Category: housing

  • MIL-Evening Report: Abortion is back in the headlines in Australia. The debates in the United States tell us why

    Source: The Conversation (Au and NZ) – By Prudence Flowers, Senior Lecturer in US History, College of Humanities, Arts, and Social Sciences, Flinders University

    The 2022 news that the US Supreme Court had overturned Roe v Wade and ended the constitutional right to abortion sent shockwaves around the world.

    For Australian opponents of abortion who had long looked to the US for leadership and inspiration, it prompted rejoicing.

    As a leader of Cherish Life Queensland put it, “if the USA can do it, with God’s help, so can we”.

    In late 2024, the abortion issue has suddenly erupted in Queensland and South Australia. A subset of local conservatives, energised by the fall of Roe v Wade and the example of Donald Trump, are embracing the divisive “culture war” tactics that dominate US politics.

    Abortion and Australian politics in 2024

    In the 2020 Queensland election, the Liberal National Party (LNP) has promised a “review” of the legislation that had decriminalised abortion two years prior. However, the party has spent most of the 2024 campaign studiously avoiding the issue.

    That is, until Robbie Katter MP, of Katter’s Australia Party, threw a spanner in the works.

    On October 8, Katter announced that if the LNP won, as was widely predicted, he would immediately introduce a private member’s bill to repeal the state abortion law.

    LNP leader David Crisafulli, who voted against decriminalisation, insists that changing the law is “not part of our plan”.

    However, last week Crisafulli was asked 132 times about abortion and the issue of conscience votes and refused to provide a clear answer.

    In the final leaders’ debate on Tuesday night, Crisafulli finally said there would be no change to abortion law and he was “pro-choice”.

    However, that is unlikely to be the end of the issue – opposition to abortion runs deep in the LNP.

    Party policy in 2018 was that abortion should remain a criminal offence. Despite being a conscience vote, the three LNP members who voted for decriminalisation were threatened with “punishment” afterwards.

    In 2024, several new antiabortion candidates are running for the LNP. Former Liberal senator Amanda Stoker is a particularly high-profile one, having repeatedly addressed the Brisbane March for Life rally.

    The furore over the future of reproductive rights in Queensland occurred in parallel with controversy over anti-abortion legislation introduced by state Liberal MP Ben Hood in South Australia.

    His bill required anyone needing to end a pregnancy after 28 weeks to have labour induced and for the baby to be delivered alive, regardless of the health outcomes for the pregnant person or infant.

    Peak medical and legal bodies condemned the bill, which critics described as a “forced birth” measure. It was narrowly defeated in the upper house on October 16.

    Federally, Senator Jacinta Price has also called for abortion to be back on the “national agenda” and condemned abortion after the first 12 weeks of pregnancy. Her stance is out of step with abortion law in all Australian jurisdictions.




    Read more:
    Abortion is now legal across Australia – but it’s still hard to access. Doctors are both the problem and the solution


    Public and party opinion

    This sudden uptick in anti-abortion politics does not reflect Australian attitudes.

    A 2024 poll found 75% of Queenslanders agreed that decriminalising abortion had been the right action.

    This view was shared across partisan and geographical lines, held by 73% of LNP voters and 78% of regional Queenslanders.

    Historian Cassandra Byrnes demonstrates that these pro-choice attitudes have deep roots. A majority of the public opposed the police raids on abortion clinics that occurred under Nationals premier Sir Joh Bjelke-Petersen.

    A 2020 poll of South Australians found 80% supported decriminalisation. And 63% considered that later abortion should be available “when the woman and her healthcare team decide it is necessary”.

    The LNP’s hostility towards decriminalisation was also markedly different from the approach in other states.

    Notably, in both New South Wales and South Australia, prominent Liberals, including premiers, voted to decriminalise abortion.

    In South Australia, two senior Liberals, Minister for Human Services Michelle Lensink and Attorney-General Vickie Chapman, led the cross-party group that achieved law reform.

    Importing the culture wars

    When Australian states and territories debated decriminalisation, anti-abortion opponents relied heavily on tactics, pseudoscientific evidence and outright misinformation that first emerged in the United States.




    Read more:
    How the US right-to-life movement is influencing the abortion debate in Australia


    For example, in 2008, one Victorian group controversially distributed graphic photographs of aborted fetuses, and American diagrams and descriptions of later abortion procedures.

    Now, as Australian conservatives seek to reopen the debate over abortion, American influence underpins the rhetoric and framing.

    For decades, opponents of abortion in the United States focused on chipping away abortion rights and eroding access. They never accepted that abortion was health care.

    Since 1995, their central focus was also on the statistically rare abortions performed after 20 weeks gestation. This focus has been imported wholesale into Australia.

    The anti-abortion activism surrounding Hood’s bill reflects these approaches. Opponents of abortions waged a broad and stigmatising campaign against abortion after 22 weeks and six days, the legal point in South Australia after which two medical practitioners must approve an abortion.

    Hood’s bill is best interpreted as an anti-abortion “messaging” exercise rather than a genuine attempt to amend the law.

    For decades, this was the default tactic motivating Republicans when they introduced extreme, unenforceable bills. The purpose was not legislative change but to amplify their rhetoric and arguments and energise conservative voters.

    Opposition to abortion is also part of a broader rightward shift taking place among some state Liberal branches.

    In South Australia, conservatives launched a power grab after abortion was decriminalised in 2021. This included a significant recruitment drive among Pentecostals.

    A similar recruiting focus on conservative religious faith groups has also occurred in Victoria, triggered by LGBTQI+ victories.

    In South Australia, the party takeover is openly led by Senator Alex Antic. He made a name for himself through his hostility to COVID-19 vaccines and his opposition to trans and abortion rights.

    Antic praises Trump and seeks out connections with conservatives who are or have been close to him, including Steven Bannon and Donald Trump junior.

    Meanwhile, in Queensland, Crisafulli’s desperate efforts not to be pinned down on abortion offer a local version of themes in the 2024 presidential election.

    Because Republicans have experienced significant voter backlash over abortion, Trump has charted an uneasy course.

    Trump claims sole responsibility for the end of Roe v Wade while simultaneously denying any connection to the abortion bans now in place in many states.

    Like Crisafulli, Trump has been unclear about what his victory would mean for reproductive rights.

    Political commentator Mark Kenny concludes that an “ideological battle” is unfolding among Australian Liberals.

    As in the United States, unwavering hostility to abortion is proving central to these politicians as a way to signify their priorities to voters and define themselves against others in their party.

    Prudence Flowers has received funding from the South Australian Department of Human Services. She is a member of the South Australian Abortion Action Coalition.

    ref. Abortion is back in the headlines in Australia. The debates in the United States tell us why – https://theconversation.com/abortion-is-back-in-the-headlines-in-australia-the-debates-in-the-united-states-tell-us-why-241778

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI USA: Murphy To Cosponsor Legislation To Hold Georgian Officials Accountable For Corruption, Human Rights Abuses, And Anti-Democratic Efforts

    US Senate News:

    Source: United States Senator for Connecticut – Chris Murphy

    October 23, 2024

    WASHINGTON–U.S. Senator Chris Murphy (D-Conn.), a member of the U.S. Senate Foreign Relations Committee, on Tuesday announced his intention to join U.S. Senators Jeanne Shaheen (D-N.H.) and Jim Risch (R-Id.) in introducing the Georgian People’s Act, legislation that would hold Georgian government officials and individuals responsible for corruption, human rights abuses, and efforts to advance the foreign influence law or facilitate its passage. 
    The legislation is cosponsored by U.S. Senators Ben Cardin (D-Md.), Pete Ricketts (R-Neb.), Chris Coons (D-Del.) and Lindsey Graham (R-S.C.), and U.S. Senators Thom Tillis (R-N.C.), Mitt Romney (R-Utah), Jeff Merkley (D-Ore.), John Cornyn (R-Texas), Dan Sullivan (R-Ark.), Angus King (I-Maine), Todd Young (R-Ind.), Sheldon Whitehouse (D-R.I.) and George Helmy (D-N.J.) have also requested to join the Senators’ Georgian People’s Act when the Senate reconvenes in November.
    “Russia’s use of corruption, propaganda and violence doesn’t just threaten Georgia’s future as a strong, independent nation—it puts the entire international order at risk of collapse,” said Murphy. “As Putin and his cronies try to undermine Georgia’s democracy and impose a government that will do their bidding, this bipartisan legislation makes clear the United States stands firmly with the Georgian people who overwhelmingly support democracy and a future in Europe.”
    “I’m pleased that a number of my Senate colleagues recognize the urgency of the situation in Georgia and have agreed to cosponsor the Georgian People’s Act in the U.S. Senate,” said Shaheen. “Together, we’re sending a strong message that there is robust bipartisan support for our legislation and our posture towards Georgia and support for the Georgian people’s Euro-Atlantic aspirations will remain unchanged no matter which party controls Washington.” 
    “This bill sends a strong message from Congress that the U.S. is united behind the Georgian people as they pursue a future in the transatlantic community,” said Risch. “We recognize the Georgian people’s desire for European integration and are committed to making U.S. policy that supports the opportunity for them achieve it.” 
    “The Georgian government’s embrace of pro-Russian policies and away from a Euro-Atlantic future is concerning,” said Tillis. “I am proud to co-sponsor this bill to hold the Georgian government officials accountable and reaffirm the U.S. support for the Georgian people.” 
    “The Georgian government’s shift towards Russia’s authoritarian regime and away from its European partners is alarming,” said Cornyn. “This legislation would hold Georgia’s corrupt leaders accountable and signal to the Georgian people that the U.S. stands with them in their pursuit of a Euro-Atlantic future.” 
    “While the Georgian people have demonstrated overwhelming support for a democratic future, their government has become increasingly under Russia’s influence—most recently passing a law to restrict civil society and free speech,” said Romney. “Our legislation would hold Georgian government officials responsible for corruption and demonstrate the United States’ commitment to the Georgian people’s fight for democracy and rule of law.” 
    “A free, secure, sovereign Georgia, aligned with the US and its allies is in the national interest, both of Georgia and the United States,” said Sullivan. “Georgia’s apparent drift back into Russia’s orbit is bad for the stability of the region. No one understands this better than the Georgian people themselves. According to polling from the International Republican Institute, 90% of Georgians want their nation to be part of the Western, free World, not the Russian World.” 
    “The United States stands with the Georgian people and their pursuit of a Euro-Atlantic future. The Georgian government’s recent efforts to align with Russia reject the desires of Georgians and pose a significant threat. Our bipartisan bill would hold Georgian government officials accountable for corruption and express our support for the transatlantic aspirations of the Georgian people,” said Young. 
    Full text of the legislation is available HERE. 

    MIL OSI USA News

  • MIL-OSI USA: Klobuchar, Smith Working to Secure Funding for Projects for St. Cloud and Surrounding Communities in Year End Budget

    US Senate News:

    Source: United States Senator for Minnesota Amy Klobuchar

    The Senate and House Appropriations Committees Advanced Funding Bills with Resources for Minnesota Projects Secured and Backed by Klobuchar, Smith

    WASHINGTON – U.S. Senators Amy Klobuchar (D-MN) and Tina Smith (D-MN) announced that the Fiscal Year 2025 federal budget bills that passed the Senate and House Appropriations Committees includes projects to benefit St. Cloud and surrounding communities. These projects would invest in public infrastructure, emergency services, and workforce development. On September 26, the Senate and House agreed to avoid a shutdown and continue to negotiate on a final budget proposal. Klobuchar and Smith will fight to ensure these projects are included in that final year-end bill.

    “From upgrading critical infrastructure to investing first responders, we worked with local leaders to secure resources important to St. Cloud and surrounding communities” said Klobuchar. “Once completed, these projects will improve quality of life for Minnesotans.”

    “Those closest to an issue have the best solutions, and these projects were developed and designed to fit the specific needs of St. Cloud,” said Smith. “From expanding opportunities for students at SCTCC or upgrading our water infrastructure, to renovating the Cold Spring Fire Station, fixing Town Line and Heatherwood Roads, or helping Habitat for Humanity build more affordable housing, these projects will help strengthen our communities and I look forward to working with Senator Klobuchar to get them passed and signed into law.” 

    Klobuchar and Smith have successfully secured the following projects in the Appropriations Committee-approved bill:

    • $1,136,000 for the St. Cloud Technical & Community College to develop an Aircraft Maintenance Technician Certified Instructional Program Expansion.
    • $2,000,000 for the City of Big Lake’s Wastewater Treatment Plant Improvements Project. Klobuchar and Smith requested the funding along with U.S. Representative Tom Emmer (R-MN).
    • $7,000,000 for North Central Watab Watershed Flood Mitigation projects. Klobuchar and Smith requested the funding along with U.S. Representative Tom Emmer (R-MN).
    • $7,000,000 for the Heatherwood Road Infrastructure and Multi-Modal Improvements Project in St. Cloud. The project extends a major regional roadway and trail, replaces an out of service bridge, and installs new water and sewer infrastructure. Klobuchar and Smith requested the funding along with U.S. Representative Tom Emmer (R-MN).
    • $2,000,000 for renovations at the Cold Spring Fire Station. Klobuchar and Smith requested the funding along with U.S. Representative Michelle Fischbach (R-MN).
    • $1,500,000 for the reconstruction of Town Line Road to meet current design standards for traffic levels, including six-foot paved shoulders, right turn lanes and safer roadsides and improving structural capacity to 10-ton axle weights. Klobuchar and Smith requested the funding along with U.S. Representative Tom Emmer (R-MN).
    • $920,000 for the City of Lake Henry for wastewater infrastructure improvements. Klobuchar and Smith requested the funding along with U.S. Representative Michelle Fischbach (R-MN).
    • $750,000 for the City of Princeton’s Mille Lacs County Joint Radio Simulcast Equipment Project.
    • $420,000 for Central MN Habitat for Humanity to build infrastructure for affordable housing projects. 

    Klobuchar and Smith have been actively involved in securing this federal funding for projects benefiting communities across the state through a process called “Congressionally Directed Spending” (CDS). During the CDS process, Klobuchar and Smith have considered project proposals and advocated for funding in close coordination with leaders from across the state.

    The projects are expected to pass the Senate over the next several months.

    MIL OSI USA News

  • MIL-OSI USA: Klobuchar, Smith Working to Secure Funding for Projects for Pine County in Year End Budget

    US Senate News:

    Source: United States Senator for Minnesota Amy Klobuchar

    The Senate and House Appropriations Committees Advanced Funding Bills with Resources for Minnesota Projects Secured and Backed by Klobuchar, Smith

    WASHINGTON – U.S. Senators Amy Klobuchar (D-MN) and Tina Smith (D-MN) announced that the Fiscal Year 2025 federal budget bills that passed the Senate and House Appropriations Committees include projects to benefit Pine County. These projects would invest in public water infrastructure and workforce housing. On September 26, the Senate and House agreed to avoid a shutdown and continue to negotiate on a final budget proposal. Klobuchar and Smith will fight to ensure these projects are included in that final year-end bill.  

    “From upgrading critical water infrastructure in Pine City to investing in workforce housing in Sandstone, we worked with local leaders to secure resources important to Pine County,” said Klobuchar. “Once completed, these projects will improve quality of life for Minnesotans.”

    “Those closest to an issue have the best solutions, and these projects were developed and designed to fit the specific needs of Pine County,” said Smith. “From updating Pine City’s wastewater treatment system to redeveloping the Historic Sandstone School into affordable workforce housing, these projects will help strengthen our communities and I look forward to working with Senator Klobuchar to get them passed and signed into law.”

    Klobuchar and Smith have successfully secured the following projects in the Appropriations Committee-approved bill:

    • $750,000 for Pine City’s Wastewater Treatment Pond System Upgrade Project. Klobuchar and Smith requested the funding along with U.S. Representative Pete Stauber (R-MN).
    • $850,000 for the Sandstone School Workforce Housing Project to develop 31 units of workforce housing. 

    Klobuchar and Smith have been actively involved in securing this federal funding for projects benefiting communities across the state through a process called “Congressionally Directed Spending” (CDS). During the CDS process, Klobuchar and Smith have considered project proposals and advocated for funding in close coordination with leaders from across the state.

    The projects are expected to pass the Senate over the next several months.

    MIL OSI USA News

  • MIL-OSI USA: Congressman DeSaulnier to Present Federal Funding to Benefit Transit in Livermore and Community Safety in Dublin on Tuesday, October 29th

    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 federal funding to improve transit in Livermore and public safety in Dublin on Tuesday, October 29th. 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.

    These events are 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.

    First Event (Transit)
    TIME: 
    11:00 a.m. – 11:30 a.m. PT
    WHERE: 875 Atlantis St., Livermore, CA 94551
    WHAT: Congressman DeSaulnier will present funding he and Congressman Eric Swalwell (CA-14) secured for the Livermore Amador Valley Transit Authority (LAVTA) to add an extra hydrogen fueling tank to support their entire fleet of zero-emission buses.

    WHO:

    U.S. Congressman Mark DeSaulnier

    LAVTA Executive Director, Christy Wegener

    LAVTA Board of Directors Chair, Evan Branning (City of Livermore) 

    Alameda County Supervisor, District 1, David Haubert

    Mayor of Dublin, Michael McCorriston

    Mayor of Pleasanton, Karla Brown

    Second Event (Public Safety)
    TIME:
    12:00 p.m. – 12:30 p.m. PT

    WHERE:
    Dublin City Hall – 100 Civic Plaza, Dublin, CA 94568

    WHAT: Congressman DeSaulnier will present funding he secured to the City of Dublin to increase community safety through purchase and installation of situational awareness cameras near public parks and schools.

    WHO:

    U.S. Congressman Mark DeSaulnier

    Mayor of Dublin, Michael McCorriston

    Vice Mayor of Dublin, Sherry Hu

    Dublin Councilmember, Jean Josey

    Dublin Councilmember, Kashef Qaadri

    Dublin Councilmember, Janine Thalblum

    Dublin Police Chief, Nat Schmidt

    Dublin City Manager, Colleen Tribby

    Superintendent of Dublin Unified School District, Chris Funk

    MIL OSI USA News

  • MIL-OSI USA: Brownley, Casten Introduce Legislation to Inform Consumers with Carbon Footprint Labels for Food Products

    Source: United States House of Representatives – Julia Brownley (D-CA)

  • MIL-OSI USA: Media Advisory: Rep. Díaz-Balart to Honor Brave First Responders in Ave Maria

    Source: United States House of Representatives – Congressman Mario Diaz-Balart (25th District of FLORIDA)

    Ave Maria, FL – Tomorrow, Thursday, October 24, Congressman Mario Díaz-Balart (FL-26) will be in Ave Maria and is pleased to invite members of the media to a special event honoring the courageous and selfless efforts of the Collier County Sheriff’s Office, the Immokalee Fire Control District, and the Collier County Emergency Medical Services in keeping our community safe. The event will recognize the heroic actions of all the brave first responders who saved Manuel Milanés Pizonero, an outstanding resident of Ave Maria, Florida, and brought to justice the suspect who threatened to kill a mother and her four children.

    Event Details:

    WHO:

    Congressman Mario Díaz-Balart (FL-26)

    Sheriff Kevin Rambosk, Collier County

    Fire Chief Michael J. Choate, Immokalee Fire Control District

    Division Chief Tony Camps, Collier County Emergency Medical Services

    First responders from the Collier County Sheriff’s Office

    First responders from the Immokalee Fire Control District

    WHEN:

    Thursday, October 24, 2024

    3:30 p.m. ET

    WHERE:

    Immokalee Fire Control District

    5368 Useppa Drive

    Ave Maria, FL 34142

    All interested credentialed media must RSVP to Andrea.Morales@mail.house.go

    MIL OSI USA News

  • MIL-OSI Asia-Pac: Union Minister Shri Rajiv Ranjan Singh set to launch Pandemic Fund Project and 21st Livestock Census Operation on 25th October 2024

    Source: Government of India

    Union Minister Shri Rajiv Ranjan Singh set to launch Pandemic Fund Project and 21st Livestock Census Operation on 25th October 2024

    One Health approach: $25 Million Pandemic Fund focuses on animal health security

    Historic 21st Livestock Census to Capture Data on Pastoralist Holdings and Gender Roles in Livestock Rearing

    Posted On: 23 OCT 2024 9:26PM by PIB Delhi

    The Union Minister of Fisheries, Animal Husbandry, and Dairying, Shri Rajiv Ranjan Singh alias Lalan Singh will launch two pivotal initiatives aimed at strengthening the animal health infrastructure in India: the Pandemic Fund Project on “Animal Health Security Strengthening in India for Pandemic Preparedness and Response” and the 21st Livestock Census operation. The launch will take place on 25th October 2024 at 10:00 AM at Hotel Leela Ambience Convention, Shahdara, New Delhi.

    The event will also be graced by the Ministers of State for Fisheries, Animal Husbandry & Dairying, Shri Prof. S.P. Singh Baghel and Shri George Kurian serving as Guests of Honour. The event will also see the participation of distinguished guests including Shri Amitabh Kant, G20 Sherpa; Prof. Dr. V K Paul, Member Health, NITI Aayog; Ms. Alka Upadhyaya, Secretary, Department of Animal Husbandry and Dairying; and Mr. Punya Salila Srivastava, Secretary, Health & Family Welfare.

    Pandemic Fund Project

    The Pandemic Fund, established under Indonesia’s G20 Presidency, aims to finance critical investments that strengthen pandemic prevention, preparedness, and response (PPR) capacities, with a focus on low- and middle-income countries. India’s $25 million proposal, approved under the Fund’s first call, focuses on animal health security—a crucial component of pandemic preparedness.

    This event will highlight the importance of integrating a One Health approach into pandemic response efforts. Five of the six recent public health emergencies declared by the World Health Organization (WHO) have had their origins in animals, further emphasizing that strengthening animal health security is key to reducing zoonotic risks and safeguarding both human and animal populations from future pandemics.

    The “Animal Health Security Strengthening in India for Pandemic Preparedness and Response” project is designed to reduce the risk of zoonotic diseases that can potentially spread from animals (both domestic and wildlife) to humans. With pandemic threats looming, this project will play a pivotal role in fortifying India’s animal health infrastructure, ensuring the nation is better prepared for future health crises. The project will be implemented in collaboration with the Asian Development Bank (ADB) as the lead implementing entity, with support from The World Bank and the Food and Agriculture Organization (FAO). The launch of the Animal Health Security Strengthening in India project under the Pandemic Fund marks a significant step in India’s commitment to One Health and pandemic preparedness.

    21st Livestock Census Operation

    The Livestock Census (LC) is a crucial exercise that has been conducted every five years since 1919, serving as the backbone for policy formulation and the implementation of various programmes in the Animal Husbandry sector. The Census involves a comprehensive door-to-door survey that captures detailed data on domesticated animals and birds across the nation. Till date 20 Livestock censuses had been conducted and the last census was held in the year 2019.

    The rollout of 21st Livestock Census, scheduled to be conducted during September-December, 2024, will be in collaboration with State/UT Animal Husbandry and Dairying. At all India level around 1 lakh field officials who are mostly veterinarians or para-veterinarians will be involved in the enumeration process. This LC will leverage mobile technology for data collection and transmission. This advancement is expected to enhance the accuracy and efficiency of data collection across all villages and urban wards in the country.

    Data on 15 species of Livestock viz. Cattle, Buffalo, Mithun, Yak, Sheep, Goat, Pig, Camel, Horse, Ponies, Mule, Donkey, Dog, Rabbit and Elephant are covered in this census. Other than Livestock, headcount of Poultry Birds viz. Fowl, Duck, Turkey, Geese, Quail, Gini Fowl, Ostrich and Emu will also be taken from each Household/ Household Enterprises/ Non-households/Institution. This LC will capture data on 219 Indigenous breeds of 16 species recognised by ICAR-National Bureau of Animal Genetic Resources (NBAGR). Notably, this will be the first census to independently capture data on livestock holdings by pastoralists and to include information on the gender of individuals primarily involved in livestock rearing.

    In addition, the event will also feature the release of important documents aimed at strengthening animal health management in India:

    1. Standard Veterinary Treatment Guidelines: A comprehensive document that outlines best practices for veterinary care, aimed at improving the overall health and productivity of livestock.
    2. Crisis Management Plan for Animal Diseases: A critical resource that provides a framework for managing and responding to outbreaks of animal diseases, ensuring rapid containment and mitigation.

    These documents will serve as vital tools for veterinarians, policymakers, and field officials, helping to ensure timely and effective responses to animal health crises and improving disease management protocols.

    The Department of Animal Husbandry & Dairying invites all stakeholders to participate in the launch of the Pandemic Fund Project and the 21st Livestock Census Operation, both of which play an essential role in enhancing India’s preparedness against health crises and in fortifying animal health security.

    ***

    AA

    (Release ID: 2067511) Visitor Counter : 49

    MIL OSI Asia Pacific News

  • MIL-OSI: Greenway Technologies Announces Gas to Hydrogen System H-Reformer®

    Source: GlobeNewswire (MIL-OSI)

    ARLINGTON, Texas, Oct. 23, 2024 (GLOBE NEWSWIRE) — Greenway Technologies, Inc. (OTC: GWTI), (“Greenway”), is an advanced gas-to-liquids (“GTL”) and gas-to-hydrogen (“GTH”) technology development company. Greenway has developed and marketed a patented system, the G-Reformer®, that converts natural gas (methane) from various sources to a mixture of hydrogen and carbon monoxide (syngas). Continued ongoing research has developed a new version of the G-Reformer®, named the “H-Reformer®,” which converts natural gas to hydrogen and carbon dioxide. The H-Reformer® system is modular and small enough to be deployed in areas close to consumption, eliminating the cost of compressing and transporting the resultant hydrogen while separating and removing created carbon dioxide.

    Two significant changes have been made to the original G-Reformer® to make a reforming system focused on hydrogen creation rather than syngas creation. First, enhancements to the controlling software have modified the G-Reformer® to convert approximately 50% of the created carbon monoxide to carbon dioxide while also producing additional hydrogen. The H-Reformer® also includes an extension to the reforming vessel used in the G-Reformer®. This module will house the physical components needed to convert the remaining carbon monoxide to hydrogen and carbon dioxide within the reforming unit. The result is the generation of considerably more hydrogen per unit of natural gas input than the original G-Reformer® produces and high conversion of carbon monoxide to carbon dioxide. Carbon dioxide is externally separated from resultant hydrogen by commercially available processes, yielding highly pure hydrogen and liquid carbon dioxide, which will be removed, sold, or sequestered. This new reforming system is named the H-Reformer®.

    Created hydrogen will be available for use at the point of manufacture. Hydrogen compression or liquefaction costs are also eliminated for applications that do not need compressed hydrogen (e.g., electrical power generation). In cases where compressed hydrogen is required, the hydrogen can undergo the compression process at the consumption site while eliminating hydrogen transportation.

    Unlike other natural gas-to-hydrogen technologies, the Greenway reforming process does not require external heating sources, resulting in a highly efficient and lower carbon-generating process. When pipeline-quality fossil natural gas is the input, the system will make “blue hydrogen.” When renewable pipeline-quality methane is the input, the system will make “green hydrogen.” These distinctions are important for associated clean air credits, which depend on the input natural gas source and the resultant carbon’s disposition.

    The Greenway system is modular and can be scaled by adding additional H-Reformer® modules. The system produces hydrogen at an extremely low cost per unit compared to other technologies.

    Currently, Greenway is in discussions with several prospective parties interested in creating hydrogen for various potential uses.

    Notice Regarding Forward-Looking Statements:

    This news release contains “forward-looking statements,” as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this news release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the ongoing effects of the pandemic on delays and orders regarding Greenway’s proprietary gas-to-liquids system, potential business developments and future interest in our clean fuel technologies.

    Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, general economic and political conditions, the continuation of the JV withThe University of Texas at Arlington, and the ongoing impact of the pandemic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

    CONTACT:
    Robert Kevin Jones
    Greenway Technologies, Inc.
    kevin.jones@gwtechinc.com

    For more information, visit GWTI’s website: www.gwtechinc.com

    The MIL Network

  • MIL-OSI Europe: Written question – Funding instruments needed to resolve the demographic crisis – E-002124/2024

    Source: European Parliament

    16.10.2024

    Question for written answer  E-002124/2024
    to the Commission
    Rule 144
    Fredis Beleris (PPE)

    In the conclusions adopted by the European Council in June 2023, the Commission was invited to present a toolbox to support Member States in addressing demographic challenges and their impact on Europe’s competitive edge.

    Its philosophy is based on supporting parents through better paid work, ensuring access to high-quality childcare services, access to the labour market and to affordable housing.

    Unfortunately, without the required financial support, these targets cannot reverse the decline in Europe’s population (since 2015, more deaths than births have been registered on our continent). The cohesion policy and the Recovery and Resilience Facility must incorporate the demographic crisis into their priorities, with clear targeting, and must adopt policies based on long-term strategic planning.

    We need to protect our European regions by boosting their infrastructure and incentivising business activity there.

    In view of this:

    • 1.Does the Commission intend to create a special funding strand targeted at the demographic problem?
    • 2.Does it intend to use the above-mentioned resources to boost the European Regional Development Fund and the Recovery and Resilience Facility for initiatives linked to demographics?
    • 3.Does it intend to implement specific de-urbanisation measures and at the same time to focus on regional development through the creation and modernisation of infrastructure?

    Submitted: 16.10.2024

    Last updated: 23 October 2024

    MIL OSI Europe News

  • MIL-OSI Europe: JOINT MOTION FOR A RESOLUTION on the situation in Azerbaijan, violation of human rights and international law and relations with Armenia – RC-B10-0133/2024

    Source: European Parliament

    Rasa Juknevičienė, François‑Xavier Bellamy, Michael Gahler, Andrzej Halicki, David McAllister, Sebastião Bugalho, Nicolás Pascual De La Parte, Isabel Wiseler‑Lima, Daniel Caspary, Loucas Fourlas, Sandra Kalniete, Łukasz Kohut, Andrey Kovatchev, Andrius Kubilius, Miriam Lexmann, Vangelis Meimarakis, Ana Miguel Pedro, Davor Ivo Stier, Michał Szczerba
    on behalf of the PPE Group
    Yannis Maniatis, Nacho Sánchez Amor, Raphaël Glucksmann, Udo Bullmann, Matthias Ecke, Francisco Assis
    on behalf of the S&D Group
    Emmanouil Fragkos, Sebastian Tynkkynen, Assita Kanko, Marion Maréchal, Aurelijus Veryga, Geadis Geadi, Rihards Kols, Bert‑Jan Ruissen, Charlie Weimers
    on behalf of the ECR Group
    Nathalie Loiseau, Petras Auštrevičius, Helmut Brandstätter, Benoit Cassart, Olivier Chastel, Bernard Guetta, Karin Karlsbro, Ľubica Karvašová, Moritz Körner, Veronika Cifrová Ostrihoňová, Marie‑Agnes Strack‑Zimmermann, Hilde Vautmans, Lucia Yar, Dainius Žalimas
    on behalf of the Renew Group
    Sergey Lagodinsky
    on behalf of the Verts/ALE Group

    European Parliament resolution on the situation in Azerbaijan, violation of human rights and international law and relations with Armenia

    (2024/2890(RSP))

    The European Parliament,

     having regard to its previous resolutions on Azerbaijan, Armenia and the situation in Nagorno-Karabakh,

     having regard to the relevant documents and international agreements, including but not limited to the United Nations Charter, the Helsinki Final Act and the Alma-Ata Declaration of 21 December 1991,

     having regard to the European Convention on Human Rights of 1950, ratified by Azerbaijan in 2002 and to the Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment,

     having regard to the 1954 Hague Convention for the Protection of Cultural Property in the Event of Armed Conflict,

     having regard to the Partnership and Cooperation Agreement of 22 April 1996 between the European Communities and their Member States, of the one part, and the Republic of Azerbaijan, of the other part[1],

     having regard to the statements by the European External Action Service spokesperson of 29 May 2024 on the human rights situation in Azerbaijan and of 3 September 2024 on early parliamentary elections in Azerbaijan,

     having regard to Parliamentary Assembly of the Council of Europe resolution 2527 (2024) of 24 January 2024 entitled ‘Challenge, on substantive grounds, of the still unratified credentials of the parliamentary delegation of Azerbaijan’,

     having regard to the Statement of Preliminary Findings and Conclusions of the Election Observation Mission to the Early Presidential Elections held on 7 February 2024 and to the Statement of Preliminary Findings and Conclusions of the International Election Observation Mission to the Early Parliamentary Elections in Azerbaijan held on 1 September 2024,

     having regard to the report of 29 March 2023 by the Council of Europe’s European Commission against Racism and Intolerance on Azerbaijan and to the memorandum of 21 October 2021 by the Council of Europe Commissioner for Human Rights on the humanitarian and human rights consequences following the 2020 outbreak of hostilities between Armenia and Azerbaijan over Nagorno-Karabakh,

     having regard to the orders of the International Court of Justice of 22 February 2023, of 6 July 2023 and of 17 November 2023 on the request for the indication of provisional measures for the application of the International Convention on the Elimination of All Forms of Racial Discrimination (Armenia v Azerbaijan),

     having regard to Rules 136(2) and (4) of its Rules of Procedure,

    A. whereas the choice of Azerbaijan’s capital Baku as the venue for the 29th United Nations Climate Change Conference (COP29), scheduled to take place from 11 to 22 November 2024, has sparked controversy, notably owing to Azerbaijan’s worsening human rights record, as well as recent and blatant violations of international law, including aggressive behaviour towards its neighbour Armenia; whereas respect for fundamental human rights and civil society participation are enshrined in the host country agreement through which the Azerbaijani Government committed to uphold these rights; whereas in the lead-up to this major international conference, the Azerbaijani authorities have intensified their repression of civil society organisations, activists, opposition politicians and the remaining independent media through detentions and judicial harassment; whereas corruption and a lack of judicial independence further undermine governance;

    B. whereas civil society organisations list over 300 political prisoners in Azerbaijan, including Gubad Ibadoghlu, Anar Mammadli, Bakhtiyar Hajiyev, Tofig Yagublu, Ilhamiz Guliyev, Aziz Orujov, Bahruz Samadov, Akif Gurbanov and many others; whereas there are credible reports of violations of prisoners’ human rights, including detention in inhumane conditions, torture and refusal of adequate medical care;

    C. whereas prominent human rights defender and climate advocate, Anar Mammadli, has been in pre-trial detention since 30 April 2024 on bogus charges of conspiracy to bring illegal foreign currency into the country and his health has deteriorated significantly while in custody; whereas Gubad Ibadoghlu, a political economist, opposition figure and one of the finalists for the 2024 Sakharov Prize for Freedom of Thought, was arrested by Azerbaijani authorities in July 2023 and remained in detention until 22 April 2024, when he was transferred to house arrest; whereas his health has deteriorated significantly since his arrest, as a result of torture, inhumane detention conditions and refusal of adequate medical care, thus endangering his life; whereas the health of Gubad Ibadoghlu’s wife, Irada Bayramova, continues to deteriorate as a result of the physical violence she suffered during her detention by the Azerbaijani authorities; whereas on 4 December 2023 human rights activist Ilhamiz Guliyev was arrested on politically motivated charges a few months after he gave an anonymous interview to Abzas Media about the alleged police practice of planting drugs on political activists;

    D. whereas for more than a decade and with increasing determination, Azerbaijani authorities have been reducing space for civil society, arbitrarily closing down non-governmental organisations (NGOs) and arresting or forcing into exile civil society representatives; whereas in recent years, the Azerbaijani authorities have imposed increasingly stringent restrictions on civil society organisations; whereas activists, journalists, political opponents and others have been imprisoned on fabricated and politically motivated charges;

    E. whereas according to human rights defenders, crackdowns on civil society have occurred around other major international events hosted by Azerbaijan, including Eurovision 2012 and the European Games 2015;

    F. whereas the Azerbaijani regime appears to extend its repressive actions beyond its borders; whereas the ongoing crackdown on freedom of expression in Azerbaijan is also reflected in reports of transnational repression and reprisals against family members of detainees; whereas, since 2020, Mahammad Mirzali, an Azerbaijani dissident blogger, has been the target of several assassination attempts in France; whereas, on 29 September 2024, Vidadi Isgandarli, a critic of the Azerbaijani regime living as a political refugee in France, was attacked in his home and succumbed to his injuries two days later; whereas the Azerbaijani authorities have also engaged in politically motivated prosecutions of EU citizens, as seen in the case of Théo Clerc, prompting at least one Member State to formally warn its citizens against travelling to Azerbaijan owing to the risk of arbitrary detention;

    G. whereas Azerbaijan has implemented a systematic policy of bribing officials and elected representatives in Europe in order to downplay Azerbaijan’s human rights record and to silence critics, as part of a widely used strategy described as ‘caviar diplomacy’; whereas some cases have been investigated and some of those involved have been prosecuted and convicted by national courts in several EU Member States;

    H. whereas a number of European Court of Human Rights decisions have found that Azerbaijan has violated human rights; whereas according to the Parliamentary Assembly of the Council of Europe, more than 320 court judgments against Azerbaijan have not yet been executed or have been only partially implemented, which is the highest number among all state parties to the European Convention on Human Rights;

    I. whereas on 3 July 2024, the Council of Europe’s European Committee for the Prevention of Torture and Inhuman or Degrading Treatment or Punishment (CPT) publicly denounced Azerbaijan’s ‘refusal to improve the situation in the light of the Committee’s recommendations’ and the ‘persistent lack of cooperation of the Azerbaijani authorities with the CPT’;

    J. whereas the PACE decided in January 2024 not to ratify the credentials of the Azerbaijani delegation, noting its ‘very serious concerns as to …[Azerbaijan’s] respect for human rights’; whereas the Parliamentary Assembly of the Council of Europe noted that its Monitoring Committee’s rapporteurs were not allowed to meet with people who had been detained on allegedly politically motivated charges, and that the Azerbaijani delegation refused to allow the rapporteur for the Committee on Legal Affairs and Human Rights to visit the country;

    K. whereas according to the Election Observation Mission led by the Organization for Security and Co-operation in Europe’s Office for Democratic Institutions and Human Rights (OSCE/ODIHR), the early presidential election held on 7 February 2024 took place in a restrictive environment and was marked by the stifling of critical voices and the absence of political alternatives; whereas Azerbaijan held early parliamentary elections on 1 September 2024 in what the OSCE/ODIHR-led International Election Observation Mission described as a restrictive political and legal environment that did not enable genuine pluralism and resulted in a contest devoid of competition; whereas in the period leading up to the parliamentary elections, several government critics were detained;

    L. whereas media legislation in Azerbaijan has become increasingly repressive, with the February 2022 media law effectively legalising censorship; whereas several other laws affecting the media also violate the country’s international obligations with regard to freedom of expression and press freedom; whereas public criticism of the authorities is subject to severe penalties;

    M. whereas according to Reporters Without Borders, virtually the entire media sector in Azerbaijan is under official control, with no independent television or radio broadcasts from within the country, and all critical print newspapers shut down; whereas the authorities continue to suppress the last remaining independent media and repress journalists who reject self-censorship; whereas Azerbaijan has intensified its repression against the remaining independent media, such as Abzas Media, Kanal 13 and Toplum TV, through detentions and judicial harassment;

    N. whereas the Azerbaijani laws regulating the registration, operation and funding of NGOs are highly restrictive and arbitrarily implemented, thus effectively criminalising unregistered NGO activity; whereas Freedom House’s 2024 index ranks Azerbaijan among the least free countries in the world, below Russia and Belarus;

    O. whereas gas contracts between Gazprom and SOCAR for the delivery of one billion cubic metres of gas from Russia to Azerbaijan between November 2022 and March 2023 have raised significant concerns about the re-export of Russian gas to the European market, particularly in the context of the signed memorandum of understanding on the strategic partnership in the field of energy; whereas the EU aims to reduce European dependence on Russian gas, but this agreement could be seen as undermining that goal, as Russian gas would still be flowing into Azerbaijan, thus potentially freeing up Azerbaijani gas for increased re-export to the EU; whereas there are also worrying reports of Russian gas being rebranded as Azerbaijani for sale in the EU;

    P. whereas Azerbaijani leaders have engaged in anti-EU and anti-Western rhetoric; whereas Azerbaijan has intensified its disinformation campaigns targeting the EU and its Member States, with a specific focus on France; whereas Azerbaijan has actively interfered in European politics under the guise of ‘anti-colonialism’, notably in overseas countries and territories such as New Caledonia;

    Q. whereas in addition, in September 2023, after months of the illegal blockade of Nagorno-Karabakh, Azerbaijan launched a pre-planned, unjustified military attack on the territory, forcing over 100 000 ethnic Armenians to flee to Armenia, which amounts to ethnic cleansing; whereas as a result, Nagorno-Karabakh has been almost entirely emptied of its Armenian population, who had been living there for centuries; whereas this attack represents a gross violation of human rights and international law, a clear breach of the trilateral ceasefire statement of 9 November 2020 and a failure to uphold commitments made during EU-mediated negotiations;

    R. whereas the Armenians of Nagorno-Karabakh lost their property and belongings while fleeing the Azerbaijani military push in 2023 and have been unable to recover them since; whereas actions amounting to ethnic cleansing have continued since then; whereas the EU has provided humanitarian aid to people displaced from Nagorno-Karabakh; whereas credible reports confirm the organised destruction of Armenian cultural and religious heritage in Nagorno-Karabakh; whereas Azerbaijani leaders and officials repeatedly use hate speech against Armenians;

    S. whereas both Azerbaijan and Armenia are bound by international humanitarian law and the Third Geneva Convention protects prisoners of war from all forms of torture and cruel treatment; whereas reports indicate that 23 Armenian prisoners are currently being held in Azerbaijani prisons without adequate legal representation, including eight former leaders of Nagorno-Karabakh, some of whom have received long prison sentences;

    T. whereas in February 2023, the EU deployed the European Union Mission in Armenia (EUMA) to observe developments at the international border with Azerbaijan; whereas Azerbaijan has refused to cooperate with EUMA and the mission has been the target of disinformation by Azerbaijani authorities and government-controlled media; whereas the Azerbaijani leadership continues to make irredentist statements with reference to the sovereign territory of Armenia; whereas the Azerbaijani army continues to occupy no less than 170 km2 of the sovereign territory of Armenia;

    U. whereas Armenia and Azerbaijan have engaged in negotiations on a peace treaty, the normalisation of their relations and border delimitation, both before and after the 2023 attack on Nagorno-Karabakh; whereas, despite mediation efforts by the EU and others, no peace agreement has been signed between Azerbaijan and Armenia; whereas, although both governments have stated that they are close to an agreement, recent remarks by the Azerbaijani president raise concern about Baku’s willingness to find a compromise to conclude the negotiations;

    V. whereas the EU fully supports the sovereignty and territorial integrity of both Azerbaijan and Armenia and actively supports efforts towards a sustainable peace agreement between the two countries, achieved by peaceful means and respecting the rights of the population concerned;

    W. whereas since Russia’s war of aggression against Ukraine, Azerbaijan has deepened its relations with Russia, including political and economic ties, as well as increased cooperation between their intelligence services; whereas Russia has openly backed Azerbaijan in its aggressive behaviour towards Armenia;

    1. Strongly condemns the domestic and extraterritorial repression by the Azerbaijani regime against activists, journalists, opposition leaders and others, including EU nationals, which has noticeably intensified ahead of COP29; urges the Azerbaijani authorities to release all persons arbitrarily detained or imprisoned on account of their political views, to drop all politically motivated charges and to cease all forms of repression, both within and beyond Azerbaijan; recalls in this context the names of Tofig Yagublu, Akif Gurbanov, Bakhtiyar Hajiyev, human rights defenders and journalists, including Ulvi Hasanli, Sevinj Vagifgizi, Nargiz Absalamova, Hafiz Babali and Elnara Gasimova, Aziz Orujov, Rufat Muradli, Avaz Zeynalli, Elnur Shukurov, Alasgar Mammadli, Ilhamiz Guliyev and Farid Ismayilov, as well as of civil society activists arrested after March 2024 such as Anar Mammadli, Farid Mehralizade, Igbal Abilov, Bahruz Samadov, Emin Ibrahimov and Famil Khalilov; expresses deep concern about the environment of fear that this has created inside the country, leaving civil society effectively silenced;

