India – Page 422 – NewzIntel.com

MIL-OSI Asia-Pac: India’s ability to scale up paired with Germany’s precision engineering to benefit the world: Shri Piyush Goyal

Source: Government of India

India’s ability to scale up paired with Germany’s precision engineering to benefit the world: Shri Piyush Goyal

India-Germany synergy in AI adoption, semiconductors and green technology to drive global growth: Shri Piyush Goyal

India committed to combat climate change, on track to meet nationally determined contributions: Shri Goyal

Asia’s demographic shift fertile ground for businesses seeking to expand, capitalise on emerging sectors: Shri Goyal

Posted On: 25 OCT 2024 2:21PM by PIB Delhi

Germany’s art of precision engineering coupled with India’s ability to scale up in the physical, digital or social infrastructure will help create something extraordinary for the world said Union Minister of Commerce & Industry, Shri Piyush Goyal. He was inaugurating the 18th Asia Pacific Conference of German Business (APK) today in New Delhi. The Union Minister speaking on the India-Germany collaboration said that from AI adoption to semiconductors, from fostering the nation’s vibrant startup ecosystem to collaborating on green technology, the synergies between India and Germany can drive unprecedented growth.

Noting that today’s India is built on strong macroeconomic fundamentals, he added that reform, resilience and readiness is available for the future for businesses across the world. On combating climate change, Shri Goyal emphasised India’s commitment at the UN Climate Change Conference (COP21) in 2015, and said that India collectively with the Global South got together with the developed countries to be a part of the solution. He added that India, currently ranked 7th in Climate Change Performance Index (CCPI), is on track to exceed the nationally determined contributions (NDCs) and also the targets set before the world.

Extending gratitude to the Asia Pacific Committee of German Business and the Indo-German Chamber of Commerce for organising the event, Shri Goyal said that the Asia-Pacific region encompasses 60% of world’s population and by 2030, two-thirds of the global middle class will reside in Asia. This demographic shift presents a fertile ground for businesses seeking to

expand their reach and capitalise on emerging sectors, he said.

Shri Goyal stressed that the Conference will be key to identifying emerging trends and tackling global challenges. It facilitates the exchange of best practices, drives technological advancements and shapes policies for future industrial growth, he said. The Union Minister expressed hope that India and Germany can deepen strategic partnerships and translate this collaboration into real growth for the economies and the citizens of both the countries.

Quoting German philosopher Arthur Schopenhauer’s expression “Reading the Upanishads is comforting in my life…”, the Minister in the spirit of that ancient wisdom urged all the participants to embrace the richness of India’s culture and diversity especially during this festive season from Diwali until Christmas and New Year.

Shri Goyal ended his speech with a quote from Rabindranath Tagore, “Reach high, for stars lie hidden in you. Dream deep, for every dream precedes the goal” and urged the participants to create the future where the products made, the industries led and the innovations pioneered, touch every corner of the globe.

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AD/AM

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MIL OSI Asia Pacific News –

January 25, 2025

MIL-OSI Asia-Pac: Mid-term progress of Ministry of Information and Broadcasting under Special Campaign 4.0 for institutionalizing Swachhata and reducing pendency in government

Source: Government of India

Mid-term progress of Ministry of Information and Broadcasting under Special Campaign 4.0 for institutionalizing Swachhata and reducing pendency in government

Commitment to Good Governance: Ministry enhances workplace efficiency and environmental responsibility through Special Campaign 4.0

407 outdoor campaigns conducted, 8,000 Kg of scrap disposed of and ₹21.65 lakhs in revenue generated under the campaign

Posted On: 25 OCT 2024 2:18PM by PIB Delhi

Implementation of Special Campaign 4.0 is in full swing in Ministry of Information & Broadcasting along with its subordinate/ attached offices across the nation. Significant progress has been achieved so far in enhancing cleanliness, reducing pending matters, and boosting overall efficiency.

Pendency reduction and swachhata awareness

In the preparatory phase of the Campaign, this Ministry of Information & Broadcasting identified various targets for reducing pendency such as VIP references, public grievances, weeding out of physical as well as electronic files, conducting outdoor campaigns to raise awareness about Swachhata.

During the implementation phase Ministry along with its subordinate/ attached offices has undertaken comprehensive cleanliness drive across the country. Dedicated efforts have been made to achieve these targets.

Ministry’s cleanup drive achieves milestones

Till date, the Ministry has conducted 407 outdoor campaigns, around 8000 Kg scraps have been disposed of, reviewed more than 22000 physical files and 10800 have been weeded out. A total of 303 e-files have been reviewed and 68 were closed. Revenue of Rs 21,65,031 has been generated out of the disposal of scraps. A total of 97 Public grievances, 6 PG Appeals, 27 VIP References also have been disposed of. 8104 saplings have been planted under “Ek Ped Maa Ke Naam” Campaign so far.

Ministry enhances workplace efficiency and environmental responsibility

Ministry of Information & Broadcasting will continue to focus on achieving the targets of Special Campaign 4.0, enhancing workplace productivity, and commitment to a cleaner workplace and a more efficient workforce. Officers from Ministry have been deputed to different field offices to oversee the various actions under Special Campaign and plantation under “Ek Ped Maa Ke Naam.”

The following picture glimpse highlights the remarkable developments of the Special Campaign 4.0 initiated by the Ministry of Information & Broadcasting.

Picture: Reviewing/Weeding out of Physical Files At Record Room, Shastri Bhawan After Reviewing more than 15000 files in the record room, 5571 physical files identified and have been weeded out.

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Dharmendra Tewari/Kshitij Singha

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MIL OSI Asia Pacific News –

January 25, 2025

MIL-OSI Asia-Pac: Union Minister Shri Manohar Lal reviews the power sector scenario for Andaman and Nicobar Islands at Sri Vijaya Puram

Source: Government of India (2)

Posted On: 25 OCT 2024 2:16PM by PIB Delhi

Union Minister for Power and Housing and Urban Affairs, Shri Manohar Lal, reviewed the power sector scenario for Andaman and Nicobar Islands (AN&Is) at Sri Vijaya Puram today. Hon’ble LG of UT of Andaman and Nicobar Islands, Shri D K Joshi was present in the meeting. The meeting was also attended by senior officials of the UT administration, Ministry of Power, Govt. of India (GoI), and senior officials of the Power Sector CPSEs.

The meeting started with a presentation on the brief overview of the Power Sector Scenario in the UT of AN&Is. In the course of presentation, the present status of power availability, power generation and gap between demand and supply was highlighted. Also, major challenges and possible solutions were highlighted. Thereafter, officials from Ministry of Power gave a presentation on the projects of interconnection of Island through grid and distribution infrastructure augmentation works sanctioned by Government of India under Revamped Distribution Sector Scheme (RDSS) in the UT which would help in improving the power supply quality and availability across the islands. Additionally, issues related to current energy mix were also discussed.

In his address, Shri Manohar Lal, Union Minister of Power and Housing and Urban Affairs mentioned that it is his first visit to the AN&Is. This visit to the UT will be important in understanding and in resolution of the issues in the Power sector in the UT. He emphasized on the need for reducing dependence on diesel-based generation by increasing share of renewable sources of power generation, especially wind energy, in the archipelago and working towards energy storage. This will result in reducing per unit energy cost. Hon’ble Minister also mentioned to explore the possibility for alternate sources of energy generation like ethanol based. Further, the importance of Electric Vehicles (EV) and EV Charging stations was also emphasised.

He also highlighted the need for timely settlement of dues of the Government departments and asked the UT administration to strive to improve AT&C losses and ACS-ARR Gap. He also advised the UT administration to make all out efforts for expeditious implementation of the sanctioned works under RDSS as well as to implement reforms prescribed under the scheme. He mentioned that sincere efforts will go a long way in making the electricity department financially viable and the UT self-sufficient for its power requirements.

Union Minister assured for continued support and cooperation of the Government of India in the overall development of the UT.

LG, A&NIs welcomed the Hon’ble Union Minister for his visit to Sri Vijaya Puram for review of A&NIs in respect of issues related to Urban development and the Power sector. He assured of taking necessary measures for expeditious award and implementation of the Distribution Infrastructure.

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JN/ SK

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MIL OSI Asia Pacific News –

January 25, 2025

MIL-OSI Asia-Pac: Union Minister Shri Manohar Lal appreciates the progress under AMRUT, Smart Cities Mission and Swachh Bharat Mission in Andaman & Nicobar Islands

Source: Government of India (2)

Posted On: 25 OCT 2024 2:14PM by PIB Delhi

Union Minister, Housing and Urban Affairs, Government of India Shri Manohar Lal along with Lt. Governor Shri D.K Joshi reviewed Urban Developments schemes in the Andaman & Nicobar Islands at Raj Niwas, Sri Vijaya Puram.

At the onset, Chief Secretary informed that UT is operating 07 schemes of Ministry of Housing and Urban Affairs (MoHUA). During his first visit to A&N Islands, Minister has appreciated the progress in the Mission especially, projects under AMRUT, Smart Cities Mission and Swachh Bharat Mission, which as significantly contributed for ease of living for the citizens.

Union Minister encouraged for improvement in Swachhata ranking in coming years. Shri Manohar Lal also encouraged to improve the performance in Pradhan Mantri Awas Yojana (Urban) and DAY-NULM. A&N administration informed that PM SVANidhi has already achieved its target.

The Union Minister has also requested to clear-up entire legacy waste and Cleanliness Target Units (CTUs) identified during Swachhata Hi Seva campaign. The UT Administration has informed that they have achieved significant progress in remediation of legacy waste.

Union Minister asked the administration to explore the possibility of increasing the urban area by notifying new ULBs.

Shri Manohar Lal lso requested to identify innovative ways to attract more people for tourism, services & education.

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MIL OSI Asia Pacific News –

January 25, 2025

MIL-OSI Asia-Pac: Ministry of Fisheries, Animal Husbandry and Dairying takes Significant Step to Boost Seaweed Industry with New Import Guidelines

Source: Government of India (2)

Ministry of Fisheries, Animal Husbandry and Dairying takes Significant Step to Boost Seaweed Industry with New Import Guidelines

Notifies ‘Guidelines for Import of Live Seaweeds into India’

Import Permit to be issued within Four weeks of Approval

Posted On: 25 OCT 2024 1:54PM by PIB Delhi

In a significant move, the Ministry of Fisheries, Animal Husbandry and Dairying has notified the ‘Guidelines for Import of Live Seaweeds into India’. This initiative aims to bolster the development of seaweed enterprises as a key economic driver for coastal villages, ensuring livelihood sustainability and socio-economic upliftment of the fisher community while upholding environmental protection and biosecurity concerns at the core of all actions.

The guidelines will facilitate import of high-quality seed materials or germplasm from abroad, enabling domestic multiplication for ensuring farmers have access to quality seed stock. Currently, the growth of seaweed enterprises in India faces the challenge of seed availability in sufficient quantity for the commercially valuable species, and quality degradation in the seed materials of Kappaphycus, the most commonly farmed seaweed species

Pradhan Mantri Matsya sampada Yoiana (PMMSY), the flagship scheme of Government of India envisaged to revolutionize the seaweed sector, aiming to increase seaweed production of the country over 1.12 million tonnes by 2025. Under the scheme, the Government have taken many steps to strengthen the seaweed farming activities the prominent of which is establishment of Multipurpose Seaweed Park in Tamil Nadu with the total investment of Rs 127.7 crore.

The guidelines outline a process for importing live seaweed, including a clear regulatory framework for the import of live seaweed, ensuring transparency and accountability, strict quarantine procedures to prevent introduction of pests and diseases, risk assessment to identify potential biosecurity concerns and post-import monitoring for strengthening ongoing monitoring and risk assessment.

This guideline will encourage responsible cultivation of seaweed, ensuring environmental sustainability and economic growth. Further, the import of new seaweed strains will stimulate research and development, leading to enhanced seaweed production of variety of seaweed species belonging to red, brown and green algae, paving way for development of downstream seaweed processing and value addition enterprises which will yield additional livelihoods in the villages while bolstering the overall export of the country.

As per the guidelines, for import of live seaweed into India, the importers may submit a detailed application to the Department of Fisheries which will be reviewed by the National Committee on Introduction of Exotic Aquatic Species into Indian Waters. Upon approval, the Department will issue an import permit within four weeks, facilitating the import of high-quality seaweed germplasm.

The guidelines thus provide a comprehensive regulatory framework for the import of live seaweeds into India, ensuring that the process is conducted safely, smoothly and responsibly. Department of Fisheries, Government of India encourage stakeholders, such as researchers, entrepreneurs, and farmers, to take advantage of these new opportunities and contribute to the growth of the seaweed industry.

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MIL OSI Asia Pacific News –

January 25, 2025

MIL-OSI Asia-Pac: Union Health Minister, Shri J P Nadda Presides over 53rd Foundation Day Celebrations and Convocation of University College of Medical Sciences

Source: Government of India (2)

Union Health Minister, Shri J P Nadda Presides over 53rd Foundation Day Celebrations and Convocation of University College of Medical Sciences

Healthcare professionals make crucial contributions to society and approach their work with compassion, integrity, and dedication: Shri JP Nadda

Reiterates Government’s commitment to strengthening India’s healthcare system and ensuring that medical services are accessible to all

“Union Government changed the National Health Policy in 2017 which made a shift in looking at healthcare from only a curative angle previously to a holistic approach that caters to preventive, integrative as well as curative healthcare”

“Hon’ble Prime Minister Shri Narendra Modi had promised to further add 75,000 medical seats in the next five years and we are going to do it”

Posted On: 25 OCT 2024 1:50PM by PIB Delhi

Shri Jagat Prakash Nadda, Union Minister of Health & Family Welfare, presided as the Chief Guest at the 53rd Foundation Day and Convocation of the University College of Medical Sciences (UCMS), a constituent medical institution of the University of Delhi, here today. He was joined by Shri Vinai Kumar Saxena, Lt. Governor of Delhi.

Addressing the gathering, Shri Nadda highlighted the crucial contributions that healthcare professionals make to society and urged the graduates to approach their work with compassion, integrity, and dedication. He reiterated the Government’s commitment to strengthening India’s healthcare system and ensuring that medical services are accessible to all. Reaching out to the students, he stated, “Your efforts should be focused on shaping our national vision of ‘Viksit Bharat.”

The Union Health Minister said that “basic education is everyone’s birthright but professional education is a privilege that the society bestows on only a few”. Highlighting that the government spends between 30-35 lakh for every MBBS student, he urged the new doctors to shoulder more responsibilities as they embark on their professional careers.

Shri Nadda also informed about the changes made in the National Health Policy by the Union Government in 2017 which made a shift in looking at healthcare from only a curative angle previously to a holistic approach that caters to preventive, integrative as well as curative healthcare. He also emphasized the recent achievements made in the healthcare sector including the establishment of 22 AIIMS, new medical and nursing colleges, increase in MBBS and MD seats by over 100% etc. He added that “Hon’ble Prime Minister Shri Narendra Modi had promised to further add 75,000 medical seats in the next five years and we are going to do it.”

During the ceremony, degrees were conferred to 146 MBBS students, 145 MD/MS students, 17 B.Sc (MT) Radiology students, and 4 M.Sc (R&MIT) students and 62 awards were given. Additionally, 4 certificates in Medical Laboratory Technology (MLT) were awarded. Shri Nadda also distributed awards to meritorious students for their exceptional achievements in the field of medical sciences.

Congratulating the new doctors, Shri Vinai Kumar Saxena, extended his best wishes for their future endeavours. He remarked that UCMS’s unwavering commitment to nurturing capable and compassionate healthcare professionals is commendable and crucial in meeting the country’s ongoing complex health challenges. “This convocation is a recognition of the tireless legacy of UCMS”, he said.

To commemorate the event, a special souvenir was also released, highlighting the academic achievements of the UCMS in the last year.

The convocation ceremony marked a proud moment for graduates, faculty, and family members alike, as the new medical professionals prepare to embark on their careers equipped with the knowledge and skills gained from one of India’s leading medical institutions.

Prof. Balaram Pani, Dean of Colleges, University of Delhi; Prof. (Dr.) Mahesh Verma, Chairperson, Governing Body of UCMS and Vice-Chancellor, Guru Gobind Singh Indraprastha University; Prof. B Srinivas, Secretary of the National Medical Commission (NMC) and Deputy Director General (Medical Education); Dr. Girish Tyagi, Registrar, Delhi Medical Council (DMC) and President-Elect of the Delhi Medical Association; Dr Amita Suneja, Principal, UCMS and senior officials of the Union Health Ministry were present at the event.

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MV

HFW/MoS AIIMS Foundation Day/25^th September 2024/2

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MIL OSI Asia Pacific News –

January 25, 2025

MIL-OSI Asia-Pac: DPIIT forges alliance with HCLSoftware to herald India’s startup revolution

Source: Government of India (2)

DPIIT forges alliance with HCLSoftware to herald India’s startup revolution

Under Startup India initiative, DPIIT signed over 80 MoUs with industry stakeholders till date

The collaboration to propel India’s manufacturing sector and support its goal of becoming a National production hub

Posted On: 25 OCT 2024 12:17PM by PIB Delhi

Department for Promotion of Industry and Internal Trade (DPIIT) announced a strategic partnership with HCLSoftware, a global leader in software solutions, as a vital component of its Manufacturing Incubation Initiative, on 23rd October 2024 at Vanijya Bhawan, New Delhi. In a bid to revolutionise India’s startup manufacturing ecosystem, DPIIT is creating an environment where corporate houses play a pivotal role in incubating manufacturing startups. Under the Startup India initiative, DPIIT has signed over 80 Memorandums of Understanding (MoUs) with industry stakeholders till date.

Startups will have access to the HCL SYNC program for global market exposure, allowing them to showcase their products and services worldwide, thus taking Indian innovation to an international audience. Notably, this collaboration marks a substantial step forward in advancing the Indian manufacturing sector, supporting the nation’s goal of establishing itself as a national production hub.

This initiative’s objectives include developing Indian intellectual property by encouraging startups to create unique products and solutions tailored to India, improving product quality by providing startups with the tools and expertise to produce world-class products that meet global standards, and building a robust manufacturing ecosystem by establishing a network of interconnected startups and suppliers capable of supporting the full manufacturing value chain.

DPIIT Joint Secretary, Mr. Sanjiv Singh, highlighted the necessity of this partnership to establish a sustainable manufacturing ecosystem, stating that HCLSoftware’s expertise and dedication to supporting startups align seamlessly with DPIIT’s vision. Mr. Sanjiv noted that through this collaboration, innovation will flourish, and Indian businesses will gain a stronger foothold on the global stage. Outlining the goals of DPIIT’s flagship program, Startup India, Mr. Sanjiv reaffirmed DPIIT’s commitment to fostering and promoting the nation’s manufacturing ecosystem by motivating and supporting product startups, innovators, and entrepreneurs. This collaboration will significantly contribute to the realisation of India’s ‘Make in India’ initiative and position India as a global manufacturing hub.

Director, Startup India, Dr. Sumeet K. Jarangal, emphasized that the primary objective of this initiative is to boost India’s manufacturing sector by empowering startups with cutting-edge digital technologies and providing access to global markets. Dr. Jarangal further elaborated that HCLSoftware is dedicated to collaborating with DPIIT and Startup India to elevate Indian manufacturing startups to new heights, fostering excellence and growth, and thereby crafting a success story. HCLSoftware will play an essential role in supporting startups through every phase, from design and development to sales and marketing, utilising its digital manufacturing and aftermarket solutions.

Kalyan Kumar, Chief Product Officer at HCLSoftware, remarked that this collaboration is a pivotal moment in India’s manufacturing journey. Reiterating HCLSoftware’s commitment to equipping startups with essential tools and support, Kumar stated that the company would exhaust all efforts to foster innovation and economic growth, contributing significantly to India’s vision of becoming a global manufacturing powerhouse.

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AD/DS/CNAN

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MIL OSI Asia Pacific News –

January 25, 2025

MIL-OSI Asia-Pac: Loan limit under Pradhan Mantri Mudra Yojana (PMMY) increased to Rs.20 lakh from the current Rs.10 lakh

Source: Government of India

Posted On: 25 OCT 2024 12:36PM by PIB Delhi

As announced by the Finance Minister on 23rd July, 2024 in the Union Budget 2024-25, the limit of Mudra loans under the Pradhan Mantri Mudra Yojana (PMMY) has been enhanced from current Rs. 10 lakh to Rs. 20 lakh. This increase aspires to further the overall objective of the Mudra Scheme which is Funding the Unfunded. This enhancement is specifically beneficial to upcoming entrepreneurs facilitating their growth and expansion. The move is in alignment with the Governmment’s commitment in fostering a robust entrepreneurial ecosystem.

As per the notification issued in this regard, the new category of Tarun Plus is for Loans above Rs. 10 lakh and upto Rs. 20 lakh and would be available to the entrepreneurs who have availed and successfully repaid previous loans under the Tarun category. The guarantee coverage of PMMY loans upto Rs. 20 lakh will be provided under the Credit Guarantee Fund for Micro Units (CGFMU).

Click here for notification.

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MIL OSI Asia Pacific News –

January 25, 2025

MIL-OSI Asia-Pac: NHRC takes suo motu cognizance of the reported death of a girl by suicide in a private school premises in Guntur District, Andhra Pradesh

Source: Government of India

NHRC takes suo motu cognizance of the reported death of a girl by suicide in a private school premises in Guntur District, Andhra Pradesh

Expresses concern over the incident in the lawful custody of the school authorities

Issues notices to the Chief Secretary and the Director General of Police, Government of Andhra Pradesh calling for a detailed report

The report to include the status of the police investigation and post-mortem examination

Posted On: 25 OCT 2024 3:29PM by PIB Delhi

The National Human Rights Commission (NHRC), India has taken suo motu cognizance of a media report that a 13-year-old girl student in VIII standard at a private school, allegedly died by suicide in Guntur district of Andhra Pradesh on 23rd October, 2024. Reportedly, the incident happened in the school hostel campus at Reddypalem village panchayat area of the district.

The Commission has observed that the contents of the news report, if true, raise a serious issue of violation of the human rights of the victim girl. The girl has reportedly committed suicide inside the hostel premises i.e. in the lawful custody of the school authorities which is a matter of concern. Accordingly, notices have been issued to the Chief Secretary and the Director General of Police, Government of Andhra Pradesh calling for a detailed report supported by a thorough probe within four weeks.

It is expected to include the status of the police investigation and post-mortem examination including the cause of death. The authorities are also directed to share the report of any other enquiry conducted in the matter.

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NSK/VCK

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MIL OSI Asia Pacific News –

January 25, 2025

MIL-OSI Economics: Joint Press Statement of the Eight ASEAN-India Ministerial Meeting on Agriculture and Forestry (the 8th AIMMAF)

Source: ASEAN

The Eighth ASEAN India Ministerial Meeting on Agriculture and Forestry was held
virtually on 25 October 2024. The Meeting was co-chaired by Myanmar and India.The Meeting commended the significant progress made in the implementation of the Medium-Term Plan of Action for ASEAN-India Cooperation in Agriculture and Forestry (2021–2025). This plan aims to promote investment, develop human resources in the food, agriculture, forestry, and fisheries sub-sectors by providing opportunities for the youth of ASEAN, and enhance the resilience of natural systems while improving the adaptive capacities of human communities to cope with environmental hazards. The Meeting noted that various projects to support these initiatives have been implemented as part of a regional strategy focusing on sustainable and regenerative agriculture between ASEAN and India.

Download the full statement here.
The post Joint Press Statement of the Eight ASEAN-India Ministerial Meeting on Agriculture and Forestry (the 8th AIMMAF) appeared first on ASEAN Main Portal.

MIL OSI Economics –

January 25, 2025

MIL-OSI Banking: Joint Press Statement of the Eight ASEAN-India Ministerial Meeting on Agriculture and Forestry (the 8th AIMMAF)

Source: ASEAN

The Eighth ASEAN India Ministerial Meeting on Agriculture and Forestry was held
virtually on 25 October 2024. The Meeting was co-chaired by Myanmar and India.The Meeting commended the significant progress made in the implementation of the Medium-Term Plan of Action for ASEAN-India Cooperation in Agriculture and Forestry (2021–2025). This plan aims to promote investment, develop human resources in the food, agriculture, forestry, and fisheries sub-sectors by providing opportunities for the youth of ASEAN, and enhance the resilience of natural systems while improving the adaptive capacities of human communities to cope with environmental hazards. The Meeting noted that various projects to support these initiatives have been implemented as part of a regional strategy focusing on sustainable and regenerative agriculture between ASEAN and India.

Download the full statement here.
The post Joint Press Statement of the Eight ASEAN-India Ministerial Meeting on Agriculture and Forestry (the 8th AIMMAF) appeared first on ASEAN Main Portal.

MIL OSI Global Banks –

January 25, 2025

MIL-OSI: Lakeland Financial Reports Third Quarter Net Income of $23.3 Million, Organic Loan Growth of 5% and Organic Deposit Growth of 4%

Source: GlobeNewswire (MIL-OSI)

WARSAW, Ind., Oct. 25, 2024 (GLOBE NEWSWIRE) — Lakeland Financial Corporation (Nasdaq Global Select/LKFN), parent company of Lake City Bank, today reported net income of $23.3 million for the three months ended September 30, 2024, which represents a decrease of $1.9 million, or 8%, compared with net income of $25.3 million for the three months ended September 30, 2023. Diluted earnings per share were $0.91 for the third quarter of 2024 and decreased $0.07, or 7%, compared to $0.98 for the third quarter of 2023. On a linked quarter basis, net income increased $789,000, or 3%, from second quarter 2024 net income of $22.5 million. Diluted earnings per share increased $0.04, or 5%, from $0.87 on a linked quarter basis.

Pretax pre-provision earnings, which is a non-GAAP measure, were $30.8 million for the three months ended September 30, 2024, an increase of $666,000, or 2%, compared to $30.1 million for the three months ended September 30, 2023. On a linked quarter basis, pretax pre-provision earnings decreased $4.6 million, or 13%, compared to $35.4 million for the second quarter of 2024.

The company further reported net income of $69.3 million for the nine months ended September 30, 2024, versus $64.1 million for the comparable period of 2023, an increase of $5.1 million, or 8%. Diluted earnings per share also increased 8% to $2.69 for the nine months ended September 30, 2024, versus $2.49 for the comparable period of 2023. Pretax pre-provision earnings were $95.5 million for the nine months ended September 30, 2024, an increase of $15.7 million, or 20%, compared to $79.8 million for the nine months ended September 30, 2023.

“Our long-term track record of serving our clients and communities through organic loan and deposit growth continued during the third quarter of 2024 and we are pleased with our performance for the quarter,” commented David M. Findlay, Chairman and Chief Executive Officer. “We continue to be encouraged by the strength of economic activity in our Indiana markets and are really well positioned to take advantage of the ongoing growth and investment we are seeing throughout our footprint.”

Quarterly Financial Performance

Third Quarter 2024 versus Third Quarter 2023 highlights:

Tangible book value per share grew by $5.47, or 25%, to $27.07
Total risk-based capital ratio of 15.75%, compared to 15.13%
Tangible capital ratio improved to 10.47%, compared to 8.62%
Average loans grew by $214.6 million, or 4%, to $5.06 billion
Core deposit growth of $261.2 million, or 5%
Return on average equity of 13.85%, compared to 16.91%
Return on average assets of 1.39%, compared to 1.54%
Net interest margin of 3.16% versus 3.21%
Noninterest income growth of $1.1 million, or 10%
Revenue improved by 3% to $61.2 million
Noninterest expense increased by $1.3 million, or 4%
Provision expense of $3.1 million, compared to $400,000
Net charge offs of $143,000 versus $353,000
Watch list loans as a percentage of total loans increased to 5.27% from 3.83%

Third Quarter 2024 versus Second Quarter 2024 highlights:

Tangible book value per share grew by $1.73, or 7%
Total risk-based capital ratio improved to 15.75% from 15.53%
Tangible capital ratio of 10.47%, compared to 9.91%
Core deposits increased by $138.3 million, or 2%
Average loans grew by $29.5 million, or 1%, to $5.06 billion
Net interest margin of 3.16% versus 3.17%
Return on average equity of 13.85%, compared to 14.19%
Return on average assets of 1.39%, compared to 1.37%
Noninterest income decreased by $8.5 million, or 42%
Noninterest expense decreased by $2.9 million, or 9%
Provision expense of $3.1 million compared to $8.5 million
Watch list loans as a percentage of total loans improved to 5.27% from 5.31%

Capital Strength

The company’s total capital as a percentage of risk-weighted assets improved to 15.75% at September 30, 2024, compared to 15.13% at September 30, 2023 and 15.53% at June 30, 2024. These capital levels significantly exceeded the 10.00% regulatory threshold required to be characterized as “well capitalized” and reflect a strengthening of the company’s strong capital base.

The company’s tangible common equity to tangible assets ratio, which is a non-GAAP financial measure, improved to 10.47% at September 30, 2024, compared to 8.62% at September 30, 2023 and 9.91% at June 30, 2024. Unrealized losses from available-for-sale investment securities improved to $154.5 million at September 30, 2024, compared to $266.4 million at September 30, 2023 and $194.9 million at June 30, 2024. When excluding the impact of accumulated other comprehensive income (loss) on tangible common equity and tangible assets, the company’s ratio of adjusted tangible common equity to adjusted tangible assets, a non-GAAP financial measure, improved to 12.29% at September 30, 2024, compared to 11.74% at September 30, 2023 and 12.18% at June 30, 2024.

Kristin L. Pruitt, President, commented, “Our capital structure is a critical strength of our balance sheet, as it has been for a very long time. This exceptionally strong capital retention supports our plans for continued organic growth as well as total return to shareholders through our common stock dividend.”

As announced on October 8, 2024, the board of directors approved a cash dividend for the third quarter of $0.48 per share, payable on November 5, 2024, to shareholders of record as of October 25, 2024. The third quarter dividend per share represents a 4% increase from the $0.46 dividend per share paid for the third quarter of 2023.

Loan Portfolio

Average total loans of $5.06 billion in the third quarter of 2024, increased $214.6 million, or 4%, from $4.85 billion for the third quarter of 2023, and increased $29.5 million, or 1%, from $5.03 billion for the second quarter of 2024.

Average total loans for the nine months ended September 30, 2024 were $5.02 billion, an increase of $232.1 million, or 5%, from $4.79 billion for the nine months ended September 30, 2023.

“Loan growth has been steady in 2024 and has been funded through healthy deposit growth. We are seeing increased activity with our manufacturing clients as we experienced $91 million, or 6%, of commercial and industrial loan growth as compared to September 30, 2023. In addition, commercial real estate loan balances increased as our relationships with in-market long-term clients expanded with projects moving forward supported by good demand and high-quality developments. As a result, commercial real estate and multi-family loans grew $128 million, or 5% year over year,” noted Findlay. “Our retail and consumer lending teams have also experienced healthy growth of $54 million or 9% in the last year. Our highly diverse loan portfolio growth continues, and it is gratifying to see both commercial and consumer lending positively impacting our balance sheet growth.”

Total loans, net of deferred loan fees, increased by $211.0 million, or 4%, from $4.87 billion as of September 30, 2023 to $5.08 billion as of September 30, 2024. The increase in loans occurred across much of the portfolio with our commercial real estate and multi-family residential loan portfolio growing by $127.4 million, or 5%, our commercial and industrial loan portfolio growing by $90.7 million, or 6%, and our consumer 1-4 family mortgage loans portfolio growing by $36.3 million, or 8%. These increases were offset by a decrease to total agribusiness and agricultural loans of $22.1 million, or 6%, and a decrease to other commercial loans of $31.6 million, or 25%. On a linked quarter basis, total loans net of deferred loan fees increased by $29.6 million, or 1%, from $5.05 billion at June 30, 2024. The linked quarter increase was primarily a result of growth in construction and land development loans of $70.9 million, or 11%, and growth in total consumer loans of $21.7 million, or 4%. Offsetting this growth were declines in total commercial and industrial loans of $33.4 million, or 2%, and in owner occupied loans of $19.6 million, or 2%.

Commercial loan originations for the third quarter included approximately $316.0 million in loan originations, offset by approximately $308.0 million in commercial loan pay downs. Line of credit usage increased to 41% as of September 30, 2024, compared to 39% at September 30, 2023 and was unchanged from 41% as of June 30, 2024. Total available lines of credit contracted by $69.0 million, or 1%, as compared to a year ago, and line usage increased by $96.0 million, or 5%, over that period. The company has limited exposure to commercial office space borrowers, all of which are in the bank’s Indiana markets. Loans totaling $102.6 million for this sector represented 2% of total loans at September 30, 2024, an increase of $1.4 million, or 1%, from June 30, 2024. Commercial real estate loans secured by multi-family residential properties and secured by non-farm non-residential properties were approximately 210% of total risk-based capital at September 30, 2024.

Diversified Deposit Base

The bank’s diversified deposit base has grown on a year over year basis and on a linked quarter basis.


DEPOSIT DETAIL (unaudited, in thousands)

	September 30, 2024				June 30, 2024				September 30, 2023
Retail	$	1,709,899	29.3	%	$	1,724,777	29.9	%	$	1,761,235	31.1	%
Commercial		2,304,041	39.5			2,150,127	37.3			2,154,853	38.1
Public funds		1,726,869	29.6			1,727,593	30.0			1,563,557	27.7
Core deposits		5,740,809	98.4			5,602,497	97.2			5,479,645	96.9
Brokered deposits		96,504	1.6			161,040	2.8			177,430	3.1
Total	$	5,837,313	100.0	%	$	5,763,537	100.0	%	$	5,657,075	100.0	%

Total deposits increased $180.2 million, or 3%, from $5.66 billion as of September 30, 2023 to $5.84 billion as of September 30, 2024. The increase in total deposits was driven by an increase in core deposits (which excludes brokered deposits) of $261.2 million, or 5%. Total core deposits at September 30, 2024 were $5.74 billion and represented 98% of total deposits, as compared to $5.48 billion and 97% of total deposits at September 30, 2023. Brokered deposits were $96.5 million, or 2% of total deposits, at September 30, 2024, compared to $177.4 million, or 3% of total deposits, at September 30, 2023.

The change in composition of core deposits since September 30, 2023 reflects growth in commercial deposits and public funds deposits. As of September 30, 2024, commercial deposits as a percentage of total deposits increased to 39%, from 38%, public fund deposits as a percentage of total deposits increased to 30%, from 28%, and retail deposits as a percentage of total deposits contracted to 29%, from 31%, compared to balances a year ago. Commercial deposits grew annually by $149.2 million, or 7%, to $2.30 billion. Public funds deposits grew annually by $163.3 million, or 10%, to $1.73 billion. Retail deposits contracted annually by $51.3 million, or 3%, to $1.71 billion. Growth in public funds was positively impacted by the addition of a new public funds customer in the Lake City Bank footprint which included the addition of its operating accounts. Net retail outflows since September 30, 2023, reflect the continued utilization of deposits from peak savings levels during 2021.

Findlay noted, “We are pleased with annual core deposit growth of 5% or $261 million in 2024. The deposit mix shift that began in early 2023 has stabilized with growth in noninterest bearing deposits during the third quarter of 2024. Our retail banking team has done a terrific job continuing to drive market share growth in our core Indiana markets and we are pleased with our market share performance in all of our Indiana markets. Core deposit gathering is a strategic focus, continues to improve and today represents 98% of total deposits, up from 97% a year ago.”

On a linked quarter basis, total deposits increased $73.8 million, or 1%, from $5.76 billion at June 30, 2024 to $5.84 billion at September 30, 2024. Core deposits increased by $138.3 million, or 2%, while brokered deposits decreased by $64.5 million, or 40%. Linked quarter growth in core deposits resulted from growth in commercial deposits of $153.9 million, or 7%. Offsetting the increase in commercial deposits was contraction in retail deposits of $14.9 million, or 1%, and contraction in public funds deposits of $724,000, or less than 1%.

