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  • MIL-OSI New Zealand: Speech to Institute of Public Administration New Zealand

    Source: New Zealand Government

    Good morning, kia ora koutou. 

    Thank you, Liz, for your introduction, and to you all for the opportunity to speak to you today. 

    It’s a pleasure to be here. And it’s a particular pleasure to continue a tradition that was started by one of my predecessors Sir Bill English. I’m told the finance minister has presented this address every year since 2009. 

    I would like to acknowledge the role the institute plays in promoting excellence in the public sector. 

    I also want to take the opportunity to voice my appreciation for the work public servants do to keep New Zealanders safe and ensure people receive the public services on which they depend. 

    I respect your enduring commitment to public service and the integrity with which you approach your work, remaining focused on the New Zealanders we each serve, evolving and adapting as the political tides come and go.

    As a – still – proud Wellingtonian, I have had the pleasure of knowing and working with a broad spectrum of public servants throughout my career. I admire the thoughtfulness, tenacity, and earnestness I have seen in so many of you.

    I am grateful that while our Government is facing into a particularly challenging set of economic circumstances, we do so with wise and experienced public servants at our back and by our side.  

    This is not as easy time for our country.  A sustained cost of living crisis has left New Zealand with highly constrained government finances, recessionary conditions, rising unemployment and a range of new pressures for everyday Kiwis, both in their family and working lives.  

    That’s not a political observation, so much as a statement of reality.  

    Nor is it a reflection on the professionalism, skill or commitment of New Zealand’s public service. 

    The nation’s position today is a consequence of a global pandemic and of choices made by the previous Government.   

    This is not the forum for politics, and it is not my intention to make a political speech. The facts speak for themselves. In the past six years, there has been an 82 per cent increase in government spending and an additional $118 billion of debt added to the government books. As a country we have been living beyond our means. And now, we must correct course. 

    The good news is that there is light at the end of the tunnel. Inflation has returned to the Reserve Bank’s target range of 1 to 3 per cent for the first time in more than three years, interest rates are coming down and business and public confidence is increasing. 

    There is no escaping the reality, however, that many families and businesses are doing it tough. Inflation has increased household costs and squeezed business margins. 

    Partly for that reason, and also because it is good practice, our Government’s focus on fiscal discipline is going to continue. It is not a one-off, one-Budget affair. It is an ongoing state of mind. 

    As a government we are committed to getting the books back in order and bringing debt down, but our aspirations go far beyond changing the colour of the ink in the government’s accounts. We want to do more than simply deliver better value for money. And we are interested in far more than simply ticking off actions or delivering to targets.  

    We are intent on improving lives. 

    You and your colleagues in the public service have a critical role to play in this because, frankly, what we’ve been doing in recent years hasn’t worked for too many New Zealanders. Some of those who most need help haven’t been getting it. 

    That comes at an economic cost to the country, but more importantly it comes at a human cost. People are our greatest asset and delivering for people is our greatest purpose. In recent times, New Zealand has failed too many of its people: both economically and socially. Falling levels of educational achievement, poor housing, rising welfare dependency and an economy that is not growing quickly enough have denied opportunity to those who most need it. 

    I’ve said this a couple of times before to particular groups of public servants. Now, I’ll say it to a broader group. 

    Now is the time for your best and boldest ideas. As a government we are not interested in treading the same path that has denied opportunity to some of our most vulnerable. We want to make a difference to lives. 

    That’s the reason the Government has brought back public service targets: to focus the public sector on driving better results in health, education, law and order, work, housing and the environment. We understand targets aren’t a perfect mechanism, but past experience has shown they do help to focus attention on the things that make a difference.

    It’s also why this Government is determined to scale up the efforts that have gone into social investment so far.  

    The philosophy underlying social investment makes sense to everybody. 

    Given the choice, what New Zealander would choose to pay for an ambulance at the bottom of the cliff when we could instead build a fence to prevent the fall? They key is working out where the fences are needed and for who, ascertaining who is best placed to build those fences, and then rigorously testing whether they’re actually preventing the fall.

    This is a moral imperative, and it’s also a fiscal one.

    The difference to the taxpayer between a life in and out of the prison system and a life spent in productive activity is in excess of a million dollars. More importantly, for the individuals concerned, and their families, it can be the difference between a life of fulfilment and a life of misery. 

    Thanks to the work started by Bill English we now have a very good idea of where to direct our efforts.  

    For example, Stats NZ’s Integrated Data Infrastructure research database enables us to identify common factors in the lives of those who interact most frequently with state agencies. The factors themselves won’t come as a surprise to anyone. They include poor education, benefit dependency, multiple admissions to hospital emergency departments, being victims of violence and being perpetrators of violence. 

    But put the data together and you get a compelling case for targeted intervention. The IDI tells us that a 22-year-old with eight to 10 of these factors is, by the age of 27, 116 times more likely to have a child placed in care, 69 times more likely to have served a prison sentence, 22 times more likely to have been the victim of family violence and five-and-a-half times more likely to have been hospitalised for attempted suicide.       

    The data is not determinative. Many outstanding New Zealanders have emerged from extremely challenging circumstances and some of those who end up falling foul of our justice system and dependent on welfare come from privileged backgrounds. 

    But the data does give us a good sense of where to direct the scarce resources of the government. No country can afford to fund every good thing. Every dollar spent comes at the opportunity cost of a dollar spent elsewhere. We must always be working to focus funds where they can have the most profound and enduring impact. The prize for that effort is the most important prize of all: it is a child fulfilling the full human potential with which they entered this world. 

    There is no shortage of data in government. The challenge we must now address is how we use this this data to practically make a difference to lives.

    Social investment approach

    In July this year, the Government established the Social Investment Agency to lead, build, and demonstrate a social investment approach. 

    As a mark of the importance we attach to this work, the agency was established as a central agency. That is because the Government wants to see system change across the public service.

    To this end we are asking the public service to think about service delivery in a different way. We are asking for more purposeful thought about how we invest for the New Zealanders in most need. Going beyond the easy platitudes of good intentions and instead moving towards a world of far greater accountability for what results are delivered. 

    This demands us to think much more purposefully not just about what we want to change but how best to make it happen. We want to see more devolution of power, more clarity about what works for who, and much more space for innovation. In accountant-speak, our focus is shifting from outputs to outcomes. That means asking ourselves the right questions.

    First: what are the outcomes we want to achieve? That is a different question from the question that is often asked by governments – ‘what can we give people’. And it is a question that leads to different outcomes. 

    Second: who needs help? Not ‘how shall we distribute these services that we already have?’ That means putting the needs of the people who need help ahead of the needs of organisations providing services.

    Third: what services should be prioritised? Not ‘what shall we add to the service mix?’ That means identifying what is working and, just as importantly, what is not working. 

    This is one of the most challenging issues governments face because stopping programmes that are not performing well affects the people involved and can be interpreted as an admission of failure. 

    But, if we are serious about making a difference to the lives of our most vulnerable, we have to be rigorous about directing resources away from initiatives that are not making a difference towards initiatives that are. 

    Fourth: how do we enable providers to achieve the outcomes we want? Not, ‘how do we manage providers so they do what we want’ but how do we empower them to achieve the outcomes we all want to see?

    And fifth and finally: ‘How will we know if what we are doing is working?’ This is a question that is not asked often enough and the failure to do so is at the root of too much inefficiency in our social system.  

    Drawing on evidence and being clear about the answers to these questions, gives us the best chance of changing lives. It also ensures we get value for the money we spend.  

    Social outcomes contracts

    Another important aspect of social investment is recognising that not all the answers to the challenges we face can be found in Wellington office blocks, or the Beehive, for that matter. 

    Communities often know what the best solutions for their people are. We need and want to foster genuine partnership between the public service and proven community-based providers. 

    I’ve heard time and time again from those working with communities that the way the government contracts and commissions programmes is broken.

    I know that you too will have received feedback from service users, non-government organisations, iwi, and communities that current contracting arrangements fail to focus on the thing that really matters – whether the service makes a difference for people.

    When I talk to and visit providers, they tell me about the multiple overlapping contracts that they have with different agencies who do not seem to be talking to each other.

    They tell me about how government ties their hands by requiring specific outputs that prevent them from innovating to provide services more effectively. 

    They tell me about the time they waste producing reports that don’t seem to inform future conversations and contracting decisions, and the teams of people they have to employ to produce reports that aren’t read.

    They tell me about being forced to ‘contract farm’ to secure piecemeal funding across multiple contracts in order to ensure they can stay afloat and serve their communities.

    All of this is a drain on their resources which means they have less time to deliver outcomes for vulnerable New Zealanders. They have less time to think creatively and less ability to adapt and flex how they deliver. 

    Social investment suggests that one of the solutions to these problems is contracting with providers to deliver outcomes rather than outputs. 

    That means that once contracts have been negotiated, providers can choose how best to achieve the outcomes everyone wants. Outcomes-based contracts allow providers to flex their services around the needs of the people they are working with and to develop new solutions. To move away from a focus on serving the needs of a government department and instead take radical accountability for the results they deliver for the people they serve. 

    Outcomes-contracting also creates data-rich feedback loops to inform ongoing improvements to service delivery and future contracts. 

    It requires a conversation and agreement between funders and providers about data. What outcomes will be measured? How will those outcomes be measured? How will providers demonstrate that they are learning what works and doing more of it? How will funders use this data to inform decisions about future investments? 

    It’s not about elaborate evaluations and literature reviews – it’s about real-time insights into what’s working, what’s not working and what to do next to get the result that matter for the people we serve.  

    Changing the way that social services are commissioned will be a critical component of the social investment approach.

    Therefore, I have asked the Social Investment Agency to lead work with other agencies to develop prototype outcomes contracts to replace the current set of criss-crossing and overlapping outputs-focused contracts. This will provide a blueprint for other commissioners and providers of services to follow. 

    Contracting in this way has the potential to raise the bar for investment decisions across the public service. Not only does it require agencies to understand the needs of different groups, it requires them to assess the impact of the services they have delivered by measuring and comparing results.

    The Government is also progressing work to establish a Social Investment Fund that will directly commission outcomes for vulnerable New Zealanders and work with community, non-government organisations and iwi providers. 

    The fund will be managed by the Social Investment Agency and will serve as a testing ground for innovation which – when successful – can be applied more broadly to the social sector.

    Initially the fund will be small and targeted, but I anticipate it will grow over time and become an increasingly important vehicle for empowering innovation and testing new approaches. My ambition is that the fund will eventually be an effective vehicle not just for Government investment in changing people’s lives, but also as a home for funding from philanthropists, investors and anyone who wants to deploy their money in service of social good.  

    Not every initiative it funds will be successful, but that is the point of a testing ground, to identify what works and, just as importantly, what does not. Better to fail fast in a test environment and learn from the results than to keep doing the same thing that history has shown does not deliver results. 

    Conclusion

    In conclusion, this is a government that is intent on making a difference. We are not going to keep doing things simply because that is the way they have always been done. We want to make New Zealand a better place for everyone, particularly our most vulnerable citizens.

    We know change can be unsettling and we know we are asking a lot of you and your colleagues in the public service. 

    At the same time that we’re making savings across the public sector, we’re not just asking you to deliver business as usual, we’re challenging you to think and operate differently. For me, wrestling with that reality conjures up a phrase attributed to that great New Zealand pioneer, Ernest Rutherford: We haven’t got the money, so we’ll have to think.

    I am confident in your ability to rise to the challenge. 

    What I am hearing from many public servants is that you welcome the opportunity to think differently about how we tackle some of our biggest and most entrenched challenges. 

    That does not surprise me. I know the reason most, if not all of you, joined the public service is to serve your fellow New Zealanders and contribute to making New Zealand a better place. 

    I encourage you to be bold and put forward your best advice. I also encourage you to work as closely and openly as you can with those you are seeking to serve – local decision makers, iwi and Māori providers, as well as the private sector. Central government does not have a monopoly on good ideas. 

    Together, we have an opportunity to reduce welfare dependency, improve health, raise educational achievement, lower rates of offending and address increasing rates of inequality. Without adding to the spaghetti of bureaucracy.

    Let’s seize that opportunity with both hands. Thank you.

    MIL OSI New Zealand News –

  • MIL-OSI New Zealand: Government Cuts – Lives of workers at risk from latest WorkSafe restructure plan

    Source: PSA

    – Workplace Inspectors to lose vital support
    – Net 40 roles proposed to go
    – Cuts follow 113 jobs axed last November
    The critical job of WorkSafe to save lives and reduce injuries will be undermined by its latest proposed restructure, the PSA warns.
    WorkSafe, the workplace health and safety regulator, is consulting staff on the second major restructure in a year which proposes to axe 180 roles. While some new roles will be created this would still result in a net loss of 40 roles and follows 113 roles being axed last November.
    A range of roles are being cut – health specialists, advisors, researchers, evaluators and legal kaimahi who support WorkSafe inspectors and whose role is to educate businesses, provide assessment support to workplaces and protect workers from poor health and safety practices.
    “This is a flawed plan which strips WorkSafe of critical roles. This will undermine the ability of frontline WorkSafe inspectors to do their vital work, so workers return home safe and healthy,” said Duane Leo Secretary for Public Service Association Te Pūkenga Here Tikanga Mahi.
    “Once again, we see the fiction of the Government’s promise of no impacts on the frontline. It’s another broken promise.
    “We already have a poor health and safety record in this country with a fatality rate double that of Australia. The Government should be investing more not less in this critical agency.
    “It’s a huge concern that the health team is being downsized with the loss of specialist skills. This team is relatively new and was playing a key role in dealing with a range of issues in the workplace like mental health.
    “We know stress in the workplace is growing. 12% of suicides are work related, and there are some 5000 hospitalisations each year due to work-related ill-health. Managing health risks should be a priority, not downsizing a team playing a vital role at a time when work-related health risks are higher than safety risks.
    “WorkSafe is also proposing to increase the numbers of inspectors but by not nearly enough to meet the high turnover already and well below that of Australia, hampering our ability to make serious inroads into our appalling safety record.
    “The changes proposed will only pile more work on the shoulders of inspectors.
    “For example, under this proposal, cuts to the legal team will force inspectors to spend more time gathering documents to support prosecutions. This risks undermining the ability of WorkSafe to properly hold offenders to account.
    “This is a return to the failed approach of the past; inspectors will be bogged down by paperwork once again when they need to be supported by a solid team of specialists.
    “It makes no sense that this is all happening when the Government has yet to complete its review of the health and safety system – why not wait and get it right once and for all?
    “Yet again, we are seeing the Government putting the bottom line first, favouring tax breaks for landlords and big tobacco over investing in a frontline agency that saves lives,” said Duane Leo.
    Previous PSA WorkSafe releases
    –
    The Public Service Association Te Pūkenga Here Tikanga Mahi is Aotearoa New Zealand’s largest trade union, representing and supporting more than 95,000 workers across central government, state-owned enterprises, local councils, health boards and community groups.

    MIL OSI New Zealand News –

  • MIL-OSI Security: Election Officer Appointed for the District of South Dakota for the November 2024 General Election

    Source: Office of United States Attorneys

    Assistant U.S. Attorney Ann M. Hoffman to Oversee Election Day Program

    SIOUX FALLS – United States Attorney Alison J. Ramsdell announced today that Assistant U.S. Attorney (AUSA) Ann M. Hoffman will lead the efforts of her Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 5, 2024, general election. AUSA Hoffman has been appointed to serve as the District Election Officer (DEO) for the District of South Dakota, and in that capacity is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.

    “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election,” said U.S. Attorney Ramsdell. “Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice is committed to protecting the integrity of the election process and bringing to justice those who seek to corrupt it.”

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

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

    To respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Hoffman will be on duty in this District while the polls are open. She can be reached by the public at the following telephone number: (605) 838-9446. In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (605) 334-6881.

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

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

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

    MIL Security OSI –

  • MIL-OSI Security: Florence Man Sentenced to Over 31 Years in Federal Prison for Distributing Pills Containing Fentanyl in Watertown and Sisseton Areas

    Source: Office of United States Attorneys

    SIOUX FALLS – United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Charles B. Kornmann has sentenced a Florence, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on October 21, 2024.

    Heath Kelvin Hagen, a/k/a Rem, age 37, was sentenced to 31 years and eight months in federal prison, followed by 10 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.

    Hagen was indicted by a federal grand jury in April of 2023. He was convicted at trial on July 30, 2024.

    The conviction stemmed from Hagen’s involvement in a large fentanyl trafficking organization over the course of the Fall of 2021 into the Spring of 2022. Hagen knowingly and intentionally conspired with others to distribute 400 grams of a substance containing fentanyl, a Schedule II controlled substance. Hagen obtained pills containing fentanyl from a co-conspirator in Minneapolis. Hagen then re-sold the pills to sub-distributors and drug customers in Watertown and Sisseton. Following a search of Hagen’s residence, investigators recovered 60 fentanyl pills hidden in a fake tea can. Investigators determined Hagen was involved in the distribution of over 20,000 pills containing fentanyl.

    “This defendant was repeatedly identified as the biggest fentanyl dealer in the Watertown area, responsible for peddling thousands of lethal doses of fentanyl into our communities,” said U.S. Attorney Alison J. Ramsdell. “His sentence of over thirty-one years not only reflects the seriousness of his crime, but the relentless, collaborative efforts of local, state, and federal law enforcement agencies to identify and investigate drug traffickers so that my office can prosecute and put away reckless criminals looking to profit off vulnerable and unsuspecting South Dakotans.”

    This case was investigated by the Bureau of Indian Affairs and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Mark Hodges prosecuted the case.

    Hagen was immediately remanded to the custody of the U.S. Marshals Service. 

    MIL Security OSI –

  • MIL-OSI Security: Federal Jury finds Mission Man Guilty of Aggravated Sexual Abuse and Kidnapping

    Source: Office of United States Attorneys

    PIERRE – United States Attorney Alison J. Ramsdell announced today that Canku Martinez, age 22, of Mission, South Dakota, was found guilty of Aggravated Sexual Abuse and Kidnapping following a four-day federal jury trial in Pierre, South Dakota. The verdict was returned on October 18, 2024.

    Each charges carries a maximum sentence of life in federal prison, and/or a $250,000 fine, five years up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.

    Martinez was indicted by a federal grand jury in February of 2024.

    At trial, the evidence established in the early morning hours of October 29, 2024, in the Rosebud Indian Reservation, Martinez agreed to give a juvenile a ride home from a party near Rosebud, South Dakota. Rather than give her a ride home, however, Martinez drove her to a secluded area outside of Rosebud and made sexual advances. When the juvenile rejected his advances, Martinez produced a knife and forced her to engage in sexual activity. Martinez subsequently dropped the victim off at her residence, told her not to tell anyone what he had done, and left the area shortly thereafter.

    This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.

    This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

    This case was investigated by the FBI, the Rosebud Sioux Tribe Law Enforcement Services, and the Winner (SD) Police Department. Senior Litigation Counsel Kirk Albertson prosecuted the case.   

    A presentence investigation was ordered, and a sentencing date has not been set. Martinez was remanded to the custody of the U.S. Marshals Service pending sentencing.

    MIL Security OSI –

  • MIL-OSI Security: Birmingham Man Sentenced to 10 Years in Prison on Gun and Drug Charges

    Source: Office of United States Attorneys

    BIRMINGHAM, Ala. – A Birmingham man has been sentenced for gun and drug crimes, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Marcus Watson.

    U.S. District Judge Madeline Hughes Haikala sentenced Damion Deonte Wade, 24, to 120 months in prison after Wade pleaded guilty to being a felon in possession of a firearm and possession with the intent to distribute fentanyl.

    According to the plea agreement, on April 11, 2023, Birmingham Police officers stopped a vehicle for having a tinted windshield; Wade was driving. Officers saw drugs, drug paraphernalia, and firearms in plain view. Officers searched the vehicle and recovered  two digital scales, methamphetamine, fentanyl, a Mak-47, a Glock 10mm extended magazine and an AK-47 magazine.

    ATF investigated the case along with the Birmingham Police Department.  Assistant U.S. Attorney Darius Greene prosecuted the case.  

    MIL Security OSI –

  • MIL-OSI Security: Rosebud Man Sentenced to Federal Prison for Assaulting Fellow Inmate and Possessing a Sawed-Off Shotgun

    Source: Office of United States Attorneys

    PIERRE – United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Eric C. Schulte has sentenced a Rosebud, South Dakota, man convicted of Assault With a Dangerous Weapon and Possession of an Unregistered Firearm. The sentencing took place on October 21, 2024.

    Kobe Ryan Running Bear, a/k/a Kobe Running Bear-Espinoza, age 21, was sentenced to two years and six months in federal prison, followed by three years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.

    Running Bear was indicted by a federal grand jury in September of 2023. He pleaded guilty on July 24, 2024.

    The convictions stem from two separate incidents which occurred in July of 2023 within the boundaries of the Rosebud Sioux Indian Reservation. On July 4, 2023, Running Bear was driving a vehicle faster than the posted speed limit in Mission, South Dakota. A law enforcement officer observed Running Bear and initiated a traffic stop, but Running Bear accelerated and attempted to flee. During the pursuit, Running Bear threw a short shotgun from his vehicle. The shotgun was recovered by law enforcement and Running Bear was subsequently apprehended. The short shotgun had a barrel of less than eighteen inches in length and was not registered in the National Firearms Registration and Transfer Record. Running Bear will forfeit ownership of the firearm to the United States.

    On July 29, 2023, Running Bear was an inmate at the Rosebud Sioux Tribe Adult Correctional Facility. At one point, Running Bear and another man attacked a fellow inmate and assaulted him with a pencil.

    This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.

    This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

    This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Kirk Albertson prosecuted the case.   

    Running Bear was immediately remanded to the custody of the U.S. Marshals Service.

    MIL Security OSI –

  • MIL-OSI Security: Justice Department Announces Four Cases Brought by Election Threats Task Force

    Source: Office of United States Attorneys

    WASHINGTON — The Justice Department’s Election Threats Task Force (ETTF) announced developments this week in four cases involving interstate transmissions of threats to election personnel and other victims.

    Teak Brockbank, 45, of Cortez, Colorado, pleaded guilty today to threatening a Colorado election official, and admitted to making other threats to an Arizona election official, a Colorado state judge, and federal law enforcement agents between September 2021 and July 2024.

    Brian Jerry Ogstad, 60, of Cullman, Alabama, was sentenced on Monday to 30 months in prison for sending messages threatening violence to election workers with Maricopa County Elections in Phoenix on Aug. 2-4, 2022, during and immediately following the Arizona primary elections.

    Richard Glenn Kantwill, 61, of Tampa, Florida, was charged on Monday for allegedly sending a threat on Feb. 9 to an election official in addition to already pending charges for threats made to three other victims based on their political commentary in 2019 and 2020.

    John Pollard, 62, of Philadelphia, was charged on Monday for allegedly threatening on Sept. 6 to kill a representative of a Pennsylvania state political party who was recruiting official poll watchers.

    “As we approach Election Day, the Justice Department’s warning remains clear: anyone who illegally threatens an election worker, official, or volunteer will face the consequences,” said Attorney General Merrick B. Garland. “Over the past three and a half years, the Justice Department has been aggressively investigating and prosecuting those who threaten the public servants who administer our elections, and we will continue to do so in the weeks ahead. For our democracy to function, Americans who serve the public must be able to do their jobs without fearing for their lives.”

    “Threats to election workers are threats to our democratic process,” said Deputy Attorney General Lisa Monaco. “No one should face violence or threats of violence simply for doing their job. The actions announced today make clear that we will not tolerate those who use or threaten violence in an effort to undermine our democratic institutions. To carry out their essential work, election officials must be free from improper influence, physical threats, and others forms of intimidation.”

    “Our elections are made by possible by the hard work and patriotism of election workers in communities across the country who are also our neighbors, relatives and friends, and they deserve to do this important work without being subjected to threats,” said FBI Director Christopher Wray. “The fact that election workers need to be worried about their security is incomprehensible and unacceptable. While these four cases are examples of the kinds of threats election workers are unfortunately facing, these cases also represent the FBI’s dedication in holding accountable those who undermine our democracy with this conduct. The FBI and our partners on the ETTF will work tirelessly to charge and arrest those callous enough to make these threats and make sure they are held accountable. Free, fair, and safe elections are critical to our country and our democratic ideals.”

    “These defendants made serious threats of violence against members of the election community. Threats like these strike at the very heart of our democracy,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The cases announced today underscore the Criminal Division’s commitment to defending our democracy, safeguarding our elections, and protecting all election workers. Through the ETTF, the Department will vigorously investigate and prosecute all criminal threats against members of the election community.”

    The four cases were all brought by the ETTF. Created by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa Monaco in June 2021, the task force has led the Department’s efforts to address threats of violence against election workers, and to ensure that all election workers — whether elected, appointed, or volunteer — are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. Three years after its formation, the task force is continuing this work and supporting U.S. Attorneys’ Offices and FBI Field Offices nationwide as they join the task force in its critical work.

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

    United States v. Brockbank (District of Colorado)

    According to court documents, Brockbank admitted to using three social media accounts to post messages threatening Colorado and Arizona election officials between September 2021 and July 2024.

    On Sept. 22, 2021, Brockbank posted the following message on social media:

    “[Election Official-1] . . . needs to- No has to Hang she has to Hang by the neck till she is Dead Dead Dead. There will be accountability for these peoples actions in Communist Colorado and it won’t be judges and it won’t be weakmided cops that bring it!!! It will be Me it will be You it Will be every day people that understand that there life does not matter anymore with the future our country has laid out before it.”

    As part of his plea, Brockbank also admitted to posting a message on Aug. 4, 2022 referring to election officials in Arizona and Colorado, stating: “Once those people start getting put to death then the rest will melt like snowflakes and turn on each other. . . . This is the only way. So those of us that have the stomach for what has to be done should prepare our minds for what we all [a]re going to do!!!!!! It is time.”

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

    Brockbank further admitted to threatening federal law enforcement on July 13, 2024, posting: ““I believe every single FBI agent deserves to go explain themselves to our creator right away!!!! I am more than willing to send any/All of you there.”

    Finally, Brockbank admitted to illegally possessing multiple firearms and ammunition.

    “The security and sanctity of the American election system is core to the foundation of our Democracy,” said Acting United States Attorney Matt Kirsch for the District of Colorado. “We will prosecute people who threaten elections, election officials, or election workers to the fullest extent of the law.”

    Brockbank pleaded guilty today to interstate transmission of a threat. He is scheduled to be sentenced on Feb. 3, 2025, and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The FBI Denver Field Office is investigating the case.

    Acting Deputy Director Jonathan E. Jacobson of PIN’s Election Crimes Branch and Assistant U.S. Attorney Cyrus Y. Chung for the District of Colorado are prosecuting the case.

    United States v. Ogstad (District of Arizona)

    According to court documents, on or about Aug. 2, 2022, Arizona held primary elections for federal and state officeholders, including a gubernatorial primary election that received nationwide media coverage. From the day of the election through on or about Aug. 4, 2022, Ogstad sent multiple threatening direct messages to a social media account maintained by Maricopa County Elections. For instance, on or about Aug. 3, 2022, Ogstad stated: (1) “You did it! Now you are f*****.. Dead. You will all be executed for your crimes”; (2) F*** you! You are caught! They have it all. You f****** are dead”; (3) “You are lying, cheating m****** f******* . . . you better not come in my church, my business or send your kids to my school. You are f****** stupid if you think your lives are safe”; and (4) “You f******  are so dead.” On or about Aug. 4, 2022, Ogstad also stated, “[Y]ou people are so ducking stupid. Everyone knows you are lots, cheats, frauds and in doing so in relation to elections have committed treason. You will all be executed. Bang f******!” ” In the course of his messages to the recipient, Ogstad transmitted an image of the character “Woody,” from the Toy Story film franchise, lying face down with an unidentified projectile in its back.

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

    Ogstad was sentenced on Monday to 30 months in prison, followed by three years of supervised release and a $1,000 fine, after pleading guilty on July 25 to one count of interstate transmission of a threat.

    The FBI Phoenix Field Office investigated the case, with substantial assistance from the FBI Birmingham Field Office.

    Trial Attorney Tanya Senanayake of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorney Mary Sue Feldmeier for the District of Arizona prosecuted the case.

    United States v. Kantwill (Middle District of Florida)

    According to court documents, from September 2019 to July 2020, Kantwill, a dentist, sent over 100 threats to various public figures via Facebook and Instagram messages, email, and text. As charged in the superseding information filed on Monday, those threats included a threat sent via email to an author, a threat sent via text to a religious leader, and a threat sent via Instagram to a television personality. From April 2022 to April 2024, Kantwill also sent at least seven additional threats to four public figures via Facebook, including a threat to an election official in another state on Feb. 9, when Kantwill wrote: “You are a degenerate c***. and you are now the target of our own investigation. Take note because liberal t***s like you get raped in alleys, by really big black guys that serve our cause. So, you t*** are going to get raped by at least 5 n*****s, and do nothing. You are the number 1 target, you degenerate t***.”

    “If you threaten someone with violence, we will take you at your word,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “Law enforcement officers and members of my office will work together to hold accountable and federally prosecute individuals who threaten to injure or kill others.”

    Kantwill is charged with four counts of interstate transmission of a threat. If convicted, he faces a maximum penalty of five years in prison for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The FBI is investigating the case.

    Trial Attorney Aaron L. Jennen of PIN and Assistant U.S. Attorney Abigail K. King for the Middle District of Florida are prosecuting the case, with assistance from Assistant U.S. Attorney Cyrus Y. Chung for the District of Colorado.