    2. Reiterates its call for the Azerbaijani authorities to drop all charges against Dr Gubad Ibadoghlu and allow him to travel abroad, unhindered and to the country of his choice, to reunite with his family, to receive the medical care he urgently needs and attend the Sakharov Prize ceremony in Strasbourg in December 2024; calls on Azerbaijan to ensure that he receives an independent medical examination by a doctor of his own choosing and to allow him to receive treatment abroad; calls on all EU representatives and individual Member States to actively support the release from house arrest of Dr Gubad Ibadoghlu and insist on his release in every exchange with the Azerbaijani authorities;

    3. Demands that freedom of the press and expression be guaranteed and that media organisations not be restricted; calls, therefore, on the Azerbaijani Government to release journalists working for Abzas Media and Toplum TV, including Ulvi Hasanli, Sevinj Vagifqizi and Alasgar Mammadli;

    4. Considers that Azerbaijan’s ongoing human rights abuses are incompatible with its hosting of COP29; urges EU leaders, in particular Commission President Ursula von der Leyen, to use COP29 as an opportunity to remind Azerbaijan of its international obligations and to meaningfully address the country’s human rights record in their interactions with the Azerbaijani authorities, including by calling for the unconditional release of all persons arbitrarily detained or imprisoned on account of their political views and by requesting to meet with political prisoners while in the country; calls for the EU and its Member States to do their utmost to ensure that United Nations Climate Change conferences are not hosted in countries with poor human rights records;

    5. Reminds the Azerbaijani authorities of their obligations to respect fundamental freedoms, and calls on them to repeal repressive legislation that drives independent NGOs and media to the margins of the law; calls on the Azerbaijani authorities to repeal repressive legislation on the registration and funding of NGOs to bring them into line with Venice Commission recommendations;

    6. Recalls that the 1996 EU-Azerbaijan Partnership and Cooperation Agreement, which is the legal basis for bilateral relations, is based on respect for democracy and the principles of international law and human rights and that these have been systematically violated in Azerbaijan;

    7. Reminds the Azerbaijani Government of its international obligations to safeguard the dignity and rights of detainees, ensuring that they receive adequate medical care, are detained in humane conditions and are protected from any mistreatment; calls on the Azerbaijani Government to swiftly comply with long-standing recommendations of the Council of Europe’s European Committee for the Prevention of Torture and Inhuman or Degrading Treatment or Punishment on the subject of the widespread recourse to physical ill treatment – including, on occasion, torture – by the police in Azerbaijan; calls on the Azerbaijani Government to implement all the decisions of the European Court of Human Rights;

    8. Reiterates its call for EU sanctions to be imposed under the EU Global Human Rights Sanctions Regime on Azerbaijani officials who have committed serious human rights violations; calls on the EU Special Representative for Human Rights to request meetings with political prisoners in Azerbaijan;

    9. Insists that any future partnership agreement between the EU and Azerbaijan be made conditional on the release of all political prisoners, the implementation of legal reforms and the overall improvement of the human rights situation in the country, as well as on Azerbaijan demonstrating its genuine readiness to faithfully engage in the negotiation of a peace agreement with Armenia and to respect the rights of Nagorno-Karabakh Armenians;

    10. Calls for the EU to end its reliance on gas exports from Azerbaijan; calls on the Commission to suspend the 2022 memorandum of understanding on the strategic partnership in the field of energy and to act accordingly;

    11. Reaffirms its support for the sovereignty and territorial integrity of both Azerbaijan and Armenia and strongly supports the normalisation of their relations based on the principles of the mutual recognition of territorial integrity and the inviolability of borders, in accordance with the 1991 Alma-Ata Declaration; reiterates its demand for the withdrawal of Azerbaijan’s troops from the entirety of Armenia’s sovereign territory; calls on Azerbaijan to unequivocally commit to respecting Armenia’s territorial integrity; highlights that Azerbaijan’s connectivity issues with its exclave of Nakhchivan should be resolved with full respect for the sovereignty and territorial integrity of Armenia; reiterates its position that the EU should be ready to impose sanctions on any individuals and entities that threaten the sovereignty, independence and territorial integrity of Armenia;

    12. Condemns any military aggression, use of force or hybrid threats against Armenia, as well as foreign interference and attempts to destabilise the political situation in Armenia; welcomes, furthermore, the decision to adopt the first assistance measure under the European Peace Facility in support of Armenian armed forces and calls for the cooperation between Armenia and the EU to be further reinforced in the field of security and defence; welcomes the actions undertaken by several Member States to provide defensive military support to Armenia and urges the Member States to consider similar initiatives; welcomes the new momentum in bilateral relations between the EU and Armenia, which is strongly supported by the authorities in Yerevan; calls on the Commission and the Council to actively support Armenia’s desire for increased cooperation with the EU;

    13. Expresses its support for the activities of the European Union Mission in Armenia (EUMA) and underscores the important role it plays; reiterates its concern regarding the repeated smear campaigns originating from Azerbaijan against EUMA; calls on EUMA to continue to closely monitor the evolving security situation on the ground, provide transparent reporting to Parliament and actively contribute to conflict resolution efforts; calls for the EU and its Member States to strengthen EUMA’s mandate, increase its size and extend its duration;

    14. Supports all initiatives and activities that could lead to the establishment of peace between Armenia and Azerbaijan and the signing of a long-awaited peace agreement; calls on Azerbaijan to demonstrate genuine efforts to this end; warns Azerbaijan that any military action against Armenia would be unacceptable and would have serious consequences for the partnership between Azerbaijan and the EU; welcomes the Armenia-Azerbaijan joint statement of 7 December 2023 on confidence-building measures; welcomes the progress made in the framework of the Armenia-Azerbaijan border delimitation process, which has led to an agreement on several sections of the border; encourages both sides to take further steps on the remaining sections; calls for the EU to cease all technical and financial assistance to Azerbaijan that might contribute to strengthening its military or security capabilities; calls on the Member States to freeze exports of all military and security equipment to Azerbaijan;

    15. Calls for the full implementation of all orders issued by the International Court of Justice, including the order of 17 November 2023 indicating provisional measures regarding the safe, unimpeded and expeditious return of people who fled Nagorno-Karabakh; recalls that the decision to host COP29 in Baku was made after Azerbaijan failed to comply with the above-mentioned International Court of Justice order as well as those of 7 December 2021 and of 22 February 2023; reiterates its call for independent investigations into the abuses committed by Azerbaijani forces in Nagorno-Karabakh; reiterates its call on the Azerbaijani authorities to allow the safe return of the Armenian population to Nagorno-Karabakh, to genuinely engage in a comprehensive and transparent dialogue with them, to provide robust guarantees for the protection of their rights, including their land and property rights, the protection of their distinct identity and their civic, cultural, social and religious rights, and to refrain from any inflammatory rhetoric that could incite discrimination against Armenians; urges the Azerbaijani authorities to release all 23 Armenian prisoners of war detained following Azerbaijan’s retaking of the Nagorno-Karabakh region;

    16. Reiterates its call for the EU institutions and the Member States to continue to offer assistance to Armenia to deal with the refugees from Nagorno-Karabakh; calls for the EU, in this regard, to provide a new package of assistance to Armenia to help the Armenian Government address the humanitarian needs of refugees; welcomes all efforts by the Government of Armenia to provide shelter and aid to the displaced Armenians;

    17. Expresses deep concern regarding the preservation of cultural, religious and historical heritage in Nagorno-Karabakh following the massive exodus of its Armenian population; urges Azerbaijan to refrain from further destruction, neglect or alteration of the origins of cultural, religious or historical heritage in the region and calls on it instead to strive to preserve, protect and promote this rich diversity; demands the protection of the Armenian cultural, historical and religious heritage in Nagorno-Karabakh in line with UNESCO standards and Azerbaijan’s international commitments; insists that Azerbaijan allow a UNESCO mission to Nagorno-Karabakh and grant it the necessary access;

    18. Deplores steps taken by Azerbaijan towards the secessionist entity in occupied Cyprus, which are against international law and the provisions of UN Security Council Resolutions 541 (1983) and 550 (1984); calls on Azerbaijan to respect the principles of sovereignty and territorial integrity of states and to not invite the secessionist entity in occupied Cyprus to any meetings of the Organization of Turkic States;

    19. Condemns Azerbaijan’s repeated attempts to denigrate and destabilise Member States, including through the so-called Baku Initiative Group; condemns in particular its support for irredentist groups and disinformation operations targeting France, especially in the French departments and territories of New Caledonia, Martinique and Corsica; recalls that these methods were used against Germany in 2013; denounces the smear campaigns targeting Denmark; regrets the smear campaign aimed at damaging France’s reputation by calling into question its capacity to host the 2024 Olympic Games, launched by actors suspected of being close to the Azerbaijani regime;

    20. Condemns the arbitrary arrests of EU citizens based on spurious accusations of espionage and their disproportionate sentencing;

    21. Strongly condemns the public insults and direct threats made by Azerbaijani diplomatic or government representatives, or members of the Azerbaijani Parliament, targeting elected officials of EU Member States; demands, in this regard, that access to EU institutional buildings be denied to the Azerbaijani officials concerned until further notice;

    22. Instructs its President to forward this resolution to the Council, the Commission, the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy, the President, Government and Parliament of the Republic of Azerbaijan, the President, Government and Parliament of the Republic of Armenia, the Director-General of UNESCO, the Organization for Security and Co-operation in Europe, the United Nations and the Council of Europe.

    MIL OSI Europe News

  • MIL-OSI Canada: New era begins for post-secondary in Lethbridge

    Source: Government of Canada regional news

    Polytechnic education provides a wide range of hands-on learning opportunities for students, developing valuable skills that can be used throughout a career. By focusing on practical training in high-demand fields, these institutions not only ensure that graduates are prepared to meet the needs of the evolving job market but also support the province’s economic growth and innovation.

    Lethbridge College officially became Alberta’s newest polytechnic institution, Lethbridge Polytechnic, on Sept. 3. On Oct. 23, the redesignated institution officially celebrated its new status and unveiled its new logo at a gathering of students and administration, community supporters and other dignitaries. 

    “Seeing the exciting, new visual identity really brings home the fact that this is the start of a whole new era for Lethbridge Polytechnic. Students in southern Alberta will have new options to pursue polytechnic education programs without having to travel to our province’s largest centres. This will help them reduce living costs while they study and lessen their time away from family and familiar support networks. And they will have expanded career options in their own region upon graduating.”

    Rajan Sawhney, Minister of Advanced Education

    “I’m thrilled to see Lethbridge College become Lethbridge Polytechnic. This will help create even more opportunities for students to gain the skills and knowledge they need for success. As an alumnus myself, I know just how valuable and important this institution is to our community.”

    Nathan Neudorf, MLA for Lethbridge-East

    The new name and visual identity reflect a changing mandate. As Lethbridge Polytechnic, the institution has an expanded capacity to create career-focused degree, diploma, certificate and apprenticeship education programs. The new designation also gives Lethbridge Polytechnic greater flexibility to align more effectively with local student and business needs.

    Since it was established as Lethbridge Junior College in 1957, Lethbridge Polytechnic has played a key role in the economic, social and cultural life of Lethbridge and surrounding area. The transition to Lethbridge Polytechnic enhances the post-secondary system in southern Alberta, adding its own distinct programming to existing university, college and First Nations College programs to meet the diverse needs of the region’s communities.

    The unveiling of our new logo is about more than just a new design. It symbolizes our transition from Lethbridge College to Lethbridge Polytechnic, marking our evolution as an institution that’s forged on providing industry-driven, hands-on education. This transition represents the spirit of innovation, collaboration and community that runs through everything we do.”

    Michael Marcotte, board chair, Lethbridge Polytechnic

    The logo is the result of talking to people who know our institution well. The result speaks to our past and future, and the caring, inclusive environment students say they find here.”

    Brad Donaldson, president and CEO, Lethbridge College

    The redesignation of Lethbridge Polytechnic is aligned with the goals of the Alberta 2030: Building Skills for Jobs strategy. The institution will offer an environment for applied research that aligns with high-demand industries in Alberta. Alberta’s government continues to work with Lethbridge Polytechnic to ensure a successful transition to polytechnic status.

    Quick facts

    • Polytechnic institutions in Alberta must offer apprenticeship education, and diploma and certificate programs. They are also able to offer degree programs.
    • Polytechnic status in Alberta supports the advancement of applied research and industry-driven results.
    • The Alberta 2030: Building Skills for Jobs strategy is a transformational vision and direction for Alberta’s higher education system, which will develop a highly skilled and competitive workforce, strengthen innovation and commercialization of research and forge stronger relationships between employers and post-secondary institutions.

    Related information

    • Alberta 2030: Building Skills for Jobs | Alberta.ca

    Related news

    • Enhancing post-secondary learning in Lethbridge (June 25, 2024)

    MIL OSI Canada News

  • MIL-OSI Asia-Pac: Anticipating Cyclone ‘DANA’s’ Impact, Paradip Port Authority Mobilizes Resources, Sets Up Shelters, and Prepares for Emergency Evacuations to Safeguard Lives and Operations

    Source: Government of India (2)

    Anticipating Cyclone ‘DANA’s’ Impact, Paradip Port Authority Mobilizes Resources, Sets Up Shelters, and Prepares for Emergency Evacuations to Safeguard Lives and Operations

    Ahead of Cyclone ‘DANA,’ Paradip Port Authority Implements Precautionary Measures Including Supply of Medicines, Food, and Safe Relocation of Ships to Mitigate Potential Disruptions

    Posted On: 23 OCT 2024 7:13PM by PIB Delhi

    As Cyclone “DANA” draws near, anticipated to affect Paradip Port on October 24th and 25th, 2024, the Paradip Port Authority has initiated a series of precautionary measures to ensure safety and minimize potential disruptions. The India Meteorological Department has issued warnings about the cyclone, prompting swift action from port authorities to protect both assets and personnel.

    In preparation for the severe weather conditions expected with Cyclone “DANA,” the Paradip Port Authority has focused on accelerating all ongoing operations. Directives have been issued to expedite cargo transportation and complete all loading activities from the ships berthed at the port. The priority is to ensure that these processes are wrapped up ahead of the cyclone’s arrival, thereby reducing any risk of damage to cargo and equipment. Additionally, ships currently docked at the port have been directed to move and anchor at designated safe locations at sea to avoid potential accidents or damage caused by turbulent waters.

     

    The safety and welfare of the port’s workforce and surrounding communities are most important during this time of crisis. Paradip Port Authority has arranged several critical facilities to aid in this effort. Among these, an adequate supply of essential items, including medicines, drinking water, and food, has been stocked to address any emergency needs that may arise during and after the cyclone’s impact. These provisions ensure that the immediate needs of those affected can be met swiftly, without delay.

    Moreover, the Paradip Port Authority has set up buses for the evacuation of people from areas that may be most vulnerable to the cyclone’s effects. These buses will facilitate the timely and efficient relocation of individuals to safer locations, minimizing risks to life and ensuring that everyone is moved out of harm’s way before the cyclone’s landfall.

    To manage any potential damage caused by strong winds and heavy rains, the port has also prepared equipment such as power saws for rapid tree cutting and debris removal. This will enable the quick clearance of roads and pathways, allowing for the continued movement of emergency services and aid distribution during the aftermath of the cyclone.

    Additionally, multiple cyclone shelters have been prepared to serve as temporary for those displaced by the storm. These shelters are equipped to accommodate affected individuals and provide a safe environment until it is deemed secure for them to return to their homes.

    The Ministry of Ports, Shipping, and Waterways is closely monitoring the situation and coordinating with all relevant authorities to ensure the safety and well-being of all stakeholders at Paradip Port.

     

    NKK/AK

    *****

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    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: INDIAN ARMY TO HOST THE SECOND EDITION OF CHANAKYA DEFENCE DIALOGUE: A GLOBAL PLATFORM FOR STRATEGIC INSIGHTS

    Source: Government of India (2)

    Posted On: 23 OCT 2024 5:19PM by PIB Delhi

    The Indian Army is set to host the second edition of its flagship international seminar, the Chanakya Defence Dialogue, on October 24 and 25,, 2024  at the Manekshaw Centre, New Delhi. Themed “Drivers in Nation Building: Fuelling Growth Through Comprehensive Security,” this high-profile event will facilitate vital discussions on integrating security dynamics within national and international policymaking, and aims to craft visionary strategies for sustainable and inclusive growth.

    The two-day event will bring together an exceptional group of policymakers, strategic thinkers, academics, defence personnel, veterans, scientists, and SMEs from India and abroad, with prominent speakers from the United States, Russia, Israel, and Sri Lanka. The dialogue will explore India’s strategic pathways towards Viksit Bharat @2047, focusing on the role of comprehensive security in national development.

    Hon’ble Raksha Mantri Shri Rajnath Singh will inaugurate the event as the Chief Guest, where he will also launch the Indian Army’s Green Initiative 1.0 and Digitisation of IA 1.0. He will deliver a keynote address on ‘India’s Vision for Development and Security,’ underscoring the importance of comprehensive security in achieving Viksit Bharat @2047. General Upendra Dwivedi, Chief of the Army Staff, will also address the audience, highlighting the Indian Army’s significant contributions to nation-building, including initiatives aligned with Atmanirbhar Bharat.

    The Chanakya Defence Dialogue will consist of six expert-led sessions, each focusing on critical aspects of comprehensive security:

    Session 1. Geopolitical Dynamics: Navigating the International Coliseum

    This session will delve into the shifting geopolitical landscape and how nations navigate strategic partnerships while balancing national interests and global objectives. The panel will explore the impact of evolving global power structures on India’s strategic positioning, highlighting the growing importance of alliances and multilateral cooperation in an increasingly polarized world.

    Moderator: Ms Palki Sharma (Network 18)

    Panellists:

    • Ms. Lisa Curtis (Centre for a New American Security)
    • Ms. Carice Witte (SIGNAL Group, Israel)
    • Ambassador Kanwal Sibal (Former Foreign Secretary, Government of India)

    The panel will provide insights into geopolitical shifts, focusing on India’s role in the Indo-Pacific, its relations with key global powers, and the opportunities and challenges these present for India’s national security and development goals.

    Session 2. Economic Development Strategies & National Security Imperatives

    This session will examine how economic development and national security are interconnected, exploring the importance of a resilient economy for maintaining a strong defence posture. Panellists will discuss strategies for integrating economic policies with national security imperatives, and how India can leverage its growing economic strength to enhance its global influence.

    Moderator: Ms. Gaurie Dwivedi (NDTV)

    Panellists:

    • Mr. Asanga Abeyagoonasekera (IMF Technical Advisor)
    • Dr. G S Reddy (Former Scientific Advisor to the Prime Minister)
    • Dr. Sanjeev Sanyal (Member, PM’s Economic Advisory Council)

    Key themes will include leveraging economic reforms, boosting domestic industrial capacities, and aligning economic growth with defence production under the Atmanirbhar Bharat initiative. The session will also explore how economic resilience can act as a deterrent against external threats.

    Session 3. Environmental Sustainability: Balancing Growth with Ecological Concerns

    With growing global focus on climate change, this session will explore the need to balance economic growth with environmental sustainability. It will discuss how India can achieve development goals while ensuring that ecological concerns are addressed, particularly in the context of national security.

    Moderator: Dr. Tara Kartha (Director Research & Academics, CLAWS)

    Panellists:

    • Ms. Elizabeth Threlkeld (Stimson Center, US)
    • Mr. Rushikesh Chavan (Habitats Trust)
    • Lt Gen S A Hasnain (Retd)

    Panellists will discuss how sustainable development can contribute to long-term security by mitigating resource-driven conflicts, enhancing disaster preparedness, and ensuring the well-being of future generations. The session will emphasize the role of the military in ecological preservation, particularly in high-altitude and environmentally sensitive regions.

    Session 4. Social Cohesion and Inclusive Growth: Pillars of a Secure Nation

    This session will focus on the importance of social unity and inclusive growth for national security. The panel will examine how internal security can be strengthened by fostering social cohesion, addressing economic disparities, and promoting inclusive development across all sections of society.

    Moderator: Mr. RR Swain (Former DGP J&K Police)

    Panellists:

    • Dr. Sudhanshu Trivedi (Member of Parliament)
    • Ms. Meenakshi Lekhi (Former MP and Lawyer)
    • Gen V K Singh (Retd) (Former COAS & ex-Minister of State for External Affairs)

    The discussion will highlight the role of law enforcement, legal frameworks, and policy initiatives in promoting internal security, with a focus on integrating marginalized communities into the national fabric. The panellists will offer strategies to merge social cohesion initiatives with internal security policies, fostering a shared national identity and promoting peace and stability.

    Session 5. Blurring Frontiers: The Convergence of Technology & Security

    This session will explore the integration of emerging technologies into national security frameworks. As new technologies such as artificial intelligence, cyber warfare, and unmanned systems revolutionize warfare, the session will discuss how India can stay ahead of the curve while ensuring that technological advancements are deployed ethically and responsibly.

    Moderator: Lt Gen Raj Shukla (Retd)

    Panellists:

    • Dr. Chintan Vaishnav (NITI Aayog)
    • Brig Gen Eran Ortal (SIGNAL Group, Israel)
    • Mr. Dmitry Stefanovich (IMEMO, Russia)

    Panellists will explore the advantages and challenges of integrating AI, robotics, and other emerging technologies into security operations. The session will also address ethical considerations such as privacy, responsible use, and societal alignment, ensuring that technological advances serve national security without compromising civil liberties.

    Session 6. Groundbreakers: Shaping Land Warfare, Reflections for the Indian Army

    This concluding session will focus on the future of land warfare and how the Indian Army can adopt advanced technologies to enhance battlefield readiness. Panellists will examine lessons from global military practices and how India can foster homegrown defence technologies under the Atmanirbhar Bharat initiative.

    Moderator: Vice Admiral A B Singh (Retd)

    Panellists:

    • Dr. Konstantin Bogdanov (IMEMO, Russia)
    • Prof. Amit Gupta (University of Illinois, US)
    • Dr. Patrick Bratton (US Army War College)

    The discussion will explore the evolving nature of land warfare, emphasizing the need for the Indian Army to develop indigenous technological capabilities while leveraging strategic partnerships with global military and industrial leaders. The panel will debate how to balance innovation with operational effectiveness, creating responsible and sustainable military solutions.

    On the second day, Chanakya Defence Dialogue will feature special addresses by Dr. S Somanath, Chairman of ISRO, on the critical significance of India’s expanding space sector, and Ms. Ruchira Kamboj, Former Permanent Representative of India to the UN, who will share insights on India’s evolving position in a multipolar world and the need for strong diplomatic measures to safeguard national interests.

    The dialogue will conclude with a closing address by Lt Gen N S Raja Subramani, Vice Chief of the Army Staff, who will summarize the key takeaways from the event, reaffirming the Indian Army’s commitment to ensuring a secure, prosperous, and Viksit Bharat @2047.

    Through its comprehensive and diverse discussions, the Chanakya Defence Dialogue 2024 will serve as a landmark platform, fostering collaboration among military leaders, policymakers, strategic thinkers, and security specialists from around the world. This event is set to influence India’s strategic direction on national security and development, helping shape a secure and thriving future for the nation.

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  • MIL-OSI USA: IAM Members Hitting the Streets in Atlanta for Harris-Walz 

    Source: US GOIAM Union

    ATLANTA, Oct. 23, 2024 – Members of the International Association of Machinists and Aerospace Workers (IAM) are hitting the doors in Atlanta to help elect Vice President Kamala Harris and Minnesota Gov. Tim Walz in their bid for the White House. In collaboration with the Georgia AFL-CIO, IAM members are canvassing union households in the Atlanta area to help drive the turnout of union households. 

    IAM International President Brian Bryant recently stated the importance of mobilizing our members for this election.

    IAM Union members in Georgia

      “We have members from Atlanta and all across the Southern Territory who came to Atlanta to have conversations with their union members on the importance of voting in this election,” said IAM Southern Territory General Vice President Craig Martin. “Our members understand that this election is about protecting democracy, retirement security, and ensuring labor has a place at the table. We will continue to drive turnout until the polls close on election day.” 

    The labor walks will continue through Election Day, with IAM members and other union affiliates continuing their efforts to ensure a pro-labor outcome at the ballot box.

    “Our goal over the past few weeks is to make sure we are hitting the doors of every union household and making sure they understand the importance of this election,” said IAM Southern Territory Chief of Staff Reggie Dixon. “It is essential for working families throughout Georgia and the entire South. Our rights are on the ballot, and we have to fight for the future of our democracy.”

    The International Association of Machinists and Aerospace Workers is one of North America’s largest and most diverse industrial trade unions, representing approximately 600,000 active and retired members in the aerospace, defense, airlines, railroad, transit, healthcare, automotive, and other industries.

    goIAM.org | @MachinistsUnion

     

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  • MIL-OSI USA: The Marshall Star for October 23, 2024

    Source: NASA

    Editor’s Note: Starting Nov. 4, the Office of Communications at NASA’s Marshall Space Flight Center will no longer publish the Marshall Star on nasa.gov. The last public issue will be Oct. 30. To continue reading Marshall news, visit nasa.gov/marshall.

    For centuries, humans have dreamed of the ability to live safely on the Moon and Mars. At NASA’s Marshall Space Flight Center, team members supporting habitation systems development bring that dream closer to reality by envisioning and shaping humanity’s future in deep space and on the surface of other worlds.
    Marshall’s Habitation Systems business unit – the center’s featured organization for October – develops the next generation of habitation systems to make living and working in space and on planetary bodies possible. These efforts are carried out through the Habitation Systems Development Office, in which the team works across programmatic and engineering organizations to support formulation activities for planetary surface habitation (Moon and Mars), transit habitats for deep space exploration, and the Gateway program. In addition, the Marshall team collaborates with commercial partners on future habitation concept development and risk reduction activities through NextSTEP Appendix A: Habitation Systems and Reimbursable Space Act Agreements.   

    Seth Bell is currently the technical monitor for NASA’s commercial partner Sierra Space. Sierra has executed both full scale and subscale inflatable habitat burst tests at Marshall’s East Test Area. Bell has worked as a subsystem manager for the Mars Ascent Vehicle and as a system’s engineer and Engineering Directorate integrator.
    “I am excited to eventually see softgood inflatables in low Earth orbit,” Bell said. “Seeing the success of the many teams working in this office is exciting, especially after developing so many lasting relationships and putting so much time and energy into this work.”

    Since joining NASA in 2008, Yancy Young has served in multiple positions, including manager of several International Space Station research projects and Launch Package manager for Gateway Co-manifested Payloads. Currently, Young is the technical monitor for Boeing efforts under NASA’s NextSTEP Appendix A Broad Agency Announcement (BAA) for the development of deep space habitation concepts.
    “I love being a part of laying the foundation for long term deep space exploration,” Young said.
    Boeing’s current focus is a Design Analysis Cycle investigating the benefits and challenges of using composite materials in a pressurized Lunar Surface Habitat.

    In her 25-plus years at NASA, Brooke Thornton has worked on everything from ionized space radiation analysis to Earth observing satellites. Currently, Thornton is the industry engagement manager for the Habitation Systems Development Office and Strategy and Architecture Office. Thornton manages NextSTEP-2 Appendix A-Habitation Systems and Appendix R-Logistics and Mobility Systems BAA. In addition, Thornton fosters collaboration between industry and NASA for the Moon to Mars mission.
    “I am excited about working with industry to develop the elements and concepts of operations for humans to live on the Moon and beyond,” Thornton said.
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    Joseph Pelfrey, center, director of NASA’s Marshall Space Flight Center, talks with team members during the BBQ Fest hosted by the Marshall Exchange on Oct. 21. The event was held on the walking trail behind the Wellness Center and was open to team members, their family members, and retirees. “My thanks to those who came out to this year’s BBQ – and especially to those who helped make it happen,” Pelfrey said. “I could not have asked for better weather or a better group of people to spend the afternoon with. It was great to see everyone’s families join us on site to celebrate the hard work our teams have put in this year.” (NASA/Charles Beason)

    Children play on an inflatable at the BBQ Fest with a space shuttle inflatable in the background. (NASA/Charles Beason)

    Marshall team members participate in Bingo during the BBQ hosted by the Marshall Exchange. (NASA/Charles Beason)
    › Back to Top

    Tony Clark has been named to the Senior Executive Service position of deputy director of the Engineering Directorate at NASA’s Marshall Space Flight Center, effective immediately. In this role, Clark will be help lead the center’s largest organization, comprised of more than 2,500 civil service and contractor personnel, who design, test, evaluate, and operate flight hardware and software associated with Marshall-developed space transportation and spacecraft systems, science instruments, and payloads.

    Clark previously served as deputy director of the Space Systems Department at Marshall from 2021-2024 and served as acting director in 2024. In this role, Clark led the design, development, assembly, integration, testing, and delivery of flight, ground, prototype, and development products for NASA human spaceflight programs, science investigations, and exploration initiatives. He aided in the oversight of an annual budget of approximately $70 million and helped manage a diverse, highly technical workforce of approximately 660 civil service employees and contractors.
    Over his three decades of service to NASA, Clark has held numerous key leadership roles, bringing a wealth of technical and supervisory experience to Marshall’s broad range of engineering endeavors. He served as manager of the vehicle equipment area in Johnson Space Center’s Vehicle Systems Integration Office of the Gateway Program from 2018-2021. He was also manager of the Engineering Resource Management Office in Marshall’s Engineering Directorate from 2014-2018, tasked with leading and coordinating resources among eight engineering departments, laboratories and offices staffed by more than 2,300 civil service and contract personnel.
    He was acting deputy manager of the Engineering Directorate’s Spacecraft and Vehicle Systems Department from February 2014 to October 2014. Prior to that, Clark was chief of the directorate’s Electrical Integration and Fabrication Division from 2007-2014, and chief of the Electromagnetic Environmental Effects and Electrical Integration Branch from 2004-2007. He joined Marshall in September 1991 as an electromagnetic environmental effects engineer.
    Clark earned a bachelor’s degree in electrical engineering from Tennessee Technological University in Cookeville in 1989 and a master’s degree in electrical engineering from The Ohio State University in Columbus in 1991.
    Among his many professional awards and honors, Clark received the NASA Exceptional Achievement Medal in 2010 for his work on the Ares IX, the launch vehicle which informed development of NASA’s new rocket, the Space Launch System. He also received a Silver Snoopy award in 1999, reflecting outstanding service and the highest dedication to safe human spaceflight.
    Clark was a founding member in 2004 of the Huntsville Chapter of the Institute of Electrical and Electronic Engineers’ Electromagnetic Compatibility Society.
    › Back to Top

    A passion for puzzles, problem-solving, and propulsion led Sarah Ryan – a native of Columbus, Ohio – to her current position as Raptor engine lead for NASA’s HLS (Human Landing System) insight team at NASA’s Marshall Space Flight Center. The SpaceX Raptor rocket engine powers the company’s Starship and Super Heavy rocket. SpaceX will land astronauts on the Moon for NASA’s Artemis III and Artemis IV missions using the Starship HLS. NASA’s Artemis campaign aims to land the first woman, first person of color, and first international partner astronaut on the Moon.

    “My team looks at how the components of the Raptor engine work together. Then, we evaluate the performance of the full system to make sure it will accomplish the NASA HLS and Artemis missions,” Ryan said. “I get to see lots of pieces and parts of the puzzle and then look at the system as a whole to make sure it meets NASA’s needs.”
    While earning a bachelor’s degree from Case Western Reserve University in Cleveland with a dual major in aerospace engineering and mechanical engineering, Ryan had an internship at Marshall, working on a payload for a science mission onboard the International Space Station.
    After working for a year on satellite design, Ryan returned to Marshall. She noted that the opportunity to work in Marshall’s Engine Systems branch, to be involved with pushing technology forward, and to work on Artemis, really drew her back to NASA. Ryan later earned a master’s degree in aerospace systems from the University of Alabama in Huntsville.
    When not occupied with rocket engine development, Ryan likes to work on quieter hobbies in her free time, including reading, board games, crocheting, and solving all manner of puzzles – crosswords, number games, word games, and more. Her interest for solving puzzles carries over into her work on the Raptor rocket engines for HLS.
    “My favorite tasks are the ones that most resemble a puzzle,” Ryan said. “If we’re investigating an issue and have a lot of information to assess, I love putting all the pieces together and figuring out what happened, why, and the path forward. I enjoy digging into the data and solving those puzzles.”
    With Artemis, NASA will explore more of the Moon than ever before, learn how to live and work away from home, and prepare for future human exploration of Mars. NASA’s SLS (Space Launch System) rocket, exploration ground systems, and Orion spacecraft, along with the HLS, next-generation spacesuits, Gateway lunar space station, and future rovers are NASA’s foundation for deep space exploration.
    › Back to Top

    While precision, perseverance, and engineering are necessary skills in building a Moon rocket, Casey Wolfe knows that one of the most important aspects for the job is teamwork.
    “Engineering is vital, but to get this type of work done, you need to take care of the human element,” said Wolfe, the assistant branch chief of the advanced manufacturing branch in the Materials and Processes Laboratory at NASA’s Marshall Space Flight Center.

    Together with her team, Wolfe is developing and producing the next generation payload adapter for NASA’s SLS (Space Launch System) super-heavy lift rocket. The adapter is made with some of the world’s most advanced composite manufacturing techniques.
    Wolfe’s work integrates the technical day-to-day operations and personnel management of the composites manufacturing team and additive manufacturing team, balancing production of SLS hardware with the creation of new engines using the latest manufacturing technologies. 
    “A lot of my day to day is in managing our two teams, making connections, building relationships, and making sure people feel supported,” Wolfe said. “I conduct individual tag ups with each team member so we can be proactive about anticipating and addressing problems.”
    Wolfe grew up in Huntsville, a place known as the “Rocket City,” but it wasn’t until she visited a job fair while studying at Auburn University for a polymer and fiber engineering degree that she began to consider a career at Marshall. Wolfe applied for and was selected to be a NASA intern through the Pathways Program, working in the non-metallic materials branch of the Materials and Processes Laboratory.
    Wolfe supported a coating system for electrostatic discharge on the first uncrewed test flight of the Orion spacecraft. Launching Dec. 5, 2014, Orion traveled to an altitude of 3,600 miles, orbited Earth twice, and splashed down in the Pacific Ocean. It was during her internship that Wolfe realized how inspirational it felt to be treated like a vital part of a team.
    “The SLS program gave everyone permission to sign the hardware, even me – even though I was just an intern,” Wolfe said. “It was impactful to me, knowing that something I had worked on had my name on it and went to space.” 
    Since being hired by NASA, Wolfe’s work has supported development of the Orion stage adapter diaphragms for Artemis II and Artemis III, and the payload adapters for Artemis IV and beyond. The first three Artemis flights use the SLS Block 1 rocket variant, which can send more than 27 metric tons (59,500 pounds) to the Moon in a single launch. Beginning with Artemis IV, the SLS Block 1B variant will use the new, more powerful exploration upper stage to enable more ambitious missions to deep space, with the cone-shaped payload adapter situated atop the rocket’s exploration upper stage. The new variant will be capable of launching more than 38 metric tons (84,000 pounds) to the Moon in a single launch.
    “While the engineering development unit of the payload adapter is undergoing large-scale testing, our team is working on the production of the qualification article, which will also be tested,” Wolfe said. “Flight components should be starting fabrication in the next six months.”
    When Wolfe isn’t working, she enjoys hiking, gardening, and hanging out with her dogs and large family. Recently, she signed another piece of SLS hardware headed to space: the Orion stage adapter for the second Artemis mission.
    With as many responsibilities as Wolfe juggles, it’s easy to lose sight of her work’s impact. “I work in the lab around the hardware all the time, and in many ways, it can become very rote,” she said.
    But Wolfe won’t forget what she saw one evening when she worked late: “Everybody was gone, and as I walked past the launch vehicle stage adapter, there were two security guards taking pictures of each other in front of it. It was one of those things that made me step back and reflect on what my team accomplishes every day: making history happen.”
    NASA is working to land the first woman, first person of color, and its first international partner astronaut on the Moon under Artemis. SLS is part of NASA’s backbone for deep space exploration, along with the Orion spacecraft, supporting ground systems, advanced spacesuits and rovers, the Gateway in orbit around the Moon, and commercial human landing systems. SLS is the only rocket that can send Orion, astronauts, and supplies to the Moon in a single launch.
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    By Rick Smith
    New findings using data from NASA’s IXPE (Imaging X-ray Polarimetry Explorer) mission offer unprecedented insight into the shape and nature of a structure important to black holes called a corona.
    A corona is a shifting plasma region that is part of the flow of matter onto a black hole, about which scientists have only a theoretical understanding. The new results reveal the corona’s shape for the first time, and may aid scientists’ understanding of the corona’s role in feeding and sustaining black holes.

    Many black holes, so named because not even light can escape their titanic gravity, are surrounded by accretion disks, debris-cluttered whirlpools of gas. Some black holes also have relativistic jets – ultra-powerful outbursts of matter hurled into space at high speed by black holes that are actively eating material in their surroundings.
    Less well known, perhaps, is that snacking black holes, much like Earth’s Sun and other stars, also possess a superheated corona. While the Sun’s corona, which is the star’s outermost atmosphere, burns at roughly 1.8 million degrees Fahrenheit, the temperature of a black hole corona is estimated at billions of degrees.
    Astrophysicists previously identified coronae among stellar-mass black holes – those formed by a star’s collapse – and supermassive black holes such as the one at the heart of the Milky Way galaxy.
    “Scientists have long speculated on the makeup and geometry of the corona,” said Lynne Saade, a postdoctoral researcher at NASA’s Marshall Space Flight Center and lead author of the new findings. “Is it a sphere above and below the black hole, or an atmosphere generated by the accretion disk, or perhaps plasma located at the base of the jets?”
    Enter IXPE, which specializes in X-ray polarization, the characteristic of light that helps map the shape and structure of even the most powerful energy sources, illuminating their inner workings even when the objects are too small, bright, or distant to see directly. Just as we can safely observe the Sun’s corona during a total solar eclipse, IXPE provides the means to clearly study the black hole’s accretion geometry, or the shape and structure of its accretion disk and related structures, including the corona.
    “X-ray polarization provides a new way to examine black hole accretion geometry,” Saade said. “If the accretion geometry of black holes is similar regardless of mass, we expect the same to be true of their polarization properties.”
    IXPE demonstrated that, among all black holes for which coronal properties could be directly measured via polarization, the corona was found to be extended in the same direction as the accretion disk – providing, for the first time, clues to the corona’s shape and clear evidence of its relationship to the accretion disk. The results rule out the possibility that the corona is shaped like a lamppost hovering over the disk. 
    The research team studied data from IXPE’s observations of 12 black holes, among them Cygnus X-1 and Cygnus X-3, stellar-mass binary black hole systems about 7,000 and 37,000 light-years from Earth, respectively, and LMC X-1 and LMC X-3, stellar-mass black holes in the Large Magellanic Cloud more than 165,000 light-years away. IXPE also observed a number of supermassive black holes, including the one at the center of the Circinus galaxy, 13 million light-years from Earth, and those in galaxies NGC 1068 and NGC 4151, 47 million light-years away and nearly 62 million light-years away, respectively.
    Stellar mass black holes typically have a mass roughly 10 to 30 times that of Earth’s Sun, whereas supermassive black holes may have a mass that is millions to tens of billions of times larger. Despite these vast differences in scale, IXPE data suggests both types of black holes create accretion disks of similar geometry.
    That’s surprising, said Marshall astrophysicist Philip Kaaret, principal investigator for the IXPE mission, because the way the two types are fed is completely different.
    “Stellar-mass black holes rip mass from their companion stars, whereas supermassive black holes devour everything around them,” he said. “Yet the accretion mechanism functions much the same way.”
    That’s an exciting prospect, Saade said, because it suggests that studies of stellar-mass black holes – typically much closer to Earth than their much more massive cousins – can help shed new light on properties of supermassive black holes as well. The team next hopes to make additional examinations of both types.
    Saade anticipates there’s much more to glean from X-ray studies of these behemoths. “IXPE has provided the first opportunity in a long time for X-ray astronomy to reveal the underlying processes of accretion and unlock new findings about black holes,” she said.
    The complete findings are available in the latest issue of The Astrophysical Journal.
    Smith, an Aeyon employee, supports the Marshall Office of Communications.
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    The Oort Cloud comet, called C/2023 A3 Tsuchinshan-ATLAS, passes over Southeast Louisiana near New Orleans, home of NASA’s Michoud Assembly Facility on Oct. 13. The comet is making its first appearance in documented human history; it was last seen in the night sky 80,000 years ago. The Tsuchinshan-ATLAS comet made its first close pass by Earth in mid-October and will remain visible to viewers in the Northern Hemisphere just between the star Arcturus and planet Venus through early November. Eric Bordelon, a photographer for Michoud, captured the image, which was featured as NASA’s image of the day. “On Sunday evening I decided to head out to find the comet I’ve read so much about,” Bordelon said. “Struggling at first to see it, once my eyes adjusted to the darkness I could faintly see it. I pulled my camera out and set up a tripod, with a longer exposure around six seconds I was able to capture this shot with a single frame. The far off setting sun made a beautiful color gradient in the dark sky with the other stars just beginning to appear.” Read more about the comet. (NASA/Eric Bordelon)
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    A new NASA/ESA Hubble Space Telescope image features the striking spiral galaxy Messier 90 (M90, also NGC 4569), located in the constellation Virgo. In 2019, Hubble released an image of M90 created with Wide Field and Planetary Camera 2 (WFPC2) data taken in 1994, soon after its installation. That WFPC2 image has a distinctive stair-step pattern due to the layout of its sensors. Wide Field Camera 3 (WFC3) replaced WFPC2 in 2009 and Hubble used WFC3 when it turned its aperture to Messier 90 again in 2019 and 2023. That data resulted in this stunning new image, providing a much fuller view of the galaxy’s dusty disk, its gaseous halo, and its bright core.

    The inner regions of M90’s disk are sites of star formation, seen here in red H-alpha light from nebulae. M90 sits among the galaxies of the relatively nearby Virgo Cluster, and its orbit took M90 on a path near the cluster’s center about three hundred million years ago. The density of gas in the inner cluster weighed on M90 like a strong headwind, stripping enormous quantities of gas from the galaxy and creating the diffuse halo we see around it. This gas is no longer available to form new stars in M90, with the spiral galaxy eventually fading as a result.
    M90 is located 55 million light-years from Earth, but it’s one of the very few galaxies getting closer to us. Its orbit through the Virgo cluster has accelerated so much that M90 is in the process of escaping the cluster entirely. By happenstance, it’s moving in our direction. Astronomers have measured other galaxies in the Virgo cluster at similar speeds, but in the opposite direction. As M90 continues to move toward us over billions of years, it will also be evolving into a lenticular galaxy.
    › Back to Top

    MIL OSI USA News

  • MIL-OSI Europe: Press release – EU budget for 2025 to focus on research, health, education, and climate action

    Source: European Parliament

    Parliament demands an EU budget for 2025 that focuses on improving people’s lives, boosting competitiveness, and addressing current challenges.

    MEPs set the overall level of commitment appropriations for the 2025 draft budget at almost €201 billion, €1.24 billion more than the Commission’s proposal from last June. Parliament wants to boost programmes vital in addressing health challenges, supporting young people, agriculture and rural areas, helping people suffering from natural disasters, boosting climate action, managing migration and security needs, and strengthening EU support for neighbouring regions experiencing geopolitical and humanitarian crises. MEPs restored €1.52  billion in funding cuts proposed by the Council, and set payment appropriations at €153.5 billion.

    Repayment costs for the European Recovery Instrument (EURI)

    The EURI repayment costs, which are twice the amount initially forecast for 2025, should not result in reduced funding for essential programmes, like Erasmus+ or R&D, according to Parliament. MEPs want to reverse cuts made by member states to appropriations dedicated to these areas and to use the new “EURI cascade mechanism” introduced by the revision of the EU’s long-term budget . This mechanism is designed to manage escalating Next Generation EU borrowing costs without affecting key initiatives, maintaining the budget’s flexibility and response capacity.

    Quotes

    Victor Negrescu (S&D, Romania), general rapporteur for the EU budget 2025 (for section III – Commission), said: “Today’s vote is a strong signal of support for a citizen-centred EU budget focused on investments in economic development and improving people’s lives. That is why we are asking for an increase of €110 million for actions in the area of health, an additional €70 million for Erasmus, €42 million to protect our citizens against the effects of natural disasters, an additional €96 million for agriculture, €120 million for humanitarian aid, and €110 million for the Eastern and Southern Neighbourhood.”