Average total deposits were $5.88 billion for the third quarter of 2024, an increase of $307.7 million, or 6%, from $5.57 billion for the third quarter of 2023. Average interest-bearing deposits drove the increase to average total deposits and increased by $481.2 million, or 12%. Contributing to the overall growth of interest-bearing deposits was an increase to average interest-bearing checking accounts of $422.1 million, or 15%, and growth in average time deposits of $108.4 million, or 11%. Offsetting these increases was a decrease to average savings deposits of $49.4 million, or 15%. Average noninterest-bearing demand deposits decreased by $173.5 million, or 12%.

On a linked quarter basis, average total deposits increased by $60.2 million, or 1%, from $5.82 billion for the second quarter of 2024 to $5.88 billion for the third quarter of 2024. Average interest-bearing deposits drove the increase to total average deposits, which increased by $46.9 million, or 1%. Contributing to the overall growth of interest-bearing deposits was an increase to total average time deposits of $35.5 million, or 3%, and an increase to interest bearing checking accounts of $20.4 million, or 1%. Offsetting these increases was a decrease to average savings deposits of $8.9 million, or 3%. Average noninterest-bearing demand deposits increased by $13.3 million, or 1%.

Checking account trends compared to September 30, 2023, include growth of $181.7 million, or 14%, in aggregate public fund checking account balances and growth of $144.7 million, or 7%, in aggregate commercial checking account balances, and a contraction of $2.5 million, or less than 1%, in aggregate retail checking account balances. The number of accounts has also grown for all three segments, with growth of 14% for public funds accounts, 3% for commercial accounts and 2% for retail accounts.

Deposits not covered by FDIC deposit insurance as a percentage of total deposits were 61% as of September 30, 2024, compared to 54% at both June 30, 2024 and September 30, 2023, reflecting the growth in public fund deposits over the period. Deposits not covered by FDIC deposit insurance or the Indiana Public Deposit Insurance Fund (which insures public funds deposits in Indiana), were 32% of total deposits as of September 30, 2024, compared to 29% at June 30, 2024, and 28% as of September 30, 2023. As of September 30, 2024, 98% of deposit accounts had deposit balances less than $250,000.

Liquidity Overview

The bank has robust liquidity resources. These resources include secured borrowings available from the Federal Home Loan Bank and the Federal Reserve Bank Discount Window. In addition, the bank has unsecured borrowing capacity through long established relationships within the brokered deposits markets, Federal Funds lines from correspondent bank partners, and Insured Cash Sweep (ICS) one-way buy funds available from the Intrafi network. As of September 30, 2024, the company had access to an aggregate of $3.7 billion in liquidity from these sources, compared to $3.3 billion at both September 30, 2023 and June 30, 2024. Utilization from these sources totaled $96.5 million at September 30, 2024, compared to $267.4 million at September 30, 2023 and $161.0 million at June 30, 2024. Core deposits have historically represented, and currently represent, the primary funding resource of the bank at 98% of total deposits and purchased funds.

Investment Portfolio Overview

Total investment securities were $1.15 billion at September 30, 2024, reflecting an increase of $42.8 million, or 4%, as compared to $1.11 billion at September 30, 2023. On a linked quarter basis, investment securities increased $24.0 million, or 2%, due primarily to improvement in the fair market value of available-for-sale securities of $40.4 million and partially offset by portfolio cash flows of $15.1 million. Investment securities represented 17% of total assets on September 30, 2024, September 30, 2023 and June 30, 2024. The ratio of investment securities as a percentage of total assets remains elevated over historical levels of approximately 12% to 14%. The company expects the investment securities portfolio as a percentage of assets to continue to decrease over time as the proceeds from pay downs, sales and maturities are used to fund loan portfolio growth and for general liquidity purposes. Tax equivalent adjusted effective duration for the investment portfolio was 6.3 years at September 30, 2024, compared to 6.7 years and 6.5 years at September 30, 2023 and June 30, 2024, respectively. Tax equivalent adjusted effective duration of the investment portfolio remains elevated as compared to 4.0 years at December 31, 2019 prior to the deployment of excess liquidity to the investment portfolio and the increased rate environment. The company anticipates receiving principal and interest cash flows of approximately $26.4 million throughout the remainder of 2024 and $104.7 million during 2025 from its investment securities portfolio.

Net Interest Margin

Net interest margin was 3.16% for the third quarter of 2024, representing a 5 basis point decrease from 3.21% for the third quarter of 2023. Earning assets yields increased by 23 basis points to 6.04% for the third quarter of 2024 from 5.81% for the third quarter of 2023. The increase in earning asset yields was offset by an increase in the company’s funding costs of 28 basis points as interest expense as a percentage of average earning assets increased to 2.88% for the third quarter of 2024 from 2.60% for the third quarter of 2023. Increased industry competition for deposits has driven funding costs as a percentage of average earning assets to rise more aggressively than earning asset yields since the third quarter of 2023. Notably, the deposit mix shift from noninterest bearing deposits to interest bearing deposits encountered by the company during the recent monetary tightening cycle has stabilized with noninterest bearing deposits representing 22% of total deposits at September 30, 2024, compared to 24% at September 30, 2023 and 21% at June 30, 2024. In 2019, prior to the pandemic and the related stimulus plans, the ratio of noninterest bearing deposits to total deposits stood at 24% as of December 31, 2019.

Linked quarter net interest margin contracted by 1 basis point to 3.16% for the third quarter of 2024, compared to 3.17% for the second quarter of 2024. Average earning asset yields decreased by 3 basis points from 6.07% during the second quarter of 2024 to 6.04% during the third quarter of 2024 and were partially offset by a 2 basis point decrease in interest expense as a percentage of average earning assets from 2.90% to 2.88%.

“Net interest margin has stabilized and has responded well to the first federal fund rate decrease of 50 basis points late in the third quarter. The bank’s net interest margin expanded by 4 basis points on a linked quarter basis, excluding the impact of increased nonperforming loans. In addition, noninterest bearing deposits grew modestly during the quarter as compared to June 30, 2024. While our balance sheet continues to be assets sensitive, we are encouraged by the impact of the Federal Reserve Bank rate action,” commented Lisa M. O’Neill, Executive Vice President and Chief Financial Officer.

The cumulative loan beta, which measures the sensitivity of a bank’s average loan yield to changes in short-term interest rates, was 56% for the recent rate-tightening cycle, compared to 61% during the prior tightening cycle from 2016 through 2019. The cumulative deposit beta, which measures the sensitivity of a bank’s deposit cost to changes in short-term interest rates, was 54% for the recent rate-tightening cycle, compared to 45% during the prior tightening cycle.

Net interest income was $49.3 million for the third quarter of 2024, representing an increase of $880,000, or 2%, as compared to $48.4 million for the third quarter of 2023. On a linked quarter basis, net interest income increased $977,000, or 2%, from $48.3 million for the second quarter of 2024. Net interest income decreased by $3.5 million, or 2%, from $148.4 million for the nine months ended September 30, 2023, to $145.0 million for the nine months ended September 30, 2024.

Asset Quality

The company recorded a provision for credit losses of $3.1 million in the third quarter of 2024, an increase of $2.7 million, as compared to $400,000 in the third quarter of 2023. On a linked quarter basis, the provision expense decreased by $5.4 million, from $8.5 million for the second quarter of 2024. The elevated provision expense during the second quarter of 2024 was primarily attributable to an increase in the specific reserve allocation from the downgrade of a $43.3 million credit to an industrial company in Northern Indiana in conjunction with the relationship’s placement on nonperforming status. Additional specific reserves of $4.7 million were allocated to this credit during the third quarter of 2024.

The ratio of allowance for credit losses to total loans was 1.65% at September 30, 2024, up from 1.48% at September 30, 2023, and 1.60% at June 30, 2024. Net charge offs in the third quarter of 2024 were $143,000, compared to $353,000 in the third quarter of 2023 and $949,000 during the linked second quarter of 2024. Annualized net charge offs to average loans were 0.01% for the third quarter of 2024, compared to 0.03% for the third quarter of 2023 and 0.08% for the linked second quarter of 2024.

Nonperforming assets increased $41.3 million, or 247%, to $58.1 million as of September 30, 2024, versus $16.7 million as of September 30, 2023. On a linked quarter basis, nonperforming assets increased $427,000, or 1%, compared to $57.6 million as of June 30, 2024. The ratio of nonperforming assets to total assets at September 30, 2024 increased to 0.87% from 0.26% at September 30, 2023 and declined from 0.88% at June 30, 2024. The increase in nonperforming assets was primarily driven by the industrial borrower relationship referenced above.

Total individually analyzed and watch list loans increased by $81.2 million, or 44%, to $267.6 million as of September 30, 2024, versus $186.4 million as of September 30, 2023. On a linked quarter basis, total individually analyzed and watch list loans decreased by $687,000, or less than 1%, from $268.3 million at June 30, 2024. Watch list loans as a percentage of total loans increased by 144 basis points to 5.27% at September 30, 2024, compared to 3.83% at September 30, 2023, and decreased by 4 basis points from 5.31% at June 30, 2024. The increase in individually analyzed and watch list loans between September 30, 2024 and September 30, 2023 was primarily driven by downgrades to four commercial relationships individually greater than $10.0 million, net of paydowns, payoffs and upgrades to other relationships.

“Overall, we continue to observe stable economic conditions in our Lake City Bank footprint. The commencement of the Federal Reserve Bank easing cycle will provide some interest relief to variable rate borrowers, in particular for commercial real estate clients. We believe that loan demand could accelerate for our commercial and industrial sector if the Federal Reserve Bank takes additional easing actions,” stated Findlay.

Noninterest Income

The company’s noninterest income increased $1.1 million, or 10%, to $11.9 million for the third quarter of 2024, compared to $10.8 million for the third quarter of 2023. Wealth advisory fees increased $420,000, or 18%, driven by growth in customers and favorable market performance. Other income increased $429,000, or 72%, primarily from an improvement to income from the company’s limited partnership investments. Adjusted core noninterest income, a non-GAAP financial measure that excludes the effects of certain non-routine operating events, was $11.9 million for the third quarter of 2024, an increase of $1.1 million, or 10%, compared to $10.8 million for the third quarter of 2023.

Noninterest income for the third quarter of 2024 decreased by $8.5 million, or 42%, on a linked quarter basis from $20.4 million during the second quarter of 2024. Second quarter noninterest income benefited from the net gain recognized on the exchange and partial redemption of the company’s Visa shares of $9.0 million. The company’s remaining Visa Class C shares were redeemed during the third quarter of 2024 for a net loss of $15,000. Offsetting this linked quarter decrease was an increase to other income of $333,000, or 48%, and an increase to bank owned life insurance income of $178,000, or 20%. Adjusted core noninterest income increased by $504,000, or 4%, compared to $11.4 million for the linked second quarter of 2024.

Noninterest income increased by $12.3 million, or 38%, to $45.0 million for the nine months ended September 30, 2024, compared to $32.7 million for the prior year nine-month period. The increase in noninterest income was driven primarily by the net gain on Visa shares of $9.0 million. Additionally, other income increased $2.0 million, or 105%, wealth advisory fees increased $1.0 million, or 15%, bank owned life insurance income increased $601,000, or 25%, and mortgage banking income increased $252,000. Other income increased primarily due to improved performance from limited partnership investment income and the receipt of a $1.0 million insurance recovery related to the 2023 wire fraud loss. Improved market performance of the company’s variable bank owned life insurance policies, which are tied to the performance of the equity markets, drove the increase to bank owned life insurance income. Mortgage banking income increased from pipeline expansion and a related positive impact to mortgage rate lock income. Offsetting these increases was a decrease to interest rate swap fee income of $794,000, or 100%, due to no new swap fee activity during the period. Adjusted core noninterest income for the nine months ended September 30, 2024 was $35.0 million, an increase of $2.3 million, or 7%, compared to $32.7 million for the nine months ended September 30, 2023.

“While not robust, we are pleased to report that revenue growth for the nine months ended September 30, 2024, was $8.9 million, or 5% as compared to the same period in 2023. Noninterest income, and in particular, wealth advisory fees are positively impacting the improvement in revenue,” stated Findlay. “It is rewarding to see this important part of the business growing and positively impacting revenue growth at the bank.”

Noninterest Expense

Noninterest expense increased $1.3 million, or 4%, to $30.4 million for the third quarter of 2024, compared to $29.1 million during the third quarter of 2023. Driving the third quarter 2024 increase to noninterest expense were increases to salaries and benefits expense of $499,000, or 3%, data processing fees and supplies expense of $389,000, or 12%, and corporate and business development expense of $168,000, or 14%, as compared to the third quarter of 2023. Adjusted core noninterest expense, a non-GAAP financial measure that excludes the effects of certain non-routine operating events, was $30.4 million for the third quarter of 2024, an increase of $1.3 million, or 4%, compared to $29.1 million for the third quarter of 2023.

On a linked quarter basis, noninterest expense decreased by $2.9 million, or 9%, from $33.3 million during the second quarter of 2024. Other expense decreased by $3.6 million, or 58%, primarily due to the recognition of a $4.5 million legal accrual in the second quarter 2024. Offsetting the decrease to noninterest expense was an increase in salaries and employee benefits of $318,000, or 2%. Adjusted core noninterest expense increased by $1.6 million, or 6%, compared to $28.8 million for the linked second quarter of 2024.

Noninterest expense decreased by $6.8 million, or 7%, for the nine months ended September 30, 2024 to $94.4 million compared to $101.3 million for the nine months ended September 30, 2023. The $18.1 million wire fraud loss recorded during the second quarter of 2023 was the primary driver of the decrease between these periods. Offsetting this decrease were increases to salaries and employee benefits expense of $6.1 million, or 14%, other expense of $3.2 million, or 41%, data processing fees of $1.1 million, or 11%, and professional fees of $391,000, or 6%. The increase to salaries and benefits expense resulted primarily from increases to salaries and wages of $2.3 million, performance-based incentive compensation of $2.2 million, health insurance expense of $695,000 and variable deferred compensation related to the company’s variable bank owned life insurance of $536,000. The increase for data processing fees resulted from continued investment in customer-facing and operational technology solutions. Professional fees increased due to higher costs to implement technology solutions. Adjusted core noninterest expense was $89.9 million for the nine months ended September 30, 2024, an increase of $4.8 million, or 6%, from $85.1 million recorded during the comparable period of 2023.

The company’s efficiency ratio was 49.7% for the third quarter of 2024, compared to 49.1% for the third quarter of 2023 and 48.5% for the linked second quarter of 2024. The company’s adjusted core efficiency ratio, a non-GAAP measure that excludes the impact of certain non-routine operating events, was 49.7% for the third quarter of 2024, compared to 48.2% for the linked second quarter of 2024 and 49.1% for the third quarter of 2023.

The company’s efficiency ratio was 49.7% for the nine months ended September 30, 2024, compared to 55.9% for the comparable period in 2023. The company’s adjusted core efficiency ratio was 50.0% for the nine months ended September 30, 2024, compared to 47.0% for the comparable period in 2023.

Information regarding Lakeland Financial Corporation may be accessed on the home page of its subsidiary, Lake City Bank, at lakecitybank.com. The company’s common stock is traded on the Nasdaq Global Select Market under “LKFN.” Lake City Bank, a $6.6 billion bank headquartered in Warsaw, Indiana, was founded in 1872 and serves Central and Northern Indiana communities with 54 branch offices and a robust digital banking platform. Lake City Bank’s community banking model prioritizes building in-market long-term customer relationships while delivering technology-forward solutions for retail and commercial clients.

This document contains, and future oral and written statements of the company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “continue,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. The company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain and, accordingly, the reader is cautioned not to place undue reliance on any forward-looking statements made by the company. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the company undertakes no obligation to update any statement in light of new information or future events. Numerous factors could cause the company’s actual results to differ from those reflected in forward-looking statements, including the effects of economic, business and market conditions and changes, particularly in our Indiana market area, including prevailing interest rates and the rate of inflation; governmental monetary and fiscal policies; the risks of changes in interest rates on the levels, composition and costs of deposits, loan demand and the values and liquidity of loan collateral, securities and other interest sensitive assets and liabilities; and changes in borrowers’ credit risks and payment behaviors, as well as those identified in the company’s filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K and quarterly reports on Form 10-Q.


LAKELAND FINANCIAL CORPORATION THIRD QUARTER 2024 FINANCIAL HIGHLIGHTS

	Three Months Ended									Nine Months Ended
(Unaudited – Dollars in thousands, except per share data)	September 30,			June 30,			September 30,			September 30,			September 30,
END OF PERIOD BALANCES	2024			2024			2023			2024			2023
Assets	$	6,645,371		$	6,568,807		$	6,426,844		$	6,645,371		$	6,426,844
Investments		1,147,806			1,123,803			1,105,026			1,147,806			1,105,026
Loans		5,081,990			5,052,341			4,870,965			5,081,990			4,870,965
Allowance for Credit Losses		83,627			80,711			72,105			83,627			72,105
Deposits		5,837,313			5,763,537			5,657,075			5,837,313			5,657,075
Brokered Deposits		96,504			161,040			177,430			96,504			177,430
Core Deposits (1)		5,740,809			5,602,497			5,479,645			5,740,809			5,479,645
Total Equity		699,181			654,590			557,184			699,181			557,184
Goodwill Net of Deferred Tax Assets		3,803			3,803			3,803			3,803			3,803
Tangible Common Equity (2)		695,378			650,787			553,381			695,378			553,381
Adjusted Tangible Common Equity (2)		832,813			820,534			780,756			832,813			780,756
AVERAGE BALANCES
Total Assets	$	6,656,464		$	6,642,954		$	6,498,984		$	6,618,102		$	6,448,316
Earning Assets		6,329,287			6,295,281			6,145,894			6,280,677			6,103,538
Investments		1,128,705			1,118,776			1,171,426			1,135,304			1,210,540
Loans		5,064,348			5,034,851			4,849,758			5,023,556			4,791,431
Total Deposits		5,880,177			5,819,962			5,572,466			5,777,234			5,537,379
Interest Bearing Deposits		4,635,993			4,589,059			4,154,825			4,527,524			4,028,087
Interest Bearing Liabilities		4,649,745			4,666,136			4,382,380			4,616,129			4,246,648
Total Equity		670,160			638,999			592,510			651,457			594,063
INCOME STATEMENT DATA
Net Interest Income	$	49,273		$	48,296		$	48,393		$	144,985		$	148,436
Net Interest Income-Fully Tax Equivalent		50,383			49,493			49,712			148,558			152,436
Provision for Credit Losses		3,059			8,480			400			13,059			5,550
Noninterest Income		11,917			20,439			10,835			44,968			32,650
Noninterest Expense		30,393			33,333			29,097			94,431			101,265
Net Income		23,338			22,549			25,252			69,288			64,141
Pretax Pre-Provision Earnings (2)		30,797			35,402			30,131			95,522			79,821
PER SHARE DATA
Basic Net Income Per Common Share	$	0.91		$	0.88		$	0.99		$	2.70		$	2.51
Diluted Net Income Per Common Share		0.91			0.87			0.98			2.69			2.49
Cash Dividends Declared Per Common Share		0.48			0.48			0.46			1.44			1.38
Dividend Payout		52.75	%		55.17	%		46.94	%		53.53	%		36.95	%
Book Value Per Common Share (equity per share issued)	$	27.22		$	25.49		$	21.75		$	27.22		$	21.75
Tangible Book Value Per Common Share (2)		27.07			25.34			21.60			27.07			21.60
Market Value – High	$	72.25		$	66.62		$	57.00		$	73.22		$	77.07
Market Value – Low		57.45			57.59			44.46			57.45			43.05


	Three Months Ended									Nine Months Ended
(Unaudited – Dollars in thousands, except per share data)	September 30,			June 30,			September 30,			September 30,			September 30,
PER SHARE DATA (continued)	2024			2024			2023			2024			2023
Basic Weighted Average Common Shares Outstanding		25,684,407			25,678,231			25,613,456			25,673,275			25,601,493
Diluted Weighted Average Common Shares Outstanding		25,767,739			25,742,871			25,693,535			25,754,357			25,709,841
KEY RATIOS
Return on Average Assets		1.39	%		1.37	%		1.54	%		1.40	%		1.33	%
Return on Average Total Equity		13.85			14.19			16.91			14.21			14.44
Average Equity to Average Assets		10.07			9.62			9.12			9.84			9.21
Net Interest Margin		3.16			3.17			3.21			3.16			3.33
Efficiency (Noninterest Expense/Net Interest Income plus Noninterest Income)		49.67			48.49			49.13			49.71			55.92
Loans to Deposits		87.06			87.66			86.10			87.06			86.10
Investment Securities to Total Assets		17.27			17.11			17.19			17.27			17.19
Tier 1 Leverage (3)		12.18			11.98			11.64			12.18			11.64
Tier 1 Risk-Based Capital (3)		14.50			14.28			13.88			14.50			13.88
Common Equity Tier 1 (CET1) (3)		14.50			14.28			13.88			14.50			13.88
Total Capital (3)		15.75			15.53			15.13			15.75			15.13
Tangible Capital (2)		10.47			9.91			8.62			10.47			8.62
Adjusted Tangible Capital (2)		12.29			12.18			11.74			12.29			11.74
ASSET QUALITY
Loans Past Due 30 – 89 Days	$	829		$	1,615		$	1,782		$	829		$	1,782
Loans Past Due 90 Days or More		95			26			19			95			19
Nonaccrual Loans		57,551			57,124			16,290			57,551			16,290
Nonperforming Loans		57,646			57,150			16,309			57,646			16,309
Other Real Estate Owned		384			384			384			384			384
Other Nonperforming Assets		21			90			45			21			45
Total Nonperforming Assets		58,051			57,624			16,738			58,051			16,738
Individually Analyzed Loans		77,654			78,533			16,739			77,654			16,739
Non-Individually Analyzed Watch List Loans		189,918			189,726			169,621			189,918			169,621
Total Individually Analyzed and Watch List Loans		267,572			268,259			186,360			267,572			186,360
Gross Charge Offs		231			1,076			480			1,811			6,766
Recoveries		88			127			127			407			715
Net Charge Offs/(Recoveries)		143			949			353			1,404			6,051
Net Charge Offs/(Recoveries) to Average Loans		0.01	%		0.08	%		0.03	%		0.04	%		0.17	%
Credit Loss Reserve to Loans		1.65			1.60			1.48			1.65			1.48
Credit Loss Reserve to Nonperforming Loans		145.07			141.23			442.11			145.07			442.11
Nonperforming Loans to Loans		1.13			1.13			0.33			1.13			0.33
Nonperforming Assets to Assets		0.87			0.88			0.26			0.87			0.26
Total Individually Analyzed and Watch List Loans to Total Loans		5.27	%		5.31	%		3.83	%		5.27	%		3.83	%


	Three Months Ended									Nine Months Ended
(Unaudited – Dollars in thousands, except per share data)	September 30,			June 30,			September 30,			September 30,			September 30,
PER SHARE DATA (continued)	2024			2024			2023			2024			2023
OTHER DATA
Full Time Equivalent Employees		639			653			614			639			614
Offices		54			53			53			54			53

___________________
(1)  Core deposits equals deposits less brokered deposits.
(2)  Non-GAAP financial measure – see “Reconciliation of Non-GAAP Financial Measures”.
(3)  Capital ratios for September 30, 2024 are preliminary until the Call Report is filed.


CONSOLIDATED BALANCE SHEETS (in thousands, except share data)
	September 30, 2024			December 31, 2023
	(Unaudited)
ASSETS
Cash and due from banks	$	86,785		$	70,451
Short-term investments		73,405			81,373
Total cash and cash equivalents		160,190			151,824

Securities available-for-sale, at fair value		1,016,649			1,051,728
Securities held-to-maturity, at amortized cost (fair value of $118,861 and $119,215, respectively)		131,157			129,918
Real estate mortgage loans held-for-sale		3,148			1,158

Loans, net of allowance for credit losses of $83,627 and $71,972		4,998,363			4,844,562

Land, premises and equipment, net		59,987			57,899
Bank owned life insurance		112,075			109,114
Federal Reserve and Federal Home Loan Bank stock		21,420			21,420
Accrued interest receivable		28,471			30,011
Goodwill		4,970			4,970
Other assets		108,941			121,425
Total assets	$	6,645,371		$	6,524,029


LIABILITIES
Noninterest bearing deposits	$	1,284,527		$	1,353,477
Interest bearing deposits		4,552,786			4,367,048
Total deposits		5,837,313			5,720,525

Federal Funds purchased		30,000			0
Federal Home Loan Bank advances		0			50,000
Total borrowings		30,000			50,000

Accrued interest payable		14,784			20,893
Other liabilities		64,093			82,818
Total liabilities		5,946,190			5,874,236

STOCKHOLDERS’ EQUITY
Common stock: 90,000,000 shares authorized, no par value
25,974,017 shares issued and 25,506,084 outstanding as of September 30, 2024
25,903,686 shares issued and 25,430,566 outstanding as of December 31, 2023		128,346			127,692
Retained earnings		724,550			692,760
Accumulated other comprehensive income (loss)		(138,136	)		(155,195	)
Treasury stock, at cost (467,933 shares and 473,120 shares as of September 30, 2024 and December 31, 2023, respectively)		(15,668	)		(15,553	)
Total stockholders’ equity		699,092			649,704
Noncontrolling interest		89			89
Total equity		699,181			649,793
Total liabilities and equity	$	6,645,371		$	6,524,029


CONSOLIDATED STATEMENTS OF INCOME (unaudited – in thousands, except share and per share data)

	Three Months Ended September 30,						Nine Months Ended September 30,
		2024			2023			2024			2023
NET INTEREST INCOME
Interest and fees on loans
Taxable	$	86,118		$	78,910		$	252,386		$	223,499
Tax exempt		298			1,008			1,830			2,869
Interest and dividends on securities
Taxable		2,908			3,077			9,051			9,966
Tax exempt		3,921			4,023			11,800			12,387
Other interest income		1,773			1,605			4,721			3,604
Total interest income		95,018			88,623			279,788			252,325

Interest on deposits		45,556			37,108			131,083			95,637
Interest on short-term borrowings		189			3,122			3,720			8,252
Total interest expense		45,745			40,230			134,803			103,889

NET INTEREST INCOME		49,273			48,393			144,985			148,436

Provision for credit losses		3,059			400			13,059			5,550

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		46,214			47,993			131,926			142,886

NONINTEREST INCOME
Wealth advisory fees		2,718			2,298			7,770			6,769
Investment brokerage fees		438			408			1,438			1,370
Service charges on deposit accounts		2,835			2,735			8,332			8,091
Loan and service fees		2,955			2,934			8,855			8,782
Merchant and interchange fee income		898			938			2,653			2,744
Bank owned life insurance income		1,068			1,009			2,994			2,393
Interest rate swap fee income		0			0			0			794
Mortgage banking income (loss)		(7	)		(50	)		68			(184	)
Net securities gains (losses)		0			(35	)		(46	)		(16	)
Net gain (loss) on Visa shares		(15	)		0			8,996			0
Other income		1,027			598			3,908			1,907
Total noninterest income		11,917			10,835			44,968			32,650

NONINTEREST EXPENSE
Salaries and employee benefits		16,476			15,977			49,467			43,414
Net occupancy expense		1,721			1,621			5,159			4,874
Equipment costs		1,452			1,325			4,207			4,189
Data processing fees and supplies		3,768			3,379			11,419			10,305
Corporate and business development		1,369			1,201			4,015			3,930
FDIC insurance and other regulatory fees		966			871			2,571			2,469
Professional fees		2,089			2,114			6,675			6,284
Wire fraud loss		0			0			0			18,058
Other expense		2,552			2,609			10,918			7,742
Total noninterest expense		30,393			29,097			94,431			101,265

INCOME BEFORE INCOME TAX EXPENSE		27,738			29,731			82,463			74,271
Income tax expense		4,400			4,479			13,175			10,130
NET INCOME	$	23,338		$	25,252		$	69,288		$	64,141

BASIC WEIGHTED AVERAGE COMMON SHARES		25,684,407			25,613,456			25,673,275			25,601,493

BASIC EARNINGS PER COMMON SHARE	$	0.91		$	0.99		$	2.70		$	2.51

DILUTED WEIGHTED AVERAGE COMMON SHARES		25,767,739			25,693,535			25,754,357			25,709,841

DILUTED EARNINGS PER COMMON SHARE	$	0.91		$	0.98		$	2.69		$	2.49


LAKELAND FINANCIAL CORPORATION LOAN DETAIL (unaudited, in thousands)

	September 30, 2024					June 30, 2024					September 30, 2023
Commercial and industrial loans:
Working capital lines of credit loans	$	678,079		13.3	%	$	697,754		13.8	%	$	589,345		12.1	%
Non-working capital loans		814,804		16.0			828,523		16.4			812,875		16.7
Total commercial and industrial loans		1,492,883		29.3			1,526,277		30.2			1,402,220		28.8

Commercial real estate and multi-family residential loans:
Construction and land development loans		729,293		14.3			658,345		13.0			633,920		13.0
Owner occupied loans		810,453		15.9			830,018		16.4			811,175		16.6
Nonowner occupied loans		766,821		15.1			762,365		15.1			740,783		15.2
Multifamily loans		243,283		4.8			252,652		5.0			236,581		4.8
Total commercial real estate and multi-family residential loans		2,549,850		50.1			2,503,380		49.5			2,422,459		49.6

Agri-business and agricultural loans:
Loans secured by farmland		157,413		3.1			161,410		3.2			183,241		3.8
Loans for agricultural production		200,971		4.0			199,654		4.0			197,287		4.0
Total agri-business and agricultural loans		358,384		7.1			361,064		7.2			380,528		7.8

Other commercial loans		94,309		1.9			96,703		1.9			125,939		2.6
Total commercial loans		4,495,426		88.4			4,487,424		88.8			4,331,146		88.8

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		261,462		5.1			259,094		5.1			247,114		5.1
Open end and junior lien loans		210,275		4.1			197,861		3.9			189,611		3.9
Residential construction and land development loans		14,200		0.3			12,952		0.3			12,888		0.3
Total consumer 1-4 family mortgage loans		485,937		9.5			469,907		9.3			449,613		9.3

Other consumer loans		103,547		2.1			97,895		1.9			93,737		1.9
Total consumer loans		589,484		11.6			567,802		11.2			543,350		11.2
Subtotal		5,084,910		100.0	%		5,055,226		100.0	%		4,874,496		100.0	%
Less: Allowance for credit losses		(83,627	)				(80,711	)				(72,105	)
Net deferred loan fees		(2,920	)				(2,885	)				(3,531	)
Loans, net	$	4,998,363				$	4,971,630				$	4,798,860


LAKELAND FINANCIAL CORPORATION DEPOSITS AND BORROWINGS (unaudited, in thousands)

	September 30, 2024		June 30, 2024		September 30, 2023
Noninterest bearing demand deposits	$	1,284,527	$	1,212,989	$	1,377,650
Savings and transaction accounts:
Savings deposits		276,468		283,809		315,651
Interest bearing demand deposits		3,273,405		3,274,179		2,891,683
Time deposits:
Deposits of $100,000 or more		787,095		776,314		756,107
Other time deposits		215,818		216,246		315,984
Total deposits	$	5,837,313	$	5,763,537	$	5,657,075
FHLB advances and other borrowings		30,000		55,000		90,000
Total funding sources	$	5,867,313	$	5,818,537	$	5,747,075


LAKELAND FINANCIAL CORPORATION AVERAGE BALANCE SHEET AND NET INTEREST ANALYSIS (UNAUDITED)

	Three Months Ended September 30, 2024							Three Months Ended June 30, 2024							Three Months Ended September 30, 2023
(fully tax equivalent basis, dollars in thousands)	Average Balance			Interest Income		Yield (1)/ Rate		Average Balance			Interest Income		Yield (1)/ Rate		Average Balance			Interest Income		Yield (1)/ Rate
Earning Assets
Loans:
Taxable (2)(3)	$	5,037,855		$	86,118	6.80	%	$	4,993,270		$	84,226	6.78	%	$	4,791,156		$	78,910	6.53	%
Tax exempt (1)		26,493			366	5.50			41,581			783	7.57			58,602			1,258	8.52
Investments: (1)
Securities		1,128,705			7,871	2.77			1,118,776			8,082	2.91			1,171,426			8,169	2.77
Short-term investments		2,841			35	4.90			2,836			35	4.96			2,533			29	4.54
Interest bearing deposits		133,393			1,738	5.18			138,818			1,807	5.24			122,177			1,576	5.12
Total earning assets	$	6,329,287		$	96,128	6.04	%	$	6,295,281		$	94,933	6.07	%	$	6,145,894		$	89,942	5.81	%
Less: Allowance for credit losses		(81,353	)						(74,166	)						(71,997	)
Nonearning Assets
Cash and due from banks		63,744							64,518							68,669
Premises and equipment		59,493							58,702							58,782
Other nonearning assets		285,293							298,619							297,636
Total assets	$	6,656,464						$	6,642,954						$	6,498,984

Interest Bearing Liabilities
Savings deposits	$	280,180		$	45	0.06	%	$	289,107		$	48	0.07	%	$	329,557		$	57	0.07	%
Interest bearing checking accounts		3,295,911			33,822	4.08			3,275,502			33,323	4.09			2,873,795			27,891	3.85
Time deposits:
In denominations under $100,000		215,020			1,914	3.54			217,146			1,871	3.47			211,039			1,507	2.83
In denominations over $100,000		844,882			9,775	4.60			807,304			9,121	4.54			740,434			7,654	4.10
Miscellaneous short-term borrowings		13,752			189	5.48			77,077			1,077	5.62			227,555			3,121	5.44
Total interest bearing liabilities	$	4,649,745		$	45,745	3.91	%	$	4,666,136		$	45,440	3.92	%	$	4,382,380		$	40,230	3.64	%
Noninterest Bearing Liabilities
Demand deposits		1,244,184							1,230,903							1,417,641
Other liabilities		92,375							106,916							106,453
Stockholders’ Equity		670,160							638,999							592,510
Total liabilities and stockholders’ equity	$	6,656,464						$	6,642,954						$	6,498,984
Interest Margin Recap
Interest income/average earning assets					96,128	6.04	%					94,933	6.07	%					89,942	5.81	%
Interest expense/average earning assets					45,745	2.88						45,440	2.90						40,230	2.60
Net interest income and margin				$	50,383	3.16	%				$	49,493	3.17	%				$	49,712	3.21	%

(1)  Tax exempt income was converted to a fully taxable equivalent basis at a 21 percent tax rate. The tax equivalent rate for tax exempt loans and tax exempt securities acquired after January 1, 1983, included the Tax Equity and Fiscal Responsibility Act of 1982 (“TEFRA”) adjustment applicable to nondeductible interest expenses. Taxable equivalent basis adjustments were $1.11 million, $1.20 million and $1.32 million in the three-month periods ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively.
(2)  Loan fees, which are immaterial in relation to total taxable loan interest income for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, are included as taxable loan interest income.
(3)  Nonaccrual loans are included in the average balance of taxable loans.

Reconciliation of Non-GAAP Financial Measures

Tangible common equity, adjusted tangible common equity, tangible assets, adjusted tangible assets, tangible book value per common share, tangible common equity to tangible assets, adjusted tangible common equity to adjusted tangible assets, and pretax pre-provision earnings are non-GAAP financial measures calculated based on GAAP amounts. Tangible common equity is calculated by excluding the balance of goodwill and other intangible assets from the calculation of equity, net of deferred tax. Tangible assets are calculated by excluding the balance of goodwill and other intangible assets from the calculation of total assets, net of deferred tax. Adjusted tangible assets and adjusted tangible common equity remove the fair market value adjustment impact of the available-for-sale investment securities portfolio in accumulated other comprehensive income (loss) (“AOCI”). Tangible book value per common share is calculated by dividing tangible common equity by the number of shares outstanding less true treasury stock. Pretax pre-provision earnings is calculated by adding net interest income to noninterest income and subtracting noninterest expense. Because not all companies use the same calculation of tangible common equity and tangible assets, this presentation may not be comparable to other similarly titled measures calculated by other companies. However, management considers these measures of the company’s value meaningful to understanding of the company’s financial information and performance.

