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  • MIL-OSI New Zealand: Pule Fakamotu 2024 (Constitution Day Flag Raising) Commemoration

    Source: New Zealand Governor General

    Fakaalofa lahi atu – and my very warmest Pacific greetings.

    I’d like to specifically acknowledge: Prime Minister Tagelagi; Prime Minister Mark Brown of the Cook Islands; Alapati Tavite, Ulu of Tokelau; President Williame Katonivere of Fiji; Ministers and Members of Parliament of Niue; and Members of the Diplomatic Corps.

    Thank you, Prime Minister Tagelagi for inviting Richard and me to join leaders of our ‘Realm family’ and members of the Diplomatic Corps in celebrating this year’s Constitution Day, marking the 50th year of self-government and enduring freedom of association with New Zealand.

    I am honoured to represent His Majesty King Charles III, our Head of State of the Realm of New Zealand, and affirm his best wishes to you all on this very special day for Niue.

    I also wish to convey warmest congratulations from the nearly 31,000 New Zealanders who regard Niue as home. You will be aware of the great pride they take in their distinctive culture, language and traditions, and the strength of their connections to Niue.

    I’m sure those who witnessed that historic moment fifty years ago, on the 19th of October 1974, would be delighted to see what has been achieved in the intervening years: the upgraded roads and airport, the growth of tourism with Matavai Resort and other outstanding new accommodation options, the sea tracks, Niue Development Bank, new government buildings, a supermarket complex, and Millenium Hall.

    Similarly, I hope they would applaud the emphasis on sustainability and the protection of biodiversity, the establishment of a maritime protection area, and modernised waste management systems.

    I hope they would also be pleased to see Niue’s connections to the world, enabled by jet travel and internet access. I’m sure they would be astonished and delighted to see the growth of media and educational opportunities, solar power, electronic banking, an emergency operations centre, and the facilities of a truly modern hospital.

    I was pleased to learn how closely Niue and New Zealand worked to minimise the impact of COVID-19, and I wish to congratulate Prime Minister Tagelagi and everyone involved in keeping the people of Niue safe.

    Nationhood is necessarily an ongoing project, based on a shared understanding of identity, values, and culture.

    All Niueans contribute to this vision, whether they be Assembly Members, Ministers of Cabinet, the Speakers of the Fale Fono, the Public Service Commissioners, Secretaries of Government, the Judges and Judiciary, Niue’s High Commissioners in New Zealand, the Public Service, educators, the keepers of traditional knowledge and crafts, or artists, composers and cultural performers. So too do those Niueans engaged in fishing, growing crops, joining in community and church activities, and hosting tourists – as well as tupuna and spiritual leaders providing wise guidance and counsel across communities.

    I commend the people of Niue for working to sustain and transfer their cultural heritage and traditions. Showdays and Taoga Festivals have brought villages together with the Niuean diaspora to celebrate community, tradition and whanaungatanga. It must be gratifying to see Niueans born in New Zealand choosing to live here, and renew their ties with their culture and history.

    Since 1974, New Zealand has been proud to be Niue’s Constitutional partner, with responsibilities to provide necessary administrative support. The bonds between our two nations have flourished, nurtured by our shared history, language, culture and citizenship.

    The people-to-people links, forged through family ties, friendships, and shared experiences, have created a tapestry of interwoven lives between Niue and New Zealand, and Niue and the Pacific. 

    Today, we are joined by Niueans who have travelled from New Zealand, Australia and beyond to be part of these celebrations.

    Over these past fifty years, Niue has developed its own network of diplomatic, political, trade and economic relationships – and I acknowledge the support and collaboration of such partners and friends who are with us in celebration today. As Niue continues its journey of growth and development, I pay tribute to those partners who have supported those development aspirations, and your vision of a connected and prosperous Niue.

    All of us share in the challenges of our times – particularly climate change – and it is in the absolute interests of all of us to do what is right and what is necessary to build greater resilience and wellbeing for the people of the Pacific.

    This special Aho Pulefakamotu is a time for Niueans to celebrate the legacy of your forebears, and to look forward to how you might shape the destiny of your nation.

    I wish the people of Niue every success with the challenges and opportunities that lie ahead – strengthened by the executive, legislative and judicial processes established by your Constitution – and secure in the knowledge that you will be supported, as always, by your friends in New Zealand.

    Kia moui olaola a Niue. Kia tumau a Niue.  Niue ke Monuina. Niue ko Kaina. Niue ki Mua.

    Now, onwards to the next 50 glorious years. May God Bless Niue. May God Bless you all. Kia fakamonuina mai he Atua a Niue Fekai.

    MIL OSI New Zealand News –

  • MIL-OSI New Zealand: Reception for the Diplomatic Corps in Niue

    Source: New Zealand Governor General

    Fakaalofa lahi atu kia mutolu oti – and my very warmest Pacific greetings to you all.

    I’d like to specifically knowledge: Prime Minister Tagelagi and Tanya Tagelagi; Members of the Niue Assembly; Your Excellency Mr Mark Gibb, New Zealand High Commissioner to Niue; Your Excellency Ms Katy Stuart, Australian High Commissioner to Niue; and Members of the Diplomatic Corps.

    Tēnā koutou katoa.

    As Governor-General of the Realm of New Zealand, representing His Majesty King Charles III, as well as the Government and people of New Zealand, it has been an honour to be here in Niue for this historic occasion – marking fifty years of Niue’s self-government and free association with New Zealand.

    Dr Davies and I have welcomed this opportunity be a part of this proud moment in Niuean history, and to reaffirm the depth and special meaning of the relationship between our two countries.

    On a fundamental level, of course, ours is a relationship underpinned by those constitutional arrangements decided upon and inaugurated 50 years ago, on the 19th of October 1974.

    Of course, in fact, the relationship between our two nations extends back much further than that. We are bound by our whakapapa – our common ancestors – who, hundreds of years ago, guided by the stars, the winds and the currents, navigated their way across Te Moana-nui-a-kiwa with immense courage and skill.

    New Zealand and Niue share Polynesian histories and stories with their origins in those great voyages, as well as the many precious ties of whānau – of family – strengthened over successive generations.

    As I come to the end of my time here, in this beautiful place – the ‘Rock of the Pacific’ – and reflect upon how it has touched my understanding of the bond between our countries, I find myself returning to ‘whanaungatanga’ – a term in te reo Māori which refers to a sense of sacred ties; of kinship; and of deep and abiding family connections.

    As the passing of time naturally alters the relationships within a family, so too the relationship between New Zealand and Niue has naturally evolved over these past fifty years. As one part of that evolution, Niue has developed and nurtured its own diplomatic relationships with countries across the Pacific and around the world.

    I’m delighted to see many of those relationships present here this evening, in friendship and support – bringing to mind, as it does, the whakataukī, or proverb: ‘Ehara tāku toa i te toa takitahi, engari takimano, nō āku tīpuna. My strength is not individual it is collective.’

    Such kotahitanga, such unity of action, is more important than ever in facing some of the most pressing global issues of our time: climate change, economic security, achieving equitable health and education outcomes. I am confident we will find solutions, but it requires that we do the work, and that we continue to share our knowledge, resources, and wisdom.

    I wish to take this opportunity to commend Niue for the work that you’ve done to encourage such collaboration, and the innovation that you’ve shown across areas as broad as food production, renewable energy, and sustainable tourism.

    The Niue and Ocean-Wide Trust is a perfect example of your commitment to initiatives whose ethos extends far beyond self-interest, which encourages collective action, and which seeks the greatest possible benefit to our planet and to broader humanity.

    As Governor-General, I once again reinforce New Zealand’s commitment to be a friend and partner to Niue in facing the challenges and seizing the opportunities of these coming years.

    I finish today by returning to the extraordinary image of those great Polynesian explorers charting their course across the Pacific Ocean. As we leave here, I hope we may all be inspired by the example of those early pathfinders – to be courageous in our actions as in our words, to live with deep care and respect for the natural world, and to work together, in the abiding spirit of whanaungatanga and kotahitanga, to seek a positive future for all.

    Fakaaue lahi. Tēnā koutou, tēnā koutou, tēnā koutou katoa.

    MIL OSI New Zealand News –

  • MIL-OSI Translation: Save, rebuild and rebuild New Caledonia

    MIL OSI Translation. French Polynesian to English –

    Source: Government of New Caledonia

    On October 17, 21 and 22, the government organized a major conference at the Tjibaou cultural center devoted to the community-led plan for safeguarding, rebuilding and reconstruction (PS2R). Three days during which the government was able to present its vision and measures and discuss with the stakeholders present.

    Following the riots that broke out on 13 May 2024, New Caledonia finds itself in an extremely difficult financial, economic and social situation. In this context, the members of the 17th government wanted to put in place a plan for safeguarding, rebuilding and reconstruction, “three concepts that reflect the depth and intensity of the questions that are shaking our country, as we go through a particularly difficult period”, as Louis Mapou indicated during his opening speech on Thursday 17 October.

    The PS2R will make it possible to organise short-term safeguard measures, to define in the medium term the major principles on which the future Caledonian model will be based and to identify, for the long term, the priority avenues for reconstruction. It represents “a crucial step for the future of New Caledonia”, according to the President of the Government.

     

    Findings on the current model

    In an effort to make the PS2R a concerted and shared approach, the government initiated a series of meetings with institutions, communities, unions, employer organizations, economic stakeholders and civil society before its conference in order to gather their opinions and proposals. An online public consultation was also launched and received approximately 3,000 responses.

    This work allowed, in a first step, to make observations on the current models at the economic, health-social, institutional and societal levels. A methodology aimed at having a solid basis for a successful overhaul and to avoid repeating the mistakes of the past.

    Building on core values

    To achieve these objectives, the government also intends to rely on fundamental values, which are essential for rebuilding the Caledonian model and which must be translated as principles that could constitute the guiding principles of our collective investment:

    Kindness and solidarity because it is necessary to provide for the needs of the population in this difficult context and to strengthen social cohesion and community ties. The proximity of public action, to guarantee transparent and effective management of the country’s affairs. But above all because these events have revealed a significant gap between the expression of needs by a large category of the population, particularly Kanak youth, and public action. Complementarity rather than competition, particularly in the management of public affairs, in order to maximize synergies and avoid divisions. Ethics and integrity in governance, in order to restore citizens’ confidence in their institutions.

     

    Values that have made it possible to identify the four pillars on which the re-establishment of the Caledonian model will be based. “These pillars are self-evident to be addressed in this trajectory that we are establishing over three years,” affirmed Louis Mapou.

    The first pillar concerns the concept of “living together” which must be the primary, central and collective ambition of New Caledonia. It is based on a common foundation: belonging to this country and the desire to give it its own unique identity. The second pillar concerns our economic model and the desire to make it competitive and attractive by highlighting the wealth of New Caledonia. The third pillar is the social pillar which today needs to be rethought in order to perpetuate the health and social protection systems, so that they can meet the needs of current and future generations. The fourth pillar focuses on the issue of governance with the ambition of making institutions more responsive, more effective and closer to Caledonians.

    Clear strategic objectives

    In order to work as efficiently as possible, the government has defined, based on the findings and contributions collected, strategic objectives (SO) to be achieved in each model. These objectives will be achieved through concrete measures, some of which are already being considered or implemented.

    Business model

    OS1 – Preserve decent purchasing power

    OS2 – Restore the attractiveness of the territory and the competitiveness of the economy

    OS3 – Freeing up financing for the economy

    OS4 – Adapting land use planning and infrastructure to the needs of the population

    OS5 – Redefining the nickel industry model

    OS6 – Major infrastructure works

     

    Health and social model

    OS7 – Make the Caledonian health system viable and efficient

    OS8 – Controlling social protection expenditure

    OS9 – Strengthening family policy

     

    Institutional model

    OS10 – Making public action more efficient

    OS11 – Optimize the distribution of skills

    OS12 – Promoting the expression and representation of civil society

     

    Societal model

    OS13 – Build an identity based on common and shared values and practices and reinforced by a sense of belonging to New Caledonia

    OS14 – Adapting education, training and integration to the contemporary context

    OS15 – Protect and enhance natural resources

    OS16 – Preventing and adapting to climate change

    The prospects of PS2R

    The day after the conference dedicated to the plan, the government intends to publish a booklet incorporating all the observations noted during this unifying event. It also plans to travel to the three provinces to present the plan to the population, who “must absolutely take ownership of it”, as President Louis Mapou insisted.

    It is also envisaged to annex the PS2R to the budget orientation debate for the year 2025, which will allow in particular to develop a series of prospective scenarios for the next three years. Furthermore, the government plans to begin discussions in order to set up a State support agreement, on the basis of the PS2R, in order to ensure that the necessary measures can actually be put in place.

    The implementation of the PS2R will be subject to regular monitoring by the interinstitutional committee and the committee of vital forces.

    EDITOR’S NOTE: This article is a translation. Apologies should the grammar and/or sentence structure not be perfect.

    MIL Translation OSI

  • MIL-Evening Report: Scurvy is largely a historical disease but there are signs it’s making a comeback

    Source: The Conversation (Au and NZ) – By Lauren Ball, Professor of Community Health and Wellbeing, The University of Queensland

    Matilda Wormwood/Pexels

    Scurvy is is often considered a historical ailment, conjuring images of sailors on long sea voyages suffering from a lack of fresh fruit and vegetables.

    Yet doctors in developed countries have recently reported treating cases of scurvy, including Australian doctors who reported their findings today in the journal BMJ Case Reports.

    What is scurvy?

    Scurvy is a disease caused by a severe deficiency of vitamin C (ascorbic acid), which is essential for the production of collagen. This protein helps maintain the health of skin, blood vessels, bones and connective tissue.

    Without enough vitamin C, the body cannot properly repair tissues, heal wounds, or fight infections. This can lead to a range of symptoms including:

    • fatigue and weakness
    • swollen, bleeding gums or loose teeth
    • joint and muscle pain and tenderness
    • bruising easily
    • dry, rough or discoloured skin (reddish or purple spots due to bleeding under the skin)
    • cuts and sores take longer to heal
    • anaemia (a shortage of red blood cells, leading to further fatigue and weakness)
    • increased susceptibility to infections.

    It historically affected sailors

    Scurvy was common from the 15th to 18th centuries, when naval sailors and other explorers lived on rations or went without fresh food for long periods. You might have heard some of these milestones in the history of the disease:

    • in 1497-1499, Vasco da Gama’s crew suffered severely from scurvy during their expedition to India, with a large portion of the crew dying from it

    • from the 16th to 18th centuries, scurvy was rampant among European navies and explorers, affecting notable figures such as Ferdinand Magellan and Sir Francis Drake. It was considered one of the greatest threats to sailors’ health during long voyages

    • in 1747, British naval surgeon James Lind is thought to have conducted one of the first clinical trials, demonstrating that citrus fruit could prevent and cure scurvy. However, it took several decades for his findings to be widely implemented

    • in 1795, the British Royal Navy officially adopted the practice of providing lemon or lime juice to sailors, dramatically reducing the number of scurvy cases.

    Evidence of scurvy re-emerging

    In the new case report, doctors in Western Australia reported treating a middle-aged man with the condition. In a separate case report, doctors in Canada reported treating a 65-year old woman.

    There’s an abundance of vitamin C in our food supply, but some people still aren’t getting enough.
    Rebecca Kate/Pexels

    Both patients presented with leg weakness and compromised skin, yet the doctors didn’t initially consider scurvy. This was based on the premise that there is abundant vitamin C in our modern food supply, so deficiency should not occur.

    On both occasions, treatment with high doses of vitamin C (1,000mg per day for at least seven days) resulted in improvements in symptoms and eventually a full recovery.

    The authors of both case reports are concerned that if scurvy is left untreated, it could lead to inflamed blood vessels (vasculitis) and potentially cause fatal bleeding.

    Last year, a major New South Wales hospital undertook a chart review, where patient records are reviewed to answer research questions.

    This found vitamin C deficiency was common. More than 50% of patients who had their vitamin C levels tested had either a modest deficiency (29.9%) or significant deficiency (24.5%). Deficiencies were more common among patients from rural and lower socioeconomic areas.

    Now clinicians are urged to consider vitamin C deficiency and scurvy as a potential diagnosis and involve the support of a dietitian.

    Why might scurvy be re-emerging?

    Sourcing and consuming nutritious foods with sufficient vitamin C is unfortunately still an issue for some people. Factors that increase the risk of vitamin C deficiency include:

    • poor diet. People with restricted diets – due to poverty, food insecurity or dietary choices – may not get enough vitamin C. This includes those who rely heavily on processed, nutrient-poor foods rather than fresh produce

    • food deserts. In areas where access to fresh, affordable fruits and vegetables is limited (often referred to as food deserts), people may unintentionally suffer from a vitamin C deficiency. In some parts of developing countries such as India, lack of access to fresh food is recognised as a risk for scurvy

    • the cost-of-living crisis. With greater numbers of people unable to pay for fresh produce, people who limit their intake of fruits and vegetables may develop nutrient deficiencies, including scurvy

    Capsicums are a good source of vitamin D but they’re not cheap.
    Pexels/Jack Sparrow

    • weight loss procedures and medications. Restricted dietary intake due to weight loss surgery or weight loss medications may lead to nutrient deficiencies, such as in this case report of scurvy from Denmark

    • mental illness and eating disorders. Conditions such as depression and anorexia nervosa can lead to severely restricted diets, increasing the risk of scurvy, such as in this case report from 2020 in Canada

    • isolation. Older adults, especially those who live alone or in nursing homes, may have difficulty preparing balanced meals with sufficient vitamin C

    • certain medical conditions. People with digestive disorders, malabsorption issues, or those on restrictive medical diets (due to severe allergies or intolerances) can develop scurvy if they are unable to absorb or consume enough vitamin C.

    How much vitamin C do we need?

    Australia’s dietary guidelines recommend adults consume 45mg of vitamin C (higher if pregnant or breastfeeding) each day. This is roughly the amount found in half an orange or half a cup of strawberries.

    When more vitamin C is consumed than required, excess amounts leave the body through urine.

    Signs of scurvy can appear as early as a month after a daily intake of less than 10 mg of vitamin C.

    Eating vitamin C-rich foods – such as oranges, strawberries, kiwifruit, plums, pineapple, mango, capsicum, broccoli and Brussels sprouts – can resolve symptoms within a few weeks.

    Vitamin C is also readily available as a supplement if there are reasons why intake through food may be compromised. Typically, the supplements contain 1,000mg per tablet, and the recommended upper limit for daily Vitamin C intake is 2,000mg.

    Lauren Ball receives funding from the National Health and Medical Research Council, Queensland Health and Mater Misericordia. She is a Director of Dietitians Australia, a Director of Food Standards Australia and New Zealand, a Director of the Darling Downs and West Moreton Primary Health Network and an Associate Member of the Australian Academy of Health and Medical Sciences.

    – ref. Scurvy is largely a historical disease but there are signs it’s making a comeback – https://theconversation.com/scurvy-is-largely-a-historical-disease-but-there-are-signs-its-making-a-comeback-241894

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI Asia-Pac: Speech by FS at Bloomberg Global Regulatory Forum in New York (English only) (with photos)

    Source: Hong Kong Government special administrative region

         Following is the speech by the Financial Secretary, Mr Paul Chan, at the Bloomberg Global Regulatory Forum in New York, yesterday (October 22, New York time): Mike (Founder of Bloomberg L.P. & Bloomberg Philanthropies, Mr Michael Bloomberg), Mr Cotzias (Global Head of External Relations of Bloomberg, Mr Constantin Cotzias), distinguished guests, ladies and gentlemen,     Good afternoon. I’m pleased to be here, in New York City, in fall. And delighted to hear that baseball, more than politics, is still the talk of the town.      Well, baseball and finance. For that, for hosting today’s Global Regulatory Forum, for consistently driving high-powered discussion on the future of global finance, my thanks to Bloomberg.     Last year’s Forum took place for the first time in Hong Kong, when we discussed how to navigate complexity and unlock opportunities. A year on, many things in the financial world have changed, and I’m pleased to bring you some positive updates about our city.Hong Kong: strong fundamentals     Despite several challenging years, from social violence to the pandemic, Hong Kong is back, back once again with a stable, welcoming and promising business environment.      Our strong fundamentals continue to be internationally recognised. Hong Kong ranks once again among the top three global financial centres, behind only New York and London.      Canada’s Fraser Institute has again ranked Hong Kong the world’s freest economy.      The International Monetary Fund and credit-rating agencies have reaffirmed Hong Kong’s institutional framework, our quality regulation and economic and financial resilience.      These commendations are echoed by the global investor community. Total banking deposits in Hong Kong, for example, have grown 5 per cent, or US$100 billion, this year to date, reaching more than US$2 trillion.      Our asset-and-wealth-management sector is also growing. We are managing over US$4 trillion in assets, and over half of that value was sourced from investors outside Hong Kong and the Chinese Mainland.      Coupled with easing interest rate cycles and the Mainland’s stimulus package to inject liquidity to the banking sector and provide more support to the real estate sector, our stock market has gone on a rally, rising some 15 per cent in the past month or so.       From late September to early October, we have seen strong net buys from American and European investors, constituting some 85 per cent of the buy side by value. And 90 per cent of those investors are long-term fund managers and investment banks.     International investors have good reason to be confident in Hong Kong. Our singular “one country, two systems” arrangement is here to stay, here for the long term.      That clear and compelling commitment has been reiterated, time and again, by President Xi Jinping. Indeed, the arrangement was designed not for short-term expediency but for the long-term interests of our country. It is clear that the Mainland is fully embracing high-level opening up, evident in the conclusions of state and party meetings in Beijing in the past year or so. The Mainland will support Hong Kong in remaining as a “super connector”, to assist in realising the country’s vision.      We can, and will, continue to do just that, thanks to the advantages that define Hong Kong’s international character: our common law tradition, a judiciary that exercises powers independently; the free flow of goods, capital, talent and information; a currency pegged to the US dollar; and business practices that align with the best international standards.     For so long, we have built our success as an international financial, trade and shipping centre on these merits, and they will continue to underpin Hong Kong’s development in the future.      Robust financial regulation     But still, Hong Kong is a small, fully open and externally-oriented economy. That means we are prone to external shocks and volatility. The trials and tribulations in the Asian Financial Crisis in 1998, the Global Financial Crisis of 2008, and the market squeeze during the onset of the COVID pandemic, are good lessons to learn.      Each time we weathered a crisis, we grew more resilient, but the take home message for us is clear: first, we need to identify systemic weaknesses and vulnerabilities, and address them. Second, establish multi-sectoral risk detection and monitoring systems to raise alarm against potential crises. Third, build in a strong buffer to allow us to respond to the unknowns.       This is particularly valid for Hong Kong which implements a linked exchange rate system. Hong Kong dollar is pegged to the US dollar, and therefore we must have sufficient monetary depth to enforce our convertibility undertakings and defend our currency board system. To ensure we have ample liquidity as we need it, we have a foreign exchange reserve of more than US$420 billion at our disposal.      In light of rising geopolitical and economic challenges, we’ve established a high-level, cross-market, co-ordinated and round-the-clock monitoring mechanism. It covers all sectors of the financial market and gathers all financial regulators, allowing us to detect looming risks.     I’m glad to report that over the past few years, our financial markets have been functioning in an orderly manner, despite volatility that might appear from time to time. The role of regulators in market development     Good regulation, of course, is only half the story. For the ultimate goal of regulation is to promote the healthy and sustainable development of the financial market. Good market development, in my view, is equally important, and it is the best means to future-proof our financial systems.      This requires the regulatory regime be agile and forward-looking. This requires the regime to respond to market and economic changes, embrace and empower technological innovation, and create the conditions for markets to thrive.      It’s why in Hong Kong, regulators have been given a dual mandate, serving both as regulators and market enablers.      Our listing regime reform is a good case in point. Back in 2018, the Government and the financial regulators made bold decisions to allow pre-profit or pre-revenue biotech companies, and new economy companies with weighted voting rights structures, to list on our stock exchange. The idea was met with doubt initially. But today the facts speak for themselves: new economy companies constitute only 13 per cent of the total number of listed companies, but their capitalisation accounts for 26 per cent. These reforms have not only broadened our market’s appeal but also put Hong Kong as a leading listing hub for innovative enterprises.     Reform is an ongoing process. For instance, last year we introduced a new Chapter in our listing rules to facilitate the listing of specialist technology companies.     Looking ahead, two key areas will be vital for Hong Kong’s financial future: enhancing our financial connectivity with the world, and embracing innovation.Enhancing Connectivity      Connectivity has always been the trump card of Hong Kong – although “trump” may be a word that you may now love or hate. For long, we have been the premier listing platform for Mainland companies going global. The launch of the “Stock Connect” 10 years ago was a landmark in forging close connectivity between the two markets. Its very significance was to allow foreign investors to make use of the Hong Kong Stock Exchange, and all the regimes, regulation and practices with which they are familiar, to access the Mainland’s stock market. Today, over 70 per cent of the A-share holdings by foreign investors were acquired through the Stock Connect. The Scheme has been continuously expanding, now covering bonds, ETFs, derivatives such as swap contracts.      Just in April this year, the China Securities Regulatory Commission announced four further measures to expand the Connect Schemes, including enlarging the scope of ETFs Connect, covering REITs in Stock Connect, and more. Meanwhile, it also made clear that they will support leading Mainland companies to list on the Hong Kong Stock Exchange. Obviously our IPO market has seen a rebound. In the first nine months this year, we raised more than US$7.1 billion, ranking fourth globally thus far.       Looking ahead, Hong Kong is also strengthening connections with other markets in the ASEAN countries, the Middle East and the Belt and Road countries. For instance, next week, we will be seeing the launch of two ETFs on the Saudi Stock Exchange investing in the Hong Kong Stock market.     So Hong Kong’s role as a connector of markets will only grow stronger. And with this, our financial regulators will continue to make it their strategic priorities to enhance collaboration with regulatory counterparts for timely and effective responses. Embracing innovation      Ladies and gentlemen, another area essential to our future is innovation.      In Hong Kong, we’re taking a balanced regulatory approach to enable financial innovation.      For example, last year, we introduced a regulatory regime for digital assets, along the principle of “same activity, same risks, same regulation”. The key feature is to put in place guardrails for investor protection, while enabling financial innovation to thrive in a responsible and sustainable manner.      So far, three firms have been issued with virtual asset trading platform licences, and we are expecting more in the next couple of months.      Besides, legislation will be introduced later this year for the regulation of stablecoins.      Then there’s also AI (artificial intelligence), which is reshaping the financial services industry, driving new products and services that enhance efficiency, security and customer experience.      Like blockchain and other new technologies, we must address the potential challenges of AI, such as cybersecurity, data privacy and the protection of intellectual property rights.      To that end, we will publish a policy statement next week. We will work to provide a clear supervisory framework and create a conducive and sustainable market environment.      Concluding remarks     Ladies and gentlemen, alongside changing global financial landscape comes far-reaching opportunity. Judging from Hong Kong’s experience, capturing such opportunities calls for the mentality of policy makers to focus not just on regulation compliance but also market development. For some, this may require a paradigm shift. But in our view, it will be an essential path to future-proof our financial markets, ensuring their long-term sustainable growth.      Finally, I wish to convey my thanks again to Bloomberg for inviting me to this Forum. I wish you all the best of business and health in the coming year. Thank you.

    MIL OSI Asia Pacific News –

  • MIL-OSI NGOs: Uganda: Criminalization shrinks online civic space for LGBTQ people – report

    Source: Amnesty International –

    Online attacks against Uganda’s LGBTQ communities have drastically increased, owing to overly broad laws that criminalize various aspects of the lives of LGBTQ people and entrench discrimination, Amnesty International said in a new report today.

    The report, “Everybody Here Is Having Two Lives and Phones”: The Devastating Impact of Criminalization on Digital Spaces for LGBTQ People in Uganda, details widespread patterns of technology-facilitated gender-based violence (TfGBV) against LGBTQ people in Uganda. It documents cases of doxing, outing, threats of violence, blackmailing, impersonation, hacking and disinformation — further marginalizing LGBTQ people, especially those from disadvantaged socio-economic backgrounds.

    The Anti-Homosexuality Act (AHA) 2023, in particular, was found to have fostered a climate of impunity for attacks against LGBTQ people, forcing both individuals and organizations to significantly alter how they present themselves and engage with people online.

    “Our research shows that, while LGBTQ activists and organizations have continued to use digital spaces in a very hostile environment, the stigma, violence, and discrimination they face in offline spaces has been mirrored and amplified in digital spaces,” said Shreshtha Das, Amnesty International’s Gender Researcher/Advisor.

    “TfGBV has devastating consequences for LGBTQ people, as online targeting can result in offline consequences, including arbitrary arrests, torture and other ill-treatment, forced evictions, dismissal from work, exposure to offline violence, as well as stress, anxiety and depression.”

    TfGBV has devastating consequences for LGBTQ people, as online targeting can result in offline consequences, including arbitrary arrests, torture and other ill-treatment, forced evictions, dismissal from work, exposure to offline violence, as well as stress, anxiety and depression.”

    Shreshtha Das, Amnesty International’s Gender Researcher/Advisor

    Amnesty International conducted research across six Ugandan cities and neighbouring areas, including 64 interviews with LGBTQ individuals and organizations. The research reveals widespread TfGBV and highlights not only the failure of state authorities to prevent or address these abuses, but also their active role in encouraging and condoning them, exposing LGBTQ people to grave human rights abuses.

    A ‘witch hunt’

    LGBTQ individuals and organizations in Uganda rely on digital platforms to connect with their communities, share information about sexual health services, and protect their rights.

    “Instead of adopting policies to combat TfGBV, the Ugandan authorities have clamped down on human rights defenders and organizations, placing discriminatory restrictions on their work.

    Marco Perolini, Amnesty International’s Civic Space Policy Advisor

    The prevalence of TfGBV, however, has severely limited the possibilities for LGBTQ people to access, communicate and come together in digital spaces, while also hindering the outreach efforts of many organizations. Those providing health services to marginalized groups have been forced to avoid advertising their services online, fearing that the authorities could arbitrarily suspend their registration based on spurious accusations of “promoting homosexuality”.

    “Instead of adopting policies to combat TfGBV, the Ugandan authorities have clamped down on human rights defenders and organizations, placing discriminatory restrictions on their work. Their acts amount to a witch-hunt against those perceived as “promoting homosexuality”, creating a chilling effect on the rights to freedom of expression and association,” said Marco Perolini, Amnesty International’s Civic Space Policy Advisor.

    The report documents numerous instances where police seized devices or data of LGBTQ people by threatening them with arrest. Moreover, both police and private individuals have used social media platforms to connect with LGBTQ people first, and then target them with physical violence and blackmailing.

    Blackmail was the most prevalent form of TfGBV noted across all locations. In addition, both police and private individuals have outed LGBTQ people, exposing them to online abuse, threats, physical violence, forced evictions and dismissal from work.

    Amnesty International found that the widespread use of derogatory and offensive language against LGBTQ people is pervasive online, as well as disinformation campaigns that portray LGBTQ people in harmful ways, including depicting them as “sexual predators”.

    These narratives reinforce the stereotyping of LGBTQ people and led to emotional distress, social ostracization, economic hardship and, in some cases, physical violence.

    “Nowadays, digital spaces, which are so vital for LGBTQ people in Uganda, are often no safer than offline spaces — they are experiencing discrimination and violence in both,” said Roland Ebole, Amnesty International’s Uganda researcher.

    Prejudicial laws worsening homophobia and transphobia

    While TfGBV against LGBTQ individuals was common in Uganda before, its severity and prevalence have surged since the passage of the AHA 2023, which has intensified homophobic and transphobic public discourse.

    All interviewees told Amnesty International that they would not report TfGBV to the police due to fears of being outed, blackmailed or arrested. In the few instances when LGBTQ people reported TfGBV cases, the police failed to take any action and instead subjected them to further humiliation.

    “Nowadays, digital spaces, which are so vital for LGBTQ people in Uganda, are often no safer than offline spaces — they are experiencing discrimination and violence in both,”

    Roland Ebole, Amnesty International’s Uganda researcher.

    LGBTQ individuals and organizations also said that reporting cases of TfGBV on social media platforms remained challenging. They often did not know how to report abuses. In spite of social media platforms’ policies to address TfGBV, concerns remain regarding content moderation, especially in widely spoken local languages other than English.

    Out of all the entities Amnesty International wrote to, including various state authorities in Uganda, private organizations, and social media companies (Meta, TikTok and X) detailing our findings, only Meta and TikTok responded. Their responses have been reflected in the report.