    Niclas Herbst (EPP, Germany), rapporteur for the other sections, said: “Cybersecurity is vital for EU institutions and has remained a pressing concern since 2023. Another key priority is ensuring that the institutions have enough staff to fulfil new tasks, like for the implementation of the Artificial Intelligence Act. Additionally, improving the security of European External Action Service buildings, particularly in delegations situated in remote and high-risk areas, is essential. To address this, an increase of €37 million is required.”

    Next steps

    The vote initiates three weeks of “conciliation” talks with the Council, with the aim of reaching a deal for next year’s budget, which then has to be voted on by Parliament and signed by its President.

    Background

    Over 90% of the EU budget funds activities in EU countries and beyond, benefiting citizens, regions, farmers, researchers, students, NGOs, and businesses. Unlike national budgets, the EU budget is primarily aimed at investment, to generate growth and opportunities across the European Union.

    The EU serves 27 countries with a total population of 450 million. With these figures in mind, the annual EU budget is actually relatively small – on average €160-180 billion annually in 2021-27. This is comparable to the national budget of Denmark, which serves 5.6 million people, and is about 30% smaller than the budget of Poland, which serves 38 million people. (Source: Commission)

    MIL OSI Europe News

  • MIL-OSI: Hanover Bancorp, Inc. Reports Third Quarter 2024 Results and Declares $0.10 Quarterly Cash Dividend

    Source: GlobeNewswire (MIL-OSI)

    Third Quarter Performance Highlights

    • Net Income: Net income for the quarter ended September 30, 2024 totaled $3.5 million or $0.48 per diluted share (including Series A preferred shares). Adjusted (non-GAAP) net income (excluding severance and retirement expenses) was $3.7 million or $0.50 per diluted share for the quarter ended September 30, 2024.
    • Record Non-interest Income: The Company reported record non-interest income of $4.0 million for the quarter ended September 30, 2024, an increase of $0.3 million or 9.17% from the quarter ended June 30, 2024 and $0.2 million or 6.66% from the quarter ended September 30, 2023.
    • Net Interest Income: Net interest income was $13.1 million for the quarter ended September 30, 2024, an increase of $1.3 million, or 11.04% from the September 30, 2023 quarter.
    • Net Interest Margin: The Company’s net interest margin during the quarter ended September 30, 2024 increased to 2.37% from 2.29% in the quarter ended September 30, 2023.
    • Strong Liquidity Position: At September 30, 2024, undrawn liquidity sources, which include cash and unencumbered securities and secured and unsecured funding capacity, totaled $637.1 million or approximately 240% of uninsured deposit balances.
    • Deposit Activity: Core deposits, consisting of Demand, NOW, Savings and Money Market, increased $71.0 million or 5.14% from December 31, 2023. Total deposits increased $52.9 million or 2.78% from December 31, 2023. Insured and collateralized deposits, which include municipal deposits, accounted for approximately 86% of total deposits at September 30, 2024.
    • Loan Growth: Loans totaled $2.01 billion, a net increase of $48.6 million or 3.31% annualized, from December 31, 2023. The Company’s commercial real estate concentration ratio continued to improve, decreasing to 397% of capital at September 30, 2024 from 432% of capital at December 31, 2023 and 448% of capital at September 30, 2023. The Company continues to focus loan growth primarily in residential loan products originated for sale to specific buyers in the secondary market, C&I and SBA loans, which strategically enhances our management of liquidity and capital while producing additional non-interest income.
    • Asset Quality: At September 30, 2024, the Bank’s asset quality remained solid with non-performing loans totaling $15.5 million, representing 0.77% of the total loan portfolio, and the allowance for credit losses equaling 1.17% of total loans. Loans secured by office space accounted for 2.27% of the total loan portfolio with a total balance of $45.5 million, of which less than 1% is located in Manhattan.
    • Banking Initiatives: At September 30, 2024, the Company’s banking initiatives reflected continuing momentum:
      • SBA & USDA Banking: Gains on sale of SBA loans totaled $2.4 million for the quarter ended September 30, 2024, representing a 63.83% increase over the comparable 2023 quarter. Total SBA loans sold were $27.1 million for the quarter ended September 30, 2024, representing a 47.00% increase over the comparable 2023 quarter. Premiums earned on the sale of SBA loans increased to 9.59% for the quarter ended September 30, 2024 from 8.66% for the quarter ended September 30, 2023.
      • C&I Banking/Hauppauge Business Banking Center: The C&I Banking Team and the Hauppauge Business Banking Center increased deposits to $96.0 million as of September 30, 2024 from $36.1 million at September 30, 2023. Loan originations tied to this office were $8 million during the quarter. Momentum continues to build with current deposits of $105 million and deposit and C&I loan pipelines related to this office of $43 million and $104 million, respectively.
      • Residential Lending: The Bank continues to originate loans for its portfolio while developing the flow origination program launched in late 2023. Of the $27.3 million in closed loans originated in the quarter ended September 30, 2024, $7.4 million were originated for the Bank’s portfolio and reflected a weighted average yield of 7.59% before origination and other fees, which average 50-100 bps per loan, and a weighted average LTV of 61%.
    • Tangible Book Value Per Share: Tangible book value per share (including Series A preferred shares) was $23.28 at September 30, 2024 compared to $22.51 at December 31, 2023.  
    • Quarterly Cash Dividend: The Company’s Board of Directors approved a $0.10 per share cash dividend on both common and Series A preferred shares payable on November 13, 2024 to stockholders of record on November 6, 2024.
    • Port Jefferson Branch: The Company has received regulatory approval for the opening of a full-service branch in Port Jefferson, New York. Business development staff have already joined the Company in anticipation of the opening of this location. The Bank expects this site to be fully operational in the first quarter of 2025.

    MINEOLA, N.Y., Oct. 23, 2024 (GLOBE NEWSWIRE) — Hanover Bancorp, Inc. (“Hanover” or “the Company” – NASDAQ: HNVR), the holding company for Hanover Community Bank (“the Bank”), today reported results for the quarter ended September 30, 2024 and the declaration of a $0.10 per share cash dividend on both common and Series A preferred shares payable on November 13, 2024 to stockholders of record on November 6, 2024.

    Earnings Summary for the Quarter Ended September 30, 2024

    The Company reported net income for each of the quarters ended September 30, 2024 and 2023 of $3.5 million or $0.48 per diluted share (including Series A preferred shares). The Company recorded adjusted (non-GAAP) net income (excluding severance and retirement expenses) of $3.7 million or $0.50 per diluted share in the quarter ended September 30, 2024, versus adjusted (non-GAAP) net income (excluding a litigation settlement payment) of $2.8 million or $0.38 per diluted share in the comparable 2023 quarter. Returns on average assets, average stockholders’ equity and average tangible equity were 0.62%, 7.35% and 8.19%, respectively, for the quarter ended September 30, 2024, versus 0.66%, 7.58% and 8.47%, respectively, for the comparable quarter of 2023.   Adjusted (non-GAAP) returns, exclusive of severance and retirement expenses on average assets, average stockholders’ equity and average tangible equity were 0.65%, 7.69% and 8.56%, respectively, in the quarter ended September 30, 2024, versus 0.53%, 6.00% and 6.71%, respectively, in the comparable 2023 quarter, exclusive of a litigation settlement payment.

    While net interest income and non-interest income increased during the quarter ended September 30, 2024 compared to the September 30, 2023 quarter, this was offset by an increase in non-interest expenses, particularly compensation and benefits, resulting in flat earnings between these periods.   The increase in non-interest income is primarily related to the increase in the gain on sale of loans held-for-sale which was partially offset by a decrease in other operating income. In the September 30, 2023 quarter, the Company settled ongoing litigation and received a settlement payment of $975 thousand which was recorded in other operating income. Included in compensation and benefits expense in the third quarter of 2024 was expense related to additional staff for the SBA, C&I Banking and Operations teams and severance payments in August 2024 paid in connection with a loan personnel restructuring initiative. These expenses were offset by lower incentive compensation expense resulting from reduced projected lending activity and lower deferred loan origination costs.

    Net interest income was $13.1 million for the quarter ended September 30, 2024, an increase of $1.3 million, or 11.04%, versus the comparable 2023 quarter due to improvement of the Company’s net interest margin to 2.37% in the 2024 quarter from 2.29% in the comparable 2023 quarter. The yield on interest earning assets increased to 6.17% in the 2024 quarter from 5.61% in the comparable 2023 quarter, an increase of 56 basis points that was partially offset by a 58 basis point increase in the cost of interest-bearing liabilities to 4.53% in 2024 from 3.95% in the third quarter of 2023.

    Earnings Summary for the Nine Months Ended September 30, 2024

    For the nine months ended September 30, 2024, the Company reported net income of $8.4 million or $1.14 per diluted share (including Series A preferred shares), versus $9.8 million or $1.33 per diluted share (including Series A preferred shares) in the comparable 2023 nine-month period.   The Company recorded adjusted (non-GAAP) net income (excluding severance and retirement expenses) of $8.6 million or $1.16 per diluted share for the nine months ended September 30, 2024, versus adjusted (non-GAAP) net income (excluding severance and retirement expenses and a litigation settlement payment) of $9.4 million or $1.27 per diluted share in the comparable 2023 nine-month period.

    The decrease in net income recorded for the nine months ended September 30, 2024 from the comparable 2023 period resulted from an increase in the provision for credit losses and an increase in non-interest expense, which were partially offset by an increase in non-interest income, consisting primarily of gain on sale of loans held-for-sale. The increase in non-interest expense was primarily attributed to additional staff for the SBA, C&I Banking and Operations teams.   The Company’s effective tax rate decreased to 24.50% for the nine months ended September 30, 2024 from 26.03% in the comparable 2023 period.

    Net interest income was $39.3 million for the nine months ended September 30, 2024, a slight increase of $0.1 million, or 0.14% from the comparable 2023 period. The Company’s net interest margin was 2.41% in the 2024 period and 2.65% in the comparable 2023 period. The yield on interest earning assets increased to 6.14% in the 2024 period from 5.58% in the comparable 2023 period, an increase of 56 basis points that was offset by a 95 basis point increase in the cost of interest-bearing liabilities to 4.45% in 2024 from 3.50% in the comparable 2023 period due to the rapid and significant rise in interest rates.

    Michael P. Puorro, Chairman and Chief Executive Officer, commented on the Company’s quarterly results: “We are pleased with third-quarter results, which reflect the benefits of our diversified revenue streams. Strategic expansion of our C&I banking and government guaranteed lending initiatives continue to deliver sustained results. The success of our Hauppauge Business Banking Center over the last 16 months has yielded exceptional results as evidenced by over $100 million in deposits. Our investment in diversifying our residential lending activities from portfolio originations to including flow originations is gaining momentum. The continued decline in interest rates forecast by many economists is expected to provide sustained net interest margin expansion over the near term, having an anticipated positive impact on earnings. We believe these factors, coupled with our commitment to efficiency across our organization, position us for continued growth and opportunity, particularly in a market with continued consolidation. We continue to strategically seek opportunities to recruit talent and expand our footprint in the underserved Long Island community and wider New York City markets.”

    Balance Sheet Highlights

    Total assets at September 30, 2024 were $2.33 billion versus $2.27 billion at December 31, 2023. Total securities available for sale at September 30, 2024 were $98.4 million, an increase of $36.9 million from December 31, 2023, primarily driven by growth in U.S. Treasury securities, corporate bonds and mortgage-backed securities.

    Total deposits at September 30, 2024 were $1.96 billion, an increase of $52.9 million or 2.78%, compared to $1.90 billion at December 31, 2023. Our loan to deposit ratio was 102% at September 30, 2024 and 103% at December 31, 2023.

    Although core deposits, comprised of Demand, NOW, Savings and Money Market, grew to $1.45 billion as of September 30, 2024 from $1.38 billion as of December 31, 2023, Demand deposit balances decreased from $207.8 million to $206.3 million during the same period. This decrease was confined to deposits made by residential loan borrowers in anticipation of residential loan closings. These funds comprise the equity residential borrowers are required to contribute to residential loan closings. The volume of these deposits rise and fall in proportion to the volume of anticipated residential loan closings. As the pace of residential lending increases, the volume of Demand deposits will increase accordingly. Demand deposits, net of balances related to residential loan closings, grew to $181.8 million as of September 30, 2024 from $166.4 million as of December 31, 2023, an increase of 9.28%, underscoring the continued success of our C&I Banking vertical.

    The Company had $366.2 million in total municipal deposits at September 30, 2024, at a weighted average rate of 4.24% versus $528.1 million at a weighted average rate of 4.62% at December 31, 2023. The Company’s municipal deposit program is built on long-standing relationships developed in the local marketplace. This core deposit business will continue to provide a stable source of funding for the Company’s lending products at costs lower than those of consumer deposits and market-based borrowings.   The Company continues to broaden its municipal deposit base and currently services 39 customer relationships.

    Total borrowings at September 30, 2024 were $125.8 million, with a weighted average rate and term of 4.25% and 22 months, respectively. At September 30, 2024 and December 31, 2023, the Company had $107.8 million and $126.7 million, respectively, of term FHLB advances outstanding. The Company had $18.0 million of FHLB overnight borrowings outstanding at September 30, 2024 and none at December 31, 2023. At September 30, 2024 and December 31, 2023, the Company’s borrowings from the Federal Reserve’s Paycheck Protection Program Liquidity Facility (“PPPLF”) were $0 and $2.3 million, respectively.   The Company had no borrowings outstanding under lines of credit with correspondent banks at September 30, 2024 and December 31, 2023.   The Company utilizes a number of strategies to manage interest rate risk, including interest rate swap agreements which currently provide a benefit to net interest income.

    Stockholders’ equity was $192.3 million at September 30, 2024 compared to $184.8 million at December 31, 2023. The $7.5 million increase was primarily due to an increase of $6.2 million in retained earnings and a decrease of $0.3 million in accumulated other comprehensive loss. The increase in retained earnings was due primarily to net income of $8.4 million for the nine months ended September 30, 2024, which was offset by $2.2 million of dividends declared. The accumulated other comprehensive loss at September 30, 2024 was 1.10% of total equity and was comprised of a $1.0 million after tax net unrealized loss on the investment portfolio and a $1.1 million after tax net unrealized loss on derivatives.

    Loan Portfolio

    For the nine months ended September 30, 2024, the Bank’s loan portfolio grew to $2.01 billion, for an increase of $48.6 million or 3.31% annualized. Growth was concentrated primarily in residential, SBA and C&I loans. At September 30, 2024, the Company’s residential loan portfolio (including home equity) amounted to $745.9 million, with an average loan balance of $483 thousand and a weighted average loan-to-value ratio of 57%. Commercial real estate and multifamily loans totaled $1.09 billion at September 30, 2024, with an average loan balance of $1.5 million and a weighted average loan-to-value ratio of 59%. As will be discussed below, only approximately 37% of the multifamily portfolio is subject to rent regulation. The Company’s commercial real estate concentration ratio continued to improve, decreasing to 397% of capital at September 30, 2024 from 432% of capital at December 31, 2023, with loans secured by office space accounting for 2.27% of the total loan portfolio and totaling $45.5 million. The Company’s loan pipeline with executed term sheets at September 30, 2024 is approximately $142 million, with approximately 97% being niche-residential, conventional C&I and SBA and USDA lending opportunities.  

    Historically, the Bank generated additional income by strategically originating and selling residential and government guaranteed loans to other financial institutions at premiums, while also retaining servicing rights in some sales. However, with the rapid increases in interest rates in recent years, the appetite among the Bank’s purchasers of residential loans for acquiring pools of loans declined, eliminating the Bank’s ability to sell residential loans in its portfolio on desirable terms. Commencing in late 2023, the Bank initiated development of a flow origination program under which the Bank originates individual loans for sale to specific buyers, thereby positioning the Bank to resume residential loan sales and generate fee income to complement sale premiums earned from the sale of the guaranteed portion of SBA loans. During the quarter ended September 30, 2024, the Company sold $16.5 million of residential loans under this program and recorded gains on sale of loans held-for-sale of $0.4 million. We expect the volume of activity to increase as the year progresses and our flow pipeline continues to build. Because we continue to prioritize the management of liquidity and capital, new business development is largely focused on flow originations over portfolio growth.

    The Bank’s investment in government guaranteed lending continues to yield results. During the quarters ended September 30, 2024 and 2023, the Company sold approximately $27.1 million and $18.4 million, respectively, in the government guaranteed portion of SBA loans and recorded gains on sale of loans held-for-sale of $2.4 million and $1.5 million, respectively.

    Commercial Real Estate Statistics

    A significant portion of the Bank’s commercial real estate portfolio consists of loans secured by Multi-Family and CRE-Investor owned real estate that are predominantly subject to fixed interest rates for an initial period of 5 years. The Bank’s exposure to Land/Construction loans is minor at $9.5 million, all at floating interest rates, and CRE-owner occupied loans have a sizable mix of floating rates. As shown below, these two portfolios have only 11% combined of loans maturing through the balance of 2024 and 2025, with 55% maturing in 2027 alone.

    Multi-Family Market Rent Portfolio Fixed Rate Reset/Maturity Schedule   Multi-Family Stabilized Rent Portfolio Fixed Rate Reset/Maturity Schedule
    Calendar Period
    (loan data as of
    9/30/24)
      #
    Loans
      Total O/S
    ($000’s
    omitted)
      Avg O/S
    ($000’s
    omitted)
      Avg Interest
    Rate
      Calendar Period
    (loan data as of
    9/30/24)
      #
    Loans
      Total O/S
    ($000’s
    omitted)
      Avg O/S
    ($000’s
    omitted)
      Avg Interest
    Rate
                                                     
    2024   3   $ 1,861   $ 620   7.07 %   2024   4   $ 4,014   $ 1,004   5.43 %
    2025   9     15,977     1,775   4.16 %   2025   14     19,438     1,388   4.57 %
    2026   36     119,170     3,310   3.66 %   2026   20     43,147     2,157   3.67 %
    2027   72     178,368     2,477   4.31 %   2027   53     125,417     2,366   4.22 %
    2028   18     29,980     1,666   6.16 %   2028   11     9,966     906   7.12 %
    2029+   8     5,647     706   7.32 %   2029+   5     2,326     465   6.40 %
    Fixed Rate   146     351,003     2,404   4.30 %   Fixed Rate   107     204,308     1,909   4.33 %
    Floating Rate   3     457     152   9.56 %   Floating Rate   1     1,804     1,804   6.25 %
    Total   149   $ 351,460   $ 2,359   4.32 %   Total   108   $ 206,112   $ 1,908   4.34 %
    CRE Investor Portfolio Fixed Rate Reset/Maturity Schedule
    Calendar Period
    (loan data as of
    9/30/24)
      #
    Loans
      Total O/S
    ($000’s omitted)
      Avg O/S
    ($000’s omitted)
      Avg Interest
    Rate
                           
    2024   18   $ 30,965   $ 1,720   5.56 %
    2025   27     18,259     676   5.11 %
    2026   33     45,806     1,388   4.85 %
    2027   87     149,261     1,716   4.75 %
    2028   32     32,826     1,026   6.65 %
    2029+   16     6,519     407   6.15 %
    Fixed Rate   213     283,636     1,332   5.13 %
    Floating Rate   3     12,368     4,123   8.80 %
    Total CRE-Inv.   216   $ 296,004   $ 1,370   5.28 %


    Rental breakdown of Multi-Family portfolio

    The table below segments our portfolio of loans secured by Multi-Family properties based on rental terms and location. As shown below, 63% of the combined portfolio is secured by properties subject to free market rental terms, the dominant tenant type, and both the Market Rent and Stabilized Rent segments of our portfolio present very similar average borrower profiles. The portfolio is primarily located in the New York City boroughs of Brooklyn, the Bronx and Queens. 

    Multi-Family Loan Portfolio – Loans by Rent Type
    Rent Type   # of Notes   Outstanding
    Loan Balance
      % of Total
    Multi-Family
      Avg Loan
    Size
      LTV   Current
    DSCR
      Avg #
    of Units
            ($000’s omitted)         ($000’s omitted)              
                                         
    Market   149   $ 351,460   63 % $ 2,359   61.8 % 1.40   11
    Location                                    
    Manhattan   7   $ 17,911   3 % $ 2,559   52.0 % 1.63   15
    Other NYC   94   $ 246,140   44 % $ 2,619   61.5 % 1.39   10
    Outside NYC   48   $ 87,409   16 % $ 1,821   64.8 % 1.40   12
                                         
    Stabilized   108   $ 206,112   37 % $ 1,908   63.1 % 1.38   11
    Location                                    
    Manhattan   7   $ 10,892   2 % $ 1,556   53.5 % 1.49   15
    Other NYC   89   $ 176,115   32 % $ 1,979   63.5 % 1.38   11
    Outside NYC   12   $ 19,105   3 % $ 1,592   64.7 % 1.40   16


    Office Property Exposure

    The Bank’s exposure to the Office market is minor at $45 million (2% of all loans), has a 1.8x weighted average DSCR, a 54% weighted average LTV and less than $400 thousand of exposure in Manhattan. The portfolio has no delinquencies, defaults or modifications.

    Asset Quality and Allowance for Credit Losses

    The Bank’s asset quality ratios remain solid. At September 30, 2024, the Company reported $15.5 million in non-performing loans which represented 0.77% of total loans outstanding. Non-performing loans were $14.5 million at December 31, 2023 and $15.8 million at June 30, 2024.

    During the third quarter of 2024, the Bank recorded a provision for credit losses expense of $0.2 million. The September 30, 2024, allowance for credit losses balance was $23.4 million versus $19.7 million at December 31, 2023 and $23.6 million at June 30, 2024. The allowance for credit losses as a percent of total loans was 1.17% at September 30 and June 30, 2024, inclusive of a $2.5 million allowance on an individually analyzed loan, versus 1.00% at December 31, 2023, which does not include the aforementioned $2.5 million allowance.  

    Net Interest Margin

    The Bank’s net interest margin increased to 2.37% for the quarter ended September 30, 2024 from 2.29% in the quarter ended September 30, 2023. The increase from the prior year quarter was primarily related to the increase in the average yield on loans, partially offset by the increase in the average total cost of funds. The Bank’s net interest margin was 2.46% in the quarter ended June 30, 2024, inclusive of $321 thousand or 6 bps related to an interest recovery on the sale of a non-performing loan. There were no such recoveries in the current quarter. Further, contributing to the decrease from the prior linked quarter was an increase in the total cost of interest-bearing deposits primarily related to the delayed timing of the Fed rate cut and our decision to ensure deposit retention via shorter duration products. Despite the linked quarter margin compression, we believe the Company is well positioned for the current or more favorable interest rate environments.

    About Hanover Community Bank and Hanover Bancorp, Inc.

    Hanover Bancorp, Inc. (NASDAQ: HNVR), is the bank holding company for Hanover Community Bank, a community commercial bank focusing on highly personalized and efficient services and products responsive to client needs. Management and the Board of Directors are comprised of a select group of successful local businesspeople who are committed to the success of the Bank by knowing and understanding the metro-New York area’s financial needs and opportunities. Backed by state-of-the-art technology, Hanover offers a full range of financial services. Hanover offers a complete suite of consumer, commercial, and municipal banking products and services, including multi-family and commercial mortgages, residential loans, business loans and lines of credit. Hanover also offers its customers access to 24-hour ATM service with no fees attached, free checking with interest, telephone banking, advanced technologies in mobile and internet banking for our consumer and business customers, safe deposit boxes and much more. The Company’s corporate administrative office is located in Mineola, New York where it also operates a full-service branch office along with additional branch locations in Garden City Park, Hauppauge, Forest Hills, Flushing, Sunset Park, Rockefeller Center and Chinatown, New York, and Freehold, New Jersey, with a new branch opening in Port Jefferson, New York in the first quarter of 2025.

    Hanover Community Bank is a member of the Federal Deposit Insurance Corporation and is an Equal Housing/Equal Opportunity Lender. For further information, call (516) 548-8500 or visit the Bank’s website at www.hanoverbank.com.

    Non-GAAP Disclosure

    This discussion, including the financial statements attached thereto, includes non-GAAP financial measures which include the Company’s adjusted net income, adjusted basic and diluted earnings per share, adjusted return on average assets, adjusted return on average equity, tangible common equity (“TCE”) ratio, TCE, tangible assets, tangible book value per share, return on average tangible equity and efficiency ratio. A non-GAAP financial measure is a numerical measure of historical or future performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes that the presentation of non-GAAP financial measures provides both management and investors with a greater understanding of the Company’s operating results and trends in addition to the results measured in accordance with GAAP, and provides greater comparability across time periods. While management uses non-GAAP financial measures in its analysis of the Company’s performance, this information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP. The Company’s non-GAAP financial measures may not be comparable to similarly titled measures used by other financial institutions.

    With respect to the calculations of and reconciliations of adjusted net income, TCE, tangible assets, TCE ratio and tangible book value per share, reconciliations to the most comparable U.S. GAAP measures are provided in the tables that follow.

    Forward-Looking Statements

    This release may contain certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and may be identified by the use of such words as “may,” “believe,” “expect,” “anticipate,” “should,” “plan,” “estimate,” “predict,” “continue,” and “potential” or the negative of these terms or other comparable terminology. Examples of forward-looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of Hanover Bancorp, Inc. Any or all of the forward-looking statements in this release and in any other public statements made by Hanover Bancorp, Inc. may turn out to be incorrect. They can be affected by inaccurate assumptions that Hanover Bancorp, Inc. might make or by known or unknown risks and uncertainties, including those discussed in our Annual Report on Form 10-K under Item 1A – Risk Factors, as updated by our subsequent filings with the Securities and Exchange Commission. Further, the adverse effect of health emergencies or natural disasters on the Company, its customers, and the communities where it operates may adversely affect the Company’s business, results of operations and financial condition for an indefinite period of time. Consequently, no forward-looking statement can be guaranteed. Hanover Bancorp, Inc. does not intend to update any of the forward-looking statements after the date of this release or to conform these statements to actual events.

    HANOVER BANCORP, INC.
    STATEMENTS OF CONDITION (unaudited)
    (dollars in thousands)
                 
        September 30,   June 30,   December 31,
          2024       2024       2023  
    Assets            
    Cash and cash equivalents $ 141,231     $ 141,115     $ 177,207  
    Securities-available for sale, at fair value   98,359       98,813       61,419  
    Investments-held to maturity   3,828       3,902       4,041  
    Loans held for sale   16,721       11,615       8,904  
                 
    Loans, net of deferred loan fees and costs   2,005,813       2,012,954       1,957,199  
    Less: allowance for credit losses   (23,406 )     (23,644 )     (19,658 )
    Loans, net   1,982,407       1,989,310       1,937,541  
                 
    Goodwill     19,168       19,168       19,168  
    Premises & fixed assets   16,373       16,541       15,886  
    Operating lease assets   8,776       9,210       9,754  
    Other assets   40,951       41,424       36,140  
      Assets $ 2,327,814     $ 2,331,098     $ 2,270,060  
                 
    Liabilities and stockholders’ equity          
    Core deposits $ 1,453,444     $ 1,477,824     $ 1,382,397  
    Time deposits   504,100       464,105       522,198  
    Total deposits   1,957,544       1,941,929       1,904,595  
                 
    Borrowings   125,805       148,953       128,953  
    Subordinated debentures   24,675       24,662       24,635  
    Operating lease liabilities   9,472       9,911       10,459  
    Other liabilities   17,979       15,571       16,588  
      Liabilities   2,135,475       2,141,026       2,085,230  
                 
    Stockholders’ equity   192,339       190,072       184,830  
      Liabilities and stockholders’ equity $ 2,327,814     $ 2,331,098     $ 2,270,060  
    HANOVER BANCORP, INC.
    CONSOLIDATED STATEMENTS OF INCOME (unaudited)
    (dollars in thousands, except per share data)
                       
        Three Months Ended   Nine Months Ended  
        9/30/2024   9/30/2023   9/30/2024   9/30/2023  
                       
    Interest income $ 34,113   $ 28,952   $ 99,965   $ 82,471  
    Interest expense   21,011     17,153     60,681     43,243  
      Net interest income   13,102     11,799     39,284     39,228  
    Provision for credit losses (1)   200     500     4,540     1,932  
      Net interest income after provision for credit losses   12,902     11,299     34,744     37,296  
                       
    Loan servicing and fee income   960     681     2,709     2,031  
    Service charges on deposit accounts   123     75     333     212  
    Gain on sale of loans held-for-sale   2,834     1,468     7,926     3,515  
    Gain on sale of investments           4      
    Other operating income   37     1,483     180     1,679  
      Non-interest income   3,954     3,707     11,152     7,437  
                       
    Compensation and benefits   6,840     5,351     18,901     16,320  
    Occupancy and equipment   1,799     1,758     5,412     4,882  
    Data processing   547     516     1,560     1,533  
    Professional fees   762     800     2,297     2,462  
    Federal deposit insurance premiums   360     386     1,043     1,101  
    Other operating expenses   1,930     1,506     5,499     5,152  
      Non-interest expense   12,238     10,317     34,712     31,450  
                       
      Income before income taxes   4,618     4,689     11,184     13,283  
    Income tax expense   1,079     1,166     2,740     3,457  
                       
      Net income $ 3,539   $ 3,523   $ 8,444   $ 9,826  
                       
    Earnings per share (“EPS”):(2)                
    Basic $ 0.48   $ 0.48   $ 1.14   $ 1.34  
    Diluted $ 0.48   $ 0.48   $ 1.14   $ 1.33  
                       
    Average shares outstanding for basic EPS (2)(3)   7,411,064     7,327,345     7,395,758     7,327,836  
    Average shares outstanding for diluted EPS (2)(3)   7,436,068     7,407,483     7,420,415     7,407,954  
                       
    (1) CECL was adopted effective 10/1/23. Prior periods were based on the incurred loss methodology.
    (2) Calculation includes common stock and Series A preferred stock.
    (3) Average shares outstanding before subtracting participating securities.
                       
    Note: Prior period information has been adjusted to conform to current period presentation.
    HANOVER BANCORP, INC.
    CONSOLIDATED STATEMENTS OF INCOME (unaudited)
    QUARTERLY TREND
    (dollars in thousands, except per share data)
                         
        Three Months Ended
        9/30/2024   6/30/2024   3/31/2024   12/31/2023   9/30/2023
                         
    Interest income $ 34,113   $ 33,420   $ 32,432   $ 31,155   $ 28,952
    Interest expense   21,011     20,173     19,497     18,496     17,153
      Net interest income   13,102     13,247     12,935     12,659     11,799
    Provision for credit losses (1)   200     4,040     300     200     500
      Net interest income after provision for credit losses   12,902     9,207     12,635     12,459     11,299
                         
    Loan servicing and fee income   960     836     913     778     681
    Service charges on deposit accounts   123     114     96     85     75
    Gain on sale of loans held-for-sale   2,834     2,586     2,506     2,326     1,468
    Gain on sale of investments       4            
    Other operating income   37     82     61     65     1,483
      Non-interest income   3,954     3,622     3,576     3,254     3,707
                         
    Compensation and benefits   6,840     6,499     5,562     5,242     5,351
    Occupancy and equipment   1,799     1,843     1,770     1,746     1,758
    Data processing   547     495     518     530     516
    Professional fees   762     717     818     729     800
    Federal deposit insurance premiums   360     365     318     375     386
    Other operating expenses   1,930     1,751     1,818     2,048     1,506
      Non-interest expense   12,238     11,670     10,804     10,670     10,317
                         
      Income before income taxes   4,618     1,159     5,407     5,043     4,689
    Income tax expense   1,079     315     1,346     1,280     1,166
                         
      Net income $ 3,539   $ 844   $ 4,061   $ 3,763   $ 3,523
                         
    Earnings per share (“EPS”):(2)                  
    Basic $ 0.48   $ 0.11   $ 0.55   $ 0.51   $ 0.48
    Diluted $ 0.48   $ 0.11   $ 0.55   $ 0.51   $ 0.48
                         
    Average shares outstanding for basic EPS (2)(3)   7,411,064     7,399,816     7,376,227     7,324,133     7,327,345
    Average shares outstanding for diluted EPS (2)(3)   7,436,068     7,449,110     7,420,926     7,383,529     7,407,483
                         
    (1) CECL was adopted effective 10/1/23. Prior periods were based on the incurred loss methodology.
    (2) Calculation includes common stock and Series A preferred stock.
    (3) Average shares outstanding before subtracting participating securities.
                         
    Note: Prior period information has been adjusted to conform to current period presentation.
    HANOVER BANCORP, INC.
    CONSOLIDATED NON-GAAP FINANCIAL INFORMATION (1)(unaudited)
    (dollars in thousands, except per share data)
                   
      Three Months Ended   Nine Months Ended
      9/30/2024   9/30/2023   9/30/2024   9/30/2023
                   
    ADJUSTED NET INCOME:              
    Net income, as reported $ 3,539     $ 3,523     $ 8,444     $ 9,826  
    Adjustments:              
    Litigation settlement payment         (975 )           (975 )
    Severance and retirement expenses   219             219       456  
    Total adjustments, before income taxes   219       (975 )     219       (519 )
    Adjustment for reported effective income tax rate   55       (243 )     55       (138 )
    Total adjustments, after income taxes   164       (732 )     164       (381 )
    Adjusted net income $ 3,703     $ 2,791     $ 8,608     $ 9,445  
    Basic earnings per share – adjusted $ 0.50     $ 0.38     $ 1.16     $ 1.29  
    Diluted earnings per share – adjusted $ 0.50     $ 0.38     $ 1.16     $ 1.27  
                   
    ADJUSTED OPERATING EFFICIENCY RATIO(2):              
    Operating efficiency ratio, as reported   71.75 %     66.53 %     68.83 %     67.39 %
    Adjustments:              
    Litigation settlement payment   0.00 %     4.47 %     0.00 %     1.44 %
    Severance and retirement expenses   -1.28 %     0.00 %     -0.43 %     -0.98 %
    Adjusted operating efficiency ratio   70.47 %     71.00 %     68.40 %     67.85 %
                   
    ADJUSTED RETURN ON AVERAGE ASSETS   0.65 %     0.53 %     0.51 %     0.62 %
    ADJUSTED RETURN ON AVERAGE EQUITY   7.69 %     6.00 %     6.04 %     6.93 %
    ADJUSTED RETURN ON AVERAGE TANGIBLE EQUITY   8.56 %     6.71 %     6.73 %     7.77 %
                   
    (1)  A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes the presentation of non-GAAP financial measures provide investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with U.S. GAAP. While management uses non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP.
                   
    (2) Excludes gain on sale of securities available for sale.
    HANOVER BANCORP, INC.
    SELECTED FINANCIAL DATA (unaudited)
    (dollars in thousands)
                   
      Three Months Ended   Nine Months Ended
      9/30/2024   9/30/2023   9/30/2024   9/30/2023
    Profitability:              
    Return on average assets   0.62 %     0.66 %     0.50 %     0.64 %
    Return on average equity (1)   7.35 %     7.58 %     5.93 %     7.21 %
    Return on average tangible equity (1)   8.19 %     8.47 %     6.60 %     8.08 %
    Pre-provision net revenue to average assets   0.85 %     0.98 %     0.94 %     1.00 %
    Yield on average interest-earning assets   6.17 %     5.61 %     6.14 %     5.58 %
    Cost of average interest-bearing liabilities   4.53 %     3.95 %     4.45 %     3.50 %
    Net interest rate spread (2)   1.64 %     1.66 %     1.69 %     2.08 %
    Net interest margin (3)   2.37 %     2.29 %     2.41 %     2.65 %
    Non-interest expense to average assets   2.15 %     1.94 %     2.08 %     2.06 %
    Operating efficiency ratio (4)   71.75 %     66.53 %     68.83 %     67.39 %
                   
    Average balances:              
    Interest-earning assets $ 2,201,068     $ 2,046,502     $ 2,175,478     $ 1,975,584  
    Interest-bearing liabilities   1,847,177       1,723,235       1,822,613       1,653,908  
    Loans   2,019,384       1,840,900       2,006,142       1,802,349  
    Deposits   1,891,132       1,638,777       1,835,862       1,644,964  
    Borrowings   150,770       259,549       181,445       186,187  
                   
                   
    (1) Includes common stock and Series A preferred stock.
    (2) Represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
    (3) Represents net interest income divided by average interest-earning assets.
    (4) Represents non-interest expense divided by the sum of net interest income and non-interest income excluding gain on sale of securities available for sale.
    HANOVER BANCORP, INC.
    SELECTED FINANCIAL DATA (unaudited)
    (dollars in thousands, except share and per share data)
                   
      At or For the Three Months Ended
      9/30/2024   6/30/2024   3/31/2024   12/31/2023
    Asset quality:              
    Provision for credit losses – loans (1) $ 200     $ 3,850     $ 300     $ 200  
    Net (charge-offs)/recoveries   (438 )     (79 )     (85 )     677  
    Allowance for credit losses   23,406       23,644       19,873       19,658  
    Allowance for credit losses to total loans (2)   1.17 %     1.17 %     0.99 %     1.00 %
    Non-performing loans $ 15,469     $ 15,828     $ 14,878     $ 14,451  
    Non-performing loans/total loans   0.77 %     0.79 %     0.74 %     0.74 %
    Non-performing loans/total assets   0.66 %     0.68 %     0.64 %     0.64 %
    Allowance for credit losses/non-performing loans   151.31 %     149.38 %     133.57 %     136.03 %
                   
    Capital (Bank only):              
    Tier 1 Capital $ 198,196     $ 195,703     $ 195,889     $ 193,324  
    Tier 1 leverage ratio   8.85 %     8.89 %     8.90 %     9.08 %
    Common equity tier 1 capital ratio   12.99 %     12.78 %     12.99 %     13.17 %
    Tier 1 risk based capital ratio   12.99 %     12.78 %     12.99 %     13.17 %
    Total risk based capital ratio   14.24 %     14.21 %     14.19 %     14.31 %
                   
    Equity data:              
    Shares outstanding (3)   7,428,366       7,402,163       7,392,412       7,345,012  
    Stockholders’ equity $ 192,339     $ 190,072     $ 189,543     $ 184,830  
    Book value per share (3)   25.89       25.68       25.64       25.16  
    Tangible common equity (3)   172,906       170,625       170,080       165,351  
    Tangible book value per share (3)   23.28       23.05       23.01       22.51  
    Tangible common equity (“TCE”) ratio (3)   7.49 %     7.38 %     7.43 %     7.35 %
                   
    (1) Excludes $0, $190 thousand, $0 and $0 provision for credit losses on unfunded commitments for the quarters ended 9/30/24, 6/30/24, 3/31/24 and 12/31/23, respectively.
    (2) Calculation excludes loans held for sale.
    (3) Includes common stock and Series A preferred stock.
                   
    Note: Prior period information has been adjusted to conform to current period presentation.        
    HANOVER BANCORP, INC.
    STATISTICAL SUMMARY
    QUARTERLY TREND
    (unaudited, dollars in thousands, except share data)
                   
      9/30/2024   6/30/2024   3/31/2024   12/31/2023
                   
    Loan distribution (1):              
    Residential mortgages $ 719,037     $ 733,040     $ 730,017     $ 689,211  
    Multifamily   557,634       562,503       568,043       572,849  
    Commercial real estate   529,948       549,725       556,708       561,183  
    Commercial & industrial   171,899       139,209       123,419       107,912  
    Home equity   26,825       27,992       26,879       25,631  
    Consumer   470       485       449       413  
                   
      Total loans $ 2,005,813     $ 2,012,954     $ 2,005,515     $ 1,957,199  
                   
    Sequential quarter growth rate   -0.35 %     0.37 %     2.47 %     4.41 %
                   
    CRE concentration ratio   397 %     403 %     416 %     432 %
                   
    Loans sold during the quarter $ 43,537     $ 35,302     $ 26,735     $ 29,740  
                   
    Funding distribution:              
    Demand $ 206,327     $ 199,835     $ 202,934     $ 207,781  
    N.O.W.   621,880       661,998       708,897       661,276  
    Savings   53,024       44,821       48,081       47,608  
    Money market   572,213       571,170       493,123       465,732  
    Total core deposits   1,453,444       1,477,824       1,453,035       1,382,397  
    Time   504,100       464,105       464,227       522,198  
    Total deposits   1,957,544       1,941,929       1,917,262       1,904,595  
    Borrowings   125,805       148,953       148,953       128,953  
    Subordinated debentures   24,675       24,662       24,648       24,635  
                   
      Total funding sources $ 2,108,024     $ 2,115,544     $ 2,090,863     $ 2,058,183  
                   
    Sequential quarter growth rate – total deposits   0.80 %     1.29 %     0.67 %     9.77 %
                   
    Period-end core deposits/total deposits ratio   74.25 %     76.10 %     75.79 %     72.58 %
                   
    Period-end demand deposits/total deposits ratio   10.54 %     10.29 %     10.58 %     10.91 %
                   
    (1) Excluding loans held for sale
    HANOVER BANCORP, INC.
    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (1)(unaudited)
    (dollars in thousands, except share and per share amounts)
                       
      9/30/2024   6/30/2024   3/31/2024   12/31/2023   9/30/2023
    Tangible common equity                  
    Total equity (2) $ 192,339     $ 190,072     $ 189,543     $ 184,830     $ 185,907  
    Less: goodwill   (19,168 )     (19,168 )     (19,168 )     (19,168 )     (19,168 )
    Less: core deposit intangible   (265 )     (279 )     (295 )     (311 )     (327 )
    Tangible common equity (2) $ 172,906     $ 170,625     $ 170,080     $ 165,351     $ 166,412  
                       
    Tangible common equity (“TCE”) ratio                
    Tangible common equity (2) $ 172,906     $ 170,625     $ 170,080     $ 165,351     $ 166,412  
    Total assets   2,327,814       2,331,098       2,307,508       2,270,060       2,149,632  
    Less: goodwill   (19,168 )     (19,168 )     (19,168 )     (19,168 )     (19,168 )
    Less: core deposit intangible   (265 )     (279 )     (295 )     (311 )     (327 )
    Tangible assets $ 2,308,381     $ 2,311,651     $ 2,288,045     $ 2,250,581     $ 2,130,137  
    TCE ratio (2)   7.49 %     7.38 %     7.43 %     7.35 %     7.81 %
                       
    Tangible book value per share                  
    Tangible equity (2) $ 172,906     $ 170,625     $ 170,080     $ 165,351     $ 166,412  
    Shares outstanding (2)   7,428,366       7,402,163       7,392,412       7,345,012       7,320,419  
    Tangible book value per share (2) $ 23.28     $ 23.05     $ 23.01     $ 22.51     $ 22.73  
                       
    (1)  A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes the presentation of non-GAAP financial measures provide investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with U.S. GAAP. While management uses non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP.
                       
