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MIL-OSI: FirstCash Reports Record Third Quarter Operating Results; Strength in U.S. Pawn Segment Drives Record Revenue and Earnings; Declares Quarterly Cash Dividend

Source: GlobeNewswire (MIL-OSI)

FORT WORTH, Texas, Oct. 24, 2024 (GLOBE NEWSWIRE) — FirstCash Holdings, Inc. (“FirstCash” or the “Company”) (Nasdaq: FCFS), the leading international operator of more than 3,000 retail pawn stores and a leading provider of retail point-of-sale (“POS”) payment solutions through American First Finance (“AFF”), today announced operating results for the three and nine month periods ended September 30, 2024. The Company also announced that the Board of Directors declared a quarterly cash dividend of $0.38 per share, which will be paid in November 2024.

Mr. Rick Wessel, chief executive officer, stated, “FirstCash achieved record revenue and earnings results for both the third quarter and year-to-date periods. Impressive third quarter achievements also included a fifth consecutive quarter of double-digit growth in same-store pawn receivables for the U.S. pawn segment. The LatAm pawn segment also saw continued growth in local currency pawn revenues and receivables, while AFF recorded a 14% increase in third quarter gross origination volumes driven primarily by 25% growth in new merchant locations.

“Expansion of retail pawn locations continues to be robust as well, with the opening of 16 new pawn stores in the third quarter and the combined opening and acquisition of 83 total stores during the first nine months of this year. Growth in the number of stores and earning assets, coupled with consistent shareholder returns through dividends and share repurchases, continue to be funded primarily through operating cash flows.”

This release contains adjusted financial measures, which exclude certain non-operating and/or non-cash income and expenses, that are non-GAAP financial measures. Please refer to the descriptions and reconciliations to GAAP of these and other non-GAAP financial measures at the end of this release.

	Three Months Ended September 30,
	As Reported (GAAP)				Adjusted (Non-GAAP)
In thousands, except per share amounts	2024		2023		2024		2023
Revenue	$	837,321	$	786,301	$	837,321	$	786,301
Net income	$	64,827	$	57,144	$	75,179	$	70,775
Diluted earnings per share	$	1.44	$	1.26	$	1.67	$	1.56
EBITDA (non-GAAP measure)	$	138,134	$	129,350	$	139,278	$	132,985
Weighted-average diluted shares		44,970		45,374		44,970		45,374

	Nine Months Ended September 30,
	As Reported (GAAP)				Adjusted (Non-GAAP)
In thousands, except per share amounts	2024		2023		2024		2023
Revenue	$	2,504,703	$	2,299,662	$	2,504,703	$	2,299,662
Net income	$	175,268	$	149,712	$	207,266	$	184,028
Diluted earnings per share	$	3.88	$	3.27	$	4.58	$	4.02
EBITDA (non-GAAP measure)	$	388,372	$	348,291	$	392,752	$	350,028
Weighted-average diluted shares		45,214		45,747		45,214		45,747

Consolidated Operating Highlights

Gross revenues totaled $837 million in the third quarter, an increase of 6% on a U.S. dollar basis and 9% on a constant currency basis compared to the prior-year quarter. Year-to-date revenues totaled $2.5 billion, an increase of 9%, in both dollars and constant currency, compared to the prior-year period.
Diluted earnings per share for the third quarter increased 14% over the prior-year quarter on a GAAP basis while adjusted diluted earnings per share increased 7% compared to the prior-year quarter. Year-to-date diluted earnings per share increased 19% over the prior-year period on a GAAP basis while adjusted diluted earnings per share increased 14% compared to the prior-year period.
Net income for the third quarter increased 13% over the prior-year quarter on a GAAP basis while adjusted net income increased 6% compared to the prior-year quarter. Year-to-date, net income totaled $175 million on a GAAP basis while adjusted net income was $207 million.
For the trailing twelve month period ended September 30, 2024:
- Revenues totaled a record $3.4 billion
- Net income totaled $245 million on a GAAP basis while adjusted net income was $300 million
- Adjusted EBITDA was $554 million
- Operating cash flows were $441 million and adjusted free cash flows were $217 million

Store Base and Platform Growth

Pawn Stores – 16 new pawn locations were added in the third quarter through acquisitions and new store openings. Year-to-date through September 30, 2024, a total of 83 pawn locations have been added:
- One U.S. store was acquired in Georgia during the third quarter. Year-to-date through September 30, 2024, a total of 29 new locations have opened or been acquired in the U.S.
- There were 15 new store openings in Latin America in the third quarter which included 11 locations in Mexico and four locations in Guatemala. Year-to-date through September 30, 2024, a total of 54 new locations have opened in Latin America.
- As of September 30, 2024, the Company had 3,025 locations, comprised of 1,201 U.S. locations and 1,824 locations in Latin America.
Retail POS Payment Solutions (AFF) Merchant Partnerships – At September 30, 2024, there were approximately 13,500 active retail and e-commerce merchant partner locations, representing a 25% increase in the number of active merchant locations compared to a year ago.

U.S. Pawn Segment Operating Results

Segment pre-tax operating income in the third quarter of 2024 was a record $98 million, an increase of $14 million, or 16%, compared to the prior-year quarter. The resulting segment pre-tax operating margin was 25% for the third quarter of 2024 which is consistent with the margin for the prior-year quarter.
Year-to-date segment pre-tax operating income increased by $48 million, or 20%, compared to the prior-year period. The pre-tax operating margin increased to 25% for the year-to-date period, as compared to the 24% margin for the prior-year period.
Pawn receivables continued to grow to record levels, increasing 12% in total at September 30, 2024 compared to the prior year. The increase in total pawn receivables was driven by a 4% increase in the weighted-average U.S. store count coupled with an impressive 10% same-store increase. The same-store increase was driven by a 7% increase in average loan size and a 3% increase in the number of loans outstanding.
Pawn loan fees increased 13% for the third quarter and 18% year-to-date, while on a same-store basis, pawn loan fee revenue increased 8% for the quarter and 11% year-to-date compared to the respective prior-year periods. The increased pawn loan fee revenue reflected both store growth and continued growth in demand for pawn loans.
Retail merchandise sales increased 15% in the third quarter of 2024 compared to the prior-year quarter, while same-store retail sales increased 7% compared to the prior-year quarter.
Retail sales margins were 43% for the third quarter, improving sequentially over the second quarter and in-line with the prior-year margins. Year-to-date margins were 42% compared to 43% in the prior-year period.
Annualized inventory turnover was 2.8 times for the trailing twelve months ended September 30, 2024, which equaled the prior-year annualized inventory turnover. Inventories aged greater than one year at September 30, 2024 remained low at 2% of total inventories.
Operating expenses for the third quarter increased 12% in total due to the 4% weighted-average store count growth over the past year and increased same-store expenses of 6% compared to the prior-year period.

Latin America Pawn Segment Operating Results

Note: Certain growth rates below are calculated on a constant currency basis, a non-GAAP financial measure defined at the end of this release. The average Mexican peso to U.S. dollar exchange rate for the third quarter of 2024 was 18.9 pesos / dollar, an unfavorable change of 11% versus the comparable prior-year period, and for the nine month period ended September 30, 2024 was 17.7 pesos / dollar, a favorable change of 1% versus the prior-year period.

Third quarter segment pre-tax operating income totaled $38 million, a 6% decline on a U.S. dollar-basis compared to the prior year due primarily to an 11% decline in the Mexican peso exchange rate. On a constant currency basis, segment income increased 2% for the quarter. The resulting pre-tax operating margin was 19% compared to 20% in the prior-year quarter.
Year-to-date segment pre-tax operating income totaled $107 million, a 4% decline on a U.S. dollar-basis compared to the prior-year period due primarily to increased labor costs and store expansion expenses as described further below. The year-to-date pre-tax operating margin was 18% compared to 19% in the prior-year period.
While total and same-store pawn loan fees in the third quarter decreased 4% on a U.S. dollar-basis, they increased 6% on a constant currency basis compared to the prior-year quarter. Year-to-date pawn loan fees increased 7%, or 6% on a constant currency basis, compared to the prior-year period. Same-store pawn loan fees were up 6%, both in total and on a constant currency basis, compared to the prior year-to-date period.
While total and same-store receivables at September 30, 2024 were down 4% on a U.S. dollar basis, they increased 6% on a constant currency basis compared to the prior year.
Both total and same-store retail merchandise sales in the third quarter of 2024 decreased 3% on a U.S. dollar basis, but increased 7% on a constant currency basis compared to the prior-year quarter. Year-to-date retail merchandise sales increased 4% in total and on a constant currency basis while same-store retail merchandise sales increased 4%, or 3% on a constant currency basis.
Retail margins were 35% for the third quarter of 2024 compared to 36% in the prior-year quarter. Annualized inventory turnover was 4.2 times for the trailing twelve months ended September 30, 2024 compared to 4.3 times in the prior-year period. Inventories aged greater than one year at September 30, 2024 remained extremely low at 1%.
Operating expenses decreased 1% in total and 2% on a same-store basis compared to the prior-year quarter. On a constant currency basis, they increased 8% in total and on a same-store basis. The increase in constant currency expenses from all stores reflected increased store counts, accelerated store opening activity and higher labor costs (due primarily to further increases in the federal minimum wage and other mandated benefit programs), along with other inflationary impacts.

American First Finance (AFF) – Retail POS Payment Solutions Segment Operating Results

Third quarter segment pre-tax operating income totaled $30 million compared to $39 million in the prior-year quarter, as a significant $35 million dollar increase in gross transaction origination volume over the same quarter last year drove an increase in up-front lifetime lease and loan loss provisioning of approximately $10 million.
Year-to-date segment pre-tax operating income totaled $89 million, a 1% increase over the prior-year period which was also generally consistent with year-to-date gross origination activity.
Segment revenues for the quarter, comprised of lease-to-own (“LTO”) fees and interest and fees on finance receivables, were flat compared to the prior-year quarter while increasing 4% year-to-date.
Gross transaction volume of lease and loan originations during the third quarter increased $35 million, or 14%, compared to last year, driven primarily by the 25% increase in active merchant door counts and continued growth in non-furniture verticals. Excluding furniture, third quarter origination volume increased approximately 35%. For the year-to-date period, overall gross transaction volume increased 5% over the same prior-year period and was up 23% excluding furniture.
Combined gross leased merchandise and finance receivables outstanding at September 30, 2024 increased 1% compared to the September 30, 2023 balances.
The combined lease and loan loss provision as a percentage of the total gross transaction volume originated was 28% for the third quarter of 2024, compared to the 29% provisioning rate in the third quarter of 2023. The resulting allowance on combined leased merchandise and finance receivables at September 30, 2024 was 44% of gross leased merchandise and receivables, which was consistent with the prior year.
The average monthly net charge-off (“NCO”) rate for combined leased merchandise and finance receivable products was 5.8% for the third quarter of 2024 and 5.2% for the year-to-date period. While slightly above the prior year, charge-offs remain within the range of forecast expectations.
Operating expenses were flat compared to the prior-year quarter and the year-to-date period, which was reflective of continued realization of operating synergies.

Cash Flow and Liquidity

Each of the Company’s business segments generated significant operating cash flows during the twelve month period ended September 30, 2024. Consolidated operating cash flows for the twelve month period ended September 30, 2024 totaled $441 million and adjusted free cash flows (a non-GAAP measure) were $217 million.
The operating cash flows helped fund significant growth in earning assets and continued investments in the store platform over the past twelve months with a nominal increase in net debt:
- A total of 36 pawn stores were acquired for a combined purchase price of $82 million.
- 64 new, or de novo, pawn stores were added with a combined investment of $20 million in fixed assets and working capital.
- Investments in real estate totaled $78 million as the Company purchased the underlying real estate at 63 of its existing pawn stores, bringing the number of owned properties to over 380 locations.
In August 2024, the Company amended its U.S. revolving commercial bank credit facility to increase the total lender commitment from $640 million to $700 million with two new banks added to the commercial bank lending group. The term of the facility was extended through August 8, 2029. In addition, the permitted consolidated leverage ratio was increased to 3.25 times adjusted EBITDA for the full term of the agreement, while the other financial covenants remain substantially unchanged.
Over $1.5 billion of the Company’s long-term financing remains fixed rate debt with favorable interest rates ranging from 4.625% to 6.875% and maturity dates that do not begin until 2028 and continue into 2032.
Based on trailing twelve month results, the net debt to adjusted EBITDA ratio was 2.96x at September 30, 2024.

Shareholder Returns

The Board of Directors declared a $0.38 per share fourth quarter cash dividend, which will be paid on November 27, 2024 to stockholders of record as of November 15, 2024. This represents an annualized dividend of $1.52 per share. Any future dividends are subject to approval by the Company’s Board of Directors.
Year-to-date, the Company has repurchased $85 million of common stock. The Company has $115 million available under the $200 million share repurchase program authorized in July 2023. Future share repurchases are subject to expected liquidity, acquisitions and other investment opportunities, debt covenant restrictions, market conditions and other relevant factors.
The Company generated a 12% return on equity and a 6% return on assets for the twelve months ended September 30, 2024. Using adjusted net income for the twelve months ended September 30, 2024, the adjusted return on equity was 15% while the adjusted return on assets was 7%.

2024 Outlook

The outlook for the remainder of 2024 continues to be highly positive, with expected year-over-year growth in consolidated revenue and earnings driven by the continued growth in earning asset balances coupled with store additions. Anticipated conditions and trends for the fourth quarter include the following:

Pawn Operations:

Pawn operations are expected to remain the primary earnings driver in 2024 as the Company expects segment income from the combined U.S. and Latin America pawn segments to be over 80% of total segment level pre-tax income for the full year.
The company is targeting the addition of approximately 90 total pawn locations for 2024 through a combination of new store openings and acquisitions.

U.S. Pawn

Pawn receivables were up 12% at September 30, 2024 compared to a year ago, with October balances to date up similarly. Resulting pawn fees are expected to increase in the range of 10% to 12%.
Retail sales growth is expected to remain in-line with the inventory growth of 10% at the most recent quarter end while retail margins are projected to remain consistent with the year-to-date results.

Latin America Pawn

Latin America results in the fourth quarter are expected to be negatively impacted by the lower exchange rate for the Mexican peso which has recently been in a range of 19 to 20 pesos per U.S. dollar.
Pawn loan growth to-date in October is up approximately 8% on a constant currency basis, although down 2% on a U.S. dollar basis as compared to the prior year assuming the current exchange rate. A similar result is projected for constant currency fourth quarter pawn fees.
Retail sales in Latin America are also expected to increase in-line with inventory growth of 9% on a constant currency basis and are expected to be roughly flat to the prior year on a U.S. dollar basis, assuming the current exchange rate, with consistent retail margins.

Retail POS Payment Solutions (AFF) Operations:

While weakness in the macro furniture retail environment continues to negatively impact performance from many of its merchant retail partners in the furniture retail vertical, year-over-year growth in gross transaction volumes is still projected for the full year and fourth quarter of 2024, driven by increasing active merchant doors and further expansion of non-furniture verticals. Resulting full year gross revenues for 2024 are expected to remain at or above the prior-year level. AFF now expects furniture to account for less than 40% of 2024 originations compared to almost 50% in 2023.
The origination and revenue outlook takes into consideration the previously announced bankruptcy filing of Conn’s Home Plus which now assumes minimal originations from November 2024 forward from this merchant relationship.
Anticipated provision rates (combined provision for lease and loan losses as a percentage of the total gross transaction volume originated) are expected to range between 25% and 28% in the fourth quarter of the year.

Interest Expense, Tax Rates and Currency:

Interest expense for the fourth quarter is expected to be consistent with the prior year.
The full year 2024 effective income tax rate under current tax codes in the U.S. and Latin America is expected to range from 24.5% to 25.5%.
Each full point change in the exchange rate of the Mexican peso represents an annual earnings impact of approximately $0.10 per share.

Additional Commentary and Analysis

Mr. Wessel provided additional insights on the Company’s third quarter results and outlook for the remainder of 2024, “Our results continue to demonstrate strong fundamental product demand trends which we expect to drive future revenue and earnings growth.

“The U.S. pawn segment again saw continued record levels of demand for pawn loans and record per store loan balances. The 10% growth in same-store pawn receivables is especially strong given that the comparative prior-year comp was 11%. On a stacked, two-year basis, same-store pawn loans are up 21% compared to the third quarter of 2022, illustrating tremendous, continued momentum in the business. Demand trends in October remain strong and we believe lending volumes should continue to also benefit from increased gold prices while our inventories are well positioned for the holiday sales season.

“In Latin America, currency adjusted pawn receivables and pawn fees continued to show impressive growth in the third quarter, with further acceleration to date in October, while third quarter retail sales grew even faster. While the volatility of the Mexican peso slightly impacted third quarter earnings results by approximately $0.04 per share, there is minimal impact on cash flows as we continue to reinvest a large portion of our cash flows in Latin America. We believe in the long term opportunity for Latin America, driven by near-shore manufacturing expansion and the use of pawn loans being an integral part of the economy for our customer base.

“Unit growth in both pawn segments remains exceptional. We have now added 83 stores this year and a total of 240 stores since the beginning of 2023. Looking ahead, we continue to see and evaluate expansion opportunities across markets in both the U.S. and Latin America.

“AFF’s gross transaction volumes in the third quarter improved both sequentially and year-over-year (even when excluding Conn’s Home Plus third quarter closeout volume) with significant contributions from both new doors and expanding non-furniture verticals driven largely by robust productivity from our field sales channel. Excluding furniture, third quarter origination volume increased approximately 35%. This growth has led to a further decrease in large merchant concentration risk, with the largest merchant partner now representing approximately 12% of current total gross transaction volume. Additionally, combined lease and loan losses remain well within our target metrics while the combined reserve remains consistent at over 40% of the total portfolio.

“All of FirstCash’s business segments continue to generate strong cash flows while its balance sheet remains highly liquid. Over 60% of pawn loans are collateralized with jewelry, which is primarily gold and very liquid, while almost 50% of retail inventories are comprised of jewelry that typically has the highest margins. Our balance sheet maintains favorable unsecured financing featuring long-dated maturities at attractive rates. Accordingly, we believe that we are well positioned to drive continued shareholder value through organic store growth, strategic acquisitions, dividends and share repurchases,” concluded Mr. Wessel.

About FirstCash

FirstCash is the leading international operator of pawn stores focused on serving cash and credit-constrained consumers. FirstCash’s more than 3,000 pawn stores in the U.S. and Latin America buy and sell a wide variety of jewelry, electronics, tools, appliances, sporting goods, musical instruments and other merchandise, and make small non-recourse pawn loans secured by pledged personal property. FirstCash’s pawn segments in the U.S. and Latin America currently account for approximately 80% of segment earnings, with the remainder provided by its wholly owned subsidiary, AFF, which provides lease-to-own and retail finance payment solutions for consumer goods and services.

FirstCash is a component company in both the Standard & Poor’s MidCap 400 Index® and the Russell 2000 Index®. FirstCash’s common stock (ticker symbol “FCFS”) is traded on the Nasdaq, the creator of the world’s first electronic stock market. For additional information regarding FirstCash and the services it provides, visit FirstCash’s websites located at http://www.firstcash.com and http://www.americanfirstfinance.com.

Forward-Looking Information

This release contains forward-looking statements about the business, financial condition, outlook and prospects of FirstCash Holdings, Inc. and its wholly owned subsidiaries (together, the “Company”), including the Company’s outlook for 2024. Forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, can be identified by the use of forward-looking terminology such as “outlook,” “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends,” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic,” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, guidance, expectations, outlook and future plans. Forward-looking statements can also be identified by the fact these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties.