    “The Ugandan Parliament must immediately repeal the Anti-Homosexuality Act 2023 and other laws that criminalize acts and behaviours that disproportionately impact LGBTQ people,” said Shreshtha Das.

    “The authorities must also establish an independent mechanism to conduct effective, prompt, impartial, and independent investigations into allegations of TfGBV and other human rights violations committed against LGBTQ people.”

    MIL OSI NGO –

  • MIL-OSI Australia: Victoria’s fire season officially begins

    Source: Victoria Country Fire Authority

    Pomonal fireground 2024

    This year’s Victorian fire season is set to officially begin with fire restrictions commencing in parts of the state next week.

    CFA declared the first Fire Danger Period (FDP) for the 2024-25 fire season, commencing on Monday, 28 October for the following municipalities in the west and northwest of the state:

    • Mildura Rural City Council
    • Yarriambiack Shire Council
    • Hindmarsh Shire Council
    • West Wimmera Shire Council
    • Horsham Rural City Council

    Victorians can expect a hotter and drier summer and communities should be preparing their properties and creating a Bushfire Survival Plan.

    CFA will be introducing further FDPs for Victorian municipalities in the coming weeks and months based on assessments of the amount of rain, grassland curing rate and local conditions.

    CFA Chief Officer Jason Heffernan said with an increased fire risk expected in the west and southwest of the state, now is the time to take action and be ready for what’s ahead.

    “Fire safety is a shared responsibility and we ask Victorians to be prepared and stay informed,” Jason said.

    “Take this opportunity ahead of the FDP to clean up your property but also be cautious when burning off and ensure it’s properly extinguished.

    “Now is also the time to sit down with your household and prepare your bushfire plan.”

    CFA West Region Acting Deputy Chief Officer Mark Gunning said as a result of reduced rainfall this year, we’re concerned about the dry conditions we’re already seeing in the far west of the state.

    “Following from a devastating fire season in the Wimmera earlier this year, we saw many people who had prepared their properties for fire, survive the passage of the bushfires in the Grampians and southern Wimmera.”

    Those conducting burn-offs must notify authorities online at the Fire Permits Victoria website (http://www.firepermits.vic.gov.au), or by calling 1800 668 511.

    By registering your burn-off online, you allow emergency call takers to allocate more of their time taking calls from people who need emergency assistance immediately.

    No burning off is permitted during the FDP without a Permit to Burn, which can be applied for through the Fire Permits Victoria website.

    Fire Danger Period information:

    Submitted by CFA Media

    MIL OSI News –

  • MIL-OSI Australia: NSW Government delivers state’s first statutory Independent Agriculture Commissioner

    Source: New South Wales Department of Primary Industries

    18 Oct 2024

    The Minns Labor Government today passed legislation in the Parliament to establish an independent statutory Agriculture Commissioner, delivering the Government’s election commitment in full.

    The Commissioner’s role will be to provide independent advice, conduct reviews and make recommendations to the NSW Government on agricultural matters, including productivity, land use conflict and food security.

    The Government has made significant progress in delivering its election commitments supporting our farmers – including the delivery of NSW’s first independent Biosecurity Commissioner and Agriculture Workforce Strategy Roundtables, plus record funding for Biosecurity, Local Land Services and Landcare.

    The Agriculture Commissioner Act 2024 was developed following extensive engagement with primary industry organisations, NSW Farmers and local councils.

    The recruitment process for engaging a Commissioner has begun and will be announced in due course.

    The Commissioner’s workplan will be responsive to emerging agricultural priorities, and at the direction of the Minister for Agriculture.

    The initial workplan and priorities for the Commissioner have been directed by the NSW Minister for Agriculture, Tara Moriarty, to be as follows:

    • Advise the NSW Government on the development of a rural land use policy to guide on managing competing demands for land use and access from food and fibre producers
    • Assist the NSW Government in progressing the development of an ongoing system for defining, identifying, and mapping agricultural lands and its use throughout the State
    • To progress the pilot of the Farm Practices Panel aimed at reducing conflict between agricultural producers and neighbours on a broader scale
    • Provide input and advice about addressing ongoing challenges related to critical renewable energy infrastructure to support our energy transition and the impact it can have on landholders, and in particular, farmers.

    The Bill specifically requires the Commissioner to promote a coordinated and collaborative approach to supporting the agriculture industry.

    Under the new legislation the Commissioner can engage experts and stakeholders, plus consult broadly with Government and non-government stakeholders to inform its reviews and advice.

    The Act introduces a requirement for a statutory review every five years.

    NSW Minister for Agriculture, Tara Moriarty said:

    “Our Government has delivered on another election commitment, passing legislation to establish NSW’s first statutory Agriculture Commissioner with the required powers to assist our primary industries to be the best, safest and most productive they can be.

    “The former government failed to deliver a statutory role and that is why we went to the election promising to set this role up and deliver what farmers had for years been calling for.

    “Our Government is moving quickly to protect and enhance farming productivity to ensure our farmers can keep on providing food and fibre to our communities.

    “I look forward to announcing the Commissioner in due course.”

    MEDIA: Alastair Walton | Minister Moriarty | 0418 251 229

    MIL OSI News –

  • MIL-OSI Australia: DNA breakthrough accelerates biosecurity response

    Source: New South Wales Department of Primary Industries

    23 Oct 2024

    In a world-first development for biosecurity management, the NSW Department of Primary Industries and Regional Development (DPIRD) has used a new rapid DNA sequencing technology which can speed up data analysis of pests, weeds and diseases.

    The technique could change how we monitor and manage diseases and pests at national and international levels to ensure the safety of our food supplies and the protection of our environment.

    NSW DPIRD scientists first used the innovative approach to accelerate species identification rates during the NSW varroa mite emergency response.

    NSW DPIRD biosecurity molecular epidemiologist, Daniel Bogema, said rapid and accurate identification of the species as Varroa destructor was critical.

    “The technology delivered sharper insights for surveillance and tracking during the early stages of the biosecurity operation and streamlined the process by isolating longer fragments of varroa DNA using an advanced gene editing technique called CRISPR,” Dr Bogema said.

    “Our team at the Elizabeth Macarthur Agricultural Institute (EMAI) was able to sequence DNA in a Nanopore sequencer, a portable device which can be used in the field.

    “Time is critical in an emergency response and the new technique delivered 12 times more data in a 24-hour period compared with conventional PCR methods.”

    This valuable investment in research and new technology allows NSW DPIRD to continue to deliver state-of-the-art diagnostic services to support primary industries.

    The rapid genetic diagnostic methods developed by the team can be used to monitor and identify any number of pests, weeds or diseases.

    NSW DPIRD scientist, Gus McFarlane, said the EMAI team sees broad applications for the technique in the ongoing management and surveillance of biosecurity and food safety threats.

    “This technique is simpler and quicker to design and validate than current multiplexed PCR tests and is now being used to study cattle diseases,” Dr McFarlane said.

    “NSW DPIRD’s findings contribute valuable insights to the future development of CRISPR-targeted Nanopore sequencing.”

    More information about the research is available in a recently published paper, Frontiers | Amplicon and Cas9-targeted nanopore sequencing of Varroa destructor at the onset of an outbreak in Australia (frontiersin.org)

    Media contact: pi.media@dpird.nsw.gov.au

    MIL OSI News –

  • MIL-OSI Security: Deputy U.S. Marshal Receives 40 Under 40 Leadership Award at IACP Conference

    Source: US Marshals Service

    On Tuesday, October 22, 2024, Deputy U.S. Marshal Maggie Barone received the 2024 International Association of Chiefs of Police (IACP) 40 Under 40 Award at IACP’s annual conference in Boston, Massachusetts. This award program is designed to recognize 40 law enforcement professionals under the age of 40 from around the world who demonstrate leadership and exemplify commitment to their profession.

    “Deputy Barone embodies what it means to be a great leader and consistently demonstrates exemplary initiative and steadfast determination in her assignments,” said U.S. Marshals Service (USMS) Director Ronald L. Davis, who attended the event. “The level of excellence, dedication, and professionalism she brings with her makes her an ideal recipient of this prestigious award.”

    “Deputy Barone typifies the U.S. Marshals Service’s values of leadership, innovation, and public safety, and brings her extraordinary commitment to apprehending dangerous fugitives, advancing cutting-edge technology, and solving cold cases,” said Investigative Operations Division Assistant Director Peter Marketos. “She has made a profound impact on our agency and the communities we serve.”

    Barone currently serves as the Assistant Chief of the USMS’ Office of Operational Technologies, which is dedicated to pioneering and implementing cutting-edge investigative technologies that enhance the effectiveness and efficiency of law enforcement, while steadfastly upholding and protecting civil liberties.

    Over the past year, Barone served a temporary duty and promotion assignment as the Assistant Chief of the Criminal Intelligence Branch, with a direct oversight role as program manager of SHIELD, a first-of-its-kind technology, enabling Deputies, Investigators, and Task Force Officers to access certain criminal information via agency-issued mobile devices. Barone not only ensured the endeavor succeeded but accomplished this feat under budget and ahead of schedule. 

    “It is an honor to be named alongside such a remarkable group as one of this year’s 40 under 40. Throughout my career with the Marshals Service, I have worked with some of the most hard working and dedicated folks in law enforcement, who have inspired me each step of the way,” Barone said. “This award is not just a reflection of one person’s accomplishments, but that of a team. We never succeed alone, and I want to say thank you to everyone on my team!”

    Barone is a founding member and primary manager of one of the USMS’ newest initiatives, the Cold and Complex Cases (C3) Program. Having read a study regarding fugitive investigations that showed, after 3 years, the chances of finding a fugitive are low, Barone initiated C3 to intervene sooner and more intensely on the USMS’s most significant cold cases.

    Barone has also been part of several national initiatives including USMS’s 15 Most Wanted and has appeared on media programs to further educate the public about USMS and certain high-profile cases. 

    Director Davis with IACP 40 Under 40 Award recipient Assistant Chief Maggie Barone of the Investigative Operations Division.

    MIL Security OSI –

  • MIL-OSI: Pulse Seismic Inc. Reports Q3 2024 Results and Approves Regular Quarterly Dividend

    Source: GlobeNewswire (MIL-OSI)

    CALGARY, Alberta, Oct. 22, 2024 (GLOBE NEWSWIRE) — Pulse Seismic Inc. (TSX:PSD) (OTCQX:PLSDF) (“Pulse” or the “Company”) is pleased to report its financial and operating results for the three and nine months ended September 30, 2024. The unaudited condensed consolidated interim financial statements, accompanying notes and MD&A are being filed on SEDAR (http://www.sedar.com) and will be available on Pulse’s website at http://www.pulseseismic.com.

    Today, Pulse’s Board of Directors approved a regular quarterly dividend of $0.015 per common share. The total dividend will be approximately $764,000 based on Pulse’s 50,904,663 common shares outstanding as of October 22, 2024, and will be paid on November 28, 2024, to shareholders of record on November 14, 2024. This dividend is designated as an eligible dividend for Canadian income tax purposes. For non-resident shareholders, Pulse’s dividends are subject to Canadian withholding tax.

    “While Pulse’s third quarter sales were not as robust as in 2023, it is common in our business to have significant variances between quarterly and annual results, which is why we focus on keeping costs low and maintaining a strong balance sheet,” stated Neal Coleman, Pulse’s President and CEO. “Already in October, we have completed another $2.7 million in sales, bringing year to date total revenue to $20.5 million,” Coleman continued. “We have consistently generated positive quarterly free cashflow and remain committed to providing a significant return of capital to shareholders. Pulse has declared $0.10875 per share in dividends up to today and bought back nearly 1.7 million shares under the NCIB in the first three quarters of the year. Total capital returned to shareholders is approximately 92% of the shareholder free cashflow generated as of September 30, 2024,” he concluded.

    HIGHLIGHTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024

    • A regular quarterly dividend of $0.015 per share and a special dividend of $0.05 per share were declared and paid in the third quarter. For the nine-month period, regular quarterly dividends totalled $0.04375 per share. Regular and special dividends declared and paid in the first three quarters of 2024 totalled $4.8 million;
    • In the nine-month period ended September 30, 2024, Pulse purchased and cancelled, through its normal course issuer bid, 3.2% of the shares outstanding at December 31, 2023, for a total of 1,686,300 common shares at a total cost of approximately $3.7 million (at an average cost of $2.17 per common share including commissions);
    • At September 30, 2024, Pulse was debt-free and held cash of $7.5 million;
    • Shareholder free cash flow(a) was $1.1 million ($0.02 per share basic and diluted) for the third quarter of 2024 compared to $2.8 million ($0.05 per share basic and diluted) for the comparable period in 2023. Shareholder free cash flow was $10.0 million ($0.19 per share basic and diluted) for the nine months ended September 30, 2024, compared to $13.9 million ($0.26 per share basic and diluted) for the nine months ended September 30, 2023;
    • EBITDA(a) was $1.1 million ($0.02 per share basic and diluted) for the three months ended September 30, 2024, compared to $3.3 million ($0.06 per share basic and diluted) for the three months ended September 30, 2023. EBITDA was $11.7 million ($0.23 per share basic and diluted) for the nine months ended September 30, 2024, compared to $16.8 million ($0.32 per share basic and diluted) for the nine months ended September 30, 2023;
    • For the three months ended September 30, 2024, there was a net loss of $1.4 million ($0.03 per share basic and diluted) compared to net earnings of $393,000 ($0.01 per share basic and diluted) for the three months ended September 30, 2023. Net earnings for the nine months ended September 30, 2024, was $2.6 million ($0.05 per share basic and diluted) compared to net earnings of $6.7 million ($0.13 per share basic and diluted) for the nine months ended September 30, 2023; and
    • Total revenue was $2.7 million for the three months ended September 30, 2024, compared to $5.1 million for the three months ended September 30, 2023. For the nine months ended September 30, 2024, total revenue was $17.8 million compared to $22.3 million for the nine months ended September 30, 2023.
     
    SELECTED FINANCIAL AND
    OPERATING INFORMATION    		          
               
               
    (Thousands of dollars except per share data, Three months ended
    September 30,    		 Nine months ended
    September 30,    		 Year ended
    numbers of shares and kilometres of seismic data) 2024 2023 2024 2023 December 31,
      (Unaudited) (Unaudited) 2023
    Revenue        
    Data library sales 2,726 5,103 17,803 22,266 39,127
               
    Amortization of seismic data library 2,278 2,273 6,827 6,833 9,103
    Net earnings (loss) (1,405) 393 2,617 6,700 15,007
    Per share basic and diluted (0.03) 0.01 0.05 0.13 0.28
    Cash provided by operating activities 2,665 10,564 11,860 16,524 23,524
    Per share basic and diluted 0.05 0.20 0.23 0.31 0.44
    EBITDA (a) 1,064 3,289 11,711 16,839 30,431
    Per share basic and diluted (a) 0.02 0.06 0.23 0.32 0.57
    Shareholder free cash flow (a) 1,061 2,793 9,968 13,883 24,829
    Per share basic and diluted (a) 0.02 0.05 0.19 0.26 0.47
               
    Capital expenditures          
    Seismic data – – 225 – –
    Property and equipment 45 14 45 28 28
    Total capital expenditures 45 14 270 28 28
               
    Dividends          
    Regular dividends 766 731 2,255 2,138 2,862
    Special dividends 2,548 7,992 2,548 7,992 18,519
    Total dividends 3,314 8,723 4,803 10,130 21,381
               
    Normal course issuer bid          
    Number of shares purchased and cancelled 519,500 853,158 1,686,300 945,506 1,005,006
    Cost of shares purchased and cancelled 1,245 1,670 3,653 1,830 1,943
               
    Weighted average shares outstanding          
    Basic and diluted 51,071,111 53,135,041 51,640,483 53,436,340 53,237,569
    Shares outstanding at period-end     50,935,563 52,681,363 52,621,863
               
    Seismic library          
    2D in kilometres     829,207 829,207 829,207
    3D in square kilometres     65,310 65,310 65,310
               

    FINANCIAL POSITION AND RATIO

    		          
          September 30, September 30, December 31,
    (Thousands of dollars except ratio)     2024 2023 2023
    Working capital     7,460 7,820 7,468
    Working capital ratio     3.8:1 2.3:1 1.5:1
    Cash and cash equivalents     7,414 9,821 15,948
    Total assets     22,374 34,727 41,249
    Trailing 12-month (TTM) EBITDA (b)     25,303 17,306 30,431
    Shareholders’ equity     19,351 28,225 25,655
               

    (a) The Company’s continuous disclosure documents provide discussion and analysis of “EBITDA”, “EBITDA per share”, “shareholder free cash flow” and “shareholder free cash flow per share”. These financial measures do not have standard definitions prescribed by IFRS and, therefore, may not be comparable to similar measures disclosed by other companies. The Company has included these non-GAAP financial measures because management, investors, analysts and others use them as measures of the Company’s financial performance. The Company’s definition of EBITDA is cash available to invest in growing the Company’s seismic data library, pay interest and principal on long-term debt when applicable, purchase its common shares, pay taxes and the payment of dividends. EBITDA is calculated as earnings (loss) from operations before interest, taxes, depreciation and amortization. EBITDA per share is defined as EBITDA divided by the weighted average number of shares outstanding for the period. The Company believes EBITDA assists investors in comparing Pulse’s results on a consistent basis without regard to non-cash items, such as depreciation and amortization, which can vary significantly depending on accounting methods or non-operating factors such as historical cost. Shareholder free cash flow further refines the calculation by adding back non-cash expenses and deducting net financing costs and current income tax expense from EBITDA. Shareholder free cash flow per share is defined as shareholder free cash flow divided by the weighted average number of shares outstanding for the period.
    (b) TTM EBITDA is defined as the sum of EBITDA generated over the previous 12 months and is used to provide a comparable annualized measure.
    These non-GAAP financial measures are defined, calculated and reconciled to the nearest GAAP financial measures in the Management’s Discussion and Analysis.

    OUTLOOK

    So far in 2024, there have been a variety of factors influencing industry conditions which impact Pulse’s revenue generation. While land sales in Alberta at September 30, 2024 were approximately $300 million, down slightly from the $318 million for the same period in 2023, they remain significantly higher than in recent years going back to 2014. There are several notable infrastructure improvements which will lead to increased offtake capacity for Canadian oil and gas, such as the recent completion of the TMX pipeline expansion and the 2025 forecast completion of LNG Canada’s natural gas export facility. 2024 has also brought improvements in oil prices and an expectation by some for increasing natural gas prices in 2025. These positives, are offset by the factors that create uncertainty for the future, including economic, political, and environmental concerns. Pulse, as always, has low visibility regarding future seismic data library sales levels, regardless of industry conditions. The Company remains focused on business practices that have served throughout the full range of conditions. The Company maintains a strong balance sheet, has zero debt, no capital spending commitments, and a disciplined and rigorous approach to evaluating growth opportunities. This 15-person company, led by an experienced and capable management team, operates with a low-cost structure and focuses on developing excellent client relations as well providing exceptional customer service. Pulse’s strong financial position, high leverage to increased revenue in its EBITDA margin and careful management of its cash resources have resulted in the return of capital to shareholders through regular and special dividends and the repurchase of its shares.

    CORPORATE PROFILE

    Pulse is a market leader in the acquisition, marketing and licensing of 2D and 3D seismic data to the western Canadian energy sector. Pulse owns the largest licensable seismic data library in Canada, currently consisting of approximately 65,310 square kilometres of 3D seismic and 829,207 kilometres of 2D seismic. The library extensively covers the Western Canada Sedimentary Basin, where most of Canada’s oil and natural gas exploration and development occur.

    For further information, please contact:
    Neal Coleman, President and CEO
    Or
    Pamela Wicks, Vice President Finance and CFO
    Tel.: 403-237-5559
    Toll-free: 1-877-460-5559
    E-mail: info@pulseseismic.com.
    Please visit our website at http://www.pulseseismic.com

    This document contains information that constitutes “forward-looking information” or “forward-looking statements” (collectively, “forward-looking information”) within the meaning of applicable securities legislation. Forward-looking information is often, but not always, identified by the use of words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “forecast”, “target”, “project”, “guidance”, “may”, “will”, “should”, “could”, “estimate”, “predict” or similar words suggesting future outcomes or language suggesting an outlook.

    The Outlook section herein contain forward-looking information which includes, but is not limited to, statements regarding:

    >   The outlook of the Company for the year ahead, including future operating costs and expected revenues;
    >   Recent events on the political, economic, regulatory, public health and legal fronts affecting the industry’s medium- to longer-term prospects, including progression and completion of contemplated pipeline projects;
    >   The Company’s capital resources and sufficiency thereof to finance future operations, meet its obligations associated with financial liabilities and carry out the necessary capital expenditures through 2024;
    >   Pulse’s capital allocation strategy;
    >   Pulse’s dividend policy;
    >   Oil and natural gas prices and forecast trends;
    >   Oil and natural gas drilling activity and land sales activity;
    >   Oil and natural gas company capital budgets;
    >   Future demand for seismic data;
    >   Future seismic data sales;
    >   Pulse’s business and growth strategy; and
    >   Other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results and performance, as they relate to the Company or to the oil and natural gas industry as a whole.
     

    By its very nature, forward-looking information involves inherent risks and uncertainties, both general and specific, and risks that predictions, forecasts, projections and other forward-looking statements will not be achieved. Pulse does not publish specific financial goals or otherwise provide guidance, due to the inherently poor visibility of seismic revenue. The Company cautions readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in such forward-looking information. These factors include, but are not limited to:

    >   Uncertainty of the timing and volume of data sales;
    >   Volatility of oil and natural gas prices;
    >   Risks associated with the oil and natural gas industry in general;
    >   The Company’s ability to access external sources of debt and equity capital;
    >   Credit, liquidity and commodity price risks;
    >   The demand for seismic data and;
    >   The pricing of data library licence sales;
    >   Cybersecurity;
    >   Relicensing (change-of-control) fees and partner copy sales;
    >   Environmental, health and safety risks;
    >   Federal and provincial government laws and regulations, including those pertaining to taxation, royalty rates, environmental protection, public health and safety;
    >   Competition;
    >   Dependence on key management, operations and marketing personnel;
    >   The loss of seismic data;
    >   Protection of intellectual property rights;
    >   The introduction of new products; and
    >   Climate change.
     

    Pulse cautions that the foregoing list of factors that may affect future results is not exhaustive. Additional information on these risks and other factors which could affect the Company’s operations and financial results is included under “Risk Factors” in the Company’s most recent annual information form, and in the Company’s most recent audited annual financial statements, most recent MD&A, management information circular, quarterly reports, material change reports and news releases. Copies of the Company’s public filings are available on SEDAR at www.sedar.com.

    When relying on forward-looking information to make decisions with respect to Pulse, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Furthermore, the forward-looking information contained in this document is provided as of the date of this document and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking information, except as required by law. The forward-looking information in this document is provided for the limited purpose of enabling current and potential investors to evaluate an investment in Pulse. Readers are cautioned that such forward-looking information may not be appropriate, and should not be used, for other purposes.

    PDF available: http://ml.globenewswire.com/Resource/Download/684389a6-5b96-4478-ba47-39eb0d1160a8

    The MIL Network –

  • MIL-Evening Report: Apia Ocean Declaration to be ‘crown jewel’ of CHOGM climate ‘fight back’

    By Sialai Sarafina Sanerivi in Apia

    The Ocean Declaration that will be agreed upon at the Commonwealth Heads of Government Meeting (CHOGM) this week will be known as the Apia Ocean Declaration.

    In an exclusive interview with the Samoa Observer, Commonwealth Secretary-General Patricia Scotland said members were in a unique position to bring their voices together for the oceans, which have long been neglected.

    “The Apia Ocean Declaration aims to address the rising threats to our ocean faces, especially from climate change and rising sea levels,” she said.


    Commonwealth pushes for ocean protection with historic Apia Ocean Declaration. Video: Samoa Observer

    Scotland, reflecting on her tenure as Secretary-General, noted the privilege of serving the Commonwealth, a diverse family of 56 countries comprising 2.7 billion people.

    “I am very much the child of the Commonwealth. With 60 percent of our population under 30 years, we must prioritise their future.”

    Scotland reflected that upon assuming her role, she recognised immediately that addressing climate change would be a key priority for the Commonwealth.

    “Why? Because we have 33 small states, 25 small island states and we were the ones who were really suffering this badly,” she said.

    Pacific a ‘big blue ocean state’
    “We also knew in 2016 that nobody was looking at the oceans. Now, the Pacific is a big blue ocean state.

    “But it’s one of the most under-resourced elements that we have. And yet, look at what was happening. The hurricanes and the cyclones were getting bigger and bigger.

    “Why? Because our ocean had absorbed so much of the heat, so much of the carbon, and now it was starting to become saturated. So before, our ocean acted as a coolant. The cyclone would come, the hurricane would come, they’d pass over our cool blue water, and the heat would be drawn out.”

    The Apia Ocean Declaration emerged from a pressing need to protect the oceans, especially given the devastating impact of climate change on coastal and island nations.

    “We realised that while many discussions were happening globally, the oceans were often overlooked,” Scotland remarked.

    “In 2016, we recognised the necessity for collective action. Our oceans absorb much of the carbon and heat, leading to increasingly severe hurricanes and cyclones.”

    Scotland has spearheaded initiatives that brought together oceanographers, climatologists, and various stakeholders.

    Commonwealth Secretary-General Patricia Scotland . . . discussing this week’s planned Apia Ocean Declaration at CHOGM, highlighting the urgent need for global action to protect oceans. Image: Junior S. Ami/Samoa Observer

    Worked in silos ‘for too long’
    “We worked in silos for too long. It was time to unite our efforts for the ocean’s health.

    “That’s when we realised that nobody had their eye on our oceans, but of the 56 Commonwealth members, many of us are island states, so our whole life is dependent on our ocean. And so that’s when the fight back happened.”

    This collaboration resulted in the establishment of the Commonwealth Blue Charter, a significant framework focused on ocean conservation.

    “Fiji’s presidency at the UN Oceans Conference was a turning point. Critics said it would take years to establish an ocean instrument, but we achieved it in less than ten months.”

    “We are not just talking; we are implementing solutions.”

    Scotland also addressed the financial challenges faced by many small island states, particularly regarding climate funding.

    “In 2009, $100 billion was promised by those who had been primarily responsible for the climate crisis, to help those of us who contributed almost nothing to get over the hump.

    Hard for finance applications
    “But the money wasn’t coming. And in those days, many of our members found it so hard to put those applications together.”

    To combat this issue, the Commonwealth established a Climate Finance Access Hub, facilitating over $365 million in funding for member states with another $500 million in the pipeline.

    “But this has caused us to say we have to go further,” she added.

    “We’re using geospatial data, we have to fill in the gaps for our members who don’t have the data, so we can look at what has happened in the past, what may happen in the future, and now we have AI to help us do the simulators.

    “The Ocean Ministers’ Conference highlighted the importance of ensuring that countries at risk of disappearing under the waves can maintain their maritime jurisdiction,” Scotland asserted.

    “The thing that we thought was so important is that those countries threatened with the rising of the sea, which could take away their whole island, don’t have certainty in terms of that jurisdiction. What will happen if our islands drop below the sea level?

    “And we wanted our member states to be confident that if they had settled their marine boundaries, that jurisdiction would be set in perpetuity. Because that was the biggest guarantee; I may lose my land, but please don’t tell me I’m going to lose my ocean too.

    Target an ocean declaration
    “So that was the target for the Ocean Ministers’ Conference. And out of that came the idea that we would have an ocean declaration.

    “It is that ocean declaration that we are bringing here to Samoa. And the whole poignancy of that is Samoa is the first small island state in the Pacific ever to host CHOGM. So wouldn’t it be beautiful if out of this big blue ocean state, this wonderful Pacific state, we could get an ocean declaration which could in the future be able to be known as the Apia Ocean Declaration? Because we would really mark what we’re doing here.

    “What the Commonwealth has been determined to do throughout this whole period is not just talk, but take positive action to help our members not only just to survive, but to thrive.

    “And if, which I hope we will, we get an agreement from our 56 states on this ocean declaration, it enables us to put the evidence before everyone, not only to secure what we need, but then to say 0.05 percent of the money is not enough to save our oceans.

    “Oceans are the most underfunded area.

    “I hope that all the work we’ve done on the Universal Vulnerability Index, on the nature of the vulnerability for our members, will be able to justify proper money, proper resources being put in.

    “And you know what’s happening in this area; our fishermen are under threat.

    “Our ability to use the oceans in the way we’ve used for millennia to feed our people, support our people, is really under threat. So this CHOGM is our fight back.”

    As the meeting progresses, the emphasis remains on achieving consensus among the 56 member states regarding the Apia Ocean Declaration.

    Republished from the Samoa Observer with permission.

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Let’s tax carbon: Ross Garnaut on why the time is right for a second shot at carbon pricing

    Source: The Conversation (Au and NZ) – By Ross Garnaut, Professorial Research Fellow in Economics, The University of Melbourne

    Damitha Jayawardena/Shutterstock

    Australia now has a government and parliament wanting timely transition to net zero. We have a government and parliament wanting to build Australia as the renewable energy superpower of the zero-carbon world economy. For the time being, we have favourable international settings for using our opportunity.

    The government of Australia has embraced this superpower narrative, taken some big steps towards supporting its emergence, and articulated sound principles for guiding further policy development.

    But Australians in business and the community wanting to make large efforts to turn opportunity into reality find themselves in a tangle of policy uncertainty and contradiction.

    The source of the problem is the abolition of carbon pricing in 2014. Since then, the Commonwealth government has worked within constraints that rule out success.

    We can make a start towards net zero and becoming a renewable energy superpower without moving the constraints, but we can’t get far. This is a problem for any government of Australia, and not only for the current Labor government. We will not rise sustainably out of the post-pandemic dog days until we get energy policy right.

    Striking the right balance

    Striking the right balance between state intervention and market exchange is always essential for successful economic development, in all places.

    The market generally delivers goods and services more cost-effectively than the state where there is genuine competition among suppliers and purchasers of goods and services.

    The difference is especially large and important at a time of structural change and uncertainty. State decisions inevitably tend towards continuation on established paths and slow response to new opportunities.

    Australia will not make use of more than a small fraction of the superpower opportunities available to it without immense contributions from an innovative, competitive private business sector.

    So we have to design energy and related markets that provide the widest possible scope for competition among enterprises within clear rules understood in advance of investment decisions by all market participants.

    The state has to do well the things that only the state can do. Because government capacity is a finite resource, it is much more likely that it will do the essential things well if it doesn’t try to do the things that markets do well.

    The state must define the boundaries between the services that it delivers and those to be delivered by the market.

    In the electricity sector, government must take responsibility for design of the market rules and compliance with them. It must provide the natural monopoly services of electricity transmission and hydrogen transportation and storage. It must take ultimate responsibility for system security and reliability.

    For any market to work, individual market participants must be blocked by regulation from damaging others through their business decisions, or subject to a tax equal to the costs they impose on others. And they must be rewarded for large benefits that they confer on others.

    This is essential economics. Its understatement in Productivity Commission and financial media commentary on energy and climate policy discussion over the past decade reveals the debasement of Australian political culture that gave us the dog days.

    It has been politically incorrect to tell the truth out loud.

    It’s time for carbon pricing

    A crucial element of post-2030 market design is introduction of a green premium for zero-carbon energy.

    It is obviously necessary for low-cost decarbonisation and expansion of the electricity sector and building Australia as a renewable energy superpower. The green premium is crucial for securing international market access for the zero-carbon export industries.

    One of the dog days constraints on policy is that there should be no mandatory demands on private investors. Those constraints must be broken for the green premium to reflect the social cost of carbon, as it must if we are to achieve net zero by 2050 and build Australia as the renewable energy superpower.

    The economically efficient way of achieving the premium is carbon pricing. It would be most efficient within an economy-wide system, although it could be introduced initially for the electricity sector and extended to other industries later.

    Investors now need to know soon that there will be a premium reasonably related to the social cost of carbon after the Renewable Energy Target ends in 2030.

    What matters for the superpower industries is the green premiums for which they are eligible in other countries. Pending the emergence of appropriate premiums, the Commonwealth is proposing payments from the budget.

    That is appropriate. It can get the early movers started. It would be expensive if it continued for long. The superpower industries will grow rapidly if they have access to premiums corresponding to the social cost of carbon. Over time, payments from the Australian budget will be replaced by market premiums in destination countries.

    There are several possible forms of carbon pricing. The system operating in Australia from 2012 to 2014 was economically and environmentally efficient.