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

    United States v. Pollard (Western District of Pennsylvania)

    According to the indictment, on Sept. 6, Pollard sent threatening text messages to Victim 1, a resident of the Western District of Pennsylvania. Victim 1 had previously posted online, in Victim 1’s capacity as an employee of a state political party, that Victim 1 was recruiting volunteers to “help[] observe at the polls on Election Day” and included Victim 1’s phone number. Pollard allegedly texted Victim 1 that he was “interested in being a poll watcher” and included Victim 1’s first name. Pollard then allegedly texted three threats to Victim 1: (1) “I will KILL YOU IF YOU DON’T ANSWER ME!”; (2) “Your days are numbered, B****!”; and (3) “GONNA F***ING FIND YOU AND SKIN YOU ALIVE AND USE YOUR SKIN FOR F***ING TOILET PAPER, YOU F***ING KKK**T!”

    “Threats of violence have no place in our society,” said U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania. “This is no less true when those threats of violence are directed at individuals associated with our electoral process — in this case, someone seeking to organize poll watchers. This conduct will not be tolerated in our district, and we will continue to work with our partners at the FBI to prosecute these offenses with the full weight of the law.”

    Pollard was arrested on Monday and appeared in federal court in Philadelphia. He is charged with one count of interstate transmission of a threat. If convicted, he faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The FBI Pittsburgh Field Office is investigating the case.

    Trial Attorney Jacob R. Steiner of PIN and Assistant U.S. Attorney Nicole A. Stockey for the Western District of Pennsylvania are prosecuting the case, with assistance from the U.S. Attorney’s Office for the Eastern District of Pennsylvania.

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

    *****

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

    MIL Security OSI –

  • MIL-OSI Security: Bank fraud scheme sends Georgia man to federal prison for four years

    Source: Office of United States Attorneys

    MISSOULA — A federal judge today sentenced a Georgia man to four years in prison, to be followed by five years of supervised release, for a scheme that involved recruiting homeless individuals to cash fraudulent checks at Montana financial institutions, U.S. Attorney Jesse Laslovich said.

    The defendant, Akia Demetrius Hills, 30, of Atlanta, Georgia, pleaded guilty in June to bank fraud and aggravated identity theft.

    U.S. District Judge Dana L. Christensen presided. The court also ordered $226,500.69 in restitution.

    In court documents, the government alleged that Hills and others stole mail and checks, and then fraudulently used the identities of various individuals to cash fraudulent checks throughout Montana financial institutions. On May 10, 2019, Hills and others instructed a man to enter numerous banks to attempt to cash a fraudulent check. Eventually, one bank accepted the fraudulent check, which totaled $6,734. Hills traveled across the country to defraud banks and attempted to use homeless individuals to cash fraudulent checks at banks.

    The U.S. Attorney’s Office prosecuted the case. The FBI conducted the investigation.

    XXX

    MIL Security OSI –

  • MIL-OSI Security: Indictment Returned in June 2023 Armed Carjacking

    Source: Office of United States Attorneys

                WASHINGTON – Vincent Jones, 29, of Washington, D.C., was indicted today on charges of armed carjacking, armed robbery, and two counts of possession of a firearm during a crime of violence, for robbing the victim at gunpoint outside of a McDonald’s Restaurant, at 3901 Minnesota Ave. in Northeast D.C., in June of 2023, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith of the Metropolitan Police Department (MPD).

               According to the government’s evidence, on June 16, 2023, the defendant and two accomplices approached the victim near the parking lot, pointed firearms at him, demanded that he “give it up,” and forcibly took his keys, bag, and cash.  The defendant and one accomplice then fled in the victim’s vehicle while the third accomplice fled in a separate car.

               This case is being investigated by the Metropolitan Police Department (MPD).  It is being prosecuted by Assistant U.S. Attorneys Anthony Cocuzza and Jacob Green of the U.S. Attorney’s Office for the District of Columbia.

               An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    MIL Security OSI –

  • MIL-OSI Security: California Man Charged with Weapon of Mass Destruction Offense in Connection with Bomb Attack in Lobby of County Courthouse

    Source: Office of United States Attorneys

    A three-count federal grand jury indictment was returned today charging Nathaniel James McGuire, 20, of Santa Maria, California, with committing a bomb attack at a courthouse in Santa Maria in which several people were injured. McGuire’s arraignment is scheduled for Oct. 25 in the Central District of California.

    According to the indictment and criminal complaint, on Sept. 25, McGuire entered a courthouse of Santa Barbara County Superior Court and threw a bag into the lobby. The bag exploded and McGuire left the courthouse on foot. The explosion injured at least five people who were near the bomb when it exploded.

    Shortly thereafter, McGuire was apprehended and detained by law enforcement officials as he was trying to access a red Ford Mustang car parked outside the building. McGuire allegedly yelled that the government had taken his guns and that everyone needed to fight, rise up, and rebel.

    Inside the car, a deputy saw ammunition, a flare gun, and a box of fireworks. A search of the car revealed a shotgun, a rifle, more ammunition, a suspected bomb, and 10 Molotov cocktails. Law enforcement later rendered the bomb safe. McGuire told law enforcement he intended to re-enter the courthouse with the firearms in order to kill a judge.

    A search of McGuire’s residence revealed an empty can with nails glued to the outside, a duffel bag containing matches, black powder, used and unused fireworks, and papers that appeared to be recipes for explosive material.

    McGuire was charged with one count of using a weapon of mass destruction, one count of maliciously damaging a building by means of explosive, and one count of possessing unregistered destructive devices. McGuire has been in custody since his arrest in September, shortly after the attack.

    If convicted of all charges, McGuire faces a mandatory minimum penalty of seven years in prison and a statutory maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Martin Estrada for the Central District of California, and Executive Assistant Director Robert Wells of the FBI’s National Security Branch announced the case.

    The FBI is investigating the case.

    Assistant U.S. Attorneys Mark Takla and Kathrynne N. Seiden for the Central District of California are prosecuting this case with substantial assistance from Trial Attorney Patrick Cashman of the National Security Division’s Counterterrorism Section.

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

    MIL Security OSI –

  • MIL-OSI Security: Alexandria woman pleads guilty to intentionally striking a victim with her car while fleeing the Fort Belvoir Exchange

    Source: Office of United States Attorneys

    ALEXANDRIA, Va. – An Alexandria woman pled guilty today to assault with a dangerous weapon with intent to do bodily harm.

    According to court documents, on Dec. 29, 2022, Alexis Amani Smith, 28, entered the AAFES Main Exchange at Fort Belvoir and began to steal several items of merchandise. Smith then walked past the final point of purchase with five items – perfume and earrings valued at $342.99 – without paying.

    After Smith exited the Exchange with the merchandise, a loss prevention officer (LPO) of the Exchange approached Smith, questioned her about her apparent theft of merchandise, and requested identification. A verbal altercation ensued. Smith placed the stolen merchandise on the floor, then quickly exited the Exchange and entered her vehicle in the Main Exchange parking lot.

    The LPO followed Smith to the parking lot to obtain the vehicle license plate number. While the LPO was standing directly in front of Smith’s vehicle, Smith accelerated the vehicle, striking the LPO’s knees and shins. The LPO placed her hands on the hood of Smith’s vehicle to maintain her balance while yelling for Smith to stop. Smith accelerated again, sending the LPO onto an adjacent vehicle and then onto the pavement. Smith continued to accelerate and left the Main Exchange.

    As a result of the vehicle strike, the victim suffered injuries to both her knees, her forearm, and her shoulder.

    Smith is scheduled to be sentenced on Feb. 12, 2025, and faces up to 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia made the announcement after U.S. District Judge Rossie D. Alston Jr. accepted the plea.

    The Fort Belvoir Department of Emergency Services provided valuable assistance on this case.

    Assistant U.S. Attorney Nicholas Durham is prosecuting the case. Former Special Assistant U.S. Attorneys M. Kyle Richardson and Margarita Pendarvis provided substantial assistance in the prosecution of the case.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-168.

    MIL Security OSI –

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

    Source: GlobeNewswire (MIL-OSI)

    NOTABLE ITEMS FOR THE QUARTER INCLUDE:

    • DILUTED EARNINGS PER SHARE WERE $0.16 FOR THE CURRENT QUARTER COMPARED TO $0.14 FOR THE TRAILING QUARTER, AND $0.19 FOR THE THIRD QUARTER OF 2023.
    • NET INTEREST MARGIN REMAINED RELATIVELY STABLE AT 2.08% FOR THE CURRENT QUARTER AS COMPARED TO 2.09% FOR THE TRAILING QUARTER.
    • AVERAGE YIELD ON INTEREST-EARNING ASSETS DECREASED ONE BASIS POINT TO 4.38%, WHILE THE AVERAGE COST OF INTEREST-BEARING LIABILITIES REMAINED STABLE AT 2.95% FOR THE CURRENT QUARTER AS COMPARED TO THE TRAILING QUARTER.
    • DEPOSITS (EXCLUDING BROKERED) DECREASED MODESTLY BY $5.1 MILLION, OR LESS THAN 1% ANNUALIZED, COMPARED TO JUNE 30, 2024, AND INCREASED $15.0 MILLION, OR 0.5% ANNUALIZED, FROM DECEMBER 31, 2023. COST OF DEPOSITS AT SEPTEMBER 30, 2024 WAS 2.07% AS COMPARED TO 2.10% AT JUNE 30, 2024.
    • LOAN BALANCES DECLINED BY $27.2 MILLION, OR 2.7% ANNUALIZED, FROM JUNE 30, 2024, WITH DECREASES IN COMMERCIAL, MULTIFAMILY AND RESIDENTIAL REAL ESTATE LOANS OFFSET BY INCREASES IN HOME EQUITY, CONSTRUCTION AND LAND, AND COMMERCIAL AND INDUSTRIAL LOANS.
    • ASSET QUALITY REMAINS STRONG DESPITE AN INCREASE IN NON-PERFORMING LOANS IN THE CURRENT QUARTER. NON-PERFORMING LOANS TO TOTAL LOANS WAS 0.75% AT SEPTEMBER 30, 2024 AND 0.42% AT JUNE 30, 2024.
    • THE COMPANY MAINTAINED STRONG LIQUIDITY WITH APPROXIMATELY $597 MILLION IN UNPLEDGED AVAILABLE-FOR-SALE SECURITIES AND LOANS READILY AVAILABLE-FOR-PLEDGE OF APPROXIMATELY $699 MILLION.
    • THE COMPANY REPURCHASED 560,683 SHARES FOR A COST OF $6.3 MILLION. THERE IS NO REMAINING CAPACITY UNDER THE CURRENT REPURCHASE PROGRAM.
    • CASH DIVIDEND DECLARED OF $0.13 PER SHARE OF COMMON STOCK, PAYABLE ON NOVEMBER 20, 2024, TO STOCKHOLDERS OF RECORD AS OF NOVEMBER 6, 2024.

    WOODBRIDGE, N.J., Oct. 23, 2024 (GLOBE NEWSWIRE) — NORTHFIELD BANCORP, INC. (Nasdaq:NFBK) (the “Company”), the holding company for Northfield Bank, reported net income of $6.5 million, or $0.16 per diluted share for the three months ended September 30, 2024, compared to $6.0 million, or $0.14 per diluted share, for the three months ended June 30, 2024, and $8.2 million, or $0.19 per diluted share, for the three months ended September 30, 2023. For the nine months ended September 30, 2024, net income totaled $18.7 million, or $0.45 per diluted share, compared to $29.4 million, or $0.67 per diluted share, for the nine months ended September 30, 2023. For the nine months ended September 30, 2024, net income reflected $795,000, or $0.02 per share, of additional tax expense related to options that expired in June 2024, and $683,000, or $0.01 per share, of severance expense related to staffing realignments. For the nine months ended September 30, 2023, net income reflected $440,000, or $0.01 per share of severance expense. The decrease in net income for the nine months ended September 30, 2024, compared to the comparable prior year period was primarily the result of a decrease in net interest income, which was negatively impacted by higher funding costs, partially offset by improved interest and non-interest income.

    Commenting on the quarter, Steven M. Klein, the Company’s Chairman, President and Chief Executive Officer stated, “In the third quarter, the Northfield team continued to focus on financial performance, serving the businesses and consumers in our marketplace, and improving upon our operating efficiencies.” Mr. Klein continued, “We delivered solid financial performance for the quarter, increasing our net income, and earnings per share, as we manage our strong capital levels, core deposit and loan relationships, asset quality, and operating expenses. While significant risks remain, the decrease in short-term market interest rates late in the third quarter should provide increased economic activity in our marketplace and opportunities for our Company.”

    Mr. Klein further noted, “I am pleased to announce that the Board of Directors has declared a cash dividend of $0.13 per common share, payable on November 20, 2024 to stockholders of record on November 6, 2024.”

    Results of Operations

    Comparison of Operating Results for the Nine Months Ended September 30, 2024 and 2023

    Net income was $18.7 million and $29.4 million for the nine months ended September 30, 2024 and September 30, 2023, respectively. Significant variances from the comparable prior year period are as follows: a $10.9 million decrease in net interest income, a $1.3 million increase in the provision for credit losses on loans, a $1.5 million increase in non-interest income, a $3.2 million increase in non-interest expense, and a $3.1 million decrease in income tax expense.

    Net interest income for the nine months ended September 30, 2024, decreased $10.9 million, or 11.4%, to $84.8 million, from $95.7 million for the nine months ended September 30, 2023 due to a $34.8 million increase in interest expense, which was partially offset by a $23.9 million increase in interest income. The increase in interest expense was largely driven by the cost of interest-bearing liabilities, which increased by 96 basis points to 2.93% for the nine months ended September 30, 2024, from 1.97% for the nine months ended September 30, 2023, driven primarily by a 114 basis point increase in the cost of interest-bearing deposits from 1.42% to 2.56% for the nine months ended September 30, 2024, and a 31 basis point increase in the cost of borrowings from 3.58% to 3.89% due to rising market interest rates and a shift in the composition of the deposit portfolio towards higher-costing certificates of deposit and a greater reliance on borrowings. The increase in interest expense was also due to a $277.1 million, or 7.0%, increase in the average balance of interest-bearing liabilities, including an increase of $149.8 million in the average balance of borrowed funds and a $127.1 million increase in average interest-bearing deposits. The increase in interest income was primarily due to a $156.1 million, or 2.9%, increase in the average balance of interest-earning assets coupled with a 47 basis point increase in the yield on interest-earning assets, which increased to 4.35% for the nine months ended September 30, 2024, from 3.88% for the nine months ended September 30, 2023, due to the rising rate environment. The increase in the average balance of interest-earning assets was primarily due to increases in the average balance of interest-earning deposits in financial institutions of $111.7 million, the average balance of other securities of $91.6 million, and the average balance of mortgage-backed securities of $88.5 million, partially offset by a decrease in the average balance of loans of $133.4 million.

    Net interest margin decreased by 34 basis points to 2.07% for the nine months ended September 30, 2024, from 2.41% for the nine months ended September 30, 2023. The decrease in net interest margin was primarily due to interest-bearing liabilities repricing at a faster rate than interest-earning assets. The net interest margin was negatively affected by approximately 12 basis points due to a $300 million low risk leverage strategy implemented in the first quarter of 2024. In January 2024, the Company borrowed $300.0 million from the Federal Reserve Bank through the Bank Term Funding Program at favorable terms and conditions and invested the proceeds in interest-bearing deposits in other financial institutions and investment securities. The Company accreted interest income related to purchased credit-deteriorated (“PCD”) loans of $1.1 million for the nine months ended September 30, 2024, as compared to $1.0 million for the nine months ended September 30, 2023. Net interest income for the nine months ended September 30, 2024, included loan prepayment income of $648,000 as compared to $1.3 million for the nine months ended September 30, 2023.

    The provision for credit losses on loans increased by $1.3 million to $2.3 million for the nine months ended September 30, 2024, compared to $1.1 million for the nine months ended September 30, 2023, primarily due to an increase in the specific reserve component of the allowance for credit losses, which was partially offset by a decrease in the general reserve component of the allowance for credit losses. The increase in the specific reserve was related to a single commercial and industrial relationship totaling $12.5 million that experienced credit deterioration and was placed on non-accrual during the current quarter, which has a specific reserve of $1.3 million and incurred a charge-off of $878,000. The decline in the general reserve component of the allowance for credit losses resulted from a decline in loan balances and an improvement in the macroeconomic forecast for the current period within our Current Expected Credit Loss (“CECL”) model, partially offset by an increase in reserves related to changes in model assumptions, including the slowing of prepayment speeds, and an increase in reserves in the commercial and industrial and home equity and lines of credit portfolios related to an increase in non-performing loans in these portfolios and higher loan balances. Net charge-offs were $4.7 million for the nine months ended September 30, 2024, primarily due to $3.9 million in net charge-offs on small business unsecured commercial and industrial loans, as compared to net charge-offs of $5.2 million for the nine months ended September 30, 2023. Management continues to closely monitor the small business unsecured commercial and industrial loan portfolio, which totaled $31.0 million at September 30, 2024.

    Non-interest income increased by $1.5 million, or 18.7%, to $9.8 million for the nine months ended September 30, 2024, compared to $8.3 million for the nine months ended September 30, 2023. The increase was primarily due to increases of $790,000 in fees and service charges for customer services, related to an increase in overdraft fees and service charges on deposit accounts, $260,000 in income on bank owned life insurance, and $874,000 in gains on trading securities, net. Partially offsetting the increases was a $303,000 decrease in other income, primarily due to lower swap fee income. Gains on trading securities in the nine months ended September 30, 2024, were $1.6 million, as compared to $723,000 in the nine months ended September 30, 2023. The trading portfolio is utilized to fund the Company’s deferred compensation obligation to certain employees and directors of the plan. The participants of this plan, at their election, defer a portion of their compensation. Gains and losses on trading securities have no effect on net income since participants benefit from, and bear the full risk of changes in the trading securities market values. Therefore, the Company records an equal and offsetting amount in compensation expense, reflecting the change in the Company’s obligations under the plan.

    Non-interest expense increased $3.2 million, or 5.2%, to $65.7 million for the nine months ended September 30, 2024, compared to $62.5 million for the nine months ended September 30, 2023. The increase was primarily due to a $3.3 million increase in employee compensation and benefits, primarily attributable to higher salary expense, related to annual merit increases and higher medical expense, and an increase of $874,000 in deferred compensation expense, which is described above, and had no effect on net income. Employee compensation and benefits expense also includes severance expense of $683,000 for the nine months ended September 30, 2024, as compared to $440,000 for the nine months ended September 30, 2023. During the second quarter of 2024, due to current economic conditions, the Company implemented a workforce reduction plan which included modest layoffs and staffing realignments. The annual estimated cost savings of this plan is $2.0 million, pre-tax. Partially offsetting the increase was a $461,000 decrease in stock compensation expense related to performance stock awards not expected to vest. Additionally, non-interest expense included a $727,000 increase in credit loss expense/(benefit) for off-balance sheet exposure due to a provision of $337,000 recorded during the nine months ended September 30, 2024, as compared to a benefit of $390,000 for the comparative prior year period. The benefit in the prior year period was attributable to a decrease in the pipeline of loans committed and awaiting closing. Partially offsetting the increases was a $552,000 decrease in advertising expense due to a change in marketing strategy and the timing of specific deposit and lending campaigns.

    The Company recorded income tax expense of $7.9 million for the nine months ended September 30, 2024, compared to $11.0 million for the nine months ended September 30, 2023, with the decrease due to lower taxable income partially offset by a higher effective tax rate. The effective tax rate for the nine months ended September 30, 2024, was 29.7% compared to 27.2% for the nine months ended September 30, 2023. In June 2024, options granted in 2014 expired and resulted in additional tax expense of $795,000, contributing to the higher effective tax rate for the nine months ended September 30, 2024.

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

    Net income was $6.5 million and $8.2 million for the quarters ended September 30, 2024 and September 30, 2023, respectively. Significant variances from the comparable prior year quarter are as follows: a $1.5 million decrease in net interest income, a $2.4 increase in the provision for credit losses on loans, a $1.5 million increase in non-interest income, a $189,000 decrease in non-interest expense, and a $513,000 decrease in income tax expense.

    Net interest income for the quarter ended September 30, 2024, decreased $1.5 million, or 4.9%, to $28.2 million, from $29.7 million for the quarter ended September 30, 2023, due to an $8.0 million increase in interest expense, partially offset by an $6.6 million increase in interest income. The increase in interest expense was largely driven by the impact of rising market interest rates and a $227.0 million, or 5.7%, increase in the average balance of interest-bearing liabilities, including increases of $158.4 million and $68.4 million in the average balance of interest-bearing deposits and borrowed funds, respectively. The increase in interest income was primarily due to a $155.1 million, or 3.0%, increase in the average balance of interest-earning assets coupled with a 38 basis point increase in yields on interest-earning assets due to the rising rate environment. The increase in the average balance of interest-earning assets was due to increases in the average balance of mortgage-backed securities of $240.3 million, the average balance of other securities of $64.0 million, and the average balance of interest-earning deposits in financial institutions of $26.8 million, partially offset by decreases in the average balance of loans outstanding of $172.8 million and the average balance of Federal Home Loan Bank of New York stock of $3.2 million.

    Net interest margin decreased by 17 basis points to 2.08% for the quarter ended September 30, 2024, from 2.25% for the quarter ended September 30, 2023, primarily due to the cost of interest-bearing liabilities increasing faster than the repricing of interest-earning assets. The cost of interest-bearing liabilities increased by 64 basis points to 2.95% for the quarter ended September 30, 2024, from 2.31% for the quarter ended September 30, 2023, driven primarily by a 77 basis point increase in the cost of interest-bearing deposits from 1.82% to 2.59%, and a 30 basis point increase in the cost of borrowings from 3.63% to 3.93%. The increase in the cost of interest-bearing liabilities was partially offset by an increase in the yield on interest-earning assets, which increased by 38 basis points to 4.38% for the quarter ended September 30, 2024, from 4.00% for the quarter ended September 30, 2023. Net interest income for the quarter ended September 30, 2024, included loan prepayment income of $87,000, as compared to $183,000 for the quarter ended September 30, 2023. The Company accreted interest income related to PCD loans of $327,000 for the quarter ended September 30, 2024, as compared to $325,000 for the quarter ended September 30, 2023.

    The provision for credit losses on loans increased by $2.4 million to $2.5 million for the quarter ended September 30, 2024, from a provision of $188,000 for the quarter ended September 30, 2023, primarily due to an increase in the specific reserve component of the allowance for credit losses, which was partially offset by a decrease in the general reserve component of the allowance for credit losses. The increase in the specific reserve was related to a single commercial and industrial relationship that experienced credit deterioration and was placed on non-accrual during the current quarter, which has a specific reserve of $1.3 million and incurred a charge-off of $878,000. The decline in the general reserve component of the allowance for credit losses resulted from a decline in loan balances and an improvement in the macroeconomic forecast for the current period within our CECL model, partially offset by an increase in reserves related to changes in model assumptions, including the slowing of prepayment speeds, and an increase in reserves in the commercial and industrial portfolio related to an increase in non-performing loans and higher loan balances. Net charge-offs were $2.1 million for the quarter ended September 30, 2024, and included $1.4 million in net charge-offs on small business unsecured loans, as compared to net charge-offs of $2.9 million for the quarter ended September 30, 2023.

    Non-interest income increased by $1.5 million, or 68.7%, to $3.6 million for the quarter ended September 30, 2024, from $2.1 million for the quarter ended September 30, 2023, primarily due to a $294,000 increase in fees and service charges, primarily related to higher overdraft fees, a $1.0 million increase in gains on trading securities, net, and a $185,000 increase in other income, primarily due to higher swap fee income. For the quarter ended September 30, 2024, gains on trading securities, net, were $710,000, compared to losses of $295,000 in the quarter ended September 30, 2023. Gains and losses on trading securities have no effect on net income since participants benefit from, and bear the full risk of, changes in the trading securities market values. Therefore, the Company records an equal and offsetting amount in compensation expense, reflecting the change in the Company’s obligations under the Plan.

    Non-interest expense decreased by $189,000, or 0.9%, to $20.4 million for the quarter ended September 30, 2024, from $20.6 million for the quarter ended September 30, 2023. The decrease was primarily due to decreases of $386,000 in occupancy expense, attributable to lower real estate taxes, common area maintenance and electricity costs, $214,000 in data processing costs, attributable to a decrease in ongoing core processing costs related to a prior technology-related contract renewed at favorable terms, and $132,000 in advertising expense. Partially offsetting the decreases was a $504,000 increase in compensation and employee benefits, which included a $1.0 million increase in expense related to the Company’s deferred compensation plan which is described above, and had no effect on net income, that was offset by lower medical expense.

    The Company recorded income tax expense of $2.4 million for the quarter ended September 30, 2024, compared to $2.9 million for the quarter ended September 30, 2023, with the decrease due to lower taxable income. The effective tax rate for the quarter ended September 30, 2024 was 26.6%, compared to 26.0% for the quarter ended September 30, 2023.

    Comparison of Operating Results for the Three Months Ended September 30, 2024 and June 30, 2024

    Net income was $6.5 million and $6.0 million for the quarters ended September 30, 2024, and June 30, 2024, respectively. Significant variances from the prior quarter are as follows: an $458,000 decrease in net interest income, a $3.2 million increase in the provision for credit losses on loans, a $719,000 increase in non-interest income, a $2.6 million decrease in non-interest expense, and an $850,000 decrease in income tax expense.

    Net interest income for the quarter ended September 30, 2024, decreased by $458,000, or 1.6%, primarily due to a $902,000 decrease in interest income, partially offset by a $444,000 decrease in interest expense on deposits and borrowings. The decrease in interest income was primarily due to a $124.4 million decrease in the average balance of interest-earning assets. The decrease in the average balance of interest-earning assets was primarily due to decreases in the average balance of interest-earning deposits in financial institutions of $91.6 million, the average balance of other securities of $60.5 million, and the average balance of loans outstanding of $48.1 million, partially offset by an increase in the average balance of mortgage-backed securities of $76.5 million. The decrease in interest expense on deposits and borrowings was primarily due to a $105.8 million, or 2.5%, decrease in the average balance of interest-bearing liabilities attributable to a $73.2 million decrease in the average balance of interest-bearing deposits and a $32.7 million decrease in the average balance of borrowed funds.

    Net interest margin decreased by one basis point to 2.08% from 2.09% for the quarter ended June 30, 2024, primarily due to a one basis point decrease in yields on interest-earning assets whereas the cost of interest-bearing liabilities remained level. Net interest income for the quarter ended September 30, 2024, included loan prepayment income of $87,000 as compared to $210,000 for the quarter ended June 30, 2024. The Company accreted interest income related to PCD loans of $327,000 for the quarter ended September 30, 2024, as compared to $321,000 for the quarter ended June 30, 2024.

    The provision for credit losses on loans increased by $3.2 million to $2.5 million for the quarter ended September 30, 2024, from a benefit of $618,000 for the quarter ended June 30, 2024. The increase in the provision for the current quarter was primarily due to an increase in the specific reserve component of the allowance for credit losses, attributable to a single commercial and industrial relationship that experienced credit deterioration and was placed on non-accrual during the current quarter, higher reserves related to changes in model assumptions during the current quarter, including the slowing of prepayment speeds and higher net-charge-offs. Net charge-offs were $2.1 million for the quarter ended September 30, 2024, as compared to net charge-offs of $1.6 million for the quarter ended June 30, 2024.

    Non-interest income increased by $719,000, or 25.1%, to $3.6 million for the quarter ended September 30, 2024, from $2.9 million for the quarter ended June 30, 2024. The increase was primarily due to a $522,000 increase in gains on sales of trading securities, net, and a $192,000 increase in other income, primarily due to higher swap fee income. For the quarter ended September 30, 2024, gains on trading securities, net, were $710,000, compared to gains of $188,000 for the quarter ended June 30, 2024.

    Non-interest expense decreased by $2.6 million, or 11.4%, to $20.4 million for the quarter ended September 30, 2024, from $23.0 million for the quarter ended June 30, 2024. The decrease was primarily due to a $2.0 million decrease in compensation and employee benefits, primarily attributable to a decrease in salaries and medical expense due to lower employee headcount, partially offset by a $522,000 increase in expense related to the Company’s deferred compensation plan which had no effect on net income. Also contributing to the decrease were decreases of $192,000 in occupancy expense, $397,000 in data processing costs, attributable to a decrease in ongoing core processing costs resulting from a prior technology-related contract renewed at favorable terms, $200,000 in advertising expense, and $122,000 in other non-interest expense. Partially offsetting the decreases was a $262,000 increase in professional fees, primarily due to an increase in outsourced audit services.

    The Company recorded income tax expense of $2.4 million for the quarter ended September 30, 2024, compared to $3.2 million for the quarter ended June 30, 2024. The effective tax rate for the quarter ended September 30, 2024 was 26.6%, compared to 35.0% for the quarter ended June 30, 2024. During the quarter ended June 30, 2024, options granted in 2014 expired and resulted in additional tax expense of $795,000, contributing to the higher effective tax rate for the quarter ended June 30, 2024.

    Financial Condition

    Total assets increased by $132.5 million, or 2.4%, to $5.73 billion at September 30, 2024, from $5.60 billion at December 31, 2023. The increase was primarily due to increases in available-for-sale debt securities of $268.0 million, or 33.7%, and cash and cash equivalents of $3.4 million, or 1.5%, partially offset by a decrease in loans receivable of $139.7 million, or 3.3%.

    Cash and cash equivalents increased by $3.4 million, or 1.5%, to $232.9 million at September 30, 2024, from $229.5 million at December 31, 2023. Balances fluctuate based on the timing of receipt of security and loan repayments and the redeployment of cash into higher-yielding assets such as loans and securities, or the funding of deposit outflows or borrowing maturities.

