%							1.51	%
Net interest margin (tax-equivalent basis) (3)(4)							2.86	%							3.12	%
Total cost of deposits							2.29	%							1.45	%

(1) Yields and interest income are presented on a tax-equivalent basis using the federal statutory rate of 21%.
(2) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax-equivalent.
(3) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax-equivalent.
(4) Non-GAAP.


TOWNEBANK
Consolidated Balance Sheets
(dollars in thousands, except share data)


	September 30,			December 31,
		2024			2023
	(unaudited)			(audited)
ASSETS
Cash and due from banks	$	131,068		$	85,584
Interest-bearing deposits at FRB		1,061,596			939,356
Interest-bearing deposits in financial institutions		103,400			103,417
Total Cash and Cash Equivalents		1,296,064			1,128,357
Securities available for sale, at fair value (amortized cost of $2,474,963 and $2,292,963, and allowance for credit losses of $1,171 and $1,498 at September 30, 2024 and December 31, 2023, respectively)		2,363,176			2,129,342
Securities held to maturity, at amortized cost (fair value $204,816 and $462,656 at September 30, 2024 and December 31, 2023, respectively)		212,422			477,592
Less: Allowance for credit losses		(77	)		(84	)
Securities held to maturity, net of allowance for credit losses		212,345			477,508
Other equity securities		12,681			13,792
FHLB stock		12,134			21,372
Total Securities		2,600,336			2,642,014
Mortgage loans held for sale		264,320			149,987
Loans, net of unearned income and deferred costs		11,412,518			11,329,021
Less: allowance for credit losses		(123,191	)		(126,461	)
Net Loans		11,289,327			11,202,560
Premises and equipment, net		365,764			337,598
Goodwill		457,619			456,335
Other intangible assets, net		63,265			64,634
BOLI		279,325			277,445
Other assets		572,000			576,109
TOTAL ASSETS	$	17,188,020		$	16,835,039

LIABILITIES AND EQUITY
Deposits:
Noninterest-bearing demand	$	4,267,628		$	4,342,701
Interest-bearing:
Demand and money market accounts		6,990,103			6,757,619
Savings		319,970			336,492
Certificates of deposit		2,785,469			2,456,394
Total Deposits		14,363,170			13,893,206
Advances from the FHLB		3,405			203,958
Subordinated debt, net		256,444			255,796
Repurchase agreements and other borrowings		30,970			32,826
Total Borrowings		290,819			492,580
Other liabilities		371,316			393,375
TOTAL LIABILITIES		15,025,305			14,779,161
Preferred stock, authorized and unissued shares – 2,000,000		—			—
Common stock, $1.667 par value: 150,000,000 shares authorized;
75,068,662 and 74,893,462 shares issued at
September 30, 2024 and December 31, 2023, respectively		125,139			124,847
Capital surplus		1,117,279			1,112,761
Retained earnings		985,343			921,126
Common stock issued to deferred compensation trust, at cost:
1,056,823 and 1,004,717 shares at September 30, 2024 and December 31, 2023, respectively		(22,224	)		(20,813	)
Deferred compensation trust		22,224			20,813
Accumulated other comprehensive income (loss)		(81,482	)		(118,762	)
TOTAL SHAREHOLDERS’ EQUITY		2,146,279			2,039,972
Noncontrolling interest		16,436			15,906
TOTAL EQUITY		2,162,715			2,055,878
TOTAL LIABILITIES AND EQUITY	$	17,188,020		$	16,835,039

TOWNEBANK
Consolidated Statements of Income (unaudited)
(dollars in thousands, except per share data)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2024			2023			2024			2023
INTEREST INCOME:
Loans, including fees	$	155,792		$	143,605		$	461,316		$	415,351
Investment securities		22,334			20,292			65,257			57,519
Interest-bearing deposits in financial institutions and federal funds sold		15,249			15,031			43,995			40,168
Mortgage loans held for sale		3,247			3,928			7,908			8,079
Total interest income		196,622			182,856			578,476			521,117
INTEREST EXPENSE:
Deposits		82,128			64,171			242,539			146,776
Advances from the FHLB		29			3,438			3,408			16,838
Subordinated debt, net		2,237			2,245			6,710			6,650
Repurchase agreements and other borrowings		(54	)		(56	)		1,271			806
Total interest expense		84,340			69,798			253,928			171,070
Net interest income		112,282			113,058			324,548			350,047
PROVISION FOR CREDIT LOSSES		(1,100	)		1,007			(2,154	)		16,232
Net interest income after provision for credit losses		113,382			112,051			326,702			333,815
NONINTEREST INCOME:
Residential mortgage banking income, net		11,786			10,648			35,685			31,380
Insurance commissions and related income, net		25,727			23,777			75,297			69,098
Property management income, net		11,221			12,800			42,306			40,433
Real estate brokerage income, net		—			(63	)		—			3,562
Service charges on deposit accounts		3,117			2,823			9,548			8,577
Credit card merchant fees, net		1,830			2,006			5,042			5,232
Investment commissions, net		2,835			2,363			7,759			6,581
BOLI		1,886			1,814			6,966			5,196
Gain on sale of equity investment		20			554			20			9,386
Other income		3,814			3,084			9,345			9,083
Net gain/(loss) on investment securities		—			—			74			—
Total noninterest income		62,236			59,806			192,042			188,528
NONINTEREST EXPENSE:
Salaries and employee benefits		72,123			67,258			214,849			204,124
Occupancy		9,351			9,027			28,490			27,579
Furniture and equipment		4,657			4,100			13,769			12,733
Amortization – intangibles		3,130			3,610			9,675			10,744
Software		6,790			6,130			19,947			17,922
Data processing		4,701			4,140			13,223			11,504
Professional fees		4,720			2,770			11,689			8,948
Advertising and marketing		4,162			3,653			12,268			12,012
Other expenses		17,266			17,014			52,565			61,762
Total noninterest expense		126,900			117,702			376,475			367,328
Income before income tax expense and noncontrolling interest		48,718			54,155			142,269			155,015
Provision for income tax expense		5,592			9,410			20,977			28,424
Net income	$	43,126		$	44,745		$	121,292		$	126,591
Net income attributable to noncontrolling interest		(177	)		117			(800	)		(1,680	)
Net income attributable to TowneBank	$	42,949		$	44,862		$	120,492		$	124,911
Per common share information
Basic earnings	$	0.57		$	0.60		$	1.61		$	1.67
Diluted earnings	$	0.57		$	0.60		$	1.61		$	1.67
Cash dividends declared	$	0.25		$	0.25		$	0.75		$	0.73


TOWNEBANK
Consolidated Balance Sheets – Five Quarter Trend
(dollars in thousands, except share data)


	September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023
	(unaudited)			(unaudited)			(unaudited)			(audited)			(unaudited)
ASSETS
Cash and due from banks	$	131,068		$	140,028		$	75,802		$	85,584		$	83,949
Interest-bearing deposits at FRB		1,061,596			1,062,115			926,635			939,356			1,029,276
Interest-bearing deposits in financial institutions		103,400			99,303			98,673			103,417			102,527
Total Cash and Cash Equivalents		1,296,064			1,301,446			1,101,110			1,128,357			1,215,752
Securities available for sale		2,363,176			2,250,679			2,204,101			2,129,342			1,963,453
Securities held to maturity		212,422			212,488			312,510			477,592			547,854
Less: allowance for credit losses		(77	)		(79	)		(82	)		(84	)		(85	)
Securities held to maturity, net of allowance for credit losses		212,345			212,409			312,428			477,508			547,769
Other equity securities		12,681			13,566			13,661			13,792			14,062
FHLB stock		12,134			12,134			12,139			21,372			16,634
Total Securities		2,600,336			2,488,788			2,542,329			2,642,014			2,541,918
Mortgage loans held for sale		264,320			200,762			150,727			149,987			188,048
Loans, net of unearned income and deferred costs		11,412,518			11,451,747			11,452,343			11,329,021			11,172,971
Less: Allowance for credit losses		(123,191	)		(125,552	)		(125,835	)		(126,461	)		(125,159	)
Net Loans		11,289,327			11,326,195			11,326,508			11,202,560			11,047,812
Premises and equipment, net		365,764			340,348			342,569			337,598			335,522
Goodwill		457,619			457,619			457,619			456,335			456,684
Other intangible assets, net		63,265			65,460			68,758			64,634			67,496
BOLI		279,325			277,434			279,293			277,445			275,240
Other assets		572,000			610,791			615,324			576,109			551,884
TOTAL ASSETS	$	17,188,020		$	17,068,843		$	16,884,237		$	16,835,039		$	16,680,356
LIABILITIES AND EQUITY
Deposits:
Noninterest-bearing demand	$	4,267,628		$	4,303,773		$	4,194,132		$	4,342,701		$	4,444,861
Interest-bearing:
Demand and money market accounts		6,990,103			6,940,086			6,916,701			6,757,619			6,764,415
Savings		319,970			312,881			326,179			336,492			350,031
Certificates of deposit		2,785,469			2,715,848			2,689,062			2,456,394			2,321,498
Total Deposits		14,363,170			14,272,588			14,126,074			13,893,206			13,880,805
Advances from the FHLB		3,405			3,591			3,775			203,958			104,139
Subordinated debt, net		256,444			256,227			256,011			255,796			255,580
Repurchase agreements and other borrowings		30,970			35,351			31,198			32,826			47,315
Total Borrowings		290,819			295,169			290,984			492,580			407,034
Other liabilities		371,316			411,770			401,307			393,375			408,305
TOTAL LIABILITIES		15,025,305			14,979,527			14,818,365			14,779,161			14,696,144

Preferred stock		—			—			—			—			—
Common stock, $1.667 par value		125,139			125,090			125,009			124,847			124,837
Capital surplus		1,117,279			1,115,759			1,114,038			1,112,761			1,111,152
Retained earnings		985,343			961,162			937,065			921,126			911,042
Common stock issued to deferred compensation trust, at cost		(22,224	)		(22,756	)		(20,915	)		(20,813	)		(20,740	)
Deferred compensation trust		22,224			22,756			20,915			20,813			20,740
Accumulated other comprehensive income (loss)		(81,482	)		(129,224	)		(126,586	)		(118,762	)		(179,043	)
TOTAL SHAREHOLDERS’ EQUITY		2,146,279			2,072,787			2,049,526			2,039,972			1,967,988
Noncontrolling interest		16,436			16,529			16,346			15,906			16,224
TOTAL EQUITY		2,162,715			2,089,316			2,065,872			2,055,878			1,984,212
TOTAL LIABILITIES AND EQUITY	$	17,188,020		$	17,068,843		$	16,884,237		$	16,835,039		$	16,680,356


TOWNEBANK
Consolidated Statements of Income – Five Quarter Trend (unaudited)
(dollars in thousands, except share data)


	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023
INTEREST INCOME:
Loans, including fees	$	155,792		$	154,549		$	150,974		$	146,810		$	143,605
Investment securities		22,334			22,928			19,996			20,464			20,292
Interest-bearing deposits in financial institutions and federal funds sold		15,249			14,512			14,234			13,967			15,031
Mortgage loans held for sale		3,247			2,945			1,716			2,886			3,928
Total interest income		196,622			194,934			186,920			184,127			182,856
INTEREST EXPENSE:
Deposits		82,128			82,023			78,388			73,200			64,171
Advances from the FHLB		29			942			2,438			917			3,438
Subordinated debt, net		2,237			2,236			2,236			2,236			2,245
Repurchase agreements and other borrowings		(54	)		685			640			41			(56	)
Total interest expense		84,340			85,886			83,702			76,394			69,798
Net interest income		112,282			109,048			103,218			107,733			113,058
PROVISION FOR CREDIT LOSSES		(1,100	)		(177	)		(877	)		2,446			1,007
Net interest income after provision for credit losses		113,382			109,225			104,095			105,287			112,051
NONINTEREST INCOME:
Residential mortgage banking income, net		11,786			13,422			10,477			8,035			10,648
Insurance commissions and related income, net		25,727			24,031			25,539			21,207			23,777
Property management income, net		11,221			14,312			16,773			7,358			12,800
Real estate brokerage income, net		—			—			—			(32	)		(63	)
Service charges on deposit accounts		3,117			3,353			3,079			3,056			2,823
Credit card merchant fees, net		1,830			1,662			1,551			1,476			2,006
Investment commissions, net		2,835			2,580			2,343			2,380			2,363
BOLI		1,886			3,238			1,842			2,206			1,814
Other income		3,834			3,324			2,206			2,127			3,638
Net gain/(loss) on investment securities		—			—			74			—			—
Total noninterest income		62,236			65,922			63,884			47,813			59,806
NONINTEREST EXPENSE:
Salaries and employee benefits		72,123			71,349			71,377			66,035			67,258
Occupancy		9,351			9,717			9,422			9,308			9,027
Furniture and equipment		4,657			4,634			4,478			4,445			4,100
Amortization – intangibles		3,130			3,298			3,246			3,411			3,610
Software		6,790			7,056			6,100			6,743			6,130
Data processing		4,701			4,606			3,916			3,529			4,140
Professional fees		4,720			3,788			3,180			3,339			2,770
Advertising and marketing		4,162			3,524			4,582			3,377			3,653
Other expenses		17,266			16,012			19,290			21,708			17,014
Total noninterest expense		126,900			123,984			125,591			121,895			117,702
Income before income tax expense and noncontrolling interest		48,718			51,163			42,388			31,205			54,155
Provision for income tax expense		5,592			8,124			7,261			2,660			9,410
Net income		43,126			43,039			35,127			28,545			44,745
Net income attributable to noncontrolling interest		(177	)		(183	)		(440	)		259			117
Net income attributable to TowneBank	$	42,949		$	42,856		$	34,687		$	28,804		$	44,862
Per common share information
Basic earnings	$	0.57		$	0.57		$	0.46		$	0.39		$	0.60
Diluted earnings	$	0.57		$	0.57		$	0.46		$	0.39		$	0.60
Basic weighted average shares outstanding		74,940,827			74,925,877			74,816,420			74,773,335			74,750,294
Diluted weighted average shares outstanding		75,141,661			75,037,955			74,979,501			74,793,557			74,765,515
Cash dividends declared	$	0.25		$	0.25		$	0.25		$	0.25		$	0.25

TOWNEBANK
Banking Segment Financial Information (unaudited)
(dollars in thousands)


	Three Months Ended									Nine Months Ended						Increase/(Decrease)
	September 30,						June 30,			September 30,						YTD 2024 over 2023
		2024			2023			2024			2024			2023		Amount			Percent
Revenue
Net interest income	$	111,569		$	112,189		$	108,029		$	322,280		$	349,165		$	(26,885	)	(7.70	)%
Service charges on deposit accounts		3,117			2,823			3,352			9,548			8,577			971		11.32	%
Credit card merchant fees		1,830			2,006			1,662			5,042			5,232			(190	)	(3.63	)%
Investment commissions, net		2,835			2,363			2,580			7,759			6,581			1,178		17.90	%
Other income		4,828			4,224			4,840			13,096			12,012			1,084		9.02	%
Subtotal		12,610			11,416			12,434			35,445			32,402			3,043		9.39	%
Net gain/(loss) on investment securities		—			—			—			74			—			74		N/M
Total noninterest income		12,610			11,416			12,434			35,519			32,402			3,117		9.62	%
Total revenue		124,179			123,605			120,463			357,799			381,567			(23,768	)	(6.23	)%

Provision for credit losses		(1,043	)		1,206			(170	)		(2,189	)		16,442			(18,631	)	(113.31	)%

Expenses
Salaries and employee benefits		47,148			42,727			46,640			140,261			128,161			12,100		9.44	%
Occupancy		6,963			6,637			7,194			21,217			19,717			1,500		7.61	%
Furniture and equipment		3,878			3,273			3,810			11,336			10,150			1,186		11.68	%
Amortization of intangible assets		1,072			1,296			1,117			3,352			3,918			(566	)	(14.45	)%
Other expenses		26,674			22,595			23,587			77,215			80,215			(3,000	)	(3.74	)%
Total expenses		85,735			76,528			82,348			253,381			242,161			11,220		4.63	%
Income before income tax, corporate allocation and noncontrolling interest		39,487			45,871			38,285			106,607			122,964			(16,357	)	(13.30	)%
Corporate allocation		1,223			1,291			1,232			3,524			3,763			(239	)	(6.35	)%
Income before income tax provision and noncontrolling interest		40,710			47,162			39,517			110,131			126,727			(16,596	)	(13.10	)%
Provision for income tax expense		3,495			7,440			5,130			12,731			21,204			(8,473	)	(39.96	)%
Net income		37,215			39,722			34,387			97,400			105,523			(8,123	)	(7.70	)%
Noncontrolling interest		(29	)		—			(58	)		34			—			34		N/M
Net income attributable to TowneBank	$	37,186		$	39,722		$	34,329		$	97,434		$	105,523		$	(8,089	)	(7.67	)%

Efficiency ratio ^(non-GAAP)		68.18	%		60.86	%		67.43	%		69.89	%		62.44	%		7.45	%	11.93	%


TOWNEBANK
Realty Segment Financial Information (unaudited)
(dollars in thousands)


	Three Months Ended									Nine Months Ended						Increase/(Decrease)
	September 30,						June 30,			September 30,						YTD 2024 over 2023
		2024			2023			2024			2024			2023		Amount			Percent
Revenue
Residential mortgage brokerage income, net	$	12,211		$	10,955		$	13,996		$	37,006		$	32,964		$	4,042		12.26	%
Real estate brokerage income, net		—			(63	)		—			—			3,562			(3,562	)	(100.00	)%
Title insurance and settlement fees		—			—			—			—			443			(443	)	(100.00	)%
Property management fees, net		11,221			12,800			14,312			42,306			40,433			1,873		4.63	%
Income (loss) from unconsolidated subsidiary		51			(63	)		67			148			(884	)		1,032		116.74	%
Gain on equity investment		—			—			—			—			8,833			(8,833	)	(100.00	)%
Net interest and other income		906			1,163			1,317			3,007			1,984			1,023		51.56	%
Total revenue		24,389			24,792			29,692			82,467			87,335			(4,868	)	(5.57	)%

Provision for credit losses		(57	)		(199	)		(7	)		35			(210	)		245		116.67	%

Expenses
Salaries and employee benefits		12,355			12,881			12,370			36,913			41,670			(4,757	)	(11.42	)%
Occupancy		1,638			1,669			1,811			5,019			5,559			(540	)	(9.71	)%
Furniture and equipment		604			600			596			1,794			1,933			(139	)	(7.19	)%
Amortization of intangible assets		637			742			781			2,094			2,166			(72	)	(3.32	)%
Other expenses		8,839			9,544			9,136			26,174			27,319			(1,145	)	(4.19	)%
Total expenses		24,073			25,436			24,694			71,994			78,647			(6,653	)	(8.46	)%

Income before income tax, corporate allocation and noncontrolling interest		373			(445	)		5,005			10,438			8,898			1,540		17.31	%
Corporate allocation		(484	)		(600	)		(490	)		(1,322	)		(1,800	)		478		(26.56	)%
Income before income tax provision and noncontrolling interest		(111	)		(1,045	)		4,515			9,116			7,098			2,018		28.43	%
Provision for income tax expense		18			(99	)		1,163			2,336			1,769			567		32.05	%
Net income		(129	)		(946	)		3,352			6,780			5,329			1,451		27.23	%
Noncontrolling interest		(148	)		117			(125	)		(834	)		(1,680	)		846		(50.36	)%
Net income attributable to TowneBank	$	(277	)	$	(829	)	$	3,227		$	5,946		$	3,649		$	2,297		62.95	%

Efficiency ratio excluding gain on equity investment ^(non-GAAP)		96.09	%		99.61	%		80.54	%		84.76	%		97.43	%	(12.67		)%	(13.00	)%

TOWNEBANK
Insurance Segment Financial Information (unaudited)
(dollars in thousands)


	Three Months Ended									Nine Months Ended						Increase/(Decrease)
	September 30,						June 30,			September 30,						YTD 2024 over 2023
		2024			2023			2024			2024			2023		Amount			Percent
Commission and fee income
Property and casualty	$	23,157		$	22,103		$	22,225		$	66,104		$	60,259		$	5,845		9.70	%
Employee benefits		4,483			4,245			4,404			13,712			13,393			319		2.38	%
Specialized benefit services		—			133			—			10			445			(435	)	(97.75	)%
Total commissions and fees		27,640			26,481			26,629			79,826			74,097			5,729		7.73	%

Contingency and bonus revenue		2,731			2,335			2,951			10,185			9,343			842		9.01	%
Other income		25			557			6			41			573			(532	)	(92.84	)%
Total revenue		30,396			29,373			29,586			90,052			84,013			6,039		7.19	%

Employee commission expense		4,446			4,906			4,771			13,728			14,340			(612	)	(4.27	)%
Revenue, net of commission expense		25,950			24,467			24,815			76,324			69,673			6,651		9.55	%

