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MIL-OSI: Seacoast Reports Third Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

Strong Growth in Loans and Deposits

Annualized 20% Increase in Tangible Book Value Per Share

Well-Positioned Balance Sheet with Strong Capital and Liquidity

STUART, Fla., Oct. 24, 2024 (GLOBE NEWSWIRE) — Seacoast Banking Corporation of Florida (“Seacoast” or the “Company”) (NASDAQ: SBCF) today reported net income in the third quarter of 2024 of $30.7 million, or $0.36 per diluted share, compared to $30.2 million, or $0.36 per diluted share in the second quarter of 2024 and $31.4 million, or $0.37 per diluted share in the third quarter of 2023.

Pre-tax pre-provision earnings¹ were $46.1 million in the third quarter of 2024, an increase of 3% compared to the second quarter of 2024 and an increase of 6% compared to the third quarter of 2023. Adjusted pre-tax pre-provision earnings¹ were $46.4 million in the third quarter of 2024, an increase of 4% compared to the second quarter of 2024 and a decrease of 2% compared to the third quarter of 2023.

For the third quarter of 2024, return on average tangible assets was 0.99% and return on average tangible shareholders’ equity was 10.31%, compared to 1.00% and 10.75%, respectively, in the prior quarter, and 1.04% and 11.90%, respectively, in the prior year quarter.

Charles M. Shaffer, Chairman and CEO of Seacoast, stated, “I would like to thank all of the Seacoast associates for their unwavering dedication during the challenging impact of back-to-back significant hurricanes. Your commitment to our customers and the well-being of our communities is commendable. I am very proud to serve alongside such an amazing and dedicated group of bankers. Furthermore, our hearts and sympathy go out to all those in our communities who lost loved ones and experienced catastrophic outcomes as a result of the storms.”

Shaffer added, “Turning to third quarter results, this marks the turn in organic growth we had anticipated, with nearly 7% annualized loan growth and 7% annualized customer deposit growth, clearly showcasing the results of our previous investments in banking teams across the state. Additionally, this quarter demonstrated continued growth in net interest income, noninterest income and, when removing accretion on acquired loans, expansion in the net interest margin. Our competitive transformation is taking shape as we build Seacoast into Florida’s leading regional bank. We expect to continue to see positive results from recent talent acquisitions, which will drive further organic growth in the coming periods.”

Shaffer concluded, “We remain committed to a disciplined approach to credit, and our balance sheet is one of the strongest in the industry, with a Tier 1 capital ratio of 14.8%² as of September 30, 2024. The ratio of tangible common equity to tangible assets has increased to a strong 9.64%. Our liquidity position is also robust, with a loan-to-deposit ratio of 83%, providing us with balance sheet flexibility as we continue to work towards stronger earnings in the coming periods.”

Update on Hurricane Recovery

In late September and early October 2024, communities across our corporate footprint were impacted by Hurricanes Helene and Milton. We maintained uninterrupted digital and telephone access for our customers and, having experienced minimal impacts to our branch properties, we fully reopened to serve our communities shortly after each storm passed. Recovery efforts in many areas continue and the full impacts on people and businesses in the most hard-hit regions are not fully known. We do not expect a significant impact from Hurricane Helene, but an additional provision for credit losses may be warranted in the fourth quarter of 2024 for Hurricane Milton, in a range between approximately $5 million and $10 million.

Financial Results

Income Statement

Net income in the third quarter of 2024 was $30.7 million, or $0.36 per diluted share, compared to $30.2 million, or $0.36 per diluted share in the prior quarter and $31.4 million, or $0.37 per diluted share in the prior year quarter. For the nine months ended September 30, 2024, net income was $86.9 million, or $1.02 per diluted share, compared to $74.5 million, or $0.89 per diluted share, for the nine months ended September 30, 2023. Adjusted net income¹ for the third quarter of 2024 was $30.5 million, or $0.36 per diluted share, compared to $30.3 million, or $0.36 per diluted share, for the prior quarter, and $34.2 million, or $0.40 per diluted share, for the prior year quarter. For the nine months ended September 30, 2024, adjusted net income¹ was $91.9 million, or $1.08 per diluted share, compared to $101.9 million, or $1.21 per diluted share, for the nine months ended September 30, 2023.
Net revenues were $130.3 million in the third quarter of 2024, an increase of $3.7 million, or 3%, compared to the prior quarter, and a decrease of $6.8 million, or 5%, compared to the prior year quarter. For the nine months ended September 30, 2024, net revenues were $382.5 million, a decrease of $56.7 million, or 13%, compared to the nine months ended September 30, 2023. Adjusted net revenues¹ were $130.5 million in the third quarter of 2024, an increase of $3.6 million, or 3%, compared to the prior quarter, and a decrease of $7.2 million, or 5%, compared to the prior year quarter. For the nine months ended September 30, 2024, adjusted net revenues¹ were $382.9 million, a decrease of $55.2 million, or 13%, compared to the nine months ended September 30, 2023.
Pre-tax pre-provision earnings¹ were $46.1 million in the third quarter of 2024, an increase of $1.5 million, or 3%, compared to the second quarter of 2024 and an increase of $2.7 million, or 6%, compared to the third quarter of 2023. For the nine months ended September 30, 2024, pre-tax pre-provision earnings¹ were $126.3 million, a decrease of $5.5 million, or 4%, compared to the nine months ended September 30, 2023. Adjusted pre-tax pre-provision earnings¹ were $46.4 million in the third quarter of 2024, an increase of $1.9 million, or 4%, compared to the second quarter of 2024 and a decrease of $1.0 million, or 2%, compared to the third quarter of 2023. For the nine months ended September 30, 2024, adjusted pre-tax pre-provision earnings¹ were $133.4 million, a decrease of $35.5 million, or 21%, compared to the nine months ended September 30, 2023.
Net interest income totaled $106.7 million in the third quarter of 2024, an increase of $2.2 million, or 2%, compared to the prior quarter, and a decrease of $12.6 million, or 11%, compared to the prior year quarter. For the nine months ended September 30, 2024, net interest income was $316.2 million, a decrease of $61.3 million, or 16%, compared to the nine months ended September 30, 2023. In the loan portfolio, higher interest income from new loan production was partially offset by lower accretion of purchase discount on acquired loans. Included in loan interest income was accretion on acquired loans of $9.2 million in the third quarter of 2024, $10.2 million in the second quarter of 2024, and $14.8 million in the third quarter of 2023. For the nine months ended September 30, 2024, accretion on acquired loans totaled $30.0 million, compared to $45.4 million for the nine months ended September 30, 2023. Recent purchases in the securities portfolio contributed to higher securities yields. Higher interest expense on deposits reflects the impact of higher rates, with cuts to the federal funds rate late in the quarter not yet fully impacting the third quarter 2024 results.
Net interest margin decreased one basis point to 3.17% in the third quarter of 2024 compared to 3.18% in the second quarter of 2024. Excluding the effects of accretion on acquired loans, net interest margin increased three basis points to 2.90% in the third quarter of 2024 compared to 2.87% in the second quarter of 2024. Loan yields were 5.94%, an increase of one basis point from the prior quarter. Securities yields increased six basis points to 3.75%, compared to 3.69% in the prior quarter. The cost of deposits increased three basis points from 2.31% in the prior quarter, to 2.34% in the third quarter of 2024. We expect the cost of deposits to decline in the fourth quarter of 2024.
Noninterest income totaled $23.7 million in the third quarter of 2024, an increase of $1.5 million, or 7%, compared to the prior quarter, and an increase of $5.9 million, or 33%, compared to the prior year quarter. For the nine months ended September 30, 2024, noninterest income totaled $66.4 million, an increase of $4.5 million, or 7%, compared to the nine months ended September 30, 2023. Results in the third quarter of 2024 included:
- Service charges on deposits totaled $5.4 million, an increase of $0.1 million, or 1%, from the prior quarter and an increase of $0.8 million, or 16%, from the prior year quarter. Our investments in talent and significant market expansion across the state have resulted in continued growth in treasury management services to commercial customers.
- Wealth management income totaled $3.8 million, an increase of $0.1 million, or 2%, from the prior quarter and an increase of $0.7 million, or 22%, from the prior year quarter. The wealth management division continues to grow and add new relationships, with assets under management increasing 26% year over year to $2.0 billion at September 30, 2024.
- Insurance agency income totaled $1.4 million, an increase of 3% from the prior quarter and an increase of 18% from the prior year quarter, reflecting continued growth and expansion of services.
- SBA gains totaled $0.4 million, a decrease of $0.3 million, or 44%, from the prior quarter and a decrease of $0.2 million, or 36%, from the prior year quarter, due to lower saleable originations.
- Other income totaled $7.5 million, an increase of $1.5 million, or 26%, from the prior quarter and an increase of $3.2 million, or 74% from the prior year quarter. Increases in the third quarter of 2024 include gains on SBIC investments and higher swap-related fees.
The provision for credit losses was $6.3 million in the third quarter of 2024, compared to $4.9 million in the second quarter of 2024 and $2.7 million in the third quarter of 2023.
Noninterest expense was $84.8 million in the third quarter of 2024, an increase of $2.3 million, or 3%, compared to the prior quarter, and a decrease of $9.1 million, or 10%, compared to the prior year quarter. Noninterest expense for the nine months ended September 30, 2024, totaled $257.7 million, a decrease of $51.5 million, or 17%, compared to the nine months ended September 30, 2023. With significant cost-saving initiatives now complete, Seacoast has prudently managed expenses while strategically investing to support continued growth. Results in the third quarter of 2024 included:
- Salaries and wages totaled $40.7 million, an increase of $1.8 million, or 5%, compared to the prior quarter and a decrease $5.7 million, or 12%, from the prior year quarter. The third quarter of 2024 reflects continued additions to the banking team as the Company focuses on organic growth.
- Outsourced data processing costs totaled $8.0 million, a decrease of $0.2 million, or 3%, compared to the prior quarter and a decrease of $0.7 million, or 8%, from the prior year quarter, reflecting the benefit of lower negotiated rates with key service providers.
- Marketing expenses totaled $2.7 million, a decrease of $0.5 million, or 16%, compared to the prior quarter and an increase of $0.9 million, or 45%, from the prior year quarter, primarily associated with the timing of various campaigns. We will continue to invest in marketing and branding supporting customer growth.
- Legal and professional fees totaled $2.7 million, an increase of $0.7 million, or 37%, compared to the prior quarter and an increase of $29 thousand, or 1%, from the prior year quarter. Professional services engaged in connection with contract negotiations contributed to the increase in the third quarter of 2024.
Seacoast recorded $8.6 million of income tax expense in the third quarter of 2024, compared to $8.9 million in the second quarter of 2024, and $9.1 million in the third quarter of 2023. Tax benefits related to stock-based compensation totaled $0.1 million in the third quarter of 2024, compared to tax expense of $0.2 million in the second quarter of 2024 and a nominal tax benefit in the third quarter of 2023.
The efficiency ratio was 59.84% in the third quarter of 2024, compared to 60.21% in the second quarter of 2024 and 62.60% in the prior year quarter. The adjusted efficiency ratio¹ was 59.84% in the third quarter of 2024, compared to 60.21% in the second quarter of 2024 and 60.19% in the prior year quarter. The Company continues to remain keenly focused on disciplined expense control, while making investments for growth.

Balance Sheet

At September 30, 2024, the Company had total assets of $15.2 billion and total shareholders’ equity of $2.2 billion. Book value per share was $25.68 as of September 30, 2024, compared to $24.98 as of June 30, 2024, and $24.06 as of September 30, 2023. Tangible book value per share increased 20% annualized from the prior quarter to $16.20 as of September 30, 2024, compared to $15.41 as of June 30, 2024, and $14.26 as of September 30, 2023.
Debt securities totaled $2.8 billion as of September 30, 2024, an increase of $180.8 million compared to June 30, 2024. Debt securities include approximately $2.2 billion in securities classified as available for sale and recorded at fair value.
- During the third quarter of 2024, net unrealized losses associated with available for sale securities declined by $59.6 million due to changes in the interest rate environment. This contributed $0.53 to the increase in tangible book value per share during the quarter. The unrealized loss on available for sale securities is fully reflected in the value presented on the balance sheet.
- The portfolio also includes $646.1 million in securities classified as held to maturity with a fair value of $538.5 million. Held-to-maturity securities consist solely of mortgage-backed securities and collateralized mortgage obligations guaranteed by U.S. government agencies, each of which is expected to recover any price depreciation over its holding period as the debt securities move to maturity. The Company has significant liquidity and available borrowing capacity and has the intent and ability to hold these investments to maturity.
- In October, we took advantage of favorable market conditions and repositioned a portion of the available for sale securities portfolio. We sold securities with an average book yield of 2.8%, resulting in a pre-tax loss of approximately $8.0 million impacting fourth quarter results. The proceeds, approximately $113 million, were reinvested in agency mortgage-backed securities with an average book yield of 5.4%, for an estimated earnback of less than three years.
Loans increased $166.8 million, or 6.6% annualized, totaling $10.2 billion as of September 30, 2024. Loan originations increased 22% to $657.9 million in the third quarter of 2024, compared to $538.0 million in the second quarter of 2024. The Company continues to exercise a disciplined approach to lending and is benefiting from the investments made in recent years to attract talent from large regional banks across its markets. This talent is onboarding significant new relationships, resulting in increased loan production.
Loan pipelines (loans in underwriting and approval or approved and not yet closed) totaled $831.1 million as of September 30, 2024, compared to $834.4 million at June 30, 2024 and $353.0 million at September 30, 2023.
- Commercial pipelines were $744.5 million as of September 30, 2024, compared to $743.8 million at June 30, 2024, and $259.4 million at September 30, 2023.
- SBA pipelines were $28.9 million as of September 30, 2024, compared to $29.3 million at June 30, 2024, and $41.4 million at September 30, 2023.
- Residential saleable pipelines were $11.2 million as of September 30, 2024, compared to $12.1 million at June 30, 2024, and $6.8 million at September 30, 2023. Retained residential pipelines were $21.9 million as of September 30, 2024, compared to $24.7 million at June 30, 2024, and $20.9 million at September 30, 2023.
- Consumer pipelines were $24.4 million as of September 30, 2024, compared to $24.5 million at both June 30, 2024 and September 30, 2023.
Total deposits were $12.2 billion as of September 30, 2024, an increase of $127.5 million, or 4.2% annualized, when compared to June 30, 2024. Excluding brokered balances, total deposits increased $195.9 million, or 6.6% annualized, in the third quarter of 2024.
- Commercial deposits increased $133.0 million, or 2%, compared to the prior quarter. Of note, commercial noninterest bearing deposits increased $67.2 million, or 3%, from the prior quarter, the result of onboarding new clients.
- Total noninterest bearing deposits increased $45.5 million, or 5.3% annualized, from the prior quarter.
- At September 30, 2024, customer transaction account balances represented 49% of total deposits.
- The Company benefits from a granular deposit franchise, with the top ten depositors representing approximately 3% of total deposits.
- Average deposits per banking center were $159 million at September 30, 2024, compared to $157 million at June 30, 2024.
- Uninsured deposits represented only 36% of overall deposit accounts as of September 30, 2024. This includes public funds under the Florida Qualified Public Depository program, which provides loss protection to depositors beyond FDIC insurance limits. Excluding such balances, the uninsured and uncollateralized deposits were 31% of total deposits. The Company has liquidity sources including cash and lines of credit with the Federal Reserve and Federal Home Loan Bank that represent 145% of uninsured deposits, and 167% of uninsured and uncollateralized deposits.
- Consumer deposits represent 43% of overall deposit funding with an average consumer customer balance of $26 thousand. Commercial deposits represent 57% of overall deposit funding with an average business customer balance of $117 thousand.
Federal Home Loan Bank advances totaled $245.0 million at September 30, 2024 with a weighted average interest rate of 4.19%.

Asset Quality

Nonperforming loans were $80.9 million at September 30, 2024, compared to $59.9 million at June 30, 2024, and $41.5 million at September 30, 2023. New nonperforming loans in the third quarter of 2024 have collateral values well in excess of balances outstanding, and therefore, no loss is expected. Nonperforming loans to total loans outstanding were 0.79% at September 30, 2024, 0.60% at June 30, 2024, and 0.41% at September 30, 2023.
Accruing past due loans were $50.7 million, or 0.50% of total loans, at September 30, 2024, compared to $39.6 million, or 0.39% of total loans, at June 30, 2024, and $35.5 million, or 0.33% of total loans, at September 30, 2023. A limited number of larger-balance residential mortgage loans, which returned to current status in October, comprise the majority of the increase from the prior quarter.
Nonperforming assets to total assets were 0.58% at September 30, 2024, compared to 0.45% at June 30, 2024, and 0.33% at September 30, 2023.
The ratio of allowance for credit losses to total loans was 1.38% at September 30, 2024, 1.41% at June 30, 2024, and 1.49% at September 30, 2023.
Net charge-offs were $7.4 million in the third quarter of 2024, compared to $9.9 million in the second quarter of 2024 and $12.7 million in the third quarter of 2023. Charge-offs during the quarter primarily reflect specifically identified reserves previously established in the allowance for credit losses.
Portfolio diversification, in terms of asset mix, industry, and loan type, has been a critical element of the Company’s lending strategy. Exposure across industries and collateral types is broadly distributed. Seacoast’s average loan size is $360 thousand, and the average commercial loan size is $789 thousand, reflecting an ability to maintain granularity within the overall loan portfolio.
Construction and land development and commercial real estate loans remain well below regulatory guidance at 36% and 241% of total bank-level risk-based capital², respectively, compared to 36% and 235%, respectively, at June 30, 2024. On a consolidated basis, construction and land development and commercial real estate loans represent 34% and 227%, respectively, of total consolidated risk-based capital².

Capital and Liquidity

The Company continues to operate with a fortress balance sheet with a Tier 1 capital ratio at September 30, 2024 of 14.8%² compared to 14.8% at June 30, 2024, and 14.0% at September 30, 2023. The Total capital ratio was 16.2%², the Common Equity Tier 1 capital ratio was 14.1%², and the Tier 1 leverage ratio was 11.2%² at September 30, 2024. The Company is considered “well capitalized” based on applicable U.S. regulatory capital ratio requirements.
Cash and cash equivalents at September 30, 2024 totaled $637.1 million.
The Company’s loan to deposit ratio was 83.4% at September 30, 2024, which should provide liquidity and flexibility moving forward.
Tangible common equity to tangible assets was 9.64% at September 30, 2024, compared to 9.30% at June 30, 2024, and 8.68% at September 30, 2023. If all held-to-maturity securities were adjusted to fair value, the tangible common equity ratio would have been 9.11% at September 30, 2024.
At September 30, 2024, in addition to $637.1 million in cash, the Company had $5.6 billion in available borrowing capacity, including $4.1 billion in available collateralized lines of credit, $1.2 billion of unpledged debt securities available as collateral for potential additional borrowings, and available unsecured lines of credit of $0.3 billion. These liquidity sources as of September 30, 2024, represented 167% of uninsured and uncollateralized deposits.

¹_{Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and for a reconciliation to GAAP.}²_Estimated.

FINANCIAL HIGHLIGHTS
(Amounts in thousands except per share data)	(Unaudited)
	Quarterly Trends

	3Q’24			2Q’24			1Q’24			4Q’23			3Q’23
Selected balance sheet data:
Gross loans	$	10,205,281		$	10,038,508		$	9,978,052		$	10,062,940		$	10,011,186
Total deposits		12,243,585			12,116,118			12,015,840			11,776,935			12,107,834
Total assets		15,168,371			14,952,613			14,830,015			14,580,249			14,823,007

Performance measures:
Net income	$	30,651		$	30,244		$	26,006		$	29,543		$	31,414
Net interest margin		3.17	%		3.18	%		3.24	%		3.36	%		3.57	%
Pre-tax pre-provision earnings¹	$	46,086		$	44,555		$	35,674		$	42,006		$	43,383
Average diluted shares outstanding		85,069			84,816			85,270			85,336			85,666
Diluted earnings per share (EPS)		0.36			0.36			0.31			0.35			0.37
Return on (annualized):
Average assets (ROA)		0.81	%		0.82	%		0.71	%		0.80	%		0.84	%
Average tangible assets (ROTA)²		0.99			1.00			0.89			0.99			1.04
Average tangible common equity (ROTCE)²		10.31			10.75			9.55			11.22			11.90
Tangible common equity to tangible assets²		9.64			9.30			9.25			9.31			8.68
Tangible book value per share²	$	16.20		$	15.41		$	15.26		$	15.08		$	14.26
Efficiency ratio		59.84	%		60.21	%		66.78	%		60.32	%		62.60	%

Adjusted operating measures¹:
Adjusted net income⁴	$	30,511		$	30,277		$	31,132		$	31,363		$	34,170
Adjusted pre-tax pre-provision earnings⁴		46,390			44,490			42,513			45,016			47,349
Adjusted diluted EPS⁴		0.36			0.36			0.37			0.37			0.40
Adjusted ROTA²		0.98	%		1.00	%		1.04	%		1.04	%		1.12	%
Adjusted ROTCE²		10.27			10.76			11.15			11.80			12.79
Adjusted efficiency ratio		59.84			60.21			61.13			60.32			60.19
Net adjusted noninterest expense as a percent of average tangible assets²		2.19	%		2.19	%		2.23	%		2.25	%		2.34	%

Other data:
Market capitalization³	$	2,277,003		$	2,016,472		$	2,156,529		$	2,415,158		$	1,869,891
Full-time equivalent employees		1,493			1,449			1,445			1,541			1,570
Number of ATMs		96			95			95			96			97
Full-service banking offices		77			77			77			77			77
¹Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and a reconciliation to GAAP.
²The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders’ equity less intangible assets.
³Common shares outstanding multiplied by closing bid price on last day of each period.
⁴As of 1Q’24, amortization of intangibles is excluded from adjustments to noninterest expense; prior periods have been updated to reflect the change.

OTHER INFORMATION

Conference Call Information

Seacoast will host a conference call October 25, 2024, at 10:00 a.m. (Eastern Time) to discuss the third quarter of 2024 earnings results and business trends. Investors may call in (toll-free) by dialing (800) 715-9871 (Conference ID: 6787376). Charts will be used during the conference call and may be accessed at Seacoast’s website at www.SeacoastBanking.com by selecting “Presentations” under the heading “News/Events.” Additionally, a recording of the call will be made available to individuals shortly after the conference call and can be accessed via a link at www.SeacoastBanking.com under the heading “Corporate Information.” The recording will be available for one year.