While the Company believes the expectations reflected in forward-looking statements are reasonable, there can be no assurances such expectations will prove to be accurate. Security holders are cautioned that such forward-looking statements involve risks and uncertainties. Certain factors may cause results to differ materially from those anticipated by the forward-looking statements made in this release. Such factors may include, without limitation, risks related to the extensive regulatory environment in which the Company operates; risks associated with the legal and regulatory proceedings that the Company is a party to or may become a party to in the future, including the Consumer Financial Protection Bureau (the “CFPB”) lawsuit filed against the Company; risks related to the Company’s acquisitions, including the failure of the Company’s acquisitions to deliver the estimated value and benefits expected by the Company and the ability of the Company to continue to identify and consummate acquisitions on favorable terms, if at all; potential changes in consumer behavior and shopping patterns which could impact demand for the Company’s pawn loan, retail, lease-to-own (“LTO”) and retail finance products; labor shortages and increased labor costs; a deterioration in the economic conditions in the United States and Latin America, including as a result of inflation, elevated interest rates and higher gas prices, which potentially could have an impact on discretionary consumer spending and demand for the Company’s products; currency fluctuations, primarily involving the Mexican peso; competition the Company faces from other retailers and providers of retail payment solutions; the ability of the Company to successfully execute on its business strategies; contraction in sales activity at merchant partners of the Company’s retail POS payment solutions business; impact of store closures, financial difficulties or even bankruptcies at the merchant partners of the Company’s retail POS payment solutions business; and other risks discussed and described in the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”), including the risks described in Part 1, Item 1A, “Risk Factors” thereof, and other reports filed with the SEC. Many of these risks and uncertainties are beyond the ability of the Company to control, nor can the Company predict, in many cases, all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. The forward-looking statements contained in this release speak only as of the date of this release, and the Company expressly disclaims any obligation or undertaking to report any updates or revisions to any such statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

FIRSTCASH HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
Revenue:
Retail merchandise sales	$	363,141		$	335,081		$	1,093,425		$	983,860
Pawn loan fees		186,561			174,560			547,142			480,298
Leased merchandise income		188,560			189,382			588,801			562,625
Interest and fees on finance receivables		61,198			61,413			175,384			174,247
Wholesale scrap jewelry sales		37,861			25,865			99,951			98,632
Total revenue		837,321			786,301			2,504,703			2,299,662

Cost of revenue:
Cost of retail merchandise sold		218,178			199,719			659,854			590,991
Depreciation of leased merchandise		104,928			103,698			335,369			307,824
Provision for lease losses		39,171			39,736			129,834			141,674
Provision for loan losses		40,557			33,096			102,091			90,571
Cost of wholesale scrap jewelry sold		29,880			21,405			81,711			79,012
Total cost of revenue		432,714			397,654			1,308,859			1,210,072

Net revenue		404,607			388,647			1,195,844			1,089,590

Expenses and other income:
Operating expenses		224,926			211,524			674,431			615,366
Administrative expenses		40,930			45,056			129,563			124,428
Depreciation and amortization		25,933			27,365			78,507			81,526
Interest expense		27,424			24,689			78,029			66,657
Interest income		(403	)		(328	)		(1,407	)		(1,253	)
Loss (gain) on foreign exchange		882			(286	)		2,133			(1,905	)
Merger and acquisition expenses		225			3,387			2,186			3,670
Other expenses (income), net		(490	)		(384	)		(841	)		(260	)
Total expenses and other income		319,427			311,023			962,601			888,229

Income before income taxes		85,180			77,624			233,243			201,361

Provision for income taxes		20,353			20,480			57,975			51,649

Net income	$	64,827		$	57,144		$	175,268		$	149,712

FIRSTCASH HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)

	September 30,						December 31,
	2024			2023			2023
ASSETS
Cash and cash equivalents	$	106,320		$	86,547		$	127,018
Accounts receivable, net		74,378			72,336			71,922
Pawn loans		517,877			483,785			471,846
Finance receivables, net		123,751			113,307			113,901
Inventories		334,394			314,382			312,089
Leased merchandise, net		137,769			143,169			171,191
Prepaid expenses and other current assets		34,861			21,114			38,634
Total current assets		1,329,350			1,234,640			1,306,601

Property and equipment, net		689,075			604,673			632,724
Operating lease right of use asset		329,228			312,097			328,458
Goodwill		1,788,795			1,713,354			1,727,652
Intangible assets, net		241,389			291,690			277,724
Other assets		10,339			10,057			10,242
Deferred tax assets, net		4,671			8,052			6,514
Total assets	$	4,392,847		$	4,174,563		$	4,289,915

LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued liabilities	$	133,792		$	146,873		$	163,050
Customer deposits and prepayments		78,083			71,752			70,580
Lease liability, current		96,598			98,745			101,962
Total current liabilities		308,473			317,370			335,592

Revolving unsecured credit facilities		200,000			560,229			568,000
Senior unsecured notes		1,530,604			1,037,151			1,037,647
Deferred tax liabilities, net		127,425			139,713			136,773
Lease liability, non-current		227,151			202,516			215,485
Total liabilities		2,393,653			2,256,979			2,293,497

Stockholders’ equity:
Common stock		575			573			573
Additional paid-in capital		1,764,351			1,737,497			1,741,046
Retained earnings		1,344,542			1,164,228			1,218,029
Accumulated other comprehensive loss		(114,807	)		(64,521	)		(43,037	)
Common stock held in treasury, at cost		(995,467	)		(920,193	)		(920,193	)
Total stockholders’ equity		1,999,194			1,917,584			1,996,418
Total liabilities and stockholders’ equity	$	4,392,847		$	4,174,563		$	4,289,915

FIRSTCASH HOLDINGS, INC.
U.S. PAWN SEGMENT RESULTS
(UNAUDITED)

U.S. Pawn Operating Results and Margins (dollars in thousands)

	Three Months Ended
	September 30,
	2024			2023			Increase
Revenue:
Retail merchandise sales	$	235,037		$	203,769			15	%
Pawn loan fees		128,393			114,022			13	%
Wholesale scrap jewelry sales		26,685			17,140			56	%
Total revenue		390,115			334,931			16	%

Cost of revenue:
Cost of retail merchandise sold		134,966			115,670			17	%
Cost of wholesale scrap jewelry sold		21,393			14,297			50	%
Total cost of revenue		156,359			129,967			20	%

Net revenue		233,756			204,964			14	%

Segment expenses:
Operating expenses		128,104			113,976			12	%
Depreciation and amortization		7,365			6,586			12	%
Total segment expenses		135,469			120,562			12	%

Segment pre-tax operating income	$	98,287		$	84,402			16	%

Operating metrics:
Retail merchandise sales margin	43		%	43		%
Net revenue margin	60		%	61		%
Segment pre-tax operating margin	25		%	25		%

FIRSTCASH HOLDINGS, INC.
U.S. PAWN SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

	Nine Months Ended
	September 30,
	2024			2023			Increase
Revenue:
Retail merchandise sales	$	702,120		$	610,493			15	%
Pawn loan fees		371,699			315,679			18	%
Wholesale scrap jewelry sales		70,722			61,108			16	%
Total revenue		1,144,541			987,280			16	%

Cost of revenue:
Cost of retail merchandise sold		407,329			349,138			17	%
Cost of wholesale scrap jewelry sold		57,928			49,604			17	%
Total cost of revenue		465,257			398,742			17	%

Net revenue		679,284			588,538			15	%

Segment expenses:
Operating expenses		372,191			331,916			12	%
Depreciation and amortization		21,609			18,786			15	%
Total segment expenses		393,800			350,702			12	%

Segment pre-tax operating income	$	285,484		$	237,836			20	%

Operating metrics:
Retail merchandise sales margin	42		%	43		%
Net revenue margin	59		%	60		%
Segment pre-tax operating margin	25		%	24		%

FIRSTCASH HOLDINGS, INC.
U.S. PAWN SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

U.S. Pawn Earning Assets and Portfolio Metrics (dollars in thousands, except as otherwise noted)

	As of September 30,
	2024			2023			Increase
Earning assets:
Pawn loans	$	380,962		$	341,123			12	%
Inventories		238,668			217,406			10	%
	$	619,630		$	558,529			11	%

Average outstanding pawn loan amount (in ones)	$	264		$	245			8	%

Composition of pawn collateral:
General merchandise	30		%	31		%
Jewelry	70		%	69		%
	100		%	100		%

Composition of inventories:
General merchandise	43		%	45		%
Jewelry	57		%	55		%
	100		%	100		%

Percentage of inventory aged greater than one year	2		%	1		%

Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories)	2.8 times			2.8 times

FIRSTCASH HOLDINGS, INC.
LATIN AMERICA PAWN SEGMENT RESULTS
(UNAUDITED)

Constant currency results are non-GAAP financial measures, which exclude the effects of foreign currency translation and are calculated by translating current-year results at prior-year average exchange rates. See the “Constant Currency Results” section below for additional discussion of constant currency operating results.

Latin America Pawn Operating Results and Margins (dollars in thousands)

													Constant Currency Basis
													Three Months
													Ended
		Three Months Ended											September 30,			Increase /
		September 30,							Increase /				2024			(Decrease)
		2024				2023			(Decrease)				(Non-GAAP)			(Non-GAAP)
Revenue:
Retail merchandise sales		$	129,081			$	132,784			(3	)%		$	142,147			7	%
Pawn loan fees			58,168				60,538			(4	)%			64,130			6	%
Wholesale scrap jewelry sales			11,176				8,725			28	%			11,176			28	%
Total revenue			198,425				202,047			(2	)%			217,453			8	%

Cost of revenue:
Cost of retail merchandise sold			83,729				84,816			(1	)%			92,131			9	%
Cost of wholesale scrap jewelry sold			8,487				7,108			19	%			9,378			32	%
Total cost of revenue			92,216				91,924			—	%			101,509			10	%

Net revenue			106,209				110,123			(4	)%			115,944			5	%

Segment expenses:
Operating expenses			63,062				63,907			(1	)%			69,199			8	%
Depreciation and amortization			4,676				5,236			(11	)%			5,117			(2	)%
Total segment expenses			67,738				69,143			(2	)%			74,316			7	%

Segment pre-tax operating income		$	38,471			$	40,980			(6	)%		$	41,628			2	%

Operating metrics:
Retail merchandise sales margin	35			%	36			%				35			%
Net revenue margin	54			%	55			%				53			%
Segment pre-tax operating margin	19			%	20			%				19			%

FIRSTCASH HOLDINGS, INC.
LATIN AMERICA PAWN SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

													Constant Currency Basis
													Nine Months
													Ended
		Nine Months Ended											September 30,			Increase /
		September 30,							Increase /				2024			(Decrease)
		2024				2023			(Decrease)				(Non-GAAP)			(Non-GAAP)
Revenue:
Retail merchandise sales		$	394,375			$	378,302			4	%		$	391,606			4	%
Pawn loan fees			175,443				164,619			7	%			174,228			6	%
Wholesale scrap jewelry sales			29,229				37,524			(22	)%			29,229			(22	)%
Total revenue			599,047				580,445			3	%			595,063			3	%

Cost of revenue:
Cost of retail merchandise sold			254,188				244,439			4	%			252,377			3	%
Cost of wholesale scrap jewelry sold			23,783				29,408			(19	)%			23,627			(20	)%
Total cost of revenue			277,971				273,847			2	%			276,004			1	%

Net revenue			321,076				306,598			5	%			319,059			4	%

Segment expenses:
Operating expenses			198,389				179,170			11	%			196,986			10	%
Depreciation and amortization			15,199				15,884			(4	)%			15,072			(5	)%
Total segment expenses			213,588				195,054			10	%			212,058			9	%

Segment pre-tax operating income		$	107,488			$	111,544			(4	)%		$	107,001			(4	)%

Operating metrics:
Retail merchandise sales margin	36			%	35			%				36			%
Net revenue margin	54			%	53			%				54			%
Segment pre-tax operating margin	18			%	19			%				18			%

FIRSTCASH HOLDINGS, INC.
LATIN AMERICA PAWN SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

Latin America Pawn Earning Assets and Portfolio Metrics (dollars in thousands, except as otherwise noted)

										Constant Currency Basis
										As of
										September 30,
	As of September 30,									2024		Increase
	2024			2023			(Decrease)			(Non-GAAP)		(Non-GAAP)
Earning assets:
Pawn loans	$	136,915		$	142,662			(4	)%	$	151,486		6	%
Inventories		95,726			96,976			(1	)%		105,792		9	%
	$	232,641		$	239,638			(3	)%	$	257,278		7	%

Average outstanding pawn loan amount (in ones)	$	85		$	89			(4	)%	$	94		6	%

Composition of pawn collateral:
General merchandise	62		%	66		%
Jewelry	38		%	34		%
	100		%	100		%

Composition of inventories:
General merchandise	70		%	68		%
Jewelry	30		%	32		%
	100		%	100		%

Percentage of inventory aged greater than one year	1		%	1		%

Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories)	4.2 times			4.3 times

FIRSTCASH HOLDINGS, INC.
RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS
(UNAUDITED)

Retail POS Payment Solutions Operating Results (dollars in thousands)

	Three Months Ended
	September 30,				Increase /
	2024		2023		(Decrease)
Revenue:
Leased merchandise income	$	188,560	$	189,382		—	%
Interest and fees on finance receivables		61,198		61,413		—	%
Total revenue		249,758		250,795		—	%

Cost of revenue:
Depreciation of leased merchandise		105,308		104,198		1	%
Provision for lease losses		39,268		39,640		(1	)%
Provision for loan losses		40,557		33,096		23	%
Total cost of revenue		185,133		176,934		5	%

Net revenue		64,625		73,861		(13	)%

Segment expenses:
Operating expenses		33,760		33,641		—	%
Depreciation and amortization		679		771		(12	)%
Total segment expenses		34,439		34,412		—	%

Segment pre-tax operating income	$	30,186	$	39,449		(23	)%

FIRSTCASH HOLDINGS, INC.
RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

	Nine Months Ended
	September 30,				Increase /
	2024		2023		(Decrease)
Revenue:
Leased merchandise income	$	588,801	$	562,625		5	%
Interest and fees on finance receivables		175,384		174,247		1	%
Total revenue		764,185		736,872		4	%

Cost of revenue:
Depreciation of leased merchandise		336,649		309,432		9	%
Provision for lease losses		130,272		141,854		(8	)%
Provision for loan losses		102,091		90,571		13	%
Total cost of revenue		569,012		541,857		5	%

Net revenue		195,173		195,015		—	%

Segment expenses:
Operating expenses		103,851		104,280		—	%
Depreciation and amortization		2,078		2,258		(8	)%
Total segment expenses		105,929		106,538		(1	)%

Segment pre-tax operating income	$	89,244	$	88,477		1	%

FIRSTCASH HOLDINGS, INC.
RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

Retail POS Payment Solutions Gross Transaction Volumes (dollars in thousands)

	Three Months Ended
	September 30,				Increase /
	2024		2023		(Decrease)
Leased merchandise	$	143,146	$	147,513		(3	)%
Finance receivables		142,910		103,183		39	%
Total gross transaction volume	$	286,056	$	250,696		14	%


	Nine Months Ended
	September 30,				Increase /
	2024		2023		(Decrease)
Leased merchandise	$	444,045	$	452,792		(2	)%
Finance receivables		350,332		303,485		15	%
Total gross transaction volume	$	794,377	$	756,277		5	%

Retail POS Payment Solutions Earning Assets (dollars in thousands)

	As of September 30,						Increase /
	2024			2023			(Decrease)
Leased merchandise, net:
Leased merchandise, before allowance for lease losses	$	231,796		$	250,298			(7	)%
Less allowance for lease losses		(93,823	)		(105,472	)		(11	)%
Leased merchandise, net	$	137,973		$	144,826			(5	)%

Finance receivables, net:
Finance receivables, before allowance for loan losses	$	232,948		$	209,991			11	%
Less allowance for loan losses		(109,197	)		(96,684	)		13	%
Finance receivables, net	$	123,751		$	113,307			9	%

FIRSTCASH HOLDINGS, INC.
RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

Allowance for Lease and Loan Losses and Other Portfolio Metrics (dollars in thousands)

	Three Months Ended
	September 30,								Increase /
		2024				2023			(Decrease)
Allowance for lease losses:
Balance at beginning of period		$	103,301			$	110,964			(7	)%
Provision for lease losses			39,268				39,640			(1	)%
Charge-offs			(50,394	)			(46,794	)		8	%
Recoveries			1,648				1,662			(1	)%
Balance at end of period		$	93,823			$	105,472			(11	)%

Leased merchandise portfolio metrics:
Provision rate⁽¹⁾	27			%	27			%
Average monthly net charge-off rate⁽²⁾	6.8			%	5.9			%
Delinquency rate⁽³⁾	23.6			%	23.2			%

Allowance for loan losses:
Balance at beginning of period		$	99,961			$	93,054			7	%
Provision for loan losses			40,557				33,096			23	%
Charge-offs			(32,969	)			(30,890	)		7	%
Recoveries			1,648				1,424			16	%
Balance at end of period		$	109,197			$	96,684			13	%

Finance receivables portfolio metrics:
Provision rate⁽¹⁾	28			%	32			%
Average monthly net charge-off rate⁽²⁾	4.8			%	4.7			%
Delinquency rate⁽³⁾	19.4			%	21.9			%

⁽¹⁾Calculated as provision for lease or loan losses as a percentage of the respective gross transaction volume originated.
⁽²⁾Calculated as charge-offs, net of recoveries, as a percentage of the respective average earning asset balance before allowance for lease or loan losses.
⁽³⁾Calculated as the percentage of the respective contractual earning asset balance owed that is 1 to 89 days past due (the Company charges off leases and finance receivables when they are 90 days or more contractually past due).

FIRSTCASH HOLDINGS, INC.
RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

	Nine Months Ended
	September 30,								Increase /
		2024				2023			(Decrease)
Allowance for lease losses:
Balance at beginning of period		$	95,752			$	79,576			20	%
Provision for lease losses			130,272				141,854			(8	)%
Charge-offs			(137,516	)			(120,966	)		14	%
Recoveries			5,315				5,008			6	%
Balance at end of period		$	93,823			$	105,472			(11	)%

Leased merchandise portfolio metrics:
Provision rate⁽¹⁾	29			%	31			%
Average monthly net charge-off rate⁽²⁾	5.9			%	5.3			%
Delinquency rate⁽³⁾	23.6			%	23.2			%

Allowance for loan losses:
Balance at beginning of period		$	96,454			$	84,833			14	%
Provision for loan losses			102,091				90,571			13	%
Charge-offs			(95,061	)			(83,281	)		14	%
Recoveries			5,713				4,561			25	%
Balance at end of period		$	109,197			$	96,684			13	%

Finance receivables portfolio metrics:
Provision rate⁽¹⁾	29			%	30			%
Average monthly net charge-off rate⁽²⁾	4.5			%	4.4			%
Delinquency rate⁽³⁾	19.4			%	21.9			%

⁽¹⁾Calculated as provision for lease or loan losses as a percentage of the respective gross transaction volume originated.
⁽²⁾Calculated as charge-offs, net of recoveries, as a percentage of the respective average earning asset balance before allowance for lease or loan losses.
⁽³⁾Calculated as the percentage of the respective contractual earning asset balance owed that is 1 to 89 days past due (the Company charges off leases and finance receivables when they are 90 days or more contractually past due).

FIRSTCASH HOLDINGS, INC.
PAWN STORE LOCATIONS AND MERCHANT PARTNER LOCATIONS

Pawn Operations

As of September 30, 2024, the Company operated 3,025 pawn store locations composed of 1,201 stores in 29 U.S. states and the District of Columbia, 1,723 stores in 32 states in Mexico, 72 stores in Guatemala, 17 stores in El Salvador and 12 stores in Colombia.

The following tables detail pawn store count activity for the three and nine months ended September 30, 2024:

	Three Months Ended September 30, 2024
	U.S.		Latin America		Total
Total locations, beginning of period	1,201		1,817		3,018
New locations opened⁽¹⁾	—		15		15
Locations acquired	1		—		1
Consolidation of existing pawn locations⁽²⁾	(1	)	(8	)	(9	)
Total locations, end of period	1,201		1,824		3,025


	Nine Months Ended September 30, 2024
	U.S.		Latin America		Total
Total locations, beginning of period	1,183		1,814		2,997
New locations opened⁽¹⁾	1		54		55
Locations acquired	28		—		28
Consolidation of existing pawn locations^{(2) (3)}	(11	)	(44	)	(55	)
Total locations, end of period	1,201		1,824		3,025

⁽¹⁾In addition to new store openings, the Company strategically relocated three stores in the U.S. and one store in Latin America during the three months ended September 30, 2024. During the nine months ended September 30, 2024, the Company strategically relocated nine stores in the U.S and one store in Latin America.
⁽²⁾Store consolidations were primarily acquired locations which have been combined with overlapping stores and for which the Company expects to maintain a significant portion of the acquired customer base in the consolidated location.
⁽³⁾Includes 10 pawnshops located in Acapulco, Mexico that were severely damaged by a hurricane in the fall of 2023 which the Company elected to consolidate with other stores in this market. The Company expects to replace certain of these locations in this market over time as the city’s infrastructure recovers.

Retail POS Payment Solutions

As of September 30, 2024, AFF provided LTO and retail POS payment solutions for consumer goods and services through a network of approximately 13,500 active retail merchant partner locations located in all 50 U.S. states, the District of Columbia and Puerto Rico. This compares to the active door count of approximately 10,800 locations at September 30, 2023.

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES
(UNAUDITED)

The Company uses certain financial calculations such as adjusted net income, adjusted diluted earnings per share, EBITDA, adjusted EBITDA, free cash flow, adjusted free cash flow, adjusted return on equity, adjusted return on assets and constant currency results as factors in the measurement and evaluation of the Company’s operating performance and period-over-period growth. The Company derives these financial calculations on the basis of methodologies other than generally accepted accounting principles (“GAAP”), primarily by excluding from a comparable GAAP measure certain items the Company does not consider to be representative of its actual operating performance. These financial calculations are “non-GAAP financial measures” as defined under the SEC rules. The Company uses these non-GAAP financial measures in operating its business because management believes they are less susceptible to variances in actual operating performance that can result from the excluded items, other infrequent charges and currency fluctuations. The Company presents these financial measures to investors because management believes they are useful to investors in evaluating the primary factors that drive the Company’s core operating performance and provide greater transparency into the Company’s results of operations. However, items that are excluded and other adjustments and assumptions that are made in calculating these non-GAAP financial measures are significant components in understanding and assessing the Company’s financial performance. These non-GAAP financial measures should be evaluated in conjunction with, and are not a substitute for, the Company’s GAAP financial measures. Further, because these non-GAAP financial measures are not determined in accordance with GAAP, and are thus susceptible to varying calculations, the non-GAAP financial measures, as presented, may not be comparable to other similarly-titled measures of other companies.

While acquisitions are an important part of the Company’s overall strategy, the Company has adjusted the applicable financial calculations to exclude merger and acquisition expenses and amortization of acquired AFF intangible assets. The Company does not consider these items to be related to the organic operations of the acquired businesses or its continuing operations and are generally not relevant to assessing or estimating the long-term performance of the acquired businesses. In addition, excluding these items allows for more accurate comparisons of the financial results to prior periods. Merger and acquisition expenses include incremental costs directly associated with merger and acquisition activities, including professional fees, legal expenses, severance, retention and other employee-related costs, contract breakage costs and costs related to the consolidation of technology systems and corporate facilities, among others.