Salaries and employee benefits		12,620			11,650			12,339			37,675			34,293			3,382		9.86	%
Occupancy		750			721			712			2,254			2,303			(49	)	(2.13	)%
Furniture and equipment		175			227			228			639			650			(11	)	(1.69	)%
Amortization of intangible assets		1,421			1,572			1,400			4,229			4,660			(431	)	(9.25	)%
Other expenses		2,126			1,568			2,263			6,303			4,614			1,689		36.61	%
Total operating expenses		17,092			15,738			16,942			51,100			46,520			4,580		9.85	%
Income before income tax, corporate allocation and noncontrolling interest		8,858			8,729			7,873			25,224			23,153			2,071		8.94	%
Corporate allocation		(739	)		(691	)		(742	)		(2,202	)		(1,963	)		(239	)	12.18	%
Income before income tax provision and noncontrolling interest		8,119			8,038			7,131			23,022			21,190			1,832		8.65	%
Provision for income tax expense		2,079			2,069			1,831			5,910			5,451			459		8.42	%
Net income		6,040			5,969			5,300			17,112			15,739			1,373		8.72	%
Noncontrolling interest		—			—			—			—			—			—		—	%
Net income attributable to TowneBank	$	6,040		$	5,969		$	5,300		$	17,112		$	15,739		$	1,373		8.72	%

Provision for income taxes		2,079			2,069			1,831			5,910			5,451			459		8.42	%
Depreciation, amortization and interest expense		1,550			1,726			1,529			4,632			5,115			(483	)	(9.44	)%
EBITDA ^(non-GAAP)	$	9,669		$	9,764		$	8,660		$	27,654		$	26,305		$	1,349		5.13	%

Efficiency ratio ^(non-GAAP)		60.44	%		59.21	%		62.63	%		61.43	%		60.55	%		0.88	%	1.45	%


TOWNEBANK
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands)

	Three Months Ended									Nine Months Ended
	September 30,			September 30,			June 30,			September 30,			September 30,
		2024			2023			2024			2024			2023

Return on average assets (GAAP)		1.00	%		1.06	%		1.01	%		0.95	%		1.00	%
Impact of excluding average goodwill and other intangibles and amortization		0.09	%		0.11	%		0.10	%		0.09	%		0.11	%
Return on average tangible assets (non-GAAP)		1.09	%		1.17	%		1.11	%		1.04	%		1.11	%

Return on average equity (GAAP)		8.12	%		8.96	%		8.43	%		7.80	%		8.48	%
Impact of excluding average goodwill and other intangibles and amortization		3.30	%		4.01	%		3.60	%		3.31	%		3.87	%
Return on average tangible equity (non-GAAP)		11.42	%		12.97	%		12.03	%		11.11	%		12.35	%

Return on average common equity (GAAP)		8.18	%		9.04	%		8.49	%		7.86	%		8.54	%
Impact of excluding average goodwill and other intangibles and amortization		3.36	%		4.07	%		3.67	%		3.37	%		3.95	%
Return on average tangible common equity (non-GAAP)		11.54	%		13.11	%		12.16	%		11.23	%		12.49	%

Book value (GAAP)	$	28.59		$	26.28		$	27.62		$	28.59		$	26.28
Impact of excluding average goodwill and other intangibles and amortization		(6.94	)		(7.00	)		(6.97	)		(6.94	)		(7.00	)
Tangible book value (non-GAAP)	$	21.65		$	19.28		$	20.65		$	21.65		$	19.28

Efficiency ratio (GAAP)		72.71	%		68.09	%		70.86	%		72.88	%		68.20	%
Impact of exclusions	(1.78		)%	(1.88		)%	(1.88		)%	(1.86		)%	(0.82		)%
Efficiency ratio (non-GAAP)		70.93	%		66.21	%		68.98	%		71.02	%		67.38	%

Average assets (GAAP)	$	17,028,141		$	16,762,859		$	16,982,482		$	16,958,540		$	16,647,804
Less: average goodwill and intangible assets		522,219			526,445			525,122			523,335			526,375
Average tangible assets (non-GAAP)	$	16,505,922		$	16,236,414		$	16,457,360		$	16,435,205		$	16,121,429

Average equity (GAAP)	$	2,105,049		$	1,986,469		$	2,045,622		$	2,063,800		$	1,970,510
Less: average goodwill and intangible assets		522,219			526,445			525,122			523,335			526,375
Average tangible equity (non-GAAP)	$	1,582,830		$	1,460,024		$	1,520,500		$	1,540,465		$	1,444,135

Average common equity (GAAP)	$	2,088,674		$	1,969,898		$	2,029,150		$	2,047,482		$	1,954,850
Less: average goodwill and intangible assets		522,219			526,445			525,122			523,335			526,375
Average tangible common equity (non-GAAP)	$	1,566,455		$	1,443,453		$	1,504,028		$	1,524,147		$	1,428,475

Net income (GAAP)	$	42,949		$	44,862		$	42,856		$	120,492		$	124,911
Amortization of intangibles, net of tax		2,473			2,852			2,605			7,643			8,488
Tangible net income (non-GAAP)	$	45,422		$	47,714		$	45,461		$	128,135		$	133,399

Total revenue (GAAP)	$	174,518		$	172,864		$	174,970		$	516,590		$	538,575
Net (gain)/loss on investment securities		—			—			—			(74	)		—
Other nonrecurring (income) loss		(20	)		(554	)		—			(20	)		(9,386	)
Total Revenue for efficiency calculation (non-GAAP)	$	174,498		$	172,310		$	174,970		$	516,496		$	529,189

Noninterest expense (GAAP)	$	126,900		$	117,702		$	123,984		$	376,475		$	367,328
Less: amortization of intangibles		3,130			3,610			3,298			9,675			10,744
Noninterest expense net of amortization (non-GAAP)	$	123,770		$	114,092		$	120,686		$	366,800		$	356,584


TOWNEBANK
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands, except per share data)


Reconciliation of GAAP Earnings to Operating Earnings Excluding Certain Items Affecting Comparability	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2023			2023			2023
Net income (GAAP)	$	42,949		$	42,856		$	34,687		$	28,804		$	44,862

Adjustments
Plus: Acquisition-related expenses, net of tax		460			18			564			56			458
Plus: FDIC special assessment, net of tax		—			(310	)		1,021			4,083			—
Less: Gain on sale of equity investments, net of noncontrolling interest		(16	)		—			—			(1,846	)		(438	)
Core operating earnings, excluding certain items affecting comparability (non-GAAP)	$	43,393		$	42,564		$	36,272		$	31,097		$	44,882
Weighted average diluted shares		75,141,661			75,037,955			74,979,501			74,793,557			74,765,515
Diluted EPS (GAAP)	$	0.57		$	0.57		$	0.46		$	0.39		$	0.60
Diluted EPS, excluding certain items affecting comparability (non-GAAP)	$	0.58		$	0.57		$	0.48		$	0.42		$	0.60
Average assets	$	17,028,141		$	16,982,482		$	16,864,235		$	16,683,041		$	16,762,859
Average tangible equity	$	1,582,830		$	1,520,500			1,517,600		$	1,465,216		$	1,460,024
Average common tangible equity	$	1,566,455		$	1,504,028		$	1,501,494		$	1,449,052		$	1,443,453
Return on average assets, excluding certain items affecting comparability (non-GAAP)		1.01	%		1.01	%		0.87	%		0.74	%		1.06	%
Return on average tangible equity, excluding certain items affecting comparability (non-GAAP)		11.53	%		11.95	%		10.29	%		9.15	%		12.97	%
Return on average common tangible equity, excluding certain items affecting comparability (non-GAAP)		11.65	%		12.08	%		10.40	%		9.25	%		13.13	%
Efficiency ratio, excluding certain items affecting comparability (non-GAAP)		72.45	%		70.85	%		74.84	%		78.33	%		67.76	%

TOWNEBANK
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands, except per share data)


Reconciliation of GAAP Earnings to Operating Earnings Excluding Certain Items Affecting Comparability	Nine Months Ended
	September 30,			September 30,
		2024			2023
Net income (GAAP)	$	120,492		$	124,911

Adjustments
Plus: Acquisition-related expenses, net of tax		1,040			7,718
Plus: FDIC special assessment, net of tax		711			—
Plus: Initial provision for acquired loans, net of tax		—			3,166
Less: Gain on sale of equity investments, net of noncontrolling interest and tax		(16	)		(5,951	)
Core operating earnings, excluding certain items affecting comparability (non-GAAP)	$	122,227		$	129,844
Weighted average diluted shares		75,043,848			74,618,743
Diluted EPS (GAAP)	$	1.61		$	1.67
Diluted EPS, excluding certain items affecting comparability (non-GAAP)	$	1.63		$	1.74
Average assets	$	16,958,540		$	16,647,804
Average tangible equity	$	1,540,465		$	1,444,135
Average tangible common equity	$	1,524,147		$	1,428,475
Return on average assets, excluding certain items affecting comparability (non-GAAP)		0.96	%		1.04	%
Return on average tangible equity, excluding certain items affecting comparability (non-GAAP)		11.26	%		12.81	%
Return on average common tangible equity, excluding certain items affecting comparability (non-GAAP)		11.38	%		12.95	%
Efficiency ratio, excluding certain items affecting comparability (non-GAAP)		72.68	%		67.61	%

The MIL Network –

January 25, 2025

MIL-OSI: First Bank Announces Third Quarter 2024 Net Income of $8.2 Million

Source: GlobeNewswire (MIL-OSI)

Results reflect strong loan and deposit growth, solid asset quality, and balance sheet optimization initiatives

HAMILTON, N.J., Oct. 23, 2024 (GLOBE NEWSWIRE) — First Bank (Nasdaq Global Market: FRBA) (the Bank) today announced results for the third quarter of 2024. Net income for the third quarter of 2024 was $8.2 million, or $0.32 per diluted share. Return on average assets, return on average equity and return on average tangible equity^[i] for the third quarter of 2024 were 0.88%, 8.15% and 9.42%, respectively. The Bank recorded a net loss of $1.3 million, or a loss of $0.05 per diluted share, and losses on average assets, equity, and tangible equityⁱ of 0.14%, 1.43%, and 1.66%, respectively, for the third quarter of 2023. Financial results for the third quarter of 2023 were negatively impacted by the Malvern Bancorp acquisition, completed in July 2023, primarily due to the merger-related expenses and the initial credit loss expense on acquired loans.

Third Quarter 2024 Performance Highlights:

Total loans of $3.09 billion at September 30, 2024 grew $89.5 million, or 11.9%, annualized, from the linked quarter ended June 30, 2024. Loan growth occurred late in the quarter, which is reflected in average loan balance increase of only $12.2 million during the quarter ended September 30, 2024. The growth was primarily driven by $56.9 million expansion within the Commercial and Industrial and Owner-occupied commercial real estate loan categories.
Total deposits of $3.05 billion at September 30, 2024 grew $82.4 million, or 11.1%, annualized, from the linked quarter. Growth occurred across all deposit categories, as non-interest bearing demand, interest bearing demand, money market and savings, and time deposits increased $19.3 million, $23.3 million, $36.3 million, and $3.6 million, respectively, from the second quarter of 2024.
Tangible book value per share^[ii] grew to $13.84 at September 30, 2024, increasing 11.2%, annualized, from $13.46 at June 30, 2024.
The Bank continued to prioritize balance sheet efficiency, selling approximately $11.7 million of investment securities during the quarter ended September 30, 2024 which resulted in a $555,000 net loss on the sale of investments during the quarter. The Bank also completed a restructuring of its bank-owned life insurance (BOLI) portfolio during the quarter which resulted in approximately $24 million in terminated policies and the acquisition of approximately $20 million in new policies. As a result of the restructure, the Bank recorded a $1.1 million enhancement to the cash surrender value and recognized additional income tax expense totaling $1.2 million.
Strong asset quality continued, with nonperforming assets decreasing by 9 basis points to 0.47% of total assets at September 30, 2024 from 0.56% at June 30, 2024.

Patrick L. Ryan, President and CEO of First Bank, reflected on the Bank’s performance, stating, “First Bank’s outstanding third quarter growth is an outcome of a well-executed long-term strategy. We have worked to build teams, products, and operating structures that promote quality growth over the long term, and the results are evident. Our teams added high-quality loans and deposits across all categories. We also continued to optimize the Bank’s efficiency as our efficiency ratio^[iii] remained below 60% for the 21st consecutive quarter. We continued to enact strategies to enhance future profitability and complement our organic growth efforts including ongoing balance sheet restructuring through the sale of certain lower-yielding investment securities, and we opportunistically restructured our BOLI policies during the quarter, an initiative that will be accretive to future earnings. The current quarter highlighted our efforts to build our core community banking customer base while we expand our specialty banking teams and continued investment in technology to improve the customer experience.”

Mr. Ryan added, “We are pleased with our ability to generate solid returns for our shareholders, including this quarter’s 11% annualized growth in tangible book value per share. We continue to explore a variety of opportunities to drive future earnings. Our recent receipt of regulatory approval to initiate stock repurchases also adds to our toolkit of options to support continued and growing returns for our shareholders.”

Income Statement

In the third quarter of 2024, the Bank’s net interest income increased to $30.1 million, growing $1.5 million, or 5.2%, compared to the same period in 2023. The increase was primarily due to net interest margin expansion in the third quarter of 2024 compared to the third quarter of 2023. Net interest income decreased $446,000, or 1.5%, from the linked second quarter of 2024. The modest decrease was primarily due to net interest margin compression and the timing of our loan growth, which occurred late in the third quarter, limiting interest income received during the quarter. During the third quarter, a $606,000 increase in interest income compared to the second quarter of 2024 was primarily related to higher earning asset balances, which was offset by a $1.1 million increase in interest expense, resulting from increased deposit costs and a higher level of average borrowings.

The Bank’s tax equivalent net interest margin of 3.49% for the third quarter of 2024 represented an increase of 13 basis points from the quarter ended September 30, 2023 and a decrease of 13 basis points from the linked quarter ended June 30, 2024. The Bank’s tax equivalent net interest margin includes the impact of amortization and accretion of premiums and discounts from fair value measurements of assets acquired and liabilities assumed in acquisitions. Amortization of premiums and accretion of discounts from fair value measurements of assets acquired and liabilities assumed in acquisitions totaled $3.4 million during the third quarter of 2024, compared to $2.7 million for the quarter ended September 30, 2023 and $3.6 million for the quarter ended June 30, 2024. The Bank’s net interest margin declined compared to the linked second quarter due to lower acquisition accounting accretion income, increased levels of average borrowings, lower average loan yields, and higher interest bearing deposit costs.

The Bank recorded a credit loss expense totaling $1.6 million during the third quarter of 2024, compared to $63,000 recorded during the second quarter of 2024 and $6.7 million recorded for the third quarter of 2023. The Bank’s credit loss expense for the third quarter of 2024 was commensurate with robust organic loan growth during the quarter and continued to reflect strong and stable asset quality. Credit loss expense for the third quarter of 2023 included a $5.5 million credit loss recorded to establish the allowance for credit losses on the acquired Malvern loan portfolio.

In the third quarter of 2024, the Bank recorded non-interest income of $2.5 million, compared to $193,000 during the same period in 2023 and $689,000 in the second quarter of 2024. The increase in non-interest income was primarily related to approximately $1.1 million in one-time enhancement to the cash surrender value of BOLI that resulted from the aforementioned BOLI restructuring transaction during the quarter, as well as higher yields earned on the new BOLI policies purchased during the quarter. Additionally, the Bank recorded $135,000 in net gains on the sale of loans during third quarter 2024, compared to net losses on the sale of loans totaling $900,000 and $704,000 in the linked and prior year quarters, respectively. This was partially offset by $555,000 in net losses on the sale of investment securities during third quarter 2024, while no investment securities sales were executed in the linked quarter, and $527,000 in net losses were recognized during the third quarter of 2023.

Non-interest expense for the third quarter of 2024 was $18.6 million, a decrease of $4.8 million, or 20.6%, compared to $23.4 million for the prior year quarter. Lower non-interest expense was largely due to $7.0 million in merger-related expenses recorded during the third quarter of 2023. Excluding merger-related expenses, non-interest expense grew $2.2 million, or 13.3%, including an increase of $849,000 in salaries and employee benefits due to merit increases and a larger employee base. Other real estate owned (OREO) expense totaled $662,000 during third quarter 2024, with no similar expense recorded in third quarter 2023. The increase reflects a $363,000 impairment of an OREO asset along with other legal and real estate tax expenses recorded during the quarter. Additionally, other professional fees increased $312,000 primarily related to increases in personnel placement costs, consulting fees, and tax services.

On a linked quarter basis, non-interest expense increased $691,000, or 3.8%, from $18.0 million for the second quarter of 2024. The largest impact on expenses compared to the linked quarter is the aforementioned $363,000 OREO impairment expense during third quarter 2024. Salaries and employee benefits expense increased by $207,000 primarily due to a larger employee base. These were partially offset by modest decreases in marketing and advertising costs, as well as travel and entertainment expenses.

Income tax expense for the three months ended September 30, 2024 was $4.2 million with an effective tax rate of 33.9%, compared to an income tax benefit of $78,000 for the third quarter of 2023 and an income tax expense of $2.1 million with an effective tax rate of 16.2% for the second quarter of 2024. The effective tax rate for the third quarter of 2024 included approximately $1.2 million of tax expense recorded related to the BOLI restructuring. Excluding this impact, the effective tax rate would have been approximately 24% for the third quarter of 2024. The effective tax rate for the second quarter of 2024 was lower compared to the first quarter due to the recently enacted New Jersey Corporate Transit Fee, which resulted in a change in tax rate and a revaluation of the Bank’s deferred tax assets. A tax benefit of $1.1 million was booked as a discrete item in the second quarter for this change in tax rate. With the expected negative ongoing impact of the New Jersey Corporate Transit Fee, we anticipate our future effective tax rate will range between 24% and 25%.

Balance Sheet

Total assets increased $148.3 million, or 4.1%, from December 31, 2023 to September 30, 2024. Total loans increased $66.0 million, or 2.2%, from December 31, 2023 to September 30, 2024. Growth totaling $116.3 million across the owner-occupied commercial real estate and commercial and industrial loan portfolios was partially offset by a decline of commercial investor real estate loans totaling $47.8 million, including multi-family and construction and development, during the first nine months of 2024. The Bank continues to prioritize relationship-based commercial and industrial lending while actively managing our exposure in investor real estate lending.

Total assets grew $141.9 million, or 15.6% annualized, during the quarter ended September 30, 2024. Growth included an increase of $71.5 million in cash and cash equivalents related to the opportunistic addition of FHLB advances when interest rates declined during the quarter. Total loans increased by $89.5 million, or 11.9%, annualized, during the quarter ended September 30, 2024. Growth across the owner-occupied commercial real estate and commercial and industrial loan portfolios totaled $56.9 million, while commercial investor real estate loans, including multi-family and construction and development, grew $27.5 million, and consumer and residential real estate loans grew $5.2 million.

Total deposits increased by $82.4 million, or 11.1% annualized, during the quarter ended September 30, 2024. Growth occurred across all categories, with non-interest bearing demand, interest bearing demand, money market and savings, and time deposits increasing $19.3 million, $23.3 million, $36.3 million, and $3.6 million, respectively, from the second quarter of 2024. Our team continued to focus on attracting new deposit relationships while maintaining existing core balances.

Nearly all of the Bank’s deposit growth for the first nine months of 2024 occurred during the quarter ended September 30, 2024. We also experienced a slight shift in the mix of customer balances over the nine-month period. The Bank grew non-interest bearing demand deposits by $17.3 million in a challenging interest rate environment, while total interest-bearing deposits experienced a shift toward higher-costing deposits. During the first nine months of 2024, increases in money market and savings deposits and time deposits totaled $64.2 million and $32.3 million, respectively, partially offset by a decline in interest bearing demand deposits totaling $31.3 million.

During the nine months ended September 30, 2024, stockholders’ equity increased by $31.2 million, primarily due to net income, partially offset by dividends.

As of September 30, 2024, the Bank continued to exceed all regulatory capital requirements to be considered well-capitalized, with a Tier 1 Leverage ratio of 9.53%, a Tier 1 Risk-Based capital ratio of 9.65%, a Common Equity Tier 1 Capital ratio of 9.65%, and a Total Risk-Based capital ratio of 11.55%. The tangible stockholders’ equity to tangible assets ratio^[IV] increased to 9.41% as of September 30, 2024 compared to 8.89% at December 31, 2023.

Asset Quality

First Bank’s asset quality metrics for the third quarter of 2024 remained favorable. Total nonperforming loans declined from $25.0 million at December 31, 2023 to $12.0 million at September 30, 2024, while total nonperforming assets declined from $25.0 million to $17.7 million during the same period.

The Bank recorded net charge-offs of $386,000 during the third quarter of 2024, compared to net charge-offs of $175,000 during the second quarter of 2024 and net charge-offs of $1.1 million in the third quarter of 2023. The allowance for credit losses on loans as a percentage of total loans measured 1.21% at September 30, 2024, compared to 1.21% at June 30, 2024 and 1.40% at December 31, 2023. The decline from December 31, 2023 to September 30, 2024 reflected the $5.5 million charge-off and elimination of the Bank’s reserves on a purchase credit deteriorated loan transferred to OREO during the first quarter of 2024.

Liquidity and Borrowings

The Bank increased its liquidity position in the third quarter of 2024. Total cash and cash equivalents increased by $71.5 million to $312.3 million at September 30, 2024. Borrowings increased by $49.9 million compared to June 30, 2024, as the Bank increased its FHLB borrowings.

Management believes the Bank’s current liquidity position, coupled with our various contingent funding sources, provides us with a strong liquidity base and a diverse source of funding options.