A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).

	Three Months Ended									Nine Months Ended
	Sep. 30, 2024			Jun. 30, 2024			Sep. 30, 2023			Sep. 30, 2024			Sep. 30, 2023
Total Equity	$	699,181		$	654,590		$	557,184		$	699,181		$	557,184
Less: Goodwill		(4,970	)		(4,970	)		(4,970	)		(4,970	)		(4,970	)
Plus: DTA Related to Goodwill		1,167			1,167			1,167			1,167			1,167
Tangible Common Equity		695,378			650,787			553,381			695,378			553,381
Market Value Adjustment in AOCI		137,435			169,747			227,375			137,435			227,375
Adjusted Tangible Common Equity		832,813			820,534			780,756			832,813			780,756

Assets	$	6,645,371		$	6,568,807		$	6,426,844		$	6,645,371		$	6,426,844
Less: Goodwill		(4,970	)		(4,970	)		(4,970	)		(4,970	)		(4,970	)
Plus: DTA Related to Goodwill		1,167			1,167			1,167			1,167			1,167
Tangible Assets		6,641,568			6,565,004			6,423,041			6,641,568			6,423,041
Market Value Adjustment in AOCI		137,435			169,747			227,375			137,435			227,375
Adjusted Tangible Assets		6,779,003			6,734,751			6,650,416			6,779,003			6,650,416

Ending Common Shares Issued		25,684,916			25,679,066			25,614,163			25,684,916			25,614,163

Tangible Book Value Per Common Share	$	27.07		$	25.34		$	21.60		$	27.07		$	21.60

Tangible Common Equity/Tangible Assets		10.47	%		9.91	%		8.62	%		10.47	%		8.62	%
Adjusted Tangible Common Equity/Adjusted Tangible Assets		12.29	%		12.18	%		11.74	%		12.29	%		11.74	%

Net Interest Income	$	49,273		$	48,296		$	48,393		$	144,985		$	148,436
Plus: Noninterest Income		11,917			20,439			10,835			44,968			32,650
Minus: Noninterest Expense		(30,393	)		(33,333	)		(29,097	)		(94,431	)		(101,265	)

Pretax Pre-Provision Earnings	$	30,797		$	35,402		$	30,131		$	95,522		$	79,821

Adjusted core noninterest income, adjusted core noninterest expense, adjusted earnings before income taxes, core operational profitability, core operational diluted earnings per common share and adjusted core efficiency ratio are non-GAAP financial measures calculated based on GAAP amounts. These adjusted amounts are calculated by excluding the impact of the net gain on Visa shares, legal accrual, and wire fraud loss and associated insurance and loss recoveries and adjustments to salaries and employee benefits expense for the periods presented below. Management considers these measures of financial performance to be meaningful to understanding the company’s core business performance for these periods.

A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).

	Three Months Ended									Nine Months Ended
	Sep. 30, 2024			Jun. 30, 2024			Sep. 30, 2023			Sep. 30, 2024			Sep. 30, 2023
Noninterest Income	$	11,917		$	20,439		$	10,835		$	44,968		$	32,650
Less: Net (Gain) Loss on Visa Shares		15			(9,011	)		0			(8,996	)		0
Less: Insurance Recoveries		0			0			0			(1,000	)		0
Adjusted Core Noninterest Income	$	11,932		$	11,428		$	10,835		$	34,972		$	32,650

Noninterest Expense	$	30,393		$	33,333		$	29,097		$	94,431		$	101,265
Less: Legal Accrual		0			(4,537	)		0			(4,537	)		0
Less: Wire Fraud Loss		0			0			0			0			(18,058	)
Plus: Salaries and Employee Benefits (1)		0			0			0			0			1,850
Adjusted Core Noninterest Expense	$	30,393		$	28,796		$	29,097		$	89,894		$	85,057

Earnings Before Income Taxes	$	27,738		$	26,922		$	29,731		$	82,463		$	74,271
Adjusted Core Impact:
Noninterest Income		15			(9,011	)		0			(9,996	)		0
Noninterest Expense		0			4,537			0			4,537			16,208
Total Adjusted Core Impact		15			(4,474	)		0			(5,459	)		16,208
Adjusted Earnings Before Income Taxes		27,753			22,448			29,731			77,004			90,479
Tax Effect		(4,404	)		(3,261	)		(4,479	)		(11,817	)		(14,123	)
Core Operational Profitability (2)	$	23,349		$	19,187		$	25,252		$	65,187		$	76,356

Diluted Earnings Per Common Share	$	0.91		$	0.87		$	0.98		$	2.69		$	2.49
Impact of Adjusted Core Items		0.00			(0.13	)		0.00			(0.16	)		0.48
Core Operational Diluted Earnings Per Common Share	$	0.91		$	0.74		$	0.98		$	2.53		$	2.97

Adjusted Core Efficiency Ratio		49.66	%		48.22	%		49.13	%		49.95	%		46.97	%

(1) In 2023, long-term, incentive-based compensation accruals were reduced as a result of the wire fraud loss and associated insurance and loss recoveries.
(2) Core operational profitability was $11,000 higher and $3.4 million lower than reported net income for the three months ended September 30, 2024 and June 30, 2024, respectively. Core operational profitability was $4.1 million lower and $12.2 million higher than reported net income for the nine months ended September 30, 2024 and 2023, respectively.

Contact
Lisa M. O’Neill
Executive Vice President and Chief Financial Officer
(574) 267-9125
lisa.oneill@lakecitybank.com

The MIL Network –

January 25, 2025

MIL-OSI Economics: ASEAN and partners enhance disaster resilience, commemorate 20th Anniversary of Indian Ocean Tsunami

Source: ASEAN

BANDAR SERI BEGAWAN, 25 October 2024 — ASEAN, together with partners, reaffirmed the commitment to strengthen cooperation in enhancing disaster resilience in the region at the 12th ASEAN Ministerial Meeting on Disaster Management (AMMDM) and 13th Meeting of Conference of the Parties to the ASEAN Agreement on Disaster Management and Emergency Response (AADMER), and their related meetings.

The meetings took place on 24-25 October, hosted by Brunei Darussalam as the Chair of AMMDM in 2024, and chaired by H.E. Dato Seri Setia Awang Haji Ahmaddin bin Haji Abdul Rahman, Minister of Home Affairs of Brunei Darussalam, and vice-chaired by H.E. General Kun Kim, Senior Minister and First Vice President of the National Committee of Disaster Management of the Kingdom of Cambodia.

The ASEAN Commemorative Event of the 20th Anniversary of the Indian Ocean Tsunami in Brunei Darussalam, ASEAN Day on Disaster Management 2024 and the International Day for Disaster Risk Reduction were also held at the sidelines of the meetings.

Taking place as a joint session, the 12th AMMDM and 13th Meeting of COP to AADMER noted with satisfaction the progress in the implementation of the AADMER Work Programme 2021-2025. Under theme of Brunei Darussalam’s AMMDM Chairmanship “Building a Resilient ASEAN through Inclusive and Sustainable Disaster Recovery”, the Meeting launched the ASEAN Ministerial Declaration on Building a Resilient ASEAN through Inclusive and Sustainable Disaster Recovery. As 2024 marks the 20th Anniversary of the Indian Ocean Tsunami, the ASEAN Ministerial Statement on the Commemoration of the 20th Anniversary of Indian Ocean Tsunami was also issued.

The Meeting noted the achievements in 2024 across all Priority Programmes of the AADMER Work Programme (AWP) 2021-2025, such as the ASEAN Capacity Building Roadmap 2025-2030 on Disaster Management, the ASEAN Disaster Risk Communication Framework (ADRCF), the continued strengthening of the Disaster Emergency Logistics System for ASEAN (DELSA), the ASEAN Emergency Response and Assessment Team (ASEAN-ERAT) trainings, the AHA Centre Executive Leadership in Emergency and Disaster Management for ASEAN Programme (ACE-LEDMP) trainings, the ASEAN Strategic Policy Dialogue on Disaster Management (SPDDM) 2024, and the first ASEAN Standards and Certiﬁcation for Experts in Disaster Management (ASCEND) Competency Assessment.

The Meetings exchanged views towards full and effective implementation of the AADMER Work Programme (AWP) 2021-2025, and advancing the implementation of the ASEAN Declaration on ‘One ASEAN, One Response’ particularly through the roles of the ASEAN Coordinating Centre for Humanitarian Assistance on disaster management (AHA Centre), and developing a new AWP 2026-2030.

The meetings with dialogue partners, i.e. the 4th AMMDM Plus China, 4th AMMDM Plus Japan and the 3rd AMMDM Plus Republic of Korea (ROK), were held on 24 October, reiterated commitment and resolve to intensify collaboration with ASEAN in building disaster resilience and advancing disaster risk reduction in the region.

The ministerial meetings were preceded by the 45th Meeting of ASEAN Committee on Disaster Management (ACDM), 20th Meeting of the Governing Board of the AHA Centre, 6th Meeting of ASEAN Disaster Resilience Platform (ADRP), 8th Meeting of the ACDM Plus China, 8th Meeting of the ACDM Plus Japan, 7th Meeting of the ACDM Plus ROK.

The next AMMDM and COP to AADMER Meeting will be hosted by Cambodia as the Chair of AMMDM in 2025.

***

More details:

The Chairman’s Statement for the 12th AMMDM and 13th COP to AADMER, here.The video of the ASEAN Commemoration of the 20th Year of Indian Ocean Tsunami, hereThe video for the ASEAN Magazine Special Issue No. 39–40, “20 Years Since the Indian Ocean Tsunami.” hereThe video of the Commemoration of the International Day for Disaster Risk Reduction (IDDR), here.The post ASEAN and partners enhance disaster resilience, commemorate 20th Anniversary of Indian Ocean Tsunami appeared first on ASEAN Main Portal.

MIL OSI Economics –

January 25, 2025

MIL-OSI Video: President Biden Delivers Remarks at the Gila River Indian Community in Arizona

Source: United States of America – The White House (video statements)

President Biden discusses the Biden-Harris Administration’s record of delivering for Tribal communities, including keeping his promise to make this historic visit to Indian Country – his first as President.

Laveen Village, AZ

https://www.youtube.com/watch?v=j4iCQT3cD9g

MIL OSI Video –

January 25, 2025

MIL-OSI Europe: ASIA/INDIA – Internal migrants: Catholic communities intervene for their material and spiritual needs

Source: Agenzia Fides – MIL OSI

New Delhi (Agenzia Fides) – With over 450 million internal migrants (out of a population of 1.4 billion inhabitants), India is the scene of a phenomenon that has no equal in the world. Migrants, who move to other Indian states mainly for reasons related to the search for work and education, for family needs or for emergency events such as natural disasters, often face challenges related to displacement, exploitation, access to basic services. And also to faith.Among the migrants there are Catholic and Christian Indian citizens and for this reason Christian Churches in India have become aware of the phenomenon and have studied interventions and solutions to accompany these people on the path of social reintegration and in their spiritual and pastoral needs. The spirit is to “give migrants in India a second chance”, accompanying them in the process of development, job search and training, assisting them, especially in the early stages of their new life, with social and food security programs and educational opportunities for children whose families have moved to a context different from their home. To achieve these goals, the Catholic Church in India has inaugurated a digital portal that supports migrants in the country, in various areas. Presented by Cardinal Philip Neri Ferrão, Archbishop of Goa and President of the Conference Catholic Bishops of Latin Rite of India (CCBI), the new web portal, integrated into the “Catholic Connect” platform, is inspired by and seeks to put into practice the indications of Pope Francis who, with regard to migrants, has repeatedly cited four verbs: welcome, protect, promote, integrate. The action of the Catholic Church, at all levels, also aims to ensure that, thanks to the aid received, migrants and internally displaced persons and especially unaccompanied minors, do not fall victim to human trafficking.As explained by Father Jaison Vadassery, Executive Secretary of the CCBI Commission for Migrants, the online portal allows migrants to register and access church services (parishes, Caritas, schools, hospitals, etc.) regardless of their location: the aim is to ensure that migrants can find and feel the warmth of a community, even if they are far from their home or country of origin: “It is important that they integrate harmoniously into the host communities, while remaining tied to their cultural and religious roots”, explained Father Vadassery. The platform also helps migrants on a legal and bureaucratic level, for enrolling in government assistance programs or for receiving humanitarian aid in the event of emergencies and natural disasters, which cause displacement.Monsignor Alwyn D’Silva, Auxiliary Bishop of Mumbai, referring to Pope Francis’ encyclical “Fratelli Tutti”, recalled the importance of pastoral care for migrants, especially for the most vulnerable and poor, who have low-skilled jobs, who face exploitation and are without legal protection. The Church, he said, has the task of accompanying them not only in moving from one place to another and on the path of social reintegration, but also on the path of faith. For this reason, the Commission for Migrants has presented a pastoral plan that involves parishes across the country in meeting the spiritual and social needs of migrants. (PA) (Agenzia Fides, 25/10/2024)
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MIL OSI Europe News –

January 25, 2025

MIL-OSI Global: Why returning the name Kuwohi to the Great Smoky Mountains matters

Source: The Conversation – USA – By Seth T. Kannarr, PhD Student in Geography, University of Tennessee

View from the overlook on Kuwohi of the mountain peaks and ridges of Great Smoky Mountains National Park.

Getty Images

It’s not every day that the name of a mountain is restored to the one used by Indigenous peoples for centuries.

But after nearly two years of trying, the Eastern Band of Cherokee Indians finally convinced the U.S. Board on Geographic Names on Sept. 18, 2024, to formally agree to rename the highest point in the Great Smoky Mountains National Park of Tennessee to Kuwohi (koo-whoa-hee).

The mountain, known as “Clingmans Dome” since 1859, has been a sacred place for the Cherokee people, serving as a place of prayer, reflection and gathering of mulberries for medicine. In fact, the name Kuwohi translates to “the mulberry place” in Tsalagi, the Cherokee language.

Though known as Kuwohi by the Cherokee people for hundreds of years, explorer Arnold Guyot effectively ignored that history after he surveyed the mountain range in 1859. Guyot named the peak “Clingmans Dome” after his friend Thomas Lanier Clingman, a North Carolina U.S. senator and a Confederate brigadier general during the Civil War. Clingman never set foot on this mountain, but his name remained there for 165 years until now.

What is place name repatriation?

The government’s renaming of the mountain to Kuwohi is a significant example of place name repatriation, or the return of an original, Indigenous name to a particular place or landscape.

Sometimes the primary motivation for place renaming is to remove an offensive or irrelevant place name from the landscape, such as the renaming of Squaw Peak in Arizona to Piostewa Peak in 2008.

In other cases, such as the renaming of Mount McKinley in Alaska to Denali in 2016, the motivation was to create a more authentic and historically accurate name for a particular place.

In the case of Kuwohi, the return to its original name was a mixture of both. The government’s decision recognized the original Indigenous name and removed the name of a white man who defended the enslavement of African people. It is also about restoring a larger sense of respect and recognition of Indigenous identity across the landscape.

Just as important is the fact that it was individuals from the Eastern Band of Cherokee Indians who put forward this proposal and remained the lead throughout the process.

Place naming is only truly reparative if these processes truly reflect the agency and intent of these historically oppressed groups. Otherwise, it contributes to the long history of dismissing Indigenous claims to land and culture by not involving them.

View of observation tower on Kuwohi in Great Smoky Mountains National Park.
Joshua Moore/Getty Images

Why does place naming matter?

A name is one of the most fundamental ways to identify and give meaning to places. In other words, the name of the place makes a big difference in how people perceive it.

There is growing public recognition that place names can transmit harmful messages that misrepresent the history and identity of minority communities. Place names also can demonstrate how those in power have used them to disrespect and misrepresent ethnic and racial groups that have been historically discriminated against.

For those groups, the U.S. Department of the Interior’s Advisory Committee on Reconciliation in Place Names found in 2022 that derogatory place names are a source of recurring trauma.

If place naming did not matter, disputes over name changes would not occur. Some critics find place renaming to be an example of unnecessary political correctness, while others see it as a meaningful solution that will leave a lasting positive impact.

The elimination of names of Confederate generals from some U.S. military bases provides another example. Former President Donald Trump has pledged to restore the name “Fort Bragg” to the North Carolina Army base that’s known today as Fort Liberty if reelected. Originally named after Braxton Bragg, a slave-owning Confederate general, the fort was one of nine U.S. installations that the Defense Department ordered in 2023 to have their names changed to among 3,700 recommendations.

Trump’s stance exemplifies the wave of backlash that has occurred against local and state school officials across the country that have removed the names of Confederate generals and others from public buildings.

Lavita Hill (L) and Mary Crowe in 2022.
Cherokee One Feather

Despite such backlash, efforts by Indigenous people and civil rights advocates slowly move forward and are seen across the U.S. in places like streets, neighborhoods, college campuses and beyond.

For Lavita Hill and Mary Crowe, the two members of the Eastern Band of Cherokee Indians who took the lead on submitting the proposal, the renaming of Kuwohi was a moment of success. Their campaign was heavily inspired by the renaming of Mount Doane to First Peoples Mountain in Yellowstone National Park in 2022.

Crowe told reporters that she saw friends and relatives shed tears when they learned of the name change. “It was humbling,” she said. “It was beautiful.”

What comes next?

The success of the effort to restore the name Kuwohi may help other communities in their ongoing place renaming efforts.

One such proposal involves a 100-year-old fight to rename Mount Rainier in Washington state to “Tacoma,” the original name given to it by the Salish people of the Pacific Northwest.

View of the Great Smoky Mountains at sunset from Kuwohi.
Wolfgang Kaehler/LightRocket/Getty Images

This movement began in 1924 among the Salish and other groups because its namesake, Peter Rainier, was a British naval officer who was known as being “anti-American.”

Another example is a push by 20 different Indigenous tribes, including the Lakota Nation and the Oglala Sioux Tribe, to rename Devils Tower in Wyoming to Bear Lodge. The current name of this butte resulted from a poor English translation of the original Indigenous name of “bear lodge” to “bad god’s tower.” Over time, the name was simplified to “Devils Tower.”

As geographers who have studied the significance of place renaming, we have learned that it is important to engage the folks that these movements will benefit most in all conversations and decisions.

What is at stake is not just removing insulting names, but also ensuring that the process of changing place names is collaborative of all Americans, especially historically oppressed communities, to truly be restorative and meaningful for society.

Seth T. Kannarr is affiliated with the Great Smoky Mountains National Park as an Education Branch VIP (Volunteer-In-Parks) part-time.

Derek H. Alderman once served on the Federal Advisory Committee on Reconciliation in Place Names, U.S. Department of Interior.

– ref. Why returning the name Kuwohi to the Great Smoky Mountains matters – https://theconversation.com/why-returning-the-name-kuwohi-to-the-great-smoky-mountains-matters-240644

MIL OSI – Global Reports –

January 25, 2025

MIL-OSI USA: FEMA Calls in North Carolina May Come from Unknown Phone Numbers

Source: US Federal Emergency Management Agency

Headline: FEMA Calls in North Carolina May Come from Unknown Phone Numbers

FEMA Calls in North Carolina May Come from Unknown Phone Numbers

RALEIGH, N.C. – Homeowners and renters in 39 North Carolina counties and tribal members of the Eastern Band of Cherokee Indians who applied for FEMA disaster assistance following Helene in North Carolina should be aware that FEMA representatives may call from unfamiliar area codes and phone numbers or show SPAM or no caller ID.It is important to answer the call. FEMA representatives are reaching out to citizens that have applied for disaster assistance. Representatives may call for a variety of reasons such as issues with applications (missing documents, insurance settlement paperwork, etc.), follow-up on access and functional needs and/or to schedule inspections at the address where the damage was reported. Inspections are required to determine whether a home is safe, sanitary, functional and accessible. If an inspection cannot be scheduled, that may cause a delay in FEMA’s review of the application.Take Steps to Avoid ScamsAlways be alert to these illegitimate practices:A FEMA inspector calls, and you did not submit a FEMA application.A FEMA inspector asks for your banking information. (FEMA inspectors are never authorized to collect your personal financial information.)A payment is requested from someone who says they are from FEMA. (FEMA will never request payment.) If any of these things happen to you — or if you receive a call from someone saying they are a FEMA representative, but you aren’t sure, call the FEMA Helpline at 800-621-3362 to report the incident. The Helpline will be able to help you stop the processing of an application made in your name without your knowledge or apply for FEMA assistance if you live within a declared county.If you believe you are the victim of a scam related to Helene response, you should file a complaint with the North Carolina Department of Justice by visiting ncdoj.gov/complaint or calling toll-free at 877-566-7226.If you have knowledge of fraud, waste or abuse, you can report these tips – 24 hours a day, seven days a week – to the FEMA Disaster Fraud Hotline at 866-720-5721. You can also email StopFEMAFraud@fema.dhs.gov to report a tip.
barbara.murien…
Fri, 10/25/2024 – 14:00

MIL OSI USA News –

January 25, 2025

MIL-OSI: Fentura Financial, Inc. Announces Third Quarter 2024 Earnings (unaudited)

Source: GlobeNewswire (MIL-OSI)

Dollars in thousands except per share amounts. Certain items in the prior period financial statements have been reclassified to conform with the September 30, 2024 presentation.

FENTON, Mich., Oct. 25, 2024 (GLOBE NEWSWIRE) — Fentura Financial, Inc. (OTCQX: FETM) announces quarterly net income results of $867 and $5,637 for the three and nine months ended September 30, 2024, respectively.

Ronald L. Justice, President and CEO, stated, “We ended the 2024 third quarter with record total assets, deposits, and shareholders’ equity. These results are a testament to the continued hard work of our team members, and the local value we provide our Michigan communities. During the third quarter, we announced a merger with ChoiceOne Financial Services, Inc., pursuant to which ChoiceOne and Fentura will merge in an all-stock transaction. Once completed, the combination will create the third largest publicly traded bank in Michigan with approximately $4.3 billion in consolidated total assets and 56 offices in Western, Central and Southeastern Michigan. We continue to expect to close the transaction in the first quarter of 2025, subject to the satisfaction of customary closing conditions and regulatory approvals.”

Following is a discussion of our financial performance as of, and for the three and nine months ended September 30, 2024. At the end of this document is a list of abbreviations and acronyms.

Results of Operations (unaudited)
The following table outlines our QTD results of operations and provides certain performance measures as of, and for the three months ended:

	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
INCOME STATEMENT DATA
Interest income	$	22,194		$	21,487		$	21,541		$	21,033		$	20,416
Interest expense		10,202			9,650			9,315			8,526			7,757
Net interest income		11,992			11,837			12,226			12,507			12,659
Credit loss expense (reversal)		1,203			796			(43	)		(190	)		(309	)
Noninterest income		2,210			2,314			2,355			2,145			2,338
Noninterest expenses		11,974			10,921			11,166			10,121			10,594
Federal income tax expense		158			454			668			937			937
Net income	$	867		$	1,980		$	2,790		$	3,784		$	3,775
PER SHARE
Earnings	$	0.19		$	0.44		$	0.63		$	0.85		$	0.85
Dividends	$	0.11		$	0.11		$	0.11		$	0.10		$	0.10
Tangible book value⁽¹⁾	$	30.51		$	29.84		$	29.38		$	28.92		$	27.64
Quoted market value
High	$	40.00		$	24.39		$	27.20		$	27.20		$	23.74
Low	$	22.16		$	22.33		$	24.00		$	22.26		$	19.10
Close⁽¹⁾	$	39.07		$	22.50		$	24.40		$	27.20		$	23.74
PERFORMANCE RATIOS
Return on average assets		0.19	%		0.45	%		0.63	%		0.86	%		0.86	%
Return on average shareholders’ equity		2.37	%		5.59	%		7.98	%		11.11	%		11.27	%
Return on average tangible shareholders’ equity		2.54	%		5.98	%		8.55	%		11.94	%		12.14	%
Efficiency ratio		84.31	%		77.17	%		76.58	%		69.08	%		70.64	%
Yield on average earning assets (FTE)		5.17	%		5.18	%		5.15	%		5.06	%		4.92	%
Rate on interest bearing liabilities		3.28	%		3.22	%		3.11	%		2.90	%		2.66	%
Net interest margin to average earning assets (FTE)		2.80	%		2.85	%		2.92	%		3.01	%		3.05	%
BALANCE SHEET DATA⁽¹⁾
Total investment securities	$	99,724		$	100,167		$	103,210		$	107,615		$	109,543
Gross loans	$	1,442,389		$	1,459,929		$	1,461,465		$	1,473,471		$	1,483,720
Allowance for credit losses	$	14,700		$	15,300		$	15,300		$	15,400		$	15,400
Total assets	$	1,807,370		$	1,756,629		$	1,764,629		$	1,738,952		$	1,744,939
Total deposits	$	1,470,586		$	1,427,059		$	1,438,408		$	1,394,182		$	1,401,797
Borrowed funds	$	179,970		$	178,397		$	178,500		$	198,500		$	201,050
Total shareholders’ equity	$	146,398		$	143,301		$	141,074		$	138,702		$	132,902
Net loans to total deposits		97.08	%		101.23	%		100.54	%		104.58	%		104.75	%
Common shares outstanding		4,495,005			4,490,087			4,484,447			4,470,871			4,466,221
QTD BALANCE SHEET AVERAGES
Total assets	$	1,797,307		$	1,762,651		$	1,771,614		$	1,740,526		$	1,739,510
Earning assets	$	1,708,177		$	1,669,862		$	1,683,708		$	1,649,091		$	1,646,848
Interest bearing liabilities	$	1,237,665		$	1,204,370		$	1,205,162		$	1,165,064		$	1,156,835
Total shareholders’ equity	$	145,240		$	142,577		$	140,574		$	135,157		$	132,860
Total tangible shareholders’ equity	$	135,959		$	133,252		$	131,204		$	125,723		$	123,349
Earned common shares outstanding		4,466,951			4,461,580			4,449,376			4,443,463			4,437,415
Unvested stock grants		26,500			26,500			31,821			26,018			26,668
Total common shares outstanding		4,493,451			4,488,080			4,481,197			4,469,481			4,464,083
ASSET QUALITY
Nonperforming loans to gross loans ⁽¹⁾		0.71	%		0.66	%		0.39	%		0.38	%		0.24	%
Nonperforming assets to total assets ⁽¹⁾		0.58	%		0.56	%		0.34	%		0.35	%		0.23	%
Allowance for credit losses to gross loans ⁽¹⁾		1.02	%		1.05	%		1.05	%		1.05	%		1.04	%
Net charge-offs (recoveries) to QTD average gross loans		0.12	%		0.05	%		—	%	(0.01)%			(0.03)%
Credit loss expense (reversal) to QTD average gross loans		0.08	%		0.05	%		—	%	(0.01)%			(0.02)%
CAPITAL RATIOS⁽¹⁾
Total capital to risk weighted assets		12.48	%		12.38	%		12.27	%		11.91	%		11.59	%
Tier 1 capital to risk weighted assets		11.42	%		11.28	%		11.17	%		10.82	%		10.51	%
CET1 capital to risk weighted assets		10.40	%		10.28	%		10.17	%		9.83	%		9.53	%
Tier 1 leverage ratio		8.78	%		8.92	%		8.78	%		8.77	%		8.58	%

⁽¹⁾At end of period

The following table outlines our YTD results of operations and provides certain performance measures as of, and for the nine months ended (unaudited):

	9/30/2024			9/30/2023			9/30/2022			9/30/2021			9/30/2020
INCOME STATEMENT DATA
Interest income	$	65,222		$	58,648		$	41,438		$	35,161		$	34,355
Interest expense		29,167			19,561			3,122			2,091			4,952
Net interest income		36,055			39,087			38,316			33,070			29,403
Credit loss expense (reversal)		1,956			132			2,258			(218	)		4,652
Noninterest income		6,879			7,126			7,997			11,092			15,190
Noninterest expenses		34,061			32,547			30,870			27,815			23,939
Federal income tax expense		1,280			2,689			2,616			3,328			3,271
Net income	$	5,637		$	10,845		$	10,569		$	13,237		$	12,731
PER SHARE
Earnings	$	1.26		$	2.45		$	2.39		$	2.86		$	2.73
Dividends	$	0.33		$	0.3		$	0.27		$	0.24		$	0.225
Tangible book value⁽¹⁾	$	30.51		$	27.64		$	25.22		$	26.53		$	23.50
Quoted market value
High	$	40.00		$	24.10		$	29.25		$	27.40		$	26.00
Low	$	22.16		$	18.70		$	23.00		$	21.90		$	12.55
Close⁽¹⁾	$	39.07		$	23.74		$	23.00		$	25.75		$	16.93
PERFORMANCE RATIOS
Return on average assets		0.42	%		0.85	%		0.95	%		1.36	%		1.45	%
Return on average shareholders’ equity		5.27	%		11.15	%		11.71	%		14.55	%		15.79	%
Return on average tangible shareholders’ equity		5.64	%		12.03	%		12.75	%		15.00	%		16.40	%
Efficiency ratio		79.33	%		70.43	%		66.66	%		62.98	%		53.68	%
Yield on average earning assets (FTE)		5.17	%		4.84	%		3.99	%		3.83	%		4.12	%
Rate on interest bearing liabilities		3.20	%		2.35	%		0.49	%		0.37	%		0.93	%
Net interest margin to average earning assets (FTE)		2.86	%		3.23	%		3.69	%		3.60	%		3.52	%
BALANCE SHEET DATA⁽¹⁾
Total investment securities	$	99,724		$	109,543		$	129,886		$	138,476		$	78,179
Gross loans	$	1,442,389		$	1,483,720		$	1,350,851		$	1,015,177		$	1,060,885
Allowance for credit losses	$	14,700		$	15,400		$	12,200		$	10,500		$	10,100
Total assets	$	1,807,370		$	1,744,939		$	1,588,592		$	1,329,300		$	1,284,845
Total deposits	$	1,470,586		$	1,401,797		$	1,345,209		$	1,144,291		$	1,061,470
Borrowed funds	$	179,970		$	201,050		$	116,600		$	50,000		$	96,217
Total shareholders’ equity	$	146,398		$	132,902		$	121,630		$	124,809		$	114,081
Net loans to total deposits		97.08	%		104.75	%		99.51	%		87.80	%		98.99	%
Common shares outstanding		4,495,005			4,466,221			4,434,937			4,569,935			4,691,142
YTD BALANCE SHEET AVERAGES
Total assets	$	1,777,188		$	1,710,941		$	1,485,489		$	1,297,657		$	1,171,415
Earning assets	$	1,687,249		$	1,620,015		$	1,391,179		$	1,230,553		$	1,116,861
Interest bearing liabilities	$	1,215,731		$	1,111,687		$	858,600		$	748,472		$	711,449
Total shareholders’ equity	$	142,796		$	130,068		$	120,704		$	121,659		$	107,711
Total tangible shareholders’ equity	$	133,470		$	120,482		$	110,792		$	117,991		$	103,712
Earned common shares outstanding		4,459,303			4,428,963			4,425,818			4,630,709			4,665,951
Unvested stock grants		28,274			28,530			25,462			21,088			13,966
Total common shares outstanding		4,487,577			4,457,493			4,451,280			4,651,797			4,679,917
ASSET QUALITY
Nonperforming loans to gross loans ⁽¹⁾		0.71	%		0.24	%		0.12	%		0.82	%		0.07	%
Nonperforming assets to total assets ⁽¹⁾		0.58	%		0.23	%		0.12	%		0.63	%		0.06	%
Allowance for credit losses to gross loans ⁽¹⁾		1.02	%		1.04	%		0.90	%		1.03	%		0.95	%
Net charge-offs (recoveries) to YTD average gross loans		0.18	%	(0.03)%				0.05	%		0.02	%		0.03	%
Credit loss expense (reversal) to YTD average gross loans		0.13	%		0.01	%		0.19	%	(0.02)%				0.44	%
CAPITAL RATIOS⁽¹⁾
Total capital to risk weighted assets		12.48	%		11.59	%		10.96	%		13.63	%		15.57	%
Tier 1 capital to risk weighted assets		11.42	%		10.51	%		10.07	%		12.64	%		14.40	%
CET1 capital to risk weighted assets		10.40	%		9.53	%		9.04	%		11.33	%		12.77	%
Tier 1 leverage ratio		8.78	%		8.58	%		8.91	%		10.21	%		9.86	%

⁽¹⁾At end of period

Income Statement Breakdown and Analysis

	Quarter to Date
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
Net income	$	867		$	1,980		$	2,790		$	3,784		$	3,775
Acquisition related items (net of tax)
Other acquisition related expenses		753			—			—			—			—
Amortization of core deposit intangibles		35			34			36			60			60
Total acquisition related items (net of tax)		788			34			36			60			60
Other nonrecurring items (net of tax)
Proxy contest related expenses		—			—			—			—			—
Prepayment penalties collected		(24	)		(40	)		(58	)		(85	)		(29	)
Total other nonrecurring items (net of tax)		(24	)		(40	)		(58	)		(85	)		(29	)
Adjusted net income from operations	$	1,631		$	1,974		$	2,768		$	3,759		$	3,806

Net interest income	$	11,992		$	11,837		$	12,226		$	12,507		$	12,659
Prepayment penalties collected		(31	)		(51	)		(73	)		(107	)		(37	)
Adjusted net interest income	$	11,961		$	11,786		$	12,153		$	12,400		$	12,622

PERFORMANCE RATIOS
Based on adjusted net income from operations
Earnings per share	$	0.37		$	0.44		$	0.62		$	0.85		$	0.86
Return on average assets		0.36	%		0.45	%		0.63	%		0.86	%		0.87	%
Return on average shareholders’ equity		4.47	%		5.57	%		7.92	%		11.03	%		11.37	%
Return on average tangible shareholders’ equity		4.77	%		5.96	%		8.49	%		11.86	%		12.24	%
Efficiency ratio		77.45	%		77.15	%		76.65	%		69.06	%		70.31	%

Based on adjusted net interest income
Yield on average earning assets (FTE)		5.16	%		5.17	%		5.13	%		5.03	%		4.91	%
Rate on interest bearing liabilities		3.28	%		3.22	%		3.11	%		2.90	%		2.66	%
Net interest margin to average earning assets (FTE)		2.79	%		2.84	%		2.90	%		2.98	%		3.04	%

	Year to Date September 30						Variance
		2024			2023		Amount			%
Net income	$	5,637		$	10,845		$	(5,208	)	(48.02)%
Acquisition related items (net of tax)
Other acquisition related expenses		753			—			753		N/M
Amortization of core deposit intangibles		105			180			(75	)	(41.67)%
Total acquisition related items (net of tax)		858			180			678		376.67	%
Other nonrecurring items (net of tax)
Proxy contest related expenses		—			413			(413	)	(100.00)%
Prepayment penalties collected		(122	)		(133	)		11		(8.27)%
Total other nonrecurring items (net of tax)		(122	)		280			(402	)	(143.57)%
Adjusted net income from operations	$	6,373		$	11,305		$	(4,932	)	(43.63)%

Net interest income	$	36,055		$	39,087		$	(3,032	)	(7.76)%
Prepayment penalties collected		(155	)		(169	)		14		(8.28)%
Adjusted net interest income	$	35,900		$	38,918		$	(3,018	)	(7.75)%

PERFORMANCE RATIOS
Based on adjusted net income from operations
Earnings per share	$	1.43		$	2.55		$	(1.12	)	(43.92)%
Return on average assets		0.48	%		0.88	%				(0.40)%
Return on average shareholders’ equity		5.96	%		11.62	%				(5.66)%
Return on average tangible shareholders’ equity		6.38	%		12.55	%				(6.17)%
Efficiency ratio		77.08	%		69.06	%				8.02	%

Based on adjusted net interest income
Yield on average earning assets (FTE)		5.16	%		4.83	%				0.33	%
Rate on interest bearing liabilities		3.20	%		2.35	%				0.85	%
Net interest margin to average earning assets (FTE)		2.85	%		3.22	%				(0.37)%

Average Balances, Interest Rate, and Net Interest Income

The following tables present the daily average amount outstanding for each major category of interest earning assets, nonearning assets, interest bearing liabilities, and noninterest bearing liabilities. These tables also present an analysis of interest income and interest expense for the periods indicated. All interest income is reported on a FTE basis using a federal income tax rate of 21%. Loans in nonaccrual status, for the purpose of the following computations, are included in the average loan balances.