    (2)  Includes common stock and Series A preferred stock.
    HANOVER BANCORP, INC.
    NET INTEREST INCOME ANALYSIS
    For the Three Months Ended September 30, 2024 and 2023
    (unaudited, dollars in thousands)
                           
      2024
      2023
      Average       Average   Average       Average
      Balance   Interest   Yield/Cost   Balance   Interest   Yield/Cost
                           
    Assets:                      
    Interest-earning assets:                      
    Loans $ 2,019,384   $ 31,356   6.18 %   $ 1,840,900   $ 26,059   5.62 %
    Investment securities   103,870     1,619   6.20 %     15,232     198   5.16 %
    Interest-earning cash   69,204     934   5.37 %     176,884     2,391   5.36 %
    FHLB stock and other investments   8,610     204   9.43 %     13,486     304   8.94 %
    Total interest-earning assets   2,201,068     34,113   6.17 %     2,046,502     28,952   5.61 %
    Non interest-earning assets:                      
    Cash and due from banks   9,360             6,700        
    Other assets   50,730             53,638        
    Total assets $ 2,261,158           $ 2,106,840        
                           
    Liabilities and stockholders’ equity:                      
    Interest-bearing liabilities:                      
    Savings, N.O.W. and money market deposits $ 1,209,030   $ 13,941   4.59 %   $ 985,625   $ 10,186   4.10 %
    Time deposits   487,377     5,546   4.53 %     478,061     4,060   3.37 %
    Total savings and time deposits   1,696,407     19,487   4.57 %     1,463,686     14,246   3.86 %
    Borrowings   126,104     1,198   3.78 %     234,936     2,604   4.40 %
    Subordinated debentures   24,666     326   5.26 %     24,613     303   4.88 %
    Total interest-bearing liabilities   1,847,177     21,011   4.53 %     1,723,235     17,153   3.95 %
    Demand deposits   194,725             175,091        
    Other liabilities   27,826             23,994        
    Total liabilities   2,069,728             1,922,320        
    Stockholders’ equity   191,430             184,520        
    Total liabilities & stockholders’ equity $ 2,261,158           $ 2,106,840        
    Net interest rate spread         1.64 %           1.66 %
    Net interest income/margin     $ 13,102   2.37 %       $ 11,799   2.29 %
                           
    HANOVER BANCORP, INC.
    NET INTEREST INCOME ANALYSIS
    For the Nine Months Ended September 30, 2024 and 2023
    (unaudited, dollars in thousands)
                           
      2024   2023
      Average       Average   Average       Average
      Balance   Interest   Yield/Cost   Balance   Interest   Yield/Cost
                           
    Assets:                      
    Interest-earning assets:                      
    Loans $ 2,006,142   $ 92,217   6.14 %   $ 1,802,349   $ 75,581   5.61 %
    Investment securities   99,363     4,610   6.20 %     15,837     594   5.01 %
    Interest-earning cash   60,202     2,445   5.42 %     147,423     5,673   5.14 %
    FHLB stock and other investments   9,771     693   9.47 %     9,975     623   8.35 %
    Total interest-earning assets   2,175,478     99,965   6.14 %     1,975,584     82,471   5.58 %
    Non interest-earning assets:                      
    Cash and due from banks   8,431             8,238        
    Other assets   50,593             53,720        
    Total assets $ 2,234,502           $ 2,037,542        
                           
    Liabilities and stockholders’ equity:                      
    Interest-bearing liabilities:                      
    Savings, N.O.W. and money market deposits $ 1,162,587   $ 39,541   4.54 %   $ 1,026,164   $ 27,883   3.63 %
    Time deposits   478,581     15,418   4.30 %     441,557     9,657   2.92 %
    Total savings and time deposits   1,641,168     54,959   4.47 %     1,467,721     37,540   3.42 %
    Borrowings   156,792     4,744   4.04 %     161,588     4,732   3.92 %
    Subordinated debentures   24,653     978   5.30 %     24,599     971   5.28 %
    Total interest-bearing liabilities   1,822,613     60,681   4.45 %     1,653,908     43,243   3.50 %
    Demand deposits   194,694             177,243        
    Other liabilities   26,944             24,253        
    Total liabilities   2,044,251             1,855,404        
    Stockholders’ equity   190,251             182,138        
    Total liabilities & stockholders’ equity $ 2,234,502           $ 2,037,542        
    Net interest rate spread         1.69 %           2.08 %
    Net interest income/margin     $ 39,284   2.41 %       $ 39,228   2.65 %

    Investor and Press Contact:
    Lance P. Burke
    Chief Financial Officer
    (516) 548-8500

    The MIL Network

  • MIL-OSI: QCR Holdings, Inc. Announces Net Income of $27.8 Million for the Third Quarter of 2024

    Source: GlobeNewswire (MIL-OSI)

    Third Quarter 2024 Highlights

    • Net income of $27.8 million, or $1.64 per diluted share
    • Adjusted net income of $30.3 million or $1.78 per diluted share (non-GAAP) resulting in an adjusted ROAA (non-GAAP) of 1.35%
    • Significant increase in net interest income of $3.6 million from the prior quarter, or 6%
    • Net interest margin expanded by 8 basis points to 3.34% adjusted NIM (TEY) (non-GAAP)
    • Continued strong capital markets revenue of $16.3 million
    • Tangible book value (non-GAAP) per share grew $2.35, or 20% annualized
    • TCE/TA ratio (non-GAAP) improved 24 basis points to 9.24%

    MOLINE, Ill., Oct. 23, 2024 (GLOBE NEWSWIRE) — QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced quarterly net income of $27.8 million and diluted earnings per share (“EPS”) of $1.64 for the third quarter of 2024, compared to net income of $29.1 million and diluted EPS of $1.72 for the second quarter of 2024.

    Adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) for the third quarter of 2024 were $30.3 million and $1.78, respectively. For the second quarter of 2024, adjusted net income (non-GAAP) was $29.3 million and adjusted diluted EPS (non-GAAP) was $1.73. For the third quarter of 2023, adjusted net income (non-GAAP) was $25.4 million, and adjusted diluted EPS (non-GAAP) was $1.51.

      For the Quarter Ended  
      September 30, June 30, September 30,  
    $ in millions (except per share data) 2024 2024 2023  
    Net Income $ 27.8 $ 29.1 $ 25.1  
    Diluted EPS $ 1.64 $ 1.72 $ 1.49  
    Adjusted Net Income (non-GAAP)* $ 30.3 $ 29.3 $ 25.4  
    Adjusted Diluted EPS (non-GAAP)* $ 1.78 $ 1.73 $ 1.51  
     

    *Adjusted non-GAAP measurements of financial performance exclude non-core and/or nonrecurring income and expense items that management believes are not reflective of the anticipated future operation of the Company’s business. The Company believes these adjusted measurements provide a better comparison for analysis and may provide a better indicator of future performance. See GAAP to non-GAAP reconciliations.

    “We produced exceptional third quarter results, highlighted by our significant growth in net interest income and margin expansion. We also had another quarter of strong capital markets and wealth management revenue,” said Larry J. Helling, Chief Executive Officer. “In addition, we grew core deposits, maintained our excellent asset quality, and significantly increased our tangible book value per share.”

    Net Interest Income Grew 6% and Net Interest Margin Expanded 8 Basis Points

    Net interest income for the third quarter of 2024 totaled $59.7 million, an increase of $3.6 million from the second quarter of 2024, driven by strong growth in loans and investments combined with margin expansion. Loan yields increased and funding costs were stable. Loan discount accretion was $463 thousand during the third quarter of 2024, an increase of $195 thousand from the prior quarter.

    Net interest margin (“NIM”) was 2.90% and NIM on a tax-equivalent yield (“TEY”) basis (non-GAAP) was 3.37% for the third quarter, as compared to 2.82% and 3.27% for the prior quarter, respectively. Adjusted NIM TEY (non-GAAP) of 3.34% for the third quarter of 2024, represented an increase of 8 basis points from 3.26% for the second quarter of 2024.  

    “Our adjusted NIM, on a tax equivalent yield basis (non-GAAP), expanded by 8 basis points from the second quarter to 3.34% and exceeded the upper end of our guidance range,” said Todd A. Gipple, President and Chief Financial Officer. “We are very pleased with another quarter of NIM expansion. Looking ahead, we anticipate continued growth in net interest income and are guiding to further fourth quarter adjusted NIM TEY (non-GAAP) expansion in a range of between 2 to 7 basis points.”

    Strong Noninterest Income Including $16.3 Million of Capital Markets Revenue

    Noninterest income for the third quarter of 2024 totaled $27.2 million, a decrease from $30.9 million in the second quarter of 2024. The Company delivered $16.3 million of capital markets revenue in the quarter compared to $17.8 million in the prior quarter. Capital markets revenue was impacted by a $473 thousand loss from the execution of our third securitization during the quarter, a more modest loss than our prior guidance. Wealth management revenue was $4.5 million for the quarter, a 17% annualized increase from the second quarter. Additionally, the Company recorded $2.2 million of income from bank-owned life insurance policy proceeds in the second quarter of 2024 which did not recur during the third quarter of 2024.

    “Our capital markets business delivered strong results driven by the swap fees from our low-income housing tax credit (“LIHTC”) lending program. The demand for affordable housing remains strong, which supports the sustainability of our LIHTC lending program,” added Mr. Gipple. “Our LIHTC lending pipelines, and the associated capital markets revenue remain robust. Additionally, our wealth management business continues to grow from new client additions and increased assets under management as we expand our market share.”

    During the third quarter, the Company executed a derivative strategy with a notional value of $410 million. These derivatives are designed to safeguard the Company’s regulatory capital ratios against the adverse effects of a significant decline in long-term interest rates. These derivatives are unhedged and are marked-to-market, with gains or losses recorded in noninterest income and reflected as a non-core item. For the quarter, the Company recorded a $414 thousand loss on these derivatives.

    Well Controlled Noninterest Expenses of $53.6 Million Impacted by m2 Equipment Finance Decision

    Noninterest expense for the third quarter of 2024 totaled $53.6 million, compared to $49.9 million for the second quarter and $51.1 million for the third quarter of 2023. The linked-quarter increase was primarily due to the previously announced one-time restructuring and goodwill impairment charges related to the decision to discontinue offering new loans and leases at m2 Equipment Finance, LLC (“m2”).  

    “Our core expenses, excluding m2 one-time charges, were $51.2 million, an increase of $1.3 million, and within our guidance range of $49 to $52 million,” said Mr. Gipple. The linked quarter increase in core expenses for the quarter was primarily driven by higher incentive compensation and advertising expenses. Year-to-date core noninterest expenses remain well controlled, having increased only 2% annually. Excluding the one-time charges and other non-core items, the Company’s adjusted efficiency ratio (non-GAAP) was 58.5% in the third quarter.

    Strong Core Deposit Growth

    During the third quarter of 2024, the Company generated strong deposit growth with core deposits increasing by $166.3 million, or 10.3% annualized, to $6.6 billion. “Year-to-date, core deposits have increased by $398.3 million, which is an annualized growth rate of 8.5%. This is a result of our dedication to expanding market share and building new relationships in our markets,” added Mr. Helling.

    Continued Loan Growth

    During the third quarter of 2024, the Company’s total loans and leases held for investment increased by $53.5 million to $6.7 billion. At quarter end, the Company held $165.9 million of LIHTC loans held for sale in anticipation of the Company’s next loan securitization.

    “Our year-to-date total loan growth excluding the impact of the loans securitized during the third quarter, is 10.5% annualized which was just above our guidance range. Year-to-date loan growth, net of loans securitized, was 5.8% annualized”, added Mr. Helling. “With the continued strength of our markets and healthy pipeline, we are maintaining our loan growth target for the full year 2024 of 8% to 10%, prior to the loan securitizations closed in the third quarter and planned for in the fourth quarter.”  

    Asset Quality Remains Excellent

    The Company’s nonperforming assets (“NPAs”) to total assets ratio was 0.39% on September 30, 2024, unchanged from the prior quarter. NPAs totaled $35.7 million at the end of the third quarter of 2024, a $1.2 million increase from the prior quarter.

    The Company’s total criticized loans, a leading indicator of asset quality, declined by $15.3 million on a linked-quarter basis, and the ratio of criticized loans to total loans and leases as of September 30, 2024, improved to 2.20%, as compared to 2.41% as of June 30, 2024. This marks the fourth consecutive quarter of improvement, resulting in a $50 million reduction in total criticized balances.

    The Company recorded a total provision for credit losses of $3.5 million during the quarter, representing a decline of $2.0 million from the prior quarter. The reduction in the provision for credit losses during the quarter was primarily due to overall credit quality improvements. Net charge-offs were $3.4 million during the third quarter of 2024, an increase of $1.8 million from the prior quarter. The increase in net charge offs primarily resulted from loans and leases at m2. The allowance for credit losses to total loans held for investment decreased to 1.30% from 1.33% as of the prior quarter.

    Continued Strong Capital Levels and Outstanding Tangible Book Value Expansion

    As of September 30, 2024, the Company’s tangible common equity to tangible assets ratio (“TCE”) (non-GAAP) increased to 9.24%. The improvement in TCE was driven by strong earnings and an increase in accumulated other comprehensive income (“AOCI”). The total risk-based capital ratio decreased to 13.87% and the common equity tier 1 ratio decreased to 9.79% due to sizable loan and investment growth partially offset by strong earnings. By comparison, these ratios were 9.00%, 14.21%, and 9.92%, respectively, as of June 30, 2024. The Company remains focused on growing its regulatory capital and targeting TCE (non-GAAP) in the top quartile of its peer group.

    The Company’s tangible book value per share (non-GAAP) increased significantly by $2.35, or 20% annualized, during the third quarter of 2024. AOCI increased $12.1 million during the third quarter primarily due to declining interest rates. Tangible book value per share (non-GAAP) has grown by $5.19 year-to-date, for an annualized growth rate of nearly 16%. The combination of strong earnings, a modest dividend, and improved AOCI contributed to the improvement in tangible book value per share (non-GAAP).

    Conference Call Details
    The Company will host an earnings call/webcast tomorrow, October 24, 2024, at 10:00 a.m. Central Time. Dial-in information for the call is toll-free: 888-346-9286 (international 412-317-5253). Participants should request to join the QCR Holdings, Inc. call. The event will be available for replay through October 31, 2024. The replay access information is 877-344-7529 (international 412-317-0088); access code 4892655. A webcast of the teleconference can be accessed on the Company’s News and Events page at www.qcrh.com. An archived version of the webcast will be available at the same location shortly after the live event has ended.

    About Us
    QCR Holdings, Inc., headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company serving the Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny and Springfield communities through its wholly owned subsidiary banks. The banks provide full-service commercial and consumer banking and trust and wealth management services. Quad City Bank & Trust Company, based in Bettendorf, Iowa, commenced operations in 1994, Cedar Rapids Bank & Trust Company, based in Cedar Rapids, Iowa, commenced operations in 2001, Community State Bank, based in Ankeny, Iowa, was acquired by the Company in 2016, Springfield First Community Bank, based in Springfield, Missouri, was acquired by the Company in 2018, and Guaranty Bank, also based in Springfield, Missouri, was acquired by the Company and merged with Springfield First Community Bank in 2022, with the combined entity operating under the Guaranty Bank name. Additionally, the Company serves the Waterloo/Cedar Falls, Iowa community through Community Bank & Trust, a division of Cedar Rapids Bank & Trust Company. The Company has 36 locations in Iowa, Missouri, Wisconsin and Illinois. As of September 30, 2024, the Company had $9.1 billion in assets, $6.8 billion in loans and $7.0 billion in deposits. For additional information, please visit the Company’s website at www.qcrh.com.

    Special Note Concerning Forward-Looking Statements. This document contains, and future oral and written statements of the Company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “bode”, “predict,” “suggest,” “project”, “appear,” “plan,” “intend,” “estimate,” ”annualize,” “may,” “will,” “would,” “could,” “should,” “likely,” “might,” “potential,” “continue,” “annualized,” “target,” “outlook,” as well as the negative forms of those words, or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.  

    A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, among others, the following: (i) the strength of the local, state, national and international economies (including effects of inflationary pressures and supply chain constraints); (ii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or other threats thereof (including the ongoing conflict in the Middle East and the Russian invasion of Ukraine), or other adverse external events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iii) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board or the Public Company Accounting Oversight Board; (iv) changes in local, state and federal laws, regulations and governmental policies concerning the Company’s general business, including as a result of the upcoming 2024 presidential election or any changes in response to failures of other banks; (vi) increased competition in the financial services sector, including from non-bank competitors such as credit unions and “fintech” companies, and the inability to attract new customers; (vii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (viii) unexpected results of acquisitions, which may include failure to realize the anticipated benefits of acquisitions and the possibility that transaction costs may be greater than anticipated; (ix) the loss of key executives or employees; (x) changes in consumer spending; (xi) unexpected outcomes of existing or new litigation involving the Company; (xii) the economic impact of exceptional weather occurrences such as tornadoes, floods and blizzards; (xiii) fluctuations in the value of securities held in our securities portfolio; (xiv) concentrations within our loan portfolio, large loans to certain borrowers, and large deposits from certain clients; (xv) the concentration of large deposits from certain clients who have balances above current Federal Deposit Insurance Corporation insurance limits and may withdraw deposits to diversity their exposure; (xvi) the level of non-performing assets on our balance sheets; (xvii) interruptions involving our information technology and communications systems or third-party servicers; (xviii) breaches or failures of our information security controls or cybersecurity-related incidents, (xix) changes in the interest rates and prepayment rates of the Company’s assets, and (xx) the ability of the Company to manage the risks associated with the foregoing as well as anticipated. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s filings with the Securities and Exchange Commission.

    Contact:
    Todd A. Gipple                                
    President                                
    Chief Financial Officer                        
    (309) 743-7745                                
    tgipple@qcrh.com

       
    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited) 
     
       
                 
      As of  
      September 30, June 30, March 31, December 31, September 30,
      2024 2024 2024 2023 2023  
                 
      (dollars in thousands)  
                 
    CONDENSED BALANCE SHEET            
                 
    Cash and due from banks $ 103,840   $ 92,173   $ 80,988   $ 97,123   $ 104,265    
    Federal funds sold and interest-bearing deposits   159,159     102,262     77,020     140,369     80,650    
    Securities, net of allowance for credit losses   1,146,046     1,033,199     1,031,861     1,005,528     896,394    
    Loans receivable held for sale (1)   167,047     246,124     275,344     2,594     278,893    
    Loans/leases receivable held for investment   6,661,755     6,608,262     6,372,992     6,540,822     6,327,414    
    Allowance for credit losses   (86,321 )   (87,706 )   (84,470 )   (87,200 )   (87,669 )  
    Intangibles   11,751     12,441     13,131     13,821     14,537    
    Goodwill   138,596     139,027     139,027     139,027     139,027    
    Derivatives   261,913     194,354     183,888     188,978     291,295    
    Other assets   524,779     531,855     509,768     497,832     495,251    
    Total assets $ 9,088,565   $ 8,871,991   $ 8,599,549   $ 8,538,894   $ 8,540,057    
                 
    Total deposits $ 6,984,633   $ 6,764,667   $ 6,806,775   $ 6,514,005   $ 6,494,852    
    Total borrowings   660,344     768,671     489,633     718,295     712,126    
    Derivatives   285,769     221,798     211,677     214,098     320,220    
    Other liabilities   181,199     180,536     184,122     205,900     184,476    
    Total stockholders’ equity   976,620     936,319     907,342     886,596     828,383    
    Total liabilities and stockholders’ equity $ 9,088,565   $ 8,871,991   $ 8,599,549   $ 8,538,894   $ 8,540,057    
                 
    ANALYSIS OF LOAN PORTFOLIO            
    Loan/lease mix: (2)            
    Commercial and industrial – revolving $ 387,409   $ 362,115   $ 326,129   $ 325,243   $ 299,588    
    Commercial and industrial – other   1,321,053     1,370,561     1,374,333     1,390,068     1,381,967    
    Commercial and industrial – other – LIHTC   89,028     92,637     96,276     91,710     105,601    
    Total commercial and industrial   1,797,490     1,825,313     1,796,738     1,807,021     1,787,156    
    Commercial real estate, owner occupied   622,072     633,596     621,069     607,365     610,618    
    Commercial real estate, non-owner occupied   1,103,694     1,082,457     1,055,089     1,008,892     955,552    
    Construction and land development   342,335     331,454     410,918     477,424     472,695    
    Construction and land development – LIHTC   913,841     750,894     738,609     943,101     921,359    
    Multi-family   324,090     329,239     296,245     284,721     282,541    
    Multi-family – LIHTC   973,682     1,148,244     1,007,321     711,422     874,439    
    Direct financing leases   19,241     25,808     28,089     31,164     34,401    
    1-4 family real estate   587,512     583,542     563,358     544,971     539,931    
    Consumer   144,845     143,839     130,900     127,335     127,615    
    Total loans/leases $ 6,828,802   $ 6,854,386   $ 6,648,336   $ 6,543,416   $ 6,606,307    
    Less allowance for credit losses   86,321     87,706     84,470     87,200     87,669    
    Net loans/leases $ 6,742,481   $ 6,766,680   $ 6,563,866   $ 6,456,216   $ 6,518,638    
                 
    ANALYSIS OF SECURITIES PORTFOLIO            
    Securities mix:            
    U.S. government sponsored agency securities $ 18,621   $ 20,101   $ 14,442   $ 14,973   $ 16,002    
    Municipal securities   965,810     885,046     884,469     853,645     764,017    
    Residential mortgage-backed and related securities   53,488     54,708     56,071     59,196     57,946    
    Asset backed securities   10,455     12,721     14,285     15,423     16,326    
    Other securities   39,190     38,464     40,539     41,115     43,272    
    Trading securities (3)   58,685     22,362     22,258     22,368        
    Total securities $ 1,146,249   $ 1,033,402   $ 1,032,064   $ 1,006,720   $ 897,563    
    Less allowance for credit losses   203     203     203     1,192     1,169    
    Net securities $ 1,146,046   $ 1,033,199   $ 1,031,861   $ 1,005,528   $ 896,394    
                 
    ANALYSIS OF DEPOSITS            
    Deposit mix:            
    Noninterest-bearing demand deposits $ 969,348   $ 956,445   $ 955,167   $ 1,038,689   $ 1,027,791    
    Interest-bearing demand deposits   4,715,087     4,644,918     4,714,555     4,338,390     4,416,725    
    Time deposits   942,847     859,593     875,491     851,950     788,692    
    Brokered deposits   357,351     303,711     261,562     284,976     261,644    
    Total deposits $ 6,984,633   $ 6,764,667   $ 6,806,775   $ 6,514,005   $ 6,494,852    
                 
    ANALYSIS OF BORROWINGS            
    Borrowings mix:            
    Term FHLB advances $ 145,383   $ 135,000   $ 135,000   $ 135,000   $ 135,000    
    Overnight FHLB advances   230,000     350,000     70,000     300,000     295,000    
    Other short-term borrowings   2,750     1,600     2,700     1,500     470    
    Subordinated notes   233,383     233,276     233,170     233,064     232,958    
    Junior subordinated debentures   48,828     48,795     48,763     48,731     48,698    
    Total borrowings $ 660,344   $ 768,671   $ 489,633   $ 718,295   $ 712,126    
                 
    (1) Loans with a fair value of $165.9 million, $243.2 million, $274.8 million and $278.0 million have been identified for securitization and are included in LHFS at September 30, 2024, June 30, 2024, March 31, 2024 and September 30, 2023, respectively.
    (2) Loan categories with significant LIHTC loan balances have been broken out separately. Total LIHTC balances within the loan/lease portfolio were $2.0 billion at September 30, 2024.   
    (3) Trading securities consisted of retained beneficial interests acquired in conjunction with Freddie Mac securitizations completed by the Company.  
                 
       
    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited) 
     
       
                     
          For the Quarter Ended  
          September 30, June 30, March 31, December 31, September 30,  
          2024 2024 2024 2023 2023  
                     
          (dollars in thousands, except per share data)  
                     
    INCOME STATEMENT              
    Interest income   $ 125,420   $ 119,746 $ 115,049   $ 112,248   $ 108,568    
    Interest expense     65,698     63,583   60,350     56,512     53,313    
    Net interest income     59,722     56,163   54,699     55,736     55,255    
    Provision for credit losses     3,484     5,496   2,969     5,199     3,806    
    Net interest income after provision for credit losses   $ 56,238   $ 50,667 $ 51,730   $ 50,537   $ 51,449    
                     
                     
    Trust fees     $ 3,270   $ 3,103 $ 3,199   $ 3,084   $ 2,863    
    Investment advisory and management fees     1,229     1,214   1,101     1,052     947    
    Deposit service fees     2,294     1,986   2,022     2,008     2,107    
    Gains on sales of residential real estate loans, net     385     540   382     323     476    
    Gains on sales of government guaranteed portions of loans, net         12   24     24        
    Capital markets revenue     16,290     17,758   16,457     36,956     15,596    
    Earnings on bank-owned life insurance     814     2,964   868     832     1,807    
    Debit card fees     1,575     1,571   1,466     1,561     1,584    
    Correspondent banking fees     507     510   512     465     450    
    Loan related fee income     949     962   836     845     800    
    Fair value gain (loss) on derivatives and trading securities     (886 )   51   (163 )   (582 )   (336 )  
    Other       730     218   154     1,161     299    
    Total noninterest income   $ 27,157   $ 30,889 $ 26,858   $ 47,729   $ 26,593    
                     
                     
    Salaries and employee benefits   $ 31,637   $ 31,079 $ 31,860   $ 41,059   $ 32,098    
    Occupancy and equipment expense     6,168     6,377   6,514     6,789     6,228    
    Professional and data processing fees     4,457     4,823   4,613     4,223     4,456    
    Restructuring expense     1,954                  
    FDIC insurance, other insurance and regulatory fees     1,711     1,854   1,945     2,115     1,721    
    Loan/lease expense     587     151   378     834     826    
    Net cost of (income from) and gains/losses on operations of other real estate     (42 )   28   (30 )   38     3    
    Advertising and marketing     2,124     1,565   1,483     1,641     1,429    
    Communication and data connectivity     333     318   401     449     478    
    Supplies       278     259   275     333     335    
    Bank service charges     603     622   568     761     605    
    Correspondent banking expense     325     363   305     300     232    
    Intangibles amortization     690     690   690     716     691    
    Goodwill impairment     432                  
    Payment card processing     785     706   646     836     733    
    Trust expense     395     379   425     413     432    
    Other       1,128     674   617     431     814    
    Total noninterest expense   $ 53,565   $ 49,888 $ 50,690   $ 60,938   $ 51,081    
                     
    Net income before income taxes   $ 29,830   $ 31,668 $ 27,898   $ 37,328   $ 26,961    
    Federal and state income tax expense     2,045     2,554   1,172     4,473     1,840    
    Net income     $ 27,785   $ 29,114 $ 26,726   $ 32,855   $ 25,121    
                     
    Basic EPS   $ 1.65   $ 1.73 $ 1.59   $ 1.96   $ 1.50    
    Diluted EPS   $ 1.64   $ 1.72 $ 1.58   $ 1.95   $ 1.49    
                     
                     
    Weighted average common shares outstanding     16,846,200     16,814,814   16,783,348     16,734,080     16,717,303    
    Weighted average common and common equivalent shares outstanding     16,982,400     16,921,854   16,910,675     16,875,952     16,847,951    
                     
       
    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited) 
     
       
                 
          For the Nine Months Ended  
          September 30,   September 30,  
          2024   2023  
                 
          (dollars in thousands, except per share data)  
                 
    INCOME STATEMENT          
    Interest income   $ 360,215     $ 301,162    
    Interest expense     189,631       135,892    
    Net interest income     170,584       165,270    
    Provision for credit losses     11,949       11,340    
    Net interest income after provision for credit losses   $ 158,635     $ 153,930    
                 
                 
    Trust fees     $ 9,572     $ 8,613    
    Investment advisory and management fees     3,544       2,812    
    Deposit service fees     6,302       6,169    
    Gains on sales of residential real estate loans, net     1,307       1,288    
    Gains on sales of government guaranteed portions of loans, net     36       30    
    Capital markets revenue     50,505       55,109    
    Securities losses, net           (451 )  
    Earnings on bank-owned life insurance     4,646       3,352    
    Debit card fees     4,612       4,639    
    Correspondent banking fees     1,529       1,197    
    Loan related fee income     2,747       2,221    
    Fair value loss on derivatives and trading securities     (998 )     (680 )  
    Other       1,102       656    
    Total noninterest income   $ 84,904     $ 84,955    
                 
                 
    Salaries and employee benefits   $ 94,576     $ 95,560    
    Occupancy and equipment expense     19,059       18,242    
    Professional and data processing fees     13,893       12,048    
    Post-acquisition compensation, transition and integration costs           207    
    Restructuring expense     1,954          
    FDIC insurance, other insurance and regulatory fees     5,510       5,022    
    Loan/lease expense     1,116       2,034    
    Net cost of (income from) and gains/losses on operations of other real estate       (44 )     (64 )  
    Advertising and marketing     5,172       4,401    
    Communication and data connectivity     1,052       1,614    
    Supplies       812       921    
    Bank service charges     1,793       1,831    
    Correspondent banking expense     993       663    
    Intangibles amortization     2,070       2,222    
    Goodwill impairment     432          
    Payment card processing     2,137       1,820    
    Trust expense     1,199       983    
    Other       2,419       2,089    
    Total noninterest expense   $ 154,143     $ 149,593    
                 
    Net income before income taxes   $ 89,396     $ 89,292    
    Federal and state income tax expense     5,771       8,589    
    Net income     $ 83,625     $ 80,703    
                 
    Basic EPS   $ 4.97     $ 4.82    
    Diluted EPS   $ 4.94     $ 4.79    
                 
                 
    Weighted average common shares outstanding     16,814,787       16,731,847    
    Weighted average common and common equivalent shares outstanding   16,938,309       16,863,203    
                 
       
    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited) 
     
       
                       
      As of and for the Quarter Ended   For the Nine Months Ended  
      September 30, June 30, March 31, December 31, September 30,
      September 30, September 30,  
      2024 2024 2024 2023 2023   2024 2023  
                       
      (dollars in thousands, except per share data)  
                       
    COMMON SHARE DATA                  
    Common shares outstanding   16,861,108     16,824,985     16,807,056     16,749,254     16,731,646          
    Book value per common share (1) $ 57.92   $ 55.65   $ 53.99   $ 52.93   $ 49.51          
    Tangible book value per common share (Non-GAAP) (2) $ 49.00   $ 46.65   $ 44.93   $ 43.81   $ 40.33          
    Closing stock price $ 74.03   $ 60.00   $ 60.74   $ 58.39   $ 48.52          
    Market capitalization $ 1,248,228   $ 1,009,499   $ 1,020,861   $ 977,989   $ 811,819          
    Market price / book value   127.81 %   107.82 %   112.51 %   100.31 %   98.00 %        
    Market price / tangible book value   151.07 %   128.62 %   135.18 %   133.29 %   120.30 %        
    Earnings per common share (basic) LTM (3) $ 6.93   $ 6.78   $ 6.75   $ 6.78   $ 6.65          
    Price earnings ratio LTM (3) 10.68 x 8.85 x 9.00 x 8.61 x 7.30 x        
    TCE / TA (Non-GAAP) (4)   9.24 %   9.00 %   8.94 %   8.75 %   8.05 %        
                       
                       
    CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY          
    Beginning balance $ 936,319   $ 907,342   $ 886,596   $ 828,383   $ 822,689          
    Net income   27,785     29,114     26,726     32,855     25,121          
    Other comprehensive income (loss), net of tax   12,057     (368 )   (5,373 )   25,363     (19,415 )        
    Common stock cash dividends declared   (1,012 )   (1,008 )   (1,008 )   (1,004 )   (1,003 )        
    Other (5)   1,471     1,239     401     999     991          
    Ending balance $ 976,620   $ 936,319   $ 907,342   $ 886,596   $ 828,383          
                       
                       
    REGULATORY CAPITAL RATIOS (6):                  
    Total risk-based capital ratio   13.87 %   14.21 %   14.30 %   14.29 %   14.48 %        
    Tier 1 risk-based capital ratio   10.33 %   10.49 %   10.50 %   10.27 %   10.30 %        
    Tier 1 leverage capital ratio   10.50 %   10.40 %   10.33 %   10.03 %   9.92 %        
    Common equity tier 1 ratio   9.79 %   9.92 %   9.91 %   9.67 %   9.68 %        
                       
                       
    KEY PERFORMANCE RATIOS AND OTHER METRICS                  
    Return on average assets (annualized)   1.24 %   1.33 %   1.25 %   1.54 %   1.21 %     1.27 %   1.34 %  
    Return on average total equity (annualized)   11.55 %   12.63 %   11.83 %   15.42 %   11.99 %     12.00 %   13.18 %  
    Net interest margin   2.90 %   2.82 %   2.82 %   2.90 %   2.89 %     2.85 %   3.00 %  
    Net interest margin (TEY) (Non-GAAP)(7)   3.37 %   3.27 %   3.25 %   3.32 %   3.31 %     3.30 %   3.37 %  
    Efficiency ratio (Non-GAAP) (8)   61.65 %   57.31 %   62.15 %   58.90 %   62.41 %     60.33 %   59.78 %  
    Gross loans/leases held for investment / total assets   73.30 %   74.48 %   74.11 %   76.60 %   74.09 %     73.30 %   77.36 %  
    Gross loans/leases held for investment / total deposits   95.38 %   97.69 %   93.63 %   100.41 %   97.42 %     95.38 %   101.72 %  
    Effective tax rate   6.86 %   8.06 %   4.20 %   11.98 %   6.82 %     6.46 %   9.62 %  
    Full-time equivalent employees   976     988     986     996     987       976     987    
                       
                       
    AVERAGE BALANCES                  
    Assets $ 8,968,653   $ 8,776,002   $ 8,550,855   $ 8,535,732   $ 8,287,813     $ 8,765,913   $ 8,041,141    
    Loans/leases   6,840,527     6,779,075     6,598,614     6,483,572     6,476,512       6,739,773     6,288,343    
    Deposits   6,858,196     6,687,188     6,595,453     6,485,154     6,342,339       6,714,251     6,272,083    
    Total stockholders’ equity   962,302     921,986     903,371     852,163     837,734       929,341     816,591    
                       
                       
                       
    (1) Includes accumulated other comprehensive income (loss).            
    (2) Includes accumulated other comprehensive income (loss) and excludes intangible assets. See GAAP to Non-GAAP reconciliations.    
    (3) LTM : Last twelve months.             
    (4) TCE / TCA : tangible common equity / total tangible assets. See GAAP to non-GAAP reconciliations.         
    (5) Includes mostly common stock issued for options exercised and the employee stock purchase plan, as well as stock-based compensation.    
    (6) Ratios for the current quarter are subject to change upon final calculation for regulatory filings due after earnings release.        
    (7) TEY : Tax equivalent yield. See GAAP to Non-GAAP reconciliations.           
    (8) See GAAP to Non-GAAP reconciliations.              
                       
       
    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited) 
     
       
                               
                               
    ANALYSIS OF NET INTEREST INCOME AND MARGIN                        
                               
        For the Quarter Ended  
        September 30, 2024   June 30, 2024   September 30, 2023  
        Average
    Balance
    Interest
    Earned or
    Paid
    Average
    Yield or Cost
      Average
    Balance
    Interest
    Earned or
    Paid
    Average
    Yield or Cost
      Average
    Balance
    Interest
    Earned or
    Paid
    Average
    Yield or Cost
     
                               
        (dollars in thousands)  
                               
    Fed funds sold   $ 12,596 $ 173 5.37 %   $ 13,065 $ 183 5.54 %   $ 21,526 $ 284 5.23 %  
    Interest-bearing deposits at financial institutions   145,597   1,915 5.23 %     80,998   1,139 5.66 %     86,807   1,205 5.51 %  
    Investment securities – taxable   381,285   4,439 4.64 %     377,747   4,286 4.53 %     344,657   3,788 4.38 %  
    Investment securities – nontaxable (1)   760,645   10,744 5.65 %     704,761   9,462 5.37 %     600,693   6,974 4.64 %  
    Restricted investment securities   42,546   840 7.73 %     43,398   869 7.92 %     43,590   659 5.91 %  
    Loans (1)     6,840,527   116,854 6.80 %     6,779,075   112,719 6.69 %     6,476,512   103,428 6.34 %  
    Total earning assets (1) $ 8,183,196 $ 134,965 6.56 %   $ 7,999,044 $ 128,658 6.46 %   $ 7,573,785 $ 116,338 6.10 %  
                               
    Interest-bearing deposits $ 4,739,757 $ 42,180 3.54 %   $ 4,649,625 $ 40,924 3.54 %   $ 4,264,208 $ 33,563 3.12 %  
    Time deposits     1,164,560   13,206 4.51 %     1,091,870   12,128 4.47 %     999,488   10,003 3.97 %  
    Short-term borrowings   2,485   32 5.07 %     1,622   21 5.18 %     1,514   20 5.28 %  
    Federal Home Loan Bank advances   445,632   5,972 5.24 %     464,231   6,238 5.32 %     425,870   5,724 5.26 %  
    Subordinated debentures   233,313   3,616 6.20 %     233,207   3,582 6.14 %     232,890   3,307 5.68 %  
    Junior subordinated debentures   48,806   693 5.56 %     48,774   688 5.58 %     48,678   695 5.59 %  
    Total interest-bearing liabilities $ 6,634,553 $ 65,699 3.93 %   $ 6,489,329 $ 63,581 3.93 %   $ 5,972,648 $ 53,312 3.54 %  
                               
    Net interest income (1)   $ 69,266       $ 65,077       $ 63,026    
    Net interest margin (2)     2.90 %       2.82 %       2.89 %  
    Net interest margin (TEY) (Non-GAAP) (1) (2) (3)     3.37 %       3.27 %       3.31 %  
    Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)     3.34 %       3.26 %       3.28 %  
                               
                               
        For the Nine Months Ended          
        September 30, 2024   September 30, 2023      
        Average Balance Interest Earned or Paid Average Yield or Cost   Average Balance Interest Earned or Paid Average Yield or Cost          
                               
        (dollars in thousands)          
                               
    Fed funds sold   $ 15,196 $ 625 5.40 %   $ 19,267 $ 741 5.14 %          
    Interest-bearing deposits at financial institutions   106,195   4,254 5.35 %     83,783   3,151 5.03 %          
    Investment securities – taxable   377,538   12,986 4.57 %     340,140   10,847 4.24 %          
    Investment securities – nontaxable (1)   717,284   29,557 5.50 %     599,070   19,892 4.43 %          
    Restricted investment securities   41,348   2,383 7.57 %     38,817   1,677 5.70 %          
    Loans (1)     6,739,773   337,244 6.68 %     6,288,343   285,136 6.06 %          
    Total earning assets (1) $ 7,997,334 $ 387,049 6.46 %   $ 7,369,420 $ 321,444 5.83 %          
                               
    Interest-bearing deposits $ 4,639,937 $ 122,207 3.52 %   $ 4,099,789 $ 84,565 2.76 %          
    Time deposits     1,121,508   37,679 4.49 %     1,020,421   27,225 3.57 %          
    Short-term borrowings   1,846   76 5.47 %     3,588   152 5.66 %          
    Federal Home Loan Bank advances   421,782   16,948 5.28 %     311,740   11,898 5.03 %          
    Subordinated debentures   233,207   10,678 6.10 %     232,784   9,922 5.68 %          
    Junior subordinated debentures   48,774   2,074 5.59 %     48,646   2,129 5.77 %          
    Total interest-bearing liabilities $ 6,467,054 $ 189,662 3.91 %   $ 5,716,968 $ 135,891 3.17 %          
                               
    Net interest income (1)   $ 197,387       $ 185,553            
    Net interest margin (2)     2.85 %       3.00 %          
    Net interest margin (TEY) (Non-GAAP) (1) (2) (3)     3.30 %       3.37 %          
    Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)     3.28 %       3.34 %          
                               
                               
    (1) Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.  
    (2) See “Select Financial Data – Subsidiaries” for a breakdown of amortization/accretion included in net interest margin for each period presented.     
    (3) TEY : Tax equivalent yield. See GAAP to Non-GAAP reconciliations.            
                               
       
    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited) 
     
       
                 
                 
      As of  
      September 30, June 30, March 31, December 31, September 30,
      2024 2024 2024 2023 2023  
                 
      (dollars in thousands, except per share data)  
                 
    ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES            
    Beginning balance $ 87,706   $ 84,470   $ 87,200   $ 87,669   $ 85,797    
    Change in ACL for transfer of loans to LHFS   (1,812 )   498     (3,377 )   266     175    
    Credit loss expense   3,828     4,343     3,736     2,519     3,260    
    Loans/leases charged off   (3,871 )   (1,751 )   (3,560 )   (3,354 )   (1,816 )  
    Recoveries on loans/leases previously charged off   470     146     471     100     253    
    Ending balance $ 86,321   $ 87,706   $ 84,470   $ 87,200   $ 87,669    
                 
                 
    NONPERFORMING ASSETS            
    Nonaccrual loans/leases $ 33,480   $ 33,546   $ 29,439   $ 32,753   $ 34,568    
    Accruing loans/leases past due 90 days or more   1,298     87     142     86        
    Total nonperforming loans/leases   34,778     33,633     29,581     32,839     34,568    
    Other real estate owned   369     369     784     1,347     120    
    Other repossessed assets   542     512     962            
    Total nonperforming assets $ 35,689   $ 34,514   $ 31,327   $ 34,186   $ 34,688    
                 
                 
    ASSET QUALITY RATIOS            
    Nonperforming assets / total assets   0.39 %   0.39 %   0.36 %   0.40 %   0.41 %  
    ACL for loans and leases / total loans/leases held for investment   1.30 %   1.33 %   1.33 %   1.33 %   1.39 %  
    ACL for loans and leases / nonperforming loans/leases   248.21 %   260.77 %   285.55 %   265.54 %   253.61 %  
    Net charge-offs as a % of average loans/leases   0.05 %   0.02 %   0.05 %   0.05 %   0.02 %  
                 
                 
                 
    INTERNALLY ASSIGNED RISK RATING (1) (2)            
    Special mention $ 80,121   $ 85,096   $ 111,729   $ 125,308   $ 128,052    
    Substandard (3)   70,022     80,345     70,841     70,425     72,550    
    Doubtful (3)                      
        Total Criticized loans (4) $ 150,143   $ 165,441   $ 182,570   $ 195,733   $ 200,602    
                 
    Classified loans as a % of total loans/leases (3)   1.03 %   1.17 %   1.07 %   1.08 %   1.10 %  
    Total Criticized loans as a % of total loans/leases (4)   2.20 %   2.41 %   2.75 %   2.99 %   3.04 %  
                 
                 
                 
                 
    (1) During the first quarter of 2024, the Company revised the risk rating scale used for credit quality monitoring.  
    (2) Amounts exclude the government guaranteed portion, if any. The Company assigns internal risk ratings of Pass for the government guaranteed portion.  
    (3) Classified loans are defined as loans with internally assigned risk ratings of 10 or 11 (7 or 8 prior to January 1, 2024), regardless of performance, and include loans identified as Substandard or Doubtful.  
    (4) Total Criticized loans are defined as loans with internally assigned risk ratings of 9, 10, or 11 (6, 7, or 8 prior to January 1, 2024), regardless of performance, and include loans identified as Special Mention, Substandard, or Doubtful.  
                 