The Company has certain leases in Mexico which are denominated in U.S. dollars. The lease liability of these U.S. dollar-denominated leases, which is considered a monetary liability, is remeasured into Mexican pesos using current period exchange rates, resulting in the recognition of foreign currency exchange gains or losses. The Company has adjusted the applicable financial measures to exclude these remeasurement gains or losses (i) because they are non-cash, non-operating items that could create volatility in the Company’s consolidated results of operations due to the magnitude of the end of period lease liability being remeasured and (ii) to improve comparability of current periods presented with prior periods.

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

Adjusted Net Income and Adjusted Diluted Earnings Per Share

Management believes the presentation of adjusted net income and adjusted diluted earnings per share provides investors with greater transparency and provides a more complete understanding of the Company’s financial performance and prospects for the future by excluding items that management believes are non-operating in nature and are not representative of the Company’s core operating performance. In addition, management believes the adjustments shown below are useful to investors in order to allow them to compare the Company’s financial results for the current periods presented with the prior periods presented.

The following tables provide a reconciliation between net income and diluted earnings per share calculated in accordance with GAAP to adjusted net income and adjusted diluted earnings per share, which are shown net of tax (in thousands, except per share amounts):

													Trailing Twelve
	Three Months Ended						Nine Months Ended						Months Ended
	September 30,						September 30,						September 30,
	2024			2023			2024			2023			2024			2023
	In Thousands			In Thousands			In Thousands			In Thousands			In Thousands			In Thousands
Net income, as reported	$	64,827		$	57,144		$	175,268		$	149,712		$	244,857		$	229,778
Adjustments, net of tax:
Merger and acquisition expenses		171			2,605			1,675			2,818			4,946			4,379
Non-cash foreign currency loss (gain) related to lease liability		986			442			2,124			(1,171	)		1,517			(1,856	)
AFF purchase accounting and other adjustments		9,572			10,880			28,717			32,869			50,189			50,529
Gain on revaluation of contingent acquisition consideration		—			—			—			—			—			(21,952	)
Other expenses (income), net		(377	)		(296	)		(518	)		(200	)		(1,397	)		(208	)
Adjusted net income	$	75,179		$	70,775		$	207,266		$	184,028		$	300,112		$	260,670

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
	Per Share			Per Share			Per Share			Per Share
Diluted earnings per share, as reported	$	1.44		$	1.26		$	3.88		$	3.27
Adjustments, net of tax:
Merger and acquisition expenses		0.01			0.06			0.04			0.06
Non-cash foreign currency loss (gain) related to lease liability		0.02			0.01			0.05			(0.03	)
AFF purchase accounting and other adjustments		0.21			0.24			0.63			0.72
Other expenses (income), net		(0.01	)		(0.01	)		(0.02	)		—
Adjusted diluted earnings per share	$	1.67		$	1.56		$	4.58		$	4.02

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA

The Company defines EBITDA as net income before income taxes, depreciation and amortization, interest expense and interest income and adjusted EBITDA as EBITDA adjusted for certain items, as listed below, that management considers to be non-operating in nature and not representative of its actual operating performance. The Company believes EBITDA and adjusted EBITDA are commonly used by investors to assess a company’s financial performance, and adjusted EBITDA is used as a starting point in the calculation of the consolidated total debt ratio as defined in the Company’s senior unsecured notes. The following table provides a reconciliation of net income to EBITDA and adjusted EBITDA (in thousands):

													Trailing Twelve
	Three Months Ended						Nine Months Ended						Months Ended
	September 30,						September 30,						September 30,
	2024			2023			2024			2023			2024			2023
Net income	$	64,827		$	57,144		$	175,268		$	149,712		$	244,857		$	229,778
Income taxes		20,353			20,480			57,975			51,649			79,874			73,189
Depreciation and amortization		25,933			27,365			78,507			81,526			106,142			107,863
Interest expense		27,424			24,689			78,029			66,657			104,615			86,616
Interest income		(403	)		(328	)		(1,407	)		(1,253	)		(1,623	)		(1,462	)
EBITDA		138,134			129,350			388,372			348,291			533,865			495,984
Adjustments:
Merger and acquisition expenses		225			3,387			2,186			3,670			6,438			5,697
Non-cash foreign currency loss (gain) related to lease liability		1,409			632			3,035			(1,673	)		2,168			(2,652	)
AFF purchase accounting and other adjustments⁽¹⁾		—			—			—			—			13,968			8,760
Gain on revaluation of contingent acquisition consideration		—			—			—			—			—			(26,760	)
Other expenses (income), net		(490	)		(384	)		(841	)		(260	)		(1,983	)		(270	)
Adjusted EBITDA	$	139,278		$	132,985		$	392,752		$	350,028		$	554,456		$	480,759

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

⁽¹⁾The following table details AFF purchase accounting and other adjustments for the trailing twelve months ended September 30, 2024 and 2023 (in thousands):

	Trailing Twelve
	Months Ended
	September 30,
	2024		2023
Amortization of fair value adjustment on acquired finance receivables included in interest and fees on finance receivables	$	—	$	7,859
Amortization of fair value adjustment on acquired leased merchandise included in depreciation of leased merchandise		—		901
Other non-recurring costs included in administrative expenses related to a discontinued finance product		13,968		—
	$	13,968	$	8,760

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

Free Cash Flow and Adjusted Free Cash Flow

For purposes of its internal liquidity assessments, the Company considers free cash flow and adjusted free cash flow. The Company defines free cash flow as cash flow from operating activities less purchases of furniture, fixtures, equipment and improvements and net fundings/repayments of pawn loan and finance receivables, which are considered to be operating in nature by the Company but are included in cash flow from investing activities. Adjusted free cash flow is defined as free cash flow adjusted for merger and acquisition expenses paid that management considers to be non-operating in nature.

Free cash flow and adjusted free cash flow are commonly used by investors as additional measures of cash generated by business operations that may be used to repay scheduled debt maturities and debt service or, following payment of such debt obligations and other non-discretionary items, that may be available to invest in future growth through new business development activities or acquisitions, repurchase stock, pay cash dividends or repay debt obligations prior to their maturities. These metrics can also be used to evaluate the Company’s ability to generate cash flow from business operations and the impact that this cash flow has on the Company’s liquidity. However, free cash flow and adjusted free cash flow have limitations as analytical tools and should not be considered in isolation or as a substitute for cash flow from operating activities or other income statement data prepared in accordance with GAAP. The following table reconciles cash flow from operating activities to free cash flow and adjusted free cash flow (in thousands):

													Trailing Twelve
	Three Months Ended						Nine Months Ended						Months Ended
	September 30,						September 30,						September 30,
	2024			2023			2024			2023			2024			2023
Cash flow from operating activities	$	113,090		$	111,368		$	341,809		$	317,037		$	440,914		$	460,544
Cash flow from certain investing activities:
Pawn loans, net⁽¹⁾		(48,836	)		(59,614	)		(69,723	)		(59,426	)		(45,275	)		(20,536	)
Finance receivables, net		(48,623	)		(30,869	)		(86,186	)		(87,994	)		(113,634	)		(123,713	)
Purchases of furniture, fixtures, equipment and improvements		(13,368	)		(18,375	)		(56,032	)		(46,723	)		(69,457	)		(52,679	)
Free cash flow		2,263			2,510			129,868			122,894			212,548			263,616
Merger and acquisition expenses paid, net of tax benefit		171			2,605			1,675			2,818			4,946			4,379
Adjusted free cash flow	$	2,434		$	5,115		$	131,543		$	125,712		$	217,494		$	267,995

⁽¹⁾Includes the funding of new loans net of cash repayments and recovery of principal through the sale of inventories acquired from forfeiture of pawn collateral.

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

Adjusted Return on Equity and Adjusted Return on Assets

Management believes the presentation of adjusted return on equity and adjusted return on assets provides investors with greater transparency and provides a more complete understanding of the Company’s financial performance by excluding items that management believes are non-operating in nature and not representative of the Company’s core operating performance.

Annualized adjusted return on equity and adjusted return on assets is calculated as follows (dollars in thousands):

	Trailing Twelve
	Months Ended
	September 30, 2024
Adjusted net income⁽¹⁾	$	300,112

Average stockholders’ equity (average of five most recent quarter-end balances)	$	1,987,405
Adjusted return on equity (trailing twelve months adjusted net income divided by average equity)	15		%

Average total assets (average of five most recent quarter-end balances)	$	4,285,437
Adjusted return on assets (trailing twelve months adjusted net income divided by average total assets)	7		%

⁽¹⁾See detail of adjustments to net income in the “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section above.

Constant Currency Results

The Company’s reporting currency is the U.S. dollar, however, certain performance metrics discussed in this release are presented on a “constant currency” basis, which is considered a non-GAAP financial measure. The Company’s management uses constant currency results to evaluate operating results of business operations in Latin America, which are transacted in local currencies in Mexico, Guatemala and Colombia. The Company also has operations in El Salvador, where the reporting and functional currency is the U.S. dollar.

The Company believes constant currency results provide valuable supplemental information regarding the underlying performance of its business operations in Latin America, consistent with how the Company’s management evaluates such performance and operating results. Constant currency results reported herein are calculated by translating certain balance sheet and income statement items denominated in local currencies using the exchange rate from the prior-year comparable period, as opposed to the current comparable period, in order to exclude the effects of foreign currency rate fluctuations for purposes of evaluating period-over-period comparisons. See the Latin America pawn segment tables elsewhere in this release for an additional reconciliation of certain constant currency amounts to as reported GAAP amounts.

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

Exchange Rates for the Mexican Peso, Guatemalan Quetzal and Colombian Peso

	September 30,		Favorable /
	2024	2023	(Unfavorable)
Mexican peso / U.S. dollar exchange rate:
End-of-period	19.6	17.6		(11	)%
Three months ended	18.9	17.1		(11	)%
Nine months ended	17.7	17.8		1	%

Guatemalan quetzal / U.S. dollar exchange rate:
End-of-period	7.7	7.9		3	%
Three months ended	7.7	7.9		3	%
Nine months ended	7.8	7.8		—	%

Colombian peso / U.S. dollar exchange rate:
End-of-period	4,164	4,054		(3	)%
Three months ended	4,095	4,048		(1	)%
Nine months ended	3,979	4,413		10	%

FIRSTCASH HOLDINGS, INC.
INTERSEGMENT TRANSACTIONS
(UNAUDITED)

Intersegment transactions relate to the Company offering AFF’s LTO payment solution in its U.S. pawn stores and are eliminated to arrive at consolidated totals. For the three months ended September 30, 2024 and 2023, these intersegment amounts are as follows:

U.S. pawn retail merchandise sales includes $1.0 million and $1.5 million, respectively. Excluding these intersegment sales, consolidated U.S. retail merchandise sales totaled $234.1 million and $202.3 million, respectively.
U.S. pawn cost of retail merchandise sold includes $0.5 million and $0.8 million, respectively. Excluding these intersegment sales, consolidated U.S. cost of retail merchandise sold totaled $134.4 million and $114.9 million, respectively.
Retail POS payment solutions depreciation of leased merchandise includes $0.4 million and $0.5 million respectively. Excluding these intersegment transactions, consolidated depreciation of leased merchandise totaled $104.9 million and $103.7 million, respectively.
Retail POS payment solutions provision for lease losses includes an increase of $0.1 million and a provision reduction of $0.1 million, respectively. Excluding these intersegment transactions, consolidated provision for lease losses totaled $39.2 million and $39.7 million, respectively.

For the nine months ended September 30, 2024 and 2023, these intersegment amounts are as follows:

U.S. pawn retail merchandise sales includes $3.1 million and $4.9 million, respectively. Excluding these intersegment sales, consolidated U.S. retail merchandise sales totaled $699.1 million and $605.6 million, respectively.
U.S. pawn cost of retail merchandise sold includes $1.7 million and $2.6 million, respectively. Excluding these intersegment sales, consolidated U.S. cost of retail merchandise sold totaled $405.7 million and $346.6 million, respectively.
Retail POS payment solutions depreciation of leased merchandise includes $1.3 million and $1.6 million, respectively. Excluding these intersegment transactions, consolidated depreciation of leased merchandise totaled $335.4 million and $307.8 million, respectively.
Retail POS payment solutions provision for lease losses includes $0.4 million and $0.2 million, respectively. Excluding these intersegment transactions, consolidated provision for lease losses totaled $129.8 million and $141.7 million, respectively.

As of September 30, 2024 and 2023, these intersegment amounts are as follows:

Retail POS payment solutions leased merchandise, net includes $0.2 million and $1.7 million, respectively. Excluding these intersegment transactions, consolidated net leased merchandise totaled $137.8 million and $143.2 million, respectively.

The MIL Network –

January 25, 2025

MIL-OSI Economics: Remitted Limited

Source: Isle of Man

Published on: 24 October 2024

Notice is hereby given that Remitted Limited, which was registered under the Designated Businesses (Registration & Oversight) Act 2015, has been de-registered in accordance with 12(1)(a) of this Act with effect from 24/10/2024.

MIL OSI Economics –

January 25, 2025

MIL-Evening Report: ‘We’ll be talking about the future of negotiations’, says Rabuka on New Caledonia mission

By Susana Suisuiki, RNZ Pacific journalist in Apia

Fiji Prime Minister Sitiveni Rabuka says he will take a back seat in the upcoming Pacific leaders’ fact-finding mission to New Caledonia, which was postponed from earlier in the year.

Leaders from the Cook Islands, Tonga, and Solomon Islands make up a group called the Pacific Islands Forum troika, comprising past, present and future hosts of the annual PIF leaders’ meeting.

The call for a PIF fact-finding mission was made while Fiji was still part of the troika.

Rabuka spoke with French President Emmanuel Macron the week before the mission was originally scheduled to take place.

When asked by RNZ Pacific why the trip had been postponed, Rabuka replied: “I do not know. I’m just the troika-plus.”

Moments after touching down in Samoa, Fiji’s Prime Minister Sitiveni Rabuka was bestowed the chiefly title, Tagaloa in Samoa’s Leauva’a village. #CHOGM2024 pic.twitter.com/zzrNqgc1u0

— Susana Suisuiki (@SanaSuisuikiRNZ) October 23, 2024

Rabuka, who is currently in Apia for the 27th Heads of Government Meeting (CHOGM), was bestowed with a Samoan matai title of Tagaloa by the village of Leauva’a yesterday.

He confirmed to RNZ Pacific that he would be in Nouméa on Sunday.

“We will be talking about the future of negotiations and the relationship between New Caledonia and the people and France,” he said.

PIF Secretary-General Baron Waqa told RNZ Pacific that supporting peace and harmony in New Caledonia was top of the agenda for the leaders’ mission.

Waqa, who is also attending CHOGM, said an advance team was in Nouméa making preparations for the visit.

Violence and destruction has been ongoing in New Caledonia for much of the past five months in protest over French plans for the territory.

The death toll stands at 13.

This article is republished under a community partnership agreement with RNZ.

MIL OSI Analysis – EveningReport.nz –

January 25, 2025

MIL-Evening Report: Grattan on Friday: a possible Trump victory is making the Albanese government cagey about its 2035 climate target

Source: The Conversation (Au and NZ) – By Michelle Grattan, Professorial Fellow, University of Canberra

If Donald Trump wins the US presidency on November 5, his victory will have profound implications for other countries on many fronts. Not least of them will be climate change policy.

Perhaps the uncertainty now hanging over US politics was on the mind of Climate Change and Energy Minister Chris Bowen, who shilly-shallied this week over when he’ll announce Australia’s 2035 emissions reduction target under the Paris climate agreement.

Bowen refused to be pinned down at the Australian Financial Review’s energy and climate summit on whether the target would be public before next year’s election. Neither his office nor that of the prime minister would be more specific later.

Australia, like other countries, is required under the Paris agreement to put forward its target in February. But, also like other countries, Australia is focused on what’s happening in the US.

Trump wants to take the US out of the Paris agreement for the second time. The first exit took effect immediately after his 2020 defeat and incoming President Joe Biden was able to reverse it at once. This time, there’d be no such quick turnaround.

The Biden administration has been strongly committed on climate issues. If the US exited, the Paris agreement would likely be transformed.

There may be other reasons why Bowen is being cagey about the 2035 target. Climate change and energy will be harder issues for Labor in this election, as it struggles with the realities of the transition, than in the 2022 one.

In the run-up to that election, a desperate Scott Morrison pulled out all stops to win support within the Coalition to sign up to the 2050 net-zero emissions target.

Labor was on the front foot, with a policy for a 43% reduction in emissions (on 2005 levels) by 2030, underpinned by a target of 82% renewable electricity by then. The election promise for consumers was a $275 cut in household power bills by 2025.

Crafting a policy is often easier than implementing it. The journey to a clean energy economy is arduous.

The $275 promise was quickly seen as unrealisable. The government has had to provide rebates to keep prices in check. The rollout of renewables is complicated by local resistance to some projects, including wind farms and transmission lines. At present, more than 40% of electricity comes from renewables.

The cost-of-living crisis has increasingly dominated everything. Climate change remains a significant issue with people, but over time it tends to go up and down their scale of concerns, depending on changing circumstances.

The Ipsos Climate Change Report, done annually, found in 2024 “strong notional support for the energy transition”, but low understanding of what progress had been made.

Concerns about the negative impacts of the transition on cost of living and energy reliability have increased, particularly in the current high inflation environment. The perceived economic benefits of the transition are less clear, with many unsure about the impact on jobs and the broader economy.

The emphasis on cost of living is influencing priorities for the energy transition, with Australians wanting to see energy prices and reliability prioritised. There is a growing sentiment that Australia should only take action if other countries are also contributing fairly to climate change efforts.

Of course a summer of bad bushfires can change people’s priorities suddenly. Barring that, Labor is looking at a 2025 election in which it will be more on the defensive than the offensive on climate and energy issues.

The opposition has already acted to sharpen the difference with Labor over the medium term targets. Peter Dutton will have no 2035 target before the election, and has questioned the 2030 target to which Australia is signed up, although he says a Coalition government would not leave the Paris agreement. He is also running hard on his controversial policy for nuclear energy.

While Bowen is not clarifying whether he’ll announce the government’s target ahead of the election, it would be awkward for Australia not to meet the February deadline.

There would not be a penalty, but it would be a bad look, especially given we are vying with Turkey to host, together with Pacific countries, COP31 in 2026. One unknown, incidentally, is whether a Coalition government would continue this bid, which the opposition has describes as a “vanity project”.

If the government does announce the 2035 target before the election, the big question is how ambitious it will make it.

Bowen will receive advice on this from the Climate Change Authority, to which the government has appointed, as head, former New South Wales Liberal Treasurer Matt Kean.

In an earlier discussion paper, the authority said the evidence suggests

A 2035 target in the range of 65-75% […] could be achievable and sustainable if additional action is taken by governments, business, investors and households […]. However, attempting to go much faster could risk significant levels of economic and social disruption and put progress at risk.

A bold target would make the government more vulnerable, just when Labor would want the attention on the Coalition’s problematic nuclear policy. On the other hand, if the target were modest, that would be exploited by the Greens.

Next month, Bowen will attend COP29 in Azerbaijan, where the central issue will be a financial goal, replacing the 2015 goal, for developed and major economies to help fund developing countries’ emission reduction efforts. Bowen, with Egyptian Environment Minister Yasmine Fouad, is leading the consultations on this, and so has a significant role at the conference.

At the COP meeting, Bowen will get a better idea of where other countries are on their expected 2035 targets. He indicated this week he has already started taking soundings. “Obviously […] of course you think about international context.”

By the time of COP, which runs November 11-22, America will have chosen its next president. The COP meeting will either be business-as-usual, looking to an incoming Kamala Harris presidency, or trying to anticipate the implications of a Trump administration that could be a major disruptor of international climate policy.

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

– ref. Grattan on Friday: a possible Trump victory is making the Albanese government cagey about its 2035 climate target – https://theconversation.com/grattan-on-friday-a-possible-trump-victory-is-making-the-albanese-government-cagey-about-its-2035-climate-target-242107

MIL OSI Analysis – EveningReport.nz –

January 25, 2025

MIL-OSI NGOs: Northern Ireland: Anti-racism march to be held in Belfast as race hate attacks at all-time high

Source: Amnesty International –

24 Oct 2024, 11:14am

Belfast For All – stand together against racism

Race hate incidents to the end of June 2024 were already at record levels – before the summer surge in violence

‘Saturday’s march will be a show of support for victims and for all who live in fear that they could be next’ – Patrick Corrigan

Large numbers of people are expected to march in Belfast on Saturday in opposition to ongoing racist attacks in the city.

Following a surge in racist attacks in Northern Ireland during the summer, attacks have continued on a weekly basis, with police figures already showing 2024 as the worst year ever for racist violence in the region.

Race hate incidents had already reached a record high in Northern Ireland by the end of June 2024, before this summer’s surge in racist attacks. A record 1,411 racist incidents and 891 racist crimes were recorded by the PSNI in the year ending June 2024, according to official police data released by the Northern Ireland Statistics and Research Agency (NISRA).

The annual figures showed that racist crimes represented almost 1% of all recorded crime during the period.

Amnesty International is among the organisers of the ‘Belfast for All – stand together against racism’ march and rally which will take place in the city this Saturday and which has the support of scores of organisations, charities and political parties.

