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  • MIL-OSI: Eagle Bancorp, Inc. Announces Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    BETHESDA, Md., Oct. 23, 2024 (GLOBE NEWSWIRE) — Eagle Bancorp, Inc. (“Eagle”, the “Company”) (NASDAQ: EGBN), the Bethesda-based holding company for EagleBank, one of the largest community banks in the Washington D.C. area, reported its unaudited results for the third quarter ended September 30, 2024.

    Eagle reported net income of $21.8 million or $0.72 per share for the third quarter 2024, compared to a net loss of $83.8 million during the second quarter in which the Company recorded a $104.2 million impairment in the value of goodwill. Operating net income1 in the second quarter, adjusted to exclude the impairment charge on goodwill, was $20.4 million or $0.67 per share per diluted share. Pre-provision net revenue (“PPNR”)1 in the third quarter was $35.2 million compared to a pre-provision net loss of $69.8 million for the prior quarter, or $34.4 million of PPNR when adjusted to exclude the impairment charge on goodwill1.

    The $1.4 million increase in operating net income1 over the prior quarter is attributed to a positive variance of $2.2 million related to the change in provision for unfunded commitments; $1.6 million increase in non-interest income; and a $490 thousand increase in net interest income, offset by a $1.3 million increase in operating non-interest expense, adjusted to exclude the impairment charge on goodwill, and a $1.1 million increase in provision for credit losses.

    “We continue to strategically position the Company for future growth as evidenced by actions taken during the quarter with the refinancing of our maturing subordinated debt and the recalibration of our common dividend strategy,” said Susan G. Riel, President and Chief Executive Officer of the Company. “We announced the addition of Evelyn Lee to our senior leadership as our Chief Lending Officer for our commercial lending team. As a 25 year banker in the Washington D.C. market, I am excited about accomplishing our strategic goal of continuing to build out our commercial banker group and pursuing diversification of the loan portfolio and growing our relationship deposits,” added Ms. Riel.

    Eric R. Newell, Chief Financial Officer of the Company said, “Raising senior debt in the third quarter demonstrates the confidence debt investors have in our vision and the future of the Company. Operating performance was stable from last quarter evidenced by operating net income1 increasing $1.4 million to $21.8 million in the third quarter. We continued to build our reserve for credit losses, with coverage as a percentage of total held for investment loans at 1.40% increasing 7 basis points from last quarter. Common equity tier one capital increased to 14.5% and our tangible common equity1 ratio exceeds 10%.”

    Ms. Riel added, “I thank all of our employees for their hard work and their commitment to a culture of respect, diversity and inclusion in both the workplace and the communities we serve.”

    Third Quarter 2024 Highlights

    • The Company repaid $70 million of maturing subordinated debt and issued $77.7 million of 10% unsecured senior debt maturing September 30, 2029.
    • During the quarter, the Company announced a recalibration of the common stock dividend to $0.165 per share from $0.45 per share in the second quarter an action estimated to retain an additional $32 million of capital annually to meet growth and investment objectives.
    • The ACL as a percentage of total loans held for investment was 1.40% at quarter-end; up from 1.33% at the prior quarter-end. Performing office coverage2 was 4.55% at quarter-end; as compared to 4.05% at the prior quarter-end.
    • Nonperforming assets increased $38.2 million to $137.1 million as of September 30, 2024 and were 1.22% of total assets compared to 0.88% as of June 30, 2024. Inflows to non-performing loans in the quarter totaled $45.5 million offset by $9 million of outflows, of which $5 million was the loan held for sale at June 30, 2024 and an increase of other real estate owned of $2.0 million. The inflows were predominantly associated with $27.3 million in mixed use land loans and $17.9 million in an assisted living facility loan.
    • Substandard loans declined $17.0 million to $391.3 million and special mention loans increased $57.1 million to $365.0 million at September 30, 2024.
    • Net charge-offs for the third quarter were 0.26% compared to 0.11% for the second quarter 2024. Of the total $5.3 million of net charge offs in the quarter, $3.8 million is associated with a senior living property that has not stabilized.
    • The net interest margin (“NIM”) decreased slightly to 2.37% for the third quarter 2024, compared to 2.40% for the prior quarter, primarily due to continued decline in average non-interest bearing deposits. Net interest income increased $490 thousand from the second quarter to $71.8 million in the third quarter.
    • At quarter-end, the common equity ratio, tangible common equity ratio1, and common equity tier 1 capital (to risk-weighted assets) ratio were 10.86%, 10.86%, and 14.54%, respectively.
    • Total estimated insured deposits at quarter-end were $6.4 billion, or 74.5% of deposits, stable from the second quarter total of 72.5% of deposits.
    • Total on-balance sheet liquidity and available capacity was $4.6 billion at quarter-end compared to $4.0 billion at June 30, 2024.

    Income Statement

    • Net interest income was $71.8 million for the third quarter 2024, compared to $71.4 million for the prior quarter. The increase in net interest income was primarily driven by an increase in the average balances of deposits held with other banks and average loans partially offset by higher average interest-bearing deposits and higher rates paid on those deposits in the third quarter from the prior quarter.
    • Provision for credit losses was $10.1 million for the third quarter 2024, compared to $9.0 million for the prior quarter. The increase in the provision quarter over quarter reflects higher net charge-offs in the third quarter from the prior quarter. Reserve for unfunded commitments was a reversal of $1.6 million due to lower unfunded commitments in our construction portfolio. This compared to a reserve for unfunded commitments in the prior quarter of $0.6 million.
    • Noninterest income was $6.95 million for the third quarter 2024, compared to $5.33 million for the prior quarter. The primary driver for the increase was higher swap fee income.
    • Noninterest expense was $43.6 million for the third quarter 2024, compared to $146.5 million for the prior quarter. The decrease over the comparative quarters was primarily due to a goodwill impairment charge of $104.2 million in the second quarter 2024. When excluding the goodwill impairment charge, the increase quarter over quarter was associated with increased FDIC insurance expense.

    Loans and Funding

    • Total loans were $8.0 billion at September 30, 2024, down 0.4% from the prior quarter-end. The decrease in total loans was driven by a reduction in commercial loans and income producing commercial real estate loans from the prior quarter-end, partially offset by increased fundings of ongoing construction projects for commercial and residential properties.

      At September 30, 2024, income-producing commercial real estate loans secured by office properties other than owner-occupied properties were 10.8% of the total loan portfolio, down from 11.3% at the prior quarter-end.

    • Total deposits at quarter-end were $8.5 billion, up $273.5 million, or 3.3%, from the prior quarter-end. The increase was primarily attributable to an increase in time deposits from the company’s digital acquisition channel. Period end deposits have increased $165 million when compared to prior year comparable period end of September 30, 2023.
    • Other short-term borrowings were $1.2 billion at September 30, 2024, down 25.3% from the prior quarter-end as maturing FHLB borrowings were paid down with increased cash from deposits.

    Asset Quality

    • Allowance for credit losses was 1.40% of total loans held for investment at September 30, 2024, compared to 1.33% at the prior quarter-end. Performing office coverage was 4.55% at quarter-end; as compared to 4.05% at the prior quarter-end.
    • Net charge-offs were $5.3 million for the quarter compared to $2.3 million in the second quarter of 2024.
    • Nonperforming assets were $137.1 million at September 30, 2024.
      • NPAs as a percentage of assets were 1.22% at September 30, 2024, compared to 0.88% at the prior quarter-end. At September 30, 2024, other real estate owned consisted of four properties with an aggregate carrying value of $2.7 million. The increase in NPAs was predominantly associated with $27.3 million in mixed use land loans and $17.9 million in an assisted living facility loan.
      • Loans 30-89 days past due were $56.3 million at September 30, 2024, compared to $8.4 million at the prior quarter-end. Of the total increase, $25 million was brought current subsequent to quarter-end.

    Capital

    • Total shareholders’ equity was $1.2 billion at September 30, 2024, up 4.8% from the prior quarter-end. The increase in shareholders’ equity of $56.0 million was primarily due to increased valuations of available-for-sale securities and an increase in retained earnings.
    • Book value per share and Tangible book value per share3 was $40.61, up $1.86 from the prior quarter-end.

    Additional financial information: The financial information that follows provides more detail on the Company’s financial performance for the three months ended September 30, 2024 as compared to the three months ended June 30, 2024 and September 30, 2023, as well as eight quarters of trend data. Persons wishing additional information should refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and other reports filed with the SEC.

    About Eagle Bancorp: The Company is the holding company for EagleBank, which commenced operations in 1998. The Bank is headquartered in Bethesda, Maryland, and operates through twelve banking offices and four lending offices located in Suburban Maryland, Washington, D.C. and Northern Virginia. The Company focuses on building relationships with businesses, professionals and individuals in its marketplace, and is committed to a culture of respect, diversity, equity and inclusion in both its workplace and the communities in which it operates.

    Conference call: Eagle Bancorp will host a conference call to discuss its third quarter 2024 financial results on Thursday, October 24, 2024 at 10:00 a.m. Eastern Time.

    The listen-only webcast can be accessed at:

    • https://edge.media-server.com/mmc/p/79xpxyi2
    • For analysts who wish to participate in the conference call, please register at the following URL:

      https://register.vevent.com/register/BI6cdce3c45a9f49219ea94a6f7c9fa083

    • A replay of the conference call will be available on the Company’s website through November 7, 2024: https://www.eaglebankcorp.com/

    Forward-looking statements: This press release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or results of Company operations and policies and regarding general economic conditions. In some cases, forward-looking statements can be identified by use of words such as “may,” “will,” “can,” “anticipates,” “believes,” “expects,” “plans,” “estimates,” “potential,” “continue,” “should,” “could,” “strive,” “feel” and similar words or phrases. These statements are based upon current and anticipated economic conditions, nationally and in the Company’s market (including volatility in interest rates and interest rate policy; the current inflationary environment; competitive factors) and other conditions (such as the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks), which by their nature are not susceptible to accurate forecast and are subject to significant uncertainty. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results in the future may differ materially from those indicated herein. For details on factors that could affect these expectations, see the risk factors and other cautionary language included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and in other periodic and current reports filed with the SEC. Readers are cautioned against placing undue reliance on any such forward-looking statements. The Company’s past results are not necessarily indicative of future performance, and nothing contained herein is meant to or should be considered and treated as earnings guidance of future quarters’ performance projections. All information is as of the date of this press release. Any forward-looking statements made by or on behalf of the Company speak only as to the date they are made. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.

    Eagle Bancorp, Inc.
    Consolidated Statements of Operations (Unaudited)
    (Dollars in thousands, except per share data)
               
      Three Months Ended
      September 30,   June 30,   September 30,
        2024       2024       2023  
    Interest Income          
    Interest and fees on loans $ 139,836     $ 137,616     $ 132,273  
    Interest and dividends on investment securities   12,578       12,405       13,732  
    Interest on balances with other banks and short-term investments   21,296       19,568       15,067  
    Interest on federal funds sold   103       142       77  
    Total interest income   173,813       169,731       161,149  
    Interest Expense          
    Interest on deposits   81,190       76,846       70,929  
    Interest on customer repurchase agreements   332       330       311  
    Interest on other short-term borrowings   20,448       21,202       18,152  
    Interest on long-term borrowings $ —       —       1,038  
    Total interest expense   101,970       98,378       90,430  
    Net Interest Income   71,843       71,353       70,719  
    Provision for Credit Losses   10,094       8,959       5,644  
    Provision (Reversal) for Credit Losses for Unfunded Commitments   (1,593 )     608       (839 )
    Net Interest Income After Provision for Credit Losses   63,342       61,786       65,914  
               
    Noninterest Income          
    Service charges on deposits   1,747       1,653       1,631  
    Gain on sale of loans   20       37       (5 )
    Net gain on sale of investment securities   3       3       5  
    Increase in cash surrender value of bank-owned life insurance   731       709       669  
    Other income   4,450       2,930       4,047  
    Total noninterest income   6,951       5,332       6,347  
    Noninterest Expense          
    Salaries and employee benefits   21,675       21,770       21,549  
    Premises and equipment expenses   2,794       2,894       3,095  
    Marketing and advertising   1,588       1,662       768  
    Data processing   3,435       3,495       3,194  
    Legal, accounting and professional fees   3,433       2,705       2,162  
    FDIC insurance   7,399       5,917       3,342  
    Goodwill impairment   —       104,168       —  
    Other expenses   3,290       3,880       3,523  
    Total noninterest expense   43,614       146,491       37,633  
    (Loss) Income Before Income Tax Expense   26,679       (79,373 )     34,628  
    Income Tax Expense   4,864       4,429       7,245  
    Net (Loss) Income $ 21,815     $ (83,802 )   $ 27,383  
               
    (Loss) Earnings Per Common Share          
    Basic $ 0.72     $ (2.78 )   $ 0.91  
    Diluted $ 0.72     $ (2.78 )   $ 0.91  
                           

            

    Eagle Bancorp, Inc.
    Consolidated Balance Sheets (Unaudited)
    (Dollars in thousands, except per share data)
      September 30,   June 30,   September 30,
        2024       2024       2023  
    Assets          
    Cash and due from banks $ 16,383     $ 10,803     $ 8,625  
    Federal funds sold   9,610       5,802       13,611  
    Interest-bearing deposits with banks and other short-term investments   584,491       526,228       235,819  
    Investment securities available-for-sale at fair value (amortized cost of $1,550,038, $1,613,659, and $1,732,722, respectively, and allowance for credit losses of $17, $17 and $17, respectively)   1,433,006       1,584,435       1,474,945  
    Investment securities held-to-maturity at amortized cost, net of allowance for credit losses of $1,237, $2,012 and $2,010, respectively (fair value of $868,425, $856,275 and $923,313, respectively)   961,925       982,955       1,032,485  
    Federal Reserve and Federal Home Loan Bank stock   37,728       54,274       25,689  
    Loans held for sale   —       5,000       —  
    Loans   7,970,269       8,001,739       7,916,391  
    Less: allowance for credit losses   (111,867 )     (106,301 )     (83,332 )
    Loans, net   7,858,402       7,895,438       7,833,059  
    Premises and equipment, net   8,291       8,788       11,216  
    Operating lease right-of-use assets   15,167       16,250       20,151  
    Deferred income taxes   74,381       86,236       98,987  
    Bank-owned life insurance   115,064       114,333       112,234  
    Goodwill and intangible assets, net   21       129       105,239  
    Other real estate owned   2,743       773       1,487  
    Other assets   167,840       174,396       190,667  
    Total Assets $ 11,285,052     $ 11,465,840     $ 11,164,214  
    Liabilities and Shareholders’ Equity          
    Liabilities          
    Deposits:          
    Noninterest-bearing demand $ 1,609,823     $ 1,693,955     $ 2,072,665  
    Interest-bearing transaction   903,300       1,123,980       932,779  
    Savings and money market   3,316,819       3,165,314       3,129,773  
    Time deposits   2,710,908       2,284,099       2,241,089  
    Total deposits   8,540,850       8,267,348       8,376,306  
    Customer repurchase agreements   32,040       39,220       25,689  
    Other short-term borrowings   1,240,000       1,659,979       1,300,001  
    Long-term borrowings   75,812       —       69,887  
    Operating lease liabilities   18,755       20,016       24,422  
    Reserve for unfunded commitments   5,060       6,653       6,183  
    Other liabilities   147,111       139,348       145,842  
    Total Liabilities   10,059,628       10,132,564       9,948,330  
    Shareholders’ Equity          
    Common stock, par value $0.01 per share; shares authorized 100,000,000, shares issued and outstanding 30,173,200 30,180,482, and 30,185,732, respectively   298       297       296  
    Additional paid-in capital   382,284       380,142       372,394  
    Retained earnings   967,019       949,863       1,054,699  
    Accumulated other comprehensive loss   (124,177 )     (160,843 )     (211,505 )
    Total Shareholders’ Equity   1,225,424       1,169,459       1,215,884  
    Total Liabilities and Shareholders’ Equity $ 11,285,052     $ 11,302,023     $ 11,164,214  
                           

     

    Loan Mix and Asset Quality
    (Dollars in thousands)
     
      September 30,   June 30,   September 30,
        2024       2024       2023  
      Amount %   Amount %   Amount %
    Loan Balances – Period End:                
    Commercial $ 1,154,349     14 %   $ 1,238,261     15 %   $ 1,418,760     18 %
    PPP loans   348     — %     407     — %     588     — %
    Income producing – commercial real estate   4,155,120     52 %     4,217,525     53 %     4,147,301     52 %
    Owner occupied – commercial real estate   1,276,240     16 %     1,263,714     16 %     1,182,959     15 %
    Real estate mortgage – residential   57,223     1 %     61,338     1 %     76,511     1 %
    Construction – commercial and residential   1,174,591     15 %     1,063,764     13 %     904,282     11 %
    Construction – C&I (owner occupied)   100,662     1 %     99,526     1 %     129,616     2 %
    Home equity   51,567     1 %     52,773     1 %     53,917     1 %
    Other consumer   169     — %     4,431     — %     2,457     — %
    Total loans $ 7,970,269     100 %   $ 8,001,739     100 %   $ 7,916,391     100 %
                                             
      Three Months Ended or As Of
      September 30,   June 30,   September 30,
        2024       2024       2023  
    Asset Quality:          
    Net charge-offs $ 5,303     $ 2,285     $ 340  
    Nonperforming loans $ 134,371     $ 98,169     $ 70,148  
    Other real estate owned $ 2,743     $ 773     $ 1,757  
    Nonperforming assets $ 137,114     $ 98,942     $ 71,905  
    Special mention $ 364,983     $ 307,906     $ 158,182  
    Substandard $ 391,301     $ 408,311     $ 219,001  
                           
    Eagle Bancorp, Inc.
    Consolidated Average Balances, Interest Yields And Rates vs. Prior Quarter (Unaudited)
    (Dollars in thousands)
                           
      Three Months Ended
      September 30, 2024   June 30, 2024
      Average Balance   Interest   Average
    Yield/Rate    		   Average Balance   Interest   Average
    Yield/Rate
    ASSETS                      
    Interest earning assets:                      
    Interest-bearing deposits with other banks and other short-term investments $ 1,577,464     $ 21,296       5.37 %   $ 1,455,007     $ 19,568       5.41 %
    Loans held for sale (1)   4,936       1       0.08 %     8,045       100       5.00 %
    Loans (1) (2) $ 8,026,524       139,835       6.93 %     8,003,206       137,516       6.91 %
    Investment securities available-for-sale (2)   1,479,598       7,336       1.97 %     1,478,856       7,048       1.92 %
    Investment securities held-to-maturity (2)   974,366       5,242       2.14 %     995,274       5,357       2.16 %
    Federal funds sold   10,003       103       4.10 %     13,058       142       4.37 %
    Total interest earning assets   12,072,891     $ 173,813       5.73 %     11,953,446     $ 169,731       5.71 %
    Total noninterest earning assets   397,006               510,725          
    Less: allowance for credit losses   (108,998 )             (102,671 )        
    Total noninterest earning assets   288,008               408,054          
    TOTAL ASSETS $ 12,360,899             $ 12,361,500          
                           
    LIABILITIES AND SHAREHOLDERS’ EQUITY                    
    Interest bearing liabilities:                      
    Interest-bearing transaction $ 1,656,676     $ 14,596       3.51 %   $ 1,636,795     $ 16,100       3.96 %
    Savings and money market   3,254,128       34,896       4.27 %     3,321,001       33,451       4.05 %
    Time deposits   2,517,944       31,698       5.01 %     2,215,693       27,295       4.95 %
    Total interest bearing deposits   7,428,748       81,190       4.35 %     7,173,489       76,846       4.31 %
    Customer repurchase agreements   38,045       332       3.47 %     38,599       330       3.44 %
    Other short-term borrowings   1,615,867       20,448       5.03 %     1,682,684       21,202       5.07 %
    Long-term borrowings   824       —       — %     —       —       — %
    Total interest bearing liabilities   9,083,484     $ 101,970       4.47 %     8,894,772     $ 98,378       4.45 %
    Noninterest bearing liabilities:                      
    Noninterest bearing demand   1,915,666               2,051,777          
    Other liabilities   160,272               151,324          
    Total noninterest bearing liabilities   2,075,938               2,203,101          
    Shareholders’ equity   1,201,477               1,263,627          
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 12,360,899             $ 12,361,500          
    Net interest income     $ 71,843             $ 71,353      
    Net interest spread           1.26 %             1.26 %
    Net interest margin           2.37 %             2.40 %
    Cost of funds           3.69 %             3.61 %

    (1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $3.9 million and $4.8 million for the three months ended September 30, 2024 and June 30, 2024, respectively.
    (2) Interest and fees on loans and investments exclude tax equivalent adjustments.

    Eagle Bancorp, Inc.
    Consolidated Average Balances, Interest Yields And Rates vs. Year Ago Quarter (Unaudited)
    (Dollars in thousands)
                           
      Three Months Ended September 30,
        2024       2023  
      Average Balance   Interest   Average
    Yield/Rate    		   Average Balance   Interest   Average
    Yield/Rate
    ASSETS                      
    Interest earning assets:                      
    Interest bearing deposits with other banks and other short-term investments $ 1,577,464     $ 21,296       5.37 %   $ 1,127,451     $ 15,067       5.30 %
    Loans held for sale (1)   4,936       1       0.08 %     —       —       — %
    Loans (1) (2)   8,026,524       139,835       6.93 %     7,795,144       132,273       6.73 %
    Investment securities available-for-sale (2)   1,479,598       7,336       1.97 %     1,554,348       8,126       2.07 %
    Investment securities held-to-maturity (2)   974,366       5,242       2.14 %     1,047,515       5,606       2.12 %
    Federal funds sold   10,003       103       4.10 %     7,728       77       3.95 %
    Total interest earning assets   12,072,891     $ 173,813       5.73 %     11,532,186     $ 161,149       5.54 %
    Total noninterest earning assets   397,006               489,683          
    Less: allowance for credit losses   (108,998 )             (78,964 )        
    Total noninterest earning assets   288,008               410,719          
    TOTAL ASSETS $ 12,360,899             $ 11,942,905          
                           
    LIABILITIES AND SHAREHOLDERS’ EQUITY                    
    Interest bearing liabilities:                      
    Interest bearing transaction $ 1,656,676     $ 14,596       3.51 %   $ 1,421,522     $ 12,785       3.57 %
    Savings and money market   3,254,128       34,896       4.27 %     3,113,755       32,855       4.19 %
    Time deposits   2,517,944       31,698       5.01 %     2,162,582       25,289       4.64 %
    Total interest bearing deposits   7,428,748       81,190       4.35 %     6,697,859       70,929       4.20 %
    Customer repurchase agreements   38,045       332       3.47 %     36,082       311       3.42 %
    Other short-term borrowings   1,615,867       20,448       5.03 %     1,610,097       19,190       4.73 %
    Long-term borrowings   824       —       — %     —       —       — %
    Total interest bearing liabilities   9,083,484     $ 101,970       4.47 %     8,344,038     $ 90,430       4.30 %
    Noninterest bearing liabilities:                      
    Noninterest bearing demand   1,915,666               2,248,782          
    Other liabilities   160,272               114,923          
    Total noninterest bearing liabilities   2,075,938               2,363,705          
    Shareholders’ equity   1,201,477               1,235,162          
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 12,360,899             $ 11,942,905          
    Net interest income     $ 71,843             $ 70,719      
    Net interest spread           1.26 %             1.24 %
    Net interest margin           2.37 %             2.43 %
    Cost of funds           3.69 %             3.39 %

    (1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $3.9 million and $4.1 million for the three months ended September 30, 2024 and 2023, respectively.
    (2) Interest and fees on loans and investments exclude tax equivalent adjustments.