       
    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited)
     
       
                             
                             
          For the Quarter Ended For the Nine Months Ended  
          September 30,   June 30,   September 30,   September 30,   September 30,  
      SELECT FINANCIAL DATA – SUBSIDIARIES   2024   2024   2023   2024   2023  
          (dollars in thousands)  
                             
      TOTAL ASSETS                      
      Quad City Bank and Trust (1)   $ 2,552,962     $ 2,559,049     $ 2,433,084            
      m2 Equipment Finance, LLC     349,166       359,012       336,180            
      Cedar Rapids Bank and Trust     2,625,943       2,428,267       2,442,263            
      Community State Bank     1,519,585       1,531,109       1,417,250            
      Guaranty Bank     2,360,301       2,369,754       2,242,638            
                             
      TOTAL DEPOSITS                      
      Quad City Bank and Trust (1)   $ 2,205,465     $ 2,100,520     $ 1,973,989            
      Cedar Rapids Bank and Trust     1,765,964       1,721,564       1,722,905            
      Community State Bank     1,269,147       1,188,551       1,132,724            
      Guaranty Bank     1,778,453       1,791,448       1,722,861            
                             
      TOTAL LOANS & LEASES                      
      Quad City Bank and Trust (1)   $ 2,090,856     $ 2,107,605     $ 2,005,770            
      m2 Equipment Finance, LLC     353,259       363,897       341,041            
      Cedar Rapids Bank and Trust     1,743,809       1,736,438       1,750,986            
      Community State Bank     1,161,805       1,162,686       1,098,479            
      Guaranty Bank     1,832,331       1,847,658       1,751,072            
                             
      TOTAL LOANS & LEASES / TOTAL DEPOSITS                      
      Quad City Bank and Trust (1)     95 %     100 %     102 %          
      Cedar Rapids Bank and Trust     99 %     101 %     102 %          
      Community State Bank     92 %     98 %     97 %          
      Guaranty Bank     103 %     103 %     102 %          
                             
                             
      TOTAL LOANS & LEASES / TOTAL ASSETS                      
      Quad City Bank and Trust (1)     82 %     82 %     82 %          
      Cedar Rapids Bank and Trust     66 %     72 %     72 %          
      Community State Bank     76 %     76 %     78 %          
      Guaranty Bank     78 %     78 %     78 %          
                             
      ACL ON LOANS/LEASES HELD FOR INVESTMENT AS A PERCENTAGE OF LOANS/LEASES HELD FOR INVESTMENT                      
      Quad City Bank and Trust (1)     1.49 %     1.49 %     1.50 %          
      m2 Equipment Finance, LLC     4.11 %     3.86 %     3.52 %          
      Cedar Rapids Bank and Trust     1.38 %     1.44 %     1.47 %          
      Community State Bank     1.06 %     1.14 %     1.28 %          
      Guaranty Bank     1.14 %     1.16 %     1.24 %          
                             
      RETURN ON AVERAGE ASSETS                      
      Quad City Bank and Trust (1)     0.76 %     0.88 %     0.97 %     0.81 %     1.00 %  
      Cedar Rapids Bank and Trust     2.52 %     2.94 %     2.28 %     2.84 %     2.95 %  
      Community State Bank     1.46 %     1.26 %     1.38 %     1.33 %     1.43 %  
      Guaranty Bank     1.28 %     1.42 %     1.23 %     1.20 %     1.07 %  
                             
      NET INTEREST MARGIN PERCENTAGE (2)                      
      Quad City Bank and Trust (1)     3.50 %     3.39 %     3.37 %     3.40 %     3.36 %  
      Cedar Rapids Bank and Trust     3.88 %     3.75 %     3.78 %     3.80 %     3.83 %  
      Community State Bank     3.76 %     3.72 %     3.88 %     3.74 %     3.92 %  
      Guaranty Bank (3)     3.12 %     2.99 %     3.06 %     3.03 %     3.22 %  
                             
      ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET                  
      INTEREST MARGIN, NET                      
      Cedar Rapids Bank and Trust   $     $     $     $     $ (8 )  
      Community State Bank     (1 )     (1 )     (1 )     (3 )     69    
      Guaranty Bank     496       301       572       1,194       1,537    
      QCR Holdings, Inc. (4)     (32 )     (32 )     (32 )     (97 )     (97 )  
                             
    (1 ) Quad City Bank and Trust amounts include m2 Equipment Finance, LLC, as this entity is wholly-owned and consolidated with the Bank. m2 Equipment Finance, LLC is also presented separately for certain (applicable) measurements.  
    (2 ) Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.      
    (3 ) Guaranty Bank’s net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest margin (Non-GAAP) would have been 2.94% for the quarter ended September 30, 2024, 2.86% for the quarter ended June 30, 2024 and 2.97% for the quarter ended September 30, 2023.        
    (4 ) Relates to the trust preferred securities acquired as part of the Guaranty Bank acquisition in 2017 and the Community National Bank acquisition in 2013.      
                             
     
    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited) 
     
                           
        As of
        September 30,   June 30,   March 31,   December 31,   September 30,  
    GAAP TO NON-GAAP RECONCILIATIONS   2024   2024   2024   2023   2023  
        (dollars in thousands, except per share data)
    TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)                      
                           
    Stockholders’ equity (GAAP)   $ 976,620     $ 936,319     $ 907,342     $ 886,596     $ 828,383    
    Less: Intangible assets     150,347       151,468       152,158       152,848       153,564    
    Tangible common equity (non-GAAP)   $ 826,273     $ 784,851     $ 755,184     $ 733,748     $ 674,819    
                           
    Total assets (GAAP)   $ 9,088,565     $ 8,871,991     $ 8,599,549     $ 8,538,894     $ 8,540,057    
    Less: Intangible assets     150,347       151,468       152,158       152,848       153,564    
    Tangible assets (non-GAAP)   $ 8,938,218     $ 8,720,523     $ 8,447,391     $ 8,386,046     $ 8,386,493    
                           
    Tangible common equity to tangible assets ratio (non-GAAP)   9.24 %     9.00 %     8.94 %     8.75 %     8.05 %  
                           
                           
                           
    (1) This ratio is a non-GAAP financial measure. The Company’s management believes that this measurement is important to many investors in the marketplace who are interested in changes period-to-period in common equity. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to stockholders’ equity and total assets, which are the most directly comparable GAAP financial measures.  
                           
       
    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited)
     
       
                                   
    GAAP TO NON-GAAP RECONCILIATIONS   For the Quarter Ended   For the Nine Months Ended  
        September 30,   June 30,   March 31,   December 31,   September 30,   September 30,   September 30,  
    ADJUSTED NET INCOME (1)   2024   2024   2024   2023   2023   2024   2023  
        (dollars in thousands, except per share data)  
                                   
    Net income (GAAP)   $ 27,785     $ 29,114     $ 26,726     $ 32,855     $ 25,121     $ 83,625     $ 80,703    
                                   
    Less non-core items (post-tax) (2):                              
    Income:                              
    Securities gains (losses), net                                         (356 )  
    Fair value gain (loss) on derivatives, net     (542 )     (145 )     (144 )     (460 )     (265 )     (830 )     (537 )  
    Total non-core income (non-GAAP)   $ (542 )   $ (145 )   $ (144 )   $ (460 )   $ (265 )   $ (830 )   $ (893 )  
                                   
    Expense:                              
    Goodwill impairment     432                               432          
    Post-acquisition compensation, transition and integration costs                                         164    
    Restructuring expense     1,544                               1,544        
    Total non-core expense (non-GAAP)   $ 1,976     $     $     $     $     $ 1,976     $ 164    
                                   
    Adjusted net income (non-GAAP) (1)   $ 30,303     $ 29,259     $ 26,870     $ 33,315     $ 25,386     $ 86,431     $ 81,760    
                                   
    ADJUSTED EARNINGS PER COMMON SHARE (1)                              
                                   
    Adjusted net income (non-GAAP) (from above)   $ 30,303     $ 29,259     $ 26,870     $ 33,315     $ 25,386     $ 86,431     $ 81,760    
                                   
    Weighted average common shares outstanding     16,846,200       16,814,814       16,783,348       16,734,080       16,717,303       16,814,787       16,731,847    
    Weighted average common and common equivalent shares outstanding     16,982,400       16,921,854       16,910,675       16,875,952       16,847,951       16,938,309       16,863,203    
                                   
    Adjusted earnings per common share (non-GAAP):                              
    Basic   $ 1.80     $ 1.74     $ 1.60     $ 1.99     $ 1.52     $ 5.14     $ 4.89    
    Diluted   $ 1.78     $ 1.73     $ 1.59     $ 1.97     $ 1.51     $ 5.10     $ 4.85    
                                   
    ADJUSTED RETURN ON AVERAGE ASSETS AND AVERAGE EQUITY (1)                              
                                   
    Adjusted net income (non-GAAP) (from above)   $ 30,303     $ 29,259     $ 26,870     $ 33,315     $ 25,386     $ 86,431     $ 81,760    
                                   
    Average Assets   $ 8,968,653     $ 8,776,002     $ 8,550,855     $ 8,535,732     $ 8,287,813     $ 8,765,913     $ 8,041,141    
                                   
    Adjusted return on average assets (annualized) (non-GAAP)     1.35 %     1.33 %     1.26 %     1.56 %     1.23 %     1.31 %     1.36 %  
    Adjusted return on average equity (annualized) (non-GAAP)     12.60 %     12.69 %     11.90 %     15.64 %     12.12 %     12.40 %     13.35 %  
                                   
    NET INTEREST MARGIN (TEY) (3)                              
                                   
    Net interest income (GAAP)   $ 59,722     $ 56,163     $ 54,699     $ 55,736     $ 55,255     $ 170,584     $ 165,270    
    Plus: Tax equivalent adjustment (4)     9,544       8,914       8,377       7,954       7,771       26,803       20,283    
    Net interest income – tax equivalent (Non-GAAP)   $ 69,266     $ 65,077     $ 63,076     $ 63,690     $ 63,026     $ 197,387     $ 185,553    
    Less: Acquisition accounting net accretion     463       268       363       673       539       1,094       1,501    
    Adjusted net interest income   $ 68,803     $ 64,809     $ 62,713     $ 63,017     $ 62,487     $ 196,293     $ 184,052    
                                   
    Average earning assets   $ 8,183,196     $ 7,999,044     $ 7,807,720     $ 7,631,035     $ 7,573,785     $ 7,997,334     $ 7,369,420    
                                   
    Net interest margin (GAAP)     2.90 %     2.82 %     2.82 %     2.90 %     2.89 %     2.85 %     3.00 %  
    Net interest margin (TEY) (Non-GAAP)     3.37 %     3.27 %     3.25 %     3.32 %     3.31 %     3.30 %     3.37 %  
    Adjusted net interest margin (TEY) (Non-GAAP)     3.34 %     3.26 %     3.24 %     3.29 %     3.28 %     3.28 %     3.34 %  
                                   
    EFFICIENCY RATIO (5)                              
                                   
    Noninterest expense (GAAP)   $ 53,565     $ 49,888     $ 50,690     $ 60,938     $ 51,081     $ 154,143     $ 149,593    
                                   
    Net interest income (GAAP)   $ 59,722     $ 56,163     $ 54,699     $ 55,736     $ 55,255     $ 170,584     $ 165,270    
    Noninterest income (GAAP)     27,157       30,889       26,858       47,729       26,593       84,904       84,955    
    Total income   $ 86,879     $ 87,052     $ 81,557     $ 103,465     $ 81,848     $ 255,488     $ 250,225    
                                   
    Efficiency ratio (noninterest expense/total income) (Non-GAAP)     61.65 %     57.31 %     62.15 %     58.90 %     62.41 %     60.33 %     59.78 %  
    Adjusted efficiency ratio (core noninterest expense/core total income) (Non-GAAP)     58.45 %     57.19 %     62.01 %     58.57 %     62.15 %     59.16 %     59.43 %  
                                   
                                   
                                   
                                   
    (1) Adjusted net income, adjusted earnings per common share, adjusted return on average assets and average equity are non-GAAP financial measures. The Company’s management believes that these measurements are important to investors as they exclude non-core or non-recurring income and expense items, therefore, they provide a more realistic run-rate for future periods. 
    In compliance with applicable rules of the SEC, these non-GAAP measures are reconciled to net income, which is the most directly comparable GAAP financial measure.
     
    (2) Non-core or non-recurring items (post-tax) are calculated using an estimated effective federal tax rate of 21% with the exception of goodwill impairment which is not deductible for tax.    
    (3) Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.        
    (4) Net interest margin (TEY) is a non-GAAP financial measure. The Company’s management utilizes this measurement to take into account the tax benefit associated with certain loans and securities. It is also standard industry practice to measure net interest margin using tax-equivalent measures. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to net interest income, which is the most directly comparable GAAP financial measure. In addition, the Company calculates net interest margin without the impact of acquisition accounting net accretion as this can fluctuate and it’s difficult to provide a more realistic run-rate for future periods.          
    (5) Efficiency ratio is a non-GAAP measure. The Company’s management utilizes this ratio to compare to industry peers. The ratio is used to calculate overhead as a percentage of revenue.  
    In compliance with the applicable rules of the SEC, this non-GAAP measure is reconciled to noninterest expense, net interest income and noninterest income, which are the most  directly comparable GAAP financial measures.
     
       
       
                    

    The MIL Network

  • MIL-OSI: Western New England Bancorp, Inc. Reports Results for Three and Nine Months Ended September 30, 2024 and Declares Quarterly Cash Dividend

    Source: GlobeNewswire (MIL-OSI)

    WESTFIELD, Mass., Oct. 23, 2024 (GLOBE NEWSWIRE) — Western New England Bancorp, Inc. (the “Company” or “WNEB”) (NasdaqGS: WNEB), the holding company for Westfield Bank (the “Bank”), announced today the unaudited results of operations for the three and nine months ended September 30, 2024. For the three months ended September 30, 2024, the Company reported net income of $1.9 million, or $0.09 per diluted share, compared to net income of $4.5 million, or $0.21 per diluted share, for the three months ended September 30, 2023. On a linked quarter basis, net income was $1.9 million, or $0.09 per diluted share, as compared to net income of $3.5 million, or $0.17 per diluted share, for the three months ended June 30, 2024. For the nine months ended September 30, 2024, net income was $8.4 million, or $0.40 per diluted share, compared to net income of $12.6 million, or $0.58 per diluted share, for the nine months ended September 30, 2023.

    The Company also announced that the Board of Directors declared a quarterly cash dividend of $0.07 per share on the Company’s common stock. The dividend will be payable on or about November 21, 2024 to shareholders of record on November 7, 2024.

    James C. Hagan, President and Chief Executive Officer, commented, “We believe our Company continues to be well positioned with strong capital and access to various liquidity sources. Our financial performance has been largely impacted by the unprecedented interest rate cycle and higher funding costs in response to the sustained increase in interest rates over the last 18-24 months. While it remains unclear whether the recent decrease in interest rates represents an end to this trend, the balance sheet is positioned to benefit from this decrease and the challenge will begin to subside as our liabilities begin to reprice lower. As we continue to manage the balance sheet in this uncertain interest rate environment, we remain focused on expense management initiatives to mitigate top line pressures and improve efficiencies over the Company’s long-term. The Company also continues to focus on our core business to grow loans and deposits as well as retention of our customers. Total deposits increased $80.5 million, or 3.8%, and total loans increased $21.7 million, or 1.1%, from year-end. Our asset quality remains strong, with nonperforming loans to total loans of 0.24% at September 30, 2024.”

    Hagan concluded, “The Company is considered to be well-capitalized as defined by the regulators and we remain disciplined in our capital management strategies. During the nine months ended September 30, 2024, we repurchased 714,282 shares of the Company’s common stock at an average price per share of $7.61. We continue to believe that buying back shares represents a prudent use of the Company’s capital and we are pleased to be able to continue to return value to shareholders through share repurchases. Although the banking environment has been challenged, our capital management strategies have been critical to sustaining growth in book value per share, which increased $0.44, or 4.0%, while tangible book value per share increased $0.43, or 4.2%, to $10.73. The management team remains focused and well positioned to serve our community and to enhance shareholder value over the long term.”

    Key Highlights:

    Loans and Deposits

    At September 30, 2024, total loans were $2.0 billion and increased $21.7 million, or 1.1%, from December 31, 2023. The increase in total loans was due to an increase in commercial real estate loans of $3.0 million, or 0.3%, an increase in residential real estate loans, including home equity loans, of $26.4 million, or 3.7%, partially offset by a decrease in commercial and industrial loans of $7.0 million, or 3.2%.

    At September 30, 2024, total deposits were $2.2 billion and increased $80.5 million, or 3.8%, from December 31, 2023. Core deposits, which the Company defines as all deposits except time deposits, decreased $8.3 million, or 0.5%, from $1.5 billion, or 71.5% of total deposits, at December 31, 2023, to $1.5 billion, or 68.5% of total deposits at September 30, 2024. Time deposits increased $88.8 million, or 14.5%, from $611.4 million at December 31, 2023 to $700.2 million at September 30, 2024. Brokered time deposits, which are included in time deposits, totaled $1.7 million at September 30, 2024 and at December 31, 2023. The loan-to-deposit ratio decreased from 94.6% at December 31, 2023 to 92.1% at September 30, 2024.

    Liquidity

    The Company’s liquidity position remains strong with solid core deposit relationships, cash, unencumbered securities, a diversified deposit base and access to diversified borrowing sources. At September 30, 2024, the Company had $1.1 billion in immediately available liquidity, compared to $615.0 million in uninsured deposits, or 27.7% of total deposits, representing a coverage ratio of 183%. Uninsured deposits of the Bank’s customers are eligible for FDIC pass-through insurance if the customer opens an IntraFi Insured Cash Sweep (“ICS”) account or a reciprocal time deposit through the Certificate of Deposit Account Registry System (“CDARS”). IntraFi allows for up to $250.0 million per customer of pass-through FDIC insurance, which would more than cover each of the Bank’s deposit customers if such customer desired to have such pass-through insurance.

    Allowance for Loan Losses and Credit Quality

    At September 30, 2024, the allowance for credit losses was $20.0 million, or 0.97% of total loans and 409.5% of nonperforming loans, compared to $20.3 million, or 1.00% of total loans and 315.6% of nonperforming loans at December 31, 2023. At September 30, 2024, nonperforming loans totaled $4.9 million, or 0.24% of total loans, compared to $6.4 million, or 0.32% of total loans, at December 31, 2023. Total delinquent loans decreased $1.7 million, or 28.3%, from $6.0 million, or 0.30% of total loans, at December 31, 2023 to $4.3 million, or 0.21% of total loans, at September 30, 2024. At September 30, 2024 and December 31, 2023, the Company did not have any other real estate owned.

    Net Interest Margin

    The net interest margin was 2.40% for the three months ended September 30, 2024 compared to 2.42% for the three months ended June 30, 2024. The net interest margin, on a tax-equivalent basis, was 2.42% for the three months ended September 30, 2024, compared to 2.44% for the three months ended June 30, 2024.

    Stock Repurchase Program

    On June 10, 2024, the Company announced the completion of its previously authorized stock repurchase plan (the “2022 Plan”) pursuant to which the Company was authorized to repurchase up to 1.1 million shares, or approximately 5% of its outstanding common stock, as of the date the 2022 Plan was adopted. On May 22, 2024, the Board of Directors authorized a new stock repurchase plan (the “2024 Plan”) under which the Company may repurchase up to 1.0 million shares, or approximately 4.6%, of the Company’s then-outstanding shares of common stock.

    During the three months ended September 30, 2024, the Company repurchased 244,441 shares of common stock under the 2024 Plan, with an average price per share of $8.18. During the nine months ended September 30, 2024, the Company repurchased 714,282 shares of common stock with an average price per share of $7.61. As of September 30, 2024, there were 692,318 shares of common stock available for repurchase under the 2024 Plan.

    The repurchase of shares under the stock repurchase program is administered through an independent broker. The shares of common stock repurchased under the 2024 Plan have been and will continue to be purchased from time to time at prevailing market prices, through open market or privately negotiated transactions, or otherwise, depending upon market conditions. There is no guarantee as to the exact number, or value, of shares that will be repurchased by the Company, and the Company may discontinue repurchases at any time that the Company’s management (“Management”) determines additional repurchases are not warranted. The timing and amount of additional share repurchases under the 2024 Plan will depend on a number of factors, including the Company’s stock price performance, ongoing capital planning considerations, general market conditions, and applicable legal requirements.

    Book Value and Tangible Book Value

    The Company’s book value per share was $11.40 at September 30, 2024 compared to $10.96 at December 31, 2023, while tangible book value per share, a non-GAAP financial measure, increased $0.43, or 4.2%, from $10.30 at December 31, 2023 to $10.73 at September 30, 2024. See pages 19-21 for the related tangible book value calculation and a reconciliation of GAAP to non-GAAP financial measures.

    Net Income for the Three Months Ended September 30, 2024 Compared to the Three Months Ended June 30, 2024

    The Company reported net income of $1.9 million, or $0.09 per diluted share, for the three months ended September 30, 2024, compared to net income of $3.5 million, or $0.17 per diluted share, for the three months ended June 30, 2024. Net interest income increased $258,000, or 1.8%, the provision for credit losses increased $1.2 million, non-interest income decreased $693,000, or 18.1%, and non-interest expense increased $92,000, or 0.6%. Return on average assets and return on average equity were 0.29% and 3.19%, respectively, for the three months ended September 30, 2024, compared to 0.55% and 6.03%, respectively, for the three months ended June 30, 2024.

    Net Interest Income and Net Interest Margin

    On a sequential quarter basis, net interest income, our primary driver of revenues, increased $258,000, or 1.8%, to $14.7 million for the three months ended September 30, 2024, from $14.5 million for the three months ended June 30, 2024. The increase in net interest income was primarily due to an increase in interest income of $1.0 million, or 3.9%, partially offset by an increase in interest expense of $780,000, or 6.3%.

    The net interest margin was 2.40% for the three months ended September 30, 2024, compared to 2.42% for the three months ended June 30, 2024. The net interest margin, on a tax-equivalent basis, was 2.42% for the three months ended September 30, 2024, compared to 2.44% for the three months ended June 30, 2024. The decrease in the net interest margin was primarily due to an increase in the average cost of interest-bearing liabilities, which was partially offset by an increase in the average yield on interest-earning assets. During the three months ended September 30, 2024 and the three months ended June 30, 2024, the Company had a fair value hedge which contributed to an increase in the net interest margin of seven basis points. Excluding the interest income attributed to the fair value hedge, the net interest margin was 2.33% and 2.35%, for the three months ended September 30, 2024 and the three months ended June 30, 2024, respectively. The fair value hedge is scheduled to mature in October of 2024.

    The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, was 4.54% for the three months ended September 30, 2024, compared to 4.49% for the three months ended June 30, 2024. The average loan yield, without the impact of tax-equivalent adjustments, was 4.90% for the three months ended September 30, 2024, compared to 4.85% for the three months ended June 30, 2024. During the three months ended September 30, 2024, average interest-earning assets increased $40.6 million, or 1.7% to $2.4 billion, primarily due to an increase in average loans of $21.5 million, or 1.1%, an increase in average short-term investments, consisting of cash and cash equivalents, $17.7 million, or 123.6%, and an increase in average other investments of $1.6 million, or 11.0%.

    The average cost of total funds, including non-interest bearing accounts and borrowings, increased eight basis points from 2.16% for the three months ended June 30, 2024 to 2.24% for the three months ended September 30, 2024. The average cost of core deposits, which the Company defines as all deposits except time deposits, increased six basis points to 0.93% for the three months ended September 30, 2024, from 0.87% for the three months ended June 30, 2024. The average cost of time deposits increased five basis points from 4.39% for the three months ended June 30, 2024 to 4.44% for the three months ended September 30, 2024. The average cost of borrowings, including subordinated debt, increased five basis points from 5.00% for the three months ended June 30, 2024 to 5.05% for the three months ended September 30, 2024. Average demand deposits, an interest-free source of funds, increased $10.4 million, or 1.9%, from $548.8 million, or 25.7% of total average deposits, for the three months ended June 30, 2024, to $559.2 million, or 25.7% of total average deposits, for the three months ended September 30, 2024.

    Provision for (Reversal of) Credit Losses

    During the three months ended September 30, 2024, the Company recorded a provision for credit losses of $941,000, compared to a reversal for credit losses of $294,000 during the three months ended June 30, 2024. The provision for credit losses includes a provision for credit losses on loans of $609,000 and a reserve on unfunded loan commitments of $332,000. The increase in the provision for credit losses on loans was due to changes in the economic environment and related adjustments to the quantitative components of the CECL methodology as well as growth in the loan portfolio. The provision for credit losses was determined by a number of factors: the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve’s actions to control inflation. The increase in reserves on unfunded loan commitments was due to an increase in commercial real estate unfunded loan commitments of $33.5 million, or 20.7%, from $161.8 million at June 30, 2024 to $195.3 million at September 30, 2024. Management continues to monitor macroeconomic variables related to increasing interest rates, inflation and the concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment.

    During the three months ended September 30, 2024, the Company recorded net charge-offs of $98,000, compared to net charge-offs of $10,000 for the three months ended June 30, 2024.

    Non-Interest Income

    On a sequential quarter basis, non-interest income decreased $693,000, or 18.1%, to $3.1 million for the three months ended September 30, 2024, from $3.8 million for the three months ended June 30, 2024. Service charges and fees on deposits were $2.3 million for the three months ended September 30, 2024 and the three months ended June 30, 2024. Income from bank-owned life insurance (“BOLI”) decreased $32,000, or 6.4%, from the three months ended June 30, 2024 to $470,000, for the three months ended September 30, 2024. During the three months ended September 30, 2024, the Company reported $74,000 in other income from loan-level swap fees on commercial loans and did not have comparable income during the three months ended June 30, 2024. During the three months ended September 30, 2024, the Company sold $20.1 million in fixed rate residential loans to the secondary market and reported income from mortgage banking activities of $246,000 and did not have comparable income during the three months ended June 30, 2024. During the three months ended September 30, 2024 and the three months ended June 30, 2024, the Company reported unrealized gains on marketable equity securities of $10,000 and $4,000, respectively. During the three months ended June 30, 2024, the Company reported a gain on non-marketable equity investments of $987,000 and did not have comparable gains or losses from non-marketable equity investments during the three months ended September 30, 2024.

    Non-Interest Expense

    For the three months ended September 30, 2024, non-interest expense increased $92,000, or 0.6%, to $14.4 million from $14.3 million for the three months ended June 30, 2024. Salaries and employee benefits increased $211,000, or 2.7%, to $8.1 million, software expenses increased $46,000, or 8.1%, data processing expense increased $23,000, or 2.7%, FDIC insurance expense increased $15,000, or 4.6%, and debit card and ATM processing fees increased $6,000, or 0.9%. During the same period, these increases were partially offset by a decrease in professional fees of $41,000, or 7.1%, a decrease in advertising expense of $68,000, or 20.1%, a decrease in occupancy expense of $1,000, or 0.1%, and a decrease in other non-interest expense of $99,000, or 7.0%.

    For the three months ended September 30, 2024, the efficiency ratio was 80.6%, compared to 78.2% for the three months ended June 30, 2024. For the three months ended September 30, 2024, the adjusted efficiency ratio, a non-GAAP financial measure, was 80.7% compared to 82.7% for the three months ended June 30, 2024. The increases in the efficiency ratio and the adjusted efficiency ratio were driven by lower revenues, defined as the sum of net interest income and non-interest income, during the three months ended September 30, 2024. See pages 19-21 for the related adjusted efficiency ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.

    Income Tax Provision

    Income tax expense for the three months ended September 30, 2024 was $618,000, or an effective tax rate of 24.5%, compared to $771,000, or an effective tax rate of 18.0%, for the three months ended June 30, 2024. The increase in the effective tax rate for the three months ended September 30, 2024 was driven by the Company’s projections of pre-tax income for the year ending December 31, 2024.

    Net Income for the Three Months Ended September 30, 2024 Compared to the Three Months Ended September 30, 2023.

    The Company reported net income of $1.9 million, or $0.09 per diluted share, for the three months ended September 30, 2024, compared to net income of $4.5 million, or $0.21 per diluted share, for the three months ended September 30, 2023. Net interest income decreased $1.7 million, or 10.1%, provision for credit losses increased $587,000, non-interest income decreased $471,000, or 13.0%, and non-interest expense increased $288,000, or 2.0%, during the same period. Return on average assets and return on average equity were 0.29% and 3.19%, respectively, for the three months ended September 30, 2024, compared to 0.70% and 7.60%, respectively, for the three months ended September 30, 2023.

    Net Interest Income and Net Interest Margin

    Net interest income decreased $1.7 million, or 10.1%, to $14.7 million, for the three months ended September 30, 2024, from $16.4 million for the three months ended September 30, 2023. The decrease in net interest income was due to an increase in interest expense of $3.6 million, or 37.8%, partially offset by an increase in interest and dividend income of $1.9 million, or 7.5%. Interest expense on deposits increased $3.5 million, or 44.9%, and interest expense on borrowings increased $133,000, or 7.3%. The increase in interest expense was a result of competitive pricing on deposits due to the continued higher interest rate environment and the unfavorable shift in the deposit mix from low cost core deposits to high cost time deposits.

    The net interest margin was 2.40% for the three months ended September 30, 2024, compared to 2.70% for the three months ended September 30, 2023. The net interest margin, on a tax-equivalent basis, was 2.42% for the three months ended September 30, 2024, compared to 2.72% for the three months ended September 30, 2023. The decrease in the net interest margin was primarily due to an increase in the average cost of interest-bearing liabilities and the unfavorable shift in the deposit mix from low cost core deposits to high cost time deposits, which was partially offset by an increase in the average yield on interest-earning assets. During the three months ended September 30, 2024 and the three months ended September 30, 2023, the Company had a fair value hedge which contributed to an increase in the net interest margin of seven basis points. Excluding the interest income from the fair value hedge, the net interest margin was 2.33% and 2.64%, for the three months ended September 30, 2024 and three months ended September 30, 2023, respectively. The fair value hedge is scheduled to mature in October of 2024.

    The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, was 4.54% for the three months ended September 30, 2024, compared to 4.28% for the three months ended September 30, 2023. The average loan yield, without the impact of tax-equivalent adjustments, was 4.90% for the three months ended September 30, 2024, compared to 4.64% for the three months ended September 30, 2023. During the three months ended September 30, 2024, average interest-earning assets increased $38.2 million, or 1.6% to $2.4 billion, primarily due to an increase in average loans of $31.3 million, or 1.6%, an increase in average short-term investments, consisting of cash and cash equivalents, of $9.7 million, or 43.4%, an increase in average other investments of $3.7 million, or 30.8%, partially offset by a decrease in average securities of $6.5 million, or 1.8%.

    The average cost of total funds, including non-interest bearing accounts and borrowings, increased 60 basis points from 1.64% for the three months ended September 30, 2023 to 2.24% for the three months ended September 30, 2024. The average cost of core deposits, which the Company defines as all deposits except time deposits, increased 23 basis points to 0.93% for the three months ended September 30, 2024, from 0.70% for the three months ended September 30, 2023. The average cost of time deposits increased 98 basis points from 3.46% for the three months ended September 30, 2023 to 4.44% for the three months ended September 30, 2024. The average cost of borrowings, including subordinated debt, increased 24 basis points from 4.81% for the three months ended September 30, 2023 to 5.05% for the three months ended September 30, 2024. Average demand deposits, an interest-free source of funds, decreased $32.7 million, or 5.5%, from $591.9 million, or 27.5% of total average deposits, for the three months ended September 30, 2023, to $559.2 million, or 25.7% of total average deposits, for the three months ended September 30, 2024.

    Provision for Credit Losses

    During the three months ended September 30, 2024, the Company recorded a provision for credit losses of $941,000, compared to a provision for credit losses of $354,000, during the three months ended September 30, 2023. The increase was primarily due to an increase in the loan portfolio, specifically unfunded commercial real estate loan commitments, as well as changes in the economic environment and related adjustments to the quantitative components of the CECL methodology. The provision for credit losses was determined by a number of factors: the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve’s actions to control inflation. Management continues to monitor macroeconomic variables related to increasing interest rates, inflation and the concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment.

    The Company recorded net charge-offs of $98,000 for the three months ended September 30, 2024, as compared to net charge-offs of $78,000 for the three months ended September 30, 2023.

    Non-Interest Income

    Non-interest income decreased $471,000, or 13.0%, from $3.6 million for the three months ended September 30, 2023 to $3.1 million for the three months ended September 30, 2024. Service charges and fees on deposits increased $196,000, or 9.1%, and income from BOLI increased $16,000, or 3.5%, from the three months ended September 30, 2023 to the three months ended September 30, 2024. During the three months ended September 30, 2024, the Company reported $74,000 in other income from loan-level swap fees on commercial loans and did not have comparable income during the three months ended September 30, 2023. During the three months ended September 30, 2024, the Company reported income of $246,000 in mortgage banking activities due to the sale of fixed rate residential loans and did not have comparable income during the three months ended September 30, 2023. During the three months ended September 30, 2024, the Company reported $10,000 in unrealized gains of marketable equity securities and did not have comparable income during the three months ended September 30, 2023. During the three months ended September 30, 2023, the Company reported a gain on non-marketable equity investments of $238,000 and did not have comparable non-interest income during the three months ended September 30, 2024. During the three months ended September 30, 2023, non-interest income included a non-taxable gain of $778,000 on BOLI death benefits. The Company did not have comparable income during the three months ended September 30, 2024. During the three months ended September 30, 2023, the Company reported a loss on the sales of premises and equipment of $3,000 and did not have comparable expense during the three months ended September 30, 2024.

    Non-Interest Expense

    For the three months ended September 30, 2024, non-interest expense increased $288,000, or 2.0%, to $14.4 million from $14.1 million, for the three months ended September 30, 2023. Salaries and employee benefits increased $157,000, or 2.0%, to $8.1 million, debit card and ATM processing fees increased $87,000, or 15.5%, software expenses increased $83,000, or 15.7%, occupancy expense increased $58,000, or 5.0%, data processing expense increased $45,000, or 5.5%, other non-interest income increased $54,000, or 4.3%, and furniture and equipment related expenses increased $1,000, or 0.2%. These increases were partially offset by a decrease in professional fees of $103,000, or 16.0%, a decrease in advertising expense of $91,000, or 25.1%, and a decrease in FDIC insurance expense of $3,000, or 0.9%.

    For the three months ended September 30, 2024, the efficiency ratio was 80.6%, compared to 70.6% for the three months ended September 30, 2023. For the three months ended September 30, 2024, the adjusted efficiency ratio, a non-GAAP financial measure, was 80.7% compared to 74.4% for the three months ended September 30, 2023. The increases in the efficiency ratio and the non-GAAP adjusted efficiency ratio were driven by lower revenues during the three months ended September 30, 2024, compared to the three months ended September 30, 2023. See pages 19-21 for the related adjusted efficiency ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.

    Income Tax Provision

    Income tax expense for the three months ended September 30, 2024 was $618,000, or an effective tax rate of 24.5%, compared to $1.0 million, or an effective tax rate of 18.7%, for the three months ended September 30, 2023. The effective tax rate for the three months ended September 30, 2023 included $778,000 in non-taxable BOLI death benefits.

    Net Income for the Nine Months Ended September 30, 2024 Compared to the Nine Months Ended September 30, 2023

    For the nine months ended September 30, 2024, the Company reported net income of $8.4 million, or $0.40 per diluted share, compared to $12.6 million, or $0.58 per diluted share, for the nine months ended September 30, 2023. Return on average assets and return on average equity were 0.44% and 4.74% for the nine months ended September 30, 2024, respectively, compared to 0.66% and 7.19% for the nine months ended September 30, 2023, respectively.

    Net Interest Income and Net Interest Margin

    During the nine months ended September 30, 2024, net interest income decreased $7.2 million, or 13.9%, to $44.5 million, compared to $51.7 million for the nine months ended September 30, 2023. The decrease in net interest income was due to an increase in interest expense of $14.1 million, or 62.3%, partially offset by an increase in interest and dividend income of $6.9 million, or 9.3%. The $14.1 million increase in interest expense was primarily due to an increase of $12.9 million, or 72.3%, in interest expense on deposits as a result of competitive pricing and an unfavorable shift in the deposit mix from low cost core deposits to high cost time deposits.

    The net interest margin for the nine months ended September 30, 2024 was 2.46%, compared to 2.88% during the nine months ended September 30, 2023. The net interest margin, on a tax-equivalent basis, was 2.48% for the nine months ended September 30, 2024, compared to 2.90% for the nine months ended September 30, 2023. The decrease in the net interest margin was primarily due to an increase in the average cost of interest-bearing liabilities and the unfavorable shift in the deposit mix from low cost core to high cost time deposits, which was partially offset by an increase in the average yield on interest-earning assets. During the nine months ended September 30, 2024 and the nine months ended September 30, 2023, the Company had a fair value hedge which contributed to an increase in the net interest margin of seven and three basis points, respectively. Excluding the interest income from the fair value hedge, the net interest margin was 2.39% and 2.85%, for the nine months ended September 30, 2024 and the nine months ended September 30, 2023, respectively. The fair value hedge is scheduled to mature in October of 2024.

    The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, was 4.49% for the nine months ended September 30, 2024, compared to 4.14% for the nine months ended September 30, 2023. The average loan yield, without the impact of tax-equivalent adjustments, was 4.86% for the nine months ended September 30, 2024, compared to 4.49% for the nine months ended September 30, 2023. During the nine months ended September 30, 2024, average interest-earning assets increased $14.5 million, or 0.6%, to $2.4 billion, from the same period in 2023. The increase was primarily due to an increase in average loans of $23.4 million, or 1.2%, an increase in average short-term investments, consisting of cash and cash equivalents, of $5.7 million, or 44.2%, and an increase in other interest-earning assets of $1.7 million, or 13.7%, partially offset by a decrease in average securities of $16.3 million, or 4.4%.

    The average cost of total funds, including non-interest bearing accounts and borrowings, increased 80 basis points from 1.32% for the nine months ended September 30, 2023 to 2.12% for the nine months ended September 30, 2024. The average cost of core deposits, which the Company defines as all deposits except time deposits, increased 24 basis points to 0.86% for the nine months ended September 30, 2024, from 0.62% for the nine months ended September 30, 2023. The average cost of time deposits increased 160 basis points from 2.72% for the nine months ended September 30, 2023 to 4.32% for the nine months ended September 30, 2024. The average cost of borrowings, including subordinated debt, increased 15 basis points from 4.84% for the nine months ended September 30, 2023 to 4.99% for the nine months ended September 30, 2024. Average demand deposits, an interest-free source of funds, decreased $52.1 million, or 8.6%, from $607.3 million, or 28.0% of total average deposits, for the nine months ended September 30, 2023, to $555.3 million, or 25.8% of total average deposits, for the nine months ended September 30, 2024.

    Provision for Credit Losses

    During the nine months ended September 30, 2024, the Company recorded a provision for credit losses of $97,000, compared to a provision for credit losses of $386,000 during the nine months ended September 30, 2023. The decrease was primarily due to changes in the loan mix as well as economic environment and related adjustments to the quantitative components of the CECL methodology. The provision for credit losses was determined by a number of factors: the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve’s actions to control inflation. Management continues to monitor macroeconomic variables related to increasing interest rates, inflation and the concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment.

    During the nine months ended September 30, 2024, the Company recorded net charge-offs of $41,000 compared to net charge-offs of $1.9 million for the nine months ended September 30, 2023. The charge-offs during the nine months ended September 30, 2023 were related to one commercial relationship acquired in October 2016 from Chicopee Bancorp, Inc. The Company recorded a $1.9 million charge-off on the relationship, which represented the non-accretable credit mark that was required to be grossed-up to the loan’s amortized cost basis with a corresponding increase to the allowance for credit losses under the CECL implementation.

    Non-Interest Income

    For the nine months ended September 30, 2024, non-interest income increased $1.5 million, or 17.9%, from $8.2 million during the nine months ended September 30, 2023 to $9.6 million. Service charges and fees on deposits increased $328,000, or 5.0%, and income from BOLI increased $37,000, or 2.7%.

    During the nine months ended September 30, 2024, the Company reported a gain of $987,000 on non-marketable equity investments, compared to a gain of $590,000 during the nine months ended September 30, 2023. During the nine months ended September 30, 2024, the Company reported income of $246,000 from mortgage banking activities due to the sale of fixed rate residential real estate loans and did not have comparable income during the nine months ended September 30, 2023. During the nine months ended September 30, 2024, the Company reported $74,000 in other income from loan-level swap fees on commercial loans and did not have comparable income during the nine months ended September 30, 2023. During the nine months ended September 30, 2024, the Company reported $22,000 in unrealized gains of marketable equity securities and did not have comparable income during the nine months ended September 30, 2023. Gains and losses from the investment portfolio vary from quarter to quarter based on market conditions, as well as the related yield curve and valuation changes. During the nine months ended September 30, 2024, the Company reported a loss on the sales of premises and equipment of $6,000 compared to $3,000 during the nine months ended September 30, 2023. During the nine months ended September 30, 2023, the Company recorded a $1.1 million final termination expense related to the defined benefit pension plan (the “DB Plan”) termination. The Company did not have comparable income or expense during the nine months ended September 30, 2024. During the nine months ended September 30, 2023, non-interest income included a non-taxable gain of $778,000 on BOLI death benefits. The Company did not have comparable income during the nine months ended September 30, 2024.

    Non-Interest Expense

    For the nine months ended September 30, 2024, non-interest expense decreased $63,000, or 0.1%, to $43.5 million, compared to $43.6 million for the nine months ended September 30, 2023. The decrease in non-interest expense was primarily due to a decrease in professional fees of $513,000, or 23.3%, a decrease in salaries and employee benefits of $218,000, or 0.9%, a decrease in advertising expense of $159,000, or 14.2%, a decrease in other non-interest expense of $120,000, or 2.9%, and a decrease in furniture and equipment related expense of $10,000, or 0.7%. These decreases were partially offset by an increase in software related expenses of $309,000, or 19.7%, an increase in debit card and ATM processing fees of $264,000, or 16.7%, an increase in data processing of $208,000, or 8.8%, an increase in FDIC insurance expense of $88,000, or 9.0%, and an increase in occupancy expense of $88,000, or 2.4%.

    For the nine months ended September 30, 2024, the efficiency ratio was 80.3%, compared to 72.7% for the nine months ended September 30, 2023. For the nine months ended September 30, 2024, the adjusted efficiency ratio, a non-GAAP financial measure, was 81.8% compared to 73.0% for the nine months ended September 30, 2023. The increases in the efficiency ratio and the non-GAAP adjusted efficiency ratio were driven by lower revenues during the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023. See pages 19-21 for the related adjusted efficiency ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.

    Income Tax Provision

    Income tax expense for the nine months ended September 30, 2024 was $2.2 million, representing an effective tax rate of 20.9%, compared to $3.4 million, representing an effective tax rate of 21.3%, for nine months ended September 30, 2023.

    Balance Sheet

    At September 30, 2024, total assets were $2.6 billion, an increase of $75.9 million, or 3.0%, from December 31, 2023. The increase in total assets was primarily due to an increase in cash and cash equivalents of $44.0 million, or 152.4%, an increase in total loans of $21.7 million, or 1.1%, and an increase in investment securities of $8.7 million, or 2.4%.

    Investments

    At September 30, 2024, the investment securities portfolio totaled $369.4 million, or 14.0% of total assets, compared to $360.7 million, or 14.1%, of total assets, at December 31, 2023. At September 30, 2024, the Company’s available-for-sale (“AFS”) securities portfolio, recorded at fair market value, increased $18.8 million, or 13.7%, from $137.1 million at December 31, 2023 to $155.9 million. The held-to-maturity (“HTM”) securities portfolio, recorded at amortized cost, decreased $10.1 million, or 4.5%, from $223.4 million at December 31, 2023 to $213.3 million at September 30, 2024.

    At September 30, 2024, the Company reported unrealized losses on the AFS securities portfolio of $24.6 million, or 13.6% of the amortized cost basis of the AFS securities portfolio, compared to unrealized losses of $29.2 million, or 17.5% of the amortized cost basis of the AFS securities at December 31, 2023. At September 30, 2024, the Company reported unrealized losses on the HTM securities portfolio of $30.7 million, or 14.4%, of the amortized cost basis of the HTM securities portfolio, compared to $35.7 million, or 16.0% of the amortized cost basis of the HTM securities portfolio at December 31, 2023.

    The securities in which the Company may invest are limited by regulation. Federally chartered savings banks have authority to invest in various types of assets, including U.S. Treasury obligations, securities of various government-sponsored enterprises, mortgage-backed securities, certain certificates of deposit of insured financial institutions, repurchase agreements, overnight and short-term loans to other banks, corporate debt instruments and marketable equity securities. The securities, with the exception of $4.6 million in corporate bonds, are issued by the United States government or government-sponsored enterprises and are therefore either explicitly or implicitly guaranteed as to the timely payment of contractual principal and interest. These positions are deemed to have no credit impairment, therefore, the disclosed unrealized losses with the securities portfolio relate primarily to changes in prevailing interest rates. In all cases, price improvement in future periods will be realized as the issuances approach maturity.

    Management regularly reviews the portfolio for securities in an unrealized loss position. At September 30, 2024 and December 31, 2023, the Company did not record any credit impairment charges on its securities portfolio and attributed the unrealized losses primarily due to fluctuations in general interest rates or changes in expected prepayments and not due to credit quality. The primary objective of the Company’s investment portfolio is to provide liquidity and to secure municipal deposit accounts while preserving the safety of principal. The Company expects to strategically redeploy available cash flows from the securities portfolio to fund loan growth and deposit outflows.

    Total Loans

    Total loans increased $21.7 million, or 1.1%, from December 31, 2023, to $2.0 billion at September 30, 2024. The increase in total loans was due to an increase in commercial real estate loans of $3.0 million, or 0.3%, an increase in residential real estate loans, including home equity loans, of $26.4 million, or 3.7%, partially offset by a decrease in commercial and industrial loans of $7.0 million, or 3.2%. During the three months ended September 30, 2024, the Company sold $20.1 million in fixed rate residential loans to the secondary market with servicing retained.