Ahead of the march, Patrick Corrigan, Amnesty International’s Northern Ireland Director said:

“Racist violence may have dropped from the headlines, but not a week goes by in this city without another family having their home attacked by racist thugs.

“Saturday’s march will be a show of support for victims and for all who live in fear that they could be next.

“The disgraceful events of August, when a racist mob was able to run amok in Belfast, attacking homes and businesses at will, must never be repeated. But neither must we accept the insidious, ongoing attacks which continue to happen under the cover of darkness week in, week out.”

Saturday’s Belfast For All march and rally has been organised by United Against Racism, with support from Amnesty International, Belfast Islamic Centre and the NIPSA trade union, with people asked to meet at Writers’ Square at 11:30am before marching to Belfast City Hall.

View latest press releases

MIL OSI NGO –

January 25, 2025

MIL-OSI Global: Ukraine cannot defeat Russia – the best the west can do is help Kyiv plan for a secure post-war future

Source: The Conversation – UK – By Frank Ledwidge, Senior Lecturer in Military Strategy and Law, University of Portsmouth

A friend of mine, usually an intensely optimistic pro-Ukraine analyst, returned from Ukraine last week and told me: “It’s like the German Army in January 1945.” The Ukrainians are being driven back on all fronts – including in the Kursk province of Russia, which they had opened with much hope and fanfare in August. More importantly, they are running out of soldiers.

For most of 2024, Ukraine has been losing ground. This week, the town of Selidove in the western Donetsk region is being surrounded and, like Vuhledar earlier this month, is likely to fall in the next week or so – the only variable being how many Ukrainians will be lost in the process. Over the winter, the terrible prospect of a major battle to hold the strategically significant industrial town of Pokrovsk beckons.

Ukrainian forces are steadily losing ground close to the strategically vital town of Pokrovsk, western Donetsk region.
Institute for the Study of War

Ultimately, this is not a war of territory but of attrition. The only resource that counts is soldiers – and here the calculus for Ukraine is not positive.

Ukraine claims to have “liquidated” nearly 700,000 Russian soldiers – with more than 120,000 killed and upwards of 500,000 injured. Its president, Volodymyr Zelensky, admitted in February this year to 31,000 Ukrainian fatalities, with no figure given for injured.

The problem is these Ukrainian totals are apparently believed by western officials, when the reality is likely to be very different. US sources say the war has seen 1 million people killed and wounded on both sides. Crucially, this includes a growing number of Ukrainian civilians.

Low morale and desertion, as well as draft-dodging, are now significant problems for Ukraine. These factors are exacerbating already serious recruitment issues, making it hard to supply the front lines with fresh troops.

A dreadful debate is taking place in Ukraine. The question revolves around whether to mobilise – and risk serious casualties to – the 18-25 age group. Due to economic pressures in the early 2000s, Ukraine suffered a major drop in its birth rate, leaving relatively few people now aged between 15 and 25. Mobilisation and serious attrition of this group may be something Ukraine simply can’t afford, given the already serious demographic crisis the country faces.

And even if this mobilisation does go ahead, by the time the necessary politics, legislation, bureaucracy and training have run their course, the war may be over.

Victory look impossible

History knows of no example where taking on Russia in an attritional contest has proved successful. Let’s be clear: this means there is a real possibility of defeat – there is no sugar-coating this.

Zelensky’s maximalist war aims of restoring Ukraine’s pre-2014 borders, along with other unlikely conditions – which were unchallenged and encouraged by a confused but self-aggrandising west – will not be achieved, and the west’s leaders are partly to blame. Ill-advised wars in Afghanistan and the Middle East left western armed forces hollow, poorly armed, and entirely unprepared for a serious and prolonged conflict, with ammunition stocks likely to last weeks at best.

European promises of millions of artillery rounds have failed to materialise – only 650,000 have been supplied to Kyiv this year, whereas the North Koreans have supplied at least twice that to Russia.

Only the US has significant stocks of weaponry in the form of thousands of armoured vehicles, tanks and artillery pieces in reserve – and it is unlikely to change its policy of drip-feeding weapons to Ukraine now. Even if such a decision is made, the lead-time for delivery will be years, not months.

In a confidential briefing I attended recently given by western defence officials, the atmosphere was downbeat. The situation is “perilous” and “as bad as it has ever been” for Ukraine. Western powers cannot afford another strategic disaster like Afghanistan which, in the words of Ernest Hemingway (aptly quoted by the strategist Lawrence Freedman), happened “gradually, then suddenly”.

There will be no decisive breakthrough by Russia’s army when they take this town or that (say, Pokrovsk). They haven’t the capability to do it. So, there won’t be a collapse – no “Kyiv as Kabul” moment.

However, there are limits to the losses Ukraine can take. We do not know where that limit lies, but we’ll know when it happens. Crucially, there will be no victory for Ukraine. Unforgivably, there is not, and never has been, a western strategy except to bleed Russia as long as possible.

More fundamentally, two ancient ethical questions governing whether a war is just must now be asked and answered: whether there is a reasonable prospect of success, and whether the potential gain is proportionate to the cost.

The problem, as so often before, is that the west has not defined what it considers a success. The cost, meanwhile, is becoming all-too clear.

To have clearly defined its goals and limits would have constituted the beginnings of a strategy – and the west isn’t good at that. Nato’s leaders now need to move quickly beyond meaningless rhetoric or anything that smacks of “as long as it takes”. We saw where that led in Iraq, Afghanistan and Libya.

We need a realistic answer to what something like a “win”, or at least an acceptable settlement, now looks like – as well as the extent to which it is achievable, and whether the west is really going to pursue it. And then for western leaders to act accordingly.

A starting point could be accepting that Crimea, Donetsk and Luhansk are lost – something an increasing number of Ukrainians are beginning to say openly. Then we need to start planning seriously for a post-war Ukraine that will need the west’s suppport more than ever.

Russia cannot possibly take all, or even the bulk of, Ukraine’s territory. Even if it could, it could not possibly hold it. It is amply clear there will be a compromise settlement.

So, it is time for Nato – and the US in particular – to articulate a viable end to this nightmarish ordeal, and to develop a pragmatic strategy to deal with Russia in the coming decade. More importantly, the west must plan how to support a heroic, shattered – but still independent – Ukraine.

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

– ref. Ukraine cannot defeat Russia – the best the west can do is help Kyiv plan for a secure post-war future – https://theconversation.com/ukraine-cannot-defeat-russia-the-best-the-west-can-do-is-help-kyiv-plan-for-a-secure-post-war-future-242010

MIL OSI – Global Reports –

January 25, 2025

MIL-OSI Global: ‘Cosmic inflation’: did the early cosmos balloon in size? A mirror universe going backwards in time may be a simpler explanation

Source: The Conversation – UK – By Neil Turok, Higgs Chair of Theoretical Physics, University of Edinburgh

The mirror universe, with the big bang at the centre. Neil Turok, CC BY-SA

We live in a golden age for learning about the universe. Our most powerful telescopes have revealed that the cosmos is surprisingly simple on the largest visible scales. Likewise, our most powerful “microscope”, the Large Hadron Collider, has found no deviations from known physics on the tiniest scales.

These findings were not what most theorists expected. Today, the dominant theoretical approach combines string theory, a powerful mathematical framework with no successful physical predictions as yet, and “cosmic inflation” – the idea that, at a very early stage, the universe ballooned wildly in size. In combination, string theory and inflation predict the cosmos to be incredibly complex on tiny scales and completely chaotic on very large scales.

The nature of the expected complexity could take a bewildering variety of forms. On this basis, and despite the absence of observational evidence, many theorists promote the idea of a “multiverse”: an uncontrolled and unpredictable cosmos consisting of many universes, each with totally different physical properties and laws.

This is article is part of our series Cosmology in crisis? which uncovers the greatest problems facing cosmologists today – and discusses the implications of solving them.

So far, the observations indicate exactly the opposite. What should we make of the discrepancy? One possibility is that the apparent simplicity of the universe is merely an accident of the limited range of scales we can probe today, and that when observations and experiments reach small enough or large enough scales, the asserted complexity will be revealed.

The other possibility is that the universe really is very simple and predictable on both the largest and smallest scales. I believe this possibility should be taken far more seriously. For, if it is true, we may be closer than we imagined to understanding the universe’s most basic puzzles. And some of the answers may already be staring us in the face.

The trouble with string theory and inflation

The current orthodoxy is the culmination of decades of effort by thousands of serious theorists. According to string theory, the basic building blocks of the universe are miniscule, vibrating loops and pieces of sub-atomic string. As currently understood, the theory only works if there are more dimensions of space than the three we experience. So, string theorists assume that the reason we don’t detect them is that they are tiny and curled up.

Unfortunately, this makes string theory hard to test, since there are an almost unimaginable number of ways in which the small dimensions can be curled up, with each giving a different set of physical laws in the remaining, large dimensions.

Meanwhile, cosmic inflation is a scenario proposed in the 1980s to explain why the universe is so smooth and flat on the largest scales we can see. The idea is that the infant universe was small and lumpy, but an extreme burst of ultra-rapid expansion blew it up vastly in size, smoothing it out and flattening it to be consistent with what we see today.

Inflation is also popular because it potentially explains why the energy density in the early universe varied slightly from place to place. This is important because the denser regions would have later collapsed under their own gravity, seeding the formation of galaxies.

Over the past three decades, the density variations have been measured more and more accurately both by mapping the cosmic microwave background – the radiation from the big bang – and by mapping the three-dimensional distribution of galaxies.

In most models of inflation, the early extreme burst of expansion which smoothed and flattened the universe also generated long-wavelength gravitational waves –– ripples in the fabric of space-time. Such waves, if observed, would be a “smoking gun” signal confirming that inflation actually took place. However, so far the observations have failed to detect any such signal. Instead, as the experiments have steadily improved, more and more models of inflation have been ruled out.

Furthermore, during inflation, different regions of space can experience very different amounts of expansion. On very large scales, this produces a multiverse of post-inflationary universes, each with different physical properties.

The history of the universe according to the model of cosmic inflation.
wikipedia, CC BY-SA

The inflation scenario is based on assumptions about the forms of energy present and the initial conditions. While these assumptions solve some puzzles, they create others. String and inflation theorists hope that somewhere in the vast inflationary multiverse, a region of space and time exists with just the right properties to match the universe we see.

However, even if this is true (and not one such model has yet been found), a fair comparison of theories should include an “Occam factor”, quantifying Occam’s razor, which penalises theories with many parameters and possibilities over simpler and more predictive ones. Ignoring the Occam factor amounts to assuming that there is no alternative to the complex, unpredictive hypothesis – a claim I believe has little foundation.

Over the past several decades, there have been many opportunities for experiments and observations to reveal specific signals of string theory or inflation. But none have been seen. Again and again, the observations turned out simpler and more minimal than anticipated.

It is high time, I believe, to acknowledge and learn from these failures, and to start looking seriously for better alternatives.

A simpler alternative

Recently, my colleague Latham Boyle and I have tried to build simpler and more testable theories that do away with inflation and string theory. Taking our cue from the observations, we have attempted to tackle some of the most profound cosmic puzzles with a bare minimum of theoretical assumptions.

Our first attempts succeeded beyond our most optimistic hopes. Time will tell whether they survive further scrutiny. However, the progress we have already made convinces me that, in all likelihood, there are alternatives to the standard orthodoxy – which has become a straitjacket we need to break out of.

I hope our experience encourages others, especially younger researchers, to explore novel approaches guided strongly by the simplicity of the observations – and to be more sceptical about their elders’ preconceptions. Ultimately, we must learn from the universe and adapt our theories to it rather than vice versa.

Boyle and I started out by tackling one of cosmology’s greatest paradoxes. If we follow the expanding universe backward in time, using Einstein’s theory of gravity and the known laws of physics, space shrinks away to a single point, the “initial singularity”.

In trying to make sense of this infinitely dense, hot beginning, theorists including Nobel laureate Roger Penrose pointed to a deep symmetry in the basic laws governing light and massless particles. This symmetry, called “conformal” symmetry, means that neither light nor massless particles actually experience the shrinking away of space at the big bang.

By exploiting this symmetry, one can follow light and particles all the way back to the beginning. Doing so, Boyle and I found we could describe the initial singularity as a “mirror”: a reflecting boundary in time (with time moving forward on one side, and backward on the other).

Picturing the big bang as a mirror neatly explains many features of the universe which might otherwise appear to conflict with the most basic laws of physics. For example, for every physical process, quantum theory allows a “mirror” process in which space is inverted, time is reversed and every particle is replaced with its anti-particle (a particle similar to it in almost all respects, but with the opposite electric charge).

According to this powerful symmetry, called CPT symmetry, the “mirror” process should occur at precisely the same rate as the original one. One of the most basic puzzles about the universe is that it appears to [violate CPT symmetry] because time always runs forward and there are more particles than anti-particles.

Our mirror hypothesis restores the symmetry of the universe. When you look in a mirror, you see your mirror image behind it: if you are left-handed, the image is right-handed and vice versa. The combination of you and your mirror image are more symmetrical than you are alone.

Likewise, when Boyle and I extrapolated our universe back through the big bang, we found its mirror image, a pre-bang universe in which (relative to us) time runs backward and antiparticles outnumber particles. For this picture to be true, we don’t need the mirror universe to be real in the classical sense (just as your image in a mirror isn’t real). Quantum theory, which rules the microcosmos of atoms and particles, challenges our intuition so at this point the best we can do is think of the mirror universe as a mathematical device which ensures that the initial condition for the universe does not violate CPT symmetry.

Surprisingly, this new picture provided an important clue to the nature of the unknown cosmic substance called dark matter. Neutrinos are very light, ghostly particles which, typically, move at close to the speed of light and which spin as they move along, like tiny tops. If you point the thumb of your left hand in the direction the neutrino moves, then your four fingers indicate the direction in which it spins. The observed, light neutrinos are called “left-handed” neutrinos.

Heavy “right-handed” neutrinos have never been seen directly, but their existence has been inferred from the observed properties of light, left-handed neutrinos. Stable, right-handed neutrinos would be the perfect candidate for dark matter because they don’t couple to any of the known forces except gravity. Before our work, it was unknown how they might have been produced in the hot early universe.

Our mirror hypothesis allowed us to calculate exactly how many would form, and to show they could explain the cosmic dark matter.

A testable prediction followed: if the dark matter consists of stable, right-handed neutrinos, then one of three light neutrinos that we know of must be exactly massless. Remarkably, this prediction is now being tested using observations of the gravitational clustering of matter made by large-scale galaxy surveys.

The entropy of universes

Encouraged by this result, we set about tackling another big puzzle: why is the universe so uniform and spatially flat, not curved, on the largest visible scales? The cosmic inflation scenario was, after all, invented by theorists to solve this problem.

Entropy is a concept which quantifies the number of different ways a physical system can be arranged. For example, if we put some air molecules in a box, the most likely configurations are those which maximise the entropy – with the molecules more or less smoothly spread throughout space and sharing the total energy more or less equally. These kinds of arguments are used in statistical physics, the field which underlies our understanding of heat, work and thermodynamics.

The late physicist Stephen Hawking and collaborators famously generalised statistical physics to include gravity. Using an elegant argument, they calculated the temperature and the entropy of black holes. Using our “mirror” hypothesis, Boyle and I managed to extend their arguments to cosmology and to calculate the entropy of entire universes.

To our surprise, the universe with the highest entropy (meaning it is the most likely, just like the atoms spread out in the box) is flat and expands at an accelerated rate, just like the real one. So statistical arguments explain why the universe is flat and smooth and has a small positive accelerated expansion, with no need for cosmic inflation.

How would the primordial density variations, usually attributed to inflation, have been generated in our symmetrical mirror universe? Recently, we showed that a specific type of quantum field (a dimension zero field) generates exactly the type of density variations we observe, without inflation. Importantly, these density variations aren’t accompanied by the long wavelength gravitational waves which inflation predicts – and which haven’t been seen.

These results are very encouraging. But more work is needed to show that our new theory is both mathematically sound and physically realistic.

Even if our new theory fails, it has taught us a valuable lesson. There may well be simpler, more powerful and more testable explanations for the basic properties of the universe than those the standard orthodoxy provides.

By facing up to cosmology’s deep puzzles, guided by the observations and exploring directions as yet unexplored, we may be able to lay more secure foundations for both fundamental physics and our understanding of the universe.

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

– ref. ‘Cosmic inflation’: did the early cosmos balloon in size? A mirror universe going backwards in time may be a simpler explanation – https://theconversation.com/cosmic-inflation-did-the-early-cosmos-balloon-in-size-a-mirror-universe-going-backwards-in-time-may-be-a-simpler-explanation-238343

MIL OSI – Global Reports –

January 25, 2025

MIL-OSI Global: There’s a crisis in special educational needs provision: here’s the situation across the UK and Ireland

Source: The Conversation – UK – By Cathryn Knight, Senior Lecturer in Psychology in Education, University of Bristol

Ermolaev Alexander/Shutterstock

In the UK and Ireland, children who have significant special educational needs and disabilities can receive their education outside mainstream school. This often takes place in “special schools” or “special classes”.

In the UK, as well as the Republic of Ireland, legislation sets out that children have the right to attend mainstream education. This right cannot be refused based on the complexity of the child’s needs. However, many children are educated in specialist schools, and the devolved governments of the UK, and Ireland, have taken differing approaches to this provision.

But there is a problem. Across the UK and Ireland, there are far fewer places available in specialist schools and classes for the number of children identified with needs significant enough to warrant a place.

England

In 2010, then-prime minister David Cameron set out the aim to “end the bias” towards including children with special educational needs and disabilities in mainstream schools.

His government felt there had been an overemphasis on inclusion in mainstream schools. As a consequence, England has seen an expansion of specialist education provision. From 2015 to 2023, there has been a 47% increase in the number of pupils at special schools in England – from 109,177 to 161,072.
However, as of May 2024, 4,407 children across England were waiting for school places in specialist provision.

There has also been a large increase in the number of appeals against councils by parents or carers of children with special educational needs in England, challenging the decision made around a child’s school placement and provision.

A new report from the National Audit Office on special educational needs suggests that the current system in England is unsustainable, with many councils set to run out of money by early 2026.

Wales

Wales has also seen a 25% increase in special school provision from 2017-18 to 2023-4.

However, there has recently been a large decrease in the number of learners being identified with additional learning needs. This has coincided with the introduction of a new additional learning needs system.

However, the proportion of all learners in special schools has increased. This means that this reduction in identification does not seem to have changed the number of those who require specialist placements.

Scotland

Scotland has taken a different route. Here, the legal right to mainstream schooling has been taken a step further: there is an underlying “presumption of mainstreaming”, in other words, a right to attend a mainstream school, although exceptions in which a specialist provision should be considered are set out.

This presumption of mainstreaming means that there has been a reduction in the number of special schools. However, alongside this there has been an increase in the proportion of children not spending time in mainstream classes.

There has been an increase in special needs provision in mainstream classes in Scotland.
Evgeny Atamanenko/Shutterstock

This implies that more children are being educated in units attached to mainstream schools, without necessarily participating in mainstream classes. A recent review has raised concerns that the children with additional support needs in mainstream schools are not having their needs met.

Northern Ireland

The number of children with a statement of special educational needs in Northern Ireland increased by 24% in the five years from 2017-18 to 2021-22. A Department of Education official recently told the Education Committee of the NI Assembly that there was a need for an additional 1,000 places for children with SEN. This would require 66 new special school classes and 94 new specialist classes in mainstream schools.

Northern Ireland is addressing the increased demand for special school places by embarking on a programme to develop specialist provision in mainstream schools. It is important to note, however, that although attached to and often under the same roof as mainstream schools, these are separate, specialist classes for children whose needs would ordinarily have been met in special schools, if pupil places had been available.

Republic of Ireland

In the Irish republic, there has been a dramatic increase in demand for specialist provision. There has also been an increase in the number of special schools in recent years, from 123 in 2018-19 to 134 in 2024-25, and further schools are planned.

However, the challenges experienced by children with SEN in accessing school places continues. Some children are receiving home tuition grants because they don’t have a school place, and even more students are waiting to secure a place for the school year 2024-25. To address this, the minister for education in Ireland is now able to compel schools to open special classes under amended legislation.

The challenge

The devolved governments of the UK, and the Republic of Ireland, are committed to the UN Convention on the Rights of Persons with Disabilities, which upholds the right to inclusive education for all learners. This includes the right to be educated without segregation.

Scotland have addressed this by reducing specialist provision – although there have been criticisms of how this has been implemented in practice. Elsewhere in the UK, the demand for specialist provision is leading to each government increasing the amount of specialist provision, as opposed to considering how the principles of inclusive education could be embedded in mainstream schools.

In line with guidance from the UN, it is important to consider how mainstream schools can effectively support and include all learners. If these schools are designed to better accommodate a broader range of learners, the need for specialist placements could well decrease.

However, criticisms of the Scottish system show that without adequate support, placing children with special educational needs in mainstream schools is not enough for students to feel fully included.

Cathryn Knight receives funding from the ESRC Impact Acceleration Account.

Joanne Banks receives funding from The Irish Research Council New Foundations Award.

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

– ref. There’s a crisis in special educational needs provision: here’s the situation across the UK and Ireland – https://theconversation.com/theres-a-crisis-in-special-educational-needs-provision-heres-the-situation-across-the-uk-and-ireland-240264

MIL OSI – Global Reports –

January 25, 2025

MIL-OSI Global: Many important 20th-century philosophers investigated ghosts – here’s how they explained them

Source: The Conversation – UK – By Matyáš Moravec, Lecturer in Philosophy, Queen’s University Belfast

Hamlet and the Ghost by Frederick James Shields (1901). Manchester Art Gallery

Most people imagine philosophers as rational thinkers who spend their time developing abstract logical theories and strongly reject superstitious beliefs. But several 20th-century philosophers actively investigated spooky topics such as clairvoyance, telepathy – even ghosts.

