NewzIntel.com

Category: Intelligence Agencies

  • MIL-OSI Security: Pharmacy Owner Sentenced to 10 Years in Prison in $41 Million Health Insurance Fraud

    Source: Office of United States Attorneys

    A Dallas pharmacy owner who routinely billed insurance companies for headache sprays, pain creams, and scar creams never dispersed to patients was sentenced Tuesday afternoon to 10 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

    Ivor Jallah, 37, was indicted in November 2020 and pleaded guilty in June 2024 to conspiracy to commit healthcare fraud. He was sentenced Monday by U.S. District Judge Sam A. Lindsay to 120 months in federal prison and ordered to pay $41,494,313.97 in restitution.  Mr. Ivor’s coconspirator, Shannon Turley, 46, pleaded guilty in November 2023 to conspiracy to commit healthcare fraud and is set to be sentenced in November.

    “By billing for prescription medication patients never needed nor received, these defendants brazenly lined their pockets at the expense of each and every client who paid into health insurance,” said U.S. Attorney Leigha Simonton. “Healthcare is already a significant expense for many Americans. We cannot and will not allow pharmacy operators to abuse the system in this way.”

    “Healthcare fraud schemes are more complex, more resource-consuming, and more costly to the American taxpayer than ever. For this defendant, as one avenue to personal enrichment ran its course, he simply began operating a new pharmacy or engaging in a new method to circumvent existing system safeguards,” explained Dallas FBI Acting Special Agent in Charge P. J. O’Brien. “From fraudulent credentials to fabricated invoices, the conspiracy was designed to thwart detection. The FBI will continue to work with our partners from the Northern District of Texas, Texas Department of Insurance, and others to bring justice to criminals who attempt to undermine our healthcare system.”

    According to plea papers, Mr. Jallah and Ms. Turley – who together operated at least nine Texas pharmacies, including Preferred RX, EZ Pharmacy, Avenue H Pharmacy, and Wallis Pharmacy – paid individuals they referred to as “marketers” for insured patients’ personally identifiable information. Some patients were aware of the scheme and required the marketers pay a fee for their information; others were oblivious to the fraud.

    Mr. Jallah and Ms. Turley caused employees to input the patient information onto pre-populated prescription pads. In some cases, they paid physicians to fraudulently stamp prescription forms when they had not seen patients, while in other cases, they used physicians’ stamps without their knowledge.

    Initially, the pharmacies shipped out a fraction of the medications they billed to insurance. At some point, however, Mr. Jallah decided to stop shipping out any medication they billed to insurance.

    When insurance companies conducted audits to determine whether the prescription claims were legitimate, Mr. Jallah and Ms. Turley fabricated drug purchase invoices to support the claims they submitted to insurance.

    Mr. Jallah also directed pharmacy employees to create faux prescription delivery logs and directed the so-called “marketers” to ask patients to sign the logs regardless of whether they received prescriptions. In cases where the marketers could not obtain patient signatures, Mr. Jallah directed pharmacy employees to forge them.

    Over the course of the scheme, Mr. Jallah and Ms. Turley submitted at least $46 million in bogus claims to insurers, $41 million of which were reimbursed.

    Eight defendants have previously pled guilty to charges associated with the pharmacy fraud and been sentenced to a combined 290 months in prison.  Two other defendants await sentencing. 

    The Federal Bureau of Investigation’s Dallas Field Office and the Texas Department of Insurance conducted the investigation. Assistant U.S. Attorneys Marty Basu, Joshua Detzky, and Lindsey Pryor prosecuted the case with the assistance of Assistant U.S. Attorneys Katherine Miller and Lisa Dunn. 

    MIL Security OSI –

  • MIL-OSI Security: Two Sampson County Men Indicted Following October 2023 Murder of Five

    Source: Office of United States Attorneys

    RALEIGH, N.C. – United States Attorney Michael F. Easley, Jr., is announcing federal charges against two men arising from the murders of five people in a Sampson County house in October 2023. The indictment alleges that the two are responsible for the murders.

    In a superseding indictment returned on August 27, 2024, a federal grand jury charged Robert Andrew Daquan Williams, aka “Double Tap, Drew and TTG,” age 31, and Derek George, aka “Pete,” age 35, with drug distribution and robbery charges. The superseding indictment also alleges possession of a firearm to further the drug and robbery charges and that the firearm was discharged resulting in the murder of five victims.

    Williams and George are each charged with one count of conspiracy and possession with intent to distribute cocaine and cocaine base (crack), one count of conspiracy to commit a Hobbs Act Robbery, one count of Hobbs Act robbery, and one count of discharging a firearm in furtherance of a drug trafficking crime. Williams also faces one count of possession of a firearm by a felon. A third individual named in the indictment is charged with illegal gun possession but is not currently facing charges related to the murders.

    If convicted, Williams and George face punishment up to and including the death penalty. Williams has been in custody since November 9, 2023. George was arrested following the federal indictment and remains in custody.

    “The charges brought in this case demonstrate the partnership between local, state and federal law enforcement to investigate and prosecute individuals believed to be contributing to violence in our communities,” said U.S. Attorney Michael F. Easley, Jr. “In this case, a combination of old-fashioned police work and community tips led to the identification and ultimate arrest of those that are alleged to have caused this act of violence. We will continue to work together to ensure the safety of our communities and to ensure justice for those that perpetrate violent criminal activity.”

    “Five people were taken from their families by this crime which impacted the entire community. We hope these federal charges can bring some sense of peace and justice for everyone affected,” said Robert M. DeWitt, the Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina.

    “Too many lives were lost in another case of senseless violence,” said Bureau of Alcohol, Firearms Tobacco and Explosives (ATF) Special Agent in Charge Bennie Mims. “This incident has had a major impact on the community, and it is important that ATF and our partners apply every resource available to identify, apprehend and bring the individuals who are alleged to be responsible for this terrible crime to justice.”

    “As the sheriff of Sampson County, it is my responsibility to use every resource available to help keep the residents of Sampson County safe,” said Sampson County Sheriff Jimmy Thornton. “I greatly appreciate all the people and agencies that have assisted in this investigation.”

    The Sampson County Sheriff’s Office, the Clinton Police Department, the FBI, the ATF, the U.S. Marshal’s Service, and the N.C. State Bureau of Investigation are investigating the case and Assistant U.S. Attorneys Tyler Lemons  and Casey Peaden are prosecuting the case. This is an ongoing investigation. If any person has information related to these crimes, please contact the Sampson County Sheriff’s Office at 910-592-4141 or the FBI.

    This investigation was an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

    Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for 7:24-CR-00013-D-BM.

    An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.

    ###

    MIL Security OSI –

  • MIL-OSI Security: Texas Couple Sentenced to Prison for Assaulting Law Enforcement and Other Charges During Jan. 6 Capitol Breach

    Source: Office of United States Attorneys

                WASHINGTON— A Texas couple was sentenced to prison after they were previously convicted of assaulting law enforcement and other charges during the Jan. 6, 2021, breach of the U.S. Capitol. Their actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.

                Mark Middleton, 55, and Jalise Middleton, 54, both of Forestburg, Texas, were sentenced to 30 and 20 months in prison, respectively, by U.S. District Judge Randolph D. Moss. Mark Middleton was additionally sentenced to 36 months’ supervised release, and a $2,000 fine. Jalise Middleton was additionally sentenced to 30 months’ supervised release, and a $2,000 fine.

                A federal jury previously convicted the Middletons of two counts of assaulting, resisting, or impeding certain officers, as well as civil disorder and obstruction of an official proceeding.  In addition to the felonies, the Middletons were convicted of misdemeanor offenses of entering and remaining in a restricted building or grounds, disorderly and disruptive conduct in a restricted building or grounds, engaging in physical violence in a restricted building or grounds, disorderly conduct in the Capitol grounds or building, and act of physical violence in the Capitol grounds or building.

                Following the Supreme Court’s decision in Fischer v. United States, the government voluntarily moved pre-sentencing to dismiss the Middleton’s conviction on obstruction of an official proceeding.

                According to evidence presented during the trial, on Jan. 6, 2021, Metropolitan Police Department (MPD) officers responded to the West Front of the U.S. Capitol building to assist U.S. Capitol Police officers with protecting the Capitol building and grounds from a group of amassed rioters. At about 2:09 p.m., MPD officers struggled against rioters who had refused repeated orders to step back from the police line and bike rack barricades.

                According to trial evidence and police body-worn camera footage, as the officers struggled with the group of rioters, a male individual, later identified as Mark Middleton, pushed against the barricades and the police line with his body. Officers are heard on body-worn camera footage repeatedly ordering Mark Middleton and others to “Get back!” In response, Mark Middleton is heard yelling “f— you!” as he continued to push against the police barricades. Evidence showed that Mark Middleton resisted MPD officers, grabbed onto an MPD officer’s left hand or wrist, and pulled the officer forward towards the crowd.

                At the same time, a woman, later identified as Jalise Middleton, is seen on body-worn camera footage repeatedly grabbing and striking the same officer over the barricade with her hand. Another officer then approached to assist, and Jalise Middleton struck that officer as well. Video footage shows that the couple continued to grapple with and strike at the officers and attempted to pull an officer into the crowd as various flags were jabbed toward the officers’ faces.

                MPD officers later deployed a chemical spray, forcing the Middletons to retreat from the barricaded line. Both defendants later posted social media messages touting their key role in helping to breach the barricades by fighting officers and that they had only stopped due to pepper spray.

                Mark and Jalise Middleton were arrested on April 21, 2021, in Forestburg, Texas.

                This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the Eastern District of Texas.

                This case is being investigated by the FBI’s Dallas and Washington Field Offices. Valuable assistance was provided by the United States Capitol Police and the Metropolitan Police Department.

                In the 45 months since Jan. 6, 2021, more than 1,532 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 571 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing.

                Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

    MIL Security OSI –

  • MIL-OSI Security: Alabama Man Sentenced to 30 Months for Making Threats Against Maricopa County Elections Office

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

    PHOENIX, Ariz. – Brian Jerry Ogstad, 60, of Cullman, Alabama, was sentenced yesterday by United States District Judge Michael T. Liburdi to 30 months in prison, followed by 36 months of supervised release. Judge Liburdi also ordered Ogstad to pay a $1,000 fine. Ogstad pleaded guilty to one count of Making a Threatening Interstate Communication on July 25, 2024.

    “In this election season we honor and respect those public servants who enable Americans to exercise their constitutional right to vote,” said United States Attorney Gary Restaino. “And we seek to protect all election workers from intimidation and harassment. Threats of violence, whether conveyed by words or deeds or pictures, will be met in this District with robust prosecution.”

    “As Director Wray has said many times, threats of violence toward election workers are also threats to the democratic process and cannot become normalized,” said FBI Phoenix Acting Special Agent in Charge Jarod Brown. “The FBI takes seriously all threats of violence against public officials, and we will continue to assess them and take swift action as necessary.”

    On August 2, 2022, Arizona held primary elections for federal and state officeholders, including a gubernatorial primary election that received nationwide media coverage. From the day of the election through August 4, 2022, Ogstad sent multiple threatening messages to an Instagram social media account maintained by Maricopa County Elections. For example, on or about August 3, 2022, Ogstad stated, (1) “You did it! Now you are [expletive]. Dead. You will all be executed for your crimes”; (2) “[expletive] you! You are caught! They have it all. You [expletive] are dead”; (3) “You are lying, cheating [expletive] . . . you better not come in my church, my business or send your kids to my school. You are [expletive] stupid if you think your lives are safe”; and (4) “You [expletive] are so dead.” On or about August 4, 2022, Ogstad further stated, “[Y]ou people are so ducking [sic] stupid. Everyone knows you are lots [sic], cheats, frauds and in doing so in relation to elections have committed treason. You will all be executed. Bang [expletive]!”

    The FBI Phoenix Field Office, with substantial assistance from the FBI Birmingham Field Office, conducted the investigation in this case. Assistant U.S. Attorney Mary Sue Feldmeier, District of Arizona, and Trial Attorney Tanya Senanayake of the National Security Division’s Counterterrorism Section handled the prosecution.

    CASE NUMBER:           CR-24-03130-PHX-MTL
    RELEASE NUMBER:    2024-142_Ogstad

    # # #

    For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
    Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

     

    MIL Security OSI –

  • MIL-OSI Security: U.S. Attorney Announces Murder-for-Hire Charges Against IRGC Brigadier General and Former Intelligence Officer and Members of an Iranian Intelligence Network

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

    Ruhollah Bazghandi and Members of His Iran-Based Network, Contracted Members of an Eastern European Organized Crime Group to Murder a U.S. Citizen of Iranian Origin in New York City Who Has Publicly Opposed the Iranian Government

    Damian Williams, the United States Attorney for the Southern District of New York; Merrick B. Garland, the Attorney General of the United States; Matthew G. Olsen, the Assistant Attorney General for National Security; Christopher A. Wray, the Director of the Federal Bureau of Investigation (“FBI”); and James E. Dennehy, Assistant Director in Charge of the New York Field Office of the FBI, announced the unsealing of murder-for-hire, money-laundering, and sanctions charges against RUHOLLAH BAZGHANDI, a/k/a “Roohollah Azimi,” FNU LNU, a/k/a “Haj Taher,” (“HAJ TAHER”), HOSSEIN SEDIGHI, and SEYED MOHAMMAD FOROUZAN.  The charges are contained in a Superseding Indictment unsealed today in Manhattan federal court.  As detailed in the Superseding Indictment, BAZGHANDI, HAJ TAHER, SEDIGHI, and FOROUZAN contracted members of an Eastern European criminal organization, including RAFAT AMIROV, a/k/a “Farkhaddin Mirzoev,” a/k/a “Pᴎᴍ,”  a/k/a “Rome,” POLAD OMAROV, a/k/a “Araz Aliyev,” a/k/a “Polad Qaqa,” a/k/a “Haci Qaqa,” and ZIALAT MAMEDOV, a/k/a “Ziko,” to murder a U.S. citizen of Iranian origin in New York City who has publicly opposed the Iranian Government and who has previously been the target of similar plots by the Iranian Government.  AMIROV, OMAROV, and MAMEDOV previously were arrested on charges contained in underlying indictments.  AMIROV and OMAROV are in custody in the U.S., pending trial; Mamedov was extradited from the Czech Republic to the Republic of Georgia (“Georgia”) to face charges there.  BAZGHANDI, HAJ TAHER, SEDIGHI, and FOROUZAN, all of whom are based in Iran, remain at large.  The case is pending before U.S. District Judge Colleen McMahon.