    The following table presents the summary of the loan portfolio by the major classification of the loan at the periods indicated:

      September 30, 2024   December 31, 2023
      (Dollars in thousands)
       
    Commercial real estate loans:      
    Non-owner occupied $ 878,265     $ 881,643  
    Owner-occupied   204,524       198,108  
    Total commercial real estate loans   1,082,789       1,079,751  
           
    Residential real estate loans:      
    Residential   631,649       612,315  
    Home equity   116,923       109,839  
    Total residential real estate loans   748,572       722,154  
           
    Commercial and industrial loans   210,390       217,447  
           
    Consumer loans   4,631       5,472  
    Total gross loans   2,046,382       2,024,824  
    Unamortized premiums and net deferred loans fees and costs   2,620       2,493  
    Total loans $ 2,049,002     $ 2,027,317  
                   

    Credit Quality

    Management continues to closely monitor the loan portfolio for any signs of deterioration in borrowers’ financial condition and also in light of speculation that commercial real estate values may deteriorate as the market continues to adjust to higher vacancies and interest rates. We continue to proactively take steps to mitigate risk in our loan portfolio.

    Total delinquency was $4.3 million, or 0.21% of total loans, at September 30, 2024, compared to $6.0 million, or 0.30% of total loans at December 31, 2023. At September 30, 2024, nonperforming loans totaled $4.9 million, or 0.24% of total loans, compared to $6.4 million, or 0.32% of total loans, at December 31, 2023. Total nonperforming assets totaled $4.9 million, or 0.18% of total assets, at September 30, 2024, compared to $6.4 million, or 0.25% of total assets, at December 31, 2023. At September 30, 2024 and December 31, 2023, there were no loans 90 or more days past due and still accruing interest. At September 30, 2024 and December 31, 2023, the Company did not have any other real estate owned.

    At September 30, 2024, the allowance for credit losses as a percentage of total loans was 0.97% as compared to 1.00% at December 31, 2023. At September 30, 2024, the allowance for credit losses as a percentage of nonperforming loans was 409.5% as compared to 315.6% at December 31, 2023.

    Total classified loans, defined as special mention and substandard loans, increased $3.7 million, or 9.4%, from $39.5 million, or 1.9% of total loans, at December 31, 2023 to $43.2 million, or 2.1%, of total loans at September 30, 2024. We continue to maintain diversity among property types and within our geographic footprint. More details on the diversification of the loan portfolio are available in the supplementary earnings presentation.

    Deposits

    Total deposits increased $80.5 million, or 3.8%, from $2.1 billion at December 31, 2023 to $2.2 billion at September 30, 2024. Core deposits, which the Company defines as all deposits except time deposits, decreased $8.3 million, or 0.5%, from $1.5 billion, or 71.5% of total deposits, at December 31, 2023, to $1.5 billion, or 68.5% of total deposits, at September 30, 2024. Non-interest-bearing deposits decreased $10.9 million, or 1.9%, to $568.7 million, money market accounts increased $1.5 million, or 0.2%, to $635.8 million, savings accounts decreased $8.2 million, or 4.4%, to $179.2 million and interest-bearing checking accounts increased $9.3 million, or 7.1%, to $140.3 million. Time deposits increased $88.8 million, or 14.5%, from $611.4 million at December 31, 2023 to $700.2 million at September 30, 2024. Brokered time deposits, which are included in time deposits, totaled $1.7 million at September 30, 2024 and at December 31, 2023.

    The table below is a summary of our deposit balances for the periods noted:

      September 30, 2024   June 30, 2024   December 31, 2023
      (Dollars in thousands)
    Core Deposits:          
    Demand accounts $ 568,685     $ 553,329     $ 579,595  
    Interest-bearing accounts   140,332       149,100       131,031  
    Savings accounts   179,214       186,171       187,405  
    Money market accounts   635,824       611,501       634,361  
    Total Core Deposits $ 1,524,055     $ 1,500,101     $ 1,532,392  
                           
    Time Deposits:   700,151       671,708       611,352  
    Total Deposits: $ 2,224,206     $ 2,171,809     $ 2,143,744  
                           

    During the nine months ended September 30, 2024, the Company continued to experience an unfavorable shift in deposit mix from low cost core deposits to high cost time deposits as customers continue to migrate to higher deposit rates. The Company continues to focus on the maintenance, development, and expansion of its core deposit base to meet funding requirements and liquidity needs, with an emphasis on retaining a long-term customer relationship base by competing for and retaining deposits in our local market. At September 30, 2024, the Bank’s uninsured deposits represented 27.7% of total deposits, compared to 26.8% at December 31, 2023.

    FHLB and Subordinated Debt

    At September 30, 2024, total borrowings decreased $4.1 million, or 2.6%, from $156.5 million at December 31, 2023 to $152.4 million. Short-term borrowings decreased $11.7 million, or 72.7%, to $4.4 million, compared to $16.1 million at December 31, 2023. Long-term borrowings increased $7.6 million, or 6.3%, from $120.6 million at December 31, 2023 to $128.3 million at September 30, 2024. At September 30, 2024 and December 31, 2023, borrowings also consisted of $19.7 million in fixed-to-floating rate subordinated notes.

    The Company utilized the Bank Term Funding Program (“BTFP”), which was created in March 2023 to enhance banking system liquidity by allowing institutions to pledge certain securities at par value and borrow at a rate of ten basis points over the one-year overnight index swap rate. The BTFP was available to federally insured depository institutions in the U.S., with advances having a term of up to one year with no prepayment penalties. The BTFP ceased extending new advances in March 2024. At December 31, 2023, the Company’s outstanding balance under the BTFP was $90.0 million. There were no outstanding balance under the BTFP at September 30, 2024.

    As of September 30, 2024, the Company had $452.0 million of additional borrowing capacity at the Federal Home Loan Bank, $404.9 million of additional borrowing capacity under the Federal Reserve Bank Discount Window and $25.0 million of other unsecured lines of credit with correspondent banks.

    Capital

    At September 30, 2024, shareholders’ equity was $240.7 million, or 9.1% of total assets, compared to $237.4 million, or 9.3% of total assets, at December 31, 2023. The change was primarily attributable to a decrease in accumulated other comprehensive loss of $3.4 million, cash dividends paid of $4.5 million, repurchase of shares at a cost of $5.6 million, partially offset by net income of $8.4 million. At September 30, 2024, total shares outstanding were 21,113,408.

    The Company’s regulatory capital ratios continue to be strong and in excess of regulatory minimum requirements to be considered well-capitalized as defined by regulators and internal Company targets. Total Risk-Based Capital Ratio was 14.4% at September 30, 2024 and 14.7% at December 31, 2023.  The Bank’s Tier 1 Leverage Ratio to adjusted average assets was 9.61% at September 30, 2024 and 9.62% at December 31, 2023.

    Dividends

    Although the Company has historically paid quarterly dividends on its common stock and currently intends to continue to pay such dividends, the Company’s ability to pay such dividends depends on a number of factors, including restrictions under federal laws and regulations on the Company’s ability to pay dividends, and as a result, there can be no assurance that dividends will continue to be paid in the future.

    About Western New England Bancorp, Inc.

    Western New England Bancorp, Inc. is a Massachusetts-chartered stock holding company and the parent company of Westfield Bank, CSB Colts, Inc., Elm Street Securities Corporation, WFD Securities, Inc. and WB Real Estate Holdings, LLC. Western New England Bancorp, Inc. and its subsidiaries are headquartered in Westfield, Massachusetts and operate 25 banking offices throughout western Massachusetts and northern Connecticut. To learn more, visit our website at www.westfieldbank.com.

    Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the Company’s financial condition, liquidity, results of operations, future performance, and business. Forward-looking statements may be identified by the use of such words as “believe,” “expect,” “anticipate,” “should,” “planned,” “estimated,” and “potential.”  Examples of forward-looking statements include, but are not limited to, estimates with respect to our financial condition, results of operations and business that are subject to various factors which could cause actual results to differ materially from these estimates.  These factors include, but are not limited to:

    • unpredictable changes in general economic conditions, financial markets, fiscal, monetary and regulatory policies, including actual or potential stress in the banking industry;
    • the duration and scope of potential pandemics, including the emergence of new variants and the response thereto;
    • unstable political and economic conditions which could materially impact credit quality trends and the ability to generate loans and gather deposits;
    • inflation and governmental responses to inflation, including recent sustained increases and potential future increases in interest rates that reduce margins;
    • the effect on our operations of governmental legislation and regulation, including changes in accounting regulation or standards, the nature and timing of the adoption and effectiveness of new requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, Basel guidelines, capital requirements and other applicable laws and regulations;
    • significant changes in accounting, tax or regulatory practices or requirements;
    • new legal obligations or liabilities or unfavorable resolutions of litigation;
    • disruptive technologies in payment systems and other services traditionally provided by banks;
    • the highly competitive industry and market area in which we operate;
    • changes in business conditions and inflation;
    • operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity, technological changes, vendor issues, business interruption, and fraud risks;
    • failure or circumvention of our internal controls or procedures;
    • changes in the securities markets which affect investment management revenues;
    • increases in Federal Deposit Insurance Corporation deposit insurance premiums and assessments;
    • the soundness of other financial services institutions which may adversely affect our credit risk;
    • certain of our intangible assets may become impaired in the future;
    • new lines of business or new products and services, which may subject us to additional risks;
    • changes in key management personnel which may adversely impact our operations;
    • severe weather, natural disasters, acts of war or terrorism and other external events which could significantly impact our business; and
    • other risk factors detailed from time to time in our SEC filings.

    Although we believe that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from the results discussed in these forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We do not undertake any obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except to the extent required by law.

    WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES
    Consolidated Statements of Net Income and Other Data
    (Dollars in thousands, except per share data)
    Unaudited)
     
      Three Months Ended Nine Months Ended
      September 30, June 30, March 31, December 31, September 30, September 30,
        2024     2024     2024     2023     2023     2024     2023  
    INTEREST AND DIVIDEND INCOME:              
    Loans $ 25,134   $ 24,340   $ 24,241   $ 23,939   $ 23,451   $ 73,715   $ 67,230  
    Securities   2,121     2,141     2,114     2,094     2,033     6,376     6,276  
    Other investments   189     148     136     140     166     473     418  
    Short-term investments   396     173     113     597     251     682     424  
    Total interest and dividend income   27,840     26,802     26,604     26,770     25,901     81,246     74,348  
                   
    INTEREST EXPENSE:              
    Deposits   11,165     10,335     9,293     8,773     7,704     30,793     17,876  
    Short-term borrowings   71     186     283     123     117     540     1,466  
    Long-term debt   1,622     1,557     1,428     1,444     1,444     4,607     2,513  
    Subordinated debt   254     254     254     254     253     762     760  
    Total interest expense   13,112     12,332     11,258     10,594     9,518     36,702     22,615  
                   
    Net interest and dividend income   14,728     14,470     15,346     16,176     16,383     44,544     51,733  
                   
    PROVISION FOR (REVERSAL OF) CREDIT LOSSES   941     (294 )   (550 )   486     354     97     386  
                   
    Net interest and dividend income after provision for (reversal of) credit losses   13,787     14,764     15,896     15,690     16,029     44,447     51,347  
                   
    NON-INTEREST INCOME:              
    Service charges and fees on deposits   2,341     2,341     2,219     2,283     2,145     6,901     6,573  
    Income from bank-owned life insurance   470     502     453     432     454     1,425     1,388  
    Unrealized gain (loss) on marketable equity securities   10     4     8     (1 )       22      
    Gain on sale of mortgages   246                     246      
    Gain on non-marketable equity investments       987             238     987     590  
    Loss on disposal of premises and equipment           (6 )       (3 )   (6 )   (3 )
    Loss on defined benefit plan termination                           (1,143 )
    Gain on bank-owned life insurance death benefit                   778         778  
    Other income   74                     74      
    Total non-interest income   3,141     3,834     2,674     2,714     3,612     9,649     8,183  
                   
    NON-INTEREST EXPENSE:              
    Salaries and employees benefits   8,112     7,901     8,244     7,739     7,955     24,257     24,475  
    Occupancy   1,217     1,218     1,363     1,198     1,159     3,798     3,710  
    Furniture and equipment   483     483     484     494     482     1,450     1,460  
    Data processing   869     846     862     788     824     2,577     2,369  
    Software   612     566     699     598     529     1,877     1,568  
    Debit/ATM card processing expense   649     643     552     559     562     1,844     1,580  
    Professional fees   540     581     569     674     643     1,690     2,203  
    FDIC insurance   338     323     410     338     341     1,071     983  
    Advertising   271     339     349     377     362     959     1,118  
    Other   1,315     1,414     1,250     2,020     1,261     3,979     4,099  
    Total non-interest expense   14,406     14,314     14,782     14,785     14,118     43,502     43,565  
                   
    INCOME BEFORE INCOME TAXES   2,522     4,284     3,788     3,619     5,523     10,594     15,965  
                   
    INCOME TAX PROVISION   618     771     827     1,108     1,033     2,216     3,408  
    NET INCOME $ 1,904   $ 3,513   $ 2,961   $ 2,511   $ 4,490   $ 8,378   $ 12,557  
                   
    Basic earnings per share $ 0.09   $ 0.17   $ 0.14   $ 0.12   $ 0.21   $ 0.40   $ 0.58  
    Weighted average shares outstanding   20,804,162     21,056,173     21,180,968     21,253,452     21,560,940     21,013,003     21,631,067  
    Diluted earnings per share $ 0.09   $ 0.17   $ 0.14   $ 0.12   $ 0.21   $ 0.40   $ 0.58  
    Weighted average diluted shares outstanding   20,933,833     21,163,762     21,271,323     21,400,664     21,680,113     21,122,208     21,681,251  
                   
    Other Data:              
    Return on average assets (1)   0.29 %   0.55 %   0.47 %   0.39 %   0.70 %   0.44 %   0.66 %
    Return on average equity (1)   3.19 %   6.03 %   5.04 %   4.31 %   7.60 %   4.74 %   7.19 %
    Efficiency ratio   80.62 %   78.20 %   82.03 %   78.27 %   70.61 %   80.27 %   72.71 %
    Adjusted efficiency ratio (2)   80.67 %   82.68 %   82.04 %   78.26 %   74.38 %   81.79 %   72.98 %
    Net interest margin   2.40 %   2.42 %   2.57 %   2.64 %   2.70 %   2.46 %   2.88 %
    Net interest margin, on a fully tax-equivalent basis   2.42 %   2.44 %   2.59 %   2.66 %   2.72 %   2.48 %   2.90 %
    (1) Annualized.          
    (2) The adjusted efficiency ratio (non-GAAP) represents the ratio of operating expenses divided by the sum of net interest and dividend income and non-interest income, excluding realized and unrealized gains and losses on securities, gain on non-marketable equity investments, loss on disposal of premises and equipment, loss on defined benefit plan termination and gain on bank-owned life insurance death benefit.
     
    WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES
    Consolidated Balance Sheets
    (Dollars in thousands)
    (Unaudited)
     
      September 30,   June 30,   March 31,   December 31,   September 30,
        2024       2024       2024       2023       2023  
    Cash and cash equivalents $ 72,802     $ 53,458     $ 22,613     $ 28,840     $ 62,267  
    Securities available-for-sale, at fair value   155,889       135,089       138,362       137,115       130,709  
    Securities held to maturity, at amortized cost   213,266       217,632       221,242       223,370       225,020  
    Marketable equity securities, at fair value   252       233       222       196        
    Federal Home Loan Bank of Boston and other restricted stock – at cost   7,143       7,143       3,105       3,707       3,063  
                       
    Loans   2,049,002       2,026,226       2,025,566       2,027,317       2,014,820  
    Allowance for credit losses   (19,955 )     (19,444 )     (19,884 )     (20,267 )     (19,978 )
    Net loans   2,029,047       2,006,782       2,005,682       2,007,050       1,994,842  
                       
    Bank-owned life insurance   76,570       76,100       75,598       75,145       74,713  
    Goodwill   12,487       12,487       12,487       12,487       12,487  
    Core deposit intangible   1,531       1,625       1,719       1,813       1,906  
    Other assets   71,492       75,521       76,206       74,848       79,998  
    TOTAL ASSETS $ 2,640,479     $ 2,586,070     $ 2,557,236     $ 2,564,571     $ 2,585,005  
                       
    Total deposits $ 2,224,206     $ 2,171,809     $ 2,143,747     $ 2,143,744     $ 2,176,303  
    Short-term borrowings   4,390       6,570       11,470       16,100       8,890  
    Long-term debt   128,277       128,277       120,646       120,646       121,178  
    Subordinated debt   19,741       19,731       19,722       19,712       19,702  
    Securities pending settlement   2,513       102                   2,253  
    Other liabilities   20,697       23,104       25,855       26,960       25,765  
    TOTAL LIABILITIES   2,399,824       2,349,593       2,321,440       2,327,162       2,354,091  
                       
    TOTAL SHAREHOLDERS’ EQUITY   240,655       236,477       235,796       237,409       230,914  
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 2,640,479     $ 2,586,070     $ 2,557,236     $ 2,564,571     $ 2,585,005  
                       
    WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES
    Other Data
    (Dollars in thousands, except per share data)
    (Unaudited)
                                           
      Three Months Ended
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Shares outstanding at end of period   21,113,408       21,357,849       21,627,690       21,666,807       21,927,242  
                       
    Operating results:                  
    Net interest income $ 14,728     $ 14,470     $ 15,346     $ 16,176     $ 16,383  
    Provision for (reversal of) credit losses   941       (294 )     (550 )     486       354  
    Non-interest income   3,141       3,834       2,674       2,714       3,612  
    Non-interest expense   14,406       14,314       14,782       14,785       14,118  
    Income before income provision for income taxes   2,522       4,284       3,788       3,619       5,523  
    Income tax provision   618       771       827       1,108       1,033  
    Net income   1,904       3,513       2,961       2,511       4,490  
                       
    Performance Ratios:                  
    Net interest margin   2.40 %     2.42 %     2.57 %     2.64 %     2.70 %
    Net interest margin, on a fully tax-equivalent basis   2.42 %     2.44 %     2.59 %     2.66 %     2.72 %
    Interest rate spread   1.60 %     1.66 %     1.85 %     1.96 %     2.07 %
    Interest rate spread, on a fully tax-equivalent basis   1.62 %     1.67 %     1.86 %     1.98 %     2.09 %
    Return on average assets   0.29 %     0.55 %     0.47 %     0.39 %     0.70 %
    Return on average equity   3.19 %     6.03 %     5.04 %     4.31 %     7.60 %
    Efficiency ratio (GAAP)   80.62 %     78.20 %     82.03 %     78.27 %     70.61 %
    Adjusted efficiency ratio (non-GAAP) (1)   80.67 %     82.68 %     82.04 %     78.26 %     74.38 %
                       
    Per Common Share Data:                  
    Basic earnings per share $ 0.09     $ 0.17     $ 0.14     $ 0.12     $ 0.21  
    Earnings per diluted share   0.09       0.17       0.14       0.12       0.21  
    Cash dividend declared   0.07       0.07       0.07       0.07       0.07  
    Book value per share   11.40       11.07       10.90       10.96       10.53  
    Tangible book value per share (non-GAAP) (2)   10.73       10.41       10.25       10.30       9.87  
                       
    Asset Quality:                  
    30-89 day delinquent loans $ 3,059     $ 3,270     $ 3,000     $ 4,605     $ 4,097  
    90 days or more delinquent loans   1,253       2,280       1,716       1,394       1,527  
    Total delinquent loans   4,312       5,550       4,716       5,999       5,624  
    Total delinquent loans as a percentage of total loans   0.21 %     0.27 %     0.23 %     0.30 %     0.28 %
    Nonperforming loans $ 4,873     $ 5,845     $ 5,837     $ 6,421     $ 6,290  
    Nonperforming loans as a percentage of total loans   0.24 %     0.29 %     0.29 %     0.32 %     0.31 %
    Nonperforming assets as a percentage of total assets   0.18 %     0.23 %     0.23 %     0.25 %     0.24 %
    Allowance for credit losses as a percentage of nonperforming loans   409.50 %     332.66 %     340.65 %     315.64 %     317.62 %
    Allowance for credit losses as a percentage of total loans   0.97 %     0.96 %     0.98 %     1.00 %     0.99 %
    Net loan charge-offs (recoveries) $ 98     $ 10     $ (67 )   $ 136     $ 78  
    Net loan charge-offs (recoveries) as a percentage of average loans   0.00 %     0.00 %     0.00 %     0.01 %     0.00 %

    ____________________________
    (1) The adjusted efficiency ratio (non-GAAP) represents the ratio of operating expenses divided by the sum of net interest and dividend income and non-interest income, excluding realized and unrealized gains and losses on securities, gain on non-marketable equity investments, loss on disposal of premises and equipment, loss on defined benefit plan termination and gain on bank-owned life insurance death benefit.
    (2) Tangible book value per share (non-GAAP) represents the value of the Company’s tangible assets divided by its current outstanding shares.

    The following table sets forth the information relating to our average balances and net interest income for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023 and reflects the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.

      Three Months Ended
      September 30, 2024   June 30, 2024   September 30, 2023
      Average       Average Yield/   Average       Average Yield/   Average       Average Yield/
      Balance   Interest   Cost(8)   Balance   Interest   Cost(8)   Balance   Interest   Cost(8)
      (Dollars in thousands)
    ASSETS:                                        
    Interest-earning assets                                        
    Loans(1)(2) $ 2,038,593   $ 25,253     4.93 %   $ 2,017,127   $ 24,454     4.88 %   $ 2,007,267   $ 23,568     4.66 %
    Securities(2)   354,696     2,121     2.38       354,850     2,141     2.43       361,216     2,033     2.23  
    Other investments   15,904     189     4.73       14,328     148     4.15       12,155     166     5.42  
    Short-term investments(3)   32,043     396     4.92       14,328     173     4.86       22,349     251     4.46  
    Total interest-earning assets   2,441,236     27,959     4.56       2,400,633     26,916     4.51       2,402,987     26,018     4.30  
    Total non-interest-earning assets   153,585               156,701               156,503          
    Total assets $ 2,594,821             $ 2,557,334             $ 2,559,490          
                                             
    LIABILITIES AND EQUITY:                                        
    Interest-bearing liabilities                                        
    Interest-bearing checking accounts $ 131,133     271     0.82     $ 131,449     253     0.77     $ 144,792     269     0.74  
    Savings accounts   179,844     38     0.08       185,690     51     0.11       195,020     41     0.08  
    Money market accounts   621,340     3,172     2.03       622,062     2,930     1.89       656,066     2,488     1.50  
    Time deposit accounts   688,797     7,684     4.44       650,054     7,101     4.39       563,135     4,906     3.46  
    Total interest-bearing deposits   1,621,114     11,165     2.74       1,589,255     10,335     2.62       1,559,013     7,704     1.96  
    Borrowings   153,317     1,947     5.05       160,484     1,997     5.00       149,507     1,814     4.81  
    Interest-bearing liabilities   1,774,431     13,112     2.94       1,749,739     12,332     2.83       1,708,520     9,518     2.21  
    Non-interest-bearing deposits   559,224               548,781               591,933          
    Other non-interest-bearing liabilities   23,466               24,453               24,504          
    Total non-interest-bearing liabilities   582,690               573,234               616,437          
    Total liabilities   2,357,121               2,322,973               2,324,957          
    Total equity   237,700               234,361               234,533          
    Total liabilities and equity $ 2,594,821             $ 2,557,334             $ 2,559,490          
    Less: Tax-equivalent adjustment(2)       (119 )               (114 )               (117 )      
    Net interest and dividend income     $ 14,728               $ 14,470               $ 16,383        
    Net interest rate spread(4)         1.60 %           1.66 %           2.07 %
    Net interest rate spread, on a tax-equivalent basis(5)         1.62 %           1.67 %           2.09 %
    Net interest margin(6)         2.40 %           2.42 %           2.70 %
    Net interest margin, on a tax-equivalent basis(7)         2.42 %           2.44 %           2.72 %
    Ratio of average interest-earning assets to average interest-bearing liabilities         137.58 %           137.20 %           140.65 %
                                             

    The following tables set forth the information relating to our average balances and net interest income for the nine months ended September 30, 2024 and 2023 and reflect the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.

      Nine Months Ended September 30,
      2024   2023
      Average
    Balance
      Interest   Average Yield/
    Cost(8)
      Average
    Balance
      Interest   Average Yield/
    Cost(8)
     
                                           
      (Dollars in thousands)
    ASSETS:                          
    Interest-earning assets                          
    Loans(1)(2) $ 2,025,858   $ 74,058     4.88 %   $ 2,002,485   $ 67,586     4.51 %
    Securities(2)   356,340     6,376     2.39       372,623     6,276     2.25  
    Other investments   14,248     473     4.43       12,528     418     4.46  
    Short-term investments(3)   18,634     682     4.89       12,922     424     4.39  
    Total interest-earning assets   2,415,080     81,589     4.51       2,400,558     74,704     4.16  
    Total non-interest-earning assets   154,894               154,525          
    Total assets $ 2,569,974             $ 2,555,083          
                               
    LIABILITIES AND EQUITY:                          
    Interest-bearing liabilities                          
    Interest-bearing checking accounts $ 132,708     759     0.76 %   $ 142,716     780     0.73 %
    Savings accounts   183,872     128     0.09       207,513     142     0.09  
    Money market accounts   623,216     8,689     1.86       711,173     6,813     1.28  
    Time deposit accounts   655,700     21,217     4.32       498,193     10,141     2.72  
    Total interest-bearing deposits   1,595,496     30,793     2.58       1,559,595     17,876     1.53  
    Short-term borrowings and long-term debt   158,183     5,909     4.99       130,796     4,739     4.84  
    Total interest-bearing liabilities   1,753,679     36,702     2.80       1,690,391     22,615     1.79  
    Non-interest-bearing deposits   555,253               607,338          
    Other non-interest-bearing liabilities   24,931               23,886          
    Total non-interest-bearing liabilities   580,184               631,224          
                               
    Total liabilities   2,333,863               2,321,615          
    Total equity   236,111               233,468          
    Total liabilities and equity $ 2,569,974             $ 2,555,083          
    Less: Tax-equivalent adjustment (2)       (343 )               (356 )      
    Net interest and dividend income     $ 44,544               $ 51,733        
    Net interest rate spread (4)         1.70 %           2.35 %
    Net interest rate spread, on a tax-equivalent basis (5)         1.71 %           2.37 %
    Net interest margin (6)         2.46 %           2.88 %
    Net interest margin, on a tax-equivalent basis (7)         2.48 %           2.90 %
    Ratio of average interest-earning assets to average interest-bearing liabilities       137.72 %           142.01 %

    (1) Loans, including nonaccrual loans, are net of deferred loan origination costs and unadvanced funds.
    (2) Loan and securities income are presented on a tax-equivalent basis using a tax rate of 21%. The tax-equivalent adjustment is deducted from tax-equivalent net interest and dividend income to agree to the amount reported on the consolidated statements of net income.
    (3) Short-term investments include federal funds sold.
    (4) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
    (5) Net interest rate spread, on a tax-equivalent basis, represents the difference between the tax-equivalent weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
    (6) Net interest margin represents net interest and dividend income as a percentage of average interest-earning assets.
    (7) Net interest margin, on a tax-equivalent basis, represents tax-equivalent net interest and dividend income as a percentage of average interest-earning assets.
    (8) Annualized.

    Reconciliation of Non-GAAP to GAAP Financial Measures

    The Company believes that certain non-GAAP financial measures provide information to investors that is useful in understanding its results of operations and financial condition.  Because not all companies use the same calculation, this presentation may not be comparable to other similarly titled measures calculated by other companies.  A reconciliation of these non-GAAP financial measures is provided below.

      For the quarter ended
      9/30/2024   6/30/2024   3/31/2024   12/31/2023   9/30/2023
      (Dollars in thousands)
                       
    Loan interest (no tax adjustment) $ 25,134     $ 24,340     $ 24,241     $ 23,939     $ 23,451  
    Tax-equivalent adjustment   119       114       110       113       117  
    Loan interest (tax-equivalent basis) $ 25,253     $ 24,454     $ 24,351     $ 24,052     $ 23,568  
                       
    Net interest income (no tax adjustment) $ 14,728     $ 14,470     $ 15,346     $ 16,176     $ 16,383  
    Tax equivalent adjustment   119       114       110       113       117  
    Net interest income (tax-equivalent basis) $ 14,847     $ 14,584     $ 15,456     $ 16,289     $ 16,500  
                       
    Average interest-earning assets $ 2,441,236     $ 2,400,633     $ 2,403,086     $ 2,427,112     $ 2,402,987  
    Net interest margin (no tax adjustment)   2.40 %     2.42 %     2.57 %     2.64 %     2.70 %
    Net interest margin, tax-equivalent   2.42 %     2.44 %     2.59 %     2.66 %     2.72 %
                       
    Book Value per Share (GAAP) $ 11.40     $ 11.07     $ 10.90     $ 10.96     $ 10.53  
    Non-GAAP adjustments:                  
    Goodwill   (0.59 )     (0.58 )     (0.58 )     (0.58 )     (0.57 )
    Core deposit intangible   (0.08 )     (0.08 )     (0.07 )     (0.08 )     (0.09 )
    Tangible Book Value per Share (non-GAAP) $ 10.73     $ 10.41     $ 10.25     $ 10.30     $ 9.87  
                       
      For the quarter ended
      9/30/2024   6/30/2024   3/31/2024   12/31/2023   9/30/2023
      (Dollars in thousands)
                       
    Efficiency Ratio:                  
    Non-interest Expense (GAAP) $ 14,406     $ 14,314     $ 14,782     $ 14,785     $ 14,118  
                       
    Net Interest Income (GAAP) $ 14,728     $ 14,470     $ 15,346     $ 16,176     $ 16,383  
                       
    Non-interest Income (GAAP) $ 3,141     $ 3,834     $ 2,674     $ 2,714     $ 3,612  
    Non-GAAP adjustments:                  
    Unrealized (gains) losses on marketable equity securities   (10 )     (4 )     (8 )     1        
    Gain on non-marketable equity investments         (987 )                 (238 )
    Loss on disposal of premises and equipment               6             3  
    Gain on bank-owned life insurance death benefit                           (778 )
    Non-interest Income for Adjusted Efficiency Ratio (non-GAAP) $ 3,131     $ 2,843     $ 2,672     $ 2,715     $ 2,599  
    Total Revenue for Adjusted Efficiency Ratio (non-GAAP) $ 17,859     $ 17,313     $ 18,018     $ 18,891     $ 18,982  
                       
    Efficiency Ratio (GAAP)   80.62 %     78.20 %     82.03 %     78.27 %     70.61 %
                       
    Adjusted Efficiency Ratio (Non-interest Expense (GAAP)/Total Revenue for Adjusted Efficiency Ratio (non-GAAP))   80.67 %     82.68 %     82.04 %     78.26 %     74.38 %
                       
      For the nine months ended
      9/30/2024   9/30/2023
      (Dollars in thousands)
           
    Loan income (no tax adjustment) $ 73,715     $ 67,230  
    Tax-equivalent adjustment   343       356  
    Loan income (tax-equivalent basis) $ 74,058     $ 67,586  
           
    Net interest income (no tax adjustment) $ 44,544     $ 51,733  
    Tax equivalent adjustment   343       356  
    Net interest income (tax-equivalent basis) $ 44,887     $ 52,089  
           
    Average interest-earning assets $ 2,415,080     $ 2,400,558  
    Net interest margin (no tax adjustment)   2.46 %     2.88 %  
    Net interest margin, tax-equivalent   2.48 %     2.90 %  
           
    Adjusted Efficiency Ratio:      
    Non-interest Expense (GAAP) $ 43,502     $ 43,565  
           
    Net Interest Income (GAAP) $ 44,544     $ 51,733  
           
    Non-interest Income (GAAP) $ 9,649     $ 8,183  
    Non-GAAP adjustments:      
    Unrealized gains on marketable equity securities   (22 )      
    Loss on disposal of premises and equipment, net   6       3  
    Gain on bank-owned life insurance         (778 )
    Gain on non-marketable equity investments   (987 )     (590 )
    Loss on defined benefit plan curtailment         1,143  
    Non-interest Income for Adjusted Efficiency Ratio (non-GAAP) $ 8,646     $ 7,961  
    Total Revenue for Adjusted Efficiency Ratio (non-GAAP) $ 53,190     $ 59,694  
           
    Efficiency Ratio (GAAP)   80.27 %     72.71 %
           
    Adjusted Efficiency Ratio (Non-interest Expense (GAAP)/Total Revenue for Adjusted Efficiency Ratio (non-GAAP))   81.79 %     72.98 %
                   

    For further information contact:
    James C. Hagan, President and CEO
    Guida R. Sajdak, Executive Vice President and CFO
    Meghan Hibner, First Vice President and Investor Relations Officer
    413-568-1911

    The MIL Network

  • MIL-OSI Video: Türkiye, Lebanon/Israel, Yemen & other topics – Daily Press Briefing (23 Oct 2024) | United Nations

    Source: United Nations (Video News)

    Noon briefing by Farhan Haq, Deputy Spokesperson for the Secretary-General.

    Highlights:
    -Türkiye
    -Occupied Palestinian territory
    -Lebanon/Israel
    -Lebanon/humanitarian
    -Yemen
    -Brics
    -Deputy Secretary-General/Travel
    -Central African Republic
    -Security Council/Syria
    -Women, Peace and Security

    TÜRKIYE
    In a statement issued today, the Secretary-General strongly condemned the terrorist attack on Turkish Aerospace Industries’ facilities in Ankara. He expressed his deepest condolences to the victims and their families and wished a speedy and full recovery to those injured.
    The United Nations stands in solidarity with the people and Government of the Republic of Türkiye.

    OCCUPIED PALESTINIAN TERRITORY
    The Office for the Coordination of Humanitarian Affairs (OCHA) warns that Palestinians in North Gaza Governorate are experiencing extreme suffering as the Israeli siege there continues. OCHA says there are harrowing levels of death, injury and destruction in the north.
    Civilians are trapped under rubble. The sick and wounded are going without life-saving health care. Families lack food. Their homes have been destroyed. They have no shelter. And nowhere is safe.
    International humanitarian law demands that civilians have the essentials they need to survive – that’s food, shelter, medical care, and other critical assistance. OCHA appeals once again for rapid, unimpeded humanitarian relief – which must reach civilians in need.
    Our partners on the ground report that two water stations in North Gaza have stopped operating due to the lack of fuel. The suspension of service is affecting large areas, including the neighbourhoods of Al-Daraj, Al-Tuffah, Al-Zarga and Sheikh Radwan. A request earlier this week to deliver 23,000 litres of fuel to North Gaza Governorate was denied by Israeli authorities.
    From 6 October through yesterday, several attempts to get fuel to Gaza Governorate were also denied. Another mission was impeded and therefore unable to be accomplished.
    The UN and our partners have also been compelled to postpone the polio vaccination campaign in northern Gaza due to the escalating violence, intense bombardment, mass displacement orders, and the lack of assured humanitarian pauses across most of the north.
    This final phase of the vaccination effort was supposed to begin today, with the aim of reaching more than 119,000 children across northern Gaza.
    The current conditions – including ongoing attacks on civilian infrastructure – continue to jeopardize people’s safety and movement in northern Gaza, making it impossible for families to safely bring their children for vaccination, and for health workers to operate.
    It is imperative to stop the polio outbreak in Gaza, before more children are paralyzed and the virus spreads. To interrupt transmission, at least 90 per cent of all children in every community and neighbourhood must be vaccinated. The vaccination campaign must be facilitated in the north through the implementation of humanitarian pauses.
    UN humanitarian partners say that all logistics, supplies and trained personnel were prepared to vaccinate children across the north with their second dose of the polio vaccine. However, given that the area currently approved for temporary humanitarian pauses was substantially reduced in geographic size from the previous round of the vaccination campaign – and is now limited only to Gaza City – many children in northern Gaza would have missed out on a second dose.
    The UN and its humanitarian partners continue their efforts to get assistance to people in northern Gaza. On 15 October, the World Food Programme (WFP) was able to deliver one convoy into Gaza City. However, the Israeli siege on North Gaza Governorate has prevented the agency from reaching people there for the past three weeks.
    WFP warns that September and October saw some of the lowest levels of humanitarian aid entering Gaza since late 2023, alongside a drastic reduction in commercial cargo.
    In October, to date, only 20 per cent of the agency’s operational food needs have entered Gaza. A drastic shortage of supplies across Gaza has almost halted general food distribution.
    WFP says very limited aid supplies have entered the south due to insecurity at the Kerem Shalom crossing point. There is a critical need for a safe and enabling environment for humanitarian operations and convoy movements into and within Gaza.

    Full Highlight: https://www.un.org/sg/en/content/noon-briefing-highlight?date%5Bvalue%5D%5Bdate%5D=23%20October%202024

    https://www.youtube.com/watch?v=kJXrMLA8PBg

    MIL OSI Video

  • MIL-OSI Video: NASA’s SpaceX Crew-8 Re-entry and Splashdown

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

    Watch Crew-8 return to Earth, concluding their mission to the International Space Station. Their SpaceX Dragon spacecraft is scheduled for splashdown off the coast of Florida on Friday, Oct. 25 at approximately 3:29 a.m. EDT (0729 UTC).

    NASA astronauts Michael Barratt, Matthew Dominick, and Jeanette Epps and Roscosmos cosmonaut Alexander Grebenkin are coming home after seven months aboard the orbiting lab, conducting scientific experiments and technology demonstrations.

    Astronauts Butch Wilmore and Suni Williams, who launched to the station aboard NASA’s Boeing Crew Flight Test (CFT) this summer, will return to Earth with the two members of NASA’s SpaceX Crew-9 mission in the spring of 2025. Learn more about CFT: https://nasa.gov/starliner-faq

    Crew-8’s science highlights: https://www.nasa.gov/missions/station/iss-research/crew-8-concludes-space-station-scientific-mission/

    Credit: NASA

    https://www.youtube.com/watch?v=5CRB3FHV9Dw

    MIL OSI Video

  • MIL-OSI United Nations: Experts of the Human Rights Committee Welcome France’s Efforts to Combat Homophobia, Raise Questions on Violence in New Caledonia and Rules Governing Identity Checks

    Source: United Nations – Geneva

    The Human Rights Committee today concluded its consideration of the sixth periodic report of France on how it implements the provisions of the International Covenant on Civil and Political Rights, with Committee Experts welcoming France’s national plan combatting hatred against lesbian, gay, bisexual, transgender and intersex persons and plans to combat homophobia, while raising questions on violence in New Caledonia and rules governing identity checks. 

    One Committee Expert said the Committee welcomed the national plan for equality and against hatred and discrimination against lesbian, gay, bisexual, transgender and intersex persons (2020-2026) and the government plan (2023-2026) to combat homophobia and discrimination based on sexual orientation and gender identity. 

    Another Expert said it appeared that the current violence in the non-self-governing territory of New Caledonia was linked to reforms of the Nouméa Accord and a lack of progress in the decolonisation process.  What was the progress made on the issue of self-determination of the non-self-governing territory of New Caledonia as well as that of French Polynesia, and the participation and consultation processes put in place with the indigenous peoples living in these territories to obtain their free and informed consent and access to independence? 

    Another Expert asked if the State party could indicate whether mandatory training on racial and ethnic discrimination and profiling was systematically offered to law enforcement officials, both in metropolitan France and in the overseas territories?  Did the State party systematically collect data to monitor the use of identity checks, both in metropolitan France and in the overseas territories?  Would the State party be prepared to implement a template for all individuals subject to an identity check?  Would it be willing to introduce a centralised record of all identity checks to have an overview of how they were used, with whom and where?

    The delegation said France supported the recognition of indigenous peoples.  New Caledonia was one of the most advanced examples of the French Government recognising the rights of indigenous peoples.  Since the Nouméa Accord, an institutional framework had been put into place allowing for shared governance between the communities, representing the customs of the Kanak people.  On 1 October, the Prime Minister announced the postponement of elections in 2025, which was unanimously agreed by Parliament.  Since 1998, France had been cooperating with the decolonisation committee and the work had been fruitful.

    The delegation said all French citizens were equal before the law. The code of ethics for the police and national gendarmerie prohibited discriminatory identity checks.  When the law authorised an identity check, the police should not rely on any physical trait, unless there were specific grounds. Any act of discrimination could be reported by someone who believed they were a victim of discriminatory profiling. There were several ways to do this, including through the various controlling and monitoring authorities and the judiciary.

    Introducing the report, Isabelle Rome, Ambassador for Human Rights of France and head of the delegation, said human rights were a priority for France.  In December 2023, the President of the Republic announced that a House of Human Rights would be created in Paris to support civil society organizations. France had strengthened its public policies on the judiciary, democracy and the law enforcement agencies since 2022, paying particular attention to conditions for the use of force, and compliance with the rules of ethics during all police operations.  Ms. Rome concluded by saying that France believed in its democratic model, in liberty, equality and fraternity, as illustrated this summer by the Olympic and Paralympic Games.

    In concluding remarks, Ms. Rome thanked the Committee for the dialogue.  France was deeply attached to the rule of law and the Committee’s recommendations would be scrupulously considered.  The country was committed to renewing dialogue with the territory of New Caledonia and its inhabitants. 

    Tania María Abdo Rocholl, Committee Chairperson, thanked the delegation for the dialogue, which had covered a wide range of subjects under the Covenant.   The Committee aimed to ensure the highest level of implementation of the Covenant in France. 

    The delegation of France was made up of representatives of the Ministry for Europe and Foreign Affairs; the Ministry of the Interior and Overseas; the Ministry of Justice; the State Council; the Interministerial delegation to the fight against racism, anti-Semitism, and hatred; the French office for the protection of refugees and stateless persons; and the Permanent Mission of France to the United Nations Office at Geneva.

    The Human Rights Committee’s one hundred and forty-second session is being held from 14 October to 7 November 2024.  All the documents relating to the Committee’s work, including reports submitted by States parties, can be found on the session’s webpage.  Meeting summary releases can be found here.  The webcast of the Committee’s public meetings can be accessed via the UN Web TV webpage.

    The Committee will next meet in public at 3 p.m. on Wednesday, 23 October, to begin its consideration of the second periodic report of Türkiye (CCPR/C/TUR/2).

    Report

    The Committee has before it the sixth periodic report of France (CCPR/C/FRA/6).

    Presentation of Report

    ISABELLE ROME, Ambassador for Human Rights of France and head of the delegation, said human rights were a priority for France.  In December 2023, the President of the Republic announced that a House of Human Rights would be created in Paris to support civil society organizations.  Launched in 2021, the Marianne initiative for human rights defenders aimed to encourage the activities of human rights defenders, both in their country of origin, and by welcoming them in France.  The fight against the death penalty was also a priority for France.  France would host the ninth World Congress against the Death Penalty in Paris in 2026.  France was also contributing to the organization of the first World Congress on Enforced Disappearances in Geneva on 15 and 16 January 2025. 

    The State’s new feminist diplomacy strategy would be published by the end of 2024.  France was proud that the Paris 2024 Olympic and Paralympic Games were the first gender-balanced games in history.  Through its diplomatic and consular network, France supported projects of democratic governance, respect for the rule of law, the fight against impunity, access to justice, and mechanisms to monitor the effective exercise of civil and political rights.  In 2019, France launched the Partnership for Information and Democracy, which was joined by 54 States from all regions, to guarantee freedom of expression.  In May 2024, the President of the French Republic and the Prime Minister of New Zealand announced the creation of a new non-governmental organization, the Christchurch Call Foundation, to coordinate the work of the Christchurch Call to eliminate terrorist and violent extremist content online. 

    France had strengthened its public policies on the judiciary, democracy and the law enforcement agencies since 2022, paying particular attention to conditions for the use of force, and compliance with the rules of ethics during all police operations.  The national law enforcement plan published in 2021 provided for an adaptation of the employment strategies of the republican security companies and the mobile gendarmerie squadrons during public demonstrations.  The right to demonstrate was guaranteed by the Constitution in France.  By getting in touch with the prefects and police units involved in public demonstrations, journalists could be added to communication channels, allowing them to receive live information and ask questions. 