    It would have been linked to the EU Emissions Trading System from July 1 2014 if it had not been abolished the day before. The Australian carbon price would be equal to the European price. We would be introducing a European-type Carbon Border Adjustment Mechanism to ensure that Australian producers were not disadvantaged by competition in the domestic market from suppliers who were not subject to similar carbon constraints. The ETS (emissions trading scheme) would be contributing around 2% of GDP to public revenues – going a substantial part of the way to answering the daunting budget challenge to restoration of Australian prosperity.

    Part of that increased revenue could support payments to power users to ensure there was no increase in power prices to users until expansion of renewable generation and storage had brought costs down – along the lines of the A$300 per household introduced in the 2024 budget, but larger.

    The arrangements would provide automatic access for zero-carbon Australian goods to the high-priced European market. There would be no need to provide for a green premium for sales to Europe from the Australian market. The green premiums in other markets would at first need to be covered, as they are now, from the Australian public revenue.

    A carbon solutions levy

    Rod Sims (former chair of the Australian Competition and Consumer Commission) and I have suggested a carbon solutions levy. It is administratively simpler than the ETS. It would initially raise much more revenue.

    We propose exemption for coal and gas exports to countries in which Australian zero-carbon exports attract a premium comparable to the EU carbon price, even if it is not generated through an ETS.

    We would hope that if the carbon solutions levy were to be introduced from 2030, our major trading partners would by that time have introduced green premiums that justify exemption from the levy for coal and gas exports to those countries.

    The European Union would be exempt from the beginning. The Northeast Asian economies are moving towards eventual justification of exemption. China now has a country-wide emissions trading system.

    The carbon price in July 2024 is about A$21 per tonne, having increased by 50% since early in the year. The price is expected to continue rising until it is playing a major role in transformation of Chinese industry.

    Incidentally, China undertook to the United Nations Framework Convention on Climate Change that its emissions would peak by 2030, but its rapid expansion of renewable energy generation, electric vehicles and zero-carbon industrial technologies suggest that the peak may have come in 2023.

    Japan is working on direct budgetary support for importers of zero-carbon products which could pass through into a premium for zero-carbon exports from Australia.

    During a visit in April 2024, I was advised that the Japanese government is working towards issue of “green bonds” to pay for the premium. A carbon tax from 2035 would meet the cost of servicing and retiring the bonds.

    Korea and Taiwan are introducing their own mechanisms for supporting premiums for zero-carbon imports.

    One initial criticism of the carbon solutions levy is that it would cause leakage of Australian exports to competing suppliers of gas and coal. There would be some leakage, alongside substantial transfers from rents to the public revenues, and for metallurgical coal in particular, some increase in export prices.

    The price increase would introduce an element of green premium for Australian green iron exports. The Superpower Institute (a non-profit research organisation founded by Sims and I) has commissioned the Centre of Policy Studies at Victoria University to quantify the extent of leakage, transfers from rent and higher export prices. The results will be available for public discussion early in 2025. The study will also calculate the effect of the levy on Australian public finances, real incomes and real consumption.

    Regional considerations

    Australia’s main competitor in regional coal markets is Indonesia. Its main competitors in gas markets are Papua New Guinea, East Timor, Indonesia, Brunei and the Middle East petroleum producers.

    No informed person would suggest that there could be an economic problem with leakage to the Middle East: Saudi Arabia and the small Gulf states extract revenue from petroleum exports at much higher rates per dollar than Australia would after imposition of the levy.

    There is a case in the Australian national interest for not seeing expansion of export sales from Papua New Guinea and East Timor as being entirely a waste.

    But in their national interest and ours, I suggest that we seek to negotiate a four-way agreement on climate and energy with Indonesia, East Timor and Papua New Guinea.

    We would all impose carbon solutions levy-type levies at similar rates. This would be a major source of revenue for all of us.

    Participation of Indonesia removes leakage of coal exports. Indonesia already has an emissions trading scheme, although it generates a carbon price of only a few dollars per tonne.

    It may choose to remove other imposts on fossil carbon exports at the time of introduction of new carbon-related measures – such as the requirement to make 35% of coal exports available at prices well below international prices for domestic power generation.

    Participation of the four countries removes the leakage issue for gas. The four neighbours would cooperate in major development programs based on expansion of zero-carbon energy supply and goods production.

    There is active discussion in Indonesia of archipelago-wide electricity transmission infrastructure to allow the superior renewable energy resources of the outer islands – Papua, Nusa Tenggara, Sulawesi, Kalimantan, Sumatra – to contribute to decarbonisation and growth of zero-carbon industry everywhere, including in the Java heartland.

    The Indonesian grid would run close to neighbouring Australia, Papua New Guinea, East Timor, East and West Malaysia and the Philippines. It would be the geopolitically practical means of linking Australia and Singapore, as envisaged in the SunCable project in the Northern Territory.

    The Indonesian national grid could link to the Australian Sungrid discussed in my book The Superpower Transformation in Darwin and the Pilbara.

    The alternatives to carbon pricing are weak

    The alternatives to economy-wide carbon pricing are likely to turn out to be short-lived expedients that lead sooner rather than later to the return of today’s incoherence and underperformance in energy and climate policy and performance.

    The state must provide reliability of power supply to the general population.

    The Commonwealth government can do this without distorting competitive electricity markets by establishing an energy reserve I have proposed in my book The Superpower Transformation.

    The superpower industries depend on electricity and hydrogen markets operating efficiently and embodying carbon prices. Otherwise the market design issues relevant to their development are similar to those for electricity.

    Negative carbon externalities need to be corrected by taxation or alternative carbon pricing mechanisms. Positive externalities from innovation should be rewarded.

    Positive innovation externalities are important in the introduction of new industries, technologies and business models for the zero-carbon economy.

    Economy-wide carbon pricing at the social cost of carbon is essential to getting the balance right between state intervention and market exchange.

    Once it is in place with fiscal rewards for innovation, the government can let businesses decide which new industries and technologies warrant investment.

    Once carbon pricing is known to be coming into place reasonably soon, there is no further need for government underwriting of investment in power generation.

    There is no need to include a climate trigger in assessment of a project of any kind: if it emits carbon, it will pay for the climate damage it does.

    There is no need for government to take a view on climate grounds about the merits of nuclear power generation. It is zero-emissions generation and, like renewable energy, not subject to the carbon price. If it can compete with other forms of generation, it will find a place in private investment decisions on the energy mix.

    There is no need for government investment in nuclear power generation. Private investors will have the same incentives to invest in nuclear as in other zero-carbon generation technologies.

    There will be no need for the government to take a view on incentives for carbon capture and storage. If it is effective and emissions are actually reduced, carbon payments will be correspondingly reduced.

    The carbon price will allow private investors to get on with the job of expanding renewable energy supply at a rapid pace and decarbonising the economy more generally.

    This is an edited extract from Ross Garnaut’s new book, Let’s Tax Carbon: And Other Ideas for a Better Australia.

    Ross Garnaut is a Director and shareholder of Zen Energy. Together with Rod Sims, Ross is a co-founder and Director of The Superpower Institute, a not for profit think tank.

    – ref. Let’s tax carbon: Ross Garnaut on why the time is right for a second shot at carbon pricing – https://theconversation.com/lets-tax-carbon-ross-garnaut-on-why-the-time-is-right-for-a-second-shot-at-carbon-pricing-241806

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI USA: Congressman Cohen Announces $3 Million Grant for Memphis International Airport

    Source: United States House of Representatives – Congressman Steve Cohen (TN-09)

    MEMPHIS – Congressman Steve Cohen (TN-9), a senior member of the Committee on Transportation and Infrastructure and Ranking Member of its Aviation Subcommittee, today announced that the Memphis International Airport will receive $3 million for the reconstruction of a portion of the Terminal Access Road which will allow for the expansion of the terminal building. The work will provide easier access to the front of the airport, including for Americans with Disabilities Act (ADA) passengers, where four lanes will be curb-less. The funding came from the Infrastructure Investment and Jobs Act that Congressman Cohen alone among the current Tennessee Congressional Delegation voted for.

    Congressman Cohen made the following statement:

    “This Airport Terminal Program funding will enhance Americans with Disabilities Act access and allow for the expansion of the terminal building at our airport. Memphis International Airport is an economic engine for our entire region. This investment strengthens its ability to attract and serve the flying public.”

    # # #

     

    MIL OSI USA News –

  • MIL-OSI Australia: National Children’s Week highlights Australia’s commitment to kids

    Source: Ministers for Social Services

    National Children’s Week marks an important opportunity for the Albanese Labor Government to reiterate its commitment to a brighter future for Australia’s children.

    This year, National Children’s Week’s theme is based on UNCRC Article 24: Children have the right to a clean and safe environment, a concept that underscores multiple policies, programs, and initiatives delivered by the Government.

    National Children’s Week builds on the Government’s work and investments to ensure all children can grow up safe and supported, and have the opportunity to thrive.

    “At the heart of our policies and commitments are the lives of children across Australia. This week is a time to reflect on what we are doing to ensure our children, wherever they live, are able to engage in play and recreational activities appropriate to their age and to participate freely in their community,” Minister Rishworth said.

    “Our Government is committed to providing $12.4 million of funding over four years to improve the development and wellbeing of children, provide social and parenting support for parents and carer, and increase feelings of belonging and connection in families with their communities.

    “This funding is already making a positive difference for children and their families with increased numbers of playgroups operating, some within regional and remote areas, and others for specific priority groups such as culturally and linguistically diverse communities.

    “Additionally in February this year, the Government committed a further $150,000 to Toy Libraries Australia to establish 10 new toy libraries in areas of growth or disadvantage, and to support up to 50 toy libraries to purchase evidence-based resources and toys for families and children with additional support needs.”

    Minister Rishworth said playgroups and toy libraries were a “key entry point” to early childhood education for vulnerable families, improving the early development and wellbeing of children, improving parent-child relationships and increasing feelings of belonging and connection in families with their communities.

    Along with delivering playgroups and toy libraries – including an investment in a pilot for First Nations playgroups – the Government is continuing to deliver a variety of policy frameworks to ensure children are offered the best childhood possible.

    The Early Years Strategy 2024-2034, released in May, outlines the Government’s vision to best support Australia’s children and their families in the early years.

    This is underscored by the national leadership provided under Safe and Supported: The National Framework for Protecting Australia’s Children 2021-2031, which aims to reduce child abuse and neglect and its intergenerational impacts.

    “Frameworks like the Early Years Strategy and Safe and Supported are essential to ensure the Government is providing national leadership that draws on the direct needs of children. It is an informed approach with a long-term vision to build a better future for Australia’s children,” Minister Rishworth said.

    “Through our work on these frameworks, we have made sure to listen to the voice of the child, leading to the announcement of the legislated, independent and empowered National Commissioner for Aboriginal and Torres Strait Islander Children and Young People.

    “This year has been a big year for children and family policy, and we hope to continue to deliver on our new, integrated, holistic, whole-of-Commonwealth approach to the early years.”

    CEO of Toy Libraries Australia Debbie Williams highlighted that the Government’s investment in Toy Libraries has supported 6000 more families to join a local Toy Library, saving them $1.75m this year alone.

    “Many thousands of families will enjoy borrowing from these new toy libraries for decades to come,” Ms Williams said.

    “Toy libraries not only build strong families and communities through play, they also introduce environmental sustainability principles to young children and save millions of toys from going into waste each year.”

    Ms Williams emphasised that with cost of living pressures really impacting families with young children, an increasing number of families are joining toy libraries to support their children’s learning while saving money.

    “Five of the new toy libraries supported by the Australian Government are Toy Well Toy Libraries. These free toy libraries are located in schools with high migrant and refugee populations and run by local migrant women, creating new friendships and connections for the families,” she said.

    National Children’s Week runs until 27 October.

    More information on the Government’s work to improve outcomes for children is available on the Department of Social Services website:

    MIL OSI News –

  • MIL-OSI China: China prepares to launch Shenzhou-19 crewed spaceship

    Source: China State Council Information Office 2

    This photo taken on Oct. 22, 2024 shows the combination of the Shenzhou-19 crewed spaceship and a Long March-2F carrier rocket being transferred to the launch area. [Photo/Xinhua]
    The combination of the Shenzhou-19 crewed spaceship and a Long March-2F carrier rocket has been transferred to the launch area, the China Manned Space Agency (CMSA) said on Tuesday.
    According to the CMSA, facilities and equipment at the launch site are in good condition, while various pre-launch function checks and joint tests will be carried out as planned.
    The spaceship will be launched at an appropriate time in the near future, the CMSA said.

    This photo taken on Oct. 22, 2024 shows the combination of the Shenzhou-19 crewed spaceship and a Long March-2F carrier rocket being transferred to the launch area. [Photo/Xinhua]

    MIL OSI China News –

  • MIL-OSI China: China’s dark energy detector granted SKA pathfinder status

    Source: China State Council Information Office 2

    This undated file photo shows an array of China’s Tianlai Experiment, a project aimed to test key technologies for detecting dark energy, in the Kazak Autonomous County of Barkol in northwest China’s Xinjiang Uygur Autonomous Region. [Photo/National Astronomical Observatories of the Chinese Academy of Sciences]
    China’s Tianlai Experiment, a scientific project aimed at detecting dark energy using a radio telescope array, has been officially granted “pathfinder” status by the Square Kilometre Array (SKA) Observatory, according to the National Astronomical Observatories (NAOC) of the Chinese Academy of Sciences.
    The SKA is a next-generation giant radio telescope array that is under construction. Once completed, it will be the world’s largest radio telescope array. China, South Africa, the United Kingdom, Australia and six other nations make up the project’s official membership.
    Facilities involved in SKA-related science and technology studies are called SKA pathfinders or SKA precursors. Several radio telescopes around the world have been certified as SKA pathfinders, said Chen Xuelei, chief scientist of the Tianlai Experiment and a researcher at the NAOC, which operates the project.
    The latest discoveries from these pathfinders can provide new scientific exploration opportunities for the SKA, and their related technologies may be applied to the construction of the SKA and future radio telescopes, Chen said.
    Located in the Kazak Autonomous County of Barkol in northwest China’s Xinjiang Uygur Autonomous Region, the Tianlai Experiment consists of two arrays: the Tianlai cylinder array, which has three adjacent cylindrical reflectors with a total of 96 receivers, and the Tianlai dish array, which consists of 16 dishes, each six meters in diameter.
    The project aims to test key technologies for detecting dark energy, which is thought to make up about 70 percent of the cosmos and drive the acceleration of its expansion.
    Dark energy cannot be detected directly, but its abundance and properties can be analyzed by observing how the expansion rate of the universe changes over time. The “sound” of the Big Bang left an imprint on the matter distribution in the early universe that has now grown into large-scale structures. By studying the large-scale matter distribution, astronomers can derive these “baryon acoustic oscillations” and determine the cosmic expansion rate over time.
    Tianlai, which literally means “heavenly sounds,” aims to detect these acoustic oscillations. It will search for the 21-centimeter signals emitted by hydrogen atoms, with hydrogen being the most abundant element in the universe. As the universe is expanding, these 21-centimeter signals have gradually shifted to longer wavelengths in a process referred to as “redshift.”
    The Tianlai Experiment will cover a range of radio wavelengths — thereby also covering redshifted signals — to generate a map of the three-dimensional distribution of matter in the universe, Chen said.
    The Tianlai research team is composed of scholars and graduate students at the NAOC and other Chinese universities, as well as experts and scholars from foreign research institutions. 

    MIL OSI China News –

  • MIL-OSI China: Chinese private rocket company completes static fire test of ZQ-2E rocket

    Source: China State Council Information Office 2

    The Chinese private rocket company LandSpace successfully conducted the static fire test on the second stage of the Zhuque-2E (ZQ-2E) carrier rocket on Monday.
    The test conditions covered typical flight situations, verified the correctness of the overall and subsystem design of the ZQ-2E second stage, and examined the matching of the interfaces and operations between systems, according to the company.
    ZQ-2E is a modified version of the company’s self-developed ZQ-2 carrier rocket, which is the world’s first liquid oxygen-methane rocket to enter into orbit, a breakthrough in the application of new low-cost liquid propellant for China’s launch vehicles.
    According to the LandSpace, the ZQ-2E is a medium-class liquid-fueled carrier rocket with liquid oxygen and methane as propellant.
    This test provided important data and technical support for the future first flight test mission and regular launch missions of the ZQ-2E carrier rocket, the company said. 

    MIL OSI China News –

  • MIL-OSI China: China’s air, water quality improves in first three quarters

    Source: China State Council Information Office 2

    New data has shown a steady improvement in China’s air and water quality in the first nine months of this year.
    During the January-September 2024 period, the average density of PM2.5 in 339 Chinese cities at or above the prefecture level stood at 27 micrograms per cubic meter, down 3.6 percent year on year, Pei Xiaofei, spokesperson for the Ministry of Ecology and Environment, told a press conference on Tuesday.
    The proportion of days with good air quality in these cities during this period was 85.8 percent, up 1.6 percentage points from the same period last year, Pei said.
    Pei added that 88.5 percent of monitored sections had “fairly good” surface water quality — at or above Grade III in the country’s five-tier water quality system, an increase of 1.4 percentage points year on year.
    The share of surface water at Grade V, the lowest level, stood at 0.7 percent, remaining flat compared with a year earlier, according to the spokesperson.
    China has steadfastly advanced its “Beautiful China” initiative, emphasizing ecological and environmental protection as a top priority in its social and economic development.

    MIL OSI China News –

  • MIL-OSI China: Beijing, Chengdu top China’s sci-fi city index

    Source: China State Council Information Office 3

    On Oct. 18, China’s latest science fiction city index was released, with Beijing and Chengdu topping the list, providing a reference for Chinese cities to develop their sci-fi industries and learn from each other.

    Professor Wu Yan speaks at the release of the 2024 China Science Fiction City Index Report in Chengdu, Sichuan province, Oct. 18, 2024. [Photo courtesy of China Science Fiction Research Center]

    The 2024 China Science Fiction City Index Report, compiled by the China Science Fiction Research Center, Chengdu Institute for High-Quality Development, and Shenzhen Science and Fantasy Growth Foundation, considers various factors such as economic foundation, technological innovation, cultural consumption and policy environment. The report evaluated 26 cities in China, each with a GDP exceeding 1 trillion yuan in 2023.

    “We hope to build a scientific evaluation index system to comprehensively and objectively reveal the differences and characteristics of different cities in terms of sci-fi development, providing a reference for cities to develop sci-fi and learn from each other,” said Wu Yan, a Chinese sci-fi pioneer, scholar, writer and professor at the Southern University of Science and Technology’s Center for the Humanities. Wu presented the report on behalf of the project team during the 2024 TianWen Chinese Science Fiction Literature Contest awards ceremony, which was held last weekend in Chengdu, Sichuan province.

    In designing the indicators, the project team followed four major principles: “scientific and practical,” “stable and dynamic,” “measurable and comparable” and “comprehensive and representative.” Based on the core concepts and strategic orientation of evaluation, they crafted three primary indicators: “industry development,” “cultural dissemination” and “fusion capabilities.”

    Each primary indicator was composed of secondary indicators, such as the intensity of sci-fi film and TV consumption, and the number of sci-fi related policy documents, sci-fi writers, sci-fi books published and sci-fi events. The selection of secondary indicators focused on measurability and representativeness, aiming to systematically assess the level of sci-fi development in cities in a multi-dimensional manner.

    The top 10 cities according to the selection criteria were: Beijing, Chengdu, Shanghai, Nanjing, Shenzhen, Hangzhou, Chongqing, Guangzhou, Wuhan and Changsha.

    Beijing, the capital of China and the city with the most resources, scored 81.01. The city has developed a sci-fi industry that encompasses content creation, IP conversion, special effects production, hard technology and immersive experiences. In 2020, the China Association for Science and Technology and the Beijing municipal government agreed to establish a sci-fi industry cluster at Shougang Park. The following year, Shijingshan district, where the park is located, launched measures to support and fund the formation of the nation’s sci-fi industry consortium.

    Chengdu, known as the “capital of Chinese sci-fi” and host of the 81st World Science Fiction Convention in 2023, scored 78.44. The magazine Science Fiction World, a leading global sci-fi publication for over 40 years which is headquartered in the city, has launched the careers of numerous prominent writers, including Liu Cixin. The city also holds prestigious awards such as the Galaxy Awards and the Chinese Nebula Awards.

    In 2023, Chengdu’s sci-fi industry revenue hit 23.52 billion yuan, up by 17.49% from the previous year, showcasing robust growth. Chen Ling, secretary general of the China Science Writers Association and executive deputy director of the China Science Fiction Research Center, highlighted the crucial role Chengdu’s sci-fi industry plays in national development, adding that the city excels in reading, gaming and merchandise.

    Another city worth noting is Shenzhen, which ranked first in terms of sci-fi integration capability. Over the years, the city’s substantial economic resources, robust innovation environment and talent attraction have laid a solid foundation for integrating various industries with sci-fi. Notably, in sci-fi infused technological innovation and urban construction, Shenzhen has demonstrated significant leadership.

    San Feng, a sci-fi researcher and project leader of the report, explained to China.org.cn that after Beijing and Chengdu, the other eight cities in the top 10 features cities from the Yangtze River Delta and the Guangdong-Hong Kong-Macao Greater Bay Area, benefiting from unique geographical advantages and supportive policies that enhance their competitiveness and potential for sci-fi development. Cities like Shanghai, Nanjing and Hangzhou in the Yangtze River Delta are notable for their sci-fi content industry and leisure tourism, with significant advancements in sci-fi films and games. Meanwhile, the Guangdong-Hong Kong-Macao Greater Bay Area has shown strong growth in sci-fi animation, games and merchandise manufacturing.

    Other cities’ sci-fi development has not yet achieved economies of scale. However, as national policies expand and regional economies develop synergistically, by leveraging local characteristics and resources, they can enhance sci-fi development, San said.

    MIL OSI China News –

  • MIL-OSI China: Mainland official meets with Taiwan cultural circle personages in Beijing

    Source: China State Council Information Office 3

    A mainland Taiwan affairs official on Tuesday met with personages of Taiwan’s cultural circle who have traveled to Beijing to attend the first Cross-Strait Chinese Culture Summit.

    Song Tao, head of both the Taiwan Work Office of the Communist Party of China Central Committee and the Taiwan Affairs Office of the State Council, met with personages including Liu Chao-Shiuan, chairman of the Foundation of Chinese Culture for Sustainable Development, ahead of the three-day summit which is set to open on Wednesday.

    During the meeting, Song called for enhancing cultural exchange across the Taiwan Strait and joint efforts to promote Chinese culture.

    He said that both sides of the Strait belong to one China, and that people on both sides share the Chinese culture.

    Song voiced support for the cultural circle in Taiwan to counter “Taiwan independence in culture.”

    He also called for closer bonds to be forged between compatriots from both sides of the Strait, and for confidence in Chinese culture to be solidified to build a more powerful source of inspiration, with the aim of realizing national rejuvenation and securing new successes in the development of Chinese culture on the journey toward national reunification.

    Noting that Chinese culture is the most fundamental connection between the two sides of the Strait, Liu expressed the hope for deepening cultural exchange and mutual understanding, carrying forward the values and wisdom of Chinese culture, and enhancing the foundation for peaceful cross-Strait development. 

    MIL OSI China News –

  • MIL-OSI China: Hong Kong museum displays early Chinese photography collection

    Source: China State Council Information Office 3

    Over 500 photographs taken in the late Qing Dynasty (1644-1911) and early 20th century will be on display at the Hong Kong Museum of History from Wednesday, selected from over 24,000 photographs in a collection donated by the Moonchu Foundation on Tuesday.

    The exhibits captured moments of major historical events such as the Second Opium War (1856-1860) and the First Sino-Japanese War (1894-1895), and provided records of the urban landscapes, historic buildings and people’s livelihood in those days. Most of the exhibits have never been publicly displayed before.

    Highlights include a picture taken 180 years ago of Nam Van in Macao, which is one of the earliest photographs of China in existence today. Notable works like stereoscopic photos taken by American photographer James Ricalton in 1900 and landscape photographs taken by famous Chinese photographer Lai Fong are on display.

    Exhibition goers can also find photos known as “Cartes de visite” in the size of a calling card, which were popular for exchanges in social gatherings during the 19th century.

    The donation provides excellent materials for studying modern Chinese society and increasing the public’s understanding of Chinese history from a century ago, said Kevin Yeung, secretary for culture, sports and tourism of the Hong Kong Special Administrative Region (HKSAR) government when addressing Tuesday’s opening ceremony.

    Established in 2007, Moonchu Foundation is dedicated to supporting culture and education-related research, publications and talks.

    The exhibition is one of the events of the 4th Guangdong-Hong Kong-Macao Greater Bay Area Culture and Arts Festival. It will run through Feb. 3 next year.

    MIL OSI China News –

  • MIL-OSI China: China’s self-developed LNG container vessel delivered

    Source: China State Council Information Office 3

    China’s self-developed liquefied natural gas (LNG) dual-fuel container vessel was delivered on Monday in northeast China’s port city of Dalian, according to Dalian Shipbuilding Industry Co., Ltd., its builder.

    The vessel, built for the Mediterranean Shipping Company, measures 366 meters in length, 51 meters in molded breadth and 30.2 meters in molded depth, and has a design draft of 14.5 meters.

    The vessel is capable of carrying 16,044 standard containers and 1,800 refrigerated containers, said the shipbuilder.

    The dual-fuel design allows the vessel to be powered by LNG and marine fuel oils. Equipped with a 13,000-cubic-meter Type-B LNG fuel tank, it has a larger capacity and higher utilization rate than traditional LNG fuel tanks and consumes less traditional fuels.

    The shipbuilder has applied other energy-saving measures and devices to improve the economic benefits and environmental protection performance of the vessel.

    MIL OSI China News –

  • MIL-OSI China: Impressive progress made 40 years on from first Teachers’ Day

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

    China has made significant achievements in teacher development over the past 40 years since the country established Teachers’ Day in 1985, an education expert said.

    Li Yongzhi, head of the Chinese National Academy of Educational Sciences, said the number of full-time teachers in China has doubled from approximately 9.32 million in 1985 to 18.92 million last year.

    Educational qualifications have improved, too, with 78 percent of primary school teachers holding at least a bachelor’s degree last year, up 45 percentage points since 2012. For middle school teachers, the figure has reached 93 percent, an increase of 22 percentage points over the same period, Li said.

    “A notable rise was seen in the number of senior teachers, including 28,125 appointed to senior positions in primary and secondary schools,” he said.

    China’s teacher education system has evolved during the past decades, now comprising 226 normal (teaching) universities and nearly 600 related institutions.

    Management reforms have further strengthened the teaching profession. The implementation of the Teacher Law in 1993 and recent government documents have created a robust framework for teacher management, contributing to a more equitable distribution of teaching resources across urban and rural areas, Li said.

    An awarding system for teachers has been built, including titles of the “Most Beautiful Teacher”, “National Excellent Teacher”, and “National Model Teacher”.

    Ten individuals and Beihang University’s electromagnetic compatibility teaching team were honored as the Most Beautiful Teachers of 2024 on the 40th Teachers’ Day in September.

    Teacher compensation has also improved, with salaries for nine-year compulsory education teachers now matching local civil service averages.

    Teachers have played a crucial role in the development of education, technology and talent cultivation in China, guiding the growth of 190 million primary and secondary school students.

    “A large number of rural teachers are guarding the safety and growth of children in villages, playing a fundamental role in poverty alleviation and rural vitalization efforts,” Li said.

    In addition, educators from higher education institutes have made a major contribution to the country’s high-level scientific innovation, with over 40 percent of academicians of the Chinese Academy of Sciences and the Chinese Academy of Engineering working at universities.

    Lin Zhanxi, a professor from Fujian Agriculture and Forestry University in Fujian province, once received a globe map with every location that the juncao technology that he helped develop, marked on it as a gift from his students on a Teachers’ Day.

    As a pioneer of juncao technology, a sustainable agricultural practice that involves cultivating mushroom grass along with edible fungi, Lin has dedicated years of hard work to conducting research in the toughest environments and promoting the technology where it is most needed.

    Lin didn’t apply for a patent as the inventor of this technology because he thought it would be better to lower the barriers for poverty alleviation technology. He also simplified the technology to make it more accessible to ensure farmers can easily understand the method.

    Last year, about two-thirds of the National Science and Technology Awards were led by university teachers, according to the Ministry of Education.

    The new guideline on strengthening the construction of a high-quality professional teaching workforce has promised a strong foundation for advancing education in the new era, said Li, head of the educational science academy.

    MIL OSI China News –

  • MIL-OSI: Form 8.3 – TRINITY EXPLORATION & PRODUCTION PLC

    Source: GlobeNewswire (MIL-OSI)

    FORM 8.3

    PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY
    A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE
    Rule 8.3 of the Takeover Code (the “Code”)

    1.        KEY INFORMATION

    (a)   Full name of discloser: VELAY FINANCIAL SERVICES LTD
    (b)   Owner or controller of interests and short positions disclosed, if different from 1(a):
            The naming of nominee or vehicle companies is insufficient. For a trust, the trustee(s), settlor and beneficiaries must be named.    		 Not applicable
    (c)   Name of offeror/offeree in relation to whose relevant securities this form relates:
            Use a separate form for each offeror/offeree    		 TRINITY EXPLORATION & PRODUCTION PLC
    (d)   If an exempt fund manager connected with an offeror/offeree, state this and specify identity of offeror/offeree: Not applicable
    (e)   Date position held/dealing undertaken:
            For an opening position disclosure, state the latest practicable date prior to the disclosure    		 21/10/2024
    (f)   In addition to the company in 1(c) above, is the discloser making disclosures in respect of any other party to the offer?
            If it is a cash offer or possible cash offer, state “N/A”    		 N/A

    2.        POSITIONS OF THE PERSON MAKING THE DISCLOSURE

    If there are positions or rights to subscribe to disclose in more than one class of relevant securities of the offeror or offeree named in 1(c), copy table 2(a) or (b) (as appropriate) for each additional class of relevant security.

    (a)      Interests and short positions in the relevant securities of the offeror or offeree to which the disclosure relates following the dealing (if any)

    Class of relevant security: 1p ordinary
      Interests Short positions
      Number % Number %
    (1)   Relevant securities owned and/or controlled:        
    (2)   Cash-settled derivatives: 900 000 2.31    
    (3)   Stock-settled derivatives (including options) and agreements to purchase/sell:        

            TOTAL:

    		 900 000 2.31    

    All interests and all short positions should be disclosed.

    Details of any open stock-settled derivative positions (including traded options), or agreements to purchase or sell relevant securities, should be given on a Supplemental Form 8 (Open Positions).

    (b)      Rights to subscribe for new securities (including directors’ and other employee options)

    Class of relevant security in relation to which subscription right exists:  
    Details, including nature of the rights concerned and relevant percentages:  

    3.        DEALINGS (IF ANY) BY THE PERSON MAKING THE DISCLOSURE

    Where there have been dealings in more than one class of relevant securities of the offeror or offeree named in 1(c), copy table 3(a), (b), (c) or (d) (as appropriate) for each additional class of relevant security dealt in.

    The currency of all prices and other monetary amounts should be stated.

    (a)        Purchases and sales

    Class of relevant security Purchase/sale Number of securities Price per unit
           

    (b)        Cash-settled derivative transactions

    Class of relevant security Product description
    e.g. CFD    		 Nature of dealing
    e.g. opening/closing a long/short position, increasing/reducing a long/short position    		 Number of reference securities Price per unit
    1p ordinary Swap Increasing long position 25 000 0.66066 GBP

    (c)        Stock-settled derivative transactions (including options)

    (i)        Writing, selling, purchasing or varying

    Class of relevant security Product description e.g. call option Writing, purchasing, selling, varying etc. Number of securities to which option relates Exercise price per unit Type
    e.g. American, European etc.    		 Expiry date Option money paid/ received per unit
                   

    (ii)        Exercise

    Class of relevant security Product description
    e.g. call option    		 Exercising/ exercised against Number of securities Exercise price per unit
             

    (d)        Other dealings (including subscribing for new securities)

    Class of relevant security Nature of dealing
    e.g. subscription, conversion    		 Details Price per unit (if applicable)
           

    4.        OTHER INFORMATION

    (a)        Indemnity and other dealing arrangements

    Details of any indemnity or option arrangement, or any agreement or understanding, formal or informal, relating to relevant securities which may be an inducement to deal or refrain from dealing entered into by the person making the disclosure and any party to the offer or any person acting in concert with a party to the offer:
    Irrevocable commitments and letters of intent should not be included. If there are no such agreements, arrangements or understandings, state “none”

    None

    (b)        Agreements, arrangements or understandings relating to options or derivatives

    Details of any agreement, arrangement or understanding, formal or informal, between the person making the disclosure and any other person relating to:
    (i)   the voting rights of any relevant securities under any option; or
    (ii)   the voting rights or future acquisition or disposal of any relevant securities to which any derivative is referenced:
    If there are no such agreements, arrangements or understandings, state “none”

    None

    (c)        Attachments

    Is a Supplemental Form 8 (Open Positions) attached? NO
    Date of disclosure: 22/10/2024
    Contact name: Arnaud STEPHANN
    Telephone number*: 00 41 22 707 42 70

    Additional dealing in this security:

    DATE Buy/Sell QTY Price
           
           

    Public disclosures under Rule 8 of the Code must be made to a Regulatory Information Service.