    U.S. Attorney Damian Williams said: “As alleged, for years, the Government of Iran has attempted to assassinate, on U.S. soil, a U.S. citizen of Iranian origin who is a prominent critic of the Iranian regime.  In January 2023, we unsealed charges alleging that members of an Eastern European crime group engaged in a plot to murder this victim.  As we allege, that group was not acting alone.  Today, we hold their Iranian masters to account, and allege that these Iran-based co-conspirators, including a Brigadier General in the Islamic Revolutionary Guard Corps, directed the murder plot.  By charging these Iran-based defendants, we seek to strike another public blow at the heart of the Government of Iran’s efforts to execute the victim—as well as its lethal targeting, intimidation, and repression of other Iranian dissidents critical of the regime in the U.S. and abroad.”  

    Attorney General Merrick B. Garland said: “The Justice Department has now charged eight individuals, including an Iranian military official, for their efforts to silence and kill a U.S. citizen because of her criticism of the Iranian regime.  We will not tolerate efforts by an authoritarian regime like Iran to undermine the fundamental rights guaranteed to every American.  Three of the defendants charged in this horrific plot are now in U.S. custody, and we will never stop working to identify, find, and bring to justice all those who endanger the safety of the American people.”

    Assistant Attorney General Matthew G. Olsen said: “Today’s indictment makes plain that the Iranian regime for years has been behind a violent campaign to stalk, intimidate, and arrange the killing of an American dissident on U.S. soil for bravely speaking up for the rights of the Iranian people.  The Department is committed to exposing and holding accountable those in Tehran who believe they can hide their hand in carrying out such reprehensible activities.”

    FBI Director Christopher A. Wray said: “Today’s indictment exposes the full extent of Iran’s plot to silence an American journalist for criticizing the Iranian regime.  According to the charges, a brigadier general in the Islamic Revolutionary Guard Corps and a former Iranian intelligence officer, working with a network of conspirators, planned to kill a dissident living in New York City.  The FBI’s investigation led to the disruption of this plot as one of the conspirators was allegedly on their way to murder the victim in New York.  As these charges show, the FBI will work with our partners here and abroad to hold accountable those who target Americans.”

    FBI Assistant Director in Charge James E. Dennehy said: “Today we charge four members of the Bazghandi Network – each connected to the Iranian government – as being responsible for hiring members of an Eastern European Organized Crime Group to murder an American citizen in New York City.   This crime was intended to stop an American from exercising their Constitutionally protected right to free speech; to end their life for speaking out publicly against the Iranian regime and its human rights violations.  The FBI will aggressively pursue, disrupt, and hold accountable any foreign government which attempts to murder our citizens on our soil.”

    According to the allegations contained in the Superseding Indictment, other court filings, and statements made during court proceedings:[1] 

    BAZGHANDI, who resides in Iran, is an Islamic Revolutionary Guard Corps (“IRGC”) Brigadier General and has previously served as chief of an IRGC Intelligence Organization (“IRGC-IO”) counterintelligence office.  In April 2023, the U.S. Secretary of State designated IRGC-IO as a Specially Designated Global Terrorist under Executive Order 14078, relating to hostage-taking and the wrongful detention of U.S. nationals abroad. On the same date, the U.S. Treasury Department sanctioned BAZGHANDI in connection with his involvement with the detention of foreign prisoners held in Iran.  BAZGHANDI was designated by the Treasury Department a second time in June 2023, this time under Executive Order 13224, for his participation in IRGC-IO’s lethal targeting operations.  HAJ TAHER, SEDIGHI, and FOROUZAN (collectively with BAZGHANDI, the “Bazghandi Network”), each of whom resides in Iran, also have connections to the Government of Iran.    

    The Bazghandi Network contracted AMIROV, OMAROV, MAMEDOV, and Khalid Mehdiyev to murder, on U.S. soil, a victim (the “Victim”) residing in New York City.  The Victim is a journalist, author, and human rights activist who has publicized the Government of Iran’s human rights abuses and suppression of political expression, including in connection with continuing protests against the regime across Iran.  As recently as 2020 and 2021, Iranian intelligence officials and assets plotted to kidnap the Victim from within the U.S. for rendition to Iran in an effort to silence the Victim’s criticism of the regime.  That plot was disrupted and exposed by the FBI and led to the filing of federal kidnapping conspiracy and other charges in the Southern District of New York against several participants in the plot in U.S. v. Farahani, et al., 21 Cr. 430 (RA) (S.D.N.Y.).

    Since at least July 2022, the Bazghandi Network tasked members of the Organization with assassinating the Victim.  The Organization’s participation in the murder-for-hire plot was directed by AMIROV, who resided in Iran and who was tasked with targeting the Victim by individuals in Iran.  On approximately July 13, 2022, AMIROV forwarded targeting information—which Amirov had received from individuals in Iran—about the Victim and the Victim’s residence to OMAROV.  OMAROV, in turn, together with MAMEDOV, directed and collaborated with Mehdiyev, who was residing in Yonkers, New York, to carry out the plot against the Victim. Mehdiyev’s participation in the plot was disrupted when he was arrested near the Victim’s home on or about July 28, 2022, while in possession of the assault rifle, along with 66 rounds of ammunition, approximately $1,100 in cash, and a black ski mask.

    In January 2023, AMIROV, OMAROV, and MAMEDOV were arrested overseas.  On January 27, 2023, they were charged publicly for their roles in the plot to assassinate the Victim.  Nevertheless, in the months that followed, members of the Bazghandi Network continued to target the Victim.  For example, in or about March 2023, HAJ TAHER searched for information about the Victim’s family members and SEDIGHI saved an image of the Victim’s residence. As recently as on or about May 1, 2023, BAZGHANDI conducted an Internet search, in Farsi, for, “a person in the house of [the Victim] movie,” and, on the same date, watched a video with the title, “A video of the arrested gunman in front of [the Victim]’s home in New York received by [the Victim’s employer].”

    *               *                *

    BAZGHANDI, HAJ TAHER, SEDIGHI, and FOROUZAN, all of Iran, have been charged with murder-for-hire, which carries a maximum sentence of 10 years in prison (Count One); conspiracy to commit murder-for-hire, which carries a maximum sentence of 10 years in prison (Count Two); conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison (Count Three); and conspiring to violate the International Emergency Economic Powers Act and sanctions against the Government of Iran, which carries a maximum sentence of 20 years in prison (Count Six).

    AMIROV, 45, of IRAN; OMAROV, 39, of the Czech Republic and Slovenia; Mamedov, 32, of Georgia; also have been charged in Counts One, Two, and Three, as well as with attempted murder in aid of racketeering, which carries a maximum sentence of 10 years in prison (Count Four); and possession and use of a firearm in connection with the attempted murder, which carries a maximum sentence of life imprisonment and a mandatory minimum sentence of 5 years in prison (Count Five).

    The potential maximum sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by Judge McMahon.

    Mr. Williams praised the outstanding investigative work of the FBI and its New York Field Office Counterintelligence-Cyber Division and the New York FBI Iran Threat Task Force.  Mr. Williams also thanked the New York City Police Department (“NYPD”) and the NYPD Intelligence Bureau, as well as the Department of Justice’s National Security Division and the Department of Justice’s Office of International Affairs, for their assistance.

    This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Michael D. Lockard, Jacob H. Gutwillig, and Matthew J.C. Hellman are in charge of the prosecution, with assistance from Trial Attorneys Christopher Rigali and Leslie Esbrook of the Counterintelligence and Export Control Section, and Dmitriy Slavin of the National Security Division’s Counterterrorism Section.

    The charges in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

    [1] As the introductory phrase signifies, the Superseding Indictment, and the description of the Superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.

    MIL Security OSI –

  • MIL-OSI Security: Seven Members of Moscow-Based Criminal Organization Plead Guilty in Over $1.7 Billion International Telemedicine Scheme

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

    Ahead of the Threat Podcast: Episode Zero

    Welcome to Ahead of the Threat, the FBI’s new podcast miniseries that brings together an FBI cyber executive and a private sector chief information security officer. Join Bryan Vorndran, assistant director of the FBI’s Cyber Division, and Jamil Farshchi, a strategic engagement advisor for the FBI who also works as an executive vice president and CISO of Equifax, as they discuss emerging cyber threats and the enduring importance of cybersecurity fundamentals. Featuring distinguished guests from the business world and government, Ahead of the Threat will confront some of the biggest questions in cyber: How will emerging technology impact corporate America? How can corporate boards be structured for cyber resilience? What does the FBI think about generative artificial intelligence? Listen to new episodes biweekly and stay Ahead of the Threat.

    Charity and Disaster Fraud

    Charity fraud scams can come in many forms: emails, social media posts, crowdfunding platforms, cold calls, etc. They are especially common after high-profile disasters. Always use caution and do your research when you’re looking to donate to charitable causes.

    RYAN JAMES WEDDING

    Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances; Conspiracy to Export Cocaine; Continuing Criminal Enterprise; Murder in Connection with a Continuing Criminal Enterprise and Drug Crime; Attempt to Commit…

    Capitol Violence

    The FBI is seeking to identify individuals involved in the violent activities that occurred at the U.S. Capitol and surrounding areas on January 6, 2021. View photos and related information here. If you have any information to provide, visit tips.fbi.gov or call 1-800-CALL-FBI.

    MIL Security OSI –

  • MIL-OSI Security: New Rochelle Physician Pleads Guilty to Selling Thousands of Oxycodone Pills for Cash

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

    Damian Williams, the United States Attorney for the Southern District of New York; Frank A. Tarentino III, the Special Agent in Charge of the New York Division of the Drug Enforcement Agency (“DEA”); and Naomi Gruchacz, the Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (“HHS-OIG”), announced that MORDECHAI BAR pled guilty today to one count of illicitly distributing and dispensing oxycodone and other controlled substances.  BAR pled guilty before U.S. District Judge Cathy Seibel, to whom his case is assigned.

    U.S. Attorney Damian Williams said: “Dr. Mordechai Bar hid behind his medical license while he prescribed oxycodone without a legitimate medical need.  Like any drug dealer, he pumped highly addictive substances into the streets for profit, with no regard for the impact on the community.  Along with our law enforcement partners, we will continue to aggresively prosecute physicians who help fuel the opioid crisis.”

    DEA Special Agent in Charge Frank A. Tarentino III said: “This guilty plea from Doctor Mordechai Bar is the result of the hard work of our DEA New York’s Westchester Office and our law enforcement partners in pursuing those individuals who put profit and greed over the health and safety of their patients.  The DEA remains committed in pursuing those individuals who exacerbate the ongoing opioid crisis.”

    HHS-OIG Special Agent in Charge Naomi Gruchacz said: “This physician accepts responsibility for illegally prescribing controlled substances, an action that is especially egregious given the ongoing opioid epidemic. HHS-OIG will continue to work with our law enforcement partners to ensure individuals involved in fraud schemes that exploit federal health care programs and threaten patient safety are held accountable.”

    According to documents filed in this case including the Complaint, the Information, BAR’s plea agreement, and statements made in Court:

    Between in or about January 2023 and in or about June 2024, BAR, a physician, repeatedly prescribed oxycodone without a legitimate medical purpose and outside of the usual course of professional practice.  Oxycodone, a Schedule II narcotic, is a highly addictive opioid that is used to treat severe and chronic pain, as well as pain associated with certain forms of cancer and other terminal illnesses.  Oxycodone prescriptions command high prices in the black market because of demand by drug abusers.  BAR often prescribed oxycodone in combination with amphetamines and/or alprazolam, controlled substances that are themselves frequently abused and resold illicitly.  BAR sold these prescriptions for cash, and he did so without performing physical examinations or medical tests on the patients in whose names the prescriptions were issued. 

    *                 *                 *

    BAR, 71, of Larchmont, New York, pled guilty to one count of distributing oxycodone and other controlled substances, which carries a maximum sentence of 20 years in prison.  The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing will be determined by a judge.  BAR is scheduled to be sentenced by Judge Seibel on February 18, 2025.

    Mr. Williams praised the outstanding efforts of the DEA New York’s Westchester Office, HHS-OIG, the FBI, IRS-CI, and the Organized Crime Drug Enforcement Task Force.  Mr. Williams also thanked the New York State Department of Health Bureau of Narcotic Enforcement for their assistance in this case.

    The case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorneys Jorja N. Knauer, David A. Markewitz, and Kathryn Wheelock are in charge of the prosecution. 

    MIL Security OSI –

  • MIL-OSI Europe: Press release – Investigation into missing unaccompanied child migrants wins the 2024 Daphne Caruana Galizia Prize for Journalism

    Source: European Parliament 3

    Lost in Europe on Wednesday won the 2024 Daphne Caruana Galizia Prize for Journalism for its investigation into the disappearance of over 50 000 unaccompanied child migrants.

    The investigation, run by media from Germany, Italy, Greece, the Netherlands, Belgium, Ireland and the UK revealed that at least 51 433 unaccompanied child migrants disappeared after arriving in European countries between 2021 and 2023.