    Between 2020 and 2024, the Ministry of Justice’s budget increased by 33 per cent, from €7.6 billion in 2020 to €10.1 billion in 2024. In five years, the French Ministry of Justice would have recruited as many magistrates as in the last 20 years. To combat prison overcrowding, the Ministry of Justice was implementing a proactive prison regulation policy, based on the development of alternatives to incarceration, the strengthening of early release mechanisms, and an ambitious prison real estate programme creating 15,000 net prison places.  An Interministerial Committee for Overseas Territories was set up in July 2023.  France had mobilised authorities to enable and guarantee the return to calm and security of people in New Caledonia. Emergency measures were deployed last June.  The mediation and work mission continued its work, with the aim of renewing political dialogue. 

    France had been implementing a new interministerial plan for gender equality 2023-2027, which contained 161 measures divided into four priority areas: the fight against violence against women; the global approach to women’s health; professional and economic equality; and the dissemination and transmission of a culture of equality.  The law of July 2023 aimed at strengthening women’s access to responsibilities in the public service.  It increased the mandatory quota of first-time female appointments to senior and management positions to 50 per cent.  On 8 March 2024, France became the first country in the world to enshrine the freedom to have access to voluntary termination of pregnancy in its Constitution. 

    Questions by Committee Experts

    A Committee Expert welcomed that France’s report was prepared in consultation with the National Consultative Commission on Human Rights, whose role was to monitor France’s international commitments and the implementation of recommendations issued by international and regional bodies.  In May 2024, despite the provisions of the Nouméa Accord which provided for a process of gradual transfer of power from France to New Caledonia, the National Assembly voted in favour of expanding the electorate of New Caledonia.  Thousands of Kanak demonstrators mobilised to denounce these reforms, which were allegedly passed without adequate consultation or free, prior and informed consent.  In the absence of sufficient dialogue on the part of the authorities, a violent conflict had been raging since that date. 

    The French Government had deployed considerable military resources to restore order, but at the cost of numerous allegations of excessive use of force that led to several deaths among Kanak protesters and security forces, as well as injuries.  According to information received by the Committee, at least 11 people were shot dead and 169 others were injured; 2658 demonstrators were arrested, many of whom were arbitrarily arrested and detained, dozens of them were also transferred to metropolitan France. 

    It appeared that the current violence in the non-self-governing territory of New Caledonia was linked to reforms of the Nouméa Accord and a lack of progress in the decolonisation process.  What was the progress made on the issue of self-determination of the non-self-governing territory of New Caledonia as well as that of French Polynesia, and the participation and consultation processes put in place with the indigenous peoples living in these territories to obtain their free and informed consent and access to independence?

    There had been several prominent court cases regarding the removal of headscarves in France.  In the opinion of the French State, should the Committee’s Views be followed only in the case where the Committee considered a complaint to be inadmissible or agreed with the arguments presented by the French Government? Were there intentions to lift reservations to the Covenant?  Who currently appointed the magistrates of the courts?  What was the current state of the constitutional reform initiated with a view to making the Prosecutor’s Office independent of the executive?  How could the full independence of judges and prosecutors be guaranteed?

    Since 2015, France had put in place measures to combat terrorism, which had been seen over the years to be increasingly detrimental to people’s rights and freedoms.

    Was the new legislation accompanied by sufficient guarantees against the risk of arbitrary and discriminatory implementation of these measures?  What independent and impartial expertise did public authorities have to assess the impact of new technologies on the exercise of the rights and freedoms recognised by the Covenant? 

    It was understood that mass surveillance technology was used during the Olympic and Paralympic Games.  How did the State party ensure that it did not lead to profiling that disproportionately affected racial, ethnic and religious minorities?  How did the State party ensure that continuous surveillance by algorithm-based systems did not violate the right to privacy and respected the requirements of proportionality and necessity?  For how long could the data collected in this way be kept? 

    What were the current conditions for the communication of information to the intelligence services, particularly in the area of sensitive data? What information could be transmitted and what traceability requirements were in place?  Under what conditions could information provided by the intelligence services be made available to the judicial authority and the Public Prosecutor’s Office?  What means of access was available to defendants and those accused of acts of terrorism?

    Another Expert said the Committee was informed that people of colour were subjected to identity checks by the police about 20 times more often than other citizens.  They also faced discriminatory treatment during police stops and searches, including direct fines, often without objective suspicion and without being informed of the reasons.  What could be done to ensure that the use of identity checks and fines was not left to the discretion of law enforcement agencies, and was based only on objective and individualised conditions, and not on racial origins?  Did the State party have explicit guidelines for law enforcement agencies that clearly prohibited racial profiling in police operations as well as discriminatory identity checks? 

    Could the State party indicate whether mandatory training on racial and ethnic discrimination and profiling was systematically offered to law enforcement officials, both in metropolitan France and in the overseas territories?  Did the State party systematically collect data to monitor the use of identity checks, both in metropolitan France and in the overseas territories?  Would the State party be prepared to implement a template for all individuals subject to an identity check?  Would it be willing to introduce a centralised record of all identity checks to have an overview of how they were used, with whom and where?

    The Committee had received extensive information that showed the persistent problem of systemic racial discrimination, as well as the use of negative stereotypes against minorities.  What measures had the State party taken to effectively combat all forms of hate speech and hate crimes against racial, ethnic and religious minorities? What training was provided to law enforcement officers, judges and prosecutors, and what awareness campaigns were organised to prevent and combat hate crime and hate speech?  Would France develop data collection and research in compliance with data protection rules, to effectively identify cases of racial or ethnic profiling and offences in metropolitan France and overseas?

    The Committee welcomed the national plan for equality and against hatred and discrimination against lesbian, gay, bisexual, transgender and intersex persons (2020-2026) and the government plan (2023-2026) to combat homophobia and discrimination based on sexual orientation and gender identity.  How would the State party ensure adequate resources and the active participation of civil society in the implementation of these plans?  Did these programmes sufficiently take into account minorities within minorities, such as lesbian, gay, bisexual, transgender and intersex asylum seekers? 

    The Committee was informed that some of the measures granting extensive powers to the administrative authorities, developed in the context of the state of emergency, had been granted permanent status.  What measures had the State party taken to ensure that initial emergency measures were in conformity with the Covenant in terms of necessity and proportionality?  How did the State party promote the accessibility of judicial procedures and ensure that they were effective?

    How would France ensure that anti-terrorism legislation did not disproportionately target Muslims and that actions were based on alleged criminal behaviour rather than religious practices?  How did the State party ensure that house searches and dissolution of organizations were conducted by the courts?  What was the percentage of terrorist offences in relation to criminal offences committed in the last five years?  The Committee was informed of the law establishing a new security regime, which subjected the accused to certain obligations, with a view of ensuring their reintegration.  How did France ensure that this monitoring system, which was based on the rather vague notion of “dangerousness”, was not arbitrary and did not disproportionately infringe on the rights of persons who had served their sentences?

    One Committee Expert said the Committee particularly welcomed the State party’s commitment of significant financial resources to address the needs of vulnerable groups during the health crisis of COVID-19. What was the impact of the measures described in the State party’s report, to ensure that the COVID-19 pandemic did not exacerbate inequalities, discrimination and exclusion, including among vulnerable groups?  Specifically, regarding domestic violence against women, which was said to have increased during the pandemic, what was the assessment of the effectiveness and impact of the measures taken? 

    While noting the information provided by the State party, including on the judicial review of the restrictions imposed, could the proportionality of the measures imposed to address COVID-19 be explained, including the ban on any gathering of more than 10 people imposed for a certain period? What assessment did the State party make of this experience for a better consideration of human rights in future crises?      

    Another Expert said the State party had reported on humanitarian repatriations from Syria of women and children of French nationality.  With regard to returns, according to public reports, there was still a significant number of women and children detained or held in camps and rehabilitation centres in Syria.  What was the number, the current situation, and the measures taken by the State party to ensure the full repatriation of all French women and children still in detention camps and rehabilitation centres for minors in Syria? 

    What was the estimated number of detained men and women in Syria who participated as Islamic State fighters?  Had measures been taken to ensure that due process standards were strictly respected in the trials before the Syrian national courts? According to information, in May and June 2019, 11 French nationals had been sentenced to death in Iraq for their involvement as Islamic State fighters.  Could the delegation provide an update on that information and indicate what steps the State party had taken to prevent the continued imposition of death sentences on its nationals in that country?  What other penalties had been applied to these French nationals in lieu of the death penalty?

    The Committee had requested information related to the Arms Trade Treaty, in order to know whether the State party carried out an evaluation for the granting of export licenses aimed at determining that the recipient country used the weapons included in the respective license within the framework of respect for the right to life.  Did the evaluation of an arms export take this into account?  Had any measures been taken to ensure a total ban on arms sales to countries where there was a clear risk that such weapons could be used to violate international human rights law?  Was it possible to access information on arms exports so that civil society could carry out oversight?  What measures had been taken to prevent the negative effects on the right to life of the operations of French companies abroad, especially in the province of Cabo Delgado in Mozambique? 

    A Committee Expert said the Committee was informed that there had been a rise in police violence in recent years, with multiple incidents resulting in fatal outcomes, some of them young boys.   Could more information be provided on trainings on racism for police officers?  Had improvements been made, bearing in mind previous incidents?  The Committee was informed that investigations and legal procedures of unlawful killings by law enforcement officials were not expeditious, sometimes even leading to de facto police impunity, or that sentences were not commensurate with the gravity of the crime. 

    Had there been plans to amend legal norms and review legal conditions for the use of firearms by the police and the gendarmerie, aiming to reduce the risks of disproportionate use of lethal force, and to strike a better balance with the principles of absolute necessity and strict proportionality?  What was the status of investigations of fatalities and injuries, including those related to alleged excessive use of force, which emerged during conflicts that started in May 2024 in New Caledonia? Had trainings been undertaken for those operating in France’s overseas territories? 

    The Committee welcomed the reported introduction of the new right to appeal introduced by article 803-8 of the Code of Criminal Procedure, as a step forward.  However, Experts had been informed that there were several challenges preventing its full use and benefits.  Since the right to a judicial remedy against undignified conditions of detention was introduced in 2021, what were the steps taken by the State party to disseminate it within the incarcerated population?  Was the information on the creation of a new legal tool easily reachable in all penitentiaries under the jurisdiction of the State party?  Had legal aid been introduced to those incarcerated persons who could not afford a lawyer or judicial taxes?  Were there plans to introduce wider use of alternatives to detention or a more restricted use of detention as a last resort?

    Responses by the Delegation

    The delegation said France supported the recognition of indigenous peoples.  New Caledonia was one of the most advanced examples of the French Government recognising the rights of indigenous peoples.  Since the Nouméa Accord, an institutional framework had been put into place allowing for shared governance between the communities, representing the customs of the Kanak people.  On 1 October, the Prime Minister announced the postponement of elections in 2025, which was unanimously agreed by Parliament.  Since 1998, France had been cooperating with the decolonisation committee and the work had been fruitful.

    Since 2015, the technical intelligence community had been working on a specific legal framework.  The law included respect for the private lives of citizens and had a strict principle of proportionality.  The law set forth the procedures to be respected when it came to implementing intelligence techniques, including prior authorisation by the Prime Minister.  There were restrictions on how long the data could be held.  The enhanced video surveillance was enacted in advance of the Olympics and Paralympics Games.  France chose to engage in a rigorous oversight mechanism regarding this surveillance.  This was a tool for detecting events without having to resort to facial recognition. 

    All French citizens were equal before the law.  The code of ethics for the police and national gendarmerie prohibited discriminatory identity checks.  When the law authorised an identity check, the police should not rely on any physical trait, unless there were specific grounds.  Any act of discrimination could be reported by someone who believed they were a victim of discriminatory profiling.  There were several ways to do this, including through the various controlling and monitoring authorities and the judiciary.

    At the end of the state of emergency, which followed the attacks carried out on France in 2015, the Government acknowledged the need to keep these tools in place due to the possibility of other attacks.  Four new measures had then been created.  These laws were only for preventing terrorism and were accompanied with significant guarantees for citizens.  The law of 30 July 2021 on preventing acts of terrorism gave these measures permanency.  The Constitutional Council believed this was a balanced approach that ensured achieving the goal of preventing terrorism while respecting private life.  House searches could not be instigated unless there was prior authorisation from a judge; 1,447 remedies were presented for the state of emergency.  The law of 2021 applied to people who had been sentenced to acts of terrorism. Sentences for terrorist activities represented around 0.04 per cent of all criminal activities. 

    A plan had been developed to prepare the plan on combatting lesbian, gay, bisexual, transgender and intersex hatred, involving members of civil society.  The plan contained 16 key measures, including a ten-million-euro fund by 2027 to improve the host centres for these individuals.  The goal was to have two centres per region in France.  For hate speech, the legislation provision had recently been strengthened.  In 2021, there was a vote to govern the digital space and that law had a set of provisions on combatting online hate speech to better regulate illegal behaviour. There had been significant progress made in this area, given that a bill had been introduced in the European Parliament to regulate heinous content online. 

    In France, 2020 was the year that the State had the lowest rate of femicide.  This meant that the measures set up were effective, and that the police and justice systems were able to act swiftly to combat family violence.  There were also provisions which allowed complaints to be raised. 

    Measures adopted during the pandemic were considered to be proportional.  The measures taken to address the pandemic did not overturn other measures in place. During COVID-19, the number of calls to victim support groups for violence had increased.  The accelerated measures implemented by France to support victims included electronic bracelets to ensure restraining orders were complied with.   In 2021, emergency plans were implemented to ensure people were protected.  At the end of the pandemic, the State provided hotlines 24/7 and reception centres in shopping malls.  More specialised support was also provided in courts. 

    International commitments by France to human rights did not involve a repatriation of citizens in an area where France had no control.  Authorities responded systematically to requests for repatriation made by French citizens.  Since 2019, repatriation efforts for minors had been organised.  France exported weapons to countries that wished to strengthen their armies, only with strict national oversight. 

    Force was only used when necessary in cases set forth by law and in a manner which was proportional to the threat.  A police or member of the gendarmerie would only use force if it was essential in their work, such as in cases of self-defence.  Police had additional guidelines on the use of weapons.  There should never be doubt regarding the reasons of an arrest warrant. 

    France had a law which allowed for all inmates to request guarantees for their detention conditions, ensuring they were dignified. A provision was in place which allowed individuals to benefit from jurisdictional support, in place since 2023. Template forms for this purpose were provided to all detainees upon their detention. 

    Questions by Committee Experts

    A Committee Expert said the problem with the New Caledonia information was the outcome of the projects which arose in France in 1984. The idea of postponing elections to 2025 was a positive sign as this would allow for mediation between the local and French authorities.  Over recent years, there had been a considerable strengthening of anti-terrorist measures.  However, the majority of terrorist threats were foiled by international cooperation efforts.  Were the measures justified by the threats the State faced?  How could this be transmitted between different intelligence branches?  How long was intelligence data stored and what measures were provided to keep the information secure? 

    Another Expert asked for disaggregated data on what law enforcement officials had been charged with?  Were inmates allowed to apply to a collective appeal so that others could benefit? 

    An Expert said there were laws which prohibited discrimination in identification checks; how was it ensured that this legislation was implemented?

    Another Committee Expert asked for the delegation to bear in mind the matter of redress granted to victims of violence. 

    One Expert asked for a more specific response to the measures adopted to comply with the rulings of the European courts against certain cases against France?  How did the State party ensure effective judicial control and parliamentary oversight in weapon exportation? 

    Responses by the Delegation

    The delegation said the French overseas territories met all international criteria under the law.  France had completed the decolonisation process and no longer administered non-self-governing territories.  As for French Polynesia, in 2023, France decided to speak before the General Assembly, illustrating ongoing dialogue between the State and French Polynesia. France supported the development of French Polynesia. 

    The French Government followed the individual communications procedure before the Committee.  Any communications were the subject of broad consultations among many ministries and institutions. 

    When France ended the state of emergency of 2015 to 2017, the risk of terrorism in the country was still high.  While this risk had come down, threats still persisted; 45 attacks had been foiled between 2017 and now. 

    In 2022, over 700 people brought cases to court regarding acts of violence committed by people in public authority.  Over 200 of these led to convictions. 

    The Ministry of Education and Youth was currently creating a programme to consider the new kinds of racism and anti-Semitism which had cropped up in recent years. 

    The French law enforcement force represented the population and was diverse.  Inmates could ask for specific improvements to detention conditions which impacted their dignity.  Improvements had been carried out in several penitentiaries as a result of this. Several inmates could present these complaints together.   

    Questions by Committee Experts

    A Committee Expert said since the end of the state of health emergency on 10 July 2020, the situation of exiled people in Calais had deteriorated.  The nearly 1,200 homeless men, women and children in Calais had seen their living conditions deteriorated due to the brutal “evacuations” of several large camps, and the dramatic reduction in vital services such as food distributions, and lack of access to showers and water points.  Additionally, around 100 unaccompanied minors had settled in tents in Jules Ferry Square to highlight that they had been abandoned by the State. Could the State party comment on this?

    According to information received, journalists and media organizations were reportedly facing increasing challenges in carrying out their duties, including restrictions on reporting, potential abuses of power, and other pressures that undermined press freedom.  Reporters without Borders reported that police reportedly assaulted several “clearly identifiable” journalists.  There were several cases cited to support these allegations, including journalists in New Caledonia who stated they were constantly harassed for their coverage of the riots.  Could the delegation comment on these allegations?  What measures did the State party intend to take to better protect journalists and human rights defenders in the exercise of their work? Had the perpetrators of the mentioned cases been prosecuted and what was the outcome, including convictions and reparations?

    Another Expert noted the numerous allegations of prison overcrowding in the State party and the serious health risks during the most critical period of the COVID-19 pandemic, asking what were the reasons for providing, through decree-law 2020-303, for the full continuation of pre-trial detention, which even affected minors?  What were the conditions for the application of the measure of full maintenance of pre-trial detention to children and how many children were affected by this measure? How did law no. 2021-646 of 25 May 2021 on global security preserving freedoms effectively guarantee respect for privacy, especially in the use of portable cameras by law enforcement officers and cameras installed on unmanned aerial vehicles?  Did it include the principles of proportionality and necessity? In the case of the use of surveillance devices in public demonstrations by law enforcement officers, were there safeguards or limitations to prevent their use from affecting the right to peaceful assembly and freedom of expression? 

    It was alleged that four former national secretaries of the General Confederation of Labour were being investigated for defamation and public slander following a complaint filed against them by the Directorate of the National School of Prison Administration.  Could information on this be provided?  The Committee would also like information on the processes followed against various union, political and community leaders for the crime of glorifying terrorism after the Hamas attacks of 7 October 2023.  It was reported that during the recent Olympic Games, there were many cases of systematic Islamophobia that mainly affected Muslim athletes and communities, a situation exacerbated by the security measures adopted. Could the delegation comment on this? What measures had the State party taken to combat hate speech against lesbian, gay, bisexual, transgender and intersex persons?

    One Expert said the Committee had unfortunately been informed that the situation of migrants in Calais and Grande-Synthe was still very worrying, with authorities continuing to apply the “zero point of fixation” policy, under which temporary shelters were systematically dismantled, sometimes with excessive use of force, every 48 hours.  How were migrants informed of the 48 hour rule and the possible dismantling of their temporary shelters?  Could the State consider the use of more humane and proportionate alternatives to dismantling these shelters, including increasing the capacity of reception centres?  What measures had been adopted to facilitate reporting on police abuses? 

    The Committee was concerned by reports that migrants had been detained at the French-Italian border without having obtained legal documents explaining their detention.  How did France ensure that such detentions were not arbitrary and that all migrants were informed of their procedural rights?  The Committee was also informed that the immigration law of 2 January 2024 expanded the criteria for expulsion to include minor offences, and allowed authorities to place a foreign person in administrative detention for reasons related to a potential threat to public order without justification, as well as allowing detention to be extended and reducing procedural rights.  How was it ensured that these measures were compatible with the provisions of the Covenant? 

    The Committee had received information that the State party continued to issue expulsion notices for the return of persons to countries where they were at risk of serious violations of their rights.  How did the State party ensure respect for the principle of non-refoulement in all cases of expulsion?  Regarding the internal borders of the Schengen area, in particular the issue of rapid refoulement at the border between France and Italy, the Committee noted with appreciation the State party’s follow-up to the conclusion of the Court of Justice of the European Union.  The Committee welcomed the annulment by the Council of State, in February, of certain parts of the Code on the Entry and Residence of Foreigners and the Right of Asylum. 

    However, information had been received that foreign nationals continued to be forcibly returned to Italy without having had access to a proper asylum procedure.  How did France ensure the individualised examination of all applications and effective access to asylum procedures?  Did the State intend to end the use of bone tests in law and in practice?  What was the objective of the January 2024 law to establish files to identify unaccompanied minors suspected of a criminal offence?  Who controlled these files and who kept them?  What measures had been taken to ensure adequate temporary accommodation and emergency accommodation for unaccompanied minors?

    One Committee Expert said France had adopted the third national action plan against human trafficking (2024-2027) at the beginning of 2024.  Could the evaluation of achievements from the second action plan be provided and what goals were set for the third plan?  What were the measures developed to combat trafficking?  Could victims receive compensation within the criminal procedure, or did they have to undergo civil suits for compensation?  What safeguards were in place to protect victims themselves from criminal accountability?  What methods had been developed for victims’ identification?  Had trainings been organised for prosecutors, judges and lawyers on human trafficking? 

    The Committee was concerned by numerous reports that the ban on manifestation of religious beliefs by means of clothing, headgear or other religious symbols was a source of tension in French society and was seen by some as disrespect for multiculturism, fuelling the sense of discrimination, racism, anti-Semitism, and Islamophobia.  What measures were being taken to ensure that the ban on expressing religion by means of religious clothing, headgear or symbols did not have a discriminatory effect in practice?  How was it ensured that all visible religious symbols were treated equally? What criteria was used to decide what symbol should be treated as conspicuous and thus be banned, while others were treated as discrete and allowed?  How did the State party avoid that the ban on manifestation of religious beliefs by means of clothing affected predominantly Muslim girls and women? 

    What safeguards were in place to ensure that provisions on the dissolution of association would not be broadly interpreted and end in violating the right to freedom of assembly?  There had been examples of associations, such as Uprisings of the Earth, labelled as eco-terrorists.  Could the delegation provide its views on this?  The Committee was concerned at the expansion of police powers to stop and check persons in the vicinity of protests, and the effect that this could have on the effective enjoyment of the right of peaceful assembly.  A significant number of protesters had been arrested and detained and a small percentage of the protesters arrested had been charged.  What was the position of the State party on these allegations?  How were personal dignity and respect understood by the courts?

    Another Expert said the year 2023 was marked by a succession of bans on demonstrations, particularly related to the mobilisation against the pension reform, or those carried out in support of the Palestinian people.  In October 2023, the Minister of the Interior issued a memo calling on local authorities to pre-emptively ban all demonstrations of solidarity with the Palestine people.  The ban was challenged before the Council of State, which determined that local authorities had to judge on a case-by-case basis the risks to public order and thus avoid repression by invoking public order, excessive force or arbitrary arrest.  This had had repercussions, even in the area of the right to information, which was concerning.

    Did the National Law Enforcement Scheme adopted in September 2020 mention the path of “de-escalation”, as a strategic principle for policing political manifestations in Europe, supported by the European Union?  The Committee had expressed concern about allegations of ill treatment, excessive use of force, and disproportionate use of intermediate force weapons, in particular during arrests, forced evacuations, and law enforcement operations.  A 2017 law (the Cazeneuve law) created a common framework for the use of weapons, allowing police to use armed force in five different cases.  However, the number of deaths had increased fivefold after the 2017 law, causing France to become the country in the European Union with the largest numbers of people killed or injured by shots fired by police. 

    Could the delegation explain the extent to which law enforcement agencies followed the applicable protocols in practice, with supporting statistics, and respected the principles of necessity, proportionality, precaution, non-discrimination and self-defence in the use of weapons?  What measures, in terms of training for law enforcement agencies, were envisaged?  Would the State party be willing to review the legal framework on the use of weapons and limit the use of firearms within the Security Code?  What follow-up had been given to decision 2020-131 of the Defender of Rights on general recommendations on law enforcement practices with regard to the rules of ethics? 

    According to a decision by the Ombudsman, France was the only country in Europe to use stun grenades to keep demonstrators at bay. Would grenades continue to be used despite the serious mutilations and injuries they caused?  Could the delegation provide updated information on the number of persons who had died as a result of police operations during arrests, including through the excessive use of force, and on the outcome of investigations into such deaths, sanctions imposed, and reparations provided to victims and their families?  Could statistics be provided on the number of proposals for sanctions presented by the Defender of Rights and what became of them, in particular the number of prosecutions? 

    Would the Brigades for the Repression of Motorised Violent Actions be dissolved?  The State party’s report provided information on complaints and investigations initiated concerning members of the security forces.  What measures would be taken to make the relevant statistical data more reliable, disaggregated and complete?

    Responses by the Delegation

    The delegation said the evacuations of camps in Calais which took place were done through either a legal or an administrative decision. These decisions were carried out with proper supervision and were overseen by the Government and social organizations.  Unaccompanied minors were housed in emergency shelter systems when possible and the same for adults when possible. 

    France guaranteed the right to protest and freedom of collective speech and expression of ideas.  The French State allowed journalists free circulation.  France was seeking to strike a balance because there were now many journalists without press identification who ran risks, placing themselves between protesters and law enforcement officials.  Law enforcement officers were called on to show professional behaviour at all times, including in situations where protests were violent. 

    Videos in public spaces were used to call attention to pre-determined actions; they did not have any impact on the right to protest. France supported the European plan for protecting journalists against violence.  This had allowed for additional guarantees to be provided in certain cases. 

    French authorities were mobilised to support efforts against hate speech, and there were efforts to address this phenomenon within the Ministry of Justice.  When cases were thrown out, they could be appealed before the appeals court.  Investigations into allegations of hate speech were underway. 

    The administrative police were evacuating camps, which were aimed at putting an end to illegal occupation and squatting of lands.  These operations on the ground involved parameters being established.  Regarding expulsions in Calais, 36 operations had taken place.  They were based on the same legal foundations; the anti-squat laws had been utilised to proceed with the evacuation.  Minors were always supported.  The State was aware of the situation of unaccompanied minors in Calais. Systems had been put in place to address these realities and identify the unaccompanied minors.  Work was being done with associations on the ground in Calais, including Doctors without Borders.  The shelters were only 20 minutes from Calais and allowed for daily operations and support.  This distance was far enough to protect unaccompanied minors from traffickers found in these camps. 

    When foreigners were not eligible for asylum seeking procedures, they could then be placed under administrative detention in administrative detention centres.  These decisions were subjected to oversight by judges.  During the detention period, foreigners benefitted from health care support and legal counsel.  Voluntary returnees received financial support.  Some countries were not considered to be safe, and therefore returns were only on a voluntary basis.  Since October 2022, the Government was active in Mayotte, allowing active participation in the asylum-seeking process. 

    There were 2,100 victims of trafficking and exploitation in 2023, a six per cent increase compared to 2022.  Around 882 people had been sentenced for exploitation and trafficking.  France thanked civil society for helping contribute to the National Action Plan against Trafficking.  Training was an important part of the strategy to combat trafficking; there was a training course on human trafficking with a focus on modern slavery. Training was provided to 150 different professionals.  To care for the victims of human trafficking, several mechanisms were in place, including an early detection mechanism.

    France guaranteed the rights of citizens at the highest level, and any restrictions applied to all religions equally.  There was freedom for an individual to display religious signs, but this needed to be assessed on a case-by-case basis.  Any restriction on a religious symbol was only imposed if they were identified as a risk to the public service. 

    Freedom of expression was guaranteed in France, but this could result in some groups promoting racist and hate speech.  The law of 2021 amended the list of cases where a dissolution could take place, broadening the list of discriminatory measures which could lead to a dissolution. 

    The Public Ministry could carry out prosecutions.  Sometimes the Prosecutor could enact educational measures instead, which was used in some cases of minors.  The judges of France were required to argue for their decisions, given that there were no automatic sentences in the State.  This was also true for those found guilty of threatening public order. 

    France was one of the first countries to call for a ceasefire in Gaza.  There had been a significant increase in anti-Semitic acts since October 2023. Freedom to demonstrate was a fundamental right protected by the Constitution and protests were not subjected to authorisation.  There should be a notification to law enforcement around 15 days before to protect the safety of those participating and those living in the area.  The prohibition of protests was only carried out if it was believed they were a threat to public order, and this was done with the oversight of a judge.  Exceptionally, some protests had been prohibited due to the risk they posed to public order. 

    The use of firearms in France was regulated by the Criminal Code. This allowed a gradual response to respect necessity and proportionality to the violence and the threat.  The goal was to reduce the risk of threatening life and the integrity of people.  The police and gendarmerie were trained on how to use these weapons.  Regarding the brigades, several changes in the practices of demonstrators, including the increase in use of social media, had meant that for three years, the strategy had changed.  On average, there were two to three protests every day in Paris.  To meet this challenge, the brigades were developed and had been used to break up certain disruptive groups.  Since October 2023, the Ministry of Justice had circulated a document on combatting offences related to terrorist activities. 

    The fight against Islamophobia was a strong State policy. The strong Muslim community in France should be able to live with their beliefs peacefully to enjoy their religion. Any law which might be seen as a restriction did not target any specific population or any specific religion. 

    Questions by Committee Experts

    A Committee Expert asked if minors in Mayotte could be afforded the same protections as in metropolitan France? 

    Another Expert said hate speech online affected artists and activists in the lesbian, gay, bisexual, transgender and intersex community. What had been done to prevent this? 

    An Expert said there had been a significant increase in those killed or wounded during protests or police operations.  Were grenades and defensive bullets still used?  What happened when police used these weapons? Was there a compulsory inquiry? Was there oversight regarding each use of weapons? 

    Responses by the Delegation

    Minors were subjected to an age evaluation before they were recorded as minors.  If recorded as a minor, they should not undergo another evaluation.  The dismantling of camps was based on public legal rulings.  The individuals were informed, and efforts were made to help them find shelters or to change their immigration status.  Readmission into the Schengen space was a complex issue. 

    There was a doctrine for the use of medium weapons which allowed gradual and proportionate use.  Recent changes allowed France to address the risk of wounds with these weapons.  Law enforcement officers needed to be clearly trained on each type of weapon on a regular basis.  There was a proposal to replace grenades with non-lethal “flash-bangs”. Random visits were undertaken to police and gendarmerie stations as a form of auditing.  Efforts were made to identify the amount of time weapons were used. 

    Closing Remarks

    ISABELLE ROME, Ambassador for Human Rights of France and head of the delegation, thanked the Committee for the dialogue.  France was deeply attached to the rule of law and was a living democracy; the Committee’s recommendations would be scrupulously considered.  France would continue to progress with an open-minded spirit, in partnership with civil society and the national human rights institution.  The country was committed to renewing dialogue with the territory of New Caledonia and its inhabitants. 

    TANIA MARÍA ABDO ROCHOLL, Committee Chairperson, thanked the delegation for the dialogue, which had covered a wide range of subjects under the Covenant.  The Committee aimed to ensure the highest level of implementation of the Covenant in France. 

    __________

    CCPR.24.024E

    Produced by the United Nations Information Service in Geneva for use of the information media; not an official record.

    English and French versions of our releases are different as they are the product of two separate coverage teams that work independently.

    MIL OSI United Nations News

  • MIL-OSI Canada: Funding for encampments: Minister Nixon

    Source: Government of Canada regional news

    “The province has not received, nor has the province declined, an offer on encampment funding. It is disappointing to see that the federal government is playing politics with vulnerable Albertans.

    “We did receive a letter from federal Minister of Housing, Infrastructure and Communities Sean Fraser that initiated planning for federal encampment funding. However, there was no offer of encampment funding and at no point was a deadline provided to the province to finalize an agreement. Officials have met regularly to discuss the best use of these potential funds, including as recently as Monday, Oct. 21.

    “This year alone, Alberta’s government is investing almost $210 million in homelessness initiatives – the highest investment in the province’s history. We have increased our shelter capacity to the most in Alberta history and are operating below capacity.

    “While Alberta is open to federal partnership on these issues, we are not interested in playing politics with the federal government. Alberta will continue investing in this life-changing work, with or without the federal government.”

    MIL OSI Canada News

  • MIL-OSI New Zealand: Mixed weather bag ahead for Te Wai Pounamu, the South Island into Labour Weekend

    Source: New Zealand Transport Agency

    MetService and meteorologists are warning people travelling this week and over Labour Weekend to be ready for changeable weather and in some places torrential rain.

    Two storm surges are forecast, says NZ Transport Agency Waka Kotahi (NZTA), with the first starting over Te Wai Pounamu/the South Island today and tomorrow.


    Milford Sound Piopiotahi highway, SH94 closed today and Thursday

    Intense rain has elevated the avalanche risk on this route today, closing it today and Thursday. Reopening Friday will be subject to avalanche risk and storm clearance work. Updates here: (external link)

    Journey Planner – Southland closures(external link)


    West Coast and alpine passes

    West Coast drivers on SH6 south of Harihari need to be ready for heavy rain and possible flooding from rivers like the Waiho near Franz Josef later today and into tomorrow.

    Visibility in heavy rain can be minimal and SH6 can flood in low-lying places. “Drivers should avoid travelling at night and leave double the normal travelling distance to the car in front in torrential rain,” says Mark Pinner, System Manager for NZTA, Central South Island.

    Roads will close if conditions deteriorate and people could encounter fallen trees and slips so be ready to slow down at short notice, says Mr Pinner.

    Heavy rain is forecast to move to alpine areas of SH73, the Arthur’s Pass/ Otira highway, and further north on the West Coast later Thursday into Friday.

    • Rain is forecast to ease south of Arthur’s Pass, SH73, by early Friday and other areas later on Friday.
    • Canterbury river catchments like the Rakaia and Rangitata are also forecast to catch huge amounts of rain in the headwaters.

    Second storm over weekend

    The second storm is forecast to affect the upper half of the South Island on Saturday bringing heavy rain, including eastern areas.

    Kaikōura, Nelson, Marlborough, and Buller could all catch this rainfall as well as the eastern foothills, say meteorologists.

    With cold air forecast for Saturday also along the Main Divide alpine pass travellers need to keep up-to-date on conditions and any restrictions –  for example, if chains are required and no-towing vehicles in places like Porters or Arthur’s Pass.

    NZTA advises people to check these sites before heading away and drive prepared – with snacks, water and blankets and a safe vehicle with good windscreen wipers:

    Metservice warnings(external link)

    Journey planner – Highway conditions(external link)


    Labour Weekend popular travelling time

    “There will likely be heavy traffic over the long weekend as large numbers of people head out of main centres to holiday destinations. If you can avoid peak travel times it will make the trip a lot more enjoyable,” says Mr Pinner.

    Check the NZTA Labour Weekend journey planner for an indication of times and days traffic has been heavy on key highway routes here: 

    Labour day weekend holiday journeys(external link)

    MIL OSI New Zealand News

  • MIL-OSI New Zealand: Don’t let holiday traffic belabour your long weekend

    Source: New Zealand Transport Agency

    Labour Weekend is now upon us after a long winter and spring with no public holidays. With it comes holiday road trips and more traffic on the roads.

    Mark Owen, Regional Manager Lower North Island / Top of the South, says with more traffic comes the need to take extra care when driving.

    “Holidays are about creating happy memories, which is why we want everyone to think about the driving basics if they’re heading away this weekend.”

    “Holiday traffic means there will be congestion on highways in and out of Wellington late Friday and Monday. If you’re in queued traffic, be patient. Our helpful Holiday Journey Planner can help you avoid peak travel times and save you some traffic jam stress,” Mr Owen says.

    Holiday Journey Planner (external link)

    Mr Owen says carrying out some basic checks before you drive can save you grief too.

    “Check your tyre pressures, coolant and oil levels. Punctures, overheating, and engine troubles are not what you need on a road trip.”

    “Also, check the weather too. If the forecast is bad, allow some extra time for your journey,” Mr Owen says.

    But the most critical advice Mr Owen has is to drive safely.

    “We may sound like a broken record when we tell people to be patient and not to speed, to keep left unless passing, to not drive when tired, and to always wear your seatbelt.”

    “But we say it because it matters. Small mistakes can have devastating consequences. For you, your friends and family, and other drivers,” Mr Owen says.


    Weather Warnings

    The Metservice has issued weather alerts for the lower North and upper South Islands.

    A Strong Wind Watch is in force for Wairarapa, Wellington, and the Marlborough Sounds from late today (Thursday) to early Friday morning, with severe northwest gales forecast for exposed areas.

    Drivers travelling on State Highway 2 Remutaka Hill and the Wainui Saddle on State Highway 1 Transmission Gully must take extra care.

    On top of the South Island, a Heavy Rain Warning has been issued for the Tasman District northwest of Motueka from late today (Thursday) to early Friday morning. This will affect State Highway 60 in Tākaka/Golden Bay.

    Drivers should be prepared for slips, rockfalls, localised flooding and wet driving conditions. Please watch your speed and following distances, and drive to the conditions.

    Road users are encouraged to check road and weather conditions before they travel.

    Metservice warnings(external link)

    Journey planner – Highway conditions(external link)


    Tips for safe driving on your Labour Weekend holiday

    Plan ahead. Use our Holiday Journey Planner to find out when the peak traffic times will be and time your travel to avoid them.

    Labour day weekend holiday journeys(external link)

    Drive to the conditions, allow plenty of time and take regular breaks to stay alert.

    • Be patient when driving this summer so everyone can relax and enjoy the holidays together.
    • Keep a safe following distance from vehicles in front so you can stop safely.
    • Drive to the conditions – whether it’s the weather, the road you’re on, the time of day or the volume of traffic on the roads.
    • Take regular breaks to stay alert.
    • Allow plenty of time. You’re on holiday, there is no need to rush. 
    • For more information, check out our helpful holiday driving tips:
      Driving in the holidays(external link)

    Vehicle safety

    • Your vehicle must be safe to drive before you set off on your summer holiday.
    • Check that the Warrant of Fitness or Certificate of Fitness is up-to-date on any vehicle you plan to drive, including rentals.
    • There are basic checks you can do yourself, including:
      • Tyres – minimum tread is 1.5mm but the more tread, the better the grip.
      • Lights – check that all lights work so your vehicle is visible in poor light.
      • Indicators – ensure all indicators work so people know which direction you are moving.
      • Windscreen and wipers – check for wear and tear so you can see the road safely.
    • For more information on self-checks, visit our Check your car web page:
      Check your car – safety basics(external link)

    MIL OSI New Zealand News

  • MIL-OSI USA: Federal Judge Rebuffs Pittsburgh Post-Gazette’s Claim That U.S. Labor Law Violates Constitution

    Source: Communications Workers of America

    PITTSBURGH, Pa. – A motion by representatives of the Pittsburgh Post-Gazette arguing that the National Labor Relations Act (NLRA) is unconstitutional was rejected by U.S. District Court Judge Cathy Bissoon on Tuesday.

    The Post-Gazette (“PG Publishing Co.”) is facing an injunction hearing on Monday, Oct. 28, in which the National Labor Relations Board will seek a ruling from Judge Bissoon ordering and enjoining the PG to stop violating federal labor law, bargain with its workers in good faith, and pay for their health care costs until a new collective bargaining agreement (CBA), or health care plan, is agreed.

    With its rejected motion, the PG joined Elon Musk, Trader Joe’s, and Amazon in claiming that the NLRA, which has regulated labor relations in the U.S. since its passage in 1935, violates the constitution. Judge Bissoon dismissed these arguments.

    “While PG’s positions are not outlandish by contemporary standards, this Court declines its invitation to ignore nearly a century’s worth of settled jurisprudence. See NLRB v. Jones & Laughlin Steel Corp., 301 U.S. 1 (1937),” Bissoon wrote in her order. “Although respect for stare decisis appears less ‘in vogue’ as of late, there is something to be said for tradition. The undersigned will continue to respect it.”

    Striking pressworkers, advertisers, and mailers have been on strike since October 6, 2022, following the PG unilaterally canceling the health care of its production and distribution workers over an increase in costs of $19 per week per person.

    Editorial workers in the Newspaper Guild of Pittsburgh joined them on Oct. 18 on an unfair labor practice strike stemming from the company’s illegally unilateral decision to tear up the Guild’s contract in July of 2020 and from the company’s other illegal behavior.

    “The Post-Gazette’s owners have gone beyond breaking the law and have argued that there should be no law at all,” said CWA District 2-13 Vice President Mike Davis. “It would be laughable at this point if it wasn’t causing real damage to the Post-Gazette’s workers and their families and undermining the news coverage that the people of Pittsburgh deserve. We are pleased that Judge Bissoon has rejected the Post-Gazette’s frivolous attempt to eliminate the National Labor Relations Act so we can focus on the real issue—the Post-Gazette’s failure to follow the law.”

    Monday’s hearing in front of Judge Bissoon is scheduled to begin at 10 a.m. at the federal courthouse at 700 Grant St. in Downtown Pittsburgh.

    ###

    About CWA: The Communications Workers of America represents working people in telecommunications, customer service, media, airlines, health care, public service and education, manufacturing, tech, and other fields.

    cwa-union.org @cwaunion

    MIL OSI USA News

  • MIL-OSI USA: Administrator Samantha Power at a Press Conference in Phnom Penh

    Source: USAID

    ADMINISTRATOR SAMANTHA POWER: Thank you all. It is great to see everyone this evening. 

    It has been a great pleasure for me to be back in Cambodia for my fourth visit. In previous visits, of course, I have been awed by the majesty and rich culture of Angkor Wat, the incredible power and importance of the Tulsa Lang Genocide Museum, and, of course, the beauty of the Mekong River.

    Being back here and discussing the deepening engagement between our two countries has been very enlightening for me. The partnership of today builds on several decades of investment by USAID in support of the dignity and prosperity of the Cambodian people. 

    I feel, personally, very fortunate to be the first USAID Administrator to visit Cambodia while in this role, and I have taken many notes about the priorities of the Government officials, students, and civil society leaders that I’ve had the chance to engage with.

    Over the past few decades, the Cambodian people have made really remarkable strides to improve health, education, and economic growth. We, in the United States, again, have been able to support these efforts, including with a total of $3 billion in assistance over the past more-than-30 years. 

    We, in these years, supported the efforts of public health heroes like Mr. Yang Chiang, this country’s first entomologist, who I had the honor of meeting today. A man who has dedicated his life to trying to eliminate malaria here in Cambodia, and an individual who has been able to see with so many of you that Cambodia now has marked six straight years without a single death from malaria, and thus, again, is on the cusp of meeting this goal of eliminating malaria in this country.

    We also have supported Cambodia’s education system to get more kids into school. Since 2007, the number of children enrolled in preschool programs has more than doubled, and Cambodia is close, in fact, to achieving universal access to primary education. USAID programs have doubled reading scores among the children that we have worked with, and we are now seeing the Cambodian Government using these same approaches to help even more young people. 

    We worked as well to increase trade between our two countries, and today, the United States is Cambodia’s largest export market. Over the past five years, indeed, Cambodia’s exports to the United States have more than doubled. There is meaningful progress like this to celebrate, and on this trip, I am glad to announce over $50 million in new funding from across the U.S. government to try to build on some of this progress.

    With these funds, we will invest in helping Cambodian farmers connect with markets and adopt new technologies to keep producing plentiful and safe food, even as the climate changes. We will invest in keeping the Cambodian people safe by clearing landmines and other unexploded ordinances, building on decades of efforts to address the dangerous legacies of war. And importantly, we will invest in supporting civil society, labor, and independent media, investments that will not only support Cambodia’s democratic future but its economic future, as well. 

    On this visit, I have met with Cambodians from all walks of life – families fostering kids with disabilities, students and environmentalists, workers who care for some of this country’s most sacred sites, doctors, nurses and community health workers, labor activists, and brave individuals who seek to hold those with power accountable to the principles enshrined in this country’s constitution: democracy, human rights, transparency. 

    There is great potential for the relationship between the United States and Cambodia to grow stronger, and, as is the case in all of our important relationships, there are also concerns, including about unjustified arrests and threats to basic rights. We are following the case of journalist Mech Dara very closely, including some potential developments today. I had a chance to both meet with Dara’s family, and to raise this issue, along with other concerning cases, in my meeting with the Prime Minister today. 

    All of these cases are sensitive, but I will just underscore that we have emphasized our support for finding positive resolutions. More broadly, as I discussed with Prime Minister Hen Mannet earlier today, American and international companies see real opportunity here in Cambodia. But, in order to invest here, they want to see meaningful improvements in the business enabling environment, to tackle corruption, to improve respect for labor rights, and to address the cyber scam operations plaguing Cambodia’s international reputation. 