About Seacoast Banking Corporation of Florida (NASDAQ: SBCF)

Seacoast Banking Corporation of Florida (NASDAQ: SBCF) is one of the largest community banks headquartered in Florida with approximately $15.2 billion in assets and $12.2 billion in deposits as of September 30, 2024. Seacoast provides integrated financial services including commercial and consumer banking, wealth management, and mortgage services to customers at 77 full-service branches across Florida, and through advanced mobile and online banking solutions. Seacoast National Bank is the wholly-owned subsidiary bank of Seacoast Banking Corporation of Florida. For more information about Seacoast, visit www.SeacoastBanking.com.

Cautionary Notice Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning, and protections, of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, statements about future financial and operating results, cost savings, enhanced revenues, economic and seasonal conditions in the Company’s markets, and improvements to reported earnings that may be realized from cost controls, tax law changes, new initiatives and for integration of banks that the Company has acquired, or expects to acquire, as well as statements with respect to Seacoast’s objectives, strategic plans, expectations and intentions and other statements that are not historical facts. Actual results may differ from those set forth in the forward-looking statements.

Forward-looking statements include statements with respect to the Company’s beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates and intentions about future performance and involve known and unknown risks, uncertainties and other factors, which may be beyond the Company’s control, and which may cause the actual results, performance or achievements of Seacoast Banking Corporation of Florida (“Seacoast” or the “Company”) or its wholly-owned banking subsidiary, Seacoast National Bank (“Seacoast Bank”), to be materially different from results, performance or achievements expressed or implied by such forward-looking statements. You should not expect the Company to update any forward-looking statements.

All statements other than statements of historical fact could be forward-looking statements. You can identify these forward-looking statements through the use of words such as “may”, “will”, “anticipate”, “assume”, “should”, “support”, “indicate”, “would”, “believe”, “contemplate”, “expect”, “estimate”, “continue”, “further”, “plan”, “point to”, “project”, “could”, “intend”, “target” or other similar words and expressions of the future. These forward-looking statements may not be realized due to a variety of factors, including, without limitation: the impact of current and future economic and market conditions generally (including seasonality) and in the financial services industry, nationally and within Seacoast’s primary market areas, including the effects of inflationary pressures, changes in interest rates, slowdowns in economic growth, and the potential for high unemployment rates, as well as the financial stress on borrowers and changes to customer and client behavior and credit risk as a result of the foregoing; potential impacts of adverse developments in the banking industry, including those highlighted by high-profile bank failures, and including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto (including increases in the cost of our deposit insurance assessments), the Company’s ability to effectively manage its liquidity risk and any growth plans, and the availability of capital and funding; governmental monetary and fiscal policies, including interest rate policies of the Board of Governors of the Federal Reserve, as well as legislative, tax and regulatory changes including proposed overdraft and late fee caps, including those that impact the money supply and inflation; the risks of changes in interest rates on the level and composition of deposits (as well as the cost of, and competition for, deposits), loan demand, liquidity and the values of loan collateral, securities, and interest rate sensitive assets and liabilities; interest rate risks (including the impacts of interest rates on macroeconomic conditions, customer and client behavior, and on our net interest income), sensitivities and the shape of the yield curve; changes in accounting policies, rules and practices; changes in retail distribution strategies, customer preferences and behavior generally and as a result of economic factors, including heightened inflation; changes in the availability and cost of credit and capital in the financial markets; changes in the prices, values and sales volumes of residential and commercial real estate, especially as they relate to the value of collateral supporting the Company’s loans; the Company’s concentration in commercial real estate loans and in real estate collateral in Florida; Seacoast’s ability to comply with any regulatory requirements and the risk that the regulatory environment may not be conducive to or may prohibit or delay the consummation of future mergers and/or business combinations, may increase the length of time and amount of resources required to consummate such transactions, and may reduce the anticipated benefit; inaccuracies or other failures from the use of models, including the failure of assumptions and estimates, as well as differences in, and changes to, economic, market and credit conditions; the impact on the valuation of Seacoast’s investments due to market volatility or counterparty payment risk, as well as the effect of a decline in stock market prices on our fee income from our wealth management business; statutory and regulatory dividend restrictions; increases in regulatory capital requirements for banking organizations generally; the risks of mergers, acquisitions and divestitures, including Seacoast’s ability to continue to identify acquisition targets, successfully acquire and integrate desirable financial institutions and realize expected revenues and revenue synergies; changes in technology or products that may be more difficult, costly, or less effective than anticipated; the Company’s ability to identify and address increased cybersecurity risks, including those impacting vendors and other third parties which may be exacerbated by developments in generative artificial intelligence; fraud or misconduct by internal or external parties, which Seacoast may not be able to prevent, detect or mitigate; inability of Seacoast’s risk management framework to manage risks associated with the Company’s business; dependence on key suppliers or vendors to obtain equipment or services for the business on acceptable terms; reduction in or the termination of Seacoast’s ability to use the online- or mobile-based platform that is critical to the Company’s business growth strategy; the effects of war or other conflicts, acts of terrorism, natural disasters, including hurricanes in the Company’s footprint, health emergencies, epidemics or pandemics, or other catastrophic events that may affect general economic conditions and/or increase costs, including, but not limited to, property and casualty and other insurance costs; Seacoast’s ability to maintain adequate internal controls over financial reporting; potential claims, damages, penalties, fines, costs and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions; the risks that deferred tax assets could be reduced if estimates of future taxable income from the Company’s operations and tax planning strategies are less than currently estimated, the results of tax audit findings, challenges to our tax positions, or adverse changes or interpretations of tax laws; the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, non-bank financial technology providers, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions; the failure of assumptions underlying the establishment of reserves for expected credit losses; risks related to, and the costs associated with, environmental, social and governance matters, including the scope and pace of related rulemaking activity and disclosure requirements; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding the federal budget and economic policy; the risk that balance sheet, revenue growth, and loan growth expectations may differ from actual results; and other factors and risks described under “Risk Factors” herein and in any of the Company’s subsequent reports filed with the SEC and available on its website at www.sec.gov.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in the Company’s annual report on Form 10-K for the year ended December 31, 2023 and in other periodic reports that the Company files with the SEC. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC’s Internet website at www.sec.gov.

FINANCIAL HIGHLIGHTS							(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
							Quarterly Trends									Nine Months Ended
(Amounts in thousands, except ratios and per share data)	3Q’24			2Q’24			1Q’24			4Q’23			3Q’23			3Q’24			3Q’23
Summary of Earnings
Net income	$	30,651		$	30,244		$	26,006		$	29,543		$	31,414		$	86,901		$	74,490
Adjusted net income^1,6		30,511			30,277			31,132			31,363			34,170			91,920			101,878
Net interest income²		106,975			104,657			105,298			111,035			119,505			316,930			378,009
Net interest margin^2,3		3.17	%		3.18	%		3.24	%		3.36	%		3.57	%		3.19	%		3.91	%
Pre-tax pre-provision earnings¹		46,086			44,555			35,674			42,006			43,383			126,315			131,807
Adjusted pre-tax pre-provision earnings^1,6		46,390			44,490			42,513			45,016			47,349			133,393			168,905

Performance Ratios
Return on average assets-GAAP basis³		0.81	%		0.82	%		0.71	%		0.80	%		0.84	%		0.78	%		0.68	%
Return on average tangible assets-GAAP basis^3,4		0.99			1.00			0.89			0.99			1.04			0.96			0.88
Adjusted return on average tangible assets^1,3,4		0.98			1.00			1.04			1.04			1.12			1.01			1.15
Pre-tax pre-provision return on average tangible assets^1,3,4,6		1.46			1.45			1.22			1.39			1.43			1.38			1.49
Adjusted pre-tax pre-provision return on average tangible assets^1,3,4		1.47			1.45			1.42			1.48			1.55			1.44			1.85
Net adjusted noninterest expense to average tangible assets^1,3,4		2.19			2.19			2.23			2.25			2.34			2.20			2.40
Return on average shareholders’ equity-GAAP basis³		5.62			5.74			4.94			5.69			6.01			5.44			4.94
Return on average tangible common equity-GAAP basis^3,4		10.31			10.75			9.55			11.22			11.90			10.21			10.09
Adjusted return on average tangible common equity^1,3,4		10.27			10.76			11.15			11.80			12.79			10.72			13.14
Efficiency ratio⁵		59.84			60.21			66.78			60.32			62.60			62.24			65.19
Adjusted efficiency ratio¹		59.84			60.21			61.13			60.32			60.19			60.39			56.47
Noninterest income to total revenue (excluding securities gains/losses)		18.05			17.55			16.17			15.14			13.22			17.27			14.16
Tangible common equity to tangible assets⁴		9.64			9.30			9.25			9.31			8.68			9.64			8.68
Average loan-to-deposit ratio		83.79			83.11			84.50			83.38			82.63			83.80			82.86
End of period loan-to-deposit ratio		83.44			82.90			83.12			85.48			82.71			83.44			82.71

Per Share Data
Net income diluted-GAAP basis	$	0.36		$	0.36		$	0.31		$	0.35		$	0.37		$	1.02		$	0.89
Net income basic-GAAP basis		0.36			0.36			0.31			0.35			0.37			1.03			0.89
Adjusted earnings^1,6		0.36			0.36			0.37			0.37			0.40			1.08			1.21

Book value per share common		25.68			24.98			24.93			24.84			24.06			25.68			24.06
Tangible book value per share		16.20			15.41			15.26			15.08			14.26			16.20			14.26
Cash dividends declared		0.18			0.18			0.18			0.18			0.18			0.54			0.53
¹Non-GAAP measure – see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and a reconciliation to GAAP. ²Calculated on a fully taxable equivalent basis using amortized cost. ³These ratios are stated on an annualized basis and are not necessarily indicative of future periods. ⁴The Company defines tangible assets as total assets less intangible assets, and tangible common equity as total shareholders’ equity less intangible assets. ⁵Defined as noninterest expense less amortization of intangibles and gains, losses, and expenses on foreclosed properties divided by net operating revenue (net interest income on a fully taxable equivalent basis plus noninterest income excluding securities gains and losses). ⁶As of 1Q’24, amortization of intangibles is excluded from adjustments to noninterest expense; prior periods have been updated to reflect the change.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME						(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
	Quarterly Trends														Nine Months Ended
(Amounts in thousands, except per share data)	3Q’24		2Q’24			1Q’24			4Q’23			3Q’23			3Q’24		3Q’23

Interest on securities:
Taxable	$	25,963	$	24,155		$	22,393		$	21,383		$	21,401		$	72,511	$	61,543
Nontaxable		34		33			34			55			97			101		299
Interest and fees on loans		150,980		147,292			147,095			147,801			149,871			445,367		433,304
Interest on interest bearing deposits and other investments		7,138		8,328			6,184			7,616			8,477			21,650		16,974
Total Interest Income		184,115		179,808			175,706			176,855			179,846			539,629		512,120

Interest on deposits		51,963		51,319			47,534			44,923			38,396			150,816		81,612
Interest on time certificates		19,002		17,928			17,121			15,764			16,461			54,051		36,490
Interest on borrowed money		6,485		6,137			5,973			5,349			5,683			18,595		16,597
Total Interest Expense		77,450		75,384			70,628			66,036			60,540			223,462		134,699

Net Interest Income		106,665		104,424			105,078			110,819			119,306			316,167		377,421
Provision for credit losses		6,273		4,918			1,368			3,990			2,694			12,559		33,528
Net Interest Income After Provision for Credit Losses		100,392		99,506			103,710			106,829			116,612			303,608		343,893

Noninterest income:
Service charges on deposit accounts		5,412		5,342			4,960			4,828			4,648			15,714		13,450
Interchange income		1,911		1,940			1,888			2,433			1,684			5,739		11,444
Wealth management income		3,843		3,766			3,540			3,261			3,138			11,149		9,519
Mortgage banking fees		485		582			381			378			410			1,448		1,412
Insurance agency income		1,399		1,355			1,291			1,066			1,183			4,045		3,444
SBA gains		391		694			739			921			613			1,824		1,184
BOLI income		2,578		2,596			2,264			2,220			2,197			7,438		6,181
Other		7,473		5,953			5,205			4,668			4,307			18,631		15,636
		23,492		22,228			20,268			19,775			18,180			65,988		62,270
Securities gains (losses), net		187		(44	)		229			(2,437	)		(387	)		372		(456	)
Total Noninterest Income		23,679		22,184			20,497			17,338			17,793			66,360		61,814

Noninterest expense:
Salaries and wages		40,697		38,937			40,304			38,435			46,431			119,938		139,202
Employee benefits		6,955		6,861			7,889			6,678			7,206			21,705		23,240
Outsourced data processing costs		8,003		8,210			12,118			8,609			8,714			28,331		43,489
Occupancy		7,096		7,180			8,037			7,512			7,758			22,313		24,360
Furniture and equipment		2,060		1,956			2,011			2,028			2,052			6,027		6,664
Marketing		2,729		3,266			2,655			2,995			1,876			8,650		6,161
Legal and professional fees		2,708		1,982			2,151			3,294			2,679			6,841		14,220
FDIC assessments		1,882		2,131			2,158			2,813			2,258			6,171		5,817
Amortization of intangibles		6,002		6,003			6,292			6,888			7,457			18,297		21,838
Other real estate owned expense and net loss (gain) on sale		491		(109	)		(26	)		573			274			356		412
Provision for credit losses on unfunded commitments		250		251			250			—			—			751		1,239
Other		5,945		5,869			6,532			6,542			7,210			18,346		22,613
Total Noninterest Expense		84,818		82,537			90,371			86,367			93,915			257,726		309,255

Income Before Income Taxes		39,253		39,153			33,836			37,800			40,490			112,242		96,452
Provision for income taxes		8,602		8,909			7,830			8,257			9,076			25,341		21,962
Net Income	$	30,651	$	30,244		$	26,006		$	29,543		$	31,414		$	86,901	$	74,490

Share Data
Net income per share of common stock
Diluted	$	0.36	$	0.36		$	0.31		$	0.35		$	0.37		$	1.02	$	0.89
Basic		0.36		0.36			0.31			0.35			0.37			1.03		0.89
Cash dividends declared		0.18		0.18			0.18			0.18			0.18			0.54		0.53

Average common shares outstanding
Diluted		85,069		84,816			85,270			85,336			85,666			84,915		83,993
Basic		84,434		84,341			84,908			84,817			85,142			84,319		83,457

CONDENSED CONSOLIDATED BALANCE SHEETS							(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
	September 30,			June 30,			March 31,			December 31,			September 30,
(Amounts in thousands)	2024			2024			2024			2023			2023
Assets
Cash and due from banks	$	182,743		$	168,738		$	137,850		$	167,511		$	182,036
Interest bearing deposits with other banks		454,315			580,787			544,874			279,671			513,946
Total cash and cash equivalents		637,058			749,525			682,724			447,182			695,982

Time deposits with other banks		5,207			7,856			7,856			5,857			4,357

Debt Securities:
Securities available for sale (at fair value)		2,160,055			1,967,204			1,949,463			1,836,020			1,841,845
Securities held to maturity (at amortized cost)		646,050			658,055			669,896			680,313			691,404
Total debt securities		2,806,105			2,625,259			2,619,359			2,516,333			2,533,249

Loans held for sale		11,039			5,975			9,475			4,391			2,979

Loans		10,205,281			10,038,508			9,978,052			10,062,940			10,011,186
Less: Allowance for credit losses		(140,469	)		(141,641	)		(146,669	)		(148,931	)		(149,661	)
Loans, net of allowance for credit losses		10,064,812			9,896,867			9,831,383			9,914,009			9,861,525

Bank premises and equipment, net		108,776			109,945			110,787			113,304			115,749
Other real estate owned		6,421			6,877			7,315			7,560			7,216
Goodwill		732,417			732,417			732,417			732,417			731,970
Other intangible assets, net		77,431			83,445			89,377			95,645			102,397
Bank owned life insurance		306,379			303,816			301,229			298,974			296,763
Net deferred tax assets		94,820			108,852			111,539			113,232			131,602
Other assets		317,906			321,779			326,554			331,345			339,218
Total Assets	$	15,168,371		$	14,952,613		$	14,830,015		$	14,580,249		$	14,823,007

Liabilities
Deposits
Noninterest demand	$	3,443,455		$	3,397,918		$	3,555,401		$	3,544,981		$	3,868,132
Interest-bearing demand		2,487,448			2,821,092			2,711,041			2,790,210			2,800,152
Savings		524,474			566,052			608,088			651,454			721,558
Money market		4,034,371			3,707,761			3,531,029			3,314,288			3,143,897
Time deposits		1,753,837			1,623,295			1,610,281			1,476,002			1,574,095
Total Deposits		12,243,585			12,116,118			12,015,840			11,776,935			12,107,834

Securities sold under agreements to repurchase		210,176			262,103			326,732			374,573			276,450
Federal Home Loan Bank borrowings		245,000			180,000			110,000			50,000			110,000
Long-term debt, net		106,800			106,634			106,468			106,302			106,136
Other liabilities		168,960			157,377			153,225			164,353			174,193
Total Liabilities		12,974,521			12,822,232			12,712,265			12,472,163			12,774,613

Shareholders’ Equity
Common stock		8,614			8,530			8,494			8,486			8,515
Additional paid in capital		1,821,050			1,815,800			1,811,941			1,808,883			1,813,068
Retained earnings		508,036			492,805			478,017			467,305			453,117
Less: Treasury stock		(18,680	)		(18,744	)		(16,746	)		(16,710	)		(14,035	)
		2,319,020			2,298,391			2,281,706			2,267,964			2,260,665
Accumulated other comprehensive loss, net		(125,170	)		(168,010	)		(163,956	)		(159,878	)		(212,271	)
Total Shareholders’ Equity		2,193,850			2,130,381			2,117,750			2,108,086			2,048,394
Total Liabilities & Shareholders’ Equity	$	15,168,371		$	14,952,613		$	14,830,015		$	14,580,249		$	14,823,007

Common shares outstanding		85,441			85,299			84,935			84,861			85,150

CONSOLIDATED QUARTERLY FINANCIAL DATA				(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES

(Amounts in thousands)	3Q’24			2Q’24			1Q’24			4Q’23			3Q’23
Credit Analysis
Net charge-offs	$	7,445		$	9,946		$	3,630		$	4,720		$	12,748
Net charge-offs to average loans		0.29	%		0.40	%		0.15	%		0.19	%		0.50	%

Allowance for credit losses	$	140,469		$	141,641		$	146,669		$	148,931		$	149,661

Non-acquired loans at end of period	$	7,178,186		$	6,834,059		$	6,613,763		$	6,571,454		$	6,343,121
Acquired loans at end of period		3,027,095			3,204,449			3,364,289			3,491,486			3,668,065
Total Loans	$	10,205,281		$	10,038,508		$	9,978,052		$	10,062,940		$	10,011,186

Total allowance for credit losses to total loans at end of period		1.38	%		1.41	%		1.47	%		1.48	%		1.49	%
Purchase discount on acquired loans at end of period		4.48			4.51			4.63			4.75			4.86

End of Period
Nonperforming loans	$	80,857		$	59,927		$	77,205		$	65,104		$	41,508
Other real estate owned		933			1,173			309			221			221
Properties previously used in bank operations included in other real estate owned		5,488			5,704			7,006			7,339			6,995
Total Nonperforming Assets	$	87,278		$	66,804		$	84,520		$	72,664		$	48,724

Nonperforming Loans to Loans at End of Period		0.79	%		0.60	%		0.77	%		0.65	%		0.41	%

Nonperforming Assets to Total Assets at End of Period		0.58			0.45			0.57			0.50			0.33

	September 30,			June 30,			March 31,			December 31,			September 30,
Loans	2024			2024			2024			2023			2023
Construction and land development	$	595,753		$	593,534		$	623,246		$	767,622		$	793,736
Commercial real estate – owner occupied		1,676,814			1,656,391			1,656,131			1,670,281			1,675,881
Commercial real estate – non-owner occupied		3,573,076			3,423,266			3,368,339			3,319,890			3,285,974
Residential real estate		2,564,903			2,555,320			2,521,399			2,445,692			2,418,903
Commercial and financial		1,575,228			1,582,290			1,566,198			1,607,888			1,588,152
Consumer		219,507			227,707			242,739			251,567			248,540
Total Loans	$	10,205,281		$	10,038,508		$	9,978,052		$	10,062,940		$	10,011,186

AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES ¹								(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES


	3Q’24							2Q’24							3Q’23
	Average					Yield/		Average					Yield/		Average					Yield/
(Amounts in thousands)	Balance			Interest		Rate		Balance			Interest		Rate		Balance			Interest		Rate

Assets
Earning assets:
Securities:
Taxable	$	2,756,502		$	25,963	3.75	%	$	2,629,716		$	24,155	3.69	%	$	2,575,002		$	21,401	3.32	%
Nontaxable		5,701			42	2.93			5,423			40	2.97			15,280			119	3.11
Total Securities		2,762,203			26,005	3.75			2,635,139			24,195	3.69			2,590,282			21,520	3.32

Federal funds sold		433,423			5,906	5.42			510,401			6,967	5.49			547,576			7,415	5.37
Interest bearing deposits with other banks and other investments		102,700			1,232	4.77			98,942			1,361	5.53			90,039			1,062	4.68

Total Loans, net²		10,128,822			151,282	5.94			10,005,122			147,518	5.93			10,043,611			150,048	5.93

Total Earning Assets		13,427,148			184,425	5.46			13,249,604			180,041	5.47			13,271,508			180,045	5.38

Allowance for credit losses		(141,974	)						(146,380	)						(158,440	)
Cash and due from banks		167,103							168,439							168,931
Bank premises and equipment, net		109,699							110,709							116,704
Intangible assets		812,761							818,914							839,787
Bank owned life insurance		304,703							302,165							295,272
Other assets including deferred tax assets		317,406							336,256							372,241

Total Assets	$	14,996,846						$	14,839,707						$	14,906,003

Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand	$	2,489,674		$	12,905	2.06	%	$	2,670,569		$	14,946	2.25	%	$	2,804,243		$	15,013	2.12	%
Savings		546,473			601	0.44			584,490			560	0.39			770,503			465	0.24
Money market		3,942,357			38,457	3.88			3,665,858			35,813	3.93			2,972,495			22,918	3.06
Time deposits		1,716,720			19,002	4.40			1,631,290			17,928	4.42			1,619,572			16,461	4.03
Securities sold under agreements to repurchase		241,083			2,044	3.37			293,603			2,683	3.68			327,711			2,876	3.48
Federal Home Loan Bank borrowings		237,935			2,549	4.26			149,234			1,592	4.29			111,087			888	3.17
Long-term debt, net		106,706			1,892	7.05			106,532			1,862	7.03			106,036			1,919	7.18

Total Interest-Bearing Liabilities		9,280,948			77,450	3.32			9,101,576			75,384	3.33			8,711,647			60,540	2.76

Noninterest demand		3,393,110							3,485,603							3,987,761
Other liabilities		154,344							134,900							133,846
Total Liabilities		12,828,402							12,722,079							12,833,254

Shareholders’ equity		2,168,444							2,117,628							2,072,747

Total Liabilities & Equity	$	14,996,846						$	14,839,707						$	14,906,003

Cost of deposits						2.34	%						2.31	%						1.79	%
Interest expense as a % of earning assets						2.29	%						2.29	%						1.81	%
Net interest income as a % of earning assets				$	106,975	3.17	%				$	104,657	3.18	%				$	119,505	3.57	%


¹On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.
²Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.

AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES ¹								(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES


	Nine Months Ended September 30, 2024							Nine Months Ended September 30, 2023
	Average					Yield/		Average					Yield/
(Amounts in thousands)	Balance			Interest		Rate		Balance			Interest		Rate

Assets
Earning assets:
Securities:
Taxable	$	2,655,422		$	72,511	3.65	%	$	2,649,127		$	61,543	3.10	%
Nontaxable		5,677			123	2.89			15,721			370	3.14
Total Securities		2,661,099			72,634	3.65			2,664,848			61,913	3.10

Federal funds sold		438,089			17,929	5.47			336,022			12,444	4.95
Interest bearing deposits with other banks and other investments		102,415			3,721	4.85			90,511			4,530	6.69

Total Loans, net²		10,056,466			446,108	5.93			9,840,484			433,821	5.89

Total Earning Assets		13,258,069			540,392	5.44			12,931,865			512,708	5.30

Allowance for credit losses		(145,579	)						(151,613	)
Cash and due from banks		167,424							185,426
Bank premises and equipment, net		110,929							116,840
Intangible assets		819,046							811,483
Bank owned life insurance		302,220							287,756
Other assets including deferred tax assets		330,898							402,175

Total Assets	$	14,843,007						$	14,583,932

Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand	$	2,626,026		$	43,117	2.19	%	$	2,642,180		$	25,780	1.30	%
Savings		586,285			1,701	0.39			909,184			1,292	0.19
Money market		3,673,493			105,998	3.85			2,831,747			54,540	2.58
Time deposits		1,646,285			54,051	4.39			1,288,736			36,490	3.79
Securities sold under agreements to repurchase		289,181			7,806	3.61			249,242			5,333	2.86
Federal Home Loan Bank borrowings		163,468			5,101	4.17			214,415			5,936	3.70
Long-term debt, net		106,538			5,688	7.13			103,469			5,328	6.88

Total Interest-Bearing Liabilities		9,091,276			223,462	3.28			8,238,973			134,699	2.19

Noninterest demand		3,468,790							4,204,389
Other liabilities		148,000							126,487
Total Liabilities		12,708,066							12,569,849

Shareholders’ equity		2,134,941							2,014,083

Total Liabilities & Equity	$	14,843,007						$	14,583,932

Cost of deposits						2.28	%						1.33	%
Interest expense as a % of earning assets						2.25	%						1.39	%
Net interest income as a % of earning assets				$	316,930	3.19	%				$	378,009	3.91	%


¹On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.
²Fees on loans have been included in interest on loans. Nonaccrual loans are included in loan balances.

CONSOLIDATED QUARTERLY FINANCIAL DATA					(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
(Amounts in thousands)	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
Customer Relationship Funding
Noninterest demand
Commercial	$	2,731,564	$	2,664,353	$	2,808,151	$	2,752,644	$	3,089,488
Retail		509,527		532,623		553,697		561,569		570,727
Public funds		139,072		142,846		145,747		173,893		134,649
Other		63,292		58,096		47,806		56,875		73,268
Total Noninterest Demand		3,443,455		3,397,918		3,555,401		3,544,981		3,868,132

Interest-bearing demand
Commercial		1,426,920		1,533,725		1,561,905		1,576,491		1,618,755
Retail		874,043		892,032		930,178		956,900		994,224
Brokered		—		198,337		—		—		—
Public funds		186,485		196,998		218,958		256,819		187,173
Total Interest-Bearing Demand		2,487,448		2,821,092		2,711,041		2,790,210		2,800,152

Total transaction accounts
Commercial		4,158,484		4,198,078		4,370,056		4,329,135		4,708,243
Retail		1,383,570		1,424,655		1,483,875		1,518,469		1,564,951
Brokered		—		198,337		—		—		—
Public funds		325,557		339,844		364,705		430,712		321,822
Other		63,292		58,096		47,806		56,875		73,268
Total Transaction Accounts		5,930,903		6,219,010		6,266,442		6,335,191		6,668,284

Savings
Commercial		44,151		53,523		52,665		58,562		79,731
Retail		480,323		512,529		555,423		592,892		641,827
Total Savings		524,474		566,052		608,088		651,454		721,558

Money market
Commercial		1,953,851		1,771,927		1,709,636		1,655,820		1,625,455
Retail		1,887,975		1,733,505		1,621,618		1,469,142		1,362,390
Public funds		192,545		202,329		199,775		189,326		156,052
Total Money Market		4,034,371		3,707,761		3,531,029		3,314,288		3,143,897

Brokered time certificates		256,536		126,668		142,717		122,347		307,963
Time deposits		1,497,301		1,496,627		1,467,564		1,353,655		1,266,132
		1,753,837		1,623,295		1,610,281		1,476,002		1,574,095
Total Deposits	$	12,243,585	$	12,116,118	$	12,015,840	$	11,776,935	$	12,107,834

Securities sold under agreements to repurchase		210,176		262,103		326,732		374,573		276,450

Total customer funding ¹	$	12,197,225	$	12,053,216	$	12,199,855	$	12,029,161	$	12,076,321

¹Total deposits and securities sold under agreements to repurchase, excluding brokered deposits. Securities sold under agreements to repurchase consists of customer sweep accounts.

Explanation of Certain Unaudited Non-GAAP Financial Measures

This presentation contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”). Management uses these non-GAAP financial measures in its analysis of the Company’s performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company’s performance. The Company believes the non-GAAP measures enhance investors’ understanding of the Company’s business and performance and if not provided would be requested by the investor community. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might define or calculate these measures differently. The Company provides reconciliations between GAAP and these non-GAAP measures. These disclosures should not be considered an alternative to GAAP.

GAAP TO NON-GAAP RECONCILIATION							(Unaudited)
SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES
							Quarterly Trends									Nine Months Ended
(Amounts in thousands, except per share data)	3Q’24			2Q’24			1Q’24			4Q’23			3Q’23			3Q’24			3Q’23
Net Income	$	30,651		$	30,244		$	26,006		$	29,543		$	31,414		$	86,901		$	74,490

Total noninterest income		23,679			22,184			20,497			17,338			17,793			66,360			61,814
Securities (gains) losses, net		(187	)		44			(229	)		2,437			387			(372	)		456
BOLI benefits on death (included in other income)		—			—			—			—			—			—			(2,117	)
Total Adjustments to Noninterest Income		(187	)		44			(229	)		2,437			387			(372	)		(1,661	)
Total Adjusted Noninterest Income		23,492			22,228			20,268			19,775			18,180			65,988			60,153

Total noninterest expense		84,818			82,537			90,371			86,367			93,915			257,726			309,255
Merger-related charges		—			—			—			—			—			—			(33,180	)
Branch reductions and other expense initiatives		—			—			(7,094	)		—			(3,305	)		(7,094	)		(5,167	)
Adjustments to Noninterest Expense		—			—			(7,094	)		—			(3,305	)		(7,094	)		(38,347	)
Adjusted Noninterest Expense²		84,818			82,537			83,277			86,367			90,610			250,632			270,908

Income Taxes		8,602			8,909			7,830			8,257			9,076			25,341			21,962
Tax effect of adjustments		(47	)		11			1,739			617			936			1,703			9,298
Adjusted Income Taxes		8,555			8,920			9,569			8,874			10,012			27,044			31,260
Adjusted Net Income²	$	30,511		$	30,277		$	31,132		$	31,363		$	34,170		$	91,920		$	101,878

Earnings per diluted share, as reported	$	0.36		$	0.36		$	0.31		$	0.35		$	0.37		$	1.02		$	0.89
Adjusted Earnings per Diluted Share		0.36			0.36			0.37			0.37			0.40			1.08			1.21
Average diluted shares outstanding		85,069			84,816			85,270			85,336			85,666			84,915			83,993

Adjusted Noninterest Expense	$	84,818		$	82,537		$	83,277		$	86,367		$	90,610		$	250,632		$	270,908
Provision for credit losses on unfunded commitments		(250	)		(251	)		(250	)		—			—			(751	)		(1,239	)
Other real estate owned expense and net gain (loss) on sale		(491	)		109			26			(573	)		(274	)		(356	)		(412	)
Amortization of intangibles		(6,002	)		(6,003	)		(6,292	)		(6,888	)		(7,457	)		(18,297	)		(21,838	)
Net Adjusted Noninterest Expense	$	78,075		$	76,392		$	76,761		$	78,906		$	82,879		$	231,228		$	247,419
Average tangible assets		14,184,085			14,020,793			13,865,245			13,906,005			14,066,216			14,023,961			13,772,449
Net Adjusted Noninterest Expense to Average Tangible Assets		2.19	%		2.19	%		2.23	%		2.25	%		2.34	%		2.20	%		2.40	%

Net Revenue	$	130,344		$	126,608		$	125,575		$	128,157		$	137,099		$	382,527		$	439,235
Total Adjustments to Net Revenue		(187	)		44			(229	)		2,437			387			(372	)		(1,661	)
Impact of FTE adjustment		310			233			220			216			199			763			588
Adjusted Net Revenue on a fully taxable equivalent basis	$	130,467		$	126,885		$	125,566		$	130,810		$	137,685		$	382,918		$	438,162
Adjusted Efficiency Ratio		59.84	%		60.21	%		61.13	%		60.32	%		60.19	%		60.39	%		56.47	%

Net Interest Income	$	106,665		$	104,424		$	105,078		$	110,819		$	119,306		$	316,167		$	377,421
Impact of FTE adjustment		310			233			220			216			199			763			588
Net Interest Income including FTE adjustment	$	106,975		$	104,657		$	105,298		$	111,035		$	119,505		$	316,930		$	378,009
Total noninterest income		23,679			22,184			20,497			17,338			17,793			66,360			61,814
Total noninterest expense less provision for credit losses on unfunded commitments		84,568			82,286			90,121			86,367			93,915			256,975			308,016
Pre-Tax Pre-Provision Earnings	$	46,086		$	44,555		$	35,674		$	42,006		$	43,383		$	126,315		$	131,807
Total Adjustments to Noninterest Income		(187	)		44			(229	)		2,437			387			(372	)		(1,661	)
Total Adjustments to Noninterest Expense including other real estate owned expense and net (gain) loss on sale		491			(109	)		7,068			573			3,579			7,450			38,759
Adjusted Pre-Tax Pre-Provision Earnings²	$	46,390		$	44,490		$	42,513		$	45,016		$	47,349		$	133,393		$	168,905

Average Assets	$	14,996,846		$	14,839,707		$	14,690,776		$	14,738,034		$	14,906,003		$	14,843,007		$	14,583,932
Less average goodwill and intangible assets		(812,761	)		(818,914	)		(825,531	)		(832,029	)		(839,787	)		(819,046	)		(811,483	)
Average Tangible Assets	$	14,184,085		$	14,020,793		$	13,865,245		$	13,906,005		$	14,066,216		$	14,023,961		$	13,772,449
Return on Average Assets (ROA)		0.81	%		0.82	%		0.71	%		0.80	%		0.84	%		0.78	%		0.68	%
Impact of removing average intangible assets and related amortization		0.18			0.18			0.18			0.19			0.20			0.18			0.20
Return on Average Tangible Assets (ROTA)		0.99			1.00			0.89			0.99			1.04			0.96			0.88
Impact of other adjustments for Adjusted Net Income		(0.01	)		—			0.15			0.05			0.08			0.05			0.27
Adjusted Return on Average Tangible Assets		0.98			1.00			1.04			1.04			1.12			1.01			1.15

Pre-Tax Pre-Provision return on Average Tangible Assets		1.46			1.45			1.22			1.39			1.43			1.38			1.49
Impact of adjustments on Pre-Tax Pre-Provision earnings		0.01			—			0.20			0.09			0.12			0.06			0.36
Adjusted Pre-Tax Pre-Provision Return on Tangible Assets²		1.47	%		1.45	%		1.42	%		1.48	%		1.55	%		1.44	%		1.85	%

Average Shareholders’ Equity	$	2,168,444		$	2,117,628		$	2,118,381		$	2,058,912		$	2,072,747		$	2,134,941		$	2,014,083
Less average goodwill and intangible assets		(812,761	)		(818,914	)		(825,531	)		(832,029	)		(839,787	)		(819,046	)		(811,483	)
Average Tangible Equity	$	1,355,683		$	1,298,714		$	1,292,850		$	1,226,883		$	1,232,960		$	1,315,895		$	1,202,600

Return on Average Shareholders’ Equity		5.62	%		5.74	%		4.94	%		5.69	%		6.01	%		5.44	%		4.94	%
Impact of removing average intangible assets and related amortization		4.69			5.01			4.61			5.53			5.89			4.77			5.15
Return on Average Tangible Common Equity (ROTCE)		10.31			10.75			9.55			11.22			11.90			10.21			10.09
Impact of other adjustments for Adjusted Net Income		(0.04	)		0.01			1.60			0.58			0.89			0.51			3.05
Adjusted Return on Average Tangible Common Equity		10.27	%		10.76	%		11.15	%		11.80	%		12.79	%		10.72	%		13.14	%

Loan interest income¹	$	151,282		$	147,518		$	147,308		$	148,004		$	150,048		$	446,108		$	433,821
Accretion on acquired loans		(9,182	)		(10,178	)		(10,595	)		(11,324	)		(14,843	)		(29,955	)		(45,365	)
Loan interest income excluding accretion on acquired loans	$	142,100		$	137,340		$	136,713		$	136,680		$	135,205		$	416,153		$	388,456

Yield on loans¹		5.94			5.93			5.90			5.85			5.93			5.93			5.89
Impact of accretion on acquired loans		(0.36	)		(0.41	)		(0.42	)		(0.45	)		(0.59	)		(0.40	)		(0.61	)
Yield on loans excluding accretion on acquired loans		5.58	%		5.52	%		5.48	%		5.40	%		5.34	%		5.53	%		5.89	%

Net Interest Income¹	$	106,975		$	104,657		$	105,298		$	111,035		$	119,505		$	316,930		$	378,009
Accretion on acquired loans		(9,182	)		(10,178	)		(10,595	)		(11,324	)		(14,843	)		(29,955	)		(45,365	)
Net interest income excluding accretion on acquired loans	$	97,793		$	94,479		$	94,703		$	99,711		$	104,662		$	286,975		$	332,644

Net Interest Margin		3.17			3.18			3.24			3.36			3.57			3.19			3.91
Impact of accretion on acquired loans		(0.27	)		(0.30	)		(0.33	)		(0.34	)		(0.44	)		(0.30	)		(0.47	)
Net interest margin excluding accretion on acquired loans		2.90	%		2.87	%		2.91	%		3.02	%		3.13	%		2.89	%		3.44	%

Security interest income¹	$	26,005		$	24,195		$	22,434		$	21,451		$	21,520		$	72,634		$	61,913
Tax equivalent adjustment on securities		(8	)		(7	)		(7	)		(13	)		(22	)		(22	)		(71	)
Security interest income excluding tax equivalent adjustment	$	25,997		$	24,188		$	22,427		$	21,438		$	21,498		$	72,612		$	61,842

Loan interest income¹	$	151,282		$	147,518		$	147,308		$	148,004		$	150,048		$	446,108		$	433,821
Tax equivalent adjustment on loans		(302	)		(226	)		(213	)		(203	)		(177	)		(741	)		(517	)
Loan interest income excluding tax equivalent adjustment	$	150,980		$	147,292		$	147,095		$	147,801		$	149,871		$	445,367		$	433,304

Net Interest Income¹	$	106,975		$	104,657		$	105,298		$	111,035		$	119,505		$	316,930		$	378,009
Tax equivalent adjustment on securities		(8	)		(7	)		(7	)		(13	)		(22	)		(22	)		(71	)
Tax equivalent adjustment on loans		(302	)		(226	)		(213	)		(203	)		(177	)		(741	)		(517	)
Net interest income excluding tax equivalent adjustment	$	106,665		$	104,424		$	105,078		$	110,819		$	119,306		$	316,167		$	377,421

¹On a fully taxable equivalent basis. All yields and rates have been computed using amortized cost.
²As of 1Q’24, amortization of intangibles is excluded from adjustments to noninterest expense; prior periods have been updated to reflect the change.

The MIL Network –

January 25, 2025

MIL-OSI USA News: Remarks by Vice President Harris in Press Gaggle | Philadelphia, PA

Source: The White House

Warwick Hotel Rittenhouse Square Philadelphia
Philadelphia, Pennsylvania

1:27 P.M. EDT

THE VICE PRESIDENT: Oh, hi, guys.

Q Hello.

THE VICE PRESIDENT: Okay. Good morning — or af- —

Q Good afternoon.

THE VICE PRESIDENT: — afternoon. Good afternoon. Good afternoon.

Well, let me start by saying I’m really very proud to announce that we’ve had some endorsements this morning, as we’ve been rolling out endorsements, by two leaders in the Republican Party: the mayor of Waukesha and then, of course, former Representative Fred Upton.

And this continues to be, I think, evidence of the fact that people who have been leaders in our country, regardless of their political party, understand what’s at stake. And they are weighing in — courageously, in many cases — in support of what we need to have, which is a president of the United States who understands the obligation to uphold the Constitution of the United States and our democracy.

As for last night, yet again, Trump not showing up, refused to be a part of a CNN debate. And clearly, his staff has been saying he’s exhausted. And the sad part about that is he’s trying to be president of the United States, probably the toughest job in the world, and he’s exhausted.

I said last night what I mean, which is the American people are being presented with a very serious decision, and it includes what we must understand will happen, starting on January 20th, in this choice.

Either you have the choice of a Donald Trump, who will sit in the Oval Office stewing, plotting revenge, retribution, writing out his enemies list, or what I will be doing, which is responding to folks like the folks last night with a to-do list, understanding the need to work on lifting up the American people, whether it be through the issue of grocery prices and bringing them down or investing in our economy, investing in our small businesses, investing in our families.

Happy to take any questions.

Q Madam Vice President, you will be back in Philadelphia with members of your team on Monday, former President Barack Obama, as well as Bruce Springsteen.

THE VICE PRESIDENT: Yes.

Q Do you — can you tell us where you — that may be?

And secondly, any other, as we would say, heavy hitters in your campaign planning to come to Philadelphia in the lead-up to Election Day?

THE VICE PRESIDENT: Well, I’m very honored to have the support of former President Obama. As you know, he’s been on the campaign trail and has been really wonderful and extraordinary in terms of the time and effort that he’s putting into our campaign. And people like Bruce Springsteen, to have their support — and, of course, he is an American icon — I think it just shows the breadth and depth of the support that we have and also the enthusiasm that a lot of people are bringing to the campaign and feel about our campaign.

Q Any other big names we can share?

THE VICE PRESIDENT: I have nothing to report at this moment. (Laughs.)

Q (Inaudible.)

THE VICE PRESIDENT: Stay tuned, however.

Q Vice President, what do you make of the gender gap in this election? Why do you think you have stronger support among women than the former president?

THE VICE PRESIDENT: Well, I have to be honest with you, it’s not what I see in terms of my rallies, in terms of the interactions I’m having with people in communities and — and on the ground. What I am seeing is e- — in equal measure, men and women talking about their concerns about the future of our democracy; talking about the fact that they want a president who leads with optimism and takes on the challenges that we face, whether it be grocery prices or investing in small businesses or homeownership.

So, I’m not actually seeing that kind of disparity, and I intend to be a president for all Americans. And that includes paying attention, yes, to a fundamental freedom that has been taken away because of Donald Trump — the freedom of a woman to make decisions about her own body — and, in equal measure, to prioritize the economic needs of individuals and families in America and what we also must do in terms of upholding our strength and standing on the global stage.

Q Madam Vice President —

THE VICE PRESIDENT: You all sort that out, okay? (Laughter.)

Q How are you going to vote on Prop 36 in California? You are a California voter. Do California and other states need to punish drug and theft crimes more harshly?

THE VICE PRESIDENT: So, I have not yet voted, and I have not yet had the chance to read through the ballot. I will keep you posted on that.

AIDE: We have time for one more question.

Q Madam Vice President, this topic was brought up last night, but will construction of a southern border wall continue in your administration?

THE VICE PRESIDENT: I will tell you that my highest priority is to put the resources into ensuring that our border is secure, which is why I’ve been very clear: I’m going to bring back up, as president, that bipartisan border security bill and make sure that it is brought to my desk so I can sign it into law.

The biggest issue that we have right now is that Donald Trump has stood in the way of what would have been a proven part of the solution to the bigger problem, which is that we have a broken immigration system in America, and we need to fix it. And we have the tools at hand, but we have on the other side of this election, Donald Trump, who would prefer to run on a problem instead of fixing a problem.

I intend to fix the problem in a way that is just about practical solutions that are within our arms reach if we have the commitment to do it.

Okay? Thank you.

MIL OSI USA News –

January 25, 2025

MIL-OSI: Xtract One Announces Annual Fiscal 2024 Results

Source: GlobeNewswire (MIL-OSI)

TORONTO, Oct. 24, 2024 (GLOBE NEWSWIRE) — Xtract One Technologies Inc. (TSX: XTRA) (OTCQX: XTRAF) (FRA: 0PL) (“Xtract One” or the “Company”) a leading technology-driven threat detection and security solution that prioritizes the patron access experience by leveraging artificial intelligence (AI), today announced its annual results for the year ended July 31, 2024. All information is in Canadian dollars unless otherwise indicated.

“What a year it’s been! With record results across the board, we continue to make progress towards profitability through operational execution and higher top line growth,” stated Peter Evans, Chief Executive Officer of Xtract One. “Revenue for the year was $16.4 million – quadruple that of last year – while our combined backlog rose to $26.8 million, reflecting strong demand across all vertical markets. We’re positioning the Company for continued expansion going forward as we are seeing growing interest from all types of customers – stadiums and arenas to schools, business centers, and factories – putting us on track for even greater performance in fiscal 2025.”