Net interest income is the amount by which interest income on earning assets exceeds the interest expenses on interest bearing liabilities. Net interest income, which includes loan fees, is influenced by changes in the balance and mix of assets and liabilities and market interest rates. We exert some control over these factors; however, FRB monetary policy and competition have a significant impact. For analytical purposes, net interest income is adjusted to a FTE basis by adding the income tax savings from interest on tax exempt loans, and nontaxable investment securities, thus making period-to-period comparisons more meaningful.

	Three Months Ended
	September 30, 2024							June 30, 2024							September 30, 2023
	Average Balance			Tax Equivalent Interest		Average Yield / Rate		Average Balance			Tax Equivalent Interest		Average Yield / Rate		Average Balance			Tax Equivalent Interest		Average Yield / Rate
Interest earning assets
Total loans	$	1,450,371		$	19,599	5.38	%	$	1,462,362		$	19,550	5.38	%	$	1,477,343		$	19,170	5.15	%
Taxable investment securities		89,175			335	1.49	%		89,751			350	1.57	%		101,549			397	1.55	%
Nontaxable investment securities		10,580			57	2.14	%		11,059			62	2.25	%		12,670			70	2.19	%
Interest earning cash and cash equivalents		148,872			2,023	5.41	%		97,511			1,331	5.49	%		43,865			594	5.37	%
Federal Home Loan Bank stock		9,179			192	8.32	%		9,179			207	9.07	%		11,421			199	6.91	%
Total earning assets		1,708,177			22,206	5.17	%		1,669,862			21,500	5.18	%		1,646,848			20,430	4.92	%

Nonearning assets
Allowance for credit losses		(15,282	)						(15,300	)						(15,503	)
Premises and equipment, net		13,514							13,964							15,210
Accrued income and other assets		90,898							94,125							92,955
Total assets	$	1,797,307						$	1,762,651						$	1,739,510

Interest bearing liabilities
Interest bearing demand deposits	$	460,256		$	4,054	3.50	%	$	429,141		$	3,745	3.51	%	$	416,500		$	3,230	3.08	%
Savings deposits		261,620			416	0.63	%		266,731			408	0.62	%		290,939			429	0.59	%
Time deposits		336,570			3,865	4.57	%		330,024			3,756	4.58	%		248,389			2,280	3.64	%
Borrowed funds		179,219			1,867	4.14	%		178,474			1,741	3.92	%		201,007			1,818	3.59	%
Total interest bearing liabilities		1,237,665			10,202	3.28	%		1,204,370			9,650	3.22	%		1,156,835			7,757	2.66	%

Noninterest bearing liabilities
Noninterest bearing deposits		402,274							405,985							435,398
Accrued interest and other liabilities		12,128							9,719							14,417
Shareholders’ equity		145,240							142,577							132,860
Total liabilities and shareholders’ equity	$	1,797,307						$	1,762,651						$	1,739,510
Net interest income (FTE)				$	12,004						$	11,850						$	12,673
Net interest margin to earning assets (FTE)						2.80	%						2.85	%						3.05	%

	Nine Months Ended
	September 30, 2024							September 30, 2023
	Average Balance			Tax Equivalent Interest		Average Yield / Rate		Average Balance			Tax Equivalent Interest		Average Yield / Rate
Interest earning assets
Total loans	$	1,461,289		$	58,758	5.37	%	$	1,464,959		$	55,749	5.09	%
Taxable investment securities		91,041			1,044	1.53	%		106,158			1,250	1.57	%
Nontaxable investment securities		11,200			186	2.22	%		13,403			227	2.26	%
Interest earning cash and cash equivalents		114,540			4,673	5.45	%		24,484			955	5.21	%
Federal Home Loan Bank stock		9,179			600	8.73	%		11,011			515	6.25	%
Total earning assets		1,687,249			65,261	5.17	%		1,620,015			58,696	4.84	%

Nonearning assets
Allowance for credit losses		(15,328	)						(15,290	)
Premises and equipment, net		13,957							15,342
Accrued income and other assets		91,310							90,874
Total assets	$	1,777,188						$	1,710,941

Interest bearing liabilities
Interest bearing demand deposits	$	436,997		$	11,358	3.47	%	$	385,316		$	7,927	2.75	%
Savings deposits		266,883			1,237	0.62	%		312,762			1,336	0.57	%
Time deposits		331,113			11,265	4.54	%		196,838			4,595	3.12	%
Borrowed funds		180,738			5,307	3.92	%		216,771			5,703	3.52	%
Total interest bearing liabilities		1,215,731			29,167	3.20	%		1,111,687			19,561	2.35	%

Noninterest bearing liabilities
Noninterest bearing deposits		408,449							455,069
Accrued interest and other liabilities		10,212							14,117
Shareholders’ equity		142,796							130,068
Total liabilities and shareholders’ equity	$	1,777,188						$	1,710,941
Net interest income (FTE)				$	36,094						$	39,135
Net interest margin to earning assets (FTE)						2.86	%						3.23	%

Volume and Rate Variance Analysis

The following table sets forth the effect of volume and rate changes on interest income and expense for the periods indicated. For the purpose of this table, changes in interest due to volume and rate were determined as follows:

Volume – change in volume multiplied by the previous period’s rate.
Rate – change in the FTE rate multiplied by the previous period’s volume.

The change in interest due to both volume and rate has been allocated to volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each.

	Three Months Ended									Three Months Ended									Nine Months Ended
	September 30, 2024									September 30, 2024									September 30, 2024
	Compared To									Compared To									Compared To
	June 30, 2024									September 30, 2023									September 30, 2023
	Increase (Decrease) Due to									Increase (Decrease) Due to									Increase (Decrease) Due to
	Volume			Rate			Net			Volume			Rate			Net			Volume			Rate			Net
Changes in interest income
Total loans	$	49		$	—		$	49		$	(1,847	)	$	2,276		$	429		$	(227	)	$	3,236		$	3,009
Taxable investment securities		(2	)		(13	)		(15	)		(47	)		(15	)		(62	)		(175	)		(31	)		(206	)
Nontaxable investment securities		(2	)		(3	)		(5	)		(12	)		(1	)		(13	)		(37	)		(4	)		(41	)
Interest earning cash and cash equivalents		825			(133	)		692			1,424			5			1,429			3,672			46			3,718
Federal Home Loan Bank stock		—			(15	)		(15	)		(161	)		154			(7	)		(137	)		222			85
Total changes in interest income		870			(164	)		706			(643	)		2,419			1,776			3,096			3,469			6,565

Changes in interest expense
Interest bearing demand deposits		380			(71	)		309			359			465			824			1,162			2,269			3,431
Savings deposits		(25	)		33			8			(147	)		134			(13	)		(258	)		159			(99	)
Time deposits		158			(49	)		109			922			663			1,585			4,001			2,669			6,670
Borrowed funds		9			117			126			(896	)		945			49			(1,265	)		869			(396	)
Total changes in interest expense		522			30			552			238			2,207			2,445			3,640			5,966			9,606
Net change in net interest income (FTE)	$	348		$	(194	)	$	154		$	(881	)	$	212		$	(669	)	$	(544	)	$	(2,497	)	$	(3,041	)

	Average Yield/Rate for the Three Months Ended
	9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023
Total earning assets	5.17	%	5.18	%	5.15	%	5.06	%	4.92	%
Total interest bearing liabilities	3.28	%	3.22	%	3.11	%	2.90	%	2.66	%
Net interest margin to earning assets (FTE)	2.80	%	2.85	%	2.92	%	3.01	%	3.05	%

	Quarter to Date Net Interest Income (FTE)
	9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023
Interest income	$	22,194	$	21,487	$	21,541	$	21,033	$	20,416
FTE adjustment		12		13		14		14		14
Total interest income (FTE)		22,206		21,500		21,555		21,047		20,430
Total interest expense		10,202		9,650		9,315		8,526		7,757
Net interest income (FTE)	$	12,004	$	11,850	$	12,240	$	12,521	$	12,673

Noninterest Income

	Three Months Ended
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
Service charges and fees
Trust and investment services		619			607			641			433			572
ATM and debit card		541			545			512			549			568
Service charges on deposit accounts		163			162			140			211			244
Total		1,323			1,314			1,293			1,193			1,384
Net gain on sales of residential mortgage loans		211			177			143			96			164
Net gain on sales of commercial loans		133			98			296			226			—
Change in fair value of equity investments		33			(3	)		(10	)		42			(28	)
Changes in the fair value of MSR		(175	)		(44	)		(96	)		(108	)		119
Other
Mortgage servicing fees		389			386			394			398			398
Change in cash surrender value of corporate owned life insurance		206			207			204			192			181
Other		90			179			131			106			120
Total		685			772			729			696			699
Total noninterest income	$	2,210		$	2,314		$	2,355		$	2,145		$	2,338

Memo items:
Residential mortgage operations	$	425		$	519		$	441		$	386		$	681

	Nine Months Ended September 30						Variance
		2024			2023		Amount			%
Service charges and fees
Trust and investment services	$	1,867		$	1,704		$	163		9.57	%
ATM and debit card		1,598			1,669			(71	)	(4.25)%
Service charges on deposit accounts		465			686			(221	)	(32.22)%
Total		3,930			4,059			(129	)	(3.18)%
Net gain on sales of residential mortgage loans		531			523			8		1.53	%
Net gain on sales of commercial loans		527			95			432		454.74	%
Change in fair value of equity investments		20			(29	)		49		(168.97)%
Changes in the fair value of MSR		(315	)		218			(533	)	(244.50)%
Other
Mortgage servicing fees		1,169			1,210			(41	)	(3.39)%
Change in cash surrender value of corporate owned life insurance		617			531			86		16.20	%
Other		400			519			(119	)	(22.93)%
Total		2,186			2,260			(74	)	(3.27)%
Total noninterest income	$	6,879		$	7,126		$	(247	)	(3.47)%

Memo items:
Residential mortgage operations	$	1,385		$	1,951		$	(566	)	(29.01)%

Residential Mortgage Operations

Residential mortgage operations includes net gains on sales of loans, changes in the fair value of mortgage servicing rights, and mortgage servicing fees.

Net gain on sales of residential mortgage loans represents the income earned on the sale of residential mortgage loans into the secondary market. Although elevated interest rates and limited inventories have significantly driven down the volume of new originations and refinancing activity, we continue to actively sell residential mortgage loans into the secondary market. During the third quarter of 2024, residential mortgage originations sold into the secondary market totaled $10,722.

Changes in the fair value of MSR are highly correlated to changes in interest rates and prepayment speeds. During the third quarter of 2024, the fair value of the servicing portfolio decreased primarily due to a decline in the size of the servicing portfolio, as the portfolio declined by $4,741. Mortgage servicing rights are expected to continue to decline due to likely further reductions in the size of our servicing portfolio as paydowns and maturities are expected to outpace new originations.

Mortgage servicing fees includes the fees earned for servicing loans that have been sold into the secondary market. The annual decrease in mortgage servicing fees is directly related to the size of the serviced portfolio. Due to reduced levels of secondary market originations and prepayments, the serviced loan portfolio declined by $22,584, or 3.58%, since September 30, 2023. We expect mortgage servicing fees to trend modestly downward in future periods due to decreased secondary market originations.

All Other Noninterest Income

Trust and investment services includes income earned from contracts with customers to manage assets for investment and/or to transact on their accounts through the wealth management and trust department. Trust services and wealth management fees are subject to market fluctuations and interest rate changes. We expect trust and investment services fees to modestly increase in future periods.

ATM and debit card income represents fees earned on ATM and debit card transactions. We expect these fees to approximate current levels in 2024.

Service charges on deposit accounts includes fees earned from deposit customers for transaction-based charges, account maintenance and overdraft services. These charges have declined in 2024 due to a reduced level of NSF fees charged to customers based on regulatory guidance and overall industry trends. Service charges on deposit accounts are expected to approximate current levels throughout the remainder of the year.

Net gain on sales of commercial loans represents the income earned from the sale of commercial loans into the secondary market. Throughout 2024, we sold the guaranteed portion of select SBA loans. We anticipate this strategy to continue throughout the remainder of the year.

Change in cash surrender value of corporate owned life insurance is expected to modestly increase throughout 2024.

Other includes miscellaneous other income items, none of which are individually significant.

Noninterest Expenses

	Three Months Ended
	9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023
Compensation and benefits	$	5,839	$	5,842	$	6,066	$	5,521	$	5,592
Professional services		799		963		894		695		726
Furniture and equipment		668		689		727		696		668
Occupancy		622		605		623		610		591
Data processing		751		490		547		505		576
Loan and collection		349		425		322		301		232
Advertising and promotional		312		337		348		139		506
Other
Acquisition related expenses		953		—		—		—		—
FDIC insurance premiums		275		327		299		270		330
ATM and debit card		214		188		171		158		153
Telephone and communication		95		86		109		103		115
Amortization of core deposit intangibles		44		44		45		76		75
Other general and administrative		1,053		925		1,015		1,047		1,030
Total		2,634		1,570		1,639		1,654		1,703
Total noninterest expenses	$	11,974	$	10,921	$	11,166	$	10,121	$	10,594

	Nine Months Ended September 30				Variance
		2024		2023	Amount			%
Compensation and benefits	$	17,747	$	16,876	$	871		5.16	%
Professional services		2,656		2,729		(73	)	(2.67)%
Furniture and equipment		2,084		2,079		5		0.24	%
Occupancy		1,850		1,815		35		1.93	%
Data processing		1,788		1,654		134		8.10	%
Loan and collection		1,096		929		167		17.98	%
Advertising and promotional		997		1,466		(469	)	(31.99)%
Other
Acquisition related expenses		953		—		953		N/M
FDIC insurance premiums		901		861		40		4.65	%
ATM and debit card		573		493		80		16.23	%
Telephone and communication		290		334		(44	)	(13.17)%
Amortization of core deposit intangibles		133		227		(94	)	(41.41)%
Other general and administrative		2,993		3,084		(91	)	(2.95)%
Total		5,843		4,999		844		16.88	%
Total noninterest expenses	$	34,061	$	32,547	$	1,514		4.65	%

Compensation and benefits includes salaries, commissions and incentives, employee benefits, and payroll taxes. Compensation and benefits has increased in 2024 due to an increase in the size of the organization, merit increases, and market based adjustments. We expect a modest increase in overall compensation and benefits throughout the remainder of 2024.

Professional services include expenses relating to third-party professional services. These services include, but are not limited to, regulatory, auditing, consulting, and legal. Professional services expenses are expected to approximate current levels in future periods.

Furniture and equipment and occupancy expenses primarily consist of depreciation, repairs and maintenance, certain service contracts, and other related items. These expenses are expected to approximate current levels throughout the remainder of 2024.

Data processing primarily includes the expenses relating to our core data processor. The increase in data processing in the third quarter of 2024 is primarily due to the loss of incentive credits from our core data processor following our proposed merger announcement. Data processing expenses are expected to modestly increase throughout 2024 due to annual contractual increases from our core data processor.

Loan and collection includes expenses related to the origination and collection of loans. The increase in such expenses in 2024 is due to increased levels of home ownership grants. Loan and collection expenses are expected to approximate current levels in future periods as loan growth is expected to approximate current levels.

Advertising and promotional expenses includes media costs and any donations or sponsorships. These expenses also include marketing efforts to attract new and expand existing customer loan and deposit account relationships. Total advertising and promotional expenses have declined in 2024 due to the expiration of certain long-term sponsorship commitments. Advertising and promotional expenses are expected to approximate current levels in future periods.

Acquisition related expenses includes expenses related to our proposed merger with ChoiceOne Financial Services, Inc., which was announced during the third quarter of 2024. These expenses include services rendered for investment banking, legal and accounting. We expect to incur additional acquisition related expenses in future periods.

FDIC insurance premiums typically fluctuate each period based on the size of the balance sheet, capital position and overall risk profile. FDIC insurance premiums are expected to approximate current levels in future periods.

ATM and debit card expenses fluctuate based on customer and non-customer utilization of ATMs and customer debit card volumes. We expect these fees to approximate current levels in future periods.

Telephone and communication includes expenses relating to our communication systems. These expenses are expected to approximate current levels in future periods.

Amortization of core deposit intangibles relates to the core deposits acquired from Community Bancorp, Inc. on December 31, 2016 and FSB on December 1, 2021. These core deposit intangibles are being amortized using an accelerated sum-of-years-digits method over their estimated useful lives of seven years. The core deposit intangibles associated with the acquisition of Community Bancorp, Inc. were fully amortized as of December 31, 2023. The core deposit intangibles associated with the acquisition of FSB will be amortized through 2028.

Other general and administrative includes miscellaneous other expense items. Other general and administrative expenses are expected to approximate current levels in future periods.

Balance Sheet Breakdown and Analysis

	9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023
ASSETS
Cash and due from banks	$	199,717	$	128,590	$	132,349	$	90,661	$	83,365
Total investment securities		99,724		100,167		103,210		107,615		109,543
Residential mortgage loans held-for-sale, at fair value		1,861		2,440		1,067		747		1,037
Gross loans		1,442,389		1,459,929		1,461,465		1,473,471		1,483,720
Less allowance for credit losses		14,700		15,300		15,300		15,400		15,400
Net loans		1,427,689		1,444,629		1,446,165		1,458,071		1,468,320
All other assets		78,379		80,803		81,838		81,858		82,674
Total assets	$	1,807,370	$	1,756,629	$	1,764,629	$	1,738,952	$	1,744,939

LIABILITIES AND SHAREHOLDERS’ EQUITY
Total deposits	$	1,470,586	$	1,427,059	$	1,438,408	$	1,394,182	$	1,401,797
Total borrowed funds		179,970		178,397		178,500		198,500		201,050
Accrued interest payable and other liabilities		10,416		7,872		6,647		7,568		9,190
Total liabilities		1,660,972		1,613,328		1,623,555		1,600,250		1,612,037
Total shareholders’ equity		146,398		143,301		141,074		138,702		132,902
Total liabilities and shareholders’ equity	$	1,807,370	$	1,756,629	$	1,764,629	$	1,738,952	$	1,744,939

	9/30/2024 vs 6/30/2024					9/30/2024 vs 9/30/2023
	Variance					Variance
	Amount			%		Amount			%
ASSETS
Cash and due from banks	$	71,127		55.31	%	$	116,352		139.57	%
Total investment securities		(443	)	(0.44)%			(9,819	)	(8.96)%
Residential mortgage loans held-for-sale, at fair value		(579	)	(23.73)%			824		79.46	%
Gross loans		(17,540	)	(1.20)%			(41,331	)	(2.79)%
Less allowance for credit losses		(600	)	(3.92)%			(700	)	(4.55)%
Net loans		(16,940	)	(1.17)%			(40,631	)	(2.77)%
All other assets		(2,424	)	(3.00)%			(4,295	)	(5.20)%
Total assets	$	50,741		2.89	%	$	62,431		3.58	%

LIABILITIES AND SHAREHOLDERS’ EQUITY
Total deposits	$	43,527		3.05	%	$	68,789		4.91	%
Total borrowed funds		1,573		0.88	%		(21,080	)	(10.48)%
Accrued interest payable and other liabilities		2,544		32.32	%		1,226		13.34	%
Total liabilities		47,644		2.95	%		48,935		3.04	%
Total shareholders’ equity		3,097		2.16	%		13,496		10.15	%
Total liabilities and shareholders’ equity	$	50,741		2.89	%	$	62,431		3.58	%

Cash and due from banks

	9/30/2024		6/30/2024			3/31/2024		12/31/2023		9/30/2023
Cash and due from banks
Noninterest bearing	$	37,871	$	35,437		$	26,128	$	29,997	$	35,121
Interest bearing		161,846		93,153			106,221		60,664		48,244
Total	$	199,717	$	128,590		$	132,349	$	90,661	$	83,365

	9/30/2024 vs 6/30/2024							9/30/2024 vs 9/30/2023
	Variance							Variance
	Amount		%					Amount		%
Cash and due from banks
Noninterest bearing	$	2,434		6.87	%			$	2,750		7.83	%
Interest bearing		68,693		73.74	%				113,602		235.47	%
Total	$	71,127		55.31	%			$	116,352		139.57	%

Cash and due from banks fluctuates from period to period based on loan demand and variances in deposit account balances.

Primary and secondary liquidity sources

The following table outlines our primary and secondary sources of liquidity as of:

	9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023
Cash and cash equivalents	$	199,717	$	128,590	$	132,349	$	90,661	$	83,365
Fair value of unpledged investment securities		77,019		74,775		73,680		80,247		82,103
FHLB borrowing availability		190,000		190,000		190,000		170,000		170,000
Unsecured lines of credit		23,000		23,000		23,000		20,000		20,000
Funds available through the Fed Discount Window		109		106		107		111		110
Parent company line of credit		5,100		7,000		3,500		3,500		950
Total liquidity sources	$	494,945	$	423,471	$	422,636	$	364,519	$	356,528

The increase in cash and cash equivalents as of September 30, 2024 was due to an increase in total deposits (see “Total deposits” below).

In addition to the above liquidity sources, we also have the option of utilizing wholesale funding sources, such as brokered NOW accounts, brokered time deposits, and internet time deposits. Although wholesale funding sources are typically more expensive than core deposits and other liquidity sources, they are an integral part of our overall asset and liability management strategy.

Investment securities

	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
Available-for-sale
U.S. Government and federal agency	$	19,432		$	20,430		$	20,427		$	22,425		$	23,420
State and municipal		18,997			19,108			20,403			20,460			20,992
Mortgage backed residential		44,086			45,808			47,505			49,076			50,786
Certificates of deposit		2,234			2,481			2,729			2,728			3,956
Collateralized mortgage obligations – agencies		21,640			22,213			22,778			23,320			24,062
Unrealized gain/(loss) on available-for-sale securities		(8,798	)		(12,179	)		(13,027	)		(12,760	)		(15,958	)
Total available-for-sale		97,591			97,861			100,815			105,249			107,258
Held-to-maturity state and municipal		535			791			877			878			879
Equity securities		1,598			1,515			1,518			1,488			1,406
Total investment securities	$	99,724		$	100,167		$	103,210		$	107,615		$	109,543

	9/30/2024 vs 6/30/2024									9/30/2024 vs 9/30/2023
	Variance									Variance
	Amount			%						Amount			%
Available-for-sale
U.S. Government and federal agency		(998	)	(4.88)%						$	(3,988	)	(17.03)%
State and municipal		(111	)	(0.58)%							(1,995	)	(9.50)%
Mortgage backed residential		(1,722	)	(3.76)%							(6,700	)	(13.19)%
Certificates of deposit		(247	)	(9.96)%							(1,722	)	(43.53)%
Collateralized mortgage obligations – agencies		(573	)	(2.58)%							(2,422	)	(10.07)%
Unrealized gain/(loss) on available-for-sale securities		3,381		(27.76)%							7,160		(44.87)%
Total available-for-sale		(270	)	(0.28)%							(9,667	)	(9.01)%
Held-to-maturity state and municipal		(256	)	(32.36)%							(344	)	(39.14)%
Equity securities		83			5.48	%					192			13.66	%
Total investment securities	$	(443	)	(0.44)%						$	(9,819	)	(8.96)%

The amortized cost and fair value of AFS investment securities as of September 30, 2024 were as follows:

	Maturing
	Due in One Year or Less		After One Year But Within Five Years		After Five Years But Within Ten Years		After Ten Years		Securities with Variable Monthly Payments or Noncontractual Maturities		Total
U.S. Government and federal agency	$	6,481	$	12,951	$	—	$	—	$	—	$	19,432
State and municipal		1,624		15,190		1,113		1,070		—		18,997
Mortgage backed residential		—								44,086		44,086
Certificates of deposit		2,234		—		—		—		—		2,234
Collateralized mortgage obligations – agencies		—		—		—		—		21,640		21,640
Total amortized cost	$	10,339	$	28,141	$	1,113	$	1,070	$	65,726	$	106,389
Fair value	$	10,111	$	26,620	$	1,017	$	1,001	$	58,842	$	97,591

The amortized cost and fair value of HTM investment securities as of September 30, 2024 were as follows:

	Maturing
	Due in One Year or Less		After One Year But Within Five Years		After Five Years But Within Ten Years		After Ten Years		Securities with Variable Monthly Payments or Noncontractual Maturities		Total
State and municipal	$	85	$	295	$	155	$	—	$	—	$	535
Fair value	$	84	$	290	$	152	$	—	$	—	$	526

Total investment securities have declined in recent periods primarily due to maturities and prepayments. As a result of overall market conditions, we have not replenished maturing securities with new purchases.

Residential mortgage loans held-for-sale, at fair value

Loans HFS represent the fair value of loans that have been committed to be sold to the secondary market, but have not yet been delivered. The level of loans HFS fluctuates based on loan demand as well as the timing of loan deliveries to the secondary market.

Loans and allowance for credit losses

As outlined in the following tables, our loan portfolio has strategically declined throughout the past 12 months. As a result of current market conditions, we expect minimal loan growth throughout the remainder of 2024. Specifically, our commercial pipeline has declined significantly, and the requests that are being presented are lower dollar balances and often carry an SBA guarantee.

The following tables outline the composition and changes in the loan portfolio as of:

	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
Commercial and industrial	$	109,188		$	120,331		$	114,772		$	118,089		$	125,330
Commercial real estate		855,270			864,200			867,270			870,693			874,870
Total commercial loans		964,458			984,531			982,042			988,782			1,000,200
Residential mortgage		419,140			418,403			426,762			431,836			431,740
Home equity		55,475			53,133			48,568			48,380			47,069
Total residential real estate loans		474,615			471,536			475,330			480,216			478,809
Consumer		3,316			3,862			4,093			4,473			4,711
Gross loans		1,442,389			1,459,929			1,461,465			1,473,471			1,483,720
Allowance for credit losses		(14,700	)		(15,300	)		(15,300	)		(15,400	)		(15,400	)
Loans, net	$	1,427,689		$	1,444,629		$	1,446,165		$	1,458,071		$	1,468,320

Memo items:
Residential mortgage loans serviced for others	$	609,113		$	613,854		$	619,160		$	624,765		$	631,697

	9/30/2024 vs 6/30/2024									9/30/2024 vs 9/30/2023
	Variance									Variance
	Amount			%						Amount			%
Commercial and industrial	$	(11,143	)	(9.26)%						$	(16,142	)	(12.88)%
Commercial real estate		(8,930	)	(1.03)%							(19,600	)	(2.24)%
Total commercial loans		(20,073	)	(2.04)%							(35,742	)	(3.57)%
Residential mortgage		737			0.18	%					(12,600	)	(2.92)%
Home equity		2,342			4.41	%					8,406			17.86	%
Total residential real estate loans		3,079			0.65	%					(4,194	)	(0.88)%
Consumer		(546	)	(14.14)%							(1,395	)	(29.61)%
Gross loans		(17,540	)	(1.20)%							(41,331	)	(2.79)%
Allowance for credit losses		600		(3.92)%							700		(4.55)%
Loans, net	$	(16,940	)	(1.17)%						$	(40,631	)	(2.77)%

Memo items:
Residential mortgage loans serviced for others	$	(4,741	)	(0.77)%						$	(22,584	)	(3.58)%

The following table presents historical loan balances by portfolio segment as of:

	9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023
Loans collectively evaluated
Commercial and industrial	$	102,523	$	113,254	$	112,542	$	115,665	$	124,860
Commercial real estate		854,038		864,026		867,270		870,524		874,701
Residential mortgage		416,864		416,130		423,881		429,109		428,927
Home equity		55,416		53,056		48,388		48,136		46,898
Consumer		3,325		3,862		4,093		4,473		4,711
Subtotal		1,432,166		1,450,328		1,456,174		1,467,907		1,480,097
Loans individually evaluated
Commercial and industrial		6,665		7,077		2,230		2,424		470
Commercial real estate		1,232		174		—		169		169
Residential mortgage		2,276		2,273		2,881		2,727		2,813
Home equity		48		77		180		244		171
Consumer		2		—		—		—		—
Subtotal		10,223		9,601		5,291		5,564		3,623
Gross Loans	$	1,442,389	$	1,459,929	$	1,461,465	$	1,473,471	$	1,483,720

The following table presents historical allowance for credit losses allocations by portfolio segment as of:

	9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023
Allowance for credit losses for collectively evaluated loans
Commercial and industrial	$	1,436	$	1,434	$	1,300	$	1,407	$	1,362
Commercial real estate		8,347		8,903		8,359		8,467		8,703
Residential mortgage		4,131		4,133		4,202		4,409		4,439
Home equity		348		327		305		321		315
Consumer		51		80		38		44		36
Unallocated		—		—		670		355		294
Subtotal		14,313		14,877		14,874		15,003		15,149
Allowance for credit losses for individually evaluated loans
Commercial and industrial		385		423		423		363		248
Commercial real estate		—		—		—		—		—
Residential mortgage		—		—		3		34		3
Home equity		—		—		—		—		—
Consumer		2		—		—		—		—
Unallocated		—		—		—		—		—
Subtotal		387		423		426		397		251
Allowance for credit losses	$	14,700	$	15,300	$	15,300	$	15,400	$	15,400

Commercial and industrial	$	1,784	$	1,857	$	1,723	$	1,770	$	1,610
Commercial real estate		8,347		8,903		8,359		8,467		8,703
Residential mortgage		4,131		4,133		4,205		4,443		4,442
Home equity		348		327		305		321		315
Consumer		53		80		38		44		36
Unallocated		—		—		670		355		294
Allowance for credit losses	$	14,700	$	15,300	$	15,300	$	15,400	$	15,400

Loan concentration analysis

As a result of current economic conditions, there continues to be a heightened focus in the financial industry for non-owner occupied commercial real estate loans, most specifically retail and office space industries. While we continue to monitor various industries that have been impacted by the pandemic, we also continue to monitor the effects of inflation, supply chain disruption, elevated interest rates, and office space usage associated with an increased remote workforce. The overall credit quality indicators of non-owner occupied commercial real estate loan portfolio have remained strong. Performance is based on debt service coverage ratio, loan to value ratio and payment trends. As of September 30, 2024, there were no delinquencies in the non-owner occupied commercial real estate loan portfolio. We expect the non-owner occupied commercial real estate loan portfolio to experience insignificant growth, if any, in future periods.

Within the net lease and retail strip center non-owner occupied commercial real estate pools, we have exposure to Rite Aid. During the fourth quarter of 2023, Rite Aid, which operates over 2,000 retail pharmacies across 17 states, filed for Chapter 11 bankruptcy protection. During the third quarter of 2024, Rite Aid announced that it successfully emerged from bankruptcy protection and will now operate as a private company. However, all Rite Aid stores in Michigan were closed as part of the company’s restructuring. As a result, one commercial real estate loan was partially charged off and its remaining balance was moved to nonaccrual status during the third quarter of 2024. We continue to actively monitor five remaining loans previously associated with Rite Aid.

With the ongoing pressures on the office sector due to remote work capabilities and less required office space, we continue to monitor the office pool more closely for potential deterioration. It is not expected that there will be much, if any, impact on portfolio performance in this pool in the near future due to existing lease terms, tenant mix, office size, and strong underwriting at origination. Due to current economic uncertainty and the pressures noted above, it is unlikely that we will seek new loan originations in the non-owner occupied office pool in 2024.

Below is a description of each industry pool within the non-owner occupied commercial real estate loan portfolio:

Net lease: Loans in this pool represent national credit tenants (or franchisees of the same) or large regional tenants with excellent credit. These loans are typically single tenant net lease credits with strong debt service coverage ratios and lease terms that extend beyond the maturity of the loan.

Retail strip centers: Loans in this pool represent loans collateralized by retail strip centers. The tenant base within this pool consists primarily of retail space whose average lease periods run between one and ten years. Larger strip centers are usually anchored by a national or regional tenant. Guarantors in this category typically have large liquid reserves.

Office: Loans in this pool represent loans collateralized by non-owner occupied office buildings. The tenant base includes legal and other professional services whose average lease periods run from three to fifteen years.

Special use: Loans in this pool represent loans collateralized by special use buildings, which include hotels, motels, assisted living and nursing homes that are not classified as construction or SBA loans.

Industrial: Loans in this pool represent investment properties used for manufacturing and production.

Medical office: Loans in this pool represent loans collateralized by non-owner occupied medical office buildings. The tenant base includes medical services whose average lease periods run from three to fifteen years.

Self storage: Loans in this pool represent self storage buildings. Loan terms are generally five years or less and the lease terms of the units are typically on a month-to-month basis.

Mixed use: Loans in this pool represent loans collateralized by mixed use real estate. The tenant base within this pool consists primarily of office-retail, office-residential or retail-residential space. The properties are most often purchased by individuals for investment purposes.

Retail: Loans in this pool represent loans collateralized by single tenant retail buildings whose average lease periods run over five years.