    Loans held-for-investment, net, decreased by $139.7 million, or 3.3%, to $4.06 billion at September 30, 2024 from $4.20 billion at December 31, 2023, primarily due to decreases in multifamily, commercial and one-to-four family residential real estate loans, partially offset by increases in home equity and lines of credit, construction and land, and commercial and industrial loans. The decrease in loan balances reflects the Company remaining strategically focused on both managing the concentration of its commercial and multifamily real estate loan portfolios and disciplined loan pricing, as well as lower customer demand in the recent elevated interest rate environment. Multifamily loans decreased $110.1 million, or 4.0%, to $2.64 billion at September 30, 2024 from $2.75 billion at December 31, 2023, commercial real estate loans decreased $51.4 million, or 5.5%, to $878.2 million at September 30, 2024 from $929.6 million at December 31, 2023, one-to-four family residential loans decreased $11.1 million, or 6.9%, to $149.7 million at September 30, 2024 from $160.8 million at December 31, 2023, and other loans decreased $925,000, or 35.8%, to $1.7 million at September 30, 2024 from $2.6 million at December 31, 2023. Partially offsetting these decreases were increases in commercial and industrial loans of $19.1 million, or 12.3%, to $174.4 million at September 30, 2024 from $155.3 million at December 31, 2023, home equity and lines of credit of $8.4 million, or 5.2%, to $171.9 million at September 30, 2024 from $163.5 million at December 31, 2023, and construction and land loans of $2.1 million, or 6.6%, to $33.0 million at September 30, 2024 from $31.0 million at December 31, 2023.

    As of September 30, 2024, non-owner occupied commercial real estate loans (as defined by regulatory guidance) to total risk-based capital was estimated at approximately 447%. Management believes that Northfield Bank (the “Bank”) maintains appropriate risk management practices including risk assessments, board-approved underwriting policies and related procedures, which include monitoring Bank portfolio performance, performing market analysis (economic and real estate), and stressing of the Bank’s commercial real estate portfolio under severe, adverse economic conditions. Although management believes the Bank has implemented appropriate policies and procedures to manage its commercial real estate concentration risk, the Bank’s regulators could require it to implement additional policies and procedures or could require it to maintain higher levels of regulatory capital, which might adversely affect its loan originations, the Company’s ability to pay dividends, and overall profitability.

    Our real estate portfolio includes credit risk exposure to loans collateralized by office buildings and multifamily properties in New York State subject to some form of rent regulation limiting rent increases for rent stabilized multifamily properties. At September 30, 2024, office-related loans represented $183.6 million, or 4.5% of our total loan portfolio, with an average balance of $1.7 million (although we have originated these type of loans in amounts substantially greater than this average) and a weighted average loan-to-value ratio of 59%. Approximately 41% were owner-occupied. The geographic locations of the properties collateralizing our office-related loans are: 50.7% in New York, 47.8% in New Jersey and 1.5% in Pennsylvania. At September 30, 2024, our largest office-related loan had a principal balance of $90.0 million (with a net active principal balance for the Bank of $29.9 million as we have a 33.3% participation interest), was secured by an office facility located in Staten Island, New York, and was performing in accordance with its original contractual terms. At September 30, 2024, multifamily loans that have some form of rent stabilization or rent control totaled approximately $447.5 million, or approximately 11% of our total loan portfolio, with an average balance of $1.7 million (although we have originated these type of loans in amounts substantially greater than this average) and a weighted average loan-to-value ratio of 51%. At September 30, 2024, our largest rent-regulated loan had a principal balance of $16.9 million, was secured by an apartment building located in Staten Island, New York, and was performing in accordance with its original contractual terms. Management continues to closely monitor its office and rent-regulated portfolios. For further details on our rent-regulated multifamily portfolio see “Asset Quality”.

    PCD loans totaled $9.3 million and $9.9 million at September 30, 2024 and December 31, 2023, respectively. The majority of the remaining PCD loan balance consists of loans acquired as part of a Federal Deposit Insurance Corporation-assisted transaction. The Company accreted interest income of $327,000 and $1.1 million attributable to PCD loans for the three and nine months ended September 30, 2024, respectively, as compared to $325,000 and $1.0 million for the three and nine months ended September 30, 2023, respectively. PCD loans had an allowance for credit losses of approximately $2.9 million at September 30, 2024.

    Loan balances are summarized as follows (dollars in thousands):

      September 30, 2024   June 30, 2024   December 31, 2023
    Real estate loans:          
    Multifamily $         2,640,944     $         2,665,202     $         2,750,996  
    Commercial mortgage           878,173               896,157               929,595  
    One-to-four family residential mortgage           149,682               151,948               160,824  
    Home equity and lines of credit           171,946               167,852               163,520  
    Construction and land           33,024               32,607               30,967  
    Total real estate loans           3,873,769               3,913,766               4,035,902  
    Commercial and industrial loans           174,253               165,586               154,984  
    PPP loans           160               202               284  
    Other loans           1,660               2,322               2,585  
    Total commercial and industrial, PPP, and other loans           176,073               168,110               157,853  
    Loans held-for-investment, net (excluding PCD)           4,049,842               4,081,876               4,193,755  
    PCD loans           9,264               9,344               9,899  
    Total loans held-for-investment, net $         4,059,106     $         4,091,220     $         4,203,654  

    The Company’s available-for-sale debt securities portfolio increased by $268.0 million, or 33.7%, to $1.06 billion at September 30, 2024, from $795.5 million at December 31, 2023. The increase was primarily attributable to purchases of securities, partially offset by paydowns, maturities and calls. At September 30, 2024, $869.4 million of the portfolio consisted of residential mortgage-backed securities issued or guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae. In addition, the Company held $74.9 million in U.S. Government agency securities, $118.5 million in corporate bonds, substantially all of which were investment grade, and $684,000 in municipal bonds at September 30, 2024. Unrealized losses, net of tax, on available-for-sale debt securities and held-to-maturity securities approximated $19.6 million and $219,000, respectively, at September 30, 2024, and $32.5 million and $279,000, respectively, at December 31, 2023.

    Equity securities were $10.7 million at September 30, 2024 and $10.6 million at December 31, 2023. Equity securities are primarily comprised of an investment in a Small Business Administration Loan Fund. This investment is utilized by the Bank as part of its Community Reinvestment Act program.

    Total liabilities increased $132.3 million, or 2.7%, to $5.03 billion at September 30, 2024, from $4.90 billion at December 31, 2023. The increase was primarily attributable to an increase in borrowings of $131.6 million, partially offset by a decrease in total deposits of $2.9 million. The Company routinely utilizes brokered deposits and borrowed funds to manage interest rate risk, the cost of interest-bearing liabilities, and funding needs related to loan originations and deposit activity.

    Deposits decreased $2.9 million, or 0.1%, to $3.88 billion at September 30, 2024 as compared to December 31, 2023. Brokered deposits decreased by $17.9 million, or 17.9%, due to maturities that were replaced by borrowings. Deposits, excluding brokered deposits, increased $15.0 million, or 0.4%. The increase in deposits, excluding brokered deposits, was primarily attributable to increases of $80.9 million in time deposits, partially offset by decreases of $14.9 million in transaction accounts, $14.7 million in savings accounts, and $36.3 million in money market accounts. Growth in time deposits was attributable to the current interest rate environment and offering competitive interest rates to attract deposits. Estimated gross uninsured deposits at September 30, 2024 were $1.71 billion. This total includes fully collateralized uninsured governmental deposits and intercompany deposits of $859.3 million, leaving estimated uninsured deposits of approximately $852.2 million, or 22.0%, of total deposits. At December 31, 2023, estimated uninsured deposits totaled $869.9 million, or 22.4% of total deposits.

    Deposit account balances are summarized as follows (dollars in thousands):

      September 30, 2024   June 30, 2024   December 31, 2023
    Transaction:          
    Non-interest bearing checking $         681,741     $         685,574     $         694,903  
    Negotiable orders of withdrawal and interest-bearing checking           1,230,176               1,251,342               1,231,943  
    Total transaction           1,911,917               1,936,916               1,926,846  
    Savings and money market:          
    Savings           911,067               916,598               925,744  
    Money market           265,800               255,550               302,122  
    Brokered money market           —               —               50,000  
    Total savings           1,176,867               1,172,148               1,277,866  
    Certificates of deposit:          
    $250,000 and under           585,606               568,809               525,454  
    Over $250,000           119,033               120,601               98,269  
    Brokered           82,146               —               50,000  
    Total certificates of deposit           786,785               689,410               673,723  
    Total deposits $         3,875,569     $         3,798,474     $         3,878,435  

    Included in the table above are business and municipal deposit account balances as follows (dollars in thousands):

      September 30, 2024   June 30, 2024   December 31, 2023
               
    Business customers $         869,990     $         866,403     $         893,296  
    Municipal (governmental) customers $         799,249     $         815,086     $         768,556  

    Borrowed funds increased to $1.05 billion at September 30, 2024, from $920.5 million at December 31, 2023. The increase in borrowings for the period was primarily due to a $205.5 million increase in borrowings under the Federal Reserve Bank Term Funding Program, which included favorable terms and conditions as compared to FHLB advances. Management utilizes borrowings to mitigate interest rate risk, for short-term liquidity, and to a lesser extent from time to time, as part of leverage strategies.

    The following table sets forth borrowing maturities (excluding overnight borrowings and subordinated debt) and the weighted average rate by year at September 30, 2024 (dollars in thousands):

    Year   Amount (1)   Weighted Average Rate
    2024   $25,000   4.71%
    2025   483,184   4.00%
    2026   148,000   4.36%
    2027   173,000   3.19%
    2028   154,288   3.96%
        $983,472   3.92%
             
    __________________________________________________
    (1) Borrowings maturing in 2025 include $300.0 million of FRB borrowings that can be repaid without any penalty.

    Total stockholders’ equity increased by $119,000 to $699.6 million at September 30, 2024, from $699.4 million at December 31, 2023. The increase was attributable to net income of $18.7 million for the nine months ended September 30, 2024, a $14.1 million increase in accumulated other comprehensive income, associated with an increase in the estimated fair value of our debt securities available-for-sale portfolio due to the increase in market interest rates, and a $1.9 million increase in equity award activity, partially offset by $18.1 million in stock repurchases and $16.5 million in dividend payments. On April 24, 2024, the Board of Directors of the Company approved a $5.0 million stock repurchase program, which was completed in May 2024, and on June 14, 2024, the Board of Directors of the Company approved a $10.0 million stock repurchase program. During the nine months ended September 30, 2024, the Company repurchased 1.8 million of its common stock outstanding at an average price of $10.03 for a total of $18.1 million pursuant to the approved stock repurchase programs. As of September 30, 2024, the Company had no remaining capacity under its current repurchase program.

    The Company’s most liquid assets are cash and cash equivalents, corporate bonds, and unpledged mortgage-related securities issued or guaranteed by the U.S. Government, Fannie Mae, or Freddie Mac, that we can either borrow against or sell. We also have the ability to surrender bank-owned life insurance contracts. The surrender of these contracts would subject the Company to income taxes and penalties for increases in the cash surrender values over the original premium payments. We also have the ability to obtain additional funding from the FHLB and Federal Reserve Bank of New York utilizing unencumbered and unpledged securities and multifamily loans. The Company expects to have sufficient funds available to meet current commitments in the normal course of business. The Company’s on-hand liquidity ratio as of September 30, 2024 was 16.4%.

    The Company had the following primary sources of liquidity at September 30, 2024 (dollars in thousands): 

    Cash and cash equivalents(1) $ 218,733
    Corporate bonds(2) $ 104,633
    Multifamily loans(2) $ 699,343
    Mortgage-backed securities (issued or guaranteed by the U.S. Government, Fannie Mae, or Freddie Mac)(2) $ 491,985
       
    __________________________________________________
    (1) Excludes $14.2 million of cash at Northfield Bank.
    (2) Represents estimated remaining borrowing potential.

    The Company and the Bank utilize the Community Bank Leverage Ratio (“CBLR”) framework. The CBLR replaces the risk-based and leverage capital requirements in the generally applicable capital rules. At September 30, 2024, the Company and the Bank’s estimated CBLR ratios were 12.03% and 12.26%, respectively, which exceeded the minimum requirement to be considered well-capitalized of 9%.

    Asset Quality

    The following table details total non-accrual loans (excluding PCD), non-performing assets, loans over 90 days delinquent on which interest is accruing, and accruing loans 30 to 89 days delinquent at September 30, 2024, June 30, 2024, and December 31, 2023 (dollars in thousands):

      September 30, 2024   June 30, 2024   December 31, 2023
    Non-accrual loans:          
    Held-for-investment          
    Real estate loans:          
    Multifamily $         2,651       $         2,691       $         2,709    
    Commercial           8,823                 10,244                 6,491    
    One-to-four family residential           66                 69                 104    
    Home equity and lines of credit           1,123                 1,124                 499    
    Commercial and industrial           15,117                 2,570                 305    
    Other           6                 6                 7    
    Total non-accrual loans           27,786                 16,704                 10,115    
    Loans delinquent 90 days or more and still accruing:          
    Held-for-investment          
    Real estate loans:          
    Multifamily           —                 —                 201    
    Commercial           1,161                 —                 —    
    One-to-four family residential           304                 136                 406    
    Home equity and lines of credit           343                 467                 711    
    Commercial and industrial           835                 —                 —    
    Total loans held-for-investment delinquent 90 days or more and still accruing           2,643                 603                 1,318    
    Total non-performing loans/assets $         30,429       $         17,307       $         11,433    
    Non-performing loans to total loans           0.75   %             0.42   %             0.27   %
    Non-performing assets to total assets           0.53   %             0.30   %             0.20   %
    Accruing loans 30 to 89 days delinquent $         16,057       $         6,265       $         8,683    

    The Company’s non-performing loans at September 30, 2024 totaled $30.4 million, or 0.75%, of total loans as compared to $11.4 million, or 0.27%, at December 31, 2023. The $19.0 million increase in non-performing loans was primarily attributable to an increase in non-performing commercial and industrial loans of $15.6 million and an increase of $3.5 million in non-performing commercial real estate loans. One commercial and industrial relationship with an outstanding balance of $12.5 million at September 30, 2024, experienced credit deterioration and was placed on non-accrual status during the third quarter of 2024. The loan is currently in the process of being restructured and we expect to receive a partial payment of $10.0 million on or before October 31, 2024, with the remaining $2.5 million to be repaid over three years. The loan was individually evaluated for impairment, we charged off $878,000 and provided a specific reserve of $1.3 million. Additionally, management evaluated the collateral from the Company and assets subject to personal guarantees and, based on current estimates, believes there is adequate collateral and assets to support the current value of the loan absent the expected repayment of $10.0 million. Another commercial and industrial relationship with an outstanding balance of $750,000 is in the process of maturity extension. Additionally, there was an increase in non-performing unsecured small business loans. Unsecured small business loans totaled $31.0 million and $37.4 million at September 30, 2024 and December 31, 2023, respectively. Management continues to closely monitor the small business unsecured commercial and industrial loan portfolio.

    The increase in non-performing commercial real estate loans was primarily attributable to one loan with a balance of $4.4 million, which was put on non-accrual status during the first quarter of 2024. Based on the results of the impairment analysis for this loan, no impairment reserve was necessary as the loan is adequately covered by collateral (a private residence and retail property, both located in New Jersey), with aggregate appraised values totaling $8.7 million.

    Accruing Loans 30 to 89 Days Delinquent

    Loans 30 to 89 days delinquent and on accrual status totaled $16.1 million, $6.3 million and $8.7 million at September 30, 2024, June 30, 2024, and December 31, 2023, respectively. The following table sets forth delinquencies for accruing loans by type and by amount at September 30, 2024, June 30, 2024, and December 31, 2023 (dollars in thousands):
      

      September 30, 2024   June 30, 2024   December 31, 2023
    Held-for-investment          
    Real estate loans:          
    Multifamily $         2,259     $         168     $         740  
    Commercial           5,689               1,557               1,010  
    One-to-four family residential           2,286               1,769               3,339  
    Home equity and lines of credit           1,369               786               817  
    Commercial and industrial loans           4,450               1,977               2,767  
    Other loans           4               8               10  
    Total delinquent accruing loans held-for-investment $         16,057     $         6,265     $         8,683  

    The increase in multifamily delinquent loans was primarily due to two relationships totaling $1.5 million that became current subsequent to September 30, 2024. The increase in commercial real estate delinquent loans was primarily due to two participation loans totaling $5.6 million that matured, and the lead bank is in the process of extending their maturity and should become current in the fourth quarter of 2024. The increase in commercial and industrial delinquent loans from December 31, 2023, was primarily due to two loans to one borrower totaling $1.5 million which we expect to become current in the fourth quarter of 2024, and, to a lesser extent, an increase in delinquencies in unsecured small business loans.

    Subsequent to the quarter end, $1.1 million of home equity and lines of credit loans, $1.5 million of one-to-four family residential loans, and $1.5 million of commercial and industrial loans became current.

    PCD Loans (Held-for-Investment)

    The Company accounts for PCD loans at estimated fair value using discounted expected future cash flows deemed to be collectible on the date acquired. Based on its detailed review of PCD loans and experience in loan workouts, management believes it has a reasonable expectation about the amount and timing of future cash flows and accordingly has classified PCD loans ($9.3 million at September 30, 2024 and $9.9 million at December 31, 2023, respectively) as accruing, even though they may be contractually past due. At September 30, 2024, 2.1% of PCD loans were past due 30 to 89 days, and 24.6% were past due 90 days or more, as compared to 2.9% and 27.1%, respectively, at December 31, 2023.

    Our multifamily loan portfolio at September 30, 2024 totaled $2.64 billion, or 65% of our total loan portfolio, of which $447.5 million, or 11%, included loans collateralized by properties in New York with units subject to some percentage of rent regulation. The table below sets forth details about our multifamily loan portfolio in New York (dollars in thousands).

    % Rent Regulated   Balance   % Portfolio Total NY Multifamily Portfolio   Average Balance   Largest Loan   LTV*   Debt Service Coverage Ratio (DSCR)*   30-89 Days Delinquent   Non-Accrual   Special Mention   Substandard
    0   $         286,728             39.1   %   $         1,166     $         16,603     51.0%   1.57x   $         1,709     $         534     $         782     $         874  
    >0-10             4,745             0.7                 1,582               2,128     51.4   1.46             —               —               —               —  
    >10-20             18,681             2.5                 1,437               2,865     49.2   1.59             —               —               —               —  
    >20-30             19,585             2.7                 2,176               5,512     54.1   1.64             —               —               —               —  
    >30-40             15,183             2.1                 1,265               3,088     48.3   1.63             —               —               —               —  
    >40-50             22,208             3.0                 1,306               2,740     48.2   1.84             —               —               —               —  
    >50-60             9,452             1.3                 1,575               2,341     39.9   2.03             —               —               —               —  
    >60-70             19,201             2.6                 3,200               11,339     53.0   1.46             —               —               —               —  
    >70-80             22,405             3.1                 2,489               4,914     48.0   1.53             —               —               —               —  
    >80-90             20,820             2.8                 1,157               3,148     46.6   1.71             —               —               —               —  
    >90-100             295,256             40.1                 1,779               16,909     52.6   1.65             —               2,117               1,204               4,482  
    Total   $         734,264     100.0   %   $         1,454     $         16,909     51.2%   1.62x   $         1,709     $         2,651     $         1,986     $         5,356  

    The table below sets forth our New York rent-regulated loans by county (dollars in thousands).

    County   Balance   LTV*   DSCR*
    Bronx   $         118,400     51.7%   1.64x
    Kings             191,745     51.5%   1.66
    Nassau             2,176     36.2%   1.88
    New York             49,871     47.3%   1.64
    Queens             38,864     44.3%   1.81
    Richmond             28,790     60.6%   1.64
    Westchester             17,689     61.8%   1.37
    Total   $         447,535     51.4%   1.65x
                 
    * Weighted Average

    None of the loans that are rent-regulated in New York are interest only. During the remainder of 2024, one loan with an aggregate principal balance of $1.8 million will re-price.

    About Northfield Bank

    Northfield Bank, founded in 1887, operates 38 full-service banking offices in Staten Island and Brooklyn, New York, and Hunterdon, Middlesex, Mercer, and Union counties, New Jersey. For more information about Northfield Bank, please visit www.eNorthfield.com.

    Forward-Looking Statements: This release may contain certain “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and may be identified by the use of such words as “may,” “believe,” “expect,” “anticipate,” “should,” “plan,” “estimate,” “predict,” “continue,” and “potential” or the negative of these terms or other comparable terminology. Examples of forward-looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of Northfield Bancorp, Inc. Any or all of the forward-looking statements in this release and in any other public statements made by Northfield Bancorp, Inc. may turn out to be wrong. They can be affected by inaccurate assumptions Northfield Bancorp, Inc. might make or by known or unknown risks and uncertainties as described in our SEC filings, including, but not limited to, those related to general economic conditions, particularly in the market areas in which the Company operates, changes in liquidity, the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio, competition among depository and other financial institutions, including with respect to fees and interest rates, changes in laws or government regulations or policies affecting financial institutions, including changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, changes in asset quality, prepayment speeds, charge-offs and/or credit loss provisions, our ability to access cost-effective funding, changes in the value of our goodwill or other intangible assets, changes in regulatory fees, assessments and capital requirements, inflation and changes in the interest rate environment that reduce our margins, reduce the fair value of financial instruments or reduce our ability to originate loans, cyber security and fraud risks against our information technology and those of our third-party providers and vendors, the effects of war, conflict, and acts of terrorism, our ability to successfully integrate acquired entities, adverse changes in the securities markets, and the effects of the COVID-19 pandemic. Consequently, no forward-looking statement can be guaranteed. Northfield Bancorp, Inc. does not intend to update any of the forward-looking statements after the date of this release, or conform these statements to actual events.

     
    (Tables follow)
     
    NORTHFIELD BANCORP, INC.
    SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA
    (Dollars in thousands, except per share amounts) (unaudited)
                   
                  At or For the
      At or For the Three Months Ended   Nine Months Ended
      September 30,   June 30   September 30,
      2024   2023   2024   2024   2023
    Selected Financial Ratios:                  
    Performance Ratios (1)                  
    Return on assets (ratio of net income to average total assets)         0.46   %           0.59   %           0.41   %           0.43   %           0.71   %
    Return on equity (ratio of net income to average equity)         3.74               4.74               3.45               3.59               5.69    
    Average equity to average total assets         12.24               12.49               12.00               12.09               12.44    
    Interest rate spread         1.42               1.69               1.44               1.42               1.91    
    Net interest margin         2.08               2.25               2.09               2.07               2.41    
    Efficiency ratio (2)         64.07               64.65               72.89               69.44               60.06    
    Non-interest expense to average total assets         1.43               1.49               1.60               1.53               1.50    
    Non-interest expense to average total interest-earning assets         1.50               1.56               1.68               1.60               1.57    
    Average interest-earning assets to average interest-bearing liabilities         128.75               132.21               128.47               128.63               133.66    
    Asset Quality Ratios:                  
    Non-performing assets to total assets         0.53               0.19               0.30               0.53               0.19    
    Non-performing loans (3) to total loans (4)         0.75               0.24               0.42               0.75               0.24    
    Allowance for credit losses to non-performing loans         115.67               378.67               200.96               115.67               378.67    
    Allowance for credit losses to total loans held-for-investment, net (5)         0.87               0.91               0.85               0.87               0.91    
    (1) Annualized where appropriate.
    (2) The efficiency ratio represents non-interest expense divided by the sum of net interest income and non-interest income.
    (3) Non-performing loans consist of non-accruing loans and loans 90 days or more past due and still accruing (excluding PCD loans), and are included in total loans held-for-investment, net.
    (4) Includes originated loans held-for-investment, PCD loans, acquired loans and loans held-for-sale.
    (5) Includes originated loans held-for-investment, PCD loans, and acquired loans.
     
    NORTHFIELD BANCORP, INC.
    CONSOLIDATED BALANCE SHEETS
    (Dollars in thousands, except share and per share amounts) (unaudited)
     
      September 30, 2024   June 30, 2024   December 31, 2023
    ASSETS:          
    Cash and due from banks $         14,193     $         14,575     $         13,889  
    Interest-bearing deposits in other financial institutions           218,733               138,914               215,617  
    Total cash and cash equivalents           232,926               153,489               229,506  
    Trading securities           13,759               12,939               12,549  
    Debt securities available-for-sale, at estimated fair value           1,063,486               1,119,439               795,464  
    Debt securities held-to-maturity, at amortized cost           9,681               9,749               9,866  
    Equity securities           10,699               13,964               10,629  
    Loans held-for-sale           4,897               —               —  
    Loans held-for-investment, net           4,059,106               4,091,220               4,203,654  
    Allowance for credit losses           (35,197 )             (34,780 )             (37,535 )
    Net loans held-for-investment           4,023,909               4,056,440               4,166,119  
    Accrued interest receivable           19,299               19,343               18,491  
    Bank-owned life insurance           174,482               173,483               171,543  
    Federal Home Loan Bank of New York stock, at cost           37,269               41,785               39,667  
    Operating lease right-of-use assets           28,943               29,305               30,202  
    Premises and equipment, net           22,973               23,628               24,771  
    Goodwill           41,012               41,012               41,012  
    Other assets           47,516               51,785               48,577  
    Total assets $         5,730,851     $         5,746,361     $         5,598,396  
               
    LIABILITIES AND STOCKHOLDERS’ EQUITY:          
    LIABILITIES:          
    Deposits $         3,875,569     $         3,798,474     $         3,878,435  
    Securities sold under agreements to repurchase           —               —               25,000  
    Federal Home Loan Bank advances and other borrowings           990,871               1,089,727               834,272  
    Subordinated debentures, net of issuance costs           61,386               61,331               61,219  
    Lease liabilities           33,529               34,035               35,205  
    Advance payments by borrowers for taxes and insurance           22,492               26,113               25,102  
    Accrued expenses and other liabilities           47,440               43,657               39,718  
    Total liabilities           5,031,287               5,053,337               4,898,951  
               
    STOCKHOLDERS’ EQUITY:          
    Total stockholders’ equity           699,564               693,024               699,445  
    Total liabilities and stockholders’ equity $         5,730,851     $         5,746,361     $         5,598,396  
               
    Total shares outstanding           42,904,342               43,466,961               44,524,929  
    Tangible book value per share (1) $         15.35     $         15.00     $         14.78  
    (1) Tangible book value per share is calculated based on total stockholders’ equity, excluding intangible assets (goodwill and core deposit intangibles), divided by total shares outstanding as of the balance sheet date. Core deposit intangibles were $90, $111, and $154 at September 30, 2024, June 30, 2024, and December 31, 2023, respectively, and are included in other assets.
     