“To add further momentum to this success, the recent introduction of Xtract One Gateway will significantly expand our addressable market, and win rate in those markets, by improving the Company’s competitive positioning. Xtract One Gateway will allow high-traffic facilities like schools, convention centers, and commercial properties to quickly screen patrons who may have laptops, tablets or other large metallic objects while still accurately detecting weapons. As the only product on the market with these capabilities, it’s clearly transformational for us and the industry.”

Fiscal 2024 Annual Highlights

Record revenue of $16.4 million for the year ended July 31, 2024 versus $4.1 million in the prior fiscal year
Gross profit margin of 63% for the year ended July 31, 2024 versus 60% in the prior fiscal year
Total contract value of new bookings¹ was $29.8 million for the year ended July 31, 2024 as compared to $15.0 million during the prior fiscal year
Platform contractual backlog was $13.8 million at the end of fiscal 2024 as compared to $4.1 million at the end of fiscal 2023. This excludes an additional $13.0 million of agreements pending installation¹ at the end of fiscal 2024 versus $10.4 million at the end of fiscal 2023
Loss and comprehensive loss was $11.1 million for the year ended July 31, 2024 as compared to $16.3 million for the prior year
Subsequent to July 31, 2024, the Company launched Xtract One Gateway, with advanced bi-directional configurable screening and proprietary sensors, for precise weapons detection at locations where users carry a medium volume of personal items such as laptops

Fourth Quarter Highlights

Record quarterly revenue of $5.6 million for the three months ended July 31, 2024 versus $1.8 million in the prior year period
Gross profit margin of 65% for the fourth quarter versus 70% in the prior year period
Total contract value of new bookings¹ was $5.6 million for the three months ended July 31, 2024 as compared to $5.2 million for the prior year period
Loss and comprehensive loss was $2.4 million for the three months ended July 31, 2024 as compared to $3.3 million for the same period in fiscal 2023

This press release should be read in conjunction with the Company’s Annual Consolidated Financial Statements, prepared in accordance with International Financial Reporting Standards (“IFRS”) and the Company’s Management’s Discussion and Analysis for the years ended July 31, 2024 and 2023, which can be found under the Company’s profile on SEDAR+ at www.sedarplus.ca.

Conference Call Details

Xtract One will host a conference call to discuss its results on October 25, 2024 at 10:00 am ET. Peter Evans, CEO and Director, and Karen Hersh, CFO and Corporate Secretary, will provide an overview of the financial results along with management’s outlook for the business, followed by a question-and-answer period.

The webcast and presentation will be accessible on the Company’s website. The webcast can be accessed here and the telephone number for the conference call is 844-481-3016 (412-317-1881 for international callers).

About Xtract One Technologies

Xtract One Technologies is a leading technology-driven provider of threat detection and security solutions leveraging AI to deliver seamless and secure experiences. The Company makes unobtrusive weapons and threat detection systems that enable facility operators to prioritize and deliver improved “Walk-right-In” experiences while providing unprecedented safety. Xtract One’s innovative portfolio of AI-powered Gateway solutions excels at allowing facilities to discreetly screen and identify weapons and other threats at points of entry and exit without disrupting the flow of traffic. With solutions built to serve the unique market needs for schools, hospitals, arenas, stadiums, manufacturing, distribution, and other customers, Xtract One is recognized as a market leader delivering the highest security in combination with the best individual experience. For more information, visit www.xtractone.com or connect on Facebook, X, and LinkedIn.

For further information, please contact:

Xtract One Inquiries: info@xtractone.com, http://www.xtractone.com
Media Contact: Kristen Aikey, JMG Public Relations, 212-206-1645, kristen@jmgpr.com
Investor Relations: Chris Witty, Darrow Associates, 646-438-9385, cwitty@darrowir.com

¹Supplementary Financial Measures
The Company utilizes specific supplementary financial measures in this earnings release to allow for a better evaluation of the operating performance of the Company’s business and facilitates meaningful comparison of results in the current period with those in prior periods and future periods. Supplementary financial measures do not have any standardized meaning prescribed under IFRS and therefore may not be comparable to measures presented by other companies. Supplementary financial measures presented in this earnings release include ‘Agreements pending installation’ and ‘Total contract value of new bookings.’ Agreements pending installation reflects total value of signed contracts awarded to the Company that has not been installed at the customer site. ‘Total contract value of new bookings’ is comprised of all new contracts signed and awarded to the Company, regardless of the performance obligations outstanding as of the end of the reporting period. Total contract value is the aggregate value of sales commitments from customers as at the end of the reporting period without consideration of the Company’s completion of the associated performance obligations outlined in each contract.

Forward Looking Statements

This news release contains forward-looking statements within the meaning of applicable securities laws that are not historical facts. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipates”, “expects”, “believes”, and similar expressions or the negative of these words or other comparable terminology. All statements other than statements of historical fact, included in this release are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations include but are not limited to the risks detailed from time to time in the continuous disclosure filings made by the Company with securities regulations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements only as expressly required by applicable law.

No securities exchange or commission has reviewed or accepts responsibility for the adequacy or accuracy of this release.

Consolidated Statements of Loss and Comprehensive Loss for the Years Ended July 31, 2024 and 2023

The following table is extracted from the Company’s consolidated financial statements and presented in Canadian dollars to demonstrate the Statements of Loss and Comprehensive loss for the years ended July 31, 2024 and 2023:

		2024			2023

Revenue
Platform revenue	$	15,969,996		$	3,596,999
Xtract revenue		388,011			514,245
Total revenue	$	16,358,007		$	4,111,244

Cost of revenue
Platform cost of revenue	$	5,858,611		$	1,383,623
Xtract cost of revenue		241,377			242,724
Total cost of revenue	$	6,099,988		$	1,626,347

Gross profit	$	10,258,019		$	2,484,897

Operating expenses
Selling and marketing	$	5,593,432		$	4,566,130
General and administration		7,479,609			6,813,847
Research and development		8,265,043			7,078,280
Loss on inventory write-down		175,042			346,374
Loss on retirement of assets		95,066			181,107
Total operating expenses	$	21,608,192		$	18,985,738

Loss from operations		(11,350,173	)		(16,500,841	)

Other income (loss)
Unrealized gain on investments		–			58,333
Realized loss on investment		–			(55,082	)
Interest and other income		285,318			161,117

Loss and comprehensive loss for the year	$	(11,064,855	)	$	(16,336,473	)

Weighted average number of shares		203,820,258			176,664,492

Basic and diluted loss per share	$	(0.05	)	$	(0.09	)

Consolidated Statements of Financial Position as at July 31, 2024 and 2023

The following table is extracted from the Company’s consolidated financial statements and presented in Canadian dollars to demonstrate the Company’s financial position as at July 31, 2024 and July 31, 2023:

		July 31, 2024			July 31, 2023
Assets
Current assets
	Cash and cash equivalents	$	8,628,521		$	8,327,449
	Receivables		3,862,199			847,429
	Prepaid expenses and deposits		949,012			1,026,668
	Current portion of deferred cost of revenue		371,309			–
	Inventory		3,688,246			1,602,971

			17,499,287			11,804,517

Property and equipment			2,135,956			2,063,817
Intangible assets			4,465,755			4,843,700
Non-current portion of deferred cost of revenue			496,868			–
Right of use assets			344,304			286,796

Total assets		$	24,942,170		$	18,998,830

Liabilities
Current liabilities
	Accounts payable and accrued liabilities	$	3,991,292		$	2,519,350
	Current portion of deferred revenue		3,443,524			968,509
	Current portion of lease liability		190,400			232,483

			7,625,216			3,720,342

Non-Current liabilities
	Non-current portion of deferred revenue		3,155,579			411,232
	Non-current portion of lease liability		190,526			124,358

		$	10,971,321		$	4,255,932

Shareholders’ equity
	Share capital	$	144,372,452		$	135,823,337
	Contributed surplus		16,163,950			14,420,259
	Accumulated deficit		(146,565,553	)		(135,500,698	)

		$	13,970,849		$	14,742,898

Total liabilities and shareholders’ equity		$	24,942,170		$	18,998,830

Consolidated Statements of Cash Flows for the Years Ended July 31, 2024 and 2023

The following table is extracted from the Company’s consolidated financial statements and presented in Canadian dollars to demonstrate the Company’s cash flows for the years ended July 31, 2024 and 2023:

				2024			2023
Cash flow used in operating activities
	Loss and comprehensive loss for the year		$	(11,064,855	)	$	(16,336,473	)
	Adjustment for:
		Share-based compensation		1,036,744			950,536
		Depreciation		1,303,571			923,764
		Amortization		805,900			805,900
		Finance cost		22,420			42,237
		Loss on inventory		175,042			346,374
		Loss on retirement of assets		95,066			181,107
		Other income		–			(20,000	)
		Realized loss on investments		–			55,082
		Unrealized gain on investments		–			(58,333	)

				(7,626,112	)		(13,109,806	)
	Changes in non-cash working capital
		Receivables		(3,014,770	)		1,047,727
		Prepaid expenses and deposits		77,656			(358,018	)
		Inventory		(4,522,739	)		(2,198,583	)
		Deferred cost of revenue		250,853			–
		Accounts payable and accrued liabilities		1,471,942			(99,732	)
		Deferred revenue		5,219,362			1,183,090

	Cash used in operating activities			(8,143,808	)		(13,535,322	)

Cash flow used in investing activities
	Acquisition of intangible assets			(427,955	)		–
	Acquisition of right of use asset			(1,800	)		–
	Purchase of property and equipment			–			(32,539	)
	Disposal of investment – Gemina Labs			–			397,001

	Cash (used in) received from investing activities			(429,755	)		364,462

Cash flow from financing activities
	Proceeds on issue of share capital, net of share issue costs			9,256,062			15,583,660
	Lease payments			(381,427	)		(362,672	)

	Cash received from financing activities			8,874,635			15,220,988

Net increase in cash for the year			$	301,072		$	2,050,128

Cash beginning of the year				8,327,449			6,277,321

Cash end of the year			$	8,628,521		$	8,327,449

The MIL Network –

January 25, 2025

MIL-OSI Australia: 1206 2CC Breakfast with Stephen Cenatiempo

Source: Australia Government Ministerial Statements

STEPHEN CENATIEMPO: All right. I want to talk federal politics a little bit further. We’re joined by Kristy McBain, the Minister for Regional Development, Territories and Local Government and the Member for Eden-Monaro. Kristy, good morning.

KRISTY MCBAIN: Good morning Stephen.

CENATIEMPO: Now I’m going to leave you out of the energy debate for the moment because it’s not your portfolio, but something in the time that you and I have been talking, you’ve been very critical of the previous government and what the current government likes to call rorts, whether it’s sports rorts, car park rorts, all of this. Well, it now turns out you guys are just as bad because the Housing Support Program is pouring money into Labor electorates and marginal electorates that you’re trying to pick up. Pot calling the kettle black, much?

MCBAIN: Our Housing Support Program Stream One has been announced, which is for a range of assistance to councils to help them with planning. Stream Two is not yet announced, which is the enabling infrastructure that will help build the water and sewer connections, the roads, kerbs and guttering to get more housing underway. It’s really important that enabling infrastructure is taken off councils that may have to do it themselves if they own the land. Developers are saying, if we did all of that, the blocks become too expensive and nothing will get built. We’re contributing in a number of ways to make sure that housing is more affordable for Australians out there, whether it’s through enabling infrastructure, whether it’s through the Housing Australia Future Fund.

CENATIEMPO: Kristy, that’s not the argument here. The argument is that it’s going into like key Labor electorates, and Coalition seats that you’re targeting, exactly like car park and sports rorts.

MCBAIN: I haven’t seen any of those reports. The decisions have been made by the department, not by Ministers. It is important that we deal with what’s in front of us, and that’s transparency. If it’s been made by the department, it’s been made by the department. We’ve gone through round one of the Growing Regions Fund, which was audited in real time. Those projects were found to stack up to the guidelines. They were across a range of electorates. We’ve been walking the talk and saying, this is what we’re going to be, as transparent as possible as the decisions are made by the department. That’s what they are.

CENATIEMPO: Except for the Housing Support Fund. All right, let’s talk housing while we’re at it. You’ve hit out a Bridget McKenzie for saying the Commonwealth shouldn’t fund housing. Well, the reality is, the Commonwealth’s not going to fund housing. You’re funding around the edges, which is exactly what the Opposition is saying we should do with their $5 billion package.

MCBAIN: What I found quite extraordinary about Bridget McKenzie’s comments was that she said we shouldn’t fund housing in regional areas. That we need to get out of the way and let developers get on with the job. If Bridget paid any attention to the debate that was happening in the Senate, she would know that’s exactly what we’re doing. The Commonwealth Government doesn’t have a construction arm. What we’re doing is making sure we make it easier for people to get on with developments. They say imitation is the best form of flattery. It’s nice to see the Coalition get on now and say we’re actually going to contribute to the housing debate and copy our Housing Support Program.

CENATIEMPO: Well, it’s not copying. Let’s be fair dinkum about it, it’s not copying.

MCBAIN: It is. It’s funding enabling infrastructure, which is exactly what we’re doing. I think that’s fantastic. It’s really important that we’ve got major parties interested in housing, and that’s a big change from the ten years that they were in government. What we would like them to do is not only talk with us about enabling infrastructure, but also talk with us about the Help to Buy program, or the Build to Rent program. We know we need to start helping in all different facets of home ownership, whether that’s renting, whether that’s buying, whether that’s trying to enable more blocks to get out on the market. It’s really important that we’re making a difference. The three levels of government need to be working together on this. That’s been the change over the last couple of years. There is a real focus now on housing from three levels of government.

CENATIEMPO: Now, I don’t think we’ve seen any results of that yet. Let’s talk about things closer to home in Bungendore. A flood mitigation program. Tell us about this?

MCBAIN: Right across the country we saw some catastrophic flooding in 2022. We provided $40 million towards the New South Wales Flood Recovery and Resilience Grant program. Under round two of this, more than $4.6 million is being invested across New South Wales, to deal with flood mitigation projects. $2.2 million is going to Queanbeyan-Palerang Regional Council to construct an overflow channel over Turallo Creek in Bungendore. It will allow the flood waters to bypass Tarago Road bridge instead of crossing that and flooding it, during times of heavy rain. I’m really proud to be able to deliver this, because the community has long called for this. We know we need to do more in making our communities more resilient come those heavy weather events. This is just another way that we’re helping New South Wales deliver those resilient programs. It builds on last year’s allocation of over $20 million, which went to 19 projects across New South Wales. Really proud that the community is finally getting a long called for a piece of infrastructure, that will allow them to still cross the road during heavy weather.

CENATIEMPO: Now local communities are going to be asked to help identify potential locations for the next round of the Mobile Black Spots Program. Why do we need to do this? Why aren’t local Members already aware of where their black spots are?

MCBAIN: We do this all the time with communities. Councils call for community input for black spots all the time, and are constantly updating the telcos with these. I ran a survey last time, which identified a range of different black spots, and we contribute to it as well as community members. It’s really important, particularly as we see the development of more housing blocks, that we make sure that connectivity is still front of mind, particularly when we’re developing more rural areas. It is really important that we continue to update that as we head towards round eight of the Mobile Black Spot Program, which will close later this year. It’s just another way you integrate with your community and understand what’s happening.

CENATIEMPO: All right. Again, I think if a local Member is doing their job well enough, they should know where the black spots are in their electorates. But Kristy, always good to talk to you. We’ll catch up in a couple of weeks’ time.

MCBAIN: Sounds great. Thanks.

MIL OSI News –

January 25, 2025

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

Source: International Monetary Fund

October 24, 2024

Speakers:

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

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

Moderator:

RANDA ELNAGAR, Senior Communications Officer, International Monetary Fund

* * * * *

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Now, there were some questions on –

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

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

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

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

MS. ELNAGAR: Any other questions on Japan?

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

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

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

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

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

Any other questions on India or you ready to discuss?

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

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

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

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

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

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

MS. ELNAGAR: We can hear you. Yes.

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

MS. ELNAGAR: Thank you.

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

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

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

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

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

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

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

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

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

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

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

MS. ELNAGAR: Any other question on Sri Lanka?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

* * * * *

IMF Communications Department

MEDIA RELATIONS

PRESS OFFICER: Randa Elnagar

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

@IMFSpokesperson

MIL OSI Economics –

January 25, 2025

MIL-OSI United Kingdom: Six towns and cities to pilot clean heating innovation

Source: United Kingdom – Executive Government & Departments 2

Government announces England’s first-ever heat network zones, supporting businesses and building owners to benefit from low-cost, low-carbon heating.

More businesses and building owners to benefit from low-cost, low-carbon heating, with the first heat network zones in England to be developed
Tens of thousands of jobs to be created through development of heat networks across the country

Businesses and building owners across England are set to benefit from low-cost, low-carbon heating as six towns and cities have been selected to develop the country’s first heat network zones.

Developing zones for heat networks in urban areas is the cheapest and most efficient way of delivering the technology, which recycles excess heat – generated for example by data centres or from factories – to enable the heating of several buildings at once.

The ground-breaking schemes in Leeds, Plymouth, Bristol, Stockport, Sheffield, and two in London will receive a share of £5.8 million of government funding to develop the zones, with construction expected to start from 2026. This will help to create tens of thousands of jobs including engineering, planning, manufacturing and construction roles.

Heat network zones use data to identify the best spots and help to plan and build the technology at scale. They require suitable buildings, such as hotels and large offices, to connect when it is cost-effective for them to do so.

Minister for Energy Consumers Miatta Fahnbulleh said:

Heat network zones will play an important part in our mission to deliver clean power for the country, helping us take back control of our energy security.

As well as energy independence, they will support millions of businesses and building owners for years to come, with low-cost, low carbon heating – driving down energy bills.

Tens of thousands of green jobs will be created across the country, and that’s why we’re investing in developing these fantastic and innovative projects – developing the first zones in cities and towns across England.

The new schemes will provide heating using trailblazing sources. Excess heat from data centres – which would otherwise be wasted – will provide heating in the Old Oak and Park Royal Development, while the system planned in Leeds will take heat from a nearby glass factory to warm connected buildings.

Developing heat networks across the country has the potential to create tens of thousands of jobs through delivering a low-carbon heating transformation.

Types of buildings that could connect to a network include those that are already communally heated, and large non-domestic buildings over a certain size, such as hospitals, universities, hotels, supermarkets, and office blocks.

The six selected towns and cities are part of the government’s plan to accelerate the delivery of heat networks across England in areas where zones are likely to be designated in the future. The learnings from these pilots will inform the work to reduce bills, enhance energy security, and achieve net zero by 2050.

CEO of the Association for Decentralised Energy Caroline Bragg said:

We are delighted to see Government maintaining its support for the heat network sector.

Heat network zones are crucial for a just transition for our communities – putting the UK on the lowest cost pathway to decarbonising our heat, attracting more than £3 of private investment for every £1 of public funding given and creating tens of thousands of local jobs.

As we begin to deliver zoning at scale, it is crucial that the Government and industry continue to work together to ensure heat networks can truly unleash their potential.

Notes to editors:

After the passing of the Energy Act 2023, Ofgem was named as a provisional regulator for communal heat networks.
The government is planning to introduce secondary legislation to set out the commencement date for Ofgem regulation, provided for in the Energy Act 2023, with plans to also consult on proposals including complaints handling, protections for vulnerable people and fair pricing in due course.
Ofgem’s regulatory power will apply to both new and existing heat networks.
Consumer Advocacy bodies (Citizens Advice in England and Wales, Consumer Scotland in Scotland), who will provide advisory and advocacy services for heat network consumers.
The cities that are part of Advanced Zoning Programme have been identified as those which are further developed around their planning and thinking of heat network development and are ready to deliver at pace and scale.

Published 25 October 2024

MIL OSI United Kingdom –

January 25, 2025

MIL-OSI USA: FEMA Is Working To Place Temporary Housing Units on Privately Owned Vacant Lots

Source: US Federal Emergency Management Agency

Headline: FEMA Is Working To Place Temporary Housing Units on Privately Owned Vacant Lots

FEMA Is Working To Place Temporary Housing Units on Privately Owned Vacant Lots

LAHAINA, Hawaiʻi – FEMA is working to return individuals and families occupying Direct Lease units outside of West Maui back to the Lahaina area. To further expand housing options in West Maui for wildfire survivors, FEMA is working with Maui County and Lahaina property owners to place Alternative Transportable Temporary Housing Units on secondary private properties. These properties will house individuals and families who were displaced by the August 2023 wildfires.FEMA is seeking to lease vacant lots from property owners who do not intend to rebuild on them within the next two to three years. The property will be assessed for use by the U.S. Army Corps of Engineers and reviewed by FEMA. Properties must meet lot size requirements and be outside of the high hazard coastal floodplain. If the property meets all requirements, FEMA may lease the vacant land to place temporary housing for wildfire survivors. The property must allow for the placement of two or more temporary units. Properties must be within the West Maui area.Alternative Transportable Temporary Housing Units are prefabricated, furnished one-, two-, or three-bedroom units and will meet all county, state, and federal requirements. FEMA will determine the number of units on the property and the placement of survivors. To install temporary housing on secondary private property, the property owner must verify ownership and give FEMA right-of-entry permissions. Right-of-entry permissions allow FEMA to safely deliver, install and remove the unit, and ensure it meets local zoning requirements. The site must also be properly cleared of debris and other obstacles for the placement of units. Properties with established utilities (such as potable water and electric) in the impact zone of Lahaina are preferred; however, FEMA will also consider other properties. All will be assessed on a case-by-case basis. Interested West Maui secondary property owners should contact FEMA at fema-r9-housing@fema.dhs.gov. For the latest information on the Maui wildfire recovery efforts, visit mauicounty.gov, mauirecovers.org, fema.gov/disaster/4724 and Hawaii Wildfires – YouTube. Follow FEMA on social media: @FEMARegion9 and facebook.com/fema. You may also get disaster assistance information and download applications at sba.gov/hawaii-wildfires.
shannon.carley
Thu, 10/24/2024 – 22:30

MIL OSI USA News –

January 25, 2025

MIL-OSI Economics: Transcript of Press Briefing: Middle East and Central Asia Department Regional Economic Outlook October 2024

Source: International Monetary Fund

October 24, 2024

PARTICIPANTS:

JIHAD AZOUR, Director of Middle East and Central Asia Department, International Monetary Fund

ANGHAM AL SHAMI, Communications Officer, International Monetary Fund

* * * * *

MS. AL SHAMI: Good morning. Good afternoon to those of you in the region. Thank you for joining us to this press briefing on the Regional Economic Outlook for the Middle east and Central Asia. I’m Angham Al Shami from the Communications Department here at the IMF. If you’re joining us online, we do have Arabic and French interpretations on the IMF Regional Economic Outlook page and IMF Press Center. So please join us there and we have interpretations also in the room. I’m joined here today by Jihad Azour, the Director of the Middle East and Central Asia Department here at the IMF and he’s going to give us an overview of the outlook for the region. Jihad over to you.