Cash Dividend Declared

On October 15, 2024, the Bank’s Board of Directors declared a quarterly cash dividend of $0.06 per share to common stockholders of record at the close of business on November 8, 2024, payable on November 22, 2024.

Share Repurchase Program

The Board of Directors has authorized and the Bank has received regulatory approvals for a new share repurchase program. The program provides for the repurchase of up to 1.0 million shares of First Bank common stock for an aggregate repurchase amount of up to $16.0 million. The timing, price and volume of repurchases will be based on market conditions, relevant securities laws and other factors. The stock repurchases may be made from time to time on the open market or in privately negotiated transactions. The stock repurchase program does not require First Bank to repurchase any specific number of shares, and First Bank may terminate the repurchase program at any time. The share repurchase program will expire on September 30, 2025.

Conference Call and Earnings Release Supplement

Additional details on the quarterly results and the Bank are included in the attached earnings release supplement. http://ml.globenewswire.com/Resource/Download/8c344bfa-6975-4f79-872b-2307433b1520

First Bank will host its earnings call on Thursday, October 24, 2024 at 9:00 AM Eastern Time. The direct dial toll free number for the live call is 1-800-715-9871 and the access code is 1578641. For those unable to participate in the call, a replay will be available by dialing 1-800-770-2030 (access code 8550862) from one hour after the end of the conference call until January 22, 2025. Replay information will also be available on First Bank’s website at www.firstbanknj.com under the “About Us” tab. Click on “Investor Relations” to access the replay of the conference call.

About First Bank

First Bank is a New Jersey state-chartered bank with 26 full-service branches in Cinnaminson, Delanco, Denville, Ewing, Fairfield, Flemington (2), Hamilton, Lawrence, Monroe, Morristown, Pennington, Randolph, Somerset and Williamstown, New Jersey; and Coventry, Devon, Doylestown, Glenn Mills, Lionville, Malvern, Paoli, Trevose, Warminster and West Chester, Pennsylvania; and Palm Beach, Florida. With $3.76 billion in assets as of September 30, 2024, First Bank offers a full range of deposit and loan products to individuals and businesses throughout the New York City to Philadelphia corridor. First Bank’s common stock is listed on the Nasdaq Global Market under the symbol “FRBA.”

Forward Looking Statements

This press release contains certain forward-looking statements, either express or implied, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding First Bank’s future financial performance, business and growth strategy, projected plans and objectives, and related transactions, integration of acquired businesses, ability to recognize anticipated operational efficiencies, and other projections based on macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact economic trends, and any such variations may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions, current expectations, estimates and projections about First Bank, any of which may change over time and some of which may be beyond First Bank’s control. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. Further, certain factors that could affect our future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: changes in market interest rates on funding costs, yield on interest earning assets, credit quality and strength of underlying collateral and the effect of such changes on the market value of First Bank’s investment securities portfolio; whether First Bank can: successfully implement its growth strategy, including identifying acquisition targets and consummating suitable acquisitions, integrate acquired entities and realize anticipated efficiencies, sustain its internal growth rate, and provide competitive products and services that appeal to its customers and target markets; difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the market areas in which First Bank operates and in which its loans are concentrated, including the effects of declines in housing market values; the effects of the recent turmoil in the banking industry (including the failures of two financial institutions in early 2023); the impact of public health emergencies, such as COVID-19, on First Bank, its operations and its customers and employees; an increase in unemployment levels and slowdowns in economic growth; First Bank’s level of nonperforming assets and the costs associated with resolving any problem loans including litigation and other costs; the extensive federal and state regulation, supervision and examination governing almost every aspect of First Bank’s operations, including changes in regulations affecting financial institutions and expenses associated with complying with such regulations; uncertainties in tax estimates and valuations, including due to changes in state and federal tax law; First Bank’s ability to comply with applicable capital and liquidity requirements, including First Bank’s ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets; and possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies, and similar organizations. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Forward-Looking Statements” and “Risk Factors” in First Bank’s Annual Report on Form 10-K and any updates to those risk factors set forth in First Bank’s proxy statement, subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if First Bank’s underlying assumptions prove to be incorrect, actual results may differ materially from what First Bank anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and First Bank does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. All forward-looking statements, expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that First Bank or persons acting on First Bank’s behalf may issue.

_____________

ⁱ Return on average tangible equity is a non-U.S. GAAP financial measure and is calculated by dividing net income by average tangible equity (average equity minus average goodwill and other intangible assets). For a reconciliation of this non-U.S. GAAP financial measure, along with the other non-U.S. GAAP financial measures in this press release, to their comparable U.S. GAAP measures, see the financial reconciliations at the end of this press release.

ⁱⁱ Tangible book value per share is a non-U.S. GAAP financial measure and is calculated by dividing common shares outstanding by tangible equity (equity minus goodwill and other intangible assets). For a reconciliation of this non-U.S. GAAP financial measure, along with the other non-U.S. GAAP financial measures in this press release, to their comparable U.S. GAAP measures, see the financial reconciliations at the end of this press release.

ⁱⁱⁱ The efficiency ratio is a non-U.S. GAAP financial measure and is calculated by dividing non-interest expense less merger-related expenses by adjusted total revenue (net interest income plus non-interest income). For a reconciliation of this non-U.S. GAAP financial measure, along with the other non-U.S. GAAP financial measures in this press release, to their comparable U.S. GAAP measures, see the financial reconciliations at the end of this press release.

^iv Tangible stockholders’ equity to tangible assets ratio is a non-U.S. GAAP financial measure and is calculated by dividing tangible equity (equity minus goodwill and other intangible assets) by tangible assets (total assets minus goodwill and other intangible assets). For a reconciliation of this non-U.S. GAAP financial measure, along with the other non-U.S. GAAP financial measures in this press release, to their comparable U.S. GAAP measures, see the financial reconciliations at the end of this press release.

FIRST BANK
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(in thousands, except for share data, unaudited)

	September 30, 2024			December 31, 2023
Assets
Cash and due from banks	$	35,456		$	25,652
Restricted cash		9,200			13,770
Interest bearing deposits with banks		267,643			188,529
Cash and cash equivalents		312,299			227,951
Interest bearing time deposits with banks		743			996
Investment securities available for sale, at fair value		74,549			94,142
Investment securities held to maturity, net of allowance for credit losses of $206 at September 30, 2024 and $200 at December 31, 2023 (fair value of $39,049 and $38,486 at September 30, 2024 and December 31, 2023, respectively)		43,659			44,059
Equity securities, at fair value		1,860			1,888
Restricted investment in bank stocks		13,845			10,469
Other investments		11,141			9,841
Loans, net of deferred fees and costs		3,087,488			3,021,501
Less: Allowance for credit losses		(37,434	)		(42,397	)
Net loans		3,050,054			2,979,104
Premises and equipment, net		20,331			21,627
Other real estate owned, net		5,637			–
Accrued interest receivable		13,502			14,763
Bank-owned life insurance		84,727			86,435
Goodwill		44,166			44,166
Other intangible assets, net		9,318			10,812
Deferred income taxes, net		31,448			30,875
Other assets		40,374			32,199
Total assets	$	3,757,653		$	3,609,327

Liabilities and Stockholders’ Equity
Liabilities:
Non-interest bearing deposits	$	519,079		$	501,763
Interest bearing deposits		2,530,991			2,465,806
Total deposits		3,050,070			2,967,569
Borrowings		236,999			179,140
Subordinated debentures		29,926			55,261
Accrued interest payable		5,078			2,813
Other liabilities		33,510			33,644
Total liabilities		3,355,583			3,238,427
Stockholders’ Equity:
Preferred stock, par value $2 per share; 10,000,000 shares authorized; no shares issued and outstanding		–			–
Common stock, par value $5 per share; 40,000,000 shares authorized; 27,367,984 shares issued and 25,186,920 shares outstanding at September 30, 2024 and 27,149,186 shares issued and 24,968,122 shares outstanding at December 31, 2023		135,415			134,552
Additional paid-in capital		124,014			122,881
Retained earnings		167,792			140,563
Accumulated other comprehensive loss		(3,773	)		(5,718	)
Treasury stock, 2,181,064 shares at September 30, 2024 and December 31, 2023		(21,378	)		(21,378	)
Total stockholders’ equity		402,070			370,900
Total liabilities and stockholders’ equity	$	3,757,653		$	3,609,327

FIRST BANK
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands, except for share data, unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
Interest and Dividend Income
Investment securities—taxable	$	1,201		$	1,151		$	3,661		$	3,128
Investment securities—tax-exempt		35			86			109			158
Interest bearing deposits with banks, Federal funds sold and other		3,972			2,593			10,479			6,029
Loans, including fees		50,957			46,088			151,039			111,536
Total interest and dividend income		56,165			49,918			165,288			120,851

Interest Expense
Deposits		23,081			18,470			66,253			40,574
Borrowings		2,550			1,914			6,859			4,939
Subordinated debentures		440			940			1,224			1,821
Total interest expense		26,071			21,324			74,336			47,334
Net interest income		30,094			28,594			90,952			73,517
Credit loss expense		1,579			6,650			944			8,237
Net interest income after credit loss expense		28,515			21,944			90,008			65,280

Non-Interest Income
Service fees on deposit accounts		362			280			1,056			741
Loan fees		218			152			437			259
Income from bank-owned life insurance		1,819			544			3,213			1,291
Losses on sale of investment securities, net		(555	)		(527	)		(555	)		(734	)
Gains (losses) on sale of loans, net		135			(704	)		(536	)		(393	)
Gains on recovery of acquired loans		35			24			209			95
Other non-interest income		465			424			1,308			1,026
Total non-interest income		2,479			193			5,132			2,285

Non-Interest Expense
Salaries and employee benefits		10,175			9,326			30,181			25,320
Occupancy and equipment		2,080			1,915			6,188			5,107
Legal fees		245			270			801			671
Other professional fees		943			631			2,628			1,880
Regulatory fees		728			595			1,970			1,345
Directors’ fees		272			224			784			631
Data processing		800			907			2,355			2,206
Marketing and advertising		310			220			983			693
Travel and entertainment		233			140			762			519
Insurance		245			272			740			624
Other real estate owned expense, net		662			–			879			38
Merger-related expenses		–			7,028			–			7,710
Other expense		1,951			1,958			6,136			4,020
Total non-interest expense		18,644			23,486			54,407			50,764
Income Before Income Taxes		12,350			(1,349	)		40,733			16,801
Income tax expense		4,188			(78	)		8,986			4,284
Net Income (loss)	$	8,162		$	(1,271	)	$	31,747		$	12,517

Basic earnings (loss) per common share	$	0.32		$	(0.05	)	$	1.26		$	0.60
Diluted earnings (loss) per common share	$	0.32		$	(0.05	)	$	1.26		$	0.59

Basic weighted average common shares outstanding		25,172,927			23,902,478			25,114,685			20,928,847
Diluted weighted average common shares outstanding		25,342,462			23,902,478			25,265,250			21,057,655

FIRST BANK
AVERAGE BALANCE SHEETS WITH INTEREST AND AVERAGE RATES
(dollars in thousands, unaudited)

	Three Months Ended September 30,
	2024								2023
	Average						Average		Average						Average
	Balance			Interest			Rate⁽⁵⁾		Balance			Interest			Rate⁽⁵⁾
Interest earning assets
Investment securities ^{(1) (2)}	$	137,216		$	1,244		3.61	%	$	169,244		$	1,255			2.94	%
Loans ⁽³⁾		3,010,116			50,957		6.73	%		3,003,703			46,088			6.09	%
Interest bearing deposits with banks,
Federal funds sold and other		265,474			3,593		5.38	%		182,128			2,395			5.22	%
Restricted investment in bank stocks		12,768			257		8.01	%		10,284			196			7.56	%
Other investments		12,776			122		3.80	%		9,162			2			0.09	%
Total interest earning assets ⁽²⁾		3,438,350			56,173		6.50	%		3,374,521			49,936			5.87	%
Allowance for credit losses		(36,612	)							(41,216	)
Non-interest earning assets		271,105								232,045
Total assets	$	3,672,843							$	3,565,350

Interest bearing liabilities
Interest bearing demand deposits	$	587,045		$	3,974		2.69	%	$	674,417		$	4,038			2.38	%
Money market deposits		1,064,045			10,573		3.95	%		952,042			8,386			3.49	%
Savings deposits		149,057			563		1.50	%		174,412			490			1.11	%
Time deposits		690,723			7,902		4.55	%		655,288			5,556			3.36	%
Total interest bearing deposits		2,490,870			23,012		3.68	%		2,456,159			18,470			2.98	%
Borrowings		206,588			2,550		4.91	%		163,746			1,914			4.64	%
Subordinated debentures		29,908			440		5.88	%		51,101			940			7.36	%
Total interest bearing liabilities		2,727,366			26,002		3.79	%		2,671,006			21,324			3.17	%
Non-interest bearing deposits		506,084								507,866
Other liabilities		40,858								33,106
Stockholders’ equity		398,535								353,372
Total liabilities and stockholders’ equity	$	3,672,843							$	3,565,350
Net interest income/interest rate spread ⁽²⁾					30,171		2.71	%					28,612			2.70	%
Net interest margin ^{(2) (4)}							3.49	%								3.36	%
Tax equivalent adjustment ⁽²⁾					(8	)							(18	)
Net interest income				$	30,163							$	28,594

(1) Average balance of investment securities available for sale is based on amortized cost.
(2) Interest and average rates are presented on a tax equivalent basis using a federal income tax rate of 21%.
(3) Average balances of loans include loans on nonaccrual status.
(4) Net interest income divided by average total interest earning assets.
(5) Annualized.

FIRST BANK
AVERAGE BALANCE SHEETS WITH INTEREST AND AVERAGE RATES
(dollars in thousands, unaudited)

	Nine Months Ended September 30,
	2024								2023
	Average						Average		Average						Average
	Balance			Interest			Rate⁽⁵⁾		Balance			Interest			Rate⁽⁵⁾
Interest earning assets
Investment securities ^{(1) (2)}	$	143,528		$	3,793		3.53	%	$	155,128		$	3,319		2.86	%
Loans ⁽³⁾		2,995,895			151,039		6.73	%		2,590,409			111,536		5.76	%
Interest bearing deposits with banks,
Federal funds sold and other		231,171			9,404		5.43	%		143,922			5,403		5.02	%
Restricted investment in bank stocks		11,461			699		8.15	%		9,327			454		6.51	%
Other investments		12,262			376		4.10	%		8,902			172		2.58	%
Total interest earning assets ⁽²⁾		3,394,317			165,311		6.51	%		2,907,688			120,884		5.56	%
Allowance for credit losses		(37,000	)							(33,664	)
Non-interest earning assets		265,368								174,246
Total assets	$	3,622,685							$	3,048,270

Interest bearing liabilities
Interest bearing demand deposits	$	599,025		$	11,453		2.55	%	$	445,318		$	6,492		1.95	%
Money market deposits		1,046,911			30,921		3.95	%		840,688			20,177		3.21	%
Savings deposits		156,416			1,756		1.50	%		155,370			1,202		1.03	%
Time deposits		680,194			22,054		4.33	%		586,827			12,703		2.89	%
Total interest bearing deposits		2,482,546			66,184		3.56	%		2,028,203			40,574		2.67	%
Borrowings		181,844			6,859		5.04	%		149,042			4,939		4.43	%
Subordinated debentures		34,071			1,224		4.79	%		36,949			1,821		6.57	%
Total interest bearing liabilities		2,698,461			74,267		3.68	%		2,214,194			47,334		2.86	%
Non-interest bearing deposits		494,971								490,211
Other liabilities		41,971								29,939
Stockholders’ equity		387,282								313,926
Total liabilities and stockholders’ equity	$	3,622,685							$	3,048,270
Net interest income/interest rate spread ⁽²⁾					91,044		2.83	%					73,550		2.70	%
Net interest margin ^{(2) (4)}							3.58	%							3.38	%
Tax equivalent adjustment ⁽²⁾					(23	)							(33	)
Net interest income				$	91,021							$	73,517

(1) Average balance of investment securities available for sale is based on amortized cost.
(2) Interest and average rates are presented on a tax equivalent basis using a federal income tax rate of 21%.
(3) Average balances of loans include loans on nonaccrual status.
(4) Net interest income divided by average total interest earning assets.
(5) Annualized.

FIRST BANK
QUARTERLY FINANCIAL HIGHLIGHTS
(in thousands, except for share and employee data, unaudited)

	As of or For the Quarter Ended
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
EARNINGS
Net interest income	$	30,094		$	30,540		$	30,318		$	30,999		$	28,594
Credit loss (benefit) expense		1,579			63			(698	)		(294	)		6,650
Non-interest income		2,479			689			1,964			(3,000	)		193
Non-interest expense		18,644			17,953			17,810			17,936			23,486
Income tax expense		4,188			2,140			2,658			1,977			(78	)
Net income		8,162			11,073			12,512			8,380			(1,271	)

PERFORMANCE RATIOS
Return on average assets ⁽¹⁾		0.88	%		1.23	%		1.41	%		0.93	%		(0.14	%)
Adjusted return on average assets ^{(1) (2)}		0.93	%		1.31	%		1.39	%		1.38	%		1.07	%
Return on average equity ⁽¹⁾		8.15	%		11.52	%		13.36	%		9.06	%		(1.43	%)
Adjusted return on average equity ^{(1) (2)}		8.56	%		12.26	%		13.17	%		13.38	%		10.75	%
Return on average tangible equity ^{(1) (2)}		9.42	%		13.40	%		15.64	%		10.67	%		(1.66	%)
Adjusted return on average tangible equity ^{(1) (2)}		9.89	%		14.26	%		15.41	%		15.75	%		12.50	%
Net interest margin ^{(1) (3)}		3.49	%		3.62	%		3.64	%		3.68	%		3.36	%
Yield on loans ⁽¹⁾		6.73	%		6.81	%		6.66	%		6.49	%		6.09	%
Total cost of deposits ⁽¹⁾		3.05	%		3.01	%		2.83	%		2.63	%		2.47	%
Efficiency ratio ⁽²⁾		58.49	%		55.88	%		55.56	%		53.79	%		54.83	%

SHARE DATA
Common shares outstanding		25,186,920			25,144,983			25,096,449			24,968,122			24,926,919
Basic earnings per share	$	0.32		$	0.44		$	0.50		$	0.34		$	(0.05	)
Diluted earnings per share		0.32			0.44			0.50			0.33			(0.05	)
Adjusted diluted earnings per share ⁽²⁾		0.34			0.47			0.49			0.49			0.40
Book value per share		15.96			15.61			15.23			14.85			14.48
Tangible book value per share ⁽²⁾		13.84			13.46			13.06			12.65			12.26

MARKET DATA
Market value per share	$	15.20		$	12.74		$	13.74		$	14.70		$	10.78
Market value / Tangible book value		109.83	%		94.65	%		105.20	%		116.18	%		87.96	%
Market capitalization	$	382,841		$	320,347		$	344,825		$	367,031		$	268,712

CAPITAL & LIQUIDITY
Stockholders’ equity / assets		10.70	%		10.86	%		10.64	%		10.28	%		10.15	%
Tangible stockholders’ equity / tangible assets ⁽²⁾		9.41	%		9.50	%		9.27	%		8.89	%		8.72	%
Loans / deposits		101.23	%		101.02	%		100.75	%		101.82	%		101.80	%

ASSET QUALITY
Net charge-offs	$	386		$	175		$	5,293		$	209		$	1,122
Net charge-offs (recoveries), excluding PCD loan charge-off ⁽⁴⁾		386			175			(201	)		209			1,122
Nonperforming loans		12,014			14,227			17,054			24,989			24,158
Nonperforming assets		17,651			20,226			23,053			24,989			24,158
Net charge offs / average loans ⁽¹⁾		0.05	%		0.02	%		0.72	%		0.03	%		0.15	%
Net charge offs (recoveries), excluding PCD loan charge-off / average loans ^{(1) (4)}		0.05	%		0.02	%		(0.03	%)		0.03	%		0.15	%
Nonperforming loans / total loans		0.39	%		0.47	%		0.57	%		0.83	%		0.80	%
Nonperforming assets / total assets		0.47	%		0.56	%		0.64	%		0.69	%		0.68	%
Allowance for credit losses on loans / total loans		1.21	%		1.21	%		1.22	%		1.40	%		1.42	%
Allowance for credit losses on loans / nonperforming loans		311.59	%		254.81	%		213.42	%		169.66	%		177.50	%

OTHER DATA
Total assets	$	3,757,653		$	3,615,731		$	3,591,398		$	3,609,327		$	3,558,426
Total loans		3,087,488			2,998,029			2,992,423			3,021,501			3,020,778
Total deposits		3,050,070			2,967,634			2,970,262			2,967,569			2,967,455
Total stockholders’ equity		402,070			392,489			382,254			370,900			361,037
Number of full-time equivalent employees		313			294			288			286			286

(1) Annualized.
(2) Non-U.S. GAAP financial measure that we believe provides management and investors with information that is useful in understanding our financial performance and condition. See accompanying table, “Non-U.S. GAAP Financial Measures,” for calculation and reconciliation.
(3) Tax equivalent using a federal income tax rate of 21%.
(4) Excludes $5.5 million in a PCD loan charge-off in first quarter of 2024, which was reserved for through purchase accounting marks at the time of the Malvern acquisition.