    Roberta Metsola, President of the European Parliament, Pina Picierno, Vice-President responsible for the Prize, and representatives of the independent European-wide Jury of the Prize participated in the award ceremony held in the European Parliament’s Daphne Caruana Galizia Press Room in Strasbourg.

    President Metsola said: “Daphne Caruana Galizia’s legacy continues through the work of journalists who live to tell the truth and refuse to be silenced. Their fight for justice prevails over the threats that try to undermine their important work. Press freedom is non-negotiable. Seven years after Daphne’s assassination, we continue to honour her memory with a prize that reminds us of this Parliament’s long-standing commitment to these fundamental values”.

    Between 3 May and 31 July 2024, hundreds of journalists from the 27 EU countries submitted their stories for consideration. Thirteen of the 318 submissions were shortlisted by the jury before the winner was chosen.

    About the Winning Story

    Lost in Europe uncovered the staggering reality that, since 2021, on average nearly 47 children have vanished each day after arriving in Europe.

    Data collected by Lost in Europe from 31 European countries, including Austria, Germany, and Italy, reveal that tens of thousands of migrant children are missing.

    The months-long investigation shows that the number of missing migrant children could be even higher, as inconsistent documentation and the lack of data collection by some countries contribute to significant gaps in reporting.

    This latest investigation builds on Lost in Europe’s 2021 research, which revealed that over 18 000 migrant children went missing in Europe between 2018 and 2020.

    As Aagje Leven, Secretary General of Missing Children Europe, noted, the findings are likely just the “tip of the iceberg,” as more child migrants continue to disappear at alarming rates in Europe, with many feared to be victims of human trafficking and modern slavery.

    The publishing partners for this investigation were De Standaard, (Belgium), Small Stream Media (the Netherlands), RBB (Germany), Knack (Belgium), ANSA (Italy), Domani (Italy), CNN (UK/US), VRT (Belgium), Εfimerida ton Syntakton (Greece), , The Journal (Ireland), Tagesschau (Germany), and NRC (the Netherlands).

    About the Prize

    The Daphne Caruana Prize was initiated by a decision of the European Parliament’s Bureau in December 2019 as a tribute to Daphne Caruana Galizia, a Maltese anti-corruption investigative journalist and blogger who was killed in a car bomb attack in 2017.

    Every year, the Prize rewards (on the anniversary of the assassination of Daphne Caruana Galizia) outstanding journalism that promotes or defends the core principles and values of the European Union such as human dignity, freedom, democracy, equality, rule of law, and human rights.

    Professional journalists and teams of professional journalists of any nationality can submit in-depth pieces that have been published or broadcast by media based in one of the European Union’s 27 member states. The aim is to support and highlight the importance of professional journalism in safeguarding freedom, equality and opportunity.

    The independent jury is composed of representatives of the press and civil society from the 27 EU member states and a representative of the International Federation of Journalists.

    The Prize and the €20 000 in prize money demonstrate the European Parliament’s strong support for investigative journalism and a free press.

    Past winners

    2021 – “The Pegasus Project”, coordinated by the Forbidden Stories

    2022 – Documentary on “The Central African Republic under Russian Influence” by Clément Di Roma and Carol Valade (ARTE/France24/Le Monde)

    2023 – Joint investigation on the Pylos migrant boat shipwreck (Solomon, in collaboration with Forensis, StrgF/ARD, and The Guardian)

    Who was Daphne Caruana Galizia?

    Daphne Caruana Galizia was a Maltese journalist, blogger and anti-corruption activist who reported extensively on corruption, money laundering, organised crime, sale of citizenship and the Maltese government’s links to the Panama Papers. Following harassment and threats, she was murdered in a car bomb explosion on 16 October 2017. The outcry over the authorities’ handling of her murder investigation ultimately prompted the resignation of Prime Minister Joseph Muscat. Critical of failings in the investigation, in December 2019, MEPs called on the European Commission to take action.

    MIL OSI Europe News –

  • MIL-OSI Security: FBI’s Operation Not Forgotten 2024

    Source: Federal Bureau of Investigation FBI Crime News (b)

    FBI dedicates investigative resources to address violent crime in Indian country

    In its second year, Operation Not Forgotten, a joint operation between the FBI and the Bureau of Indian Affairs-Office of Justice Services (BIA) surged more than 50 personnel to assist with unresolved investigations in Indian country. From June to September 2024, dedicated resources included FBI special agents and intelligence personnel who deployed to support 10 FBI field offices whose regions include Tribal communities that too often are impacted by a crisis of violence. 

    In the past four months, as a result of Operation Not Forgotten, more than 300 cases received increased investigative, intelligence, and victim assistance. The majority of that assistance was surged to cases involving the most vulnerable victims, including investigations of child physical and sexual abuse, child sexual abuse material, serious violent assaults, domestic violence, and death investigations. 

    “We want our Native American communities to know we are committed to combating criminal activity on Tribal land,” said FBI Criminal Investigative Division Assistant Director Chad Yarbrough. “Unfortunately, Native Americans face some of the highest levels of violence. Combating that is among the most important work we do. With the help our partners at BIA and our dedicated agents, analysts and professional staff, we will continue to bring expertise and insight that’s critical to protecting these communities and victims and helping them heal and thrive.” 

    FBI and BIA efforts have currently led to over 40 arrests, over 40 search warrants being executed, 11 violent offenders were indicted, and nine child victims were identified and recovered from situations of abuse or neglect. Additionally, FBI Victim Services Division personnel provided direct support and services to approximately 440 victims and next-of-kin, including, but not limited to, crisis intervention, case status updates, child/adolescent forensic interviews, support during investigative interviews, assistance with Crime Victims Compensation applications, resource referrals, transportation assistance, Child Protective Services coordination, and Emergency Victim Assistance Funding for lodging and other immediate expenses. 

    “The Bureau of Indian Affairs, Office of Justice Services was pleased to have been apart of Operation Not Forgotten,” said Richard Melville, Office of Justice Services director. “Joint investigative efforts between the FBI and BIA increase investigative resources and strengthens our ability to bring closure and justice for families and victims of violent crimes committed in Indian country. This partnership is an effective tool our agencies leveraged throughout Operation Not Forgotten to achieve that important goal.”   

    This joint operation between the two agencies recognizes the importance of an inclusive approach to combating violent crime in Indian country. By working closely with BIA and Tribal law enforcement agencies, the FBI is establishing trusted partnerships with Tribal communities to address crime in Indian country. The FBI has more than 200 dedicated agents and 26 Safe Trails Task Forces consisting of federal, state, local, and Tribal law enforcement partners investigating crimes in roughly 200 Tribal communities nationwide. By expanding our presence in Indian country and working closely with our partner law enforcement agencies and community advocates, the FBI is committed to bringing closure to unresolved cases and bringing justice to victims and their families. 

    Operation Not Forgotten, along with the FBI’s broader violent crime mission, emphasizes the FBI’s continued dedication to address violence impacting Indian country, including Missing and Murdered Indigenous Persons (MMIP). The FBI is committed to maintaining close collaboration with our federal, state, local and Tribal law enforcement agencies, Tribal governments, and community members to build safer communities and protect the rights of all people.   

    Individuals with any relevant information about crimes or crimes in Indian country, are encouraged to visit tips.fbi.gov to submit an online tip or contact their local FBI office.   

    The following FBI field offices received dedicated personnel for Operation Not Forgotten 2024: 

    • Albuquerque
    • Denver
    • Detroit
    • Minneapolis
    • Oklahoma City
    • Omaha
    • Phoenix
    • Portland
    • Salt Lake City
    • Seattle

    Additional resources related to the FBI’s work in Indian country can be found on fbi.gov. 

    MIL Security OSI –

  • MIL-OSI Security: Acting United States Attorney Kevin Davidson Appoints Election Officer for the Middle District of Alabama

    Source: Office of United States Attorneys

                MONTGOMERY, Ala. – Acting United States Attorney Kevin Davidson announced today that an Assistant United States Attorney will serve as the District Election Officer (DEO) for the Middle District of Alabama and lead the efforts of his office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 5, 2024, general election. The DEO is responsible for overseeing the district’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.

                “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election,” said Acting U.S. Attorney Davidson. “In addition, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”

                The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

                Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English). 

                The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, the DEO will be on duty in this District while the polls are open. The DEO can be reached by the public at the following telephone number: (334) 223-7280.

                In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 251-438-3674.

                Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.

                Acting U.S. Attorney Davidson added, “Ensuring free and fair elections depends in large part on the assistance of the American electorate. It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”

                Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency. 

    MIL Security OSI –

  • MIL-OSI Security: Cortez Man Pleads Guilty To Making Threats Against Election Official

    Source: Office of United States Attorneys

    DENVER – The United States Attorney’s Office for the District of Colorado announces that Teak Ty Brockbank, 45, of Cortez, pleaded guilty today to one count of transmitting interstate threats.

    According to the plea agreement, Brockbank made a series of online threats toward elections officials in Colorado and Arizona, a Colorado state judge, and federal law enforcement agents between September 2021 and August 2022. On September 21, 2021, for example, Brockbank posted on a social media account: “I live in Communist Colorado and this Crazed liberal [referring to Election Official-1] and many others in Communist Colorado needs to- No has to Hang she has to Hang by the neck till she is Dead Dead Dead. There will be accountability for these peoples actions in Communist Colorado and it won’t be judges and it won’t be weakmided cops that bring it!!! It will be Me it will be You it Will be every day people that understand that there life does not matter anymore with the future our country has laid out before it.”

    In the plea agreement, Brockbank also admitted that, during that time, he used that account, as well as another social media account to post messages threatening Colorado and Arizona election officials. Brockbank admitted to other threats as well. On August 4, 2022, for example, Brockbank posted a message referring to separate election officials in Arizona and Colorado and then stated: “Once those people start getting put to death then the rest will melt like snowflakes and turn on each other. . . . This is the only way. So those of us that have the stomach for what has to be done should prepare our minds for what we all [a]re going to do!!!!!! It is time.”

    Brockbank also posted a message threatening a Colorado state judge on Oct. 2, 2021: “I could pick up my rifle and I could go put a bullet in this Mans head and send him to explain himself to our Creator right now. I would be Justified!!! Not only justified but obligated by those in my family who fought and died for the freedom in this country. . . . What can I do other than kill this man my self?”

    Finally, Brockbank allegedly threatened federal law enforcement on July 20, 2022, posting: “ATF CIA FBI show up to my house I am shooting them peace’s of shit first No Warning!! Then I will call the sheriff!!! With everything that these piece of shit agencies have done I am completely justified to just start dropping them as soon as they step on my property! justified.”

    United States District Judge S. Kato Crews presided over the change of plea hearing. The FBI Denver Field Office investigated the case. Trial Attorney Jonathan E. Jacobson of the Criminal Division’s Public Integrity Section and Assistant United States Attorney Cyrus Y. Chung for the District of Colorado handled the prosecution.

    Sentencing will be held on February 3, 2025.

    This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa Monaco in June 2021, the task force has led the Department’s efforts to address threats of violence against election workers, and to ensure that all election workers — whether elected, appointed, or volunteer — are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. A year after its formation, the task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the Task Force has begun.

    Under the leadership of Deputy Attorney General Monaco, the Task Force is led by the Criminal Division’s Public Integrity Section and includes several other entities within the Justice Department, including the Computer Crime and Intellectual Property Section of the Criminal Division, the Civil Rights Division, the National Security Division, and the FBI, as well as key interagency partners, such as the Department of Homeland Security and the U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.

    To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found here: www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.

    Case Number: 24-cr-00291-SKC

    MIL Security OSI –

  • MIL-OSI Security: Member of Large-Scale Drug Trafficking Organization Sentenced to 16 Years in Prison for Distributing Meth, PCP, Fentanyl, and Other Narcotics

    Source: Office of United States Attorneys

    PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Diane Gillard, 41, of Philadelphia, Pennsylvania, was sentenced by United States District Court Judge John M. Gallagher to 192 months in prison, 10 years of supervised release, and $2,100 in restitution for drug trafficking and gun offenses.

    On July 18, 2023, a grand jury in the Eastern District of Pennsylvania returned a 54-count superseding indictment charging Gillard, brother Phillip Gillard, and seven other codefendants with their participation in a large-scale drug trafficking organization operating in the Port Richmond section of Philadelphia, in the immediate vicinity of the Memphis Street Academy, a charter school located at 2950 Memphis Street.

    In November 2023, Diane Gillard pleaded guilty to all charges in the superseding indictment.

    Those charges arose from the FBI’s two-year investigation into the Gillard drug trafficking organization, which supplied other drug traffickers with wholesale quantities of methamphetamine, phencyclidine (“PCP”), fentanyl, and other narcotics.

    Throughout the course of the investigation, law enforcement agents conducted surveillance and undercover sting operations, during which drugs were purchased from the defendants. The group maintained three separate properties in connection with their drug trafficking organization, all of which were less than 1,000 feet away from the Memphis Street Academy.

    In total, the FBI confiscated over 20 pounds of pure methamphetamine, three gallons of PCP, one and a half kilograms of cocaine, 900 grams of crack cocaine, 400 grams of fentanyl, and 11 firearms.

    Codefendants Sharif Jackson, Amin Whitehead, Cesar Maldonado, Terrence Maxwell, Raphael Sanchez, Melvin Dreher, and Arron Preno previously pleaded guilty and received prison sentences in this case. Jackson was sentenced to 180 months in prison, Whitehead to 138 months, Maldonado to 96 months, Maxwell to 93 months, Sanchez to 90 months, Dreher to 60 months, and Preno to six months. Phillip Gillard, who was convicted at trial in February, is scheduled to be sentenced in December.

    “Diane Gillard was a central participant in the Gillard Street Gang’s trafficking, caught red-handed selling large amounts of drugs on multiple occasions,” said U.S. Attorney Romero. “This is a group that helped flood Philly’s streets with meth, PCP, fentanyl, and more. My office and our partners will continue to target those fueling our city’s drug epidemic and callously profiting from people’s pain and addiction.”