MR. AZOUR: Angham, thank you very much. Good morning everyone and welcome to the 2024 Annual Meetings. Before taking your questions, I will make few brief remarks to highlight three key messages regarding the economic outlook for the Middle East and North Africa (MENA), as well as the Caucasus and Central Asia (CCA). First, regarding the outlook, growth is set to strengthen in the near term in both MENA and the CCA regions. However, exposure to broader geoeconomic developments is adding to uncertainty. Hence, our 2025 forecasts come with important caveats.

Let me start with the Middle East and North Africa. This year has been challenging, with conflicts causing devastating human suffering and economic damage. Oil production cuts are contributing to sluggish growth in many economies, too. The recent escalation in Lebanon has increased uncertainty in the MENA region. The second important issue is on growth. For 2024, growth is projected at 2.1 percent, a downgrade revision of 0.6 percent from the April WEO forecast, and this is largely due to the impact of the conflict and the prolonged OPEC+ production cuts. To the extent that these gradually abate, we anticipate stronger growth of 4 percent in 2025. However, uncertainty about when these factors will ease is still very high.

MENA oil exporters are expected to see growth rise from 2.3 percent this year to 4 percent in 2025, contingent on the expiration of the voluntary oil production cuts. Growth in oil importers is projected to recover from 1.5 percent in 2024 to 3.9 percent in 2025, assuming conflicts ease. Let me now turn to the outlook for Caucasus and Central Asia. The CCA regions continue to show robust growth, which was revised up to 4.3 percent in 2024, with growth of 4.5 percent expected for next year. However, some economies are seeing tentative signs of slower trade and other inflows, especially on the remittance side. Subdued oil production is weighing on the medium-term growth prospect for CCA oil exporters. And for oil importers, growth projects depend on the reform implementation. The disinflation process is continuing and is continuing across both MENA and CCA region with headline inflation coming down significantly compared to the peak levels over the past two years. However, inflation remains elevated in few cases due to country specific challenges.

My second point is on the medium-term growth prospects. Medium-term growth prospects have faded over the past two decades and are now relatively weak in many economies. Changing these dynamics requires steady reform implementation. Priorities are for the MENA and CCA regions include governance improvement, job creation, especially for women and youth, investment promotion and financial development. Achieving stronger and more resilient growth will not only foster job creation and greater inclusion, but will also help reduce elevated debt levels and enable progress toward the development of social spending goals.

My third point is on the uncertainty. High uncertainty means that the economic outlook is fraught with risks. The recent intensification of conflict in Lebanon has increased uncertainty and risks to a further level, and the risk of further escalation in the MENA region is the main issue here in terms of increase in risks. This fluid situation is not yet factored in our analysis, and downside risks could be material depending on the extent of the escalation. We are closely monitoring the situation and assessing the potential economic impacts. Overall, the impact will depend on the severity of any potential escalation. The conflict could impact the region through multiple channels. Beyond the impact on output, other key channels of transmissions could include tourism, trade, potential refugee and migration flows, oil and gas market volatility, financial markets and social unrest.

Concern is also high about the possibility of prolonged conflict in Sudan, increased geoeconomic fragmentation, volatility in commodity prices, especially for the oil exporting countries, high debt and financing needs for emerging markets and recurrent climate shocks. In the CCA, risks are primarily associated with potential financial instability resulting from sudden shift in trade and financial flows, and for both regions, failure to implement sufficient reform could constrain already muted prospects for medium term growth.

Before opening the floor to your questions, let me emphasize the Fund’s commitment to supporting economies across the region. Our engagement remains strong in terms of financing and presence. Since early 2020, the Fund has approved $47.7 billion in financing to countries across MENA and CCA and we have carried out capacity development projects for 31 countries only in the last fiscal years. Thank you very much for being here today and I’m now happy to take your questions.

MS. AL SHAMI: So, we’ll now turn to your questions. If you’re on Webex, please turn on your camera and raise your hand and we will call on you. And if you’re in the room, please raise your hand. So let’s start with maybe the middle right here, the gentleman.

QUESTIONER: Hello and good morning, Jihad. I wanted to bring you back to your comments about the risks of an escalation in the region. Obviously, the human toll of this would be horrific, but in terms of the impact on the economies in the region, particularly Egypt, which is already suffering from an extreme loss of revenues from the Suez Canal, and then Lebanon, which you’ve had discussions with in the past, those really never went anywhere because of lack of commitment to do reforms. What are the prospects of having to either redo some of the programs or create new ones if there’s an escalation? Thank you.

MS. AL SHAMI: Thank you, Dave. Maybe we’ll take another question on the conflict. Kyle, second row here.

QUESTIONER: Hi, good morning. Thank you for taking my question. Earlier this morning, the Managing Director said the outlook for the MENA is significantly downgraded and she cited mostly the geopolitical conflict. So could you walk us through, like, where exactly the economic impact has been felt since the April release?

MS. AL SHAMI: Maybe we’ll take those two questions, Jihad, on the conflict.

AZOUR: Thank you very much. Well, first of all, the conflict is inflicting heavy human toll, and our hearts goes to all the victims and those who were, in their life and livelihoods were affected by the escalation of the conflict. Of course, the impact of the conflict is to be differentiated between countries who are at the epicenter. The group of countries who are severely affected by the conflict, Gaza, West Bank, the whole Palestinian economy has been severely affected. Lebanon also. And the Lebanese economy was severely affected, with more than 1.2 million people displaced, which represent almost 25 percent of the population, destruction of livelihoods in a broad region that is mainly agriculture, and the impact on some key sectors like tourism and trade. Therefore, the severely affected countries are seeing a large drop in their economic activity, and they will face contraction in their economies in the context of high inflation.

The second group I would call the group of partially affected countries. And here we have countries like Jordan, Syria and Egypt. And you have mentioned Egypt. The main channel of impact on Egypt is trade. The reduction in trade volume going through the Suez Canal has affected revenues by more than 60 to 70 percent on average for the Suez Canal, which would represent between 4 and a half to , $5 billion of loss in revenues. For Jordan, the impact is mainly on tourism, which is not the case for Egypt. Those are the two main countries affected. Syria of course, is affected, but we have very little information on that. This second group of partially affected countries, authorities have already started to take actions to protect their economies against that. And we have the indirectly affected countries. And here we have to look at the channels of transmission. Trade is one. The other one is the impact on tourism. The impact on oil and gas has been relatively muted so far, except high volatility in the short term. We did not see a major impact on the oil and gas sector yet. I think one has to recognize that it’s a highly uncertain moment and therefore things are changing constantly and we are ourselves updating regularly our assessment of the situation. Our numbers, for example, for the outlook do not report the latest development in the last months or so and therefore we will be updating our numbers. This high level of uncertainty is affecting countries with vulnerabilities. And this is where the Fund is in fact acting in providing support to countries in order to help them go through these severe shocks.

MS. AL SHAMI: Thank you, Jihad. We’ll go for another round of questions. Maybe we’ll go to the first gentleman in the first row, please.

QUESTIONER: Many Arab countries have taken on significant debt to fund infrastructure and economic reforms. What the strategies does the IMF recommend for managing the tracing debt levels, particularly for non-oil economies and taking into consideration what’s happening in the region with all the conflicts.

MS. AL SHAMI: Thank you. We have another question that we received that’s also on debt. What are the projections of the Fund concerning the region’s debt levels amid the ongoing regional tensions?

MR. AZOUR: Thank you for your questions. Well, of course the high level of debt has been one of the main issues that several economies in the region, especially the middle income and the emerging economies of the region are facing. And here I would address the issue in three levels. The level of debt that constitute a major macroeconomic stability issue. And we recommend countries to address this by having an inclusive but sustained fiscal consolidations in order to reduce the risk level, in order to strengthen their capacity to raise revenues and reduce the overall macroeconomic risk. And when the Fund is asked, the Fund is providing support to many countries on that front.

The second dimension is the financing dimension. The overall financing need for this year are going to be around $286 billion, almost $6 billion higher for the whole region in terms of financing need. Compared to last year, this include not only, I would say all importing middle income countries, but the whole region and therefore securing enough financing is another issue. And the third one that is becoming a challenging issue that requires a combination of measures is the cost of debt service. The cost of debt service because of the increase in interest rate has become one of the main, I would say, fiscal issue that countries are facing.

The last point, I would add, is the fact that recently we were witnessing a greater reliance on local markets when it comes to financing the local debt. Therefore, the nexus between the governor, the government and the market and the local market has increased. And this is why it’s important to have a clear medium term reform agenda in order to reduce the weight of the debt, to improve fiscal space, but also to provide more comfort to investors to broaden the finance space.

MS. AL SHAMI: Thank you, Jihad. We’ll turn now to the online questions, and we have Fatima Ibrahim. Fatima, if you’re online, you can come in. Okay. Otherwise we’ll take some questions from the floor. We’ll start maybe with the gentleman in the middle. Yeah.

QUESTIONER: Good morning, this is Adil from Daily Business Recorder, Pakistan. Thank you for taking my question. So the World Economic Outlook projects Pakistan’s growth rate at a higher rate compared to last year, 3.2 percent. The modest growth of 2.4 percent last year was predominantly driven by the agriculture sector, which had its best performance in the last two decades, right. The services sector also benefited from agriculture success while the manufacturing was negative. The agriculture sector faces significant downside risks this time. While manufacturing is also highly constrained by high energy tariffs and weak demand locally. Do you think a higher growth rate can be achieved without fiscal expansion the way Pakistan has primed the pump in the past after securing an IMF program? Or do you think it can happen sustainably? Thank you.

MS. AL SHAMI: Thank you. Any other questions on Pakistan before we — any other questions on Pakistan? Okay.

MR. AZOUR: Thank you very much. Yes, the projections are showing that the Pakistani economy will grow at 2.4 percent this year compared to minus 0.2 percent last year and expected for next year to grow at 3.2 percent. This constitutes an improvement at a time where we are seeing also inflation going down from 29 percent last year to 12.6 percent this year and we expect inflation to go down to 10.6 percent next year.

Of course, the reform package that the government of Pakistan has put together has several objectives. One is to achieve fiscal sustainability by addressing some of the long awaited fiscal issues, especially on increasing the share of revenues in order to reduce the deficit, but also to improve the quality of the revenues by addressing some of the issues that existed in terms of tax collection and also in terms of special regimes. Reforming the SOEs is also an important priority that will increase the capacity of Pakistan to provide a greater space for the private sector, level the playing field and increase FDIs by doing so. This will allow the Pakistani economy to be more export driven and also to be ready to attract additional investment.

The monetary policy is also helping by tackling the issue of inflation and also by reducing any construction constraints on capital flows as well as also on the exchange transfers which also with the broad context of reforms will allow additional predictability and will reduce the risks or the constraints on the current account. Therefore, the package of reform that has been set has not only the ambition to strengthen stability in terms of macroeconomic stability and reduced financing risks, but also has the ambition to reform some of the key sectors including the energy and the SOEs, improve the business environment, attract more FDRs and allow the economy to be more export driven which will unleash the potential of the Pakistani economy without having an impact on the current account.

MS. AL SHAMI: Thank you Jihad. We’ll turn now online. I’m going to read your questions because I have them here. Two questions on Egypt. Question is regarding negotiations that Egypt will start with the IMF regarding the timing of implementing the economic reforms. Does the IMF see that any of these can be delayed? And the second point how does the IMF see the situation of the Egyptian economy in light of the recent developments? And have you tested that during your projections regarding growth and energy prices?

If those that want to ask on Egypt we’ll start here — many hands. Yes, the gentleman here.

QUESTIONER: I will speak in Arabic. It’s a technical point, Mr. Jihad. I wanted to ask you about the policies of the Fund that they aim at improving the living standards of the citizens and to reach the most vulnerable population. And during the negotiations, some of those negotiations they contradict with these principles I mean increasing the price of energy. I mean again for floating the price of the pound and adjustment of some prices of the commodities such as power. And this is part of the reform program. Does this apply to the current situation in Egypt in general? Whether I speak about improving the standards of living especially as these put more pressures on the vulnerable population.

MS. AL SHAMI: Please any other questions? We’ll take the gentleman please be brief so we can take other questions.

QUESTIONER: My question like Mrs. Georgieva said today that she’s going to visit Egypt in like within 10 days for like discussing the maybe reassessment in the program and that came in context with President he said that the economic situation it might lead Egypt to like rethinking about the reform program with the IMF. Can you highlight in which points might like Mrs. Georgieva is going to discuss? Are you going to change the program? Are you going to change your condition for reforming program or it’s just going to be trying to convince Egyptian regime that the reform program that you have already agreed is going as usual and as you see like this came in contact with my colleague from Egypt about suffering of increasing price for gas and many other goods and stuff in Egypt. So like what’s going on exactly in this meeting between Ms. Georgieva and President Sisi Thank you.

MS. AL SHAMI: Thank you. We’ll take one last question on Egypt and then we’ll move on the second, third row please.

QUESTIONER: My question is, is there any possibility of increasing the size of Egypt’s long given the widening of the conflict in the Middle east in recent weeks? Thank you.

MS. AL SHAMI: We’ll turn to you Jihad.

MR. AZOUR: Okay. In fact there are three levels of the different questions. One is on the economic situation in Egypt. The second is on the program and the relationship between the Fund and Egypt and also on some of the specific measures. Well, first of all, and I will answer part in Arabic and part in English for the question that came from the online audience. Like other countries in the region, Egypt has been subjected to the impact of the increase in tension due to the conflict. I mentioned earlier, Egypt is a country that is partially affected and mainly the impact was on the revenues from the Suez Canal. Luckily, the impact on tourism was almost muted. We did not see any drop for a sector that employs a large part of the population. Therefore, there are two levels of impact. The direct impact of the conflict and the high level of uncertainty that affects Egypt as much as affect other countries in the region, especially in terms of attracting direct investment and attracting inflows.

On the other side, there are certain number of internal issues that the authorities are dealing with. The high level of inflation is one. Inflation has reached last year35 percent and it’s important if we want to preserve the purchasing power of the people, especially the low- and middle-income people, is to address inflation. The best way to protect the livelihood of people is by reducing the level of price increase. Therefore, the first pillar of the program was to strengthen stability and also protect the economy from external shocks. This economy has been subjected to external shocks over the last four years Covid and then the war in Ukraine and then the recent conflict in the region. And this is where the importance, for example of the flexibility of the exchange rate. The flexibility of the exchange rate will reduce the impact of external shocks that could destabilize the local economy, would give more predictability in terms of capital flows and will reduce the risk of using other type of measures that would have an impact on economic activity.

Therefore, it’s very important to preserve it because it’s the best way to reduce the impact of external shocks on the local economy. Of course, it has to go hand in hand with monetary policy that works on addressing inflation. Inflation is going down and I think this is a positive news. We expect it next year to reach 16 percent. Of course, there are some short term hikes when some of the measures are introduced, but those are usually short lived impact. Therefore, monetary policy is also a priority in order to reduce the macro instability, but also reduce the pressure on the low middle income people. Three is we need to create growth. Also, we’re happy to see that the growth prospects for next year are improving 4 percent for the fiscal year 2025. But I think we can do more. How to do more is by allowing the private sector to be investing, creating jobs. And the best way to do it is for the state to give more space to the private sector and also for the state to be, I would say allowing them the competition to take place. And this requires to accelerate some of the reforms of the SOEs, including increasing the private sector share in those investments.

The program has been built based on those objectives and when shocks occurred, the Fund responded very quickly. We have increased the size of the program from $3 billion to $8 billion in the last review that took place in April. Taking into consideration that Egypt has been subjected to the shock of the conflict. The other also positive element that FDIs have increased with 35, 34 billion dollars of investment from UAE. I think this provided additional needed investment and also needed inflow. And we hope that this investment will be one of the elements that will bring growth to Egypt. Therefore, in terms of inflows Egypt has been receiving, in addition to what the Fund has provided, what the UAE has provided also additional financing from bilateral and multilateral institutions. The World Bank, the EU have increased their financing to Egypt and therefore, going back to the question, should we revisit the size of the program? I think the macroeconomic conditions today are showing that the program as it’s designed and its finance is still appropriate.

On the question of some of the specific. The impact of some of the specific measures here, I think we have to differentiate between two dimensions. There are certain measures who have impact and those need to be countered by some other measures, especially on the social front. And we are happy to see that the various programs that exist, Takaful and Karama and other programs are activated in order to address some of these issues. Whenever you introduce those kind of fiscal measures, you need to protect the most vulnerable. You need to allow the mostly affected and those who have limited capacity to be protected. And therefore, when you do so, it allows you to create fiscal buffers, especially on the revenue side, to make it fairer and more effective i.e.not to have all the tax burden on the low income or middle-income people through consumption tax to increase the progressivity in the tax system, but also on the other hand, to provide more on the social protection level the program has in it.And the Fund team is working with authorities on the way to make sure that what is in the program is sufficient enough and what needs to be done to improve the outreach of the social program. And during the visit of the MD, this will be one of the priority issues that the MD will raise and will discuss is how effective the social protection programs are. Therefore, I think whenever you have to address imbalances that have been there for some time, there are some consolidation. But you want to make sure that this consolidation is growth friendly, is inclusive and also it provides sustainable economic transformation.

This is how the program has been designed. It has been designed to live in a shock prone world. It has been designed in order to allow the economy to be more geared toward growth that is driven by export and create more opportunities. Of course the uncertainty in the region is high. We take this into consideration and earlier I mentioned that we are constantly looking at the impact. We’re looking also at the potential escalations and what does it mean for our countries.

But again, I think it’s important in the case of Egypt as well as also in Jordan. Those programs provide an anchor of stability at a time of uncertainty. I think there is a great value of those programs. We saw it in Jordan with the upgrade of Jordan in terms of rating. Those programs provide an anchor of stability, and I think what the region needs today is stability. And this is on that premise that we are engaging with countries in the region, and we are in fact we’re ready to engage and to provide more support.

MS. AL SHAMI: Thank you, Jihad. Let’s turn to the room. Maybe we’ll go to the gentleman in the back. Yes, right here. Thank you.

QUESTIONER: He will ask the question in Arabic. In light of the environment in the GCC region, what are your projections for growth and specifically the Kingdom of Saudi Arabia, your projections for growth?

MR. AZOUR: No doubt, no doubt that the GCC countries have managed over the past years to adapt to a large number of shocks and challenges that are being witnessed in the region and the whole world. Starting from COVID pandemic and oil shocks. And oil countries and GCC countries have maintained a certain level of growth despite the fact that there was the OPEC+ and its agreements.

For 2024, our projections are better than 2023. The growth is about 1.2 percent in 2024 and will improve in 2025 to reach 4.2 percent in 25. And this is very important if we put this in the framework of the fact that the main driving force behind the growth in the GCC countries is the development of non-oil economy. And this is a very important element. The development of non-oil economy was a main leverage for growth and the Gulf countries maintained a good level of growth ranging between 3 to 4 percent for non-oil growth under our investments that are aimed to develop other economic sectors in the future such as renewable energy as well as technology which contribute to increasing the capacity of these countries to increase the revenue, to diversify the sources of revenue for the economy and to adapt to the economic changes all over the world.

With regard to economy of Saudi Arabia, we expect that this year the growth will be 1.5 percent which is an improvement as compared to growth last year which was minus 0.2 percent. And for next year it will be 4.6 percent for Saudi Arabia. What has contributed to this in the first place? The economic development, non-oil economy in the Kingdom of Saudi Arabia and also the production which has been improving and also the unwinding of the OPEC agreement. And again the question.

MS. AL SHAMI: If not, we’ll turn to the room. Maybe the — yes. . Yes, we can hear you now.

QUESTIONER: Good evening. Thank you and good evening. Mr. Jihad, I would like to ask in Arabic my question. What made the IMF expect that the growth will be 2.9 percent for Jordan next year compared to 2.5 percent this year. In light of the continuing war in the Middle East. This is first. Second question. The IMF in its last review has said that the revenue of Jordan have decreased, whereas other estimates would say that the revenue have increased. How would you interpret these different estimates or different numbers? And what can Jordan do to increase its revenues? Thank you,Also a few questions.

MS. AL SHAMI: Please be brief. Thank you.

QUESTIONER: Hello, can you hear me well?

MS. AL SHAMI: Yes, we can hear you.

QUESTIONER: Thank you for this opportunity. First of all, to ask my questions. I would like to ask you about the upcoming COP 29 conference which is scheduled to be held in Azerbaijan very soon. And what are specific initiatives that the IMF plans to support during the conference to promote sustainable development?

MS. AL SHAMI: We lost — okay, I think we can’t hear you, but we’ll come back. Maybe we’ll take one in the room. Yes, please.

QUESTIONER: I’m from Kazakhstan. So my question is, how do you evaluate the effect of the war in Ukraine on the economies of Central Asian region, specifically my country, Kazakhstan? Because we’re located too close to Russia and my country has the same border with it, and we are tied economically.

MS. AL SHAMI: Thank you. So that was a question on Kazakhstan and we had an earlier question, Azerbaijan. You want to have one final question before we turn to you, Jihad.

QUESTIONER: I have a question about the main obstacles to foreign investment in Saudi Arabia and what the authorities can do in order to improve that. Thank you.

MR. AZOUR: Thank you. The first question I think is about the economic impact in Jordan of the war. Of course, the Jordanian economy is close to the hot area. Jordan was affected in tourism, as I said before. And this impact on tourism also affected the economy in Jordan. Also trade and the Aqaba port. The impact continues, but no doubt the uncertainty and the fluidity is very high. However, last year and this year Jordan managed to maintain economic stability and to achieve an acceptable growth rate, 2.3. This year we expect it to improve to 2.5 percent if the situation continues as it is and there was no more escalation in the region. We attribute this to the measures taken by the government in the previous years in order to improve the performance of the economy and to achieve stabilization.

The Jordanian economy proved to be resilient despite the tensions. The additional good factor is that inflation is low. And the Central bank of Jordan managed to keep low inflation at 1.8 percent this year, which contributes to the easing of monetary policy. With regard to the point about the revenues, the amount of revenues, I’ll go back to you when I talk with the team. But what I want to say is that in the past few years Jordan achieved successes in raising revenues which contributed to lower deficits and better stability, which enabled Jordan to secure the main financial needs and to keep stability and to increase investments and financial flows. And we’ve seen this improvement at the beginning of this year in the form of the higher rating agencies rating for Jordan.