    Eagle Bancorp, Inc.
    Statements of Operations and Highlights Quarterly Trends (Unaudited)
    (Dollars in thousands, except per share data)
                                   
      Three Months Ended
      September 30,   June 30,   March 31,   December 31,   September 30,   June 30,   March 31,   December 31,
    Income Statements:   2024       2024       2024       2023       2023       2023       2023       2022  
    Total interest income $ 173,813     $ 169,731     $ 175,602     $ 167,421     $ 161,149     $ 156,510     $ 140,247     $ 129,130  
    Total interest expense   101,970       98,378       100,904       94,429       90,430       84,699       65,223       43,530  
    Net interest income   71,843       71,353       74,698       72,992       70,719       71,811       75,024       85,600  
    Provision (reversal) for credit losses   10,094       8,959       35,175       14,490       5,644       5,238       6,164       (464 )
    Provision (reversal) for credit losses for unfunded commitments   (1,593 )     608       456       (594 )     (839 )     318       848       161  
    Net interest income after provision for (reversal of) credit losses   63,342       61,786       39,067       59,096       65,914       66,255       68,012       85,903  
    Noninterest income before investment gain (loss)   6,948       5,329       3,585       2,891       6,342       8,593       3,721       5,326  
    Net gain (loss) on sale of investment securities   3       3       4       3       5       2       (21 )     3  
    Total noninterest income   6,951       5,332       3,589       2,894       6,347       8,595       3,700       5,329  
    Salaries and employee benefits   21,675       21,770       21,726       18,416       21,549       21,957       24,174       23,691  
    Premises and equipment expenses   2,794       2,894       3,059       2,967       3,095       3,227       3,317       3,292  
    Marketing and advertising   1,588       1,662       859       1,071       768       884       636       1,290  
    Goodwill impairment   —       104,168       —       —       —       —       —       —  
    Other expenses   17,557       15,997       14,353       14,644       12,221       11,910       12,457       10,645  
    Total noninterest expense   43,614       146,491       39,997       37,098       37,633       37,978       40,584       38,918  
    (Loss) income before income tax expense   26,679       (79,373 )     2,659       24,892       34,628       36,872       31,128       52,314  
    Income tax expense   4,864       4,429       2,997       4,667       7,245       8,180       6,894       10,121  
    Net (loss) income $ 21,815     $ (83,802 )   $ (338 )   $ 20,225     $ 27,383     $ 28,692     $ 24,234     $ 42,193  
    Per Share Data:                              
    (Loss) earnings per weighted average common share, basic $ 0.72     $ (2.78 )   $ (0.01 )   $ 0.68     $ 0.91     $ 0.94     $ 0.78     $ 1.32  
    (Loss) earnings per weighted average common share, diluted $ 0.72     $ (2.78 )   $ (0.01 )   $ 0.67     $ 0.91     $ 0.94     $ 0.78     $ 1.32  
    Weighted average common shares outstanding, basic   30,173,852       30,185,609       30,068,173       29,925,557       29,910,218       30,454,766       31,109,267       31,819,631  
    Weighted average common shares outstanding, diluted   30,241,699       30,185,609       30,068,173       29,966,962       29,944,692       30,505,468       31,180,346       31,898,619  
    Actual shares outstanding at period end   30,173,200       30,180,482       30,185,732       29,925,612       29,917,982       29,912,082       31,111,647       31,346,903  
    Book value per common share at period end $ 40.61     $ 38.75     $ 41.72     $ 42.58     $ 40.64     $ 40.78     $ 39.92     $ 39.18  
    Tangible book value per common share at period end (1) $ 40.61     $ 38.74     $ 38.26     $ 39.08     $ 37.12     $ 37.29     $ 36.57     $ 35.86  
    Dividend per common share $ 0.165     $ 0.45     $ 0.45     $ 0.45     $ 0.45     $ 0.45     $ 0.45     $ 0.45  
    Performance Ratios (annualized):                              
    Return on average assets   0.70 %     (2.73 )%     (0.01 )%     0.65 %     0.91 %     0.96 %     0.86 %     1.49 %
    Return on average common equity   7.22 %     (26.67 )%     (0.11 )%     6.48 %     8.80 %     9.24 %     7.92 %     13.57 %
    Return on average tangible common equity (1)   7.22 %     (28.96 )%     (0.11 )%     7.08 %     9.61 %     10.08 %     8.65 %     14.82 %
    Net interest margin   2.37 %     2.40 %     2.43 %     2.45 %     2.43 %     2.49 %     2.77 %     3.14 %
    Efficiency ratio (2)   55.4 %     191.0 %     51.1 %     48.9 %     48.8 %     47.2 %     51.6 %     42.8 %
    Other Ratios:                              
    Allowance for credit losses to total loans (3)   1.40 %     1.33 %     1.25 %     1.08 %     1.05 %     1.00 %     1.01 %     0.97 %
    Allowance for credit losses to total nonperforming loans   83 %     110 %     109 %     131 %     119 %     268 %     1,160 %     1,151 %
    Nonperforming assets to total assets   1.22 %     0.88 %     0.79 %     0.57 %     0.64 %     0.28 %     0.08 %     0.08 %
    Net charge-offs (recoveries) (annualized) to average total loans (3)   0.26 %     0.11 %     1.07 %     0.60 %     0.02 %     0.29 %     0.05 %     0.05 %
    Tier 1 capital (to average assets)   10.94 %     10.58 %     10.26 %     10.73 %     10.96 %     10.84 %     11.42 %     11.63 %
    Total capital (to risk weighted assets)   15.74 %     15.07 %     14.87 %     14.79 %     14.54 %     14.51 %     14.74 %     14.94 %
    Common equity tier 1 capital (to risk weighted assets)   14.54 %     13.92 %     13.80 %     13.90 %     13.68 %     13.55 %     13.75 %     14.03 %
    Tangible common equity ratio (1)   10.86 %     10.35 %     10.03 %     10.12 %     10.04 %     10.21 %     10.36 %     10.18 %
    Average Balances (in thousands):                              
    Total assets $ 12,360,899     $ 12,361,500     $ 12,784,470     $ 12,283,303     $ 11,942,905     $ 11,960,111     $ 11,426,056     $ 11,255,956  
    Total earning assets $ 12,072,891     $ 11,953,446     $ 12,365,497     $ 11,837,722     $ 11,532,186     $ 11,546,050     $ 11,004,817     $ 10,829,703  
    Total loans (3) $ 8,026,524     $ 8,003,206     $ 7,988,941     $ 7,963,074     $ 7,795,144     $ 7,790,555     $ 7,712,023     $ 7,379,198  
    Total deposits $ 9,344,414     $ 9,225,266     $ 9,501,661     $ 9,471,369     $ 8,946,641     $ 8,514,938     $ 8,734,125     $ 9,524,139  
    Total borrowings $ 1,654,736     $ 1,721,283     $ 1,832,947     $ 1,401,917     $ 1,646,179     $ 2,102,507     $ 1,359,463     $ 411,060  
    Total shareholders’ equity $ 1,201,477     $ 1,263,627     $ 1,289,656     $ 1,238,763     $ 1,235,162     $ 1,245,647     $ 1,240,978     $ 1,233,705  

    (1) A reconciliation of non-GAAP financial measures to the nearest GAAP measure is provided in the tables that accompany this document.
    (2) Computed by dividing noninterest expense by the sum of net interest income and noninterest income.
    (3) Excludes loans held for sale.

    GAAP Reconciliation to Non-GAAP Financial Measures (unaudited)
    (dollars in thousands, except per share data)
               
      September 30,   June 30,   September 30,
        2024       2024       2023  
    Tangible common equity          
    Common shareholders’ equity $ 1,225,424     $ 1,169,459     $ 1,215,884  
    Less: Intangible assets   (21 )     (129 )     (105,239 )
    Tangible common equity $ 1,225,403     $ 1,169,330     $ 1,110,645  
               
    Tangible common equity ratio          
    Total assets $ 11,285,052     $ 11,302,023     $ 11,164,214  
    Less: Intangible assets   (21 )     (129 )     (105,239 )
    Tangible assets $ 11,285,031     $ 11,301,894     $ 11,058,975  
               
    Tangible common equity ratio   10.86 %     10.35 %     10.04 %
               
    Per share calculations          
    Book value per common share $ 40.61     $ 38.75     $ 40.64  
    Less: Intangible book value per common share   —       (0.01 )     (3.52 )
    Tangible book value per common share $ 40.61     $ 38.74     $ 37.12  
               
    Shares outstanding at period end   30,173,200       30,180,482       29,917,982  
                           
        Three Months Ended
        September 30,   June 30,   September 30,
          2024       2024       2023  
    Average tangible common equity            
    Average common shareholders’ equity   $ 1,201,477     $ 1,263,627     $ 1,235,162  
    Less: Average intangible assets     (24 )     (99,827 )     (104,639 )
    Average tangible common equity   $ 1,201,453     $ 1,163,800     $ 1,130,523  
                 
    Return on average tangible common equity            
    Net (loss) income   $ 21,815     $ (83,802 )   $ 27,383  
    Return on average tangible common equity     7.22 %   (28.96)%     9.61 %
                 
    Net (loss) income   $ 21,815     $ (83,802 )   $ 27,383  
    Add back of goodwill impairment   $ —       104,168       —  
    Operating net (loss) income (Non-GAAP)     21,815       20,366       27,383  
    Operating Return on average tangible common equity (Non-GAAP)     7.22 %     7.04 %     9.61 %
                 
    Efficiency ratio            
    Net interest income   $ 71,843     $ 71,353     $ 70,719  
    Noninterest income     6,951       5,332       6,347  
    Operating revenue   $ 78,794     $ 76,685     $ 77,066  
    Noninterest expense   $ 43,614     $ 146,491     $ 37,633  
    Add back of goodwill impairment     —       (104,168 )     —  
    Operating Noninterest expense (Non-GAAP)     43,614       42,323       37,633  
                 
    Efficiency ratio     55.35 %     191.03 %     48.83 %
    Operating Efficiency ratio (Non-GAAP)     55.35 %     55.19 %     48.83 %
                 
    Pre-provision net revenue            
    Net interest income   $ 71,843     $ 71,353     $ 70,719  
    Noninterest income     6,951       5,332       6,347  
    Less: Noninterest expense     (43,614 )     (146,491 )     (37,633 )
    Pre-provision net revenue   $ 35,180     $ (69,806 )   $ 39,433  
                 
    Pre-provision net revenue   $ 35,180     $ (69,806 )   $ 39,433  
    Add back of goodwill impairment   $ —     $ 104,168     $ —  
    Operating Pre-provision net revenue (Non-GAAP)   $ 35,180     $ 34,362     $ 39,433  
                 

    Tangible common equity, tangible common equity to tangible assets (the “tangible common equity ratio”), tangible book value per common share, average tangible common equity, annualized return on average tangible common equity, and the operating annualized return on average tangible common equity are non-GAAP financial measures derived from GAAP based amounts. The Company calculates the tangible common equity ratio by excluding the balance of intangible assets from common shareholders’ equity, or tangible common equity, and dividing by tangible assets. The Company calculates tangible book value per common share by dividing tangible common equity by common shares outstanding, as compared to book value per common share, which the Company calculates by dividing common shareholders’ equity by common shares outstanding. The Company calculates the annualized return on average tangible common equity ratio by dividing net income available to common shareholders by average tangible common equity, which is calculated by excluding the average balance of intangible assets from the average common shareholders’ equity. The Company calculates the operating annualized return on average tangible common equity ratio by dividing operating net income available to common shareholders, which adds back the goodwill impairment, by average tangible common equity, which is calculated by excluding the average balance of intangible assets from the average common shareholders’ equity. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company. Further related to other measures, tangible equity is a measure that is consistent with the calculation of capital for bank regulatory purposes, which excludes intangible assets from the calculation of risk based ratios, and as such is useful for investors, regulators, management and others to evaluate capital adequacy and to compare against other financial institutions.

    The efficiency ratio is a non-GAAP measure calculated by dividing GAAP noninterest expense by the sum of GAAP net interest income and GAAP noninterest income. The efficiency ratio measures a bank’s overhead as a percentage of its revenue. The Company believes that reporting the non-GAAP efficiency ratio more closely measures its effectiveness of controlling operational activities. Further, the operating efficiency ratio is measured by dividing non-GAAP noninterest expense, which excludes the goodwill impairment, by the sum of GAAP net interest income and GAAP noninterest income. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company.

    Pre-provision net revenue is a non-GAAP financial measure calculated by subtracting noninterest expenses from the sum of net interest income and noninterest income. The Company considers this information important to shareholders because it illustrates revenue excluding the impact of provisions and reversals to the allowance for credit losses on loans. Operating pre-provision net revenue is a non-GAAP financial measure calculated by subtracting noninterest expenses with the impact of the goodwill impairment added back from the sum of net interest income and noninterest income. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company.

        Three Months Ended
        September 30,   June 30,   September 30,
          2024       2024       2023  
    Net (loss) income   $ 21,815     $ (83,802 )   $ 27,383  
    Add back of goodwill impairment     —       104,168       —  
    Operating Net (loss) income (Non-GAAP)   $ 21,815     $ 20,366     $ 27,383  
                 
    (Loss) earnings per share (diluted)4   $ 0.72     $ (2.78 )   $ 0.91  
    Add back of goodwill impairment per share (diluted)     —       3.45       —  
    Operating earnings (loss) per share (diluted) (Non-GAAP)   $ 0.72     $ 0.67     $ 0.91  
                 

    Operating net (loss) income and operating (loss) earnings per share (diluted) are non-GAAP financial measures derived from GAAP based amounts. The Company calculates operating net (loss) income by excluding from net (loss) income the one-time goodwill impairment of $104.2 million. During the second quarter of 2024, the Company performed an annual impairment test as a result of management’s evaluation of current economic conditions, and concluded that goodwill had become impaired, which resulted in an impairment charge of $104.2 million to reduce the carrying value of the Company’s goodwill to zero. The Company calculates operating earnings (loss) per share (diluted) by dividing the one-time goodwill impairment of $104.2 million by the weighted average shares outstanding (diluted) for the three and six months ended June 30, 2024. The Company considers this information important to shareholders because operating net (loss) income and operating (loss) earnings per share (diluted) provides investors insight into how Company earnings changed exclusive of the impairment charge to allow investors to better compare the Company’s performance against historical periods. The table above provides a reconciliation of operating net income (loss) and operating earnings (loss) per share (diluted) to the nearest GAAP measure.

    _______________
    1     A reconciliation of non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP Reconciliation to Non-GAAP Financial Measure that accompany this document.
    2 Calculated as the ACL attributable to loans collateralized by performing office properties as a percentage of total loans.
    3 A reconciliation of non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP Reconciliation to Non-GAAP Financial Measure that accompany this document.
    4 For periods ended with a net loss, anti-dilutive financial instruments have been excluded from the calculation of GAAP diluted EPS. Operating diluted EPS calculations include the impact of outstanding equity-based awards for all periods.

    EAGLE BANCORP, INC.
    CONTACT:
    Eric R. Newell
    240.497.1796

    For the September 30, 2024 Earnings Presentation, click http://ml.globenewswire.com/Resource/Download/d55e221f-6ef9-45bd-8784-011bf19dce58

    The MIL Network –

  • MIL-OSI: Horizon Bancorp, Inc. Reports Third Quarter 2024 Results, Including EPS of $0.41 and Continued Profitability Improvement, as well as Accretive Balance Sheet Initiatives

    Source: GlobeNewswire (MIL-OSI)

    MICHIGAN CITY, Ind., Oct. 23, 2024 (GLOBE NEWSWIRE) — (NASDAQ GS: HBNC) – Horizon Bancorp, Inc. (“Horizon” or the “Company”), the parent company of Horizon Bank (the “Bank”), announced its unaudited financial results for the three and nine months ended September 30, 2024.

    Net income for the three months ended September 30, 2024 was $18.2 million, or $0.41 per diluted share, compared to net income of $14.1 million, or $0.32, for the second quarter of 2024 and compared to net income of $16.2 million, or $0.37 per diluted share, for the third quarter of 2023.

    Net income for the nine months ended September 30, 2024 was $46.3 million, or $1.05 per diluted share, compared to net income of $53.2 million, or $1.21, for the nine months ended September 30, 2023.

    Third Quarter 2024 Highlights

    • Net interest income increased for the fourth consecutive quarter to $46.9 million, compared to $45.3 million in the linked quarter of 2024. Net interest margin, on a fully taxable equivalent (“FTE”) basis1, expanded for the fourth consecutive quarter to 2.66%, compared to 2.64% in the linked quarter of 2024.
    • Total loans held for investment (“HFI”) were $4.8 billion at September 30, 2024, relatively unchanged from June 30, 2024 balances. However, consistent with the Company’s stated growth strategy, the commercial portfolio showed continued organic growth momentum during the quarter, which was offset with planned run-off of lower-yielding indirect auto loans in the consumer loan portfolio. 
    • Positive deposit growth of 1.7% during the quarter, to $5.7 billion at period end. The quarter was highlighted by stable non-interest bearing deposit balances and growth in core relationship consumer and commercial portfolios. 
    • Credit quality remains strong, with annualized net charge offs of 0.03% of average loans during the third quarter. Non-performing assets to total assets of 0.32% remains well within expected ranges, with no material change in the loss outlook. Provision for loan losses of $1.0 million reflects continued positive credit performance.

    “Horizon continues to execute well on its key strategic initiatives of consistently improving our operating performance through a more productive balance sheet, growth in non-interest income and continued disciplined in our operating model. As a result, we are optimistic on the positive momentum of the franchise through year-end 2024 and into 2025. During the quarter, our commercial team was able to deliver another quarter of quality loan growth, even coming off a strong end to the second quarter. The strength of Horizon’s core deposit franchise showed solid performance, and our credit metrics remain well managed. These efforts led to a third consecutive quarter of sequential growth in pre-tax pre-provision income,” President and Chief Executive Officer Thomas M. Prame said. “Importantly, we continue our efforts to optimize our business model, and are pleased to announce the repositioning of a portion of our securities portfolio and the intended sale of our mortgage warehouse business during the fourth quarter. These shareholder accretive actions are expected to yield sustainable improvement in the profitability of our business that will be evident in the fourth quarter, and positively impact Horizon’s financial performance in 2025.”

    _________________________
    1     Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

    Accretive Fourth Quarter 2024 Strategic Actions

    Horizon announced strategic actions taking place in the fourth quarter of 2024, which are designed to simplify its business, strengthen the balance sheet and improve long-term structural profitability. In October, the Company completed the repositioning of about $325 million of available-for-sale securities. Additionally, the Company has signed a letter of intent to sell its mortgage warehouse business, which is expected to generate a gain-on-sale. Details on these actions, the use of proceeds, and the expected financial impact are available in the Company’s third quarter 2024 investor presentation published at investor.horizonbank.com.

     
    Financial Highlights
    (Dollars in Thousands Except Share and Per Share Data and Ratios, Unaudited)
      Three Months Ended
      September 30,   June 30,   March 31,   December 31,   September 30,
      2024   2024   2024   2023   2023
    Income statement:                  
    Net interest income $ 46,910     $ 45,279     $ 43,288     $ 42,257     $ 42,090  
    Credit loss expense   1,044       2,369       805       1,274       263  
    Non-interest income   11,511       10,485       9,929       (20,449 )     11,830  
    Non-interest expense   39,272       37,522       37,107       39,330       36,168  
    Income tax expense   (75 )     1,733       1,314       6,419       1,284  
    Net income $ 18,180     $ 14,140     $ 13,991     $ (25,215 )   $ 16,205  
                       
    Per share data:                  
    Basic earnings per share $ 0.42     $ 0.32     $ 0.32     $ (0.58 )   $ 0.37  
    Diluted earnings per share   0.41       0.32       0.32       (0.58 )     0.37  
    Cash dividends declared per common share   0.16       0.16       0.16       0.16       0.16  
    Book value per common share   17.27       16.62       16.49       16.47       15.89  
    Market value – high   16.57       12.74       14.44       14.65       12.68  
    Market value – low   11.89       11.29       11.75       9.33       9.90  
    Weighted average shares outstanding – Basic   43,712,059       43,712,059       43,663,610       43,649,585       43,646,609  
    Weighted average shares outstanding – Diluted   44,112,321       43,987,187       43,874,036       43,649,585       43,796,069  
    Common shares outstanding (end of period)   43,712,059       43,712,059       43,726,380       43,652,063       43,648,501  
                       
    Key ratios:                  
    Return on average assets   0.92 %     0.73 %     0.72 %   (1.27)        %     0.81 %
    Return on average stockholders’ equity   9.80       7.83       7.76       (14.23 )     8.99  
    Total equity to total assets   9.52       9.18       9.18       9.06       8.71  
    Total loans to deposit ratio   83.92       85.70       82.78       78.01       76.52  
    Allowance for credit losses to HFI loans   1.10       1.08       1.09       1.13       1.14  
    Annualized net charge-offs of average total loans(1)   0.03       0.05       0.04       0.07       0.07  
    Efficiency ratio   67.22       67.29       69.73       180.35       67.08  
                       
    Key metrics (Non-GAAP)(2):                  
    Net FTE interest margin   2.66 %     2.64 %     2.50 %     2.43 %     2.41 %
    Return on average tangible common equity   12.65       10.18       10.11       (18.76 )     11.79  
    Tangible common equity to tangible assets   7.58       7.22       7.20       7.08       6.72  
    Tangible book value per common share $ 13.46     $ 12.80     $ 12.65     $ 12.60     $ 12.00  
                       
                       
    (1) Average total loans includes loans held for investment and held for sale.
    (2) Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.
     

    Income Statement Highlights

    Net Interest Income

    Net interest income was $46.9 million in the third quarter of 2024, compared to $45.3 million in the second quarter of 2024, driven by net growth in average interest earning assets of $117.5 million and continued net FTE interest margin expansion during the quarter. Horizon’s net FTE interest margin1 was 2.66% for the third quarter of 2024, compared to 2.64% for the second quarter of 2024, attributable to the favorable mix shift in average interest earning assets toward higher-yielding loans and in the average funding mix toward lower-cost deposit balances. Interest accretion from the fair value of acquired loans did not contribute significantly to the third quarter net interest income, or net FTE interest margin.

    Provision for Credit Losses

    During the third quarter of 2024, the Company recorded a provision for credit losses of $1.0 million. This compares to a provision for credit losses of $2.4 million during the second quarter of 2024, and $0.3 million during the third quarter of 2023. The decrease in the provision for credit losses during the third quarter of 2024 when compared with the second quarter of 2024 was primarily attributable to less total loan growth in the current quarter relative to the prior quarter.

    For the third quarter of 2024, the allowance for credit losses included net charge-offs of $0.4 million, or an annualized 0.03% of average loans outstanding, compared to net charge-offs of $0.6 million, or an annualized 0.05% of average loans outstanding for the second quarter of 2024, and net charge-offs of $0.7 million, or an annualized 0.07% of average loans outstanding, in the third quarter of 2023.

    The Company’s allowance for credit losses as a percentage of period-end loans HFI was 1.10% at September 30, 2024, compared to 1.08% at June 30, 2024 and 1.14% at September 30, 2023.

    Non-Interest Income

    For the Quarter Ended September 30,   June 30,   March 31,   December 31,   September 30,
    (Dollars in Thousands) 2024
    		   2024
    		   2024
    		   2023   2023
    Non-interest Income                  
    Service charges on deposit accounts $ 3,320     $ 3,130     $ 3,214     $ 3,092     $ 3,086  
    Wire transfer fees   123       113       101       103       120  
    Interchange fees   3,511       3,826       3,109       3,224       3,186  
    Fiduciary activities   1,394       1,372       1,315       1,352       1,206  
    Gains (losses) on sale of investment securities   —       —       —       (31,572 )     —  
    Gain on sale of mortgage loans   1,622       896       626       951       1,582  
    Mortgage servicing income net of impairment   412       450       439       724       631  
    Increase in cash value of bank owned life insurance   349       318       298       658       1,055  
    Other income   780       380       827       1,019       964  
    Total non-interest income $ 11,511     $ 10,485     $ 9,929     $ (20,449 )   $ 11,830  
                                           

    Total non-interest income was $11.5 million in the third quarter of 2024, compared to $10.5 million in the second quarter of 2024, due primarily to higher realized gains on sale of mortgage loans and increased other income.

    _________________________
    1     Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

    Non-Interest Expense

    For the Quarter Ended September 30,   June 30,   March 31,   December 31,   September 30,
    (Dollars in Thousands) 2024
    		   2024
    		   2024
    		   2023
    		   2023
    Non-interest Expense                  
    Salaries and employee benefits $ 21,829     $ 20,583     $ 20,268     $ 21,877     $ 20,058  
    Net occupancy expenses   3,207       3,192       3,546       3,260       3,283  
    Data processing   2,977       2,579       2,464       2,942       2,999  
    Professional fees   676       714       607       772       707  
    Outside services and consultants   3,677       3,058       3,359       2,394       2,316  
    Loan expense   1,034       1,038       719       1,345       1,120  
    FDIC insurance expense   1,204       1,315       1,320       1,200       1,300  
    Core deposit intangible amortization   844       844       872       903       903  
    Other losses   297       515       16       508       188  
    Other expense   3,527       3,684       3,936       4,129       3,294  
    Total non-interest expense $ 39,272     $ 37,522     $ 37,107     $ 39,330     $ 36,168  
                                           

    Total non-interest expense was $39.3 million in the third quarter of 2024, compared with $37.5 million in the second quarter of 2024. The increase in non-interest expense during the third quarter of 2024 was primarily driven by a $1.2 million increase in salaries and employee benefits expense, which is partially attributable to a legacy benefits program expense, and a $0.6 million increase in outside services and consultants expense related to strategic initiatives.

    Income Taxes

    Horizon’s effective tax rate was -0.4% for the third quarter of 2024, as compared to 10.9% for the second quarter of 2024. The decrease in the effective tax rate during the third quarter was primarily due to an increase in net realizable tax credits for the current year, which reduced the Company’s estimated annual effective tax rate.

    Balance Sheet

    Total assets increased by $14.9 million, or 0.2%, to $7.93 billion as of September 30, 2024, from $7.91 billion as of June 30, 2024. The increase in total assets is primarily due to increases in federal funds sold of $79.5 million, or 230.6%, to $113.9 million as of September 30, 2024, compared to $34.5 million as of June 30, 2024. The increase in federal funds sold during the period was partially offset by a decrease in other assets of $46.6 million, or 28.1%, to $119.0 million as of September 30, 2024, from $165.7 million as of June 30, 2024.

    Total investment securities remained unchanged, at $2.4 billion as of September 30, 2024, compared to June 30, 2024, as the positive market impact to available for sale securities was offset by normal pay-downs and maturities. There were no purchases of investment securities during the third quarter of 2024.

    Total loans HFI and loans held for sale were relatively consistent at $4.8 billion as of September 30, 2024 compared to $4.8 billion as of June 30, 2024, as growth in commercial loans of $9.5 million were offset by a decline in consumer loans of $43.3 million.

    Total deposit balances increased by $96.9 million, or 1.7%, to $5.7 billion as of September 30, 2024 when compared to balances as of June 30, 2024. Non-interest bearing deposit balances were essentially unchanged during the quarter.