    NORTHFIELD BANCORP, INC.
    CONSOLIDATED STATEMENTS OF INCOME
    (Dollars in thousands, except share and per share amounts) (unaudited)
     
      For the Three Months Ended   For the Nine Months Ended
      September 30,   June 30,   September 30,
        2024       2023       2024       2024       2023  
    Interest income:                  
    Loans $         46,016     $         46,213     $         45,967     $         138,030     $         135,220  
    Mortgage-backed securities           8,493               3,664               7,355               20,246               11,170  
    Other securities           2,684               1,095               3,506               10,031               3,593  
    Federal Home Loan Bank of New York dividends           914               933               935               2,819               2,125  
    Deposits in other financial institutions           1,211               831               2,457               7,060               2,225  
    Total interest income           59,318               52,736               60,220               178,186               154,333  
    Interest expense:                  
    Deposits           20,304               13,614               20,664               60,241               31,918  
    Borrowings           9,949               8,593               10,041               30,653               24,182  
    Subordinated debt           836               837               828               2,492               2,484  
    Total interest expense           31,089               23,044               31,533               93,386               58,584  
    Net interest income           28,229               29,692               28,687               84,800               95,749  
    Provision/(benefit) for credit losses           2,542               188               (618 )             2,339               1,082  
    Net interest income after (benefit)/provision for credit losses           25,687               29,504               29,305               82,461               94,667  
    Non-interest income:                  
    Fees and service charges for customer services           1,611               1,317               1,570               4,796               4,006  
    Income on bank-owned life insurance           999               920               976               2,939               2,679  
    (Losses)/gains on available-for-sale debt securities, net           (7 )             —               1               (6 )             (17 )
    Gains/(losses) on trading securities, net           710               (295 )             188               1,597               723  
    Gain on sale of loans           —               99               51               51               134  
    Other           265               80               73               441               744  
    Total non-interest income           3,578               2,121               2,859               9,818               8,269  
    Non-interest expense:                  
    Compensation and employee benefits           11,424               10,920               13,388               37,577               34,310  
    Occupancy           3,030               3,416               3,222               9,805               10,032  
    Furniture and equipment           450               479               477               1,411               1,393  
    Data processing           1,780               1,994               2,177               6,104               6,308  
    Professional fees           943               883               681               2,433               2,622  
    Advertising           282               414               482               1,282               1,834  
    Federal Deposit Insurance Corporation insurance           626               591               649               1,863               1,763  
    Credit loss expense/(benefit) for off-balance sheet exposures           151               160               103               337               (390 )
    Other           1,692               1,710               1,814               4,891               4,598  
    Total non-interest expense           20,378               20,567               22,993               65,703               62,470  
    Income before income tax expense           8,887               11,058               9,171               26,576               40,466  
    Income tax expense           2,364               2,877               3,214               7,882               11,019  
    Net income $         6,523     $         8,181     $         5,957     $         18,694     $         29,447  
    Net income per common share:                  
    Basic $         0.16     $         0.19     $         0.14     $         0.45     $         0.67  
    Diluted $         0.16     $         0.19     $         0.14     $         0.45     $         0.67  
    Basic average shares outstanding           41,028,213               42,866,246               41,999,541               41,794,149               43,848,873  
    Diluted average shares outstanding           41,088,637               42,918,174               42,002,650               41,829,230               43,927,350  
     
    NORTHFIELD BANCORP, INC.
    ANALYSIS OF NET INTEREST INCOME
    (Dollars in thousands) (unaudited)
     
      For the Three Months Ended
      September 30, 2024   June 30, 2024   September 30, 2023
      Average Outstanding Balance   Interest   Average Yield/ Rate (1)   Average Outstanding Balance   Interest   Average Yield/ Rate (1)   Average Outstanding Balance   Interest   Average Yield/ Rate (1)
    Interest-earning assets:                                  
    Loans (2) $         4,079,974     $         46,016             4.49   %   $         4,128,105     $         45,967             4.48   %   $         4,252,752     $         46,213             4.31   %
    Mortgage-backed securities (3)           901,042               8,493             3.75                 824,498               7,355             3.59                 660,753               3,664             2.20    
    Other securities (3)           273,312               2,684             3.91                 333,855               3,506             4.22                 209,341               1,095             2.08    
    Federal Home Loan Bank of New York stock           38,044               914             9.56                 38,707               935             9.72                 41,278               933             8.97    
    Interest-earning deposits in financial institutions           99,837               1,211             4.83                 191,470               2,457             5.16                 73,005               831             4.52    
    Total interest-earning assets           5,392,209               59,318             4.38                 5,516,635               60,220             4.39                 5,237,129               52,736             4.00    
    Non-interest-earning assets           275,342                       265,702                       248,315          
    Total assets $         5,667,551             $         5,782,337             $         5,485,444          
                                       
    Interest-bearing liabilities:                                  
    Savings, NOW, and money market accounts $         2,417,725     $         12,717             2.09   %   $         2,490,372     $         13,183             2.13   %   $         2,408,218     $         8,865             1.46   %
    Certificates of deposit           700,763               7,587             4.31                 701,272               7,481             4.29                 551,904               4,749             3.41    
    Total interest-bearing deposits           3,118,488               20,304             2.59                 3,191,644               20,664             2.60                 2,960,122               13,614             1.82    
    Borrowed funds           1,008,338               9,949             3.93                 1,041,035               10,041             3.88                 939,922               8,593             3.63    
    Subordinated debt           61,350               836             5.42                 61,294               828             5.43                 61,127               837             5.43    
    Total interest-bearing liabilities           4,188,176               31,089             2.95                 4,293,973               31,533             2.95                 3,961,171               23,044             2.31    
    Non-interest bearing deposits           683,283                       691,384                       739,266          
    Accrued expenses and other liabilities           102,233                       103,082                       100,103          
    Total liabilities           4,973,692                       5,088,439                       4,800,540          
    Stockholders’ equity           693,859                       693,898                       684,904          
    Total liabilities and stockholders’ equity $         5,667,551             $         5,782,337             $         5,485,444          
                                       
    Net interest income     $         28,229             $         28,687             $         29,692      
    Net interest rate spread (4)                 1.42   %                   1.44   %                   1.69   %
    Net interest-earning assets (5) $         1,204,033             $         1,222,662             $         1,275,958          
    Net interest margin (6)                 2.08   %                   2.09   %                   2.25   %
    Average interest-earning assets to interest-bearing liabilities                 128.75   %                   128.47   %                   132.21   %
    (1) Average yields and rates are annualized.
    (2) Includes non-accruing loans.
    (3) Securities available-for-sale and other securities are reported at amortized cost.
    (4) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
    (5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
    (6) Net interest margin represents net interest income divided by average total interest-earning assets.
       
      For the Nine Months Ended
      September 30, 2024   September 30, 2023
      Average Outstanding Balance   Interest   Average Yield/ Rate (1)   Average Outstanding Balance   Interest   Average Yield/ Rate (1)
    Interest-earning assets:                      
    Loans (2) $         4,127,409     $         138,030             4.47   %   $         4,260,827     $         135,220             4.24   %
    Mortgage-backed securities (3)           791,850               20,246             3.42                 703,320               11,170             2.12    
    Other securities (3)           332,831               10,031             4.03                 241,280               3,593             1.99    
    Federal Home Loan Bank of New York stock           38,781               2,819             9.71                 41,093               2,125             6.91    
    Interest-earning deposits in financial institutions           184,420               7,060             5.11                 72,683               2,225             4.09    
    Total interest-earning assets           5,475,291               178,186             4.35                 5,319,203               154,333             3.88    
    Non-interest-earning assets           269,180                       244,319          
    Total assets $         5,744,471             $         5,563,522          
                           
    Interest-bearing liabilities:                      
    Savings, NOW, and money market accounts $         2,457,320     $         38,231             2.08   %   $         2,443,400     $         19,194             1.05   %
    Certificates of deposit           685,510               22,010             4.29                 572,283               12,724             2.97    
    Total interest-bearing deposits           3,142,830               60,241             2.56                 3,015,683               31,918             1.42    
    Borrowed funds           1,052,589               30,653             3.89                 902,802               24,182             3.58    
    Subordinated debt           61,294               2,492             5.43                 61,164               2,484             5.43    
    Total interest-bearing liabilities $         4,256,713               93,386             2.93       $         3,979,649               58,584             1.97    
    Non-interest bearing deposits           691,406                       788,991          
    Accrued expenses and other liabilities           101,639                       102,765          
    Total liabilities           5,049,758                       4,871,405          
    Stockholders’ equity           694,713                       692,117          
    Total liabilities and stockholders’ equity $         5,744,471             $         5,563,522          
                           
    Net interest income     $         84,800             $         95,749      
    Net interest rate spread (4)                 1.42   %                   1.91   %
    Net interest-earning assets (5) $         1,218,578             $         1,339,554          
    Net interest margin (6)                 2.07   %                   2.41   %
    Average interest-earning assets to interest-bearing liabilities                 128.63   %                   133.66   %
    (1) Average yields and rates are annualized. 
    (2) Includes non-accruing loans. 
    (3) Securities available-for-sale and other securities are reported at amortized cost.
    (4) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
    (5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
    (6) Net interest margin represents net interest income divided by average total interest-earning assets.

    Company Contact:
    William R. Jacobs
    Chief Financial Officer
    Tel: (732) 499-7200 ext. 2519

    The MIL Network –

  • MIL-Evening Report: Indonesia to offer ‘amnesty’ for West Papuans contesting Jakarta’s rule

    The National, PNG

    Indonesia will offer amnesty to West Papuans who have contested Jakarta’s sovereignty over the Melanesian region resulting in conflicts and clashes with law enforcement agencies, says Papua New Guinea’s Prime Minister James Marape.

    He arrived in Port Moresby on Monday night from Indonesia where he attended the inauguration of President Prabowo Subianto last Sunday.

    During his bilateral discussions with the Indonesian President, Marape said Prabowo was “quite frank and open” about the West Papua independence issue.

    “This is the first time for me to see openness on West Papua and while it is an Indonesian sovereignty matter, my advice was to give respect to land and their [West Papuans] cultural heritage.

    “I commend the offer on amnesty and Papua New Guinea will continue to respect Indonesia’s sovereignty,” Marape said.

    “The President also offered a pledge for higher autonomy and a commitment to keep on working on the need for more economic activities and development that the former president [Joko Widodo] has started for West Papua.”

    While emphasising that Papua New Guinea had no right to debate Indonesia’s internal sovereignty issues, Marape welcomed that country’s recognition of the West Papuan people, their culture and heritage.

    Expanding trade, investment
    Marape also reaffirmed his intention to work with Prabowo in expanding trade and investment, especially in business-to-business and people-to-people relations with Indonesia.

    The exponential growth of Indonesia’s economy currently sits at nearly US$1.5 trillion (about K5 trillion), with the country aggressively pushing toward First World nation status by 2045.

    Papua New Guinea was among nations allocated time for a bilateral meeting with President Subianto after the inauguration.

    Republished from The National with permission.

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI USA: Kennedy urges Blinken to secure Indo-Pacific naval base from Chinese threat after U.K. reaches Chagos Archipelago sovereignty deal

    US Senate News:

    Source: United States Senator John Kennedy (Louisiana)
    View Kennedy’s remarks here. 
    MADISONVILLE, La. – Sen. John Kennedy (R-La.) today released this statement and sent a letter to U.S. Secretary of State Antony Blinken raising national security concerns over China’s growing influence in the Indo-Pacific region, and specifically the threat to the Chagos Archipelago, where a key U.S. Navy support facility currently operates on the island of Diego Garcia. 
    Earlier this month, the United Kingdom reached a deal to transfer sovereignty of the Chagos Archipelago to Mauritius while allowing the U.S. Navy’s Diego Garcia facility to operate for the next 99 years. 
    “As you know, the Chagos Archipelago, specifically Diego Garcia, is of particular strategic significance to U.S. national security and our ability to maintain stability and project power in the region. The decision to give up the islands is dangerous and irresponsible, especially in the face of China’s increasing aggression,” Kennedy wrote. 
    “The presence of the U.S. military on Diego Garcia is a vital component of our defense posture in the Indo-Pacific. With the transfer of control to Mauritius, I am concerned about our ability to maintain the integrity of our operations in the region. Chinese ambitions, particularly their strategic interest in expanding influence over critical maritime chokepoints and naval installations, present a clear and present threat to regional stability. We are all but guaranteed to see an increase in nefarious Chinese behavior around Diego Garcia following what has become a familiar playbook—Chinese fishing boats conducting surveillance, and debt trap diplomacy to ensure Chinese control of critical infrastructure,” he continued.
    “Given the evolving geopolitical landscape, America must act proactively to secure this region from external influences that could jeopardize a free and open Indo-Pacific,” Kennedy concluded.
    Kennedy’s full statement is available here. 
    The full letter is available here. 

    MIL OSI USA News –

  • MIL-OSI USA: Rubio, Risch on Biden-Harris Continued Appeasement of Iranian Regime

    US Senate News:

    Source: United States Senator for Florida Marco Rubio

    Rubio, Risch on Biden-Harris Continued Appeasement of Iranian Regime
    Oct 23, 2024 | Press Releases

    Earlier this year, the Stop Harboring Iranian Petroleum Act (SHIP) was successfully signed into law. However, the Biden-Harris Administration has failed to meet the deadlines to impose sanctions on the corresponding entities with no indication that this administration will fully implement the law. Rather, the administration appears set on continuing to appease the Iranian regime as it continues to enrich its coffers from the Chinese Communist Party. 
    U.S. Senators Marco Rubio (R-FL) and Jim Risch (R-ID) released a joint statement regarding the administration’s negligence on the matter.
    “While Iran continues to fuel terror from the sales of illicit oil, which mostly benefit Beijing, the Biden-Harris Administration has failed to fully implement the Stop Harboring Iranian Petroleum (SHIP) Act. The State Department may highlight its commitment to enforcing this law, but this administration’s failure to impose sanctions against individuals and entities tied to Communist China’s purchase of Iranian oil is deeply disturbing. On October 7, 2023, the world witnessed Tehran’s evil nature and the U.S. must do everything in our power to cripple Iran’s vital sources of revenue.”  
    Flashback… In September 2024, Rubio and colleagues sent a letter to President Biden regarding his administration’s failure to enforce the law.

    MIL OSI USA News –

  • MIL-OSI USA: Ernst Blasts Biden-Harris for More Effectively Arming Our Adversaries Than Allies

    US Senate News:

    Source: United States Senator Joni Ernst (R-IA)

    WASHINGTON – After the Biden-Harris administration delivered expired and moldy military aid to Taiwan, U.S. Senator Joni Ernst (R-Iowa), a member of the Senate Armed Services Committee, blasted Secretary of Defense Lloyd Austin and the White House for once again undercutting a key partner and undermining American leadership.
    This latest embarrassing episode of incompetence comes as Joe Biden and Kamala Harris’ weakness on the world stage has lit the world on fire and fueled Chinese aggression in the South China Sea and beyond.
    “This embarrassing debacle highlights shortcomings in the Biden-Harris administration’s counter-China strategy, undermining our relationship with a key regional partner, weakening deterrence against China, and wasting hundreds of thousands of taxpayer dollars. Last month the Department of Defense Inspector General (IG) published a report highlighting the significant failures in the oversight, planning, and execution of the presidential drawdown authority (PDA) process. These failures are particularly alarming, not only because of Taiwan’s critical role as a key security partner but also because they could impact the confidence of other U.S. allies and partners that rely on timely and reliable defense support,” wrote Ernst, a combat veteran.
    “The Department of Defense failed to follow established guidelines for delivering military assistance to Taiwan. More than 67% of the equipment — including over 340 pallets — sustained water damage while stored at Travis Air Force Base for three months due to inadequate storage facilities. This resulted in the shipment of over 3,000 moldy body armor plates and 500 wet tactical vests, equipment that is essential for the safety of Taiwanese personnel. Additionally, the report indicates that 2.7 million rounds of ammunition provided to Taiwan included expired stock and packaging errors, further raising concerns about quality control,” Ernst continued. 
    Click here to read the full letter.
    Background:
    Senator Ernst has exposed and held this administration accountable for repeatedly treating our adversaries better than our friends.
    In August 2024, Senator Ernst blasted the White House for sending $293 million to the Taliban and updated her TRACKS Act to track and publicly disclose any tax dollars the Pentagon sends to the Taliban or any other foreign adversary.
    In September 2024, she called out Joe Biden and Kamala Harris for underfunding veterans by $15 billion but having no clue how many millions it gave to Chinese labs for risky research.
    Ernst has worked tirelessly to hold President Biden and Vice President Kamala Harris accountable to their “ironclad” commitment to Israel, especially while Americans are held hostage by Iran-backed Hamas.
    She called out the Biden-Harris administration in August 2024 for withholding a wide array of congressionally-approved weapons and supplies from Israel.

    MIL OSI USA News –

  • MIL-OSI United Kingdom: New data laws unveiled to improve public services and boost UK economy by £10 billion

    Source: United Kingdom – Executive Government & Departments

    New Bill to unlock the secure and effective use of data for the public interest has been introduced into Parliament.

    • New government Bill will unlock the power of data to grow the economy and improve people’s lives
    • Measures will free up 1.5 million hours of police time and 140,000 NHS staff hours every year, potentially saving lives
    • The legislation will also support the creation of a national map of the UK’s underground infrastructure, reducing excavation accidents causing traffic jams and safety hazards on our streets

    A new Bill which will harness the enormous power of data to boost the UK economy by £10 billion, and free up millions of police and NHS staff hours has been introduced to Parliament today (Wednesday 23rd October).

    The Data Use and Access Bill will unlock the secure and effective use of data for the public interest, without adding pressures to the country’s finances. The measures will be central to delivering three of the five Missions to rebuild Britain, set out by the Prime Minister:

    • kickstarting economic growth
    • taking back our streets
    • and building an NHS fit for the future

    Some of its key measures include cutting down on bureaucracy for our police officers, so that they can focus on tackling crime rather than being bogged down by admin, freeing up 1.5 million hours of their time a year. It will also make patients’ data easily transferable across the NHS so that frontline staff can make better informed decisions for patients more quickly, freeing up 140,000 hours of NHS staff time every year, speeding up care and improving patients’ health outcomes.

    The better use of data under measures in the Bill will also simplify important tasks such as renting a flat and starting work with trusted ways to verify your identity online, or enabling electronic registration of births and deaths, so that people and businesses can get on with their lives without unnecessary admin.

    Vital safeguards will remain in place to track and monitor how personal data is used, giving peace of mind to patients and victims of crime. IT systems in the NHS operate to the highest standards of security and all organisations have governance arrangements in place to ensure the safe, legal storage and use of data. 

    Technology Secretary Peter Kyle said:

    Data is the DNA of modern life and quietly drives every aspect of our society and economy without us even noticing – from our NHS treatments and social interactions to our business and banking transactions.  

    It has the enormous potential to make our lives better, boosting our National Health Service, cutting costs when we shop, and saving us valuable time.

    With laws that help us to use data securely and effectively, this Bill will help us boost the UK’s economy, free up vital time for our front-line workers, and relieve people from unnecessary admin so that they can get on with their lives.

    The Bill, delivered by the Department for Science, Innovation, and Technology, has three core objectives: growing the economy, improving UK public services, and making people’s lives easier. The measures will be underpinned by a revamped Information Commissioner’s Office, the UK’s independent authority responsible for regulating data protection and privacy laws, with a new structure and powers of enforcement – ensuring people’s personal data will be protected to high standards.

    Improving public services

    The Bill will unlock the power of data to relieve front-line workers in the NHS and police forces across the country from bureaucracy and enable them to better serve the public.  

    Police officers across the country will benefit from measures that will remove unnecessary manual logging requirements whenever accessing personal data to work on a case, for example every time an officer needs to look up a suspect or person of interest on the police database, freeing up to 1.5 million hours of valuable police time for our officers, so that they can be on the streets fighting crime rather than being bogged down by admin. This will help save around £42.8 million in taxpayers’ money every year.

    The legislation will also ensure that healthcare information – like a patient’s pre-existing conditions, appointments and tests – can easily be accessed in real time across all NHS trusts, GP surgeries and ambulance services, no matter what IT system they are using. It will require IT suppliers for the health and care sector to ensure their systems meet common standards to enable data sharing across platforms. The measure will free up 140,000 hours in NHS staff time every year, providing quicker care for patients and potentially saving lives.

    Health and Social Care Secretary Wes Streeting said:

    The NHS is broken, but imagine its enormous potential if each part of the system communicated properly with each other.

    That starts with sharing vital medical records between healthcare providers, because it shouldn’t be the patient’s responsibility to join the dots for their doctor.

    How can a GP diagnose a problem without knowing about someone’s recent hospital surgery?

    This Bill and our Ten Year Health Plan will ensure important data flows safely and securely through the NHS, freeing up staff time and speeding up patient care.

    I know people worry about Big Brother, which is why data will only be shared to the most relevant staff and anybody using data must comply with strict security protocols.

    Minister for Crime, Policing and Fire, Dame Diana Johnson said:

    It is vital police officers are able to dedicate their time to protecting the public on the beat, not in the office.

    Freeing up this valuable resource will see more officers out on our streets, making a real difference in fighting and solving crime.

    As part of our mission to make streets safer, this government will bring back neighbourhood policing, ensuring thousands of additional police and community officers are out patrolling our towns and communities.

    Vin Diwakar, National Director of Transformation at NHS England, said:

    This Bill is a significant step in creating a more responsive and efficient healthcare system. As an NHS doctor myself, I know it is vital that NHS staff have quicker access to more accurate and comprehensive data, giving them more face-to-face time with patients who need it most.

    These changes will lay the foundations for patient information to flow safely, securely and seamlessly, which will improve clinical outcomes, make decision-making more informed and speed up the delivery of care. By simply using data more efficiently, we can save time and money, and create a modern, digital NHS that continues to improve care for patients.

    Growing the economy

    The Bill is expected to generate approximately £10 billion towards the UK economy across ten years by legislating on data sharing to generate a host of benefits for both consumers and businesses.   

    Delivering on a key government manifesto commitment, the Bill will create the right conditions to support the future of open banking and the growth of new smart data schemes, models which allow consumers and businesses who want to safely share information about them with regulated and authorised third parties, to generate personalised market comparisons and financial advice to cut costs.

    This will pave the way for the model to expand in sectors such as energy, which could give customers the ability to compare utility prices, find better deals, and reduce their energy use, as well as foster tech innovation and boost competition, which will ultimately grow the UK economy. This potential has already been demonstrated in open banking, where 82 firms alone have raised over £2 billion of private funding and created over 4,800 skilled jobs in the financial year 2022-2023.

    The Bill will also help reduce the risk of accidents on underground water and energy pipes and broadband cables, which currently amount to 60,000 every year and cause prolonged disruption of roadworks and access to key amenities like energy and broadband to homes.

    The National Underground Asset Register (NUAR) will be put on a statutory footing, mandating that owners of underground infrastructure, such as water companies or telecoms operators, register their assets on the NUAR, which is a complete map of underground pipes and cables.

    The use of the Register will mean that companies will know exactly where any underground asset is placed, reducing the risk of accidents on pipes and cables, making construction safer for workers and reducing the disruption – and hazards – caused by holes being dug up in the streets. This will generate approximately £400 million a year, boost construction and tackle accidental damage currently costing the economy £2.4 billion a year.

    Davey Stobbart, Water Networks Regional Manager, Northumbrian Water:

    Our field crews have found the way information is presented in NUAR to be more useful than anything they have seen or used before.  It has reduced the time taken for crews to understand what lies below the ground where they are about to dig.  

    In the field, we frequently find the precise point of excavation needs to be made not-quite where our office-based planners predicted and previously in this case the job would have been delayed whilst a new plan pack was prepared.  Now with NUAR, our crews are simply able to pan and zoom to that point instantly, seeing everything they would have seen on all those individual plans without the back-office cottage industry and without these delays.  In fact, they will be seeing more because we’re now able to easily access information from local authorities through NUAR too, such as street lighting, highways gulleys and tree preservation orders all in one place. 

    We have found NUAR to be a great additional tool in the toolbox to help us reduce the likelihood of high potential utility strikes.

    Making people’s lives easier

    The rules proposed in the Bill will make Britons’ day-to-day lives easier, by simplifying important tasks such as renting a flat, starting work, or registering births and deaths, so that people and businesses can get on with their lives rather than being bogged down by admin.

    The Bill will legislate on digital verification services, meaning companies who provide tools for verifying identities will be able to get certified against the government’s stringent trust framework of standards, and receive a ‘trust mark’ to use as a result. As well as increasing trust in the market, these efficiency gains will boost the UK economy by £4.3 billion over the next decade. 

    The trust mark will be a new logo to show digital verification services are approved by the new Office for Digital Identities and Attributes (OfDIA) within Department for Science, Innovation and Technology (DSIT).

    The Bill will help make sure digital verification services are inclusive, secure and privacy-preserving, and will make it easier for people to know which services they can trust.

    The Data Bill will pave the way towards modernising the registration of deaths in England and Wales from a paper-based system to an electronic birth and death register – in turn supporting people at one of the most challenging times in life. The new law will enable registrations, which are required by local authorities, to be carried out over the phone, removing the need for face-to-face registration while retaining that choice.

    Access to data for research into online safety

    The Bill will also boost the UK’s approach to tackling online harms through a power to create a researcher data access regime.

    This will support researchers in accessing data held by online platforms so they can conduct robust and independent research into online safety trends. The move will boost transparency and evidence on the scale of online harms and the measures which are effective in tackling them. 

    Further details on the specific measures can be found below:

    DSIT media enquiries

    Email press@dsit.gov.uk

    Monday to Friday, 8:30am to 6pm 020 7215 300

    Updates to this page

    Published 24 October 2024

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: Historic visit by UK Prime Minister paves way for closer economic ties for the Commonwealth

    Source: United Kingdom – Executive Government & Departments

    The Commonwealth has a once in a generation chance to be a driving force for opportunity and growth in an increasingly contested world, the Prime Minister is set to say on a landmark visit to the Pacific this week.

    • Prime Minister to make the case that the Commonwealth has a once in a generation chance to be a driving force for opportunity and growth during visit to Samoa 

    • New UK Trade Centre of Expertise set to bolster economic ties across the grouping and unlock markets for UK businesses  

    • Keir Starmer makes history as first ever sitting UK Prime Minister to visit a Pacific Island country

    The Commonwealth has a once in a generation chance to be a driving force for opportunity and growth in an increasingly contested world, the Prime Minister is set to say on a landmark visit to the Pacific this week.  

    It comes as the government uses its foreign policy agenda to deliver for people at home, working with partners across the globe on issues such as climate change, growth and energy security. 

    Keir Starmer will arrive in Samoa for the Commonwealth Heads of Government Meeting today [Thursday 24 October], joining 55 other Commonwealth delegations to discuss the shared challenges and opportunities faced by its members.  

    In doing so, he will make history as the first UK Prime Minister to ever visit a Pacific Island country.   

    The Prime Minister will use the trip to make the case that Commonwealth countries, no matter where they are in the world, need resilient and thriving economies to face the global challenges of the day.  

    And he will tell delegates that he believes the Commonwealth offers a unique opportunity to be able to build those economies, combining major traditional markets with rapidly growing economies and resilient, innovative communities.  

    By 2027, the Commonwealth is expected be home to six of the world’s ten fastest-growing economies – Guyana, Rwanda, Bangladesh, Uganda, India and Mozambique – and have a combined GDP exceeding $19.5 trillion, while more than 60% of the grouping’s 2.5 billion population will be under 30. 

    The Commonwealth, which includes some of the UK’s biggest trading partners such as India, Canada, Australia, Singapore and South Africa, already accounts for 9% of total UK trade, worth £164 billion in 2023. And its members benefit from a 21% average reduction in bilateral trade costs, as well as higher investment flows between Commonwealth members.  

    As part of the visit, the Prime Minister will announce a new UK Trade Centre of Expertise, operating out of the Foreign Office, to drive export-led growth across the grouping. Trade specialists will provide technical and practical assistance to developing countries to help them access and compete in global markets.  

    In turn, the partnership is expected to help UK businesses tap into some of the fastest growing economies in the world, such as Uganda and Bangladesh through strengthened economic ties. Over the long term, the project will also aim to lift economies out of poverty, reducing pressure on UK Aid and British taxpayers. 

    The Prime Minister is also expected to meet business leaders during CHOGM, as part of his personal campaign to drive investment into every corner of the United Kingdom. 

    The meeting, which will include business leaders such as Brian Moynihan, chairman and CEO of Bank of America, and John Neal, CEO of Lloyd’s of London, comes just 10 days after the UK hosted the International Investment Summit, which drove £63 billion of private investment and 38,000 jobs into the UK. 

    Prime Minister Keir Starmer said: 

    We have a once-in-a-generation opportunity to fix the foundations and change our country’s story to turn around the lives of everyday people in the UK, but we can’t do that with a protectionist approach.

    Under this government’s pragmatic and sensible approach, we must harness the opportunities to work with genuine partners – like our Commonwealth family – across the world to build resilient economies that offer real opportunity for our people, whether that is accessing untapped markets, or collaborating on grassroots innovations.

    The combined GDP of the Commonwealth is expected to exceed $19.5 trillion in the next three years, we cannot let that economic heft go to waste.

    Alongside the Commonwealth Secretary General, the Foreign Secretary is expected to convene Commonwealth foreign ministers to launch a new Commonwealth Investment Plan of Action to mobilise investment across the membership. 

    The plan will focus on small and vulnerable economies, easing barriers to trade and investment. The Foreign Secretary will also launch two new trade hubs to help female entrepreneurs in India and Sri Lanka access global markets.   

    Foreign Secretary David Lammy said: 

    The Commonwealth is a unique forum encompassing 56 countries and a third of the world’s population brought together through shared history and friendship.

    Representing some of the world’s fastest growing economies, forging stronger ties with these markets is crucial for delivering jobs and economic growth.

    This government is reconnecting Britain in the world and building partnerships that will unlock greater prosperity for all.

    During the three-day CHOGM summit, leaders will discuss some of the pressing issues facing Commonwealth nations, including climate change, education and democracy.  

    On Friday, the Prime Minister is expected to attend a lunch, hosted by the King for new heads of government, before attending two Commonwealth executive sessions, and the heads of government dinner.

    Updates to this page

    Published 24 October 2024

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: Only purchase safe and legal e-bikes: new Government safety campaign urges public

    Source: United Kingdom – Executive Government & Departments

    A new safety campaign to raise awareness about the dangers of buying faulty and unsafe e-bikes, e-scooters and components such as batteries has been launched

    Campaign image for DBT’s Buy Safe, Be Safe campaign

    • New campaign urges public to buy safe e-bikes and e-scooters and avoid rogue online sellers
    • E-bike and e-scooter causing fires every two days according to London Fire Brigade
    • New Product Regulation Bill beginning work to tackle dangerous goods sold online

    A new safety campaign to raise awareness about the dangers of buying faulty and unsafe e-bikes, e-scooters and components such as batteries has been launched today (Thursday 24 October).

    The Department for Business & Trade’s new “Buy Safe, Be Safe” campaign has been designed to urge the public to buy safe e-bikes and e-scooters and avoid rogue online sellers.

    E-bikes can be a cheap, healthy and modern method of travel throughout our towns and cities. However, unsafe e-bikes have resulted in hundreds of deadly fires and injured dozens of people across the UK. In 2023, the London Fire Brigade a fire every two days as a result of e-bike and e-scooter-related fires.

    Many of these fires are caused by parts incompatible with e-bikes and scooters, as well as the purchase of defective or poorly manufactured parts sold by rogue online sellers.

    The campaign focuses on three key areas encouraging consumers to only buy safe products from reputable sellers, only replace items with products recommended by the manufacturer and finally to seek professional help when converting or repairing e-bikes and e-scooters.

    The Department is partnering with retailers, manufacturers as well as online marketplaces, trade associations, consumer groups and businesses to promote the campaign. Find out more about the campaign here.

    Product Safety Minister Justin Madders said:

    E-bikes can be a great way to travel around the city, but we’ve all seen the tragic stories of unsafe e-bikes and e-scooters causing dangerous fires and taking lives.

    That’s why we’re urging everyone to check what you’re buying, check where you’re buying it from and ensure it’s safe to use.

    Local Transport Minister Simon Lightwood said:

    E-bikes have transformed our urban areas by giving people an accessible and healthy way to travel, but this is being ruined by a handful of untrustworthy online retailers.