The COP 29 the COP 29 the Fund has been an important partner to Azerbaijan for the preparation of the COP 29. As you know, last year and before, the Fund has been extremely involved and the Fund has scaled up its support to members on the climate side by providing programs to help countries accelerate their transformation and finance long term climate priorities. The Fund is also mainstreaming the climate issues in the surveillance and is providing a wealth of knowledge on the priorities, including for the Caucasus and Central Asia region where the Fund has recently produced a series of analytical pieces about the importance of adaptation for the region as well as also how to tackle the issue of mitigation and climate finance. And I would encourage you and others to look at those. Those are important pieces that will be featured during the COP 29. Of course, we had recently during this week meetings with the authorities and the Fund is looking forward to maintain its active partnership with the authorities and play an important role in COP 29.

The last question was impact of the conflict between Russia and Ukraine on CCA countries and in particular on Kazakhstan. Of course, let me say a few words on that. Countries in the CCA in general have been able over the last four years and specifically over the last two years to protect their economies from the negative impact of the war in Ukraine and at the same time they were able to address the other risk that was coming from the increase in inflation or inflationary pressure. When it comes to Kazakhstan, we project growth this year to be at 3.5 percent and we expect it to improve next year and reach 4.6 percent. Of course, part of it is also due to the new investments in energy and in the new the new oil and gas fields, but also to the good performance of the non-oil sector.

Clearly here also the level of uncertainty is high, and we recommend countries to maintain on one hand their reform drive to preserve macroeconomic stability and on the other hand to accelerate structural reforms to regain levels of growth that would be needed in order to allow economic convergence between Central Asia and Caucasus countries with their peers to this gap to widen. And this afternoon we will. Sorry. Tomorrow we will have a special session on the medium-term growth priorities, including the structural reforms. And we will tackle some of the priorities for Kazakhstan as well as also other Central Asian countries.

The last question is obstacles to investment in Saudi Arabia. This is the last question. You want it in Arabic or English? In Arabic. If we look at the past few years under Vision 2030, you will see that there are some reforms that have contributed primarily to the improvement of the investment climate and to increase the growth rate outside of the government scope. There was lower unemployment, especially among the youth, and also an increase in the participation of women. And this has improved things despite all the volatilities and all the oil production cuts. These reforms and investment projects that were adopted improve the size of the economy and make it more able to attract investments in the oil sector and also other like entertainment and technology.

In the past year there was a revisiting of the priorities, and the priority was more priority was given to technology, AI, climate. All of this opens the door for more direct investment from abroad as in Saudi Arabia, also in the region. Direct investment in the past 10 years was not as aspired. There are internal reasons and also regional reasons because of the volatility and also because the global economic development reduced direct investments in the region.

MS. AL SHAMI: Today’s briefing. Thank you very much all for joining us today. Jihad, any final words on the launch?

MR. AZOUR: One, I would like to thank you very much again, I would like to ask you to remain tuned. I mentioned in my opening that the volatility of the situation requires from us and the high level of uncertainty to keep ourselves updated and to keep updating you. This afternoon we will. Sorry. Tomorrow afternoon we will have an interesting session that looks into not the short-term where the level of uncertainty is extremely high, but the medium-term. What are the priorities in terms of growth? What are the priorities also in terms of investment? We will launch officially with the details with the tables the outlook in Dubai next week. It will be on October 31st and then immediately also we will launch the outlook for Caucuses and Central Asia.

Tomorrow at 3pm I would like to invite you all for an interesting session where we are going to discuss one of our key analytical chapters that has to focus on medium term growth. With that, thank you very much. I’m sure there are follow up questions. Myself and the team who is here will be ready to provide you with additional answers to your questions.

MS. AL SHAMI: Thank you all. Thank you very much.

* * * * *

IMF Communications Department

MEDIA RELATIONS

PRESS OFFICER: Angham Al Shami

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

@IMFSpokesperson

MIL OSI Economics –

January 25, 2025

MIL-OSI USA: Cantwell Celebrates 67 New Affordable Homes At Airway Heights Ribbon-Cutting Ceremony

US Senate News:

Source: United States Senator for Washington Maria Cantwell

10.24.24

Cantwell Celebrates 67 New Affordable Homes At Airway Heights Ribbon-Cutting Ceremony

In addition to 51 new rental units, Highland Village Phase II will include 16 for-sale affordable homes; A Cantwell-championed federal program covered $13.2 million, or 62% of total project cost

AIRWAY HEIGHTS, WA – Today, U.S. Senator Maria Cantwell (D-WA) joined Community Frameworks, Habitat for Humanity-Spokane, and other community leaders in celebrating the grand opening of Highland Village Phase II. The project will add 67 affordable homes to an affordable apartment complex in Airway Heights focused on providing a mixed-income community of multifamily rental and homeownership homes.

Highland Village Phase II was paid for in part by the Low-Income Housing Tax Credit (LIHTC), a federal housing program championed by Sen. Cantwell. LIHTC funds covered $13.198 million of the total project cost.

“It’s all about just having a place to call home. We sometimes take that for granted, but then we meet individuals who don’t have that opportunity, and you see how precious it really is — it gives people a start. It gives people an opportunity to get back on their feet, to have the life that they want to have,” Sen. Cantwell said. “I think most people in America get it: Build more supply, and you’ll drive down price. But here we’re building more in Highland Village, so that we can bring down the price and give people options.”

The Highland Village development is a multi-year effort. The second phase included a mix of 51 apartment homes completed by Community Frameworks and 16 single family homes for affordable homeownership completed by Habitat for Humanity. The rental homes will be available this fall, and the Habitat homes will be available by December of 2024, with the families moving in throughout the fall and winter. Additional phases of Highland Village will continue through 2026.

Sen. Cantwell has been a longtime supporter of affordable housing and the Low-Income Housing Tax Credit and is currently the leading Senate proponent of a pending tax package that would significantly boost the LIHTC program. That legislation was approved by the House earlier this year on an overwhelming bipartisan vote and includes two provisions authored by Sen. Cantwell to enhance LIHTC, which together represent the most significant investment in affordable housing in the last 35 years.

Since its creation in 1986, LIHTC has helped pay for 90% of the federally-funded affordable housing construction across the country, and has financed over 3.8 million affordable homes, including more than 100,000 in Washington state. The economic activity that the credit generated has supported nearly 170,000 jobs and generated more than $19 billion in wages.

More information about Sen. Cantwell’s work to include an expansion to the LIHTC program in the bipartisan tax package is available HERE.

Photos of today’s grand opening are HERE; video of Sen. Cantwell’s remarks are HERE; and a transcript is HERE

MIL OSI USA News –

January 25, 2025

MIL-OSI Australia: More Government services under one roof on the Gold Coast

Source: Ministers for Social Services

25 October 2024

Joint with:

THE HON BILL SHORTEN MP
MINISTER FOR THE NATIONAL DISABILITY INSURANCE SCHEME
MINISTER FOR GOVERNMENT SERVICES

THE HON JULIAN HILL MP
ASSISTANT MINISTER FOR CITIZENSHIP AND MULTICULTURAL AFFAIRS

Government services are now more accessible for people on the Gold Coast, with citizenship testing now available at Services Australia’s Biggera Waters Service Centre.

Biggera Waters is the first citizenship testing site for the Gold Coast, and the first Services Australia service centre to deliver such large-scale testing – offering up to 100 tests a week.

The service is now available at 44 service centres across the country, with Services Australia delivering more than 2,800 tests every month.

Citizenship testing at the Biggera Waters Service Centre is a partnership between Services Australia and the Department of Home Affairs.

The test consists of 20 multiple choice questions to demonstrate an applicants’ knowledge of Australia, the English language, understanding of what it means to become an Australian citizen and their commitment to Australian values.

Biggera Waters Service Centre is located at 97-99 Brisbane Road Biggera Waters, and is open from 8:30am – 4:30pm, Monday to Friday.

The Department of Home Affairs allocates the date, time and place of appointments, which can be rescheduled through the Department online.

More information on citizenship testing can be found at the Department of Home Affairs website, and more information on Biggera Waters Service Centre can be found at the Services Australia website.

Quotes attributable to Minister for Government Services the Hon. Bill Shorten MP

“Bringing multiple services together under one roof is the kind of sensible approach to government services people expect, and we’re delivering on that.”

“Thanks to this fantastic partnership between Services Australia and the Department of Home Affairs, more than 2,800 citizenship tests are happening at Services Australia service centres nationally every month.”

“Before the Biggera Waters Service Centre offered citizenship testing, people living on the Gold Coast or Logan had to travel up the M1 to the Brisbane CBD, or to Tweed Heads, to sit a test.”

“Not only are we saving South East Queenslanders time, we’re ensuring they have easily accessible, face-to-face government services when they need it.”

“This is just one of the many ways we’re making face-to-face government services easier to access for all Australians.”

Quotes attributable to Assistant Minister for Citizenship and Multicultural Affairs, the Hon. Julian Hill MP

“Citizenship is the common legal bond that binds, protects and empowers Australians as a people.”

“Citizenship testing is an integral part of the Citizenship process, and this partnership with Services Australia makes it more accessible for people on the Gold Coast.”

“More than 150,000 people complete a Citizenship test nationally each year, with Services Australia facilitating almost 20 per cent of those tests last financial year.”

“These numbers demonstrate Services Australia’s critical role in the citizenship process, with thousands expected to benefit from this new service at Biggera Waters.”

MIL OSI News –

January 25, 2025

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

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

Stan

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

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

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

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

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

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

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

Diluting a powerful message

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

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

The show is a $300 million wreck.
Stan

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

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

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

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

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

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

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

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

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

A big fish isn’t always a good fish

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

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

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

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

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

Not camp enough, yet not careful enough

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

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

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

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

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

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

MIL OSI Analysis – EveningReport.nz –

January 25, 2025

MIL-OSI USA: Senate Intelligence Chairman Mark R. Warner on President Biden’s National Security Memorandum (NSM) on Artificial Intelligence

US Senate News:

Source: United States Senator for Commonwealth of Virginia Mark R Warner
WASHINGTON – Today, Senate Select Committee on Intelligence Chairman Mark R. Warner (D-VA) issued the following statement in response to President Biden’s National Security Memorandum (NSM) on Artificial Intelligence:
“As we have seen just over the last two years, AI technology is rapidly evolving in a way that will have massive consequences for our economy, national security, and even democracy. I am heartened to see the administration recognize this very fact and take a leadership role to advance AI capabilities while simultaneously promoting responsible research, strong governance that ensures trust and safety, and the protection of human and civil rights.
“I am also gratified to see that the NSM appears to implement many of the legislative proposals I have advanced, including requirements to promote AI security research and address AI cyber vulnerabilities. However, as the chair of the Senate Intelligence Committee I am also acutely aware of the many threats to our AI efforts. I encourage the administration to work in the coming months with Congress to advance a clearer strategy to engage the private sector on national security risks directed at AI systems across the AI supply chain.”

MIL OSI USA News –

January 25, 2025

MIL-OSI Global: South Africa amended its research guidelines to allow for heritable human genome editing

Source: The Conversation – Canada – By Françoise Baylis, Distinguished Research Professor, Emerita, Dalhousie University

New genome editing technologies mean that the genetic modification of embryos is a scientific possibility, and laws governing its practice require extensive public consultation. (Shutterstock)

A little-noticed change to South Africa’s national health research guidelines, published in May of this year, has put the country on an ethical precipice. The newly added language appears to position the country as the first to explicitly permit the use of genome editing to create genetically modified children.

Heritable human genome editing has long been hotly contested, in large part because of its societal and eugenic implications. As experts on the global policy landscape who have observed the high stakes and ongoing controversies over this technology — one from an academic standpoint (Françoise Baylis) and one from public interest advocacy (Katie Hasson) — we find it surprising that South Africa plans to facilitate this type of research.

In November 2018, the media reported on a Chinese scientist who had created the world’s first gene-edited babies using CRISPR technology. He said his goal was to provide children with resistance to HIV, the virus that causes AIDS. When his experiment became public knowledge, twin girls had already been born and a third child was born the following year.

The fate of these three children, and whether they have experienced any negative long-term consequences from the embryonic genome editing, remains a closely guarded secret.

Controversial research

Considerable criticism followed the original birth announcement. Some argued that genetically modifying embryos to alter the traits of future children and generations should never be done.

Genetically modifying embryos to alter the traits of future children and generations has immense societal impacts.
(Shutterstock)

Many pointed out that the rationale in this case was medically unconvincing – and indeed that safe reproductive procedures to avoid transmitting genetic diseases are already in widespread use, belying the justification typically given for heritable human genome editing. Others condemned his secretive approach, as well as the absence of any robust public consultation, considered a prerequisite for embarking on such a socially consequential path.

In the immediate aftermath of the 2018 revelation, the organizing committee of the Second International Summit on Human Genome Editing joined the global uproar with a statement condemning this research.

At the same time, however, the committee called for a “responsible translational pathway” toward clinical research. Safety thresholds and “additional criteria” would have to be met, including: “independent oversight, a compelling medical need, an absence of reasonable alternatives, a plan for long-term follow-up, and attention to societal effects.”

Notably, the additional criteria no longer included the earlier standard of “broad societal consensus.”

Nobel laureate David Baltimore, chair of the organizing committee for the Second International Summit on Human Genome Editing, talks about the importance of public global dialogue on gene editing.

New criteria

Now, it appears that South Africa has amended its Ethics in Health Research Guidelines to explicitly envisage research that would result in the birth of gene-edited babies.

Section 4.3.2 of the guidelines on “Heritable Human Genome Editing” includes a few brief and rather vague paragraphs enumerating the following criteria: (a) scientific and medical justification; (b) transparency and informed consent; (c) stringent ethical oversight; (d) ongoing ethical evaluation and adaptation; (e) safety and efficacy; (f) long-term monitoring; and (g) legal compliance.

While these criteria seem to be in line with those laid out in the 2018 summit statement, they are far less stringent than the frameworks put forth in subsequent reports. This includes, for example, the World Health Organization’s report Human Genome Editing: Framework for Governance (co-authored by Françoise Baylis).

Alignment with the law

Further, there is a significant problem with the seemingly permissive stance on heritable human genome editing entrenched in these research guidelines. The guidelines clearly require the research to comply with all laws governing heritable human genome research. Yet, the law and the research guidelines in South Africa are not aligned, which entails a significant inhibition on any possible research.

This is because of a stipulation in section 57(1) of the South African National Health Act 2004 on the “Prohibition of reproductive cloning of human beings.” This stipulates that a “person may not manipulate any genetic material, including genetic material of human gametes, zygotes, or embryos… for the purpose of the reproductive cloning of a human being.”

When this act came into force in 2004, it was not yet possible to genetically modify human embryos and so it’s not surprising there’s no specific reference to this technology. Yet the statutory language is clearly wide enough to encompass it. The objection to the manipulation of human genetic material is therefore clear, and imports a prohibition on heritable human genome editing.

Ethical concerns

The question that concerns us is: why are South Africa’s ethical guidelines on research apparently pushing the envelope with heritable human genome editing?

In 2020, we published alongside our colleagues a global review of policies on research involving heritable human genome editing. At the time, we identified policy documents — legislation, regulations, guidelines, codes and international treaties — prohibiting heritable genome editing in more than 70 countries. We found no policy documents that explicitly permitted heritable human genome editing.

It’s easy to understand why some of South Africa’s ethicists might be disposed to clear the way for somatic human genome editing research. Recently, an effective treatment for sickle cell disease has been developed using genome editing technology. Many children die of this disease before the age of five and somatic genome editing — which does not involve the genetic modification of embryos — promises a cure.

Somatic genome editing may provide a cure for sickle cell disease.
(Shutterstock)

Implications on future research

But that’s not what this is about. So, what is the interest in forging a path for research on heritable human genome editing, which involves the genetic modification of embryos and has implications for subsequent generations? And why the seemingly quiet modification of the guidelines?

How many people in South Africa are aware that they’ve just become the only country in the world with research guidelines that envisage accommodating a highly contested technology? Has careful attention been given to the myriad potential harms associated with this use of CRISPR technology, including harms to women, prospective parents, children, society and the gene pool?

Is it plausible that scientists from other countries, who are interested in this area of research, are patiently waiting in the wings to see whether the law in South Africa prohibiting the manipulation of human genetic material will be an insufficient impediment to creating genetically modified children? Should the research guidelines be amended to accord with the 2004 statutory prohibition?

Or if, instead, the law is brought into line with the guidelines, would the result be a wave of scientific tourism with labs moving to South Africa to take advantage of permissive research guidelines and laws?

We hope the questions we ask are alarmist, as now is the time to ask and answer these questions.

Katie Hasson, Associate Director at the Center for Genetics and Society, co-authored this article.

Françoise Baylis is affiliated with the International Science Council, the UNESCO World Commission on the Ethics of Scientific Knowledge and Technology (COMEST) and the Royal Society of Canada.

– ref. South Africa amended its research guidelines to allow for heritable human genome editing – https://theconversation.com/south-africa-amended-its-research-guidelines-to-allow-for-heritable-human-genome-editing-241136

MIL OSI – Global Reports –

January 25, 2025

MIL-OSI China: 7th World Voice Expo kicks off in Hefei, E China

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

7th World Voice Expo kicks off in Hefei, E China

Updated: October 25, 2024 09:48 Xinhua

Visitors experience multilingual full-screen simultaneous translation service provided by iFlytek at the 7th World Voice Expo in Hefei, east China’s Anhui Province, Oct. 24, 2024. The 7th World Voice Expo and the iFlytek 1024 Global Developer Festival kicked off here on Thursday. The latest achievements and application of AI technology will be on display at the four-day event. [Photo/Xinhua]

A humanoid robot demonstrates its walking capability at the 7th World Voice Expo in Hefei, east China’s Anhui Province, Oct. 24, 2024. [Photo/Xinhua]

Visitors watch a robot playing go at the 7th World Voice Expo in Hefei, east China’s Anhui Province, Oct. 24, 2024. [Photo/Xinhua]

A boy tries an AI-driven pad for learning assistance at the 7th World Voice Expo in Hefei, east China’s Anhui Province, Oct. 24, 2024. [Photo/Xinhua]

A humanoid robot takes selfies with a visitor at the 7th World Voice Expo in Hefei, east China’s Anhui Province, Oct. 24, 2024. [Photo/Xinhua]

Visitors learn about an AI-driven machine for air conditioner quality inspection displayed at the 7th World Voice Expo in Hefei, east China’s Anhui Province, Oct. 24, 2024. [Photo/Xinhua]

Visitors look at robotic dogs at the 7th World Voice Expo in Hefei, east China’s Anhui Province, Oct. 24, 2024. [Photo/Xinhua]

A visitor takes pictures of an AI-driven coffee-making robot at the 7th World Voice Expo in Hefei, east China’s Anhui Province, Oct. 24, 2024. [Photo/Xinhua]

A staff member (1st L) introduces an intelligent marking machine to visitors at the 7th World Voice Expo in Hefei, east China’s Anhui Province, Oct. 24, 2024. [Photo/Xinhua]

Visitors learn about a robot for evaluation of human-computer interaction inside intelligent cabins at the 7th World Voice Expo in Hefei, east China’s Anhui Province, Oct. 24, 2024. [Photo/Xinhua]

A boy looks at a robotic arm creating traditional Chinese painting at the 7th World Voice Expo in Hefei, east China’s Anhui Province, Oct. 24, 2024. [Photo/Xinhua]

Visitors experience an integrated physical examination unit at the 7th World Voice Expo in Hefei, east China’s Anhui Province, Oct. 24, 2024. [Photo/Xinhua]

MIL OSI China News –

January 25, 2025

MIL-OSI China: Xi urges ‘BRICS Plus’ to pursue common security and development, harmony among civilizations

Source: China State Council Information Office

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

Chinese President Xi Jinping on Thursday called on “BRICS Plus” countries to strive for common security, common development and harmony among civilizations.

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

Noting that the collective rise of the Global South is a distinctive feature of the great transformation across the world, Xi said that Global South countries marching together toward modernization is monumental in world history and unprecedented in human civilization.

Meanwhile, peace and development still faces severe challenges and the road to prosperity for the Global South will not be straight, he pointed out, urging “BRICS Plus” countries to use collective wisdom and strength and stand up to their responsibility for building a community with a shared future for mankind.

Xi said that “BRICS Plus” countries should uphold peace and strive for common security, come forward together to form a stabilizing force for peace, strengthen global security governance, and explore solutions to address both symptoms and roots of hotspot issues.

He said that many parties have warmly responded to the Global Security Initiative he proposed. “Under the Initiative, we have made prominent progress in maintaining regional stability and in many other areas,” he said, adding that China and Brazil jointly issued the six-point consensus and launched the group of Friends for Peace on the Ukraine crisis together with other Global South countries.

He also called on “BRICS Plus” countries to promote early deescalation to pave the way for political settlement.

Last July, Palestinian factions reconciled with each other in Beijing, marking a key step toward peace in the Middle East, he noted. “We should continue to promote comprehensive ceasefire in the Gaza Strip and revive the two-State solution. We must stop the flames of war from spreading in Lebanon and end the miserable sufferings in Palestine and Lebanon,” Xi stressed.

Noting that the Global South emerges for development and prospers through development, Xi said that “BRICS Plus” countries should reinvigorate development and strive for common prosperity, be the main driving force for common development, play an active and leading role in the global economic governance reform, and make development the core of international economic and trade agenda.

He said that the Global Development Initiative, since its introduction three years ago, has helped make available nearly 20 billion U.S. dollars of development fund and launch more than 1,100 projects. And recently the Global Alliance on Artificial Intelligence for Industry and Manufacturing Center of Excellence has been established in Shanghai.

China will build a World Smart Customs Community Portal and a BRICS Customs Center of Excellence, he noted, adding that China welcomes active participation by all countries.

Stressing that diversity of civilization is the innate quality of the world, Xi called on “BRICS Plus” countries to promote together development of all civilizations and strive for harmony among them, be advocates for exchanges among civilizations, enhance communication and dialogue, and support each other in taking the path to modernization suited to their respective national conditions.

He noted that the Global Civilization Initiative he proposed is exactly for the purpose of building a garden of world civilizations “in which we can share and admire the beauty of each civilization,” he said, adding that China will coordinate with others to form a Global South Think Tanks Alliance to promote people-to-people exchanges and experience-sharing in governance.

Xi stressed that the Third Plenary Session of the 20th Central Committee of the Communist Party of China made systemic plans for further deepening reform comprehensively to advance Chinese modernization, which will provide more opportunities for the world.