    The Panel’s Market Surveillance Unit is available for consultation in relation to the Code’s disclosure requirements on +44 (0)20 7638 0129.

    *If the discloser is a natural person, a telephone number does not need to be included, provided contact information has been provided to the Panel’s Market Surveillance Unit.

    The Code can be viewed on the Panel’s website at http://www.thetakeoverpanel.org.uk.

    The MIL Network –

  • MIL-OSI: Capital City Bank Group, Inc. Reports Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    TALLAHASSEE, Fla., Oct. 22, 2024 (GLOBE NEWSWIRE) — Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income attributable to common shareowners of $13.1 million, or $0.78 per diluted share, for the third quarter of 2024 compared to $14.2 million, or $0.83 per diluted share, for the second quarter of 2024, and $12.7 million, or $0.74 per diluted share, for the third quarter of 2023.

    QUARTER HIGHLIGHTS (3rdQuarter 2024 versus 2ndQuarter 2024)

    Income Statement

    • Tax-equivalent net interest income totaled $40.3 million compared to $39.3 million for the prior quarter
      • Net interest margin increased 10 basis points to 4.12% (earning asset yield up 7 basis points and total deposit cost down 3 basis points to 92 basis points)
    • Stable credit quality metrics and credit loss provision – net loan charge-offs were 19 basis points (annualized) of average loans – allowance coverage ratio increased to 1.11% at September 30, 2024
    • Noninterest income remained stable, decreasing $0.1 million, or 0.5%, and reflected a $0.4 million decline in mortgage banking revenues partially offset by a $0.3 million increase in wealth management fees
    • Noninterest expense increased $2.5 million, or 6.1%, due to increases in compensation (annual merit and health care) and other expenses (professional and processing). Other expense also included a $0.5 million expense related to a counterparty payment for our VISA Class B share swap

    Balance Sheet

    • Loan balances decreased $33.2 million, or 1.2% (average), and declined $7.1 million, or 0.3% (end of period)
    • Deposit balances decreased by $69.0 million, or 1.9% (average), and decreased $29.5 million, or 0.8% (end of period), reflecting the seasonal decline in our public fund balances
    • Tangible book value per diluted share (non-GAAP financial measure) increased $0.91, or 4.2%

    Commenting on the company’s results, William G. Smith, Jr., Capital City Bank Group Chairman, President, and CEO, said, “I am pleased with what we accomplished in the quarter to enhance shareowner value – 4.2% growth in tangible book value per share and a 9.5% increase in the dividend. Earnings for the quarter remained stable driven by margin expansion, stable credit, and core deposit growth. Looking ahead, I remain optimistic about our full year financial performance and beyond, driven by our balance sheet flexibility, revenue diversification, and focus on continuous improvement.”      

    Discussion of Operating Results

    Net Interest Income/Net Interest Margin

    Tax-equivalent net interest income for the third quarter of 2024 totaled $40.2 million, compared to $39.3 million for the second quarter of 2024, and $39.3 million for the third quarter of 2023. Compared to the second quarter of 2024, the increase was primarily due to increases in loan and investment interest income and a decrease in deposit interest expense, partially offset by a decrease in overnight funds interest income. One additional calendar day also contributed to the increase. Favorable repricing of existing adjustable/fixed rate loans at higher rates drove the increase in loan interest income. The increase in investment interest income was due to the reinvestment of maturing securities at higher rates. The decrease in deposit interest expense was attributable to lower average NOW account balances and average rate, in addition to lower rates on promotional deposit products.

    Compared to the third quarter of 2023, the $0.9 million increase was primarily driven by an increase in loan interest income and to a lesser extent overnight funds interest income, partially offset by an increase in deposit interest expense. For the first nine months of 2024, tax-equivalent net interest income totaled $118.0 million compared to $120.1 million for the same period of 2023 with the decrease primarily attributable to an increase in deposit interest expense and a decrease in investment interest income, partially offset by an increase in loan interest income.

    Our net interest margin for the third quarter of 2024 was 4.12%, an increase of 10 basis points over the second quarter of 2024 and an increase of nine basis points over the third quarter of 2023. For the month of September 2024, our net interest margin was 4.16%. For the first nine months of 2024, our net interest margin was 4.05% compared to 4.04% for the same period of 2023. The increase over the second quarter of 2024 reflected favorable loan and investment repricing, partially offset by a lower overnight funds rate. The increase over both prior year periods reflected higher loan rates partially offset by a higher cost of deposits. For the third quarter of 2024, our cost of funds was 93 basis points, a decrease of four basis points from the second quarter of 2024 and an increase of 27 basis points over the third quarter of 2023. Our cost of deposits (including noninterest bearing accounts) was 92 basis points, 95 basis points, and 58 basis points, respectively, for the same periods.

    Provision for Credit Losses

    We recorded a provision expense for credit losses of $1.2 million for the third quarter of 2024, comparable to the second quarter of 2024 and a $1.2 million decrease from the third quarter of 2023. The provision expense for the third quarter of 2024 reflected a $0.7 million increase in the provision for loans held for investment (“HFI”), a $0.6 million provision benefit for unfunded loan commitments, and a $0.1 million provision benefit for debt securities. The increase in the provision for loans HFI was primarily due to loan grade migration and slightly higher loss rates partially offset by lower loan balances. A lower level of commitments drove the provision benefit for unfunded loan commitments. For the first nine months of 2024, we recorded a provision expense for credit losses of $3.3 million compared to $7.7 million for the same period of 2023 with the decrease driven primarily by lower new loan volume in 2024. We discuss the allowance for credit losses further below.

    Noninterest Income and Noninterest Expense

    Noninterest income for the third quarter of 2024 totaled $19.5 million compared to $19.6 million for the second quarter of 2024 and $16.7 million for the third quarter of 2023. The slight decrease from the second quarter of 2024 reflected a $0.4 million decrease in mortgage banking revenues partially offset by a $0.3 million increase in wealth management fees. Compared to the third quarter of 2023, the $2.8 million increase was primarily attributable to a $2.1 million increase in mortgage banking revenues driven by a higher gain on sale margin, and a $0.8 million increase in wealth management fees.

    For the first nine months of 2024, noninterest income totaled $57.2 million compared to $54.5 million for the same period of 2023, primarily attributable to a $3.2 million increase in mortgage banking revenues and a $1.8 million increase in wealth management fees, partially offset by a $2.1 million decrease in other income. The increase in mortgage banking revenues was due to a higher gain on sale margin. The increase in wealth management fees was primarily driven by higher retail brokerage fees and to a lesser extent trust fees, primarily attributable to both new account growth and higher account values driven by higher market returns. The decrease in other income was primarily attributable to a $1.4 million gain from the sale of mortgage servicing rights in the second quarter of 2023, and to a lesser extent a decrease in vendor bonus income and miscellaneous income.

    Noninterest expense for the third quarter of 2024 totaled $42.9 million compared to $40.4 million for the second quarter of 2024 and $39.1 million for the third quarter of 2023. The $2.5 million increase over the second quarter of 2024 was primarily due to a $1.4 million increase in compensation and a $1.0 million increase in other expense. The increase in compensation reflected higher salary expense of $0.9 million and associate benefit expense of $0.5 million. The increase in salary expense was driven by annual merit adjustments, and the increase in other associate benefit expense was primarily attributable to higher health insurance cost, and to a lesser extent higher stock-based compensation expense. The increase in other expense was primarily due to a $0.5 million increase in professional fees, processing fees of $0.3 million, and higher miscellaneous expense which included a $0.5 million payment to the counterparty for our VISA Class B share swap due to revision to the share conversion rate related to additional funding by VISA of the merchant litigation reserve. Compared to the third quarter of 2023, the $3.8 million increase was primarily attributable to a $2.8 million increase in compensation expense and a $0.9 million increase in other expense. The unfavorable variance in compensation expense reflected higher salary expense of $2.2 million and associate benefit expense of $0.6 million, with the salary variance driven by merit adjustments and the associate benefit expense variance reflective of higher health insurance cost. Further, salary expense was unfavorably impacted by lower realized loan cost (credit offset to salary expense) of $1.0 million which reflected lower loan volume in 2024. The increase in other expense was attributable to a $0.6 million increase in professional fees and higher miscellaneous expense due to the aforementioned $0.5 million share swap payment in the third quarter of 2024.  

    For the first nine months of 2024, noninterest expense totaled $123.5 million compared to $117.1 million for the same period of 2023 with the $6.4 million increase primarily attributable to increases in compensation expense of $4.6 million, occupancy expense of $0.5 million, and other expense of $1.3 million. The increase in compensation expense reflected a $3.9 million increase in salary expense and a $0.7 million increase in associate benefit expense. The increase in salary expense was primarily due to a lower level of realized loan cost (credit offset to salary expense) of $2.9 million (lower new loan volume) and higher base salary expense of $1.9 million (primarily annual merit raises), partially offset by lower commission expense of $1.3 million (lower residential mortgage volume). The increase in occupancy was primarily attributable to an increase in maintenance agreement expense (security upgrades and addition of interactive teller machines). The increase in other expense reflected a $1.8 million gain from the sale of a banking office in the first quarter of 2023 and higher miscellaneous expense due to the aforementioned $0.5 million share swap payment in 2024, that was partially offset by lower pension plan expense (service cost) of $1.0 million.         

    Income Taxes

    We realized income tax expense of $3.0 million (effective rate of 19.1%) for the third quarter of 2024 compared to $3.2 million (effective rate of 18.5%) for the second quarter of 2024 and $3.0 million (effective rate of 20.7%) for the third quarter of 2023. For the first nine months of 2024, we realized income tax expense of $9.7 million (effective rate of 20.1%) compared to $10.1 million (effective rate of 20.5%) for the same period of 2023. The decrease in our effective tax rate from both prior year periods was primarily due to a higher level of tax benefit accrued from investments in solar tax credit equity funds. Absent discrete items, we expect our annual effective tax rate to approximate 20-21% for 2024.

    Discussion of Financial Condition

    Earning Assets

    Average earning assets totaled $3.883 billion for the third quarter of 2024, a decrease of $51.9 million, or 1.3%, from the second quarter of 2024, and an increase of $59.4 million, or 1.6%, over the fourth quarter of 2023. The change for both prior periods was driven by variances in deposit balances (see below – Deposits). Compared to the second quarter of 2024, the change in the earning asset mix reflected a $33.2 million decrease in loans HFI, a $11.4 million decline in investment securities, and a $5.6 million decrease increase in overnight funds sold. Compared to the fourth quarter of 2023, the change in the earning asset mix reflected a $157.1 million increase in overnight funds that was partially offset by a $17.7 million decrease in loans HFI, a $54.7 million decrease in investment securities and a $25.2 million decline in loans held for sale.

    Average loans HFI decreased $33.2 million, or 1.2%, from the second quarter of 2024 and decreased $17.7 million, or 0.7%, from the fourth quarter of 2023. Compared to the second quarter of 2024, the decrease was driven by a $19.4 million decrease in consumer loans (primarily indirect auto), commercial loans of $13.2 million, and commercial real estate loans of $7.7 million, partially offset by a $7.4 million increase in residential real estate loans. Compared to the fourth quarter of 2023, the decrease was primarily attributable to a $54.5 million decrease in consumer loans (primarily indirect auto) and commercial loans of $24.2 million (primarily tax-exempt loans) that was partially offset by a $59.2 million increase in residential real estate loans.

    Period end loans HFI decreased $7.1 million, or 0.3%, from the second quarter of 2024 and decreased $50.8 million, or 1.9%, from the fourth quarter of 2023. Compared to the second quarter of 2024, the decline reflected a $20.9 million decrease in consumer loans (primarily indirect auto), a $10.4 million decrease in commercial loans, and a $3.2 million decline in commercial real estate loans, partially offset by a $10.9 million increase in residential real estate loans and a $18.1 million increase in construction loans. The decrease from the fourth quarter of 2023 was primarily attributable to a $57.7 million decrease in consumer loans (primarily indirect auto), a $30.6 million decline in commercial loans, and a $5.5 million decrease in commercial real estate loans, partially offset by a $22.2 million increase in residential real estate loans and a $22.8 million increase in construction real estate loans.     

    Allowance for Credit Losses

    At September 30, 2024, the allowance for credit losses for loans HFI totaled $29.8 million compared to $29.2 million at June 30, 2024 and $29.9 million at December 31, 2023. Activity within the allowance is provided on Page 9. The increase in the allowance over June 30, 2024 was primarily attributable to slightly higher forecasted unemployment rate utilized in calculating loan loss rates and loan grade migration (see above – Provision for Credit Losses). Net loan charge-offs were 19 basis points of average loans for the third quarter of 2024 versus 18 basis points for the second quarter of 2024. At September 30, 2024, the allowance represented 1.11% of loans HFI compared to 1.09% at June 30, 2024, and 1.10% at December 31, 2023.

    Credit Quality

    Nonperforming assets (nonaccrual loans and other real estate) totaled $7.2 million at September 30, 2024 compared to $6.2 million at June 30, 2024 and $6.2 million at December 31, 2023. At September 30, 2024, nonperforming assets as a percent of total assets equaled 0.17%, compared to 0.15% at June 30, 2024 and 0.15% at December 31, 2023. Nonaccrual loans totaled $6.6 million at September 30, 2024, a $1.1 million increase over June 30, 2024 and a $0.3 million increase over December 31, 2023. Further, classified loans totaled $25.5 million at September 30, 2024, a $0.1 million decrease from June 30, 2024 and a $3.3 million increase over December 31, 2023.

    Deposits

    Average total deposits were $3.572 billion for the third quarter of 2024, a decrease of $69.0 million, or 1.9%, from the second quarter of 2024 and an increase of $23.5 million, or 0.7%, over the fourth quarter of 2023. Compared to the second quarter of 2024, the decrease was primarily attributable to lower NOW account balances primarily due to the seasonal decline in our public fund balances. The increase over the fourth quarter of 2023 reflected growth in both money market and certificate of deposit balances which reflected a combination of balances migrating from savings and noninterest bearing accounts, in addition to receiving new deposits from existing and new clients via various deposit strategies.     

    At September 30, 2024, total deposits were $3.579 billion, a decrease of $29.5 million, or 0.8%, from June 30, 2024, and a decrease of $122.7 million, or 3.3%, from December 31, 2023. The decrease from June 30, 2024 was primarily due to lower noninterest bearing, money market, and savings account balances. The decrease from December 31, 2023 was primarily due to lower NOW account balances, primarily due to the seasonal decline in our public funds, partially offset by higher money market and certificate of deposit balances from both new and existing clients. Total public funds balances were $516.2 million at September 30, 2024, $575.0 million at June 30, 2024, and $709.8 million at December 31, 2023.

    Liquidity

    The Bank maintained an average net overnight funds (i.e., deposits with banks plus FED funds sold less FED funds purchased) sold position of $256.9 million in the third quarter of 2024 compared to $262.4 million in the second quarter of 2024 and $99.8 million in the fourth quarter of 2023. Compared to the second quarter of 2024, the decrease reflected lower average deposits (primarily seasonal public funds) that was substantially offset by a decline in average loans. Compared to the fourth quarter of 2023, the increase was primarily driven by higher average deposits and lower average investments.       

    At September 30, 2024, we had the ability to generate approximately $1.522 billion (excludes overnight funds position of $262 million) in additional liquidity through various sources including various federal funds purchased lines, Federal Home Loan Bank borrowings, the Federal Reserve Discount Window, and brokered deposits.  

    We also view our investment portfolio as a liquidity source as we have the option to pledge securities in our portfolio as collateral for borrowings or deposits, and/or to sell selected securities in our portfolio. Our portfolio consists of debt issued by the U.S. Treasury, U.S. governmental agencies, municipal governments, and corporate entities. At September 30, 2024, the weighted-average maturity and duration of our portfolio were 2.51 years and 2.17 years, respectively, and the available-for-sale portfolio had a net unrealized after-tax loss of $15.5 million.    

    Capital

    Shareowners’ equity was $476.5 million at September 30, 2024 compared to $461.0 million at June 30, 2024 and $440.6 million at December 31, 2023. For the first nine months of 2024, shareowners’ equity was positively impacted by net income attributable to shareowners of $39.8 million, a $8.7 million decrease in the net unrealized loss on available for sale securities, net adjustments totaling $0.9 million related to transactions under our stock compensation plans, and stock compensation accretion of $1.1 million. Shareowners’ equity was reduced by a common stock dividend of $11.0 million ($0.65 per share), the repurchase of common stock of $2.3 million (82,540 shares), a $0.6 million increase in the fair value of the interest rate swap related to subordinated debt, and a $0.7 million reclassification to temporary equity.

    At September 30, 2024, our total risk-based capital ratio was 17.97% compared to 17.50% at June 30, 2024 and 16.57% at December 31, 2023. Our common equity tier 1 capital ratio was 14.88%, 14.44%, and 13.52%, respectively, on these dates. Our leverage ratio was 10.89%, 10.51%, and 10.30%, respectively, on these dates. At September 30, 2024, all our regulatory capital ratios exceeded the thresholds to be designated as “well-capitalized” under the Basel III capital standards. Further, our tangible common equity ratio (non-GAAP financial measure) was 9.28% at September 30, 2024 compared to 8.91% and 8.26% at June 30, 2024 and December 31, 2023, respectively. If our unrealized held-to-maturity securities losses of $12.9 million (after-tax) were recognized in accumulated other comprehensive loss, our adjusted tangible capital ratio would be 9.00%.

    About Capital City Bank Group, Inc.

    Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $4.2 billion in assets. We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards, securities brokerage services and financial advisory services, including the sale of life insurance, risk management and asset protection services. Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 63 banking offices and 105 ATMs/ITMs in Florida, Georgia and Alabama. For more information about Capital City Bank Group, Inc., visit http://www.ccbg.com.

    FORWARD-LOOKING STATEMENTS

    Forward-looking statements in this Press Release are based on current plans and expectations that are subject to uncertainties and risks, which could cause our future results to differ materially. The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “vision,” “goal,” and similar expressions are intended to identify forward-looking statements. The following factors, among others, could cause our actual results to differ: our ability to successfully manage credit risk, interest rate risk, liquidity risk, and other risks inherent to our industry; the effects of changes in the level of checking or savings account deposits and the competition for deposits on our funding costs, net interest margin and ability to replace maturing deposits and advances; legislative or regulatory changes; adverse developments in the financial services industry; inflation, interest rate, market and monetary fluctuations; uncertainty in the pricing of residential mortgage loans that we sell, as well as competition for the mortgage servicing rights related to these loans; interest rate risk and price risk resulting from retaining mortgage servicing rights and the effects of higher interest rates on our loan origination volumes; changes in monetary and fiscal policies of the U.S. Government; the cost and effects of cybersecurity incidents or other failures, interruptions, or security breaches of our systems or those of our customers or third-party providers; the effects of fraud related to debit card products; the accuracy of our financial statement estimates and assumptions; changes in accounting principles, policies, practices or guidelines; the frequency and magnitude of foreclosure of our loans; the effects of our lack of a diversified loan portfolio; the strength of the local economies in which we operate; our ability to declare and pay dividends; structural changes in the markets for origination, sale and servicing of residential mortgages; our ability to retain key personnel; the effects of natural disasters (including hurricanes), widespread health emergencies (including pandemics), military conflict, terrorism, civil unrest or other geopolitical events; our ability to comply with the extensive laws and regulations to which we are subject; the impact of the restatement of our previously issued consolidated statements of cash flows; any deficiencies in the processes undertaken to effect these restatements and to identify and correct all errors in our historical financial statements that may require restatement; any inability to implement and maintain effective internal control over financial reporting and/or disclosure control or inability to remediate our existing material weaknesses in our internal controls deemed ineffective; the willingness of clients to accept third-party products and services rather than our products and services; technological changes; the outcomes of litigation or regulatory proceedings; negative publicity and the impact on our reputation; changes in consumer spending and saving habits; growth and profitability of our noninterest income; the limited trading activity of our common stock; the concentration of ownership of our common stock; anti-takeover provisions under federal and state law as well as our Articles of Incorporation and our Bylaws; other risks described from time to time in our filings with the Securities and Exchange Commission; and our ability to manage the risks involved in the foregoing. Additional factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as amended, and our other filings with the SEC, which are available at the SEC’s internet site (http://www.sec.gov). Forward-looking statements in this Press Release speak only as of the date of the Press Release, and we assume no obligation to update forward-looking statements or the reasons why actual results could differ, except as may be required by law.

    USE OF NON-GAAP FINANCIAL MEASURES
    Unaudited

    We present a tangible common equity ratio and a tangible book value per diluted share that removes the effect of goodwill and other intangibles resulting from merger and acquisition activity. We believe these measures are useful to investors because it allows investors to more easily compare our capital adequacy to other companies in the industry.

    The GAAP to non-GAAP reconciliations are provided below.

    (Dollars in Thousands, except per share data) Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023
    Shareowners’ Equity (GAAP)     $ 476,499   $ 460,999   $ 448,314   $ 440,625   $ 419,706  
    Less: Goodwill and Other Intangibles (GAAP)       92,813     92,853     92,893     92,933     92,973  
    Tangible Shareowners’ Equity (non-GAAP) A     383,686     368,146     355,421     347,692     326,733  
    Total Assets (GAAP)       4,225,316     4,225,695     4,259,922     4,304,477     4,138,287  
    Less: Goodwill and Other Intangibles (GAAP)       92,813     92,853     92,893     92,933     92,973  
    Tangible Assets (non-GAAP) B   $ 4,132,503   $ 4,132,842   $ 4,167,029   $ 4,211,544   $ 4,045,314  
    Tangible Common Equity Ratio (non-GAAP) A/B     9.28%     8.91%     8.53%     8.26%     8.08%  
    Actual Diluted Shares Outstanding (GAAP) C     16,980,686     16,970,228     16,947,204     17,000,758     16,997,886  
    Tangible Book Value per Diluted Share (non-GAAP) A/C   $ 22.60   $ 21.69   $ 20.97   $ 20.45   $ 19.22  
     
    CAPITAL CITY BANK GROUP, INC.                      
    EARNINGS HIGHLIGHTS                      
    Unaudited                      
                           
        Three Months Ended   Nine Months Ended  
    (Dollars in thousands, except per share data)   Sep 30, 2024   Jun 30, 2024   Sep 30, 2023   Sep 30, 2024   Sep 30, 2023  
    EARNINGS                      
    Net Income Attributable to Common Shareowners $ 13,118 $ 14,150 $ 12,655 $ 39,825 $ 40,539  
    Diluted Net Income Per Share $ 0.78 $ 0.83 $ 0.74 $ 2.35 $ 2.38  
    PERFORMANCE                      
    Return on Average Assets (annualized)   1.24 % 1.33 % 1.19 % 1.26 % 1.26 %
    Return on Average Equity (annualized)   10.87   12.23   11.74   11.39   13.00  
    Net Interest Margin   4.12   4.02   4.03   4.05   4.04  
    Noninterest Income as % of Operating Revenue   32.67   33.30   29.87   32.69   31.25  
    Efficiency Ratio   71.81 % 68.61 % 69.88 % 70.49 % 67.07 %
    CAPITAL ADEQUACY                      
    Tier 1 Capital   16.77 % 16.31 % 15.11 % 16.77 % 15.11 %
    Total Capital   17.97   17.50   16.30   17.97   16.30  
    Leverage   10.89   10.51   9.98   10.89   9.98  
    Common Equity Tier 1   14.88   14.44   13.26   14.88   13.26  
    Tangible Common Equity (1)   9.28   8.91   8.08   9.28   8.08  
    Equity to Assets   11.28 % 10.91 % 10.14 % 11.28 % 10.14 %
    ASSET QUALITY                      
    Allowance as % of Non-Performing Loans   452.64 % 529.79 % 619.58 % 452.64 % 619.58 %
    Allowance as a % of Loans HFI   1.11   1.09   1.08   1.11   1.08  
    Net Charge-Offs as % of Average Loans HFI   0.19   0.18   0.17   0.20   0.16  
    Nonperforming Assets as % of Loans HFI and OREO   0.27   0.23   0.17   0.27   0.17  
    Nonperforming Assets as % of Total Assets   0.17 % 0.15 % 0.11 % 0.17 % 0.11 %
    STOCK PERFORMANCE                      
    High $ 36.67 $ 28.58 $ 33.44 $ 36.67 $ 36.86  
    Low   26.72   25.45   28.64   25.45   28.03  
    Close $ 35.29 $ 28.44 $ 29.83 $ 35.29 $ 29.83  
    Average Daily Trading Volume   37,151   29,861   26,774   32,720   33,936  
                           
    (1) Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a
    reconciliation to GAAP, refer to Page 6.    
                           
    CAPITAL CITY BANK GROUP, INC.          
    CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
    Unaudited          
                         
      2024     2023  
    (Dollars in thousands) Third Quarter   Second Quarter   First Quarter   Fourth Quarter   Third Quarter
    ASSETS                    
    Cash and Due From Banks $ 83,431   $ 75,304   $ 73,642   $ 83,118   $ 72,379  
    Funds Sold and Interest Bearing Deposits   261,779     272,675     231,047     228,949     95,119  
    Total Cash and Cash Equivalents   345,210     347,979     304,689     312,067     167,498  
                         
    Investment Securities Available for Sale   336,187     310,941     327,338     337,902     334,052  
    Investment Securities Held to Maturity   561,480     582,984     603,386     625,022     632,076  
    Other Equity Securities   6,976     2,537     3,445     3,450     3,585  
    Total Investment Securities   904,643     896,462     934,169     966,374     969,713  
                         
    Loans Held for Sale   31,251     24,022     24,705     28,211     34,013  
                         
    Loans Held for Investment (“HFI”):                    
    Commercial, Financial, & Agricultural   194,625     204,990     218,298     225,190     221,704  
    Real Estate – Construction   218,899     200,754     202,692     196,091     197,526  
    Real Estate – Commercial   819,955     823,122     823,690     825,456     828,234  
    Real Estate – Residential   1,023,485     1,012,541     1,012,791     1,001,257     966,512  
    Real Estate – Home Equity   210,988     211,126     214,617     210,920     203,606  
    Consumer   213,305     234,212     254,168     270,994     285,122  
    Other Loans   461     2,286     3,789     2,962     1,401  
    Overdrafts   1,378     1,192     1,127     1,048     1,076  
    Total Loans Held for Investment   2,683,096     2,690,223     2,731,172     2,733,918     2,705,181  
    Allowance for Credit Losses   (29,836 )   (29,219 )   (29,329 )   (29,941 )   (29,083 )
    Loans Held for Investment, Net   2,653,260     2,661,004     2,701,843     2,703,977     2,676,098  
                         
    Premises and Equipment, Net   81,876     81,414     81,452     81,266     81,677  
    Goodwill and Other Intangibles   92,813     92,853     92,893     92,933     92,973  
    Other Real Estate Owned   650     650     1     1     1  
    Other Assets   115,613     121,311     120,170     119,648     116,314  
    Total Other Assets   290,952     296,228     294,516     293,848     290,965  
    Total Assets $ 4,225,316   $ 4,225,695   $ 4,259,922   $ 4,304,477   $ 4,138,287  
    LIABILITIES                    
    Deposits:                    
    Noninterest Bearing Deposits $ 1,330,715   $ 1,343,606   $ 1,361,939   $ 1,377,934   $ 1,472,165  
    NOW Accounts   1,174,585     1,177,180     1,212,452     1,327,420     1,092,996  
    Money Market Accounts   401,272     413,594     398,308     319,319     304,323  
    Savings Accounts   507,604     514,560     530,782     547,634     571,003  
    Certificates of Deposit   164,901     159,624     151,320     129,515     99,958  
    Total Deposits   3,579,077     3,608,564     3,654,801     3,701,822     3,540,445  
                         
    Repurchase Agreements   29,339     22,463     23,477     26,957     22,910  
    Other Short-Term Borrowings   7,929     3,307     8,409     8,384     18,786  
    Subordinated Notes Payable   52,887     52,887     52,887     52,887     52,887  
    Other Long-Term Borrowings   794     1,009     265     315     364  
    Other Liabilities   71,974     69,987     65,181     66,080     75,585  
    Total Liabilities   3,742,000     3,758,217     3,805,020     3,856,445     3,710,977  
                         
    Temporary Equity   6,817     6,479     6,588     7,407     7,604  
    SHAREOWNERS’ EQUITY                    
    Common Stock   169     169     169     170     170  
    Additional Paid-In Capital   36,070     35,547     34,861     36,326     36,182  
    Retained Earnings   454,342     445,959     435,364     426,275     418,030  
    Accumulated Other Comprehensive Loss, Net of Tax   (14,082 )   (20,676 )   (22,080 )   (22,146 )   (34,676 )
    Total Shareowners’ Equity   476,499     460,999     448,314     440,625     419,706  
    Total Liabilities, Temporary Equity and Shareowners’ Equity $ 4,225,316   $ 4,225,695   $ 4,259,922   $ 4,304,477   $ 4,138,287  
    OTHER BALANCE SHEET DATA                    
    Earning Assets $ 3,880,769   $ 3,883,382   $ 3,921,093   $ 3,957,452   $ 3,804,026  
    Interest Bearing Liabilities   2,339,311     2,344,624     2,377,900     2,412,431     2,163,227  
    Book Value Per Diluted Share $ 28.06   $ 27.17   $ 26.45   $ 25.92   $ 24.69  
    Tangible Book Value Per Diluted Share(1)   22.60     21.69     20.97     20.45     19.22  
    Actual Basic Shares Outstanding   16,944     16,942     16,929     16,950     16,958  
    Actual Diluted Shares Outstanding   16,981     16,970     16,947     17,001     16,998  
    (1) Tangible book value per diluted share is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 6.
     