FIRST BANK
QUARTERLY FINANCIAL HIGHLIGHTS
(dollars in thousands, unaudited)

	As of the Quarter Ended
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
LOAN COMPOSITION
Commercial and industrial	$	546,541		$	530,996		$	508,911		$	506,849		$	478,120
Commercial real estate:
Owner-occupied		688,988			647,625			625,643			612,352			607,888
Investor		1,170,508			1,143,954			1,172,311			1,221,702			1,269,134
Construction and development		193,460			190,108			184,816			186,829			168,192
Multi-family		267,861			270,238			279,668			271,058			275,825
Total commercial real estate		2,320,817			2,251,925			2,262,438			2,291,941			2,321,039
Residential real estate:
Residential mortgage and first lien home equity loans		143,953			144,978			154,704			156,024			158,487
Home equity–second lien loans and revolving lines of credit		49,891			46,882			45,869			44,698			46,239
Total residential real estate		193,844			191,860			200,573			200,722			204,726
Consumer and other		29,518			26,321			23,702			25,343			20,208
Total loans prior to deferred loan fees and costs		3,090,720			3,001,102			2,995,624			3,024,855			3,024,093
Net deferred loan fees and costs		(3,232	)		(3,073	)		(3,201	)		(3,354	)		(3,315	)
Total loans	$	3,087,488		$	2,998,029		$	2,992,423		$	3,021,501		$	3,020,778

LOAN MIX
Commercial and industrial		17.7	%		17.7	%		17.0	%		16.8	%		15.8	%
Commercial real estate:
Owner-occupied		22.3	%		21.6	%		20.9	%		20.3	%		20.1	%
Investor		37.9	%		38.2	%		39.2	%		40.4	%		42.0	%
Construction and development		6.3	%		6.3	%		6.2	%		6.2	%		5.6	%
Multi-family		8.7	%		9.0	%		9.3	%		9.0	%		9.1	%
Total commercial real estate		75.2	%		75.1	%		75.6	%		75.9	%		76.8	%
Residential real estate:
Residential mortgage and first lien home equity loans		4.7	%		4.8	%		5.2	%		5.1	%		5.3	%
Home equity–second lien loans and revolving lines of credit		1.6	%		1.6	%		1.5	%		1.5	%		1.5	%
Total residential real estate		6.3	%		6.4	%		6.7	%		6.6	%		6.8	%
Consumer and other		0.9	%		0.9	%		0.8	%		0.8	%		0.7	%
Net deferred loan fees and costs		(0.1	%)		(0.1	%)		(0.1	%)		(0.1	%)		(0.1	%)
Total loans		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

FIRST BANK
QUARTERLY FINANCIAL HIGHLIGHTS
(dollars in thousands, unaudited)

	As of the Quarter Ended
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
DEPOSIT COMPOSITION
Non-interest bearing demand deposits	$	519,079		$	499,765		$	470,749		$	501,763		$	493,703
Interest bearing demand deposits		597,802			574,515			580,864			629,110			623,338
Money market and savings deposits		1,235,637			1,199,382			1,219,634			1,171,440			1,228,832
Time deposits		697,552			693,972			699,015			665,256			621,582
Total Deposits	$	3,050,070		$	2,967,634		$	2,970,262		$	2,967,569		$	2,967,455

DEPOSIT MIX
Non-interest bearing demand deposits		17.0	%		16.8	%		15.8	%		16.9	%		16.6	%
Interest bearing demand deposits		19.6	%		19.4	%		19.6	%		21.2	%		21.0	%
Money market and savings deposits		40.5	%		40.4	%		41.1	%		39.5	%		41.4	%
Time deposits		22.9	%		23.4	%		23.5	%		22.4	%		21.0	%
Total Deposits		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

FIRST BANK
NON-U.S. GAAP FINANCIAL MEASURES
(in thousands, except for share data, unaudited)

	As of or For the Quarter Ended
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
Return on Average Tangible Equity
Net income (numerator)	$	8,162		$	11,073		$	12,512		$	8,380		$	(1,271	)

Average stockholders’ equity	$	398,535		$	386,644		$	376,542		$	366,950		$	353,372
Less: Average Goodwill and other intangible assets, net		53,823			54,347			54,790			55,324			49,491
Average Tangible stockholders’ equity (denominator)	$	344,712		$	332,297		$	321,752		$	311,626		$	303,881

Return on Average Tangible equity (1)		9.42	%		13.40	%		15.64	%		10.67	%		-1.66	%

Tangible Book Value Per Share
Stockholders’ equity	$	402,070		$	392,489		$	382,254		$	370,900		$	361,037
Less: Goodwill and other intangible assets, net		53,484			54,026			54,483			54,978			55,554
Tangible stockholders’ equity (numerator)	$	348,586		$	338,463		$	327,771		$	315,922		$	305,483

Common shares outstanding (denominator)		25,186,920			25,144,983			25,096,449			24,968,122			24,926,919

Tangible book value per share	$	13.84		$	13.46		$	13.06		$	12.65		$	12.26

Tangible Equity / Tangible Assets
Stockholders’ equity	$	402,070		$	392,489		$	382,254		$	370,900		$	361,037
Less: Goodwill and other intangible assets, net		53,484			54,026			54,483			54,978			55,554
Tangible stockholders’ equity (numerator)	$	348,586		$	338,463		$	327,771		$	315,922		$	305,483

Total assets	$	3,757,653		$	3,615,731		$	3,591,398		$	3,609,327		$	3,558,426
Less: Goodwill and other intangible assets, net		53,484			54,026			54,483			54,978			55,554
Tangible total assets (denominator)	$	3,704,169		$	3,561,705		$	3,536,915		$	3,554,349		$	3,502,872

Tangible stockholders’ equity / tangible assets		9.41	%		9.50	%		9.27	%		8.89	%		8.72	%

Efficiency Ratio
Non-interest expense	$	18,644		$	17,953		$	17,810		$	17,936		$	23,486
Less: Merger-related expenses		–			–			–			338			7,028
Adjusted non-interest expense (numerator)	$	18,644		$	17,953		$	17,810		$	17,598		$	16,458

Net interest income	$	30,094		$	30,540		$	30,318		$	30,999		$	28,594
Non-interest income		2,479			689			1,964			(3,000	)		193
Total revenue		32,573			31,229			32,282			27,999			28,787
Add: Losses on sale of investment securities, net		555			–			–			916			527
(Subtract) Add: (Gains) losses on sale of loans, net		(135	)		900			(229	)		3,799			704
Less: Bank Owned Life Insurance Enhancement		(1,116	)		–			–			–			–
Adjusted total revenue (denominator)	$	31,877		$	32,129		$	32,053		$	32,714		$	30,018

Efficiency ratio		58.49	%		55.88	%		55.56	%		53.79	%		54.83	%

(1) Annualized.

FIRST BANK
NON-U.S. GAAP FINANCIAL MEASURES
(dollars in thousands, except for share data, unaudited)

	For the Quarter Ended
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023

Adjusted diluted earnings per share,
Adjusted return on average assets, and
Adjusted return on average equity

Net income	$	8,162		$	11,073		$	12,512		$	8,380		$	(1,271	)
Add: Merger-related expenses⁽¹⁾		–			–			–			267			5,552
Add: Credit loss expense on acquired loan portfolio⁽¹⁾		–			–			–			–			4,323
Add (subtract): Losses (gains) on sale of loans, net⁽¹⁾		(107	)		711			(181	)		3,001			556
Add: Losses on sale of investment securities, net⁽¹⁾		438			–			–			724			416
Add: Net Impact of Bank Owned Life Insurance Restructuring⁽²⁾		79			–			–			–			–
Adjusted net income	$	8,572		$	11,784		$	12,331		$	12,372		$	9,576

Diluted weighted average common shares outstanding		25,342,462			25,258,785			25,199,381			25,089,495			24,029,910
Average assets	$	3,672,843		$	3,618,912		$	3,575,748		$	3,561,261		$	3,565,350
Average equity	$	398,535		$	386,644		$	376,542		$	366,950		$	353,372
Average Tangible Equity	$	344,712		$	332,297		$	321,752		$	311,626		$	303,881

Adjusted diluted earnings per share	$	0.34		$	0.47		$	0.49		$	0.49		$	0.40
Adjusted return on average assets⁽³⁾		0.93	%		1.31	%		1.39	%		1.38	%		1.07	%
Adjusted return on average equity⁽³⁾		8.56	%		12.26	%		13.17	%		13.38	%		10.75	%
Adjusted return on average tangible equity⁽³⁾		9.89	%		14.26	%		15.41	%		15.75	%		12.50	%

(1) Items are tax-effected using a federal income tax rate of 21%.
(2) Includes the net impact of the new Bank Owned Life Insurance enhancement and the increased tax expense on the terminated policies.
(3) Annualized.

The MIL Network –

January 25, 2025

MIL-OSI: CVB Financial Corp. Reports Earnings for the Third Quarter 2024

Source: GlobeNewswire (MIL-OSI)

Third Quarter 2024

Net Earnings of $51 million, or $0.37 per share
Return on Average Assets of 1.23%
Return on Average Tangible Common Equity of 14.93%
Net Interest Margin of 3.05%

Ontario, CA, Oct. 23, 2024 (GLOBE NEWSWIRE) — CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business Bank (the “Company”), announced earnings for the quarter ended September 30, 2024.

CVB Financial Corp. reported net income of $51.2 million for the quarter ended September 30, 2024, compared with $50.0 million for the second quarter of 2024 and $57.9 million for the third quarter of 2023. Diluted earnings per share were $0.37 for the third quarter, compared to $0.36 for the prior quarter and $0.42 for the same period last year. Net income of $51.2 million for the third quarter of 2024 produced an annualized return on average equity (“ROAE”) of 9.40%, an annualized return on average tangible common equity (“ROATCE”) of 14.93%, and an annualized return on average assets (“ROAA”) of 1.23%.

David Brager, President and Chief Executive Officer of Citizens Business Bank, commented, “We are pleased with our third quarter results. The Bank continues to execute on our strategy of banking the best small to medium sized businesses in the markets we serve. The results in the third quarter represent our 190^th consecutive quarter of profitability. I am very proud of the commitment of our associates to our mission and the loyalty of our customers to our shared vision of success.“

Highlights for the Third Quarter of 2024

Net interest margin of 3.05%
Efficiency Ratio of 46.5%
TCE Ratio = 9.7% & CET1 Ratio > 15%
Net income grew by 2.4%, compared to the second quarter of 2024
Deposits and customer repurchase agreements increased $408 million compared to the end of the second quarter of 2024
Noninterest-bearing deposits were 59% of total deposits
Early redemption of $1.3 billion of Bank Term Funding Program borrowings
Sold $312 million in AFS securities for a loss of $11.6 million
Executed the sale and leaseback of two buildings generating gains of $9.1 million
Loans declined by $109 million, or 1.3% from the end of the second quarter of 2024
Net recoveries were $156,000 for the third quarter of 2024

INCOME STATEMENT HIGHLIGHTS

	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
	(Dollars in thousands, except per share amounts)
Net interest income	$	113,619		$	110,849		$	123,371		$	336,929		$	368,634
Recapure of (provision for) credit losses		–			–			(2,000	)		–			(4,000	)
Noninterest income		12,834			14,424			14,309			41,371			40,167
Noninterest expense		(58,835	)		(56,497	)		(55,058	)		(175,103	)		(163,956	)
Income taxes		(16,394	)		(18,741	)		(22,735	)		(53,339	)		(67,918	)
Net earnings	$	51,224		$	50,035		$	57,887		$	149,858		$	172,927
Earnings per common share:
Basic	$	0.37		$	0.36		$	0.42		$	1.07		$	1.24
Diluted	$	0.37		$	0.36		$	0.42		$	1.07		$	1.24

NIM		3.05	%		3.05	%		3.31	%		3.06	%		3.32	%
ROAA		1.23	%		1.24	%		1.40	%		1.23	%		1.41	%
ROAE		9.40	%		9.57	%		11.33	%		9.43	%		11.50	%
ROATCE		14.93	%		15.51	%		18.82	%		15.19	%		19.24	%
Efficiency ratio		46.53	%		45.10	%		39.99	%		46.29	%		40.11	%

Net Interest Income
Net interest income was $113.6 million for the third quarter of 2024. This represented a $2.8 million, or 2.50%, increase from the second quarter of 2024, and a $9.8 million, or 7.90%, decrease from the third quarter of 2023. The quarter-over-quarter increase in net interest income was primarily due to a $7.0 million increase in interest income resulting from a $513 million average increase in our interest-earning balances due from the Federal Reserve, partially offset by a $3.8 million increase in interest on deposits. The decline in net interest income compared to the third quarter of 2023 was primarily due to a 26 basis point decline in net interest margin.

Net Interest Margin
Our tax equivalent net interest margin was 3.05% for both the second and third quarters of 2024, compared to 3.31% for the third quarter of 2023. Our cost of funds compared to the second quarter of 2024 increased nine basis points, which was offset by a six basis point increase in our interest-earning asset yield. The six basis point increase in our interest-earning asset yield was due to a five basis point increase in loan yields and funds on deposit at the Federal Reserve increasing as a percentage of earnings assets to 8.2%, from 4.8% in the prior quarter. Average funds held at the Federal Reserve of $1.22 billion, grew by $513 million from the second quarter of 2024, earning 5.4% on average for the third quarter. Our cost of funds increased in the third quarter to 1.47%, as our cost of deposits and customer repurchase agreements increased by 14 basis points to 1.01%. The cost of interest-bearing non-maturity deposits increased from the prior quarter by 22 basis points. On average, borrowings decreased by $121 million compared to the second quarter, while continuing to have an average cost of 4.77%. The 26 basis point decrease in net interest margin compared to the third quarter of 2023, was primarily the result of a 55 basis point increase in cost of funds. This increase in cost of funds from the prior year quarter was the result of a 46 basis point increase in the cost of deposits and an increase in the level of borrowings, which grew on average by $411 million. A 25 basis point increase in earning asset yields over the prior year quarter partially offset the increase in funding costs. The higher earning asset yields, included higher loan yields, which grew from 5.07% for the third quarter of 2023 to 5.31% for the third quarter of 2024. The higher earning asset yield was also the result of the increase in average funds held at the Federal Reserve, which grew from 3.1% of earning assets in the third quarter of 2023 to 8.2% in the third quarter of 2024.

Earning Assets and Deposits
On average, total earning assets grew by $262 million, or 1.79%, quarter-over-quarter. This growth includes the $513 million increase in average funds on deposit at the Federal Reserve. Investment securities and loans declined on average by $126.9 million and $126.3 million, respectively, when compared to the second quarter of 2024. The decline in investment securities includes the impact of selling approximately $300 million of AFS securities during the third quarter. Compared to the third quarter of 2023, the mix of assets changed modestly, with the average balance of investment securities decreasing by $462.6 million, declining from 37% to 34% of total earning assets. Conversely, the average amount of funds held at the Federal Reserve increased by $748.8 million, growing from 3.1% of total earning assets in the third quarter of 2023 to 8.2% for the third quarter of 2024. Noninterest-bearing deposits declined on average by $28.4 million, or 0.40%, from the second quarter of 2024 and interest-bearing deposits and customer repurchase agreements increased on average by $279.2 million. Compared to the third quarter of 2023, total deposits and customer repurchase agreements declined on average by $503.7 million, or 3.90%, including a decline of $688 million, or 8.8%, in noninterest-bearing deposits. Non-maturity interest-bearing deposits and customer repurchase agreements decreased by $247.5 million on average, while time deposits grew on average by $431.9 million. On average, noninterest-bearing deposits were 59.10% of total deposits during the most recent quarter, compared to 60.20% for the second quarter of 2024 and 62.09% for the third quarter of 2023.

		Three Months Ended
SELECTED FINANCIAL HIGHLIGHTS		September 30, 2024				June 30, 2024				September 30, 2023
		(Dollars in thousands)
Yield on average investment securities (TE)			2.67		%		2.71		%		2.64		%
Yield on average loans			5.31		%		5.26		%		5.07		%
Yield on average earning assets (TE)			4.43		%		4.37		%		4.18		%
Cost of deposits			0.98		%		0.88		%		0.52		%
Cost of funds			1.47		%		1.38		%		0.92		%
Net interest margin (TE)			3.05		%		3.05		%		3.31		%

Average Earning Asset Mix		Avg		% of Total		Avg		% of Total		Avg		% of Total
	Total investment securities	$	5,080,033	34.01	%	$	5,206,959	35.49	%	$	5,542,590	37.20	%
	Interest-earning deposits with other institutions		1,232,551	8.25	%		716,916	4.89	%		473,391	3.18	%
	Loans		8,605,270	57.61	%		8,731,587	59.51	%		8,862,462	59.48	%
	Total interest-earning assets		14,935,866				14,673,474				14,900,003

Provision for Credit Losses
There was no provision for credit losses in the third and second quarter of 2024, compared to $2.0 million in provision in the third quarter of 2023. Net recoveries for the third quarter of 2024 were $156,000, compared to net charge-offs $31,000 in the prior quarter. Allowance for credit losses represented 0.97% of gross loans at September 30, 2024, compared to 0.95% at June 30, 2024.

Noninterest Income
Noninterest income was $12.8 million for the third quarter of 2024, compared with $14.4 million for the second quarter of 2024 and $14.3 million for the third quarter of 2023. During the third quarter of 2024, the Bank executed sale-leaseback transactions with the sale of two buildings, which operate as Banking Centers, and were simultaneously leased back, resulting in a pre-tax net gain of $9.1 million. The gains on selling the buildings were offset by realizing a pre-tax net loss of $11.6 million on the sale of $312 million of AFS securities. Third quarter income from Bank Owned Life Insurance (“BOLI”) increased by $557,000 from the second quarter of 2024 and increased by $2 million compared to the third quarter of 2023. We experienced $320,000 in death benefits that exceeded the asset value on certain policies in the third quarter of 2024, compared to no death benefits in the second quarter of 2024 and no death benefits in the third quarter of 2023. The year-over-year increase of $2 million in BOLI income was primarily due to the restructuring and enhancements in BOLI policies during the fourth quarter of 2023. Trust and investment service fees grew by 4.0% or $137,000 compared to the prior quarter and by 9.8% or $319,000 compared to the third quarter of 2023.

Noninterest Expense
Noninterest expense for the third quarter of 2024 was $58.8 million, compared to $56.5 million for the second quarter of 2024 and $55.0 million for the third quarter of 2023. The $2.3 million quarter-over-quarter increase included a $1.2 million increase in staff related expense, as annual salary increases took effect in July. The $690,000 quarter-over-quarter increase in regulatory assessments was due to the $700,000 accrual adjustment in the second quarter of 2024 related the FDIC special assessment. There was a $750,000 recapture of provision for unfunded loan commitments in the third quarter of 2024, compared to a $500,000 recapture of provision in the second quarter of 2024 and $900,000 recaptured in the third quarter of 2023. Occupancy and equipment expense grew by $432,000 or 7%, compared to the prior quarter, including the impact of the two buildings that were sold and leased back during the third quarter.

The $3.8 million increase in noninterest expense year-over-year included increased staff related expenses of $1.9 million, or 5.48%. Professional services increased $738,000, including a $627,000 increase in legal expense year-over-year. Occupancy and equipment expense increased by $586,000, or 10.43% and software expense increased $258,000, or 7% year-over-year. As a percentage of average assets, noninterest expense was 1.42% for the third quarter of 2024, compared to 1.40% for the second quarter of 2024 and 1.33% for the third quarter of 2023. The efficiency ratio for the third quarter of 2024 was 46.53%, compared to 45.10% for the second quarter of 2024 and 39.99% for the third quarter of 2023.

Income Taxes
Our effective tax rate for the nine months ended September 30, 2024 was 26.25%, compared with 28.20% for the same period of 2023. Our estimated annual effective tax rate can vary depending upon the level of tax-advantaged income from municipal securities and BOLI, as well as available tax credits.

BALANCE SHEET HIGHLIGHTS

Assets
The Company reported total assets of $15.4 billion at September 30, 2024. This represented a decrease of $748.3 million, or 4.63%, from total assets of $16.15 billion at June 30, 2024. The decrease in assets included a $416.9 million decrease in interest-earning balances due from the Federal Reserve, a $304.8 million decrease in investment securities, and a $109.4 million decrease in net loans.

Total assets decreased by $617.8 million, or 3.86%, from total assets of $16.02 billion at December 31, 2023. The decrease in assets included a $549.9 million decrease in investment securities, and a $328.4 million decrease in net loans, partially offset by a $142.9 million increase in interest-earning balances due from the Federal Reserve.

Total assets at September 30, 2024 decreased by $499.8 million, or 3.14%, from total assets of $15.90 billion at September 30, 2023. The decrease in assets was primarily due to a $491.8 million decrease in investment securities and a $299.0 million decrease in net loans, partially offset by an increase of $188.6 million in interest-earning balances due from the Federal Reserve and a $57.1 million increase in the cash surrender value of BOLI.