“Last month, we held in Beijing a successful summit of the Forum on China-Africa Cooperation and announced ten partnership actions for China and Africa to jointly advance modernization. This will instill new energy for the Global South on its way toward modernization,” he said.

Xi also said that no matter how the international landscape evolves, “we in China will always keep the Global South in our heart, and maintain our roots in the Global South.”

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

MIL OSI China News –

January 25, 2025

MIL-OSI Security: AUKUS Partners Complete Successful Tests of Autonomous and Networked Systems in Maritime Experimentation

Source: United States INDO PACIFIC COMMAND

In a significant development for maritime security, the United States, Australia, and the United Kingdom (AUKUS) have completed successful tests of several autonomous and networked systems during a three-week maritime experimentation called Autonomous Warrior 24 in Australia. The event was part of the Maritime Big Play (MBP) initiative and ongoing efforts to develop AUKUS Pillar II capabilities, a trilateral collaboration to improve maritime awareness through networked autonomy, decision advantage, and enhanced strike.

The Maritime Big Play is a series of integrated trilateral experiments and exercises that are enhancing capability development, improving interoperability, and increasing the sophistication and scale of autonomous systems in the maritime domain. Australia led the Autonomous Warrior event, the signature MBP event in 2024. Other events associated with Maritime Big Play included the Robotic Experimentation and Prototyping Augmented by Maritime Unmanned Systems (REPMUS); and Technology Readiness Experimentation (T-REX).

Through these experiments and exercises, AUKUS partners are further testing and refining the ability to jointly operate uncrewed maritime systems, share and process maritime data from all three nations, and provide real-time maritime domain awareness to support decision-making.

“Autonomous Warrior/Maritime Big Play creates a unique opportunity for our three countries to work together, which will ultimately improve operational efficiency and allow us to work more cohesively against common threats,” said Heidi Shyu, Under Secretary of Defense for Research and Engineering. “This collaborative approach enables us to reduce acquisition, maintenance, and training cost by creating economies of scale.”

The technologies tested during the October event support operations from deep under water to the edge of space. This included software-defined acoustic modems, multi-model autonomous underwater and surface vessels, and low-cost attritable unmanned surface vehicles. The tests also featured a low-cost gondola, which supports operations in the upper stratosphere with minimum manpower or logistics requirements, and T-200 high-altitude balloons, which provide resilient communications in denied environments from the stratosphere.

A versatile and robust software-defined network architecture called Multi-Domain Uncrewed Secure Integrated Communications (MUSIC) was tested for its ability to enable seamless communication and coordination across diverse unmanned systems and operational environments. The Common Control System (CCS) was also featured in the exercise, built on an open architecture to provide uncrewed vehicles hardware and software that works across several different systems. This effort supports future work to create an AUKUS-wide Common Control System, fusing best elements of the three countries’ existing systems.

“AUKUS partners have long histories of working together on defense and security issues, and have deep, enduring partnerships based on shared values, said Shyu. “By investing in novel and innovative capabilities directly aligned to AUKUS mission priorities, as well as making future advancements in emerging technologies like AI and Quantum, we support a more stable region — one where all nations are empowered to make their own sovereign decisions free from coercion — a world that centers on hope for the opportunity and prosperity of the future.”

MIL Security OSI –

January 25, 2025

MIL-OSI China: WIC Wuzhen Summit to open in November

Source: China State Council Information Office 2

Tourists visit the water town Wuzhen on rowing boats in Jiaxing City, east China’s Zhejiang Province, April 11, 2024. [Photo/Xinhua]
The 2024 World Internet Conference (WIC) Wuzhen Summit is scheduled to take place from Nov. 19 to 22 in the water-town of Wuzhen, located in east China’s Zhejiang Province, and will feature four key highlights, according to a press conference held on Thursday.
During this year’s summit, a distinguished contribution award will be established to recognize individuals and companies who have made outstanding contributions to the field of the global internet.
Under the WIC framework, the summit will also see the establishment of a special committee on artificial intelligence (AI), the launch of a think tank cooperation program, and the creation of an international digital training institute.
Themed “Embracing a People-centered and AI-for-good Digital Future — Building a Community with a Shared Future in Cyberspace,” the 2024 edition will feature 24 sub-forums on topics such as Global Development Initiative, digital economy, and data governance, as well as a series of activities.
Since 2014, the Wuzhen Summit has been successfully held for ten consecutive years. Currently, the WIC includes about 170 institutions, organizations, companies, and individuals from over 30 countries and regions across six continents as its members.

MIL OSI China News –

January 25, 2025

MIL-OSI Asia-Pac: President Lai and Vice President Hsiao attend opening of Presidential Office Building permanent and special exhibitions

Source: Republic of China Taiwan

President Lai and Vice President Hsiao attend opening of Presidential Office Building permanent and special exhibitions
President Lai and Vice President Hsiao attend opening of Presidential Office Building permanent and special exhibitions
2024-10-19

On the morning of October 19, President Lai Ching-te and Vice President Bi-khim Hsiao attended the opening of the Presidential Office Building’s all-new permanent exhibition, Together as One with Taiwan: The Ark of Democracy, and special exhibition, Super Taiwan Comics! The Flavors of Taiwan in Ink. In remarks, President Lai stated that the permanent exhibition, with the theme “Ark of Democracy,” has cross-disciplinary, cross-generational, and “cross-universe” features, and symbolizes how the people of Taiwan are all navigators of this Ark. He said that we will continue guiding the nation forward together with democracy and unity, and welcomed the public to visit the exhibition. Vice President Hsiao, in remarks, stated that the public can gain a deeper understanding of the historical context of the office as well as of the development of Taiwan through several eras.
In his remarks, President Lai stated that the Democratic Progressive Party (DPP) was born on September 28, 1986 in order to achieve democracy. Over its journey, he said, the DPP has worked together with the Taiwanese people, not just to break free from restrictions on political parties and the media, end martial law, call to abolish Article 100 of the Criminal Code, and achieve 100 percent freedom of speech, but also to tirelessly promote direct presidential elections and the complete re-election of the legislature, helping Taiwan shift from authoritarian rule to democracy.
The president said that in 2000, the DPP took office for the first time, opening the Presidential Office Building to the public for weekday tours. This, he said, fully represents the spirit of democracy, as democracy is rule by the people, and the Presidential Office Building is not just the workplace of the president, vice president, and other staff. Its property rights belong to the whole body of citizens, he said, and citizens have the right to enter the Presidential Office Building and learn more about its architecture as well as Taiwan’s past.
President Lai indicated that former President Tsai Ing-wen took the opening up of the Presidential Office Building even further by installing a permanent exhibition, similarly upholding the democratic spirit, and helping the public understand the significance of democracy on an even deeper level. The theme of the previous exhibition, he said, was “Power to the People,” while the theme of the new permanent exhibition, “Ark of Democracy,” envisions democratic Taiwan as an ark on the Pacific Ocean, with peace as our lighthouse; democracy as our compass; freedom, human rights, and the rule of law as our banners; culture and ecological sustainability as our hull; and technology as our driving force. The president said that the people of Taiwan are all navigators of this Ark, and we work together to guide a course of engagement with the world and usher in the future – these are the key concepts of the Ark of Democracy’s curation.
President Lai expressed that the exhibition has three major features. First, he said, it is cross-disciplinary, introducing Taiwan’s rich natural ecology and technological achievements, showing that Taiwan is a diverse ark of ecology, technology, culture, and democracy. Second, he said, it is cross-generational, displaying not only images of the former presidents, but also exhibiting the history of Taiwan’s semiconductor development, civil movements, and democratization, and even explaining the architectural history of the Presidential Office Building in the first-floor corridors. The president said that members of the public who come to visit will be able to clearly understand that Taiwan’s achievements are hard-won and worth cherishing, and that we should unite all the more closely for even greater accomplishments.
President Lai went on to say that the exhibition’s third feature is being “cross-universe,” with one of the exhibits utilizing AI technology to generate multiple universes showing what the world might look like without Taiwan, presenting the technical and futuristic aspects of AI as well as the importance of Taiwan. We will transform Taiwan into an AI island, he said, and this is the first time that AI applications have featured in an exhibition at the Presidential Office Building.
President Lai then remarked on the rich variety of the exhibition content, and thanked the Ministry of Economic Affairs, Ministry of Culture (MOC), Ministry of Agriculture, Ministry of the Interior, and Ministry of Transportation and Communications, whose ministers or deputy ministers were also at the event, for their support. He also offered his gratitude to the staff of the General Association of Chinese Culture for their hard work and dedication, which successfully brought the all-new permanent exhibition to completion.
In addition to the permanent exhibition, the president noted, the MOC has organized Super Taiwan Comics! The Flavors of Taiwan in Ink, a special exhibition that showcases the abundant and diverse creativity in Taiwan’s world of comics. In that world, he said, one can see a different perspective of Taiwan, which is equally admirable. The president, who would soon tour the exhibition with those present, pointed out that at the end of the exhibition there is a photo booth. He welcomed exhibition-goers to have pictures taken with images of him and the vice president and to share them with friends on Facebook or Instagram.
In closing, President Lai again welcomed the people of Taiwan to visit the Together as One with Taiwan: The Ark of Democracy permanent exhibition. All the people of Taiwan, the president emphasized, have the right to visit the Presidential Office Building. He stated that we are all navigators of this Ark of Democracy, and that we will continue guiding the nation forward together with democracy and unity.
Vice President Hsiao then delivered remarks, saying that she is very happy to be with President Lai at today’s “unboxing” of the Presidential Office Building’s permanent exhibition. From the inauguration on May 20 to today, she said, many of our fellow Taiwanese have been asking when they would be able to visit and take pictures at the Presidential Office Building again. She said she is sure that everyone is very much looking forward to visiting, as the building belongs to the whole body of citizens, just as President Lai had said, one that has its own history and bears the important vestiges of our continued pursuit of progress.
Vice President Hsiao remarked that the exhibition is very diverse in content, spanning ecology, democracy, international affairs, technology, and civil movements. Moreover, she emphasized, it showcases Taiwan’s spirit of resilience. The exhibition also goes into the history of the Presidential Office Building and has displays of important laws and objects, she noted, adding that the public can visit and gain a deeper understanding of the historical context of the office as well as of the development of Taiwan through several eras.
Vice President Hsiao pointed out that the “Ark of Democracy” of the title implies that we are all in the same boat. When our international friends visit, she said, they see that even though the island of Taiwan is small, it is home to a diversity of opinions and positions, and that our people are in the end able to find common ground and move forward together. She stated that because we are all in the same boat, we must work together.
Noting that Taiwan’s industry landscape is very diverse, Vice President Hsiao said that this exhibition presents the historical context surrounding the development of our world-renowned high-tech industry. She also underscored how it showcases the people of various sectors and professions who have worked together so that the Taiwanese people can live in peace and happiness and the nation can become even greater.
Vice President Hsiao said that Taiwan has a very diverse ecology. Even though this Ark is very small, when our international friends come here, she said, they notice that Taiwan has mountains, is surrounded by the ocean, and that getting from the coast to a mountain and back again can take as little as 20 to 30 minutes. She pointed out that this diverse ecology is also seen in our Ark of Democracy, which bears the nation’s beauty and its sorrow, as well as its people’s dreams and future. She said she is looking forward to “unboxing” the exhibition with President Lai and the ministry leaders moments from now, but that she is also looking forward to the people of Taiwan taking the time to walk through the Presidential Office Building and share in the glory of our history and Taiwan’s democracy.
Following their remarks, President Lai and Vice President Hsiao took a tour of the exhibits, “Welcome Aboard the Ark of Democracy,” “Presidents of the Republic of China (Taiwan),” “Ecological Treasure Island,” “The Invisible Backbone of Global Technology,” “Taiwan’s Vibrant Democracy, Moving Forward with the World,” “Become One with Us,” and “The Ark Sails Onward,” and the special exhibition of contemporary Taiwan comics, taking in the unique highlights of each area.

MIL OSI Asia Pacific News –

January 25, 2025

MIL-OSI: Beam Global Announces Appointment of Sales Veteran to Lead and Expand Internal and External Sales Teams

Source: GlobeNewswire (MIL-OSI)

SAN DIEGO, Oct. 24, 2024 (GLOBE NEWSWIRE) — Beam Global, (Nasdaq: BEEM), a leading provider of innovative and sustainable infrastructure solutions for the electrification of transportation and energy security, is pleased to announce the appointment of Andy Lovsted as Vice President of Sales. In this role Mr. Lovsted will spearhead Beam Global’s sales strategy to expand the company’s footprint in electric vehicle (EV) infrastructure and energy security markets.

Mr. Lovsted is a proven leader in managing sales for large enterprises and in emerging markets with over 20 years of executive leadership experience in the technology sector. He is recognized for his ability to transform sales organizations and deliver exceptional results, most recently, as Vice President of Sales at Nice North America LLC, previously known as Nortek Security & Control, LLC, one of the largest smart commercial and industrial solutions manufacturing companies in the world. Mr. Lovsted managed a portfolio of products including partnerships with ADT, Brinks Home, Samsung and TELUS, responsible for approximately $500M in annual revenue. His expertise spans various industries including transportation, storage and security technologies where he has been instrumental in launching innovative products and driving significant revenue.

“We are thrilled to welcome Andy to our team at a pivotal moment for Beam Global, to drive growth in commercial and government sectors through optimizing our internal team’s capabilities and, importantly, through the force multiplication effect of engaging agents, resellers and distributors,” said Desmond Wheatley, CEO of Beam Global. “Andy’s proven track record in driving high-performance teams and his extensive experience in growing distribution networks in the technology and automation sectors make him uniquely qualified to scale our sales programs and capture new opportunities in the rapidly expanding markets we target.”

“I’m excited to join Beam Global as the company continues its leadership in providing rapidly deployed, scalable and sustainable EV charging, smart city and energy storage solutions,” said Mr. Lovsted. “The rapid adoption of electric vehicles, increased electrical capacity requirements and evermore challenging environmental conditions make me confident that Beam Global’s innovative products are well-positioned to meet the growing demand while creating a fantastic growth engine. Building a sales team that gets to sell industry leading, unique and patented products that are highly relevant, is exciting, fun and rewarding. I look forward to being at the sharp end of the company’s mission of providing sustainable energy solutions.”

Throughout his career Mr. Lovsted has demonstrated an ability to build and execute effective go-to-market strategies, foster key industry relationships and implement transformative sales initiatives. He focuses on maximizing efficiency, driving accountability and implementing strategic change management to optimize team performance. His background includes driving significant sales and marketing and business development for Hewlett Packard, Seagate, Siemens, Nice and others where he has built and led teams of 100+. Mr. Lovsted holds a Bachelor of Science in Business Administration and Marketing from San Diego State University.

About Beam Global

Beam Global is a clean technology innovator which develops and manufactures sustainable infrastructure products and technologies. We operate at the nexus of clean energy and transportation with a focus on sustainable energy infrastructure, rapidly deployed and scalable EV charging solutions, safe energy storage and vital energy security. With operations in the U.S. and Europe, Beam Global develops, patents, designs, engineers and manufactures unique and advanced clean technology solutions that power transportation, provide secure sources of electricity, save time and money and protect the environment. Headquartered in San Diego with facilities in Chicago, Belgrade and Kraljevo, Beam Global has a deep patent portfolio and is listed on Nasdaq under the symbol BEEM. For more information visit BeamForAll.com, LinkedIn, YouTube and X (formerly Twitter).

Media Contact:
Skyya PR
+1 651-335-0585
Press@BeamForAll.com

Investor Relations:
Core IR
+1 516-222-2560
IR@BeamForAll.com

The MIL Network –

January 25, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

Consolidated Operating Highlights

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

Store Base and Platform Growth

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

U.S. Pawn Segment Operating Results

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

Latin America Pawn Segment Operating Results

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

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

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

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

Cash Flow and Liquidity

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

Shareholder Returns

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

2024 Outlook

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

Pawn Operations:

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

U.S. Pawn

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

Latin America Pawn

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

Retail POS Payment Solutions (AFF) Operations:

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

Interest Expense, Tax Rates and Currency:

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

Additional Commentary and Analysis

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

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

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

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

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

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

About FirstCash

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

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

Forward-Looking Information

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Net revenue		233,756			204,964			14	%

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

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

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

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

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

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

Net revenue		679,284			588,538			15	%

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Retail POS Payment Solutions Operating Results (dollars in thousands)

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

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

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

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

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

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

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

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

Net revenue		195,173		195,015		—	%

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

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

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

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

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


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

Retail POS Payment Solutions Earning Assets (dollars in thousands)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Pawn Operations

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

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

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


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

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

Retail POS Payment Solutions

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

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

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

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

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

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

Adjusted Net Income and Adjusted Diluted Earnings Per Share

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

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

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

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

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

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

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

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

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

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

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

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

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

Free Cash Flow and Adjusted Free Cash Flow

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

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

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

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

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

Adjusted Return on Equity and Adjusted Return on Assets

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

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

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

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

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

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

Constant Currency Results

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

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

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

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

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

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

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

FIRSTCASH HOLDINGS, INC.
INTERSEGMENT TRANSACTIONS
(UNAUDITED)

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

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

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

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

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

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

The MIL Network –

January 25, 2025

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

US Senate News:

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

MIL OSI USA News –

January 25, 2025

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

US Senate News:

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

MIL OSI USA News –

January 25, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

Third Quarter 2024 Highlights (on a linked quarter basis)

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

Deposits and Liquidity

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

Assets and Margin

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

Capital and Returns

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

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

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

Third Quarter Earnings

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

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

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

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

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

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

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

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

Balance Sheet Quarterly Summary

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

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

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

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

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

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

Capital Quarterly Summary

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

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

Conference Call

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

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

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

About Amalgamated Financial Corp.

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

Non-GAAP Financial Measures

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

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

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

Terminology

Certain terms used in this release are defined as follows:

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

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

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

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

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

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

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

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

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

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

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

Forward-Looking Statements

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

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

Consolidated Statements of Income (unaudited)

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

Consolidated Statements of Financial Condition

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

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

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

Select Financial Data

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

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

Select Financial Data

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

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

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

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

Loan and PACE Assessments Portfolio Composition

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

Retail portfolio:

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

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

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

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

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


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

Net Interest Income Analysis

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

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

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

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

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

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

Net Interest Income Analysis

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

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

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

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

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

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

Deposit Portfolio Composition

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

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

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

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

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

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

Asset Quality

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

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

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

Credit Quality

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The MIL Network –

January 25, 2025

MIL-OSI: Legible Announces $2.1 Million Private Placement Unit Offering and Appointment of Chief Technology Officer

Source: GlobeNewswire (MIL-OSI)

VANCOUVER, British Columbia, Oct. 24, 2024 (GLOBE NEWSWIRE) — Legible Inc. (CSE: READ) (OTCQB: LEBGF) (FSE: D0T) (“Legible or “the Company”), a leading platform and innovator in digital literature, announces an offering of units (“Units”) for gross proceeds of $2,100,000 by way of a non-brokered private placement (the “Offering”) pursuant to exemptions from applicable securities laws. Each Unit consists of one common share (“Common Share(s)”) and one whole Common Share purchase warrant (“Warrant(s)”) with each Warrant entitling the holder to acquire 1 Common Share at a price of $0.14, at any time prior to 5:00 pm (PST) on the date that is two years from the closing date. If the volume weighted average trading price of the Common shares is at least $0.40 per Common Share for a period of 5 consecutive trading days, the expiry date of the Warrants may be accelerated by the Company to a date that is not less than 14 days after the date that notice of such acceleration is provided to the Warrant holders by way of a press release.

The Company has received subscription agreements totaling $1.7 Million. Closing may occur in tranches, with the first tranche expected to close on or about October 31, 2024.

Legible is also pleased to announce the appointment of Mr. Andrew Nelson to the position of Chief Technology Officer. Mr. Nelson is a Senior Software Engineer who brings nearly 20 years of experience in a wide array of technological and business development roles spanning a wide array of industries, having held a number of senior positions. Prior to Mr. Nelson’s appointment as Legible’s CTO, Mr. Nelson held the position of Director of Technology at Legible as of January 2024. Mr. Nelson’s proficiencies in software development, web design, cybersecurity, data analytics, organizational planning, and product development have helped companies create and implement scalable, customer-focused solutions to drive business growth and brand recognition. Mr. Nelson also has extensive executive and board experience.

Andrew Nelson stated, “I’m incredibly grateful to take on this leadership role at Legible, a company with such a positive mission to revolutionize how people read and interact with digital literature. Our technology roadmap is centered around creating personalized, accessible, and intuitive experiences that seamlessly integrate into everyday life. As CTO, I’m committed to ensuring that our product innovation and leadership align fully with Legible’s mission, enriching the way audiences engage with literature across the globe.”

Kaleeg Hainsworth, CEO of Legible, commented, “We are deeply grateful for the support of our lead investor, a U.S.-based private financial services corporation, which has committed CDN$1.61 million to this Offering. This funding will strengthen our balance sheet and empower us to ramp up marketing and sales initiatives, fueling the growth of our Legible Unbound Subscription service. At just US$9.99 per month, Legible Unbound is gaining traction by offering unlimited access to a vast and growing catalogue of eBooks and audiobooks. We are thrilled also to welcome Andrew Nelson as our new Chief Technology Officer. Andrew’s sophisticated understanding of user experience, technological trends, and eCommerce will be invaluable as we scale globally across all our verticals. He is experienced, proven, genuinely understands what Legible is achieving, resilient, a fantastic people person, and is greatly respected in his community. Andrew enhances our executive team and supports Legible’s mission to innovate and lead in the digital literary space, now more than ever.”

Further to Legible’s Press Release dated July 18, 2024 wherein Legible announced its warrant incentive program (the “WIP”), Legible is pleased to announce the WIP resulted in: (i) a total of 3,374,936 warrants being exercised at $0.07 for proceeds of $236,246, which included $180,233 in the settlement of outstanding indebtedness; and (ii) the issuance of new warrants exercisable on or before August 16, 2025 at $0.10 for an additional 3,374,936 common shares. In the event that the volume weighted average trading price of the common shares of Legible on the Canadian Securities Exchange is at least $0.30 for a minimum of 10 consecutive trading days (whether or not trading occurs on all such days), Legible may, in its sole discretion, issue a news release announcing that the exercise period has been reduced to twenty-one (21) days following the date of the issuance of such news release (the “Accelerated Expiry Date”). If such news release is issued, all such warrants that are not exercised prior to 5:00 p.m. Vancouver time on the Accelerated Expiry Date will expire immediately after such time on the Accelerated Expiry Date.