The following tables present the composition of current and historical non-owner occupied commercial real estate loans, based on loan collateral, by industry pool:

	9/30/2024			6/30/2024			3/31/2024		12/31/2023			9/30/2023
Net lease	$	137,406		$	141,064		$	147,103	$	149,056		$	160,077
Retail strip centers		106,948			106,631			107,834		98,588			96,567
Office		61,897			62,237			61,657		61,822			62,959
Special use		71,307			71,006			58,278		58,710			57,612
Industrial		23,338			23,107			22,575		28,380			28,906
Medical office		24,551			24,818			25,380		25,842			28,591
Self storage		32,797			32,502			25,660		23,455			21,993
Mixed use		16,829			16,980			17,174		17,335			19,833
Retail		15,183			17,191			12,533		12,981			14,115

Total non-owner occupied commercial real estate loans	$	490,256		$	495,536		$	478,194	$	476,169		$	490,653

	9/30/2024 vs 6/30/2024								9/30/2024 vs 9/30/2023
	Variance								Variance
	Amount			%					Amount			%
Net lease	$	(3,658	)	(2.59)%					$	(22,671	)	(14.16)%
Retail strip centers		317			0.30	%				10,381			10.75	%
Office		(340	)	(0.55)%						(1,062	)	(1.69)%
Special use		301			0.42	%				13,695			23.77	%
Industrial		231			1.00	%				(5,568	)	(19.26)%
Medical office		(267	)	(1.08)%						(4,040	)	(14.13)%
Self storage		295			0.91	%				10,804			49.12	%
Mixed use		(151	)	(0.89)%						(3,004	)	(15.15)%
Retail		(2,008	)	(11.68)%						1,068			7.57	%

Total non-owner occupied commercial real estate loans	$	(5,280	)	(1.07)%					$	(397	)	(0.08)%

The following table presents the average loan size of current and historical non-owner occupied commercial real estate loans, based on loan collateral, by industry pool:

	9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023
Net lease	$	1,383	$	1,291	$	1,311	$	1,316	$	1,300
Retail strip centers		2,379		2,197		2,231		2,135		2,115
Office		1,370		1,363		1,296		1,297		1,294
Special use		2,612		2,546		2,064		2,079		2,134
Industrial		933		925		941		1,092		1,072
Medical office		1,116		1,128		1,103		1,078		1,145
Self storage		1,923		1,926		1,509		1,380		1,692
Mixed use		1,324		1,334		1,321		1,333		1,240
Retail		407		513		447		461		429

Total non-owner occupied commercial real estate loans	$	1,489	$	1,448	$	1,392	$	1,379	$	1,362

The following table presents current and historical non-owner occupied commercial real estate loans, based on loan collateral, by industry pool as a percentage of gross loans:

	9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023
Net lease	9.53	%	9.66	%	10.07	%	10.12	%	10.79	%
Retail strip centers	7.41	%	7.30	%	7.38	%	6.69	%	6.51	%
Office	4.29	%	4.26	%	4.22	%	4.20	%	4.24	%
Special use	4.94	%	4.86	%	3.99	%	3.98	%	3.88	%
Industrial	1.62	%	1.58	%	1.54	%	1.93	%	1.95	%
Medical office	1.70	%	1.70	%	1.74	%	1.75	%	1.93	%
Self storage	2.27	%	2.23	%	1.76	%	1.59	%	1.48	%
Mixed use	1.17	%	1.16	%	1.18	%	1.18	%	1.34	%
Retail	1.05	%	1.18	%	0.86	%	0.88	%	0.95	%

Total non-owner occupied commercial real estate loans to gross loans	33.98	%	33.93	%	32.74	%	32.32	%	33.07	%

Asset quality

The following table summarizes our current, past due, and nonaccrual loans as of:

	9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023
Accruing interest
Current	$	1,428,014	$	1,445,780	$	1,451,432	$	1,463,668	$	1,477,386
Past due 30-89 days		4,152		4,534		4,344		4,239		2,711
Past due 90 days or more		—		14		398		—		—
Total accruing interest		1,432,166		1,450,328		1,456,174		1,467,907		1,480,097
Nonaccrual		10,223		9,601		5,291		5,564		3,623
Total loans	$	1,442,389	$	1,459,929	$	1,461,465	$	1,473,471	$	1,483,720
Total loans past due and in nonaccrual status	$	14,375	$	14,149	$	10,033	$	9,803	$	6,334

The following table summarizes the our nonperforming assets as of:

	9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023
Nonaccrual loans	$	10,223	$	9,601	$	5,291	$	5,564	$	3,623
Accruing loans past due 90 days or more		—		14		398		—		—
Total nonperforming loans		10,223		9,615		5,689		5,564		3,623
Other real estate owned		293		293		345		597		345
Total nonperforming assets	$	10,516	$	9,908	$	6,034	$	6,161	$	3,968

The following table summarizes our charge-offs, recoveries and allowance for credit losses as of, and for the three-month periods ended:

	9/30/2024		6/30/2024		3/31/2024			12/31/2023			9/30/2023
Total charge-offs	$	1,814	$	814	$	86		$	110		$	16
Total recoveries		11		18		29			300			455
Net charge-offs (recoveries)	$	1,803	$	796	$	57		$	(190	)	$	(439	)
Allowance for credit losses	$	1,203	$	796	$	(43	)	$	(190	)	$	(309	)

During the third quarter of 2024, we partially charged off one commercial real estate loan for $1,443 related to the Rite Aid bankruptcy filing. We believe that the credit characteristics are unique and are not an indication of softening in the remainder of our commercial loan portfolio.

The following table summarizes the our primary asset quality measures as of:

	9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023
Nonperforming loans to gross loans	0.71	%	0.66	%	0.39	%	0.38	%	0.24	%
Nonperforming assets to total assets	0.58	%	0.56	%	0.34	%	0.35	%	0.23	%
Allowance for credit losses to gross loans	1.02	%	1.05	%	1.05	%	1.05	%	1.04	%
Net charge-offs (recoveries) to QTD average gross loans	0.12	%	0.05	%	—	%	(0.01)%		(0.03)%
Credit loss expense (reversal) to QTD average gross loans	0.08	%	0.05	%	—	%	(0.01)%		(0.02)%

The following table summarizes the average loan size as of:

	9/30/2024		6/30/2024		3/31/2024		12/31/2023		9/30/2023
Commercial and industrial	$	310	$	343	$	326	$	334	$	353
Commercial real estate		901		906		900		905		896
Total commercial loans		740		754		746		752		751
Residential mortgage		235		234		234		236		234
Home equity		58		56		53		53		52
Total residential real estate loans		173		173		174		175		174
Consumer		12		13		13		13		12
Gross loans	$	335	$	337	$	336	$	337	$	335

All other assets

The following tables outline the composition and changes in other assets as of:

	9/30/2024			6/30/2024			3/31/2024		12/31/2023			9/30/2023
Premises and equipment, net	$	13,203		$	13,661		$	14,111	$	14,561		$	14,928
Federal Home Loan Bank stock		9,179			9,179			9,179		9,179			9,179
Corporate owned life insurance		28,129			27,877			27,670		27,466			27,274
Mortgage servicing rights		8,461			8,636			8,680		8,776			8,884
Accrued interest receivable		4,354			4,747			4,869		4,472			4,485
Goodwill		8,853			8,853			8,853		8,853			8,853
Other assets
Core deposit intangibles		400			444			488		533			609
Right-of-use assets		1,062			1,142			1,237		1,333			1,426
Other real estate owned		293			293			345		597			345
Other		4,445			5,971			6,406		6,088			6,691
Total		6,200			7,850			8,476		8,551			9,071
All other assets	$	78,379		$	80,803		$	81,838	$	81,858		$	82,674

	9/30/2024 vs 6/30/2024								9/30/2024 vs 9/30/2023
	Variance								Variance
	Amount			%					Amount			%
Premises and equipment, net	$	(458	)	(3.35)%					$	(1,725	)	(11.56)%
Federal Home Loan Bank stock		—			—	%				—			—	%
Corporate owned life insurance		252			0.90	%				855			3.13	%
Mortgage servicing rights		(175	)	(2.03)%						(423	)	(4.76)%
Accrued interest receivable		(393	)	(8.28)%						(131	)	(2.92)%
Goodwill		—			—	%				—			—	%
Other assets
Core deposit intangibles		(44	)	(9.91)%						(209	)	(34.32)%
Right-of-use assets		(80	)	(7.01)%						(364	)	(25.53)%
Other real estate owned		—			—	%				(52	)	(15.07)%
Other		(1,526	)	(25.56)%						(2,246	)	(33.57)%
Total		(1,650	)	(21.02)%						(2,871	)	(31.65)%
All other assets	$	(2,424	)	(3.00)%					$	(4,295	)	(5.20)%

The annual decrease in premises and equipment was due to depreciation on our existing premises and equipment.

Total deposits

The following tables outline the composition and changes in the deposit portfolio as of:

	9/30/2024			6/30/2024			3/31/2024		12/31/2023			9/30/2023
Noninterest bearing demand	$	398,338		$	404,521		$	401,518	$	423,019		$	425,820
Interest bearing
Savings		264,337			262,538			274,922		273,302			293,310
Money market demand		250,715			230,304			229,584		223,827			225,138
NOW
Retail NOW		202,030			205,383			203,614		178,892			198,271
Brokered NOW		—			—			—		—			—

Total NOW Accounts		202,030			205,383			203,614		178,892			198,271
Time deposits
Other time deposits		294,862			264,009			268,466		234,838			198,509
Brokered time deposits		60,304			60,304			60,304		60,304			60,251
Internet time deposits		—			—			—		—			498

Total time deposits		355,166			324,313			328,770		295,142			259,258

Total deposits	$	1,470,586		$	1,427,059		$	1,438,408	$	1,394,182		$	1,401,797

	9/30/2024 vs 6/30/2024								9/30/2024 vs 9/30/2023
	Variance								Variance
	Amount			%					Amount			%
Noninterest bearing demand	$	(6,183	)	(1.53)%					$	(27,482	)	(6.45)%
Interest bearing
Savings		1,799			0.69	%				(28,973	)	(9.88)%
Money market demand		20,411			8.86	%				25,577			11.36	%
NOW
Retail NOW		(3,353	)	(1.63)%						3,759			1.90	%
Brokered NOW		—			—	%				—			—	%

Total NOW Accounts		(3,353	)	(1.63)%						3,759			1.90	%
Time deposits
Other time deposits		30,853			11.69	%				96,353			48.54	%
Brokered time deposits		—			—	%				53			0.09	%
Internet time deposits		—			—	%				(498	)	(100.00)%

Total time deposits		30,853			9.51	%				95,908			36.99	%

Total deposits	$	43,527			3.05	%			$	68,789			4.91	%

Between March 2022 and July 2023, the FOMC raised its target federal funds rate 11 times, from a target range of 0.00-0.25% to 5.25-5.50%, or 525 basis points, in order to combat rising inflation. This rapid increase in interest rates led to significant competition amongst financial institutions for deposits. In September 2024, the FOMC lowered the target federal funds rate 50 basis points to a target range of 4.75-5.00%. Due to the overall uncertainty regarding potential rate changes in the future, customers have not sought out long-term funds, leading to a shift in demand to higher-yielding non-maturity deposit accounts as well as short-term time deposits.

Total borrowed funds

The following tables outline the composition and changes in borrowed funds as of:

	9/30/2024		6/30/2024			3/31/2024		12/31/2023			9/30/2023
Federal Home Loan Bank borrowings	$	160,000	$	160,000		$	160,000	$	180,000		$	180,000
Subordinated debentures		14,000		14,000			14,000		14,000			14,000
Other borrowings		5,970		4,397			4,500		4,500			7,050
Total borrowed funds	$	179,970	$	178,397		$	178,500	$	198,500		$	201,050

	9/30/2024 vs 6/30/2024							9/30/2024 vs 9/30/2023
	Variance							Variance
	Amount		%					Amount			%
Federal Home Loan Bank borrowings	$	—		—	%			$	(20,000	)	(11.11)%
Subordinated debentures		—		—	%				—			—	%
Other borrowings		1,573		35.77	%				(1,080	)	(15.32)%
Total borrowed funds	$	1,573		0.88	%			$	(21,080	)	(10.48)%

We utilize a mix of borrowed funds and organic deposit growth to fund loan demand. As loan growth has slowed in recent periods, our reliance on FHLB advances has declined.

Wholesale funding sources

Although we have been successful at growing market deposits, we utilize wholesale funding sources when necessary to fill gaps when asset growth outpaces deposit growth. Our wholesale funding sources include Federal Home Loan Bank borrowings, correspondent Fed Funds lines and brokered deposits. Although wholesale funding sources are typically more expensive than core deposits, they are an integral part of our funding.

The following tables outline the composition and changes in wholesale funding sources as of:

	9/30/2024		6/30/2024			3/31/2024		12/31/2023			9/30/2023
Federal Home Loan Bank borrowings	$	160,000	$	160,000		$	160,000	$	180,000		$	180,000
Subordinated debentures		14,000		14,000			14,000		14,000			14,000
Other borrowings		5,970		4,397			4,500		4,500			7,050
Brokered NOW accounts		—		—			—		—			—
Brokered time deposits		60,304		60,304			60,304		60,304			60,251
Internet time deposits		—		—			—		—			498
Total wholesale funds	$	240,274	$	238,701		$	238,804	$	258,804		$	261,799

	9/30/2024 vs 6/30/2024							9/30/2024 vs 9/30/2023
	Variance							Variance
	Amount		%					Amount			%
Federal Home Loan Bank borrowings	$	—		—	%				(20,000	)	(11.11)%
Subordinated debentures		—		—	%				—			—	%
Other borrowings		1,573		35.77	%				(1,080	)	(15.32)%
Brokered NOW accounts		—	N/A						—		N/A
Brokered time deposits		—		—	%				53			0.09	%
Internet time deposits		—	N/A						(498	)	(100.00)%
Total wholesale funds	$	1,573		0.66	%			$	(21,525	)	(8.22)%

Accrued interest payable and other liabilities

Accrued interest payable and other liabilities includes accrued interest payable, federal income taxes payable, deferred federal income taxes payable, and all other liabilities (none of which are individually significant).

Total shareholders’ equity

We are considered a “well-capitalized” institution, as our capital ratios exceed the minimum designated standards necessary in accordance with Basel III guidelines. As of September 30, 2024, the Bank’s total capital ratio was 12.78%, tier 1 capital ratio was 11.72%, and tier 1 leverage ratio was 9.02%. The minimum requirements to be considered well-capitalized are a total capital ratio of 10.00%, tier 1 capital ratio of 8.00%, and tier 1 leverage ratio of 5.00%. While we continue to be considered well-capitalized, we are focused on enhancing our capital ratios through earnings of the Bank as well as asset growth moderation strategies in 2024.

The following tables outline the composition and changes in shareholders’ equity as of:

	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
Common stock	$	74,826		$	74,690		$	74,555		$	74,230		$	74,118
Retained earnings		78,467			78,094			76,607			74,309			70,972
Accumulated other comprehensive (loss) income		(6,895	)		(9,483	)		(10,088	)		(9,837	)		(12,188	)
Total shareholders’ equity	$	146,398		$	143,301		$	141,074		$	138,702		$	132,902

	9/30/2024 vs 6/30/2024									9/30/2024 vs 9/30/2023
	Variance									Variance
	Amount			%						Amount			%
Common stock	$	136			0.18	%				$	708			0.96	%
Retained earnings		373			0.48	%					7,495			10.56	%
Accumulated other comprehensive (loss) income		2,588		(27.29)%							5,293		(43.43)%
Total shareholders’ equity	$	3,097			2.16	%				$	13,496			10.15	%

The Board of Directors has authorized the repurchase of up to $10,000 of common stock. As of September 30, 2024, we had $1,393 of common stock available to repurchase through the program. We did not execute any repurchases of our common stock during 2024.

Stock Performance

The following table compares the cumulative total shareholder return on our common stock for the year-to-date, 1 year, 3 year, and 5 year periods ended September 30, 2024. The National OTC Peer Group was developed by selecting all OTC traded bank holding companies with total assets between $1 billion and $3 billion as of 03/31/2024 that had a quoted stock price on Bloomberg. The Midwest / Great Lakes OTC Peer Group represents those institutions included in the National OTC Peer Group that are headquartered in Illinois, Indiana, Michigan, Ohio, Pennsylvania, and Wisconsin.

	# in Peer Group	YTD		1 Year		3 Year		5 Year
Fentura Financial, Inc. (OTCQX:FETM)		45.40	%	67.28	%	59.12	%	100.80	%

National OTC Peers	43	(1.01)%		(3.49)%		2.11	%	8.44	%
Fentura Ranking out of 44		1		1		4		4

Midwest / Great Lakes OTC Peers	17	(1.97)%		(5.16)%		(1.63)%		1.35	%
Fentura Ranking out of 18		1		1		1		1

Abbreviations and Acronyms

ABA: American Bankers Association	FTE: Fully taxable equivalent
ACH: Automated Clearing House	GAAP: Generally Accepted Accounting Principles
ACL: Allowance for credit losses	HFS: Held-for-sale
AFS: Available-for-sale	HTM: Held-to-maturity
AIR: Accrued interest receivable	HFS: Held-for-sale
AOCI: Accumulated other comprehensive income	HTM: Held-to-maturity
ARRC: Alternative Reference Rates Committee	IRA: Individual retirement account
ASC: Accounting Standards Codification	ITM: Interactive Teller Machine
ASU: Accounting Standards Update	LIBOR: London Interbank Offered Rate
ATM: Automated teller machine	MSR: Mortgage servicing rights
CDI: Core deposit intangible	N/M: Not meaningful
CET1: Common equity tier 1	NASDAQ: National Association of Securities Dealers Automated Quotations
COLI: Corporate owned life insurance	NOW: Negotiable order of withdrawal
DRIP: Dividend Reinvestment Plan	NSF: Non-sufficient funds
EPS: Earnings Per Common Share	OCI: Other comprehensive income
ESOP: Employee Stock Ownership Plan	OIS: Overnight Index Swap
FASB: Financial Accounting Standards Board	OREO: Other real estate owned
FDIC: Federal Deposit Insurance Corporation	OTTI: Other-than-temporary impairment
FHLB: Federal Home Loan Bank	QTD: Quarter-to-date
FHLLC: Fentura Holdings LLC	SAB: Staff Accounting Bulletin
FHLMC: Federal Home Loan Mortgage Corporation	SBA: U.S. Small Business Administration
FNMA: Federal National Mortgage Association	SEC: Securities and Exchange Commission
FOMC: Federal Open Market Committee	SERP: Supplemental Executive Retirement Plan
FRB: Federal Reserve Bank	SOFR: Secured Overnight Funding Rate
FSB: Farmers State Bank of Munith	TLM: Troubled loan modifications

About Fentura Financial, Inc. and The State Bank

Fentura Financial, Inc. is the holding company for The State Bank. It was formed in 1987 and is traded on the OTCQX exchange under the symbol FETM, and has been recognized as one of the Top 50 performing stocks on that exchange.

The State Bank is a 5-Star Bauer Financial rated commercial, retail and trust bank headquartered in Fenton, Michigan. It currently operates 20 full-service offices and one loan production center serving Bay, Genesee, Ingham, Jackson, Livingston, Oakland, Saginaw, and Shiawassee counties. The State Bank believes in the potential of banking to help create better lives, better businesses, and better communities, and works to achieve this through its full array of consumer, mortgage, SBA, commercial and wealth management banking and advisory services, together with philanthropic and volunteer support to organizations and groups within the communities it serves. More information can be found at www.thestatebank.com or www.fentura.com.

Cautionary Statement: This press release contains certain forward-looking statements that involve risks and uncertainties. Forward-looking statements include, but are not limited to, statements concerning future growth in earning assets and net income. Such statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, economic, competitive, governmental and technological factors affecting the Company’s operations, markets, products, services, interest rates and fees for services. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

Contacts:	Ronald L. Justice	Aaron D. Wirsing
	President & CEO	Chief Financial Officer
	Fentura Financial, Inc.	Fentura Financial, Inc.
	810.714.3902	810.714.3925
	ron.justice@thestatebank.com	aaron.wirsing@thestatebank.com

The MIL Network –

January 25, 2025

MIL-OSI Global: From Confederate general to Cherokee heritage: Why returning the name Kuwohi to the Great Smoky Mountains matters

Source: The Conversation – USA – By Seth T. Kannarr, PhD Student in Geography, University of Tennessee

View from the overlook on Kuwohi of the mountain peaks and ridges of Great Smoky Mountains National Park.

Getty Images

It’s not every day that the name of a mountain is restored to the one used by Indigenous peoples for centuries.

But after nearly two years of trying, the Eastern Band of Cherokee Indians finally convinced the U.S. Board on Geographic Names on Sept. 18, 2024, to formally agree to rename the highest point in the Great Smoky Mountains National Park of Tennessee to Kuwohi (koo-whoa-hee).

The mountain, known as “Clingmans Dome” since 1859, has been a sacred place for the Cherokee people, serving as a place of prayer, reflection and gathering of mulberries for medicine. In fact, the name Kuwohi translates to “the mulberry place” in Tsalagi, the Cherokee language.

Though known as Kuwohi by the Cherokee people for hundreds of years, explorer Arnold Guyot effectively ignored that history after he surveyed the mountain range in 1859. Guyot named the peak “Clingmans Dome” after his friend Thomas Lanier Clingman, a North Carolina U.S. senator and a Confederate brigadier general during the Civil War. Clingman never set foot on this mountain, but his name remained there for 165 years until now.

What is place name repatriation?

The government’s renaming of the mountain to Kuwohi is a significant example of place name repatriation, or the return of an original, Indigenous name to a particular place or landscape.

Sometimes the primary motivation for place renaming is to remove an offensive or irrelevant place name from the landscape, such as the renaming of Squaw Peak in Arizona to Piostewa Peak in 2008.

In other cases, such as the renaming of Mount McKinley in Alaska to Denali in 2016, the motivation was to create a more authentic and historically accurate name for a particular place.

In the case of Kuwohi, the return to its original name was a mixture of both. The government’s decision recognized the original Indigenous name and removed the name of a white man who defended the enslavement of African people. It is also about restoring a larger sense of respect and recognition of Indigenous identity across the landscape.

Just as important is the fact that it was individuals from the Eastern Band of Cherokee Indians who put forward this proposal and remained the lead throughout the process.

Place naming is only truly reparative if these processes truly reflect the agency and intent of these historically oppressed groups. Otherwise, it contributes to the long history of dismissing Indigenous claims to land and culture by not involving them.

View of observation tower on Kuwohi in Great Smoky Mountains National Park.
Joshua Moore/Getty Images

Why does place naming matter?

A name is one of the most fundamental ways to identify and give meaning to places. In other words, the name of the place makes a big difference in how people perceive it.

There is growing public recognition that place names can transmit harmful messages that misrepresent the history and identity of minority communities. Place names also can demonstrate how those in power have used them to disrespect and misrepresent ethnic and racial groups that have been historically discriminated against.

For those groups, the U.S. Department of the Interior’s Advisory Committee on Reconciliation in Place Names found in 2022 that derogatory place names are a source of recurring trauma.

If place naming did not matter, disputes over name changes would not occur. Some critics find place renaming to be an example of unnecessary political correctness, while others see it as a meaningful solution that will leave a lasting positive impact.

The elimination of names of Confederate generals from some U.S. military bases provides another example. Former President Donald Trump has pledged to restore the name “Fort Bragg” to the North Carolina Army base that’s known today as Fort Liberty if reelected. Originally named after Braxton Bragg, a slave-owning Confederate general, the fort was one of nine U.S. installations that the Defense Department ordered in 2023 to have their names changed to among 3,700 recommendations.

Trump’s stance exemplifies the wave of backlash that has occurred against local and state school officials across the country that have removed the names of Confederate generals and others from public buildings.

Lavita Hill (L) and Mary Crowe in 2022.
Cherokee One Feather

Despite such backlash, efforts by Indigenous people and civil rights advocates slowly move forward and are seen across the U.S. in places like streets, neighborhoods, college campuses and beyond.

For Lavita Hill and Mary Crowe, the two members of the Eastern Band of Cherokee Indians who took the lead on submitting the proposal, the renaming of Kuwohi was a moment of success. Their campaign was heavily inspired by the renaming of Mount Doane to First Peoples Mountain in Yellowstone National Park in 2022.

Crowe told reporters that she saw friends and relatives shed tears when they learned of the name change. “It was humbling,” she said. “It was beautiful.”

What comes next?

The success of the effort to restore the name Kuwohi may help other communities in their ongoing place renaming efforts.

One such proposal involves a 100-year-old fight to rename Mount Rainier in Washington state to “Tacoma,” the original name given to it by the Salish people of the Pacific Northwest.

View of the Great Smoky Mountains at sunset from Kuwohi.
Wolfgang Kaehler/LightRocket/Getty Images

This movement began in 1924 among the Salish and other groups because its namesake, Peter Rainier, was a British naval officer who was known as being “anti-American.”

Another example is a push by 20 different Indigenous tribes, including the Lakota Nation and the Oglala Sioux Tribe, to rename Devils Tower in Wyoming to Bear Lodge. The current name of this butte resulted from a poor English translation of the original Indigenous name of “bear lodge” to “bad god’s tower.” Over time, the name was simplified to “Devils Tower.”

As geographers who have studied the significance of place renaming, we have learned that it is important to engage the folks that these movements will benefit most in all conversations and decisions.

What is at stake is not just removing insulting names, but also ensuring that the process of changing place names is collaborative of all Americans, especially historically oppressed communities, to truly be restorative and meaningful for society.

Seth T. Kannarr is affiliated with the Great Smoky Mountains National Park as an Education Branch VIP (Volunteer-In-Parks) part-time.

Derek H. Alderman once served on the Federal Advisory Committee on Reconciliation in Place Names, U.S. Department of Interior.

– ref. From Confederate general to Cherokee heritage: Why returning the name Kuwohi to the Great Smoky Mountains matters – https://theconversation.com/from-confederate-general-to-cherokee-heritage-why-returning-the-name-kuwohi-to-the-great-smoky-mountains-matters-240644

MIL OSI – Global Reports –

January 25, 2025

MIL-OSI Security: U.S. Attorney ’s Office and FBI Charge Mescalero Man with Sexual Assault of a Minor

Source: Office of United States Attorneys

ALBUQUERQUE – A Mescalero man has been charged by criminal complaint with multiple counts of sexual abuse for sexually assaulting a 15-year-old girl.

Thomas Lee Chaffins, 35, an enrolled member of the Mescalero Apache Tribe, appeared before a federal judge on October 10 and was detained pending trial.

According to the criminal complaint, on September 27, 2024, Chaffins engaged in sexual acts with a 15-year-old girl, identified as Jane Doe. At 15 years old, Jane Doe was legally unable to consent to sexual activity with the 35-year-old Chaffins. Additionally, Jane Doe was reportedly too intoxicated to recall details of the assault, further rendering her incapable of consent.

If convicted, Chaffins faces up to life in prison.

U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.

The Las Cruces Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the Bureau of Indian Affairs. Assistant United States Attorneys Matilda McCarthy Villalobos and Alyson Hehr are prosecuting the case.

A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

# # #

MIL Security OSI –

January 25, 2025

MIL-OSI Global: Russia’s Brics summit shows determination for a new world order – but internal rifts will buy the west some time

Source: The Conversation – UK – By Stefan Wolff, Professor of International Security, University of Birmingham

The recent Brics summit in the Russian city of Kazan was less notable for what happened at the meeting than for what happened before, on the margins, or not at all. Among the notable things that did not happen was another expansion of the organisation.

Since the addition of Egypt, Ethiopia, Iran and the United Arab Emirates (UAE) at the 2023 Brics summit in Johannesburg, which almost doubled the number of member countries from the original five (Brazil, Russia, India, China and South Africa), further enlargement has stalled.

Argentina, which was also invited in 2023, declined to join. Saudi Arabia, another 2023 invitee, has not acted on the offer to become a member either. Its de-facto ruler, crown prince Mohammad bin Salman, was among the notable absentees in Kazan.

And Kazakhstan, Russia’s largest neighbour in Central Asia, decided not to join shortly before the summit. This drew Russia’s ire, resulting in a prompt ban on imports of a range of agricultural products from Kazakhstan in retaliation.

While invitees have declined the opportunity to join Brics, a long list of applicants have not been offered membership. According to a statement by Russia’s president, Vladimir Putin, at a meeting of senior Brics security officials in September, 34 countries have expressed an interest in closer relations with Brics in some form.

This appears to be a substantial increase in interest in Brics membership compared to a year ago, when South Africa’s foreign minister, Naledi Pandor, listed 23 applicants ahead of the 2023 summit.

But the fact that, since then, only six invitations have been extended – and four accepted – indicates that formal enlargement of the organisation, at least for now, has been stymied by the inability of current members to forge consensus over the next round of expansion and the reluctance on the part of some invitees to be associated with the organisation.

Meetings on the margins

The summit declaration may offer little of substance. But there were a number of bilateral meetings before and in the margins of the gathering that are more indicative of the direction of Brics. Perhaps most importantly, India’s prime minister, Narendra Modi, and China’s president, Xi Jinping, held their first face-to-face discussion in five years.

This is a remarkable change from just a few months ago, when tensions between New Delhi and Beijing were intense enough for Modi to cancel his participation in the summit of the Shanghai Cooperation Organisation in Astana, Kazakhstan. Yet, with a deal now reached over their countries’ longstanding border dispute, the two most populous and, in terms of GDP, economically most powerful members of Brics have an opportunity to rebuild their fraught relations.

A warming of relations between China and India could generate more momentum for Brics to deliver on its ambitious agenda to develop, and ultimately implement, a vision for a new global order. Implicit in this would be a shift of leadership in Brics from China and Russia to China and India, and with it, potentially a change from an anti-western to a non-western agenda.

This is, of course, something that exercises Putin. He acknowledged as much when he referred to the global south and global east in his remarks at the summit’s opening meeting. He also emphasised that it was important “to maintain balance and ensure that the effectiveness of Brics mechanisms is not diminished”.

In his own bilateral meetings before and during the summit, Putin drove home the point that, despite western efforts, Russia was far from isolated on the world stage. One-to-one meetings with Xi, Modi, South Africa’s president, Cyril Ramaphosa, and the president of the UAE, Mohammed bin Zayed Al Nahyan, gave Putin the chance to push his own vision of Brics as a counterpoint to the US-led west.

This may be a view shared in the global east – Russia, China and Iran, as well as non-Brics members North Korea, Cuba and Venezuela. But many in the global south – particularly India and Brazil – are unlikely to go all in with this agenda. They will focus on benefiting from their Brics membership as much as possible while maintaining close ties with the west.

Lacking a coherent agenda

India is the most significant player in Brics when it comes to balancing between east and west. Nato member Turkey is the equivalent on the outside. The country’s president, Recep Tayyip Erdoğan, travelled to Kazan and did not shy away from an hour-long meeting with his “dear friend” Putin.

The relationship between Moscow and Ankara is fractious and complex across a wide range of crises from the South Caucasus, to Syria, Libya and Sudan. Yet, on perhaps the most divisive issue of all, Russian aggression towards Ukraine, Turkey has consistently maintained opened channels of communication with Russia and remains the only Nato power able to do so.

The fact that there has been relatively little public pressure from official sources in the west on Erdoğan to stop is probably a reflection that such communication channels are still valued in the west. This, and Nato’s continued cooperation with India, point to a hedging strategy by the west. India cooperates with the US, Australia and Japan – the so-called Quad group of nations – on security in the Indo-Pacific, and it has maintained political dialogue with Nato since 2019.

Turkey and India may not see eye-to-eye with the west on all issues. But neither do they with the global east camp inside Brics, and especially not with Russia. If nothing else, this limits the ability of Brics to forge a coherent agenda, deepen integration and ultimately mount a credible challenge to the existing order.

Relying on India and Turkey to do the west’s bidding in undermining Brics, however, is not a credible long-term strategy. Brics may have achieved little as an organisation, but the Kazan summit declaration indicates that its key players continue to harbour aspirations for more.

However, as the flailing expansion drive of the organisation indicates, there is also an internal battle in Brics over its future direction. This, in turn, creates space and time for the west to exercise more positive and constructive influence in the ongoing process of reshaping the international order.

The global east may be beyond redemption, but there is still a massive opportunity to reengage with the global south.

Stefan Wolff is a past recipient of grant funding from the Natural Environment Research Council of the UK, the United States Institute of Peace, the Economic and Social Research Council of the UK, the British Academy, the NATO Science for Peace Programme, the EU Framework Programmes 6 and 7 and Horizon 2020, as well as the EU’s Jean Monnet Programme. He is a Trustee and Honorary Treasurer of the Political Studies Association of the UK and a Senior Research Fellow at the Foreign Policy Centre in London.

– ref. Russia’s Brics summit shows determination for a new world order – but internal rifts will buy the west some time – https://theconversation.com/russias-brics-summit-shows-determination-for-a-new-world-order-but-internal-rifts-will-buy-the-west-some-time-241610

MIL OSI – Global Reports –

January 25, 2025

MIL-OSI USA: N.M. Delegation Announces Over $3 Million for Tribal Communities to Address Opioid Use Disorder

US Senate News:

Source: US Senator for New Mexico Ben Ray Luján

ALBUQUERQUE, N.M. — U.S. Senators Martin Heinrich (D-N.M.) and Ben Ray Luján (D-N.M.), and U.S. Representatives Teresa Leger Fernández (D-N.M.), Melanie Stansbury (D-N.M.), and Gabe Vasquez (D-N.M.) are announcing $3,068,909 from the U.S. Department of Health and Human Services (HHS) to Tribal communities to serve individuals with opioid use disorder and co-occurring substance use disorders by funding culturally specific and evidence-based treatment, including medication for the treatment of opioid use disorder (MOUD). These HHS Tribal Opioid Response Grants are being awarded through the Substance Abuse and Mental Health Services Administration (SAMHSA).

“Tackling the opioid crisis with the urgency it demands means expanding our approach. That includes everything from providing improved access to the lifesaving medication used to treat opioid use disorder to empowering local communities to develop treatment programs that are grounded in their distinct experiences and cultures. I’m proud to welcome over $3 million for Tribal communities to do exactly that,” said Heinrich. “I won’t stop fighting to eliminate barriers to lifesaving medication and help New Mexicans get the care they need.”

“Far too many across our Tribal lands have seen firsthand how the opioid epidemic has devastated our communities,” said Luján, a member of the Indian Affairs and Health, Education, Labor and Pensions Committees. “This $3+ million in federal funding will deliver critical treatments and medications to address opioid use disorder in our Tribal communities. Throughout my time in Congress, I have secured millions to expand opioid use disorder treatments, introduced bipartisan legislation to increase investments in substance misuse prevention, and called for an increase in funding in our nation’s response to the opioid use disorder epidemic. I am proud to welcome this funding alongside our Congressional delegation and will keep fighting to expand addiction treatment services and protect the health of our Tribal brothers and sisters.”

“For far too long, opioid addiction has ravaged our Tribal communities, and the need for culturally specific treatments is critical,” said Leger Fernández. “This funding will help provide life-saving treatment, tailored to the needs of Native communities, so that we can address the opioid crisis head-on. By combining evidence-based practices with the cultural knowledge of our Tribes, we can offer real hope and healing. I will continue to fight for more resources and support to make sure every New Mexican has access to the care they need to recover and thrive.”

“Culturally informed care is vital to addressing the opioid crisis in every community that is suffering,” said Stansbury. “This $3 million investment will help Tribal communities take care as they see fit, as they know what is best for their communities. I will continue to fight for more funding and tools to solve this crisis so New Mexicans can not only recover from addiction but thrive in life.”

“New Mexico’s Tribes and Pueblos have long faced significant challenges in combating the opioid crisis. I’m proud to welcome these funds to provide critical resources to help address opioid addiction head-on,” said Vasquez. “Supporting culturally specific and evidence-based treatments ensures that we’re not only tackling the crisis but also providing Indian Country with the tools they need to better support recovery. I’m committed to securing more funding and resources to combat this crisis and save lives.”

Recipient	Award Amount
Albuquerque Area Indian Health	$1,478,168
Pueblo of Pojoaque	$250,000
Five Sandoval Indian Pueblos, Inc.	$250,000
Santo Domingo Tribe	$295,107
Ohkay Owingeh	$250,000
Nambe Pueblo Governor’s Office	$295,634
Taos Pueblo	$250,000

The N.M. Delegation has continuously worked to make opioid use disorder treatments more readily available.

MIL OSI USA News –

January 25, 2025

MIL-OSI USA: Burgum highlights impact of Destination Development program with ribbon cutting for Good Bear Bay Lodge

Source: US State of North Dakota

Gov. Doug Burgum along with North Dakota Department of Commerce Tourism and Marketing Director Sara Otte Coleman and others celebrated the opening today of the Good Bear Bay Lodge at Indian Hills Resort, a unique new lodging option on the shores of Lake Sakakawea.

The Good Bear Bay Lodge fills a gap in the area’s lodging options, offering a spacious 4-bedroom, 2.5-bath lodge ideal for families or larger groups. It boasts a full kitchen, a comfortable living area and, as a highlight, an extended covered outdoor patio that provides an additional gathering space.

“North Dakota’s tourism industry continues to thrive, and the Good Bear Bay Lodge is a shining example of how expanding services at one of our state’s key destinations, Lake Sakakawea, can help us attract more visitors from across the country and address our workforce challenges,” Burgum said. “This new lodge provides a unique accommodation option for families and groups seeking a memorable escape on Lake Sakakawea.”

The lodge was made possible with the help of the Commerce’s Destination Development Grant program, which was approved by the state Legislature in 2023 and signed into law by Burgum. The program awarded $25 million in matching grants to 14 projects last November.