Sale-Leaseback Transaction
During the third quarter of 2024, the Bank executed sale-leaseback transactions and sold two buildings, that are utilized as Banking Centers, for an aggregate sale price of $17 million. The Bank simultaneously entered into lease agreements with the respective purchasers for initial terms of 15 and 18 years. These sale-leaseback transactions resulted in a pre-tax net gain of $9.1 million for the third quarter of 2024. The Bank also recorded Right of Use (“ROU”) assets and corresponding operating lease liabilities each totaling $11.2 million.

Investment Securities and BOLI
Total investment securities were $4.87 billion at September 30, 2024, a decrease of $549.9 million, or 10.14% from December 31, 2023, and a decrease of $491.8 million, or 9.17%, from $5.36 billion at September 30, 2023.

At September 30, 2024, investment securities available-for-sale (“AFS”) totaled $2.47 billion, inclusive of a pre-tax net unrealized loss of $367.7 million. AFS securities decreased by $280.2 million from the prior quarter end, by $490.5 million, or 16.59%, from December 31, 2023 and decreased by $407.6 million, or 14.19%, from $2.87 billion at September 30, 2023. Pre-tax unrealized loss decreased by $120.2 million from the end of the prior quarter, and declined by $82.1 million from December 31, 2023 and by $260.7 million from September 30, 2023.

Concurrent with the sale-leaseback transactions during the third quarter of 2024, the Bank sold AFS securities with a book value of $312 million, resulting in a net pre-tax loss of $11.6 million.

At September 30, 2024, investment securities held-to-maturity (“HTM”) totaled $2.41 billion, a decrease of $24.6 million from the prior quarter end, a $59.4 million, or 2.41% decline from December 31, 2023, and a decrease of $84.2 million, or 3.38%, from September 30, 2023.

Combined, the AFS and HTM investments in mortgage backed securities (“MBS”) and collateralized mortgage obligations (“CMO”) totaled $3.82 billion or approximately 78% of the total investment securities at September 30, 2024. Virtually all of our MBS and CMO are issued or guaranteed by government or government sponsored enterprises, which have the implied guarantee of the U.S. Government. In addition, at September 30, 2024, we had $552.6 million of Government Agency securities that represent approximately 11.3% of the total investment securities.

Our combined AFS and HTM municipal securities totaled $485.7 million as of September 30, 2024, or 10% of our total investment portfolio. These securities are located in 35 states. Our largest concentrations of holdings by state, as a percentage of total municipal bonds, are located in Texas at 16.09%, Minnesota at 11.07%, and California at 9.71%.

At September 30, 2024, the Company had $316.6 million of Bank Owned Life insurance (“BOLI”), compared to $308.7 million at December 31, 2023 and $259.5 million at September 30, 2023. The $57.1 million increase in value of BOLI, when compared to September 30, 2023, was primarily due to a restructuring of the Company’s life insurance policies at the end of 2023, including a $4.5 million write-down in value on surrender policies that was offset by a $10.9 million enhancement to cash surrender values, as well as additional policy purchases totaling $41 million. This restructuring has increased returns on our BOLI policies resulting in additional non-taxable noninterest income in 2024.

Loans
Total loans and leases, at amortized cost, of $8.57 billion at September 30, 2024 decreased by $109.3 million, or 1.26%, from June 30, 2024. The quarter-over quarter decrease in loans included decreases of $46.3 million in commercial real estate loans, $37.5 million in construction loans, $19.7 million in commercial and industrial loans, and $8.1 million in dairy & livestock and agribusiness loans.

Total loans and leases, at amortized cost, decreased by $332.3 million, or 3.73%, from December 31, 2023. The decrease in total loans included decreases of $165.9 million in commercial real estate loans, $70.5 million in dairy & livestock and agribusiness loans, $52.0 million in construction loans, and $33.4 million in commercial and industrial loans.

Total loans and leases, at amortized cost, decreased by $305.1 million, or 3.44%, from September 30, 2023. The $305.1 million decrease included decreases of $224.4 million in commercial real estate loans, $48.3 million in construction loans, $13.1 million in SBA loans, $9.0 million in dairy & livestock and agribusiness loans, and $8.0 million in municipal lease financings.

Asset Quality
During the third quarter of 2024, we experienced credit charge-offs of $26,000 and total recoveries of $182,000, resulting in net recoveries of $156,000. The allowance for credit losses (“ACL”) totaled $82.9 million at September 30, 2024, compared to $82.8 million at June 30, 2024 and $89.0 million at September 30, 2023. At September 30, 2024, ACL as a percentage of total loans and leases outstanding was 0.97%. This compares to 0.95% at June 30, 2024 and 0.98% at December 31, 2023 and 1.00% at September 30, 2023.

Nonperforming loans, defined as nonaccrual loans, including modified loans on nonaccrual, plus loans 90 days past due and accruing interest, and nonperforming assets, defined as nonperforming plus OREO, are highlighted below.

Nonperforming Assets and Delinquency Trends

September 30,
2024

June 30,
2024

September 30,
2023

Nonperforming loans

(Dollars in thousands)

Commercial real estate

$

18,794

$

21,908

$

3,655

SBA

151

337

1,050

Commercial and industrial

2,825

2,712

4,672

Dairy & livestock and agribusiness

143

–

243

SFR mortgage

–

339

Consumer and other loans

–

4

Total

$

21,913

$

24,957

$

9,963

[1]

% of Total loans

0.26

%

0.29

%

0.11

%

OREO

Commercial real estate

$

–

$

–

$

–

Commercial and industrial

647

–

SFR mortgage

–

Total

$

647

$

647

$

–

Total nonperforming assets

$

22,560

$

25,604

$

9,963

% of Nonperforming assets to total assets

0.15

%

0.16

%

0.06

%

Past due 30-89 days (accruing)

Commercial real estate

$

30,701

$

43

$

136

SBA

–

Commercial and industrial

64

103

–

Dairy & livestock and agribusiness

–

SFR mortgage

–

Consumer and other loans

–

Total

$

30,765

$

146

$

136

% of Total loans

0.36

%

0.00

%

0.00

%

Classified Loans

$

124,606

$

124,728

$

92,246

[1] Includes $2.6 million of nonaccrual loans past due 30-89 days.

The $3.0 million decrease in nonperforming loans from June 30, 2024 was primarily due to the payoff of one nonperforming commercial real estate loans totaling $2.3 million and $1.4 million in paydowns of nonperforming commercial real estate loans associated with two relationships. Past due loans grew to more than $30 million on September 30, 2024. Classified loans are loans that are graded “substandard” or worse. Classified loans decreased $122,000 quarter-over-quarter, primarily due to a $668,000 net decrease in classified commercial real estate loans, which included the payoff of 4 loans totaling $11.5 million that were partially offset by the addition of six classified commercial real estate loans in the third quarter of 2024. Classified dairy & livestock and agribusiness loans declined by $3.5 million due to paydowns and classified commercial and industrial loans increased $3.5 million primarily due to the addition of one classified commercial and industrial loan.

Deposits & Customer Repurchase Agreements
Deposits of $12.07 billion and customer repurchase agreements of $394.5 million totaled $12.47 billion at September 30, 2024. This represented a net increase of $407.9 million compared to June 30, 2024. Total deposits at September 30, 2024 included $400 million in brokered time deposits. Total deposits and customer repurchase agreements increased $761.7 million, or 6.51%, when compared to $11.71 billion at December 31, 2023 partially due to the growth in brokered deposits, and decreased $161.3 million, or 1.28% when compared to $12.63 billion at September 30, 2023.

Noninterest-bearing deposits were $7.14 billion at September 30, 2024, an increase of $46.7 million, or 0.66%, when compared to $7.09 billion at June 30, 2024. Noninterest-bearing deposits decreased by $69.4 million, or 0.96% when compared to $7.21 billion at December 31, 2023, and decreased by $449.8 million, or 5.93% when compared to $7.59 billion at September 30, 2023. At September 30, 2024, noninterest-bearing deposits were 59.12% of total deposits, compared to 60.13% at June 30, 2024, 63.03% at December 31, 2023, and 61.39% at September 30, 2023.

Borrowings
As of September 30, 2024, total borrowings consisted of $500 million of FHLB advances. The FHLB advances include maturities of $300 million, at an average cost of approximately 4.73%, maturing in May of 2026, and $200 million, at a cost of 4.27% maturing in May of 2027. During the third quarter of 2024, we repaid the $1.3 billion of borrowings from the Federal Reserve’s Bank Term Funding Program, with a cost of 4.76%, that were scheduled to mature in January of 2025.

Capital
The Company’s total equity was $2.20 billion at September 30, 2024. This represented an overall increase of $119.9 million from total equity of $2.08 billion at December 31, 2023. Increases to equity included $149.9 million in net earnings and a $48.7 million increase in other comprehensive income, that were partially offset by $83.9 million in cash dividends. We engaged in no stock repurchases during the first nine months of 2024. Our tangible book value per share at September 30, 2024 was $10.17.

Our capital ratios under the revised capital framework referred to as Basel III remain well-above regulatory standards.

			CVB Financial Corp. Consolidated
Capital Ratios	Minimum Required Plus Capital Conservation Buffer		September 30, 2024		December 31, 2023		September 30, 2023

Tier 1 leverage capital ratio	4.0	%	10.6	%	10.3	%	10.0	%
Common equity Tier 1 capital ratio	7.0	%	15.8	%	14.6	%	14.4	%
Tier 1 risk-based capital ratio	8.5	%	15.8	%	14.6	%	14.4	%
Total risk-based capital ratio	10.5	%	16.6	%	15.5	%	15.3	%

Tangible common equity ratio			9.7	%	8.5	%	7.7	%

CitizensTrust

As of September 30, 2024, CitizensTrust had approximately $4.7 billion in assets under management and administration, including $3.3 billion in assets under management. Revenues were $3.6 million for the third quarter of 2024, compared to $3.2 million for the same period of 2023. CitizensTrust provides trust, investment and brokerage related services, as well as financial, estate and business succession planning.

Corporate Overview
CVB Financial Corp. (“CVBF”) is the holding company for Citizens Business Bank. CVBF is one of the 10 largest bank holding companies headquartered in California with more than $15 billion in total assets. Citizens Business Bank is consistently recognized as one of the top performing banks in the nation and offers a wide array of banking, lending and investing services with more than 60 banking centers and three trust office locations serving California.

Shares of CVB Financial Corp. common stock are listed on the NASDAQ under the ticker symbol “CVBF”. For investor information on CVB Financial Corp., visit our Citizens Business Bank website at www.cbbank.com and click on the “Investors” tab.

Conference Call
Management will hold a conference call at 7:30 a.m. PDT/10:30 a.m. EDT on Thursday, October 24, 2024 to discuss the Company’s third quarter 2024 financial results. The conference call can be accessed live by registering at: https://register.vevent.com/register/BI6b56a1a5e9bf45efa402c04252b87308

The conference call will also be simultaneously webcast over the Internet; please visit our Citizens Business Bank website at www.cbbank.com and click on the “Investors” tab to access the call from the site. Please access the website 15 minutes prior to the call to download any necessary audio software. This webcast will be recorded and available for replay on the Company’s website approximately two hours after the conclusion of the conference call and will be available on the website for approximately 12 months.

Safe Harbor
Certain statements set forth herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “will likely result”, “aims”, “anticipates”, “believes”, “could”, “estimates”, “expects”, “hopes”, “intends”, “may”, “plans”, “projects”, “seeks”, “should”, “will,” “strategy”, “possibility”, and variations of these words and similar expressions help to identify these forward-looking statements, which involve risks and uncertainties that could cause actual results or performance to differ materially from those projected. These forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies, goals and statements about the Company’s outlook regarding revenue and asset growth, financial performance and profitability, capital and liquidity levels, loan and deposit levels, growth and retention, yields and returns, loan diversification and credit management, stockholder value creation, tax rates, the impact of economic developments, and the impact of acquisitions we have made or may make. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company, and there can be no assurance that future developments affecting the Company will be the same as those anticipated by management. The Company cautions readers that a number of important factors, in addition to those set forth below, could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements.

General risks and uncertainties include, but are not limited to, the following: the strength of the United States economy in general and the strength of the local economies in which we conduct business; the effects of, and changes in, trade, monetary, and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation/deflation, interest rate, market and monetary fluctuations; the effect of acquisitions we have made or may make, including, without limitation, the failure to obtain the necessary regulatory approvals, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target, key personnel and customers into our operations; the timely development of competitive products and services and the acceptance of these products and services by new and existing customers; the impact of changes in financial services policies, laws, and regulations, including those concerning banking, taxes, securities, and insurance, and the application thereof by regulatory agencies; the effectiveness of our risk management framework and quantitative models; changes in the level of our nonperforming assets and charge-offs; the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the U.S. Securities and Exchange Commission (“SEC”), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters; possible credit related impairments or declines in the fair value of loans and securities held by us; possible impairment charges to goodwill on our balance sheet; changes in customer spending, borrowing, and savings habits; the effects of our lack of a diversified loan portfolio, including the risks of geographic and industry concentrations; periodic fluctuations in commercial or residential real estate prices or values; our ability to attract or retain deposits (including low cost deposits) or to access government or private lending facilities and other sources of liquidity; the possibility that we may reduce or discontinue the payment of dividends on our common stock; changes in the financial performance and/or condition of our borrowers; changes in the competitive environment among financial and bank holding companies and other financial service providers; technological changes in banking and financial services; systemic or non-systemic bank failures or crises; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism, and/or military conflicts, which could impact business and economic conditions in the United States and abroad; catastrophic events or natural disasters, including earthquakes, drought, climate change or extreme weather events that may affect our assets, communications or computer services, customers, employees or third party vendors; public health crises and pandemics, and their effects on our asset credit quality, business operations, and employees, as well as the impact on general economic and financial market conditions; cybersecurity threats and fraud and the costs of defending against them, including the costs of compliance with legislation or regulations to combat fraud and cybersecurity threats; our ability to recruit and retain key executives, board members and other employees, and our ability to comply with federal and state employment laws and regulations; ongoing or unanticipated regulatory or legal proceedings or outcomes; and our ability to manage the risks involved in the foregoing. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company’s 2023 Annual Report on Form 10-K filed with the SEC and available at the SEC’s Internet site (http://www.sec.gov).

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, except as required by law. Any statements about future operating results, such as those concerning accretion and dilution to the Company’s earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ.

Non-GAAP Financial Measures — Certain financial information provided in this earnings release has not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and is presented on a non-GAAP basis. Investors and analysts should refer to the reconciliations included in this earnings release and should consider the Company’s non-GAAP measures in addition to, not as a substitute for or as superior to, measures prepared in accordance with GAAP. These measures may or may not be comparable to similarly titled measures used by other companies.

CVB FINANCIAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)


	September 30, 2024			December 31, 2023			September 30, 2023

Cash and due from banks	$	200,651		$	171,396		$	176,488
Interest-earning balances due from Federal Reserve		252,809			109,889			64,207
Total cash and cash equivalents		453,460			281,285			240,695
Interest-earning balances due from depository institutions		24,338			8,216			4,108
Investment securities available-for-sale		2,465,585			2,956,125			2,873,163
Investment securities held-to-maturity		2,405,254			2,464,610			2,489,441
Total investment securities		4,870,839			5,420,735			5,362,604
Investment in stock of Federal Home Loan Bank (FHLB)		18,012			18,012			18,012
Loans and lease finance receivables		8,572,565			8,904,910			8,877,632
Allowance for credit losses		(82,942	)		(86,842	)		(88,995	)
Net loans and lease finance receivables		8,489,623			8,818,068			8,788,637
Premises and equipment, net		36,275			44,709			44,561
Bank owned life insurance (BOLI)		316,553			308,706			259,468
Intangibles		11,130			15,291			16,736
Goodwill		765,822			765,822			765,822
Other assets		417,164			340,149			402,372
Total assets	$	15,403,216		$	16,020,993		$	15,903,015
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing	$	7,136,824		$	7,206,175		$	7,586,649
Investment checking		504,028			552,408			560,223
Savings and money market		3,745,707			3,278,664			3,906,187
Time deposits		685,930			396,395			305,727
Total deposits		12,072,489			11,433,642			12,358,786
Customer repurchase agreements		394,515			271,642			269,552
Other borrowings		500,000			2,070,000			1,120,000
Other liabilities		238,381			167,737			203,276
Total liabilities		13,205,385			13,943,021			13,951,614
Stockholders’ Equity
Stockholders’ equity		2,472,660			2,401,541			2,378,539
Accumulated other comprehensive loss, net of tax		(274,829	)		(323,569	)		(427,138	)
Total stockholders’ equity		2,197,831			2,077,972			1,951,401
Total liabilities and stockholders’ equity	$	15,403,216		$	16,020,993		$	15,903,015

CVB FINANCIAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEETS
(Unaudited)
(Dollars in thousands)


	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Assets
Cash and due from banks	$	162,383		$	162,724		$	176,133		$	162,385		$	176,559
Interest-earning balances due from Federal Reserve		1,216,671			704,023			467,873			786,282			285,573
Total cash and cash equivalents		1,379,054			866,747			644,006			948,667			462,132
Interest-earning balances due from depository institutions		15,880			12,893			5,518			13,161			7,630
Investment securities available-for-sale		2,661,990			2,764,096			3,040,965			2,774,981			3,139,369
Investment securities held-to-maturity		2,418,043			2,442,863			2,501,625			2,439,427			2,524,799
Total investment securities		5,080,033			5,206,959			5,542,590			5,214,408			5,664,168
Investment in stock of FHLB		18,012			18,012			21,560			18,012			27,460
Loans and lease finance receivables		8,605,270			8,731,587			8,862,462			8,720,058			8,905,697
Allowance for credit losses		(82,810	)		(82,815	)		(86,986	)		(83,788	)		(86,222	)
Net loans and lease finance receivables		8,522,460			8,648,772			8,775,476			8,636,270			8,819,475
Premises and equipment, net		38,906			43,624			45,315			42,291			45,731
Bank owned life insurance (BOLI)		315,435			312,645			258,485			312,574			257,358
Intangibles		11,819			13,258			17,526			13,216			19,256
Goodwill		765,822			765,822			765,822			765,822			765,822
Other assets		365,740			390,834			357,280			368,951			343,782
Total assets	$	16,513,161		$	16,279,566		$	16,433,578		$	16,333,372		$	16,412,814
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing	$	7,124,952		$	7,153,315		$	7,813,120		$	7,153,557		$	7,908,749
Interest-bearing		4,931,220			4,728,864			4,769,897			4,705,566			4,624,848
Total deposits		12,056,172			11,882,179			12,583,017			11,859,123			12,533,597
Customer repurchase agreements		363,959			287,128			340,809			320,280			461,478
Other borrowings		1,729,405			1,850,330			1,318,098			1,856,771			1,273,521
Other liabilities		196,832			157,463			164,624			174,328			133,046
Total liabilities		14,346,368			14,177,100			14,406,548			14,210,502			14,401,642
Stockholders’ Equity
Stockholders’ equity		2,479,766			2,456,945			2,383,922			2,456,348			2,357,028
Accumulated other comprehensive loss, net of tax		(312,973	)		(354,479	)		(356,892	)		(333,478	)		(345,856	)
Total stockholders’ equity		2,166,793			2,102,466			2,027,030			2,122,870			2,011,172
Total liabilities and stockholders’ equity	$	16,513,161		$	16,279,566		$	16,433,578		$	16,333,372		$	16,412,814

CVB FINANCIAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(Dollars in thousands, except per share amounts)


	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Interest income:
Loans and leases, including fees	$	114,929		$	114,200		$	113,190		$	345,478		$	332,574
Investment securities:
Investment securities available-for-sale		20,178			21,225			22,441			62,849			61,393
Investment securities held-to-maturity		13,284			13,445			13,576			40,131			41,272
Total investment income		33,462			34,670			36,017			102,980			102,665
Dividends from FHLB stock		375			377			598			1,171			1,430
Interest-earning deposits with other institutions		16,986			9,825			6,422			32,884			11,583
Total interest income		165,752			159,072			156,227			482,513			448,252
Interest expense:
Deposits		29,821			25,979			16,517			77,166			32,647
Borrowings and customer repurchase agreements		22,312			22,244			16,339			68,418			46,971
Total interest expense		52,133			48,223			32,856			145,584			79,618
Net interest income before provision for (recapture of) credit losses		113,619			110,849			123,371			336,929			368,634
Provision for (recapture of) credit losses		–			–			2,000			–			4,000
Net interest income after provision for (recapture of) credit losses		113,619			110,849			121,371			336,929			364,634
Noninterest income:
Service charges on deposit accounts		5,120			5,117			5,062			15,273			15,244
Trust and investment services		3,565			3,428			3,246			10,217			9,475
Loss on sale of AFS investment securities		(11,582	)		–			–			(11,582	)		–
Gain on sale leaseback transactions		9,106			–			–			9,106			–
Other		6,625			5,879			6,001			18,357			15,448
Total noninterest income		12,834			14,424			14,309			41,371			40,167
Noninterest expense:
Salaries and employee benefits		36,647			35,426			34,744			108,474			103,539
Occupancy and equipment		6,204			5,772			5,618			17,541			16,585
Professional services		2,855			2,726			2,117			7,836			6,375
Computer software expense		3,906			3,949			3,648			11,380			10,372
Marketing and promotion		1,964			1,956			1,628			5,550			4,664
Amortization of intangible assets		1,286			1,437			1,567			4,161			5,006
(Recapture of) provision for unfunded loan commitments		(750	)		(500	)		(900	)		(1,250	)		–
Other		6,723			5,731			6,636			21,411			17,415
Total noninterest expense		58,835			56,497			55,058			175,103			163,956
Earnings before income taxes		67,618			68,776			80,622			203,197			240,845
Income taxes		16,394			18,741			22,735			53,339			67,918
Net earnings	$	51,224		$	50,035		$	57,887		$	149,858		$	172,927

Basic earnings per common share	$	0.37		$	0.36		$	0.42		$	1.07		$	1.24
Diluted earnings per common share	$	0.37		$	0.36		$	0.42		$	1.07		$	1.24
Cash dividends declared per common share	$	0.20		$	0.20		$	0.20		$	0.60		$	0.60

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)

	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Interest income – tax equivalent (TE)	$	166,285		$	159,607		$	156,771		$	484,120		$	449,888
Interest expense		52,133			48,223			32,856			145,584			79,618
Net interest income – (TE)	$	114,152		$	111,384		$	123,915		$	338,536		$	370,270

Return on average assets, annualized		1.23	%		1.24	%		1.40	%		1.23	%		1.41	%
Return on average equity, annualized		9.40	%		9.57	%		11.33	%		9.43	%		11.50	%
Efficiency ratio [1]		46.53	%		45.10	%		39.99	%		46.29	%		40.11	%
Noninterest expense to average assets, annualized		1.42	%		1.40	%		1.33	%		1.43	%		1.34	%
Yield on average loans		5.31	%		5.26	%		5.07	%		5.29	%		4.99	%
Yield on average earning assets (TE)		4.43	%		4.37	%		4.18	%		4.38	%		4.04	%
Cost of deposits		0.98	%		0.88	%		0.52	%		0.87	%		0.35	%
Cost of deposits and customer repurchase agreements		1.01	%		0.87	%		0.51	%		0.87	%		0.34	%
Cost of funds		1.47	%		1.38	%		0.92	%		1.39	%		0.75	%
Net interest margin (TE)		3.05	%		3.05	%		3.31	%		3.06	%		3.32	%
[1] Noninterest expense divided by net interest income before provision for credit losses plus noninterest income.