    Working toward greater transparency, accountability and protection of human rights can unlock extraordinary prosperity for the Cambodian people. That can be the promise of a new generation, and we, in the United States, will be eager partners in working together to achieve it. 

    Thank you so much, and I look forward to taking your questions.

    QUESTION: Thank you. Hi, I’m Prak Chan Thul from Kiripost. So, you said you announced $50 new million for Cambodia. What? What have you heard from the authorities of the Cambodian government that in return of this new aid and what have you – what will you promise in the case of Mech Dara, will he be released? Thank you.

    ADMINISTRATOR POWER: Thank you. I’m not going to comment further on Mech Dara’s case beyond to stress the importance of independent media, of checks and balances, and of the rule of law. 

    With regard to the new investments that have been announced. They range from an additional investment in the prevention of tuberculosis. I was able, yesterday in Siem Reap, to witness a very energetic effort to reach at least some of the Cambodians who have tuberculosis, but often do not know they have TB until it is not only too late for them, but too late for others, given how the disease spreads. So, USAID is partnering with community-based organizations that will reach citizens where they are, not expecting citizens to experience a symptom and then travel a long way to get a diagnosis, but an effort really to make the diagnostic technology more mobile and more readily available. And, this is with an eye to helping Cambodia and Cambodians reach the goal that the government has set to eliminate TB by 2030. So, this is a $4 million investment in a local organization that is driving some of this community based work to get rid of TB. 

    In addition, just to stay in the area of public health, we have announced an additional $1 million to invest in doing a survey for the Cambodian people of blood lead levels. There is significant lead poisoning among children in many developing countries, including Cambodia, but understanding exactly where those elevated levels of lead in the blood are clustered, understanding the sources of lead poisoning is absolutely critical to eliminating lead poisoning going forward. 

    And, this was something – both this and TB and, of course, all of the work we have done together on malaria, were each topics that I had a chance to discuss with the Prime Minister, and sensed a lot of enthusiasm to go forward again with the efforts to eliminate TB, and the effort now to get a handle on precisely what the sources of lead poisoning are so as to embark on a multi-faceted effort to regulate lead and to ensure that Cambodia’s children are no longer exposed to something that can be very harmful to educational attainment, and can ultimately even cause premature death. 

    We also are announcing an investment of an additional $5 million to support workers, civil society, and independent media. And here, let me just note, obviously these are investments in non-governmental actors. But, one of the topics that we discussed at length with the Prime Minister was his broad ambition to attract more foreign investment, to take steps that will ensure that the economy continues to grow and even grows more, and creates jobs for all of the young people who are looking for jobs every year. But, it is really, really important for investors to have confidence in the rule of law, for corruption to be tackled, so that, for example, American companies can feel confident that they can invest here without having to pay bribes or engage in kickbacks, which are illegal in the United States. 

    And so, these investments in civil society, in media, in the dignity of work and workers – all of these are investments as well in Cambodia’s economic development and that broad ambition that so many Cambodians have for their children to enjoy a more prosperous future than they themselves.

    QUESTION: Hi, my name is Danielle Keaton Olson. I’m a freelance journalist based in Phnom Penh, and I was wondering so, Cambodian-based labor rights organization called Central has gotten under fire for receiving foreign funding. The Cambodian government has criticized it for receiving foreign funding. And, of course, there’s been the arrest of our colleague and the U.S. recognized Trafficking-In-Persons report hero, Mech Dera. Are these raising alarms or concerns within USAID at this moment?

    ADMINISTRATOR POWER: Well, I have had the chance on this visit to sit down with individuals from Central and to hear firsthand about the experiences that they have been having, the level of the scrutiny of their operations, and the concerns that they have about being able to continue doing the work that has proven so important for workers rights here in Cambodia. I also had a chance in Siem Reap to meet with individuals who have helped organize, those who actually maintain these cherished tourist sites, and who themselves have organized in order to secure better wages, better working conditions, better hours, et cetera. 

    President Biden is laser-focused on labor rights at home and indeed has shown tremendous initiative and leadership on promoting global labor rights. And so, it was very important in having this visit for us to sit down and dig into just those issues. And, one of the arguments that I made today with the government, and it’s an argument again that U.S. officials are making all around the world, is that labor rights and workers abilities – a worker’s ability and workers’ abilities to advocate for themselves without fear of persecution, is absolutely critical to growing the economy in a manner that expands livelihoods and prosperity for all Cambodians. 

    So, this is not simply an issue of human rights, which it is, it is also absolutely critical that the freedom to organize, the freedom to associate, the freedom to express one’s concerns, be protected. And, I think that is the foundation to an economy that will not only grow but grow in an inclusive manner that benefits ordinary Cambodians and not merely those who have benefited from growth in prior generations.

    QUESTION: Sorry. Has it – just to clarify – Has it raised some concerns about USAID ability to support these values that, in terms of labor rights and independent media, that the U.S. government values?

    ADMINISTRATOR POWER: Well, as I indicated in announcing additional support, you know, when these rights are challenged, it becomes all the more important for USAID to be working in partnership with those who are bravely defending those rights. And so, I actually think it underscores the importance of these investments, and I think that is certainly the message that I heard from the labor organizers that I’ve spoken with over the last few days – is both the resources to support those who are organizing, but also what we call the development diplomacy, you know, raising these – raising with senior government officials, the importance of these rights being protected and respected. And, the United States is not alone in raising these concerns. Obviously, other democracies are intent as well in raising concerns about, again, some of what appear to be the growing pressures on workers and on unions and on labor organizers. 

    QUESTION: Good evening, madam. My name is Hul Reaksmey. I am reporter from Voice of America. My question is, what is your observation about Chinese growing in Cambodia, when you talk about Cambodia effort to improve democracy?

    ADMINISTRATOR POWER: Sorry, just a little bit hard to hear. Maybe just slow down, and I heard the first part, but just the last part of your question?

    QUESTION: Does the Chinese growing influence undermine efforts of Cambodia to improve democracy?

    ADMINISTRATOR POWER: Thank you. Well, one of the things that the United States stresses in the countries where it works around the world is the importance of transparency, a spirit of partnership, the importance of natural resources being protected and preserved. As we just discussed, the importance of civil society and non-governmental actors, holding government accountable, and maybe this is a point I would stress even the most strongly, the importance of the investments we make, strengthening a country’s path to independence, rather than any kind of dependence. And so, one of the things that really stands out for me in terms of the U.S. development model is that we provide our support by-and-large through grants. 

    It’s extremely important to us that when we invest in health programming or education programming or food security efforts, like the USDA program that I’ve announced on this visit; or demining, like the additional $12 million that I announced on this visit, that the Cambodian people understand that these resources are invested in a spirit of partnership. 

    We are listening to our Cambodian partners and trying to mobilize resources in support of their objectives. What we do not want is for Cambodia or the Cambodian people to be somehow indebted to us in a manner that actually impedes this country’s economic development. 

    So, just to give you one statistical example of this. The United States invests about nine dollars in grants for every dollar of loan that the United States provides. The PRC invests about nine dollars in loans for every dollar in grants. And, one of the challenges – and these numbers are lower, I think, than the actual number, but at least that is the ratio, at least – one of the challenges that can saddle future generations with the obligation to repay debt, often at high interest, debt that was incurred long before.

    Again, our goal is for Cambodia to move, once and for all, from aid to trade. We know the capability of the Cambodian people. We see it in the incredible economic growth that this country has enjoyed. We see it in the resilience of the people who have gone through so much over the generations. And, what we seek to do is to be catalytic and responsive to our partners objectives, but the ultimate objective is for a sovereign and independent Cambodia to make its own choices about how to deploy its own resources, including its tremendous human capital.

    QUESTION: Hello, good evening ma’am. And my name is Ko Ratha from the Cambodia-China Times, and we call in Khmer the CC-Times. And, I have some questions for you. I just would like to say, this is very busy trip to Cambodia. And my first question is, how do you think about the development in Cambodia? As you mentioned that this is your fourth trip to Cambodia. And the second one is, why Americans decided to support more aid to Cambodia? And the last one, what is your encouragement in order to use aid in the right way and now the U.S. purpose?

    ADMINISTRATOR POWER: Well, I have only been USAID Administrator now for more than three and a half years, let’s say, but one of the things that is wonderful about visiting Cambodia is to see the way in which previous investments by USAID and really from the American people, have produced such significant results here. 

    I gave the example of the elimination of malaria. The work done to eliminate malaria was done by Cambodians. It’s Cambodia that achieved, is on the verge, I should say, of achieving that very, very significant accomplishment. But USAID has been present over the last several decades in supporting that work. I mentioned in education that USAID has made investments in looking to see what forms of education are having the greatest impact with students. That’s a, you know, relatively small program, but that produced really valuable information, and now the Ministry of Education is using that information to inform its decisions about curriculum. 

    I think these are two really important examples of how this assistance can flow. It starts with respecting the judgment and the priorities of the Cambodian people. One of the things about USAID that is not well known, and even that I was not aware of before I came to USAID, is that three quarters of our staff in the countries in which we work are nationals of the countries in which we work. So, here, of course, that means that the vast majority of our staff here in Cambodia are Cambodians who live in their communities – who listen to their neighbors, who understand the importance of making health progress, and also understand the importance of fighting corruption, and ensuring that political reform and economic development go hand in hand. 

    So, I think that is our posture going forward – as we have been present in the country in some form since just after the Paris Peace Agreements, since 1993-1994 – we have learned a lot, and the people from whom we have learned the most are the Cambodian people. So, I think our presence here is not about, you know, geopolitical competition, it is about advancing the dignity, prosperity, and peace for Cambodians. 

    QUESTION: I wanted to follow up on the aid that was rescinded and then reinstated last year after the election, which the State Department called the Cambodian election last year, neither free nor fair, and then $18 million U.S. aid was withheld. Then that decision was reversed two months later. The U.S. Embassy told Cambodian news at the time that the aid was reinstated to, “encourage the new government to live up to its stated intentions to be more open and democratic.” So, a year later, I just wanted to follow up and ask, do you think it worked?

    ADMINISTRATOR POWER: Well, first, I think it’s important to discuss the aid itself, and I don’t need to repeat what we’ve already discussed here today, but when we invest $12 million in demining, that means fewer kids are going to run into unexploded ordinances. When we invest in moving diagnostic equipment that does X-rays of the lungs, that means fewer people are going to carry TB without knowing it. And, when we invest after COVID-19 and the horrible toll that that took here, not only on human health, but on the economy. When we invest in lab equipment and surveillance to prevent future global health security threats, that’s a really important investment in Cambodia’s health and stability, but also in America’s health. Every investment in global health security that we make internationally ultimately benefits us all, since we are connected. 

    So, I think that there absolutely is an effort to engage the government that has been now in office for 14 months, and to raise concerns about individuals who have, in some cases, exposed challenges in Cambodia that the Cambodian people benefit from seeing exposed like the scamming centers, like corruption, like human rights abuse by police or others. 

    We over this last or really over these last decades, but including with the new government, have made investments in labor organizing, in independent media, in these civil society organizations. At the same time, we have pressed these issues through our development diplomacy. 

    I don’t think that the United States, anywhere in the world, gives up on its efforts to promote human rights, to stress the linkage between economic progress and checks and balances, and again, the protection and promotion of human rights. And, of course, there are issues of concern, just as there were when the pause was put in place. 

    But, our programming resources do not go to the government. They go to non-governmental organizations. They go to the very organizations that, in many cases, are holding government accountable. In health, of course, goes to community based organizations that, yes, work alongside the Ministry of Health, but it is really important to take note that our assistance is to the people of this country, and that assistance, as we examine it, if it is advancing dignity, advancing checks and balances, it’s important to sustain those investments over time. 

    MIL OSI USA News

  • MIL-OSI USA: The United States Announces New Programs and more than $38 Million in Additional Funding for Cambodia

    Source: USAID

    Today in Phnom Penh, Administrator Samantha Power announced new investments and support for the Cambodian people through a range of new and expanded U.S. activities in food security, the environment, civil society, media, and labor. Cambodia remains an essential partner to the United States as we work to achieve a shared vision for a free and open, prosperous, and secure Indo-Pacific region. 

    As part of the U.S. government’s commitment to strengthening agriculture and food systems, Administrator Power highlighted a new Food for Progress award of more than $29 million from the U.S. Department of Agriculture. This funding will help Cambodia improve implementation and development of food safety regulations by improving post-harvest handling of soybean meal, increasing adoption of climate smart technologies, providing training on best food safety practices, and strengthening market linkages. Under the Mekong-US Partnership, USAID will also support new efforts to conserve the rich biodiversity of the lower Mekong River basin, which is home to more than 1,000 species of fish but increasingly threatened by the effects of climate change and infrastructure development. Underscoring the strong U.S. commitment to protecting biodiversity, USAID will extend and expand for the next five years its work with the government and local communities in Cambodia to conserve and sustain the wonders of the Mekong, as well as work with other countries of the lower Basin. 

    In a meeting with members of Cambodian civil society, Administrator Power also announced more than $6 million in new USAID funding for civil society, media, and labor in support of Cambodia’s constitutional commitments to democratic rule, respect for human rights, and support for civil society. Additionally, Administrator Power announced $3 million in funding from the U.S. Department of Labor to increase collaboration and partnerships between and among persons with disabilities. This funding will help address the prevalence of child labor, forced labor, and human trafficking among persons with disabilities and reduce barriers that impede their access to decent work. USAID will also continue to support Cambodian returnees from the United States as they reintegrate into Cambodian society and establish stable, constructive, and independent lives. 

    MIL OSI USA News

  • MIL-OSI: South Plains Financial, Inc. Reports Third Quarter 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    LUBBOCK, Texas, Oct. 23, 2024 (GLOBE NEWSWIRE) — South Plains Financial, Inc. (NASDAQ:SPFI) (“South Plains” or the “Company”), the parent company of City Bank (“City Bank” or the “Bank”), today reported its financial results for the quarter ended September 30, 2024.

    Third Quarter 2024 Highlights

    • Net income for the third quarter of 2024 was $11.2 million, compared to $11.1 million for the second quarter of 2024 and $13.5 million for the third quarter of 2023.
    • Diluted earnings per share for the third quarter of 2024 was $0.66, compared to $0.66 for the second quarter of 2024 and $0.78 for the third quarter of 2023.
    • Average cost of deposits for the third quarter of 2024 was 247 basis points, compared to 243 basis points for the second quarter of 2024 and 207 basis points for the third quarter of 2023.
    • Net interest margin, calculated on a tax-equivalent basis, was 3.65% for the third quarter of 2024, compared to 3.63% for the second quarter of 2024 and 3.52% for the third quarter of 2023.
    • Nonperforming assets to total assets were 0.59% at September 30, 2024, compared to 0.57% at June 30, 2024 and 0.12% at September 30, 2023.
    • Return on average assets for the third quarter of 2024 was 1.05% annualized, compared to 1.07% annualized for the second quarter of 2024 and 1.27% annualized for the third quarter of 2023.
    • Tangible book value (non-GAAP) per share was $25.75 as of September 30, 2024, compared to $24.15 as of June 30, 2024 and $21.07 as of September 30, 2023.
    • The consolidated total risk-based capital ratio, Common Equity Tier 1 risk-based capital ratio, and Tier 1 leverage ratio at September 30, 2024 were 17.61%, 13.25%, and 11.76%, respectively. These ratios significantly exceeded the minimum regulatory levels necessary to be deemed “well-capitalized”.

    Curtis Griffith, South Plains’ Chairman and Chief Executive Officer, commented, “I’m pleased with our third quarter results, which I believe demonstrate that the Bank is performing at a high level. We remain well capitalized and focused on managing our loan portfolio as the credit environment continues to normalize. Against this backdrop, we are maintaining our credit discipline and not stretching to chase loan growth. We are also building liquidity as we expect the Federal Reserve to continue reducing their market interest rate to stimulate economic growth looking to the year ahead. Importantly, we are seeing a level of optimism from our customers that we have not seen over the last seven to eight quarters and our new business production pipeline is the strongest that it has been in more than two years. Looking forward, we remain confident in the credit profile of our loan portfolio and are cautiously optimistic that we will see loan growth accelerate in the quarters ahead. Additionally, we are beginning to see deposit cost pressures ease, which we expect will be supportive of our net interest margin as well as continued deposit growth.”

    Results of Operations, Quarter Ended September 30, 2024

    Net Interest Income

    Net interest income was $37.3 million for the third quarter of 2024, compared to $35.9 million for the second quarter of 2024 and $35.7 million for the third quarter of 2023. Net interest margin, calculated on a tax-equivalent basis, was 3.65% for the third quarter of 2024, compared to 3.63% for the second quarter of 2024 and 3.52% for the third quarter of 2023. The average yield on loans was 6.68% for the third quarter of 2024, compared to 6.60% for the second quarter of 2024 and 6.10% for the third quarter of 2023. The average cost of deposits was 247 basis points for the third quarter of 2024, which is 4 basis points higher than the second quarter of 2024 and 40 basis points higher than the third quarter of 2023.

    Interest income was $61.6 million for the third quarter of 2024, compared to $59.2 million for the second quarter of 2024 and $56.5 million for the third quarter of 2023. Interest income increased $2.4 million in the third quarter of 2024 from the second quarter of 2024, which was primarily comprised of an increase of $934 thousand in loan interest income and an increase of $1.5 million in interest income on other interest-earning assets. The growth in loan interest income was due to a rise of 8 basis points in the yield on loans, partially offset by a decrease in average loans of $12.7 million. The increase in interest income on other interest-earning assets was predominately a result of increased liquidity from growth in deposits and a net decrease in loans during the third quarter. Interest income increased $5.1 million in the third quarter of 2024 compared to the third quarter of 2023. This increase was primarily due to an increase of average loans of $64.2 million and higher market interest rates during the period, resulting in growth of $5.3 million in loan interest income.

    Interest expense was $24.3 million for the third quarter of 2024, compared to $23.3 million for the second quarter of 2024 and $20.8 million for the third quarter of 2023. Interest expense increased $1.0 million compared to the second quarter of 2024 and increased $3.5 million compared to the third quarter of 2023. The $1.0 million increase was primarily as a result of growth in average interest-bearing deposits of $64.4 million. The $3.5 million increase was primarily as a result of growth in average interest-bearing deposits of $111.2 million and a 43 basis point increase in the cost of interest-bearing liabilities.

    Noninterest Income and Noninterest Expense

    Noninterest income was $10.6 million for the third quarter of 2024, compared to $12.7 million for the second quarter of 2024 and $12.3 million for the third quarter of 2023. The decrease from the second quarter of 2024 was primarily due to a decrease of $1.5 million in mortgage banking revenues, mainly from a decrease of $1.4 million in the fair value adjustment of the mortgage servicing rights assets as interest rates that affect the value declined in the third quarter of 2024. Additionally, there was a decrease of $750 thousand in bank card services and interchange revenue mainly as a result of incentives received during the second quarter of 2024 and a decrease of $315 thousand in income from investments in Small Business Investment Companies. The decrease in noninterest income for the third quarter of 2024 as compared to the third quarter of 2023 was primarily due to a decrease of $2.7 million in mortgage banking activities revenue mainly from a decline of $2.7 million in the fair value adjustment of the mortgage servicing rights assets as interest rates that affect the value declined in the third quarter of 2024. Further, there was approximately $700 thousand in insurance proceeds received for property damage in the third quarter of 2024, which affected other noninterest income in both period comparisons.

    Noninterest expense was $33.1 million for the third quarter of 2024, compared to $32.6 million for the second quarter of 2024 and $31.5 million for the third quarter of 2023. The $556 thousand increase from the second quarter of 2024 was largely the result of a rise of $226 thousand in net occupancy expenses, primarily from increased utilities, growth of $155 thousand in marketing and development expenses, and smaller increases in other noninterest expenses – including operational and fraud losses, losses on disposal of fixed assets, settlements, and charitable donations. These increases were partially offset by a decrease of $432 thousand in personnel costs as there was an additional $350 thousand in accrued expense in the second quarter related to incentive-based compensation. The increase in noninterest expense for the third quarter of 2024 as compared to the third quarter of 2023 was largely the result of an increase of $274 thousand in IT and data services related to the Company’s cloud project, an increase of $247 thousand in professional services mainly from legal expenses, and smaller increases in other noninterest expenses – including losses on disposal of fixed assets, settlements, and charitable donations.

    Loan Portfolio and Composition

    Loans held for investment were $3.04 billion as of September 30, 2024, compared to $3.09 billion as of June 30, 2024 and $2.99 billion as of September 30, 2023. The $56.9 million, or 1.8%, decrease during the third quarter of 2024 as compared to the second quarter of 2024 occurred primarily as a result of the expected payoff of a $16 million short-term bridge note that was originated in the second quarter of 2024, the early payoff of a $17 million residential land development loan, and an $18 million decrease in consumer auto loans. As of September 30, 2024, loans held for investment increased $43.8 million, or 1.5%, from September 30, 2023, primarily attributable to strong organic loan growth, occurring mainly in multi-family property loans, direct-energy loans, and single-family property loans, partially offset by decreases in consumer auto loans and construction, land, and development loans.

    Deposits and Borrowings

    Deposits totaled $3.72 billion as of September 30, 2024, compared to $3.62 billion as of June 30, 2024 and $3.62 billion as of September 30, 2023. Deposits increased by $94.8 million, or 2.6%, in the third quarter of 2024 from June 30, 2024. As of September 30, 2024, deposits increased $98.7 million, or 2.7%, from September 30, 2023. Noninterest-bearing deposits were $998.5 million as of September 30, 2024, compared to $951.6 million as of June 30, 2024 and $1.05 billion as of September 30, 2023. Noninterest-bearing deposits represented 26.9% of total deposits as of September 30, 2024. The quarterly change in total deposits was mainly due to organic growth in both noninterest-bearing and interest-bearing deposits. The year-over-year increase in total deposits was primarily the result of organic growth in interest-bearing deposits, given the overall focus in the banking industry on improving liquidity, partially offset by a decline in noninterest-bearing deposits.

    Asset Quality

    The Company recorded a provision for credit losses in the third quarter of 2024 of $495 thousand, compared to $1.8 million in the second quarter of 2024 and a negative provision of $700 thousand in the third quarter of 2023. The provision during the third quarter of 2024 was largely attributable to net charge-off activity, partially offset by decreased loan balances.

    The ratio of allowance for credit losses to loans held for investment was 1.41% as of September 30, 2024, compared to 1.40% as of June 30, 2024 and 1.41% as of September 30, 2023.

    The ratio of nonperforming assets to total assets was 0.59% as of September 30, 2024, compared to 0.57% as of June 30, 2024 and 0.12% as of September 30, 2023. The previously disclosed $20.0 million multi-family property credit, which was placed on nonaccrual status in the second quarter of 2024 after the maturity date was accelerated, was subsequently modified during the third quarter. The modification included more stringent credit metrics. Although the loan remains in nonaccrual status, the loan continues to pay as agreed and is showing improving credit trends. Annualized net charge-offs were 0.11% for the third quarter of 2024, compared to 0.10% for the second quarter of 2024 and 0.05% for the third quarter of 2023.

    Capital

    Book value per share increased to $27.04 at September 30, 2024, compared to $25.45 at June 30, 2024. The change was primarily driven by $8.9 million of net income after dividends paid and an increase in accumulated other comprehensive income (“AOCI”) of $16.6 million. The increase in AOCI was attributed to the after-tax increase in fair value of our available for sale securities, net of fair value hedges, as a result of decreases in long-term market interest rates during the period. Tangible common equity to tangible assets (non-GAAP) increased 33 basis points to 9.77% in the third quarter of 2024.

    Conference Call

    South Plains will host a conference call to discuss its third quarter 2024 financial results today, October 23, 2024, at 5:00 p.m., Eastern Time. Investors and analysts interested in participating in the call are invited to dial 1-877-407-9716 (international callers please dial 1-201-493-6779) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call and conference materials will be available on the Company’s website at https://www.spfi.bank/news-events/events.

    A replay of the conference call will be available within two hours of the conclusion of the call and can be accessed on the investor section of the Company’s website as well as by dialing 1-844-512-2921 (international callers please dial 1-412-317-6671). The pin to access the telephone replay is 13749147. The replay will be available until November 6, 2024.

    About South Plains Financial, Inc.

    South Plains is the bank holding company for City Bank, a Texas state-chartered bank headquartered in Lubbock, Texas. City Bank is one of the largest independent banks in West Texas and has additional banking operations in the Dallas, El Paso, Greater Houston, the Permian Basin, and College Station, Texas markets, and the Ruidoso, New Mexico market. South Plains provides a wide range of commercial and consumer financial services to small and medium-sized businesses and individuals in its market areas. Its principal business activities include commercial and retail banking, along with investment, trust and mortgage services. Please visit https://www.spfi.bank for more information.

    Non-GAAP Financial Measures

    Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets, and Pre-Tax, Pre-Provision Income. The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures.

    We classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies.

    A reconciliation of non-GAAP financial measures to GAAP financial measures is provided at the end of this press release.

    Available Information

    The Company routinely posts important information for investors on its web site (under www.spfi.bank and, more specifically, under the News & Events tab at www.spfi.bank/news-events/press-releases). The Company intends to use its web site as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD (Fair Disclosure) promulgated by the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, investors should monitor the Company’s web site, in addition to following the Company’s press releases, SEC filings, public conference calls, presentations and webcasts.

    The information contained on, or that may be accessed through, the Company’s web site is not incorporated by reference into, and is not a part of, this document.

    Forward Looking Statements

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect South Plains’ current views with respect to future events and South Plains’ financial performance. Any statements about South Plains’ expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. South Plains cautions that the forward-looking statements in this press release are based largely on South Plains’ expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond South Plains’ control. Factors that could cause such changes include, but are not limited to, the impact on us and our customers of a decline in general economic conditions and any regulatory responses thereto; potential recession in the United States and our market areas; the impacts related to or resulting from bank failures and any continuation of uncertainty in the banking industry, including the associated impact to the Company and other financial institutions of any regulatory changes or other mitigation efforts taken by government agencies in response thereto; increased competition for deposits in our market areas and related changes in deposit customer behavior; the impact of changes in market interest rates, whether due to the current elevated interest rate environment or future reductions in interest rates and a resulting decline in net interest income; the resurgence of elevated levels of inflation or inflationary pressures, in the United States and our market areas; the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; increases in unemployment rates in the United States and our market areas; declines in commercial real estate values and prices; uncertainty regarding United States fiscal debt, deficit and budget matters; cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks; severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events; the impact of changes in U.S. presidential administrations or Congress; competition and market expansion opportunities; changes in non-interest expenditures or in the anticipated benefits of such expenditures; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; potential increased regulatory requirements and costs related to the transition and physical impacts of climate change; current or future litigation, regulatory examinations or other legal and/or regulatory actions; and changes in applicable laws and regulations. Additional information regarding these risks and uncertainties to which South Plains’ business and future financial performance are subject is contained in South Plains’ most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the SEC, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of such documents, and other documents South Plains files or furnishes with the SEC from time to time, which are available on the SEC’s website, www.sec.gov. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements due to additional risks and uncertainties of which South Plains is not currently aware or which it does not currently view as, but in the future may become, material to its business or operating results. Due to these and other possible uncertainties and risks, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized and readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Any forward-looking statements presented herein are made only as of the date of this press release, and South Plains does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, new information, the occurrence of unanticipated events, or otherwise, except as required by applicable law. All forward-looking statements, express or implied, included in the press release are qualified in their entirety by this cautionary statement.

    Contact: Mikella Newsom, Chief Risk Officer and Secretary
      (866) 771-3347
      investors@city.bank
       

    Source: South Plains Financial, Inc.

     
    South Plains Financial, Inc.
    Consolidated Financial Highlights – (Unaudited)
    (Dollars in thousands, except share data)
     
      As of and for the quarter ended
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Selected Income Statement Data:                            
    Interest income $ 61,640     $ 59,208     $ 58,727     $ 57,236     $ 56,528  
    Interest expense   24,346       23,320       23,359       22,074       20,839  
    Net interest income   37,294       35,888       35,368       35,162       35,689  
    Provision for credit losses   495       1,775       830       600       (700 )
    Noninterest income   10,635       12,709       11,409       9,146       12,277  
    Noninterest expense   33,128       32,572       31,930       30,597       31,489  
    Income tax expense   3,094       3,116       3,143       2,787       3,683  
    Net income   11,212       11,134       10,874       10,324       13,494  
    Per Share Data (Common Stock):                            
    Net earnings, basic $ 0.68     $ 0.68     $ 0.66     $ 0.63     $ 0.80  
    Net earnings, diluted   0.66       0.66       0.64       0.61       0.78  
    Cash dividends declared and paid   0.14       0.14       0.13       0.13       0.13  
    Book value   27.04       25.45       24.87       24.80       22.39  
    Tangible book value (non-GAAP)   25.75       24.15       23.56       23.47       21.07  
    Weighted average shares outstanding, basic   16,386,079       16,425,360       16,429,919       16,443,908       16,842,594  
    Weighted average shares outstanding, dilutive   17,056,959       16,932,077       16,938,857       17,008,892       17,354,182  
    Shares outstanding at end of period   16,386,627       16,424,021       16,431,755       16,417,099       16,600,442  
    Selected Period End Balance Sheet Data:                            
    Cash and cash equivalents $ 471,167     $ 298,006     $ 371,939     $ 330,158     $ 352,424  
    Investment securities   606,889       591,031       599,869       622,762       584,969  
    Total loans held for investment   3,037,375       3,094,273       3,011,799       3,014,153       2,993,563  
    Allowance for credit losses   42,886       43,173       42,174       42,356       42,075  
    Total assets   4,337,659       4,220,936       4,218,993       4,204,793       4,186,440  
    Interest-bearing deposits   2,720,880       2,672,948       2,664,397       2,651,952       2,574,361  
    Noninterest-bearing deposits   998,480       951,565       974,174       974,201       1,046,253  
    Total deposits   3,719,360       3,624,513       3,638,571       3,626,153       3,620,614  
    Borrowings   110,307       110,261       110,214       110,168       122,493  
    Total stockholders’ equity   443,122       417,985       408,712       407,114       371,716  
    Summary Performance Ratios:                            
    Return on average assets (annualized)   1.05 %     1.07 %     1.04 %     0.99 %     1.27 %
    Return on average equity (annualized)   10.36 %     10.83 %     10.72 %     10.52 %     14.01 %
    Net interest margin (1)   3.65 %     3.63 %     3.56 %     3.52 %     3.52 %
    Yield on loans   6.68 %     6.60 %     6.53 %     6.29 %     6.10 %
    Cost of interest-bearing deposits   3.36 %     3.33 %     3.27 %     3.14 %     2.93 %
    Efficiency ratio   68.80 %     66.72 %     67.94 %     68.71 %     65.34 %
    Summary Credit Quality Data:                            
    Nonperforming loans $ 24,693     $ 23,452     $ 3,380     $ 5,178     $ 4,783  
    Nonperforming loans to total loans held for investment   0.81 %     0.76 %     0.11 %     0.17 %     0.16 %
    Other real estate owned   973       755       862       912       242  
    Nonperforming assets to total assets   0.59 %     0.57 %     0.10 %     0.14 %     0.12 %
    Allowance for credit losses to total loans held for investment   1.41 %     1.40 %     1.40 %     1.41 %     1.41 %
    Net charge-offs to average loans outstanding (annualized)   0.11 %     0.10 %     0.13 %     0.08 %     0.05 %
                                           
      As of and for the quarter ended
      September 30
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Capital Ratios:                            
    Total stockholders’ equity to total assets   10.22 %     9.90 %     9.69 %     9.68 %     8.88 %
    Tangible common equity to tangible assets (non-GAAP)   9.77 %     9.44 %     9.22 %     9.21 %     8.40 %
    Common equity tier 1 to risk-weighted assets   13.25 %     12.61 %     12.67 %     12.41 %     12.19 %
    Tier 1 capital to average assets   11.76 %     11.81 %     11.51 %     11.33 %     11.13 %
    Total capital to risk-weighted assets   17.61 %     16.86 %     17.00 %     16.74 %     16.82 %

    (1)   Net interest margin is calculated as the annual net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.

     
    South Plains Financial, Inc.
    Average Balances and Yields – (Unaudited)
    (Dollars in thousands)
     
      For the Three Months Ended
      September 30, 2024   September 30, 2023
           
      Average
    Balance
      Interest   Yield/Rate   Average
    Balance
      Interest   Yield/Rate
    Assets                                  
    Loans $ 3,069,900   $ 51,513     6.68 %   $ 3,005,699   $ 46,250     6.10 %
    Debt securities – taxable   524,641     5,300     4.02 %     561,068     5,422     3.83 %
    Debt securities – nontaxable   154,806     1,016     2.61 %     159,577     1,054     2.62 %
    Other interest-bearing assets   336,887     4,032     4.76 %     325,201     4,031     4.92 %
                                       
    Total interest-earning assets   4,086,234     61,861     6.02 %     4,051,545     56,757     5.56 %
    Noninterest-earning assets   172,922                 177,216            
                                       
    Total assets $ 4,259,156               $ 4,228,761            
                                       
    Liabilities & stockholders’ equity                                  
    NOW, Savings, MMDA’s $ 2,247,299     18,143     3.21 %   $ 2,223,014     16,061     2.87 %
    Time deposits   431,307     4,510     4.16 %     344,395     2,904     3.35 %
    Short-term borrowings   3         0.00 %     3         0.00 %
    Notes payable & other long-term borrowings           0.00 %             0.00 %
    Subordinated debt   63,891     835     5.20 %     76,077     1,012     5.28 %
    Junior subordinated deferrable interest debentures   46,393     858     7.36 %     46,393     862     7.37 %
                                       
    Total interest-bearing liabilities   2,788,893     24,346     3.47 %     2,689,882     20,839     3.07 %
    Demand deposits   976,048                 1,071,175            
    Other liabilities   63,661                 85,713            
    Stockholders’ equity   430,554                 381,991            
                                       
    Total liabilities & stockholders’ equity $ 4,259,156               $ 4,228,761            
                                       
    Net interest income       $ 37,515               $ 35,918      
    Net interest margin (2)               3.65 %                 3.52 %
                                           

    (1)   Average loan balances include nonaccrual loans and loans held for sale.
    (2)   Net interest margin is calculated as the annualized net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.

     
    South Plains Financial, Inc.
    Average Balances and Yields – (Unaudited)
    (Dollars in thousands)
     
      For the Nine Months Ended
      September 30, 2024   September 30, 2023
                           
      Average
    Balance
      Interest   Yield/Rate   Average
    Balance
      Interest   Yield/Rate
    Assets                                  
    Loans $ 3,055,679   $ 151,031     6.60 %   $ 2,892,887   $ 128,724     5.95 %
    Debt securities – taxable   537,425     16,096     4.00 %     574,159     16,027     3.73 %
    Debt securities – nontaxable   155,489     3,062     2.63 %     194,492     3,870     2.66 %
    Other interest-bearing assets   287,192     10,052     4.68 %     212,384     7,010     4.41 %
                                       
    Total interest-earning assets   4,035,785     180,241     5.97 %     3,873,922     155,631     5.37 %
    Noninterest-earning assets   176,230                 183,149            
                                       
    Total assets $ 4,212,015               $ 4,057,071            
                                       
    Liabilities & stockholders’ equity                                  
    NOW, Savings, MMDA’s $ 2,251,569     53,792     3.19 %   $ 2,090,250     38,529     2.46 %
    Time deposits   399,646     12,153     4.06 %     309,250     6,239     2.70 %
    Short-term borrowings   3         0.00 %     111     5     6.02 %
    Notes payable & other long-term borrowings           0.00 %             0.00 %
    Subordinated debt   63,845     2,505     5.24 %     76,031     3,037     5.34 %
    Junior subordinated deferrable interest debentures   46,393     2,575     7.41 %     46,393     2,402     6.92 %
                                       
    Total interest-bearing liabilities   2,761,456     71,025     3.44 %     2,522,035     50,212     2.66 %
    Demand deposits   964,829                 1,085,345            
    Other liabilities   68,458                 74,865            
    Stockholders’ equity   417,272                 374,826            
                                       
    Total liabilities & stockholders’ equity $ 4,212,015               $ 4,057,071            
                                       
    Net interest income       $ 109,216               $ 105,419      
    Net interest margin (2)               3.61 %                 3.64 %
                                           

    (1)   Average loan balances include nonaccrual loans and loans held for sale.
    (2)   Net interest margin is calculated as the annualized net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.

     
    South Plains Financial, Inc.
    Consolidated Balance Sheets
    (Unaudited)
    (Dollars in thousands)
     
      As of
      September 30,
    2024
      December 31,
    2023
               
    Assets          
    Cash and due from banks $ 60,863     $ 62,821  
    Interest-bearing deposits in banks   410,304       267,337  
    Securities available for sale   606,889       622,762  
    Loans held for sale   11,389       14,499  
    Loans held for investment   3,037,375       3,014,153  
    Less:  Allowance for credit losses   (42,886 )     (42,356 )
    Net loans held for investment   2,994,489       2,971,797  
    Premises and equipment, net   53,323       55,070  
    Goodwill   19,315       19,315  
    Intangible assets   1,882       2,429  
    Mortgage servicing rights   24,573       26,569  
    Other assets   154,632       162,194  
    Total assets $ 4,337,659     $ 4,204,793  
               
    Liabilities and Stockholders’ Equity          
    Noninterest-bearing deposits $ 998,480     $ 974,201  
    Interest-bearing deposits   2,720,880       2,651,952  
    Total deposits   3,719,360       3,626,153  
    Subordinated debt   63,914       63,775  
    Junior subordinated deferrable interest debentures   46,393       46,393  
    Other liabilities   64,870       61,358  
    Total liabilities   3,894,537       3,797,679  
    Stockholders’ Equity          
    Common stock   16,386       16,417  
    Additional paid-in capital   97,367       97,107  
    Retained earnings   371,782       345,264  
    Accumulated other comprehensive income (loss)   (42,413 )     (51,674 )
    Total stockholders’ equity   443,122       407,114  
    Total liabilities and stockholders’ equity $ 4,337,659     $ 4,204,793  
     
    South Plains Financial, Inc.
    Consolidated Statements of Income
    (Unaudited)
    (Dollars in thousands)
     
      Three Months Ended   Nine Months Ended
      September 30,
    2024
      September 30,
    2023
      September 30,
    2024
      September 30,
    2023
                           
    Interest income:                      
    Loans, including fees $ 51,505   $ 46,242     $ 151,008   $ 128,703
    Other   10,135     10,286       28,567     26,094
    Total interest income   61,640     56,528       179,575     154,797
    Interest expense:                      
    Deposits   22,653     18,965       65,945     44,768
    Subordinated debt   835     1,012       2,505     3,037
    Junior subordinated deferrable interest debentures   858     862       2,575     2,402
    Other                 5
    Total interest expense   24,346     20,839       71,025     50,212
    Net interest income   37,294     35,689       108,550     104,585
    Provision for credit losses   495     (700 )     3,100     4,010
    Net interest income after provision for credit losses   36,799     36,389       105,450     100,575
    Noninterest income:                      
    Service charges on deposits   2,023     1,840       5,785     5,286
    Income from insurance activities   28     30       92     1,478
    Mortgage banking activities   1,890     4,602       9,232     12,146
    Bank card services and interchange fees   3,302     3,157       10,415     10,156
    Gain on sale of subsidiary       290           33,778
    Other   3,392     2,358       9,229     7,236
    Total noninterest income   10,635     12,277       34,753     70,080
    Noninterest expense:                      
    Salaries and employee benefits   18,767     18,709       56,954     61,400
    Net occupancy expense   4,255     4,111       12,204     12,246
    Professional services   1,807     1,560       5,028     4,924
    Marketing and development   1,015     853       2,629     2,573
    Other   7,284     6,256       20,815     23,206
    Total noninterest expense   33,128     31,489       97,630     104,349
    Income before income taxes   14,306     17,177       42,573     66,306
    Income tax expense   3,094     3,683       9,353     13,885
    Net income $ 11,212   $ 13,494     $ 33,220   $ 52,421
     
    South Plains Financial, Inc.
    Loan Composition
    (Unaudited)
    (Dollars in thousands)
     
      As of
      September 30,
    2024
      December 31,
    2023
               
    Loans:          
    Commercial Real Estate $ 1,120,448   $ 1,081,056
    Commercial – Specialized   406,255     372,376
    Commercial – General   526,448     517,361
    Consumer:          
    1-4 Family Residential   562,401     534,731
    Auto Loans   253,509     305,271
    Other Consumer   65,789     74,168
    Construction   102,525     129,190
    Total loans held for investment $ 3,037,375   $ 3,014,153
     
    South Plains Financial, Inc.
    Deposit Composition
    (Unaudited)
    (Dollars in thousands)
     
      As of
      September 30,
    2024
      December 31,
    2023
               
    Deposits:          
    Noninterest-bearing deposits $ 998,480   $ 974,201
    NOW & other transaction accounts   496,176     562,066
    MMDA & other savings   1,780,337     1,722,170
    Time deposits   444,367     367,716
    Total deposits $ 3,719,360   $ 3,626,153
     
    South Plains Financial, Inc.
    Reconciliation of Non-GAAP Financial Measures (Unaudited)
    (Dollars in thousands)
     
      For the quarter ended
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Pre-tax, pre-provision income                                    
    Net income $ 11,212     $ 11,134     $ 10,874     $ 10,324     $ 13,494  
    Income tax expense   3,094       3,116       3,143       2,787       3,683  
    Provision for credit losses   495       1,775       830       600       (700 )
    Pre-tax, pre-provision income $ 14,801     $ 16,025     $ 14,847     $ 13,711     $ 16,477  
    Efficiency Ratio                            
    Noninterest expense $ 33,128     $ 32,572     $ 31,930     $ 30,597     $ 31,489  
                                 
    Net interest income   37,294       35,888       35,368       35,162       35,689  
    Tax equivalent yield adjustment   221       223       223       225       229  
    Noninterest income   10,635       12,709       11,409       9,146       12,277  
    Total income   48,150       48,820       47,000       44,533       48,195  
                                 
    Efficiency ratio   68.80 %     66.72 %     67.94 %     68.71 %     65.34 %
                                 
    Noninterest expense $ 33,128     $ 32,572     $ 31,930     $ 30,597     $ 31,489  
    Less: Subsidiary transaction and related expenses                            
    Less:  net loss on sale of securities                            
    Adjusted noninterest expense   33,128       32,572       31,930       30,597       31,489  
                                 
    Total income   48,150       48,820       47,000       44,533       48,195  
    Less:  gain on sale of subsidiary                           (290 )
    Adjusted total income   48,150       48,820       47,000       44,533       47,905  
                                 
    Adjusted efficiency ratio   68.80 %     66.72 %     67.94 %     68.71 %     65.73 %
      As of
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Tangible common equity                            
    Total common stockholders’ equity $ 443,122     $ 417,985     $ 408,712     $ 407,114     $ 371,716  
    Less:  goodwill and other intangibles   (21,197 )     (21,379 )     (21,562 )     (21,744 )     (21,936 )
                                 
    Tangible common equity $ 421,925     $ 396,606     $ 387,150     $ 385,370     $ 349,780  
                                 
    Tangible assets                            
    Total assets $ 4,337,659     $ 4,220,936     $ 4,218,993     $ 4,204,793     $ 4,186,440  
    Less:  goodwill and other intangibles   (21,197 )     (21,379 )     (21,562 )     (21,744 )     (21,936 )
                                 
    Tangible assets $ 4,316,462     $ 4,199,557     $ 4,197,431     $ 4,183,049     $ 4,164,504  
                                 
    Shares outstanding   16,386,627       16,424,021       16,431,755       16,417,099       16,600,442  
                                 
    Total stockholders’ equity to total assets   10.22 %     9.90 %     9.69 %     9.68 %     8.88 %
    Tangible common equity to tangible assets   9.77 %     9.44 %     9.22 %     9.21 %     8.40 %
    Book value per share $ 27.04     $ 25.45     $ 24.87     $ 24.80     $ 22.39  
    Tangible book value per share $ 25.75     $ 24.15     $ 23.56     $ 23.47     $ 21.07  

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