“There was tremendous interest in the program, with 81 projects requesting more than $151.5 million in funding,” Otte Coleman said. “The Good Bear Bay Lodge stood out for its ability to fill a gap in family lodging and extend the time visitors spend in our state’s most scenic areas.”

The Good Bear Bay Lodge is built on a slab foundation, ensuring easy accessibility for guests of all abilities. The lodge is open year-round, allowing visitors to enjoy everything Lake Sakakawea has to offer, from ice fishing in the winter to summer water sports and fall hunting.

“We are thrilled to open the Good Bear Bay Lodge and provide families and groups with a comfortable and convenient place to stay,” said Kelly Sorge, co-owner of Indian Hills Resort. “We’ve received a lot of interest already, and we’re excited to welcome guests and share the beauty of Lake Sakakawea.”

Indian Hills Resort offers a variety of experiences for guests, including kayak and paddleboard rentals, a pontoon for rent, and guide services. The resort is also pet-friendly and caters to the needs of hunters, fishermen and families with children.

Today’s ribbon cutting marks the second opening of a project completed with Destination Development grant support in as many months. On Sept. 11, Lt. Gov. Tammy Miller attended the unveiling of Citizens Alley, a public space in downtown Minot for recreation and community engagement. Miller also attended the groundbreaking in August for a new events center at Woodland Resort on the shores of Devils Lake, another Destination Development project.

MIL OSI USA News –

January 25, 2025

MIL-OSI: Transocean Ltd. Provides Quarterly Fleet Status Report

Source: GlobeNewswire (MIL-OSI)

STEINHAUSEN, Switzerland, Oct. 24, 2024 (GLOBE NEWSWIRE) — Transocean Ltd. (NYSE: RIG) today issued a quarterly Fleet Status Report that provides the current status of, and contract information for, the company’s fleet of offshore drilling rigs.

This quarter’s report includes the following updates:

Deepwater Atlas – Awarded a 365-day contract in the U.S. Gulf of Mexico at a dayrate of $635,000.
Deepwater Conqueror – Awarded a 365-day contract in the U.S. Gulf of Mexico at a dayrate of $530,000.
Deepwater Invictus – Awarded a 1095-day contract in the U.S. Gulf of Mexico at a dayrate of $485,000.
Deepwater Invictus – Awarded two one-well contract extensions in the U.S. Gulf of Mexico.
Dhirubhai Deepwater KG1 – Awarded a six-well contract in India at a dayrate of $410,000.
Transocean Spitsbergen – Customer exercised a three-well option in Norway at a dayrate of $483,000.
Transocean Endurance – Customer exercised a one-well option in Australia at a dayrate of $390,000.
Transocean Endurance – Customer exercised a five-well option in Australia at a dayrate of $390,000.

The aggregate incremental backlog associated with these fixtures is approximately $1.3 billion. As of October 24, 2024, the company’s total backlog is approximately $9.3 billion.

The report can be accessed on the company’s website: www.deepwater.com.

About Transocean

Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. Transocean specializes in technically demanding sectors of the global offshore drilling business with a particular focus on deepwater and harsh environment drilling services and operates the highest specification floating offshore drilling fleet in the world.

Transocean owns or has partial ownership interests in and operates a fleet of 34 mobile offshore drilling units, consisting of 26 ultra-deepwater floaters and eight harsh environment floaters.

Forward-Looking Statements

The statements described herein that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements could contain words such as “possible,” “intend,” “will,” “if,” “expect,” or other similar expressions. Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are beyond our control, and many cases, cannot be predicted. As a result, actual results could differ materially from those indicated by these forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, estimated duration of customer contracts, contract dayrate amounts, future contract commencement dates and locations, planned shipyard projects and other out-of-service time, sales of drilling units, the cost and timing of mobilizations and reactivations, operating hazards and delays, risks associated with international operations, actions by customers and other third parties, the fluctuation of current and future prices of oil and gas, the global and regional supply and demand for oil and gas, the intention to scrap certain drilling rigs, the effects of the spread of and mitigation efforts by governments, businesses and individuals related to contagious illnesses, and other factors, including those and other risks discussed in the company’s most recent Annual Report on Form 10-K for the year ended December 31, 2023, and in the company’s other filings with the SEC, which are available free of charge on the SEC’s website at: www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward looking statements. Each forward-looking statement speaks only as of the date of the particular statement. We expressly disclaim any obligations or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in our expectations or beliefs with regard to the statement or any change in events, conditions or circumstances on which any forward-looking statement is based, except as required by law. All non-GAAP financial measure reconciliations to the most comparative GAAP measure are displayed in quantitative schedules on the company’s website at: www.deepwater.com.

This press release, or referenced documents, do not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and do not constitute an offering prospectus within the meaning of the Swiss Financial Services Act (“FinSA”) or advertising within the meaning of the FinSA. Investors must rely on their own evaluation of Transocean and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of Transocean.

Analyst Contact:
Alison Johnson
+1 713-232-7214

Media Contact:
Pam Easton
+1 713-232-7647

The MIL Network –

January 25, 2025

MIL-OSI Economics: Transcript of Press Briefing: Asia and Pacific Department Regional Economic Outlook October 24

Source: International Monetary Fund

October 24, 2024

Speakers:

KRISHNA SRINIVASAN, Director of the Asia and Pacific Department, International Monetary Fund

THOMAS HELBLING, Deputy Director, Asia and Pacific Department, International Monetary Fund

Moderator:

RANDA ELNAGAR, Senior Communications Officer, International Monetary Fund

* * * * *

MS. ELNAGAR: Good morning and welcome to our attendees here in the room and those joining us online and virtually. This is the Press Briefing on the Regional Economic Outlook for the Asia Pacific Department. I am Randa Elnagar of the IMF’s Communications Department. Joining me today is Krishna Srinivasan, Director of the Asia Pacific Department, and Thomas Helbling, Deputy Director of the Asia Pacific Department. To kickstart our briefing, Krishna is going to give some opening remarks and then we’re going to take your questions. Thank you.

MS. SRINIVASAN: Thank you, Randa. Good morning to everyone here in Washington, D.C. Good evening to everyone in Asia. Welcome to our Press Briefing for Asia and the Pacific. Allow me to make a few opening remarks.

Let me start with growth. In the first half of this year, Asia’s economies grew stronger than we had expected. As a result, we have upgraded our regional forecast to 4.6 percent in 2024 and to 4.4 percent in 2025. With this, Asia remains the world’s engine of growth. It generates 60 percent of global growth, far more than its share in global GDP of about 40 percent.

Going forward, we expect domestic demand to strengthen in advanced Asia as the impact of past monetary tightening fades. Growth in India and China would remain resilient, even though in both economies it would slow slightly in 2025. For emerging markets outside China and India, we expect robust and broad based growth.

Inflation. Asia has also brought inflation down to low and stable rates faster than other regions. In Emerging Asia, the disinflation process is essentially complete. There are a few exceptions in advanced Asia, notably Australia and New Zealand, where wage pressures have kept services inflation elevated. But we expect these pressures to fade as well within the next 12 months or so.

This means that most Asian central banks now have room to cut interest rates earlier in the year. Some central banks may have been reluctant to ease before the Federal Reserve, fearing that this could put their currencies under pressure. But as the Fed has now started its own easing cycle, such concerns should have dissipated.

Let me add a little bit more detail on the China outlook. As you can see on the left hand side, activity has decelerated since the first quarter. As a result, we have marked down growth to 4.8 percent in 2024 compared to 5 percent in our July WEO update. In particular, the property sector has continued to deteriorate and weigh on investment, while private consumption has also weakened amid low consumer confidence. This forecast incorporates the monetary and financial sector policies that were announced in September.

Weak Chinese demand is triggering into continued disinflationary pressures as shown on the right-hand side core inflation fell to 0.1 percent year-on-year in September. Several developments have taken place since we finalized our China forecast. Q3 data came out marginally weaker than we expected. At the same time, the authorities announced additional fiscal and housing measures which could provide some upside potential to our growth projection, especially in 2025 when the policy measures are likely to take effect.

The external environment remains tough. Going back to the broader region, the environment in which Asian policymakers act has become tougher. Risks to the outlook are now tilted to the downside. For example, there are tentative signs that global demand could weaken, including from the United States, which would be bad news for an export dependent region like Asia. China’s domestic demand weakness also continues to weigh on the wider region.

Moreover, countries across the globe continue to implement trade restrictions at a rapid pace. We see already how trade flows are adjusting: China, for example, exports relatively more to emerging markets and less to advanced economies than five years ago. The ASEAN economies export more to China and the U.S. as trade targeted by U.S. and Chinese startups get channeled through third countries. In economic terms, this is a costly detour. As we stressed before, no one really wins from trade fragmentation. We all pay for this with slower global growth. And Asia has more to lose than others given its tight integration into global supply chains.

Now, how should Asian policymakers navigate this environment? I talked already about monetary policy where welcome policy space has emerged. Unfortunately, the same is not true for fiscal policy. Public debt increased sharply during the Pandemic in Pacific Island countries. Debt ratios almost doubled, but debt has hardly come down since then. This drives up debt service costs and leaves governments with little spending power to address unforeseen events.

In some economies, weak private demand may justify somewhat larger fiscal deficits in the near-term. Again, the emphasis is on the near-term. But for most Asian countries, it’s time to start budget reconsolidation in earnest, both to build buffers against downside risks and to preserve spending power for addressing longer term challenges such as climate change and population aging.

Let me spend a few words on another long-term issue, structural transformation and the future of Asian growth. Asia’s traditional development model has been based on moving workers from agriculture into manufacturing and on selling the manufactured goods in the global market. The success has been spectacular. It unleashed the maybe greatest development success in story of human history. In recent decades, Asian economies have shifted more into services rather than manufacturing, however. This has been good for growth as modern services are often more productive than manufacturing. This trend is likely to continue as many Asian economies have reached income levels where the demand for manufactured goods typically declines and the demand for services tends to increase.

Moreover, digital technology is making some services, such as business and finance, tradable in global markets. A global market for services holds large growth opportunities, but harvesting them will require reforms. In particular, education and training will be important. It will need to equip workers with the skills to provide modern services. And Asia should open up its services sectors to trade and investment. They remain relatively closed now, different from manufacturing.

Finally, let me note, we will publish the Regional Economic Outlook November 1 in Tokyo, together with an analytical piece about the future of Asia’s growth model.

With this, Thomas and I will be happy to take your questions. Thank you.

MS. ELNAGAR: Thank you, Krishna. Please raise your hand and identify yourself and your news organization.

QUESTIONER: Thank you, Randa, for taking my question. I’m Maoling Xiong with Xinhua News Agency. So, Krishna, I talked about fragmentation in your opening remarks. I wonder whether you could elaborate a little bit on the economic impact of economic fragmentation on Asia, especially it’s so integrated into the global system. Thank you.

MS. SRINIVASAN: Thank you for the question, Maoling. As you know, there is evidence that global supply chains have been rewiring in recent years. Now this goes for the time before the Pandemic and into the context of U.S. China trade tensions. Now we have done some work in our Regional Economic Outlook which is forthcoming, which looks at the impact of the trade tension between U.S and China on Asian economies.

What we find is that many Asian economies, notably those in the ASEAN, have increased their market shares of both Chinese and U.S. imports in both gross and value added terms, in what we call as connected countries. Now we also find that these third-party Asian countries, exports of targeted goods, of the goods which are targeted for tariffs by U.S. and China, they’ve also increased. And what we find particularly the case is for some countries like Thailand, Korea and Singapore, these effects are particularly strong. In other words, the sectors which are targeted by tariffs have seen ASEAN countries exporting more.

Now again, I was talking about the targeted sectors. If you look at the aggregate growth, aggregate export growth, the question is whether these increase in targeted exports show up in the aggregate exports. And there the picture is mixed. Some countries have done better. For instance, Vietnam has done better both in terms of targeted exports and aggregate exports.

But the point I’d like to leave with you here is in the short run we see these trade patterns changing. The question, of course, is whether this is temporary, whether it’s permanent. It’s only time will tell. But our analysis, you know, has shown that in the long run everyone hurts from trade fragmentation, from fragmentation and that’s because global demand comes down. When global demand comes on, everyone hurts. So this is the message I would like to leave with that there have been shifting trade patterns because of fragmentation. But the point here is over the long run, everybody will lose. And so we all have to collectively fight against these forces of fragmentation.

MS. ELNAGAR: Thank you, Krishna. Lady in the pink jacket.

QUESTIONER: Hi, my name is Ray Zho, financial journalist at 21st Century Rui Zhou,China. So I have two questions. First is about Asia Pacific. The IMF report has indicated a somewhat positive growth outlook for Asia Pacific region, especially in emerging markets compared to other regions. So can you elaborate on the key factors contributing to this relative strength? And the second question is about China. So China’s recent economic stimulus measures could create potential opportunities for stronger growth in the future. So can you elaborate on these measures and the potential long-term benefits for China’s economic structure? Thank you.

MS. ELNAGAR: Thank you. Do we have any other questions on China? Okay, the lady here.

QUESTIONER: Thank you. My name is Xu Tao from China Central Television, and I have two questions. The first is how do you evaluate China’s role in the development of the world economy? And the second is about the trade tension between the U.S. and China. As you mentioned, the trade and the trade tension between U.S. and China will affect the Asian growth. So if more traverse, if more tariffs are imposed on the Chinas by an incoming U.S. administration, how will that affect Asian growth? Thank you.

MS. ELNAGAR: One more on China. The gentleman.

QUESTIONER: Hi, good morning. My question is for Krishna. Thank you so much. You said in your presentation that the growth in India and China will slow down in 2025. Can you please elaborate reasons as to why the growth will slow down. And also about the South Asian countries, the growth in like Nepal, Bangladesh, if you could elaborate as that as well. Thank you.

MS. SRINIVASAN: Okay, thank you for those questions on China. So let me – let me start by saying that we have revised on our growth forecast for China for 2024 to 4.8 percent, and that is coming down from 5 percent we had in the Article IV Consultations and during the July WEO update.

The question is why have we revised down? Now if you look at growth in China, domestic demand has been very weak since the first quarter. So numbers coming out from China since Q1 have been pretty weak. Now that is offset somewhat by the measures announced in September, the monetary and financial measures. Again, we have to break up these measures into two sets. One is the monetary and financial sector policies, which were announced in September, and the fiscal policy measures, which were announced in October. So the first set of measures were already internalized in our baseline forecast. And that — so you had Q1, activity since Q1 being very weak, offset by some support measures. So we mark it down to 4.8 percent. Now support since then could provide some upside potential.

The question you asked also is: how do we see the impact of these measures now? Most of these measures, which were announced in September on the monetary and financial sector side, were consistent with what we had elaborated on in our Article IV reports in July. So we welcome those measures. And on the fiscal measures, we’re still awaiting further details, including how big it is, how – how will it retarget? We know the broad areas of targeting. They’re trying to reduce the debt for local governments and trying to alleviate the problems in the property sector. But we still don’t know all the details.

Now, going beyond this, what are we saying is that to address the – the issue of weak domestic demand and to put the economy back on a more sustainable trajectory, there needs to be — more needs to be done to help rehabilitate the property sector. And we provided these numbers estimates. We think central government support both to, you know, finish these pre-sold housing is important. It’s important to resolve the unviable developers. So all that will take some fiscal costs. And we are very clear that in the near-term China could use some of the fiscal resources to address the problem in the property sector. But beyond the near-term, over the medium term, given rising debt levels, China will need to embark on consolidation.

We also talk about refocusing expenditures to boost social safety nets and do pension reform, which will allow China to save more going forward. So right now China saves a lot. So if you have these measures addressing Social Security and pensions, that will allow Chinese to save less, and that will also provide a boost to domestic demand, rebalance the economy, and also lead to lower imbalances going forward.

Now there are other questions on why Asia is doing better. Emerging markets in Asia doing well. See, in Asia you had a huge labor force, which is more — which is cheaper than other parts of the world. Productivity has been high in many parts of Asia, and this is a region which is really integrated well into global supply chains and the global economy, and so on. So that lends inherent dynamism to the region, and that we expect to continue going forward. However, you do see some problems going forward in terms of populations aging in some parts of the world, some parts of Asia, notably in China, Korea. It’s already happening in Japan and so on. So you have population aging, you have AI coming into play, you have climate change. All these are factors which could affect, you know, prospects going forward. But that’s where you need reforms which address these challenges going forward.

Now, there were some questions on –

MS. ELNAGAR: We can stick to China now and then go to other questions.

MS. SRINIVASAN: We’ll come back to other questions. So those are the questions. Response on China.

MS. ELNAGAR: Okay, next. Okay, we go to this side. Gentleman.

QUESTIONER: thank you very much. Thank you very much, Randa. Shu Tataoka from JiJi Press. I have a question on Japanese economy. In the latest WEO, you have revised up the BOJ neutral rate to 1.5 percent. And what is the implication of such drastically revised up, especially given Japanese high debt level? And another question is on Japanese yen. Japanese yen has depreciated recently again. And what is your view on that – that development? Can you describe it as excessive movement which we should pay attention? Thank you.

MS. ELNAGAR: Any other questions on Japan?

MS. SRINIVASAN: Okay. Thank you for the question. Let me, you have — you have a number of questions. One question — so let me answer one by one. We welcomed the Bank of Japan’s decision to increase the policy rate in July, which will help anchor inflation and inflation expectations at around the 2 percent target. Now, given balanced risks of inflation, further hikes in policy rates should proceed at a gradual pace. Now, nominal neutral rate estimates for Japan range from 1 to 2 percent based on different methodologies and we now expect the policy rate to reach 1.5 percent in 2027.

Now, in terms of what does – what do rising interest rates in Japan mean for the rest of the world? Now, from a very global perspective, an increase in interest rates in Japan could have output spillovers to other sovereign debt markets where Japanese investors hold large positions. But that said, so far we’ve seen these growth spillovers to be pretty muted because the BOJ decisions have been well communicated and they’ve been very gradual. So it’s been — markets have been given the time to both internalize these changes and what comes next. So in that sense, the spillovers have been limited.

Now you ask the question what does also mean for the rest of the world? I think rising interest rates gives support. Gives, I mean, it’s in line with, you know, improving prospects in Japan. Though when Japan’s economy grows, it’s good for both the region and – and for the global economy.

Now, in terms of the exchange rate. The Japanese authorities are fully committed to a flexible exchange rate regime. So we’ve seen exchange rate depreciation and appreciation over the past one year. So it’s been pretty flexible. Now that said, the yen has been used as a funding currency for carry trade. And that means that over the past year or so, sometimes the changes in the yen can be magnified because of the unwinding of carry trade. And we saw that on August 5th, not just because of what happened in terms of the BOJ increasing rates, but also because in response to how the labor market of this came out, the reaction was magnified because of the unwinding of carry trade. So that’s been an issue. But other than that, what we feel are the authorities are fully committed to the flexible exchange rate regime. Thank you.

MS. ELNAGAR: Thank you, Krishna. Can we move to the India question? And then I have another India question that came in online from Informist Media, Siddharth Upasani. The IMF sees India growth declining to 6.5 percent in FY26. This is lower than Reserve Bank of India forecast 7 percent. The RBI, in fact, is far more bullish about India’s growth in general, with Deputy Governor Michael Patra saying in New York on Monday that there is a strong possibility of India’s GDP growth returning to an 8 percent trend after FY26. Does the IMF share this view? If not, do you think Indian authorities are being overly optimistic?

Any other questions on India or you ready to discuss?

MS. SRINIVASAN: Yeah, thank you for those two questions. I’ll have my colleague Thomas answer the question.

MR. HELBLING: On India. So on India and on growth, I think it’s important with the general point, we see India as the strongest growing major emerging market economy this year, but also in the coming years. Point number one. Point number two, this year we have revised up growth for the current fiscal year in year 7 percent, reflecting stronger — the expectation of stronger private consumption after a favorable monsoon season that will strengthen in particular rural demand.

In terms of the growth trajectory, India had 8 percent last year. This year we project 7 and then to 6.5 percent. For us, it’s a return back to potential after the Pandemic, after government’s recent infrastructure push and after the rebound after some financial stresses. India has benefited from strong cyclical growth, and we now expect a return back to potential over the next two years, six and a half percent. I would note that potential growth for India had been revised upward last year, and there is scope for even higher potential with adequate more structural reforms. Our India team has noted in particular labor market reforms, some fiscal reforms, and maybe an increased infrastructure push, and also if there were reforms to education and skilling the labor force. So there is scope for even higher growth. But at the moment we see policies consistent or our current policies, we see six and a half percent potential growth which is high.

MS. SRINIVASAN: If I could just add, you know, we have in the REO chapter we have an analytical note on structural transformation where countries will move towards more services led growth. I think in that context there’s a lot of potential for India to benefit from that kind of growth. However, to benefit from that kind of growth, significant amount of investment has to take place in education and scaling of labor which as Thomas mentioned. So we want to look at that note when it comes out next week.

MS. ELNAGAR: Thank you. I think he also asked about Nepal so we can move because we have I think a Webex question on Nepal. So Sharad, if you can please put on your screen camera and turn on the audio. Sharad?

QUESTIONER: Good afternoon. Sorry, good evening. Am I audible?

MS. ELNAGAR: We can hear you. Yes.

QUESTIONER: Okay, I will ask two questions. One, IMF, has sent Nepal’s county rep between ECF agreement, why did the Fund send country representatives in between the agreements? And second, some individuals argue that Nepal have not carried out required fiscal and monetary reform as promised under ECF. How do you access Nepal’s progress regarding ECF commitments? Thank you.

MS. ELNAGAR: Thank you.

MR. HELBLING: On Nepal, we have regular changes in our staff, as you know, we have staff mobility, regular changes in assignments. So we have a transition in resident representatives as we also have in other countries. Point number two on the ECF. Nepal has an ECF. The arrangement started in 2022. So far we have completed four reviews under the program. Discussions for the fifth review are underway. There was a change in government in August, so the discussions are continuing with the new government. And as to my knowledge, performance on the quantitative performance criteria is strong. There is some discussion ongoing about whether some requirements on the structural benchmarks have been met and or whether there need be a recalibration of some of the structural benchmarks. These are ongoing discussions, and the Nepal team will soon go back into the field.

MS. ELNAGAR: Thank you, Thomas. Questions from the room. The lady in the third row.

QUESTIONER: Hello, my name is Sanghoon Lee. I’m from the Korea Economic Daily newspaper. I got a question for Krishna Srinivasan. Since after the United States presidential election, it is likely the economics conflict between the United States and China will escalate even further. So I believe this kind of a situation is highly likely to constrain the economic growth of countries like South Korea. So my question is, I’m curious to what extent this scenario is reflected to your outlook. And also, I would like to hear how much impact do you expect it to have on Korea’s economic growth afterwards. Thank you.

MS. SRINIVASAN: Thank you. You asked me that question, but Thomas could answer.

QUESTIONER: Yeah. And I will add one more question that came online from Korea from Ahn Taeho, Hankyoreh. She said, could you provide a brief evaluation of the current state and outlook of South Korean economy. Specifically, while exports seem to be recovering, domestic demand remains sluggish. What does the IMF see the main reasons behind the weak domestic consumption and what is the forecast for its recovery?

MR. HELBLING: So, for Korea, our forecast for this year is 2.5 percent and then growth will slow towards potential to 2 percent next year. As you mentioned, growth in first half of this year was stronger than expected. Very strong growth. In particular on the external side, domestic demand was weaker than in the external sector or the export sector. This weakness in domestic demand reflected in particular the loss or the erosion of purchasing power. With the rise, the surge inflation globally and then the monetary policy tightening which affected domestic demand in particular through the relatively high private debt burden, increasing debt service payments. This situation is about to change. As the Bank of Korea has started the monetary policy easing cycle, inflation has declined. So, with the similar nominal compensation and income increases, real purchasing power will increase, and we expect domestic demand to strengthen.

Indeed, in the Q3 release that was just released last night, Washington time, domestic demand in Korea has strengthened in Q3 as expected. As for trade tensions, these are not — our baseline does not incorporate a further increase in trade tensions. As noted in the release of the World Economic Outlook and as also noted or will be noted down in our Regional Economic Outlook, an increase in trade tensions is a major downside risk. Korea is very strongly integrated in global supply chains into global markets and exposed, strongly exposed both to China and the United States.

So as previous regional economics outlooks have highlighted, Korea will be relatively more affected negatively if there were a further increase in the trade tensions between the United States and China. I cannot say much more because if there were an increase in trade tensions, much would depend on details on measures, the extent of the increase in tensions so far. And so there’s no point in going further at this point. Thank you.

MS. ELNAGAR: Thank you. We can take question from the gentleman.

QUESTIONER: Hi. Thank you for the opportunity, I’m with Idika from Economy Next from Sri Lanka. I have two questions. Now that the debt restructuring process is largely completed, what are the key fiscal or structural benchmark does Sri Lanka need to meet in order to unlock the fourth transfer of funding? And how does the recent change in government impact the timeline or the likelihood of achieving these targets?

The second question is that there are talks that the new government is sort of contemplating dropping the imputed rental tax that is supposed to come next year. Has this been discussed with the IMF so far? Also, what’s IMF position on Sri Lanka continuing with the vehicle suspension?

MS. ELNAGAR: Any other question on Sri Lanka?

QUESTIONER: Hi, thank you for taking my question. My name is Magnus Sherman, I’m with Reorg. I wanted to touch on the Sri Lanka’s debt restructuring. We heard the Managing Director just an hour ago say that it’s important to help countries back on their feet as quickly as possible. The Macro link bonds Sri Lanka has this mechanism where the better they perform, the more debt they effectively have to pay back. So you could argue that does the exact opposite. What’s the IMF’s position on this? Is that something you would recommend future restructurings to include as well? I know it’s very popular among creditors, but it could backfire.

MS. ELNAGAR: Thank you. I think we have a Webex question on Sri Lanka too. Zuflik, if you can please put on your camera. Here we go. We cannot hear you.

QUESTIONER: This is from News First Sri Lanka. My question is to Mr. Srinivasan. Sri Lanka is currently on a IMF supported program for 48 months. Is IMF having any long-term support program for Sri Lanka given that the debt restructuring is also in its final stages? And just 48 hours ago at the G24 press briefing, we had the director of G24 saying that countries like Sri Lanka, the middle-income countries, should also have something similar to a common framework and there should be timely debt reduction measures also in place. What is the IMF’s position on these two aspects? Thank you.

MS. ELNAGAR: Any other questions on Sri Lanka? We have a few similar questions that came through the media center. So we’re going to answer them if we can please. Krishna and Thomas. Thank you. So there is a question from Ceylon Newspaper. How is the progress of Sri Lanka’s program and when is the third review expected? So it’s similar to what was asked. What are the expected dates of releasing the next change? How can Sri Lanka address post debt restructuring challenges, particularly within loan interest payments starting next year?

There is also the Daily Mirror. He’s asking has the change in the presidency and the likelihood of change of government at the upcoming parliament polls has an impact on the agreement already reached between Sri Lanka and the IMF. Has there been any move by the new Sri Lankan administration to renegotiate the agreement reached between Sri Lanka and the IMF? There is also similar questions from Hero News and from — that’s it.

MS. SRINIVASAN: Thank you. Quite a few questions. Let me try to answer all of them. So when the new government took office not too long ago, I led a high level team to Colombo to discuss the to engage with the authorities. And we had some very, very productive discussions with the new government and the team there. And the discussions are continuing this week during the Annual Meetings. Now, there was broad consensus, I would say unanimous consensus, that Sri Lanka, which was tearing at the abyss in 2022, has come a long way in terms of undertaking reforms which have led to some hard won gains, as you can know. You’ll note that growth has been positive the last four quarters. Inflation is coming down. So there is consensus that the new government, you know from the new government that it would like to safeguard and build on the hard won gains under the program.

Now, under the program we have elements which address some of the priorities of the new government, including in terms of social protection and so on. But the details on the program are continuing and they’ll be happening this week in Washington. And we are encouraged by what we have heard so far and hoping that, you know, we can move fast towards the third review which will come up soon. Now, in terms of there was a question on the debt restructuring. They have reached agreements with the official creditors, and they’ve reached an agreement in principle with the private creditors. The next step would be to reach a formal agreement with all creditors. And that’s a big step forward. And of course that’s not the end. There’s a lot more work to be done in terms of continuing with the reforms because a long way to go before you’re on the path of strong and sustainable recovery.

In terms of the macro linked bonds, this is something which is a negotiation between the country’s creditors, the country’s advisors and the creditors. We don’t get involved in the kind of instruments that they negotiate on and so on and so forth. What we are concerned about is whether these instruments and the restructuring they reach are one consistent with our program targets on debt and so on, and that there’s comparability of treatment across creditors. So that’s something which the country works on. Now you’re right that these macro linked bonds have become popular. And so, you know, it all depends, country to country, how the creditors and advisors go about it. So it’s not for me to say that this is going to be the future of all debt restructuring. It varies from country to country. We’ve seen plain vanilla bonds being exchanged and you have these kind of bonds in other countries.

Now there was one question on specific tax measures there. I mean that I don’t want to go to the detail because those are things being worked out in the context of discussions which are ongoing right now. Hopefully, you know, we’ll move along these negotiations over the next few weeks in a more targeted way. Thank you.

MS. ELNAGAR: Thank you. I know that there is someone online, but let’s have the lady here.

QUESTIONER: Given that you — I’m Natha Goonawarra from the Standard Thailand. Given that you mentioned a lot about trade fragmentation and trade tension, especially between the US and China, and I’m from Thailand and Southeast Asia. So what is your recommendation or your insight on how Southeast Asia and Thailand navigate this global economic challenge this year and what are the most influential factor in the coming years?

MS. SRINIVASAN: Thank you. I’ll have Thomas answer that question.

MR. HELBLING: So, the ASEAN countries like Thailand are very strongly integrated into the global economy. Rising trade integration has been an important engine for growth in the region. So what we have seen so far, as Krishna mentioned earlier, there’s two developments. One is the global picture of increasing trade tensions and increasing trade fragmentation. In a sense, it’s a strong negative for the global economy as a whole. Global growth will be relatively lower compared to a situation with no or fewer tensions. Real incomes and productivity will be lower. On the ASEAN side, a number of countries, including Thailand, have had some trade diversion benefits. It’s also true for Vietnam for example, or Malaysia. So that is some benefits. But our view has been that on net it’s still a negative also for the countries in the ASEAN.

So therefore we think the countries in the ASEAN should make a strong push for a continued, strong multilateral trading system for further trade integration. We also see scope for further regional trade integration. Obstacles to trade are still relatively higher in services. There’s scope there to move forward. Third, on other policies, we see scope for horizontal structural reforms to prepare the economies for a changing trade landscape, for a trendless landscape where services will be relatively more important. Krishna also mentioned already the importance of education and upskilling the labor force to prepare them for changes. And then thirdly, maintaining macroeconomic stability. In particular also having a flexible exchange rate regime that serves as a buffer to external shocks will be important.

MS. ELNAGAR: Thank you. Thank you, Thomas. We’re going to go online again because we have the gentleman. Saiful, can you please put on your camera? I have his question, but I think he cannot connect. He’s asking about Bangladesh. The IMF has lowered down GDP growth projection for Bangladesh to 4.5 percent for FY25 from April projections of 6.6 percent. What are the reasons behind the downgrading? Does the IMF have any plan to grant additional 3 billion budget support as sought by the interim government of Bangladesh? Any other questions on Bangladesh?

MS. SRINIVASAN: Thank you. Again. The reason for our revising down our growth forecast is in response to what we saw in the events in the recent past. So things have slowed down compared to what we saw previously in the April forecast. And so those developments give us a pause in terms of what’s happened to growth. There was a mission led by our mission chief, Chris Papadakis to Bangladesh, which looked at all aspects of what’s happening to the economy. Based on that, we revised on a growth forecast. In the case of Bangladesh, growth has slowed, inflation remains high, and they were making good progress. Bangladesh was making good progress under the program. So discussions are ongoing in terms of the next review. We had discussions in Bangladesh, in Dhaka, and discussions are continuing in Washington on how to move forward in terms of financing. All those will be part of the discussion which will take place this week and next. Thank you.

MS. ELNAGAR: Thank you. We have another online question from CNN Indonesia. What is Indonesia’s projected economic growth for the coming year and what are the key global risks that Indonesia should anticipate in 2025 to maintain its resilience amid shifting global economic dynamics? The second question is how are sustainability challenges and climate risks expected to shape the Asia Pacific regions economic performance in 2025? And what role will climate finance play in helping governments and businesses mitigate these risks while driving sustainable and long term growth?

MR. HELBLING: On Indonesia. Indonesia has enjoyed and is projected to continue enjoy strong robust growth around 5 percent. In terms of specific numbers, just for this year we have 5 percent and for next year we have 5.1 percent. In terms of risks, the external risk ask. I think they’re very similar for Indonesia as they are for other countries in the Asia Pacific region. An important concern is trade fragmentation or increasing trade fragmentation. What’s perhaps a bit different for Indonesia is this will play out relatively more through commodity market channels than just through manufacturing channels as elsewhere. But trade fragmentation is a big risk. And as for other emerging market regions in the Asia Pacific or elsewhere, possible shifts in monetary policy expectations, increased financial market volatility also pose some downside risks.

MS. ELNAGAR: Thank you. We have one last question online on the Pacific Islands Pacific region. It’s by Ben Westcott from Bloomberg. Given the increasing economic pressures and climate challenges facing Pacific Islands, Pacific Island nations, how does the IMF assess the current trajectory of debt burdens in the region? Are these debts shrinking or growing? And what factors are contributing to this trend?

MS. SRINIVASAN: Thank you, Randa. Now, with the deterioration of fiscal balances during the pandemic, public debt did increase on average in the Pacific island countries. In most countries, however, it has now stabilized or is falling relative to the size of the economies. Now, that said, seven out of 12 countries in the Pacific islands are considered to be at high risk of debt distress and only about 5 are considered to be at moderate risk of debt distress. So this goes to the issue of the fact that there needs to be growth friendly fiscal consolidation to bring down debt in these countries. Of course, these countries also face a challenge of the risks associated with climate change and so there is pressure on them to borrow to address these challenges. But again, we would emphasize that given where they are with their debt levels and so on, it’s prudent, it’s very important for them to access concessional financing or even grants to make sure that when they address these longer term challenges that they do that in a prudent way so that debt doesn’t become too much, doesn’t become more onerous than it is right now.

Now, on the issue of debt, this is not just limited to Pacific Island countries. What we have seen is since the global financial crisis, public debt has been rising across most countries in Asia. And so the issue of growth friendly consolidation is very important. And like I said in my opening remarks, consolidation, fiscal consolidation needs to begin in earnest in many of these countries. For some countries there could be, there may be a need to provide some support in the near term. But beyond that, all countries in Asia need to embark on fiscal consolidation, which is growth friendly.

MS. ELNAGAR: Thank you very much. Thank you Krishna and Thomas for giving us the time and answering all the questions. And we come now to the end of our press briefing. I just want to remind everyone that you can find all the briefing material and the transcript on IMF.org. I would also like to remind you that the full release of the Regional Economic Outlook of the Asia Pacific Department is going to be released in Tokyo on November 1st, as Krishna mentioned in his opening remarks. So we look forward to seeing you online or in person there. I also would like to remind you that we have regional briefings today in this room for MCD just after this and then after that for the European Department. Thank you very much and have a wonderful day.

* * * * *

IMF Communications Department

MEDIA RELATIONS

PRESS OFFICER: Randa Elnagar

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

@IMFSpokesperson

MIL OSI Economics –

January 25, 2025

MIL-OSI: First Savings Financial Group, Inc. Reports Financial Results for the Fiscal Year Ended September 30, 2024

Source: GlobeNewswire (MIL-OSI)

JEFFERSONVILLE, Ind., Oct. 24, 2024 (GLOBE NEWSWIRE) — First Savings Financial Group, Inc. (NASDAQ: FSFG – news) (the “Company”), the holding company for First Savings Bank (the “Bank”), today reported net income of $13.6 million, or $1.98 per diluted share, for the year ended September 30, 2024, compared to net income of $8.2 million, or $1.19 per diluted share, for the year ended September 30, 2023. The core banking segment reported net income of $16.9 million, or $2.47 per diluted share for the year ended September 30, 2024, compared to $14.9 million, or $2.18 per diluted share for the year ended September 30, 2023.