Tangible Common Equity Ratio (TCE) [2]
CVB Financial Corp. Consolidated		9.71	%		8.68	%		7.73	%
Citizens Business Bank		9.59	%		8.57	%		7.63	%
[2] (Capital – [GW+Intangibles])/(Total Assets – [GW+Intangibles])

Weighted average shares outstanding
Basic		138,649,763			138,583,510			138,345,000			138,415,424			138,360,531
Diluted		138,839,499			138,669,058			138,480,633			138,548,651			138,481,462
Dividends declared	$	27,977		$	28,018		$	27,901		$	83,881		$	83,695
Dividend payout ratio [3]		54.62	%		56.00	%		48.20	%		55.97	%		48.40	%
[3] Dividends declared on common stock divided by net earnings.

Number of shares outstanding – (end of period)		139,678,314			139,677,162			139,337,699
Book value per share	$	15.73		$	15.12		$	14.00
Tangible book value per share	$	10.17		$	9.55		$	8.39

	September 30, 2024			December 31, 2023			September 30, 2023
	September 30, 2024			December 31, 2023			September 30, 2023
Nonperforming assets:
Nonaccrual loans	$	21,913		$	21,302		$	9,963
Other real estate owned (OREO), net		647			–			–
Total nonperforming assets	$	22,560		$	21,302		$	9,963
Modified loans/performing troubled debt restructured loans (TDR) [4]	$	15,769		$	9,460		$	7,304

[4] Effective January 1, 2023, performing and nonperforming TDRs are reflected as Loan Modifications to borrowers experiencing financial difficulty.

Percentage of nonperforming assets to total loans outstanding and OREO		0.26	%		0.24	%		0.11	%
Percentage of nonperforming assets to total assets		0.15	%		0.13	%		0.06	%
Allowance for credit losses to nonperforming assets		367.65	%		407.67	%		893.26	%

	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Allowance for credit losses:
Beginning balance	$	82,786		$	82,817		$	86,967		$	86,842		$	85,117
Total charge-offs		(26	)		(51	)		(26	)		(4,344	)		(224	)
Total recoveries on loans previously charged-off		182			20			54			444			102
Net recoveries (charge-offs)		156			(31	)		28			(3,900	)		(122	)
Provision for (recapture of) credit losses		–			–			2,000			–			4,000
Allowance for credit losses at end of period	$	82,942		$	82,786		$	88,995		$	82,942		$	88,995

Net recoveries (charge-offs) to average loans		0.002	%		-0.000	%		0.000	%		-0.045	%		-0.001	%

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in millions)

Allowance for Credit Losses by Loan Type

	September 30, 2024					December 31, 2023					September 30, 2023
	Allowance For Credit Losses		Allowance as a % of Total Loans by Respective Loan Type			Allowance For Credit Losses		Allowance as a % of Total Loans by Respective Loan Type			Allowance For Credit Losses		Allowance as a % of Total Loans by Respective Loan Type

Commercial real estate	$	69.7		1.05	%	$	69.5		1.02	%	$	70.9		1.04	%
Construction		0.5		3.07	%		1.3		1.91	%		1.0		1.59	%
SBA		2.5		0.92	%		2.7		0.99	%		3.0		1.08	%
Commercial and industrial		5.3		0.56	%		9.1		0.94	%		9.3		0.99	%
Dairy & livestock and agribusiness		3.8		1.12	%		3.1		0.75	%		3.6		1.01	%
Municipal lease finance receivables		0.2		0.28	%		0.2		0.29	%		0.3		0.33	%
SFR mortgage		0.4		0.16	%		0.5		0.20	%		0.5		0.20	%
Consumer and other loans		0.5		0.99	%		0.4		0.85	%		0.4		0.82	%

Total	$	82.9		0.97	%	$	86.8		0.98	%	$	89.0		1.00	%

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)

Quarterly Common Stock Price

		2024					2023						2022
Quarter End	High		Low			High			Low			High			Low
March 31,	$	20.45	$	15.95		$	25.98		$	16.34		$	24.37		$	21.36
June 30,	$	17.91	$	15.71		$	16.89		$	10.66		$	25.59		$	22.37
September 30,	$	20.29	$	16.08		$	19.66		$	12.89		$	28.14		$	22.63
December 31,	$	–	$	–		$	21.77		$	14.62		$	29.25		$	25.26

Quarterly Consolidated Statements of Earnings

			Q3			Q2			Q1			Q4			Q3
				2024			2024			2024			2023			2023
Interest income
Loans and leases, including fees			$	114,929		$	114,200		$	116,349		$	115,721		$	113,190
Investment securities and other				50,823			44,872			41,340			42,357			43,037
Total interest income				165,752			159,072			157,689			158,078			156,227
Interest expense
Deposits				29,821			25,979			21,366			18,888			16,517
Borrowings and customer repurchase agreements				22,312			22,244			23,862			19,834			16,339
Total interest expense				52,133			48,223			45,228			38,722			32,856
Net interest income before (recapture of)
provision for credit losses				113,619			110,849			112,461			119,356			123,371
(Recapture of) provision for credit losses				–			–			–			(2,000	)		2,000
Net interest income after (recapture of)
provision for credit losses				113,619			110,849			112,461			121,356			121,371

Noninterest income				12,834			14,424			14,113			19,163			14,309
Noninterest expense				58,835			56,497			59,771			65,930			55,058
Earnings before income taxes				67,618			68,776			66,803			74,589			80,622
Income taxes				16,394			18,741			18,204			26,081			22,735
Net earnings			$	51,224		$	50,035		$	48,599		$	48,508		$	57,887

Effective tax rate				24.25	%		27.25	%		27.25	%		34.97	%		28.20	%

Basic earnings per common share			$	0.37		$	0.36		$	0.35		$	0.35		$	0.42
Diluted earnings per common share			$	0.37		$	0.36		$	0.35		$	0.35		$	0.42

Cash dividends declared per common share			$	0.20		$	0.20		$	0.20		$	0.20		$	0.20

Cash dividends declared			$	27,977		$	28,018		$	27,886		$	27,945		$	27,901

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands)

Loan Portfolio by Type
	September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023

Commercial and industrial	$	6,618,637		$	6,664,925		$	6,720,538		$	6,784,505		$	6,843,059
Construction		14,755			52,227			58,806			66,734			63,022
SBA		272,001			267,938			268,320			270,619			283,124
SBA – PPP		1,255			1,757			2,249			2,736			3,233
Commercial and industrial		936,489			956,184			963,120			969,895			938,064
Dairy & livestock and agribusiness		342,445			350,562			351,624			412,891			351,463
Municipal lease finance receivables		67,585			70,889			72,032			73,590			75,621
SFR mortgage		267,181			267,593			276,475			269,868			268,171
Consumer and other loans		52,217			49,771			57,549			54,072			51,875
Gross loans, at amortized cost		8,572,565			8,681,846			8,770,713			8,904,910			8,877,632
Allowance for credit losses		(82,942	)		(82,786	)		(82,817	)		(86,842	)		(88,995	)
Net loans	$	8,489,623		$	8,599,060		$	8,687,896		$	8,818,068		$	8,788,637



Deposit Composition by Type and Customer Repurchase Agreements

	September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023

Noninterest-bearing	$	7,136,824		$	7,090,095		$	7,112,789		$	7,206,175		$	7,586,649
Investment checking		504,028			515,930			545,066			552,408			560,223
Savings and money market		3,745,707			3,409,320			3,561,512			3,278,664			3,906,187
Time deposits		685,930			774,980			675,554			396,395			305,727
Total deposits		12,072,489			11,790,325			11,894,921			11,433,642			12,358,786

Customer repurchase agreements		394,515			268,826			275,720			271,642			269,552
Total deposits and customer repurchase agreements	$	12,467,004		$	12,059,151		$	12,170,641		$	11,705,284		$	12,628,338

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands)

Nonperforming Assets and Delinquency Trends
	September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023
Nonperforming loans:
Commercial real estate	$	18,794		$	21,908		$	10,661		$	15,440		$	3,655
Construction		–			–			–			–			–
SBA		151			337			54			969			1,050
Commercial and industrial		2,825			2,712			2,727			4,509			4,672
Dairy & livestock and agribusiness		143			–			60			60			243
SFR mortgage		–			–			308			324			339
Consumer and other loans		–			–			–			–			4
Total	$	21,913		$	24,957		$	13,810		$	21,302		$	9,963		[1]
% of Total loans		0.26	%		0.29	%		0.16	%		0.24	%		0.11	%

Past due 30-89 days (accruing):
Commercial real estate	$	30,701		$	43		$	19,781		$	300		$	136
Construction		–			–			–			–			–
SBA		–			–			408			108			–
Commercial and industrial		64			103			6			12			–
Dairy & livestock and agribusiness		–			–			–			–			–
SFR mortgage		–			–			–			201			–
Consumer and other loans		–			–			–			18			–
Total	$	30,765		$	146		$	20,195		$	639		$	136
% of Total loans		0.36	%		0.00	%		0.23	%		0.01	%		0.00	%

OREO:
Commercial real estate	$	–		$	–		$	–		$	–		$	–
SBA		–			–			–			–			–
Commercial and industrial		647			647			647			–			–
SFR mortgage		–			–			–			–			–
Total	$	647		$	647		$	647		$	–		$	–
Total nonperforming, past due, and OREO	$	53,325		$	25,750		$	34,652		$	21,941		$	10,099
% of Total loans		0.62	%		0.30	%		0.40	%		0.25	%		0.11	%

[1] Includes $2.6 million of nonaccrual loans past due 30-89 days.

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)

Regulatory Capital Ratios



			CVB Financial Corp. Consolidated
Capital Ratios	Minimum Required Plus Capital Conservation Buffer		September 30, 2024		December 31, 2023		September 30, 2023

Tier 1 leverage capital ratio	4.0	%	10.6	%	10.3	%	10.0	%
Common equity Tier 1 capital ratio	7.0	%	15.8	%	14.6	%	14.4	%
Tier 1 risk-based capital ratio	8.5	%	15.8	%	14.6	%	14.4	%
Total risk-based capital ratio	10.5	%	16.6	%	15.5	%	15.3	%

Tangible common equity ratio			9.7	%	8.5	%	7.7	%

Tangible Book Value Reconciliations (Non-GAAP)

The tangible book value per share is a Non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. The following is a reconciliation of tangible book value to the Company stockholders’ equity computed in accordance with GAAP, as well as a calculation of tangible book value per share as of September 30, 2024, December 31, 2023 and September 30, 2023.


		September 30, 2024			December 31, 2023			September 30, 2023
		(Dollars in thousands, except per share amounts)

Stockholders’ equity	$	2,197,831		$	2,077,972		$	1,951,401
Less: Goodwill		(765,822	)		(765,822	)		(765,822	)
Less: Intangible assets		(11,130	)		(15,291	)		(16,736	)
Tangible book value	$	1,420,879		$	1,296,859		$	1,168,843
Common shares issued and outstanding		139,678,314			139,344,981			139,337,699
Tangible book value per share	$	10.17		$	9.31		$	8.39

Return on Average Tangible Common Equity Reconciliations (Non-GAAP)

The return on average tangible common equity is a non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. The following is a reconciliation of net income, adjusted for tax-effected amortization of intangibles, to net income computed in accordance with GAAP; a reconciliation of average tangible common equity to the Company’s average stockholders’ equity computed in accordance with GAAP; as well as a calculation of return on average tangible common equity.

		Three Months Ended												Nine Months Ended
		September 30,			June 30,			September 30,			September 30,				September 30,
			2024			2024			2023			2024				2023
		(Dollars in thousands)

	Net Income	$	51,224		$	50,035		$	57,887		$	149,858			$	172,927
	Add: Amortization of intangible assets		1,286			1,437			1,567			4,161				5,006
	Less: Tax effect of amortization of intangible assets [1]		(380	)		(425	)		(463	)		(1,230	)			(1,480	)
	Tangible net income	$	52,130		$	51,047		$	58,991		$	152,789			$	176,453

	Average stockholders’ equity	$	2,166,793		$	2,102,466		$	2,027,030		$	2,122,870			$	2,011,172
	Less: Average goodwill		(765,822	)		(765,822	)		(765,822	)		(765,822	)			(765,822	)
	Less: Average intangible assets		(11,819	)		(13,258	)		(17,526	)		(13,216	)			(19,256	)
	Average tangible common equity	$	1,389,152		$	1,323,386		$	1,243,682		$	1,343,832			$	1,226,094

	Return on average equity, annualized [2]		9.40	%		9.57	%		11.33	%		9.43	%			11.50	%
	Return on average tangible common equity, annualized [2]		14.93	%		15.51	%		18.82	%		15.19	%			19.24	%


	[1] Tax effected at respective statutory rates.
	[2] Annualized where applicable.

Contact:
David A. Brager
President and Chief Executive Officer
(909) 980-4030

The MIL Network –

January 25, 2025

MIL-OSI: Update: Eagle Bancorp, Inc. Announces Third Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

BETHESDA, Md., Oct. 23, 2024 (GLOBE NEWSWIRE) — Eagle Bancorp, Inc. (“Eagle”, the “Company”) (NASDAQ: EGBN), the Bethesda-based holding company for EagleBank, one of the largest community banks in the Washington D.C. area, reported its unaudited results for the third quarter ended September 30, 2024.

Eagle reported net income of $21.8 million or $0.72 per share for the third quarter 2024, compared to a net loss of $83.8 million during the second quarter in which the Company recorded a $104.2 million impairment in the value of goodwill. Operating net income¹ in the second quarter, adjusted to exclude the impairment charge on goodwill, was $20.4 million or $0.67 per share per diluted share. Pre-provision net revenue (“PPNR”)¹ in the third quarter was $35.2 million compared to a pre-provision net loss of $69.8 million for the prior quarter, or $34.4 million of PPNR when adjusted to exclude the impairment charge on goodwill¹.

The $1.4 million increase in operating net income¹ over the prior quarter is attributed to a positive variance of $2.2 million related to the change in provision for unfunded commitments; $1.6 million increase in non-interest income; and a $490 thousand increase in net interest income, offset by a $1.3 million increase in operating non-interest expense, adjusted to exclude the impairment charge on goodwill, and a $1.1 million increase in provision for credit losses.

“We continue to strategically position the Company for future growth as evidenced by actions taken during the quarter with the refinancing of our maturing subordinated debt and the recalibration of our common dividend strategy,” said Susan G. Riel, President and Chief Executive Officer of the Company. “We announced the addition of Evelyn Lee to our senior leadership as our Chief Lending Officer for our commercial lending team. As a 25 year banker in the Washington D.C. market, I am excited about accomplishing our strategic goal of continuing to build out our commercial banker group and pursuing diversification of the loan portfolio and growing our relationship deposits,” added Ms. Riel.

Eric R. Newell, Chief Financial Officer of the Company said, “Raising senior debt in the third quarter demonstrates the confidence debt investors have in our vision and the future of the Company. Operating performance was stable from last quarter evidenced by operating net income¹ increasing $1.4 million to $21.8 million in the third quarter. We continued to build our reserve for credit losses, with coverage as a percentage of total held for investment loans at 1.40% increasing 7 basis points from last quarter. Common equity tier one capital increased to 14.5% and our tangible common equity¹ ratio exceeds 10%.”

Ms. Riel added, “I thank all of our employees for their hard work and their commitment to a culture of respect, diversity and inclusion in both the workplace and the communities we serve.”

Third Quarter 2024 Highlights

The Company repaid $70 million of maturing subordinated debt and issued $77.7 million of 10% unsecured senior debt maturing September 30, 2029.
During the quarter, the Company announced a recalibration of the common stock dividend to $0.165 per share from $0.45 per share in the second quarter an action estimated to retain an additional $32 million of capital annually to meet growth and investment objectives.
The ACL as a percentage of total loans held for investment was 1.40% at quarter-end; up from 1.33% at the prior quarter-end. Performing office coverage² was 4.55% at quarter-end; as compared to 4.05% at the prior quarter-end.
Nonperforming assets increased $38.2 million to $137.1 million as of September 30, 2024 and were 1.22% of total assets compared to 0.88% as of June 30, 2024. Inflows to non-performing loans in the quarter totaled $45.5 million offset by $9 million of outflows, of which $5 million was the loan held for sale at June 30, 2024 and an increase of other real estate owned of $2.0 million. The inflows were predominantly associated with $27.3 million in mixed use land loans and $17.9 million in an assisted living facility loan.
Substandard loans declined $17.0 million to $391.3 million and special mention loans increased $57.1 million to $365.0 million at September 30, 2024.
Net charge-offs for the third quarter were 0.26% compared to 0.11% for the second quarter 2024. Of the total $5.3 million of net charge offs in the quarter, $3.8 million is associated with a senior living property that has not stabilized.
The net interest margin (“NIM”) decreased slightly to 2.37% for the third quarter 2024, compared to 2.40% for the prior quarter, primarily due to continued decline in average non-interest bearing deposits. Net interest income increased $490 thousand from the second quarter to $71.8 million in the third quarter.
At quarter-end, the common equity ratio, tangible common equity ratio¹, and common equity tier 1 capital (to risk-weighted assets) ratio were 10.86%, 10.86%, and 14.54%, respectively.
Total estimated insured deposits at quarter-end were $6.4 billion, or 74.5% of deposits, stable from the second quarter total of 72.5% of deposits.
Total on-balance sheet liquidity and available capacity was $4.6 billion at quarter-end compared to $4.0 billion at June 30, 2024.

Income Statement

Net interest income was $71.8 million for the third quarter 2024, compared to $71.4 million for the prior quarter. The increase in net interest income was primarily driven by an increase in the average balances of deposits held with other banks and average loans partially offset by higher average interest-bearing deposits and higher rates paid on those deposits in the third quarter from the prior quarter.
Provision for credit losses was $10.1 million for the third quarter 2024, compared to $9.0 million for the prior quarter. The increase in the provision quarter over quarter reflects higher net charge-offs in the third quarter from the prior quarter. Reserve for unfunded commitments was a reversal of $1.6 million due to lower unfunded commitments in our construction portfolio. This compared to a reserve for unfunded commitments in the prior quarter of $0.6 million.
Noninterest income was $6.95 million for the third quarter 2024, compared to $5.33 million for the prior quarter. The primary driver for the increase was higher swap fee income.
Noninterest expense was $43.6 million for the third quarter 2024, compared to $146.5 million for the prior quarter. The decrease over the comparative quarters was primarily due to a goodwill impairment charge of $104.2 million in the second quarter 2024. When excluding the goodwill impairment charge, the increase quarter over quarter was associated with increased FDIC insurance expense.

Loans and Funding

Total loans were $8.0 billion at September 30, 2024, down 0.4% from the prior quarter-end. The decrease in total loans was driven by a reduction in commercial loans and income producing commercial real estate loans from the prior quarter-end, partially offset by increased fundings of ongoing construction projects for commercial and residential properties.
At September 30, 2024, income-producing commercial real estate loans secured by office properties other than owner-occupied properties were 10.8% of the total loan portfolio, down from 11.3% at the prior quarter-end.