    Total borrowings decreased by $86.4 million, or 7.0%, to $1.1 billion as of September 30, 2024, primarily related to the repayment of a portion of Federal Home Loan Bank advances, when compared to balances as of June 30, 2024.

    Capital

    The following table presents the consolidated regulatory capital ratios of the Company for the previous three quarters:

    For the Quarter Ended September 30,   June 30,   March 31, December 31,
      2024*   2024   2024** 2023**
    Consolidated Capital Ratios            
    Total capital (to risk-weighted assets)   13.52 %     13.41 %     13.75 %   14.04 %
    Tier 1 capital (to risk-weighted assets)   11.70 %     11.59 %     11.89 %   12.13 %
    Common equity tier 1 capital (to risk-weighted assets)   10.74 %     10.63 %     10.89 %   11.11 %
    Tier 1 capital (to average assets)   9.01 %     9.02 %     8.91 %   8.61 %
    *Preliminary estimate – may be subject to change  
    **Prior periods were previously revised (see disclosure in Form 10-Q for the quarterly period ending June 30, 2024)  
       

    As of September 30, 2024, the ratio of total stockholders’ equity to total assets is 9.52%. Book value per common share was $17.27, increasing $0.65 during the third quarter of 2024.

    Tangible common equity1 totaled $588.5 million at September 30, 2024, and the ratio of tangible common equity to tangible assets1 was 7.58% at September 30, 2024, up from 7.22% at June 30, 2024. Tangible book value, which excludes intangible assets from total equity, per common share1 was $13.46, increasing $0.66 during the third quarter of 2024.

    Credit Quality

    As of September 30, 2024, total non-accrual loans increased by $5.3 million, or 29.0%, from June 30, 2024, to 0.49% of total loans HFI. Total non-performing assets increased $5.1 million, or 25.0%, to $25.6 million, compared to $20.5 million as of June 30, 2024. The ratio of non-performing assets to total assets increased to 0.32% compared to 0.26% as of June 30, 2024.

    As of September 30, 2024, net charge-offs decreased by $0.2 million to $0.4 million, compared to $0.6 million as of June 30, 2024 and remain just 0.03% annualized of average loans.

    _________________________
    1     Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

    Earnings Conference Call

    As previously announced, Horizon will host a conference call to review its third quarter financial results and operating performance.

    Participants may access the live conference call on October 24, 2024 at 7:30 a.m. CT (8:30 a.m. ET) by dialing 833-974-2379 from the United States, 866-450-4696 from Canada or 1-412-317-5772 from international locations and requesting the “Horizon Bancorp Call.” Participants are asked to dial in approximately 10 minutes prior to the call.

    A telephone replay of the call will be available approximately one hour after the end of the conference through November 1, 2024. The replay may be accessed by dialing 877-344-7529 from the United States, 855-669-9658 from Canada or 1–412–317-0088 from other international locations, and entering the access code 9847279.

    About Horizon Bancorp, Inc.

    Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $7.9 billion-asset commercial bank holding company for Horizon Bank, which serves customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Horizon’s retail offerings include prime residential and other secured consumer lending to in-market customers, as well as a range of personal banking and wealth management solutions. Horizon also provides a comprehensive array of in-market business banking and treasury management services, as well as equipment financing solutions for customers regionally and nationally, with commercial lending representing over half of total loans. More information on Horizon, headquartered in Northwest Indiana’s Michigan City, is available at horizonbank.com and investor.horizonbank.com.

    Use of Non-GAAP Financial Measures

    Certain information set forth in this press release refers to financial measures determined by methods other than in accordance with GAAP. Specifically, we have included non-GAAP financial measures relating to net income, diluted earnings per share, pre-tax, pre-provision net income, net interest margin, tangible stockholders’ equity and tangible book value per share, efficiency ratio, the return on average assets, the return on average common equity, and return on average tangible equity. In each case, we have identified special circumstances that we consider to be non-recurring and have excluded them. We believe that this shows the impact of such events as acquisition-related purchase accounting adjustments and swap termination fees, among others we have identified in our reconciliations. Horizon believes these non-GAAP financial measures are helpful to investors and provide a greater understanding of our business and financial results without giving effect to the purchase accounting impacts and one-time costs of acquisitions and non–recurring items. These measures are not necessarily comparable to similar measures that may be presented by other companies and should not be considered in isolation or as a substitute for the related GAAP measure. See the tables and other information below and contained elsewhere in this press release for reconciliations of the non-GAAP information identified herein and its most comparable GAAP measures.

    Forward Looking Statements

    This press release may contain forward–looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp, Inc. and its affiliates (collectively, “Horizon”). For these statements, Horizon claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Horizon, including the information in the filings we make with the Securities and Exchange Commission (the “SEC”). Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance.

    Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: current financial conditions within the banking industry; changes in the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing liabilities; increased interest rate sensitivity; the aggregate effects of elevated inflation levels in recent years; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon’s assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market values, collateral securing loans and other assets; changes in sources of liquidity; macroeconomic conditions and their impact on Horizon and its customers; legislative and regulatory actions and reforms; changes in accounting policies or procedures as may be adopted and required by regulatory agencies; litigation, regulatory enforcement, and legal compliance risk and costs; rapid technological developments and changes; cyber terrorism and data security breaches; the rising costs of cybersecurity; the ability of the U.S. federal government to manage federal debt limits; climate change and social justice initiatives; the inability to realize cost savings or revenues or to effectively implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; acts of terrorism, war and global conflicts, such as the Russia and Ukraine conflict and the Israel and Hamas conflict; and supply chain disruptions and delays. These and additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in Horizon’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s website (www.sec.gov). Undue reliance should not be placed on the forward–looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward–looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.

       
      Condensed Consolidated Statements of Income
      (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,   September 30,
      2024   2024
    		   2024
    		   2023   2023
    		   2024
    		   2023
    Interest Income                          
    Loans receivable $ 75,488     $ 71,880     $ 66,954     $ 65,583     $ 63,003     $ 214,322     $ 178,961  
    Investment securities – taxable   8,133       7,986       7,362       8,157       8,788       23,481       26,253  
    Investment securities – tax-exempt   6,310       6,377       6,451       6,767       7,002       19,138       21,617  
    Other   957       738       4,497       3,007       1,332       6,192       1,960  
    Total interest income   90,888       86,981       85,264       83,514       80,125       263,133       228,791  
    Interest Expense                          
    Deposits   30,787       28,447       27,990       27,376       24,704       87,224       58,481  
    Borrowed funds   11,131       11,213       11,930       11,765       11,224       34,274       30,713  
    Subordinated notes   830       829       831       870       880       2,490       2,641  
    Junior subordinated debentures issued to capital trusts   1,230       1,213       1,225       1,246       1,227       3,668       3,469  
    Total interest expense   43,978       41,702       41,976       41,257       38,035       127,656       95,304  
    Net Interest Income   46,910       45,279       43,288       42,257       42,090       135,477       133,487  
    Provision for loan losses   1,044       2,369       805       1,274       263       4,218       1,185  
    Net Interest Income after Provision for Loan Losses   45,866       42,910       42,483       40,983       41,827       131,259       132,302  
    Non-interest Income                          
    Service charges on deposit accounts   3,320       3,130       3,214       3,092       3,086       9,664       9,135  
    Wire transfer fees   123       113       101       103       120       337       345  
    Interchange fees   3,511       3,826       3,109       3,224       3,186       10,446       9,637  
    Fiduciary activities   1,394       1,372       1,315       1,352       1,206       4,081       3,728  
    Gains (losses) on sale of investment securities   —       —       —       (31,572 )     —       —       (480 )
    Gain on sale of mortgage loans   1,622       896       626       951       1,582       3,144       3,372  
    Mortgage servicing income net of impairment   412       450       439       724       631       1,301       1,984  
    Increase in cash value of bank owned life insurance   349       318       298       658       1,055       965       3,051  
    Other income   780       380       827       1,019       964       1,987       1,675  
    Total non-interest income   11,511       10,485       9,929       (20,449 )     11,830       31,925       32,447  
    Non-interest Expense                          
    Salaries and employee benefits   21,829       20,583       20,268       21,877       20,058       62,680       58,932  
    Net occupancy expenses   3,207       3,192       3,546       3,260       3,283       9,945       10,095  
    Data processing   2,977       2,579       2,464       2,942       2,999       8,020       8,684  
    Professional fees   676       714       607       772       707       1,997       1,873  
    Outside services and consultants   3,677       3,058       3,359       2,394       2,316       10,094       7,548  
    Loan expense   1,034       1,038       719       1,345       1,120       2,791       3,635  
    FDIC insurance expense   1,204       1,315       1,320       1,200       1,300       3,839       2,680  
    Core deposit intangible amortization   844       844       872       903       903       2,560       2,709  
    Other losses   297       515       16       508       188       828       543  
    Other expense   3,527       3,684       3,936       4,129       3,294       11,147       10,255  
    Total non-interest expense   39,272       37,522       37,107       39,330       36,168       113,901       106,954  
    Income /(Loss) Before Income Taxes   18,105       15,873       15,305       (18,796 )     17,489       49,283       57,795  
    Income tax expense   (75 )     1,733       1,314       6,419       1,284       2,972       4,599  
    Net Income /(Loss) $ 18,180     $ 14,140     $ 13,991     $ (25,215 )   $ 16,205     $ 46,311     $ 53,196  
    Basic Earnings /(Loss) Per Share $ 0.42     $ 0.32     $ 0.32     $ (0.58 )   $ 0.37     $ 1.06     $ 1.22  
    Diluted Earnings/(Loss) Per Share   0.41       0.32       0.32       (0.58 )     0.37       1.05       1.21  
                                                           
      Condensed Consolidated Balance Sheets
      (Dollars in Thousands)
      September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
    Assets                  
    Interest earning assets                  
    Federal funds sold $ 113,912     $ 34,453     $ 161,704     $ 401,672     $ 71,576  
    Interest earning deposits   12,107       4,957       9,178       12,071       4,718  
    Interest earning time deposits   735       1,715       1,715       2,205       2,207  
    Federal Home Loan Bank stock   53,826       53,826       53,826       34,509       34,509  
    Investment securities, available for sale   541,170       527,054       535,319       547,251       865,168  
    Investment securities, held to maturity   1,888,379       1,904,281       1,925,725       1,945,638       1,966,483  
    Loans held for sale   2,069       2,440       922       1,418       2,828  
    Gross loans held for investment (HFI)   4,803,996       4,822,840       4,618,175       4,417,630       4,359,002  
    Total Interest earning assets   7,416,194       7,351,566       7,306,564       7,362,394       7,306,491  
    Non-interest earning assets                  
    Allowance for credit losses   (52,881 )     (52,215 )     (50,387 )     (50,029 )     (49,699 )
    Cash   108,815       106,691       100,206       112,772       98,843  
    Cash value of life insurance   37,115       36,773       36,455       36,157       149,212  
    Other assets   119,026       165,656       160,593       177,061       152,280  
    Goodwill   155,211       155,211       155,211       155,211       155,211  
    Other intangible assets   11,067       11,910       12,754       13,626       14,530  
    Premises and equipment, net   93,544       93,695       94,303       94,583       94,716  
    Interest receivable   39,366       43,240       40,008       38,710       37,850  
    Total non-interest earning assets   511,263       560,961       549,143       578,091       652,943  
    Total assets $ 7,927,457     $ 7,912,527     $ 7,855,707     $ 7,940,485     $ 7,959,434  
    Liabilities                  
    Savings and money market deposits $ 3,420,827     $ 3,364,726     $ 3,350,673     $ 3,369,149     $ 3,322,788  
    Time deposits   1,220,653       1,178,389       1,136,121       1,179,739       1,250,606  
    Borrowings   1,142,744       1,229,165       1,219,812       1,217,020       1,214,016  
    Repurchase agreements   122,399       128,169       139,309       136,030       142,494  
    Subordinated notes   55,703       55,668       55,634       55,543       59,007  
    Junior subordinated debentures issued to capital trusts   57,423       57,369       57,315       57,258       57,201  
    Total interest earning liabilities   6,019,749       6,013,486       5,958,864       6,014,739       6,046,112  
    Non-interest bearing deposits   1,085,535       1,087,040       1,093,076       1,116,005       1,126,703  
    Interest payable   11,400       11,240       7,853       22,249       16,281  
    Other liabilities   55,951       74,096       74,664       68,680       76,969  
    Total liabilities   7,172,635       7,185,862       7,134,457       7,221,673       7,266,065  
    Stockholders’ Equity                  
    Preferred stock   —       —       —       —       —  
    Common stock   —       —       —       —       —  
    Additional paid-in capital   358,453       357,673       356,599       356,400       355,478  
    Retained earnings   454,050       442,977       435,927       429,021       461,325  
    Accumulated other comprehensive income (loss)   (57,681 )     (73,985 )     (71,276 )     (66,609 )     (123,434 )
    Total stockholders’ equity   754,822       726,665       721,250       718,812       693,369  
    Total liabilities and stockholders’ equity $ 7,927,457     $ 7,912,527     $ 7,855,707     $ 7,940,485     $ 7,959,434  
                                           
      Loans and Deposits        
      (Dollars in Thousands, Unaudited)        
      September 30,   June 30,   March 31,   December 31,   September 30,   % Change
      2024   2024   2024   2023   2023   Q3’24 vs Q2’24   Q3’24 vs Q3’23
    Commercial:                          
    Commercial real estate $ 2,105,459     $ 2,117,772     $ 1,984,723     $ 1,962,097     $ 1,916,056       (1 )%     10 %
    Commercial & Industrial   808,600       786,788       765,043       712,863       673,188       3 %     20 %
    Total commercial   2,914,059       2,904,560       2,749,766       2,674,960       2,589,244       — %     13 %
    Residential Real estate   801,356       797,956       782,071       681,136       675,399       — %     19 %
    Mortgage warehouse   80,437       68,917       56,548       45,078       65,923       17 %     22 %
    Consumer   1,008,144       1,051,407       1,029,790       1,016,456       1,028,436       (4 )%     (2 )%
    Total loans held for investment   4,803,996       4,822,840       4,618,175       4,417,630       4,359,002       — %     10 %
    Loans held for sale   2,069       2,440       922       1,418       2,828       (15 )%     (27 )%
    Total loans $ 4,806,065     $ 4,825,280     $ 4,619,097     $ 4,419,048     $ 4,361,830       — %     10 %
                               
    Deposits:                          
    Interest bearing deposits                          
    Savings and money market deposits $ 3,420,827     $ 3,364,726     $ 3,350,673     $ 3,369,149     $ 3,322,788       2 %     3 %
    Time deposits   1,220,653       1,178,389       1,136,121       1,179,739       1,250,606       4 %     (2 )%
    Total Interest bearing deposits   4,641,480       4,543,115       4,486,794       4,548,888       4,573,394       2 %     1 %
    Non-interest bearing deposits                          
    Non-interest bearing deposits   1,085,535       1,087,040       1,093,076       1,116,005       1,126,703       — %     (4 )%
    Total deposits $ 5,727,015     $ 5,630,155     $ 5,579,870     $ 5,664,893     $ 5,700,097       2 %     — %
                                                           
      Average Balance Sheet
      (Dollars in Thousands, Unaudited)
      Three Months Ended
      September 30, 2024   June 30, 2024   September 30, 2023
      Average
    Balance    		 Interest(4) Average
    Rate(4)    		   Average
    Balance    		 Interest(4) Average
    Rate(4)    		   Average
    Balance    		 Interest(4) Average
    Rate(4)
    Assets
    Interest earning assets                      
    Federal funds sold $ 64,743   $ 860     5.28 %   $ 47,805   $ 645     5.43 %   $ 92,305   $ 1,247     5.36 %
    Interest earning deposits   8,781     97     4.39 %     7,662     93     4.88 %     8,018     85     4.21 %
    Federal Home Loan Bank stock   53,826     1,607     11.88 %     53,827     1,521     11.36 %     34,509     618     7.10 %
    Investment securities – taxable (1)   1,301,830     6,526     1.99 %     1,309,305     6,465     1.99 %     1,650,081     8,170     1.96 %
    Investment securities – non-taxable (1)   1,125,295     7,987     2.82 %     1,132,065     8,072     2.87 %     1,220,998     8,863     2.88 %
    Total investment securities   2,427,125     14,513     2.38 %     2,441,370     14,537     2.39 %     2,871,079     17,033     2.35 %
    Loans receivable (2) (3)   4,775,788     75,828     6.32 %     4,662,124     72,208     6.23 %     4,280,700     63,254     5.89 %
    Total interest earning assets $ 7,330,263   $ 92,905     5.04 %   $ 7,212,788   $ 89,004     4.96 %   $ 7,286,611   $ 82,237     4.59 %
    Non-interest earning assets                      
    Cash and due from banks $ 108,609         $ 108,319         $ 100,331      
    Allowance for credit losses   (52,111 )         (50,334 )         (49,705 )    
    Other assets   471,259           508,555           587,514      
    Total average assets $ 7,858,020         $ 7,779,328         $ 7,924,751      
                           
    Liabilities and Stockholders’ Equity
    Interest bearing liabilities                      
    Interest bearing deposits $ 3,386,177   $ 18,185     2.14 %   $ 3,334,490   $ 16,814     2.03 %   $ 3,267,594   $ 12,661     1.54 %
    Time deposits   1,189,148     12,602     4.22 %     1,134,590     11,633     4.12 %     1,271,104     12,043     3.76 %
    Borrowings   1,149,952     10,221     3.54 %     1,184,172     10,278     3.49 %     1,180,452     10,399     3.50 %
    Repurchase agreements   123,524     910     2.93 %     125,144     935     3.00 %     136,784     825     2.39 %
    Subordinated notes   55,681     830     5.93 %     55,647     829     5.99 %     58,983     880     5.92 %
    Junior subordinated debentures issued to capital trusts   57,389     1,230     8.53 %     57,335     1,213     8.51 %     57,166     1,227     8.52 %
    Total interest bearing liabilities $ 5,961,871   $ 43,978     2.93 %   $ 5,891,378   $ 41,702     2.85 %   $ 5,972,083   $ 38,035     2.53 %
    Non-interest bearing liabilities
    Demand deposits $ 1,083,214         $ 1,080,676         $ 1,159,241      
    Accrued interest payable and other liabilities   74,563           80,942           77,942      
    Stockholders’ equity   738,372           726,332           715,485      
    Total average liabilities and stockholders’ equity $ 7,858,020         $ 7,779,328         $ 7,924,751      
    Net FTE interest income (non-GAAP) (5)   $ 48,927         $ 47,302         $ 44,202    
    Less FTE adjustments (4)     2,017           2,023           2,112    
    Net Interest Income   $ 46,910         $ 45,279         $ 42,090    
    Net FTE interest margin (Non-GAAP) (4)(5)       2.66 %         2.64 %         2.41 %
     
    (1) Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities.
    (2) Includes fees on loans held for sale and held for investment. The inclusion of loan fees does not have a material effect on the average interest rate.
    (3) Non-accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees.
    (4) Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company’s performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax-exempt loans and securities to an FTE basis utilizing a 21% tax rate
    (5) Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
     
      Credit Quality        
      (Dollars in Thousands Except Ratios, Unaudited)        
      Quarter Ended        
      September 30,   June 30,   March 31,   December 31,   September 30,   % Change
      2024   2024   2024   2023   2023   3Q24 vs 2Q24   3Q24 vs 3Q23
    Non-accrual loans                          
    Commercial $ 6,830     $ 4,321     $ 5,493     $ 7,362     $ 6,919       58 %     (1 )%
    Residential Real estate   9,529       8,489       8,725       8,058       7,644       12 %     25 %
    Mortgage warehouse   —       —       —       —       —       — %     — %
    Consumer   7,208       5,453       4,835       4,290       4,493       32 %     60 %
    Total non-accrual loans   23,567       18,263       19,053       19,710       19,056       29 %     24 %
    90 days and greater delinquent – accruing interest   819       1,039       108       559       392       (21 )%     109 %
    Total non-performing loans   24,386       19,302       19,161       20,269       19,448       26 %     25 %
                               
    Other real estate owned                          
    Commercial $ 1,158     $ 1,111     $ 1,124     $ 1,124     $ 1,287       4 %     (10 )%
    Residential Real estate   —       —       —       182       32       — %     (100 )%
    Mortgage warehouse   —       —       —       —       —       — %     — %
    Consumer   36       57       50       205       72       (37 )%     (50 )%
    Total other real estate owned $ 1,194     $ 1,168     $ 1,174     $ 1,511     $ 1,391       2 %     (14 )%
                               
    Total non-performing assets $ 25,580     $ 20,470     $ 20,335     $ 21,780     $ 20,839       25 %     23 %
                               
    Loan data:                          
    Accruing 30 to 89 days past due loans $ 18,087     $ 19,785     $ 15,154     $ 16,595     $ 13,089       (9 )%     38 %
    Substandard loans   59,775       51,221       47,469       49,526       47,563       17 %     26 %
    Net charge-offs (recoveries)                          
    Commercial   (55 )     57       (57 )     233       142       (196 )%     (139 )%
    Residential Real estate   (9 )     (4 )     (5 )     21       (39 )     (125 )%     77 %
    Mortgage warehouse   —       —       —       —       —       — %     — %
    Consumer   439       534       488       531       619       (18 )%     (29 )%
    Total net charge-offs   375       587       426       785       722       (36 )%     (48 )%
                               
    Allowance for credit losses                          
    Commercial   32,854       31,941       30,514       29,736       29,472       3 %     11 %
    Residential Real estate   2,675       2,588       2,655       2,503       2,794       3 %     (4 )%
    Mortgage warehouse   862       736       659       481       714       17 %     21 %
    Consumer   16,490       16,950       16,559       17,309       16,719       (3 )%     (1 )%
    Total allowance for credit losses $ 52,881     $ 52,215     $ 50,387     $ 50,029     $ 49,699       1 %     6 %
                               
    Credit quality ratios                          
    Non-accrual loans to HFI loans   0.49 %     0.38 %     0.41 %     0.45 %     0.44 %        
    Non-performing assets to total assets   0.32 %     0.26 %     0.26 %     0.27 %     0.26 %        
    Annualized net charge-offs of average total loans   0.03 %     0.05 %     0.04 %     0.07 %     0.07 %        
    Allowance for credit losses to HFI loans   1.10 %     1.08 %     1.09 %     1.13 %     1.14 %        
                                                   
    Non–GAAP Reconciliation of Net Fully-Taxable Equivalent (“FTE”) Interest Margin
    (Dollars in Thousands, Unaudited)
        Three Months Ended
        September 30,   June 30,   March 31,   December 31,   September 30,
        2024   2024   2024   2023   2023
    Interest income (GAAP) (A) $ 90,888     $ 86,981     $ 85,264     $ 83,514     $ 80,125  
    Taxable-equivalent adjustment:                    
    Investment securities – tax exempt (1)     1,677       1,695       1,715       1,799       1,861  
    Loan receivable (2)     340       328       353       314       251  
    Interest income (non-GAAP) (B)   92,905       89,004       87,332       85,627       82,237  
    Interest expense (GAAP) (C)   43,978       41,702       41,976       41,257       38,035  
    Net interest income (GAAP) (D) =(A) – (C)   46,910       45,279       43,288       42,257       42,090  
    Net FTE interest income (non-GAAP) (E) = (B) – (C)   48,927       47,302       45,356       44,370       44,202  
    Average interest earning assets (F)   7,330,263       7,212,788       7,293,559       7,239,034       7,286,611  
    Net FTE interest margin (non-GAAP) (G) = (E*) / (F)   2.66 %     2.64 %     2.50 %     2.43 %     2.41 %
                         
    (1) The following represents municipal securities interest income for investment securities classified as available-for-sale and held-to-maturity
    (2) The following represents municipal loan interest income for loan receivables classified as held for sale and held for investment
    *Annualized
     
    Non–GAAP Reconciliation of Return on Average Tangible Common Equity
    (Dollars in Thousands, Unaudited)
        Three Months Ended
        September 30,   June 30,   March 31,   December 31,   September 30,
        2024   2024   2024   2023   2023
                         
    Net income (loss) (GAAP) (A) $ 18,180     $ 14,140     $ 13,991     $ (25,215 )   $ 16,205  
                         
    Average stockholders’ equity (B)   738,372       726,332       725,083       702,793       715,485  
    Average intangible assets (C)   166,819       167,659       168,519       169,401       170,301  
    Average tangible equity (Non-GAAP) (D) = (B) – (C) $ 571,553     $ 558,673     $ 556,564     $ 533,392     $ 545,184  
    Return on average tangible common equity (“ROACE”) (non-GAAP) (E) = (A*) / (D)   12.65 %     10.18 %     10.11 %   (18.76 )%     11.79 %
    *Annualized                    
                         
    Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets
    (Dollars in Thousands, Unaudited)
        Three Months Ended
        September 30,   June 30,   March 31,   December 31,   September 30,
        2024   2024   2024   2023   2023
    Total stockholders’ equity (GAAP) (A) $ 754,822     $ 726,665     $ 721,250     $ 718,812     $ 693,369  
    Intangible assets (end of period) (B)   166,278       167,121       167,965       168,837       169,741  
    Total tangible common equity (non-GAAP) (C) = (A) – (B) $ 588,544     $ 559,544     $ 553,285     $ 549,975     $ 523,628  
                         
    Total assets (GAAP) (D)   7,927,457       7,912,527       7,855,707       7,940,485       7,959,434  
    Intangible assets (end of period) (B)   166,278       167,121       167,965       168,837       169,741  
    Total tangible assets (non-GAAP) (E) = (D) – (B) $ 7,761,179     $ 7,745,406     $ 7,687,742     $ 7,771,648     $ 7,789,693  
                         
    Tangible common equity to tangible assets (Non-GAAP) (G) = (C) / (E)   7.58 %     7.22 %     7.20 %     7.08 %     6.72 %
                                             
    Non–GAAP Reconciliation of Tangible Book Value Per Share
    (Dollars in Thousands, Unaudited)
        Three Months Ended
        September 30,   June 30,   March 31,   December 31,   September 30,
        2024
    		   2024
    		   2024
    		   2023
    		   2023
    Total stockholders’ equity (GAAP) (A) $ 754,822     $ 726,665     $ 721,250     $ 718,812     $ 693,369  
    Intangible assets (end of period) (B)   166,278       167,121       167,965       168,837       169,741  
    Total tangible common equity (non-GAAP) (C) = (A) – (B) $ 588,544     $ 559,544     $ 553,285     $ 549,975     $ 523,628  
    Common shares outstanding (D)   43,712,059       43,712,059       43,726,380       43,652,063       43,648,501  
                         
    Tangible book value per common share (non-GAAP) (E) = (C) / (D) $ 13.46     $ 12.80     $ 12.65     $ 12.60     $ 12.00  
                                             
    Contact: John R. Stewart, CFA
      EVP, Chief Financial Officer
    Phone: (219) 814–5833
    Fax: (219) 874–9280
    Date: October 23, 2024
       

    The MIL Network –

  • MIL-OSI USA: ICYMI—Hagerty Joins CNN News Central to Discuss Latest Trump Smear Campaign, Biden-Harris Failed Economic and Foreign Policies

    US Senate News:

    Source: United States Senator for Tennessee Bill Hagerty
    ‘The American public can see right through it.’
    PHILADELPHIA, PA—United States Senator Bill Hagerty (R-TN), former U.S. Ambassador to Japan in the Trump Administration, today joined CNN News Central to discuss the latest outrageous smear campaign against former President Donald Trump and the Biden-Harris Administration’s failures in both the economy and foreign policy.