Many of these philosophers, including Henri Bergson and William James, were interested in what was called “psychical research”. This was the academic study of paranormal phenomena including telepathy, telekinesis and other-worldly spirits.

These thinkers attended seances and were attempting to develop theories about ghosts, life after death and the powers exhibited by mediums in trances. My recent archival research has been looking at how these topics shaped 20th-century philosophy.

CD Broad (1887-1971) was a professor of philosophy at the University of Cambridge. He is now recognised as one of the most important writers on the philosophy of time. He also published on ethics, logic and the history of philosophy. What is less known, though, is that he was an active member of the Society for Psychical Research, a learned society dedicated to the study of paranormal phenomena. The society twice elected him as their president, and he published widely on topics including clairvoyance and poltergeists.

In his 1925 book, The Mind and Its Place in Nature, Broad developed what has come to be known as the “compound theory” of ghosts. Broad argued that the human mind was a compound of two components. One of these was the “physical factor,” roughly corresponding to the body. The other one was the “psychic factor,” which carries our mental content like emotions or thoughts. The two of them conjointly form the human mind – just like salt is composed of sodium and chloride.

Broad believed that after death, the psychic factor can continue existing for a bit on its own and might enter, like a spirit, a medium during a seance.

Images in the ether

Another philosopher interested in ghosts and spirits of the dead was HH Price (1899-1984). He was a professor of logic at the University of Oxford and is mostly known for his publications on the philosophy of perception. However, just like Broad, he was heavily involved in the Society for Psychical Research and attended several international conferences dedicated to life after death and telepathy.

Price believed ghosts could appear to sensitive people.
Wellcome Collection, CC BY

In his presidential address to the society in 1939, Price tried to offer an explanation of ghosts and hauntings.

At any given moment, he argued, your mind is full of “mental images” – the memory of your last holiday, the things you see outside your window, your hopes and expectations for the future. Price theorised that there is a substance, which he called the “psychic ether” that exists halfway between matter and the human mind. He believed that this ether could carry the images that currently exist in your mind even after you die. A bundle of these images and memories can appear as a ghost to some particularly sensitive people.

What does ‘ghost’ mean?

Casimir Lewy (1919-1991) was one of the most influential philosophical logicians of the 20th century. He spent most of his career at the University of Cambridge – in fact, the philosophy faculty library there is named after him.

Lewy is now mostly known for his work on logic, and few people know that he actually wrote his PhD thesis (which was examined by Broad) on life after death.

Portrait of Casimir Lewy by Stanisław Ignacy Witkiewicz (1937).
Trinity College

He was primarily interested in language and in the meanings of the terms people use when they talk about ghosts and life after death. What does it mean to say that I might survive the death of my body? What sort of experiences would I need to have as a ghost for the statement “I have survived my death” to be true? Would I have to be able to see myself in the mirror, or to speak to people in the seance room?

Lewy insisted that these questions need answering before looking at the empirical “evidence” for ghosts.

Following a series of scandalous and widely publicised discoveries of fraudulent mediums faking their supernatural powers and accusations of pseudo-scientific research methods, psychical research eventually moved to the fringes of academia. Lewy, for example, never returned to write on these topics after passing the defence of his PhD in 1943.

Nevertheless, despite its brief lifespan, academic psychical research had a significant influence on an entire generation of British philosophers. It shaped their views on time, causation and matter, and gave them an opportunity to think one of life’s most pressing questions: what happens after we die?

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

– ref. Many important 20th-century philosophers investigated ghosts – here’s how they explained them – https://theconversation.com/many-important-20th-century-philosophers-investigated-ghosts-heres-how-they-explained-them-241635

MIL OSI – Global Reports –

January 25, 2025

MIL-OSI Global: Students with special educational needs are years behind their peers – they need specialist teachers in mainstream classrooms

Source: The Conversation – UK – By Johny Daniel, Assistant Professor, School of Education, Durham University

BearFotos/Shutterstock

A new report from the National Audit Office into special educational needs provision in England has concluded that despite a significant increase investment over the last decade, “the system is still not delivering better outcomes for children and young people”.

This is borne out by my research. Students with special educational needs in England are significantly behind in reading, writing and maths compared to their classmates.

Laws like the 2014 Children and Families Act, which aimed to improve support for these students, haven’t closed the gap. My recent research suggests that we need to rethink current educational policies and practices.

My study looked at data from 2.5 million year 6 students (aged ten and 11) between 2014 and 2019. It shows that students with special educational needs are significantly behind in key academic areas.

On average, students with special educational needs are two years behind in writing and one and a half years behind in reading and maths. The gap in maths is growing, which is especially worrying. It shows that current educational strategies are failing these students.

Not all students with special educational needs face the same challenges. Students with intellectual disabilities were, on average, more than two years behind in writing and maths. In contrast, students with autism spectrum disorder and visual impairment do somewhat better, especially in reading, but they are still, on average, about one year behind.

Rethinking support

Despite well-intentioned policies, current educational frameworks are falling short. A major issue is the heavy reliance on teaching assistants as the main support for students with special educational needs in mainstream schools.

Teaching assistants are dedicated and play an important role in classrooms. However, research shows that their involvement can sometimes have negative effects on academic outcomes due to a limited range of teaching methods and lack of professional development. Over-relying on teaching assistants without specialised support might be one reason for the continuing achievement gap.

This raises important questions. If we would not accept teaching assistants as the main instructors for typical students, it should not be acceptable for students with special educational needs, who have more complex learning needs.

Support in schools also comes from special educational needs coordinators. They manage the school’s approach to supporting students with special educational needs. They handle administrative tasks, work with parents and outside agencies, and ensure legal compliance. But while their role is important, they usually do not teach students directly.

One solution is to have specialised special education teachers in mainstream schools. This is not just a suggestion; it’s a critical need.

Special education teachers are trained educators who work directly with students needing extra support. They teach tailored lessons, adapt teaching materials, and use specialised strategies to meet individual learning needs. Their focus is on providing hands-on educational help within the school.

Learning from other countries

Integrating special education teachers into our mainstream classrooms, as seen in countries such as the US and Singapore, could be the key to better supporting our students.

In these countries, special education teachers are part of the mainstream classrooms. They complete certification programmes, learning advanced skills in assessing students’ needs, developing tailored support and creating individual education plans. They teach alongside general educators, ensuring that students with special educational needs are not left out but receive high-quality support.

This approach addresses both academic and emotional needs in the classroom, providing an effective support system.

Similar steps should be taken in England to establish comprehensive special education teacher training programmes. This could include postgraduate certifications in special education or specialised modules in existing teacher education programmes.

Specialist teachers could help contain the attainment gap.
PeopleImages.com – Yuri A/Shutterstock

Inspection frameworks like Ofsted must include specific criteria to evaluate the presence and effectiveness of specialised support in classrooms for students with special educational needs.

Schools should be encouraged to hire qualified special education teachers, and government funding models must be changed to support these professionals. Also, ongoing professional development should be a priority, ensuring that all educators expand their expertise in proven teaching methods.

By aligning teacher training, hiring and policies, England can reduce its reliance on teaching assistants as the main support for students with special educational needs. Instead, schools can have strong support systems led by trained special education teachers. These specialists can work with teaching assistants and classroom teachers to provide more effective, targeted support.

This change would provide students with special educational needs with improved overall quality of teaching and learning. This could lead to mainstream classrooms fostering a truly inclusive educational environment.

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

– ref. Students with special educational needs are years behind their peers – they need specialist teachers in mainstream classrooms – https://theconversation.com/students-with-special-educational-needs-are-years-behind-their-peers-they-need-specialist-teachers-in-mainstream-classrooms-240147

MIL OSI – Global Reports –

January 25, 2025

MIL-OSI Video: CEO Climate Alliance Letter | Sumant Sinha

Source: World Economic Forum (video statements)

We need a global agency to regulate carbon pricing, says ReNew CEO Sumant Sinha. ‘All we’re tracking are pledges. If you start tracking actions, you’ll find actions are even further behind.’

In an open letter ahead of COP29, the Alliance of CEO Climate Leaders calls for urgent action to combat climate change. Highlighting the critical role of collaborative leadership from business and government, the world’s largest CEO-led climate community is advocating for ambitious, science-based targets to support climate action and spur investment.

Read the full letter: wef.ch/COP29OpenLetter24

#AllianceofCEOClimateLeaders #Climate #ClimateChange #COP29 #WorldEconomicForum

The World Economic Forum is the International Organization for Public-Private Cooperation. The Forum engages the foremost political, business, cultural and other leaders of society to shape global, regional and industry agendas. We believe that progress happens by bringing together people from all walks of life who have the drive and the influence to make positive change.

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https://www.youtube.com/watch?v=0SdNNaI52jc

MIL OSI Video –

January 25, 2025

MIL-OSI Video: President Cyril Ramaphosa’s remarks during the BRICS Outreach and BRICS Plus in Russia

Source: Republic of South Africa (video statements-2)

President Cyril Ramaphosa’s remarks during the BRICS Outreach and BRICS Plus in Russia

https://www.youtube.com/watch?v=LIwC23aw2NM

MIL OSI Video –

January 25, 2025

MIL-OSI USA: FACT SHEET: Biden-⁠ Harris Administration Outlines Coordinated Approach to Harness Power of AI for U.S. National Security

US Senate News:

Source: The White House
Today, President Biden is issuing the first-ever National Security Memorandum (NSM) on Artificial Intelligence (AI). The NSM’s fundamental premise is that advances at the frontier of AI will have significant implications for national security and foreign policy in the near future. The NSM builds on key steps the President and Vice President have taken to drive the safe, secure, and trustworthy development of AI, including President Biden’s landmark Executive Order to ensure that America leads the way in seizing the promise and managing the risks of AI.
The NSM directs the U.S. Government to implement concrete and impactful steps to (1) ensure that the United States leads the world’s development of safe, secure, and trustworthy AI; (2) harness cutting-edge AI technologies to advance the U.S. Government’s national security mission; and (3) advance international consensus and governance around AI.
The NSM is designed to galvanize federal government adoption of AI to advance the national security mission, including by ensuring that such adoption reflects democratic values and protects human rights, civil rights, civil liberties and privacy. In addition, the NSM seeks to shape international norms around AI use to reflect those same democratic values, and directs actions to track and counter adversary development and use of AI for national security purposes.
In particular, the NSM directs critical actions to:
Ensure that the United States leads the world’s development of safe, secure, and trustworthy AI:
Developing advanced AI systems requires large volumes of advanced chips. President Biden led the way when he signed the CHIPS Act, which made major investments in our capacity to manufacture leading-edge semiconductors. The NSM directs actions to improve the security and diversity of chip supply chains, and to ensure that, as the United States supports the development of the next generation of government supercomputers and other emerging technology, we do so with AI in mind.
Our competitors want to upend U.S. AI leadership and have employed economic and technological espionage in efforts to steal U.S. technology. This NSM makes collection on our competitors’ operations against our AI sector a top-tier intelligence priority, and directs relevant U.S. Government entities to provide AI developers with the timely cybersecurity and counterintelligence information necessary to keep their inventions secure.
In order for the United States to benefit maximally from AI, Americans must know when they can trust systems to perform safely and reliably. For this reason, the NSM formally designates the AI Safety Institute asU.S. industry’s primary port of contact in the U.S. Government, one staffed by technical experts who understand this quickly evolving technology. It also lays out strengthened and streamlined mechanisms for the AI Safety Institute to partner with national security agencies, including the intelligence community, the Department of Defense, and the Department of Energy.
The NSM doubles down on the National AI Research Resource, the pilot for which is already underway, to ensure that researchers at universities, from civil society, and in small businesses can conduct technically meaningful AI research. AI is moving too fast, and is too complex, for us to rely exclusively on a small cohort of large firms; we need to empower and learn from a full range of talented individuals and institutions who care about making AI safe, secure, and trustworthy.
The NSM directs the National Economic Council to coordinate an economic assessment of the relative competitive advantage of the United States private sector AI ecosystem.
Enable the U.S. Government to harness cutting-edge AI, while protecting human rights and democratic values, to achieve national security objectives:
The NSM does not simply demand that we use AI systems in service of the national security mission effectively; it also unequivocally states we must do so only in ways that align with democratic values. It provides the first-ever guidance for AI governance and risk management for use in national security missions, complementing previous guidance issued by the Office of Management and Budget for non-national security missions.
The NSM directs the creation of a Framework to Advance AI Governance and Risk Management in National Security, which is being published today alongside this NSM. This Framework provides further detail and guidance to implement the NSM, including requiring mechanisms for risk management, evaluations, accountability, and transparency. These requirements require agencies to monitor, assess, and mitigate AI risks related to invasions of privacy, bias and discrimination, the safety of individuals and groups, and other human rights abuses. This Framework can be updated regularly in order to keep pace with technical advances and ensure future AI applications are responsible and rights-respecting.
The NSM directs changes across the board to make sure we are using AI systems effectively while adhering to our values. Among other actions, it directs agencies to propose streamlined procurement practices and ways to ease collaboration with non-traditional vendors.
Advance international consensus and governance around AI:
The NSM builds on substantial international progress on AI governance over the last twelve months, thanks to the leadership and diplomatic engagement of President Biden and Vice President Harris. Alongside G7 allies, we developed the first-ever International Code of Conduct on AI in 2023. At the Bletchley and Seoul AI Safety Summits, the United States joined more than two dozen nations in outlining clear principles. 56 nations have signed up to our Political Declaration on the Military Use of AI and Autonomy, which establishes principles for military AI capabilities. And at the United Nations, the United States sponsored the first-ever UN General Assembly Resolution on AI, which passed unanimously and included the People’s Republic of China as a co-sponsor.
The NSM directs the U.S. Government to collaborate with allies and partners to establish a stable, responsible, and rights-respecting governance framework to ensure the technology is developed and used in ways that adhere to international law while protecting human rights and fundamental freedoms.
The release of today’s NSM is part of the Biden-Harris Administration’s comprehensive strategy for responsible innovation, and builds on previous actions that President Biden and Vice President Harris have taken.

MIL OSI USA News –

January 25, 2025

MIL-OSI USA: Statement from National Economic Advisor Lael Brainard on National Security Memorandum (NSM) on Artificial Intelligence (AI)

US Senate News:

Source: The White House
Today, the President is issuing the first-ever National Security Memorandum (NSM) on Artificial Intelligence (AI). The fundamental premise is that AI will have significant implications for national security. The AI NSM sets out goals to enable the US Government to harness cutting-edge AI technologies, and to advance international consensus and governance around AI.
In addition, there are implications for economic policy. The AI National Security Memorandum establishes that retaining US leadership in the most advanced AI models will be vital for our national security in coming years. The US lead today on the most advanced AI models reflects several important US economic strengths: our innovative private sector, the ability to develop and source world class talent, strengths in advanced semiconductor design, dynamic capital allocation, and abundant compute power.
We should not take those strengths for granted in the future. Indeed, we are all familiar with past instances when we saw critical technologies and supply chains that were developed and commercialized here in the US migrate offshore for lack of critical public sector support. That is why we are laser focused on maintaining the strongest AI ecosystem in the world here in the United States. The NSM directs the National Economic Council to coordinate an economic assessment of the relative competitive advantage of the US private sector AI ecosystem.
Sustaining US preeminence in frontier AI into the future will require strong domestic foundations in semiconductors, infrastructure, and clean energy—including the large datacenters that provide computing resources. The private sector is already making significant investments in AI innovation, and now we’re making sure the government is moving quickly on policy changes and the support necessary to enable rapid AI infrastructure growth over the next several years. The historic Biden-Harris investment laws will be critical enablers.
Developing AI systems will require a large volume of the most advanced semiconductors. The CHIPS and Science Act is enabling major investments here in the US for the fabrication of the leading-edge semiconductors that are critical to AI frontier models, in close proximity to world-class chips designers and downstream customers.
One of the most pressing needs is the rapid growth in computational power for the training and operation of frontier AI models. AI datacenters will need to run on clean energy and in order to meet their needs we will need to accelerate the deployment of transmission and clean energy projects. We will meet these needs while keeping residential electricity costs low and meeting our climate goals. Fortunately, the Bipartisan Infrastructure Law and the clean energy provisions of the Inflation Reduction Act have given us a good foundation to build on. We are committed to helping navigate permitting processes across the federal government, and working with states and localities. We took a step towards supporting these goals with the Task Force on AI Datacenter Infrastructure that we launched last month. And we have seen a number of recent announcements of companies investing in projects that will bring new clean energy online to power AI data centers.
Having the right workforce and talent will also play a key role in developing large-scale AI datacenters. This will range from AI experts to pipefitters and electrical workers. We are taking action to ensure AI infrastructure creates good jobs, while investing in our workforce to enable American workers to drive innovation.
Of course, all of these efforts must be governed by the critical guardrails established last year by the Executive Order on Safe, Secure, and Trustworthy Artificial Intelligence and commitments we secured last year from leading AI companies to manage the risks posed by AI. Today’s NSM is just the latest step in a series of actions thanks to the leadership and diplomatic engagement of the President and Vice President, and there will be additional steps taken in the coming months to further support US leadership in AI.

MIL OSI USA News –

January 25, 2025

MIL-OSI United Kingdom: Home Office hits 500 jobs milestone in Stoke-on-Trent

Source: City of Stoke-on-Trent

Published: Thursday, 24th October 2024

More than 500 government jobs have been created in Stoke-on-Trent over the last two years.

The huge employment boost comes as part of a long-term commitment by the Home Office to create hundreds of new roles in the city.

The 500 new jobs include roles that are pivotal in operational activity across the country, as well as corporate functions.

Councillor Jane Ashworth, leader of Stoke-on-Trent City Council, said: “We are so pleased to see that the Home Office has hit its target of bringing 500 new jobs to the city in such a short space of time. This is a huge milestone for Stoke-on-Trent.

“We want to ensure our residents have access to good jobs with higher wages, so we are delighted that the Home Office has made this commitment to our city.”

In 2023, the Home Office signed a lease for 38,000 sq ft of office space at the Two Smithfield building in the city centre – initially creating around 200 new jobs.

Eighteen months on, that number has risen to more than 500 employees, most of which are local to Stoke-on-Trent.

The government department had been in talks with the city council about building a brand-new base in the city which would house all of its Stoke-on-Trent workforce.

Now the Home Office has confirmed that it is looking to sign a long-term lease for existing office space in the city instead, in line with its firm commitment to remain in the city.

Cllr Ashworth added: “We will continue to work with the Home Office to ensure they can find a permanent home in the city and will look at how we can potentially use existing or repurposed sites while doing everything we can to ensure these new jobs remain in the city for the long-term.”

Minister of State, Lord David Hanson said: “We are committed to having a strong presence in Stoke-on-Trent and by fulfilling our commitment to bring more than 500 jobs to the city, we will ensure the region has a huge part to play in tackling some of the biggest challenges facing the UK.

“Since taking office I have held constructive discussions with local partners in the region and I look forward to building on these relationships to explore how the Home Office can provide further opportunities to Stoke-on-Trent.”

MIL OSI United Kingdom –

January 25, 2025

MIL-OSI USA: Sullivan, Senate Vote to Confirm Pete Hegseth as Defense Secretary

US Senate News:

Source: United States Senator for Alaska Dan Sullivan

01.24.25

WASHINGTON—U.S. Senator Dan Sullivan (R-Alaska), Colonel, USMCR (ret.), a member of the Senate Armed Services Committee (SASC) and chair of the SASC Subcommittee on Readiness and Management Support, voted tonight to confirm Pete Hegseth as the secretary of defense. Senator Sullivan met with Hegseth and received commitments from him to continue the historic build-up of the military in Alaska, in recognition of the state’s critical importance to national defense, and restore the military’s core warfighting mission. Hegseth has a decorated career of service in the U.S. Army, completing deployments to Iraq and Afghanistan and earning two Bronze Stars and two Army Commendation Medals.

“After a number of substantive discussions with Pete Hegseth, including during his confirmation hearing, I am confident Mr. Hegseth will work to refocus our military on lethality, warfighting and peace through strength, as well as getting rid of the damaging woke policies of the Biden administration, some of which I witnessed firsthand as a Marine Corps Reserve Officer,” said Sen. Sullivan. “These have been my top priorities as a member of the Senate Armed Services Committee, and they will be Mr. Hegseth’s. Mr. Hegseth also assured me that he understands the important role that women play in our military, including in combat, as well as the strategic importance of Alaska. Along with President Trump, he is also committed to continuing the military build-up in our great state. I want to congratulate the incoming secretary of defense on his confirmation and look forward to welcoming him up to Alaska soon to see firsthand the critical strategic asset our state is to our national security.”

MIL OSI USA News –

January 25, 2025

MIL-OSI United Kingdom: Carols in the Chamber 2024

Source: City of Preston

This December, the Council’s Chamber will come alive with the sound of Christmas as the Mayor of Preston hosts the annual ‘Carols in the Chamber’.

On Wednesday, 4 December, members of the community are invited to join the Mayor, civic leaders and Preston Gilbert and Sullivan Society, at Preston Town Hall for a heartwarming evening of traditional carols.