    “Drugs like fentanyl, methamphetamine, and cocaine devastate communities across our nation and have no place in our city,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “Today’s sentence is a culmination of a years-long investigation, and the tireless dedication of the FBI and our law enforcement partners in pursuit of those who bring these harmful drugs into our communities.”

    “The interagency cooperation on this case has been truly outstanding,” said Edward V. Owens, Special Agent in Charge of HSI Philadelphia. “I commend the special agents and prosecutors who worked to ensure that these criminals and the dangerous drugs that they were trafficking will no longer threaten the American public.”

    The case was investigated by the FBI, Philadelphia Police Department, and Homeland Security Investigations, with extraordinary cooperation from the Memphis Street Academy, and is being prosecuted by Assistant United States Attorneys Everett Witherell and Robert W. Schopf.

    MIL Security OSI –

  • MIL-OSI Security: U.S. Attorney Names District Election Officer to Oversee the Handling of Complaints of Election Fraud and Voting Rights Abuses in the November 2024 General Election

    Source: Office of United States Attorneys

    SACRAMENTO, Calif. — U.S. Attorney Phillip A. Talbert announced today that Assistant U.S. Attorney Kevin C. Khasigian will serve as the District Election Officer (DEO) for the Eastern District of California in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 5 general election. The DEO is responsible for overseeing the District’s handling of Election Day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington, DC.

    The 34 counties in the Eastern District are: Alpine, Amador, Butte, Calaveras, Colusa, El Dorado, Fresno, Glenn, Inyo, Kern, Kings, Lassen, Madera, Mariposa, Merced, Modoc, Mono, Nevada, Placer, Plumas, Sacramento, San Joaquin, Shasta, Sierra, Siskiyou, Solano, Stanislaus, Sutter, Tehama, Trinity, Tulare, Tuolumne, Yolo, and Yuba.

    “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election,” said U.S. Attorney Talbert. “Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”

    The Department of Justice has an important role in deterring discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

    Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).

    In order to respond to complaints of voting rights concerns and election fraud during the upcoming election and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Khasigian will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: 916-554-2723.

    U.S. Attorney Talbert stated, “The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice. It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”

    In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by phone at 916-746-7000.

    Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC, by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.

    Please note, however, in the case of a crime of violence or intimidation, call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency. 

    MIL Security OSI –

  • MIL-OSI Security: Martin City man charged with producing, distributing child pornography

    Source: Office of United States Attorneys

    MISSOULA — A Martin City man accused of producing and distributing images of a minor engaged in sexually explicit conduct appeared on Oct. 22 for arraignment on charges, U.S. Attorney Jesse Laslovich said today.

    The defendant, Raymond Owen Bonner, Jr., 39, pleaded not guilty to an indictment charging him with production of child pornography and distribution of child pornography. If convicted, Bonner faces a mandatory minimum of 15 years to 30 years in prison, a $250,000 fine and not less than five years to life of supervised release on the production charge, and a mandatory minimum of five years to 20 years in prison, a $250,000 fine and not less than five years to life of supervised release on the distribution charge.

    U.S. Magistrate Judge Kathleen L. DeSoto presided. Bonner was detained pending further proceedings.

    The indictment alleges that between about June 2024 and Sept. 5, 2024 in Martin City, in Flathead County, Bonner coerced a minor, identified as Jane Doe, to engage in sexually explicit conduct for the purpose of producing visual images and that he distributed visual images of a minor engaged in sexually explicit conduct using a computer.

    The U.S. Attorney’s Office is prosecuting the Case. The FBI and Flathead County Sheriff’s Office conducted the investigation.

    This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.

    Charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt.

    PACER case reference. 24-57.

    The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.

    XXX

    MIL Security OSI –

  • MIL-OSI Australia: Bolstering Food Security in Africa

    Source: Australian Government – Minister of Foreign Affairs

    The Australian Government is bolstering Africa’s ability to withstand the escalating impacts of climate change and combatting food insecurity through a new Africa-Australia Partnership for Climate Responsive Agriculture.

    To be announced at the Commonwealth Heads of Government Meeting where climate change is a major focus, the Partnership will use Australian expertise to support the climate resilience of farming communities in Africa. 

    Delivered by the Australian Centre for International Agricultural Research (ACIAR) over a six-year period, the first year of $11.9 million in funding will contribute to the development of new bilateral research projects and training programs, in close collaboration with local partners. 

    ACIAR is already supporting impactful research in Eastern and Southern Africa, including the improvement of sustainable crop and livestock systems, and forest management practices as well as plant biosecurity to stimulate commercial options for smallholder farmers.

    The Partnership will allow ACIAR to expand its operations into Northern and Western Africa, as well as deliver capacity development and innovative partnerships across the continent.

    Quotes attributable to Minister for Foreign Affairs, Senator the Hon Penny Wong: 

    “Through innovative partnerships and Australian know-how, we are helping build a future where communities are fed, economies are stronger and the environment is protected. It’s about securing a better, more resilient future for all.

    “This initiative will help address food insecurity in regions most exposed to climate change’s devastating impacts.

    “It is another example of the Albanese Government’s commitment to helping our partners across the world in the fight against climate change and our work to shape the world for the better.”

    Quotes attributable to Minister for International Development, the Hon Pat Conroy MP:

    “Investing in Africa’s food security through climate-responsive agriculture is also an investment in Australian farmers and those throughout our region who are facing similar climate impacts.

    “This will help secure lives and livelihoods for decades to come.”

    Quotes attributable to Assistant Minister for Foreign Affairs, the Hon Tim Watts MP: 

    “Australia is a trusted partner in agricultural innovation and this Partnership will further deepen our economic and research ties with Africa.

    “By sharing expertise and resources with African nations, we are helping to build resilient communities that can withstand the interconnected challenges of food security and climate change.”

    MIL OSI News –

  • MIL-OSI Video: Special Agent Describes Work in New Mexico for Operation Not Forgotten

    Source: Federal Bureau of Investigation (FBI) (video statements)

    Special Agent Hailey Evans describes her 30-day deployment to New Mexico in support of Operation Not Forgotten, a four-month surge of FBI resources to Indian country to help investigate crimes against Tribal women and children.

    Learn more at: www.fbi.gov/news/stories/operation-not-forgotten-shines-new-light-on-indian-country-cases

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    MIL OSI Video –

  • MIL-OSI Video: Special Agent Describes Work in North Dakota for Operation Not Forgotten

    Source: Federal Bureau of Investigation (FBI) (video statements)

    Special Agent Amanda Risner describes her 30-day deployment to North Dakota in support of Operation Not Forgotten, a four-month surge of FBI resources to Indian country to help investigate crimes against Tribal women and children.

    Learn more at: www.fbi.gov/news/stories/operation-not-forgotten-shines-new-light-on-indian-country-cases

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    MIL OSI Video –

  • MIL-OSI Video: ‘A Big Asset to Have Tribal PD and BIA With Us’

    Source: Federal Bureau of Investigation (FBI) (video statements)

    Sam Davenport, a special agent in the Pinetop-Lakeside office of the FBI’s Phoenix Division, describes how important it is for the Bureau to have support on American Indian reservations from the Bureau of Indian Affairs (BIA) and tribal police departments.
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  • MIL-OSI: Hanover Bancorp, Inc. Reports Third Quarter 2024 Results and Declares $0.10 Quarterly Cash Dividend

    Source: GlobeNewswire (MIL-OSI)

    Third Quarter Performance Highlights

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

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

    Earnings Summary for the Quarter Ended September 30, 2024

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

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

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

    Earnings Summary for the Nine Months Ended September 30, 2024

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

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

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

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

    Balance Sheet Highlights

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

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

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

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

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

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

    Loan Portfolio

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

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

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

    Commercial Real Estate Statistics

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

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


    Rental breakdown of Multi-Family portfolio

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

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


    Office Property Exposure

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

    Asset Quality and Allowance for Credit Losses

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

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

    Net Interest Margin

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

    About Hanover Community Bank and Hanover Bancorp, Inc.

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

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

    Non-GAAP Disclosure

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

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

    Forward-Looking Statements

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

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

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

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

    Third Quarter 2024 Highlights

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

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

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

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

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

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

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

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

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

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

    Strong Noninterest Income Including $16.3 Million of Capital Markets Revenue

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

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

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

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

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

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

    Strong Core Deposit Growth

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

    Continued Loan Growth

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

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

    Asset Quality Remains Excellent

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

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

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

    Continued Strong Capital Levels and Outstanding Tangible Book Value Expansion

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

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

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

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

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

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

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

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

    The MIL Network –

  • MIL-OSI: Brookline Bancorp Announces Third Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    Net Income of $20.1 million, EPS of $0.23

    Quarterly Dividend of $0.135

    BOSTON, Oct. 23, 2024 (GLOBE NEWSWIRE) — Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income and operating earnings after tax (non-GAAP) of $20.1 million, or $0.23 per basic and diluted share, for the third quarter of 2024, compared to net income of $16.4 million, or $0.18 per basic and diluted share, and operating earnings after tax (non-GAAP) of $17.0 million, or $0.19 per basic and diluted share, for the second quarter of 2024, and net income and operating earnings after tax (non-GAAP) of $22.7 million, or $0.26 per basic and diluted share, for the third quarter of 2023.

    “Our Company experienced improved performance in the third quarter,” commented Paul Perrault, Chairman and CEO, who continued, “As we move into the final months of 2024, we are confident our experienced bankers’ ability to continue to deliver exceptional service to our customers will be better reflected in our profitability as interest rates normalize.”

    BALANCE SHEET

    Total assets at September 30, 2024 were $11.7 billion, representing an increase of $41.4 million from $11.6 billion at June 30, 2024, and an increase of $496.2 million from September 30, 2023. At September 30, 2024, total loans and leases were $9.8 billion, representing an increase of $34.1 million from June 30, 2024, and an increase of $374.5 million from September 30, 2023.

    Total investment securities at September 30, 2024 decreased $1.0 million to $855.4 million from $856.4 million at June 30, 2024, and decreased $25.0 million from $880.4 million at September 30, 2023. Total cash and cash equivalents at September 30, 2024 increased $64.8 million to $407.9 million from $343.1 million at June 30, 2024, and increased $246.9 million from $161.0 million at September 30, 2023. As of September 30, 2024, total investment securities and total cash and cash equivalents represented 10.8 percent of total assets, compared to 10.3 percent and 9.3 percent as of June 30, 2024 and September 30, 2023, respectively.

    Total deposits at September 30, 2024 decreased $4.8 million to $8.7 billion from June 30, 2024. Despite the decrease during the quarter, customer deposits increased $103.2 million, offset by a $107.9 million decrease in brokered deposits. Total deposits increased $166.3 million from $8.6 billion at September 30, 2023, primarily driven by growth in customer deposits. The increase in customer deposits quarter to date included a $43.5 million increase in demand checking accounts.

    Total borrowed funds at September 30, 2024 increased $68.1 million to $1.5 billion from June 30, 2024, and increased $362.5 million from $1.1 billion at September 30, 2023.

    The ratio of stockholders’ equity to total assets was 10.54 percent at September 30, 2024, compared to 10.30 percent at June 30, 2024, and 10.36 percent at September 30, 2023. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 8.50 percent at September 30, 2024, as compared to 8.23 percent at June 30, 2024, and 8.16 percent at September 30, 2023. Tangible book value per common share (non-GAAP) increased $0.36 from $10.53 at June 30, 2024 to $10.89 at September 30, 2024, and increased $0.87 from $10.02 at September 30, 2023.

    NET INTEREST INCOME

    Net interest income increased $3.0 million to $83.0 million during the third quarter of 2024 from $80.0 million for the quarter ended June 30, 2024. The net interest margin increased 7 basis points to 3.07 percent for the three months ended September 30, 2024 from 3.00 percent for the three months ended June 30, 2024, primarily driven by higher yields on loans and leases partially offset by higher funding costs.

    NON-INTEREST INCOME

    Total non-interest income for the quarter ended September 30, 2024 decreased $0.1 million to $6.3 million from $6.4 million for the quarter ended June 30, 2024.

    PROVISION FOR CREDIT LOSSES

    The Company recorded a provision for credit losses of $4.8 million for the quarter ended September 30, 2024, compared to $5.6 million for the quarter ended June 30, 2024. The decrease in provision was largely driven by improving economic forecasts partially offset by an increase in specific reserves on nonperforming credits.

    Total net charge-offs for the third quarter of 2024 were $3.8 million, compared to $8.4 million in the second quarter of 2024. The $3.8 million in net charge-offs was driven by $2.6 million in equipment financing, largely within specialty vehicle. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 16 basis points for the third quarter of 2024 from 35 basis points for the second quarter of 2024.

    The allowance for loan and lease losses represented 1.31 percent of total loans and leases at September 30, 2024, compared to 1.25 percent at June 30, 2024, and 1.27 percent at September 30, 2023.

    ASSET QUALITY

    The ratio of nonperforming loans and leases to total loans and leases was 0.73 percent at September 30, 2024, an increase from 0.62 percent at June 30, 2024. Total nonaccrual loans and leases increased $10.5 million to $71.2 million at September 30, 2024 from $60.7 million at June 30, 2024. The increase was driven by one equipment financing relationship of $9.3 million which has been reserved at 55 percent. The ratio of nonperforming assets to total assets was 0.62 percent at September 30, 2024, an increase from 0.54 percent at June 30, 2024. Total nonperforming assets increased $10.1 million to $72.8 million at September 30, 2024 from $62.7 million at June 30, 2024.

    NON-INTEREST EXPENSE

    Non-interest expense for the quarter ended September 30, 2024 decreased $1.2 million to $57.9 million from $59.2 million for the quarter ended June 30, 2024. Excluding the one time restructuring charge taken in the second quarter of $0.8 million, non-interest expense decreased $0.4 million primarily due to a reduction in advertising and marketing expense.