    *Click the photo above or here to watch*
    Partial Transcript
     Hagerty on his personal experience serving in the Trump Administration: “I’ll say this: I did serve with President Trump as U.S. Ambassador to Japan. We have more U.S. military stations there in Japan than any place else in the world overseas. President Trump came to visit me three times—we always met with our military there—and I never saw anything but the utmost respect, both President Trump’s respect for our military, and their love and respect for him. That’s what I know.”
    Hagerty on John Kelly’s slanderous claims against Trump: “It’s wholly inconsistent with my experience with President Trump. I also have reason to doubt it because there’ve been articles published about ‘losers’ and the things that were supposedly said in Normandy. I called the Ambassador right away. Again, these are old stories that are being drug up, of course, within two weeks of the election. But when I called the Ambassador, she said [the claims were] absolutely not true [regarding] what was attributed to John Kelly [in 2020], 20 other staffers said that was the case as well. I think this is being brought up at a time to divert and deflect. Here’s the story: American people right now need to be asking themselves a very basic question: Are they better off today than they were when President Trump was in office? Kamala Harris is claiming all these things that she might be able to do, yet she’s done none of them for the past three and a half years. What we’ve got is a situation where Kamala Harris can’t find any place where she would differ from Joe Biden. Seventy two percent of Americans think that this country is on the wrong track. All they have to do is look back to the time when President Trump was in office; that debunks these claims. President Trump had our economy working. People respected us—nations respected us—we had people better off in every demographic group. And I think that’s why Americans are seeing President Trump’s polls move forward, and I think that’s why we see these desperate things coming out here at the last minute, again, within the last two weeks, citing something from the deep past. It’s irrelevant at this point. Americans need to know: Will [they] be better off? Seventy two percent of Americans say we’re on the wrong track right now; I think they’re ready for change […] Real wages [are] what I think most people care about. Real wages [are] what they care about, and they were better off [under Trump].”
    Hagerty on the false claim that Trump doesn’t respect the military: “His record as commander in Chief debunks [these baseless claims] in my mind…Because why? He actually did have us in position where there were no wars. You have [President] Joe Biden as Commander in Chief; what did he do? He and [Vice President] Kamala Harris, the last in the room, made a terrible decision in Afghanistan that led to the death of 13 service members, very personal to me. One of them was Ryan Knauss, a Tennessean. And I had to call Ryan’s parents and tell them what happened. You think about it: Joe Biden is there at the return of the remains at Dover. He doesn’t even have time for them; he’s looking at his watch. And when he’s in debate, he tells the world that no military man or woman died under his watch. He just forgot about the 13 that died on his watch. That’s presidential disrespect; I don’t see that coming up. Instead, you have claims that cannot be verified from someone that obviously doesn’t like President Trump and was fired by President Trump […] President Trump is a patriot. He loves this country.”
    Hagerty on Trump’s foreign policies having substantially greater success than Biden-Harris’ policies: “I’ve actually seen Donald Trump in the room with Vladimir Putin and with Xi Jinping, with [Prime Minister Narendra] Modi, with [Former Prime Minister Shinzo] Abe. He’s able to hold his own. I certainly don’t think Kamala Harris could do that. Donald Trump knows how to negotiate. He knows how to deal with world leaders, and he can deal from a position of strength. That’s what Americans need right now. That’s what Americans should be asking themselves this close to the election, is who will represent our nation? Who will put us back in a posture of strength? Donald Trump clearly can do that because he’s done it before. Under his watch, we had no major wars breakout. As soon as Joe Biden and Kamala Harris came back into office, we saw the exact opposite. We’ve got hot wars now in the Middle East—you see what’s happening in Ukraine and Russia…It’s a very bad situation that’s occurred over the past three and a half years. Kamala Harris could have done something about it if she were serious. Obviously, she didn’t, and I think the American public can see right through it.”

    MIL OSI USA News –

  • MIL-OSI: HCI Group Assumes Over 42,000 Policies from Citizens, Representing Approximately $200 Million in Premium

    Source: GlobeNewswire (MIL-OSI)

    TAMPA, Fla., Oct. 23, 2024 (GLOBE NEWSWIRE) — HCI Group, Inc. (NYSE: HCI), a holding company with operations in homeowners insurance, information technology services, real estate, and reinsurance, announced today that its insurance subsidiaries have successfully assumed over 42,000 policies from Citizens Property Insurance Corporation, Florida’s state-backed insurance company. The policies assumed represent approximately $200 million of in-force premium.

    “We successfully navigated a highly competitive Citizens’ depopulation process and exceeded our fourth quarter new business goal through the October assumption alone,” said Paresh Patel, HCI’s Chairman and Chief Executive Officer. “Our technology, which enables us to select policies that best fit our underwriting and profitability criteria, combined with our strong rate of policyholder adoption, allows us to forgo additional assumptions for the balance of the year.”

    Homeowners Choice was approved for 25,000 policies and assumed approximately 22,000 policies – an 88% acceptance rate. TypTap Insurance Company was approved for 25,000 policies and assumed approximately 20,000 policies – an 80% acceptance rate. The assumption of policies by both insurance subsidiaries is effective as of October 22, 2024.

    About HCI Group, Inc.
    HCI Group, Inc. owns subsidiaries engaged in diverse, yet complementary business activities, including homeowners insurance, information technology services, insurance management, real estate, and reinsurance. HCI’s leading insurance operation, TypTap Insurance Company, is a technology-driven homeowners insurance company. TypTap’s operations are powered in large part by insurance-related information technology developed by HCI’s software subsidiary, Exzeo USA, Inc. HCI’s largest subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., provides homeowners insurance primarily in Florida. HCI’s real estate subsidiary, Greenleaf Capital, LLC, owns and operates multiple properties in Florida, including office buildings, retail centers and marinas.

    The company’s common shares trade on the New York Stock Exchange under the ticker symbol “HCI” and are included in the Russell 2000 and S&P SmallCap 600 Index. HCI Group, Inc. regularly publishes financial and other information in the Investor Information section of the company’s website. For more information about HCI Group and its subsidiaries, visit www.hcigroup.com.

    Company Contact:
    Bill Broomall, CFA
    Investor Relations
    HCI Group, Inc.
    Tel (813) 776-1012
    wbroomall@typtap.com

    Investor Relations Contact:
    Matt Glover
    Gateway Group, Inc.
    Tel 949-574-3860
    HCI@gateway-grp.com

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

    SOUDERTON, Pa., Oct. 23, 2024 (GLOBE NEWSWIRE) — Univest Financial Corporation (“Univest” or the “Corporation”) (NASDAQ: UVSP), parent company of Univest Bank and Trust Co. (the “Bank”) and its insurance, investments and equipment financing subsidiaries, announced net income for the quarter ended September 30, 2024 was $18.6 million, or $0.63 diluted earnings per share, compared to net income of $17.0 million, or $0.58 diluted earnings per share, for the quarter ended September 30, 2023.

    Loans
    Gross loans and leases increased $45.9 million, or 0.7% (2.8% annualized), from June 30, 2024, primarily due to increases in commercial real estate and residential mortgage loans, partially offset by decreases in construction and commercial loans. Gross loans and leases increased $163.5 million, or 2.5% (3.3% annualized), from December 31, 2023, primarily due to increases in commercial, commercial real estate and residential mortgage loans, partially offset by a decrease in construction loans.

    Deposits and Liquidity
    Total deposits increased $358.8 million, or 5.5% (22.0% annualized), from June 30, 2024, primarily due to seasonal increases in public funds partially offset by decreases in commercial, consumer and brokered deposits. Total deposits increased $478.4 million, or 7.5% (10.0% annualized), from December 31, 2023, primarily due to increases in commercial, brokered, and seasonal public funds deposits. Noninterest-bearing deposits totaled $1.3 billion and represented 19.3% of total deposits at September 30, 2024, compared to $1.4 billion representing 21.5% of total deposits at June 30, 2024. Unprotected deposits, which excludes insured, internal, and collateralized deposit accounts, totaled $1.4 billion at September 30, 2024 and June 30, 2024. This represented 20.3% of total deposits at September 30, 2024, compared to 22.1% at June 30, 2024.

    As of September 30, 2024, the Corporation reported on balance sheet cash and cash equivalents totaling $504.7 million. The Corporation and its subsidiaries had committed borrowing capacity of $3.6 billion at September 30, 2024, of which $1.8 billion was available. The Corporation and its subsidiaries also maintained uncommitted funding sources from correspondent banks of $468.0 million at September 30, 2024. Future availability under these uncommitted funding sources is subject to the prerogatives of the granting banks and may be withdrawn at will.

    Net Interest Income and Margin
    Net interest income of $53.2 million for the third quarter of 2024 decreased $386 thousand, or 0.7%, from the third quarter of 2023 and increased $2.2 million, or 4.3%, from the second quarter of 2024. The decrease in net interest income for the three months ended September 30, 2024 compared to the same period in the prior year reflects the continued pressure on the cost of deposits due to the shift of balances from lower to higher cost deposit products which exceeded the increase in interest income from asset yield expansion and the increase in average interest-earning assets. However, we continue to see indicators of stabilization in cost of funds and our funding mix. The increase in net interest income for the three months ended September 30, 2024 compared to the three months ended June 30, 2024 was due to higher average balances of interest-earning assets and increased yields on these assets, partially offset by higher interest-bearing liability balances and costs.

    Net interest margin, on a tax-equivalent basis, was 2.82% for the third quarter of 2024, compared to 2.84% for the second quarter of 2024 and 2.96% for the third quarter of 2023. Excess liquidity reduced net interest margin by approximately nine basis points for the quarter ended September 30, 2024 compared to approximately two basis points for the quarter ended June 30, 2024 and approximately four basis points for the quarter ended September 30, 2023. Excluding the impact of excess liquidity, the net interest margin, on a tax-equivalent basis, was 2.91% for the quarter ended September 30, 2024 compared to 2.86% for the quarter ended June 30, 2024 and 3.00% for the quarter ended September 30, 2023.

    Noninterest Income
    Noninterest income for the quarter ended September 30, 2024 was $20.2 million, an increase of $1.5 million, or 7.8%, from the comparable period in the prior year.

    Investment advisory commission and fee income increased $476 thousand, or 9.8%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to increased assets under management and supervision driven by new business and market appreciation. Insurance commission and fee income increased $386 thousand, or 8.0%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to an increase in commercial lines premiums. Other income increased $1.2 million, or 512.3%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to an increase of $705 thousand in gains on the sale of Small Business Administration loans.

    Other service fee income decreased $1.2 million, or 39.9%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to a $785 thousand valuation allowance recorded on mortgage servicing rights driven by the increase in prepayment speed assumptions as a result of the decrease in interest rates during the quarter. Additionally, net servicing fees on sold mortgage loans decreased by $307 thousand, primarily attributable to the sale of mortgage servicing rights associated with $591.1 million of serviced loans in the first quarter of 2024 and increased amortization driven by prepayments.

    Noninterest Expense
    Noninterest expense for the quarter ended September 30, 2024 was $48.6 million, a decrease of $436 thousand, or 0.9%, from the comparable period in the prior year.

    Other expense decreased $808 thousand, or 11.0%, for the quarter ended September 30, 2024 primarily due to decreases in retirement plan costs, insurance expense, recruiter fees, and bank shares tax expense.

    Professional fees decreased $184 thousand, or 10.4%, for the quarter ended September 30, 2024 primarily driven by a reduction in consultant fees. Deposit insurance premiums decreased $161 thousand, or 12.8%, for the quarter ended September 30, 2024 driven by an improvement in the financial ratios that contribute to our deposit insurance assessment rate.

    Salaries, benefits and commissions increased $724 thousand, or 2.4%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to increases in salary expense and an increase in incentive compensation due to increased profitability, partially offset by an increase in compensation capitalized driven by higher loan production.

    Tax Provision
    The effective income tax rate was 20.6% for the quarter ended September 30, 2024, compared to an effective tax rate of 20.0% for the quarter ended September 30, 2023. The effective tax rates for the three months ended September 30, 2024 and 2023 reflected the benefits of tax-exempt income from investments in municipal securities and loans and leases. The increase in effective tax rate in the quarter was primarily due to increases in state tax rates.

    Asset Quality and Provision for Credit Losses
    Nonperforming assets totaled $36.6 million at September 30, 2024 and June 30, 2024, and $40.1 million at September 30, 2023.

    Net loan and lease charge-offs were $820 thousand for the three months ended September 30, 2024 compared to $809 thousand and $969 thousand for the three months ended June 30, 2024 and September 30, 2023, respectively.

    The provision for credit losses was $1.4 million for the three months ended September 30, 2024 compared to $707 thousand and $2.0 million for the three months ended June 30, 2024 and September 30, 2023, respectively. The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.28% at September 30, 2024, June 30, 2024 and September 30, 2023.

    Dividend and Share Repurchases
    On October 23, 2024, Univest declared a quarterly cash dividend of $0.21 per share to be paid on November 20, 2024 to shareholders of record as of November 6, 2024. During the quarter ended September 30, 2024, the Corporation repurchased 156,728 shares of common stock at an average price of $26.47 per share. Including brokerage fees and excise tax, the average price per share was $26.76. As of September 30, 2024, 539,646 shares are available for repurchase under the Share Repurchase Plan. On October 23, 2024, the Corporation’s Board of Directors approved an increase of 1,000,000 shares available for repurchase under the Corporation’s share repurchase program.

    Conference Call
    Univest will host a conference call to discuss third quarter 2024 results on Thursday, October 24, 2024 at 9:00 a.m. EST. Participants may preregister at https://www.netroadshow.com/events/login?show=27c257f2&confId=71976. The general public can access the call by dialing 1-833-470-1428; using Access Code 752766. A replay of the conference call will be available through December 24, 2024 by dialing 1-866-813-9403; using Access Code 807549.

    About Univest Financial Corporation
    Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $8.2 billion in assets and $5.3 billion in assets under management and supervision through its Wealth Management lines of business at September 30, 2024. Headquartered in Souderton, Pa. and founded in 1876, the Corporation and its subsidiaries provide a full range of financial solutions for individuals, businesses, municipalities and nonprofit organizations primarily in the Mid-Atlantic Region. Univest delivers these services through a network of more than 50 offices and online at www.univest.net.  

    This press release and the reports Univest files with the Securities and Exchange Commission often contain “forward-looking statements” relating to trends or factors affecting the financial services industry and, specifically, the financial condition and results of operations, business, prospects and strategies of Univest. These forward-looking statements involve certain risks and uncertainties in that there are a number of important factors that could cause Univest’s future financial condition, results of operations, business, prospects or strategies to differ materially from those expressed or implied by the forward-looking statements. These factors include, but are not limited to: (1) competition and demand for financial services in our market area; (2) inflation and/or changes in interest rates, which may adversely impact our margins and yields, reduce the fair value of our financial instruments, reduce our loan originations and/or lead to higher operating costs and higher costs we pay to retain and attract deposits; (3) changes in asset quality, prepayment speeds, loan sale volumes, charge-offs and/or credit loss provisions; (4) changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; (5) our ability to access cost-effective funding; (6) changes in economic conditions nationally and in our market, including potential recessionary conditions and the levels of unemployment in our market area; (7) economic assumptions or changes in our methodology, either of which may impact our allowance for credit losses calculation; (8) legislative, regulatory, accounting or tax changes; (9) monetary and fiscal policies of the U.S. government, including the policies of the Board of Governors of the Federal Reserve System; (10) technological issues that may adversely affect our operations or those of our customers; (11) a failure or breach in our operational or security systems or infrastructure, including cyberattacks; (12) changes in the securities markets; (13) the current or anticipated impact of military conflict, terrorism or other geopolitical events; (14) our ability to enter into new markets successfully and capitalize on growth opportunities and/or (15) risk factors mentioned in the reports and registration statements Univest files with the Securities and Exchange Commission.

    (UVSP – ER)

    Univest Financial Corporation
    Consolidated Selected Financial Data (Unaudited)
    September 30, 2024
    (Dollars in thousands)                            
                                 
    Balance Sheet (Period End)   09/30/24   06/30/24   03/31/24   12/31/23   09/30/23        
    ASSETS                            
    Cash and due from banks   $ 78,346     $ 66,808     $ 49,318     $ 72,815     $ 68,900          
    Interest-earning deposits with other banks     426,354       124,103       152,288       176,984       221,441          
    Cash and cash equivalents     504,700       190,911       201,606       249,799       290,341          
    Investment securities held-to-maturity     137,681       140,112       143,474       145,777       149,451          
    Investment securities available for sale, net of allowance for credit losses     354,100       342,776       350,819       351,553       334,538          
    Investments in equity securities     2,406       2,995       3,355       3,293       4,054          
    Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost     40,235       37,438       37,394       40,499       42,417          
    Loans held for sale     17,131       28,176       13,188       11,637       16,473          
    Loans and leases held for investment     6,730,734       6,684,837       6,579,086       6,567,214       6,574,958          
    Less: Allowance for credit losses, loans and leases     (86,041 )     (85,745 )     (85,632 )     (85,387 )     (83,837 )        
    Net loans and leases held for investment     6,644,693       6,599,092       6,493,454       6,481,827       6,491,121          
    Premises and equipment, net     47,411       48,174       48,739       51,441       51,287          
    Operating lease right-of-use assets     29,260       29,985       30,702       31,795       31,053          
    Goodwill     175,510       175,510       175,510       175,510       175,510          
    Other intangibles, net of accumulated amortization     7,158       7,701       7,473       10,950       11,079          
    Bank owned life insurance     138,744       137,823       137,896       131,344       130,522          
    Accrued interest and other assets     106,708       114,753       102,958       95,203       100,220          
    Total assets   $ 8,205,737     $ 7,855,446     $ 7,746,568     $ 7,780,628     $ 7,828,066          
                                 
    LIABILITIES                            
    Noninterest-bearing deposits   $ 1,323,953     $ 1,397,308     $ 1,401,806     $ 1,468,320     $ 1,432,559          
    Interest-bearing deposits:     5,530,195       5,098,014       5,003,552       4,907,461       5,006,606          
    Total deposits     6,854,148       6,495,322       6,405,358       6,375,781       6,439,165          
    Short-term borrowings     8,256       11,781       4,816       6,306       14,676          
    Long-term debt     225,000       250,000       250,000       310,000       320,000          
    Subordinated notes     149,136       149,011       148,886       148,761       148,636          
    Operating lease liabilities     32,246       33,015       33,744       34,851       34,017          
    Accrued expenses and other liabilities     59,880       62,180       60,095       65,721       64,374          
    Total liabilities     7,328,666       7,001,309       6,902,899       6,941,420       7,020,868          
                                 
    SHAREHOLDERS’ EQUITY                            
    Common stock, $5 par value: 48,000,000 shares authorized and 31,556,799 shares issued     157,784       157,784       157,784       157,784       157,784          
    Additional paid-in capital     301,262       300,166       298,914       301,066       300,171          
    Retained earnings     512,938       500,482       488,790       474,691       464,634          
    Accumulated other comprehensive loss, net of tax benefit     (41,623 )     (54,124 )     (54,740 )     (50,646 )     (71,586 )        
    Treasury stock, at cost     (53,290 )     (50,171 )     (47,079 )     (43,687 )     (43,805 )        
    Total shareholders’ equity     877,071       854,137       843,669       839,208       807,198          
    Total liabilities and shareholders’ equity   $ 8,205,737     $ 7,855,446     $ 7,746,568     $ 7,780,628     $ 7,828,066          
                                 
                                 
        For the three months ended,   For the nine months ended,
    Balance Sheet (Average)   09/30/24   06/30/24   03/31/24   12/31/23   09/30/23   09/30/24   09/30/23
    Assets   $ 8,005,265     $ 7,721,540     $ 7,696,575     $ 7,865,634     $ 7,693,983     $ 7,808,514   $ 7,453,070
    Investment securities, net of allowance for credit losses     493,334       493,140       500,983       489,587       506,341       495,810     513,704
    Loans and leases, gross     6,730,791       6,640,536       6,577,365       6,594,233       6,537,169       6,649,860     6,359,498
    Deposits     6,641,324       6,353,752       6,303,854       6,470,141       6,222,710       6,433,737     5,968,659
    Shareholders’ equity     864,406       844,572       842,546       814,941       811,515       850,559     802,541
                                                         
    Univest Financial Corporation
    Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited)
    September 30, 2024
    (Dollars in thousands)                            
                                 
    Summary of Major Loan and Lease Categories (Period End)   09/30/24   06/30/24   03/31/24   12/31/23   09/30/23        
    Commercial, financial and agricultural   $ 1,044,043     $ 1,055,332     $ 1,014,568     $ 989,723     $ 1,050,004          
    Real estate-commercial     3,442,083       3,373,889       3,283,729       3,302,798       3,275,140          
    Real estate-construction     285,616       313,229       379,995       394,462       427,561          
    Real estate-residential secured for business purpose     530,674       532,628       524,196       517,002       516,471          
    Real estate-residential secured for personal purpose     969,562       952,665       922,412       909,015       861,122          
    Real estate-home equity secured for personal purpose     182,901       179,150       177,446       179,282       176,855          
    Loans to individuals     26,794       26,430       27,200       27,749       27,331          
    Lease financings     249,061       251,514       249,540       247,183       240,474          
    Total loans and leases held for investment, net of deferred income     6,730,734       6,684,837       6,579,086       6,567,214       6,574,958          
    Less: Allowance for credit losses, loans and leases     (86,041 )     (85,745 )     (85,632 )     (85,387 )     (83,837 )        
    Net loans and leases held for investment   $ 6,644,693     $ 6,599,092     $ 6,493,454     $ 6,481,827     $ 6,491,121          
                                 
                                 
    Asset Quality Data (Period End)   09/30/24   06/30/24   03/31/24   12/31/23   09/30/23        
    Nonaccrual loans and leases, including nonaccrual loans held for sale*   $ 15,319     $ 16,200     $ 20,363     $ 20,527     $ 18,085          
    Accruing loans and leases 90 days or more past due     310       205       268       534       2,135          
    Total nonperforming loans and leases     15,629       16,405       20,631       21,061       20,220          
    Other real estate owned     20,915       20,007       19,220       19,032       19,916          
    Repossessed assets     79       149       167       –       –          
    Total nonperforming assets   $ 36,623     $ 36,561     $ 40,018     $ 40,093     $ 40,136          
    Nonaccrual loans and leases / Loans and leases held for investment     0.23 %     0.24 %     0.31 %     0.31 %     0.28 %        
    Nonperforming loans and leases / Loans and leases held for investment     0.23 %     0.25 %     0.31 %     0.32 %     0.31 %        
    Nonperforming assets / Total assets     0.45 %     0.47 %     0.52 %     0.52 %     0.51 %        
                                 
    Allowance for credit losses, loans and leases   $ 86,041     $ 85,745     $ 85,632     $ 85,387     $ 83,837          
    Allowance for credit losses, loans and leases / Loans and leases held for investment     1.28 %     1.28 %     1.30 %     1.30 %     1.28 %        
    Allowance for credit losses, loans and leases / Nonaccrual loans and leases     561.66 %     529.29 %     420.53 %     415.97 %     463.57 %        
    Allowance for credit losses, loans and leases / Nonperforming loans and leases     550.52 %     522.68 %     415.06 %     405.43 %     414.62 %        
    *Includes a $5.8 million loan held for sale at September 30, 2023.                            
                                 