    These rogue sellers not only risk bringing defective and dangerous batteries into people’s homes, but undermine confidence in active travel as a whole.

    That’s why I’m delighted that we are launching this campaign to make sure that people have peace of mind buying e-bikes and e-scooters from reliable sources.

    Under current laws, e-scooters are banned on public land from use except in Government rental trial areas, while e-bikes are legal to use across the country but must not exceed an output of 250 watts or travel faster than 15.5 mph.

    The public can expect to see an ongoing social media campaign including how-to video guides, as well as information materials being made available for retailers to use in stores and online to support consumers.  

    The campaign comes off the back of wider efforts to tackle dangerous goods being sold in online marketplaces. In September, the Government unveiled the new Product Regulation and Metrology Bill aimed at allowing the UK to take charge of its product regulations, boosting consumer safety and helping to further grow the economy.

    The Bill will also address the sharp rise in safety concerns around e-bikes and lithium-ion batteries and how they are sold via online marketplaces. The Bill will enable Government to better protect consumers who have for too long been at the mercy of unscrupulous suppliers, holding sellers and the online marketplaces to account if they fail to meet their responsibilities.

    And it will ensure products sold online or placed on the UK market are safe, while enabling market enforcement officials to clamp down on the sale of the product or the sellers where they are not.

    London Fire Brigade’s Assistant Commissioner for Prevention and Protection, Craig Carter, said:

    E-bikes and e-scooters are a green and sustainable way to travel around our city. However, e-bikes and e-scooters can pose a significant fire risk and particularly the batteries used to power them have become one of London’s fastest-growing fire risks. They have destroyed homes and families have sadly lost loved ones in these fires.

    From our investigations, we know many of the fires we’ve attended have involved second-hand vehicles or the bike has been modified using parts bought online.

    At this time, there is not the same level of regulation of products for e-bikes and e-scooters sold via online marketplaces or auction sites when compared to high street shops, so we cannot be confident that products meet the correct safety standard. We understand that people are trying to save money, but if you spot a deal that looks too be good to be true, it probably is.

    Halfords Head of Quality, Chris Hall, said:

    E-bikes offer numerous benefits for a healthier, greener commute. When e-bikes are purchased from reputable retailers, they’re properly certified and safe to use. Our priority is to ensure that everyone can enjoy the benefits of e-bikes without compromising on safety. The fire safety issues we’ve seen are linked to poorly manufactured, uncertified products typically bought online, as well as the use of incompatible components.

    Lesley Rudd, chief executive of consumer safety charity, Electrical Safety First said:

    E-bikes, e-scooters and their batteries are generally safe when purchased from reputable manufacturers and used correctly. However, poor-quality products – often sold via online marketplaces – improper charging, or misuse can cause ferocious fires and pose a serious risk to the buyer. Safety starts with where you shop. Sticking to reputable sellers will provide confidence that your e-bike is safe and manufactured to a high standard.

    It’s equally as important to ensure you use a charger that is designed to be compatible with your battery to avoid the risk of overcharging which may destabilise the battery and lead to a fire. We also urge consumers considering converting their push bike into e-bike to source a high-quality kit and that it is installed by a competent professional.”  

    Inga Becker-Hansen, Product Safety Advisor at the BRC, said:

    The popularity of e-bikes and e-scooters has greatly increased the number on our streets and in our homes. These products provide a convenient method of transport for many of us. However, consumers should ensure they purchase from reputable and responsible retailers, who will ensure that appropriate batteries are used and all necessary safety standards are met. We urge the public to follow government guidance and take appropriate storage and maintenance measures to ensure the safety and longevity of their purchases.

    Find full details about the ‘Buy Safe, Be Safe’ campaign here

    For our information on buying safely, how to store your product safely and best practice for charging, you can also find more information from the London Fire Brigade’s #ChargeSafe campaign.

    Updates to this page

    Published 24 October 2024

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: Northern Ireland’s innovators encouraged to apply for Horizon

    Source: United Kingdom – Executive Government & Departments

    The best of Northern Ireland’s research and development (R&D) sector will be on display in Lisburn today (Thursday 24 October) as part of a push to support bids for Horizon funding. 

    • Top innovators arrive in Lisburn to share their experience in applying for and receiving Horizon Europe funding in the hope of encouraging more successful bids 
    • Researchers, scientists and businesses based in Northern Ireland get the opportunity to network with potential collaboration partners and receive advice for their Horizon Europe applications.  
    • UK Government pushes more innovators from Northern Ireland to apply for Horizon Europe funding and realise their research ambitions – from new treatments to improved digital infrastructure. 

    The best of Northern Ireland’s R&D sector will be on display in Lisburn today (Thursday 24 October), as top researchers, scientists and businesses gather under one roof to exchange ideas and network with potential partners for the next successful bids for Horizon Europe funding. 

    Horizon Europe is the largest research collaboration programme in the world, worth over £80 billion. Through the UK’s association, researchers, innovators and businesses from up and down Northern Ireland can apply for funding grants that will help researchers fund projects across all sectors from health, to clean energy, to digital infrastructure.  

    Getting backing for their ideas could put the UK at the forefront of the next generation of technologies, which will be the foundations of the jobs and businesses of the future. Over £81 million was awarded to projects in Northern Ireland through its predecessor, Horizon 2020, so we know the opportunities are there. 

    The roadshow gives researchers and innovative businesses at all stages of their career from Northern Ireland the chance to speak to those who have been through the process of bidding for Horizon funding, gain support for their applications, and connect with likeminded innovators. This will highlight the opportunities available to both public and private sectors wanting to realise their research ambitions.  

    UK Science Minister, Lord Vallance said:  

    The discoveries and innovations on display in Lisburn today demonstrate the potential that researchers in Northern Ireland have to make the most of the UK’s association to Horizon. Their ideas are already attracting investment, driving  partnerships between some of the brightest minds from Europe, New Zealand, Canada and more.  

    With more successful bids for Horizon funding, researchers from the public and private sector in Northern Ireland could come up with the solutions we need to kickstart economic growth and improve living standards.

    Department for Science, Innovation and Technology Chief Scientific Advisor, Professor Chris Johnson said:

    Having made Northern Ireland my home and working at one of its great universities, I know what the brilliant minds here are capable of, and I am pleased to be here today to hear of the ambitious projects that have already been brought to life thanks to funding from Horizon. This roadshow is a great opportunity for researchers, scientists and businesses in the region to hear from innovators who have been through the application process and succeeded.  

    We want more researchers based in Northern Ireland to seize the benefits of Horizon Europe, to accelerate the discoveries that will boost our economy, and deliver new technologies that will improve all our lives.

    A litany of Northern Irish R&D projects received backing through Horizon’s predecessor, Horizon 2020. One example is the EYE-RISK project, a collaborative effort between a group of researchers based at Queen’s University Belfast (QUB) and several leading research centres around Europe to find a cure for Age-Related Macular Degeneration (AMD). AMD is a progressive and currently incurable disease leading to declining sight that progresses to the irreversible loss of vision. 

    The EYE-RISK team published many milestone papers and reviews, and the project is still considered as a flagship programme in Ophthalmology which focuses on the diagnosis and treatment of eye disorders. The researchers developed a computational model of potential risks, physiological activities, hazards, and the impact of aging on patients with AMD which can serve as the basis for future research initiatives. 

    Imre Lengyel and Tunde Peto, project leaders for EYE-RISK:

    The EYE-RISK project embedded the QUB ophthalmology cluster amongst the leading teams in Europe and gave us a leading edge worldwide. The academics and the early career scientists involved in this project have been given an excellent opportunity to be involved in breakthrough research and develop professional and personal friendships.

    An array of speakers from across government, including the Chief Scientific Advisors from both the UK Department of Science, Innovation and Technology (DSIT) and from the Northern Ireland Executive, are attending the roadshow. The roadshow which has been brought together in a collaboration between DSIT, Innovate UK, the Northern Ireland Government and Enterprise Northern Ireland.  

    Northern Ireland is already playing a big role in tackling the challenges facing the UK today, from driving cybersecurity through to seizing the opportunities of our push towards net zero. Queen’s University Belfast’s Centre for Advanced Sustainable Energy is looking at ways we can build the UK as a net zero superpower, supported by £4.5 million from the Northern Ireland Executive. Grants awarded through the Horizon Europe programme could allow researchers to discover more in this area and ultimately help us protect our planet. 

    Innovative companies are increasingly making Northern Ireland their home. Recently, ASOS set up a £14 million tech hub that will create over 180 jobs in the coming years.  

    The roadshow in Northern Ireland is the latest event in a series of roadshows, following 2 previous sessions in Birmingham and Glasgow, building on a range of campaign efforts to get more businesses, researchers and academics to make the most of the benefits we can grasp from our association to the world-leading programme. 

    Backing the science and technology sectors is a central if we are to achieve the missions of this new government. The discoveries and solutions that researchers bidding for Horizon funding can produce will help us improve the daily lives of people across the UK – from transforming our NHS and transport systems so that they are fit for the future to securing more funding that will help us rebuild our economy.  

    We know from recent history that the UK can be a leader in this area. We have 4 of the top 10 universities in the world, and the second-highest number of Nobel prize winners. A quarter of projects in which the UK participated, funded through Horizon’s predecessor, were UK led. 

    Further information, including practical support on how to apply, is available on Innovate UK’s website and UK Research and Innovation (UKRI) also host regular events that help guide businesses and researchers through the opportunities on offer and the application process. 

    Potential applicants can find Horizon Europe calls (funding opportunities) open to UK-based applicants using the European Commission’s funding and tender opportunities portal. They can apply for Horizon Europe funding through the European Commission’s funding and tenders portal, where the original funding call is found. More information on how to submit applications are available on the European Commission’s website. 

    NOTES TO EDITORS 

    The EYE-RISK project aimed to pinpoint who is at risk of developing the condition, and why loss of vision progresses in patients with the disease. This understanding is an important first step towards better diagnosis and treatment of the condition.

    Updates to this page

    Published 24 October 2024

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  • MIL-OSI United Kingdom: Poor governance at Mermaids amounted to mismanagement, inquiry reveals

    Source: United Kingdom – Executive Government & Departments

    In a report published today (Thursday 24 October 2024), the Charity Commission concludes that over several years, trans youth charity Mermaids was not governed to the standards it expects.

    The regulator cites the charity’s failure to ensure its governance, culture and practices kept pace with its growing size, demand for services and public profile, as a major factor that contributed to wider governance failings.  

    Mermaids’ objects are to relieve the mental and emotional stress of children and young people affected by gender identity issues and their families, and to advance public education about the same.  

    In September 2022, the Commission opened a regulatory compliance case into the charity after complaints were made by the public, and highlighted in the media. Concerns were raised around chest-binding services and online support offered to young people, and alleged ties between the charity’s now former CEO and the Tavistock and Portman NHS Foundation Trust. As charity regulator, the Commission looked at matters that fell within its remit, in relation to the trustees’ compliance with their duties and charity law.  

    The regulator escalated its engagement to a statutory inquiry in November 2022 after the findings of an Equity, Diversity and Inclusion (EDI) review commissioned by Mermaids highlighted multiple issues of concern relating to the charity’s culture, operational management and processes. Today’s report noted that the charity has addressed these with an action plan and has provided evidence of this to the Commission alongside additional steps that were recommended in a separate and wider external review of the charity’s governance.  

    The inquiry examined the administration, governance and management of the charity, including its leadership and culture. It also sought to determine if trustees have fulfilled their duties under charity law, in line with the charity’s purpose. This included assessing if there is sufficient oversight of the charity’s activities and compliance with internal policies and procedures. 

    As part of its investigations, the inquiry met with charity representatives on multiple occasions to inspect records and obtain further information and documents. The charity’s trustees, senior staff members and former CEO were all interviewed, and the inquiry reviewed the charity’s complaints log and sampled calls, emails and online forum/web chat with users that took place between 2020 and 2023.  

    The inquiry report makes a number of findings of mismanagement, including around trustees failing to:  

    • address internal issues around culture and inclusivity at the charity  

    • carry out sufficient due diligence checks when recruiting trustees, which resulted in the recruitment of someone the charity said should “never have been appointed”  

    • properly adhere to their own internal HR policies when it came to the supervision of the former CEO and / or make clear to the former CEO and staff that the role did not fall into the charity’s normal HR management policy   

    The inquiry also found the purpose of the information about puberty blockers published on the charity’s website was unclear. Charities are by law required to ensure that information provided on an education basis is accurate, evidence-based and balanced. The inquiry provided statutory advice on this matter, which the trustees have since acted on. 

    The inquiry found that the charity had a detailed policy relating to its chest binder service and demonstrated compliance with this policy, though in a small number of cases could have been more transparent with service users when declining requests. Mermaids terminated the service in October 2023. However, the Commission has issued statutory advice to the charity requiring that, should it ever resume this service, its future policy and controls should reflect the recent Cass Review, or any future NHS guidelines on parental involvement. 

    The Commission did not uphold all concerns raised about the charity. The inquiry found no evidence that the charity:   

    • provided medical advice, which would have been outside its charitable purposes  

    • made medical referrals for young people without the approval of a parent or carer  

    • held inappropriate influence or ties to GIDS at the Tavistock and Portman NHS Foundation Trust or to private medical practices 

    • failed to have appropriate safeguarding policies in place. 

    Orlando Fraser, KC, Chair of the Charity Commission said:  

    “The provision of services to children affected by gender identity issues is a highly challenging area that requires great care and sensitivity. This is especially so for charities, given the authority that registered status will likely carry with children and their families.  

    “We have carefully scrutinised Mermaids’ activities through a statutory inquiry and have found mismanagement in a number of areas. Mermaids cooperated with our investigation and has been actively addressing the various concerns raised.  

    “Additionally, following the Cass Review, we have required Mermaids to present a more accurate picture on its website as to the risks involved in the use of puberty blockers, and to follow Cass Review findings on the involvement of parents in social transitioning as regards any future provision of chest binders to children.”  

    He added:  

    “As the report indicates, there are lessons for other charities working in these areas, including that they need to have regard to the findings, conclusions and recommendations of the Cass Review.”  

    The full inquiry report, detailing all findings, is available on GOV.UK.   

    Notes to editors:  

    1. The Charity Commission is the independent, non-ministerial government department that registers and regulates charities in England and Wales. Its ambition is to be an expert regulator that is fair, balanced, and independent so that charity can thrive. This ambition will help to create and sustain an environment where charities further build public trust and ultimately fulfil their essential role in enhancing lives and strengthening society.

    Press office

    Email pressenquiries@charitycommission.gov.uk

    Out of hours press office contact number: 07785 748787

    Updates to this page

    Published 24 October 2024

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: expert reaction to report on food, diet and obesity from the House of Lords Food, Diet and Obesity Committee

    Source: United Kingdom – Executive Government & Departments

    Scientists comment on a report by the House of Lords Food Diet and Obesity Committee. 

    Dr Nerys Astbury, Associate Professor – Diet & Obesity, Nuffield Department of Primary Health Care Sciences, University of Oxford, said:

    “The House of Lords report concludes that obesity and diet-related disease are a public health emergency.  Whilst it’s great to have this acknowledged publicly by such a high-profile report, many, including those of us who work on diet and obesity research believe that this is already well established.  However, what is needed are immediate, specific, and measurable actions which have the potential to reduce obesity and diet related disease rates which contribute to ill health and have significant impact on the wider economy.

    “The report highlights that between 1992 and 2020, almost 700 policies were proposed by successive governments to tackle obesity in England.  Yet the prevalence of obesity continues to rise, as do the rates of many diseases associated with obesity including type 2 diabetes, cardiovascular disease, and certain obesity-related cancers.

    “Whilst the report goes some way to suggest several key actions which have the potential to help reduce obesity rates and prevent other diet related diseases, time and political will are needed to envisage these changes.  Some of these policies suggested may be unpopular, and there will likely be resistance to making some of these changes, particularly from the food industry who try to resist policies which could impact their profit margins.”

    Prof Alex Johnstone, Theme Lead for Nutrition, Obesity and Disease at the Rowett Institute, University of Aberdeen, said:

    “I welcome this report from the House Of Lords and the ethos to support preventative strategies as part of healthy weight management in the UK.  Our own research on Transforming the UK Food System (TUKFS), funded by UKRI, on food insecurity and obesity, with focus on the retail food sector, supports the priority actions identified, which include strengthening policy and mandatory reporting.  As an academic, I particularly welcome opportunity for future funding for more mechanistic research on ultra processed foods impact on health.  The food system is complex and encompasses farm to fork, and we should not miss the lived experience of those with obesity.  These measures are only the first step to move towards access to healthy and sustainable food for all to reduce the dietary health inequalities in the UK.

    “The consultation was wide ranging and actively sought evidence from a wide range of food system stakeholders.  I submitted written evidence, both as an individual academic https://committees.parliament.uk/writtenevidence/130634/pdf/as and as part of a UKRI Transforming UK Food Systems research team https://committees.parliament.uk/writtenevidence/130616/pdf/.  This process was extensive; the report is transparent, with transcripts of oral evidence also provided.  The report does appear to be evidence based, with a balance of actions which also identify knowledge gaps, for example, more funding for more research on UPF, where the evidence is less clear.  The actions prioritise changing our food system, or food environment, which is welcome.  I would have liked to see more mention of the lived experience from people living with obesity being cited as evidence, and more direct actions on reducing food insecurity for people living with obesity.  I would have also liked to see some evidence on how we communicate about overweight and obesity, there is evidence on changing the narrative from body weight to a healthy weight (https://publichealthscotland.scot/news/2023/march/improving-how-we-communicate-about-health-and-obesity-in-scotland/).”

    Dr Katie Dalrymple, Lecturer in Nutritional Sciences, King’s College London, said:

    “The obesity epidemic presents a major challenge for public health across all stages of the life course.  Without effective and evidence-based interventions we will not see a reduction in obesity rates in our lifetime.  Those at particular risk of developing obesity are children and young people.  The report has highlighted the importance of preconception health of the mother as well as crucial role of the infant and early childhood diet and how they influence food choices.  Early years settings and primary schools also offer an opportunity to support children in accessing health food choices.  I hope the outcomes of this report result in tangible and effective interventions across this important stage of the lifecourse.”

    ‘House of Lords Food, Diet and Obesity Committee Report of Session 2024-25, Recipe for health: a plan to fix our broken food system’ was published at 00:01 UK time on Thursday 24 October 2024.

    Declared interests

    Dr Nerys Astbury: “No conflicts.”

    Prof Alex Johnstone: “Current Association for the Study of Obesity Scotland Chair (https://aso.org.uk/scotlandand), has a voluntary position with the British Nutrition Foundation Advisory Group (https://www.nutrition.org.uk/news/prof-alex-johnstone-to-join-british-nutrition-foundation-advisory-committee/).  She leads a TUKFS- Transforming UK Food System- FIO Food grant (Food Insecurity in people living with obesity, https://www.abdn.ac.uk/rowett/research/fio-food/index.php).”

    Dr Katie Dalrymple: “I have a COI, I worked for Danone Nutricia for 4 years from 2012-2016.  This is on my bio on the KCL website: https://www.kcl.ac.uk/people/kathryn-dalrymple.”

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: Strengthened Football Governance Bill launched to protect clubs and support fans

    Source: United Kingdom – Executive Government & Departments

    The Government will take its first step to address the significant issues facing the financial sustainability of elite men’s football in England with the introduction of a strengthened Football Governance Bill in the House of Lords.

    • New powers in the Bill deliver manifesto commitments and include consulting fans on ticket pricing, home stadium relocations, and fan representation at clubs
    • Parachute payments included in Regulator’s remit so it will have full oversight to tackle financial sustainability across the football pyramid
    • Requirement to consider government foreign policy dropped to cement regulator’s full independence

    The Government will take its first step to address the significant issues facing the financial sustainability of elite men’s football in England today [Thursday 24 October], with the introduction of a strengthened Football Governance Bill in the House of Lords. 

    The Bill comes at a critical juncture for English football, following the attempted breakaway European Super League, and a series of high profile cases of clubs being financially mismanaged. In recent years we’ve seen the devastating impact of the collapse of clubs like Bury and Macclesfield. These cases came about as a result of fundamental governance problems in the game that have led to excessive and reckless risk-taking, with many clubs living way beyond their means.

    The Bill, which delivers on the Government’s manifesto commitments, will establish an Independent Football Regulator and a new set of rules to protect clubs, empower fans and keep clubs at the heart of their communities. 

    The Regulator will tackle rogue owners and directors, implement a club licensing regime to help ensure a more consistent approach in how clubs are run, monitor club finances and improve fan engagement throughout the football pyramid – from the Premier League to the National League. It will also have a backstop measure to mediate a fair financial distribution down the Leagues should the Premier League and EFL (English Football League) not be able to come to an agreement. 

    In major changes to the previous draft of the Football Governance Bill:

    • The Regulator will now explicitly require clubs to provide ‘effective engagement’ with  their supporters on changes to ticket prices, and any proposals to relocate their home ground. 
    • The singular carve out of parachute payments in the previous draft of the Bill has been dropped. The Regulator will now be given the remit to include parachute payments, through the backstop mechanism, when assessing finances across the game. Excluding these payments, would have significantly reduced the ability of the Regulator to take a full view of financial stability and resilience across the football pyramid. 
    • The Regulator will no longer be required to consider government foreign and trade policy when approving club takeovers. The move ensures the Regulator will be fully independent of government and industry. 
    • The Regulator will now have the power to compel clubs to democratically select the fan representatives the club must engage with, rather than clubs making a unilateral decision. This will ensure meaningful engagement with as many supporters of a club as possible. 
    • There is now a clear commitment to do more to improve Equality, Diversity and Inclusion (EDI) within the game. Clubs will now be required to be transparent and publish what action they are taking on EDI as part of reporting against a new Football Club corporate governance code that the regulator will introduce, improving decision making at clubs. 

    The Government has made it a priority to strengthen the Bill since taking office, ensuring English football remains one of the country’s greatest exports, and places fans back at the heart of the game, so that local clubs in towns and cities continue to thrive for generations. 

    Culture Secretary Lisa Nandy said:

    English football is one of our greatest exports and a source of national pride which this Government wants to see thrive for generations to come.

    But for too long, financial instability has meant loyal fans and whole communities have risked losing their cherished clubs as a result of mismanagement and reckless spending. 

    This Bill seeks to properly redress the balance, putting fans back at the heart of the game, taking on rogue owners and crucially helping to put clubs up and down the country on a sound financial footing.” 

    Sports Minister Stephanie Peacock said:

    Football would be nothing without its fans, and this strengthened Bill will deliver an Independent Regulator that puts them firmly back at the centre of the game. 

    From protecting club heritage such as shirt colours and badges that mean so much to so many of us, to requiring clubs to consult fans on changes to ticket prices, the Regulator will help make the game the best it can be.

    Working side by side with the football authorities, the Regulator will protect clubs and make sure they’re kept at the heart of their communities, where they belong.

    Kevin Miles, Chief Executive of the Football Supporters Association said:

    Earlier this year 200+ supporters’ groups signed an FSA open letter calling on all parties to get behind a new Football Governance Bill – we’re very pleased the Government has listened and look forward to working with Parliamentarians to ensure the Bill delivers upon its promise. 

    The FSA was at the heart of 2021’s Fan-Led Review of Football Governance which made a range of recommendations to strengthen the game’s governance – most notably the commitment to introduce an independent regulator. 

    The regulator has the potential to protect our historic community clubs and stop the being run into-the-ground by bad owners, rebalance the game’s finances, protect the heritage of all clubs, give supporters a bigger say in the running of the game and block any domestic clubs from joining a breakaway European Super League. The FSA wholeheartedly backs its creation.

    Dame Tracey Crouch, author Fan Led Review of Football said:

    For far too long fans have been at the back of the queue when it comes to their beloved football club. Football means so much to millions of people and I’m grateful the Government is taking action to protect football from the threats of rogue owners and breakaway competitions.

    The protections in the new Bill reflect the Fan Led Review’s recommendations that supporters should be placed back at the heart of the game and will have a genuine say on things like ticketing and club heritage.

    The Independent Football Regulator will crucially help put clubs on a sustainable financial footing and help secure our national game’s long term future.

    Former Manchester United and England player, football pundit and co-owner of Salford City FC Gary Neville said:

    Football is undoubtedly one of our country’s greatest assets, but now more than ever we need an independent regulator to act as a guardian for our game, to make sure that clubs and their fans are protected for the long term. 

    I’ve had the honour of experiencing football as a fan, player, pundit and now as a club co-owner, but I know my role is to act as a temporary custodian of an institution that belongs to its fans and community which will last forever. 

    Football is too important in this country to be left solely in the hands of individual owners to design its future. We’ve seen inequality across the game grow but now independent regulation can act as a catalyst to create a thriving and sustainable game for future generations.

    The new legislation echoes the sentiment from fans on the need for systemic change in football, as set out in Dame Tracey Crouch’s Fan Led Review of Football. While retaining many of the key findings, the Government believes the new Bill builds on these and delivers a stronger independent regulator for men’s elite football in England.

    Notes to editors:

    • The Fan Led Review of Football Governance can be found here.
    • Parachute payments will be assessed only if the Regulator considers them to be of systemic risk to financial sustainability. The Football Governance Bill will require clubs to continue to be protected from the risks that come with relegation.

    Updates to this page

    Published 24 October 2024

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: Press release: Historic visit by UK Prime Minister paves way for closer economic ties for the Commonwealth

    Source: United Kingdom – Prime Minister’s Office 10 Downing Street

    The Commonwealth has a once in a generation chance to be a driving force for opportunity and growth in an increasingly contested world, the Prime Minister is set to say on a landmark visit to the Pacific this week.

    • Prime Minister to make the case that the Commonwealth has a once in a generation chance to be a driving force for opportunity and growth during visit to Samoa 

    • New UK Trade Centre of Expertise set to bolster economic ties across the grouping and unlock markets for UK businesses  

    • Keir Starmer makes history as first ever sitting UK Prime Minister to visit a Pacific Island country

    The Commonwealth has a once in a generation chance to be a driving force for opportunity and growth in an increasingly contested world, the Prime Minister is set to say on a landmark visit to the Pacific this week.  

    It comes as the government uses its foreign policy agenda to deliver for people at home, working with partners across the globe on issues such as climate change, growth and energy security. 

    Keir Starmer will arrive in Samoa for the Commonwealth Heads of Government Meeting today [Thursday 24 October], joining 55 other Commonwealth delegations to discuss the shared challenges and opportunities faced by its members.  

    In doing so, he will make history as the first UK Prime Minister to ever visit a Pacific Island country.   

    The Prime Minister will use the trip to make the case that Commonwealth countries, no matter where they are in the world, need resilient and thriving economies to face the global challenges of the day.  

    And he will tell delegates that he believes the Commonwealth offers a unique opportunity to be able to build those economies, combining major traditional markets with rapidly growing economies and resilient, innovative communities.  

    By 2027, the Commonwealth is expected be home to six of the world’s ten fastest-growing economies – Guyana, Rwanda, Bangladesh, Uganda, India and Mozambique – and have a combined GDP exceeding $19.5 trillion, while more than 60% of the grouping’s 2.5 billion population will be under 30. 

    The Commonwealth, which includes some of the UK’s biggest trading partners such as India, Canada, Australia, Singapore and South Africa, already accounts for 9% of total UK trade, worth £164 billion in 2023. And its members benefit from a 21% average reduction in bilateral trade costs, as well as higher investment flows between Commonwealth members.  

    As part of the visit, the Prime Minister will announce a new UK Trade Centre of Expertise, operating out of the Foreign Office, to drive export-led growth across the grouping. Trade specialists will provide technical and practical assistance to developing countries to help them access and compete in global markets.  

    In turn, the partnership is expected to help UK businesses tap into some of the fastest growing economies in the world, such as Uganda and Bangladesh through strengthened economic ties. Over the long term, the project will also aim to lift economies out of poverty, reducing pressure on UK Aid and British taxpayers. 

    The Prime Minister is also expected to meet business leaders during CHOGM, as part of his personal campaign to drive investment into every corner of the United Kingdom. 

    The meeting, which will include business leaders such as Brian Moynihan, chairman and CEO of Bank of America, and John Neal, CEO of Lloyd’s of London, comes just 10 days after the UK hosted the International Investment Summit, which drove £63 billion of private investment and 38,000 jobs into the UK. 

    Prime Minister Keir Starmer said: 

    We have a once-in-a-generation opportunity to fix the foundations and change our country’s story to turn around the lives of everyday people in the UK, but we can’t do that with a protectionist approach.

    Under this government’s pragmatic and sensible approach, we must harness the opportunities to work with genuine partners – like our Commonwealth family – across the world to build resilient economies that offer real opportunity for our people, whether that is accessing untapped markets, or collaborating on grassroots innovations.

    The combined GDP of the Commonwealth is expected to exceed $19.5 trillion in the next three years, we cannot let that economic heft go to waste.

    Alongside the Commonwealth Secretary General, the Foreign Secretary is expected to convene Commonwealth foreign ministers to launch a new Commonwealth Investment Plan of Action to mobilise investment across the membership. 

    The plan will focus on small and vulnerable economies, easing barriers to trade and investment. The Foreign Secretary will also launch two new trade hubs to help female entrepreneurs in India and Sri Lanka access global markets.   

    Foreign Secretary David Lammy said: 

    The Commonwealth is a unique forum encompassing 56 countries and a third of the world’s population brought together through shared history and friendship.

    Representing some of the world’s fastest growing economies, forging stronger ties with these markets is crucial for delivering jobs and economic growth.

    This government is reconnecting Britain in the world and building partnerships that will unlock greater prosperity for all.

    During the three-day CHOGM summit, leaders will discuss some of the pressing issues facing Commonwealth nations, including climate change, education and democracy.  