Preston Gilbert and Sullivan Society will lead the audience in singing Christmas classics such as O Little Town of Bethlehem, Away in a Manger, Joy to the World, Hark the Herald Angels Sing, and Silent Night.

Councillor Phil Crowe, Mayor of Preston, said:

“This is a tradition that dates back many years, and I’m privileged to host this event once again. I look forward to welcoming the community for an evening of festivities and joyful singing.

The money raised from the event will be going to my chosen charities which I am proud to support and all do fantastic work in their communities.”

The evening will begin with a festive reception at 6:30pm, featuring complimentary mince pies and drink. Carols will commence at 7pm.

Tickets for the evening cost £10, with all proceeds from the event going to the Mayor’s chosen charities:

Let’s Grow Preston
Disability Equality Northwest
Furniture for Education Worldwide.

For tickets, please email The Mayor on themayor@preston.gov.uk, by 15 November 2024.

Join us for an evening of music, community, and festive spirit, all in support of these causes.

MIL OSI United Kingdom –

January 25, 2025

MIL-OSI Asia-Pac: Light housing contract awarded

Source: Hong Kong Information Services

The Housing Bureau and the Architectural Services Department announced today that the last design and construction contract for Light Public Housing (LPH) has been awarded to Yau Lee Construction Company upon assessment.

Apart from providing around 1,500 units, the contract comprises six projects, including Hang Kwong Street in Ma On Shan and the conversion of five vacant or to-be-vacant school premises.

Additionally, the construction works are expected to commence in phases by November at the earliest.

The bureau indicated that the construction works of LPH is proceeding at full speed, with a total of about 28,500 units in seven projects having commenced since December 2023.

They are at Yau Pok Road in Yuen Long, Tuen Mun Area 3A, Choi Hing Road in Ngau Tau Kok, Olympic Avenue in Kai Tak, Lok On Pai in Siu Lam, Tuen Mun Area 54 and Sheung On Street/Sheung Ping Street in Chai Wan. The first LPH project at Yau Pok Road will be completed for intake in the first quarter next year.

The bureau highlighted that the award of the last design and construction contract marks the new stage towards the progressive completion and intake of LPH, which could improve the living conditions and quality of life of the people living in inadequate housing.

Together with the Architectural Services Department, it added that it will press ahead with relevant works at full speed to achieve the Government’s target of providing about 30,000 LPH units by 2027-28.

MIL OSI Asia Pacific News –

January 25, 2025

MIL-OSI Asia-Pac: Excessive cadmium found in imported frozen shrimp sample

Source: Hong Kong Government special administrative region

Excessive cadmium found in imported frozen shrimp sample
Excessive cadmium found in imported frozen shrimp sample
********************************************************

The Centre for Food Safety (CFS) of the Food and Environmental Hygiene Department today (October 24) announced that a sample of imported frozen shrimp from Spain was detected with cadmium, a metallic contaminant, at a level exceeding the legal limit. The CFS is following up on the incident. “The CFS collected the above-mentioned frozen shrimp sample at the import level for testing under its routine Food Surveillance Programme. The test result showed that the sample contained cadmium at a level of 2.79 parts per million, exceeding the legal limit of 2 ppm,” a spokesman for the CFS said. “Long-term excessive intake of cadmium may affect the kidney functions. The CFS has informed the importer concerned of the irregularity and instructed it to stop sales and remove from shelves the affected product. The CFS is also tracing the source and distribution of the product concerned,” the spokesman added. According to the Food Adulteration (Metallic Contamination) Regulations (Cap. 132V), any person who sells food with metallic contamination above the legal limit is liable upon conviction to a fine of $50,000 and imprisonment for six months. The CFS will alert the Spanish authorities and the trade, continue to follow up on the incident and take appropriate action. The investigation is ongoing.

Ends/Thursday, October 24, 2024Issued at HKT 18:30

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MIL OSI Asia Pacific News –

January 25, 2025

MIL-OSI Economics: Secretary-General of ASEAN participates in the 6th AMCA + Japan Meeting

Source: ASEAN

Secretary-General of ASEAN Dr. Kao Kim Hourn today joined other ministers in the 6th AMCA + Japan Meeting held in Melaka, Malaysia. The meeting was apprised of the implementation of joint initiatives with Japan through the ASEAN-Japan Cooperation Work Plan in Culture and the Arts (2022-2025).

The post Secretary-General of ASEAN participates in the 6th AMCA + Japan Meeting appeared first on ASEAN Main Portal.

MIL OSI Economics –

January 25, 2025

MIL-OSI Europe: 80th anniversary celebrations for ‘Il Tempo’ newspaper

Source: Government of Italy (English)

23 Ottobre 2024

The President of the Council of Ministers, Giorgia Meloni, was interviewed this evening by the editor-in-chief of ‘Il Tempo’, Tommaso Cerno, on the occasion of the 80th anniversary celebrations for the newspaper.

[This video is available in Italian only]

MIL OSI Europe News –

January 25, 2025

MIL-OSI Europe: AFRICA/BURKINA FASO – Violence spreads: hundreds killed in an armed attack in the village of Manni

Source: Agenzia Fides – MIL OSI

Thursday, 24 October 2024

Ouagadougou (Agenzia Fides) – For some time now, Burkina Faso has been confronted with several violence attacks by armed groups. In recent months the situation seems to be out of control.According to what was reported to Fides last October 6, the village of Manni, in the province of Gnagna in the eastern region of the country, suffered a serious attack.“More than 150 people lost their lives in the attack in Manni, including many Christians – reports the local source who requests anonymity for security reasons. Before the attack, the village’s mobile networks was interrupted to prevent any communication. The terrorists first hit the local market where many inhabitants had gathered after mass. Then they went into the houses and shops to kill those who had taken refuge there, and set fire on them, burning the victims alive. The next day they returned, setting fire on cars, shooting at medical personnels and other individuals. Many of the victims came from surrounding villages, which had already been driven out by the terrorists and had come to seek refuge in Manni.”“Deep sorrow and sincere compassion to all the bereaved families”, was expressed by the bishop of the diocese of Fada N’Gourma, Pierre Claver Malgo, who described the attack as ‘barbaric’. “Unfortunately – the source points out – these attacks are increasing the number of internally displaced people in the country.”More recently, in the month of August, terrorist attacks were recorded in Burkina Faso in the province of Nayala, in the village of Nimina, Mogwentenga and Gnipiru, until the end of August when the country experienced the worst massacre in its history in Barsalogho which, according to reports, caused at least 400 deaths.Since 2015, Burkina Faso has been under siege by terrorist groups, resulting in a constant state of insecurity and fear. Since interim President Ibrahim Traoré came to power on September 30, 2022, there have been at least six failed coup attempts against him, the last one in chronological order dates back to the end of August 2024.(AP) (Agenzia Fides, 24/10/2024)
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MIL OSI Europe News –

January 25, 2025

MIL-OSI Europe: ASIA/PHILIPPINES – Parishes welcome displaced people, hit by Typhoon Kristine

Source: Agenzia Fides – MIL OSI

Caritas Philippines

Naga (Agenzia Fides) – More than 25 parishes and church facilities, such as the Basilica of Our Lady of Peñafrancia and the Ateneo de Naga University of the Archdiocese of Caceres, managed by the Jesuit Order, have opened their doors and are acting as temporary evacuation centers for displaced persons and families affected by the effects of Typhoon Kristine (international name: Trami), which is devastating the northeastern Philippines. The floods and landslides caused by the tropical storm, which began yesterday, October 23, have claimed at least 24 lives in the Bilcol region, while thousands are trapped in the villages. The government has closed schools and offices throughout the island of Luzon to protect the population. The “National Council for Disaster Risk Reduction and Management” reported that about 78,000 families in 14 provinces were affected by the devastating effects of the typhoon, after which initial relief efforts were immediately activated by institutions, non-governmental organizations and the church. As Caritas Philippines reports, the Catholic dioceses in the affected areas have activated teams of volunteers to assess the extent of the damage and take appropriate measures. “Our priority is to ensure the fastest possible aid for the most needy and weakest,” said Bishop Colin Bagaforo, President of Caritas Philippines. He points out that the structures of the local churches have agreed to welcome the refugees.The Archdiocese of Cáceres, meanwhile, made a public appeal to parishes, schools and institutions that can temporarily provide rooms for the displaced. In the diocese of Legazpi, several parish churches have been flooded but, despite the floods, have opened the doors of their parish centers, which are still accessible: the parish church of Polangui, for example, although affected, is hosting nearly 300 people, the most vulnerable displaced, such as pregnant and breastfeeding women with their children, the sick and the elderly. Some of them are housed in the parish priest’s home.Caritas Philippines has also launched a nationwide appeal for donations to provide essentials and humanitarian aid to the displaced. (PA (Agenzia Fides, 24/10/2024)

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MIL OSI Europe News –

January 25, 2025

MIL-OSI United Kingdom: Council asked to approve £6.3m boost to Landbank Fund

Source: Scotland – Highland Council

Members will be asked to approve the repayment of £6.308m to the Landbank Fund from income from Council Tax on 2nd homes, at the Highland Council meeting on 31 October. The additional money will support the Council in finding solutions to the Highland Housing Challenge.

Chair of the Council’s Economy and Infrastructure Committee, Cllr Ken Gowans said: “The Landbank Fund is a valuable mechanism which allows us to invest further in housing supply in the Highlands. The additional £6.308 million will boost our capacity to bring housing back into communities and help to address the housing challenge.”

The Highland Council has in recent years sought flexibility to the Council to utilise income from council tax on second homes to support the revenue budget.

Scottish Government granted flexibility to the Council to utilise income in 2022/23 and 2023/24 to support the revenue budget, rather than for affordable housing purposes, given the financial challenges being faced by the Council at that time. That flexibility was however conditional on repayment of income into the Landbank Fund within 3 years of the flexibility being exercised.

Through its budget plans, the Council has made provision for repayment back into the Landbank Fund, this through a combination of budget provision made in 2024/25 and reserves earmarked for this purpose. In total, the sum due to be paid back is £6.308m covering the two financial years.

24 Oct 2024

MIL OSI United Kingdom –

January 25, 2025

MIL-OSI USA: Deadline Approaching for the 2024 Congressional App Competition for Middle and High School Students in the District

Source: United States House of Representatives – Congressman Adriano Espaillat (NY-13)

Rep. Espaillat Hosts Annual App Competition for Students in New York’s 13th Congressional District.
October 24th (Thursday) Marks 2024 Deadline to Submit Entries

NEW YORK, NY – Representative Adriano Espaillat (NY-13) has launched the 2024 Congressional App Challenge, an annual competition designed to encourage student participation in computer science and coding. This year’s competition is open to middle and high school students from New York’s 13th congressional district, who may register via the online portal to have their app considered by the October 24th deadline.

Officially launched by the U.S. House of Representatives in 2015, this nationwide effort allows students to compete against their peers by creating an application (also known as an “app”). The Challenge is designed to promote innovation and engagement in computer science and accepts any programming language, such as C, C++, Java, JavaScript, Python, Ruby, or “block code.”

The Congressional App Challenge is open to all middle and high school students in the 13th Congressional District of New York.

The winner from the New York’s 13th congressional district will be featured on CongressionalAppChallenge.us among winners from across the country.

For more information, please visit the official Congressional App Challenge website at CongressionalAppChallenge.us or contact Maximo Diaz, (212) 497-5959 or by email at Maximo.Diaz@mail.house.gov for more information.

# # #

Representative Espaillat is the first Dominican American to serve in the U.S. House of Representatives and his congressional district includes Harlem, East Harlem, West Harlem, Hamilton Heights, Washington Heights, Inwood, Marble Hill and the north-west Bronx. First elected to Congress in 2016, Representative Espaillat is serving his fourth term in Congress. Representative Espaillat currently serves as a member of the influential U.S. House Committee on Appropriations responsible for funding the federal government’s vital activities and serves as Ranking Member of the Legislative Branch Subcommittee of the committee during the 118th Congress. He is also a member of the House Budget Committee and the Congressional Hispanic Caucus (CHC), where he serves in a leadership role as the Deputy Chair as well as Chair of the Congressional Hispanic Caucus Institute (CHCI). Rep. Espaillat is a member of the Congressional Progressive Caucus (CPC) and serves as a Senior Whip of the Democratic Caucus. To find out more about Rep. Espaillat, visit online at https://espaillat.house.gov/.

Media inquiries: Candace Person at Candace.Person@mail.house.gov

MIL OSI USA News –

January 25, 2025

MIL-OSI China: Xi says China to take lead in establishing Global South think tank cooperation alliance

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

Xi says China to take lead in establishing Global South think tank cooperation alliance

KAZAN, Russia, Oct. 24 — Chinese President Xi Jinping said Thursday that China will take the lead to set up a Global South think tank cooperation alliance.

Xi made the remarks when addressing the “BRICS Plus” leaders’ dialogue.

MIL OSI China News –

January 25, 2025

MIL-OSI China: Xi calls on ‘BRICS Plus’ countries to be a driving force for mutual learning among civilizations

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

Xi calls on ‘BRICS Plus’ countries to be a driving force for mutual learning among civilizations

KAZAN, Russia, Oct. 24 — Chinese President Xi Jinping said Thursday that “BRICS Plus” countries should be a driving force for mutual learning among civilizations.

Xi made the remarks when addressing the “BRICS Plus” leaders’ dialogue.

He also called on “BRICS Plus” countries to enhance communication and dialogue, and support each other in pursuing modernization paths suited to their own national conditions.

MIL OSI China News –

January 25, 2025

MIL-OSI China: Xi says ‘BRICS Plus’ countries should be a stabilizing force for peace

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

KAZAN, Russia, Oct. 24 — “BRICS Plus” countries should be a stabilizing force for peace, strengthen global security governance, and explore ways to address both the symptoms and root causes of hotspot issues, Chinese President Xi Jinping said on Thursday.

Xi made the remarks when attending the BRICS Plus leaders’ dialogue on Thursday.

MIL OSI China News –

January 25, 2025

MIL-OSI China: Xi says ‘BRICS Plus’ countries should be central pillar of strength for common development

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

Xi says ‘BRICS Plus’ countries should be central pillar of strength for common development

KAZAN, Russia, Oct. 24 — Chinese President Xi Jinping said Thursday that BRICS Plus countries should be a central pillar of strength for common development.

Xi made the remarks while addressing the “BRICS Plus” leaders’ dialogue.

He said that development has contributed to the rise and thriving of the Global South. “BRICS Plus” countries should actively participate in and lead the reform of the global economic governance system and advocate for placing development at the core of the international trade and economic agenda.

MIL OSI China News –

January 25, 2025

MIL-OSI: Amalgamated Financial Corp. Reports Record Third Quarter 2024 Financial Results; Margin Expands to 3.51%; Return on Average Assets of 1.32%

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Oct. 24, 2024 (GLOBE NEWSWIRE) — Amalgamated Financial Corp. (the “Company” or “Amalgamated”) (Nasdaq: AMAL), the holding company for Amalgamated Bank (the “Bank”), today announced financial results for the third quarter ended September 30, 2024.

Third Quarter 2024 Highlights (on a linked quarter basis)

Net income of $27.9 million, or $0.90 per diluted share, compared to $26.8 million, or $0.87 per diluted share.
Core net income¹ of $28.0 million, or $0.91 per diluted share, compared to $26.2 million, or $0.85 per diluted share.

Deposits and Liquidity

Total deposits increased $145.6 million, or 2.0%, to $7.6 billion including a $51.3 million decline in Brokered CDs.
Excluding Brokered CDs, on-balance sheet deposits increased $196.9 million, or 2.7%, to $7.5 billion.
Political deposits increased $231.9 million, or 13%, to $2.0 billion, which includes both on and off-balance sheet deposits.
Off-balance sheet deposits increased $114.1 million, or 11%, to $1.2 billion, comprised of both transactional political deposits and other segment deposits.
Average cost of deposits, excluding Brokered CDs, increased 3 basis points to 151 basis points, where non-interest-bearing deposits comprised 51% of total deposits excluding Brokered CDs.

Assets and Margin

Net loans receivable increased $78.0 million, or 1.8%, to $4.5 billion.
Excluding a $40.9 million package of low yielding residential loans marked-to-market and moved to held-for-sale, net loans receivable increased $118.9 million or 2.7%.
Total PACE assessments grew $10.6 million, or 0.9%, to $1.2 billion.
Net interest income grew $2.9 million, or 4.2%, to $72.1 million.
Net interest margin increased 5 basis points to 3.51%.

Capital and Returns

Tier 1 leverage ratio of 8.63%, increased by 21 basis points, and Common Equity Tier 1 ratio of 13.82%.
Tangible common equity¹ ratio of 8.14%, representing an eighth consecutive quarter of improvement.
Tangible book value per share¹ increased $1.69, or 8.2%, to $22.29, and has increased $4.87, or 27.9% since September 2023.
Strong core return on average tangible common equity¹ of 17.04% and core return on average assets¹ of 1.33%.

________________________
_{¹ Reconciliations of non-GAAP financial measures to the most comparable GAAP measure are set forth on the last page of the financial information accompanying this press release and may also be found on our website, www.amalgamatedbank.com.}

Priscilla Sims Brown, President and Chief Executive Officer, commented, “Our third quarter financial results continue to demonstrate that Amalgamated remains positioned to achieve sustainable earnings and profitability. During the quarter, we delivered outstanding deposit and loan growth, strong profitability and returns, and a growing capital base that positions us to invest in our strategic initiatives which will sustain our growth into the future.”

Third Quarter Earnings

Net income for the third quarter of 2024 was $27.9 million, or $0.90 per diluted share, compared to $26.8 million, or $0.87 per diluted share, for the second quarter of 2024. The $1.1 million increase during the quarter was primarily driven by a $3.2 million increase in non-core ICS One-Way Sell fee income from our off-balance sheet deposits, a $2.9 million increase in net interest income, a $1.3 million decrease in provision for credit losses, and a $0.7 million increase in non-core income from solar tax equity investments, which was expected. This was offset by a $4.3 million reduction in fair value on a pool of lower yielding residential loans moved to held for sale, a $1.5 million increase in non-interest expense, and a $1.3 million increase in income tax expense, and a $0.5 million increase in losses on securities sales.

Core net income¹ for the third quarter of 2024 was $28.0 million, or $0.91 per diluted share, compared to $26.2 million, or $0.85 per diluted share, for the second quarter of 2024. Excluded from core net income for the quarter, pre-tax, was $8.1 million of ICS One-Way Sell fee income, a $4.3 million reduction in fair value of held for sale residential loans, $3.2 million of losses on the sale of securities, $1.1 million of accelerated depreciation from solar tax equity investments, $0.7 million of gains on subordinated debt repurchases, and $0.2 million in severance costs. Excluded from core net income for the second quarter of 2024, pre-tax, was $4.9 million of ICS One-Way Sell fee income, $2.7 million of losses on the sale of securities, $1.8 million of accelerated depreciation from our solar tax equity investments, $0.4 million of gains on subordinated debt repurchases.

Net interest income was $72.1 million for the third quarter of 2024, compared to $69.2 million for the second quarter of 2024. Loan interest income increased $2.8 million and loan yields increased 11 basis points mainly as a result of a $86.7 million increase in average loan balances. Adjusted for two discrete items; the effect of $2.1 million of accelerated amortization related to purchase premiums last quarter and the recognition in the current quarter of a $1.3 million acceleration of deferred costs on certain loans, loan interest income increased by $2.1 million in the quarter. Interest income on securities increased $1.7 million driven by an increase in the average balance of securities of $79.7 million. Interest expense on total interest-bearing deposits increased $1.2 million driven by a 26 basis point increase in cost despite a decrease in the average balance of total interest-bearing deposits of $235.6 million. The increase in deposit cost was primarily related to adjustments to rates on money market products and select non-time deposit accounts late in second quarter and early in the current quarter. The decrease in the average balance of interest-bearing deposits was primarily driven by a mix shift as newly raised political deposits were mainly non-interest-bearing whereas related outflows were mainly interest-bearing. Additionally, the average balance on Brokered CD’s declined $25.0 million as certain long-term issuances were called. The average balance of borrowings also decreased $32.6 million, now substantially consisting of lower-cost subordinated debt.

Net interest margin was 3.51% for the third quarter of 2024, an increase of 5 basis points from 3.46% in the second quarter of 2024. As noted above, there were two discrete items that affected the third quarter and second quarter margin. Excluding these discrete items, net interest margin improved 2 basis points from the prior quarter, all else equal. Prepayment penalties had no impact on our net interest margin in the third quarter of 2024, which is the same as in the prior quarter.

Provision for credit losses totaled an expense of $1.8 million for the third quarter of 2024 compared to an expense of $3.2 million in the second quarter of 2024. The expense in the third quarter was primarily driven by charge-offs on our consumer solar and small business portfolios, and updates to CECL model assumptions, offset by decreases in reserves for unfunded loan commitments.

Non-interest income was $8.9 million for the third quarter of 2024, compared to $9.3 million in the second quarter of 2024. Excluding all non-core income adjustments noted above, core non-interest income¹ was $8.8 million for the third quarter of 2024, compared to $8.5 million in the second quarter of 2024. The increase was primarily related to higher commercial banking fees, increased fees from our treasury investment services, and modestly higher income from our trust business.

Non-interest expense for the third quarter of 2024 was $41.0 million, an increase of $1.5 million from the second quarter of 2024. Core non-interest expense¹ for the third quarter of 2024 was $40.7 million, an increase of $1.3 million from the second quarter of 2024. This was mainly driven by a $0.7 million increase in compensation and employee benefits expense due to strategic new hires and corporate performance accruals, as well as higher data processing expense related to the advance of digital initiatives scheduled for 2025.