        For the three months ended,   For the nine months ended,
        09/30/24   06/30/24   03/31/24   12/31/23   09/30/23   09/30/24   09/30/23
    Net loan and lease charge-offs   $ 820     $ 809     $ 1,406     $ 1,074     $ 969     $ 3,035     $ 4,323  
    Net loan and lease charge-offs (annualized)/Average loans and leases     0.05 %     0.05 %     0.09 %     0.06 %     0.06 %     0.06 %     0.09 %
                                 
    Univest Financial Corporation  
    Consolidated Selected Financial Data (Unaudited)  
    September 30, 2024  
    (Dollars in thousands, except per share data)                              
        For the three months ended,   For the nine months ended,  
    For the period:   09/30/24   06/30/24   03/31/24   12/31/23   09/30/23   09/30/24   09/30/23  
    Interest income   $ 106,438   $ 99,832   $ 98,609   $ 101,232   $ 97,106   $ 304,879   $ 270,498  
    Interest expense     53,234     48,805     47,142     48,472     43,516     149,181     103,261  
         Net interest income     53,204     51,027     51,467     52,760     53,590     155,698     167,237  
    Provision for credit losses     1,414     707     1,432     1,931     2,024     3,553     8,839  
    Net interest income after provision for credit losses     51,790     50,320     50,035     50,829     51,566     152,145     158,398  
    Noninterest income:                              
         Trust fee income     2,110     2,008     2,108     1,943     1,910     6,226     5,789  
         Service charges on deposit accounts     2,037     1,982     1,871     1,960     1,816     5,890     5,088  
         Investment advisory commission and fee income     5,319     5,238     5,194     4,561     4,843     15,751     14,303  
         Insurance commission and fee income     5,238     5,167     7,201     4,596     4,852     17,606     16,447  
         Other service fee income     1,815     3,044     6,415     2,967     3,020     11,274     9,414  
         Bank owned life insurance income     921     1,086     842     823     806     2,849     2,362  
         Net gain on sales of investment securities     18     –     –     –     –     18     –  
         Net gain on mortgage banking activities     1,296     1,710     939     809     1,216     3,945     2,880  
         Other income     1,396     745     1,025     961     228     3,166     1,921  
    Total noninterest income     20,150     20,980     25,595     18,620     18,691     66,725     58,204  
    Noninterest expense:                              
    Salaries, benefits and commissions     30,702     30,187     31,338     29,321     29,978     92,227     90,867  
    Net occupancy     2,723     2,679     2,872     2,751     2,594     8,274     7,935  
    Equipment     1,107     1,088     1,111     1,066     1,087     3,306     3,066  
    Data processing     4,154     4,161     4,495     4,444     4,189     12,810     12,355  
    Professional fees     1,579     1,466     1,688     1,768     1,763     4,733     5,373  
    Marketing and advertising     490     715     416     632     555     1,621     1,548  
    Deposit insurance premiums     1,097     1,098     1,135     1,350     1,258     3,330     3,475  
    Intangible expenses     164     188     187     212     220     539     726  
    Restructuring charges     –     –     –     189     –     –     1,330  
    Other expense     6,536     7,126     6,832     7,313     7,344     20,494     21,641  
    Total noninterest expense     48,552     48,708     50,074     49,046     48,988     147,334     148,316  
    Income before taxes     23,388     22,592     25,556     20,403     21,269     71,536     68,286  
    Income tax expense     4,810     4,485     5,251     4,149     4,253     14,546     13,436  
    Net income   $ 18,578   $ 18,107   $ 20,305   $ 16,254   $ 17,016   $ 56,990   $ 54,850  
    Net income per share:                              
         Basic   $ 0.64   $ 0.62   $ 0.69   $ 0.55   $ 0.58   $ 1.95   $ 1.86  
         Diluted   $ 0.63   $ 0.62   $ 0.69   $ 0.55   $ 0.58   $ 1.94   $ 1.86  
    Dividends declared per share   $ 0.21   $ 0.21   $ 0.21   $ 0.21   $ 0.21   $ 0.63   $ 0.63  
    Weighted average shares outstanding     29,132,948     29,246,977     29,413,999     29,500,147     29,479,066     29,264,161     29,410,852  
    Period end shares outstanding     29,081,108     29,190,640     29,337,919     29,511,721     29,508,128     29,081,108     29,508,128  
                                   
    Univest Financial Corporation
    Consolidated Selected Financial Data (Unaudited)
    September 30, 2024
                               
      For the three months ended,   For the nine months ended,
    Profitability Ratios (annualized) 09/30/24   06/30/24   03/31/24   12/31/23   09/30/23   09/30/24   09/30/23
                               
    Return on average assets   0.92 %     0.94 %     1.06 %     0.82 %     0.88 %     0.97 %     0.98 %
    Return on average assets, excluding restructuring   0.92 %     0.94 %     1.06 %     0.83 %     0.88 %     0.97 %     1.00 %
    charges (1)                          
    Return on average shareholders’ equity   8.55 %     8.62 %     9.69 %     7.91 %     8.32 %     8.95 %     9.14 %
    Return on average shareholders’ equity, excluding   8.55 %     8.62 %     9.69 %     7.99 %     8.32 %     8.95 %     9.31 %
    restructuring charges (1)                          
    Return on average tangible common equity (1)(3)   10.84 %     11.01 %     12.38 %     10.23 %     10.77 %     11.40 %     11.87 %
    Return on average tangible common equity, excluding   10.84 %     11.01 %     12.38 %     10.32 %     10.77 %     11.40 %     12.10 %
    restructuring charges (1)(3)                          
    Net interest margin (FTE)   2.82 %     2.84 %     2.88 %     2.84 %     2.96 %     2.85 %     3.22 %
    Efficiency ratio (2)   65.7 %     67.1 %     64.6 %     68.3 %     67.3 %     65.8 %     65.3 %
    Efficiency ratio, excluding restructuring charges (1)(2)   65.7 %     67.1 %     64.6 %     68.0 %     67.3 %     65.8 %     64.7 %
                               
    Capitalization Ratios                          
                               
    Dividends declared to net income   33.0 %     33.9 %     30.5 %     38.1 %     36.4 %     32.4 %     33.8 %
    Shareholders’ equity to assets (Period End)   10.69 %     10.87 %     10.89 %     10.79 %     10.31 %     10.69 %     10.31 %
    Tangible common equity to tangible assets (1)   8.71 %     8.81 %     8.80 %     8.70 %     8.22 %     8.71 %     8.22 %
    Common equity book value per share $ 30.16     $ 29.26     $ 28.76     $ 28.44     $ 27.36     $ 30.16     $ 27.36  
    Tangible common equity book value per share (1) $ 24.05     $ 23.17     $ 22.70     $ 22.41     $ 21.32     $ 24.05     $ 21.32  
                               
    Regulatory Capital Ratios (Period End)                          
    Tier 1 leverage ratio   9.53 %     9.74 %     9.65 %     9.36 %     9.43 %     9.53 %     9.43 %
    Common equity tier 1 risk-based capital ratio   10.88 %     10.72 %     10.71 %     10.58 %     10.32 %     10.88 %     10.32 %
    Tier 1 risk-based capital ratio   10.88 %     10.72 %     10.71 %     10.58 %     10.32 %     10.88 %     10.32 %
    Total risk-based capital ratio   14.27 %     14.09 %     14.11 %     13.90 %     13.58 %     14.27 %     13.58 %
                               
    (1) Non-GAAP metric. A reconciliation of this and other non-GAAP to GAAP performance measures is included below.
    (2) Noninterest expense to net interest income before loan loss provision plus noninterest income adjusted for tax equivalent income.
    (3) Net income before amortization of intangibles to average tangible common equity.
                               
    Univest Financial Corporation  
    Average Balances and Interest Rates (Unaudited)  
      For the Three Months Ended,  
    Tax Equivalent Basis September 30, 2024   June 30, 2024  
      Average Income/ Average   Average Income/ Average  
    (Dollars in thousands) Balance Expense Rate   Balance Expense Rate  
    Assets:                
    Interest-earning deposits with other banks $ 270,724   $ 3,624 5.33 % $ 84,546   $ 1,108 5.27 %
    Obligations of state and political subdivisions*   1,283     7 2.17     1,269     7 2.22  
    Other debt and equity securities   492,051     3,706 3.00     491,871     3,741 3.06  
    Federal Home Loan Bank, Federal Reserve Bank and other stock   38,769     742 7.61     37,286     700 7.55  
    Total interest-earning deposits, investments and other interest-earning assets   802,827     8,079 4.00     614,972     5,556 3.63  
                     
    Commercial, financial, and agricultural loans   997,465     18,459 7.36     983,615     17,447 7.13  
    Real estate—commercial and construction loans   3,592,556     52,672 5.83     3,549,206     50,577 5.73  
    Real estate—residential loans   1,692,361     21,127 4.97     1,660,489     20,413 4.94  
    Loans to individuals   26,651     549 8.20     26,821     542 8.13  
    Tax-exempt loans and leases   232,159     2,565 4.40     230,495     2,476 4.32  
    Lease financings   189,599     3,275 6.87     189,910     3,105 6.58  
         Gross loans and leases   6,730,791     98,647 5.83     6,640,536     94,560 5.73  
    Total interest-earning assets   7,533,618     106,726 5.64     7,255,508     100,116 5.55  
    Cash and due from banks   62,902           56,387        
    Allowance for credit losses, loans and leases   (86,517 )         (86,293 )      
    Premises and equipment, net   47,989           48,725        
    Operating lease right-of-use assets   29,620           30,344        
    Other assets   417,653           416,869        
          Total assets $ 8,005,265         $ 7,721,540        
                     
    Liabilities:                
    Interest-bearing checking deposits $ 1,215,166   $ 8,824 2.89 % $ 1,094,150   $ 7,311 2.69 %
    Money market savings   1,849,628     21,213 4.56     1,692,759     19,131 4.55  
    Regular savings   727,395     878 0.48     759,960     929 0.49  
    Time deposits   1,491,560     17,255 4.60     1,422,113     16,134 4.56  
         Total time and interest-bearing deposits   5,283,749     48,170 3.63     4,968,982     43,505 3.52  
                     
    Short-term borrowings   8,210     1 0.05     29,506     242 2.30  
    Long-term debt   247,826     2,781 4.46     250,000     2,777 4.47  
    Subordinated notes   149,068     2,282 6.09     148,943     2,281 6.16  
         Total borrowings   405,104     5,064 4.97     428,449     5,300 4.98  
         Total interest-bearing liabilities   5,688,853     53,234 3.72     5,397,431     48,805 3.64  
    Noninterest-bearing deposits   1,357,575           1,384,770        
    Operating lease liabilities   32,627           33,382        
    Accrued expenses and other liabilities   61,804           61,385        
         Total liabilities   7,140,859           6,876,968        
    Total interest-bearing liabilities and noninterest-bearing deposits (“Cost of Funds”)   7,046,428     3.01     6,782,201     2.89  
                     
    Shareholders’ Equity:                
    Common stock   157,784           157,784        
    Additional paid-in capital   300,565           299,426        
    Retained earnings and other equity   406,057           387,362        
         Total shareholders’ equity   864,406           844,572        
         Total liabilities and shareholders’ equity $ 8,005,265         $ 7,721,540        
    Net interest income   $ 53,492       $ 51,311    
                     
    Net interest spread     1.92       1.91  
    Effect of net interest-free funding sources     0.90       0.93  
    Net interest margin     2.82 %     2.84 %
    Ratio of average interest-earning assets to average interest-bearing liabilities   132.43 %         134.43 %      
                     
    * Obligations of states and political subdivisions are tax-exempt earning assets.          
    Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
    Net interest income includes net deferred costs amortization of $897 thousand and $698 thousand for the three months ended September 30, 2024 and June 30, 2024,, respectively.
    Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the three months ended September 30, 2024 and June 30, 2024 have been calculated using the Corporation’s federal applicable rate of 21.0%.  
                     
    Univest Financial Corporation  
    Average Balances and Interest Rates (Unaudited)  
      For the Three Months Ended September 30,  
    Tax Equivalent Basis 2024   2023  
      Average Income/ Average   Average Income/ Average  
    (Dollars in thousands) Balance Expense Rate   Balance Expense Rate  
    Assets:                
    Interest-earning deposits with other banks $ 270,724   $ 3,624 5.33 % $ 143,109   $ 1,865 5.17 %
    Obligations of state and political subdivisions*   1,283     7 2.17     2,281     16 2.78  
    Other debt and equity securities   492,051     3,706 3.00     504,060     3,540 2.79  
    Federal Home Loan Bank, Federal Reserve Bank and other stock   38,769     742 7.61     40,406     712 6.99  
    Total interest-earning deposits, investments and other interest-earning assets   802,827     8,079 4.00     689,856     6,133 3.53  
                     
    Commercial, financial, and agricultural loans   997,465     18,459 7.36     995,355     17,545 6.99  
    Real estate—commercial and construction loans   3,592,556     52,672 5.83     3,552,709     49,548 5.53  
    Real estate—residential loans   1,692,361     21,127 4.97     1,543,360     18,270 4.70  
    Loans to individuals   26,651     549 8.20     26,538     525 7.85  
    Tax-exempt loans and leases   232,159     2,565 4.40     234,685     2,430 4.11  
    Lease financings   189,599     3,275 6.87     184,522     2,928 6.30  
         Gross loans and leases   6,730,791     98,647 5.83     6,537,169     91,246 5.54  
    Total interest-earning assets   7,533,618     106,726 5.64     7,227,025     97,379 5.35  
    Cash and due from banks   62,902           62,673        
    Allowance for credit losses, loans and leases   (86,517 )         (83,827 )      
    Premises and equipment, net   47,989           52,071        
    Operating lease right-of-use assets   29,620           31,647        
    Other assets   417,653           404,394        
          Total assets $ 8,005,265         $ 7,693,983        
                     
    Liabilities:                
    Interest-bearing checking deposits $ 1,215,166   $ 8,824 2.89 % $ 1,070,063   $ 6,703 2.49 %
    Money market savings   1,849,628     21,213 4.56     1,645,210     17,850 4.30  
    Regular savings   727,395     878 0.48     828,672     861 0.41  
    Time deposits   1,491,560     17,255 4.60     1,140,622     11,668 4.06  
         Total time and interest-bearing deposits   5,283,749     48,170 3.63     4,684,567     37,082 3.14  
                     
    Short-term borrowings   8,210     1 0.05     93,028     1,117 4.76  
    Long-term debt   247,826     2,781 4.46     320,000     3,036 3.76  
    Subordinated notes   149,068     2,282 6.09     148,568     2,281 6.09  
         Total borrowings   405,104     5,064 4.97     561,596     6,434 4.55  
         Total interest-bearing liabilities   5,688,853     53,234 3.72     5,246,163     43,516 3.29  
    Noninterest-bearing deposits   1,357,575           1,538,143        
    Operating lease liabilities   32,627           34,788        
    Accrued expenses and other liabilities   61,804           63,374        
         Total liabilities   7,140,859           6,882,468        
    Total interest-bearing liabilities and noninterest-bearing deposits (“Cost of Funds”)   7,046,428     3.01     6,784,306     2.54  
                     
    Shareholders’ Equity:                
    Common stock   157,784           157,784        
    Additional paid-in capital   300,565           299,575        
    Retained earnings and other equity   406,057           354,156        
         Total shareholders’ equity   864,406           811,515        
         Total liabilities and shareholders’ equity $ 8,005,265         $ 7,693,983        
    Net interest income   $ 53,492       $ 53,863    
                     
    Net interest spread     1.92       2.06  
    Effect of net interest-free funding sources     0.90       0.90  
    Net interest margin     2.82 %     2.96 %
    Ratio of average interest-earning assets to average interest-bearing liabilities   132.43 %         137.76 %      
                     
    * Obligations of states and political subdivisions are tax-exempt earning assets.          
    Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
    Net interest income includes net deferred costs amortization of $897 thousand and $563 thousand for the three months ended September 30, 2024 and 2023, respectively.
    Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the three months ended September 30, 2024 and 2023 have been calculated using the Corporation’s federal applicable rate of 21.0%.
                     
    Univest Financial Corporation  
    Average Balances and Interest Rates (Unaudited)  
      For the Nine Months Ended September 30,  
    Tax Equivalent Basis 2024   2023  
      Average Income/ Average   Average Income/ Average  
    (Dollars in thousands) Balance Expense Rate   Balance Expense Rate  
    Assets:                
    Interest-earning deposits with other banks $ 159,114   $ 6,341 5.32 % $ 79,630   $ 2,856 4.80 %
    Obligations of state and political subdivisions*   1,500     26 2.32     2,284     48 2.81  
    Other debt and equity securities   494,310     11,094 3.00     511,420     10,547 2.76  
    Federal Home Loan Bank, Federal Reserve Bank and other stock   38,392     2,166 7.54     39,664     2,102 7.09  
    Total interest-earning deposits, investments and other interest-earning assets   693,316     19,627 3.78     632,998     15,553 3.29  
                     
    Commercial, financial, and agricultural loans   972,003     52,429 7.21     997,590     50,002 6.70  
    Real estate—commercial and construction loans   3,572,375     153,890 5.75     3,447,551     137,929 5.35  
    Real estate—residential loans   1,657,142     61,095 4.92     1,478,871     51,216 4.63  
    Loans to individuals   26,928     1,639 8.13     26,859     1,453 7.23  
    Tax-exempt loans and leases   231,679     7,505 4.33     233,211     7,159 4.10  
    Lease financings   189,733     9,549 6.72     175,416     8,128 6.20  
         Gross loans and leases   6,649,860     286,107 5.75     6,359,498     255,887 5.38  
    Total interest-earning assets   7,343,176     305,734 5.56     6,992,496     271,440 5.19  
    Cash and due from banks   58,070           59,811        
    Allowance for credit losses, loans and leases   (86,435 )         (81,829 )      
    Premises and equipment, net   49,098           52,067        
    Operating lease right-of-use assets   30,359           31,384        
    Other assets   414,246           399,141        
          Total assets $ 7,808,514         $ 7,453,070        
                     
    Liabilities:                
    Interest-bearing checking deposits $ 1,163,526   $ 24,353 2.80 % $ 980,725   $ 15,259 2.08 %
    Money market savings   1,749,592     59,564 4.55     1,532,318     43,020 3.75  
    Regular savings   752,336     2,712 0.48     900,448     2,375 0.35  
    Time deposits   1,384,576     47,019 4.54     845,635     22,231 3.51  
         Total time and interest-bearing deposits   5,050,030     133,648 3.54     4,259,126     82,885 2.60  
                     
    Short-term borrowings   15,919     248 2.08     195,606     7,094 4.85  
    Long-term debt   263,380     8,441 4.28     245,366     6,438 3.51  
    Subordinated notes   148,944     6,844 6.14     148,444     6,844 6.16  
         Total borrowings   428,243     15,533 4.85     589,416     20,376 4.62  
         Total interest-bearing liabilities   5,478,273     149,181 3.64     4,848,542     103,261 2.85  
    Noninterest-bearing deposits   1,383,707           1,709,533        
    Operating lease liabilities   33,389           34,548        
    Accrued expenses and other liabilities   62,586           57,906        
         Total liabilities   6,957,955           6,650,529        
    Total interest-bearing liabilities and noninterest-bearing deposits (“Cost of Funds”)   6,861,980     2.90     6,558,075     2.11  
                     
    Shareholders’ Equity:                
    Common stock   157,784           157,784        
    Additional paid-in capital   300,224           299,550        
    Retained earnings and other equity   392,551           345,207        
         Total shareholders’ equity   850,559           802,541        
         Total liabilities and shareholders’ equity $ 7,808,514         $ 7,453,070        
    Net interest income   $ 156,553       $ 168,179    
                     
    Net interest spread     1.92       2.34  
    Effect of net interest-free funding sources     0.93       0.88  
    Net interest margin     2.85 %     3.22 %
    Ratio of average interest-earning assets to average interest-bearing liabilities   134.04 %         144.22 %      
                     
    * Obligations of states and political subdivisions are tax-exempt earning assets.          
    Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
    Net interest income includes net deferred costs amortization of $2.0 million and $1.7 million for the nine months ended September 30, 2024 and 2023, respectively.  
    Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the nine months ended September 30, 2024 and 2023 have been calculated using the Corporation’s federal applicable rate of 21.0%.  
                     
    Univest Financial Corporation
    Loan Portfolio Overview (Unaudited)
    September 30, 2024
           
    (Dollars in thousands)      
    Industry Description Total Outstanding Balance   % of Commercial Loan Portfolio
    CRE – Retail $ 458,230   8.6 %
    Animal Production   384,554   7.2 %
    CRE – Multi-family   340,181   6.4 %
    CRE – 1-4 Family Residential Investment   295,454   5.6 %
    CRE – Office   294,508   5.6 %
    CRE – Industrial / Warehouse   254,019   4.8 %
    Hotels & Motels (Accommodation)   186,130   3.5 %
    Specialty Trade Contractors   180,486   3.4 %
    Nursing and Residential Care Facilities   167,467   3.2 %
    Education   167,282   3.2 %
    Motor Vehicle and Parts Dealers   129,799   2.4 %
    Repair and Maintenance   127,927   2.4 %
    Merchant Wholesalers, Durable Goods   125,009   2.4 %
    Homebuilding (tract developers, remodelers)   120,040   2.2 %
    CRE – Mixed-Use – Residential   110,137   2.1 %
    Crop Production   104,343   2.0 %
    Wood Product Manufacturing   93,505   1.8 %
    Food Services and Drinking Places   88,178   1.7 %
    Real Estate Lenders, Secondary Market Financing   85,171   1.6 %
    Rental and Leasing Services   79,876   1.5 %
    Religious Organizations, Advocacy Groups   73,802   1.4 %
    Fabricated Metal Product Manufacturing   72,794   1.4 %
    CRE – Mixed-Use – Commercial   72,268   1.4 %
    Administrative and Support Services   71,787   1.4 %
    Personal and Laundry Services   71,184   1.3 %
    Merchant Wholesalers, Nondurable Goods   69,363   1.3 %
    Amusement, Gambling, and Recreation Industries   69,052   1.3 %
    Miniwarehouse / Self-Storage   65,176   1.2 %
    Food Manufacturing   61,472   1.1 %
    Truck Transportation   52,570   1.0 %
    Industries with >$50 million in outstandings $ 4,471,764   84.3 % 
    Industries with <$50 million in outstandings $ 830,652   15.7 % 
    Total Commercial Loans $ 5,302,416   100.0 % 
           
           
    Consumer Loans and Lease Financings Total Outstanding Balance    
    Real Estate-Residential Secured for Personal Purpose   969,562    
    Real Estate-Home Equity Secured for Personal Purpose   182,901    
    Loans to Individuals   26,794    
    Lease Financings   249,061    
    Total – Consumer Loans and Lease Financings $ 1,428,318    
           
    Total $ 6,730,734    
           
    Univest Financial Corporation
    Non-GAAP Reconciliation
    September 30, 2024
     
    Non-GAAP to GAAP Reconciliation
    Management uses non-GAAP measures in its analysis of the Corporation’s performance. These measures should not be considered a substitute for GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of the non-GAAP financial measures, which exclude the impact of the specified items, provides useful supplemental information that is essential to a proper understanding of the financial results of the Corporation. See the table below for additional information on non-GAAP measures used throughout this earnings release.
                                     
            As of or for the three months ended,   As of or for the nine months ended,
    (Dollars in thousands) 09/30/24   06/30/24   03/31/24   12/31/23   09/30/23   09/30/24   09/30/23
    Restructuring charges (a)     $ –     $ –     $ –     $ 189     $ –     $ –     $ 1,330  
    Tax effect of restructuring charges       –       –       –       (40 )     –       –       (279 )
    Restructuring charges, net of tax     $ –     $ –     $ –     $ 149     $ –     $ –     $ 1,051  
                                     
    Net income $ 18,578     $ 18,107     $ 20,305     $ 16,254     $ 17,016     $ 56,990     $ 54,850  
    Amortization of intangibles, net of tax   130       149       148       167       174       426       574  
    Net income before amortization of intangibles $ 18,708     $ 18,256     $ 20,453     $ 16,421     $ 17,190     $ 57,416     $ 55,424  
                                     
    Shareholders’ equity $ 877,071     $ 854,137     $ 843,669     $ 839,208     $ 807,198     $ 877,071     $ 807,198  
    Goodwill   (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )
    Other intangibles (b)     (2,147 )     (2,157 )     (2,273 )     (2,405 )     (2,558 )     (2,147 )     (2,558 )
    Tangible common equity $ 699,414     $ 676,470     $ 665,886     $ 661,293     $ 629,130     $ 699,414     $ 629,130  
                                     
    Total assets $ 8,205,737     $ 7,855,446     $ 7,746,568     $ 7,780,628     $ 7,828,066     $ 8,205,737     $ 7,828,066  
    Goodwill   (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )
    Other intangibles (b)     (2,147 )     (2,157 )     (2,273 )     (2,405 )     (2,558 )     (2,147 )     (2,558 )
    Tangible assets $ 8,028,080     $ 7,677,779     $ 7,568,785     $ 7,602,713     $ 7,649,998     $ 8,028,080     $ 7,649,998  
                                     
    Average shareholders’ equity $ 864,406     $ 844,572     $ 842,546     $ 814,941     $ 811,515     $ 850,559     $ 802,541  
    Average goodwill   (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )
    Average other intangibles (b)     (2,086 )     (2,222 )     (2,318 )     (2,477 )     (2,680 )     (2,209 )     (2,913 )
    Average tangible common equity $ 686,810     $ 666,840     $ 664,718     $ 636,954     $ 633,325     $ 672,840     $ 624,118  
                                     
    (a) Associated with branch optimization and headcount rationlization expense management strategies
    (b) Amount does not include mortgage servicing rights
                                     

    The MIL Network –

  • MIL-OSI: Greystone Housing Impact Investors LP Schedules Third Quarter 2024 Earnings Conference Call for Wednesday, November 6, 2024 at 4:30 p.m. Eastern Time

    Source: GlobeNewswire (MIL-OSI)

    OMAHA, Neb., Oct. 23, 2024 (GLOBE NEWSWIRE) — Greystone Housing Impact Investors LP (NYSE: GHI) (the “Partnership”) announced today that it will host a conference call for investors on Wednesday, November 6, 2024 at 4:30 p.m. Eastern Time to discuss the Partnership’s Third Quarter 2024 results.