    On Friday, the Prime Minister is expected to attend a lunch, hosted by the King for new heads of government, before attending two Commonwealth executive sessions, and the heads of government dinner.

    Updates to this page

    Published 24 October 2024

    MIL OSI United Kingdom –

  • MIL-OSI New Zealand: $100m NZ-Brazil trade boost through 13 key partnerships

    Source: New Zealand Government

    Minister for Trade Todd McClay, today announced the signing of 13 Memorandums of Understanding (MOUs) between New Zealand and Brazilian companies as part of the New Zealand Trade Mission to São Paulo this week.
    “These partnerships mark a significant step in strengthening the trade relationship between the two nations and are set to generate over $100 million in revenue over the next three years,” Mr McClay says.
    “This will boost our economy and contribute towards achieving the ambitious target of doubling trade by value in 10 years.
    “These MOU’s will continue to increase market access to Latin America and deepen our people-to-people connections, while also contributing to Brazil’s economic growth. This is a win-win for both countries.
    The 13 MOUs signed today cover a broad range of sectors, including technology, healthcare, advanced manufacturing, and education, showcasing New Zealand’s diverse offerings and Brazil’s growing interest in Kiwi expertise.
    The MOUs include:

    New Zealand Brazil Business Council (NZBBC) and NZBBC Brazil – Establishing the NZBBC office in Brazil to foster further business ties.
     AD Instruments and UNESP Jaboticabal – Supplying telemetry technology to universities in São Paulo.
     AD Instruments and ANIMA Educacao – Renewing educational technology in ANIMA Group’s medical schools.
    Foot Science and IMPEC – Partnering to distribute Foot Science’s products across Brazil.
     Framecad and Placlux – Providing advanced construction technology to the InovaSteel Group.
     Framecad and Steel Corp – Delivering two Framecad systems to Steel Corp for further innovation in building systems.
     Gallagher Animal Management and D&Q Law – Launching Gallagher’s animal management operations in Brazil.
     Les Mills and Brazilian Trainer – Introducing Les Mills Pilates classes across Brazil.
    Loadscan and ASBZ – Expanding Loadscan’s presence with a new Brazilian entity.
    MindHive and ASBZ – Establishing MindHive’s Brazilian office to drive innovation and collaborative solutions.
    MindHive and JBS – Establishing MindHive’s technology in JBS processing.
    AROA and Nexgeen – Enhancing healthcare services with Nexgeen, a key healthcare provider in Brazil.
    Tait Communications and Santos Futebol Clube – Supplying communication systems to Santos Futebol ClubAROA and Nexgeen – Enhancing healthcare services with Nexgeen, a key healthcare provider in Brazil.

    “These partnership agreements highlight the importance of trade missions in driving collaboration and underscore the Government’s commitment to enhancing opportunities for innovation, trade, and shared prosperity.”

    MIL OSI New Zealand News –

  • MIL-OSI New Zealand: Travel tips for a less laborious Labour weekend on the roads

    Source: New Zealand Transport Agency

    As people gear up to make the most of the first long weekend in several months by hitting the road, headed for their favourite holiday spots, NZ Transport Agency Waka Kotahi (NZTA) is encouraging everyone to drive safe and plan ahead to avoid the busiest times on state highways across Auckland and Northland.

    NZTA has updated its Holiday Journeys interactive travel planner for Labour weekend. The tool shows predicted traffic conditions for popular routes in Auckland, Northland and further afield over the long weekend, based on travel patterns from previous years.

    Holiday Journeys(external link)

    NZTA Regional Manager Maintenance and Operations for Auckland and Northland, Jacqui Hori-Hoult, says where possible, people should aim to travel outside the busiest periods.

    “In Northland, delays are predicted on State Highway 1 at Whangārei for northbound traffic from late Friday morning, right through until around 7pm that evening, with the heaviest traffic expected between 2pm and 6pm. Delays for southbound traffic are spread across the weekend, on Friday afternoon, Saturday from mid-morning through to lunch and an hour and half either side of lunch on Sunday. Traffic is busy for much of the day on Monday, with the worst expected between 11am and 3pm.

    “Traffic is expected to be busy on SH1 between Puhoi and Wellsford between noon and around 7.30pm on Friday, and again between 10.30am and 2pm on Saturday. Southbound, people can expect delays on Monday between 10am and 6.30pm, with the worst predicted between noon and 6pm,” Ms Hori-Hoult says.

    “Further south, people should expect traffic across the weekend for travel northbound between Bombay and Manukau. Those travelling in the opposite direction can expect delays between 10.30am and 7.30pm on Friday, particularly between 11.30am and 6.30pm, and again between 9am and 2pm on Saturday, with the heaviest traffic expected between 11am and 1.30pm.”

    Because predicted travel times can change based on traffic incidents, weather or driver behaviour, people should visit the Waka Kotahi Journey Planner website for real-time travel information, traffic cameras, and updates on delays, roadworks and road closures before they travel.

    Journey Planner(external link)

    While most work stops before busy holiday travel periods like the Labour Day long weekend to minimise disruption to people’s journeys, the State Highway 16 Newton Road westbound on-ramp will be closed from 9pm on Friday 25 October to 5am on Tuesday 29 October to allow crews to work around the clock replacing the bridge joints.

    Labour weekend closure for Newton Rd westbound on-ramp(external link)

    There will also be lane and speed restrictions on Newton Road, with traffic flow maintained in both directions. Piwakawaka Street will be one way during this time, with entry from Newton Road only. The pedestrian path from Newton Road to Takau Street will also be closed.

    Ms Hori-Hoult says everyone should take extra care when travelling over the holiday weekend due to increased traffic volumes, congestion, tiredness and people driving in unfamiliar environments.

    “We can all take simple actions to stay safe. That means checking your car is safe before your journey, keeping your speed down, driving sober, watching for the signs of fatigue and sharing the driving.

    Allow plenty of time. You’re on holiday, there’s no need to rush.

    “Drive to the conditions – whether it’s the weather, the road you’re on, the time of day or the volume of traffic on the roads.

    “Keep a safe following distance from vehicles in front so you can stop safely and take regular breaks to stay alert.”

    Tips for safe driving on your Labour Weekend holiday

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

    Labour day weekend holiday journeys(external link)

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

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

    Vehicle safety

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

    MIL OSI New Zealand News –

  • MIL-OSI USA: Asheville Disaster Recovery Center Moving; Temporary Centers Available to Help

    Source: US Federal Emergency Management Agency

    Headline: Asheville Disaster Recovery Center Moving; Temporary Centers Available to Help

    Asheville Disaster Recovery Center Moving; Temporary Centers Available to Help

    RALEIGH, N.C. – The Disaster Recovery Center (DRC) at A.C. Reynolds High School in Asheville will be closing 7 p.m., Oct. 24 to allow the school to open and students to resume learning. A new fixed site in Buncombe County will be announced soon.In addition to a fixed site, Mobile Disaster Recovery Centers (M-DRCs) are opening with the first on Oct. 24 to provide in-person support. M-DRCs can be found at the following locations and operational hours:Swannanoa Fire Rescue – Bee Tree Fire Sub Station510 Bee Tree Rd. Swannanoa, NC 28778Open: Oct. 24 – 27, 8 a.m. – 7 p.m. Buncombe County Sports Park (Parking Lot)58 Apac Dr. Asheville, NC 28806Open: Oct. 28 – 31, 8 a.m. – 5 p.m. A Disaster Recovery Center is a one-stop shop where survivors can meet face-to-face with FEMA representatives, apply for FEMA assistance, receive referrals to local assistance in their area, apply with the U.S. Small Business Administration (SBA) for low-interest disaster loans and much more. Centers are already open across areas affected by Helene. To find those center locations go to fema.gov/drc or text “DRC” and a zip code to 43362. You can visit any open center. No appointment is needed.  It is not necessary to go to a center to apply for FEMA assistance. The fastest way to apply is online at DisasterAssistance.gov or via the FEMA app. You may also call 800-621-3362. If you use a relay service, such as video relay, captioned telephone or other service, give FEMA your number for that service.
    krystin.ventura
    Wed, 10/23/2024 – 23:06

    MIL OSI USA News –

  • MIL-OSI: Northrim BanCorp Earns $8.8 Million, or $1.57 Per Diluted Share, in Third Quarter 2024

    Source: GlobeNewswire (MIL-OSI)

    ANCHORAGE, Alaska, Oct. 23, 2024 (GLOBE NEWSWIRE) — Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the “Company”) today reported net income of $8.8 million, or $1.57 per diluted share, in the third quarter of 2024, compared to $9.0 million, or $1.62 per diluted share, in the second quarter of 2024, and $8.4 million, or $1.48 per diluted share, in the third quarter a year ago. The increase in third quarter 2024 profitability as compared to the third quarter a year ago was primarily the result of an increase in mortgage banking income and higher net interest income, which was only partially offset by higher other operating expenses and a higher provision for credit losses.

    Dividends per share in the third quarter of 2024 increased to $0.62 per share as compared to $0.61 per share in the second quarter of 2024 and $0.60 per share in the third quarter of 2023.

    “We had strong deposit-funded loan growth in the third quarter,” said Mike Huston, Northrim’s President and Chief Executive Officer. “Deposits and loans both increased 7% from the end of the second quarter. Our deposit market share increased by 4% in the past year and by 42% in the past five years as our investments in people, expanded branch network, and differentiated service continue to attract new customers and strengthen existing relationships.”

    Third Quarter 2024 Highlights:

    • Net interest income in the third quarter of 2024 increased 7% to $28.8 million compared to $27.1 million in the second quarter of 2024 and increased 9% compared to $26.4 million in the third quarter of 2023.
    • Net interest margin on a tax equivalent basis (“NIMTE”)* was 4.35% for the third quarter of 2024, up 5-basis points from the second quarter of 2024 and up 14-basis points from the third quarter a year ago.
    • Return on average assets (“ROAA”) was 1.22% and return on average equity (“ROAE”) was 13.69% for the third quarter of 2024.
    • Portfolio loans were $2.01 billion at September 30, 2024, up 7% from the preceding quarter and up 17% from a year ago, primarily due to new customer relationships, expanding market share, and to retaining certain mortgages originated by Residential Mortgage, a subsidiary of Northrim Bank (the “Bank”), in the loan portfolio.
    • Total deposits were $2.63 billion at September 30, 2024, up 7% from the preceding quarter, and up 8% from $2.43 billion a year ago. Non-interest bearing demand deposits increased 8% from the preceding quarter and decreased slightly year-over-year to $763.6 million at September 30, 2024 and represent 29% of total deposits.
    • The average cost of interest-bearing deposits was 2.24% at September 30, 2024, up from 2.21% at June 30, 2024 and 1.75% at September 30, 2023.
    • Mortgage loan originations increased to $248.0 million in the third quarter of 2024, up from $181.5 million in the second quarter of 2024 and $153.4 million in the third quarter a year ago. Mortgage loans funded for sale were $210.0 million in the third quarter of 2024, compared to $152.3 million in the second quarter of 2024 and $131.9 million in the third quarter of 2023.
    Financial Highlights   Three Months Ended 
    (Dollars in thousands, except per share data) September 30,
    2024    		 June 30, 2024 March 31, 2024 December 31,
    2023    		 September 30,
    2023
    Total assets $2,963,392   $2,821,668 $2,759,560   $2,807,497   $2,790,189  
    Total portfolio loans $2,007,565   $1,875,907 $1,811,135   $1,789,497   $1,720,091  
    Total deposits $2,625,567   $2,463,806 $2,434,083   $2,485,055   $2,427,930  
    Total shareholders’ equity $260,050   $247,200 $239,327   $234,718   $225,259  
    Net income $8,825   $9,020 $8,199   $6,613   $8,374  
    Diluted earnings per share $1.57   $1.62 $1.48   $1.19   $1.48  
    Return on average assets   1.22 %   1.31 %   1.19 %   0.93 %   1.22 %
    Return on average shareholders’ equity   13.69 %   14.84 %   13.84 %   11.36 %   14.67 %
    NIM   4.29 %   4.24 %   4.16 %   4.06 %   4.15 %
    NIMTE*   4.35 %   4.30 %   4.22 %   4.12 %   4.21 %
    Efficiency ratio   66.11 %   68.78 %   68.93 %   72.21 %   66.64 %
    Total shareholders’ equity/total assets   8.78 %   8.76 %   8.67 %   8.36 %   8.07 %
    Tangible common equity/tangible assets*   8.28 %   8.24 %   8.14 %   7.84 %   7.54 %
    Book value per share $47.27   $44.93   $43.52   $42.57   $40.60  
    Tangible book value per share* $44.36   $42.03   $40.61   $39.68   $37.72  
    Dividends per share $0.62   $0.61   $0.61   $0.60   $0.60  
    Common stock outstanding   5,501,943     5,501,562     5,499,578     5,513,459     5,548,436  


    *     References to NIMTE, tangible book value per share, and tangible common equity to tangible common assets, (all of which exclude intangible assets) represent non-GAAP financial measures. Management has presented these non-GAAP measurements in this earnings release, because it believes these measures are useful to investors. See the end of this release for reconciliations of these non-GAAP financial measures to GAAP financial measures.

    Alaska Economic Update
    (Note: sources for information included in this section are included on page 12.)

    The Alaska Department of Labor (“DOL”) has reported Alaska’s seasonally adjusted unemployment rate in August of 2024 was 4.6% compared to the U.S. rate of 4.2%. The total number of payroll jobs in Alaska, not including uniformed military, increased 1.8% or 6,400 jobs between August of 2023 and August of 2024.

    According to the DOL, the Construction sector had the largest growth in new jobs through August compared to the prior year. The Construction sector added 2,600 positions for a year over year growth rate of 12.9% between August of 2023 and 2024. The larger Health Care sector grew by 2,000 jobs for an annual growth rate of 4.9% over the same period. The Oil & Gas sector increased by 6.5% or 500 new direct jobs. Professional and Business Services added 1,000 jobs year over year through August of 2024, up 3.4%. The Government sector grew by 700 jobs for 0.9% growth, adding 500 Federal jobs and 200 Local government positions in Alaska. The only sectors to decline between August 2023 and August 2024 were Manufacturing (primarily seafood processing) shrinking 1,300 positions and Information, down 200 jobs.

    Alaska’s Gross State Product (“GSP”) in the second quarter of 2024, was estimated to be $69.8 billion in current dollars, according to the Federal Bureau of Economic Analysis (“BEA”). Alaska’s inflation adjusted “real” GSP increased 6.5% in 2023, placing Alaska fifth best of all 50 states. However, in the second quarter of 2024 Alaska decreased at an annualized rate of 1.1%, compared to the average U.S. growth rate of 3%. Alaska’s real GSP decline in the second quarter of 2024 was primarily caused by a slowdown in the Mining, Oil & Gas; and Transportation and Warehousing sectors.

    The BEA also calculated Alaska’s seasonally adjusted personal income at $55.4 billion in the second quarter of 2024. This was an annualized improvement of 4% for Alaska, compared to the national average of 5.3%.

    The monthly average price of Alaska North Slope (“ANS”) crude oil was at an annual high of $89.05 in April of 2024 and averaged $74.06 in September of this year. The Alaska Department of Revenue (“DOR”) calculated ANS crude oil production was 479 thousand barrels per day (“bpd”) in Alaska’s fiscal year ending June 30, 2023 and declined to 461 thousand bpd in Alaska’s fiscal year 2024. Starting in fiscal year 2025 it is projected to grow to 477 thousand bpd. The DOR projects the number to grow rapidly and reach 640 thousand bpd by fiscal year 2033. This is primarily a result of new production coming on-line in and around the NPR-A region west of Prudhoe Bay.

    According to the Alaska Multiple Listing Services, the average sales price of a single family home in Anchorage rose 5.2% in 2023 to $480,207, following a 7.6% increase in 2022. This was the sixth consecutive year of price increases.   In the first nine months of 2024 the average price continues to increase 6.8% to an average sale of
    $512,815.

    The average sales price for single family homes in the Matanuska Susitna Borough rose 4% in 2023 to $397,589, after increasing 9.9% in 2022. This continues a trend of average price increases for more than a decade in the region. In the first nine months of 2024 the average sales price increased 4.6% in the Matanuska Susitna Borough to $415,709. These two markets represent where the vast majority of the Bank’s residential lending activity occurs.

    The Alaska Multiple Listing Services reported a 1.2% decrease in the number of units sold in Anchorage when comparing January to September of 2023 and 2024. There were 5.4% less homes sold in the Matanuska Susitna Borough for the same nine month time period in 2024 compared to the prior year.

    Northrim Bank sponsors the Alaskanomics blog to provide news, analysis, and commentary on Alaska’s economy. Join the conversation at Alaskanomics.com, or for more information on the Alaska economy, visit: www.northrim.com and click on the “Business Banking” link and then click “Learn.” Information from our website is not incorporated into, and does not form, a part of this earnings release.

    Review of Income Statement

    Consolidated Income Statement

    In the third quarter of 2024, Northrim generated a ROAA of 1.22% and a ROAE of 13.69%, compared to 1.31% and 14.84%, respectively, in the second quarter of 2024 and 1.22% and 14.67%, respectively, in the third quarter a year ago.

    Net Interest Income/Net Interest Margin

    Net interest income increased 7% to $28.8 million in the third quarter of 2024 compared to $27.1 million in the second quarter of 2024 and increased 9% compared to $26.4 million in the third quarter of 2023. Interest expense on deposits increased to $10.1 million in the third quarter of 2024 compared to $9.5 million in the second quarter and $7.1 million in the third quarter of 2023.

    NIMTE* was 4.35% in the third quarter of 2024 up from 4.30% in the preceding quarter and 4.21% in the third quarter a year ago. NIMTE* increased 14 basis points in the third quarter of 2024 compared to the third quarter of 2023 primarily due to a favorable change in the mix of earning-assets towards higher loan balances as a percentage of total earning-assets, higher earning-assets, and higher yields on those assets which were only partially offset by an increase in costs on interest-bearing deposits. The weighted average interest rate for new loans booked in the third quarter of 2024 was 7.24% compared to 7.90% in the second quarter of 2024 and 7.44% in the third quarter a year ago. The yield on the investment portfolio in the third quarter of 2024 decreased slightly to 2.80% from 2.82% in the second quarter of 2024 and increased from 2.43% in the third quarter of 2023. “We continue to see the benefit of new loan volume and repricing outweigh the modest increase in deposit costs in the third quarter of 2024,” said Jed Ballard, Chief Financial Officer. Northrim’s NIMTE* continues to remain above the peer average of 3.13% posted by the S&P U.S. Small Cap Bank Index with total market capitalization between $250 million and $1 billion as of June 30, 2024.

    Provision for Credit Losses

    Northrim recorded a provision for credit losses of $2.1 million in the third quarter of 2024, which was comprised of of a $325,000 provision for credit losses on unfunded commitments and a provision for credit losses on loans of $1.7 million. The provision for unfunded commitments was primarily due to an increase in unfunded commitments, as well as an increase in estimated loss rates due to changes in mix and management’s assessment of economic conditions. The increase to the provision for credit losses on loans was primarily a result of loan growth, as well as an increase in the provision for loans individually evaluated and an increase in estimated loss rates. This compares to a benefit to the provision for credit losses of $120,000 in the second quarter of 2024, and provision for credit losses of $1.2 million in the third quarter a year ago.

    Nonperforming loans, net of government guarantees, increased slightly during the quarter to $5.0 million at September 30, 2024, compared to $4.8 million at June 30, 2024, and decreased from $5.1 million at September 30, 2023.

    The allowance for credit losses on loans was 394% of nonperforming loans, net of government guarantees, at the end of the third quarter of 2024, compared to 365% three months earlier and 326% a year ago.

    Other Operating Income

    In addition to home mortgage lending, Northrim has interests in other businesses that complement its core community banking activities, including purchased receivables financing and wealth management. Other operating income contributed $11.6 million, or 29% of total third quarter 2024 revenues, as compared to $9.6 million, or 26% of revenues in the second quarter of 2024, and $8.0 million, or 23% of revenues in the third quarter of 2023. The increase in other operating income in the third quarter of 2024 as compared to the preceding quarter and the third quarter of 2023 was primarily the result of an increase in mortgage banking income due to a higher volume of mortgage activity. See further discussion regarding mortgage activity during the second quarter contained under “Home Mortgage Lending” below. The fair market value of marketable equity securities increased $576,000 in the third quarter of 2024 compared to a decrease of $60,000 in the prior quarter and an increase of $12,000 in the third quarter of 2023. The increase in other operating income in the third quarter of 2024 as compared to the third quarter a year ago was due primarily to an increase in mortgage banking income as a result of higher volume of mortgage activity due to our expansion in Arizona, Colorado, and the Pacific Northwest markets, as well as an increase in fair value of marketable equity securities.

    Other Operating Expenses

    Operating expenses were $26.7 million in the third quarter of 2024, compared to $25.2 million in the second quarter of 2024, and $22.9 million in the third quarter of 2023. The increase in other operating expenses in the third quarter of 2024 compared to the second quarter of 2024 was primarily due to an increase in salaries and other personnel expense, including $653,000 in mortgage commissions expense due to higher mortgage volume and a $979,000 increase in profit share expense, which was partially offset by a $836,000 decrease in medical claims expense. The increase in other operating expenses in the third quarter of 2024 compared to a year ago was primarily due to an increase in salaries and other personnel expense, as well as an increase in OREO expense due to a gain on sale recorded in the third quarter of 2023 for proceeds received related to a government guarantee on an OREO property sold in December 2022.

    Income Tax Provision

    In the third quarter of 2024, Northrim recorded $2.8 million in state and federal income tax expense for an effective tax rate of 24.2%, compared to $2.5 million, or 21.9% in the second quarter of 2024 and $1.9 million, or 18.4% in the third quarter a year ago. The increase in the tax rate in the third quarter of 2024 as compared to the third quarter of 2023 is primarily the result of a decrease in tax credits and tax exempt interest income as a percentage of pre-tax income in 2024 as compared to 2023.

    Community Banking

    In the most recent deposit market share data from the FDIC, Northrim’s deposit market share in Alaska increased to 15.66% of Alaska’s total deposits as of June 30, 2024 compared to 15.04% of Alaska’s total deposits as of June 30, 2023. This represents 62 basis points of growth in market share percentage for Northrim during that period while, according to the FDIC, the total deposits in Alaska were up 2.3% during the same period. Northrim opened a branch in Kodiak in the first quarter of 2023, a loan production office in Homer in the second quarter of 2023, a permanent branch in Nome in the third quarter of 2023, and a branch in Homer in the first quarter of 2024. See below for further discussion regarding the Company’s deposit movement for the quarter.

    Northrim is committed to meeting the needs of the diverse communities in which it operates. As a testament to that support, the Bank has branches in four regions of Alaska identified by the Federal Reserve as ‘distressed or underserved non-metropolitan middle-income geographies’.

    Net interest income in the Community Banking segment totaled $25.9 million in the third quarter of 2024, compared to $24.3 million in the second quarter of 2024 and $24.1 million in the third quarter of 2023. Net interest income increased 7% in the third quarter of 2024 as compared to the second quarter of 2024 mostly due to higher interest income on loans. This increase was only partially offset by higher interest expense on deposits and borrowings and lower interest income on portfolio investments.

    Other operating expenses in the Community Banking segment totaled $19.1 million in the third quarter of 2024, up $588,000 or 3% from $18.5 million in the second quarter of 2024, and up $2.1 million or 13% from $16.9 million in the third quarter a year ago. The increase in the third quarter of 2024 as compared to the prior quarter was mostly due to an increases in salaries and other personnel expense, marketing expense, and professional fees. The increase in the third quarter of 2024 as compared to the third quarter a year ago was primarily due to an increase in OREO expense due to a gain on sale recorded in the third quarter of 2023 for proceeds received related to a government guarantee on an OREO property sold in December 2022, as well as increases in salaries and other personnel expense and marketing expense.

    The following tables provide highlights of the Community Banking segment of Northrim:

      Three Months Ended
      September   March 31, December September
    (Dollars in thousands, except per share data) 30, 2024 June 30, 2024   2024   31, 2023   30, 2023
    Net interest income $25,901 $24,278 $24,215 $24,456 $24,050
    (Benefit) provision for credit losses 1,492 (184)   197   885   1,190
    Other operating income 4,540 3,693   3,813   4,048   3,597
    Other operating expense 19,085 18,497   17,552   18,516   16,946
    Income before provision for income taxes 9,864 9,658   10,279   9,103   9,511
    Provision for income taxes 2,316 2,004   2,242   1,941   1,709
    Net income $7,548 $7,654 $8,037 $7,162 $7,802
    Weighted average shares outstanding, diluted 5,583,055 5,558,580   5,554,930   5,578,491   5,624,906
    Diluted earnings per share $1.34 $1.37 $1.45 $1.29 $1.39
      Year-to-date
    (Dollars in thousands, except per share data) September
    30, 2024    		 September
    30, 2023
    Net interest income $ 74,394 $ 71,502
    Provision for credit losses   1,505   2,957
    Other operating income   12,046   9,564
    Other operating expense   55,134   52,168
    Income before provision for income taxes   29,801   25,941
    Provision for income taxes   6,562   5,216
    Net income Community Banking segment $ 23,239 $ 20,725
    Weighted average shares outstanding, diluted   5,574,135   5,688,687
    Diluted earnings per share $ 4.16 $ 3.64

    Home Mortgage Lending

    During the third quarter of 2024, mortgage loans funded for sale increased to $210.0 million, compared to $152.3 million in the second quarter of 2024, and $131.9 million in the third quarter of 2023.

    During the third quarter of 2024, the Bank purchased Residential Mortgage-originated loans of $38.1 million of which roughly two-thirds were jumbos and one-third were mortgages for second homes, with a weighted average interest rate of 6.59%, up from $29.2 million and 6.82% in the second quarter of 2024, and up from $21.6 million and 6.60% in the third quarter of 2023. The increase in mortgage loans funded for investment has increased net interest income in the Home Mortgage Lending segment. Net interest income contributed $2.9 million to total revenue in the third quarter of 2024, up from $2.8 million in the prior quarter, and up from $2.3 million in the third quarter a year ago.

    The Arizona, Colorado, and the Pacific Northwest mortgage expansion markets were responsible for 20% of Residential Mortgage’s $248 million total production in the third quarter of 2024, 22% of $182 million total production in the second quarter of 2024, and 8% of $153 million total production in the third quarter of 2023.

    The net change in fair value of mortgage servicing rights decreased mortgage banking income by $968,000 during the third quarter of 2024 compared to a decrease of $81,000 for the second quarter of 2024 and a decrease of $310,000 for the third quarter of 2023. Mortgage servicing revenue increased to $2.6 million in the third quarter of 2024 from $2.2 million in the prior quarter and from $2.4 million in the third quarter of 2023 due to an increase in production of Alaska Housing Finance Corporation (AHFC) mortgages, which contribute to servicing revenues at origination. In the third quarter of 2024, the Company’s servicing portfolio increased $64.8 million, which included $87.3 million in new mortgage loans, net of amortization and payoffs of $22.5 million as compared to a net increase of $41.8 million in the second quarter of 2024 and $58.2 million in the third quarter of 2023.

    As of September 30, 2024, Northrim serviced 4,187 loans in its $1.17 billion home-mortgage-servicing portfolio, a 6% increase compared to the $1.10 billion serviced as of the end of the second quarter of 2024, and a 19% increase from the $982.1 million serviced a year ago.

    The following tables provide highlights of the Home Mortgage Lending segment of Northrim:

      Three Months Ended  
        September       March 31,     December     September  
    (Dollars in thousands, except per share data)   30, 2024   June 30, 2024   2024     31, 2023     30, 2023  
    Mortgage commitments $77,591   $88,006   $56,208   $22,926   $50,128  
    Mortgage loans funded for sale $209,960   $152,339   $84,324   $79,742   $131,863  
    Mortgage loans funded for investment   38,087     29,175     17,403     27,114     21,585  
    Total mortgage loans funded $248,047   $181,514   $101,727   $106,856   $153,448  
    Mortgage loan refinances to total fundings   6 %   6 %   4 %   4 %   5 %
    Mortgage loans serviced for others $1,166,585   $1,101,800   $1,060,007   $1,044,516   $982,098  
    Net realized gains on mortgage loans sold $5,079   $3,188   $1,980   $1,462   $2,491  
    Change in fair value of mortgage loan commitments, net   60     391     386     (296 )   (289 )
    Total production revenue   5,139     3,579     2,366     1,166     2,202  
    Mortgage servicing revenue   2,583     2,164     1,561     2,180     2,396  
    Change in fair value of mortgage servicing rights:                              
    Due to changes in model inputs of assumptions1   (566 )   239     289     (707 )   —  
    Other2   (402 )   (320 )   (314 )   (301 )   (310 )
    Total mortgage servicing revenue, net   1,615     2,083     1,536     1,172     2,086  
    Other mortgage banking revenue   293     222     129     99     117  
    Total mortgage banking income $7,047   $5,884   $4,031   $2,437   $4,405  
               
    Net interest income $2,941   $2,775   $2,232   $2,276   $2,300  
    Provision (benefit) for credit losses   571     64     (48 )   —     —  
    Mortgage banking income   7,047     5,884     4,031     2,437     4,405  
    Other operating expense   7,643     6,697     6,086     5,477     5,951  
    Income (loss) before provision for income taxes   1,774     1,898     225     (764 )   754  
    Provision (benefit) for income taxes   497     532     63     (215 )   182  
    Net income (loss) $1,277   $1,366   $162     ($549 ) $572  
    Weighted average shares outstanding, diluted   5,583,055     5,558,580     5,554,930     5,578,491     5,624,906  
    Diluted earnings per share $0.23   $0.25   $0.03     ($0.10 ) $0.09  

    1Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
    2Represents changes due to collection/realization of expected cash flows over time.