    PROVISION FOR INCOME TAXES

    The effective tax rate was 24.7 percent and 24.6 percent for the three and nine months ended September 30, 2024 compared to 24.4 percent for the three months ended June 30, 2024 and 21.4 percent and 20.3 percent for the three and nine months ended September 30, 2023.

    RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

    The annualized return on average assets increased to 0.70 percent during the third quarter 2024 from 0.57 percent for the second quarter of 2024.

    The annualized return on average stockholders’ equity increased to 6.63 percent during the third quarter of 2024 from 5.49 percent for the second quarter of 2024. The annualized return on average tangible stockholders’ equity increased to 8.44 percent for the third quarter of 2024 from 7.04 percent for the second quarter of 2024.

    DIVIDEND DECLARED

    The Company’s Board of Directors approved a dividend of $0.135 per share for the quarter ended September 30, 2024. The dividend will be paid on November 29, 2024 to stockholders of record on November 15, 2024.

    CONFERENCE CALL

    The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, October 24, 2024 to discuss the results for the quarter, business highlights and outlook. A copy of the Earnings Presentation is available on the Company’s website, www.brooklinebancorp.com. To listen to the call and view the Company’s Earnings Presentation, please join the call via https://events.q4inc.com/attendee/314623001. To listen to the call without access to the slides, interested parties may dial 833-470-1428 (United States) or 404-975-4839 (internationally) and ask for the Brookline Bancorp, Inc. conference call (Access Code 414186). A recorded playback of the call will be available for one week following the call on the Company’s website under “Investor Relations” or by dialing 866-813-9403 (United States) or 929-458-6194 (internationally) and entering the passcode: 898921.

    ABOUT BROOKLINE BANCORP, INC.

    Brookline Bancorp, Inc., a bank holding company with $11.7 billion in assets and branch locations in Massachusetts, Rhode Island, and the Lower Hudson Valley of New York State, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank, Bank Rhode Island, and PCSB Bank (the “banks”). The Company provides commercial and retail banking services, cash management and investment services to customers throughout Central New England and the Lower Hudson Valley of New York State. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com, www.bankri.com and www.pcsb.com.

    FORWARD-LOOKING STATEMENTS

    Certain statements contained in this press release that are not historical facts may constitute 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, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission (“SEC”), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters, including statements regarding the Company’s business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements may differ, possibly materially, from what is included in this press release due to factors and future developments that are uncertain and beyond the scope of the Company’s control. These include, but are not limited to, changes in interest rates; general economic conditions (including inflation and concerns about liquidity) on a national basis or in the local markets in which the Company operates; turbulence in the capital and debt markets; competitive pressures from other financial institutions; changes in consumer behavior due to changing political, business and economic conditions, or legislative or regulatory initiatives; changes in the value of securities and other assets in the Company’s investment portfolio; increases in loan and lease default and charge-off rates; the adequacy of allowances for loan and lease losses; decreases in deposit levels that necessitate increases in borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters, and future pandemics; changes in regulation; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions and adverse economic developments; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; and changes in assumptions used in making such forward-looking statements. Forward-looking statements involve risks and uncertainties which are difficult to predict. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company’s Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the SEC. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

    BASIS OF PRESENTATION

    The Company’s consolidated financial statements have been prepared in conformity with generally accepted accounting principles (“GAAP”) as set forth by the Financial Accounting Standards Board in its Accounting Standards Codification and through the rules and interpretive releases of the SEC under the authority of federal securities laws. Certain amounts previously reported have been reclassified to conform to the current period’s presentation.

    NON-GAAP FINANCIAL MEASURES

    The Company uses certain non-GAAP financial measures, such as operating earnings after tax, operating earnings per common share, operating return on average assets, operating return on average tangible assets, operating return on average stockholders’ equity, operating return on average tangible stockholders’ equity, tangible book value per common share, tangible stockholders’ equity to tangible assets, return on average tangible assets (annualized) and return on average tangible stockholders’ equity (annualized). These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial services sector. A detailed reconciliation table of the Company’s GAAP to the non-GAAP measures is attached.

    INVESTOR RELATIONS:

    Contact: Carl M. Carlson
      Brookline Bancorp, Inc.
      Co-President and Chief Financial and Strategy Officer
      (617) 425-5331
      carl.carlson@brkl.com
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Selected Financial Highlights (Unaudited)
     
      At and for the Three Months Ended  
      September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023    		  
      (Dollars In Thousands Except per Share Data)  
    Earnings Data:                    
    Net interest income $ 83,008   $ 80,001   $ 81,588   $ 83,555   $ 84,070  
    Provision for credit losses on loans 4,832   5,607   7,423   3,851   2,947  
    Provision (credit) for credit losses on investments (172)   (39)   (44)   (76)   84  
    Non-interest income 6,348   6,396   6,284   8,027   5,508  
    Non-interest expense 57,948   59,184   61,014   59,244   57,679  
    Income before provision for income taxes 26,748   21,645   19,479   28,563   28,868  
    Net income 20,142   16,372   14,665   22,888   22,701  
                         
    Performance Ratios:                    
    Net interest margin (1) 3.07 % 3.00 % 3.06 % 3.15 % 3.18 %
    Interest-rate spread (1) 2.26 % 2.14 % 2.21 % 2.39 % 2.45 %
    Return on average assets (annualized) 0.70 % 0.57 % 0.51 % 0.81 % 0.81 %
    Return on average tangible assets (annualized) (non-GAAP) 0.72 % 0.59 % 0.53 % 0.83 % 0.83 %
    Return on average stockholders’ equity (annualized) 6.63 % 5.49 % 4.88 % 7.82 % 7.78 %
    Return on average tangible stockholders’ equity (annualized) (non-GAAP) 8.44 % 7.04 % 6.26 % 10.12 % 10.09 %
    Efficiency ratio (2) 64.85 % 68.50 % 69.44 % 64.69 % 64.39 %
                         
    Per Common Share Data:                    
    Net income — Basic $ 0.23   $ 0.18   $ 0.16   $ 0.26   $ 0.26  
    Net income — Diluted 0.23   0.18   0.16   0.26   0.26  
    Cash dividends declared 0.135   0.135   0.135   0.135   0.135  
    Book value per share (end of period) 13.81   13.48   13.43   13.48   13.03  
    Tangible book value per share (end of period) (non-GAAP) 10.89   10.53   10.47   10.50   10.02  
    Stock price (end of period) 10.09   8.35   9.96   10.91   9.11  
                         
    Balance Sheet:                    
    Total assets $ 11,676,721   $ 11,635,292   $ 11,542,731   $ 11,382,256   $ 11,180,555  
    Total loans and leases 9,755,236   9,721,137   9,655,086   9,641,589   9,380,782  
    Total deposits 8,732,271   8,737,036   8,718,653   8,548,125   8,566,013  
    Total stockholders’ equity 1,230,362   1,198,480   1,194,231   1,198,644   1,157,871  
                         
    Asset Quality:                    
    Nonperforming assets $ 72,821   $ 62,683   $ 42,489   $ 45,324   $ 51,540  
    Nonperforming assets as a percentage of total assets 0.62 % 0.54 % 0.37 % 0.40 % 0.46 %
    Allowance for loan and lease losses $ 127,316   $ 121,750   $ 120,124   $ 117,522   $ 119,081  
    Allowance for loan and lease losses as a percentage of total loans and leases 1.31 % 1.25 % 1.24 % 1.22 % 1.27 %
    Net loan and lease charge-offs $ 3,808   $ 8,387   $ 8,781   $ 7,141   $ 10,974  
    Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.16 % 0.35 % 0.36 % 0.30 % 0.47 %
                         
    Capital Ratios:                    
    Stockholders’ equity to total assets 10.54 % 10.30 % 10.35 % 10.53 % 10.36 %
    Tangible stockholders’ equity to tangible assets (non-GAAP) 8.50 % 8.23 % 8.25 % 8.39 % 8.16 %
                         
    (1) Calculated on a fully tax-equivalent basis.
    (2) Calculated as non-interest expense as a percentage of net interest income plus non-interest income.
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Balance Sheets (Unaudited)    		  
                         
      September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023    		  
    ASSETS (In Thousands Except Share Data)  
    Cash and due from banks $ 82,168   $ 60,067   $ 45,708   $ 34,514   $ 33,506  
    Short-term investments 325,721   283,017   256,178   98,513   127,495  
    Total cash and cash equivalents 407,889   343,084   301,886   133,027   161,001  
    Investment securities available-for-sale 855,391   856,439   865,798   916,601   880,412  
    Total investment securities 855,391   856,439   865,798   916,601   880,412  
    Allowance for investment security losses (186 ) (359 ) (398 ) (441 ) (517 )
    Net investment securities 855,205   856,080   865,400   916,160   879,895  
    Loans and leases held-for-sale —   —   6,717   —   —  
    Loans and leases:                    
    Commercial real estate loans 5,779,290   5,782,111   5,755,239   5,764,529   5,669,768  
    Commercial loans and leases 2,453,038   2,443,530   2,416,904   2,399,668   2,241,375  
    Consumer loans 1,522,908   1,495,496   1,482,943   1,477,392   1,469,639  
    Total loans and leases 9,755,236   9,721,137   9,655,086   9,641,589   9,380,782  
    Allowance for loan and lease losses (127,316 ) (121,750 ) (120,124 ) (117,522 ) (119,081 )
    Net loans and leases 9,627,920   9,599,387   9,534,962   9,524,067   9,261,701  
    Restricted equity securities 82,675   78,963   74,709   77,595   65,460  
    Premises and equipment, net of accumulated depreciation 86,925   88,378   89,707   89,853   90,476  
    Right-of-use asset operating leases 41,934   35,691   33,133   30,863   31,619  
    Deferred tax asset 50,827   60,032   60,484   56,952   74,491  
    Goodwill 241,222   241,222   241,222   241,222   241,222  
    Identified intangible assets, net of accumulated amortization 19,162   20,830   22,499   24,207   26,172  
    Other real estate owned and repossessed assets 1,579   1,974   1,817   1,694   299  
    Other assets 261,383   309,651   310,195   286,616   348,219  
    Total assets $ 11,676,721   $ 11,635,292   $ 11,542,731   $ 11,382,256   $ 11,180,555  
    LIABILITIES AND STOCKHOLDERS’ EQUITY                    
    Deposits:                    
    Demand checking accounts $ 1,681,858   $ 1,638,378   $ 1,629,371   $ 1,678,406   $ 1,745,137  
    NOW accounts 637,374   647,370   654,748   661,863   647,476  
    Savings accounts 1,736,989   1,735,857   1,727,893   1,669,018   1,625,804  
    Money market accounts 2,041,185   2,073,557   2,065,569   2,082,810   2,161,359  
    Certificate of deposit accounts 1,819,353   1,718,414   1,670,147   1,574,855   1,491,844  
    Brokered deposit accounts 815,512   923,460   970,925   881,173   894,393  
    Total deposits 8,732,271   8,737,036   8,718,653   8,548,125   8,566,013  
    Borrowed funds:                    
    Advances from the FHLB 1,345,003   1,265,079   1,150,153   1,223,226   899,304  
    Subordinated debentures and notes 84,293   84,258   84,223   84,188   84,152  
    Other borrowed funds 68,251   80,125   127,505   69,256   151,612  
    Total borrowed funds 1,497,547   1,429,462   1,361,881   1,376,670   1,135,068  
    Operating lease liabilities 43,266   37,102   34,235   31,998   32,807  
    Mortgagors’ escrow accounts 14,456   17,117   16,245   17,239   12,578  
    Reserve for unfunded credits 6,859   11,400   15,807   19,767   21,497  
    Accrued expenses and other liabilities 151,960   204,695   201,679   189,813   254,721  
    Total liabilities 10,446,359   10,436,812   10,348,500   10,183,612   10,022,684  
    Stockholders’ equity:                    
    Common stock, $0.01 par value; 200,000,000 shares authorized; 96,998,075 shares issued, 96,998,075 shares issued, 96,998,075 shares issued, 96,998,075 shares issued, and 96,998,075 shares issued, respectively 970   970   970   970   970  
    Additional paid-in capital 901,562   904,775   903,726   902,659   901,376  
    Retained earnings 453,555   445,560   441,285   438,722   427,937  
    Accumulated other comprehensive income (38,081 ) (61,693 ) (60,841 ) (52,798 ) (81,541 )
    Treasury stock, at cost;                    
    7,015,843, 7,373,009, 7,354,399, 7,354,399 and 7,350,981 shares, respectively (87,644 ) (91,132 ) (90,909 ) (90,909 ) (90,871 )
    Total stockholders’ equity 1,230,362   1,198,480   1,194,231   1,198,644   1,157,871  
    Total liabilities and stockholders’ equity $ 11,676,721   $ 11,635,292   $ 11,542,731   $ 11,382,256   $ 11,180,555  
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Statements of Income (Unaudited)
      Three Months Ended
      September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
      (In Thousands Except Share Data)
    Interest and dividend income:                  
    Loans and leases $ 149,643   $ 145,585   $ 145,265   $ 142,948   $ 136,561
    Debt securities 6,473   6,480   6,878   6,945   6,799
    Restricted equity securities 1,458   1,376   1,492   1,333   1,310
    Short-term investments 1,986   1,914   1,824   1,093   2,390
    Total interest and dividend income 159,560   155,355   155,459   152,319   147,060
    Interest expense:                  
    Deposits 59,796   59,721   56,884   54,034   49,116
    Borrowed funds 16,756   15,633   16,987   14,730   13,874
    Total interest expense 76,552   75,354   73,871   68,764   62,990
    Net interest income 83,008   80,001   81,588   83,555   84,070
    Provision for credit losses on loans 4,832   5,607   7,423   3,851   2,947
    Provision (credit) for credit losses on investments (172 ) (39 ) (44 ) (76 ) 84
    Net interest income after provision for credit losses 78,348   74,433   74,209   79,780   81,039
    Non-interest income:                  
    Deposit fees 2,353   3,001   2,897   3,064   3,024
    Loan fees 464   702   789   515   639
    Loan level derivative income, net —   106   437   778   376
    Gain on sales of loans and leases held-for-sale 415   130   —   410   225
    Other 3,116   2,457   2,161   3,260   1,244
    Total non-interest income 6,348   6,396   6,284   8,027   5,508
    Non-interest expense:                  
    Compensation and employee benefits 35,130   34,762   36,629   35,401   33,491
    Occupancy 5,343   5,551   5,769   5,127   4,983
    Equipment and data processing 6,831   6,732   7,031   7,245   6,766
    Professional services 2,143   1,745   1,900   1,442   2,368
    FDIC insurance 2,118   2,025   1,884   1,839   2,152
    Advertising and marketing 859   1,504   1,574   758   1,174
    Amortization of identified intangible assets 1,668   1,669   1,708   1,965   1,955
    Merger and restructuring expense —   823   —   —   —
    Other 3,856   4,373   4,519   5,467   4,790
    Total non-interest expense 57,948   59,184   61,014   59,244   57,679
    Income before provision for income taxes 26,748   21,645   19,479   28,563   28,868
    Provision for income taxes 6,606   5,273   4,814   5,675   6,167
    Net income $ 20,142   $ 16,372   $ 14,665   $ 22,888   $ 22,701
    Earnings per common share:                  
    Basic $ 0.23   $ 0.18   $ 0.16   $ 0.26   $ 0.26
    Diluted $ 0.23   $ 0.18   $ 0.16   $ 0.26   $ 0.26
    Weighted average common shares outstanding during the period:                  
    Basic 89,033,463   88,904,692   88,894,577   88,867,159   88,795,270
    Diluted 89,319,611   89,222,315   89,181,508   89,035,505   88,971,210
    Dividends paid per common share $ 0.135   $ 0.135   $ 0.135   $ 0.135   $ 0.135
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Statements of Income (Unaudited)
     