    For those interested in participating in the question-and-answer session, participants may dial-in toll free at (877) 407-8813. International participants may dial-in at +1 (201) 689-8521. No pin or code number is needed.

    The call is also being webcast live in listen-only mode. The webcast can be accessed via the Partnership’s website under “Events & Presentations” or via the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=6F6i7Etd

    It is recommended that you join 15 minutes before the conference call begins (although you may register, dial-in or access the webcast at any time during the call).

    A recorded replay of the webcast will be made available on the Partnership’s Investor Relations website at http://www.ghiinvestors.com.

    About Greystone Housing Impact Investors LP
    Greystone Housing Impact Investors LP was formed in 1998 under the Delaware Revised Uniform Limited Partnership Act for the primary purpose of acquiring, holding, selling and otherwise dealing with a portfolio of mortgage revenue bonds which have been issued to provide construction and/or permanent financing for affordable multifamily, seniors and student housing properties. The Partnership is pursuing a business strategy of acquiring additional mortgage revenue bonds and other investments on a leveraged basis. The Partnership expects and believes the interest earned on these mortgage revenue bonds is excludable from gross income for federal income tax purposes. The Partnership seeks to achieve its investment growth strategy by investing in additional mortgage revenue bonds and other investments as permitted by its Second Amended and Restated Limited Partnership Agreement, dated December 5, 2022, taking advantage of attractive financing structures available in the securities market, and entering into interest rate risk management instruments. Greystone Housing Impact Investors LP press releases are available at www.ghiinvestors.com.

    Safe Harbor Statement

    Information contained in this press release contains “forward-looking statements,” which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, but are not limited to, risks involving current maturities of our financing arrangements and our ability to renew or refinance such maturities, fluctuations in short-term interest rates, collateral valuations, mortgage revenue bond investment valuations and overall economic and credit market conditions. For a further list and description of such risks, see the reports and other filings made by the Partnership with the Securities and Exchange Commission, including but not limited to, its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Readers are urged to consider these factors carefully in evaluating the forward-looking statements. The Partnership disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

    CONTACT:
    Ken Rogozinski
    Chief Executive Officer
    402-952-1235

    The MIL Network –

  • MIL-OSI: Origin Bancorp, Inc. Announces Declaration of Quarterly Cash Dividend

    Source: GlobeNewswire (MIL-OSI)

    RUSTON, La., Oct. 23, 2024 (GLOBE NEWSWIRE) — Origin Bancorp, Inc. (NYSE: OBK) (“Origin”), the holding company for Origin Bank, today announced that on October 23, 2024, its board of directors declared a quarterly cash dividend of $0.15 per share of its common stock. The cash dividend will be paid on November 29, 2024, to stockholders of record as of the close of business on November 15, 2024.

    About Origin Bancorp, Inc.

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

    Forward-Looking Statements

    When used in filings by Origin Bancorp, Inc. (the “Company”) with the Securities and Exchange Commission (the “SEC”), in the Company’s press releases or other public or stockholder communications, and in oral statements made with the approval of an authorized executive officer, the words or phrases “anticipates,” “believes,” “estimates,” “expects,” “foresees,” “intends,” “plans,” “projects,” and similar expressions or future or conditional verbs such as “could,” “may,” “might,” “should,” “will,” and “would” or variations of such terms are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. Factors that might cause such a difference include among other things: the expected payment date of its quarterly cash dividend; changes in economic conditions; other legislative changes generally; changes in policies by regulatory agencies; fluctuations in interest rates; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses; the Company’s ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in the Company’s market area; competition; and changes in management’s business strategies and other factors set forth in the Company’s filings with the SEC.

    The Company does not undertake and specifically declines any obligation – to update or revise any forward-looking statements to reflect events or circumstances that occur after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

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

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

    The MIL Network –

  • MIL-OSI: Juniata Valley Financial Corp. Announces Results for the Quarter Ended September 30, 2024

    Source: GlobeNewswire (MIL-OSI)

    Mifflintown, PA, Oct. 23, 2024 (GLOBE NEWSWIRE) — Juniata Valley Financial Corp. (OTCQX:JUVF) (“Juniata”) announced net income for the three months ended September 30, 2024 of $1.6 million compared to net income of $1.8 million for the three months ended September 30, 2023. Earnings per share, basic and diluted, was $0.33 during the three months ended September 30, 2024 compared to $0.36 during the three months ended September 30, 2023. Net income was $4.7 million for the nine months ended September 30, 2024 compared to $4.9 million for the nine months ended September 30, 2023. Earnings per share, basic and diluted, was $0.95 for the nine months ended September 30, 2024 compared to $0.98 for the nine months ended September 30, 2023.

    President’s Message

    President and Chief Executive Officer, Marcie A. Barber stated, “We are pleased to report solid third quarter net income. These results were accomplished, in part, through disciplined pricing of both loans and deposits. Efforts to contain funding costs, coupled with loan growth, resulted in a 2.0% increase in net interest income compared to the corresponding 2023 quarter despite continued competition for deposits. With the reduction of the Fed Funds rate by 50 basis points in mid-September and anticipated future rate cuts, we remain optimistic that net interest margin compression appears to have abated. Additionally, our focus on fee income resulted in an increase of 11.1% in noninterest income compared to fee income for the same quarter in 2023. Asset quality remains strong with delinquent and nonperforming loans comprising only 0.2% of total loans, unchanged from the previous quarter. We are continually working toward expanding loan and deposit relationships outside of our branch footprint while optimizing our branch network to provide outstanding customer service through improvement in efficiencies.”   

    Financial Results Year-to-Date

    Annualized return on average assets for the nine months ended September 30, 2024, was 0.73%, a decrease of 7.6% compared to the annualized return on average assets of 0.79% for the nine months ended September 30, 2023. Annualized return on average equity for the nine months ended September 30, 2024 was 14.70%, a decrease of 19.5% compared to the annualized return on average equity of 18.25% for the nine months ended September 30, 2023.

    Net interest income was $17.1 million during both the nine months ended September 30, 2024 and 2023. Average earning assets increased $21.1 million, or 2.5%, to $856.2 million, during the nine months ended September 30, 2024, compared to the same period in 2023, due primarily to an increase of $39.9 million, or 8.0%, in average loans. The increase in average loans was partially offset by a decline of $20.6 million, or 6.2%, in average investment securities as principal paydowns on the mortgage-backed securities portfolio were used to fund loan growth rather than being reinvested into the securities portfolio. Average interest bearing liabilities increased by $19.5 million, or 3.3%, during the nine months ended September 30, 2024 compared to the comparable 2023 period, due to growth in average time deposits, repurchase agreements and short-term borrowings, with this growth partially funding loan growth. The yield on earning assets increased 42 basis points, to 4.33%, due to a 51 basis point increase in the yield on average loans in the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023, while the cost to fund interest earning assets with interest bearing liabilities increased 68 basis points, to 2.31%. The net interest margin, on a fully tax equivalent basis, decreased from 2.77% during the nine months ended September 30, 2023, to 2.70% during the nine months ended September 30, 2024.

    Juniata recorded a provision for credit losses of $471,000 for the nine months ended September 30, 2024 compared to a provision for credit losses of $411,000 for the nine months ended September 30, 2023.

    Non-interest income was $4.2 million during the nine months ended September 30, 2024 compared to $3.9 million during the nine months ended September 30, 2023, an increase of 8.4%. Most significantly impacting the comparative nine month periods were increases of $282,000 in customer service fees, $144,000 in the change in value of equity securities and $115,000 in fees derived from loan activity, the latter primarily due to increases in title insurance commissions and guidance line and service fees. These increases were partially offset by a $161,000 decrease in life insurance proceeds as no proceeds were recorded in the 2024 period.

    Non-interest expense was $15.4 million during the nine months ended September 30, 2024 compared to $15.0 million during the nine months ended September 30, 2023, an increase of 2.6%. Most significantly impacting non-interest expense in the comparative nine month periods were increases of $356,000 in salary expense due to annual salary increases and overtime pay from the core conversion in the first quarter of 2024, as well as increases of $124,000 in equipment expense and $196,000 in professional fees, primarily due to an increase in audit expenses. These increases were partially offset by decreases of $180,000 in employee benefits expense, due to a decline in medical claims expense, and $227,000 recorded in the 2023 period due to the merger and acquisition expense incurred in connection with the Path Valley branch acquisition.

    An income tax provision of $767,000 was recorded during the nine months ended September 30, 2024 compared to an income tax provision of $708,000 recorded during the nine months ended September 30, 2023. Juniata qualifies for a federal tax credit for investments in low-income housing partnerships. The tax credit decreased from $284,000 in the nine months ended September 30, 2023 to $247,000 in the nine months ended September 30, 2024 due to the completion of the amortization period for one of Juniata’s low-income housing partnership investments in January 2023.

    Financial Results for the Quarter

    Annualized return on average assets for the three months ended September 30, 2024 was 0.76%, a decrease of 10.6%, compared to 0.85% for the three months ended September 30, 2023. Annualized return on average equity for the three months ended September 30, 2024 was 14.72%, a decrease of 25.7%, compared to 19.81% for the three months ended September 30, 2023.

    Net interest income was $5.8 million for the three months ended September 30, 2024 compared to $5.7 million for the three months ended September 30, 2023. Average earning assets increased $11.2 million, or 1.3%, to $853.1 million during the three months ended September 30, 2024, compared to the same period in 2023, primarily due to an increase of $30.2 million, or 5.9%, in average loans, partially offset by a decline of $19.9 million, or 6.1%, in average investment securities due primarily to principal paydowns on the mortgage-backed securities portfolio. Average interest bearing liabilities increased by $7.6 million, or 1.3%, compared to the corresponding 2023 period, primarily due to increases in average time deposits, repurchase agreements and short-term borrowings. The yield on earning assets increased 39 basis points, to 4.41%, during the three months ended September 30, 2024 compared to same period in 2023, while the cost to fund interest earning assets with interest bearing liabilities increased 51 basis points, to 2.38%. The net interest margin, on a fully tax equivalent basis, increased from 2.71% during the three months ended September 30, 2023, to 2.73% during the three months ended September 30, 2024.

    Juniata recorded a provision for credit losses of $232,000 for the three months ended September 30, 2024 compared to a provision for credit losses of $121,000 for the three months ended September 30, 2023. For the 2024 period, this increase was due primarily to an updated loss driver analysis for the allowance for credit losses calculation and not a result of deteriorated asset quality, which remains strong.

    Non-interest income was $1.4 million for the three months ended September 30, 2024, an increase of 11.1%, compared to $1.3 million for the three months ended September 30, 2023. Most significantly impacting non-interest income in the comparative three month periods were increases of $117,000 in customer service fees and $84,000 in the change in value of equity securities. Partially offsetting these increases in the comparative three month periods was a decrease of $35,000 in fees derived from loan activity primarily due to decreases in title insurance commissions and the derivative credit adjustment.

    Non-interest expense was $5.1 million for the three months ended September 30, 2024, compared to $4.8 million for the three months ended September 30, 2023, an increase of 7.2%. Most significantly impacting non-interest expense in the comparative three month periods was an increase of $126,000 in employee benefits expense, due primarily to an increase in medical claims expenses, as well as an increase of $86,000 in both equipment expenses and professional fees. These increases were partially offset by a decrease of $47,000 in the provision for unfunded commitments during the three months ended September 30, 2024 compared to the three months ended September 30, 2023.

    An income tax provision of $270,000 was recorded during the three months ended September 30, 2024 compared to an income tax provision of $310,000 recorded during the three months ended September 30, 2023.

    Financial Condition

    Total assets as of September 30, 2024 were $858.0 million, a decrease of $12.6 million, or 1.5%, compared to total assets of $870.6 million at December 31, 2023. Cash and cash equivalents decreased by $17.0 million, or 58.8%, as of September 30, 2024 compared to December 31, 2023, as cash was used primarily to fund the growth in total loans, which increased by $12.4 million, or 2.4% as of September 30, 2024 compared to year-end 2023. Total deposits increased by $3.9 million, or 0.5%, as of September 30, 2024 compared to December 31, 2023 while short-term borrowings and repurchase agreements decreased by $7.1 million, or 13.4%, as overnight borrowings replaced a 5-year FHLB advance that matured in May 2024, leading to the $15.0 million, or 75.0%, decline in long-term debt.

    Juniata maintained a strong liquidity position as of September 30, 2024, with additional borrowing capacity with the Federal Home Loan Bank of Pittsburgh of $242.5 million and $17.3 million in additional borrowing capacity from the Federal Reserve’s Discount Window. In addition, Juniata has access to brokered deposits through two third parties but had no brokered deposits outstanding as of September 30, 2024.

    Subsequent Event

    On October 15, 2024, the Board of Directors declared a cash dividend of $0.22 per share to shareholders of record on November 15, 2024, payable on November 29, 2024.

    Management considers subsequent events occurring after the statement of condition date for matters which may require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of a public company’s consolidated financial statements with the Securities and Exchange Commission. Accordingly, the financial information in this release is subject to change.

    The Juniata Valley Bank, the principal subsidiary of Juniata Valley Financial Corp., is headquartered in Mifflintown, Pennsylvania, with fifteen community offices located in Juniata, Mifflin, Perry, Franklin, McKean and Potter Counties. More information regarding Juniata Valley Financial Corp. and The Juniata Valley Bank can be found online at www.JVBonline.com. Juniata Valley Financial Corp. trades through the OTCQX Best Market under the symbol JUVF.

    Forward-Looking Information
    *This press release may contain “forward looking” information as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect the current views of Juniata’s management with respect to, among other things, future events and Juniata’s financial performance. When words such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or similar expressions are used in this release, Juniata is making forward-looking statements. Such information is based on Juniata’s current expectations, estimates and projections about future events and financial trends affecting the financial condition of its business, many of which, by their nature, are inherently uncertain and beyond the control of Juniata. These statements are not historical facts or guarantees of future performance, events or results and are subject to risks, assumptions and uncertainties that are difficult to predict. If one or more events related to these or other risks or uncertainties materializes, or if underlying assumptions prove to be incorrect, actual results may differ materially from this forward-looking information. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and many factors could affect future financial results. Juniata undertakes no obligation to publicly update or revise forward looking information, whether because of new or updated information, future events, or otherwise. For a more complete discussion of certain risks and uncertainties affecting Juniata, please see the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Forward-Looking Statements” set forth in the Juniata’s filings with the Securities and Exchange Commission.

    Financial Statements

    Juniata Valley Financial Corp. and Subsidiary
    Consolidated Statements of Financial Condition

                 
    (Dollars in thousands, except share data)      (Unaudited)       
        September 30, 2024   December 31, 2023
    ASSETS            
    Cash and due from banks   $ 6,152     $ 17,189  
    Interest bearing deposits with banks     5,783       11,741  
    Cash and cash equivalents     11,935       28,930  
                 
    Equity securities     1,139       1,073  
    Debt securities available for sale     66,299       67,564  
    Debt securities held to maturity (fair value $193,108 and $198,147, respectively)     193,762       200,644  
    Restricted investment in bank stock     1,885       1,707  
    Total loans     538,250       525,394  
    Less: Allowance for credit losses     (6,124 )     (5,677 )
    Total loans, net of allowance for credit losses     532,126       519,717  
    Premises and equipment, net     9,514       8,180  
    Bank owned life insurance and annuities     15,038       14,841  
    Investment in low income housing partnerships     912       1,154  
    Core deposit and other intangible assets     279       343  
    Goodwill     9,812       9,812  
    Mortgage servicing rights     76       83  
    Deferred tax asset     9,950       11,319  
    Accrued interest receivable and other assets     5,229       5,188  
    Total assets   $ 857,956     $ 870,555  
    LIABILITIES AND STOCKHOLDERS’ EQUITY              
    Liabilities:              
    Deposits:              
    Non-interest bearing   $ 197,474     $ 197,027  
    Interest bearing     555,440       552,018  
    Total deposits     752,914       749,045  
                 
    Short-term borrowings and repurchase agreements     45,721       52,810  
    Long-term debt     5,000       20,000  
    Other interest bearing liabilities     823       951  
    Accrued interest payable and other liabilities     6,956       7,612  
    Total liabilities     811,414       830,418  
    Commitments and contingent liabilities            
    Stockholders’ Equity:              
    Preferred stock, no par value: Authorized – 500,000 shares, none issued     —       —  
    Common stock, par value $1.00 per share: Authorized 20,000,000 shares; Issued – 5,151,279 shares at September 30, 2024 and December 31, 2023; Outstanding – 5,003,384 shares at September 30, 2024 and 4,991,129 shares at December 31, 2023     5,151       5,151  
    Surplus     24,860       24,924  
    Retained earnings     52,736       51,297  
    Accumulated other comprehensive loss     (33,809 )     (38,640 )
    Cost of common stock in Treasury: 147,895 shares at September 30, 2024; 160,150 shares at December 31, 2023     (2,396 )     (2,595 )
    Total stockholders’ equity     46,542       40,137  
    Total liabilities and stockholders’ equity   $ 857,956     $ 870,555  

    Juniata Valley Financial Corp. and Subsidiary
    Consolidated Statements of Income (Unaudited)

                             
        Three Months Ended   Nine Months Ended
    (Dollars in thousands, except share and per share data)   September 30,    September 30, 
           2024      2023    2024      2023 
    Interest income:                
    Loans, including fees   $ 7,979   $ 6,940     $ 23,224   $ 19,569  
    Taxable securities     1,421     1,525       4,341     4,684  
    Tax-exempt securities     30     36       89     109  
    Other interest income     24     24       116     69  
    Total interest income     9,454     8,525       27,770     24,431  
    Interest expense:                            
    Deposits     2,879     2,286       8,243     5,614  
    Short-term borrowings and repurchase agreements     741     431       2,151     1,314  
    Long-term debt     31     119       237     353  
    Other interest bearing liabilities     8     9       25     29  
    Total interest expense     3,659     2,845       10,656     7,310  
    Net interest income     5,795     5,680       17,114     17,121  
    Provision for credit losses     232     121       471     411  
    Net interest income after provision for credit losses     5,563     5,559       16,643     16,710  
    Non-interest income:                            
    Customer service fees     473     356       1,300     1,018  
    Debit card fee income     428     436       1,302     1,293  
    Earnings on bank-owned life insurance and annuities     60     57       174     167  
    Trust fees     108     123       359     381  
    Commissions from sales of non-deposit products     98     87       309     255  
    Fees derived from loan activity     101     136       445     330  
    Change in value of equity securities     70     (14 )     66     (78 )
    Gain from life insurance proceeds     —     —       —     161  
    Other non-interest income     107     120       265     366  
    Total non-interest income     1,445     1,301       4,220     3,893  
    Non-interest expense:                            
    Employee compensation expense     2,249     2,167       6,689     6,333  
    Employee benefits     555     429       1,733     1,913  
    Occupancy     320     312       979     964  
    Equipment     248     162       617     493  
    Data processing expense     684     699       2,162     2,226  
    Professional fees     297     211       830     634  
    Taxes, other than income     60     (7 )     154     158  
    FDIC Insurance premiums     141     157       435     352  
    Amortization of intangible assets     22     25       64     56  
    Amortization of investment in low-income housing partnerships     81     81       242     273  
    Merger and acquisition expense     —     18       —     227  
    Other non-interest expense     444     505       1,453     1,344  
    Total non-interest expense     5,101     4,759       15,358     14,973  
    Income before income taxes     1,907     2,101       5,505     5,630  
    Income tax provision     270     310       767     708  
    Net income   $ 1,637   $ 1,791     $ 4,738   $ 4,922  
    Earnings per share                            
    Basic   $ 0.33   $ 0.36     $ 0.95   $ 0.98  
    Diluted   $ 0.33   $ 0.36     $ 0.95   $ 0.98  

    The MIL Network –

  • MIL-OSI New Zealand: Parents and drivers urged to keep kids safe as schools start back

    Source: New Zealand Police (National News)

    Police are urging families to prioritise the safety of our tamariki who are preparing to head back to school over the coming weeks.

    The start of the school year is often an exciting moment for families, and road safety should be front of mind alongside your regular back-to-school checklist.

    Inspector Peter McKennie of the National Road Policing Centre says road safety around schools is something to take note of all year round and especially at the beginning of the year.

    “We continue to remind parents of the crucial role they play in teaching children about the potential dangers they face when going to and from school.

    “Show your kids the safest way to get to school and back home – including the safest places to cross – and practice it with them, so when it comes time to doing it alone, they are confident.

    “Teach them to use the marked pedestrian crossings and to look both ways before they cross, and arrange pick-up spots to meet.”

    Inspector McKennie reminds drivers to remain attentive on the road, as children can often be unpredictable and appear out of nowhere. This applies both in rural and urban areas, as their differing environments still present similar safety concerns.

    Together with our schools across the country, we all want to ensure the start of the school year is a memorable one for all the right reasons.

    ENDS

    Road safety advice for back-to-school time:

    • Be alert as children can be unpredictable and dart out onto the road.
    • Parents set the best example for our young people on how road users need to be safe and smart on our roads.
    • Be aware that there will be children on the roads cycling to and from school. Give them space and share the road.
    • The speed limit is 20km/h when driving past a stationary school bus, and you need to reduce your speed below 30km/h when passing schools.
    • Allow for plenty of time for school drop-offs so you are not rushed, and give the road your full attention.

    ENDS 

    Issued by Police Media Centre

    • Often drop off and pick up zones can be crowded before and after school. Suggesting a meeting point further down the road might be a safer option to avoid congestion around the area.
    • Take the time to show your children the safest route to get to school and back home and practice with them, including the safest places to cross. Remind them to look left and right and look out for cars.
    • Encourage your child(ren) to use the marked school crossing whether that be a pedestrian crossing, kea crossing or their school traffic wardens.

    MIL OSI New Zealand News –

  • MIL-OSI USA: Crapo Comments on Hegseth Confirmation

    US Senate News:

    Source: United States Senator for Idaho Mike Crapo

    Washington, D.C.–U.S. Senator Mike Crapo (R-Idaho) issued the following statement after the Senate confirmed Pete Hegseth to be Secretary of the U.S. Department of Defense (DOD), by a vote of 51-50, with Vice President JD Vance casting the tie-breaking vote:

    “For the past four years, the DOD has become too focused on identity politics and less focused on ensuring the United States Armed Forces are capable and ready to defend our national security at home and abroad.  At a time when threats to our national security are growing increasingly complex and unpredictable, we need a military that is ready for engagement from every angle.  Pete Hegseth will be an agent for change.  He will replace policies of appeasement with those of carefully-applied force.  I congratulate Secretary Hegseth on his confirmation.”

    MIL OSI USA News –

  • MIL-OSI USA: Schatz: Hawai‘i To Receive Nearly $10 Million in Federal Funding To Restore Historic Waiola Church, Hale Aloha Museum in Lāhainā

    US Senate News:

    Source: United States Senator for Hawaii Brian Schatz
    WASHINGTON – U.S. Senator Brian Schatz (D-Hawai‘i) announced that Hawai‘i will receive nearly $9.8 million in new federal funding from the Federal Emergency Management Agency (FEMA) to support the ongoing recovery effort on Maui following the devastating fires. The funding, which Schatz helped secure, will help the community of Lahaina rebuild the Waiola Church, Hale Aloha Museum, the Old Lahaina Courthouse Building, and the Master’s Reading Room.
    “Waiola Church is an important part of Lahaina’s history, heritage, and community,” said Senator Schatz, a senior member of the Senate Appropriations Committee. “This new funding will help us restore some of Lahaina’s historic buildings and help bring this community back.”
    In December 2024, Schatz secured an estimated $1.6 billion in new funding for Maui’s continued recovery, aimed at building permanent housing for survivors, in addition to almost $500 million to support economic development, small business needs, water infrastructure, and more. The funding was approved following efforts led by Schatz for more than a year to press the need for long-term disaster aid both in Congress and with the Biden administration.