    CAPITAL CITY BANK GROUP, INC.              
    CONSOLIDATED STATEMENT OF OPERATIONS           
    Unaudited              
                                 
        2024   2023   Nine Months Ended
    September 30,
    (Dollars in thousands, except per share data)   Third
    Quarter    		   Second
    Quarter    		   First
    Quarter    		   Fourth
    Quarter    		   Third
    Quarter    		   2024   2023
    INTEREST INCOME                            
    Loans, including Fees $ 41,659 $ 41,138 $ 40,683 $ 40,407 $ 39,344 $ 123,480 $ 111,845
    Investment Securities   4,155   4,004   4,244   4,392   4,561   12,403   14,300
    Federal Funds Sold and Interest Bearing Deposits   3,514   3,624   1,893   1,385   1,848   9,031   8,741
    Total Interest Income   49,328   48,766   46,820   46,184   45,753   144,914   134,886
    INTEREST EXPENSE                            
    Deposits   8,223   8,579   7,594   5,872   5,214   24,396   11,710
    Repurchase Agreements   221   217   201   199   190   639   314
    Other Short-Term Borrowings   52   68   39   310   440   159   1,228
    Subordinated Notes Payable   610   630   628   627   625   1,868   1,800
    Other Long-Term Borrowings   11   3   3   5   4   17   15
    Total Interest Expense   9,117   9,497   8,465   7,013   6,473   27,079   15,067
    Net Interest Income   40,211   39,269   38,355   39,171   39,280   117,835   119,819
    Provision for Credit Losses   1,206   1,204   920   2,025   2,393   3,330   7,689
    Net Interest Income after Provision for Credit Losses   39,005   38,065   37,435   37,146   36,887   114,505   112,130
    NONINTEREST INCOME                            
    Deposit Fees   5,512   5,377   5,250   5,304   5,456   16,139   16,021
    Bank Card Fees   3,624   3,766   3,620   3,713   3,684   11,010   11,205
    Wealth Management Fees   4,770   4,439   4,682   4,276   3,984   13,891   12,061
    Mortgage Banking Revenues   3,966   4,381   2,878   2,327   1,839   11,225   8,072
    Other   1,641   1,643   1,667   1,537   1,765   4,951   7,093
    Total Noninterest Income   19,513   19,606   18,097   17,157   16,728   57,216   54,452
    NONINTEREST EXPENSE                            
    Compensation   25,800   24,406   24,407   23,822   23,003   74,613   69,965
    Occupancy, Net   7,098   6,997   6,994   7,098   6,980   21,089   20,562
    Other   10,023   9,038   8,770   9,038   9,122   27,831   26,539
    Total Noninterest Expense   42,921   40,441   40,171   39,958   39,105   123,533   117,066
    OPERATING PROFIT   15,597   17,230   15,361   14,345   14,510   48,188   49,516
    Income Tax Expense   2,980   3,189   3,536   2,909   3,004   9,705   10,130
    Net Income   12,617   14,041   11,825   11,436   11,506   38,483   39,386
    Pre-Tax Loss Attributable to Noncontrolling Interest   501   109   732   284   1,149   1,342   1,153
    NET INCOME ATTRIBUTABLE TO
    COMMON SHAREOWNERS    		 $ 13,118 $ 14,150 $ 12,557 $ 11,720 $ 12,655 $ 39,825 $ 40,539
    PER COMMON SHARE                            
    Basic Net Income $ 0.77 $ 0.84 $ 0.74 $ 0.69 $ 0.75 $ 2.35 $ 2.38
    Diluted Net Income   0.78   0.83   0.74   0.70   0.74   2.35   2.38
    Cash Dividend $ 0.23 $ 0.21 $ 0.21 $ 0.20 $ 0.20 $ 0.65 $ 0.56
    AVERAGE SHARES                            
    Basic   16,943   16,931   16,951   16,947   16,985   16,942   17,001
    Diluted   16,979   16,960   16,969   16,997   17,025   16,966   17,031
     
    CAPITAL CITY BANK GROUP, INC.              
    ALLOWANCE FOR CREDIT LOSSES (“ACL”)
    AND CREDIT QUALITY              
    Unaudited              
                                 
        2024     2023     Nine Months Ended
    September 30,
    (Dollars in thousands, except per share data)   Third
    Quarter    		   Second
    Quarter    		   First
    Quarter    		   Fourth
    Quarter    		   Third
    Quarter    		   2024     2023
    ACL – HELD FOR INVESTMENT LOANS                            
    Balance at Beginning of Period $ 29,219   $ 29,329   $ 29,941   $ 29,083   $ 28,243   $ 29,941   $ 25,068
    Transfer from Other (Assets) Liabilities   –     –     (50 )   66     –     (50 )   –
    Provision for Credit Losses   1,879     1,129     932     2,354     1,993     3,940     7,175
    Net Charge-Offs (Recoveries)   1,262     1,239     1,494     1,562     1,153     3,995     3,160
    Balance at End of Period $ 29,836   $ 29,219   $ 29,329   $ 29,941   $ 29,083   $ 29,836   $ 29,083
    As a % of Loans HFI   1.11%     1.09%     1.07%     1.10%     1.08%     1.11%     1.08%
    As a % of Nonperforming Loans   452.64%     529.79%     431.46%     479.70%     619.58%     452.64%     619.58%
    ACL – UNFUNDED COMMITMENTS                            
    Balance at Beginning of Period   3,139   $ 3,121   $ 3,191   $ 3,502   $ 3,120   $ 3,191   $ 2,989
    Provision for Credit Losses   (617 )   18     (70 )   (311 )   382     (669 )   513
    Balance at End of Period(1)   2,522     3,139     3,121     3,191     3,502     2,522     3,502
    ACL – DEBT SECURITIES                            
    Provision for Credit Losses $ (56 ) $ 57   $ 58   $ (18 ) $ 18   $ 59   $ 1
    CHARGE-OFFS                            
    Commercial, Financial and Agricultural $ 331   $ 400   $ 282   $ 217   $ 76   $ 1,013   $ 294
    Real Estate – Construction   –     –     –     –     –     –     –
    Real Estate – Commercial   3     –     –     –     –     3     120
    Real Estate – Residential   –     –     17     79     –     17     –
    Real Estate – Home Equity   23     –     76     –     –     99     39
    Consumer   1,315     1,061     1,550     1,689     1,340     3,926     4,065
    Overdrafts   611     571     638     602     659     1,820     2,187
    Total Charge-Offs $ 2,283   $ 2,032   $ 2,563   $ 2,587   $ 2,075   $ 6,878   $ 6,705
    RECOVERIES                            
    Commercial, Financial and Agricultural $ 176   $ 59   $ 41   $ 83   $ 28   $ 276   $ 194
    Real Estate – Construction   –     –     –     –     –     –     2
    Real Estate – Commercial   5     19     204     16     17     228     36
    Real Estate – Residential   88     23     37     34     30     148     219
    Real Estate – Home Equity   59     37     24     17     53     120     209
    Consumer   405     313     410     433     418     1,128     1,503
    Overdrafts   288     342     353     442     376     983     1,382
    Total Recoveries $ 1,021   $ 793   $ 1,069   $ 1,025   $ 922   $ 2,883   $ 3,545
    NET CHARGE-OFFS (RECOVERIES) $ 1,262   $ 1,239   $ 1,494   $ 1,562   $ 1,153   $ 3,995   $ 3,160
    Net Charge-Offs as a % of Average Loans HFI(2)   0.19%     0.18%     0.22%     0.23%     0.17%     0.20%     0.16%
    CREDIT QUALITY                            
    Nonaccruing Loans $ 6,592   $ 5,515   $ 6,798   $ 6,242   $ 4,694          
    Other Real Estate Owned   650     650     1     1     1          
    Total Nonperforming Assets (“NPAs”) $ 7,242   $ 6,165   $ 6,799   $ 6,243   $ 4,695          
                                 
    Past Due Loans 30-89 Days $ 9,388   $ 5,672   $ 5,392   $ 6,855   $ 5,577          
    Classified Loans   25,501     25,566     22,305     22,203     21,812          
                                 
    Nonperforming Loans as a % of Loans HFI   0.25%     0.21%     0.25%     0.23%     0.17%          
    NPAs as a % of Loans HFI and Other Real Estate   0.27%     0.23%     0.25%     0.23%     0.17%          
    NPAs as a % of Total Assets   0.17%     0.15%     0.16%     0.15%     0.11%          
                                 
    (1)Recorded in other liabilities              
    (2)Annualized              
     
    CAPITAL CITY BANK GROUP, INC.      
    AVERAGE BALANCE AND INTEREST RATES      
    Unaudited                                                     
                                                                                                       
        Third Quarter 2024     Second Quarter 2024     First Quarter 2024     Fourth Quarter 2023     Third Quarter 2023     Sep 2024 YTD     Sep 2023 YTD  
    (Dollars in thousands)   Average
    Balance    		   Interest   Average
    Rate    		     Average
    Balance    		   Interest   Average
    Rate    		     Average
    Balance    		   Interest   Average
    Rate    		     Average
    Balance    		   Interest   Average
    Rate    		     Average
    Balance    		   Interest   Average
    Rate    		     Average
    Balance    		   Interest   Average
    Rate    		     Average
    Balance    		   Interest   Average
    Rate    		  
    ASSETS:                                                                                                  
    Loans Held for Sale $ 24,570   $ 720   7.49 % $ 26,281   $ 517   5.26 % $ 27,314   $ 563   5.99 % $ 49,790     817   6.50 % $ 62,768   $ 971   6.14 % $ 26,050   $ 1,800   6.22 % $ 57,438   $ 2,416   5.62 %
    Loans Held for Investment(1)   2,693,533     40,985   6.09     2,726,748     40,683   6.03     2,728,629     40,196   5.95     2,711,243     39,679   5.81     2,672,653     38,455   5.71     2,716,220     121,864   6.02     2,637,911     109,688   5.56  
                                                                                                       
    Investment Securities                                                                                                  
    Taxable Investment Securities   907,610     4,148   1.82     918,989     3,998   1.74     952,328     4,239   1.78     962,322     4,389   1.81     1,002,547     4,549   1.80     926,241     12,385   1.78     1,034,825     14,265   1.84  
    Tax-Exempt Investment Securities(1)   846     10   4.33     843     9   4.36     856     9   4.34     862     7   4.32     2,456     17   2.66     848     28   4.34     2,649     50   2.49  
                                                                                                       
    Total Investment Securities   908,456     4,158   1.82     919,832     4,007   1.74     953,184     4,248   1.78     963,184     4,396   1.82     1,005,003     4,566   1.81     927,089     12,413   1.78     1,037,474     14,315   1.84  
                                                                                                       
    Federal Funds Sold and Interest Bearing Deposits   256,855     3,514   5.44     262,419     3,624   5.56     140,488     1,893   5.42     99,763     1,385   5.51     136,556     1,848   5.37     220,056     9,031   5.48     237,987     8,741   4.91  
                                                                                                       
    Total Earning Assets   3,883,414   $ 49,377   5.06 %   3,935,280   $ 48,831   4.99 %   3,849,615   $ 46,900   4.90 %   3,823,980   $ 46,277   4.80 %   3,876,980   $ 45,840   4.69 %   3,889,415   $ 145,108   4.98 %   3,970,810   $ 135,160   4.55 %
                                                                                                       
    Cash and Due From Banks   70,994               74,803               75,763               76,681               75,941               73,843               75,483            
    Allowance for Credit Losses   (29,905 )             (29,564 )             (30,030 )             (29,998 )             (29,172 )             (29,833 )             (27,581 )          
    Other Assets   291,359               291,669               295,275               296,114               295,106               292,762               297,688            
                                                                                                       
    Total Assets $ 4,215,862             $ 4,272,188             $ 4,190,623             $ 4,166,777             $ 4,218,855             $ 4,226,187             $ 4,316,400            
                                                                                                       
    LIABILITIES:                                                                                                  
    Noninterest Bearing Deposits $ 1,332,305             $ 1,346,546             $ 1,344,188             $ 1,416,825             $ 1,474,574             $ 1,340,981             $ 1,538,268            
    NOW Accounts   1,145,544   $ 4,087   1.42 %   1,207,643   $ 4,425   1.47 %   1,201,032   $ 4,497   1.51 %   1,138,461   $ 3,696   1.29 %   1,125,171   $ 3,489   1.23 %   1,184,596   $ 13,009   1.47 %   1,184,453   $ 8,679   0.98 %
    Money Market Accounts   418,625     2,694   2.56     407,387     2,752   2.72     353,591     1,985   2.26     318,844     1,421   1.77     322,623     1,294   1.59     393,294     7,431   2.52     293,089     2,249   1.03  
    Savings Accounts   512,098     180   0.14     519,374     176   0.14     539,374     188   0.14     557,579     202   0.14     579,245     200   0.14     523,573     544   0.14     603,643     396   0.09  
    Time Deposits   163,462     1,262   3.07     160,078     1,226   3.08     138,328     924   2.69     116,797     553   1.88     95,203     231   0.96     153,991     3,412   2.96     90,970     386   0.57  
    Total Interest Bearing Deposits   2,239,729     8,223   1.46     2,294,482     8,579   1.50     2,232,325     7,594   1.37     2,131,681     5,872   1.09     2,122,242     5,214   0.97     2,255,454     24,396   1.44     2,172,155     11,710   0.72  
    Total Deposits   3,572,034     8,223   0.92     3,641,028     8,579   0.95     3,576,513     7,594   0.85     3,548,506     5,872   0.66     3,596,816     5,214   0.58     3,596,435     24,396   0.91     3,710,423     11,710   0.42  
    Repurchase Agreements   27,126     221   3.24     26,999     217   3.24     25,725     201   3.14     26,831     199   2.94     25,356     190   2.98     26,619     639   3.21     17,588     314   2.39  
    Other Short-Term Borrowings   2,673     52   7.63     6,592     68   4.16     3,758     39   4.16     16,906     310   7.29     24,306     440   7.17     4,334     159   4.88     26,586     1,228   6.17  
    Subordinated Notes Payable   52,887     610   4.52     52,887     630   4.71     52,887     628   4.70     52,887     627   4.64     52,887     625   4.62     52,887     1,868   4.64     52,887     1,800   4.49  
    Other Long-Term Borrowings   795     11   5.55     258     3   4.31     281     3   4.80     336     5   4.72     387     4   4.73     447     17   5.16     433     15   4.78  
    Total Interest Bearing Liabilities   2,323,210   $ 9,117   1.56 %   2,381,218   $ 9,497   1.60 %   2,314,976   $ 8,465   1.47 %   2,228,641   $ 7,013   1.25 %   2,225,178   $ 6,473   1.15 %   2,339,741   $ 27,079   1.55 %   2,269,649   $ 15,067   0.89 %
                                                                                                       
    Other Liabilities   73,767               72,634               68,295               78,772               83,099               71,574               82,877            
                                                                                                       
    Total Liabilities   3,729,282               3,800,398               3,727,459               3,724,238               3,782,851               3,752,296               3,890,794            
    Temporary Equity   6,443               6,493               7,150               7,423               8,424               6,694               8,719            
                                                                                                       
    SHAREOWNERS’ EQUITY:   480,137               465,297               456,014               435,116               427,580               467,197               416,887            
                                                                                                       
    Total Liabilities, Temporary Equity and Shareowners’ Equity $ 4,215,862             $ 4,272,188             $ 4,190,623             $ 4,166,777             $ 4,218,855             $ 4,226,187             $ 4,316,400            
                                                                                                       
    Interest Rate Spread     $ 40,260   3.49 %     $ 39,334   3.38 %     $ 38,435   3.43 %     $ 39,264   3.55 %     $ 39,367   3.54 %     $ 118,029   3.43 %     $ 120,093   3.66 %
                                                                                                       
    Interest Income and Rate Earned(1)       49,377   5.06         48,831   4.99         46,900   4.90         46,277   4.80         45,840   4.69         145,108   4.98         135,160   4.55  
    Interest Expense and Rate Paid(2)       9,117   0.93         9,497   0.97         8,465   0.88         7,013   0.73         6,473   0.66         27,079   0.93         15,067   0.51  
                                                                                                       
    Net Interest Margin     $ 40,260   4.12 %     $ 39,334   4.02 %     $ 38,435   4.01 %     $ 39,264   4.07 %     $ 39,367   4.03 %     $ 118,029   4.05 %     $ 120,093   4.04 %
                                                                                                       
    (1)Interest and average rates are calculated on a tax-equivalent basis using a 21% Federal tax rate.                                    
    (2)Rate calculated based on average earning assets.      
     

    For Information Contact:
    Jep Larkin
    Executive Vice President and Chief Financial Officer
    850.402. 8450

    The MIL Network –

  • MIL-OSI: Dime Community Bancshares, Inc. Reports Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    Acceleration in Core Deposit Growth Drives Increase in Quarterly Net Interest Margin to 2.50%

    Balance Sheet Well Positioned to Benefit From Federal Reserve Rate Cuts

    HAUPPAUGE, N.Y., Oct. 22, 2024 (GLOBE NEWSWIRE) — Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the “Company” or “Dime”), the parent company of Dime Community Bank (the “Bank”), today reported net income available to common stockholders of $11.5 million for the quarter ended September 30, 2024, or $0.29 per diluted common share, compared to $16.7 million, or $0.43 per diluted common share, for the quarter ended June 30, 2024, and $13.2 million, or $0.34 per diluted common share for the quarter ended September 30, 2023.

    Stuart H. Lubow, President and Chief Executive Officer (“CEO”) of the Company, stated, “Strong growth in low-cost core deposits drove a significant linked quarter expansion in the Net Interest Margin. Importantly, following the recent 50 basis point reduction in the Federal Funds rate, we lowered deposit costs and expect to benefit from these actions in the fourth quarter and beyond. Since the Federal Reserve rate cut in mid-September, the spread between the weighted average rate on loans and core deposits has improved by approximately 15 basis points. We anticipate the full quarter impact of this spread improvement to drive continued Net Interest Margin expansion in the fourth quarter.”

    Mr. Lubow commented, “During the third quarter, our Business loan portfolio increased by over $120 million and we continue to have strong pipelines in our Middle Market and Healthcare verticals. Compared to the prior quarter, the level of net charge-offs and criticized and classified loans remained stable and we continued to prudently build our allowance for credit losses to total loans and risk-based capital levels. In conclusion, I am extremely proud of our employees for their unwavering focus on our customers and enabling us to be the premier business bank on Greater Long Island.”

    Highlights for the Third Quarter of 2024 Included:

    • Total deposits increased $389 million compared to the second quarter of 2024;
    • Core deposits (excluding brokered and time deposits) increased $505 million compared to the second quarter of 2024;
    • The ratio of average non-interest-bearing deposits to average total deposits for the third quarter was 29% compared to 28% for the second quarter of 2024;
    • The cost of total deposits declined by 4 basis point versus the prior quarter;
    • The net interest margin increased to 2.50% for the third quarter of 2024 compared to 2.41% for the prior quarter;
    • The loan to deposit ratio declined to 95.4% at the end of the third quarter compared to 98.2% for the prior quarter;
    • Net charge-offs to average loans was 0.15% for the third quarter of 2024 compared to 0.14% for prior quarter;
    • The allowance for credit losses to total loans increased to 0.78% at the end of the third quarter compared to 0.72% for the prior quarter; and
    • The Company’s total risk based capital ratio increased to 14.76% at the end of the third quarter compared to 14.46% for the prior quarter.

    Management’s Discussion of Quarterly Operating Results

    Net Interest Income

    Net interest income for the third quarter of 2024 was $79.9 million compared to $75.5 million for the second quarter of 2024 and $76.5 million for the third quarter of 2023.

    The table below provides a reconciliation of the reported net interest margin (“NIM”) and adjusted NIM excluding the impact of purchase accounting accretion on the loan portfolio.

                         
    (Dollars in thousands)   Q3 2024   Q2 2024   Q3 2023  
    Net interest income   $ 79,924     $ 75,502     $ 76,479  
    Purchase accounting amortization (accretion) on loans (“PAA”)     (266 )     (101 )     186  
    Adjusted net interest income excluding PAA on loans (non-GAAP)   $ 79,658     $ 75,401     $ 76,665  
                         
    Average interest-earning assets   $ 12,734,246     $ 12,624,556     $ 12,984,061  
                         
    NIM (1)     2.50   %   2.41   %   2.34 %
    Adjusted NIM excluding PAA on loans (non-GAAP) (2)     2.49   %   2.40   %   2.34 %

    (1) NIM represents net interest income divided by average interest-earning assets.
    (2) Adjusted NIM excluding PAA on loans represents adjusted net interest income, which excludes PAA amortization on acquired loans divided by average interest-earning assets.

    During the quarter ended June 30, 2024, there was a recovery of interest income from a loan that was previously on non-accrual status in the amount of $1.3 million. Excluding the impact of this item, the second quarter NIM was 2.37%.

    Loan Portfolio

    The ending WAR on the total loan portfolio was 5.40% at September 30, 2024, a 1 basis point increase compared to the ending WAR of 5.39% on the total loan portfolio at June 30, 2024.

    Outlined below are loan balances and WARs for the quarter ended as indicated.

                                     
        September 30, 2024   June 30, 2024   September 30, 2023  
    (Dollars in thousands)      Balance      WAR (1)      Balance      WAR (1)      Balance      WAR (1)  
    Loans held for investment balances at period end:                                
    Business loans (2)   $ 2,653,624   6.82 % $ 2,530,896   6.92 % $ 2,271,768   6.72 %
    One-to-four family residential, including condominium and cooperative apartment     934,209   4.65     906,949   4.55     892,869   4.39  
    Multifamily residential and residential mixed-use (3)(4)     3,866,931   4.60     3,920,354   4.59     4,102,024   4.45  
    Non-owner-occupied commercial real estate     3,281,923   5.25     3,315,100   5.25     3,374,281   5.09  
    Acquisition, development, and construction     149,299   8.46     144,860   8.96     203,402   8.92  
    Other loans     6,058   10.71     6,699   3.39     6,267   6.28  
    Loans held for investment   $ 10,892,044   5.40 % $ 10,824,858   5.39 % $ 10,850,611   5.20 %

    (1) WAR is calculated by aggregating interest based on the current loan rate from each loan in the category, adjusted for non-accrual loans, divided by the total balance of loans in the category.
    (2) Business loans include commercial and industrial loans and owner-occupied commercial real estate loans.
    (3) Includes loans underlying multifamily cooperatives.
    (4) While the loans within this category are often considered “commercial real estate” in nature, multifamily and loans underlying cooperatives are reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio.

    Outlined below are the loan originations, for the quarter ended as indicated.

                       
    (Dollars in millions)   Q3 2024   Q2 2024   Q3 2023
    Loan originations   $ 122.7   $ 162.4   $ 153.4


    Deposits and Borrowed Funds

    Period end total deposits (including mortgage escrow deposits) at September 30, 2024 were $11.42 billion, compared to $11.03 billion at June 30, 2024 and $10.53 billion at December 31, 2023.

    Total Federal Home Loan Bank advances were $508.0 million at September 30, 2024 compared to $633.0 million at June 30, 2024 and $1.31 billion at December 31, 2023.

    Mr. Lubow commented, “During the third quarter of 2024, we continued our strategy of utilizing core deposit growth to reduce our wholesale funding position.”

    Non-Interest Income

    Non-interest income was $7.6 million during the third quarter of 2024, $11.8 million during the second quarter of 2024, and $7.9 million during the third quarter of 2023. Included in non-interest income for the second quarter of 2024, was income related to the sale of premises of approximately $3.7 million.

    Non-Interest Expense

    Total non-interest expense was $57.7 million during the third quarter of 2024, $55.7 million during the second quarter of 2024, and $59.5 million during the third quarter of 2023. Excluding the impact of the loss on extinguishment of debt, amortization of other intangible assets and severance expense, adjusted non-interest expense was $57.4 million during the third quarter of 2024, $55.4 million during the second quarter of 2024, and $50.6 million during the third quarter of 2023 (see “Non-GAAP Reconciliation” tables at the end of this news release).

    Mr. Lubow commented, “As we have communicated previously, the increase in non-interest expense has been due to the significant investments and hires in the Private and Commercial Bank and the Middle Market C&I Lending operations. Third quarter results reflected a fully-loaded run-rate for these initiatives and we expect to keep our expense base relatively flat in the fourth quarter of 2024.”

    The ratio of non-interest expense to average assets was 1.71% during the third quarter of 2024, compared to 1.66% during the linked quarter and 1.73% for the third quarter of 2023. Excluding the impact of the loss on extinguishment of debt, amortization of other intangible assets and severance expense, the ratio of adjusted non-interest expense to average assets was 1.70% during the third quarter of 2024, compared to 1.65% during the linked quarter and 1.48% for the third quarter of 2023 (see “Non-GAAP Reconciliation” tables at the end of this news release).

    The efficiency ratio was 65.9% during the third quarter of 2024, compared to 63.8% during the linked quarter and 70.5% during the third quarter of 2023. Excluding the impact of net (gain) loss on sale of securities and other assets, fair value change in equity securities and loans held for sale, severance expense, loss on extinguishment of debt and amortization of other intangible assets the adjusted efficiency ratio was 65.6% during the third quarter of 2024, compared to 65.9% during the linked quarter and 59.7% during the third quarter of 2023 (see “Non-GAAP Reconciliation” tables at the end of this news release).

    Income Tax Expense

    The reported effective tax rate for the third quarter of 2024 was 26.9% compared to 29.0% for the second quarter of 2024, and 35.1% for the third quarter of 2023.

    Credit Quality

    Non-performing loans were $49.5 million at September 30, 2024, compared to $24.8 million for the prior quarter.

    A credit loss provision of $11.6 million was recorded during the third quarter of 2024, compared to a credit loss provision of $5.6 million during the second quarter of 2024, and a credit loss provision of $1.8 million during the third quarter of 2023.

    Capital Management

    The Company’s and the Bank’s regulatory capital ratios continued to be in excess of all applicable regulatory requirements as of September 30, 2024. All risk-based regulatory capital ratios increased in the third quarter of 2024.

    Dividends per common share were $0.25 during the third and second quarters of 2024, respectively.

    Book value per common share was $29.31 at September 30, 2024 compared to $28.97 at June 30, 2024.

    Tangible common book value per share (which represents common equity less goodwill and other intangible assets, divided by the number of shares outstanding) was $25.22 at September 30, 2024 compared to $24.87 at June 30, 2024 (see “Non-GAAP Reconciliation” tables at the end of this news release).

    Earnings Call Information

    The Company will conduct a conference call at 9:00 a.m. (ET) on Tuesday, October 22, 2024, during which CEO Lubow will discuss the Company’s third quarter 2024 financial performance, with a question-and-answer session to follow.

    Participants may access the conference call via webcast using this link: https://edge.media-server.com/mmc/p/hfnjf6ym. To participate via telephone, please register in advance using this link: https://register.vevent.com/register/BI017781a02def49c0ad228b72ba201600. Upon registration, all telephone participants will receive a one-time confirmation email detailing how to join the conference call, including the dial-in number along with a unique PIN that can be used to access the call. All participants are encouraged to dial-in 10 minutes prior to the start time.

    A replay of the conference call and webcast will be available on-demand for 12 months at https://edge.media-server.com/mmc/p/hfnjf6ym.

    ABOUT DIME COMMUNITY BANCSHARES, INC.
    Dime Community Bancshares, Inc. is the holding company for Dime Community Bank, a New York State-chartered trust company with over $13.7 billion in assets and the number one deposit market share among community banks on Greater Long Island(1).

    (1) Aggregate deposit market share for Kings, Queens, Nassau & Suffolk counties for community banks with less than $20 billion in assets.

    This news release contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements may be identified by use of words such as “annualized,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar terms and phrases, including references to assumptions.

    Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management’s experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company’s control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Accordingly, you should not place undue reliance on such statements. Factors that could affect our results include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company’s control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may affect demand for our products and reduce interest margins and the value of our investments; changes in deposit flows, the cost of funds, loan demand or real estate values may adversely affect the business of the Company; changes in the quality and composition of the Company’s loan or investment portfolios or unanticipated or significant increases in loan losses may negatively affect the Company’s financial condition or results of operations; changes in accounting principles, policies or guidelines may cause the Company’s financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company’s financial condition or results of operations; general socio-economic conditions, public health emergencies, international conflict, inflation, and recessionary pressures, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates and may adversely affect our customers, our financial results and our operations; legislation or regulatory changes may adversely affect the Company’s business; technological changes may be more difficult or expensive than the Company anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; there may be difficulties or unanticipated expense incurred in the consummation of new business initiatives or the integration of any acquired entities; and litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections entitled “Forward-Looking Statements” and “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and updates set forth in the Company’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

    Contact: Avinash Reddy  
    Senior Executive Vice President – Chief Financial Officer  
    718-782-6200 extension 5909  
    DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
    UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
    (In thousands)
                       
        September 30,    June 30,    December 31, 
        2024
    		   2024
    		   2023
    Assets:                    
    Cash and due from banks   $ 626,056     $ 413,983     $ 457,547  
    Securities available-for-sale, at fair value     774,608       819,222       886,240  
    Securities held-to-maturity     592,414       588,000       594,639  
    Loans held for sale     13,098       14,766       10,159  
    Loans held for investment, net:                  
    Business loans (1)     2,653,624       2,530,896       2,310,379  
    One-to-four family and cooperative/condominium apartment     934,209       906,949       889,236  
    Multifamily residential and residential mixed-use (2)(3)     3,866,931       3,920,354       4,017,703  
    Non-owner-occupied commercial real estate     3,281,923       3,315,100       3,381,842  
    Acquisition, development and construction     149,299       144,860       168,513  
    Other loans     6,058       6,699       5,755  
    Allowance for credit losses     (85,221 )     (77,812 )     (71,743 )
    Total loans held for investment, net     10,806,823       10,747,046       10,701,685  
    Premises and fixed assets, net     35,066       36,054       44,868  
    Premises held for sale     —       —       905  
    Restricted stock     64,235       68,445       98,750  
    Bank Owned Life Insurance (“BOLI”)     372,367       354,761       349,816  
    Goodwill     155,797       155,797       155,797  
    Other intangible assets     4,181       4,467       5,059  
    Operating lease assets     48,537       51,703       52,729  
    Derivative assets     105,636       134,489       122,132  
    Accrued interest receivable     54,578       55,588       55,666  
    Other assets     93,133       104,442       100,013  
    Total assets   $ 13,746,529     $ 13,548,763     $ 13,636,005  
    Liabilities:                   
    Non-interest-bearing checking (excluding mortgage escrow deposits)   $ 3,231,160     $ 3,012,481     $ 2,884,378  
    Interest-bearing checking     938,070       633,721       515,987  
    Savings (excluding mortgage escrow deposits)     1,845,266       2,340,222       2,335,354  
    Money market     3,898,509       3,607,090       3,125,996  
    Certificates of deposit     1,416,467       1,382,271       1,607,683  
    Deposits (excluding mortgage escrow deposits)     11,329,472       10,975,785       10,469,398  
    Non-interest-bearing mortgage escrow deposits     87,841       52,647       61,121  
    Interest-bearing mortgage escrow deposits     5       2       136  
    Total mortgage escrow deposits     87,846       52,649       61,257  
    FHLBNY advances     508,000       633,000       1,313,000  
    Subordinated debt, net     272,300       262,814       200,196  
    Derivative cash collateral     68,960       130,090       108,100  
    Operating lease liabilities     51,362       54,530       55,454  
    Derivative liabilities     98,108       122,567       121,265  
    Other liabilities     66,552       66,732       81,110  
    Total liabilities     12,482,600       12,298,167       12,409,780  
    Stockholders’ equity:                   
    Preferred stock, Series A     116,569       116,569       116,569  
    Common stock     416       416       416  
    Additional paid-in capital     488,607       488,760       494,454  
    Retained earnings     827,690       826,080       813,007  
    Accumulated other comprehensive loss (“AOCI”), net of deferred taxes     (72,970 )     (82,780 )     (91,579 )
    Unearned equity awards     (10,111 )     (12,023 )     (8,622 )
    Treasury stock, at cost     (86,272 )     (86,426 )     (98,020 )
    Total stockholders’ equity     1,263,929       1,250,596       1,226,225  
    Total liabilities and stockholders’ equity   $ 13,746,529     $ 13,548,763     $ 13,636,005  

    (1) Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and Paycheck Protection Program (“PPP”) loans.
    (2) Includes loans underlying multifamily cooperatives.

    (3) While the loans within this category are often considered “commercial real estate” in nature, multifamily and loans underlying cooperatives are here reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio.

    DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
    UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Dollars in thousands except share and per share amounts)
                                   
        Three Months Ended   Nine Months Ended
        September 30,    June 30,    September 30,    September 30,    September 30, 
        2024   2024
    		   2023
    		   2024
    		   2023
    Interest income:                               
    Loans   $ 151,828   $ 147,099     $ 142,995     $ 442,492     $ 409,744  
    Securities     7,766     7,907       7,916       23,553       24,261  
    Other short-term investments     4,645     4,412       6,930       18,621       16,599  
    Total interest income     164,239     159,418       157,841       484,666       450,604  
    Interest expense:                                
    Deposits and escrow     74,025     72,878       62,507       219,972       152,395  
    Borrowed funds     8,764     9,033       16,925       32,494       50,855  
    Derivative cash collateral     1,526     2,005       1,930       5,244       4,904  
    Total interest expense     84,315     83,916       81,362       257,710       208,154  
    Net interest income     79,924     75,502       76,479       226,956       242,450  
    Provision (recovery) for credit losses     11,603     5,585       1,806       22,398       (950 )
    Net interest income after provision (recovery)     68,321     69,917       74,673       204,558       243,400  
    Non-interest income:                                
    Service charges and other fees     4,267     3,972       3,963       12,783       12,633  
    Title fees     190     294       291       617       829  
    Loan level derivative income     132     1,085       783       1,623       6,353  
    BOLI income     2,606     2,484       2,317       7,551       7,332  
    Gain on sale of Small Business Administration (“SBA”) loans     19     113       335       385       1,061  
    Gain on sale of residential loans     38     27       21       142       103  
    Fair value change in equity securities and loans held for sale     39     (416 )     (299 )     (1,219 )     (1,079 )
    Net loss on sale of securities     —     —       —       —       (1,447 )
    Gain (loss) on sale of other assets     2     3,695       (22 )     6,665       (22 )
    Other     338     554       539       1,359       1,571  
    Total non-interest income     7,631     11,808       7,928       29,906       27,334  
    Non-interest expense:                                
    Salaries and employee benefits     36,132     32,184       30,520       100,353       87,054  
    Severance     —     —       8,562       42       9,068  
    Occupancy and equipment     7,448     7,409       7,277       22,225       21,794  
    Data processing costs     4,544     4,405       4,309       13,262       12,744  
    Marketing     1,629     1,637       2,079       4,763       5,016  
    Professional services     2,036     2,766       1,277       6,269       4,876  
    Federal deposit insurance premiums     2,105     2,250       1,866       6,594       5,613  
    Loss on extinguishment of debt     1     —       —       454       —  
    Amortization of other intangible assets     286     285       349       878       1,075  
    Other     3,548     4,758       3,284       11,094       11,944  
    Total non-interest expense     57,729     55,694       59,523       165,934       159,184  
    Income before taxes     18,223     26,031       23,078       68,530       111,550  
    Income tax expense     4,896     7,552       8,093       19,033       31,764  
    Net income     13,327     18,479       14,985       49,497       79,786  
    Preferred stock dividends     1,822     1,822       1,822       5,465       5,465  
    Net income available to common stockholders   $ 11,505   $ 16,657     $ 13,163     $ 44,032     $ 74,321  
    Earnings per common share (“EPS”):                                
    Basic   $ 0.29   $ 0.43     $ 0.34     $ 1.13     $ 1.92  
    Diluted   $ 0.29   $ 0.43     $ 0.34     $ 1.13     $ 1.92  
                                   
    Average common shares outstanding for diluted EPS     38,366,619     38,329,485       38,203,961       38,317,223       38,177,704  
    DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
    UNAUDITED SELECTED FINANCIAL HIGHLIGHTS
    (Dollars in thousands except per share amounts)
                                             
        At or For the Three Months Ended   At or For the Nine Months Ended  
        September 30,      June 30,      September 30,    September 30,      September 30,   
        2024     2024     2023   2024     2023  
    Per Share Data:                                        
    Reported EPS (Diluted)   $ 0.29     $ 0.43     $ 0.34     $ 1.13     $ 1.92  
    Cash dividends paid per common share     0.25       0.25       0.25       0.75       0.74  
    Book value per common share     29.31       28.97       28.03       29.31       28.03  
    Tangible common book value per share (1)     25.22       24.87       23.87       25.22       23.87  
    Common shares outstanding     39,152       39,148       38,811       39,152       38,811  
    Dividend payout ratio     86.21 %       58.14 %     73.53 %     66.37 %     38.54 %
                                             
    Performance Ratios (Based upon Reported Net Income):                                         
    Return on average assets     0.39 %       0.55 %     0.44 %     0.49 %     0.78 %
    Return on average equity     4.19       5.88       4.91       5.24       8.78  
    Return on average tangible common equity (1)     4.70       6.88       5.69       6.06       10.73  
    Net interest margin     2.50       2.41       2.34       2.37       2.52  
    Non-interest expense to average assets     1.71       1.66       1.73       1.63       1.56  
    Efficiency ratio     65.9       63.8       70.5       64.6       59.0  
    Effective tax rate     26.87       29.01       35.07       27.77       28.48  
                                             
    Balance Sheet Data:                                         
    Average assets   $ 13,502,753     $ 13,418,441     $ 13,759,493     $ 13,571,710     $ 13,623,570  
    Average interest-earning assets     12,734,246       12,624,556       12,984,061       12,791,233       12,853,701  
    Average tangible common equity (1)     996,578       979,611       943,805       981,614       933,072  
    Loan-to-deposit ratio at end of period (2)     95.4       98.2       102.0       95.4       102.0  
                                             
    Capital Ratios and Reserves – Consolidated: (3)                                         
    Tangible common equity to tangible assets (1)     7.27 %       7.27 %     6.87 %                
    Tangible equity to tangible assets (1)     8.13       8.14       7.73                  
    Tier 1 common equity ratio     10.16       10.06       9.67                  
    Tier 1 risk-based capital ratio     11.28       11.17       10.76                  
    Total risk-based capital ratio     14.76       14.46       13.33                  
    Tier 1 leverage ratio     8.76       8.78       8.38                  
    Consolidated CRE concentration ratio (4)     487       499       547                  
    Allowance for credit losses/ Total loans     0.78       0.72       0.67                  
    Allowance for credit losses/ Non-performing loans     172.29       313.21       311.16                  

    (1) See “Non-GAAP Reconciliation” tables for reconciliation of tangible equity, tangible common equity, and tangible assets.
    (2) Total deposits include mortgage escrow deposits, which fluctuate seasonally.
    (3) September 30, 2024 ratios are preliminary pending completion and filing of the Company’s regulatory reports.

    (4) The Consolidated CRE concentration ratio is calculated using the sum of commercial real estate, excluding owner-occupied commercial real estate, multifamily, and acquisition, development, and construction, divided by consolidated capital. The September 30, 2024 ratio is preliminary pending completion and filing of the Company’s regulatory reports.

    DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
    UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME
    (Dollars in thousands)
                                                       
        Three Months Ended  
        September 30, 2024   June 30, 2024   September 30, 2023  
                    Average               Average               Average  
        Average         Yield/   Average         Yield/   Average         Yield/  
        Balance   Interest   Cost   Balance   Interest   Cost   Balance   Interest   Cost  
    Assets:                                                     
    Interest-earning assets:                                                     
    Business loans (1)   $ 2,609,934   $ 46,656   7.11 %   $ 2,400,219   $ 42,933   7.19 % $ 2,260,203   $ 38,384   6.74 %
    One-to-four family residential, including condo and coop     924,150     11,024   4.75     886,037     9,968   4.52     879,688     9,165   4.13  
    Multifamily residential and residential mixed-use     3,902,220     45,790   4.67     3,958,617     45,775   4.65     4,114,476     46,099   4.45  
    Non-owner-occupied commercial real estate     3,297,760     44,804   5.40     3,359,004     44,728   5.36     3,382,927     44,184   5.18  
    Acquisition, development, and construction     147,875     3,505   9.43     164,283     3,638   8.91     222,039     5,075   9.07  
    Other loans     4,891     49   3.99     5,100     57   4.50     6,156     88   5.67  
    Securities     1,493,492     7,766   2.07     1,537,487     7,907   2.07     1,619,960     7,916   1.94  
    Other short-term investments     353,924     4,645   5.22     313,809     4,412   5.65     498,612     6,930   5.51  
    Total interest-earning assets     12,734,246     164,239   5.13 %     12,624,556     159,418   5.08 %   12,984,061     157,841   4.82 %
    Non-interest-earning assets     768,507                 793,885               775,432            
    Total assets   $ 13,502,753               $ 13,418,441             $ 13,759,493            
                                                       
    Liabilities and Stockholders’ Equity:                                                  
    Interest-bearing liabilities:                                                  
    Interest-bearing checking (2)   $ 798,024   $ 4,635   2.31 %   $ 631,403   $ 1,499   0.95 % $ 786,892   $ 2,896   1.46 %
    Money market     3,771,562     36,841   3.89     3,495,989     33,193   3.82     2,975,267     24,275   3.24  
    Savings (2)     2,102,282     19,492   3.69     2,336,202     23,109   3.98     2,342,424     20,316   3.44  
    Certificates of deposit     1,232,984     13,057   4.21     1,393,678     15,077   4.35     1,494,491     15,020   3.99  
    Total interest-bearing deposits     7,904,852     74,025   3.73     7,857,272     72,878   3.73     7,599,074     62,507   3.26  
    FHLBNY advances     528,652     4,455   3.35     671,242     6,429   3.85     1,250,717     14,370   4.56  
    Subordinated debt, net     271,450     4,307   6.31     202,232     2,604   5.18     200,232     2,553   5.06  
    Other short-term borrowings     131     2   6.07     —     —   —     120     2   6.61  
    Total borrowings     800,233     8,764   4.36     873,474     9,033   4.16     1,451,069     16,925   4.63  
    Derivative cash collateral     91,305     1,526   6.65     145,702     2,005   5.53     156,795     1,930   4.88  
    Total interest-bearing liabilities     8,796,390     84,315   3.81 %     8,876,448     83,916   3.80 %   9,206,938     81,362   3.51 %
    Non-interest-bearing checking (2)     3,209,502                 3,042,382               3,065,186            
    Other non-interest-bearing liabilities     223,546                 242,980               265,559            
    Total liabilities     12,229,438                 12,161,810               12,537,683            
    Stockholders’ equity     1,273,315                 1,256,631               1,221,810            
    Total liabilities and stockholders’ equity   $ 13,502,753               $ 13,418,441             $ 13,759,493            
    Net interest income          $ 79,924              $ 75,502             $ 76,479      
    Net interest rate spread                 1.32 %               1.28 %             1.31 %
    Net interest margin                 2.50 %               2.41 %               2.34 %
    Deposits (including non-interest-bearing checking accounts) (2)   $ 11,114,354   $ 74,025   2.65 %   $ 10,899,654   $ 72,878   2.69 % $ 10,664,260   $ 62,507   2.33 %

    (1) Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and PPP loans.
    (2) Includes mortgage escrow deposits.

    DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
    UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS
    (Dollars in thousands)
                       
        At or For the Three Months Ended
        September 30,    June 30,    September 30, 
    Asset Quality Detail   2024
    		   2024
    		   2023
    Non-performing loans (“NPLs”)                   
    Business loans (1)   $ 25,411     $ 20,287     $ 19,555  
    One-to-four family residential, including condominium and cooperative apartment     3,880       3,884       2,874  
    Multifamily residential and residential mixed-use     —       —       —  
    Non-owner-occupied commercial real estate     19,509       15       15  
    Acquisition, development, and construction     657       657       657  
    Other loans     6       —       219  
    Total Non-accrual loans   $ 49,463     $ 24,843     $ 23,320  
    Total Non-performing assets (“NPAs”)   $ 49,463     $ 24,843     $ 23,320  
                       
    Total loans 90 days delinquent and accruing (“90+ Delinquent”)   $ —     $ —     $ —  
                       
    NPAs and 90+ Delinquent   $ 49,463     $ 24,843     $ 23,320  
                       
    NPAs and 90+ Delinquent / Total assets     0.36 %     0.18 %     0.17 %
    Net charge-offs (“NCOs”)   $ 4,199     $ 3,640     $ 4,864  
    NCOs / Average loans (2)     0.15 %     0.14 %     0.18 %

    (1) Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and PPP loans.
    (2) Calculated based on annualized NCOs to average loans, excluding loans held for sale.

                         

    DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
    NON-GAAP RECONCILIATION
    (Dollars in thousands except per share amounts)

    The following tables below provide a reconciliation of certain financial measures calculated under generally accepted accounting principles (“GAAP”) (as reported) and non-GAAP measures. A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with GAAP in the United States. The Company’s management believes the presentation of non-GAAP financial measures provides investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with GAAP. While management uses these non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with GAAP or considered to be more important than financial results determined in accordance with GAAP.

    The following non-GAAP financial measures exclude pre-tax income and expenses associated with the fair value change in equity securities and loans held for sale, net (gain) loss on sale of securities and other assets, severance, the FDIC special assessment and loss on extinguishment of debt:  

                                     
        Three Months Ended   Nine Months Ended  
        September 30,    June 30,       September 30,    September 30,    September 30,   
        2024
    		   2024
    		   2023
    		   2024
    		   2023
    		  
    Reconciliation of Reported and Adjusted (non-GAAP) Net Income Available to Common Stockholders                                
    Reported net income available to common stockholders   $ 11,505     $ 16,657     $ 13,163     $ 44,032     $ 74,321    
    Adjustments to net income (1):                                 
    Fair value change in equity securities and loans held for sale     (39 )     416       299       1,219       1,079    
    Net (gain) loss on sale of securities and other assets     (2 )     (3,695 )     22       (6,665 )     1,469    
    Severance     —       —       8,562       42       9,068    
    Loss on extinguishment of debt     1       —       —       454       —    
    Income tax effect of adjustments     13       1,043       (176 )     1,574       (985 )  
    Adjusted net income available to common stockholders (non-GAAP)   $ 11,478     $ 14,421     $ 21,870     $ 40,656     $ 84,952    
                                     
    Adjusted Ratios (Based upon Adjusted (non-GAAP) Net Income as calculated above)                                
    Adjusted EPS (Diluted)   $ 0.29     $ 0.37     $ 0.56     $ 1.04     $ 2.19    
    Adjusted return on average assets     0.39   %     0.48   %   0.69   %   0.45   %   0.88   %
    Adjusted return on average equity     4.18       5.17       7.76       4.89       9.95    
    Adjusted return on average tangible common equity     4.69       5.97       9.38       5.60       12.25    
    Adjusted non-interest expense to average assets     1.70       1.65       1.48       1.62       1.46    
    Adjusted efficiency ratio     65.6       65.9       59.7       65.5       54.7    

    (1) Adjustments to net income are taxed at the Company’s approximate statutory tax rate.

    The following table presents a reconciliation of operating expense as a percentage of average assets (as reported) and adjusted operating expense as a percentage of average assets (non-GAAP):

                                   
        Three Months Ended     Nine Months Ended
           September 30,      June 30,      September 30,      September 30,         September 30,   
        2024       2024       2023       2024       2023    
    Operating expense as a % of average assets – as reported   1.71   %     1.66   %   1.73   %   1.63   %     1.56   %
    Loss on extinguishment of debt   —       —       —       —       —    
    Severance   —       —       (0.25 )     —       (0.09 )  
    Amortization of other intangible assets   (0.01 )     (0.01 )     —       (0.01 )     (0.01 )  
    Adjusted operating expense as a % of average assets (non-GAAP)   1.70   %     1.65   %   1.48   %   1.62   %   1.46   %

    The following table presents a reconciliation of efficiency ratio (non-GAAP) and adjusted efficiency ratio (non-GAAP):

                                     
        Three Months Ended   Nine Months Ended  
           September 30,       June 30,       September 30,       September 30,    September 30,   
        2024
    		   2024
    		   2023
    		   2024
    		   2023
    		  
    Efficiency ratio – as reported (non-GAAP) (1)        65.9   %     63.8   %   70.5   %   64.6   %     59.0   %
    Non-interest expense – as reported   $ 57,729     $ 55,694     $ 59,523     $ 165,934     $ 159,184    
    Severance     —       —       (8,562 )     (42 )     (9,068 )  
    Loss on extinguishment of debt     (1 )     —       —       (454 )     —    
    Amortization of other intangible assets     (286 )     (285 )     (349 )     (878 )     (1,075 )  
    Adjusted non-interest expense (non-GAAP)   $ 57,442     $ 55,409     $ 50,612     $ 164,560     $ 149,041    
    Net interest income – as reported   $ 79,924     $ 75,502     $ 76,479     $ 226,956     $ 242,450    
    Non-interest income – as reported   $ 7,631     $ 11,808     $ 7,928     $ 29,906     $ 27,334    
    Fair value change in equity securities and loans held for sale     (39 )     416       299       1,219       1,079    
    Net (gain) loss on sale of securities and other assets     (2 )     (3,695 )     22       (6,665 )     1,469    
    Adjusted non-interest income (non-GAAP)   $ 7,590     $ 8,529     $ 8,249     $ 24,460     $ 29,882    
    Adjusted total revenues for adjusted efficiency ratio (non-GAAP)   $ 87,514     $ 84,031     $ 84,728     $ 251,416     $ 272,332    
    Adjusted efficiency ratio (non-GAAP) (2)     65.6   %     65.9   %   59.7   %   65.5   %     54.7   %

    (1) The reported efficiency ratio is a non-GAAP measure calculated by dividing GAAP non-interest expense by the sum of GAAP net interest income and GAAP non-interest income.
    (2) The adjusted efficiency ratio is a non-GAAP measure calculated by dividing adjusted non-interest expense by the sum of GAAP net interest income and adjusted non-interest income.

    The following table presents the tangible common equity to tangible assets, tangible equity to tangible assets, and tangible common book value per share calculations (non-GAAP):

                         
           September 30,       June 30,       September 30,   
        2024
    		   2024
    		   2023
    		  
    Reconciliation of Tangible Assets:                    
    Total assets   $ 13,746,529     $ 13,548,763     $ 13,651,405    
    Goodwill     (155,797 )     (155,797 )     (155,797 )  
    Other intangible assets     (4,181 )     (4,467 )     (5,409 )  
    Tangible assets (non-GAAP)   $ 13,586,551     $ 13,388,499     $ 13,490,199    
                         
    Reconciliation of Tangible Common Equity – Consolidated:                    
    Total stockholders’ equity   $ 1,263,929     $ 1,250,596     $ 1,204,344    
    Goodwill     (155,797 )     (155,797 )     (155,797 )  
    Other intangible assets     (4,181 )     (4,467 )     (5,409 )  
    Tangible equity (non-GAAP)     1,103,951       1,090,332       1,043,138    
    Preferred stock, net     (116,569 )     (116,569 )     (116,569 )  
    Tangible common equity (non-GAAP)   $ 987,382     $ 973,763     $ 926,569    
                         
    Common shares outstanding     39,152       39,148       38,811    
                         
    Tangible common equity to tangible assets (non-GAAP)     7.27   %   7.27   %   6.87   %
    Tangible equity to tangible assets (non-GAAP)     8.13       8.14       7.73    
                         
    Book value per common share   $ 29.31     $ 28.97     $ 28.03    
    Tangible common book value per share (non-GAAP)     25.22       24.87       23.87    

    The MIL Network –

  • MIL-OSI: Gabelli Funds to Host 48th Annual Automotive Symposium at The Encore at Wynn, Las Vegas, Nevada

    Source: GlobeNewswire (MIL-OSI)

    GREENWICH, Conn., Oct. 22, 2024 (GLOBE NEWSWIRE) — Gabelli Funds will host its 48th Annual Automotive Symposium on November 4th and 5th, 2024 at the Encore at Wynn in Las Vegas, Nevada. This two-day symposium will feature presentations by senior managements of leading automotive and trucking companies, with a lineup that enables investors to understand ever-changing dynamics within the automotive industry.

    Presenting attendees, which include original equipment suppliers, automotive retailers, aftermarket service participants and next-gen tech companies driving vehicle electrification will provide a “cradle to grave” look at the automotive ecosystem and help investors understand “What’s Next?” for the automotive space.

    Agenda

      Monday, November 4   Tuesday, November 5
    11:00AM Gabelli Auto Team 8:20AM Introduction
    11:20 NN, Inc. (NASDAQ: NNBR) 8:30 Dorman Products, Inc. (NASDAQ: DORM)
    11:50 MP Materials Corp. (NYSE: MP) 9:00 AutoNation, Inc. (NYSE: AN)
    12:10PM Lunch Break 9:30 PHINIA Inc. (NYSE: PHIN)
    12:30 Gentex Corporation (NASDAQ: GNTX) 10:00 AutoZone, Inc. (NYSE: AZO)
    1:00 Garrett Motion Inc. (NASDAQ: GTX) 10:30 Standard Motor Products, Inc. (NYSE: SMP)
    1:30 Donaldson Company, Inc. (NYSE: DCI) 11:00 Genuine Parts Company (NYSE: GPC)
    2:00 MEMA / AASA 11:30 Monro, Inc. (NASDAQ: MNRO)
    3:00 Dana Incorporated (NYSE: DAN) 12:00PM Lunch Break
    3:30 Rush Enterprises, Inc. (NASDAQ: RUSHA/RUSHB) 12:15 Keynote – EVolving Landscape in Auto Repair
    4:00 Penske Automotive Group, Inc. (NYSE: PAG) 1:00 Motorcar Parts of America, Inc. (NASDAQ: MPAA)
    4:30 Myers Industries, Inc. (NYSE: MYE) 1:30 O’Reilly Automotive, Inc. (NASDAQ: ORLY)
    TBD Gabelli Funds’ Cocktail Reception 2:00 CarParts.com, Inc. (NASDAQ: PRTS)
        2:30 Strattec Security Corporation (NASDAQ: STRT)
           

    The Encore at Wynn, Las Vegas, NV
    Monday, November 4th and Tuesday, November 5th

    Registration link: CLICK HERE

    For general inquiries, contact:
    James Carey, Associate – Private Wealth Management, 914-921-8318, jcarey@gabelli.com
    Miles McQuillen, AVP – Private Wealth Management, 914-921-5112, mmcquillen@gabelli.com

    Gabelli Funds, LLC is a registered investment adviser with the Securities and Exchange Commission and is a wholly owned subsidiary of GAMCO Investors, Inc.

    Contact: Brian Sponheimer
    Portfolio Manager
    (914) 921-8336

    The MIL Network –

  • MIL-OSI: Old National Bancorp Reports Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    EVANSVILLE, Ind., Oct. 22, 2024 (GLOBE NEWSWIRE) —

    Old National Bancorp (NASDAQ: ONB) reports 3Q24 net income applicable to common shares of $139.8 million, diluted EPS of $0.44; $147.2 million and $0.46 on an adjusted1basis, respectively.

    CEO COMMENTARY:

    “Old National’s strong 3rd quarter was driven by a focus on our fundamentals: continuing to grow deposits and loans, effectively managing both credit and capital, and creating positive operating leverage through disciplined expense management,” said Chairman and CEO Jim Ryan. “As a result of our ability to execute on this fundamental strategy, we find ourselves well positioned to continue to invest in new markets while attracting exceptional talent to our franchise.”


    THIRD     QUARTER HIGHLIGHTS2:

    Net Income
    • Net income applicable to common shares of $139.8 million; adjusted net income applicable to common shares1 of $147.2 million
    • Earnings per diluted common share (“EPS”) of $0.44; adjusted EPS1 of $0.46
       
    Net Interest Income/NIM
    • Net interest income on a fully taxable equivalent basis1 of $397.9 million
    • Net interest margin on a fully taxable equivalent basis1 (“NIM”) of 3.32%, down 1 basis point (“bp”)
       
    Operating Performance
    • Pre-provision net revenue1 (“PPNR”) of $219.7 million; adjusted PPNR1 of $229.3 million
    • Noninterest expense of $272.3 million; adjusted noninterest expense1 of $262.8 million
    • Efficiency ratio1 of 53.8%; adjusted efficiency ratio1 of 51.2%
       
    Deposits and Funding
    • Period-end total deposits of $40.8 billion, up $0.8 billion; core deposits up $1.0 billion
    • Granular low-cost deposit franchise; total deposit costs of 225 bps
       
    Loans and Credit Quality
    • End-of-period total loans3 of $36.5 billion, up 2.7% annualized
    • Provision for credit losses4 (“provision”) of $28.5 million
    • Net charge-offs of $17.5 million, or 19 bps of average loans; 16 bps excluding purchased credit deteriorated (“PCD”) loans that had an allowance at acquisition
    • 30+ day delinquencies of 0.26% and non-performing loans of 1.22% of total loans
     
    Return Profile & Capital
    • Return on average tangible common equity1 of 16.0%; adjusted return on average tangible common equity1 of 16.8%
    • Tangible common equity to tangible assets1 of 7.4%, up 7.2%
       
    Notable Items
    • $6.9 million of pre-tax merger-related charges
    • $2.6 million of pre-tax separation expense5


    1     Non-GAAP financial measure that management believes is useful in evaluating the financial results of the Company – refer to the Non-GAAP reconciliations contained in this release 2 Comparisons are on a linked-quarter basis, unless otherwise noted 3 Includes loans held-for-sale 4 Includes the provision for unfunded commitments 5 Expense associated with a mutual separation agreement with a former Old National executive

    RESULTS OF OPERATIONS2
    Old National Bancorp (“Old National”) reported third quarter 2024 net income applicable to common shares of $139.8 million, or $0.44 per diluted common share.

    Included in third quarter results were pre-tax charges of $6.9 million primarily related to the April 1, 2024 acquisition of CapStar Financial Holdings, Inc. (“CapStar”) and $2.6 million of pre-tax separation expense5. Excluding these transactions and realized debt securities gains from the current quarter, adjusted net income1 was $147.2 million, or $0.46 per diluted common share.

    DEPOSITS AND FUNDING
    Growth in deposits driven by increases in commercial and community deposits and normal seasonal patterns in public funds, partially offset by lower brokered deposits.

    • Period-end total deposits were $40.8 billion, up 8.5% annualized; core deposits up 10.1% annualized.
    • On average, total deposits for the third quarter were $40.6 billion, up 4.8% annualized.
    • Granular low-cost deposit franchise; total deposit costs of 225 bps.
    • A loan to deposit ratio of 89%, combined with existing funding sources, provides strong liquidity.

    LOANS
    Broad-based disciplined commercial loan growth.

    • Period-end total loans3 were $36.5 billion, up 2.7% annualized.
    • Total commercial loan production in the third quarter was $1.7 billion; period-end commercial pipeline totaled $2.8 billion.
    • Average total loans in the third quarter were $36.3 billion, an increase of $235.9 million.

    CREDIT QUALITY
    Resilient credit quality continues to be a hallmark of Old National.

    • Provision4 expense was $28.5 million compared to $36.2 million, or $20.9 million excluding $15.3 million of current expected credit loss (“CECL”) Day 1 non-PCD provision expense related to the allowance for credit losses established on acquired non-PCD loans in the CapStar transaction in the second quarter of 2024.
    • Net charge-offs were $17.5 million, or 19 bps of average loans compared to net charge-offs of 16 bps of average loans.
      • Excluding PCD loans that had an allowance for credit losses established at acquisition, net charge-offs to average loans were 16 bps.
    • 30+ day delinquencies as a percentage of loans were 0.26% compared to 0.16%.
    • Nonaccrual loans as a percentage of total loans were 1.22% compared to 0.94%.
    • Loans acquired from previous acquisitions were recorded at fair value at the acquisition date. The remaining discount on these acquired loans was $174.0 million.
    • The allowance for credit losses, including the allowance for credit losses on unfunded commitments, stood at $405.9 million, or 1.12% of total loans, compared to $392.1 million, or 1.08% of total loans.

    NET INTEREST INCOME AND MARGIN
    Higher net interest income and stable margin reflective of the rate environment.

    • Net interest income on a fully taxable equivalent basis1 increased to $397.9 million compared to $394.8 million, driven by loan growth as well as higher asset yields and accretion, partly offset by higher funding costs.
    • Net interest margin on a fully taxable equivalent basis1 modestly decreased 1 bps to 3.32%.
    • Accretion income on loans and borrowings was $15.6 million, or 13 bps of net interest margin1, compared to $11.6 million, or 10 bps of net interest margin1.
    • Cost of total deposits was 2.25%, increasing 9 bps and the cost of total interest-bearing deposits increased 9 bps to 2.93%.

    NONINTEREST INCOME
    Increase driven by higher service charges, mortgage fees, capital markets income, and other income.

    • Total noninterest income was $94.1 million compared to $87.3 million.
    • Noninterest income was up 7.9% driven by higher service charges, mortgage fees, capital markets income, and other income.

    NONINTEREST EXPENSE
    Disciplined expense management.

    • Noninterest expense was $272.3 million and included $6.9 million of merger-related charges and $2.6 million of pre-tax separation expense5.
      • Excluding these items, adjusted noninterest expense1 was $262.8 million, compared to $263.6 million.
    • The efficiency ratio1 was 53.8%, while the adjusted efficiency ratio1 was 51.2% compared to 57.2% and 52.6%, respectively.

    INCOME TAXES

    • Income tax expense was $41.3 million, resulting in an effective tax rate of 22.3% compared to 22.5%. On an adjusted fully taxable equivalent (“FTE”) basis, the effective tax rate was 24.8% compared to 25.5%.
    • Income tax expense included $4.0 million of tax credit benefit compared to $3.5 million.

    CAPITAL
    Capital ratios remain strong.

    • Preliminary total risk-based capital up 23 bps to 12.94% and preliminary regulatory Tier 1 capital up 27 bps to 11.60%, as strong retained earnings drive capital.
    • Tangible common equity to tangible assets was 7.44% compared to 6.94%.

    CONFERENCE CALL AND WEBCAST
    Old National will host a conference call and live webcast at 9:00 a.m. Central Time on Tuesday, October 22, 2024, to review third quarter financial results. The live audio webcast link and corresponding presentation slides will be available on the Company’s Investor Relations website at oldnational.com and will be archived there for 12 months. To listen to the live conference call, dial U.S. (800) 715-9871 or International (646) 307-1963, access code 1586600. A replay of the call will also be available from approximately noon Central Time on October 22, 2024 through November 5, 2024. To access the replay, dial U.S. (800) 770-2030 or International (647) 362-9199; Access code 1586600.

    ABOUT OLD NATIONAL
    Old National Bancorp (NASDAQ: ONB) is the holding company of Old National Bank. As the sixth largest commercial bank headquartered in the Midwest, Old National proudly serves clients primarily in the Midwest and Southeast. With approximately $54 billion of assets and $31 billion of assets under management, Old National ranks among the top 30 banking companies headquartered in the United States. Tracing our roots to 1834, Old National focuses on building long-term, highly valued partnerships with clients while also strengthening and supporting the communities we serve. In addition to providing extensive services in consumer and commercial banking, Old National offers comprehensive wealth management and capital markets services. For more information and financial data, please visit Investor Relations at oldnational.com. In 2024, Points of Light named Old National one of “The Civic 50” – an honor reserved for the 50 most community-minded companies in the United States.

    USE OF NON-GAAP FINANCIAL MEASURES
    The Company’s accounting and reporting policies conform to U.S. generally accepted accounting principles (“GAAP”) and general practices within the banking industry. As a supplement to GAAP, the Company provides non-GAAP performance results, which the Company believes are useful because they assist investors in assessing the Company’s operating performance. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables at the end of this release.

    The Company presents EPS, the efficiency ratio, return on average common equity, return on average tangible common equity, and net income applicable to common shares, all adjusted for certain notable items. These items include merger-related charges associated with completed and pending acquisitions, separation expense, debt securities gains/losses, CECL Day 1 non-PCD provision expense, distribution of excess pension assets expense, FDIC special assessment expense, gain on sale of Visa Class B restricted shares, contract termination charges, expenses related to the tragic April 10, 2023 event at our downtown Louisville location (“Louisville expenses”), and property optimization charges. Management believes excluding these items from EPS, the efficiency ratio, return on average common equity, and return on average tangible common equity may be useful in assessing the Company’s underlying operational performance since these items do not pertain to its core business operations and their exclusion may facilitate better comparability between periods. Management believes that excluding merger-related charges from these metrics may be useful to the Company, as well as analysts and investors, since these expenses can vary significantly based on the size, type, and structure of each acquisition. Additionally, management believes excluding these items from these metrics may enhance comparability for peer comparison purposes.

    Income tax expense, provision for credit losses, and the certain notable items listed above are excluded from the calculation of pre-provision net revenues, adjusted due to the fluctuation in income before income tax and the level of provision for credit losses required. Management believes adjusted pre-provision net revenues may be useful in assessing the Company’s underlying operating performance and their exclusion may facilitate better comparability between periods and for peer comparison purposes.

    The Company presents adjusted noninterest expense, which excludes merger-related charges associated with completed and pending acquisitions, separation expense, distribution of excess pension assets expense, FDIC special assessment expense, contract termination charges, Louisville expenses, and property optimization charges, as well as adjusted noninterest income, which excludes debt securities gains/losses and the gain on sale of Visa Class B restricted shares. Management believes that excluding these items from noninterest expense and noninterest income may be useful in assessing the Company’s underlying operational performance as these items either do not pertain to its core business operations or their exclusion may facilitate better comparability between periods and for peer comparison purposes.

    The tax-equivalent adjustment to net interest income and net interest margin recognizes the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal income tax rate of 21%. Management believes that it is standard practice in the banking industry to present net interest income and net interest margin on a fully tax-equivalent basis and that it may enhance comparability for peer comparison purposes.

    In management’s view, tangible common equity measures are capital adequacy metrics that may be meaningful to the Company, as well as analysts and investors, in assessing the Company’s use of equity and in facilitating comparisons with peers. These non-GAAP measures are valuable indicators of a financial institution’s capital strength since they eliminate intangible assets from stockholders’ equity and retain the effect of accumulated other comprehensive loss in stockholders’ equity.

    Although intended to enhance investors’ understanding of the Company’s business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. In addition, these non-GAAP financial measures may differ from those used by other financial institutions to assess their business and performance. See the following reconciliations in the “Non-GAAP Reconciliations” section for details on the calculation of these measures to the extent presented herein.