      Nine Months Ended September 30,
      2024   2023
      (In Thousands Except Share Data)
    Interest and dividend income:      
    Loans and leases $            440,493   $            390,791
    Debt securities 19,831   22,703
    Restricted equity securities 4,326   4,238
    Short-term investments 5,724   7,236
    Total interest and dividend income 470,374   424,968
    Interest expense:      
    Deposits 176,401   121,631
    Borrowed funds 49,376   47,181
    Total interest expense 225,777   168,812
    Net interest income 244,597   256,156
    Provision for credit losses on loans 17,862   34,017
    Provision (credit) for credit losses on investments (255 ) 415
    Net interest income after provision for credit losses 226,990   221,724
    Non-interest income:      
    Deposit Fees 8,251   8,547
    Loan Fees 1,955   1,521
    Loan level derivative income, net 543   3,112
    Gain on investment securities, net —   1,704
    Gain on sales of loans and leases held-for-sale 545   2,171
    Other 7,734   6,852
    Total non-interest income 19,028   23,907
    Non-interest expense:      
    Compensation and employee benefits 106,521   103,494
    Occupancy 16,663   15,076
    Equipment and data processing 20,594   19,759
    Professional services 5,788   5,784
    FDIC insurance 6,027   6,005
    Advertising and marketing 3,937   3,966
    Amortization of identified intangible assets 5,045   5,875
    Merger and restructuring expense 823   7,411
    Other 12,748   12,910
    Total non-interest expense 178,146   180,280
    Income before provision for income taxes 67,872   65,351
    Provision for income taxes 16,693   13,240
    Net income $              51,179   $              52,111
    Earnings per common share:      
    Basic $                  0.58   $                  0.59
    Diluted $                  0.57   $                  0.59
    Weighted average common shares outstanding during the period:      
    Basic 88,944,569   88,016,190
    Diluted 89,241,470   88,253,361
    Dividends paid per common share $                0.405   $                0.405
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Asset Quality Analysis (Unaudited)
    		  
      At and for the Three Months Ended  
      September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023    		  
      (Dollars in Thousands)  
    NONPERFORMING ASSETS:                    
    Loans and leases accounted for on a nonaccrual basis:                    
    Commercial real estate mortgage $                       11,595   $             11,659   $             18,394   $                      19,608   $                       23,263  
    Multi-family mortgage 1,751   —   —   —   1,318  
    Construction —   —   —   —   2,316  
    Total commercial real estate loans 13,346   11,659   18,394   19,608   26,897  
                         
    Commercial 15,734   16,636   3,096   3,886   5,406  
    Equipment financing 37,223   27,128   13,668   14,984   13,974  
    Total commercial loans and leases 52,957   43,764   16,764   18,870   19,380  
                         
    Residential mortgage 3,862   4,495   4,563   4,292   4,249  
    Home equity 1,076   790   950   860   713  
    Other consumer 1   1   1   —   2  
    Total consumer loans 4,939   5,286   5,514   5,152   4,964  
                         
    Total nonaccrual loans and leases 71,242   60,709   40,672   43,630   51,241  
                         
    Other real estate owned 780   780   780   780   —  
    Other repossessed assets 799   1,194   1,037   914   299  
    Total nonperforming assets $                       72,821   $             62,683   $             42,489   $                      45,324   $                       51,540  
                         
    Loans and leases past due greater than 90 days and still accruing $                       16,091   $               4,994   $                  363   $                           228   $                         1,175  
                         
    Nonperforming loans and leases as a percentage of total loans and leases 0.73 % 0.62 % 0.42 % 0.45 % 0.55 %
    Nonperforming assets as a percentage of total assets 0.62 % 0.54 % 0.37 % 0.40 % 0.46 %
                         
    PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:                    
    Allowance for loan and lease losses at beginning of period $                     121,750   $           120,124   $           117,522   $                    119,081   $                     125,817  
    Charge-offs (4,183 ) (8,823 ) (5,390 ) (7,722 ) (10,978 )
    Recoveries 375   436   309   581   4  
    Net charge-offs (3,808 ) (8,387 ) (5,081 ) (7,141 ) (10,974 )
    Provision for loan and lease losses excluding unfunded commitments * 9,374   10,013   7,683   5,582   4,238  
    Allowance for loan and lease losses at end of period $                     127,316   $           121,750   $           120,124   $                    117,522   $                     119,081  
                         
    Allowance for loan and lease losses as a percentage of total loans and leases 1.31 % 1.25 % 1.24 % 1.22 % 1.27 %
                         
    NET CHARGE-OFFS:                    
    Commercial real estate loans $ —   $               3,819   $                  606   $                        1,087   $                               (3 )
    Commercial loans and leases ** 3,797   4,571   8,179   6,061   10,958  
    Consumer loans 11   (3 ) (4 ) (7 ) 19  
    Total net charge-offs $                         3,808   $               8,387   $               8,781   $                        7,141   $                       10,974  
                         
    Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.16 % 0.35 % 0.36 % 0.30 % 0.47 %
                         
    *Provision for loan and lease losses does not include (credit) provision of $(4.5 million), $(4.4 million), $(0.3 million), $(1.7 million), and $(1.3) million for credit losses on unfunded commitments during the three months ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively.
    ** The balance at March 31, 2024 includes a $3.7 million charge-off on a letter of credit which impacted the provision.
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Average Yields / Costs (Unaudited)
      Three Months Ended
      September 30, 2024   June 30, 2024   September 30, 2023  
      Average
    Balance    		 Interest
    (1)    		 Average
    Yield/
    Cost    		   Average
    Balance    		 Interest
    (1)    		 Average
    Yield/
    Cost    		   Average
    Balance    		 Interest
    (1)    		 Average
    Yield/
    Cost    		  
      (Dollars in Thousands)
    Assets:                        
    Interest-earning assets:                        
    Investments:                        
    Debt securities (2) $      853,924 $     6,516 3.05 % $      846,469 $     6,510 3.08 % $      887,612 $     6,840 3.08 %
    Restricted equity securities (2) 75,225 1,459 7.76 % 71,696 1,375 7.67 % 67,824 1,310 7.73 %
    Short-term investments 145,838 1,986 5.44 % 143,800 1,914 5.33 % 172,483 2,390 5.54 %
    Total investments 1,074,987 9,961 3.71 % 1,061,965 9,799 3.69 % 1,127,919 10,540 3.74 %
    Loans and Leases:                        
    Commercial real estate loans (3) 5,772,456 83,412 5.65 % 5,754,901 81,565 5.61 % 5,667,373 78,750 5.44 %
    Commercial loans (3) 1,079,084 18,440 6.69 % 1,069,154 17,672 6.54 % 939,492 15,295 6.38 %
    Equipment financing (3) 1,353,649 26,884 7.94 % 1,374,217 26,255 7.64 % 1,280,033 23,331 7.29 %
    Consumer loans (3) 1,505,095 21,123 5.60 % 1,488,587 20,291 5.46 % 1,471,985 19,237 5.21 %
    Total loans and leases 9,710,284 149,859 6.17 % 9,686,859 145,783 6.02 % 9,358,883 136,613 5.84 %
    Total interest-earning assets 10,785,271 159,820 5.93 % 10,748,824 155,582 5.79 % 10,486,802 147,153 5.61 %
    Non-interest-earning assets 666,067       704,570       693,833      
    Total assets $ 11,451,338       $ 11,453,394       $ 11,180,635      
                             
    Liabilities and Stockholders’ Equity:                        
    Interest-bearing liabilities:                        
    Deposits:                        
    NOW accounts $      639,561 1,115 0.69 % $      659,351 1,111 0.68 % $      681,929 1,159 0.67 %
    Savings accounts 1,738,756 12,098 2.77 % 1,731,388 11,874 2.76 % 1,557,911 8,859 2.26 %
    Money market accounts 2,038,048 15,466 3.02 % 2,026,780 15,520 3.08 % 2,177,528 15,785 2.88 %
    Certificates of deposit 1,768,026 20,054 4.51 % 1,699,510 18,717 4.43 % 1,444,269 12,128 3.33 %
    Brokered deposit accounts 841,067 11,063 5.23 % 958,146 12,499 5.25 % 882,351 11,185 5.03 %
    Total interest-bearing deposits 7,025,458 59,796 3.39 % 7,075,175 59,721 3.39 % 6,743,988 49,116 2.89 %
    Borrowings                        
    Advances from the FHLB 1,139,049 14,366 4.94 % 1,049,609 12,894 4.86 % 954,989 11,706 4.80 %
    Subordinated debentures and notes 84,276 1,378 6.54 % 84,241 1,375 6.53 % 84,134 1,378 6.55 %
    Other borrowed funds 53,102 1,012 7.58 % 103,753 1,364 5.29 % 117,531 790 2.67 %
    Total borrowings 1,276,427 16,756 5.14 % 1,237,603 15,633 5.00 % 1,156,654 13,874 4.69 %
    Total interest-bearing liabilities 8,301,885 76,552 3.67 % 8,312,778 75,354 3.65 % 7,900,642 62,990 3.16 %
    Non-interest-bearing liabilities:                        
    Demand checking accounts 1,669,092       1,646,869       1,794,225      
    Other non-interest-bearing liabilities 264,324       300,362       318,041      
    Total liabilities 10,235,301       10,260,009       10,012,908      
    Stockholders’ equity 1,216,037       1,193,385       1,167,727      
    Total liabilities and equity $ 11,451,338       $ 11,453,394       $ 11,180,635      
    Net interest income (tax-equivalent basis) /Interest-rate spread (4)   83,268 2.26 %   80,228 2.14 %   84,163 2.45 %
    Less adjustment of tax-exempt income   260       227       93    
    Net interest income   $   83,008       $   80,001       $   84,070    
    Net interest margin (5)     3.07 %     3.00 %     3.18 %
                             
    (1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
    (2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
    (3) Loans on nonaccrual status are included in the average balances.
    (4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
    (5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis.
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Average Yields / Costs (Unaudited)
      Nine Months Ended
      September 30, 2024   September 30, 2023  
      Average
    Balance    		 Interest
    (1)    		 Average
    Yield/
    Cost    		   Average
    Balance    		 Interest
    (1)    		 Average
    Yield/
    Cost    		  
      (Dollars in Thousands)
    Assets:                
    Interest-earning assets:                
    Investments:                
    Debt securities (2) $                   864,501 $   19,953 3.08 % $      971,855 $   22,905 3.14 %
    Restricted equity securities (2) 74,422 4,327 7.75 % 74,000 4,238 7.64 %
    Short-term investments 140,156 5,724 5.44 % 183,295 7,236 5.26 %
    Total investments 1,079,079 30,004 3.71 % 1,229,150 34,379 3.73 %
    Loans and Leases:                
    Commercial real estate loans (3) 5,763,065 246,026 5.61 % 5,629,600 225,999 5.29 %
    Commercial loans (3) 1,058,312 53,619 6.66 % 915,420 42,814 6.17 %
    Equipment financing (3) 1,367,380 80,034 7.80 % 1,253,512 66,901 7.12 %
    Consumer loans (3) 1,492,213 61,392 5.49 % 1,469,025 55,210 5.01 %
    Total loans and leases 9,680,970 441,071 6.07 % 9,267,557 390,924 5.62 %
    Total interest-earning assets 10,760,049 471,075 5.84 % 10,496,707 425,303 5.40 %
    Non-interest-earning assets 678,235       698,273      
    Total assets $              11,438,284       $ 11,194,980      
                     