    MIL OSI USA News –

  • MIL-OSI USA: Groundbreaking of Cora Whitley Family Center Promises More Job Opportunity in Tacoma, Says Cantwell

    US Senate News:

    Source: United States Senator for Washington Maria Cantwell
    01.24.25
    Groundbreaking of Cora Whitley Family Center Promises More Job Opportunity in Tacoma, Says Cantwell
    Cantwell secured $3 million for the project in the FY2024 budget; Will nearly double capacity at one of Tacoma’s top day cares, so more local parents can seek full-time work
    WASHINGTON, D.C. – Today, U.S. Senator Maria Cantwell (D-WA) released this statement in advance of tomorrow’s groundbreaking of the Multicultural Child and Family Hope Center’s Cora Whitley Family Center in Tacoma’s Hilltop neighborhood.
    “Once complete, the Cora Whitley Family Center will open up nearly 250 more spots at one of Tacoma’s best day cares — nearly doubling the previous capacity – and hire about 100 more people. The expanded day care will give more Tacoma parents the freedom to seek full-time jobs, helping the local economy grow and thrive. The new family center will also free up space in the Multicultural Child and Family Hope Center’s existing building, so the organization can provide more family resources, veteran services, and homeless outreach to uplift the community,” Sen. Cantwell said.
    Sen. Cantwell advocated for and secured $3 million in funding for the project as part of the FY 2024 congressionally directed spending process. The Cora Whitley Family Center project was one of dozens of community-led projects across the state that received funding thanks to Sen. Cantwell’s efforts.
    The Multicultural Child and Family Hope Center currently provides child care for about 250 children. The expansion will open up at least 242 more spots, and create more than 100 new jobs.
    With child care moving to the new 32,000 sq. ft. building, the center will have more space in its current building for their many other services including parenting services like classes, a diaper bank, and free Sunday grocery store, as well as intervention and outreach services ranging from peer therapeutic drug court services, homeless street outreach, mental health services, veteran services, and substance support programs.
    Sen. Cantwell is a strong advocate of expanding child care options in the State of Washington to meet the needs of individual communities. In June, she visited Rosemary’s Place in Dayton to meet with child care providers and discuss how to make care more accessible and affordable for families.

    MIL OSI USA News –

  • MIL-OSI Australia: Serious assault at Hendon

    Source: South Australia Police

    Police are investigating a domestic assault at Hendon this afternoon.

    About 12.20pm Saturday 25 January emergency services were called to a home on Avro Avenue after reports that a person had sustained a stab wound.

    The victim has been taken to hospital in a critical condition, while the suspect was arrested at the scene.

    More details will be provided when known.

    Avro Avenue is currently closed while police are at the scene.

    Anyone with information that may assist is asked to contact Crime Stoppers on 1800 333 000 or online at www.crimestopperssa.com.au – you can remain anonymous

    MIL OSI News –

  • MIL-OSI USA: Lummis, Barrasso Team Up with Wyoming High School to Introduce a U.S. Resolution Honoring the First Female Governor 

    US Senate News:

    Source: United States Senator for Wyoming Cynthia Lummis

    WASHINGTON, D.C. – U.S. Senators Cynthia Lummis and John Barrasso (all R-WY) today introduced a resolution to honor the 100th anniversary of Wyoming’s Nellie Tayloe Ross becoming the first female governor elected in the United States. The bill proposal originated with Green River High School students, and Senators Lummis and Barrasso introduced the resolution to the United States Senate.

    “Wyoming has long been a home for trailblazing women. Honoring Governor Ross on the 100th anniversary of her election reminds us of the women who paved the way for the opportunities we have today,” said Lummis. “As we celebrate her legacy, we also recognize the lasting impact of her leadership on our state and nation. I want to thank the students at Green River High for sharing their fabulous idea to make this possible.”

    “Wyoming women have blazed the trail for women’s rights and equality since our state’s founding. 100 years ago, Governor Nellie Tayloe Ross was elected as the first female governor in America. Her historic election reminds us of the lasting impact Wyoming women have had on our state and nation for generations,” said Barrasso. “Senator Lummis and I are proud to team up with students at Green River High School to honor Governor Ross’ legacy and all Wyoming women who continue to live out the Code of the West.”

    Governor Ross was inaugurated as Wyoming’s 14th governor on January 5, 1925, and served for two years. She went on to become the first female director of the United States Mint.

    A copy of the resolution can be found here.

    Green River High School students with the Nellie Tayloe Ross resolution.

    MIL OSI USA News –

  • MIL-OSI Economics: [Galaxy Unpacked 2025] Galaxy Tech Forum ④ Home AI: Redefining the Future of Smart Living

    Source: Samsung

    Samsung hosted the Galaxy Tech Forums on January 23 in San Jose, California. The panels provided an in-depth exploration of Samsung’s AI innovations and the challenges they address across four key areas — Sustainability, Health AI, Galaxy AI and Home AI. During the Home AI session, experts touched on Samsung’s outlook for the future of smart homes.
     
     
    Samsung Electronics is reimagining smart homes through Home AI, a new vision of smart living that understands user needs and delivers hyper-personalized experiences.
     
    Samsung Newsroom attended the final Tech Forum session, titled “Understanding Home, Understanding You: Rethinking the Role of the Home in the Era of AI,” to examine the transformative potential of AI in smart home innovation and the need for collaboration to deliver on the promise of Home AI.
     
    ▲ (From left to right) Tobin Richardson, Jaeyeon Jung, Patrick Chomet and Carolina Milanesi
     
     
    Smart UI as the Gateway to Home AI
    User interface (UI) is a critical element in the Home AI experience, serving as the bridge between users and their mobile devices, TVs, home appliances and more.
     
    ▲ Patrick Chomet from Samsung Electronics
     
    “UI is a key area in the age of AI,” said Patrick Chomet, Mobile Strategy Advisor at Samsung Electronics. “With the advent of LLM multimodal AI, a big shift has taken place in User Interface (UI), enabling people to get things done in natural and simple ways such as gesture, voice or text interaction. Users no longer needs to understand devices, rather the device should understand the user’s intent.”
     
    He explained how intelligent user interfaces not only enable more intuitive interactions but also procure deeper understandings of user context and intent, which brands can use to optimize in-home solutions.
     
    ▲ Jaeyeon Jung from Samsung Electronics
     
    “We have implemented an intuitive and concise UI for various SmartThings features,” said Jaeyeon Jung, Executive Vice President and Head of SmartThings Team at Samsung Electronics.
     
    She engaged the audience with examples of the latest SmartThings functions including Quick Remote, a feature that enables users to control their TVs with a connected Galaxy smartphone; 3D Map View, a feature that allows users to manage their entire home and check energy consumption through Galaxy smartphones and tablets; and Home Insight, a feature that provides timely home reports and delivers personalized recommendations to users.
     

    The Role of Platforms and Standardization in Shaping Smart Homes
    The panelists then delved into the efforts required to make Home AI a reality. Moderator Carolina Milanesi, CEO and founder of Heart of Tech and President at Creative Strategies, introduced the topics of integrated AI platforms and industry standards to guide the discussion.
     
    “As we scale our AI platform to reach across applications, services and multiple devices, the experience can be optimized around the user,” said Chomet. “User context and richer insights can be gathered to deliver relevant and truly personalized experiences.”
     
    ▲ Jaeyeon Jung and Patrick Chomet from Samsung Electronics
     
    “The SmartThings platform is 10 years in the making and while the concept of a smart home isn’t new, AI technology is what is truly creating the intelligent home” added Jung, highlighting how a consistent and connected AI platform empowers users to enjoy effortless convenience from anywhere. “The transition from a device-centric philosophy to an AI-powered, user-centric one provides users with a personalized, connected experience that feels like home — no matter where they are.”
     
    ▲ Tobin Richardson from the Connectivity Standards Alliance
     
    Tobin Richardson, President and CEO of the Connectivity Standards Alliance (CSA), noted the importance of industry standards in building an ecosystem in which devices can be connected simply, securely and seamlessly.
     
    “Building blocks for AI in the home are grounded in seamless connectivity, with AI relying on device interoperability to thrive. A common language like Matter enables devices to communicate effortlessly, setting the stage for AI innovation,” he said, highlighting that the goal is not just to create a perfect connected experience but to foster a robust and trustworthy industry while making smart homes more accessible and reliable.
     
    “Alliance Members like Samsung are doing remarkable work in the AI space, showcasing how technology can adapt to users’ needs, creating a smarter and more personalized living experience,” said Richardson, reaffirming the company’s dedication to collaboration. “I am continually inspired to see how these advancements are shaping the future of connected homes.”
     
     
    A More Personalized, Secure Smart Home
    Addressing concerns regarding the challenge of providing personalized experiences in homes shared by multiple people, Chomet spoke on how AI technology can understand intent and context to provide an optimized experience for each user. He emphasized that Samsung will innovate for multi-device connectivity, rather than individual products.
     
    ▲ Patrick Chomet, Jaeyeon Jung and Tobin Richardson
     
    Jung also cited practical cases of how Samsung Health and SmartThings are connecting data and devices to provide hyper-personalized health experiences. For example, Samsung Health and SmartThings can optimize sleep environments by automatically adjusting temperature and humidity based on users’ sleep patterns and the environmental conditions they live in. When Galaxy devices recognize that users have been exercising, SmartThings will activate appliances such as air conditioners and washing machines upon their return home.
     
    ▲ Carolina Milanesi poses questions to the panelists.
     
    The discussion then touched on the critical role of security and the protection of personal information in smart homes.
     
    “Samsung places the highest priority on security in every aspect,” said Jung. She highlighted how Knox Matrix safeguards the smart home ecosystem while Knox Vault protects hardware. “By integrating the expansive SmartThings ecosystem and AI with the robust security of Samsung Knox, users can enjoy personalized smart living experiences safely.”
     
    “With more than eight out of ten consumers stating that security is ‘important’ or ‘very important’ to them, security and privacy protection are key factors,” said Richardson, echoing the importance of trust in connected devices. “Matter, our next-generation smart home standard, is built with security in mind and offers a level of trust and clarity users can rely on.”
     
    The Home AI session highlighted the advancements AI brings to creating smarter, safer and more adaptive living spaces. By combining hyper-personalized experiences with advanced security measures, Samsung’s innovations are paving the way for a new era of intelligent, connected homes that integrate into every aspect of daily life.

    MIL OSI Economics –

  • MIL-OSI China: Consumers to play bigger role in spurring growth

    Source: China State Council Information Office

    China’s consumption, powered by a more proactive fiscal policy and a moderately loose monetary policy, will bring out greater vitality and play a bigger role in spurring overall economic growth this year, said officials and executives.

    Consumer goods trade-in initiatives will serve a strong catalyst in boosting market sentiment and fueling consumer spending in the world’s second-largest economy, in the face of escalating trade barriers and the tepid appetite in the property market, they added.

    China has put scaling up domestic demand high on its policy agenda this year, with expanding consumption a top priority. Policymakers have fleshed out a set of specific measures to this end, Vice-Minister of Commerce Sheng Qiuping said at a news conference.

    “Governmental stimulus is key to elevating consumer sentiment, and this significant support will be instrumental in upgrading consumption and driving high-quality development,” said Jean-Paul Agon, chairman of L’Oreal Group.

    In particular, the country’s trade-in initiatives, which have contributed to a more than 1 percentage point increase in the annual growth of the country’s total retail sales last year, will cover a wider range of consumer goods and offer more attractive incentives this year, Sheng said.

    China is likely to double the funding for its consumer goods trade-in initiatives this year, reaching 300 billion yuan ($41.4 billion), said Wang Qing, chief macroeconomic analyst at Golden Credit Rating International.

    This move is forecast to lead to an additional 750 billion yuan in consumption in 2025, equivalent to a 1.5 percentage point acceleration in the growth rate of total retail sales of consumer goods, Wang added.

    As of Thursday, the government has received 34,000 applications for car trade-ins so far this year, while 844,000 consumers have purchased more than 1 million home appliances under the initiative, data from the ministry showed.

    Notably, some 7.92 million consumers have already applied for 10.79 million digital devices, since the trade-in program in this newly added category began on Monday, according to the ministry.

    These consumption-boosting initiatives are off to a good start, as they align with the growing consumer desire for technological innovation, improved efficiency and enhanced aesthetics, Wang said.

    In China’s rapidly evolving consumer market, marked by a constant stream of new products and technologies, the key to success is not just the sheer volume of offerings, but rather the level of personalization, sophistication and relevance that companies can bring to the table, said Victor Leal Negre, senior vice-president of Greater China Grooming at Procter & Gamble.

    “Each year, we feel the evolving consumption demands of Chinese consumers, which translates into our product innovations, allowing us to serve consumers more effectively,” Negre said.

    Looking ahead to this year, China will continue to expand high-level opening-up, particularly in the services sector, which will further strengthen its role in stabilizing growth, employment and household incomes, Zhu said.

    Meanwhile, the government can offer more policy support to help localities purchase existing housing stock for affordable and rental housing purposes, which will also address the financing difficulties faced by real estate developers, Zhu added.

    With the gradual stabilization of the real estate market and the deepening implementation of government policies to stimulate consumption, consumer confidence is expected to rebound substantially in the next 12 to 18 months, global management consultancy McKinsey & Company said in a report in October.

    MIL OSI China News –

  • MIL-OSI USA: ICYMI: Grassley Joins Playbook Deep Dive Podcast

    US Senate News:

    Source: United States Senator for Iowa Chuck Grassley

    WASHINGTON – Sen. Chuck Grassley (R-Iowa), Chairman of the Senate Judiciary Committee, this week joined Eugene Daniels on POLITICO’s Playbook Deep Dive podcast to discuss immigration policy, reconciliation, presidential pardon authority and the importance of bipartisanship.

    Audio and excerpts of the interview follow.

    On Kash Patel and President Trump’s nominees:

    “I did meet with Kash [Patel] in my office… I want somebody that’s going to help me do my constitutional responsibility of oversight… that’s my job, and I do a lot of oversight. I want Kash Patel to get me the answers to these questions and provide me the documents I need.

    “Whether it’s RFK or the CIA Director… I think there’s a lot of things in this town that need to be shaken up… they’re coming in to deliver on the mandate of this election, which is that people are fed up with the way Washington’s going. You’ve been in this town long enough to know that it’s an island surrounded by reality. The common sense that we have in the Midwest – we need more of it in Washington, D.C. and I think the [nominees] are going to bring it in, and Kash is one of them.”

    On immigration policy, the Laken Riley Act and deportations:

    “Talking about comprehensive immigration [policies], what makes it so difficult to do that is, you’ve got people on the right, maybe 10 to 15 Republicans that say, ‘I’m not going to vote for anything unless you get all 20 million people out of this country.’ And then you have people on the left that say, ‘I’m not going to vote for any immigration bill that doesn’t make everybody citizens yesterday.’ It’s tough to put together.

    “The last time you could get 65 or 70 votes for a comprehensive immigration bill was 2013… but I think it’s difficult to be any Republican or Democrat and say that we shouldn’t change laws that allow people with a criminal record to come into this country, and not only with a criminal record, committing a crime by coming here against our law, but then committing a murder.”

    “First of all, [deportations will focus on] people that are on the terrorist watch list, people that have a criminal record and the 1.5 million people who have been adjudicated that they’re not entitled to asylum… I think we’ve got to see how successful that is before we move to the people that maybe the only crime they committed was entering our country illegally.”

    On reconciliation:

    “The House has a view [that] we should have one reconciliation bill. The Senate has a view [that] there should be two reconciliation bills. A President helping us maneuver through that disagreement is very important, and Trump’s a good person to do that.”

    On presidential pardons:

    “I think it’s wrong the way [pardons] have been used recently… But I think the Constitution would have to be amended to change it, and I think it’s very clear that what Biden did, even if I disagree, or Clinton, what he did, or maybe some future president… I think they got the power to do it.

    “Biden’s pardoned people like Fauci, that’s never been accused of anything. Some president could say, you know, we’ve got 340 million people in this country, I’m going to pardon them all. That doesn’t make sense… It’s a way of protecting people, but it’s an abuse of their authority.”

    On the importance of bipartisanship:

    “[Partisanship] is a major problem now, more so than it’s been in the 45 years since I’ve been in the Senate, but it’s not as bad as what my constituents see… I think that people get the impression that Republicans don’t talk to Democrats, and that’s not true. There’s not a single Republican or Democrat that I dislike in the United States Senate. I don’t think any of them dislike me, and if they do, I don’t want to know who they are. 

    “You can’t get anything done in the United States Senate if it’s not bipartisan, except for reconciliation, and so the institution drives some of that [bipartisanship]… I believe that when people are talking, things get done. It’s when you don’t talk that things don’t get done.”

    On Grassley’s personal priorities:

    “Peace around the world. I thought after we broke up the Soviet Union, that would bring in a whole new world, and it did for a while. But there’s a lot of leaders that want more, and you wonder, why? Why does China want Taiwan? Why does Putin want Ukraine? Why does he want to reestablish the Soviet Union? That’s my concern.

    “I think there’s got to be something bigger than just yourself, or bigger than 340 million Americans. There’s got to be some certainty to life. It can’t be as simple as, ‘question authority.’ It can’t be as simple as, ‘just do it.’ There’s got to be a measure that you measure yourself against, and I think that’s a being beyond humanity. I call it God. For me, it’s following Jesus Christ.”

    -30-

    MIL OSI USA News –

  • MIL-OSI Submissions: Environment – First global gathering of Food and Plastics Networks to prevent devastating environmental impacts

    Source: WRAP

    Pact Network Connect 2025 – First global gathering of Food and Plastics Networks share actions to cut food and plastic waste and prevent devastating effects on planet.

    Representatives from 15 countries met in Mexico this week for Pact Network Connect 2025, a three-day programme focussed on addressing the issue of our broken food systems, and the spiralling environmental cost of plastic pollution and waste.

    Convened by global environmental action NGO WRAP, Pact Network Connect 2025 was the first time the two networks – 13 international Plastics Pacts run in conjunction with the Ellen MacArthur Foundation – and 11 Food Pacts met as one to share experiences and strategies to strengthen collaborative efforts on the two environmental crises.

    The Pacts represent collaborative action initiatives formed in country by private and public sector organisations, charities and NGOs. Representatives from the Pact Secretariats joined investors and philanthropic organisations to co-design solutions to key food and plastics triggers. Focus was on generating practical steps and actions to tackle plastics pollution within the 19 countries comprising the Plastics Pact Network – and share more widely, and address food waste and loss in the 10 countries encompassing the first Food Pact Network.

    Harriet Lamb, CEO WRAP, “The numerous Pacts are the engine rooms driving forward a new circular economy for plastics and food. They give me hope that we can correct the failures of our food and plastic systems. They show that ahead of securing global inter-governmental agreements at scale, companies, ngos and governments can get behind voluntary action as an agile and effective front runner along the road to transformation. We’re delighted to be in Mexico, bringing together leaders from the food and plastics Pacts for the first ever joint global meeting to share solutions and accelerate change.”

    Pact Network Connect 2025 built on the learnings and progress achieved in the first Plastic Pact Network meeting, held in South Africa in 2024 inspiring the move to bring together both Food and Plastics Pacts to amplify impact. The Plastics Pact Network meeting had an added sense of urgency this year, given the lack of agreement on key elements for a global treaty to end plastic pollution at INC5 negotiations in Busan 2024. To achieve this, we need ambitious regulation to complement and accelerate voluntary efforts and create a level playing field for all businesses. The Plastics Pacts are uniquely placed to inform and enable policymaking and treaty implementation through the Network’s large repository of tools, insights, guidance, and standardised definitions.

    Marta Longhurst, Pacts and Field-building Lead Ellen MacArthur Foundation, “The Plastics Pacts have proved that such a network can deliver real impact towards eliminating plastic waste and pollution. Thanks to Plastics Pacts, tens of billions of problematic or unnecessary plastic items have been eliminated; design for reusability, recyclability, and composability in practice and at scale has increased by 23%; and incorporation of recycled content back into packaging has increased by 44%. We are pleased to see the tangible impact of the Plastics Pacts, and to see this knowledge shared and applied to other sectors to accelerate the transition to a circular economy worldwide.”

    The Plastics Pact Network is a global coordinated response to the hazards plastics pose to people and the planet. Managed through a partnership between WRAP and the Ellen MacArthur Foundation, in just six years the Plastic Pacts have led work tackling pollution and delivering impact on national and global scales. The Network includes over 900 local and global organisations across a 19-country membership. Its members have eliminated more than 360,000 tonnes of problematic and unnecessary plastics and increased recycled content in their packaging by 44% – reducing virgin plastic by 2.2 million tonnes by 2022. All Plastics Pacts align in a common vision to create a circular economy for plastics and eliminate waste and pollution.

    Alejandra Kopaitic, Directora Consumo y Producción Sustentable y Pacto Chileno de los Plásticos, “Pact Network Connect is a key event when many countries can share experiences, foster regional collaboration, and strengthen our global partnerships. It will enrich the Chilean Plastics Pact as part of this international network committed to systemic change. We are here to listen, learn, and collaborate, while showcasing the work we are doing in Chile and aligning our goals with international experience and best practices.”

    Ninel Escobar, Director of Climate Change WWF Mexico, “In México, between 38% and 58% of plastic waste is mismanaged. Resolving this problem requires us to work along the whole life cycle of plastic, using a systemic approach. We are pleased to join our Pact partners at Pact Network Connect to share our experiences of resolving these complex problems.”

    The Food Pact Network connects collaborative action initiatives within individual countries to a global community dedicated to reducing food loss and waste. This is the first time the group has joined forces in person as the Food Pact Network, and through the universal adoption of the principles of Target-Measure-Act the Pacts are changing how food is produced and consumed to support the UN Sustainable Development Goal 12.3 to halve global food waste by 2030.

    Notes

    The Plastics Pact Network includes: ANZPAC Plastics Pact, The Canada Plastics Pact, Polski Pakt Plastikowy – The Polish Plastics Pact, The U.S. Plastics Pact, Pacto Português para os Plásticos- The Portuguese Plastics Pact, The South African Plastics Pact, UK Plastics Pact, Pacte National sur les emballages plastiques – French Plastics Pact, Circula El Plástico – The Chilean Plastics Pact, The Kenya Plastics Pact (KPP), Colombia Plastics Pact, India Plastics Pact and Mexico Plastics Pact.

    The Food Pact Network includes: Courtauld Commitment 2030 (UK), South Africa Food Loss and Waste Initiative, Pacific Coast Food Waste Commitment, Pacto Por La Comida (Mexico), GRASP 2030 (Indonesia), Brasil Sem Desperdisio  (Brazil, launching in 2025), U.S. Food Waste Pact, Samen Tegen Voedselverspilling (Netherlands) , Kai Commitment (New Zealand) and the International Food Waste Coalition.

    WRAP is a global environmental action NGO catalysing policy makers, businesses and individuals to transform the systems that create our food, textiles and manufactured products. Together these account for nearly 50% of global greenhouse emissions. Our goal is to enable the world to transition from the old take-make-dispose model of production to more sustainable approaches that will radically reduce waste and carbon emissions from everyday products. To do so we examine sustainability challenges through the lens of people’s day-to-day lives and create solutions that can transform entire systems to benefit the planet, nature and people.

    Our work includes: UK Plastics Pact, Courtauld Commitment 2030, Textiles 2030 and the campaigns Love Food Hate Waste and Recycle Now. We run Food Waste Action Week and Recycle Week.

    MIL OSI – Submitted News –

  • MIL-OSI USA: Warner, Kaine, Griffith Announce over $26 Million in Federal Funding for Lee County Sewer Improvement Project

    US Senate News:

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

    WASHINGTON – Today, U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) and U.S. Rep. Morgan Griffith (R-VA) announced $26,250,000 in federal funding from the U.S. Army Corps of Engineers for the Lee County Sewer Improvements Project. The funding was awarded courtesy of the disaster relief package that the lawmakers pushed for and passed in December 2024 as part of legislation to fund the government.

    “High-quality water infrastructure is crucial to the health and well-being of our communities,” said the lawmakers. “We’re thrilled to have helped secure this substantial funding for Lee County that will modernize and expand public wastewater collection for the region.”

    The project, which has received critical support through the Bipartisan Infrastructure Law, will provide wastewater service to hundreds of households and over 1,000 residents in Lee County, Virginia. The project will also serve as the basis for expansion of Lincoln Memorial University, which is an integral driver of the region’s economy.

    This funding proved more urgently needed in the wake of Hurricane Helene. The storm caused significant damage to wastewater infrastructure across Southwest Virginia. This project will help to ensure that the community’s wastewater systems are better protected against future disaster events.

    The lawmakers have been longtime supporters of this project. Sens. Warner and Kaine requested funding for the project as part of Fiscal Year 2025 appropriations process, and earlier this month, the lawmakers wrote to the Office of Management and Budget and the Assistant Secretary of the Army for Civil Works to request funding for this project made available by the December 2024 funding bill.

    MIL OSI USA News –

  • MIL-OSI China: Xi extends Spring Festival greetings to all Chinese during inspection tour

    Source: People’s Republic of China – State Council News

    Chinese President Xi Jinping, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, talks with local people while visiting a food market in Shenyang, capital city of northeast China’s Liaoning Province, Jan. 23, 2025. [Photo/Xinhua]

    SHENYANG, Jan. 24 — President Xi Jinping has extended Spring Festival greetings to Chinese people of all ethnic groups, compatriots in Hong Kong, Macao and Taiwan, as well as overseas Chinese during an inspection trip to the northeastern province of Liaoning from Wednesday to Friday.

    Xi, also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, wished all Chinese people happiness and health, and the country peace and prosperity in the upcoming Year of the Snake.

    The Chinese New Year, or the Spring Festival, falls on Jan. 29 this year. It is the most important holiday on the Chinese calendar and an occasion for family reunions.

    For more than a decade, Xi, as the Party and the state’s top leader, has made it a tradition to spend time with ordinary people, especially those in difficulties, during the holiday season.