Total deposits at quarter-end were $8.5 billion, up $273.5 million, or 3.3%, from the prior quarter-end. The increase was primarily attributable to an increase in time deposits from the company’s digital acquisition channel. Period end deposits have increased $165 million when compared to prior year comparable period end of September 30, 2023.
Other short-term borrowings were $1.2 billion at September 30, 2024, down 25.3% from the prior quarter-end as maturing FHLB borrowings were paid down with increased cash from deposits.

Asset Quality

Allowance for credit losses was 1.40% of total loans held for investment at September 30, 2024, compared to 1.33% at the prior quarter-end. Performing office coverage was 4.55% at quarter-end; as compared to 4.05% at the prior quarter-end.
Net charge-offs were $5.3 million for the quarter compared to $2.3 million in the second quarter of 2024.
Nonperforming assets were $137.1 million at September 30, 2024.
- NPAs as a percentage of assets were 1.22% at September 30, 2024, compared to 0.88% at the prior quarter-end. At September 30, 2024, other real estate owned consisted of four properties with an aggregate carrying value of $2.7 million. The increase in NPAs was predominantly associated with $27.3 million in mixed use land loans and $17.9 million in an assisted living facility loan.
- Loans 30-89 days past due were $56.3 million at September 30, 2024, compared to $8.4 million at the prior quarter-end. Of the total increase, $25 million was brought current subsequent to quarter-end.

Capital

Total shareholders’ equity was $1.2 billion at September 30, 2024, up 4.8% from the prior quarter-end. The increase in shareholders’ equity of $56.0 million was primarily due to increased valuations of available-for-sale securities and an increase in retained earnings.
Book value per share and Tangible book value per share³ was $40.61, up $1.86 from the prior quarter-end.

Additional financial information: The financial information that follows provides more detail on the Company’s financial performance for the three months ended September 30, 2024 as compared to the three months ended June 30, 2024 and September 30, 2023, as well as eight quarters of trend data. Persons wishing additional information should refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and other reports filed with the SEC.

About Eagle Bancorp: The Company is the holding company for EagleBank, which commenced operations in 1998. The Bank is headquartered in Bethesda, Maryland, and operates through twelve banking offices and four lending offices located in Suburban Maryland, Washington, D.C. and Northern Virginia. The Company focuses on building relationships with businesses, professionals and individuals in its marketplace, and is committed to a culture of respect, diversity, equity and inclusion in both its workplace and the communities in which it operates.

Conference call: Eagle Bancorp will host a conference call to discuss its third quarter 2024 financial results on Thursday, October 24, 2024 at 10:00 a.m. Eastern Time.

The listen-only webcast can be accessed at:

https://edge.media-server.com/mmc/p/79xpxyi2
For analysts who wish to participate in the conference call, please register at the following URL:
https://register.vevent.com/register/BI6cdce3c45a9f49219ea94a6f7c9fa083

A replay of the conference call will be available on the Company’s website through November 7, 2024: https://www.eaglebankcorp.com/

Forward-looking statements: This press release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or results of Company operations and policies and regarding general economic conditions. In some cases, forward-looking statements can be identified by use of words such as “may,” “will,” “can,” “anticipates,” “believes,” “expects,” “plans,” “estimates,” “potential,” “continue,” “should,” “could,” “strive,” “feel” and similar words or phrases. These statements are based upon current and anticipated economic conditions, nationally and in the Company’s market (including volatility in interest rates and interest rate policy; the current inflationary environment; competitive factors) and other conditions (such as the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks), which by their nature are not susceptible to accurate forecast and are subject to significant uncertainty. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results in the future may differ materially from those indicated herein. For details on factors that could affect these expectations, see the risk factors and other cautionary language included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and in other periodic and current reports filed with the SEC. Readers are cautioned against placing undue reliance on any such forward-looking statements. The Company’s past results are not necessarily indicative of future performance, and nothing contained herein is meant to or should be considered and treated as earnings guidance of future quarters’ performance projections. All information is as of the date of this press release. Any forward-looking statements made by or on behalf of the Company speak only as to the date they are made. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.

Eagle Bancorp, Inc.
Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except per share data)

	Three Months Ended
	September 30,			June 30,			September 30,
		2024			2024			2023
Interest Income
Interest and fees on loans	$	139,836		$	137,616		$	132,273
Interest and dividends on investment securities		12,578			12,405			13,732
Interest on balances with other banks and short-term investments		21,296			19,568			15,067
Interest on federal funds sold		103			142			77
Total interest income		173,813			169,731			161,149
Interest Expense
Interest on deposits		81,190			76,846			70,929
Interest on customer repurchase agreements		332			330			311
Interest on other short-term borrowings		20,448			21,202			18,152
Interest on long-term borrowings	$	—			—			1,038
Total interest expense		101,970			98,378			90,430
Net Interest Income		71,843			71,353			70,719
Provision for Credit Losses		10,094			8,959			5,644
Provision (Reversal) for Credit Losses for Unfunded Commitments		(1,593	)		608			(839	)
Net Interest Income After Provision for Credit Losses		63,342			61,786			65,914

Noninterest Income
Service charges on deposits		1,747			1,653			1,631
Gain on sale of loans		20			37			(5	)
Net gain on sale of investment securities		3			3			5
Increase in cash surrender value of bank-owned life insurance		731			709			669
Other income		4,450			2,930			4,047
Total noninterest income		6,951			5,332			6,347
Noninterest Expense
Salaries and employee benefits		21,675			21,770			21,549
Premises and equipment expenses		2,794			2,894			3,095
Marketing and advertising		1,588			1,662			768
Data processing		3,435			3,495			3,194
Legal, accounting and professional fees		3,433			2,705			2,162
FDIC insurance		7,399			5,917			3,342
Goodwill impairment		—			104,168			—
Other expenses		3,290			3,880			3,523
Total noninterest expense		43,614			146,491			37,633
(Loss) Income Before Income Tax Expense		26,679			(79,373	)		34,628
Income Tax Expense		4,864			4,429			7,245
Net (Loss) Income	$	21,815		$	(83,802	)	$	27,383

(Loss) Earnings Per Common Share
Basic	$	0.72		$	(2.78	)	$	0.91
Diluted	$	0.72		$	(2.78	)	$	0.91

Eagle Bancorp, Inc.
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands, except per share data)
	September 30,			June 30,			September 30,
		2024			2024			2023
Assets
Cash and due from banks	$	16,383		$	10,803		$	8,625
Federal funds sold		9,610			5,802			13,611
Interest-bearing deposits with banks and other short-term investments		584,491			526,228			235,819
Investment securities available-for-sale at fair value (amortized cost of $1,550,038, $1,613,659, and $1,732,722, respectively, and allowance for credit losses of $17, $17 and $17, respectively)		1,433,006			1,584,435			1,474,945
Investment securities held-to-maturity at amortized cost, net of allowance for credit losses of $1,237, $2,012 and $2,010, respectively (fair value of $868,425, $856,275 and $923,313, respectively)		961,925			982,955			1,032,485
Federal Reserve and Federal Home Loan Bank stock		37,728			54,274			25,689
Loans held for sale		—			5,000			—
Loans		7,970,269			8,001,739			7,916,391
Less: allowance for credit losses		(111,867	)		(106,301	)		(83,332	)
Loans, net		7,858,402			7,895,438			7,833,059
Premises and equipment, net		8,291			8,788			11,216
Operating lease right-of-use assets		15,167			16,250			20,151
Deferred income taxes		74,381			86,236			98,987
Bank-owned life insurance		115,064			114,333			112,234
Goodwill and intangible assets, net		21			129			105,239
Other real estate owned		2,743			773			1,487
Other assets		167,840			174,396			190,667
Total Assets	$	11,285,052		$	11,465,840		$	11,164,214
Liabilities and Shareholders’ Equity
Liabilities
Deposits:
Noninterest-bearing demand	$	1,609,823		$	1,693,955		$	2,072,665
Interest-bearing transaction		903,300			1,123,980			932,779
Savings and money market		3,316,819			3,165,314			3,129,773
Time deposits		2,710,908			2,284,099			2,241,089
Total deposits		8,540,850			8,267,348			8,376,306
Customer repurchase agreements		32,040			39,220			25,689
Other short-term borrowings		1,240,000			1,659,979			1,300,001
Long-term borrowings		75,812			—			69,887
Operating lease liabilities		18,755			20,016			24,422
Reserve for unfunded commitments		5,060			6,653			6,183
Other liabilities		147,111			139,348			145,842
Total Liabilities		10,059,628			10,132,564			9,948,330
Shareholders’ Equity
Common stock, par value $0.01 per share; shares authorized 100,000,000, shares issued and outstanding 30,173,200 30,180,482, and 30,185,732, respectively		298			297			296
Additional paid-in capital		382,284			380,142			372,394
Retained earnings		967,019			949,863			1,054,699
Accumulated other comprehensive loss		(124,177	)		(160,843	)		(211,505	)
Total Shareholders’ Equity		1,225,424			1,169,459			1,215,884
Total Liabilities and Shareholders’ Equity	$	11,285,052		$	11,302,023		$	11,164,214

Loan Mix and Asset Quality (Dollars in thousands)

	September 30,					June 30,					September 30,
		2024					2024					2023
	Amount		%			Amount		%			Amount		%
Loan Balances – Period End:
Commercial	$	1,154,349		14	%	$	1,238,261		15	%	$	1,418,760		18	%
PPP loans		348		—	%		407		—	%		588		—	%
Income producing – commercial real estate		4,155,120		52	%		4,217,525		53	%		4,147,301		52	%
Owner occupied – commercial real estate		1,276,240		16	%		1,263,714		16	%		1,182,959		15	%
Real estate mortgage – residential		57,223		1	%		61,338		1	%		76,511		1	%
Construction – commercial and residential		1,174,591		15	%		1,063,764		13	%		904,282		11	%
Construction – C&I (owner occupied)		100,662		1	%		99,526		1	%		129,616		2	%
Home equity		51,567		1	%		52,773		1	%		53,917		1	%
Other consumer		169		—	%		4,431		—	%		2,457		—	%
Total loans	$	7,970,269		100	%	$	8,001,739		100	%	$	7,916,391		100	%

	Three Months Ended or As Of
	September 30,		June 30,		September 30,
		2024		2024		2023
Asset Quality:
Net charge-offs	$	5,303	$	2,285	$	340
Nonperforming loans	$	134,371	$	98,169	$	70,148
Other real estate owned	$	2,743	$	773	$	1,757
Nonperforming assets	$	137,114	$	98,942	$	71,905
Special mention	$	364,983	$	307,906	$	158,182
Substandard	$	391,301	$	408,311	$	219,001

Eagle Bancorp, Inc.
Consolidated Average Balances, Interest Yields And Rates vs. Prior Quarter (Unaudited)
(Dollars in thousands)

	Three Months Ended
	September 30, 2024								June 30, 2024
	Average Balance			Interest		Average Yield/Rate			Average Balance			Interest		Average Yield/Rate
ASSETS
Interest earning assets:
Interest-bearing deposits with other banks and other short-term investments	$	1,577,464		$	21,296		5.37	%	$	1,455,007		$	19,568		5.41	%
Loans held for sale ⁽¹⁾		4,936			1		0.08	%		8,045			100		5.00	%
Loans ^{(1) (2)}	$	8,026,524			139,835		6.93	%		8,003,206			137,516		6.91	%
Investment securities available-for-sale ⁽²⁾		1,479,598			7,336		1.97	%		1,478,856			7,048		1.92	%
Investment securities held-to-maturity ⁽²⁾		974,366			5,242		2.14	%		995,274			5,357		2.16	%
Federal funds sold		10,003			103		4.10	%		13,058			142		4.37	%
Total interest earning assets		12,072,891		$	173,813		5.73	%		11,953,446		$	169,731		5.71	%
Total noninterest earning assets		397,006								510,725
Less: allowance for credit losses		(108,998	)							(102,671	)
Total noninterest earning assets		288,008								408,054
TOTAL ASSETS	$	12,360,899							$	12,361,500

LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest bearing liabilities:
Interest-bearing transaction	$	1,656,676		$	14,596		3.51	%	$	1,636,795		$	16,100		3.96	%
Savings and money market		3,254,128			34,896		4.27	%		3,321,001			33,451		4.05	%
Time deposits		2,517,944			31,698		5.01	%		2,215,693			27,295		4.95	%
Total interest bearing deposits		7,428,748			81,190		4.35	%		7,173,489			76,846		4.31	%
Customer repurchase agreements		38,045			332		3.47	%		38,599			330		3.44	%
Other short-term borrowings		1,615,867			20,448		5.03	%		1,682,684			21,202		5.07	%
Long-term borrowings		824			—		—	%		—			—		—	%
Total interest bearing liabilities		9,083,484		$	101,970		4.47	%		8,894,772		$	98,378		4.45	%
Noninterest bearing liabilities:
Noninterest bearing demand		1,915,666								2,051,777
Other liabilities		160,272								151,324
Total noninterest bearing liabilities		2,075,938								2,203,101
Shareholders’ equity		1,201,477								1,263,627
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	12,360,899							$	12,361,500
Net interest income				$	71,843							$	71,353
Net interest spread							1.26	%							1.26	%
Net interest margin							2.37	%							2.40	%
Cost of funds							3.69	%							3.61	%

(1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $3.9 million and $4.8 million for the three months ended September 30, 2024 and June 30, 2024, respectively.
(2) Interest and fees on loans and investments exclude tax equivalent adjustments.

Eagle Bancorp, Inc.
Consolidated Average Balances, Interest Yields And Rates vs. Year Ago Quarter (Unaudited)
(Dollars in thousands)

	Three Months Ended September 30,
		2024								2023
	Average Balance			Interest		Average Yield/Rate			Average Balance			Interest		Average Yield/Rate
ASSETS
Interest earning assets:
Interest bearing deposits with other banks and other short-term investments	$	1,577,464		$	21,296		5.37	%	$	1,127,451		$	15,067		5.30	%
Loans held for sale ⁽¹⁾		4,936			1		0.08	%		—			—		—	%
Loans ^{(1) (2)}		8,026,524			139,835		6.93	%		7,795,144			132,273		6.73	%
Investment securities available-for-sale ⁽²⁾		1,479,598			7,336		1.97	%		1,554,348			8,126		2.07	%
Investment securities held-to-maturity ⁽²⁾		974,366			5,242		2.14	%		1,047,515			5,606		2.12	%
Federal funds sold		10,003			103		4.10	%		7,728			77		3.95	%
Total interest earning assets		12,072,891		$	173,813		5.73	%		11,532,186		$	161,149		5.54	%
Total noninterest earning assets		397,006								489,683
Less: allowance for credit losses		(108,998	)							(78,964	)
Total noninterest earning assets		288,008								410,719
TOTAL ASSETS	$	12,360,899							$	11,942,905

LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest bearing liabilities:
Interest bearing transaction	$	1,656,676		$	14,596		3.51	%	$	1,421,522		$	12,785		3.57	%
Savings and money market		3,254,128			34,896		4.27	%		3,113,755			32,855		4.19	%
Time deposits		2,517,944			31,698		5.01	%		2,162,582			25,289		4.64	%
Total interest bearing deposits		7,428,748			81,190		4.35	%		6,697,859			70,929		4.20	%
Customer repurchase agreements		38,045			332		3.47	%		36,082			311		3.42	%
Other short-term borrowings		1,615,867			20,448		5.03	%		1,610,097			19,190		4.73	%
Long-term borrowings		824			—		—	%		—			—		—	%
Total interest bearing liabilities		9,083,484		$	101,970		4.47	%		8,344,038		$	90,430		4.30	%
Noninterest bearing liabilities:
Noninterest bearing demand		1,915,666								2,248,782
Other liabilities		160,272								114,923
Total noninterest bearing liabilities		2,075,938								2,363,705
Shareholders’ equity		1,201,477								1,235,162
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	12,360,899							$	11,942,905
Net interest income				$	71,843							$	70,719
Net interest spread							1.26	%							1.24	%
Net interest margin							2.37	%							2.43	%
Cost of funds							3.69	%							3.39	%

(1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $3.9 million and $4.1 million for the three months ended September 30, 2024 and 2023, respectively.
(2) Interest and fees on loans and investments exclude tax equivalent adjustments.

Eagle Bancorp, Inc.
Statements of Operations and Highlights Quarterly Trends (Unaudited)
(Dollars in thousands, except per share data)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			June 30,			March 31,			December 31,
Income Statements:		2024			2024			2024			2023			2023			2023			2023			2022
Total interest income	$	173,813		$	169,731		$	175,602		$	167,421		$	161,149		$	156,510		$	140,247		$	129,130
Total interest expense		101,970			98,378			100,904			94,429			90,430			84,699			65,223			43,530
Net interest income		71,843			71,353			74,698			72,992			70,719			71,811			75,024			85,600
Provision (reversal) for credit losses		10,094			8,959			35,175			14,490			5,644			5,238			6,164			(464	)
Provision (reversal) for credit losses for unfunded commitments		(1,593	)		608			456			(594	)		(839	)		318			848			161
Net interest income after provision for (reversal of) credit losses		63,342			61,786			39,067			59,096			65,914			66,255			68,012			85,903
Noninterest income before investment gain (loss)		6,948			5,329			3,585			2,891			6,342			8,593			3,721			5,326
Net gain (loss) on sale of investment securities		3			3			4			3			5			2			(21	)		3
Total noninterest income		6,951			5,332			3,589			2,894			6,347			8,595			3,700			5,329
Salaries and employee benefits		21,675			21,770			21,726			18,416			21,549			21,957			24,174			23,691
Premises and equipment expenses		2,794			2,894			3,059			2,967			3,095			3,227			3,317			3,292
Marketing and advertising		1,588			1,662			859			1,071			768			884			636			1,290
Goodwill impairment		—			104,168			—			—			—			—			—			—
Other expenses		17,557			15,997			14,353			14,644			12,221			11,910			12,457			10,645
Total noninterest expense		43,614			146,491			39,997			37,098			37,633			37,978			40,584			38,918
(Loss) income before income tax expense		26,679			(79,373	)		2,659			24,892			34,628			36,872			31,128			52,314
Income tax expense		4,864			4,429			2,997			4,667			7,245			8,180			6,894			10,121
Net (loss) income	$	21,815		$	(83,802	)	$	(338	)	$	20,225		$	27,383		$	28,692		$	24,234		$	42,193
Per Share Data:
(Loss) earnings per weighted average common share, basic	$	0.72		$	(2.78	)	$	(0.01	)	$	0.68		$	0.91		$	0.94		$	0.78		$	1.32
(Loss) earnings per weighted average common share, diluted	$	0.72		$	(2.78	)	$	(0.01	)	$	0.67		$	0.91		$	0.94		$	0.78		$	1.32
Weighted average common shares outstanding, basic		30,173,852			30,185,609			30,068,173			29,925,557			29,910,218			30,454,766			31,109,267			31,819,631
Weighted average common shares outstanding, diluted		30,241,699			30,185,609			30,068,173			29,966,962			29,944,692			30,505,468			31,180,346			31,898,619
Actual shares outstanding at period end		30,173,200			30,180,482			30,185,732			29,925,612			29,917,982			29,912,082			31,111,647			31,346,903
Book value per common share at period end	$	40.61		$	38.75		$	41.72		$	42.58		$	40.64		$	40.78		$	39.92		$	39.18
Tangible book value per common share at period end ⁽¹⁾	$	40.61		$	38.74		$	38.26		$	39.08		$	37.12		$	37.29		$	36.57		$	35.86
Dividend per common share	$	0.165		$	0.45		$	0.45		$	0.45		$	0.45		$	0.45		$	0.45		$	0.45
Performance Ratios (annualized):
Return on average assets		0.70	%		(2.73	)%		(0.01	)%		0.65	%		0.91	%		0.96	%		0.86	%		1.49	%
Return on average common equity		7.22	%		(26.67	)%		(0.11	)%		6.48	%		8.80	%		9.24	%		7.92	%		13.57	%
Return on average tangible common equity ⁽¹⁾		7.22	%		(28.96	)%		(0.11	)%		7.08	%		9.61	%		10.08	%		8.65	%		14.82	%
Net interest margin		2.37	%		2.40	%		2.43	%		2.45	%		2.43	%		2.49	%		2.77	%		3.14	%
Efficiency ratio ⁽²⁾		55.4	%		191.0	%		51.1	%		48.9	%		48.8	%		47.2	%		51.6	%		42.8	%
Other Ratios:
Allowance for credit losses to total loans ⁽³⁾		1.40	%		1.33	%		1.25	%		1.08	%		1.05	%		1.00	%		1.01	%		0.97	%
Allowance for credit losses to total nonperforming loans		83	%		110	%		109	%		131	%		119	%		268	%		1,160	%		1,151	%
Nonperforming assets to total assets		1.22	%		0.88	%		0.79	%		0.57	%		0.64	%		0.28	%		0.08	%		0.08	%
Net charge-offs (recoveries) (annualized) to average total loans ⁽³⁾		0.26	%		0.11	%		1.07	%		0.60	%		0.02	%		0.29	%		0.05	%		0.05	%
Tier 1 capital (to average assets)		10.94	%		10.58	%		10.26	%		10.73	%		10.96	%		10.84	%		11.42	%		11.63	%
Total capital (to risk weighted assets)		15.74	%		15.07	%		14.87	%		14.79	%		14.54	%		14.51	%		14.74	%		14.94	%
Common equity tier 1 capital (to risk weighted assets)		14.54	%		13.92	%		13.80	%		13.90	%		13.68	%		13.55	%		13.75	%		14.03	%
Tangible common equity ratio ⁽¹⁾		10.86	%		10.35	%		10.03	%		10.12	%		10.04	%		10.21	%		10.36	%		10.18	%
Average Balances (in thousands):
Total assets	$	12,360,899		$	12,361,500		$	12,784,470		$	12,283,303		$	11,942,905		$	11,960,111		$	11,426,056		$	11,255,956
Total earning assets	$	12,072,891		$	11,953,446		$	12,365,497		$	11,837,722		$	11,532,186		$	11,546,050		$	11,004,817		$	10,829,703
Total loans ⁽³⁾	$	8,026,524		$	8,003,206		$	7,988,941		$	7,963,074		$	7,795,144		$	7,790,555		$	7,712,023		$	7,379,198
Total deposits	$	9,344,414		$	9,225,266		$	9,501,661		$	9,471,369		$	8,946,641		$	8,514,938		$	8,734,125		$	9,524,139
Total borrowings	$	1,654,736		$	1,721,283		$	1,832,947		$	1,401,917		$	1,646,179		$	2,102,507		$	1,359,463		$	411,060
Total shareholders’ equity	$	1,201,477		$	1,263,627		$	1,289,656		$	1,238,763		$	1,235,162		$	1,245,647		$	1,240,978		$	1,233,705

(1) A reconciliation of non-GAAP financial measures to the nearest GAAP measure is provided in the tables that accompany this document.
(2) Computed by dividing noninterest expense by the sum of net interest income and noninterest income.
(3) Excludes loans held for sale.