    Liabilities and Stockholders’ Equity:                
    Interest-bearing liabilities:                
    Deposits:                
    NOW accounts $                   656,879 3,487 0.71 % $      741,951 3,129 0.56 %
    Savings accounts 1,721,518 35,324 2.74 % 1,365,541 17,290 1.69 %
    Money market accounts 2,047,011 46,940 3.06 % 2,227,404 41,914 2.52 %
    Certificates of deposit 1,697,477 55,443 4.36 % 1,394,338 29,605 2.84 %
    Brokered deposit accounts 898,455 35,207 5.23 % 798,800 29,693 4.97 %
    Total interest-bearing deposits 7,021,340 176,401 3.36 % 6,528,034 121,631 2.49 %
    Borrowings                
    Advances from the FHLB 1,117,809 41,893 4.92 % 1,135,845 40,524 4.70 %
    Subordinated debentures and notes 84,241 4,130 6.54 % 84,098 4,095 6.49 %
    Other borrowed funds 83,195 3,353 5.38 % 120,825 2,562 2.83 %
    Total borrowings 1,285,245 49,376 5.05 % 1,340,768 47,181 4.64 %
    Total interest-bearing liabilities 8,306,585 225,777 3.63 % 7,868,802 168,812 2.87 %
    Non-interest-bearing liabilities:                
    Demand checking accounts 1,646,932       1,857,429      
    Other non-interest-bearing liabilities 280,947       301,543      
    Total liabilities 10,234,464       10,027,774      
    Stockholders’ equity 1,203,820       1,167,206      
    Total liabilities and equity $              11,438,284       $ 11,194,980      
    Net interest income (tax-equivalent basis) /Interest-rate spread (4)   245,298 2.21 %   256,491 2.53 %
    Less adjustment of tax-exempt income   701       335    
    Net interest income   $ 244,597       $ 256,156    
    Net interest margin (5)     3.05 %     3.27 %
                     
    (1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
    (2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
    (3) Loans on nonaccrual status are included in the average balances.
    (4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
    (5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis.
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Non-GAAP Financial Information (Unaudited)
                  At and for the Nine Months Ended 
     September 30,
    		  
                  2024   2023  
    Reconciliation Table – Non-GAAP Financial Information           (Dollars in Thousands Except Share Data)  
                       
    Reported Pretax Income           $                      67,872   $                       65,351  
    Less:                    
    Security gains           —   1,704  
    Add:                    
    Day 1 PCSB CECL provision           —   16,744  
    Merger and restructuring expense           823   7,411  
    Operating Pretax Income             $                      68,695   $                       87,802  
    Effective tax rate             24.6 % 20.3 %
    Provision for income taxes             16,895   17,789  
    Operating earnings after tax           $                      51,800   $                       70,013  
                         
    Operating earnings per common share:                    
    Basic             $                          0.58   $                           0.80  
    Diluted             $                          0.58   $                           0.79  
                         
    Weighted average common shares outstanding during the period:                  
    Basic             88,944,569   88,016,190  
    Diluted             89,241,470   88,253,361  
                         
    Return on average assets *           0.60 % 0.62 %
    Less:                    
    Security gains (after-tax) *           — %  0.02 %
    Add:                    
    Day 1 PCSB CECL provision (after-tax) *           — % 0.16 %
    Merger and restructuring expense (after-tax) *           0.01 % 0.07 %
    Operating return on average assets *           0.61 % 0.83 %
                         
    Return on average tangible assets *           0.61 % 0.64 %
    Less:                    
    Security gains (after-tax) *           — %  0.02 %
    Add:                    
    Day 1 PCSB CECL provision (after-tax) *           — %  0.16 %
    Merger and restructuring expense (after-tax) *           0.01 % 0.07 %
    Operating return on average tangible assets *           0.62 % 0.85 %
                         
                         
    Return on average stockholders’ equity *           5.67 % 5.95 %
    Less:                    
    Security gains (after-tax) *           — %  0.16 %
    Add:                    
    Day 1 PCSB CECL provision (after-tax) *           — % 1.53 %
    Merger and restructuring expense (after-tax) *           0.07 % 0.68 %
    Operating return on average stockholders’ equity *           5.74 % 8.00 %
                         
                         
    Return on average tangible stockholders’ equity *           7.25 % 7.76 %
    Less:                    
    Security gains (after-tax) *           — %  0.20 %
    Add:                    
    Day 1 PCSB CECL provision (after-tax) *           — % 1.99 %
    Merger and restructuring expense (after-tax) *           0.09 % 0.88 %
    Operating return on average tangible stockholders’ equity *           7.34 % 10.43 %
                         
    * Ratios at and for the nine months ended are annualized.
    There was no non-operating activity for the three months ended September 30, 2024 and September 30,2023, respectively.
       
      At and for the Three Months Ended
      September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023    		  
      (Dollars in Thousands)
                                   
    Net income, as reported $                       20,142   $                 16,372   $                 14,665   $                      22,888   $                       22,701  
                         
    Average total assets $                11,451,338   $          11,453,394   $          11,417,185   $               11,271,941   $                11,180,635  
    Less: Average goodwill and average identified intangible assets, net 261,188   262,859   264,536   266,225   268,199  
    Average tangible assets $                11,190,150   $          11,190,535   $          11,152,649   $               11,005,716   $                10,912,436  
                         
    Return on average tangible assets (annualized) 0.72 % 0.59 % 0.53 % 0.83 % 0.83 %
                         
    Average total stockholders’ equity $                  1,216,037   $            1,193,385   $            1,201,904   $                 1,170,776   $                  1,167,727  
    Less: Average goodwill and average identified intangible assets, net 261,188   262,859   264,536   266,225   268,199  
    Average tangible stockholders’ equity $                     954,849   $               930,526   $               937,368   $                    904,551   $                     899,528  
                         
    Return on average tangible stockholders’ equity (annualized) 8.44 % 7.04 % 6.26 % 10.12 % 10.09 %
                         
    Total stockholders’ equity $                  1,230,362   $            1,198,480   $            1,194,231   $                 1,198,644   $                  1,157,871  
    Less:                    
    Goodwill 241,222   241,222   241,222   241,222   241,222  
    Identified intangible assets, net 19,162   20,830   22,499   24,207   26,172  
    Tangible stockholders’ equity $                     969,978   $               936,428   $               930,510   $                    933,215   $                     890,477  
                         
    Total assets $                11,676,721   $          11,635,292   $          11,542,731   $               11,382,256   $                11,180,555  
    Less:                    
    Goodwill 241,222   241,222   241,222   241,222   241,222  
    Identified intangible assets, net 19,162   20,830   22,499   24,207   26,172  
    Tangible assets $                11,416,337   $          11,373,240   $          11,279,010   $               11,116,827   $                10,913,161  
                         
    Tangible stockholders’ equity to tangible assets 8.50 % 8.23 % 8.25 % 8.39 % 8.16 %
                         
    Tangible stockholders’ equity $                     969,978   $               936,428   $               930,510   $                    933,215   $                     890,477  
                         
    Number of common shares issued 96,998,075   96,998,075   96,998,075   96,998,075   96,998,075  
    Less:                    
    Treasury shares 7,015,843   7,373,009   7,354,399   7,354,399   7,350,981  
    Unvested restricted shares 883,789   713,443   749,099   749,099   780,859  
    Number of common shares outstanding 89,098,443   88,911,623   88,894,577   88,894,577   88,866,235  
                         
    Tangible book value per common share $                         10.89   $                   10.53   $                   10.47   $                        10.50   $                         10.02  
                                   

    PDF available: http://ml.globenewswire.com/Resource/Download/6045e36a-2e9d-4b3a-b6a1-f895169b0f2d

    The MIL Network –

  • MIL-OSI Security: Oahu Man Sentenced to Over 16 Years in Federal Prison for Drug Trafficking And Illegal Gambling Charges

    Source: Office of United States Attorneys

    HONOLULU – Acting United States Attorney Kenneth M. Sorenson announced that Maliu Tauheluhelu, 40, of Honolulu, was sentenced yesterday in federal court by U.S. District Judge Jill A. Otake to 200 months of imprisonment followed by 5 years of supervised release, for conspiring to distribute methamphetamine and cocaine, and conspiring to operate illegal gambling businesses. Tauheluhelu pleaded guilty to two counts of an Indictment on February 15, 2024.

    Tauheluhelu admitted to conspiring with his co-defendants, Maafu Pani, Touanga Niu, and Desmond Morris, to possessing with intent to distribute methamphetamine and cocaine between 2020 and 2022. Tauheluhelu obtained multi-pound shipments of methamphetamine and cocaine on Oahu and arranged for its distribution throughout Hawaii, including to Maui.

    Tauheluhelu admitted that during this same time period, he, Pani, and Niu also conspired to operate illegal gambling businesses on Oahu and Maui. Tauheluhelu operated multiple illegal gambling businesses on Oahu, including one at 980 Queen Street, and a “VIP room” operating out of Tauheluhelu’s Staxx Sports Bar & Grill location in Waianae.

    Pani, Niu, and Morris each pled guilty to federal felonies and were sentenced earlier in 2024 for their roles in the conspiracy. Pani was sentenced to 192 months of imprisonment, Niu was sentenced to 30 months of imprisonment, and Morris was sentenced to 72 months of imprisonment.

    “This sentence demonstrates that those who traffic dangerous drugs and operate illegal game rooms will face serious consequences,” stated Acting U.S. Attorney Sorenson. “We are committed to holding criminal enterprises accountable and protecting our community from the destruction caused by drugs like methamphetamine. Illegal game rooms, like those run by Tauheluhelu, are magnets for violence and criminal activity. This outcome is the result of exceptional coordination and effort by our federal, state, and local law enforcement partners.”

    “Yesterday’s sentencing reflects years of collaboration among multiple law enforcement agencies to dismantle a dangerous criminal organization,” said FBI Honolulu Special Agent in Charge David Porter. “The FBI—in coordination with our partners across all levels of government—will continue to use every available resource to protect our communities and bring these criminal enterprises to justice.”

    “Our collective efforts send a clear and decisive message: criminal enterprises that exploit and endanger our communities should think twice, as there is zero tolerance for such actions,” said Maui Chief of Police John Pelletier. “We are deeply grateful to our federal partners—FBI Honolulu and the DEA—and to the dedicated MPD officers and personnel who worked tirelessly to bring this operation to a successful conclusion. This achievement was made possible by the unwavering commitment, shared resources, and intelligence of all the involved agencies, reaffirming our dedication to keeping our communities safe for residents and visitors.”

    This prosecution was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

    This case was investigated by the Federal Bureau of Investigation and Task Force Officers from the Maui Police Department, with assistance from the Maui Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Drug Enforcement Administration.

    Assistant U.S. Attorney Margaret Nammar prosecuted the case.

    MIL Security OSI –

  • MIL-OSI Security: Wapato Man Sentenced to Prison for Making Unlawful Sexual Contact with a 13-Year-Old Child

    Source: Office of United States Attorneys

    Yakima, Washington – United States Attorney Vanessa Waldref announced that on January 24, 2025, United States District Judge Mary K. Dimke sentenced Geordell Devon Arthur, age 23, of Wapato, Washington, to 12 months in federal prison on one count of unlawful sexual contact. Judge Dimke also imposed 5 years of supervised release. Arthur will be required to register as a sex offender. At sentencing, Arthur faced a maximum sentence of two years imprisonment, and he was sentenced within the applicable sentencing guidelines range for his offense.

    According to court documents and information presented at the sentencing hearing, Arthur, who was 19 at the time, made unlawful sexual contact with a 13-year-old girl at a location on the Yakama Nation Indian Reservation on or around May 10, 2021. The victim explained to investigators that Arthur’s friends confronted the victim and threatened her with harm if she spoke to law enforcement.

    “The harm to victims in cases like these cannot be understated,” said U.S. Attorney Waldref. “It takes courage for victims to come forward, especially when an abuser attempts to silence them. My office is committed to prioritizing offenses against our community’s youngest and most vulnerable victims.”

    “Mr. Arthur assaulted and then tried to intimidate his victim into silence.” said W. Mike Herrington, Special Agent in Charge of the FBI’s Seattle field office. “However, she displayed courage instead of fear and now her attacker is headed to prison. I applaud her actions as well as those of the investigators who seek justice for victims of these appalling crimes.”

    The FBI and the Yakama Nation Police Department investigated the case. Assistant United States Attorney Michael Murphy prosecuted the case.

    1:24-CR-2050-MKD

    MIL Security OSI –

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

    US Senate News:

    Source: United States Senator for Iowa Chuck Grassley

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

    Audio and excerpts of the interview follow.

    On Kash Patel and President Trump’s nominees:

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

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

    On immigration policy, the Laken Riley Act and deportations:

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

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

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

    On reconciliation:

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

    On presidential pardons:

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

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

    On the importance of bipartisanship:

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

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

    On Grassley’s personal priorities:

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

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

    -30-

    MIL OSI USA News –

  • MIL-OSI USA: Duckworth Joins Warren, Fellow Senate Armed Services Committee Democrats in Joint Statement on New Hegseth Report

    US Senate News:

    Source: United States Senator for Illinois Tammy Duckworth
    January 22, 2025
    [WASHINGTON, D.C.] – U.S. Senators Tammy Duckworth (D-IL)—a member of the U.S. Senate Armed Services Committee—joined U.S. Senators Elizabeth Warren (D-MA), Tim Kaine (D-VA), Mark Kelly (D-AZ), Mazie Hirono (D-HI), Richard Blumenthal (D-CT), Jeanne Shaheen (D-NH) and Kirsten Gillibrand (D-NY) in releasing the following statement on the sworn affidavit containing abuse allegations against Pete Hegseth, nominee for U.S. Secretary of Defense:
    “In a sworn statement under the penalty of perjury, a new report shows U.S. Defense Secretary nominee Pete Hegseth was ‘erratic and aggressive’ toward his second wife over many years, to the point that she feared for her safety. The report also details repeated instances of his drinking alcohol in excess, including the need to be dragged out of a strip club while in uniform. This affidavit is part of a disturbing pattern of behavior that has been documented through numerous public and private reports. The affidavit also raises additional questions about the thoroughness of his FBI background check during a rushed confirmation process.
    “Despite repeated requests, Mr. Hegseth has refused to meet with the vast majority of  Democratic members of the Senate Armed Services Committee. We request that Mr. Hegseth meet privately with every interested lawmaker on the committee before the Senate votes on his nomination so that we can have frank discussions about the new information that has come to light. It would be irresponsible and contrary to our constitutional duty for the Senate to vote to confirm this nomination before such meetings have occurred.”
    -30-

    MIL OSI USA News –

  • MIL-OSI Security: FBI Cleveland Shares Human Trafficking Awareness and Guidance

    Source: Federal Bureau of Investigation (FBI) State Crime News

    CLEVELAND, OH—January is Human Trafficking Prevention Month, a time to shed light and raise awareness in our communities about a prevalent crime that violates the most basic of human rights—freedom.