      Year-to-date
    (Dollars in thousands, except per share data) September
    30, 2024    		 September
    30, 2023
    Mortgage loans funded for sale $446,623   $296,412  
    Mortgage loans funded for investment   84,665     119,144  
    Total mortgage loans funded $531,288   $415,556  
    Mortgage loan refinances to total fundings   6 %   5 %
             
    Net realized gains on mortgage loans sold $10,247   $6,366  
    Change in fair value of mortgage loan commitments, net   837     194  
    Total production revenue   11,084     6,560  
    Mortgage servicing revenue   6,308     5,188  
    Change in fair value of mortgage servicing rights:            
    Due to changes in model inputs of assumptions1   (38 )   (215 )
    Other2   (1,036 )   (1,464 )
    Total mortgage servicing revenue, net   5,234     3,509  
    Other mortgage banking revenue   644     257  
    Total mortgage banking income $16,962   $10,326  
    Net interest income $7,948   $5,022  
    Provision for credit losses   587     —  
    Mortgage banking income   16,962     10,326  
    Other operating expense   20,426     18,020  
    Income before provision for income taxes   3,897     (2,672 )
    Provision for income taxes   1,092     (728 )
    Net (loss) income Home Mortgage Lending segment $2,805     ($1,944 )
    Weighted average shares outstanding, diluted   5,574,135     5,688,687  
    Diluted (loss) earnings per share $0.51     ($0.34 )


    1    Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
    2Represents changes due to collection/realization of expected cash flows over time.

    Balance Sheet Review

    Northrim’s total assets were $2.96 billion at September 30, 2024, up 5% from the preceding quarter and up 6% from a year ago. Northrim’s loan-to-deposit ratio was 76% at September 30, 2024, consistent with 76% at June 30, 2024,
    and up from 71% at September 30, 2023.

    At September 30, 2024, our liquid assets, investments, and loans maturing within one year were $1.07 billion and our funds available for borrowing under our existing lines of credit were $641.7 million. Given these sources of liquidity and our expectations for customer demands for cash and for our operating cash needs, we believe our sources of liquidity to be sufficient for the foreseeable future.

    Average interest-earning assets were $2.67 billion in the third quarter of 2024, up 4% from $2.57 billion in the second quarter of 2024 and up 6% from $2.52 billion in the third quarter a year ago. The average yield on interest- earning assets was 5.92% in the third quarter of 2024, up from 5.83% in the preceding quarter and 5.48% in the third quarter a year ago.

    Average investment securities decreased to $619.0 million in the third quarter of 2024, compared to $640.0 million in the second quarter of 2024 and $715.8 million in the third quarter a year ago. The average net tax equivalent yield on the securities portfolio was 2.80% for the third quarter of 2024, down from 2.82% in the preceding quarter

    and up from 2.43% in the year ago quarter. The average estimated duration of the investment portfolio at September 30, 2024, was approximately 2.3 years compared to approximately 2.8 years at September 30, 2023. As of September 30, 2024, $105.1 million of available for sale securities with a weighted average yield of 0.61% are scheduled to mature in the next six months, $73.0 million with a weighted average yield of 2.48% are scheduled to mature in six months to one year, and $177.8 million with a weighted average yield of 1.31% are scheduled to mature in the following year, representing a total of $355.9 million or 13% of earning assets that are scheduled to mature in the next 24 months.

    Total unrealized losses, net of tax, on available for sale securities decreased by $7.6 million in the third quarter of 2024 resulting in total unrealized loss, net of tax, of $7.6 million compared to $15.2 million at June 30, 2024, and $26.5 million a year ago. The average maturity of the available for sale securities with the majority of the unrealized loss is 1.3 years. Total unrealized losses on held to maturity securities were $2.1 million at September 30, 2024, compared to $3.0 million at June 30, 2024, and $4.5 million a year ago.

    Average interest bearing deposits in other banks increased to $28.4 million in the third quarter of 2024 from $17.4 million in the second quarter of 2024 and decreased from $42.3 million in the third quarter of 2023, as deposit balances increased and cash was used to fund the loan growth and provide liquidity.

    Portfolio loans were $2.01 billion at September 30, 2024, up 7% from the preceding quarter and up 17% from a year ago. Portfolio loans, excluding consumer mortgage loans, were $1.76 billion at September 30, 2024, up $105.2 million or 6% from the preceding quarter and up 14% from a year ago. This increase was diversified throughout the loan portfolio including commercial real estate nonowner-occupied and multi-family loans increasing by $33.2 million, construction loans increasing by $31.4 million, and commercial real estate owner-occupied loans increasing $29.0 million from the preceding quarter. Average portfolio loans in the third quarter of 2024 were $1.93 billion, which was up 5% from the preceding quarter and up 14% from a year ago. Yields on average portfolio loans in the third quarter of 2024 increased to 6.91% from 6.87% in the second quarter and from 6.61% in the third quarter of 2023. The increase in the yield on portfolio loans in the third quarter of 2024 compared to the second quarter of 2024 and the third quarter a year ago is primarily due to loan repricing due to the increases in interest rates and new loans booked at higher rates due to changes in the interest rate environment. The yield on new portfolio loans, excluding consumer mortgage loans, was 7.43% in the third quarter of 2024 as compared to 8.26% in the second quarter of 2024 and 7.75% in the third quarter of 2023. The drop in yields on new loan production was largely related to the large volume of new commercial real estate versus commercial loans, as noted above, as well as slightly better credit quality of the loans originated in the third quarter of 2024.

    Alaskans continue to account for substantially all of Northrim’s deposit base. Total deposits were $2.63 billion at September 30, 2024, up 7% from $2.46 billion at June 30, 2024, and up 8% from $2.43 billion a year ago. “The increase in deposits in the third quarter of 2024 were consistent with our customers’ business cycles and a result of continued acquisition of new relationships,” said Ballard. At September 30, 2024, 73% of total deposits were held in business accounts and 27% of deposit balances were held in consumer accounts. Northrim had approximately 34,000 deposit customers with an average balance of $48,000 as of September 30, 2024. Northrim had 22 customers with balances over $10 million as of September 30, 2024, which accounted for $978.4 million, or 38%, of total deposits. Demand deposits increased by 8% from the prior quarter and decreased slightly year-over-year to
    $763.6 million at September 30, 2024. Demand deposits remained consistent at 29% of total deposits at both September 30, 2024 and June 30, 2024 down from 31% of total deposits at September 30, 2023. Average interest- bearing deposits were up 4% to $1.80 billion with an average cost of 2.24% in the third quarter of 2024, compared to $1.73 billion and an average cost of 2.21% in the second quarter of 2024, and up 11% compared to $1.62 billion and an average cost of 1.75% in the third quarter of 2023. Uninsured deposits totaled $1.12 billion or 43% of total deposits as of September 30, 2024 compared to $1.1 billion or 46% of total deposits as of December 31, 2022. Since interest rates began increasing in 2022, Northrim has taken a proactive, targeted approach to increase deposit rates.

    Shareholders’ equity was $260.1 million, or $47.27 book value per share, at September 30, 2024, compared to $247.2 million, or $44.93 book value per share, at June 30, 2024 and $225.3 million, or $40.60 book value per share, a year ago. Tangible book value per share* was $44.36 at September 30, 2024, compared to $42.03 at June

    30, 2024, and $37.72 per share a year ago. The increase in shareholders’ equity in the third quarter of 2024 as compared to the second quarter of 2024 was largely the result of earnings of $8.8 million and an increase in the fair value of the available for sale securities portfolio, which increased $7.6 million, net of tax, which were only partially offset by dividends paid of $3.4 million. The Company did not repurchase any shares of common stock in the third quarter of 2024 and has 110,000 shares remaining under the current share repurchase program as of September 30, 2024. Tangible common equity to tangible assets* was 8.28% as of September 30, 2024, compared to 8.24% as of June 30, 2024 and 7.54% as of September 30, 2023. Northrim continues to maintain capital levels in excess of the requirements to be categorized as “well-capitalized” with Tier 1 Capital to Risk Adjusted Assets of 11.53% at September 30, 2024, compared to 11.68% at June 30, 2024, and 11.67% at September 30, 2023.

    Asset Quality

    Northrim believes it has a consistent lending approach throughout economic cycles, which emphasizes appropriate loan-to-value ratios, adequate debt coverage ratios, and competent management.

    Nonperforming assets (“NPAs”) net of government guarantees were $5.3 million at September 30, 2024, up from $5.1 million at June 30, 2024 and $5.2 million a year ago. Of the NPAs at September 30, 2024, $3.0 million, or 61%, are nonaccrual loans related to three commercial relationships.

    Net adversely classified loans were $6.5 million at September 30, 2024, as compared to $7.1 million at June 30, 2024, and $7.3 million a year ago. Adversely classified loans are loans that Northrim has classified as substandard, doubtful, and loss, net of government guarantees. Net loan recoveries were $96,000 in the third quarter of 2024, compared to net loan recoveries of $26,000 in the second quarter of 2024, and net loan recoveries of $96,000 in the third quarter of 2023. Additionally, Northrim had 11 loan modifications to borrowers experiencing financial difficulty totaling $3.1 million, net of government guarantees in the third quarter of 2024.

    Northrim had $127.4 million, or 6% of portfolio loans, in the Healthcare sector, $110.4 million, or 5% of portfolio loans, in the Tourism sector, $96.6 million, or 5% of portfolio loans, in the Accommodations sector, $83.6 million, or 4% of portfolio loans, in the Fishing sector, $70.6 million, or 3% of portfolio loans, in the Aviation (non-tourism) sector, $67.7 million, or 3% of portfolio loans, in the Retail sector, and $53.1 million, or 3% in the Restaurants and Breweries sector as of September 30, 2024.

    Northrim estimates that $82.0 million, or approximately 4% of portfolio loans, had direct exposure to the oil and gas industry in Alaska, as of September 30, 2024, and $1.6 million of these loans are adversely classified. As of September 30, 2024, Northrim has an additional $29.7 million in unfunded commitments to companies with direct exposure to the oil and gas industry in Alaska, and no unfunded commitments on adversely classified loans. Northrim defines direct exposure to the oil and gas sector as loans to borrowers that provide oilfield services and other companies that have been identified as significantly reliant upon activity in Alaska related to the oil and gas industry, such as lodging, equipment rental, transportation and other logistics services specific to this industry.

    About Northrim BanCorp

    Northrim BanCorp, Inc. is the parent company of Northrim Bank, an Alaska-based community bank with 20 branches in Anchorage, Eagle River, the Matanuska Valley, the Kenai Peninsula, Juneau, Fairbanks, Nome, Kodiak, Ketchikan, and Sitka, serving 90% of Alaska’s population; and an asset-based lending division in Washington; and a wholly-owned mortgage brokerage company, Residential Mortgage Holding Company, LLC. The Bank differentiates itself with its detailed knowledge of Alaska’s economy and its “Customer First Service” philosophy. Pacific Wealth Advisors, LLC is an affiliated company of Northrim BanCorp.

    www.northrim.com

    Forward-Looking Statement

    This release may contain “forward-looking statements” as that term is defined for purposes of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are, in effect, management’s attempt to predict future events, and thus are subject to various risks and uncertainties. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. All statements, other than statements of historical fact, regarding our financial position, business strategy, management’s plans and objectives for future operations are forward-looking statements. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect,” and “intend” and words or phrases of similar meaning, as they relate to Northrim and its management are intended to help identify forward-looking statements. Although we believe that management’s expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct. Forward-looking statements, are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include: potential further increases in interest rates; the value of securities held in our investment portfolio; the impact of the results of government initiatives on the regulatory landscape, natural resource extraction industries, and capital markets; the impact of declines in the value of commercial and residential real estate markets, high unemployment rates, inflationary pressures and slowdowns in economic growth; changes in banking regulation or actions by bank regulators; inflation, supply-chain constraints, and potential geopolitical instability, including the wars in Ukraine and the Middle East; financial stress on borrowers (consumers and businesses) as a result of higher rates or an uncertain economic environment; the general condition of, and changes in, the Alaska economy; our ability to maintain or expand our market share or net interest margin; the sufficiency of our provision for credit losses and the accuracy of the assumptions or estimates used in preparing our financial statements, including those related to current expected credit losses accounting guidance; our ability to maintain asset quality; our ability to implement our marketing and growth strategies; our ability to identify and address cyber-security risks, including security breaches, “denial of service attacks,” “hacking,” and identity theft; disease outbreaks; and our ability to execute our business plan. Further, actual results may be affected by competition on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy. In addition, there are risks inherent in the banking industry relating to collectability of loans and changes in interest rates. Many of these risks, as well as other risks that may have a material adverse impact on our operations and business, are identified in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and from time to time are disclosed in our other filings with the Securities and Exchange Commission. However, you should be aware that these factors are not an exhaustive list, and you should not assume these are the only factors that may cause our actual results to differ from our expectations. These forward- looking statements are made only as of the date of this release, and Northrim does not undertake any obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this release.

    References:

    https://www.bea.gov/

    http://almis.labor.state.ak.us/

    http://www.tax.alaska.gov/programs/oil/prevailing/ans.aspx

    http://www.tax.state.ak.us/

    www.mba.org

    https://www.alaskarealestate.com/MLSMember/RealEstateStatistics.aspx

    https://www.capitaliq.spglobal.com/web/client?auth=inherit&overridecdc=1&#markets/indexFinancials


    Income     Statement

    (Dollars in thousands, except per share data) Three Months Ended Year-t o-date
    (Unaudited) September 30, June 30, September 30, September 30, September 30,
        2024   2024     2023     2024     2023  
    Interest Income:                  
    Interest and fees on loans $34,863 $32,367   $29,097   $97,680   $79,104  
    Interest on portfolio investments   4,164   4,310     4,727     12,994     14,018  
    Interest on deposits in banks   389   232     584     1,459     2,901  
    Total interest income   39,416   36,909     34,408     112,133     96,023  
    Interest Expense:                            
    Interest expense on deposits   10,123   9,476     7,138     28,779     17,835  
    Interest expense on borrowings   451   380     920     1,012     1,664  
    Total interest expense   10,574   9,856     8,058     29,791     19,499  
    Net interest income   28,842   27,053     26,350     82,342     76,524  
    (Benefit) provision for credit losses   2,063   (120 )   1,190     2,092     2,957  
    Net interest income after provision for credit losses   26,779   27,173     25,160     80,250     73,567  
    Other Operating Income:                             
    Mortgage banking income   7,047   5,884     4,405     16,962     10,326  
    Bankcard fees   1,196   1,105     1,022     3,218     2,916  
    Purchased receivable income   1,033   1,242     1,180     3,620     3,175  
    Service charges on deposit accounts   605   572     550     1,726     1,512  
    Unrealized gain (loss) on marketable equity securities   576   (60 )   12     830     (445 )
    Other income   1,130   834     833     2,652     2,406  
    Total other operating income   11,587   9,577     8,002     29,008     19,890  
    Other Operating Expense:                            
    Salaries and other personnel expense   17,549   16,627     15,657     49,593     46,324  
    Data processing expense   2,618   2,601     2,589     7,878     7,321  
    Occupancy expense   1,911   1,843     1,857     5,716     5,611  
    Professional and outside services   903   726     803     2,384     2,326  
    Marketing expense   860   690     499     2,063     1,996  
    Insurance expense   596   692     640     2,067     1,844  
    OREO expense, net rental income and gains on sale   2   2     (784 )   (387 )   (766 )
    Intangible asset amortization expense   —   —     4     —     11  
    Other operating expense   2,289   2,013     1,631     6,246     5,521  
    Total other operating expense   26,728   25,194     22,896     75,560     70,188  
                                 
    Income before provision for income taxes   11,638   11,556     10,266     33,698     23,269  
    Provision for income taxes   2,813   2,536     1,892     7,654     4,488  
    Net income $8,825 $9,020   $8,374   $26,044   $18,781  
    Basic EPS $1.60 $1.64   $1.50   $4.73   $3.34  
    Diluted EPS $1.57 $1.62   $1.48   $4.67   $3.30  
    Weighted average shares outstanding, basic   5,501,943   5,500,588     5,569,238     5,500,703     5,630,948  
    Weighted average shares outstanding, diluted   5,583,055   5,558,580     5,624,906     5,574,135     5,688,687  
    Balance Sheet
    (Dollars in thousands)
    (Unaudited)    		 September 30, June 30, September 30,
        2024     2024     2023  
    Assets:            
    Cash and due from banks $42,805   $33,364   $31,276  
    Interest bearing deposits in other banks   60,071     21,058     79,952  
    Investment securities available for sale, at fair value   545,210     584,964     652,150  
    Investment securities held to maturity   36,750     36,750     36,750  
    Marketable equity securities, at fair value   12,957     12,381     10,615  
    Investment in Federal Home Loan Bank stock   4,318     4,929     6,334  
    Loans held for sale   97,937     85,926     63,151  
                       
    Portfolio loans   2,007,565     1,875,907     1,720,091  
    Allowance for credit losses, loans   (19,528 )   (17,694 )   (16,491 )
    Net portfolio loans   1,988,037     1,858,213     1,703,600  
    Purchased receivables, net   23,564     25,722     34,578  
    Mortgage servicing rights, at fair value   21,570     21,077     19,396  
    Other real estate owned, net   —     —     150  
    Premises and equipment, net   39,625     40,393     40,920  
    Lease right of use asset   7,616     8,244     9,673  
    Goodwill and intangible assets   15,967     15,967     15,973  
    Other assets   66,965     72,680     85,671  
    Total assets $2,963,392   $2,821,668   $2,790,189  
    Liabilities:            
    Demand deposits $763,595   $704,471   $764,647  
    Interest-bearing demand   979,238     906,010     875,814  
    Savings deposits   245,043     238,156     265,799  
    Money market deposits   201,821     195,159     230,814  
    Time deposits   435,870     420,010     290,856  
    Total deposits   2,625,567     2,463,806     2,427,930  
    Other borrowings   13,354     43,961     63,781  
    Junior subordinated debentures   10,310     10,310     10,310  
    Lease liability   7,635     8,269     9,673  
    Other liabilities   46,476     48,122     53,236  
    Total liabilities   2,703,342     2,574,468     2,564,930  
    Shareholders’ Equity:                  
    Total shareholders’ equity   260,050     247,200     225,259  
    Total liabilities and shareholders’ equity $2,963,392   $2,821,668   $2,790,189  

    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Composition of Portfolio Loans

        September 30,
    2024    		 June 30, 2024 March 31, 2024 December 31,
    2023    		 September 30,
    2023
      Balance % of
    total    		 Balance % of
    total    		 Balance % of
    total    		 Balance % of
    total    		 Balance % of
    total
    Commercial loans $492,414   24 % $495,781   26 % $475,220   26 % $486,057   27 % $492,145   28 %
    Commercial real estate:                    
    Owner occupied properties   412,827   20 %   383,832   20 %   372,507   20 %   368,357   20 %   359,019   21 %
    Nonowner occupied and                    
    multifamily properties   584,302   31 %   551,130   30 %   529,904   30 %   519,115   30 %   509,939   30 %
    Residential real estate:                    
    1-4 family properties                    
    secured by first liens   248,514   12 %   222,026   12 %   218,552   12 %   203,534   11 %   180,719   10 %
    1-4 family properties                    
    secured by junior liens &                    
    revolving secured by first liens   45,262   2 %   41,258   2 %   35,460   2 %   33,783   2 %   27,342   2 %
    1-4 family construction   39,794   2 %   29,510   2 %   27,751   2 %   31,239   2 %   32,374   2 %
    Construction loans   185,362   9 %   154,009   8 %   153,537   8 %   149,788   8 %   120,909   7 %
    Consumer loans   7,836   — %   6,679   — %   6,444   — %   6,180   — %   5,930   — %
    Subtotal   2,016,311       1,884,225       1,819,375       1,798,053       1,728,377    
    Unearned loan fees, net   (8,746 )     (8,318 )     (8,240 )     (8,556 )     (8,286 )  
    Total portfolio loans $2,007,565     $1,875,907     $1,811,135     $1,789,497     $1,720,091    


    Composition     of Deposits

      September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023
      Balance % of
    total    		 Balance % of
    total    		 Balance % of
    total    		 Balance % of
    total    		 Balance % of
    total
    Demand deposits $763,595 29 % $704,471 29 % $714,244 29 % $749,683 31 % $764,647 31 %
    Interest-bearing demand   979,238 37 %   906,010 36 %   889,581 37 %   927,291 37 %   875,814 36 %
    Savings deposits   245,043 9 %   238,156 10 %   246,902 10 %   255,338 10 %   265,799 11 %
    Money market deposits   201,821 8 %   195,159 8 %   209,785 9 %   221,492 9 %   230,814 10 %
    Time deposits   435,870 17 %   420,010 17 %   373,571 15 %   331,251 13 %   290,856 12 %
    Total deposits $2,625,567   $2,463,806   $2,434,083   $2,485,055   $2,427,930  

    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Asset Quality   

        September 30,
    2024     		   June 30,
    2024    		   September 30,
    2023    		  
    Nonaccrual loans $4,944   $4,830   $6,492  
    Loans 90 days past due and accruing   17   17   28  
    Total nonperforming loans   4,961   4,847   6,520  
    Nonperforming loans guaranteed by government   —   —   (1,455)  
    Net nonperforming loans   4,961   4,847   5,065  
    Other real estate owned —   —   150  
    Repossessed assets 297   297   —  
    Net nonperforming assets $5,258   $5,144   $5,215  
    Nonperforming loans, net of government guarantees / portfolio loans   0.25 %  0.26 % 0.29 %
    Nonperforming loans, net of government guarantees / portfolio loans, net of government guarantees   0.26 % 0.28 % 0.31 %
    Nonperforming assets, net of government guarantees / total assets   0.18 % 0.18 %  0.19 %
    Nonperforming assets, net of government guarantees / total assets net of government guarantees   0.19 % 0.19 %  0.19 %
    Adversely classified loans, net of government guarantees $6,503   $7,068   $7,250  
    Special mention loans, net of government guarantees $9,641   $8,902   $5,457  
    Loans 30-89 days past due and accruing, net of government guarantees / portfolio loans   0.08 % 0.03 % — % 
    Loans 30-89 days past due and accruing, net of government guarantees / portfolio loans, net of government guarantees   0.09 % 0.04 %  — %
    Allowance for credit losses / portfolio loans   0.97 %  0.94 % 0.96 %
    Allowance for credit losses / portfolio loans, net of government guarantees   1.04 %  1.01 %  1.02 %
    Allowance for credit losses / nonperforming loans, net of government guarantees   394 % 365 %  326 %
    Gross loan charge-offs for the quarter $15   $—   $91  
    Gross loan recoveries for the quarter   ($111)   ($26)   ($187)  
    Net loan (recoveries) charge-offs for the quarter   ($96)   ($26)   ($96)  
    Net loan charge-offs (recoveries) year-to-date   ($164)   ($68)   ($134)  
    Net loan charge-offs (recoveries) for the quarter / average loans, for the quarter   —  %  —  %  (0.01) % 
    Net loan charge-offs (recoveries) year-to-date / average loans, year-to-date annualized   (0.01) %  (0.01)  %  (0.01) % 
           

    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Average Balances, Yields, and Rates                

      Three Months Ended
      September 30, 2024   June 30, 2024   September 30, 2023  
      Average Balance Average
    Tax
    Equivalent
    Yield/Rate    		 Average
    Balance    		 Average
    Tax
    Equivalent
    Yield/Rate    		 Average
    Balance    		 Average
    Tax
    Equivalent
    Yield/Rate
    Assets            
    Interest bearing deposits in other banks $ 28,409   5.28 % $ 17,352   5.27 % $ 42,273   5.39 %
    Portfolio investments   619,012   2.80 %   639,980   2.82 %   715,767   2.43 %
    Loans held for sale   93,689   6.20 %   65,102   6.08 %   62,350   6.34 %
    Portfolio loans   1,933,181   6.91 %   1,845,832   6.87 %   1,695,736   6.61 %
    Total interest-earning assets   2,674,291   5.92 %   2,568,266   5.83 %   2,516,126   5.48 %
    Nonearning assets   196,266       204,509       205,770    
    Total assets $ 2,870,557     $ 2,772,775     $ 2,721,896    

    Liabilities and Shareholders’ Equity

    		            
    Interest-bearing deposits $ 1,796,107   2.24 % $ 1,725,013   2.21 % $ 1,619,478   1.75 %
    Borrowings   43,555   4.07 %   38,390   3.92 %   76,681   4.73 %
    Total interest-bearing liabilities   1,839,662   2.29 %   1,763,403   2.25 %   1,696,159   1.88 %
    Noninterest-bearing demand deposits   722,000       706,339       747,147    
    Other liabilities   52,387       58,549       52,078    
    Shareholders’ equity   256,508       244,484       226,512    
    Total liabilities and shareholders’ equity $ 2,870,557     $ 2,772,775     $ 2,721,896    
    Net spread   3.63 %   3.58 %   3.60 %
    NIM   4.29 %   4.24 %   4.15 %
    NIMTE*   4.35 %   4.30 %   4.21 %
    Cost of funds   1.64 %   1.60 %   1.31 %
    Average portfolio loans to average            
    interest-earning assets   72.29 %     71.87 %     67.39 %  
    Average portfolio loans to average total deposits   76.77 %     75.92 %     71.65 %  
    Average non-interest deposits to average            
    total deposits   28.67 %     29.05 %     31.57 %  
    Average interest-earning assets to average            
    interest-bearing liabilities   145.37 %     145.64 %     148.34 %  

    Additional Financial Information
    (Dollars in thousands) (Unaudited)

    Average Balances, Yields, and Rates        

      Year-to-date
      September 30, 2024   September 30, 2023
      Average Average
    Tax Equivalent    		   Average Average
    Tax Equivalent
    Balance Yield/Rate   Balance Yield/Rate
    Assets          
    Interest bearing deposits in other banks $35,747   5.34 %   $79,362   4.82 %
    Portfolio investments   643,221   2.82 %     723,693   2.41 %
    Loans held for sale   63,917   6.14 %     40,433   6.06 %
    Portfolio loans   1,857,756   6.85 %     1,608,293   6.46 %
    Total interest-earning assets   2,600,641   5.81 %     2,451,781   5.30 %
    Nonearning assets   200,619         192,430    
    Total assets $2,801,260       $2,644,211    

    Liabilities and Shareholders’ Equity

    		          
    Interest-bearing deposits $1,751,179   2.20 %   $1,577,308   1.51 %
    Borrowings   35,327   3.76 %     52,075   4.23 %
    Total interest-bearing liabilities   1,786,506   2.23 %     1,629,383   1.60 %
    Noninterest-bearing demand deposits   711,197         746,251    
    Other liabilities   57,097         42,596    
    Shareholders’ equity   246,460         225,981    
    Total liabilities and shareholders’ equity $2,801,260       $2,644,211    
    Net spread   3.58 %     3.70 %
    NIM   4.23 %     4.17 %
    NIMTE*   4.29 %     4.24 %
    Cost of funds   1.59 %     1.10 %
    Average portfolio loans to average interest-earning assets   71.43 %       65.60 %  
    Average portfolio loans to average total deposits   75.45 %       69.22 %  
    Average non-interest deposits to average total deposits   28.88 %       32.12 %  
    Average interest-earning assets to average interest-bearing liabilities   145.57 %       150.47 %  

    Additional Financial Information
    (Dollars in thousands, except per share data)
    (Unaudited)

    Capital Data (At quarter end)

         
                September 30, 2024       June 30, 2024   September 30, 2023
    Book value per share           $47.27   $44.93   $40.60  
    Tangible book value per share*           $44.36   $42.03   $37.72  
    Total shareholders’ equity/total assets           8.78 %  8.76 %    8.07  %
    Tangible Common Equity/Tangible Assets*           8.28 %  8.24 %    7.54  %
    Tier 1 Capital / Risk Adjusted Assets           11.53 %  11.68 %    11.67  %
    Total Capital / Risk Adjusted Assets           12.50 %  12.58 %    12.58  %
    Tier 1 Capital / Average Assets           9.08 %  9.17 %    9.02  %
    Shares outstanding           5,501,943   5,501,562     5,548,436  
    Total unrealized loss on AFS debt securities, net of income taxes           ($7,617)   ($15,197)     ($26,526 )
    Total unrealized gain on derivatives and hedging activities, net of
    income taxes    		           $863   $1,212   $1,485  
         
    Profitability Ratios    
        September 30, 
    2024    		   June 30,
    2024    		   March 31, 
    2024    		   December 31, 2023   September 30,
    2023

    For the quarter:

    		    
    NIM         4.29%   4.24%   4.16%   4.06%     4.15%  
    NIMTE*         4.35%   4.30%   4.22%   4.12%     4.21%  
    Efficiency ratio         66.11%   68.78%   68.93%   72.21%     66.64%  
    Return on average assets         1.22%   1.31%   1.19%   0.93%     1.22%  
    Return on average equity         13.69%   14.84%   13.84%   11.36%     14.67%  
      September 30,   September 30,  
    2024   2023
    Year-to-date:      
    NIM 4.23 % 4.17 %
    NIMTE* 4.29 % 4.24 %
    Efficiency ratio 67.86 % 72.79 %
    Return on average assets 1.24 % 0.95 %
    Return on average equity 14.12 % 11.11 %


    *Non-GAAP     Financial Measures
    (Dollars and shares in thousands, except per share data) (Unaudited)

    Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although we believe these non-GAAP financial measures are frequently used by stakeholders in the evaluation of the Company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of results as reported under GAAP.