    FORWARD-LOOKING STATEMENTS
    This communication contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”), notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in our future filings with the Securities and Exchange Commission (“SEC”), in press releases, and in oral and written statements made by us that are not statements of historical fact and constitute forward‐looking statements within the meaning of the Act. These statements include, but are not limited to, descriptions of Old National’s financial condition, results of operations, asset and credit quality trends, profitability and business plans or opportunities. Forward-looking statements can be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “should,” “would,” and “will,” and other words of similar meaning. These forward-looking statements express management’s current expectations or forecasts of future events and, by their nature, are subject to risks and uncertainties. There are a number of factors that could cause actual results or outcomes to differ materially from those in such statements, including, but not limited to: competition; government legislation, regulations and policies; the ability of Old National to execute its business plan; unanticipated changes in our liquidity position, including but not limited to changes in our access to sources of liquidity and capital to address our liquidity needs; changes in economic conditions and economic and business uncertainty which could materially impact credit quality trends and the ability to generate loans and gather deposits; inflation and governmental responses to inflation, including increasing interest rates; market, economic, operational, liquidity, credit, and interest rate risks associated with our business; our ability to successfully manage our credit risk and the sufficiency of our allowance for credit losses; the expected cost savings, synergies and other financial benefits from the merger (the “Merger”) between Old National and CapStar Financial Holdings, Inc. not being realized within the expected time frames and costs or difficulties relating to integration matters being greater than expected; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the Merger; the potential impact of future business combinations on our performance and financial condition, including our ability to successfully integrate the businesses and the success of revenue-generating and cost reduction initiatives; failure or circumvention of our internal controls; operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity, technological changes, vendor issues, business interruption, and fraud risks; significant changes in accounting, tax or regulatory practices or requirements; new legal obligations or liabilities; disruptive technologies in payment systems and other services traditionally provided by banks; failure or disruption of our information systems; computer hacking and other cybersecurity threats; the effects of climate change on Old National and its customers, borrowers, or service providers; political and economic uncertainty and instability; the impacts of pandemics, epidemics and other infectious disease outbreaks; other matters discussed in this communication; and other factors identified in our Annual Report on Form 10-K for the year ended December 31, 2023 and other filings with the SEC. These forward-looking statements are made only as of the date of this communication and are not guarantees of future results, performance or outcomes, and Old National does not undertake an obligation to update these forward-looking statements to reflect events or conditions after the date of this communication.

    CONTACTS:    
    Media: Kathy Schoettlin   Investors: Lynell Durchholz
    (812) 465-7269   (812) 464-1366
    Kathy.Schoettlin@oldnational.com   Lynell.Durchholz@oldnational.com
                   
    Financial Highlights (unaudited)
    ($ and shares in thousands, except per share data)
                     
      Three Months Ended   Nine Months Ended
      September 30, June 30, March 31, December 31, September 30,   September 30, September 30,
        2024     2024     2024     2023     2023       2024     2023  
    Income Statement                
    Net interest income $ 391,724   $ 388,421   $ 356,458   $ 364,408   $ 375,086     $ 1,136,603   $ 1,138,745  
    FTE adjustment1,3   6,144     6,340     6,253     6,100     5,837       18,737     17,328  
    Net interest income – tax equivalent basis3   397,868     394,761     362,711     370,508     380,923       1,155,340     1,156,073  
    Provision for credit losses   28,497     36,214     18,891     11,595     19,068       83,602     47,292  
    Noninterest income   94,138     87,271     77,522     100,094     80,938       258,931     233,248  
    Noninterest expense   272,283     282,999     262,317     284,235     244,776       817,599     742,071  
    Net income available to common shareholders $ 139,768   $ 117,196   $ 116,250   $ 128,446   $ 143,842     $ 373,214   $ 437,411  
    Per Common Share Data                
    Weighted average diluted shares   317,331     316,461     292,207     292,029     291,717       308,605     291,809  
    EPS, diluted $ 0.44   $ 0.37   $ 0.40   $ 0.44   $ 0.49     $ 1.21   $ 1.50  
    Cash dividends   0.14     0.14     0.14     0.14     0.14       0.42     0.42  
    Dividend payout ratio2   32 %   38 %   35 %   32 %   29 %     35 %   28 %
    Book value $ 19.20   $ 18.28   $ 18.24   $ 18.18   $ 17.07     $ 19.20   $ 17.07  
    Stock price   18.66     17.19     17.41     16.89     14.54       18.66     14.54  
    Tangible book value3   11.97     11.05     11.10     11.00     9.87       11.97     9.87  
    Performance Ratios                
    ROAA   1.08 %   0.92 %   0.98 %   1.09 %   1.22 %     0.99 %   1.25 %
    ROAE   9.4 %   8.2 %   8.7 %   10.2 %   11.4 %     8.8 %   11.7 %
    ROATCE3   16.0 %   14.1 %   14.9 %   18.1 %   20.2 %     15.0 %   20.8 %
    NIM (FTE)   3.32 %   3.33 %   3.28 %   3.39 %   3.49 %     3.31 %   3.59 %
    Efficiency ratio3   53.8 %   57.2 %   58.3 %   59.0 %   51.7 %     56.4 %   51.9 %
    NCOs to average loans   0.19 %   0.16 %   0.14 %   0.12 %   0.24 %     0.16 %   0.19 %
    ACL on loans to EOP loans   1.05 %   1.01 %   0.95 %   0.93 %   0.93 %     1.05 %   0.93 %
    ACL4 to EOP loans   1.12 %   1.08 %   1.03 %   1.03 %   1.03 %     1.12 %   1.03 %
    NPLs to EOP loans   1.22 %   0.94 %   0.98 %   0.83 %   0.80 %     1.22 %   0.80 %
    Balance Sheet (EOP)                
    Total loans $ 36,400,643   $ 36,150,513   $ 33,623,319   $ 32,991,927   $ 32,577,834     $ 36,400,643   $ 32,577,834  
    Total assets   53,602,293     53,119,645     49,534,918     49,089,836     49,059,448       53,602,293     49,059,448  
    Total deposits   40,845,746     39,999,228     37,699,418     37,235,180     37,252,676       40,845,746     37,252,676  
    Total borrowed funds   5,449,096     6,085,204     5,331,161     5,331,147     5,556,010       5,449,096     5,556,010  
    Total shareholders’ equity   6,367,298     6,075,072     5,595,408     5,562,900     5,239,537       6,367,298     5,239,537  
    Capital Ratios                
    Risk-based capital ratios (EOP):                
    Tier 1 common equity   11.00 %   10.73 %   10.76 %   10.70 %   10.41 %     11.00 %   10.41 %
    Tier 1 capital   11.60 %   11.33 %   11.40 %   11.35 %   11.06 %     11.60 %   11.06 %
    Total capital   12.94 %   12.71 %   12.74 %   12.64 %   12.32 %     12.94 %   12.32 %
    Leverage ratio (average assets)   9.05 %   8.90 %   8.96 %   8.83 %   8.70 %     9.05 %   8.70 %
    Equity to assets (averages)3   11.60 %   11.31 %   11.32 %   10.81 %   10.88 %     11.41 %   10.95 %
    TCE to TA3   7.44 %   6.94 %   6.86 %   6.85 %   6.15 %     7.44 %   6.15 %
    Nonfinancial Data                
    Full-time equivalent employees   4,105    4,267    3,955    3,940    3,981      4,105    3,981 
    Banking centers   280    280    258    258    257      280    257 
    1 Calculated using the federal statutory tax rate in effect of 21% for all periods.          
    2 Cash dividends per common share divided by net income per common share (basic).          
    3 Represents a non-GAAP financial measure. Refer to the “Non-GAAP Measures” table for reconciliations to GAAP financial measures.
        September 30, 2024 capital ratios are preliminary.
    4 Includes the allowance for credit losses on loans and unfunded loan commitments.          
                     
    FTE – Fully taxable equivalent basis ROAA – Return on average assets ROAE – Return on average equity ROATCE – Return on average tangible common equity
    NCOs – Net Charge-offs ACL – Allowance for Credit Losses EOP – End of period actual balances NPLs – Non-performing Loans TCE – Tangible common equity TA – Tangible assets
                     
    Income Statement (unaudited)
    ($ and shares in thousands, except per share data)
      Three Months Ended   Nine Months Ended
      September 30, June 30, March 31, December 31, September 30,   September 30, September 30,
        2024     2024     2024     2023     2023       2024     2023  
    Interest income $ 679,925   $ 663,663   $ 595,981   $ 589,751   $ 576,519     $ 1,939,569   $ 1,617,070  
    Less: interest expense   288,201     275,242     239,523     225,343     201,433       802,966     478,325  
    Net interest income   391,724     388,421     356,458     364,408     375,086       1,136,603     1,138,745  
    Provision for credit losses   28,497     36,214     18,891     11,595     19,068       83,602     47,292  
    Net interest income after provision for credit losses   363,227     352,207     337,567     352,813     356,018       1,053,001     1,091,453  
    Wealth and investment services fees   29,117     29,358     28,304     27,656     26,687       86,779     80,128  
    Service charges on deposit accounts   20,350     19,350     17,898     18,667     18,524       57,598     53,278  
    Debit card and ATM fees   11,362     10,993     10,054     10,700     10,818       32,409     31,453  
    Mortgage banking revenue   7,669     7,064     4,478     3,691     5,063       19,211     12,628  
    Capital markets income   7,426     4,729     2,900     5,416     5,891       15,055     19,003  
    Company-owned life insurance   5,315     5,739     3,434     3,773     3,740       14,488     11,624  
    Gain on sale of Visa Class B restricted shares   —     —     —     21,635     —       —     —  
    Other income   12,975     10,036     10,470     9,381     10,456       33,481     30,574  
    Debt securities gains (losses), net   (76 )   2     (16 )   (825 )   (241 )     (90 )   (5,440 )
    Total noninterest income   94,138     87,271     77,522     100,094     80,938       258,931     233,248  
    Salaries and employee benefits   147,494     159,193     149,803     141,649     131,541       456,490     404,715  
    Occupancy   27,130     26,547     27,019     26,514     25,795       80,696     80,162  
    Equipment   9,888     8,704     8,671     8,769     8,284       27,263     23,394  
    Marketing   11,036     11,284     10,634     10,813     9,448       32,954     28,698  
    Technology   23,343     24,002     20,023     20,493     20,592       67,368     59,850  
    Communication   4,681     4,480     4,000     4,212     4,075       13,161     12,768  
    Professional fees   7,278     10,552     6,406     8,250     5,956       24,236     19,085  
    FDIC assessment   11,722     9,676     11,313     27,702     9,000       32,711     29,028  
    Amortization of intangibles   7,411     7,425     5,455     5,869     6,040       20,291     18,286  
    Amortization of tax credit investments   3,277     2,747     2,749     7,200     2,644       8,773     8,167  
    Other expense   19,023     18,389     16,244     22,764     21,401       53,656     57,918  
    Total noninterest expense   272,283     282,999     262,317     284,235     244,776       817,599     742,071  
    Income before income taxes   185,082     156,479     152,772     168,672     192,180       494,333     582,630  
    Income tax expense   41,280     35,250     32,488     36,192     44,304       109,018     133,118  
    Net income $ 143,802   $ 121,229   $ 120,284   $ 132,480   $ 147,876     $ 385,315   $ 449,512  
    Preferred dividends   (4,034 )   (4,033 )   (4,034 )   (4,034 )   (4,034 )     (12,101 )   (12,101 )
    Net income applicable to common shares $ 139,768   $ 117,196   $ 116,250   $ 128,446   $ 143,842     $ 373,214   $ 437,411  
                     
    EPS, diluted $ 0.44   $ 0.37   $ 0.40   $ 0.44   $ 0.49     $ 1.21   $ 1.50  
    Weighted Average Common Shares Outstanding                
    Basic   315,622     315,585     290,980     290,701     290,648       307,426     290,763  
    Diluted   317,331     316,461     292,207     292,029     291,717       308,605     291,809  
    Common shares outstanding (EOP)   318,955     318,969     293,330     292,655     292,586       318,955     292,586  
                     
                     
     
    End of Period Balance Sheet (unaudited)
    ($ in thousands)
      September 30, June 30, March 31, December 31, September 30,
        2024     2024     2024     2023     2023  
    Assets          
    Cash and due from banks $ 498,120   $ 428,665   $ 350,990   $ 430,866   $ 381,343  
    Money market and other interest-earning investments   693,450     804,381     588,509     744,192     1,282,087  
    Investments:          
    Treasury and government-sponsored agencies   2,335,716     2,207,004     2,243,754     2,453,950     2,515,249  
    Mortgage-backed securities   6,085,826     5,890,371     5,566,881     5,245,691     4,906,290  
    States and political subdivisions   1,665,128     1,678,597     1,672,061     1,693,819     1,705,200  
    Other securities   783,079     775,623     760,847     779,048     751,404  
    Total investments   10,869,749     10,551,595     10,243,543     10,172,508     9,878,143  
    Loans held-for-sale, at fair value   62,376     66,126     19,418     32,006     122,033  
    Loans:          
    Commercial   10,408,095     10,332,631     9,648,269     9,512,230     9,333,448  
    Commercial and agriculture real estate   16,356,216     16,016,958     14,653,958     14,140,629     13,916,221  
    Residential real estate   6,757,896     6,894,957     6,661,379     6,699,443     6,696,288  
    Consumer   2,878,436     2,905,967     2,659,713     2,639,625     2,631,877  
    Total loans   36,400,643     36,150,513     33,623,319     32,991,927     32,577,834  
    Allowance for credit losses on loans   (380,840 )   (366,335 )   (319,713 )   (307,610 )   (303,982 )
    Premises and equipment, net   599,528     601,945     564,007     565,396     565,607  
    Goodwill and other intangible assets   2,305,084     2,306,204     2,095,511     2,100,966     2,106,835  
    Company-owned life insurance   863,723     862,032     767,423     767,902     774,517  
    Accrued interest receivable and other assets   1,690,460     1,714,519     1,601,911     1,591,683     1,675,031  
    Total assets $ 53,602,293   $ 53,119,645   $ 49,534,918   $ 49,089,836   $ 49,059,448  
               
    Liabilities and Equity          
    Noninterest-bearing demand deposits $ 9,429,285   $ 9,336,042   $ 9,257,709   $ 9,664,247   $ 10,091,352  
    Interest-bearing:          
    Checking and NOW accounts   7,314,245     7,680,865     7,236,667     7,331,487     7,495,417  
    Savings accounts   4,781,447     4,983,811     5,020,095     5,099,186     5,296,985  
    Money market accounts   11,601,461     10,485,491     10,234,113     9,561,116     8,793,218  
    Other time deposits   6,010,070     5,688,432     4,760,659     4,565,137     4,398,182  
    Total core deposits   39,136,508     38,174,641     36,509,243     36,221,173     36,075,154  
    Brokered deposits   1,709,238     1,824,587     1,190,175     1,014,007     1,177,522  
    Total deposits   40,845,746     39,999,228     37,699,418     37,235,180     37,252,676  
               
    Federal funds purchased and interbank borrowings   135,263     250,154     50,416     390     918  
    Securities sold under agreements to repurchase   244,626     240,713     274,493     285,206     279,061  
    Federal Home Loan Bank advances   4,471,153     4,744,560     4,193,039     4,280,681     4,412,576  
    Other borrowings   598,054     849,777     813,213     764,870     863,455  
    Total borrowed funds   5,449,096     6,085,204     5,331,161     5,331,147     5,556,010  
    Accrued expenses and other liabilities   940,153     960,141     908,931     960,609     1,011,225  
    Total liabilities   47,234,995     47,044,573     43,939,510     43,526,936     43,819,911  
    Preferred stock, common stock, surplus, and retained earnings   6,971,054     6,866,480     6,375,036     6,301,709     6,208,352  
    Accumulated other comprehensive income (loss), net of tax   (603,756 )   (791,408 )   (779,628 )   (738,809 )   (968,815 )
    Total shareholders’ equity   6,367,298     6,075,072     5,595,408     5,562,900     5,239,537  
    Total liabilities and shareholders’ equity $ 53,602,293   $ 53,119,645   $ 49,534,918   $ 49,089,836   $ 49,059,448  
     
                             
    Average Balance Sheet and Interest Rates (unaudited)
    ($ in thousands)
                             
                             
        Three Months Ended   Three Months Ended   Three Months Ended
        September 30, 2024   June 30, 2024   September 30, 2023
        Average Income1/ Yield/   Average Income1/ Yield/   Average Income1/ Yield/
    Earning Assets:   Balance Expense Rate   Balance Expense Rate   Balance Expense Rate
    Money market and other interest-earning investments   $ 904,176   $ 11,696 5.15 %   $ 814,944   $ 11,311 5.58 %   $ 980,813   $ 13,194 5.34 %
    Investments:                        
    Treasury and government-sponsored agencies     2,255,629     21,851 3.87 %     2,208,935     21,531 3.90 %     2,376,864     23,037 3.88 %
    Mortgage-backed securities     5,977,058     48,425 3.24 %     5,828,225     47,904 3.29 %     5,079,091     33,237 2.62 %
    States and political subdivisions     1,668,454     14,042 3.37 %     1,686,994     14,290 3.39 %     1,737,037     14,220 3.27 %
    Other securities     785,107     12,547 6.39 %     788,571     12,583 6.38 %     793,196     10,127 5.11 %
    Total investments     10,686,248     96,865 3.63 %     10,512,725     96,308 3.66 %     9,986,188     80,621 3.23 %
    Loans:2                        
    Commercial     10,373,340     183,878 7.09 %     10,345,098     183,425 7.09 %     9,612,102     163,869 6.82 %
    Commercial and agriculture real estate     16,216,842     274,832 6.78 %     15,870,809     260,407 6.56 %     13,711,156     219,575 6.41 %
    Residential real estate loans     6,833,597     67,084 3.93 %     6,952,942     67,683 3.89 %     6,712,269     62,775 3.74 %
    Consumer     2,891,260     51,714 7.12 %     2,910,331     50,869 7.03 %     2,614,928     42,322 6.42 %
    Total loans     36,315,039     577,508 6.36 %     36,079,180     562,384 6.24 %     32,650,455     488,541 5.98 %
                             
    Total earning assets   $ 47,905,463   $ 686,069 5.73 %   $ 47,406,849   $ 670,003 5.66 %   $ 43,617,456   $ 582,356 5.34 %
                             
    Less: Allowance for credit losses on loans     (366,667 )         (331,043 )         (300,071 )    
                             
    Non-earning Assets:                        
    Cash and due from banks   $ 413,583         $ 430,256         $ 382,755      
    Other assets     5,394,032           5,341,022           4,960,383      
                             
    Total assets   $ 53,346,411         $ 52,847,084         $ 48,660,523      
                             
    Interest-Bearing Liabilities:                        
    Checking and NOW accounts   $ 7,551,264   $ 29,344 1.55 %   $ 8,189,454   $ 34,398 1.69 %   $ 7,515,439   $ 25,531 1.35 %
    Savings accounts     4,860,161     5,184 0.42 %     5,044,800     5,254 0.42 %     5,414,775     4,268 0.31 %
    Money market accounts     11,064,433     106,148 3.82 %     10,728,156     102,560 3.84 %     7,979,999     65,549 3.26 %
    Other time deposits     5,928,241     64,435 4.32 %     5,358,103     56,586 4.25 %     4,229,692     37,110 3.48 %
    Total interest-bearing core deposits     29,404,099     205,111 2.78 %     29,320,513     198,798 2.73 %     25,139,905     132,458 2.09 %
    Brokered deposits     1,829,218     24,616 5.35 %     1,244,237     17,008 5.50 %     1,183,228     14,970 5.02 %
    Total interest-bearing deposits     31,233,317     229,727 2.93 %     30,564,750     215,806 2.84 %     26,323,133     147,428 2.22 %
                             
    Federal funds purchased and interbank borrowings     14,549     292 7.98 %     148,835     1,986 5.37 %     62,921     910 5.74 %
    Securities sold under agreements to repurchase     239,524     612 1.02 %     249,939     639 1.03 %     302,305     710 0.93 %
    Federal Home Loan Bank advances     4,572,046     47,719 4.15 %     4,473,978     44,643 4.01 %     4,537,250     40,382 3.53 %
    Other borrowings     754,544     9,851 5.19 %     891,609     12,168 5.49 %     841,307     12,003 5.66 %
    Total borrowed funds     5,580,663     58,474 4.17 %     5,764,361     59,436 4.15 %     5,743,783     54,005 3.73 %
                             
    Total interest-bearing liabilities   $ 36,813,980   $ 288,201 3.11 %   $ 36,329,111   $ 275,242 3.05 %   $ 32,066,916   $ 201,433 2.49 %
                             
    Noninterest-Bearing Liabilities and Shareholders’ Equity                      
    Demand deposits   $ 9,371,698         $ 9,558,675         $ 10,338,267      
    Other liabilities     970,662           980,322           961,268      
    Shareholders’ equity     6,190,071           5,978,976           5,294,072      
                             
    Total liabilities and shareholders’ equity   $ 53,346,411         $ 52,847,084         $ 48,660,523      
                             
    Net interest rate spread       2.62 %       2.61 %       2.85 %
                             
    Net interest margin (GAAP)       3.27 %       3.28 %       3.44 %
                             
    Net interest margin (FTE)3       3.32 %       3.33 %       3.49 %
                             
    FTE adjustment     $ 6,144       $ 6,340       $ 5,837  
                             
    1 Interest income is reflected on a FTE basis.  
    2 Includes loans held-for-sale.  
    3 Represents a non-GAAP financial measure. Refer to the “Non-GAAP Measures” table for reconciliations to GAAP financial measures.  
     
                     
    Average Balance Sheet and Interest Rates (unaudited)
    ($ in thousands)
                     
                     
        Nine Months Ended   Nine Months Ended
        September 30, 2024   September 30, 2023
        Average Income1/ Yield/   Average Income1/ Yield/
    Earning Assets:   Balance Expense Rate   Balance Expense Rate
    Money market and other interest-earning investments   $ 825,743   $ 32,992 5.34 %   $ 736,225   $ 25,258 4.59 %
    Investments:                
    Treasury and government-sponsored agencies     2,275,607     66,648 3.91 %     2,266,177     58,923 3.47 %
    Mortgage-backed securities     5,721,725     135,217 3.15 %     5,268,509     102,618 2.60 %
    States and political subdivisions     1,678,504     42,308 3.36 %     1,771,155     43,306 3.26 %
    Other securities     781,385     37,303 6.37 %     785,474     28,726 4.88 %
    Total investments   $ 10,457,221   $ 281,476 3.59 %   $ 10,091,315   $ 233,573 3.09 %
    Loans:2                
    Commercial     10,087,322     534,566 7.07 %     9,644,541     475,210 6.57 %
    Commercial and agriculture real estate     15,488,010     765,325 6.59 %     13,180,509     598,337 6.05 %
    Residential real estate loans     6,826,809     197,770 3.86 %     6,626,551     181,592 3.65 %
    Consumer     2,815,837     146,177 6.93 %     2,612,519     120,428 6.16 %
    Total loans     35,217,978     1,643,838 6.22 %     32,064,120     1,375,567 5.72 %
                     
    Total earning assets   $ 46,500,942   $ 1,958,306 5.62 %   $ 42,891,660   $ 1,634,398 5.08 %
                     
    Less: Allowance for credit losses on loans     (337,168 )         (301,909 )    
                     
    Non-earning Assets:                
    Cash and due from banks   $ 402,213         $ 412,998      
    Other assets     5,232,807           4,917,592      
                     
    Total assets   $ 51,798,794         $ 47,920,341      
                     
    Interest-Bearing Liabilities:                
    Checking and NOW accounts   $ 7,627,029   $ 88,994 1.56 %   $ 7,793,561   $ 69,248 1.19 %
    Savings accounts     4,976,361     15,455 0.41 %     5,791,780     9,745 0.22 %
    Money market accounts     10,571,821     302,921 3.83 %     6,577,317     120,917 2.46 %
    Other time deposits     5,327,361     168,453 4.22 %     3,660,156     79,032 2.89 %
    Total interest-bearing core deposits     28,502,572     575,823 2.70 %     23,822,814     278,942 1.57 %
    Brokered deposits     1,375,231     55,149 5.36 %     879,886     32,053 4.87 %
    Total interest-bearing deposits     29,877,803     630,972 2.82 %     24,702,700     310,995 1.68 %
                     
    Federal funds purchased and interbank borrowings     77,262     3,239 5.60 %     306,480     11,404 4.97 %
    Securities sold under agreements to repurchase     261,818     2,168 1.11 %     351,362     2,389 0.91 %
    Federal Home Loan Bank advances     4,477,851     133,529 3.98 %     4,699,074     123,466 3.51 %
    Other borrowings     823,746     33,058 5.36 %     806,575     30,071 4.98 %
    Total borrowed funds     5,640,677     171,994 4.07 %     6,163,491     167,330 3.63 %
                     
    Total interest-bearing liabilities     35,518,480     802,966 3.02 %     30,866,191     478,325 2.07 %
                     
    Noninterest-Bearing Liabilities and Shareholders’ Equity              
    Demand deposits   $ 9,396,081         $ 10,864,375      
    Other liabilities     971,687           944,619      
    Shareholders’ equity     5,912,546           5,245,156      
                     
    Total liabilities and shareholders’ equity   $ 51,798,794         $ 47,920,341      
                     
    Net interest rate spread       2.60 %       3.01 %
                     
    Net interest margin (GAAP)       3.26 %       3.54 %
                     
    Net interest margin (FTE)3       3.31 %       3.59 %
                     
    FTE adjustment     $ 18,737       $ 17,328  
                     
    1 Interest income is reflected on a FTE.
    2 Includes loans held-for-sale.                
    3 Represents a non-GAAP financial measure. Refer to the “Non-GAAP Measures” table for reconciliations to GAAP financial measures.    
     
                     
    Asset Quality (EOP) (unaudited)
    ($ in thousands)
                     
      Three Months Ended   Nine Months Ended
      September 30, June 30, March 31, December 31, September 30,   September 30, September 30,
        2024     2024     2024     2023     2023       2024     2023  
    Allowance for credit losses:                
    Beginning allowance for credit losses on loans $ 366,335   $ 319,713   $ 307,610   $ 303,982   $ 300,555     $ 307,610   $ 303,671  
    Allowance established for acquired PCD loans   2,803     23,922     —     —     —       26,725     —  
    Provision for credit losses on loans   29,176     36,745     23,853     13,329     23,115       89,774     46,520  
    Gross charge-offs   (18,965 )   (17,041 )   (14,020 )   (13,202 )   (22,750 )     (50,026 )   (55,261 )
    Gross recoveries   1,491     2,996     2,270     3,501     3,062       6,757     9,052  
    NCOs   (17,474 )   (14,045 )   (11,750 )   (9,701 )   (19,688 )     (43,269 )   (46,209 )
    Ending allowance for credit losses on loans $ 380,840   $ 366,335   $ 319,713   $ 307,610   $ 303,982     $ 380,840   $ 303,982  
    Beginning allowance for credit losses on unfunded commitments $ 25,733   $ 26,264   $ 31,226   $ 32,960   $ 37,007     $ 31,226   $ 32,188  
    Provision (release) for credit losses on unfunded commitments   (679 )   (531 )   (4,962 )   (1,734 )   (4,047 )     (6,172 )   772  
    Ending allowance for credit losses on unfunded commitments $ 25,054   $ 25,733   $ 26,264   $ 31,226   $ 32,960     $ 25,054   $ 32,960  
    Allowance for credit losses $ 405,894   $ 392,068   $ 345,977   $ 338,836   $ 336,942     $ 405,894   $ 336,942  
    Provision for credit losses on loans $ 29,176   $ 36,745   $ 23,853   $ 13,329   $ 23,115     $ 89,774   $ 46,520  
    Provision (release) for credit losses on unfunded commitments   (679 )   (531 )   (4,962 )   (1,734 )   (4,047 )     (6,172 )   772  
    Provision for credit losses $ 28,497   $ 36,214   $ 18,891   $ 11,595   $ 19,068     $ 83,602   $ 47,292  
    NCOs / average loans1   0.19 %   0.16 %   0.14 %   0.12 %   0.24 %     0.16 %   0.19 %
    Average loans1 $ 36,299,544   $ 36,053,845   $ 33,242,739   $ 32,752,406   $ 32,639,812     $ 35,202,727   $ 32,057,989  
    EOP loans1   36,400,643     36,150,513     33,623,319     32,991,927     32,577,834       36,400,643     32,577,834  
    ACL on loans / EOP loans1   1.05 %   1.01 %   0.95 %   0.93 %   0.93 %     1.05 %   0.93 %
    ACL / EOP loans1   1.12 %   1.08 %   1.03 %   1.03 %   1.03 %     1.12 %   1.03 %
    Underperforming Assets:                
    Loans 90 days and over (still accruing) $ 1,177   $ 5,251   $ 2,172   $ 961   $ 1,192     $ 1,177   $ 1,192  
    Nonaccrual loans   443,597     340,181     328,645     274,821     261,346       443,597     261,346  
    Foreclosed assets   4,077     8,290     9,344     9,434     9,761       4,077     9,761  
    Total underperforming assets $ 448,851   $ 353,722   $ 340,161   $ 285,216   $ 272,299     $ 448,851   $ 272,299  
    Classified and Criticized Assets:                
    Nonaccrual loans $ 443,597   $ 340,181   $ 328,645   $ 274,821   $ 261,346     $ 443,597   $ 261,346  
    Substandard loans (still accruing)   1,074,243     841,087     626,157     599,358     563,427       1,074,243     563,427  
    Loans 90 days and over (still accruing)   1,177     5,251     2,172     961     1,192       1,177     1,192  
    Total classified loans – “problem loans”   1,519,017     1,186,519     956,974     875,140     825,965       1,519,017     825,965  
    Other classified assets   59,485     60,772     54,392     48,930     48,998       59,485     48,998  
    Special Mention   837,543     967,655     827,419     843,920     775,526       837,543     775,526  
    Total classified and criticized assets $ 2,416,045   $ 2,214,946   $ 1,838,785   $ 1,767,990   $ 1,650,489     $ 2,416,045   $ 1,650,489  
    Loans 30-89 days past due (still accruing) $ 91,750   $ 51,712   $ 53,112   $ 71,868   $ 56,772     $ 91,750   $ 56,772  
    Nonaccrual loans / EOP loans1   1.22 %   0.94 %   0.98 %   0.83 %   0.80 %     1.22 %   0.80 %
    ACL / nonaccrual loans   92 %   115 %   105 %   123 %   129 %     92 %   129 %
    Under-performing assets/EOP loans1   1.23 %   0.98 %   1.01 %   0.86 %   0.84 %     1.23 %   0.84 %
    Under-performing assets/EOP assets   0.84 %   0.67 %   0.69 %   0.58 %   0.56 %     0.84 %   0.56 %
    30+ day delinquencies/EOP loans1   0.26 %   0.16 %   0.16 %   0.22 %   0.18 %     0.26 %   0.18 %
                     
    1 Excludes loans held-for-sale.            
                     

                    

                     
    Non-GAAP Measures (unaudited)
    ($ and shares in thousands, except per share data)
                     
      Three Months Ended   Nine Months Ended
      September 30, June 30, March 31, December 31, September 30,   September 30, September 30,
        2024     2024     2024     2023     2023       2024     2023  
    Earnings Per Share:                
    Net income applicable to common shares $ 139,768   $ 117,196   $ 116,250   $ 128,446   $ 143,842     $ 373,214   $ 437,411  
    Adjustments:                
    Merger-related charges   6,860     19,440     2,908     5,529     6,257       29,208     23,187  
    Tax effect1   (1,528 )   (4,413 )   (710 )   (1,343 )   (1,042 )     (6,651 )   (4,491 )
    Merger-related charges, net   5,332     15,027     2,198     4,186     5,215       22,557     18,696  
    Separation expense   2,646     —     —     —     —       2,646     —  
    Tax effect1   (589 )   —     —     —     —       (589 )   —  
    Separation expense, net   2,057     —     —     —     —       2,057     —  
    Debt securities (gains) losses   76     (2 )   16     825     241       90     5,440  
    Tax effect1   (17 )   1     (4 )   (200 )   (40 )     (20 )   (1,175 )
    Debt securities (gains) losses, net   59     (1 )   12     625     201       70     4,265  
    CECL Day 1 non-PCD provision expense   —     15,312     —     —     —       15,312     —  
    Tax effect1   —     (3,476 )   —     —     —       (3,476 )   —  
    CECL Day 1 non-PCD provision expense, net   —     11,836     —     —     —       11,836     —  
    Distribution of excess pension assets   —     —     13,318     —     —   —   13,318     —  
    Tax effect1   —     —     (3,250 )   —     —   —   (3,250 )   —  
    Distribution excess pension assets, net   —     —     10,068     —     —       10,068     —  
    FDIC special assessment   —     —     2,994     19,052     —       2,994     —  
    Tax effect1   —     —     (731 )   (4,628 )   —       (731 )   —  
    FDIC special assessment, net   —     —     2,263     14,424     —       2,263     —  
    Gain on sale of Visa Class B restricted shares   —     —     —     (21,635 )   —       —     —  
    Tax effect1   —     —     —     5,255     —       —     —  
    Gain on sale of Visa Class B restricted shares, net   —     —     —     (16,380 )   —       —     —  
    Contract termination charge   —     —     —     4,413     —       —     —  
    Tax effect1   —     —     —     (1,072 )   —       —     —  
    Contract termination charge, net   —     —     —     3,341     —       —     —  
    Louisville expenses   —     —     —     —     —       —     3,361  
    Tax effect1   —     —     —     —     —       —     (392 )
    Louisville expenses, net   —     —     —     —     —       —     2,969  
    Property optimization charges   —     —     —     —     —       —     1,559  
    Tax effect1   —     —     —     —     —       —     (315 )
    Property optimization charges, net   —     —     —     —     —       —     1,244  
    Total adjustments, net   7,448     26,862     14,541     6,196     5,416       48,851     27,174  
    Net income applicable to common shares, adjusted $ 147,216   $ 144,058   $ 130,791   $ 134,642   $ 149,258     $ 422,065   $ 464,585  
    Weighted average diluted common shares outstanding   317,331     316,461     292,207     292,029     291,717       308,605     291,809  
    EPS, diluted $ 0.44   $ 0.37   $ 0.40   $ 0.44   $ 0.49     $ 1.21   $ 1.50  
    Adjusted EPS, diluted $ 0.46   $ 0.46   $ 0.45   $ 0.46   $ 0.51     $ 1.37   $ 1.59  
    NIM:                
    Net interest income $ 391,724   $ 388,421   $ 356,458   $ 364,408   $ 375,086     $ 1,136,603   $ 1,138,745  
    Add: FTE adjustment2   6,144     6,340     6,253     6,100     5,837       18,737     17,328  
    Net interest income (FTE) $ 397,868   $ 394,761   $ 362,711   $ 370,508   $ 380,923     $ 1,155,340   $ 1,156,073  
    Average earning assets $ 47,905,463   $ 47,406,849   $ 44,175,079   $ 43,701,283   $ 43,617,456     $ 46,500,942   $ 42,891,660  
    NIM (GAAP)   3.27 %   3.28 %   3.23 %   3.34 %   3.44 %     3.26 %   3.54 %
    NIM (FTE)   3.32 %   3.33 %   3.28 %   3.39 %   3.49 %     3.31 %   3.59 %
                     
    Refer to last page of Non-GAAP reconciliations for footnotes.            
                     