Commenting on the Company’s performance, Larry W. Myers, President and CEO, stated “Fiscal 2024 was, in many ways, a year of rebuilding, repositioning and refinement. A summary of these enhancement actions is provided below. While we’re not entirely pleased with the financial performance in fiscal 2024, we are confident that the Company is well positioned to better perform in fiscal 2025 and the years thereafter regardless of the economic environment. For fiscal 2025 we’ll remain focused on core banking; strong asset quality; selective high-quality lending; core deposit growth; increased SBA lending volume; continued improvement of liquidity, capital and interest rate sensitivity positions; and strategic opportunities. We believe the efforts of fiscal 2024 along with the focus for fiscal 2025 will deliver enhanced shareholder value. Additionally, we’ll continue to evaluate options and strategies that we believe will further position the Company for future success and deliver shareholder value.”

Enhancements Actions During Fiscal Year Ended September 30, 2024

Converted the core operating system immediately prior to the beginning of fiscal 2024 and committed to effectively adapt to the new system and gain efficiencies and expense reductions therewith.
Ceased national mortgage banking operations in the first fiscal quarter, including sale of the residential mortgage servicing rights portfolio.
Implemented additional expense reduction and containment strategies, which were effective.
Experienced the net interest margin floor in the second fiscal quarter and recognized expansion in the subsequent quarters, in addition to a slowed paced of deposit migration to higher cost types.
Maintained a balance sheet position that is expected to benefit in a potential decreasing rate environment but having limited exposure to potential increasing rates.
Remained disciplined in our lending philosophy with respect to both rate expectations and credit quality.
Enhanced our review of asset quality, which remains strong, in order to prepare for any potential financial downturn that may occur.
Enhanced SBA Lending business development staff with new and replacement hires throughout the fiscal year, plus decreased surplus support staff at the end of the fourth fiscal quarter.

Results of Operations for the Fiscal Years Ended September 30, 2024 and 2023

Net interest income decreased $3.5 million, or 5.7%, to $58.1 million for the year ended September 30, 2024 as compared to the prior year. The tax equivalent net interest margin for the year ended September 30, 2024 was 2.68% as compared to 3.10% for the prior year. The decrease in net interest income was due to a $22.3 million increase in interest expense, partially offset by an $18.8 million increase in interest income. A table of average balance sheets, including average asset yields and average liability costs, is included at the end of this release.

The Company recognized a provision for credit losses for loans of $3.5 million, a credit for unfunded lending commitments of $421,000, and a provision for credit losses for securities of $21,000 for the year ended September 30, 2024, compared to a provision for loan losses of $2.6 million only for the prior year. The provision for credit losses for loans increased primarily due to loan growth and the effects of adopting the Current Expected Credit Loss (CECL) methodology during the year ended September 30, 2024. The Company recognized net charge-offs totaling $527,000 during the year, of which $104,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $1.1 million during the prior year, of which $872,000 was related to unguaranteed portions of SBA loans. Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, increased $3.0 million from $13.9 million at September 30, 2023 to $16.9 million at September 30, 2024.

Noninterest income decreased $12.8 million for the year ended September 30, 2024 as compared to the prior year. The decrease was due primarily to a $14.1 million decrease in mortgage banking income due to the cessation of national mortgage banking operations in the quarter ended December 31, 2023.

Noninterest expense decreased $23.2 million for the year ended September 30, 2024 as compared to the prior year. The decrease was due primarily to decreases in compensation and benefits, data processing expense and other operating expenses of $12.0 million, $2.2 million and $7.8 million, respectively. The decrease in compensation and benefits expense was due primarily to a reduction in staffing related to the cessation of national mortgage banking operations in the quarter ended December 31, 2023. The decrease in data processing expense was due primarily to expenses recognized in the prior year related to the implementation of the new core operating system in August 2023. The decrease in other operating expense was due primarily to a $1.9 decrease in net loss on captive insurance operations due to the dissolution of the captive insurance company in September 2023; a decrease in loss contingency accrual for SBA-guaranteed loans of $754,000 in 2024 compared to an increase of $1.5 million in 2023; a decrease in the loss contingency accrual for restitution to mortgage borrowers of $283,000 in 2024 compared to an increase of $609,000 in 2023; and a decrease of $853,000 in loan expense for 2024 as compared to 2023 due primarily to lower mortgage loan originations related to the cessation of national mortgage banking operations in the quarter ended December 31, 2023.

The Company recognized income tax expense of $1.0 million for the year ended September 30, 2024 compared to tax expense of $10,000 for the prior year. The increase is primarily due to higher taxable income in the 2024 period. The effective tax rate for 2024 was 7.0%, which was an increase from the effective tax rate of 0.1% in 2023. The effective tax rate is well below the statutory tax rate primarily due to the recognition of investment tax credits related to solar projects in both the 2024 and 2023 periods.

Results of Operations for the Three Months Ended September 30, 2024 and 2023

The Company reported net income of $3.7 million, or $0.53 per diluted share, for the three months ended September 30, 2024, compared to a net loss of $747,000, or $0.11 per diluted share, for the three months ended September 30, 2023. The core banking segment reported net income of $4.1 million, or $0.60 per diluted share, for the three months ended September 30, 2024, compared to $2.3 million, or $0.33 per diluted share, for the three months ended September 30, 2023.

Net interest income decreased $459,000, or 3.0%, to $15.1 million for the three months ended September 30, 2024 as compared to the same period in 2023. The tax equivalent net interest margin was 2.72% for the three months ended September 30, 2024 as compared to 3.03% for the same period in 2023. The decrease in net interest income was due to a $4.5 million increase in interest expense, partially offset by a $4.1 million increase in interest income. A table of average balance sheets, including average asset yields and average liability costs, is included at the end of this release.

The Company recognized a provision for credit losses for loans of $1.8 million, a credit for unfunded lending commitments of $262,000, and a credit for credit losses for securities of $86,000 for the three months ended September 30, 2024, compared to a provision for loan losses of $815,000 only for the same period in 2023. The provision for credit losses for loans increased primarily due to loan growth and the effects of adopting the Current Expected Credit Loss (CECL) methodology during the year ended September 30, 2024. The Company recognized net charge-offs totaling $304,000 during the 2024 period, of which $120,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $753,000 during the 2023 period, of which $609,000 was related to unguaranteed portions of SBA loans.

Noninterest income decreased $2.6 million for the three months ended September 30, 2024 as compared to the same period in 2023. The decrease was due primarily to a $3.0 million decrease in mortgage banking income due to the cessation of national mortgage banking operations in the quarter ended December 31, 2023.

Noninterest expense decreased $9.0 million for the three months ended September 30, 2024 as compared to the same period in 2023. The decrease was due primarily to decreases in compensation and benefits expense, data processing expense, and other operating expenses of $4.5 million, $1.5 million and $3.5 million, respectively. The decrease in compensation and benefits expense was due primarily to a reduction in staffing related to the cessation of national mortgage banking operations in the quarter ended December 31, 2023. The decrease in data processing expense was due primarily to expenses recognized in the prior year period related to the implementation of the new core operating system in August 2023. The decrease in other operating expense was due primarily to a $978,000 decrease in the net loss on captive insurance operations due to the dissolution of the captive insurance company in September 2023; a decrease in loss contingency accrual for SBA-guaranteed loans of $14,000 in 2024 compared to an increase of $1.0 million in 2023; and a decrease of $270,000 in loan expense for 2024 as compared to 2023 due primarily to lower mortgage loan originations related to the cessation of the national mortgage banking operations in the quarter ended December 31, 2023.

The Company recognized income tax expense of $145,000 for the three months ended September 30, 2024 compared to income tax benefit of $737,000 for the same period in 2023. The increase was primarily due to higher taxable income in the 2024 period.

Comparison of Financial Condition at September 30, 2024 and September 30, 2023

Total assets increased $161.5 million, from $2.29 billion at September 30, 2023 to $2.45 billion at September 30, 2024. Net loans held for investment increased $193.6 million during the year ended September 30, 2024 due primarily to growth in residential real estate, residential construction, and commercial real estate loans. Loans held for sale decreased by $20.1 million from $45.9 million at September 30, 2023 to $25.7 million, primarily due to the winddown of the national mortgage banking operations. Residential mortgage loan servicing rights decreased $59.8 million during the year ended September 30, 2024, due to the sale of the entire residential mortgage loan servicing rights portfolio during the year.

Total liabilities increased $135.4 million due primarily to increases in total deposits of $199.1 million, which included an increase in brokered deposits of $70.8 million, partially offset by a decrease in FHLB borrowings of $61.5 million. As of September 30, 2024, deposits exceeding the FDIC insurance limit of $250,000 per insured account were 30.1% of total deposits and 13.7% of total deposits when excluding public funds insured by the Indiana Public Deposit Insurance Fund.

Common stockholders’ equity increased $26.1 million, from $151.0 million at September 30, 2023 to $177.1 million at September 30, 2024, due primarily to a $18.4 million decrease in accumulated other comprehensive loss and an increase in retained net income of $7.0 million. The decrease in accumulated other comprehensive loss was due primarily to decreasing long term market interest rates during the year ended September 30, 2024, which resulted in an increase in the fair value of securities available for sale. At September 30, 2024 and September 30, 2023, the Bank was considered “well-capitalized” under applicable regulatory capital guidelines.

First Savings Bank is an entrepreneurial community bank headquartered in Jeffersonville, Indiana, which is directly across the Ohio River from Louisville, Kentucky, and operates fifteen depository branches within Southern Indiana. The Bank also has two national lending programs, including single-tenant net lease commercial real estate and SBA lending, with offices located predominately in the Midwest. The Bank is a recognized leader, both in its local communities and nationally for its lending programs. The employees of First Savings Bank strive daily to achieve the organization’s vision, We Expect To Be The BEST community BANK, which fuels our success. The Company’s common shares trade on The NASDAQ Stock Market under the symbol “FSFG.”

This release may contain forward-looking statements within the meaning of the federal securities laws. These statements are not historical facts; rather, they are statements based on the Company’s current expectations regarding its business strategies and their intended results and its future performance. Forward-looking statements are preceded by terms such as “expects,” “believes,” “anticipates,” “intends” and similar expressions.

Forward-looking statements are not guarantees of future performance. Numerous risks and uncertainties could cause or contribute to the Company’s actual results, performance and achievements to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, changes in general economic conditions; changes in market interest rates; changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; and other factors disclosed periodically in the Company’s filings with the Securities and Exchange Commission.

Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this report or made elsewhere from time to time by the Company or on its behalf. Except as may be required by applicable law or regulation, the Company assumes no obligation to update any forward-looking statements.

Contact:
Tony A. Schoen, CPA
Chief Financial Officer
812-283-0724

FIRST SAVINGS FINANCIAL GROUP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)


	Three Months Ended						Years Ended
OPERATING DATA:	September 30,						September 30,
(In thousands, except share and per share data)		2024			2023			2024			2023

Total interest income	$	32,223		$	28,137		$	121,988		$	103,229
Total interest expense		17,146			12,601			63,926			41,655

Net interest income		15,077			15,536			58,062			61,574

Provision for credit losses – loans		1,808			815			3,492			2,612
Provision (credit) for unfunded lending commitments		(262	)		–			(421	)		–
Provision (credit) for credit losses – securities		(86	)		–			21			–

Total provision for credit losses		1,460			815			3,092			2,612

Net interest income after provision for credit losses		13,617			14,721			54,970			58,962

Total noninterest income		2,842			5,442			12,530			25,342
Total noninterest expense		12,642			21,647			52,890			76,122

Income (loss) before income taxes		3,817			(1,484	)		14,610			8,182
Income tax expense (benefit)		145			(737	)		1,018			10

Net income (loss)	$	3,672		$	(747	)	$	13,592		$	8,172

Net income (loss) per share, basic	$	0.54		$	(0.11	)	$	1.99		$	1.19
Weighted average shares outstanding, basic		6,833,376			6,817,365			6,830,466			6,848,311

Net income (loss) per share, diluted	$	0.53		$	(0.11	)	$	1.98		$	1.19
Weighted average shares outstanding, diluted		6,877,518			6,837,919			6,856,520			6,880,072


Performance ratios (annualized)
Return on average assets		0.61	%		(0.13	%)		0.58	%		0.37	%
Return on average equity		8.52	%		(1.82	%)		8.31	%		5.04	%
Return on average common stockholders’ equity		8.52	%		(1.82	%)		8.31	%		5.04	%
Net interest margin (tax equivalent basis)		2.72	%		3.03	%		2.68	%		3.10	%
Efficiency ratio		70.55	%		103.19	%		74.92	%		87.58	%


							QTD						FYTD
FINANCIAL CONDITION DATA:	September 30,			June 30,			Increase			September 30,			Increase
(In thousands, except per share data)		2024			2024		(Decrease)				2023		(Decrease)

Total assets	$	2,450,368		$	2,393,491		$	56,877		$	2,288,854		$	161,514
Cash and cash equivalents		52,142			42,423			9,719			30,845			21,297
Investment securities		249,719			238,785			10,934			229,039			20,680
Loans held for sale		25,716			125,859			(100,143	)		45,855			(20,139	)
Gross loans		1,985,146			1,846,769			138,377			1,787,143			198,003
Allowance for credit losses (1)		21,294			19,789			1,505			16,900			4,394
Interest earning assets		2,277,512			2,239,109			38,403			2,083,397			194,115
Goodwill		9,848			9,848			–			9,848			–
Core deposit intangibles		398			438			(40	)		561			(163	)
Loan servicing rights		2,754			2,860			(106	)		62,819			(60,065	)
Noninterest-bearing deposits		191,528			201,854			(10,326	)		242,237			(50,709	)
Interest-bearing deposits (customer)		1,180,196			1,111,143			69,053			1,001,238			178,958
Interest-bearing deposits (brokered)		509,157			399,151			110,006			438,319			70,838
Federal Home Loan Bank borrowings		301,640			425,000			(123,360	)		363,183			(61,543	)
Subordinated debt and other borrowings		48,603			48,563			40			48,444			159
Total liabilities		2,273,253			2,225,491			47,762			2,137,873			135,380
Accumulated other comprehensive loss		(11,195	)		(17,415	)		6,220			(29,587	)		18,392
Stockholders’ equity		177,115			168,000			9,115			150,981			26,134

Book value per share	$	25.72		$	24.41		$	1.31		$	21.99		$	3.73
Tangible book value per share – Non-GAAP (2)		24.23			22.91			1.32			20.47			3.76

Non-performing assets:
Nonaccrual loans – SBA guaranteed	$	5,036		$	5,049		$	(13	)	$	5,091		$	(55	)
Nonaccrual loans		11,906			11,705			201			8,857			3,049
Total nonaccrual loans	$	16,942		$	16,754		$	188		$	13,948		$	2,994
Accruing loans past due 90 days		–			–			–			–			–
Total non-performing loans		16,942			16,754			188			13,948			2,994
Foreclosed real estate		444			444			–			474			(30	)
Troubled debt restructurings classified as performing loans		–			–			–			1,266			(1,266	)
Total non-performing assets	$	17,386		$	17,198		$	188		$	15,688		$	1,698

Asset quality ratios:
Allowance for credit losses as a percent of total gross loans		1.07	%		1.07	%		0.00	%		0.95	%		0.13	%
Allowance for credit losses as a percent of nonperforming loans		125.69	%		118.12	%		7.57	%		121.16	%		4.52	%
Nonperforming loans as a percent of total gross loans		0.85	%		0.91	%		(0.05	%)		0.78	%		0.07	%
Nonperforming assets as a percent of total assets		0.71	%		0.72	%		(0.01	%)		0.69	%		0.02	%

(1) The Company adopted ASU 2016-13 Topic 326 on October 1, 2023. Allowance was determined using current expected credit loss methodology (CECL) for the quarters ended September, June, and March 2024 and December 2023. Allowance was determined using the previous incurred loss methodology as of September 30, 2023.
(2) See reconciliation of GAAP and non-GAAP financial measures for additional information relating to calculation of these figures.

RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED):
The following non-GAAP financial measures used by the Company provide information useful to investors in understanding the Company’s performance. The Company believes the financial measures presented below are important because of their widespread use by investors as a means to evaluate capital adequacy and earnings. The following table summarizes the non-GAAP financial measures derived from amounts reported in the evaluate capital adequacy and earnings. The following table summarizes the non-GAAP financial measures derived from amounts reported in the evaluate capital adequacy and earnings. The following table summarizes the non-GAAP financial measures derived from amounts reported in the Company’s consolidated financial statements and reconciles those non-GAAP financial measures with the comparable GAAP financial measures.

	Three Months Ended						Fiscal Year Ended
	September 30,						September 30,
		2024			2023			2024			2023
Net Income (In thousands)
Net income attributable to the Company (non-GAAP)	$	3,660		$	2,824		$	11,674		$	12,731
Plus: Reversal of contingent liability, net of tax effect		–			–			212			–
Plus: Record Visa Class C shares, net of tax effect		15			–			342			–
Plus: Decrease in loss contingency for SBA-guaranteed loans, net of tax effect		–			–			492			–
Plus: Adjustment to MSR valuation allowance, net of tax effect		–			–			583			–
Plus: Gain (loss) on premises and equipment, net of tax effect		(3	)		–			87			–
Plus: Adjustment to previous data processing contract termination accrual, net of tax effect		–			–			117			–
Plus: Distribution from equity investment, net of tax effect		–			–			85			–
Plus: Gain from repurchase of subordinated debt, net of tax effect		–			–			–			513
Less: Net loss on sales of available for sale securities and time deposits, net of tax effect		–			–			–			(429	)
Less: Data processing system conversion, net of tax effect		–			(979	)		–			(1,119	)
Less: MSR valuation allowance for intended sale, net of tax effect		–			(598	)		–			(598	)
Less: Loss contingency for SBA-guaranteed loans, net of tax effect		–			(779	)		–			(1,160	)
Less: Mortgage banking loss contingencies, net of tax effect		–			(296	)		–			(847	)
Less: Professional fees related to mortgage banking loss contingencies, net of tax effect		–			(919	)		–			(919	)
Net income attributable to the Company (GAAP)	$	3,672		$	(747	)	$	13,592		$	8,172

Net Income per Share, Diluted
Net income per share, diluted (non-GAAP)	$	0.53		$	0.41		$	1.70		$	1.85
Plus: Reversal of contingent liability, net of tax effect		–			–			0.03			–
Plus: Record Visa Class C shares, net of tax effect		–			–			0.05			–
Plus: Decrease in loss contingency for SBA-guaranteed loans, net of tax effect		–			–			0.07			–
Plus: Adjustment to MSR valuation allowance, net of tax effect		–			–			0.09			–
Plus: Gain (loss) on premises and equipment, net of tax effect		–			–			0.01			–
Plus: Adjustment to previous data processing contract termination accrual, net of tax effect		–			–			0.02			–
Plus: Distribution from equity investment, net of tax effect		–			–			0.01			–
Plus: Gain from repurchase of subordinated debt, net of tax effect		–			–			–			0.07
Less: Net loss on sales of available for sale securities and time deposits, net of tax effect		–			–			–			(0.06	)
Less: Data processing system conversion, net of tax effect		–			(0.14	)		–			(0.16	)
Less: MSR valuation allowance for intended sale, net of tax effect		–			(0.09	)		–			(0.09	)
Less: Loss contingency for SBA-guaranteed loans, net of tax effect		–			(0.11	)		–			(0.17	)
Less: Mortgage banking loss contingencies, net of tax effect		–			(0.05	)		–			(0.12	)
Less: Professional fees related to mortgage banking loss contingencies, net of tax effect		–			(0.13	)		–			(0.13	)
Net income per share, diluted (GAAP)	$	0.53		$	(0.11	)	$	1.98		$	1.19

Core Banking Net Income (In thousands)
Net income attributable to the Core Bank (non-GAAP)	$	4,081		$	5,046		$	15,449		$	18,338
Plus: Reversal of contingent liability, net of tax effect		–			–			212			–
Plus: Record Visa Class C shares, net of tax effect		15			–			342			–
Plus: Adjustment to MSR valuation allowance, net of tax effect		–			–			583			–
Plus: Gain (loss) on premises and equipment, net of tax effect		(3	)		–			87			–
Plus: Adjustment to previous data processing contract termination accrual, net of tax effect		–			–			117			–
Plus: Distribution from equity investment, net of tax effect		–			–			85			–
Plus: Gain from repurchase of subordinated debt, net of tax effect		–			–			–			513
Less: Net loss on sales of available for sale securities and time deposits, net of tax effect		–			–			–			(429	)
Less: Data processing system conversion, net of tax effect		–			(979	)		–			(1,119	)
Less: MSR valuation allowance for intended sale, net of tax effect		–			(598	)		–			(598	)
Less: Mortgage banking loss contingencies, net of tax effect		–			(296	)		–			(847	)
Less: Professional fees related to mortgage banking loss contingencies, net of tax effect		–			(919	)		–			(919	)
Net income (loss) attributable to the Core Bank (GAAP)	$	4,093		$	2,254		$	16,875		$	14,939

Core Bank Net Income per Share, Diluted
Core Bank net income per share, diluted (non-GAAP)	$	0.60		$	0.74		$	2.26		$	2.67
Plus: Reversal of contingent liability, net of tax effect		–			–			0.03			–
Plus: Record Visa Class C shares, net of tax effect		–			–			0.05			–
Plus: Adjustment to MSR valuation allowance, net of tax effect		–			–			0.09			–
Plus: Gain (loss) on premises and equipment, net of tax effect		–			–			0.01			–
Plus: Adjustment to previous data processing contract termination accrual, net of tax effect		–			–			0.02			–
Plus: Distribution from equity investment, net of tax effect		–			–			0.01			–
Plus: Gain from repurchase of subordinated debt, net of tax effect		–			–			–			0.07
Less: Net loss on sales of available for sale securities and time deposits, net of tax effect		–			–			–			(0.06	)
Less: Data processing system conversion, net of tax effect		–			(0.14	)		–			(0.16	)
Less: MSR valuation allowance for intended sale, net of tax effect		–			(0.09	)		–			(0.09	)
Less: Mortgage banking loss contingencies, net of tax effect		–			(0.05	)		–			(0.12	)
Less: Professional fees related to mortgage banking loss contingencies, net of tax effect		–			(0.13	)		–			(0.13	)
Core Bank net income per share, diluted (GAAP)	$	0.60		$	0.33		$	2.47		$	2.18

Efficiency Ratio (In thousands)
Net interest income (GAAP)	$	15,077		$	15,536		$	58,062		$	61,574

Noninterest income (GAAP)		2,842			5,442			12,530			25,342

Noninterest expense (GAAP)		12,646			21,647			52,890			76,122

Efficiency ratio (GAAP)		70.55	%		103.19	%		74.92	%		87.58	%

Noninterest income (GAAP)	$	2,842		$	5,442		$	12,530		$	25,342
Plus: Record Visa Class C shares		20			–			456			–
Plus: Adjustment to MSR valuation allowance		–			–			777			–
Plus: Gain (loss) on premises and equipment		(4	)		–			116			–
Plus: Distribution from equity investment		–			–			113			–
Plus: Gain from repurchase of subordinated debt		–			–			–			684
Less: Net loss on sales of available for sale securities and time deposits		–			–			–			(572	)
Less: MSR valuation allowance for intended sale		–			(797	)		–			(797	)
Noninterest income (Non-GAAP)		2,858			4,645			13,992			24,657

Noninterest expense (GAAP)	$	12,642		$	21,647		$	52,890		$	76,122
Plus: Reversal of contingent liability		–			–			283			–
Plus: Decrease in loss contingency for SBA-guaranteed loans		–			–			656			–
Plus: Adjustment to previous data processing contract termination accrual		–			–			156			–
Less: Data processing system conversion		–			(1,305	)		–			(1,492	)
Less: Loss contingency for SBA-guaranteed loans		–			(1,039	)		–			(1,547	)
Less: Mortgage banking loss contingencies		–			(395	)		–			(1,129	)
Less: Professional fees related to mortgage banking loss contingencies		–			(1,225	)		–			(1,225	)
Noninterest expense (Non-GAAP)		12,642			17,683			53,985			70,729

Efficiency ratio (excluding nonrecurring items) (non-GAAP)		70.49	%		87.62	%		74.92	%		82.02	%


Tangible Book Value Per Share	September 30,			June 30,			Increase			September 30,			Increase
(In thousands, except share and per share data)		2024			2024		(Decrease)				2023		(Decrease)

Stockholders’ equity, net of noncontrolling interests (GAAP)	$	177,115		$	168,000		$	9,115		$	150,981		$	26,134
Less: goodwill and core deposit intangibles		(10,246	)		(10,286	)		40			(10,409	)		163
Tangible equity (non-GAAP)	$	166,869		$	157,714		$	9,155		$	140,572			26,297

Outstanding common shares		6,887,106			6,883,656		$	3,450			6,867,121			19,985

Tangible book value per share (non-GAAP)	$	24.23		$	22.91		$	1.32		$	20.47		$	3.76

Book value per share (GAAP)	$	25.72		$	24.41		$	1.31		$	21.99		$	3.73


SUMMARIZED FINANCIAL INFORMATION (UNAUDITED):	As of
Summarized Consolidated Balance Sheets	September 30,			June 30,			March 31,			December 31,			September 30,
(In thousands, except per share data)		2024			2024			2023			2023			2023

Total cash and cash equivalents	$	52,142		$	42,423		$	62,969		$	33,366		$	30,845
Total investment securities		249,719			238,785			240,142			246,801			229,039
Total loans held for sale		25,716			125,859			19,108			22,866			45,855
Total loans, net of allowance for credit losses		1,963,852			1,826,980			1,882,458			1,841,953			1,770,243
Loan servicing rights		2,754			2,860			3,028			3,711			62,819
Total assets		2,450,368			2,393,491			2,364,983			2,308,092			2,288,854

Customer deposits	$	1,371,724		$	1,312,997		$	1,239,271		$	1,180,951		$	1,243,475
Brokered deposits		509,157			399,151			548,175			502,895			438,319
Total deposits		1,880,881			1,712,148			1,787,446			1,683,846			1,681,794
Federal Home Loan Bank borrowings		301,640			425,000			315,000			356,699			363,183

Common stock and additional paid-in capital	$	27,725		$	27,592		$	27,475		$	27,397		$	27,064
Retained earnings – substantially restricted		173,337			170,688			167,648			163,753			166,306
Accumulated other comprehensive income (loss)		(11,195	)		(17,415	)		(17,144	)		(13,606	)		(29,587	)
Unearned stock compensation		(901	)		(999	)		(1,096	)		(1,194	)		(1,015	)
Less treasury stock, at cost		(11,851	)		(11,866	)		(11,827	)		(11,827	)		(11,787	)
Total stockholders’ equity		177,115			168,000			165,056			164,523			150,981

Outstanding common shares		6,887,106			6,883,656			6,883,160			6,883,160			6,867,121


	Three Months Ended
Summarized Consolidated Statements of Income	September 30,			June 30,			March 31,			December 31,			September 30,
(In thousands, except per share data)		2024			2024			2023			2023			2023

Total interest income	$	32,223		$	31,094		$	30,016		$	28,655		$	28,137
Total interest expense		17,146			16,560			15,678			14,542			12,601
Net interest income		15,077			14,534			14,338			14,113			15,536
Provision for credit losses – loans		1,808			501			713			412			815
Provision (credit) for unfunded lending commitments		(262	)		158			(259	)		–			–
Provision (credit) for credit losses – securities		(86	)		84			23			–			–
Net interest income after provision for credit losses		13,617			13,791			13,861			13,701			14,721

Total noninterest income		2,842			3,196			3,710			2,782			5,442
Total noninterest expense		12,642			12,431			11,778			16,039			21,647
Income (loss) before income taxes		3,817			4,556			5,793			444			(1,484	)
Income tax expense (benefit)		145			483			866			(476	)		(737	)
Net income (loss)	$	3,672		$	4,073		$	4,927		$	920		$	(747	)


Net income (loss) per share, basic	$	0.54		$	0.60		$	0.72		$	0.13		$	(0.11	)
Weighted average shares outstanding, basic		6,833,376			6,832,452			6,832,130			6,823,948			6,817,365

Net income (loss) per share, diluted	$	0.53		$	0.60		$	0.72		$	0.13		$	(0.11	)
Weighted average shares outstanding, diluted		6,877,518			6,842,336			6,859,611			6,839,704			6,837,919


SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Noninterest Income Detail	September 30,			June 30,			March 31,			December 31,			September 30,
(In thousands)		2024			2024			2023			2023			2023

Service charges on deposit accounts	$	552		$	538		$	387		$	473		$	479
ATM and interchange fees		642			593			585			449			816
Net loss on sales of available for sale securities		–			–			–			–			(11	)
Net unrealized gain on equity securities		28			419			6			38			11
Net gain on sales of loans, Small Business Administration		647			581			951			834			538
Mortgage banking income		6			49			53			89			3,018
Increase in cash surrender value of life insurance		363			353			333			329			311
Commission income		294			220			220			222			182
Real estate lease income		122			154			115			115			116
Net gain on premises and equipment		(4	)		–			120			–			20
Other income		192			289			940			233			(38	)
Total noninterest income	$	2,842		$	3,196		$	3,710		$	2,782		$	5,442


	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
Consolidated Performance Ratios (Annualized)		2024			2024			2023			2023			2023

Return on average assets		0.61	%		0.69	%		0.92	%		0.16	%		(0.13	%)
Return on average equity		8.52	%		9.86	%		13.06	%		2.42	%		(1.82	%)
Return on average common stockholders’ equity		8.52	%		9.86	%		13.06	%		2.42	%		(1.82	%)
Net interest margin (tax equivalent basis)		2.72	%		2.67	%		2.66	%		2.69	%		3.03	%
Efficiency ratio		70.55	%		70.11	%		65.26	%		94.93	%		103.19	%


	As of or for the Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
Consolidated Asset Quality Ratios		2024			2024			2023			2023			2023

Nonperforming loans as a percentage of total loans		0.85	%		0.91	%		0.82	%		0.83	%		0.78	%
Nonperforming assets as a percentage of total assets		0.71	%		0.72	%		0.68	%		0.69	%		0.69	%
Allowance for credit losses as a percentage of total loans		1.07	%		1.07	%		1.02	%		1.01	%		0.95	%
Allowance for credit losses as a percentage of nonperforming loans		125.69	%		118.12	%		124.01	%		121.16	%		121.16	%
Net charge-offs to average outstanding loans		0.02	%		0.01	%		0.01	%		0.00	%		0.04	%


SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Segmented Statements of Income Information	September 30,			June 30,			March 31,			December 31,			September 30,
(In thousands)		2024			2024			2023			2023			2023

Core Banking Segment:
Net interest income	$	14,083		$	13,590		$	13,469		$	13,113		$	14,167
Provision (credit) for credit losses – loans		1,339			320			909			(49	)		1,266
Provision (credit) for unfunded lending commitments		78			64			(259	)		–			–
Provision (credit) for credit losses – securities		(86	)		84			23			–			–
Net interest income after provision for credit losses		12,752			13,122			12,796			13,162			12,901
Noninterest income		2,042			2,474			2,537			1,679			2,136
Noninterest expense		10,400			10,192			10,093			10,252			13,559
Income before income taxes		4,394			5,404			5,240			4,589			1,478
Income tax expense		301			689			729			541			3
Net income	$	4,093		$	4,715		$	4,511		$	4,048		$	1,475

SBA Lending Segment (Q2 Business Capital, LLC):
Net interest income	$	994		$	944		$	869		$	1,003		$	990
Provision (credit) for credit losses – loans		469			181			(196	)		461			(451	)
Provision (credit) for unfunded lending commitments		(340	)		94			–			–			–
Net interest income after provision for credit losses		865			669			1,065			542			1,441
Noninterest income		800			722			1,173			1,003			367
Noninterest expense		2,242			2,239			1,685			2,146			2,907
Income (loss) before income taxes		(577	)		(848	)		553			(601	)		(1,099	)
Income tax expense (benefit)		(156	)		(206	)		137			(131	)		(273	)
Net income (loss)	$	(421	)	$	(642	)	$	416		$	(470	)	$	(826	)

Mortgage Banking Segment: (3)
Net interest income (loss)	$	–		$	–		$	–		$	(3	)	$	379
Provision for credit losses – loans		–			–			–			–			–
Provision for unfunded lending commitments		–			–			–			–			–
Net interest income (loss) after provision for credit losses		–			–			–			(3	)		379
Noninterest income		–			–			–			100			2,939
Noninterest expense		–			–			–			3,641			5,181
Loss before income taxes		–			–			–			(3,544	)		(1,863	)
Income tax benefit		–			–			–			(886	)		(467	)
Net loss	$	–		$	–		$	–		$	(2,658	)	$	(1,396	)

(3) National mortgage banking operations were ceased in the quarter ended December 31, 2023 and subsequent immaterial mortgage lending activity is reported within the Core Banking segment.


SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Segmented Statements of Income Information	September 30,			June 30,			March 31,			December 31,			September 30,
(In thousands, except percentage data)		2024			2024			2023			2023			2023

Net Income (Loss) Per Share by Segment
Net income per share, basic – Core Banking	$	0.60		$	0.69		$	0.66		$	0.59		$	0.22
Net income (loss) per share, basic – SBA Lending (Q2 Business Capital, LLC)		(0.06	)		(0.09	)		0.06			(0.07	)		(0.12	)
Net income (loss) per share, basic – Mortgage Banking		0.00			0.00			0.00			(0.40	)		(0.21	)
Total net income (loss) per share, basic	$	0.54		$	0.60		$	0.72		$	0.12		$	(0.11	)

Net Income (Loss) Per Diluted Share by Segment
Net income per share, diluted – Core Banking	$	0.60		$	0.69		$	0.66		$	0.59		$	0.22
Net income (loss) per share, diluted – SBA Lending (Q2 Business Capital, LLC)		(0.06	)		(0.09	)		0.06			(0.07	)		(0.12	)
Net loss per share, diluted – Mortgage Banking		0.00			0.00			0.00			(0.40	)		(0.21	)
Total net income (loss) per share, diluted	$	0.54		$	0.60		$	0.72		$	0.12		$	(0.11	)

Return on Average Assets by Segment (annualized) (4)
Core Banking		0.71	%		0.83	%		0.80	%		0.73	%		0.28	%
SBA Lending		(1.71	%)		(2.91	%)		1.81	%		(2.11	%)		(3.81	%)

Efficiency Ratio by Segment (annualized) (4)
Core Banking		64.50	%		63.45	%		63.06	%		69.31	%		83.17	%
SBA Lending		124.97	%		134.39	%		82.52	%		106.98	%		214.22	%


	Three Months Ended
Noninterest Expense Detail by Segment	September 30,			June 30,			March 31,			December 31,			September 30,
(In thousands)		2024			2024			2023			2023			2023

Core Banking Segment:
Compensation	$	5,400		$	5,587		$	5,656		$	5,691		$	6,528
Occupancy		1,554			1,573			1,615			1,481			1,418
Advertising		399			253			205			189			404
Other		3,047			2,779			2,617			2,891			5,209
Total Noninterest Expense	$	10,400		$	10,192		$	10,093		$	10,252		$	13,559

SBA Lending Segment (Q2 Business Capital, LLC):
Compensation	$	1,854		$	1,893		$	1,933		$	1,826		$	1,533
Occupancy		55			51			58			91			68
Advertising		17			12			7			10			10
Other		316			283			(313	)		219			1,296
Total Noninterest Expense	$	2,242		$	2,239		$	1,685		$	2,146		$	2,907

Mortgage Banking Segment: (4)
Compensation	$	–		$	–		$	–		$	2,146		$	3,647
Occupancy		–			–			–			469			395
Advertising		–			–			–			119			129
Other		–			–			–			907			1,010
Total Noninterest Expense	$	–		$	–		$	–		$	3,641		$	5,181

(4) Ratios for Mortgage Banking Segment are not considered meaningful due to cessation of national mortgage banking operations in the quarter ended December 31, 2023.


SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):
	Three Months Ended
SBA Lending (Q2 Business Capital, LLC) Data	September 30,			June 30,			March 31,			December 31,			September 30,
(In thousands, except percentage data)		2024			2024			2023			2023			2023

Final funded loans guaranteed portion sold, SBA	$	10,880		$	7,515		$	15,144		$	14,098		$	8,431

Gross gain on sales of loans, SBA	$	1,029		$	811		$	1,443		$	1,303		$	809
Weighted average gross gain on sales of loans, SBA		9.46	%		10.79	%		9.53	%		9.24	%		9.60	%

Net gain on sales of loans, SBA (5)	$	647		$	581		$	951		$	834		$	538
Weighted average net gain on sales of loans, SBA		5.95	%		7.73	%		6.28	%		5.92	%		6.38	%

(5) Inclusive of gains on servicing assets and net of commissions, referral fees, SBA repair fees and discounts on unguaranteed portions held-for-investment.


SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Summarized Consolidated Average Balance Sheets	September 30,			June 30,			March 31,			December 31,			September 30,
(In thousands)		2024			2024			2023			2023			2023
Interest-earning assets
Average balances:
Interest-bearing deposits with banks	$	16,841		$	26,100		$	24,587		$	20,350		$	21,631
Loans		1,988,997			1,943,716			1,914,609			1,857,654			1,796,749
Investment securities – taxable		99,834			101,350			102,699			103,728			105,393
Investment securities – nontaxable		158,917			157,991			157,960			159,907			160,829
FRB and FHLB stock		24,986			24,986			24,986			24,968			24,939
Total interest-earning assets	$	2,289,575		$	2,254,143		$	2,224,841		$	2,166,607		$	2,109,541

Interest income (tax equivalent basis):
Interest-bearing deposits with banks	$	209		$	324		$	261		$	249		$	266
Loans		29,450			28,155			27,133			26,155			25,214
Investment securities – taxable		910			918			923			942			969
Investment securities – nontaxable		1,685			1,665			1,662			1,687			1,695
FRB and FHLB stock		471			519			499			74			428
Total interest income (tax equivalent basis)	$	32,725		$	31,581		$	30,478		$	29,107		$	28,572

Weighted average yield (tax equivalent basis, annualized):
Interest-bearing deposits with banks		4.96	%		4.97	%		4.25	%		4.89	%		4.92	%
Loans		5.92	%		5.79	%		5.67	%		5.63	%		5.61	%
Investment securities – taxable		3.65	%		3.62	%		3.59	%		3.63	%		3.68	%
Investment securities – nontaxable		4.24	%		4.22	%		4.21	%		4.22	%		4.22	%
FRB and FHLB stock		7.54	%		8.31	%		7.99	%		1.19	%		6.86	%
Total interest-earning assets		5.72	%		5.60	%		5.48	%		5.37	%		5.42	%

Interest-bearing liabilities
Interest-bearing deposits	$	1,563,258		$	1,572,871		$	1,549,012		$	1,389,384		$	1,385,994
Fed funds purchased		–			–			–			–			76
Federal Home Loan Bank borrowings		378,956			351,227			333,275			440,786			353,890
Subordinated debt and other borrowings		48,576			48,537			48,497			48,458			48,406
Total interest-bearing liabilities	$	1,990,790		$	1,972,635		$	1,930,784		$	1,878,628		$	1,788,366

Interest expense:
Interest-bearing deposits	$	12,825		$	12,740		$	12,546		$	9,989		$	9,457
Fed funds purchased		–			–			–			–			1
Federal Home Loan Bank borrowings		3,521			3,021			2,298			3,769			2,459
Subordinated debt and other borrowings		800			799			833			784			684
Total interest expense	$	17,146		$	16,560		$	15,677		$	14,542		$	12,601

Weighted average cost (annualized):
Interest-bearing deposits		3.28	%		3.24	%		3.24	%		2.88	%		2.73	%
Fed funds purchased		0.00	%		0.00	%		0.00	%		0.00	%		5.26	%
Federal Home Loan Bank borrowings		3.72	%		3.44	%		2.76	%		3.42	%		2.78	%
Subordinated debt and other borrowings		6.59	%		6.58	%		6.87	%		6.47	%		5.65	%
Total interest-bearing liabilities		3.45	%		3.36	%		3.25	%		3.10	%		2.82	%

Net interest income (taxable equivalent basis)	$	15,579		$	15,021		$	14,801		$	14,565		$	15,971
Less: taxable equivalent adjustment		(502	)		(487	)		(463	)		(452	)		(435	)
Net interest income	$	15,077		$	14,534		$	14,338		$	14,113		$	15,536

Interest rate spread (tax equivalent basis, annualized)		2.27	%		2.24	%		2.23	%		2.27	%		2.60	%

Net interest margin (tax equivalent basis, annualized)		2.72	%		2.67	%		2.66	%		2.69	%		3.03	%

The MIL Network –

January 25, 2025

MIL-Evening Report: At $300m, Jules Verne-inspired Nautilus is the most expensive Australian-made show. But Disney+ was right to dump it

Source: The Conversation (Au and NZ) – By Ari Mattes, Lecturer in Communications and Media, University of Notre Dame Australia

Stan

Investing in film and TV productions is a risky venture. Even the best directors and producers are just a flop away from ruining their careers.

So if a company owns the intellectual property to a popular material, or if that material enters the public domain, these companies – risk-averse entities, to be sure – will hastily retread their tyres for another lap of the track. This is partly why you’ll see well-worn stories from your childhood told over and over onscreen, even now.

But if the new version is too similar to the old, people will cynically roll their eyes. Enter Disney, which has perfected the strategy over the past few decades of retelling the same stories from different characters’ perspectives – a gambit that seems to strike people as inherently interesting.

Maleficent, for example, is Sleeping Beauty from the perspective of the evil queen. Although this kind of fairytale revisionism goes back to Angela Carter’s best-selling feminist fiction, Disney has, more than any other corporation, become an expert at co-opting social movements in pursuit of profits.

The latest revisionist work set to be distributed by Disney+ was Nautilus. The series filters the story of Jules Verne’s inimitable maritime adventure novel 20,000 Leagues Under the Sea through the lens of Captain Nemo, framed as a prequel to the original.

The fact that Disney+ dropped Nautilus before its release (it has been picked up by Prime in the UK and Ireland and Stan in Australia) immediately stoked my interest. This is particularly notable because, with a budget of A$300 million, it’s the most expensive series ever made in Australia (filmed mainly on the Gold Coast).

Alas, after restlessly sitting through all ten episodes, I understand Disney’s decision.

Diluting a powerful message

Where Verne’s novel (and to a lesser extent, the 1954 Disney live action film) effortlessly creates an authentic world, which is absolutely critical to the effectiveness of any fantasy work, Nautilus seems painfully contrived from its opening.

It’s the kind of show where all the British soldiers and East India Company men speak in toffee accents and spout horrifically ruthless commands between sips of tea.

The show is a $300 million wreck.
Stan

The Nautilus’ crew is made up of a miscellany of virtuous victims of the company (and thus of the British empire): a wealthy British woman being forced into an arranged marriage, an old Chinese worker, a Māori cook, a trader from Zanzibar and ex‑slave Indians.

The characters frequently pontificate about the value of freedom, the evils of slavery and the glory of the environment. In one particularly ludicrous scene early on, Nemo jumps onto a whale’s back to remove a harpoon.

In the novel, Nemo’s romantic alienation perfectly complements his maniacal drive, interspersed with Verne’s faux-scientific descriptions of the submarine, giant squid and other objects.

Similarly, here, Nemo is presented as being far from mercenary; hounded to the north seas by the British, he’s seeking treasure in order to bring the company down. But lead Shazad Latif’s delivery is monotonous and strained, as though even he doesn’t buy it.

British actor Shazad Latif’s performance as Captain Nemo is far from convincing.
Stan

The idea that this is some kind of “fresh” (read “politically correct”) re‑imagining of the world of the novel is strange in the first place, given the original story (although narrated by Professor Aronnax) is already closely anchored to Nemo’s point of view.

Verne clearly presents Nemo as a kind of eco-warrior responding to the brutalities of colonialism. If anything, the original message is diluted in this adaptation as it implies Nemo’s quest is mainly personal – that he simply wants vengeance for what the company did to his family – rather than political.

At the same time, I sense the creators are going for some kind of psychological realism by painfully spelling out that Nemo had bad things done to him by the British. But this didacticism causes the spirit of adventure to suffer, so we’re left with something both silly and not particularly exciting.

The British soldiers and company men speak in ridiculous accents.
Stan

A big fish isn’t always a good fish

The show’s production design and cinematography (some of the most important components in this kind of adventure epic) seem flat, too. The sets, though colourful, look decidedly artificial. The synthesis of CGI elements with filmed footage is far from smooth.

And the odd colour grade makes the characters’ skin look hyper-artificial. This was surely the intention, but why? It is distracting in every closeup.

Not to single out any particular department, every aspect of the production seems dialled in, including the score, which sounds like something hastily composed using AI software.

Of course, one could talk about the production’s benefits to the Australian industry, but this seems like a hapless argument if the work is no good. How many low-budget films could have been made with $300 million? 100? 150? Those would have also invested money in the industry, while developing local talent.

The impact of a big-budget production on local industries isn’t clear when the production in question isn’t very compelling.
Stan

Not camp enough, yet not careful enough

If it were camper, Nautilus could have acquired the cult value of a great cinematic fiasco such as Renny Harlin’s 1995 film Cutthroat Island. All the actors seem to be trying hard, and the writers clearly laboured away at the story.

Perhaps this is the problem. Like so many new commercial works, Nautilus tries so hard to please everyone it ends up pleasing no one. The wider the appeal, the greater the risk mitigation, apparently.

But given it actually tries to embed the story in a sense of history, its sins seem greater than mere televisual boredom for the viewer. The series presents a monolithic and simplistic image of the way colonialism and capitalism are intertwined.

At best, this is naïve – one could argue, “who cares, it’s just a silly fantasy series”. At worst, however, it is actively destructive of historical consciousness. And that’s not smooth sailing.

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

– ref. At $300m, Jules Verne-inspired Nautilus is the most expensive Australian-made show. But Disney+ was right to dump it – https://theconversation.com/at-300m-jules-verne-inspired-nautilus-is-the-most-expensive-australian-made-show-but-disney-was-right-to-dump-it-241583

MIL OSI Analysis – EveningReport.nz –

January 25, 2025

MIL-OSI USA: 2022 and 2023 National Medal of Arts and National Humanities Medal Citations

US Senate News:

Source: The White House
On Monday, October 21st, President Biden held an East Room ceremony at the White House to present the 2022 and 2023 National Medals of Arts and the 2022 and 2023 National Humanities Medals.
The National Medal of Arts is the highest award given to artists, arts patrons, and groups by the United States Government and honors exemplary individuals and organizations that have advanced the arts in America and offered inspiration to others through their distinguished achievement, support, or patronage. The National Humanities Medal honors individuals or groups whose work has deepened the nation’s understanding of the humanities and broadened our citizens’ engagement with history, literature, languages, philosophy, and other humanities subjects.
Below are the citations presented to the 2022 and 2023 medal recipients:
National Medal of Arts – Class of 2022
Ruth Asawa (Posthumously)
For groundbreaking modernism and championing art for everyone. From a family of Japanese immigrants separated in incarceration camps, Ruth Asawa emerged to become a renowned educator and artist, bringing her distinctive wire sculptures to the Nation’s museums, homes, and classrooms, and leaving a legacy as powerful and profound as her portfolio.
Randy A. Batista
For focusing the lens on human nature. Born in Tampa, Florida, to Italian and Cuban immigrants and raised on both sides of the Straits of Florida, Randy Batista is known as the people’s photographer. With the camera as his sixth sense of deep empathy, he captures people’s pain and challenges us to respect their inherent dignity.
Clyde Butcher
For focusing the lens on Mother Nature. From humble beginnings as a self-taught photographer, Clyde Butcher is considered America’s most acclaimed landscape photographer today. From the Rocky Mountains to the Everglades, and countless pristine places in between, his images inspire and challenge us to respect and defend our natural wonders.
Country Music Hall of Fame and Museum
For cataloging one of the Nation’s great homegrown art forms. As the world’s largest repository of country music history, in the country music capital of Nashville, Tennessee, the Country Music Hall of Fame and Museum preserves history, honors giants of the genre, and inspires future generations to write their own songs about the American story.
Melissa “Missy” Elliott
For shattering glass ceilings with timeless beats. From a child singing in the church choir to becoming a best-selling female rapper and pioneering hip-hop icon, Missy Elliott’s genre-defying music and rhymes have elevated an industry into a global powerhouse and inspired generations to push the sound and movement of America.
Leonardo “Flaco” Jiménez
For harnessing heritage to enrich American music. The son of a musical family in Texas, Flaco Jiménez mastered the accordion and Spanglish lyrics as a trailblazer of Conjunto. Blending Norteño, Tex Mex, and Tejano music with the Blues, Rock n’ Roll, and Pop Music, he sings the soul of America’s Southwest.
Eva Longoria
For recognizing the strength of our diversity and the full talents of our Nation. Actor, producer, director, and proud Mexican American, Eva Longoria has broken barriers on screen and uses her power to lift up Latino voices all across American life — challenging stereotypes and instilling Latino pride in our Nation.
Idina Menzel
For magical songs that lift our spirits and stir our souls. From Broadway stages to movie screens, Idina Menzel’s powerful voice has sold out shows, topped Billboard charts, and above all, empowered millions of Americans of all ages and backgrounds to be strong, use their voice, and lead with their hearts.
Herbert I. Ohta
For redefining ukulele music as a deeply moving American sound. The Hawaiian son of Japanese immigrants, Herb Ohta learned his first chords as a child and played through his service as a United States Marine. A musical innovator and mentor, he has bridged cultures and genres, spreading the peace and hope of aloha spirit.
Bruce Sagan
For seeking the truth as a true public citizen. A Chicago, Illinois, journalism legend and lifelong supporter of the performing arts, Bruce Sagan’s seven decades of leadership and stewardship in building, protecting, and uplifting local newspapers, voices, artists, and dancers have inspired his beloved city and enriched the tapestry of American life and culture.
Carrie Mae Weems
For capturing the resilience and dignity of Black America and our deeper humanity.
Over three decades at the forefront of American expression, Carrie Mae Weems has honed her craft as a renowned artist whose photography, film, video, and art confront hard truths about power and prejudice, while celebrating the indomitable human spirit.
National Medal of Arts – Class of 2023
Mark Bradford
For revealing the full history of the Nation through groundbreaking art. Inspired by the diverse cultures of Southern California, Mark Bradford’s paper-on-canvas storytelling reveals the interwoven hopes, sorrows, and joys of communities of color, with each layer challenging convention, shining light, and reminding us all of the full potential of America.
Ken Burns
For documenting the hope and history of our Nation. From his home in rural New Hampshire and deep from his imagination, Ken Burns´ pioneering documentaries of diverse people, places, and histories have shaped our understanding of the American experience, and defined him as one of the most respected filmmakers of our time.
Bruce Cohen
For championing the arts to express our highest ideals of freedom, justice, and equality.
An entertainment industry icon ahead of his time, Bruce Cohen has produced our biggest moments on screen and stage by lifting up people and stories that need to be seen and heard, making real the promise of America for all Americans.
Alex Katz
For conjuring an enduring portrait of America. Born in Brooklyn, New York, to Russian immigrants, Alex Katz is among the most prolific and distinctive artists in our history. With a ferocious work ethic and visionary style, he continues to condense the complexities of everyday life into iconic faces and landscapes that reveal the essence of who we are as Americans.
Jo Carole Lauder
For devoted support of the arts, culture, and civic causes in America. A renowned philanthropist leading an array of causes — from supporting the White House Historical Association to refurbishing and preserving United States embassies abroad to inspiring participation in Jewish life worldwide —Jo Carole Lauder channels her creative talents to beautify the spirit of our Nation.
Spike Lee
For revolutionizing American cinema and culture. One of the most thought-provoking filmmakers of our time, Spike Lee honors his Brooklyn, New York, roots by daring to capture the depth of the Black experience and lifting up Black culture on the world stage through vibrant films and courtside pride that shapes our Nation’s collective conscience.
Queen Latifah
For leading the Nation as a champion of women’s empowerment. A natural storyteller and one of the first ladies of hip-hop, Queen Latifah breaks the mold for women in entertainment — rapping about overcoming loss and abuse of power to exuding cool and confidence as a critically-acclaimed actor and activist, showing how infinite love is the only hope for unity.
Selena Quintanilla (Posthumously)
For cementing Tejano music into the heart of the Nation. The youngest of the Quintanilla music family, Selena brought Latin music to the masses as the Queen of Tejano music and one of the most celebrated entertainers in our history. Her young life was tragically cut short, but her voice and spirit endure for the ages.
Steven Spielberg
For filmmaking that entertains, educates, and inspires. Growing up moved by the power of films, Steven Spielberg is considered one of the greatest filmmakers ever, using his gift of storytelling to stretch our imaginations, confront the horrors of history, and inspire us to be the characters of our Nation and the world’s future — full of courage, honor, and dignity.
National Humanities Medal – Class of 2022
Wallis Annenberg
For transforming philanthropy in our Nation. The daughter of a groundbreaking media family in Los Angeles, California, Wallis Annenberg is a visionary giver and innovator who has donated to thousands of organizations in the arts, education, environment, medical research, social justice, and more — transforming countless lives by advancing, healing, and inspiring communities across America.
Appalshop
For amplifying the voices of Appalachia. Located in Kentucky’s Appalachian Mountains for 50 years, Appalshop is home to the world’s largest collection of creative work on Appalachia — a hub for new generations of artists, filmmakers, musicians, and playwrights to share their stories of pride and promise of their American roots.
Joy Harjo
For shining the light on the sacred traditions of Native American storytelling. A member of the Muscogee Nation in Oklahoma, and the first Native American Poet Laureate of the United States, Joy Harjo’s distinguished poetry and award-winning music about art, justice, and healing honors ancestral generations and empowers those that follow.
Robin Harris
For educating our youngest students to be dreamers and doers of our Nation. As an elementary school teacher and trailblazing principal in Massachusetts, Robin Harris is redefining K-12 education to empower students, embrace parents, and extend learning and leadership beyond the walls of the classroom and into the free spirit of the mind.
Juan Felipe Herrera
For poeticism that captures America’s imagination. The son of California farm workers, Juan Felipe Herrera takes readers across countries and cultures, genres, and disciplines as a towering figure in Chicano poetry and the first Latino Poet Laureate of the United States, using the power of his pen to give life to our identities and common bonds.
Robert Martin
For dedicating his career to the academic achievement of Native American students. A member of the Cherokee Nation of Oklahoma, Dr. Robert Martin has led Tribal colleges and launched Indian Studies programs at institutions of higher learning across the country to strengthen Tribal self-determination and empower future Native American leaders.
Jon Meacham
For drawing wisdom from history to shape the future of America. A proud son of Tennessee and celebrated historian and biographer, Jon Meacham chronicles the journey of America with an unmatched mix of historical context, parables from Scripture, and unyielding faith in the goodness of the American people that makes us a truly great Nation.
Ruth J. Simmons
For pioneering equity in our Nation’s higher education system. One of twelve children born into a sharecropper family in Texas, Dr. Ruth Simmons blazed trails in academia as a distinguished professor of literature and the first African American woman president of an Ivy League institution—showing how an education makes one free and fearless.
Pauline Yu
For a lifetime of advocacy for the humanities in America. The daughter of Chinese immigrants raised in Rochester, New York, Dr. Pauline Yu is a respected scholar of Chinese poetry and renowned advocate for the humanities, who has deepened cross-cultural understanding through language and literature, and advanced core democratic values of truth, reason, and free inquiry.
National Humanities Medal – Class of 2023
Anthony Bourdain (Posthumously)
For making food a gateway to understanding the world and one another. A beloved chef, writer, and social commentator, Anthony Bourdain is remembered across the globe for his empathy, openness, and humor—approaching every table with equal reverence for the people it convened, and embodying the best of American curiosity and exploration.
LeVar Burton
For imagining a more optimistic and enlightened America for everyone. A celebrated actor, advocate, and storyteller, LeVar Burton confronted the trauma of history, took us to the depths of space, and transformed literacy in America by sharing the gift of reading with generations of children, unlocking our imaginations and spirit of discovery.
Roz Chast
For healing a Nation with humor and observation. One of the most prolific cartoonists of our time, Roz Chast has wielded pen and watercolor for over 45 years to make ordinary things extraordinary, blaze a trail for women in her field, and define an era of American wit and wisdom.
Nicolás Kanellos
For amplifying Hispanic voices in America’s past, present, and future. Raised between Puerto Rico and Jersey City, New Jersey, Nicolás Kanellos channeled a childhood love for Spanish literature into a distinguished literary career in Houston, Texas, leading the Nation’s oldest and largest Hispanic publishing house and elevating the diversity of American literature.
Robin Wall Kimmerer
For sharing Indigenous wisdom in America’s natural sciences. A citizen of Potawatomi Nation and a renowned scientist and writer, Robin Wall Kimmerer has transformed our understanding of environmental science by incorporating Indigenous knowledge into college curriculum and critical efforts to heal a climate in crisis, offering new hope for generations to come.
Mellon Foundation
For charting an unparalleled course for the arts and humanities in America. For over 50 years, the Mellon Foundation has been the trusted benefactor for thousands of people and organizations harnessing the power of ideas and imagination to advance social justice and freedom, and defend the arts as essential to American democracy.
Dawn Porter
For documenting the good, the bad, and the truth of our Nation. Beginning her career as a lawyer, Dawn Porter pursued filmmaking to showcase the vibrancy of Black culture and history. By chronicling the lives of America’s everyday heroes and legendary leaders, her award-winning documentaries remind us that the work of perfecting our Union is essential and never-ending.
Aaron Sorkin
For trademark storytelling in America. Drawn to theatre at a young age, Aaron Sorkin found his calling as a groundbreaking writer and creator, scripting and show-running iconic films and television shows that inspired an entire generation to believe in the possibilities of our Nation and walk, talk, and answer “what’s next?”
Darren Walker
For showing us hope is the oxygen of democracy. With boundless passion and enduring purpose, Darren Walker harnesses empathy from his modest upbringing in the South to advance the most ambitious philanthropic goals of our Nation, as a visionary leader whose commitment to improving the human condition has fortified justice and good governance in America and around the world.
Rosita Worl
For embodying the resilient community spirit of Native American culture. As a child in Alaska, Dr. Rosita Worl survived the brutalities of Federal Indian boarding school that took her from her family and Nation. As an anthropologist and advocate, she has since spent her life pushing to right wrongs and build a new era of understanding and healing.
Additional information
National Endowment for the Arts
The National Endowment for the Arts (NEA), established by Congress in 1965, is an independent Federal agency that is the largest public funder of the arts and arts education in communities nationwide and a catalyst of public and private support for the arts. The NEA’s mission is based on an abiding conviction that the arts play an integral role in our national life and public discourse. The arts strengthen and promote the well-being and resilience of people and communities. By advancing equitable opportunities for arts participation and practice, the NEA fosters and sustains an environment in which the arts belong to and benefit everyone in the United States.
National Endowment for the Humanities
Created in 1965 as an independent Federal agency, the National Endowment for the Humanities (NEH) supports learning in history, literature, philosophy, and other humanities subjects by funding selected, peer-reviewed proposals from around the Nation that support research in the humanities, foster education, nurture humanities infrastructure, and expand the reach of the humanities. Since 1965, NEH has awarded over six billion dollars to cultural institutions, individual scholars, and communities throughout the United States. The Endowment serves and strengthens the country by bringing high-quality historical and cultural experiences to large and diverse audiences in all 50 States, the District of Columbia, and five territories; providing opportunities for lifelong learning, expanding access to cultural and educational resources, and preserving the human stories that connect all Americans.
The President’s Committee on the Arts and the Humanities
The President’s Committee on the Arts and the Humanities (PCAH) was founded in 1982 by Executive Order to advise the President on cultural policy. The First Lady has historically served as Honorary Chair of the Committee, which is composed of members appointed by the President. Private committee members include prominent artists, scholars, and philanthropists who have demonstrated a serious commitment to the arts and humanities. Public members represent the heads of key Federal agencies with a role in culture, including the Chairs of the National Endowments for the Arts and the Humanities, the Librarian of Congress, the Secretary of the Smithsonian, and the Director of the Institute of Museum and Library Services among others. The PCAH facilitates public-private partnerships, promotes interagency cooperation, and proposes programs that enhance arts, humanities, museums, and library services across the country. Over the past 40 years, PCAH has catalyzed Federal programs and played a vital role in the advancement of arts and humanities education, cultural diplomacy, and the creative economy.

MIL OSI USA News –

January 25, 2025

MIL-OSI China: Xi voices support for Global South at final day of BRICS Kazan summit

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

Chinese President Xi Jinping delivers an important speech titled “Combining the Great Strength of the Global South To Build Together a Community with a Shared Future for Mankind” at the “BRICS Plus” leaders’ dialogue in Kazan, Russia, Oct. 24, 2024. [Photo/Xinhua]

KAZAN, Russia, Oct. 24 — As BRICS leaders gathered with non-member countries seeking closer ties with the group on Thursday, Chinese President Xi Jinping voiced strong support for Global South countries.

Participating in the “BRICS Plus” leaders’ dialogue during the final day of the Kazan summit, Xi said “the collective rise of the Global South is a distinctive feature of the great transformation across the world.”

“We support more Global South countries in joining the cause of BRICS as full members, partner countries or in the ‘BRICS Plus’ format so that we can combine the great strength of the Global South to build together a community with a shared future for mankind,” Xi said.

No matter how the international landscape evolves, said the Chinese president, “we in China will always keep the Global South in our heart, and maintain our roots in the Global South.”

Leaders from Asia, Africa, the Middle East, and Latin America, as well as representatives of several international organizations, attended the meeting, including UN Secretary-General Antonio Guterres.

The 16th BRICS Summit’s agenda covered a range of pressing issues, including world peace and stability, reform of global governance, sustainable development, poverty eradication, climate change, and the fight against terrorism and transnational crimes.

Russian President Vladimir Putin, chairing the summit, said it is crucial for BRICS members to discuss all these issues with countries from the Global South.

“All our countries share similar aspirations, values and a vision of a new democratic world order that reflects cultural and civilizational diversity,” Putin said.

The Kazan summit marked the first in-person gathering of leaders of BRICS after the group’s membership expansion last year. On Wednesday, the BRICS leaders adopted the Kazan summit declaration, which summarized the summit’s outcome.

According to the declaration, BRICS countries agreed to jointly build the New Development Bank into a new type of multilateral development bank, support its further expansion of membership, and expedite the review of membership applications from BRICS countries in accordance with its general strategy and related policies.

The BRICS countries are also encouraged to strengthen financial cooperation and promote local currency settlement, it said.

Leaders of non-member countries expressed their expectation for BRICS’ future development. The BRICS mechanism has great potential for development, as well as experience in building the future based on respect and partnership, Kazakh President Kassym-Jomart Tokayev said at Thursday’s meeting.

Lao President Thongloun Sisoulith also said BRICS currently plays a key role in changing the world order.

The world economy is set to rely even more heavily on the BRICS group of emerging economies to drive expansion, according to latest forecasts of the International Monetary Fund (IMF). Compared with its last round of predictions six months ago, the IMF now expects a bigger share of growth over the next five years to come from powerhouse BRICS economies.

“The BRICS has played an extremely important role in advancing multilateralism,” said B.R. DEEPAK, professor of Center for Chinese and South East Asian Studies of Jawaharlal Nehru University in India.

The inclusion of more countries in BRICS cooperation shows “the kind of appeal it has, especially in the Global South, who wants to make best of what BRICS has created,” he said.

MIL OSI China News –

January 25, 2025

MIL-OSI China: Chinese, foreign photographers capture timeless charm of Beijing

Source: China State Council Information Office 3

This photo taken on Oct. 19, 2024 with a mobile phone shows Vesa Niskanen (C), a Finnish part-time photographer, receiving a certificate for his work “Jingshan Park” being selected for display at the “Hello, Beijing” photography exhibition, in Beijing, capital of China. (Xinhua/Lyu Qiuping)

Standing in front of a giant photograph, George Doupas introduced his work “Happy Graduation” to a visitor. In the image, a group of university graduates in gowns throw their trencher caps into the sky, with the Temple of Heaven, one of Beijing’s architectural landmarks, in the background.

“I just love the hutongs (alleys), siheyuan (quadrangle courtyards) and ancient architecture in Beijing. Traditional and alive,” said Doupas, a Greek freelance photographer who lives in Beijing.

His works — two photos and one video clip — are part of a photography exhibition called “Hello, Beijing” held from Oct. 19 to 28 at the China Millennium Monument.

After attracting entries from Chinese and foreign professional photographers and enthusiasts both domestically and internationally, a panel of experts selected over 200 pieces for display. The works of six foreign photographers from Britain, France, Greece and other countries are among the exhibits.

The event is hosted by the Beijing Municipal Bureau of Culture and Tourism.

Beijing, with a history of over 3,000 years, has served as the Chinese capital for 870 years, making it a treasure trove of cultural heritage.

In recent years, the city has strengthened its core functions as the national political center, cultural center, international exchange center and scientific innovation center, striving to build itself into a world-class harmonious and livable metropolis.

The photo exhibition consists of four sections highlighting the beauty of Beijing’s nature, history, humanity and innovation. It seeks to show the city’s progress and cultural heritage, the vibrancy of its daily life and the exchange of ideas between civilizations.

Doupas first visited Beijing in 2005 as a backpacker and settled here in 2009 after marrying a Chinese woman.

He said that one part of Beijing is full of historical sites like a living museum, while the other part is a new modern city, with some amazing architectural buildings, bridges, libraries and much more.

“I often feel that Beijing is a perfect example of how the old and new nicely blend together,” he said.

Liu Jingmin agrees with Doupas. At the exhibition, she is showing a photo of a pair of birds engaged in courtship on a lake at the Summer Palace. Originally an amateur wildlife photographer, she has also become a fan of capturing Beijing’s city views.

She said she often climbs the stairs onto the roofs of high-rise buildings to take panoramic photos near the city’s Central Axis.

“The contrast between the new modern buildings and ancient architecture, like the Temple of Heaven, is especially interesting and favored by photographers,” said Liu, 52.

At a session in India in late July, the United Nations Educational, Scientific and Cultural Organization added the 700-year-old Beijing Central Axis, dubbed the “spine of the city’s culture,” to the World Heritage List.

The Beijing Central Axis, the best-preserved example of traditional central axis architecture in China, extends 7.8 km from Yongding Gate in the south to the Bell and Drum Towers in the north. Fifteen heritage components, including the Tian’anmen Square Complex, the Forbidden City and the Temple of Heaven, are located on or alongside the axis.

Vesa Niskanen, a Finnish part-time photographer, has his work “Jingshan Park” included in the exhibition. Jingshan Park is also along the Central Axis.

He said that in addition to the ancient architecture, he likes to take photos in Beijing’s busy streets.

“In this populated city, you can see people singing and dancing, and you can also see vendors selling stuff like crickets. The streets are so vibrant,” said Niskanen, the representative of a Finnish cultural association in Beijing.

Wang Yuanjing, who has retired from her civil service career, enjoys photography as a hobby. One of her displayed works is about the winter view of the Summer Palace, while the other captures the five-ring fireworks at the opening ceremony of the Beijing Winter Olympics.

“Over the years, Beijing has developed rapidly and the photos show the different sides of the city, ranging from an ancient cultural capital to a window for international exchanges,” said Wang, who also took her family to visit the exhibition.

Su Heling, a 63-year-old visitor from the Haidian District, was amazed by the images on display.

The retiree said he is also a photography fan, snapping pictures with his camera everywhere he goes.

“Through the exhibition, I hope I can learn more about photography skills, as well as the beauty of Beijing,” Su said.

In addition to the “Happy Graduation,” Doupas is also showing another piece, which was captured in a library. The library is converted from an outdated cinema, and the big screen can still be seen in the middle.

Doupas said the photo embodies the vitality of Beijing, as renovation has given life to many old buildings in the city, such as Shougang — the site of a former steel plant that has been transformed into a cultural venue for sightseeing and sports activities.

“As I walk in the streets of Beijing, there is always something interesting before my eyes. There is always something I want to capture with my camera,” Doupas said.

MIL OSI China News –

January 25, 2025

Category: India

India’s ability to scale up paired with Germany’s precision engineering to benefit the world: Shri Piyush Goyal India-Germany synergy in AI adoption, semiconductors and green technology to drive global growth: Shri Piyush Goyal

Mid-term progress of Ministry of Information and Broadcasting under Special Campaign 4.0 for institutionalizing Swachhata and reducing pendency in governmentCommitment to Good Governance: Ministry enhances workplace efficiency and environmental responsibility through Special Campaign 4.0

Ministry of Fisheries, Animal Husbandry and Dairying takes Significant Step to Boost Seaweed Industry with New Import GuidelinesNotifies ‘Guidelines for Import of Live Seaweeds into India’

Union Health Minister, Shri J P Nadda Presides over 53rd Foundation Day Celebrations and Convocation of University College of Medical SciencesHealthcare professionals make crucial contributions to society and approach their work with compassion, integrity, and dedication: Shri JP Nadda

DPIIT forges alliance with HCLSoftware to herald India’s startup revolutionUnder Startup India initiative, DPIIT signed over 80 MoUs with industry stakeholders till date

NHRC takes suo motu cognizance of the reported death of a girl by suicide in a private school premises in Guntur District, Andhra PradeshExpresses concern over the incident in the lawful custody of the school authorities

What is place name repatriation?

Why does place naming matter?

What comes next?

What is place name repatriation?

Why does place naming matter?

What comes next?

Meetings on the margins

Lacking a coherent agenda

IMF Communications Department

MEDIA RELATIONS

Diluting a powerful message

A big fish isn’t always a good fish

Not camp enough, yet not careful enough

India’s ability to scale up paired with Germany’s precision engineering to benefit the world: Shri Piyush Goyal

India-Germany synergy in AI adoption, semiconductors and green technology to drive global growth: Shri Piyush Goyal

Mid-term progress of Ministry of Information and Broadcasting under Special Campaign 4.0 for institutionalizing Swachhata and reducing pendency in government

Commitment to Good Governance: Ministry enhances workplace efficiency and environmental responsibility through Special Campaign 4.0

Ministry of Fisheries, Animal Husbandry and Dairying takes Significant Step to Boost Seaweed Industry with New Import Guidelines

Notifies ‘Guidelines for Import of Live Seaweeds into India’

Union Health Minister, Shri J P Nadda Presides over 53rd Foundation Day Celebrations and Convocation of University College of Medical Sciences

Healthcare professionals make crucial contributions to society and approach their work with compassion, integrity, and dedication: Shri JP Nadda

DPIIT forges alliance with HCLSoftware to herald India’s startup revolution

Under Startup India initiative, DPIIT signed over 80 MoUs with industry stakeholders till date

NHRC takes suo motu cognizance of the reported death of a girl by suicide in a private school premises in Guntur District, Andhra Pradesh

Expresses concern over the incident in the lawful custody of the school authorities