    Net interest margin on a tax equivalent basis

    Net interest margin on a tax equivalent basis (“NIMTE”) is a non-GAAP performance measurement in which interest income on non-taxable investments and loans is presented on a tax equivalent basis using a combined federal and state statutory rate of 28.43% in both 2024 and 2023. The most comparable GAAP measure is net interest margin and the following table sets forth the reconciliation of NIMTE to net interest margin for the periods indicated.

      Three Months Ended
        September 30,       March 31,     December     September 30,  
        2024   June 30, 2024   2024     31, 2023     2023  
    Net interest income $28,842   $27,053   $26,447   $26,732   $26,350  
    Divided by average interest-bearing assets   2,674,291     2,568,266     2,558,558     2,612,297     2,516,126  
    Net interest margin (“NIM”)2   4.29 %   4.24 %   4.16 %   4.06 %   4.15 %
    Net interest income $28,842   $27,053   $26,447   $26,732   $26,350  
    Plus: reduction in tax expense related to
    tax-exempt interest income    		   385     378     379     374     373  
        $29,227     $27,431     $26,826     $27,106     $26,723  
    Divided by average interest-bearing assets NIMTE2   2,674,291     2,568,266     2,558,558     2,612,297     2,516,126  
        4.35 %   4.30 %   4.22 %   4.12 %   4.21 %
      Year-to-date
      September 30, September 30,
      2024     2023  
    Net interest income $82,342   $76,524  
    Divided by average interest-bearing assets   2,600,641     2,451,781  
    Net interest margin (“NIM”)3   4.23 %   4.17 %
    Net interest income
    Plus: reduction in tax expense related to    		 $82,342   $76,524  
    tax-exempt interest income   1,142     1,202  
      $83,484   $77,726  
    Divided by average interest-bearing assets   2,600,641     2,451,781  
    NIMTE3   4.29 %   4.24 %


    2    Calculated using actual days in the quarter divided by 366 for the quarters ended in 2024 and 365 for the quarters ended in 2023, respectively.

    3Calculated using actual days in the year divided by 366 for year-to-date period in 2024 and 365 for year-to-date period in 2023, respectively.


    *Non-GAAP Financial Measures
    (Dollars and shares in thousands, except per share data)
    (Unaudited)

    Tangible Book Value Per Share

    Tangible book value per share is a non-GAAP measure defined as shareholders’ equity, less intangible assets, divided by shares outstanding. The most comparable GAAP measure is book value per share and the following table sets forth the reconciliation of tangible book value per share and book value per share for the periods indicated.

        September 30, 
    2024    		   June 30, 2024   March 31, 
    2024    		   December
    31, 2023    		   September 30,
    2023
    Total shareholders’ equity $260,050 $247,200 $239,327 $234,718 $225,259
    Divided by shares outstanding   5,502   5,502   5,500   5,513   5,548
    Book value per share $47.27 $44.93 $43.52 $42.57 $40.60
        September 30, 
    2024    		   June 30, 2024   March 31, 
    2024    		   December
    31, 2023    		   September 30,
    2023
    Total shareholders’ equity $260,050 $247,200 $239,327 $234,718 $225,259
    Less: goodwill and intangible assets   15,967   15,967   15,967   15,967   15,973
      $244,083 $231,233 $223,360 $218,751 $209,286
    Divided by shares outstanding   5,502   5,502   5,500   5,513   5,548
    Tangible book value per share $44.36 $42.03 $40.61 $39.68 $37.72


    Tangible     Common Equity to Tangible Assets

    Tangible common equity to tangible assets is a non-GAAP ratio that represents total equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets. The most comparable GAAP measure of shareholders’ equity to total assets is calculated by dividing total shareholders’ equity by total assets and the following table sets forth the reconciliation of tangible common equity to tangible assets and shareholders’ equity to total assets.

    Northrim BanCorp, Inc. September 30,     March 31,   December September 30,
      2024 June 30, 2024   2024     31, 2023     2023  
    Total shareholders’ equity $260,050 $247,200 $239,327   $234,718   $225,259  
    Total assets 2,963,392 2,821,668   2,759,560     2,807,497     2,790,189  
    Total shareholders’ equity to total assets 8.78 % 8.76 %   8.67 %   8.36 %   8.07 %
    Northrim BanCorp, Inc. September 30,   March 31, December September 30,
      2024 June 30, 2024   2024     31, 2023     2023  
    Total shareholders’ equity $260,050 $247,200 $239,327   $234,718   $225,259  
    Less: goodwill and other intangible assets, net 15,967 15,967   15,967     15,967     15,973  
    Tangible common shareholders’ equity $244,083 $231,233 $223,360   $218,751   $209,286  
    Total assets $2,963,392 $2,821,668 $2,759,560   $2,807,497   $2,790,189  
    Less: goodwill and other intangible assets, net 15,967 15,967   15,967     15,967     15,973  
    Tangible assets $2,947,425 $2,805,701 $2,743,593   $2,791,530   $2,774,216  
    Tangible common equity ratio 8.28 % 8.24 %   8.14 %   7.84 %   7.54 %

    Note Transmitted on GlobeNewswire on October 23, 2024, at 2:30 pm Alaska Standard Time.

       
    Contact: Mike Huston, President, CEO, and COO
      (907) 261-8750
      Jed Ballard, Chief Financial Officer
      (907) 261-3539

    The MIL Network –

  • MIL-OSI Economics: Transcript of Fiscal Monitor October 2024 Press Briefing

    Source: International Monetary Fund

    October 23, 2024

    SPEAKERS:
     Vitor Gaspar, Director, Fiscal Affairs Department
    Era Dabla‑Norris, Deputy Director, Fiscal Affairs Department
    Davide Furceri, Division Chief, Fiscal Affairs Department
    Tatiana Mossot, Moderator, Senior Communications Officer

    The Moderator (Ms. Mossot): Good morning, good afternoon, and good evening to our viewers around the world. I am Tatiana Mossot, the IMF Communications Department, and I will be your host for today’s press briefing on the Annual Meetings 2024 Fiscal Monitor, “Putting a Lead on Public Debt.” I am pleased to introduce this morning the Director of the Fiscal Affairs Department, Vitor Gaspar. He is joined by Era Dabla‑Norris, Deputy Director of the Fiscal Affairs Department, and Davide Furceri, who is the Division Chief of the Fiscal Affairs Department. Good morning, Vitor, Era, Davide.

    Before taking your questions, let me kick‑start our briefing by turning to you, Vitor, for your opening remarks. Vitor, the floor is yours.

    Mr. Gaspar: Thank you so much, Tatiana. Good morning, everybody. Thank you all for your interest in the Fiscal Monitor, covering fiscal policies all around the world. Deficits are high and global public debt is very high, rising, and risky. Global public debt is projected to go above $100 trillion this year. At the current pace, the global debt‑to‑GDP ratio will approach 100 percent by the end of the decade, rising above the pandemic peak. But the message of high and rising debt masks considerable diversity across countries. I will distinguish three groups.

    Public debt is higher and projected to grow faster than pre‑pandemic in about one third of the countries. This includes not only the largest economies, China and the United States, but also other large countries such as Brazil, France, Italy, South Africa, and the United Kingdom, representing in total about 70 percent of global GDP.

    In another one third of the countries, public debt is higher but projected to grow slower or decline compared with pre‑pandemic.

    In the rest of the world, debt is lower than pre‑pandemic. The Fiscal Monitor makes the case that public debt risks are elevated, and prospects are worse than they look. The Fiscal Monitor presents a novel framework, debt at risk, that illustrates risks around the most likely debt projection at various time horizons. Here we concentrate on the next 3 years.

    Our analysis shows that risks to public debt projections are tilted to the upside. In a severe adverse scenario, public debt would be 20 percentage points of GDP above the baseline projection. In most countries, fiscal plans that governments have put in place are insufficient to deliver stable or declining public debt ratios with a high degree of confidence. Additional efforts are necessary. Delaying adjustment is costly and risky. Kicking the can down the road will not do. The time to act is now. The likelihood of a soft landing has increased. Monetary policy has already started to ease in major economies. Unemployment is low in many countries. And, therefore, given these circumstances, most economies are well‑positioned to deal with fiscal adjustment.

    But it does matter how it is done. While the specific circumstances depend on—while specifics depend on country circumstances, the Fiscal Monitor and earlier IMF work provide useful pointers. For example, countries should avoid cuts in public investment. This can have severe effects on growth. Good governance and transparency improve the prospects of public understanding and social acceptance of fiscal reforms.

    Countries that are sufficiently away from debt distress should adjust in a sustained and gradual way to contain debt vulnerabilities without unnecessary adverse effect on growth and employment. However, in countries in debt distress or at high risk of debt distress, timely and frontloaded decisive action to control public debt or even debt restructuring may be necessary. Everywhere, fiscal policy, as structural policy, can make a substantial contribution to growth and jobs.

    What is the bottom line? Public debt is very high, rising, and risky. The time is now to pivot towards a gradual, sustained, and people‑focused fiscal adjustment.

    My colleagues and I are ready to answer your questions. Thank you for your attention and interest.

    The Moderator (Ms. Mossot): Thank you, Vitor. So, we will open the floor for questions. Thank you.

    Question: Good morning, given your findings on the increasing trend of spending across the political spectrum, how do governments then plan to balance the urgent need, as you stated, for investment in critical areas like healthcare and climate adaptation with the risks of what you also stated, overly optimistic debt projections?

    Ms. Dabla‑Norris: Thank you, global debt is very high, 100 trillion this year and rising. And debt risks, all the ones you mentioned, are also very elevated. So, policymakers are now facing a fundamental policy trilemma, to maintain debt sustainability, amid very high levels of debt in some countries, to accommodate the spending pressures for climate adaptation, for development goals, for population aging, and at the same time to garner support that is needed for reforms. This is why we are calling for a strategic pivot in public finances for countries to put their public finances in order. And why is this important? Because this can help create room that is needed for the priority spending. It can create fiscal space to combat future shocks that will surely come. And it can also help sustain long‑term growth.

    What this means is that for some countries, a very decisive implementation of reforms is needed now, under current plans. For many others, an additional adjustment is required that needs to be gradual but sustained. And yet for others with very high debt levels that are rising, a more frontloaded adjustment will be needed.

    These efforts, these fiscal efforts need to be people‑focused, because you want to balance the trade‑off between these measures adversely impacting growth and inequality. So, here it is important to seek to preserve public spending. It is important to seek to preserve social spending. And improving the quality, the composition, the efficiency of government spending can ensure that every dollar that is spent has maximum impact. It creates room for other types of spending without adding to debt pressures.

    Mobilizing revenues, setting up broad‑based and fair tax systems can allow countries to collect revenues to meet their spending needs. And this is particularly important in the case of emerging market and developing economies, which have considerable untapped tax potential.

    But I think it is also important to note that policymakers need to build the trust that taxpayer’s resources that are being collected will be well‑spent. This is why we are emphasizing strengthening governance, improving fiscal frameworks to build that trust that is needed for reforms.

    Ms. Mossot: We will go to this side of the room. The gentleman in the fourth row.

    Question: Thank you for doing this. I was wondering if you could please drive us a bit further to the debt‑at‑risk framework. Thank you.

    Mr. Furceri: Thank you. The debt risk is a framework that links current macroeconomic, financial, and political conditions to the entire spectrum of the future debt outcomes. So, in some sense it goes beyond the point focus that we typically provide, and it enables economic policymakers to first quantify what are the risks surrounding the debt projections and, second, what are the sources of this risk.

    The current framework estimates that in a severely adverse scenario but plausible, debt to GDP could be 20 percentage points higher in the next 3 years than currently projected. Why is this the case? This is because there are risks related to weaker growth, tighter financial conditions, as well as economic and political uncertainty.

    Another point that the Fiscal Monitor makes is that beyond this global level, the debt to risk associated to the global level, there is significant heterogeneities across countries. For example, in the case of advanced economies, our estimates of data risk are about 135 percent to GDP by 2026. This is a high level. It is lower than what we observed during the peak of the pandemic, but it is high, and it indeed is even higher than what we observed during the Global Financial Crisis.

    In the case of emerging market economies, what we see is that debt risk is increasing even compared to the pandemic and our estimate is about 88 percentage points of GDP.

    Summarizing, we think that this is a framework that could be useful to quantify a risk, identify the sources, and then make a response to this risk.

    Ms. Mossot: We will take another question in the room before going online.

    Question: Thank very much. I would like to know, Vitor, how can fiscal governance be strengthened to ensure long‑term fiscal adjustments, and while at it, what are the risks if fiscal adjustments are delayed, and how would that affect global financial markets? My second question, what lessons can be learned from countries that have successfully managed high debt levels in the past and how can transparency and accountability in public finance be improved to build trust and ensure effective debt management?

    Mr. Gaspar: Thank you so much. I will start with the timing. So I have already emphasized that delaying adjustment is costly and risky. You come from Ghana. If you allow me to place your question in the context of the sub‑Saharan Africa more broadly. I would argue that building fiscal space is not only crucial to limit public debt risks, but in many countries in sub‑Saharan Africa, it is key to enable this state to play its full role in development, which is, of course, a very important priority in the region.

    You asked about lessons from experience. I would say that fiscal adjustment should be timely. It should be decisive. It should be well‑designed. And it should be effectively communicated. And you have pointers on all of this in the Fiscal Monitor.

    You asked a very important question on governance. I would put it together with transparency and accountability. Era has already commented on why it is so important from a political viewpoint, but we have been working in this area for many years. For example, the IMF has a code on fiscal transparency that is extremely interesting. Something that also came up in a seminar that I participated in yesterday is the opportunities afforded by technology to make progress on governance. One of the speakers from India introduced this idea of three Ts that I found very inspiring. The three Ts are technology that is used to promote transparency. And if you have technology and transparency, you should expect to gain trust. And if you have trust, you have the citizens behind the government and, therefore, even willing to pay taxes, not necessarily happily, but in a quasi-voluntary way.

    Ms. Mossot: Thank you, Vitor. We have a question from Forbes, Mexico.” I have a question in countries like Mexico where fiscal consolidation is necessary. What are the biggest risks of this consolidation and how could it boost economic growth?” This is a question for Era.

    Ms. Dabla‑Norris: So, as we have said more generally, the design of fiscal adjustment is what really matters. And there is a right way to do it, and there are many wrong ways to do it.

    In the Fiscal Monitor, we illustrate how countries can undertake fiscal adjustment in a way that is what we call people focused. By that I mean, we want to trade off the negative impacts of the adjustment on growth and on inequality. And we do this by looking at different types of fiscal instruments. And different instruments have very different impacts. So, for example, progressive taxes have a very different impact on consumption and incentives to work and save as compared to other types of taxation.

    Similarly, cutting public investment has both negative short‑run effects on growth and wages, as well as more medium‑term impacts on growth. Cutting regressive energy subsidies similarly have much less of a deleterious impact on income and the consumption of the poor.

    So depending upon the country context, depending upon whether there is scope to raise revenues in non‑distortionary ways, depending upon the nature and the composition of public spending, there are ways for countries to do fiscal adjustment in a manner that is growth‑friendly and people‑friendly.

    Ms. Mossot: So, the last one we have from online is for you, Davide. “The report suggests that low‑income development countries should build tax capacity and improve spending efficiency. Given the high levels of debt and limited resources in these countries, how realistic are these recommendations without substantial international financial support?”

    Mr. Furceri: Indeed, many developing countries face significant pressing spending needs. For sustained development goals, to achieve climate goals, our estimate in the previous Fiscal Monitor suggests that the envelope of these spending needs could be as much as high as 16 percent of GDP.

    So, in this context, one important policy action is to increase revenue through revenue mobilization. Now, it is important that this revenue mobilization strategy is guided by the principle that make the tax system more efficient, more equitable, and more progressive. So policies could be, for example, to reduce informalities, broaden the tax base, increase efficiency in revenue collections, as well as progressivity.

    In the report, we also make the point that improving fiscal institutions, as also Era mentioned, is key to garner public support and to make sure that the debt system is indeed efficient.

    There is also policy on the spending side, improving the quality, the composition, and the efficiency spending to make sure that each dollar spent is well spent, is spent on the key priority areas, and maximizing it.

    Now, there are countries that will need help. The IMF as in the past years and as always has provided significant advice to countries from policy support, policy advice but also financing support. Just to give a number, over the past 4 years, about $60 billion of funding has been provided to African economies to help their challenge. And important, the IMF is also providing a variety of capacity development to support, including exactly in this area, for example, increase Public Finance Management, improve taxation, revenue mobilization, as well as a new area that are developing that are becoming more and more important, such as climate change.

    The Moderator (Ms. Mossot): Thank you. The gentleman with his book in the hand.

    Question: Thank you. You mentioned in the report that developed economies, including the United Kingdom, face risks if they do not bring debt down. We have a budget next week. Perhaps you could tell us what are those risks if the U.K. does not address its debt position quickly?

    Mr. Gaspar: So, when we think about the United Kingdom, the United Kingdom is one of the countries that I listed where debt is substantially higher than it was projected pre‑pandemic. It is also one of the countries where debt is projected to increase over time, albeit at a declining pace.

    If I were to give you my concern about the U.K., I would use what Kristalina Georgieva, the Managing Director of the Fund, emphasizes a theme through these Annual Meetings, the combination of high debt and low growth. For the case of the United Kingdom, I would put it as follows. The United Kingdom is living with interest rates that are close to U.S. interest rates, but it is also living with growth rates that are not close to U.S. growth rates. And that leads to a theme that has been amply debated in the United Kingdom, which is the importance of public investment.

    In the United Kingdom, as in many other advanced economies, public investment as a percentage of GDP has been trending down. And given challenges associated with the energy transition, new technologies, technological innovation, and much else, public investment is badly needed. The Fiscal Monitor emphasizes that public investment should be protected in the framework of a set of rules and budgetary procedures that foster sound macroeconomic performance. The fact that that debate is very much at the center of the debate in the United Kingdom right now is very much welcome.

    Ms. Mossot: We will take another question on this side. The lady in green.

    Question: Thank you. After 3 years of consolidation, fiscal deficits are widening in the western Balkans. The public expenditures are increasing but more on social debt—more on social spendings than on capital spendings. How do you evaluate the economic situation in this region?

    Ms. Dabla‑Norris: So, in western Balkans as a whole, growth has picked up since 2023, although there are differences across countries. For example, in North Macedonia, growth is projected to be 2.2 percent in 2024, down from 2.7 percent in 2023. But for the region, the growth momentum is expected to continue in 2025.

    Now, when it comes to inflation, we see that headline inflation continues to ease throughout the region, but core inflation remains stubbornly high in some countries.

    In terms of fiscal and debt, the differential—the interest and growth differential for the region is projected to remain negative over the medium term. And this is a good thing because it is favorable to debt dynamics, but this gap is closing. It is narrowing over time.

    So, what is important at this juncture for these countries is to sustainably lift their growth prospects. And the IMF has spoken at length about the importance of structural and fiscal structural reforms that are needed to improve the composition of spending, to lift public investment sustainably and to undertake the labor and product market reforms that are required to sustainably boost productivity.

    Ms. Mossot: Thank you. Back to the center of the room.

    Question: Thanks for taking my question. I wanted to ask about France. Do you believe that the French government’s plans to return to a budget deficit of less than 3 percent by 2029 is realistic, given the size of the deficit you project for France this year?

    Mr. Gaspar: So, when it comes to France, we have a country that is also in the group of countries where debt is considerably higher than pre‑pandemic. At this point in time, in our projections, the debt‑to‑GDP ratio in France is projected to increase by about 2 percentage points every year. So, given this path, we recommend in the case of France not only fiscal adjustment but fiscal adjustment that is appropriately frontloaded to enable France to credibly put public debt under control and inside the European framework.

    That is completely in line with our general recommendation because the European framework allows for a country‑specific path. It allows for risks to be considered. It allows for the impact of the investment and structural reform to be internalized through an adjustment period that varies, according to cases, from 5 to 7 years.

    We do believe that the government in France has presented ideas, proposals that move in the right direction, but we are waiting for more clarity coming from actual enacted measures in France.

    Ms. Mossot: Another one here, the lady in blue there.

    Question: Thank you. May I have an insight about public debt in Tunisia and reasons beyond not mentioning it in your report? Thank you.

    Mr. Furceri: For the specific numbers for Tunisia, I would defer to the regional press briefs that is coming in the coming days. What I would like to point out, that one of the challenges that we see in many countries in North Africa, it also relates with the untargeted subsidies. And one point that we make in the report is that, also as Era mentioned, that when you think about how to recalibrate spending, it is important to preserve public investment. It is important to present targeted transfers for those that are most vulnerable, and to recalibrate the spending, for example, from away from high wage compensation when this is not the case, and untargeted subsidies.

    Ms. Mossot: Thank you. This side, second row, the gentleman.

    Question: I just had a question about the U.S. election. As you know, both candidates are offering many tax breaks, no taxes on tips, no tax on social security on the Trump side. These would add to the deficit of the U.S. on the Trump side as much as $7 and a half trillion over 10 years. Some estimates more than 10 trillion. Kamala Harris’ plans would call for less debt because she would raise taxes in some cases. But I am just wondering, the worse‑case scenario, how concerned are you about the amount of debt that the U.S. could be adding here? It seems to be the opposite of what the IMF has been recommending for a long time. Do you have concerns about financial markets taking matters into their own hands and imposing some discipline?

    Mr. Gaspar: Thanks, I am clearly not commenting on specific elections or political platforms, but I point to you that the Fiscal Monitor in the spring was dedicated to the great election year, and there we do make a number of comments about the relevance of politics for fiscal policy. And Era, has very interesting research where she documents that political platforms on the left and on the right all around the world have turned in favor of fiscal support and fiscal expansion. And that makes the job of the Ministers of Finance around the world and the Secretary of Treasury here in the United States a particularly demanding job, but Era may want to comment on that.

    When it comes to the United States, the United States is one of the largest economies where it is a fact that debt is considerably above what it was pre‑pandemic. It is growing at about 2 percentage points of GDP every year. And so from that viewpoint, this path of debt cannot continue forever. We do believe that the situation in the United States is sustainable because the policymakers in the United States have access to many combinations of policy instruments that enable them to put the path of public debt under control. And they will do that at a time and with the composition of their choosing. The decision lies with the U.S. political system.

    Now, it is very important to understand that the United States is now in a very favorable economic and financial situation. Financing conditions are easing in the United States. The Fed has already started its policy pivot. The growth in the United States has been outperforming that of other advanced economies. The labor market in the United States shows indicators that are the envy of many other countries. And so the prescription that the time to adjust is now applies to the United States. It turns out that the Fiscal Monitor also documents that the United States is very important for the determination of global financial conditions and, therefore, adjustment in the United States is not only good for the United States, it is good also for the rest of the world.

    Ms. Mossot: Back to the center of the room. The lady with the red shirt, please.

    Question: My question is, whether you can comment on China’s recent stimulus package and as you mentioned in the opening, it seems that the largest economies, including China and the United States, is projected to keep raising its public debt, so I wonder how you are going to comment on the fiscal implication of the stimulus package, and do you have any other specific fiscal policy for China? Thank you.

    Mr. Gaspar: Thank you for your question. China is very important. China is one of the largest economies that I listed. The other is the United States. For China and for the United States, we say the same. Debt is growing. Debt is growing rapidly. That process cannot continue forever, but China, as the United States, has ample policy space. And so it has the means to put public debt in China under control with the policy composition and the timing that will be the choice of the Chinese political system.

    If I were to say what is most important for me for China, I would say four things. The first one is that fiscal policy, as structural policy, should contribute to the rebalancing of the Chinese economy in the sense of changing the composition of demand from exports to domestic demand. It is very important that the very high savings ratio in China diminishes so that Chinese households will be able to consume more and feel safe doing that. Making the social safety net in China wider would be a structural way of doing exactly that.

    The second aspect is to act decisively to end financial misallocations associated with the property sector crisis, the real estate crisis. That is very important to stabilize the situation in China but also to build confidence, which would help with the first dimension that I pointed out as well.

    Now, third, very much in the province of public finances, this is very important to address public finance imbalances and vulnerabilities at the sub‑national level. And now, there are sub‑national governments in China that are struggling with financial conditions—financial constraints, and it is very important to remove those constraints, and, again, is linked to my second point.

    Fourth and last, it is very important that fiscal policy, as structural policy, promotes the transition to a new growth model in China, a model based on technological innovation, a model that supports the structural transformation towards a green economy. And my understanding is that this fourth element has been emphasized by the political authorities in China at the highest level.

    Ms. Mossot: Thank you. Back to this side of the room.

    Question: As already mentioned, a novel assessment framework debt that is at risk varies from country to country. Please, could you provide me details, which risks are more important and more dangerous for Ukrainian debt? And one more related question. It is that you give advice for emerging markets to increase indirect taxes for revenue mobilization. And in the case of Ukraine, when we recently already increased our taxes, for example, war tax and tax for banks’ profits, which recommendations you can give us in our situation and the worse circumstances, and maybe there are other instruments despite tax increasing.

    Ms. Dabla‑Norris: Thank you. The debt‑at‑risk framework that has been presented in the Fiscal Monitor includes 70 countries, but we do not identify or quantify the debt at risk for all individual countries. Now, that said, the framework, as Davide mentions, shows that factors such as weak growth, tighter financial conditions, geopolitical uncertainty, or policy uncertainty can all add to future debt risks. This applies to Ukraine as it does to many other countries. And in the case of Ukraine particularly, the outlook, as you know, remains exceptionally uncertain.

    So, in terms of priorities, we believe that the authorities need to continue to restore debt sustainability. And in this regard, there is two important aspects. The first is to complete the restructuring of external commercial debt in line with program commitments. And the second is to really redouble efforts on domestic revenue mobilization and to accelerate the implementation of their national revenue strategy. Now, what is important here is the strategy is not only about aiming to raise revenues, mobilize revenues, but to fundamentally change the tax system. The strategy aims to reduce tax evasion, tax avoidance, to improve tax compliance, and more broadly enhance the fairness and equity of the tax system. And the IMF has long advocated for countries that it is not about raising rates. It is about broadening the base and making tax systems as fair and equitable as possible.

    Ms. Mossot: Back to this side. The gentleman on the second row.

    Question: I just want to ask a couple of questions, blended into one. In July, the IMF released calculations showing that the U.K. budget balance, excluding interest payments, would need to improve by between .8 and 1.4 percentage points of GDP per year to get debt under control, an adjustment of 22 to 39 billion pounds. Since then, we know that the Treasury has carried out an audit and discovered over‑spends it was not aware of, and the government has made decisions on things like public sector pay. So my question to you is, how has that changed the calculations you made in July? You talked about the importance of people‑focused adjustments. Would an increase in employer national insurance contributions be people‑friendly and growth‑friendly in your view?

    Mr. Gaspar: Thank you so much. So, your questions are very detailed and very specific, and so I am not in a position to comment on them at this point in time. Concerning the U.K., we believe it is very important to bring public debt under control. It is very important to control for public debt risks. In the Fiscal Monitor, we actually make the point that the risks that one should take into account when conducting a prudent fiscal policy go beyond the reference to the baseline that you made. So we believe that it is possible to make a stronger case for fiscal prudence than what was implicit in your question.

    Still, it is important how the adjustment is made, and Era has emphasized very much the importance of being people‑friendly. And we, all of us, have emphasized the important contribution of public investment. And there you do have specific estimates for the U.K., impacts of public investment on economic activity and growth from the Office of Budget’s responsibility. I do not know if you want to add something.

    Ms. Dabla‑Norris: No. Just to say that there are important tradeoffs, not just for the U.K., but for many countries, and there may be certain short‑term measures that see or appear to be less people‑friendly but that they improve the sustainability of the system for future generations. So there is an intertemporal aspect of this, referring to fiscal policy, that we often forget. So, pension systems, health systems, the sustainability, the fiscal sustainability of the system also matters for people because it is going to impact different generations in a different way.

    Ms. Mossot: The very last question.

    Question: Thank you. I would like to ask, what are the prescriptions on how developing countries can put their public debt in order, especially sub‑Saharan Africa? And, for example, Nigeria now and many other countries in Africa, their public debt has ballooned because of exchange rates devaluation. So what are your prescriptions? You also mentioned the tax systems should be friendly. In Africa, we are not seeing tax systems as being friendly now because a lot of people, they say, okay, why did not the tax base broaden? How much can you broaden since you have a lot of poor people? So, what kinds of tradeoffs do you do when incomes and people are also squeezed?

    The last one is from the report. $100 trillion of global debt. How much of that is from developing economies? Thank you.

    Mr. Furceri: Thank you very much. The challenges that Nigeria faces, as well as many other countries in the region, there are two. One is very low revenue‑to‑GDP ratio. For example, I believe that in the case of Nigeria it is about 10 percentage points. The second, one trend that we have seen, that we are a bit concerned, is that the ratio—the debt service obligation to revenue has been increasing. So for the average low‑income country, it is about 15 percent. What does it mean? It means that basically a large part of revenue in these countries goes to just finance the debt. And this is something that we would recommend to improve, or we can improve as we mentioned revenue mobilization. We think that it is important. It is important to broaden the tax base. But at the same time, and especially in countries like Nigeria that have been severely affected by the drought, we have seen also higher food price, it is important to put in place ex ante system and mechanisms that are transfer resources from the government to those that are most affected and those that are poor.

    Ms. Mossot: Thank you very much. We have to close this session. Thank you again Era, Davide, and Vitor. You can find the full report of the Fiscal Monitor on the IMF website and also a reminder that there is tomorrow at 8:00 a.m. the Managing Director’s press conference. Thank you, all.

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