    On Wednesday afternoon, Xi made his first stop at Zhujiagou Village, administered by the city of Huludao. Having suffered severe flooding in August last year, the village launched post-disaster reconstruction and 41 affected households moved into new residences before the start of winter.

    At the entrance to the village, Xi looked at the affected areas, asking in detail about the summer flooding and the relocation of villagers at that time, as well as the subsequent relief work. He urged local officials to ensure the villagers stay warm throughout the winter.

    During visits to two village households, the president inspected the structural integrity of their homes, checked their preparations for holiday celebrations, and asked whether government subsidies for rebuilding had been adequately provided. He also inquired about the villagers’ main sources of income.

    Noting that natural disasters had hit a number of regions across China during the past year, Xi said: “As the Spring Festival draws near, on behalf of the Party Central Committee, I extend sincere regards and festive greetings to all those affected and those working on the frontlines of post-disaster reconstruction!”

    Chinese President Xi Jinping, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, learns about measures in place to optimize public services as well as details of progress made in improving people’s life while visiting a residential community in Shenyang, capital city of northeast China’s Liaoning Province, Jan. 23, 2025. [Photo/Xinhua]

    On Thursday morning, Xi went to the provincial capital Shenyang, where he talked with merchants and customers at a food market to learn about the market supply during the holiday season.

    He later visited a residential community in Shenyang, and acknowledged the significant improvements in living conditions following a general revamping there.

    At the community service center, Xi joined residents who were writing Spring Festival couplets, while children were tying Chinese knots that symbolize auspiciousness. He also enjoyed a Chinese bamboo flute performance, encouraging the performers to further promote fine traditional Chinese culture.

    Before leaving, Xi waved to the crowd and extended festive greetings. “Having a good Spring Festival means a great start to the new year,” he told the residents.

    MODERNIZATION, REVITALIZATION

    Inspecting a cold rolling mill of Bensteel Group in the city of Benxi on Thursday afternoon, Xi said that the manufacturing sector should keep pursuing higher-standard, smarter, and more eco-friendly development, and make more technology-intensive products with higher added value.

    Chinese President Xi Jinping, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, visits a cold rolling mill of Bensteel Group in Benxi City, northeast China’s Liaoning Province, Jan. 23, 2025. [Photo/Xinhua]

    After listening to the work report from local officials of Liaoning on Friday morning, Xi urged the province, which already has a relatively complete industrial system, to accelerate the modernization of this system.

    Traditional industries should strengthen industrial foundation reengineering and seek breakthroughs on major technologies and equipment to continuously boost core competitiveness, he said, while also highlighting the importance of ecological protection.

    The full revitalization of Northeast China relies fundamentally on reform and opening up, and more efforts should be made to strengthen the rule of law in government operations and optimize the business environment, Xi added, urging officials to improve their capabilities and performance in line with the country’s further opening up.

    Noting that Liaoning is rich in agricultural resources and has a solid foundation for development, Xi said the province should adhere to the integrated development of urban and rural areas.

    He also stressed enhancing cultural confidence and strength, unswervingly upholding the leadership of the Party and exercising full and rigorous Party self-governance.

    Xi urged more efforts to care for disadvantaged groups, ensure smooth transportation, provide sufficient market supplies, enrich people’s cultural life, and strengthen workplace safety during the holiday season.

    Cai Qi, a member of the Standing Committee of the Political Bureau of the CPC Central Committee and director of the General Office of the CPC Central Committee, accompanied Xi on the inspection tour.

    MIL OSI China News –

  • MIL-OSI USA: Kennedy, Lee introduce bill to permanently stop funding for abortions overseas

    US Senate News:

    Source: United States Senator John Kennedy (Louisiana)
    WASHINGTON – Sen. John Kennedy (R-La.), a member of the Senate Judiciary Committee, joined Sen. Mike Lee (R-Utah) in introducing the Protecting Life in Foreign Assistance Act.
    The bill would permanently codify the Protecting Life in Global Health Assistance policy (formerly the Mexico City Policy), which forbids the funding of foreign non-governmental organizations that perform or promote abortions. The Mexico City Policy was first instituted by Pres. Ronald Reagan and has since been rescinded and reinstated by various presidential administrations. Pres. Donald Trump expanded this policy to close previously existing loopholes and renamed it the Protecting Life in Global Health Assistance policy.
    “America shouldn’t fund abortions in foreign countries—no matter which party holds the White House. It’s time for Congress to show some moral clarity on this issue once and for all by passing this bill,” said Kennedy.
    “In our quest to build a society where every precious human life is protected, we cannot allow the tax dollars of American families to be used against the most vulnerable people in our country and across the world: the unborn,” said Lee.
    Sens. Ted Budd (R-N.C.), Marsha Blackburn (R-Tenn.), Kevin Cramer (R-N.D.), Pete Ricketts (R-Neb.), Jim Banks (R-Ind.), Tim Scott (R-S.C.), John Cornyn (R-Texas), Deb Fischer (R-Neb.), Tommy Tuberville (R-Ala.), Todd Young (R-Ind.) and Ron Johnson (R-Wis.) cosponsored the legislation. 
    Text of the Protecting Life in Foreign Assistance Act is available here.

    MIL OSI USA News –

  • MIL-Evening Report: RNZ Pacific – 35 years of broadcasting trusted news to the region

    By Moera Tuilaepa-Taylor, RNZ Pacific manager

    RNZ International (RNZI) began broadcasting to the Pacific region 35 years ago — on 24 January 1990, the same day the Auckland Commonwealth Games opened.

    Its news bulletins and programmes were carried by a brand new 100kW transmitter.

    The service was rebranded as RNZ Pacific in 2017. However its mission remains unchanged, to provide news of the highest quality and be a trusted service to local broadcasters in the Pacific region.

    Although RNZ had been broadcasting to the Pacific since 1948, in the late 1980s the New Zealand government saw the benefit of upgrading the service. Thus RNZI was born, with a small dedicated team.

    The first RNZI manager was Ian Johnstone. He believed that the service should have a strong cultural connection to the people of the Pacific. To that end, it was important that some of the staff reflected parts of the region where RNZ Pacific broadcasted.

    He hired the first Pacific woman sports reporter at RNZ, the late Elma Ma’ua.

    Linden Clark (from left) and Ian Johnstone, former managers of RNZ International now known as RNZ Pacific, and Moera Tuilaepa-Taylor, current manager of RNZ Pacific . . . strong cultural connection to the people of the Pacific. Image: RNZ

    The Pacific region is one of the most vital areas of the earth, but it is not always the safest, particularly from natural disasters.

    Disaster coverage
    RNZ Pacific covered events such as the 2009 Samoan tsunami, and during the devastating 2022 Hunga Tonga-Hunga Haʻapai eruption, it was the only news service that could be heard in the kingdom.

    More recently, it supported Vanuatu’s public broadcaster during the December 17 earthquake by providing extra bulletin updates for listeners when VBTC services were temporarily out of action.

    Cyclones have become more frequent in the region, and RNZ Pacific provides vital weather updates, as the late Linden Clark, RNZI’s second manager, explained: “Many times, we have been broadcasting warnings on analogue shortwave to listeners when their local station has had to go off air or has been forced off air.”

    RNZ Pacific’s cyclone watch service continues to operate during the cyclone season in the South Pacific.

    As well as natural disasters, the Pacific can also be politically volatile. Since its inception RNZ Pacific has reported on elections and political events in the region.

    Some of the more recent events include the 2000 and 2006 coups in Fiji, the Samoan Constitutional Crisis of 2021, the 2006 pro-democracy riots in Nuku’alofa, the revolving door leadership changes in Vanuatu, and the 2022 security agreement that Solomon Islands signed with China.

    Human interest, culture
    Human interest and cultural stories are also a key part of RNZ Pacific’s programming.

    The service regularly covers cultural events and festivals within New Zealand, such as Polyfest. This was part of Linden Clark’s vision, in her role as RNZI manager, that the service would be a link for the Pacific diaspora in New Zealand to their homelands.

    Today, RNZ Pacific continues that work. Currently its programmes are carried on two transmitters — one installed in 2008 and a much more modern facility, installed in 2024 following a funding boost.

    Around 20 Pacific region radio stations relay RNZP’s material daily. Individual short-wave listeners and internet users around the world tune in directly to RNZ Pacific content which can be received as far away as Japan, North America, the Middle East and Europe.

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI New Zealand: New podiatry clinic brings much-needed service to Wairoa

    Source: New Zealand Government

    A new monthly podiatry clinic has been launched today in Wairoa and will bring a much-needed service closer to home for the Wairoa community, Health Minister Simeon Brown says.

    “Health New Zealand has been successful in securing a podiatrist until the end of June this year to meet the needs of the Wairoa community. The podiatrist has a special interest in diabetes and will travel to Wairoa with a nurse, for monthly clinics which will be held at Queen St Practice,” Mr Brown says.

    “Primary and community healthcare, like this podiatry clinic, play a key role in preventing illness, treating disease early and reducing the impact of long-term conditions. Keeping people well improves their quality of life and reduces the pressure on our hospitals.

    “I am aware the community is also working closely with government agencies on addressing access to other healthcare services such as the provision of aged care services for their elderly.” 

    This six-month initiative funded by Health NZ will be reviewed in June. Further engagement with the community will continue throughout the year, including on the Wairoa Ageing Well Project.

    “For the estimated 400 – 600 people in the area with diabetes, as well as those with other issues, having this service on their doorstep will be a great addition to improving the range of timely, quality healthcare that can be delivered locally.” Mr Brown says.

    “Investments like this are important to ensure all New Zealanders can access timely, quality healthcare and is made possible by the Government’s record investment of $16.8 billion in health in Budget 2024.”

    MIL OSI New Zealand News –

  • MIL-OSI USA: Hawley Demands Insurance Companies Answer for ‘Morally Obscene’ Disaster Claim Denials

    US Senate News:

    Source: United States Senator Josh Hawley (R-Mo)
    Today, Senator Josh Hawley (R-Mo.) sent a letter to insurance companies regarding reports that claims related to Hurricane Helene are being denied after Hurricane Helene and Hurricane Milton devastated American communities. In his letter, the Senator calls on them to publicly testify before the Senate Homeland Security and Governmental Affairs Subcommittee on Disaster Management—which Senator Hawley chairs—and pushes for answers about their claim processing practices.
    “These reports [of coverage denials] are outrageous. Americans purchase insurance so that when disaster strikes, they and their loved ones will have some recourse. That is the reason insurance companies exist in the first place,” wrote Senator Hawley. “Denying coverage to American policyholders, at a time when so many of them have been displaced and left grieving, is not merely a betrayal—it is morally obscene.”
    The letter comes on the heels of President Trump’s Friday visit to western North Carolina to meet with hurricane victims who are still struggling with the destruction and loss caused by the hurricane. During his press conference, President Trump invited victims to share their stories and specifically name the insurance companies denying their claims. 
    Read the full letter here or below.  
    January 24, 2025
    Dear Insurer:
    Earlier this year, American communities were devastated by Hurricanes Helene and Milton. Countless Americans lost loved ones, homes, businesses, and beloved towns in the violence of the storm. Now, all across the eastern seaboard, thousands are struggling to recover and rebuild their lives. 
    Widespread reports indicate that some companies are standing in the way. Seizing the opportunity to limit their own liabilities, insurance companies processing claims related to these hurricanes are reportedly engaged in a pattern of denying homeowner insurance claims.1 If this is true, Americans who’ve already lost nearly everything now face the ultimate insult: loss of any chance to rebuild. They will be left with virtually nothing.
    These reports are outrageous. Americans purchase insurance so that when disaster strikes, they and their loved ones will have some recourse. That is the reason insurance companies exist in the first place. Denying coverage to American policyholders, at a time when so many of them have been displaced and left grieving, is not merely a betrayal—it is morally obscene.
    In the wake of these reports of denials of coverage, I invite you to publicly testify before the Senate Homeland Security and Governmental Affairs Subcommittee on Disaster Management, which has jurisdiction over disaster recovery efforts.
    In the interim, please provide answers to the following questions: 
         1. How many insurance claims, brought by homeowners in the wake of Hurricane Helene and Milton, has your company denied?
         2. On what grounds were these claims denied? Please provide an itemized breakdown.
         3. What is your average response time when customers submit a claim after a disaster?
    I look forward to your response. 
    Sincerely, 
    Josh HawleyUnited States Senator

    MIL OSI USA News –

  • MIL-OSI USA: Rosen Joins Colleagues In Urging President Trump to Exempt All VA Employees from Federal Hiring Freeze

    US Senate News:

    Source: United States Senator Jacky Rosen (D-NV)
    While The Trump Administration Has Backtracked To Exempt Health Care Employees From Freeze Following Rosen-Backed Letter, Other Personnel Are Still Being Affected
    WASHINGTON, DC – U.S. Senator Jacky Rosen (D-NV) joined a letter urging President Trump to exempt all Veterans Affairs (VA) employees from the federal hiring freeze he issued this week. In response to this letter, the Trump Administration has announced it’s exempting health care and law enforcement positions, but other jobs related to veteran’s benefits are still affected. The hiring freeze will negatively impact Nevada’s veterans, including by blocking the hiring of personnel needed to process benefits.
    “As written, this Memorandum could dramatically impair the ability of veterans across the country to get the timely care and benefits they desperately need,” wrote the Senators. “It could also delay or deny various other services across VA – from burial services to job training to assistance for homeless veterans to life-saving assistance from the Veterans Crisis Line.”
    “Mr. President, to prevent the delay or denial of life-saving services and benefits for our nation’s heroes, we urge you to provide an immediate, clear, and full exemption to VA personnel from your hiring freeze,” they continued. “We are hopeful to work with you to build upon our nation’s promise to these men and women, but we also vow to fight every effort that dishonors their service and reneges upon that sacred promise.”
    The full letter can be found HERE.
    Senator Rosen has worked consistently to deliver for Nevada’s veterans. Earlier this year, a bipartisan bill she supported to expand veterans’ benefits outreach became law. Senator Rosen’s bipartisan bill to require the VA to maintain a permanent helpline for veterans to use for information on VA services is now law as part of the National Defense Authorization Act for Fiscal Year 2025. She also successfully pushed President Biden to include the construction of a new VA hospital in Reno in his 2024 Budget Request and helped introduce and pass bipartisan legislation to officially authorize its construction.

    MIL OSI USA News –

  • MIL-OSI USA: FEMA Set to Open Altadena Disaster Recovery Center

    Source: US Federal Emergency Management Agency

    Headline: FEMA Set to Open Altadena Disaster Recovery Center

    FEMA Set to Open Altadena Disaster Recovery Center

    LOS ANGELES – FEMA is opening a Disaster Recovery Center (DRC) in Altadena to assist Californians who experienced damage to their primary home, personal property loss or have disaster-caused emergency needs related to the wildfires. At DRCs, you can get help applying for federal assistance, speak to representatives from state and federal agencies, receive updates on your FEMA application for assistance and learn about the appeals process. Additionally, the DRC located at the Pasadena City College Community Education Center’s last day of operations is Friday, Jan. 31.The Altadena location will open Monday, Jan. 27, 2025, at 9:00 a.m. PST.Altadena Disaster Recovery Center540 W. Woodbury Rd.Altadena, CA 91001Hours of operation – Daily: 9 a.m. to 8 p.m.Other DRC locations include:UCLA Research Park West10850 West Pico Blvd.1Los Angeles, CA 90064Hours of operation – Daily: 9 a.m. to 8 p.m. Pasadena City College Community Education Center (last day of operations is January 31st)3035 East Foothill Blvd.Pasadena, CA 91107Hours of operation – Daily: 9 a.m. to 8 p.m.There are other ways to apply for assistance aside from going to a DRC. The fastest way to apply is online at DisasterAssistance.gov or via the FEMA app. You may also call 1-800-621-3362. If you use a relay service, such as video relay, captioned telephone, or other service, give FEMA your number for that service. For the latest information about California’s recovery, visit fema.gov/disaster/4856. Follow FEMA Region 9 @FEMARegion9 on X or follow FEMA on social media at: FEMA Blog on fema.gov, @FEMA or @FEMAEspanol on X, FEMA or FEMA Espanol on Facebook, @FEMA on Instagram, and via FEMA YouTube channel. California is committed to supporting residents impacted by the Los Angeles Hurricane-Force Firestorm as they navigate the recovery process. Visit CA.gov/LAFires for up-to-date information on disaster recovery programs, important deadlines, and how to apply for assistance.
    barbara.murien…
    Fri, 01/24/2025 – 23:57

    MIL OSI USA News –

  • MIL-OSI USA: FAQ: Direct Housing Updates

    Source: US Federal Emergency Management Agency

    Headline: FAQ: Direct Housing Updates

    FAQ: Direct Housing Updates

    FEMA continues to house survivors of the Aug. 8, 2023, Maui wildfires through its Direct Housing Program. Currently all households that remain eligible for the Direct Housing Program are licensed into direct housing units. Participants will continue to be housed as long as they remain eligible for the program and should remain in contact with their FEMA recertification advisor.     Q&A for Direct Housing Participants Q. Why are participants being asked to relocate?  A. There are various reasons why survivors in Direct Lease units may need to be relocated, with safety always being a top priority. FEMA’s goal is to ensure all survivors have a safe, sanitary, and habitable place to live. Currently, FEMA is focused on efforts to bring survivors back to West Maui, closer to their homes, while reducing their overall footprint on the island. This includes prioritizing properties nearer to Lahaina.Q. What happens if a participant is offered housing to return to West Maui and declines? A. Wildfire survivors in FEMA’s Direct Housing Program that have previously expressed interest in returning to West Maui are currently being contacted by FEMA. If they choose to decline the West Maui unit, they may remain in their current housing situation. However, they will not be offered another West Maui unit after declining the initial offer. Q. What happens to participants if their landlord’s contract is not extended? A. Wildfire survivors in FEMA’s Direct Housing Program may remain in the program through Feb. 10, 2026, as long as they continue to meet eligibility requirements. If their current unit’s contract is not extended and they must move out, an alternative housing solution will be provided by FEMA to accommodate them, as long as they remain eligible or until the end of the Direct Housing Program. Q. How will displaced families be informed about having to move if their current property owner’s contract is not extended? A. Tenants will be informed by FEMA in advance if they will be required to move to another location. FEMA will then provide alternative housing solutions for these households. Q. How do wildfire survivors feel reassured about their housing security? A. While housing situations may change, participants in the Direct Housing Program can rest assured that if they continue to meet the requirements in their license agreement they may remain in the program and will be housed until they find their permanent housing solution or until the program ends. Q. When will Direct Housing participants be required to begin paying rent? A. All Direct Housing households will begin paying rent to FEMA on March 1, 2025. Q. When will households be notified of the requirement to begin paying rent? A. Households received 30- 60- and 90-day notices informing them of the rent requirement that will begin on March 1, 2025, and of the process to appeal the rental amount. Q. How is the rental amount determined? A. The rental amount is based on the U.S. Department of Housing and Urban Development (HUD) 2025 Fair Market Rent on Maui along with the household’s ability to pay.  Q. If individuals have questions about the rental requirement and the appeal process who do they talk to?A. Direct Housing households are encouraged to talk to their recertification advisor if they have any questions on the appeal process and what documentation is needed to be considered for rent reduction.For Direct Housing households with further questions call the Individual Assistance Housing Hotline at 808-784-1600.
    shannon.carley
    Sat, 01/25/2025 – 00:27

    MIL OSI USA News –

  • MIL-OSI Asia-Pac: TWC:1910 Provides 24/7 Customer Support

    Source: Republic Of China Taiwan 2

    The Taiwan Water Corporation Customer Service Hotline 1910 is still on 24/7 while TWC offices will be closed during the Lunar New Year. Users with any questions,such as water using,bills,reporting water leaking,can get assistance by calling 1910.

    TWC provides a variety of convenient payment methods. Users can easily pay through the following methods during the Lunar New Year.
    1.Taiwan Water Corporation official website.
    2.Taiwan Water Corporation APP.
    3.Mobile payment:JKOPay,iPASS MONEY,TCPASS,GAMAPAY,PiAPP,icash Pay,ezPay,beePay,TaiwanPay,Easy Wallet,PXPay and PlusPAY.
    4.At convenience stores:Pay water bill at 7-11,Family Mart,Hi-Life,OK and Simple Mart. Users without water bills,can print them with KIOSK Machines,like ibon,OKGo,Fami Port,Life-ET.

    Before returning to hometown for reunions,please check the water equipment at home,TWC offices will be open on February 3rd,2025.

    Ministry of Economic Affairs Taiwan Water Company
    Spokesman:Vice President Wu, Jing-Wen
    Contact Number:04-22244191 Ext.205,Mobile Phone:0934-262835
    Email:jingwen@mail.water.gov.tw

    Business Contact:Director, Dept. of Business LIN,MENG-ZHU
    Contact Number:04-22244191 Ext.400,Mobile Phone:0952-402749
    Email:moju @mail.water.gov.tw

    MIL OSI Asia Pacific News –

  • MIL-OSI USA: Relief Still Available to Nebraska Private Nonprofits Hit by April Storm: Don’t Miss the Deadline to Apply for an SBA Disaster Loan!

    Source: United States Small Business Administration

    SACRAMENTO, Calif. – The U.S. Small Business Administration (SBA) is reminding private nonprofit (PNP) organizations in Nebraska of the Feb. 24, 2025 deadline to apply for low interest federal disaster loans to offset economic losses caused by the severe winter storm and straight-line winds that occurred April 6–7, 2024.

    The disaster declaration covers the counties of Banner, Cheyenne, Dawes, Garden, Kimball, Morrill, Scotts Bluff and Sioux.

    Under the declaration, SBA’s Economic Injury Disaster Loan (EIDL) program is available to PNPs that provide non-critical services of a governmental nature and suffered financial losses directly related to the disaster. Examples of eligible non-critical PNPs include, but are not limited to, food kitchens, homeless shelters, museums, libraries, community centers, schools, and colleges.

    EIDLs are available for working capital needs caused by the disaster and are available even if the PNP did not suffer any physical damage. The loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred.

    “When disasters hit rural communities, access to working capital offers a lifeline to impacted small businesses and private nonprofits,” said Randle Logan, acting associate administrator for the SBA’s Office of Disaster Recovery and Resilience. “SBA’s EIDL program is designed to help keep businesses operational during recovery, covering financial obligations and necessary expenses until normal operations resume.”

    The loan amount can be up to $2 million with interest rates as low as 3.25%, with terms up to 30 years. Interest does not accrue, and payments are not due, until 12 months from the date of the first loan disbursement. The SBA sets loan amount terms based on each applicant’s financial condition.

    For more information and to apply online visit SBA.gov/disaster. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

    Submit completed loan applications to the SBA no later than Feb. 24.

    ###

    About the U.S. Small Business Administration

    The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

    MIL OSI USA News –

  • MIL-OSI USA: Relief Still Available to Texas Private Nonprofits Hit by Spring Storms: Don’t Miss the Deadline to Apply for an SBA Disaster Loan!

    Source: United States Small Business Administration

    SACRAMENTO, Calif. – The U.S. Small Business Administration (SBA) is reminding private nonprofit (PNP) organizations in Texas of the Feb. 24, 2025 deadline to apply for low interest federal disaster loans to offset economic losses caused by severe storms, straight‑line winds, tornadoes and flooding that occurred April 26–June 5, 2024.

    The disaster declaration covers the counties of Anderson, Austin, Bailey, Baylor, Bell, Blanco, Bosque, Bowie, Brown, Caldwell, Calhoun, Cass, Cherokee, Clay, Cochran, Coke, Coleman, Concho, Cooke, Coryell, Dallas, Delta, Eastland, Falls, Fannin, Freestone, Gonzales, Grimes, Hamilton, Hardin, Harris, Hays, Henderson, Hockley, Hopkins, Houston, Jasper, Kaufman, Lamar, Lampasas, Lee, Leon, Liberty, Limestone, Lynn, Madison, McCulloch, Milam, Mills, Montgomery, Morris, Nacogdoches, Navarro, Newton, Panola, Polk, Rains, Red River, Robertson, Rockwall, Rusk, Sabine, San Augustine, San Jacinto, San Saba, Shelby, Smith, Sterling, Terrell, Titus, Trinity, Tyler, Van Zandt, Walker, Waller and Washington.

    Under the declaration, SBA’s Economic Injury Disaster Loan (EIDL) program is available to PNPs that provide non-critical services of a governmental nature and suffered financial losses directly related to the disaster. Examples of eligible non-critical PNPs include, but are not limited to, food kitchens, homeless shelters, museums, libraries, community centers, schools, and colleges.

    EIDLs are available for working capital needs caused by the disaster and are available even if the PNP did not suffer any physical damage. The loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred.

    “When disasters hit rural communities, access to working capital offers a lifeline to impacted small businesses and private nonprofits,” said Randle Logan, acting associate administrator for the SBA’s Office of Disaster Recovery and Resilience. “SBA’s EIDL program is designed to help keep businesses operational during recovery, covering financial obligations and necessary expenses until normal operations resume.”

    The loan amount can be up to $2 million with interest rates as low as 3.25%, with terms up to 30 years. Interest does not accrue, and payments are not due, until 12 months from the date of the first loan disbursement. The SBA sets loan amount terms based on each applicant’s financial condition.

    For more information and to apply online visit SBA.gov/disaster. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

    Submit completed loan applications to the SBA no later than Feb. 24.

    ###

    About the U.S. Small Business Administration

    The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

    MIL OSI USA News –