    Non-GAAP Measures (unaudited)
    ($ in thousands)
                     
      Three Months Ended   Nine Months Ended
      September 30, June 30, March 31, December 31, September 30,   September 30, September 30,
        2024     2024     2024     2023     2023       2024     2023  
    PPNR:                
    Net interest income (FTE)2 $ 397,868   $ 394,761   $ 362,711   $ 370,508   $ 380,923     $ 1,155,340   $ 1,156,073  
    Add: Noninterest income   94,138     87,271     77,522     100,094     80,938       258,931     233,248  
    Total revenue (FTE)   492,006     482,032     440,233     470,602     461,861       1,414,271     1,389,321  
    Less: Noninterest expense   (272,283 )   (282,999 )   (262,317 )   (284,235 )   (244,776 )     (817,599 )   (742,071 )
    PPNR $ 219,723   $ 199,033   $ 177,916   $ 186,367   $ 217,085     $ 596,672   $ 647,250  
    Adjustments:                
    Gain on sale of Visa Class B restricted shares $ —   $ —   $ —   $ (21,635 ) $ —     $ —   $ —  
    Debt securities (gains) losses   76     (2 )   16     825     241       90     5,440  
    Noninterest income adjustments   76     (2 )   16     (20,810 )   241       90     5,440  
    Adjusted noninterest income   94,214     87,269     77,538     79,284     81,179       259,021     238,688  
    Adjusted revenue $ 492,082   $ 482,030   $ 440,249   $ 449,792   $ 462,102     $ 1,414,361   $ 1,394,761  
    Adjustments:                
    Merger-related charges $ 6,860   $ 19,440   $ 2,908   $ 5,529   $ 6,257     $ 29,208   $ 23,187  
    Separation expense   2,646     —     —     —     —       2,646     —  
    Distribution of excess pension assets   —     —     13,318     —     —       13,318     —  
    FDIC Special Assessment   —     —     2,994     19,052     —       2,994     —  
    Contract termination charges   —     —     —     4,413     —       —     —  
    Louisville expenses   —     —     —     —     —       —     3,361  
    Property optimization charges   —     —     —     —     —       —     1,559  
    Noninterest expense adjustments   9,506     19,440     19,220     28,994     6,257       48,166     28,107  
    Adjusted total noninterest expense   (262,777 )   (263,559 )   (243,097 )   (255,241 )   (238,519 )     (769,433 )   (713,964 )
    Adjusted PPNR $ 229,305   $ 218,471   $ 197,152   $ 194,551   $ 223,583     $ 644,928   $ 680,797  
    Efficiency Ratio:                
    Noninterest expense $ 272,283   $ 282,999   $ 262,317   $ 284,235   $ 244,776     $ 817,599   $ 742,071  
    Less: Amortization of intangibles   (7,411 )   (7,425 )   (5,455 )   (5,869 )   (6,040 )     (20,291 )   (18,286 )
    Noninterest expense, excl. amortization of intangibles   264,872     275,574     256,862     278,366     238,736       797,308     723,785  
    Less: Amortization of tax credit investments   (3,277 )   (2,747 )   (2,749 )   (7,200 )   (2,644 )     (8,773 )   (8,167 )
    Less: Noninterest expense adjustments   (9,506 )   (19,440 )   (19,220 )   (28,994 )   (6,257 )     (48,166 )   (28,107 )
    Adjusted noninterest expense, excluding amortization $ 252,089   $ 253,387   $ 234,893   $ 242,172   $ 229,835     $ 740,369   $ 687,511  
    Total revenue (FTE)2 $ 492,006   $ 482,032   $ 440,233   $ 470,602   $ 461,861     $ 1,414,271   $ 1,389,321  
    Less: Debt securities (gains) losses   76     (2 )   16     825     241       90     5,440  
    Total revenue excl. debt securities (gains) losses   492,082     482,030     440,249     471,427     462,102       1,414,361     1,394,761  
    Less: Gain on sale of Visa Class B restricted shares   —     —     —     (21,635 )   —       —     —  
    Total adjusted revenue $ 492,082   $ 482,030   $ 440,249   $ 449,792   $ 462,102     $ 1,414,361   $ 1,394,761  
    Efficiency Ratio   53.8 %   57.2 %   58.3 %   59.0 %   51.7 %     56.4 %   51.9 %
    Adjusted Efficiency Ratio   51.2 %   52.6 %   53.4 %   53.8 %   49.7 %     52.3 %   49.3 %
                     
    Refer to last page of Non-GAAP reconciliations for footnotes.            
                     
    Non-GAAP Measures (unaudited)
    ($ in thousands)
                     
      Three Months Ended   Nine Months Ended
      September 30, June 30, March 31, December 31, September 30,   September 30, September 30,
        2024     2024     2024     2023     2023       2024     2023  
    ROAE and ROATCE:                
    Net income applicable to common shares $ 139,768   $ 117,196   $ 116,250   $ 128,446   $ 143,842     $ 373,214   $ 437,411  
    Amortization of intangibles   7,411     7,425     5,455     5,869     6,040       20,291     18,286  
    Tax effect1   (1,853 )   (1,856 )   (1,364 )   (1,467 )   (1,510 )     (5,073 )   (4,572 )
    Amortization of intangibles, net   5,558     5,569     4,091     4,402     4,530       15,218     13,714  
    Net income applicable to common shares, excluding intangibles amortization   145,326     122,765     120,341     132,848     148,372       388,432     451,125  
    Total adjustments, net (see pg.12)   7,448     26,862     14,541     6,196     5,416       48,851     27,174  
    Adjusted net income applicable to common shares, excluding intangibles amortization $ 152,774   $ 149,627   $ 134,882   $ 139,044   $ 153,788     $ 437,283   $ 478,299  
    Average shareholders’ equity $ 6,190,071   $ 5,978,976   $ 5,565,542   $ 5,281,487   $ 5,294,072     $ 5,912,546   $ 5,245,156  
    Less: Average preferred equity   (243,719 )   (243,719 )   (243,719 )   (243,719 )   (243,719 )     (243,719 )   (243,719 )
    Average shareholders’ common equity $ 5,946,352   $ 5,735,257   $ 5,321,823   $ 5,037,768   $ 5,050,353     $ 5,668,827   $ 5,001,437  
    Average goodwill and other intangible assets   (2,304,597 )   (2,245,405 )   (2,098,338 )   (2,103,935 )   (2,109,944 )     (2,216,437 )   (2,115,953 )
    Average tangible shareholder’s common equity $ 3,641,755   $ 3,489,852   $ 3,223,485   $ 2,933,833   $ 2,940,409     $ 3,452,390   $ 2,885,484  
    ROAE   9.4 %   8.2 %   8.7 %   10.2 %   11.4 %     8.8 %   11.7 %
    ROAE, adjusted   9.9 %   10.0 %   9.8 %   10.7 %   11.8 %     9.9 %   12.4 %
    ROATCE   16.0 %   14.1 %   14.9 %   18.1 %   20.2 %     15.0 %   20.8 %
    ROATCE, adjusted   16.8 %   17.2 %   16.7 %   19.0 %   20.9 %     16.9 %   22.1 %
                     
    Refer to last page of Non-GAAP reconciliations for footnotes.            
               
    Non-GAAP Measures (unaudited)
    ($ in thousands)
               
      As of
      September 30, June 30, March 31, December 31, September 30,
        2024     2024     2024     2023     2023  
    Tangible Common Equity:          
    Shareholders’ equity $ 6,367,298   $ 6,075,072   $ 5,595,408   $ 5,562,900   $ 5,239,537  
    Less: Preferred equity   (243,719 )   (243,719 )   (243,719 )   (243,719 )   (243,719 )
    Shareholders’ common equity $ 6,123,579   $ 5,831,353   $ 5,351,689   $ 5,319,181   $ 4,995,818  
    Less: Goodwill and other intangible assets   (2,305,084 )   (2,306,204 )   (2,095,511 )   (2,100,966 )   (2,106,835 )
    Tangible shareholders’ common equity $ 3,818,495   $ 3,525,149   $ 3,256,178   $ 3,218,215   $ 2,888,983  
               
    Total assets $ 53,602,293   $ 53,119,645   $ 49,534,918   $ 49,089,836   $ 49,059,448  
    Less: Goodwill and other intangible assets   (2,305,084 )   (2,306,204 )   (2,095,511 )   (2,100,966 )   (2,106,835 )
    Tangible assets $ 51,297,209   $ 50,813,441   $ 47,439,407   $ 46,988,870   $ 46,952,613  
               
    Risk-weighted assets3 $ 40,584,608   $ 40,627,117   $ 37,845,139   $ 37,407,347   $ 37,501,646  
               
    Tangible common equity to tangible assets   7.44 %   6.94 %   6.86 %   6.85 %   6.15 %
    Tangible common equity to risk-weighted assets3   9.41 %   8.68 %   8.60 %   8.60 %   7.70 %
    Tangible Common Book Value:          
    Common shares outstanding   318,955     318,969     293,330     292,655     292,586  
    Tangible common book value $ 11.97   $ 11.05   $ 11.10   $ 11.00   $ 9.87  
               
    1 Tax-effect calculations use management’s estimate of the full year FTE tax rates (federal + state).
    2 Calculated using the federal statutory tax rate in effect of 21% for all periods.
    3 September 30, 2024 figures are preliminary.

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

    TERRE HAUTE, Ind., Oct. 22, 2024 (GLOBE NEWSWIRE) — First Financial Corporation (NASDAQ:THFF) today announced results for the third quarter of 2024. During the quarter, the Corporation closed its acquisition of SimplyBank, Dayton, Tennessee. The quarter was impacted by purchase accounting adjustments and charges, which are reflected in the results.

    • Net income was $8.7 million compared to $16.3 million reported for the same period of 2023;
    • Diluted net income per common share of $0.74 compared to $1.37 for the same period of 2023;
    • Return on average assets was 0.64% compared to 1.35% for the three months ended September 30, 2023;
    • Credit loss provision was $9.4 million compared to provision of $1.2 million for the third quarter 2023; and
    • Pre-tax, pre-provision net income was $19.9 million compared to $20.5 million for the same period in 2023.1

    The Corporation further reported results for the nine months ended September 30, 2024:

    • Net income was $31.0 million compared to $48.3 million reported for the same period of 2023;
    • Diluted net income per common share of $2.63 compared to $4.02 for the same period of 2023;
    • Return on average assets was 0.82% compared to 1.33% for the nine months ended September 30, 2023;
    • Credit loss provision was $14.2 million compared to provision of $4.8 million for the nine months ended September 30, 2023; and
    • Pre-tax, pre-provision net income was $51.1 million compared to $63.1 million for the same period in 2023.1

    ________________
    1Non-GAAP financial measure that Management believes is useful for investors and management to understand pre-tax profitability before giving effect to credit loss expense and to provide additional perspective on the Corporation’s performance over time as well as comparison to the Corporation’s peers and evaluating the financial results of the Corporation – please refer to the Non GAAP reconciliations contained in this release.

    Average Total Loans

    Average total loans for the third quarter of 2024 were $3.71 billion versus $3.15 billion for the comparable period in 2023, an increase of $558 million or 17.74%. On a linked quarter basis, average loans increased $508 million or 15.89% from $3.20 billion as of June 30, 2024. Increases in average loans over both periods were mostly a result of the acquisition of SimplyBank as further detailed in Total Loans Outstanding section below.

    Total Loans Outstanding

    Total loans outstanding as of September 30, 2024, were $3.72 billion compared to $3.12 billion as of September 30, 2023, an increase of $598 million or 19.17%. On a linked quarter basis, total loans increased $511 million or 15.96% from $3.20 billion as of June 30, 2024. The main driver of the increase was $467 million in loans acquired in the SimplyBank acquisition. Organic growth was primarily driven by increases in Commercial Construction and Development, Commercial Real Estate, and Consumer Auto loans.

    Norman D. Lowery, President and Chief Executive Officer, commented, “During the quarter, we closed the acquisition of SimplyBank, which gives us access to very attractive markets in Southeast Tennessee and Northwest Georgia. We also experienced another sound quarter of loan and net interest income growth. During the quarter our net interest margin expanded, and we expect continued improvement in coming quarters.”

    Average Total Deposits

    Average total deposits for the quarter ended September 30, 2024, were $4.71 billion versus $4.00 billion as of September 30, 2023, an increase of $705 million or 17.63%. Increases in average deposits over both periods were mostly a result of the acquisition of SimplyBank as further detailed in Total Deposits section below.

    Total Deposits

    Total deposits were $4.72 billion as of September 30, 2024, compared to $4.04 billion as of September 30, 2023, a $676 million increase, or 16.74%. On a linked quarter basis, total deposits increased $585.2 million, or 14.16%. $622 million in deposits were acquired in the SimplyBank acquisition. Non-interest bearing deposits were $831.6 million, and time deposits were $791.1 million as of September 30, 2024, compared to $770.5 million and $471.6 million, respectively for the same period of 2023.

    Shareholders’ Equity

    Shareholders’ equity at September 30, 2024, was $566.0 million compared to $470.2 million on September 30, 2023. During the last twelve months, the Corporation has not repurchased any shares of its common stock. 518,860 shares remain available for repurchase under the current repurchase authorization. The Corporation paid a $0.45 per share quarterly dividend in July and declared a $0.45 quarterly dividend, which was paid on October 15, 2024.

    Book Value Per Share

    Book Value per share was $47.93 as of September 30, 2024, compared to $40.00 as of September 30, 2023, an increase of $7.93 per share, or 19.82%. Tangible Book Value per share was $37.84 as of September 30, 2024, compared to $32.10 as of September 30, 2023, an increase of $5.74 per share, or 17.88%.

    Tangible Common Equity to Tangible Asset Ratio

    The Corporation’s tangible common equity to tangible asset ratio was 8.33% at September 30, 2024, compared to 8.04% at September 30, 2023.

    Net Interest Income

    Net interest income for the third quarter of 2024 was $47.2 million, compared to $41.2 million reported for the same period of 2023, an increase of $6.0 million, or 14.63%.

    Net Interest Margin

    The net interest margin for the quarter ended September 30, 2024, was 3.78% compared to the 3.74% reported at September 30, 2023. On a linked quarterly basis, the net interest margin increased 21 basis points from 3.57% at June 30, 2024.

    Nonperforming Loans

    Nonperforming loans as of September 30, 2024, were $14.1 million versus $12.6 million as of September 30, 2023. The increase was due primarily to the SimplyBank acquisition. The ratio of nonperforming loans to total loans and leases was 0.38% as of September 30, 2024, versus 0.40% as of September 30, 2023.

    Credit Loss Provision

    The provision for credit losses for the three months ended September 30, 2024, was $9.4 million, compared to $1.2 million for the third quarter 2023. The Corporation recorded $5.5 million in provision for the acquisition of SimplyBank. The increase in provision was also related to one previously identified credit, reflecting further deterioration in collateral values during the quarter.

    Net Charge-Offs

    Third quarter net charge-offs were $4.6 million compared to $2.1 million in the same period of 2023.

    Allowance for Credit Losses

    The Corporation’s allowance for credit losses as of September 30, 2024, was $46.2 million compared to $39.0 million as of September 30, 2023. The allowance for credit losses as a percent of total loans was 1.24% as of September 30, 2024, compared to 1.25% as of September 30, 2023. On a linked quarter basis, the allowance for credit losses as a percent of total loans increased 4 basis points from 1.20% as of June 30, 2024. The Corporation recorded $8.5 million in allowance for the acquisition of SimplyBank, which included $3 million to record purchased credit deteriorated (“PCD”) reserves.

    Non-Interest Income

    Non-interest income for the three months ended September 30, 2024 and 2023 was $11.2 million and $11.6 million, respectively.

    Non-Interest Expense

    Non-interest expense for the three months ended September 30, 2024, was $38.6 million compared to $32.3 million in 2023. This includes $844 thousand of acquisition-related expenses during the quarter, as well as an overall increase in operating expenses as a result of the acquisition.

    Efficiency Ratio

    The Corporation’s efficiency ratio was 64.43% for the quarter ending September 30, 2024, versus 59.57% for the same period in 2023.

    Income Taxes

    Income tax expense for the three months ended September 30, 2024, was $1.7 million versus $3.0 million for the same period in 2023. The effective tax rate for 2024 was 16.44% compared to 17.37% for 2023.

    About First Financial Corporation

    First Financial Corporation (NASDAQ:THFF) is the holding company for First Financial Bank N.A., which is the fifth oldest national bank in the United States, operating 83 banking centers in Illinois, Indiana, Kentucky, Tennessee, and Georgia. Additional information is available at http://www.first-online.bank.

    Investor Contact:
    Rodger A. McHargue
    Chief Financial Officer
    P: 812-238-6334
    E: rmchargue@first-online.com

                                   
        Three Months Ended   Nine Months Ended
        September 30,    June 30,   September 30,    September 30,    September 30, 
        2024   2024   2023   2024   2023
    END OF PERIOD BALANCES                              
    Assets   $ 5,483,351   $ 4,891,068   $ 4,784,806   $ 5,483,351   $ 4,784,806
    Deposits   $ 4,717,489   $ 4,132,327   $ 4,040,995   $ 4,717,489   $ 4,040,995
    Loans, including net deferred loan costs   $ 3,715,235   $ 3,204,009   $ 3,117,626   $ 3,715,235   $ 3,117,626
    Allowance for Credit Losses   $ 46,169   $ 38,334   $ 39,034   $ 46,169   $ 39,034
    Total Equity   $ 565,951   $ 530,670   $ 470,168   $ 565,951   $ 470,168
    Tangible Common Equity (a)   $ 446,786   $ 438,569   $ 377,367   $ 446,786   $ 377,367
                                   
    AVERAGE BALANCES                              
    Total Assets   $ 5,483,572   $ 4,813,308   $ 4,814,251   $ 5,033,748   $ 4,828,165
    Earning Assets   $ 5,165,520   $ 4,556,839   $ 4,575,996   $ 4,762,940   $ 4,590,258
    Investments   $ 1,342,037   $ 1,279,278   $ 1,351,433   $ 1,309,879   $ 1,384,941
    Loans   $ 3,705,779   $ 3,197,695   $ 3,147,317   $ 3,361,207   $ 3,104,623
    Total Deposits   $ 4,705,614   $ 4,113,826   $ 4,000,302   $ 4,288,426   $ 4,124,520
    Interest-Bearing Deposits   $ 4,403,454   $ 3,413,752   $ 3,222,633   $ 3,714,432   $ 3,309,111
    Interest-Bearing Liabilities   $ 157,227   $ 152,303   $ 309,948   $ 176,985   $ 197,142
    Total Equity   $ 546,912   $ 517,890   $ 493,764   $ 529,174   $ 494,428
                                   
    INCOME STATEMENT DATA                              
    Net Interest Income   $ 47,170   $ 39,294   $ 41,150   $ 125,384   $ 127,672
    Net Interest Income Fully Tax Equivalent (b)   $ 48,630   $ 40,673   $ 42,539   $ 129,600   $ 131,774
    Provision for Credit Losses   $ 9,400   $ 2,966   $ 1,200   $ 14,166   $ 4,800
    Non-interest Income   $ 11,223   $ 9,905   $ 11,627   $ 30,559   $ 31,455
    Non-interest Expense   $ 38,564   $ 32,651   $ 32,265   $ 104,637   $ 95,932
    Net Income   $ 8,741   $ 11,369   $ 16,285   $ 31,034   $ 48,252
                                   
    PER SHARE DATA                              
    Basic and Diluted Net Income Per Common Share   $ 0.74   $ 0.96   $ 1.37   $ 2.63   $ 4.02
    Cash Dividends Declared Per Common Share   $ 0.45   $ 0.45   $ —   $ 1.35   $ 0.54
    Book Value Per Common Share   $ 47.93   $ 44.92   $ 40.00   $ 47.93   $ 40.00
    Tangible Book Value Per Common Share (c)   $ 36.22   $ 36.04   $ 33.69   $ 37.84   $ 32.10
    Basic Weighted Average Common Shares Outstanding     11,808     11,814     11,901     11,809     11,993

    ________________
    (a)  Tangible common equity is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible common equity by excluding goodwill and other intangible assets from shareholder’s equity.
    (b)  Net interest income fully tax equivalent is a non-GAAP financial measure derived from GAAP-based amounts. We calculate net interest income fully tax equivalent by adding back the tax equivalent factor of tax exempt income to net interest income. We calculate the tax equivalent factor of tax exempt income by dividing tax exempt income by the net of tax rate of 75%.
    (c)  Tangible book value per common share is a non-GAAP financial measure derived from GAAP-based amounts. We calculate the factor by dividing average tangible common equity by average shares outstanding. We calculate average tangible common equity by excluding average intangible assets from average shareholder’s equity.

                           
    Key Ratios   Three Months Ended   Nine Months Ended  
        September 30,   June 30,   September 30,   September 30,   September 30,  
        2024   2024   2023   2024   2023  
    Return on average assets   0.64 % 0.94 % 1.35 % 0.82 % 1.33 %
    Return on average common shareholder’s equity   6.39 % 8.78 % 13.19 % 7.80 % 12.98 %
    Efficiency ratio   64.43 % 64.56 % 59.57 % 65.33 % 58.77 %
    Average equity to average assets   9.97 % 10.76 % 10.26 % 10.51 % 10.24 %
    Net interest margin (a)   3.78 % 3.57 % 3.74 % 3.63 % 3.83 %
    Net charge-offs to average loans and leases   0.49 % 0.59 % 0.24 % 0.43 % 0.24 %
    Credit loss reserve to loans and leases   1.24 % 1.20 % 1.25 % 1.24 % 1.25 %
    Credit loss reserve to nonperforming loans   326.65 % 240.85 % 310.19 % 326.65 % 310.19 %
    Nonperforming loans to loans and leases   0.38 % 0.50 % 0.40 % 0.38 % 0.40 %
    Tier 1 leverage   10.25 % 12.14 % 11.72 % 10.25 % 11.72 %
    Risk-based capital – Tier 1   13.63 % 14.82 % 14.61 % 13.63 % 14.61 %

    ________________
    (a)  Net interest margin is calculated on a tax equivalent basis.

                                   
                                   
    Asset Quality   Three Months Ended   Nine Months Ended
        September 30,   June 30,   September 30,   September 30,   September 30,
        2024   2024   2023   2024   2023
    Accruing loans and leases past due 30-89 days   $ 16,391   $ 14,913   $ 15,961   $ 16,391   $ 15,961
    Accruing loans and leases past due 90 days or more   $ 1,517   $ 1,353   $ 1,370   $ 1,517   $ 1,370
    Nonaccrual loans and leases   $ 12,617   $ 14,563   $ 11,214   $ 12,617   $ 11,214
    Other real estate owned   $ 169   $ 170   $ 63   $ 169   $ 63
    Nonperforming loans and other real estate owned   $ 14,303   $ 16,086   $ 12,647   $ 14,303   $ 12,647
    Total nonperforming assets   $ 17,179   $ 18,978   $ 15,671   $ 17,179   $ 15,671
    Gross charge-offs   $ 6,936   $ 6,091   $ 3,601   $ 16,219   $ 11,520
    Recoveries   $ 2,365   $ 1,414   $ 1,528   $ 5,449   $ 5,975
    Net charge-offs/(recoveries)   $ 4,571   $ 4,677   $ 2,073   $ 10,770   $ 5,545
                     
    Non-GAAP Reconciliations   Three Months Ended September 30,
        2024   2023
    ($in thousands, except EPS)                
    Income before Income Taxes   $ 10,429     $ 19,312  
    Provision for credit losses     9,400       1,200  
    Provision for unfunded commitments     100       —  
    Pre-tax, Pre-provision Income   $ 19,929     $ 20,512  
                 
    Non-GAAP Reconciliations   Nine Months Ended September 30,
        2024    2023 
    ($ in thousands, except EPS)            
    Income before Income Taxes   $ 37,140     $ 58,395  
    Provision for credit losses     14,166       4,800  
    Provision for unfunded commitments     (200 )     (100 )
    Pre-tax, Pre-provision Income   $ 51,106     $ 63,095  
     
    CONSOLIDATED BALANCE SHEETS
    (Dollar amounts in thousands, except per share data)
           
        September 30,   December 31, 
        2024   2023
        (unaudited)
    ASSETS            
    Cash and due from banks   $ 77,312     $ 76,759  
    Federal funds sold     1,356       282  
    Securities available-for-sale     1,271,992       1,259,137  
    Loans:            
    Commercial     2,112,738       1,817,526  
    Residential     924,276       695,788  
    Consumer     671,353       646,758  
          3,708,367       3,160,072  
    (Less) plus:            
    Net deferred loan costs     6,868       7,749  
    Allowance for credit losses     (46,169 )     (39,767 )
          3,669,066       3,128,054  
    Restricted stock     15,366       15,364  
    Accrued interest receivable     25,386       24,877  
    Premises and equipment, net     82,213       67,286  
    Bank-owned life insurance     128,242       114,122  
    Goodwill     93,363       86,985  
    Other intangible assets     25,802       5,586  
    Other real estate owned     169       107  
    Other assets     93,084       72,587  
    TOTAL ASSETS   $ 5,483,351     $ 4,851,146  
                 
    LIABILITIES AND SHAREHOLDERS’ EQUITY            
    Deposits:            
    Non-interest-bearing   $ 831,575     $ 750,335  
    Interest-bearing:            
    Certificates of deposit exceeding the FDIC insurance limits     159,618       92,921  
    Other interest-bearing deposits     3,726,296       3,246,812  
          4,717,489       4,090,068  
    Short-term borrowings     84,363       67,221  
    FHLB advances     30,456       108,577  
    Other liabilities     85,092       57,304  
    TOTAL LIABILITIES     4,917,400       4,323,170  
                 
    Shareholders’ equity            
    Common stock, $.125 stated value per share;            
    Authorized shares-40,000,000            
    Issued shares-16,165,023 in 2024 and 16,137,220 in 2023            
    Outstanding shares-11,808,304 in 2024 and 11,795,024 in 2023     2,016       2,014  
    Additional paid-in capital     144,785       144,152  
    Retained earnings     677,155       663,726  
    Accumulated other comprehensive income/(loss)     (102,800 )     (127,087 )
    Less: Treasury shares at cost-4,356,719 in 2024 and 4,342,196 in 2023     (155,205 )     (154,829 )
    TOTAL SHAREHOLDERS’ EQUITY     565,951       527,976  
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   $ 5,483,351     $ 4,851,146  
     
    CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
    (Dollar amounts in thousands, except per share data)
                 
        Three Months Ended   Nine Months Ended
        September 30,   September 30,
        2024   2023   2024   2023
            (unaudited)
    INTEREST INCOME:                        
    Loans, including related fees   $ 61,367   $ 49,146     $ 162,878   $ 140,220  
    Securities:                        
    Taxable     6,319     6,164       18,083     18,631  
    Tax-exempt     2,715     2,661       7,919     7,937  
    Other     1,294     752       2,989     2,864  
    TOTAL INTEREST INCOME     71,695     58,723       191,869     169,652  
    INTEREST EXPENSE:                        
    Deposits     22,197     13,627       59,622     35,111  
    Short-term borrowings     993     1,923       2,928     4,025  
    Other borrowings     1,335     2,023       3,935     2,844  
    TOTAL INTEREST EXPENSE     24,525     17,573       66,485     41,980  
    NET INTEREST INCOME     47,170     41,150       125,384     127,672  
    Provision for credit losses     9,400     1,200       14,166     4,800  
    NET INTEREST INCOME AFTER PROVISION                        
    FOR LOAN LOSSES     37,770     39,950       111,218     122,872  
    NON-INTEREST INCOME:                        
    Trust and financial services     1,251     1,140       3,903     3,642  
    Service charges and fees on deposit accounts     8,139     7,099       21,576     20,971  
    Other service charges and fees     191     213       700     613  
    Securities gains (losses), net     103     —       104     —  
    Interchange income     177     —       490     47  
    Loan servicing fees     274     447       957     997  
    Gain on sales of mortgage loans     411     321       886     811  
    Other     677     2,407       1,943     4,374  
    TOTAL NON-INTEREST INCOME     11,223     11,627       30,559     31,455  
    NON-INTEREST EXPENSE:                        
    Salaries and employee benefits     18,521     17,159       53,231     51,263  
    Occupancy expense     2,556     2,389       7,116     7,120  
    Equipment expense     4,280     3,580       12,736     10,404  
    FDIC Expense     558     613       1,721     1,977  
    Other     12,649     8,524       29,833     25,168  
    TOTAL NON-INTEREST EXPENSE     38,564     32,265       104,637     95,932  
    INCOME BEFORE INCOME TAXES     10,429     19,312       37,140     58,395  
    Provision for income taxes     1,688     3,027       6,106     10,143  
    NET INCOME     8,741     16,285       31,034     48,252  
    OTHER COMPREHENSIVE INCOME (LOSS)                        
    Change in unrealized gains/(losses) on securities, net of reclassifications and taxes     31,628     (34,934 )     24,067     (36,504 )
    Change in funded status of post retirement benefits, net of taxes     73     146       220     440  
    COMPREHENSIVE INCOME (LOSS)   $ 40,442   $ (18,503 )   $ 55,321   $ 12,188  
    PER SHARE DATA                        
    Basic and Diluted Earnings per Share   $ 0.74   $ 1.37     $ 2.63   $ 4.02  
    Weighted average number of shares outstanding (in thousands)     11,808     11,901       11,809     11,993  

    The MIL Network –