Our provision for income tax expense was $10.3 million for the third quarter of 2024, compared to $9.0 million for the second quarter of 2024. The effective tax rate for the third quarter of 2024 was 26.9%. In the prior quarter, there were $0.5 million of discrete tax benefits resulting in an effective tax rate of 25.2%, or 26.6% excluding the discrete items.

Balance Sheet Quarterly Summary

Total assets were $8.4 billion at September 30, 2024, compared to $8.3 billion at June 30, 2024, which modestly grew the balance sheet above its target range but also carried $40.9 million in loans held for sale related to the residential loan sale that settled shortly after the quarter closed. Notable changes within individual balance sheet line items include a $91.2 million increase in cash and cash equivalents, a $24.1 million increase in securities, and a $78.0 million increase in net loans receivable. Additionally, deposits excluding Brokered CDs increased by $196.9 million while Brokered CDs decreased $51.3 million, and borrowings decreased by $8.8 million. Our off-balance sheet deposits increased by $114.1 million, or 11%, to $1.2 billion.

Total net loans receivable, at September 30, 2024 were $4.5 billion, an increase of $78.0 million, or 1.8% for the quarter. The increase in loans is primarily driven by a $60.8 million increase in multifamily loans, a $46.0 million increase in commercial and industrial loans, and a $37.6 million increase in commercial real estate loans, offset by an $11.1 million decrease in consumer solar loans, and a $54.3 million decrease in residential loans, primarily due to the noted loan pool sale. During the quarter, criticized or classified loans decreased $5.9 million, largely related to a $6.9 million note sale (with a related fully reserved $4.5 million charge-off) on a legacy non-accrual leveraged loan. Additionally, payoffs of two delinquent commercial and industrial loans totaling $1.7 million and charge-offs of smaller commercial and industrial loans totaling $1.0 million were offset by the downgrade of one $3.2 million multifamily loan to substandard and accruing and downgrades of small business loans totaling $1.1 million.

Total deposits at September 30, 2024 were $7.6 billion, an increase of $145.6 million, or 2.0%, during the quarter. Total deposits excluding Brokered CDs increased by $196.9 million to $7.5 billion, or a 2.7% increase. Including accounts currently held off-balance sheet, deposits held by politically active customers, such as campaigns, PACs, advocacy-based organizations, and state and national party committees were $2.0 billion as of September 30, 2024, an increase of $231.9 million during this quarter. Non-interest-bearing deposits represented 50% of average total deposits and 51% of ending total deposits for the quarter, excluding Brokered CDs, contributing to an average cost of total deposits of 158 basis points. Super-core deposits² totaled approximately $4.5 billion, had a weighted average life of 16 years, and comprised 60% of total deposits, excluding Brokered CDs. Total uninsured deposits were $4.5 billion, comprising 59% of total deposits.

Nonperforming assets totaled $28.6 million, or 0.34% of period-end total assets at September 30, 2024, a decrease of $7.1 million, compared with $35.7 million, or 0.43% on a linked quarter basis. The decrease in nonperforming assets was primarily driven by the note sale mentioned above, a $0.2 million decrease in residential real estate nonaccrual loans, a $0.2 million decrease in consumer and consumer solar nonaccrual loans, offset by a $0.3 million increase in commercial and industrial nonaccrual loans.

During the quarter, the allowance for credit losses on loans decreased $1.9 million to $61.5 million. The ratio of allowance to total loans was 1.35%, a decrease of 7 basis points from 1.42% in the second quarter of 2024. The decrease was primarily the result of a release of reserves from the previously noted legacy leveraged commercial and industrial note sale, which carried a reserve of $4.5 million.

________________________
_{² Refer to Terminology on page 6 for definitions of certain terms used in this release.}

Capital Quarterly Summary

As of September 30, 2024, the Common Equity Tier 1 Capital ratio was 13.82%, the Total Risk-Based Capital ratio was 16.25%, and the Tier 1 Leverage Capital ratio was 8.63%, compared to 13.48%, 16.04% and 8.42%, respectively, as of June 30, 2024. Stockholders’ equity at September 30, 2024 was $698.3 million, an increase of $52.2 million during the quarter. The increase in stockholders’ equity was primarily driven by $27.9 million of net income for the quarter and a $26.9 million improvement in accumulated other comprehensive loss due to the tax effected mark-to-market on our available for sale securities portfolio, offset by $3.7 million in dividends paid at $0.12 per outstanding share.

Tangible book value per share was $22.29 as of September 30, 2024 compared to $20.61 as of June 30, 2024. Tangible common equity¹ improved to 8.14% of tangible assets, compared to 7.66% as of June 30, 2024.

Conference Call

As previously announced, Amalgamated Financial Corp. will host a conference call to discuss its third quarter 2024 results today, October 24, 2024 at 11:00am (Eastern Time). The conference call can be accessed by dialing 1-877-407-9716 (domestic) or 1-201-493-6779 (international) and asking for the Amalgamated Financial Corp. Third Quarter 2024 Earnings Call. A telephonic replay will be available approximately two hours after the call and can be accessed by dialing 1-844-512-2921, or for international callers 1-412-317-6671 and providing the access code 13748697. The telephonic replay will be available until October 31, 2024.

Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the investor relations section of our website at https://ir.amalgamatedbank.com/. The online replay will remain available for a limited time beginning immediately following the call.

The presentation materials for the call can be accessed on the investor relations section of our website at https://ir.amalgamatedbank.com/.

About Amalgamated Financial Corp.

Amalgamated Financial Corp. is a Delaware public benefit corporation and a bank holding company engaged in commercial banking and financial services through its wholly-owned subsidiary, Amalgamated Bank. Amalgamated Bank is a New York-based full-service commercial bank and a chartered trust company with a combined network of five branches across New York City, Washington D.C., and San Francisco, and a commercial office in Boston. Amalgamated Bank was formed in 1923 as Amalgamated Bank of New York by the Amalgamated Clothing Workers of America, one of the country’s oldest labor unions. Amalgamated Bank provides commercial banking and trust services nationally and offers a full range of products and services to both commercial and retail customers. Amalgamated Bank is a proud member of the Global Alliance for Banking on Values and is a certified B Corporation®. As of September 30, 2024, our total assets were $8.4 billion, total net loans were $4.5 billion, and total deposits were $7.6 billion. Additionally, as of September 30, 2024, our trust business held $35.4 billion in assets under custody and $14.6 billion in assets under management.

Non-GAAP Financial Measures

This release (and the accompanying financial information and tables) refer to certain non-GAAP financial measures including, without limitation, “Core operating revenue,” “Core non-interest expense,” “Core non-interest income,” “Core net income,” “Tangible common equity,” “Average tangible common equity,” “Core return on average assets,” “Core return on average tangible common equity,” and “Core efficiency ratio.”

Our management utilizes this information to compare our operating performance for September 30, 2024 versus certain periods in 2024 and 2023 and to prepare internal projections. We believe these non-GAAP financial measures facilitate making period-to-period comparisons and are meaningful indications of our operating performance. In addition, because intangible assets such as goodwill and other discrete items unrelated to our core business, which are excluded, vary extensively from company to company, we believe that the presentation of this information allows investors to more easily compare our results to those of other companies.

The presentation of non-GAAP financial information, however, is not intended to be considered in isolation or as a substitute for GAAP financial measures. We strongly encourage readers to review the GAAP financial measures included in this release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this release with other companies’ non-GAAP financial measures having the same or similar names. Reconciliations of non-GAAP financial disclosures to comparable GAAP measures found in this release are set forth in the final pages of this release and also may be viewed on our website, amalgamatedbank.com.

Terminology

Certain terms used in this release are defined as follows:

“Core efficiency ratio” is defined as “Core non-interest expense” divided by “Core operating revenue.” We believe the most directly comparable performance ratio derived from GAAP financial measures is an efficiency ratio calculated by dividing total non-interest expense by the sum of net interest income and total non-interest income.

“Core net income” is defined as net income after tax excluding gains and losses on sales of securities, ICS One-Way Sell fee income, gains on the sale of owned property, costs related to branch closures, restructuring/severance costs, acquisition costs, tax credits and accelerated depreciation on solar equity investments, and taxes on notable pre-tax items. We believe the most directly comparable GAAP financial measure is net income.

“Core non-interest expense” is defined as total non-interest expense excluding costs related to branch closures, restructuring/severance, and acquisitions. We believe the most directly comparable GAAP financial measure is total non-interest expense.

“Core non-interest income” is defined as total non-interest income excluding gains and losses on sales of securities, ICS One-Way Sell fee income, gains on the sale of owned property, and tax credits and accelerated depreciation on solar equity investments. We believe the most directly comparable GAAP financial measure is non-interest income.

“Core operating revenue” is defined as total net interest income plus “core non-interest income”. We believe the most directly comparable GAAP financial measure is the total of net interest income and non-interest income.

“Core return on average assets” is defined as “Core net income” divided by average total assets. We believe the most directly comparable performance ratio derived from GAAP financial measures is return on average assets calculated by dividing net income by average total assets.

“Core return on average tangible common equity” is defined as “Core net income” divided by average “tangible common equity.” We believe the most directly comparable performance ratio derived from GAAP financial measures is return on average equity calculated by dividing net income by average total stockholders’ equity.

“Super-core deposits” are defined as total deposits from commercial and consumer customers, with a relationship length of greater than 5 years. We believe the most directly comparable GAAP financial measure is total deposits.

“Tangible assets” are defined as total assets excluding, as applicable, goodwill and core deposit intangibles. We believe the most directly comparable GAAP financial measure is total assets.

“Tangible common equity”, and “Tangible book value” are defined as stockholders’ equity excluding, as applicable, minority interests, preferred stock, goodwill and core deposit intangibles. We believe that the most directly comparable GAAP financial measure is total stockholders’ equity.

“Traditional securities portfolio” is defined as total investment securities excluding PACE assessments. We believe the most directly comparable GAAP financial measure is total investment securities.

Forward-Looking Statements

Statements included in this release that are not historical in nature are intended to be, and are hereby identified as, forward-looking statements within the meaning of the Private Securities Litigation Reform Act, Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not statements of historical or current fact nor are they assurances of future performance and generally can be identified by the use of forward-looking terminology, such as “may,” “approximately,” “will,” “anticipate,” “should,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,” “possible,” and “intend,” or the negative thereof as well as other similar words and expressions of the future. Forward-looking statements are subject to risks, uncertainties and assumptions that are difficult to predict as to timing, extent, likelihood and degree of occurrence, which could cause our actual results to differ materially from those anticipated in or by such statements. Potential risks and uncertainties include, but are not limited to, the following: (i) uncertain conditions in the banking industry and in national, regional and local economies in our core markets, which may have an adverse impact on our business, operations and financial performance; (ii) deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses; (iii) deposit outflows and subsequent declines in liquidity caused by factors that could include lack of confidence in the banking system, a deterioration in market conditions or the financial condition of depositors; (iv) changes in our deposits, including an increase in uninsured deposits; (v) our ability to maintain sufficient liquidity to meet our deposit and debt obligations as they come due, which may require that we sell investment securities at a loss, negatively impacting our net income, earnings and capital; (vi) unfavorable conditions in the capital markets, which may cause declines in our stock price and the value of our investments; (vii) negative economic and political conditions that adversely affect the general economy, housing prices, the real estate market, the job market, consumer confidence, the financial condition of our borrowers and consumer spending habits, which may affect, among other things, the level of non-performing assets, charge-offs and provision expense; (viii) fluctuations or unanticipated changes in the interest rate environment including changes in net interest margin or changes in the yield curve that affect investments, loans or deposits; (ix) the general decline in the real estate and lending markets, particularly in commercial real estate in our market areas, and the effects of the enactment of or changes to rent-control and other similar regulations on multi-family housing; (x) changes in legislation, regulation, public policies, or administrative practices impacting the banking industry, including increased minimum capital requirements and other regulation in the aftermath of recent bank failures; (xi) the outcome of any legal proceedings that may be instituted against us (xii) our inability to achieve organic loan and deposit growth and the composition of that growth; (xiii) the composition of our loan portfolio, including any concentration in industries or sectors that may experience unanticipated or anticipated adverse conditions greater than other industries or sectors in the national or local economies in which we operate; (xiv) inaccuracy of the assumptions and estimates we make and policies that we implement in establishing our allowance for credit losses; (xv) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (xvi) any matter that would cause us to conclude that there was impairment of any asset, including intangible assets; (xvii) limitations on our ability to declare and pay dividends; (xviii) the impact of competition with other financial institutions, including pricing pressures and the resulting impact on our results, including as a result of compression to net interest margin; (xix) increased competition for experienced members of the workforce including executives in the banking industry; (xx) a failure in or breach of our operational or security systems or infrastructure, or those of third party vendors or other service providers, including as a result of unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches; (xxi) increased regulatory scrutiny and exposure from the use of “big data” techniques, machine learning, and artificial intelligence; (xxii) downgrade in our credit rating; (xxiii) “greenwashing claims” against us and our Environmental, Social and Governance (“ESG”) products and increased scrutiny and political opposition to ESG and Diversity, Equity and Inclusion (“DEI”) practices; (xxiv) any unanticipated or greater than anticipated adverse conditions (including the possibility of earthquakes, wildfires, and other natural disasters)affecting the markets in which we operate; (xxv) physical and transitional risks related to climate change as they impact our business and the businesses that we finance; (xxvi) future repurchase of our shares through our common stock repurchase program; and (xxvii) descriptions of assumptions underlying or relating to any of the foregoing. Additional factors which could affect the forward-looking statements can be found in our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed with the SEC and available on the SEC’s website at https://www.sec.gov/. We disclaim any obligation to update or revise any forward-looking statements contained in this release, which speak only as of the date hereof, whether as a result of new information, future events or otherwise, except as required by law.

Investor Contact:
Jamie Lillis
Solebury Strategic Communications
shareholderrelations@amalgamatedbank.com
800-895-4172

Consolidated Statements of Income (unaudited)

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
($ in thousands)		2024			2024			2023			2024			2023
INTEREST AND DIVIDEND INCOME
Loans	$	54,110		$	51,293		$	49,578		$	157,355		$	139,744
Securities		46,432			44,978			39,971			133,801			118,989
Interest-bearing deposits in banks		2,274			2,690			1,687			7,556			3,360
Total interest and dividend income		102,816			98,961			91,236			298,712			262,093
INTEREST EXPENSE
Deposits		30,105			28,882			23,158			84,879			55,809
Borrowed funds		604			887			4,350			4,497			12,292
Total interest expense		30,709			29,769			27,508			89,376			68,101
NET INTEREST INCOME		72,107			69,192			63,728			209,336			193,992
Provision for credit losses		1,849			3,161			2,014			6,598			10,913
Net interest income after provision for credit losses		70,258			66,031			61,714			202,738			183,079
NON-INTEREST INCOME
Trust Department fees		3,704			3,657			3,678			11,215			11,613
Service charges on deposit accounts		12,091			8,614			2,731			26,841			7,897
Bank-owned life insurance income		613			615			727			1,837			2,054
Losses on sale of securities		(3,230	)		(2,691	)		(1,699	)		(8,695	)		(5,052	)
Gain (loss) on sale of loans and changes in fair value on loans held-for-sale, net		(4,223	)		69			26			(4,107	)		30
Equity method investments income (loss)		(823	)		(1,551	)		550			(301	)		1,261
Other income		807			545			767			1,636			2,127
Total non-interest income		8,939			9,258			6,780			28,426			19,930
NON-INTEREST EXPENSE
Compensation and employee benefits		23,757			23,045			21,345			69,075			64,525
Occupancy and depreciation		3,423			3,379			3,349			9,705			10,184
Professional fees		2,575			2,332			2,222			7,284			7,211
Data processing		5,087			4,786			4,545			14,503			13,176
Office maintenance and depreciation		651			580			685			1,894			2,130
Amortization of intangible assets		183			182			222			548			666
Advertising and promotion		1,023			1,175			816			3,417			3,431
Federal deposit insurance premiums		900			1,050			1,200			3,000			3,018
Other expense		3,365			2,983			2,955			9,203			9,154
Total non-interest expense		40,964			39,512			37,339			118,629			113,495
Income before income taxes		38,233			35,777			31,155			112,535			89,514
Income tax expense		10,291			9,024			8,847			30,591			24,230
Net income	$	27,942		$	26,753		$	22,308		$	81,944		$	65,284
Earnings per common share – basic	$	0.91		$	0.88		$	0.73		$	2.68		$	2.13
Earnings per common share – diluted	$	0.90		$	0.87		$	0.73		$	2.65		$	2.12

Consolidated Statements of Financial Condition

($ in thousands)	September 30, 2024			June 30, 2024			December 31, 2023
Assets	(unaudited)			(unaudited)
Cash and due from banks	$	3,946		$	4,081		$	2,856
Interest-bearing deposits in banks		145,261			53,912			87,714
Total cash and cash equivalents		149,207			57,993			90,570
Securities:
Available for sale, at fair value
Traditional securities		1,617,045			1,581,338			1,429,739
Property Assessed Clean Energy (“PACE”) assessments		149,500			112,923			53,303
		1,766,545			1,694,261			1,483,042
Held-to-maturity, at amortized cost:
Traditional securities, net of allowance for credit losses of $51, $53, and $54, respectively		583,788			606,013			620,232
PACE assessments, net of allowance for credit losses of $641, $655, and $667, respectively		1,028,588			1,054,569			1,076,602
		1,612,376			1,660,582			1,696,834

Loans held for sale		38,623			1,926			1,817
Loans receivable, net of deferred loan origination costs		4,547,903			4,471,839			4,411,319
Allowance for credit losses		(61,466	)		(63,444	)		(65,691	)
Loans receivable, net		4,486,437			4,408,395			4,345,628

Resell agreements		74,883			137,461			50,000
Federal Home Loan Bank of New York (“FHLBNY”) stock, at cost		4,625			4,823			4,389
Accrued interest receivable		54,268			52,575			55,484
Premises and equipment, net		6,413			6,599			7,807
Bank-owned life insurance		107,365			106,752			105,528
Right-of-use lease asset		16,125			17,971			21,074
Deferred tax asset, net		38,510			47,654			56,603
Goodwill		12,936			12,936			12,936
Intangible assets, net		1,669			1,852			2,217
Equity method investments		11,514			12,710			13,024
Other assets		32,144			26,214			25,371
Total assets	$	8,413,640		$	8,250,704		$	7,972,324
Liabilities
Deposits	$	7,594,564		$	7,448,988		$	7,011,988
Borrowings		68,436			77,252			304,927
Operating leases		22,292			24,784			30,646
Other liabilities		30,016			53,568			39,399
Total liabilities		7,715,308			7,604,592			7,386,960
Stockholders’ equity
Common stock, par value $.01 per share		308			307			307
Additional paid-in capital		287,167			286,021			288,232
Retained earnings		459,398			435,202			388,033
Accumulated other comprehensive loss, net of income taxes		(46,702	)		(73,579	)		(86,004	)
Treasury stock, at cost		(1,972	)		(1,972	)		(5,337	)
Total Amalgamated Financial Corp. stockholders’ equity		698,199			645,979			585,231
Noncontrolling interests		133			133			133
Total stockholders’ equity		698,332			646,112			585,364
Total liabilities and stockholders’ equity	$	8,413,640		$	8,250,704		$	7,972,324

Select Financial Data

	As of and for the						As of and for the
	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,
(Shares in thousands)		2024		2024		2023		2024		2023
Selected Financial Ratios and Other Data:
Earnings per share
Basic	$	0.91	$	0.88	$	0.73	$	2.68	$	2.13
Diluted		0.90		0.87		0.73		2.65		2.12
Core net income (non-GAAP)
Basic	$	0.91	$	0.86	$	0.76	$	2.61	$	2.23
Diluted		0.91		0.85		0.76		2.59		2.22
Book value per common share (excluding minority interest)	$	22.77	$	21.09	$	17.93	$	22.77	$	17.93
Tangible book value per share (non-GAAP)	$	22.29	$	20.61	$	17.43	$	22.29	$	17.43
Common shares outstanding, par value $.01 per share⁽¹⁾		30,663		30,630		30,459		30,663		30,459
Weighted average common shares outstanding, basic		30,646		30,551		30,481		30,558		30,601
Weighted average common shares outstanding, diluted		30,911		30,832		30,590		30,868		30,738

(1) 70,000,000 shares authorized; 30,776,163, 30,743,666, and 30,736,141 shares issued for the periods ended September 30, 2024, June 30, 2024, and September 30, 2023 respectively, and 30,662,883, 30,630,386, and 30,458,781 shares outstanding for the periods ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively.