    Human trafficking is the illegal exploitation of a person. Anyone can be a victim of human trafficking, and it can occur in any U.S. community—cities, suburbs, and even rural areas.

    Human trafficking is the exploitation of human beings for profit. Whether it’s domestic servitude, forced labor, or sex trafficking of children and adults, it is a borderless crime without regard to who, what, or where the victims come from.

    • As of July 15, 2024, the FBI has more than 1,660 pending human trafficking investigations, with cases in each of the FBI’s 56 field offices. Over 93 percent of the FBI’s human trafficking cases involved sex trafficking, with labor trafficking investigations accounting for over six percent.
      • These numbers may be misleading. Labor trafficking is traditionally harder to detect because the underlying labor—such as work performed in hair and nail salons, in restaurants, and by sanitation companies—is normally not illegal.
    • In Fiscal Year (FY) 2023, the FBI initiated 664 human trafficking cases and conducted 145 federal arrests associated with human trafficking cases.
    • Of the 145 federal arrests, 85 were for federal human trafficking crimes (e.g., violations of 18 U.S.C. § 1591 [sex trafficking of children] or § 1594 [conspiracy to sex traffic children]), and 60 were for other federal non-trafficking charges (e.g., 18 U.S.C. § 2422 [coercion and enticement of a minor] or § 2423(a) [transportation of minors], or a variety of other federal criminal violations, such as 18 U.S.C. § 922(g) [felon in possession of a weapon]).
    • The FBI investigates all forms of human trafficking, regardless of the victim’s age or nationality.

    “Human trafficking is happening across the United States and worldwide, robbing victims of a peaceful life while degrading their existence to a world of dependence. Northern Ohio is not exempt from these dreadful crimes,” said FBI Special Agent in Charge Greg Nelsen.

    The FBI works human trafficking cases under its Crimes Against Children and Human Trafficking program. Here in the United States, both U.S. residents and foreign nationals are being bought and sold like modern-day slaves. Traffickers use violence, manipulation, or false promises of well-paying jobs or romantic relationships to exploit victims. Victims are forced to work as prostitutes or to take jobs as migrant, domestic, restaurant, or factory workers with little or no pay. Human trafficking is a heinous crime that exploits the most vulnerable in society.

    “The FBI is laser-focused on finding and identifying the perpetrators associated with human trafficking organizations and stands lockstep with its federal, state, and local partners to not only ensure the safe recovery of survivors, but also collaborate with trauma-informed service providers to protect survivors and connect them with the resources and support that they need and deserve,” Nelsen added.

    Under the human trafficking program, the FBI investigates:

    • Sex trafficking: When individuals are compelled by force, fraud, or coercion to engage in commercial sex acts. Sex trafficking of a minor occurs when the victim is under the age of 18. For cases involving minors, it is not necessary to prove force, fraud, or coercion.
    • Labor trafficking: When individuals are compelled by force, threats, or fraud to perform labor or service.
    • Domestic servitude: When individuals within a household appear to be nannies, housekeepers, or other types of domestic workers, but they are being controlled and exploited.

    Indicators of Human Trafficking

    • Individuals may be victims of human trafficking if:
      • They work in the same place they live.
      • They have poor living conditions.
      • They let someone else speak for them or appear to be coached on what to say.
      • They are not in possession of their own travel, immigration, or personal documents.
      • There are locks on the outside of doors where they live, rather than inside.
      • They have increasing debt.
      • Their boss takes their pay.
      • They pay their boss for food, clothing, and rent.
      • They are not free to leave.
      • Someone is always watching or guarding them.
      • They are not free to contact family or friends.
      • Their boss threatens them.
      • They are lied to about the work they will be performing.
    • Additional signs of sex trafficking, especially of minors, include:
      • Frequent missing incidents or running away.
      • Signs of sexual or physical abuse.
      • Symptoms of neglect, such as malnourishment.
      • Having unexplained hotel keys, prepaid cards, or items inconsistent with their socioeconomic status.
      • Multiple hotel reservations under one name for an extended period of time with little or no luggage.
      • Frequent absences from school or withdrawing from previously enjoyed activities.
      • Abrupt disconnection from family and friends.
      • Being overly frightened, annoyed, resistant, or belligerent to authority figures.
    • Even if someone seems free to come and go as they please, they may still be a victim of human trafficking: the coercion to remain may be more psychological than physical.
      • One indicator is whether the potential victim feels free to leave the situation.
      • The potential victims may also be overly reliant on someone else for their physical and/or emotional needs.
    • Human trafficking victims are often subjected to debt bondage, in which traffickers demand labor to repay debt.
      • Traffickers may charge the victims fees for housing, food, transportation, and other needs.
      • They may levy interest and fines for missing daily work quotas.
      • Traffickers may also charge for passage to the United States, and then force workers into labor or sex trafficking once they arrive.
      • Debt bondage traps a victim in a cycle of debt that can never be paid down, and it can be part of a larger scheme of psychological coercion.

    Report Trafficking & Get Help If you are a human trafficking victim or have information about a potential trafficking situation, call the National Human Trafficking Resource Center (NHTRC) at 1-888-373-7888 or text 233733. NHTRC is a national, toll-free hotline, with specialists available to answer calls from anywhere in the country, 24 hours a day, seven days a week. You can also submit a tip on the NHTRC website.

    If you believe a child is involved in a trafficking situation, submit a tip through the National Center for Missing & Exploited Children’s CyberTipline or call 1-800-THE-LOST. FBI personnel assigned to NCMEC review information that is provided to the CyberTipline.

    Additional information can be found at Fbi.gov/humantrafficking

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  • MIL-OSI Security: FBI Akron and Hudson Police Release New Images Related to Bank Robbery

    Source: Federal Bureau of Investigation (FBI) State Crime News

    AKRON, OH—The FBI Akron Resident Agency and the Hudson Police Department are renewing their request seeking the public’s assistance in identifying a male subject in connection to an April 6, 2024 robbery at Key Bank, 120 W. Streetsboro Street, Hudson. The request comes as law enforcement recently released images of the vehicle the robbery suspect entered when he fled the bank.

    The vehicle is described as a dark color Kia Sorento SUV. There is reason to believe the suspect was driven to and from the bank by an accomplice. The FBI is asking anyone with information about the suspect, the vehicle, or potential accomplice(s) to the crime, to contact the FBI.

    The subject is described as:

    • White Male
    • Approximately 6 feet tall
    • Wearing a dark jacket, blue jeans, black hat, black medical mask, and black sneakers.

    On April 6, 2024, at approximately 10:29 a.m., the subject entered the bank, approached the victim teller, and produced a demand note. He then fled the bank with an undisclosed amount of money and entered the Kia Sorento SUV.

    The FBI encourages anyone with information to contact the FBI at 1-800-CALL-FBI (1-800-225-5324). Your identity can remain anonymous when submitting tips to the FBI.

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  • MIL-OSI Security: Alpha Influence Ringleader Admits to Defrauding Investors of Over $20 Million

    Source: Federal Bureau of Investigation (FBI) State Crime News

    SALT LAKE CITY, Utah – A Utah businessman pleaded guilty today to securities fraud and money laundering after admitting he lied to investors and fraudulently sold investment contracts, which are securities, through his company Alpha Influence, LLC for “Alpha Automated Stores.”

    Jeremiah Joseph Evans “The Bull,” 29, of Utah County, was charged by felony information on January 21, 2025.

    According to court documents and admissions made at the change of plea hearing, from July 2019 to July 2022, Evans fraudulently sold investments in e-commerce stores through Alpha Influence, LLC., a registered Utah corporation. As part of the scheme to defraud, Evans promised investors to secure money in exchange for the Alpha investments. Evans fraudulently obtained approximately $20,894,674 from approximately 530 investors. As alleged in court documents, Evans lied to investors about how successful his company was and how long it was in operation. Evans sold the e-commerce stores to purchasers as a passive investment and promised that the stores would make consistent, predictable, monthly returns despite knowing this was false. He failed to disclose that the majority of the invested funds went directly to Alpha Influence, LLC, and were primarily distributed as commissions to those selling the fraudulent investment and himself, with only a small portion sent to the servicer of the investors’ stores.

    Evans is scheduled to be sentenced April 3, 2025, at 1:30 p.m. before a U.S. District Court Judge at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City.

    U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement.

    The case is being investigated jointly by the Utah Division of Securities and the FBI Salt Lake City Field Office.

    Assistant United States Attorneys Mark Woolf, Brian Williams, and Jennifer E. Gully of the U.S. Attorney’s Office for the District of Utah are prosecuting the case.
     

    Release No. 25-05

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  • MIL-OSI Security: Large-Scale Nuclear Training Exercise to Take Place in Schenectady, New York

    Source: Federal Bureau of Investigation FBI Crime News (b)

    From January 26-31, 2025, a large-scale, multi-agency nuclear incident training exercise will take place in the vicinity of Schenectady, New York, and surrounding counties of Albany, Saratoga, and Schenectady. The training exercise will not pose any risk to area residents; the public does not need to be alarmed by training-related activity, including the presence of military personnel and aircraft, and people in protective equipment.

    The Departments of Defense (DoD), Department of Energy (DOE) National Nuclear Security Administration (NNSA), Federal Bureau of Investigation (FBI), Department of Homeland Security (DHS), and state and local partners will conduct the exercise in several areas of Schenectady and Albany, Saratoga, and Schenectady Counties as part of a series of regularly scheduled U.S. government biannual exercises. Similar trainings have been conducted in various regions across the United States since 2012.

    The general areas in which the training exercise will take place include areas around Albany Airport to Stratton Air National Guard Base to northern Saratoga County. 

    Several local and state law enforcement, fire, emergency management, and public health agencies will also be participating in the training, including the New York State Police, Albany, Saratoga, and Schenectady County Sheriff’s Offices and the Albany Police Department.

    Exercise participants will conduct operations in personal protective equipment to simulate realistic conditions. It will also include aircraft from federal, state, and local law enforcement agencies.

    The exercise is an opportunity for participating entities to practice and enhance operational readiness to respond in the event of a nuclear incident in the United States or overseas.

    Due to the sensitive nature of the capabilities being implemented, the training activities are not open to the public or media.

    Again, the training exercise will not pose any risk to the public.

    Media inquiries may be directed to:

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  • MIL-OSI Security: Dyersburg Man Sentenced in Federal and State Courts

    Source: Federal Bureau of Investigation (FBI) State Crime News

    Jackson, TN – A Dyersburg man was recently sentenced to prison in both federal and state courts for sexual abuse. Reagan Fondren, Acting United States Attorney for the Western District of Tennessee, and Danny H. Goodman, Jr., District Attorney General for the Twenty-Ninth Judicial District, jointly announced the sentence today.

    According to the information presented in court, Robert Galler, 52, traveled to Iowa in 2020 and returned to Tennessee with a victim, identified as Minor A in the indictment. In 2022, the Tennessee Department of Children’s Services received a referral of sexual abuse at Galler’s residence in Dyersburg. Upon arrival, DCS workers encountered three minor females who each alleged sexual and physical abuse by Galler. The victims underwent forensic interviews with the Carl Perkins Center for the Prevention of Child Abuse detailing the abuse, which had occurred continually over four years.

    On September 11, 2024, Galler pled guilty in federal court to transporting a minor with the intent to engage in illicit sexual conduct. On January 8, 2025, Senior United States District Judge J. Daniel Breen sentenced Galler to 300 months in federal prison followed by 5 years of supervised release and lifetime placement on the sex offender registry. There is no parole in the federal system.

    Following federal sentencing, Galler returned to state custody. On January 21, 2025, he entered guilty pleas to one count of rape of a child and one count of rape. Dyer County Circuit Court Judge Mark Hayes sentenced Galler to 25 years’ imprisonment, placement on the sex offender registry, and lifetime supervision. Pursuant to state law, Galler must serve 100% of the sentence. The sentences between both courts were ordered to run concurrently.

    District Attorney General Danny H. Goodman, Jr., who assigned Andrew Hays as a Special Assistant United States Attorney, stated, “I would first like to thank Assistant District Attorney, Andrew Hays, for the time he dedicated to this case. The goal of the Office of the District Attorney General is to seek justice on behalf of the State of Tennessee and victims of crime. This case is a perfect example of how the partnership with our office and the United States Department of Justice allowed us to accomplish that goal. This office will always prosecute crimes involving children with as much zeal as possible.”

    The case was investigated by the Federal Bureau of Investigation, the Tennessee Department of Children’s Services, and the Dyersburg Police Department.

    Acting United States Attorney Reagan Fondren thanked Special Assistant U.S. Attorney Andrew Hays for the Western District of Tennessee, who prosecuted the case, as well as the law enforcement partners who investigated it.  

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    For more information, please contact the Media Relations Team at USATNW.Media@usdoj.gov. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.

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