GAAP Reconciliation to Non-GAAP Financial Measures (unaudited)
(dollars in thousands, except per share data)

	September 30,			June 30,			September 30,
		2024			2024			2023
Tangible common equity
Common shareholders’ equity	$	1,225,424		$	1,169,459		$	1,215,884
Less: Intangible assets		(21	)		(129	)		(105,239	)
Tangible common equity	$	1,225,403		$	1,169,330		$	1,110,645

Tangible common equity ratio
Total assets	$	11,285,052		$	11,302,023		$	11,164,214
Less: Intangible assets		(21	)		(129	)		(105,239	)
Tangible assets	$	11,285,031		$	11,301,894		$	11,058,975

Tangible common equity ratio		10.86	%		10.35	%		10.04	%

Per share calculations
Book value per common share	$	40.61		$	38.75		$	40.64
Less: Intangible book value per common share		—			(0.01	)		(3.52	)
Tangible book value per common share	$	40.61		$	38.74		$	37.12

Shares outstanding at period end		30,173,200			30,180,482			29,917,982

	Three Months Ended
	September 30,			June 30,			September 30,
		2024			2024			2023
Average tangible common equity
Average common shareholders’ equity	$	1,201,477		$	1,263,627		$	1,235,162
Less: Average intangible assets		(24	)		(99,827	)		(104,639	)
Average tangible common equity	$	1,201,453		$	1,163,800		$	1,130,523

Return on average tangible common equity
Net (loss) income	$	21,815		$	(83,802	)	$	27,383
Return on average tangible common equity		7.22	%	(28.96)%				9.61	%

Net (loss) income	$	21,815		$	(83,802	)	$	27,383
Add back of goodwill impairment	$	—			104,168			—
Operating net (loss) income (Non-GAAP)		21,815			20,366			27,383
Operating Return on average tangible common equity (Non-GAAP)		7.22	%		7.04	%		9.61	%

Efficiency ratio
Net interest income	$	71,843		$	71,353		$	70,719
Noninterest income		6,951			5,332			6,347
Operating revenue	$	78,794		$	76,685		$	77,066
Noninterest expense	$	43,614		$	146,491		$	37,633
Add back of goodwill impairment		—			(104,168	)		—
Operating Noninterest expense (Non-GAAP)		43,614			42,323			37,633

Efficiency ratio		55.35	%		191.03	%		48.83	%
Operating Efficiency ratio (Non-GAAP)		55.35	%		55.19	%		48.83	%

Pre-provision net revenue
Net interest income	$	71,843		$	71,353		$	70,719
Noninterest income		6,951			5,332			6,347
Less: Noninterest expense		(43,614	)		(146,491	)		(37,633	)
Pre-provision net revenue	$	35,180		$	(69,806	)	$	39,433

Pre-provision net revenue	$	35,180		$	(69,806	)	$	39,433
Add back of goodwill impairment	$	—		$	104,168		$	—
Operating Pre-provision net revenue (Non-GAAP)	$	35,180		$	34,362		$	39,433

Tangible common equity, tangible common equity to tangible assets (the “tangible common equity ratio”), tangible book value per common share, average tangible common equity, annualized return on average tangible common equity, and the operating annualized return on average tangible common equity are non-GAAP financial measures derived from GAAP based amounts. The Company calculates the tangible common equity ratio by excluding the balance of intangible assets from common shareholders’ equity, or tangible common equity, and dividing by tangible assets. The Company calculates tangible book value per common share by dividing tangible common equity by common shares outstanding, as compared to book value per common share, which the Company calculates by dividing common shareholders’ equity by common shares outstanding. The Company calculates the annualized return on average tangible common equity ratio by dividing net income available to common shareholders by average tangible common equity, which is calculated by excluding the average balance of intangible assets from the average common shareholders’ equity. The Company calculates the operating annualized return on average tangible common equity ratio by dividing operating net income available to common shareholders, which adds back the goodwill impairment, by average tangible common equity, which is calculated by excluding the average balance of intangible assets from the average common shareholders’ equity. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company. Further related to other measures, tangible equity is a measure that is consistent with the calculation of capital for bank regulatory purposes, which excludes intangible assets from the calculation of risk based ratios, and as such is useful for investors, regulators, management and others to evaluate capital adequacy and to compare against other financial institutions.

The efficiency ratio is a non-GAAP measure calculated by dividing GAAP noninterest expense by the sum of GAAP net interest income and GAAP noninterest income. The efficiency ratio measures a bank’s overhead as a percentage of its revenue. The Company believes that reporting the non-GAAP efficiency ratio more closely measures its effectiveness of controlling operational activities. Further, the operating efficiency ratio is measured by dividing non-GAAP noninterest expense, which excludes the goodwill impairment, by the sum of GAAP net interest income and GAAP noninterest income. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company.

Pre-provision net revenue is a non-GAAP financial measure calculated by subtracting noninterest expenses from the sum of net interest income and noninterest income. The Company considers this information important to shareholders because it illustrates revenue excluding the impact of provisions and reversals to the allowance for credit losses on loans. Operating pre-provision net revenue is a non-GAAP financial measure calculated by subtracting noninterest expenses with the impact of the goodwill impairment added back from the sum of net interest income and noninterest income. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company.

	Three Months Ended
	September 30,		June 30,			September 30,
		2024		2024			2023
Net (loss) income	$	21,815	$	(83,802	)	$	27,383
Add back of goodwill impairment		—		104,168			—
Operating Net (loss) income (Non-GAAP)	$	21,815	$	20,366		$	27,383

(Loss) earnings per share (diluted)⁴	$	0.72	$	(2.78	)	$	0.91
Add back of goodwill impairment per share (diluted)		—		3.45			—
Operating earnings (loss) per share (diluted) (Non-GAAP)	$	0.72	$	0.67		$	0.91

Operating net (loss) income and operating (loss) earnings per share (diluted) are non-GAAP financial measures derived from GAAP based amounts. The Company calculates operating net (loss) income by excluding from net (loss) income the one-time goodwill impairment of $104.2 million. During the second quarter of 2024, the Company performed an annual impairment test as a result of management’s evaluation of current economic conditions, and concluded that goodwill had become impaired, which resulted in an impairment charge of $104.2 million to reduce the carrying value of the Company’s goodwill to zero. The Company calculates operating earnings (loss) per share (diluted) by dividing the one-time goodwill impairment of $104.2 million by the weighted average shares outstanding (diluted) for the three and six months ended June 30, 2024. The Company considers this information important to shareholders because operating net (loss) income and operating (loss) earnings per share (diluted) provides investors insight into how Company earnings changed exclusive of the impairment charge to allow investors to better compare the Company’s performance against historical periods. The table above provides a reconciliation of operating net income (loss) and operating earnings (loss) per share (diluted) to the nearest GAAP measure.

_______________¹ A reconciliation of non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP Reconciliation to Non-GAAP Financial Measure that accompany this document.
²Calculated as the ACL attributable to loans collateralized by performing office properties as a percentage of total loans.
³ A reconciliation of non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP Reconciliation to Non-GAAP Financial Measure that accompany this document.
⁴ For periods ended with a net loss, anti-dilutive financial instruments have been excluded from the calculation of GAAP diluted EPS. Operating diluted EPS calculations include the impact of outstanding equity-based awards for all periods.

EAGLE BANCORP, INC.
CONTACT:
Eric R. Newell
240.497.1796

For the September 30, 2024 Earnings Presentation, click http://ml.globenewswire.com/Resource/Download/d55e221f-6ef9-45bd-8784-011bf19dce58

The MIL Network –

January 25, 2025

MIL-OSI USA: Hold DOJ Accountable for Failure to Prosecute Noncitizen Voter Registration

US Senate News:

Source: United States Senator for Wisconsin Ron Johnson

It should be obvious to everyone — even Democrats — that we should prevent illegal immigrants from voting. Unfortunately, most Democrats in Congress do not agree. I was happy to cosponsor the SAVE Act in the Senate. This legislation aimed to secure our elections by requiring proof of citizenship to vote. It passed in the House, but not the Senate.

On October 2, I joined Republican colleagues in a letter to U.S. Attorney General Merrick Garland exposing the Department of Justice’s (DOJ) failure to prevent noncitizens from registering to vote in America’s federal elections and its refusal to prosecute those who have done so.

We need more information about the incidence of noncitizens registering to vote, and steps that the DOJ is taking to deal with the issue and secure U.S. elections.

In recent weeks, I have written two op-eds highlighting my concerns with election integrity. I urge you to read both.

The Daily Caller: FBI Ignoring Real Threats To Election Integrity

The Federalist: Democrat-Controlled States Refuse To Clean Voter Rolls And Fix Election Problems

Under the Biden-Harris administration, more than 500,000 unaccompanied migrant children have crossed the southwest border without a parent or guardian to provide care.

Last month, I joined a letter to President Biden and Vice President Harris calling out abuses in their Unaccompanied Migrant Children Program, namely the Department of Health and Human Services (HHS)’s cover-up of the crisis. HHS has failed to comply with two out of three Department of Homeland Security subpoenas and other information requests issued amid its investigation into more than 100 suspicious sponsors.

The Biden-Harris administration limited background checks for sponsors of unaccompanied children, cut back on familial DNA testing at the border, and decreased information sharing with law enforcement.

Cartel trafficking activity surged an estimated 2,500% from the Trump administration to the middle of the Biden-Harris term in 2022.

I joined another letter demanding Biden and Harris collect DNA samples from every immigrant the Department of Homeland Security (DHS) encounters, per the DNA Fingerprint Act of 2005. DHS missed three separate opportunities to gather DNA from the illegal immigrant who murdered Rachel Morin, a Maryland mother of five.

MILTON: The Milton Area Chamber of Commerce hosted a town hall at the Milton House Museum. Before the event, I took a fascinating tour of Wisconsin’s only certified Underground Railroad site which is designated a National Historic Landmark.

REESEVILLE: Caine Warehousing hosted a town hall at their Dodge County campus. It was an honor to meet the three generations of Caines who run this successful family business.

WATERTOWN: American Disposal and Lueck Recycling, another family run business, hosted a town hall at their facility. People are very concerned about open borders, the economy, and parental rights.

WATERTOWN: I always look forward to my visits to Maranatha Baptist University. I held a meeting with campus leadership and then answered questions from students, staff, and community members.

WHITEWATER: I enjoyed meeting with students at the University of Wisconsin Whitewater. When asked by a campus reporter about my main message for young people, I responded “jealously guard your freedom.”

MIL OSI USA News –

January 25, 2025

MIL-OSI USA: Brownley, Schneider, Kildee Introduce Legislation to Expand Sustainable Aviation Fuel Production and Reduce Carbon Emissions

Source: United States House of Representatives – Julia Brownley (D-CA)

Washington, DC – Today, Congresswoman Julia Brownley (CA-26), Congressman Brad Schneider (IL-10), and Congressman Dan Kildee (MI-08) announced the introduction of the Expanding Clean Fuel Production Act, a bill that would extend the clean fuel production tax credit, also known as Section 45z, of the Inflation Reduction Act for 10 years. The Inflation Reduction Act created the clean fuel production credit (CFPC) for transportation fuel with zero or low greenhouse gas emissions, including sustainable aviation fuel (SAF). This credit currently expires at the end of 2027.

“The 45z tax credit has been critical in helping to ramp up U.S. production of sustainable aviation fuel,” said Congresswoman Brownley. “However, we need to extend the credit long-term to provide market certainty and to ensure a safe and reliable supply of SAF to meet the needs of the aviation industry. I appreciate Congressman Schneider and Congressman Kildee’s partnership on this bill, and I look forward to working with stakeholders in the environmental, energy, and aviation community to extend the 45z credit and promote U.S. investment in this critical domestic fuel source.”

“I’m proud to introduce this legislation with Reps. Kildee and Brownley to extend the SAF credit, boost production of clean fuels and position the U.S. as a global leader in production and use of sustainable fuels,” said Congressman Schneider. “A ten-year extension would allow for sustained investment in production to accelerate the transition to cleaner fuels and to significantly cut greenhouse gas emissions from the aviation industry, in particular. We are already seeing the impact of the Inflation Reduction Act’s investments on U.S. production of sustainable fuels.”

“In my home state of Michigan, we have already seen the harmful effects of climate change on our Great Lakes,” said Congressman Kildee. “This legislation will help us continue producing clean energy and fuels here in the United States, to help create good paying jobs, provide new markets to Michigan farmers, and reduce carbon emissions from airplanes and other vehicles.”

“As the leading U.S. airline in SAF use and advocacy, we know that extending incentives for U.S. SAF producers by a full ten years is a necessary first step to grow the industry,” said Lauren Riley, Chief Sustainability Officer for United Airlines. “The continued leadership of Representatives Schneider, Kildee and Brownley is helping to assure U.S. competitiveness in SAF and clean fuels, while boosting U.S. agricultural producers and rural communities. We look forward to working with Representatives Schneider, Kildee and Brownley and their colleagues on both sides of the aisle to ensure that this tax credit is both extended and enhanced in a way that will maximize investment in SAF and other clean, low-carbon fuels.”

“Sustainable Aviation Fuel (SAF) is the single most important method to decarbonize aviation in the coming decades, and LanzaJet applauds the leadership of Representatives Schneider, Kildee, and Brownley in advancing SAF tax incentives that will catalyze domestic investment in this critical sector,” said Jimmy Samartzis, LanzaJet CEO. “As the original sponsors of the IRA’s SAF Blender’s Tax Credit via the Sustainable Skies Act, Reps Schneider, Kildee, and Brownley continue to lay the foundation for a vibrant U.S. SAF industry by providing for ten years of policy certainty for domestic SAF producers via this important bill. We look forward to continuing to work with Representatives Schneider, Kildee, and Brownley to develop policy proposals that will both extend and enhance the IRA’s short term SAF tax credits and enable achievement of the goals of the SAF Grand Challenge.”

“We applaud Representative Schneider and his colleagues Representatives Kildee and Brownley for their efforts to extend incentives for SAF,” said Alison Graab, Executive Director of the SAF Coalition. “We look forward to working with them on both an extension as well as enhancing and strengthening the incentive. Advancing sustainable aviation fuel demonstrates a clear commitment to the environmental and economic promises SAF holds, and incentives that are durable and attract investment are essential to unlocking that potential and driving the progress needed to sustain and grow the SAF industry.”

The Inflation Reduction Act (IRA) of 2022 enacted a tax credit for the production of SAF, aiming to halve carbon emissions in the aviation sector. The credit was inspired by a SAF credit included in the Sustainable Skies Act, which Congresswoman Brownley authored with Representatives Schneider and Kildee in 2021.

###

Issues: 118th Congress, Climate Crisis, Energy and Environment, Transportation and Infrastructure

MIL OSI USA News –

January 25, 2025

MIL-OSI New Zealand: Leave Denniston relics where they lie

Source: Department of Conservation

Date: 24 October 2024

The call comes amid reports of people illegally digging and moving material at the historic site.

Senior Heritage Advisor Tom Barker says that people travel to Denniston to learn about the history there, and the historic artifacts and relics are all part of the experience. For many decades, Denniston was the largest producing coal mining area in New Zealand, staffed by pioneering people who braved the hilltop and windswept location.

“The mining history of Denniston is among the premier attractions in our district. It’s an incredible piece of West Coast history that we should be proud to share and must preserve for all visitors to observe and learn about.

“Denniston is a legally protected Category 1 Historic Place under the Heritage New Zealand Pouhere Taonga Act 2014. Anyone found taking or disturbing material there risks a fine of up to $300,000.

“Around 20,000 people visit Denniston each year to marvel at the breathtaking brakehead, ponder on the harsh reality for the inhabitants of the once bustling coal mining township, and take in spectacular coastal views”

Tom says in the past it was common for local people to remove building material from Denniston and other abandoned sites in the district.

“A lot of those materials and whole houses were moved to Westport and other Buller settlements off the hill. However, we are in a different time now. Taking items from Denniston is stealing from our West Coast heritage and tourism offering.”

Contact

For media enquiries contact:

Email: media@doc.govt.nz

MIL OSI New Zealand News –

January 25, 2025

MIL-OSI Security: Long Island Child Therapist Charged with Distribution of Child Pornography

Source: Office of United States Attorneys

Earlier today, Renee Hoberman, a licensed social worker, was arrested on charges of distribution of child pornography. The defendant was arraigned this afternoon at the federal courthouse in Central Islip before United States Magistrate Judge Arlene R. Lindsay on a complaint and ordered detained.

Breon Peace, United States Attorney for the Eastern District of New York, and William S. Walker, Special Agent in Charge, Homeland Security Investigations, New York (HSI) and Patrick Ryder, Commissioner, Nassau County Police Department announced the charges.

“As alleged, Hoberman distributed heinous and disturbing child pornography, including videos showing infants being restrained and raped. Additionally, while posing as a man, Hoberman, who is a therapist serving children, claimed to have produced child pornography and offered others the opportunity to sexually abuse children,” stated United States Attorney Peace. “Our investigation into Hoberman is ongoing, and we urge anyone with information to contact HSI’s tip line. Together with our law enforcement partners, we will relentlessly pursue predators who victimize children and prosecute them to the fullest extent of the law.”

“This case is an example of the vital work our investigators do every day in cooperation with our dedicated partners in federal law enforcement,” said Nassau County Police Commissioner Patrick Ryder. “The hard working and diligent detectives of the Nassau County Police Department will continue to work tirelessly to protect the innocent, and we will never stop fighting to bring those who victimize children to justice.”

As set forth in the complaint, between June 2024 and October 2024, Hoberman allegedly used social media messaging apps to upload digital videos depicting one or more minors engaging in sexually explicit conduct, including several videos of infants six months to one year of age being physically restrained and raped by an adult male, as the infants cried and frantically screamed for the duration of the videos. As recently as on or about October 16, 2024, the defendant uploaded child pornography and engaged in multiple chats concerning child sexual molestation. In these chats, the defendant, purporting to be a man, claimed to have multiple minor children and stated that “he” would have anal sex with the children and would punish them by getting naked, stripping the children naked, and spanking them while the other children watched. The defendant invited another user to visit “his” family in New York to spank the children. In addition, the defendant described sexually abusing “his” children and their friends, and then sent two videos containing child sexual abuse material, claiming that these videos depicted the user’s own children.

According to public records and as alleged in the complaint, Hoberman works as a therapist with an organization based in Melville, New York and serves children aged 0-17.

Anyone with information about sexual exploitation by the defendant is asked to contact HSI at HSI’s tip line: (866) 347-2423 or via HSI’s website: https://www.ice.gov/webform/ice-tip-form.

The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Hoberman faces a mandatory minimum sentence of five years in prison.

This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

The government’s case is being handled by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorneys James R. Simmons and Russell Noble are in charge of the prosecution.

The Defendant:

Renee Hoberman, also known as “Rina Hoberman”
Age: 36
Plainview, New York

E.D.N.Y. Docket No. 24-MJ-588

MIL Security OSI –

January 25, 2025

Category: housing

Hassan Zeineddine

Khadija

Um Mohammad

Hala

Shams Al Mahmoud, Marimar, and Kazem

Najah Ashour

Beyond survival: Helping children and adults cope with the traumas of war in Lebanon

MSF urges for protection of civilians and medical staff amid Israeli bombardment in Lebanon

Israeli bombardment in Lebanon is causing mass displacement and urgent humanitarian needs

‘A mushroom cloud igniting the sky’

‘Only a very slight health hazard’

‘In our blood’

The scramble for the Pacific

‘No longer angry’

Radioactive colonialism

Historic treaties

The question of reparations

Updates to this page

Citing severe damages to Central and Eastern Oregon, lawmakers’ letter asks President Biden “to swiftly provide the federal resources for our communities to recover and rebuild.”

H-2B visas help employers fill temporary, seasonal positions

Contact