Select Financial Data

	As of and for the						As of and for the
	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,
	2024		2024		2023		2024		2023
Selected Performance Metrics:
Return on average assets	1.32	%	1.30	%	1.12	%	1.33	%	1.11	%
Core return on average assets (non-GAAP)	1.33	%	1.27	%	1.17	%	1.29	%	1.17	%
Return on average equity	16.63	%	17.27	%	16.43	%	17.35	%	16.69	%
Core return on average tangible common equity (non-GAAP)	17.04	%	17.34	%	17.67	%	17.31	%	18.02	%
Average equity to average assets	7.96	%	7.53	%	6.82	%	7.65	%	6.67	%
Tangible common equity to tangible assets (non-GAAP)	8.14	%	7.66	%	6.72	%	8.14	%	6.72	%
Loan yield	4.79	%	4.68	%	4.56	%	4.74	%	4.43	%
Securities yield	5.25	%	5.22	%	4.94	%	5.23	%	4.84	%
Deposit cost	1.58	%	1.55	%	1.33	%	1.53	%	1.08	%
Net interest margin	3.51	%	3.46	%	3.29	%	3.48	%	3.40	%
Efficiency ratio ⁽¹⁾	50.54	%	50.37	%	52.96	%	49.89	%	53.05	%
Core efficiency ratio (non-GAAP)	50.35	%	50.80	%	51.71	%	50.52	%	51.88	%

Asset Quality Ratios:
Nonaccrual loans to total loans	0.61	%	0.78	%	0.79	%	0.61	%	0.79	%
Nonperforming assets to total assets	0.34	%	0.43	%	0.46	%	0.34	%	0.46	%
Allowance for credit losses on loans to nonaccrual loans	222.30	%	182.83	%	197.58	%	222.30	%	197.58	%
Allowance for credit losses on loans to total loans	1.35	%	1.42	%	1.56	%	1.35	%	1.56	%
Annualized net charge-offs to average loans	0.61	%	0.25	%	0.27	%	0.35	%	0.27	%

Capital Ratios:
Tier 1 leverage capital ratio	8.63	%	8.42	%	7.89	%	8.63	%	7.89	%
Tier 1 risk-based capital ratio	13.82	%	13.48	%	12.63	%	13.82	%	12.63	%
Total risk-based capital ratio	16.25	%	16.04	%	15.28	%	16.25	%	15.28	%
Common equity tier 1 capital ratio	13.82	%	13.48	%	12.63	%	13.82	%	12.63	%

(1) Efficiency ratio is calculated by dividing total non-interest expense by the sum of net interest income and total non-interest income

Loan and PACE Assessments Portfolio Composition

(In thousands)	At September 30, 2024					At June 30, 2024					At September 30, 2023
	Amount			% of total		Amount			% of total		Amount			% of total
Commercial portfolio:
Commercial and industrial	$	1,058,376		23.3	%	$	1,012,400		22.6	%	$	1,050,355		24.1	%
Multifamily		1,291,380		28.4	%		1,230,545		27.5	%		1,094,955		25.1	%
Commercial real estate		415,077		9.1	%		377,484		8.4	%		324,139		7.4	%
Construction and land development		22,224		0.5	%		23,254		0.5	%		28,326		0.6	%
Total commercial portfolio		2,787,057		61.3	%		2,643,683		59.0	%		2,497,775		57.2	%

Retail portfolio:

Residential real estate lending		1,350,347		29.7	%		1,404,624		31.4	%		1,409,530		32.3	%
Consumer solar		374,499		8.2	%		385,567		8.6	%		415,324		9.5	%
Consumer and other		36,000		0.8	%		37,965		1.0	%		42,116		1.0	%
Total retail portfolio		1,760,846		38.7	%		1,828,156		41.0	%		1,866,970		42.8	%
Total loans held for investment		4,547,903		100.0	%		4,471,839		100.0	%		4,364,745		100.0	%

Allowance for credit losses		(61,466	)				(63,444	)				(67,815	)
Loans receivable, net	$	4,486,437				$	4,408,395				$	4,296,930

PACE assessments:
Available for sale, at fair value
Residential PACE assessments		149,500		12.7	%		112,923		9.7	%		38,526		3.5	%

Held-to-maturity, at amortized cost
Commercial PACE assessments		256,128		21.7	%		256,663		22.0	%		270,020		24.3	%
Residential PACE assessments		773,101		65.6	%		798,561		68.4	%		800,484		72.2	%
Total Held-to-maturity PACE assessments		1,029,229		87.3	%		1,055,224		90.4	%		1,070,504		96.5	%
Total PACE assessments		1,178,729		100.0	%		1,168,147		100.0	%		1,109,030		100.0	%

Allowance for credit losses		(641	)				(655	)				(670	)
Total PACE assessments, net	$	1,178,088				$	1,167,492				$	1,108,360


Loans receivable, net and total PACE assessments, net as a % of Deposits		74.6	%				74.9	%				77.3	%
Loans receivable, net and total PACE assessments, net as a % of Deposits excluding Brokered CDs		75.6	%				76.4	%				81.9	%

Net Interest Income Analysis

	Three Months Ended
	September 30, 2024							June 30, 2024							September 30, 2023
(In thousands)	Average Balance		Income / Expense			Yield / Rate		Average Balance		Income / Expense			Yield / Rate		Average Balance		Income / Expense			Yield / Rate

Interest-earning assets:
Interest-bearing deposits in banks	$	182,981		$	2,274	4.94	%	$	213,725		$	2,690	5.06	%	$	170,830		$	1,687	3.92	%
Securities⁽¹⁾		3,388,580			44,678	5.25	%		3,308,881			42,937	5.22	%		3,208,334			39,971	4.94	%
Resell agreements		104,933			1,754	6.65	%		122,618			2,041	6.69	%		—			—	0.00	%
Loans receivable, net ⁽²⁾		4,493,520			54,110	4.79	%		4,406,843			51,293	4.68	%		4,314,767			49,578	4.56	%
Total interest-earning assets		8,170,014			102,816	5.01	%		8,052,067			98,961	4.94	%		7,693,931			91,236	4.70	%
Non-interest-earning assets:
Cash and due from banks		6,144							6,371							6,129
Other assets		217,332							217,578							204,506
Total assets	$	8,393,490						$	8,276,016						$	7,904,566

Interest-bearing liabilities:
Savings, NOW and money market deposits	$	3,506,499		$	26,168	2.97	%	$	3,729,858		$	24,992	2.69	%	$	3,446,027		$	17,157	1.98	%
Time deposits		223,337			2,148	3.83	%		210,565			1,898	3.63	%		176,171			1,122	2.53	%
Brokered CDs		131,103			1,789	5.43	%		156,086			1,992	5.13	%		371,329			4,879	5.21	%
Total interest-bearing deposits		3,860,939			30,105	3.10	%		4,096,509			28,882	2.84	%		3,993,527			23,158	2.30	%
Borrowings		71,948			604	3.34	%		104,560			887	3.41	%		376,585			4,350	4.58	%
Total interest-bearing liabilities		3,932,887			30,709	3.11	%		4,201,069			29,769	2.85	%		4,370,112			27,508	2.50	%
Non-interest-bearing liabilities:
Demand and transaction deposits		3,721,398							3,390,941							2,920,737
Other liabilities		70,804							60,982							74,964
Total liabilities		7,725,089							7,652,992							7,365,813
Stockholders’ equity		668,401							623,024							538,753
Total liabilities and stockholders’ equity	$	8,393,490						$	8,276,016						$	7,904,566

Net interest income / interest rate spread				$	72,107	1.90	%				$	69,192	2.09	%				$	63,728	2.20	%
Net interest-earning assets / net interest margin	$	4,237,127				3.51	%	$	3,850,998				3.46	%	$	3,323,819				3.29	%

Total deposits excluding Brokered CDs / total cost of deposits excluding Brokered CDs	$	7,451,234				1.51	%	$	7,331,364				1.48	%	$	6,542,935				1.11	%
Total deposits / total cost of deposits	$	7,582,337				1.58	%	$	7,487,450				1.55	%	$	6,914,264				1.33	%
Total funding / total cost of funds	$	7,654,285				1.60	%	$	7,592,010				1.58	%	$	7,290,849				1.50	%

(1) Includes FHLBNY stock in the average balance, and dividend income on FHLBNY stock in interest income.
(2) No material impact of prepayment penalty interest income in 3Q2024, 2Q2024, or 3Q2023

Net Interest Income Analysis

	Nine Months Ended
	September 30, 2024							September 30, 2023
(In thousands)	Average Balance		Income / Expense			Yield / Rate		Average Balance		Income / Expense			Yield / Rate

Interest-earning assets:
Interest-bearing deposits in banks	$	200,627		$	7,556	5.03	%	$	125,560		$	3,360	3.58	%
Securities		3,289,635			128,679	5.23	%		3,276,065			118,557	4.84	%
Resell agreements		102,197			5,122	6.69	%		8,003			432	7.22	%
Total loans, net ⁽¹⁾⁽²⁾		4,431,801			157,355	4.74	%		4,216,391			139,744	4.43	%
Total interest-earning assets		8,024,260			298,712	4.97	%		7,626,019			262,093	4.60	%
Non-interest-earning assets:
Cash and due from banks		5,862							5,067
Other assets		219,096							210,112
Total assets	$	8,249,218						$	7,841,198

Interest-bearing liabilities:
Savings, NOW and money market deposits	$	3,608,927		$	73,033	2.70	%	$	3,248,278		$	40,010	1.65	%
Time deposits		207,374			5,622	3.62	%		161,756			2,030	1.68	%
Brokered CDs		159,041			6,224	5.23	%		383,521			13,769	4.80	%
Total interest-bearing deposits		3,975,342			84,879	2.85	%		3,793,555			55,809	1.97	%
Borrowings		154,564			4,497	3.89	%		365,262			12,292	4.50	%
Total interest-bearing liabilities		4,129,906			89,376	2.89	%		4,158,817			68,101	2.19	%
Non-interest-bearing liabilities:
Demand and transaction deposits		3,417,970							3,086,482
Other liabilities		70,476							72,821
Total liabilities		7,618,352							7,318,120
Stockholders’ equity		630,866							523,078
Total liabilities and stockholders’ equity	$	8,249,218						$	7,841,198

Net interest income / interest rate spread				$	209,336	2.08	%				$	193,992	2.41	%
Net interest-earning assets / net interest margin	$	3,894,354				3.48	%	$	3,467,202				3.40	%

Total deposits excluding Brokered CDs / total cost of deposits excluding Brokered CDs	$	7,234,271				1.45	%	$	6,496,516				0.87	%
Total deposits / total cost of deposits	$	7,393,312				1.53	%	$	6,880,037				1.08	%
Total funding / total cost of funds	$	7,547,876				1.58	%	$	7,245,299				1.26	%

(1) Includes Federal Home Loan Bank (FHLB) stock in the average balance, and dividend income on FHLB stock in interest income.
(2) Includes prepayment penalty interest income in September YTD 2024 and September YTD 2023 of $18 thousand and $0, respectively.

Deposit Portfolio Composition

	Three Months Ended
(In thousands)	September 30, 2024				June 30, 2024				September 30, 2023
	Ending Balance		Average Balance		Ending Balance		Average Balance		Ending Balance		Average Balance
Non-interest-bearing demand deposit accounts	$	3,801,834	$	3,721,398	$	3,445,068	$	3,390,941	$	2,808,300	$	2,920,737
NOW accounts		186,557		188,250		192,452		191,253		192,654		192,883
Money market deposit accounts		2,959,264		2,986,434		3,093,644		3,202,365		3,059,982		2,893,930
Savings accounts		327,935		331,816		336,943		336,240		357,470		359,214
Time deposits		216,901		223,337		227,437		210,565		180,529		176,171
Brokered certificates of deposit (“CDs”)		102,073		131,103		153,444		156,086		391,919		371,329
Total deposits	$	7,594,564	$	7,582,338	$	7,448,988	$	7,487,450	$	6,990,854	$	6,914,264

Total deposits excluding Brokered CDs	$	7,492,491	$	7,451,235	$	7,295,544	$	7,331,364	$	6,598,935	$	6,542,935

	Three Months Ended
	September 30, 2024				June 30, 2024				September 30, 2023
(In thousands)	Average Rate Paid⁽¹⁾		Cost of Funds		Average Rate Paid⁽¹⁾		Cost of Funds		Average Rate Paid⁽¹⁾		Cost of Funds

Non-interest bearing demand deposit accounts	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%
NOW accounts	0.90	%	1.09	%	1.07	%	1.07	%	0.95	%	1.01	%
Money market deposit accounts	3.00	%	3.24	%	3.08	%	2.93	%	2.31	%	2.14	%
Savings accounts	1.42	%	1.64	%	1.67	%	1.37	%	1.16	%	1.14	%
Time deposits	3.83	%	3.83	%	3.50	%	3.63	%	2.88	%	2.53	%
Brokered CDs	4.89	%	5.43	%	4.98	%	5.13	%	5.14	%	5.21	%
Total deposits	1.43	%	1.58	%	1.59	%	1.55	%	1.46	%	1.33	%

Interest-bearing deposits excluding Brokered CDs	2.80	%	3.02	%	2.88	%	2.74	%	2.16	%	2.00	%

⁽¹⁾ Average rate paid is calculated as the weighted average of spot rates on deposit accounts. Off-balance sheet deposits are excluded from all calculations shown.

Asset Quality

(In thousands)	September 30, 2024		June 30, 2024		September 30, 2023
Loans 90 days past due and accruing	$	—	$	—	$	—
Nonaccrual loans held for sale		989		989		2,189
Nonaccrual loans – Commercial		17,108		23,778		28,041
Nonaccrual loans – Retail		10,542		10,924		6,283
Nonaccrual securities		8		29		31
Total nonperforming assets	$	28,647	$	35,720	$	36,544

Nonaccrual loans:
Commercial and industrial	$	1,849	$	8,428	$	7,575
Multifamily		—		—		—
Commercial real estate		4,146		4,231		4,575
Construction and land development		11,113		11,119		15,891
Total commercial portfolio		17,108		23,778		28,041

Residential real estate lending		7,578		7,756		3,009
Consumer solar		2,848		2,794		2,817
Consumer and other		116		374		457
Total retail portfolio		10,542		10,924		6,283
Total nonaccrual loans	$	27,650	$	34,702	$	34,324

Credit Quality

	September 30, 2024		June 30, 2024		September 30, 2023
($ in thousands)
Criticized and classified loans
Commercial and industrial	$	45,329	$	53,940	$	45,959
Multifamily		13,386		10,242		10,999
Commercial real estate		8,186		8,311		8,762
Construction and land development		11,113		11,119		15,891
Residential real estate lending		7,578		7,756		3,009
Consumer solar		2,848		2,794		2,817
Consumer and other		116		374		457
Total loans	$	88,556	$	94,536	$	87,894

Criticized and classified loans to total loans
Commercial and industrial	1.00	%	1.21	%	1.05	%
Multifamily	0.29	%	0.23	%	0.25	%
Commercial real estate	0.18	%	0.19	%	0.20	%
Construction and land development	0.24	%	0.25	%	0.36	%
Residential real estate lending	0.17	%	0.17	%	0.07	%
Consumer solar	0.06	%	0.06	%	0.06	%
Consumer and other	—	%	0.01	%	0.01	%
Total loans	1.94	%	2.12	%	2.00	%

	September 30, 2024				June 30, 2024				September 30, 2023
	Annualized net charge-offs (recoveries) to average loans		ACL to total portfolio balance		Annualized net charge-offs (recoveries) to average loans		ACL to total portfolio balance		Annualized net charge-offs (recoveries) to average loans		ACL to total portfolio balance
Commercial and industrial	2.14	%	1.01	%	0.32	%	1.44	%	—	%	1.71	%
Multifamily	—	%	0.37	%	—	%	0.38	%	0.45	%	0.46	%
Commercial real estate	—	%	0.40	%	—	%	0.40	%	—	%	0.64	%
Construction and land development	—	%	3.73	%	—	%	3.60	%	—	%	3.68	%
Residential real estate lending	(0.03	)%	0.91	%	(0.18	)%	0.88	%	(0.07	)%	1.13	%
Consumer solar	1.58	%	7.68	%	2.57	%	7.00	%	1.88	%	6.72	%
Consumer and other	1.05	%	6.44	%	0.01	%	6.49	%	0.04	%	6.00	%
Total loans	0.61	%	1.35	%	0.25	%	1.42	%	0.27	%	1.60	%

Reconciliation of GAAP to Non-GAAP Financial Measures
The information provided below presents a reconciliation of each of our non-GAAP financial measures to the most directly comparable GAAP financial measure.

	As of and for the									As of and for the
	Three Months Ended									Nine Months Ended
(in thousands)	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Core operating revenue
Net Interest Income (GAAP)	$	72,107		$	69,192		$	63,728		$	209,336		$	193,992
Non-interest income (GAAP)		8,939			9,258			6,780			28,426			19,930
Add: Securities loss		3,230			2,691			1,699			8,695			5,052
Less: ICS One-Way Sell Fee Income⁽¹⁾		(8,085	)		(4,859	)		—			(15,847	)		—
Less: Changes in fair value of loans held-for-sale		4,265			—			—			4,265			—
Less: Subdebt repurchase gain⁽²⁾		(669	)		(406	)		(637	)		(1,076	)		(1,417	)
Add: Tax (credits) depreciation on solar investments⁽³⁾		1,089			1,815			—			1,095			—
Core operating revenue (non-GAAP)		80,876			77,691			71,570			234,894			217,557

Core non-interest expense
Non-interest expense (GAAP)	$	40,964		$	39,512		$	37,339		$	118,629		$	113,495
Add: Gain on settlement of lease termination⁽⁴⁾		—			—			—			499			—
Less: Severance costs⁽⁵⁾		(241	)		(44	)		(332	)		(471	)		(617	)
Core non-interest expense (non-GAAP)		40,723			39,468			37,007			118,657			112,878

Core net income
Net Income (GAAP)	$	27,942		$	26,753		$	22,308		$	81,944		$	65,284
Add: Securities loss		3,230			2,691			1,699			8,695			5,052
Less: ICS One-Way Sell Fee Income⁽¹⁾		(8,085	)		(4,859	)		—			(15,847	)		—
Less: Changes in fair value of loans held-for-sale		4,265			—			—			4,265			—
Less: Gain on settlement of lease termination⁽⁴⁾		—			—			—			(499	)		—
Less: Subdebt repurchase gain⁽²⁾		(669	)		(406	)		(637	)		(1,076	)		(1,417	)
Add: Severance costs⁽⁵⁾		241			44			332			471			617
Add: Tax (credits) depreciation on solar investments⁽³⁾		1,089			1,815			—			1,095			—
Less: Tax on notable items		(19	)		180			(396	)		764			(1,151	)
Core net income (non-GAAP)		27,994			26,218			23,306			79,812			68,385

Tangible common equity
Stockholders’ equity (GAAP)	$	698,332		$	646,112		$	546,291		$	698,332		$	546,291
Less: Minority interest		(133	)		(133	)		(133	)		(133	)		(133	)
Less: Goodwill		(12,936	)		(12,936	)		(12,936	)		(12,936	)		(12,936	)
Less: Core deposit intangible		(1,669	)		(1,852	)		(2,439	)		(1,669	)		(2,439	)
Tangible common equity (non-GAAP)		683,594			631,191			530,783			683,594			530,783

Average tangible common equity
Average stockholders’ equity (GAAP)	$	668,401		$	623,024		$	538,753		$	630,866		$	523,078
Less: Minority interest		(133	)		(133	)		(133	)		(133	)		(133	)
Less: Goodwill		(12,936	)		(12,936	)		(12,936	)		(12,936	)		(12,936	)
Less: Core deposit intangible		(1,759	)		(1,941	)		(2,547	)		(1,940	)		(2,768	)
Average tangible common equity (non-GAAP)		653,573			608,014			523,137			615,857			507,241

(1) Included in service charges on deposit accounts in the Consolidated Statements of Income
(2) Included in other income in the Consolidated Statements of Income
(3) Included in equity method investments income in the Consolidated Statements of Income
(4) Included in occupancy and depreciation in the Consolidated Statements of Income
(5) Included in compensation and employee benefits in the Consolidated Statements of Income

Reconciliation of GAAP to Non-GAAP Financial Measures
The information provided below presents a reconciliation of each of our non-GAAP financial measures to the most directly comparable GAAP financial measure.

	As of and for the									As of and for the
	Three Months Ended									Nine Months Ended
(in thousands)	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023

Core return on average assets
Numerator: Core net income (non-GAAP)	$	27,994		$	26,218		$	23,306		$	79,812		$	68,385
Denominator: Total average assets (GAAP)	$	8,393,490		$	8,276,016		$	7,904,566			8,249,218			7,841,198
Core return on average assets (non-GAAP)		1.33	%		1.27	%		1.17	%		1.29	%		1.17	%

Core return on average tangible common equity
Numerator: Core net income (non-GAAP)	$	27,994		$	26,218		$	23,306		$	79,812		$	68,385
Denominator: Average tangible common equity (non-GAAP)	$	653,573		$	608,014		$	523,137			615,857			507,241
Core return on average tangible common equity (non-GAAP)		17.04	%		17.34	%		17.67	%		17.31	%		18.02	%

Core efficiency ratio
Numerator: Core non-interest expense (non-GAAP)	$	40,723		$	39,468		$	37,007		$	118,657		$	112,878
Denominator: Core operating revenue (non-GAAP)		80,876			77,691			71,570			234,894			217,557
Core efficiency ratio (non-GAAP)		50.35	%		50.80	%		51.71	%		50.52	%		51.88	%

The MIL Network –

January 25, 2025

Category: KB

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A simpler alternative

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Scotland

Northern Ireland

Republic of Ireland

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Rethinking support

Learning from other countries

This December, the Council’s Chamber will come alive with the sound of Christmas as the Mayor of Preston hosts the annual ‘Carols in the Chamber’.

Councillor Phil Crowe, Mayor of Preston, said:

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Rep. Espaillat Hosts Annual App Competition for Students in New York’s 13th Congressional District.October 24th (Thursday) Marks 2024 Deadline to Submit Entries

Rep. Espaillat Hosts Annual App Competition for Students in New York’s 13th Congressional District.
October 24th (Thursday) Marks 2024 Deadline to Submit Entries