In addition, further to the Company’s press release dated January 24, 2024, Legible announces the conclusion of its engagement with Investor Cubed Inc. (“Investor Cubed”), which provided investor relations and shareholder communication services, effective immediately. Legible extends its gratitude to Investor Cubed for their contributions and support during the engagement.

About Legible Inc.

Legible is a groundbreaking, mobile-centric global company specializing in eBook and audiobook entertainment. Its extensive partnerships encompass four of the Big 5 Publishers, the world’s largest eBook distributors, and outstanding publishers of all sizes, enabling Legible to deliver millions of eBooks and audiobooks, transforming any smart device into a source of cutting-edge infotainment.

Legible recently released My Model Kitchen – Vol. 2: Vegetables – The Garden of Earthly Delights, the second of 15 video-enriched Living Cookbooks by former supermodel, bestselling author, TV host and celebrity chef Cristina Ferrare, with an AI Sous Chef for each recipe. The Living Cookbooks and Ms. Ferrare have been featured twice on the Drew Barrymore Show and in many other major US media outlets.

A first mover in the rapidly expanding automotive infotainment market, Legible has partnered with media providers Faurecia Aptoide, Harman Ignite, LiveOne, and Visteon. Legible has the only Android Automotive app that delivers both audiobooks and eBooks to drivers and passengers in tens of millions of vehicles around the globe, positioning Legible at the forefront of the new world of in-car infotainment experiences.

The 2024 EdTech Breakthrough Award winner for eLearning Innovation of the Year, Legible is reshaping the digital publishing landscape, committed to gaining significant market share through its innovative 21st-century publishing solutions and enriched reading experiences. Visit Legible.com, where eBooks come to life.

Press Contacts:

Legible Inc.

Ms. Deborah Harford
EVP, Global Strategic Partnerships
invest@legible.com
Website: https://invest.legible.com

Legible Media Relations

Krupp Kommunications, Inc.
Ms. Kathy Giaconia
VP Media Relations
kgiaconia@kruppagency.com
1-213-324-5665
http://www.KruppAgency.com

Cautionary Note Regarding Forward Looking Information
This Press Release contains certain statements which constitute forward-looking statements or information (“forward-looking statements”), including statements regarding Legible’s business. Such forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Legible’s control, including the impact of general economic conditions, industry conditions, currency fluctuations, the lack of availability of qualified personnel or management, stock market volatility and the ability to access sufficient capital from internal and external sources. Although Legible believes that the expectations in its forward-looking statements are reasonable, they are based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward- looking information. As such, readers are cautioned not to place undue reliance on the forward- looking information, as no assurance can be provided as to future results, levels of activity or achievements. The forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Legible does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/989cb8b1-ce9c-4e00-b6a0-53c60c30fc72

The MIL Network –

January 25, 2025

MIL-OSI Europe: Minutes – Wednesday, 23 October 2024 – Strasbourg – Final edition

Source: European Parliament

PV-10-2024-10-23

EN

iPlPv_Sit

Minutes
Wednesday, 23 October 2024 – Strasbourg

IN THE CHAIR: Sabine VERHEYEN
Vice-President

1. Opening of the sitting

The sitting opened at 09:00.

2. Managing migration in an effective and holistic way through fostering returns (debate)

Commission statement: Managing migration in an effective and holistic way through fostering returns (2024/2882(RSP))

Helena Dalli (Member of the Commission) made the statement.

The following spoke: Tomas Tobé, on behalf of the PPE Group, Iratxe García Pérez, on behalf of the S&D Group, Kinga Gál, on behalf of the PfE Group, Nicola Procaccini, on behalf of the ECR Group, Valérie Hayer, on behalf of the Renew Group, Tineke Strik, on behalf of the Verts/ALE Group, Estrella Galán, on behalf of The Left Group, Sarah Knafo, on behalf of the ESN Group, Jeroen Lenaers, Ana Catarina Mendes, who also answered a blue-card question from João Oliveira, Marieke Ehlers, Jadwiga Wiśniewska, Malik Azmani, Diana Riba i Giner, Ilaria Salis, who also declined to take blue-card questions from Susanna Ceccardi and Anna Maria Cisint, Mary Khan, Erik Kaliňák, Lena Düpont, who also answered a blue-card question from András László, Cecilia Strada, Jean-Paul Garraud, Assita Kanko, Fabienne Keller, who also declined to take a blue-card question from Fabrice Leggeri, Erik Marquardt, Konstantinos Arvanitis, Monika Beňová, Dolors Montserrat, Matjaž Nemec, Paolo Borchia, who also answered a blue-card question from Maria Grapini, Charlie Weimers, Abir Al-Sahlani, who also answered a blue-card question from Rihards Kols, Ignazio Roberto Marino, Siegfried Mureşan, Jorge Buxadé Villalba, Elena Yoncheva, Elissavet Vozemberg-Vrionidi, Tom Vandendriessche, Rasa Juknevičienė, Harald Vilimsky, François-Xavier Bellamy, who also answered a blue-card question from Malika Sorel, Paulo Cunha, Bartłomiej Sienkiewicz and Loránt Vincze.

The following spoke under the catch-the-eye procedure: Paulius Saudargas, Juan Fernando López Aguilar, Susanna Ceccardi, Sebastian Tynkkynen, Hilde Vautmans and João Oliveira.

IN THE CHAIR: Sophie WILMÈS
Vice-President

The following spoke under the catch-the-eye procedure: Lukas Sieper, Matej Tonin and Vytenis Povilas Andriukaitis.

The following spoke: Helena Dalli.

The debate closed.

3. Tackling the steel crisis: boosting competitive and sustainable European steel and maintaining quality jobs (debate)

Commission statement: Tackling the steel crisis: boosting competitive and sustainable European steel and maintaining quality jobs (2024/2883(RSP))

Helena Dalli (Member of the Commission) made the statement.

The following spoke: Christian Ehler, on behalf of the PPE Group, Dan Nica, on behalf of the S&D Group, Paolo Borchia, on behalf of the PfE Group, Daniel Obajtek, on behalf of the ECR Group, Christophe Grudler, on behalf of the Renew Group, Terry Reintke, on behalf of the Verts/ALE Group, Martin Schirdewan, on behalf of The Left Group, René Aust, on behalf of the ESN Group, Juan Ignacio Zoido Álvarez, Estelle Ceulemans, Ondřej Knotek, Elena Donazzan, Brigitte van den Berg, Sara Matthieu, Rudi Kennes, Marcin Sypniewski, Adam Jarubas, Jens Geier, Anna Bryłka, Anna Zalewska, Marie-Pierre Vedrenne, Dennis Radtke, Raphaël Glucksmann, Tom Berendsen, Giorgio Gori, Letizia Moratti, Elena Sancho Murillo, Radan Kanev, Eero Heinäluoma, Johan Danielsson and Idoia Mendia, who also answered a blue-card question from Bogdan Rzońca.

The following spoke under the catch-the-eye procedure: Susana Solís Pérez, Jadwiga Wiśniewska, Michał Kobosko, Branislav Ondruš, Massimiliano Salini, Michele Picaro, Kateřina Konečná, Manuela Ripa, Sebastian Tynkkynen, Seán Kelly, Ondřej Krutílek, Diego Solier and Mirosława Nykiel.

The following spoke: Helena Dalli.

The debate closed.

(The sitting was suspended at 11:57.)

IN THE CHAIR: Roberta METSOLA
President

4. Resumption of the sitting

The sitting resumed at 12:03.

5. Statement by the President

The President made a statement to mark the 68th anniversary of the Hungarian Uprising of 1956. She paid tribute to the victims and to those who had suffered under Soviet oppression.

⁂

The following spoke: Ondřej Knotek and Peter Liese (the President made some clarifications).

6. Voting time

For detailed results, see also ‘Results of votes’ and ‘Results of roll-call votes’.

6.1. Deforestation Regulation: provisions relating to the date of application ***I (vote)

Proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2023/1115 as regards provisions relating to the date of application [COM(2024)0452 – C10-0119/2024 – 2024/0249(COD)] – ENVI Committee

REQUEST FOR AN URGENT DECISION from the ENVI Committee (Rule 170(6))

Parliament approved the request for urgent procedure.

The following tabling deadlines had been set:
– amendments: Wednesday 6 November 2024 at 13:00
– requests for separate votes and split votes: Thursday 12 November 2024 at 16:00.

Vote: at a later part-session.

6.2. Draft general budget of the European Union for the financial year 2025 – all sections (vote)

(Majority of Parliament’s component Members required)

DRAFT AMENDMENTS

(The draft amendments adopted would appear as an annex to the Texts Adopted)

The following had spoken:

After the vote, Péter Benő Banai (President-in-Office of the Council) had noted the differences between the positions of Parliament and of the Council and had agreed to the President’s convening of the Conciliation Committee in accordance with Article 314(4)(c) of the Treaty on the Functioning of the European Union.

(‘Results of votes’, item 1)

6.3. General budget of the European Union for the financial year 2025 – all sections (vote)

Report on the Council position on the draft general budget of the European Union for the financial year 2025 [12084/2024 – C10-0099/2024 – 2024/0176(BUD)] – Committee on Budgets. Rapporteurs: Victor Negrescu and Niclas Herbst (A10-0008/2024)

(Majority of the votes cast)

MOTION FOR A RESOLUTION

Rejected

The following had spoken:

Before the vote, Victor Negrescu (rapporteur) on the basis of Rule 189(4).

Leila Chaibi, to move an oral amendment to paragraph 68. Parliament had not agreed to put the oral amendment to the vote as more than 39 Members had opposed it.

(‘Results of votes’, item 2)

6.4. Guidelines for the employment policies of the Member States * (vote)

Report on the proposal for a Council decision on guidelines for the employment policies of the Member States [COM(2024)0599 – C10-0084/2024 – 2024/0599(NLE)] – Committee on Employment and Social Affairs. Rapporteur: Li Andersson (A10-0004/2024)

(Majority of the votes cast)

COMMISSION PROPOSAL

Approved as amended (P10_TA(2024)0027)

(‘Results of votes’, item 3)

6.5. Urgent need to revise the Medical Devices Regulation (vote)

Motions for resolutions RC-B9-0123/2024/REV1, B10-0121/2024, B10-0122/2024, B10-0123/2024, B10-0124/2024, B10-0125/2024, B10-0126/2024, B10-0127/2024 and B10-0128/2024 (minutes of 23.10.2023, item I) (2024/2849(RSP))

The debate had taken place on 9 October 2024 (minutes of 9.10.2024, item 15).

(Majority of the votes cast)

JOINT MOTION FOR A RESOLUTION

Adopted (P10_TA(2024)0028)

(Motions for resolutions B10-0121/2024, B10-0122/2024 and B10-0127/2024 fell.)

(‘Results of votes’, item 4)

(The sitting was suspended at 12:53.)

IN THE CHAIR: Roberts ZĪLE
Vice-President

7. Resumption of the sitting

The sitting resumed at 12:56.

8. Approval of the minutes of the previous sitting

The minutes of the previous sitting were approved.

9. Continued war crimes committed by the Russian Federation, notably killing Ukrainian prisoners of war (debate)

Commission statement: Continued war crimes committed by the Russian Federation, notably killing Ukrainian prisoners of war (2024/2897(RSP))

Didier Reynders (Member of the Commission) made the statement.

The following spoke: Sandra Kalniete, on behalf of the PPE Group, Chloé Ridel, on behalf of the S&D Group, Tomasz Buczek, on behalf of the PfE Group, Adam Bielan, on behalf of the ECR Group, Petras Auštrevičius, on behalf of the Renew Group, and Sergey Lagodinsky, on behalf of the Verts/ALE Group.

The following spoke: Didier Reynders.

The following spoke: Lukas Sieper on the allocation of speaking time in the debate (the President made some clarifications).

The debate closed.

10. U-turn on EU bureaucracy: the need to axe unnecessary burdens and reporting to unleash competitiveness and innovation (topical debate)

The following spoke: Jörgen Warborn to open the debate proposed by the PPE Group.

The following spoke: Helena Dalli (Member of the Commission).

The following spoke: Markus Ferber, on behalf of the PPE Group, René Repasi, on behalf of the S&D Group, Klara Dostalova, on behalf of the PfE Group, Antonella Sberna, on behalf of the ECR Group, Stéphanie Yon-Courtin, on behalf of the Renew Group, Jutta Paulus, on behalf of the Verts/ALE Group, Jussi Saramo, on behalf of The Left Group, Milan Uhrík, on behalf of the ESN Group, Tom Berendsen, Lara Wolters, Vilis Krištopans, Kosma Złotowski, Svenja Hahn, Kim Van Sparrentak, Stanislav Stoyanov, Branislav Ondruš, Christine Schneider, Lina Gálvez, Ondřej Knotek, Stephen Nikola Bartulica, João Cotrim De Figueiredo, Marie Toussaint, Anja Arndt and Katarína Roth Neveďalová.

IN THE CHAIR: Younous OMARJEE
Vice-President

The following spoke: Lídia Pereira, Nikos Papandreou, Raffaele Stancanelli, Stefano Cavedagna, Katri Kulmuni, Mirosława Nykiel, Tiemo Wölken, Julie Rechagneux, Ľudovít Ódor, Aura Salla, Jorge Martín Frías, Angelika Niebler, Susanna Ceccardi, Isabella Tovaglieri and Barbara Bonte.

The following spoke: Helena Dalli.

The debate closed.

11. Presentation of the Court of Auditors’ annual report 2023 (debate)

Presentation of the Court of Auditors’ annual report 2023 (2024/2784(RSP))

Tony Murphy (President of the Court of Auditors) made the presentation.

The following spoke: Helena Dalli (Member of the Commission).

The following spoke: Tomáš Zdechovský, on behalf of the PPE Group, José Cepeda, on behalf of the S&D Group, Csaba Dömötör, on behalf of the PfE Group, Dick Erixon, on behalf of the ECR Group, Olivier Chastel, on behalf of the Renew Group, Daniel Freund, on behalf of the Verts/ALE Group, Jonas Sjöstedt, on behalf of The Left Group, Niclas Herbst, Giuseppe Lupo, Virginie Joron, Marco Squarta, Joachim Streit, Giuseppe Antoci, Monika Hohlmeier, Eero Heinäluoma, Julien Sanchez, Bogdan Rzońca, Ciaran Mullooly, Jacek Protas, Fernand Kartheiser, Caterina Chinnici and Dirk Gotink.

The following spoke under the catch-the-eye procedure: Sebastian Tynkkynen and Grzegorz Braun.

The following spoke: Helena Dalli and Tony Murphy.

The debate closed.

12. Findings of the Committee on the Elimination of Discrimination against Women on Poland’s abortion law (debate)

Commission statement: Findings of the Committee on the Elimination of Discrimination against Women on Poland’s abortion law (2024/2867(RSP))

Helena Dalli (Member of the Commission) made the statement.

The following spoke: Ewa Kopacz, on behalf of the PPE Group, Joanna Scheuring-Wielgus, on behalf of the S&D Group, Anna Bryłka, non-attached Member, Marlena Maląg, on behalf of the ECR Group, Abir Al-Sahlani, on behalf of the Renew Group, Alice Kuhnke, on behalf of the Verts/ALE Group, Manon Aubry, on behalf of The Left Group, Ewa Zajączkowska-Hernik, on behalf of the ESN Group (the President reminded the House of the rules on conduct), Arba Kokalari, Ana Catarina Mendes, Margarita de la Pisa Carrión, who also answered blue-card questions from Bruno Gonçalves, Raquel García Hermida-Van Der Walle and Irene Montero, Małgorzata Gosiewska, who also declined to take a blue-card question from Abir Al-Sahlani, Michał Kobosko, Mélissa Camara, Irene Montero, who also answered a blue-card question from Alvise Pérez, and Tomasz Froelich.

IN THE CHAIR: Christel SCHALDEMOSE
Vice-President

The following spoke: Grzegorz Braun, Elżbieta Katarzyna Łukacijewska, Heléne Fritzon, Laurence Trochu, who also answered a blue-card question from Manon Aubry, Raquel García Hermida-Van Der Walle, who also answered a blue-card question from Margarita de la Pisa Carrión, Benedetta Scuderi, Hanna Gedin, Maria Walsh, Krzysztof Śmiszek, Paolo Inselvini, who also answered a blue-card question from Hilde Vautmans, Lucia Yar, who also answered a blue-card question from Robert Biedroń, Mirosława Nykiel, Lina Gálvez, Birgit Sippel, Elisabeth Grossmann, Evin Incir, who also answered a blue-card question from Margarita de la Pisa Carrión, and Alessandra Moretti.

The following spoke under the catch-the-eye procedure: Łukasz Kohut, Juan Fernando López Aguilar, Emma Fourreau, Lukas Sieper, Magdalena Adamowicz, Bruno Gonçalves and João Oliveira.

The following spoke: Helena Dalli.

The debate closed.

13. Seven years from the assassination of Daphne Caruana Galizia: lack of progress in restoring the rule of law in Malta (debate)

Commission statement: Seven years from the assassination of Daphne Caruana Galizia: lack of progress in restoring the rule of law in Malta (2024/2868(RSP))

Didier Reynders (Member of the Commission) made the statement.

The following spoke: David Casa, on behalf of the PPE Group, Alex Agius Saliba, on behalf of the S&D Group, Fabrice Leggeri, on behalf of the PfE Group, Alessandro Ciriani, on behalf of the ECR Group, Moritz Körner, on behalf of the Renew Group, Daniel Freund, on behalf of the Verts/ALE Group, Konstantinos Arvanitis, on behalf of The Left Group, Ana Miguel Pedro, Juan Fernando López Aguilar, Sophie Wilmès, Gaetano Pedulla’, Judita Laššáková, Peter Agius, Daniel Attard, Veronika Cifrová Ostrihoňová, Isabel Wiseler-Lima, who also answered a blue-card question from Alex Agius Saliba, Evin Incir, Sunčana Glavak and Thomas Bajada.

The following spoke under the catch-the-eye procedure: Sandro Ruotolo, Katarína Roth Neveďalová and Lukas Sieper.

The following spoke: Didier Reynders.

IN THE CHAIR: Martin HOJSÍK
Vice-President

The debate closed.

14. The important role of cities and regions in the EU – for a green, social and prosperous local development (debate)

Commission statement: The important role of cities and regions in the EU – for a green, social and prosperous local development (2024/2869(RSP))

Didier Reynders (Member of the Commission) made the statement.

The following spoke: Andrey Novakov, on behalf of the PPE Group, Mohammed Chahim, on behalf of the S&D Group, Rody Tolassy, on behalf of the PfE Group, Denis Nesci, on behalf of the ECR Group, Ľubica Karvašová, on behalf of the Renew Group, Gordan Bosanac, on behalf of the Verts/ALE Group, Valentina Palmisano, on behalf of The Left Group, Arno Bausemer, on behalf of the ESN Group, Elena Nevado del Campo, Jean-Marc Germain, Jorge Buxadé Villalba, Şerban-Dimitrie Sturdza, Ciaran Mullooly, Vladimir Prebilič, Younous Omarjee, who also answered a blue-card question from Ana Miranda Paz, Nora Junco García, Krzysztof Hetman, Marcos Ros Sempere, Anne-Sophie Frigout, Waldemar Buda, Raquel García Hermida-Van Der Walle, Ana Miranda Paz, Elena Kountoura, Isabelle Le Callennec, Nora Mebarek, Raffaele Stancanelli, Ruggero Razza, Oihane Agirregoitia Martínez, Mārtiņš Staķis, Gabriella Gerzsenyi, Carla Tavares, Mireia Borrás Pabón, Barry Cowen, Fredis Beleris, René Repasi, Nikolina Brnjac, Javi López, Marco Falcone, Camilla Laureti, Antonio Decaro, Rosa Serrano Sierra, Dario Nardella, Sabrina Repp, Raffaele Topo, Marko Vešligaj, Aodhán Ó Ríordáin, Stefano Bonaccini, Sakis Arnaoutoglou, Sofie Eriksson and Alex Agius Saliba.

The following spoke under the catch-the-eye procedure: Nina Carberry, Maria Grapini, Sebastian Tynkkynen, Niels Geuking, Juan Fernando López Aguilar and Maravillas Abadía Jover.

The following spoke: Didier Reynders.

The debate closed.

15. Foreign interference and hybrid attacks: the need to strengthen EU resilience and internal security (debate)

Commission statement: Foreign interference and hybrid attacks: the need to strengthen EU resilience and internal security (2024/2884(RSP))

Didier Reynders (Member of the Commission) made the statement.

The following spoke: Lena Düpont, on behalf of the PPE Group, Hannes Heide, on behalf of the S&D Group, András László, on behalf of the PfE Group, Beata Szydło, on behalf of the ECR Group, Helmut Brandstätter, on behalf of the Renew Group, Alexandra Geese, on behalf of the Verts/ALE Group, Petar Volgin, on behalf of the ESN Group, and Mirosława Nykiel.

IN THE CHAIR: Antonella SBERNA
Vice-President

The following spoke: Tobias Cremer, who also answered a blue-card question from Reinier Van Lanschot, Aleksandar Nikolic, Rihards Kols, Reinier Van Lanschot, Kateřina Konečná, Ana Miguel Pedro, Brando Benifei, Nikola Bartůšek, Geadis Geadi, Javier Zarzalejos, Mathilde Androuët, Ivaylo Valchev, Pekka Toveri, Aurelijus Veryga, Salvatore De Meo and Patryk Jaki.

The following spoke under the catch-the-eye procedure: Michał Szczerba, Juan Fernando López Aguilar, Majdouline Sbai, András Tivadar Kulja, Vytenis Povilas Andriukaitis and Magdalena Adamowicz.

The following spoke: Didier Reynders.

The debate closed.

16. Proposals for Union acts

The President announced that the President of Parliament had declared the following proposals for Union acts to be admissible under Rule 47(2):

– Proposal for a Union act tabled by Jorge Buxadé Villalba, Juan Carlos Girauta Vidal, Mireia Borrás Pabón, Jorge Martín Frías, Margarita de la Pisa Carrión, Hermann Tertsch, on classifying the activity of military personnel, police officers, prison officers and private security guards as dangerous professions in the Union (B10-0018/2024)

committee responsible: EMPL

– Proposal for a Union act tabled by Jorge Buxadé Villalba, Hermann Tertsch, Juan Carlos Girauta Vidal, Mireia Borrás Pabón, Margarita de la Pisa Carrión, Jorge Martín Frías, on the need to protect families, businesses and self-employed persons from the rise in fuel prices in Europe (B10-0077/2024)

committee responsible: ECON
committee asked for opinion: ITRE

– Proposal for a Union act tabled by Jorge Buxadé Villalba, Hermann Tertsch, Juan Carlos Girauta Vidal, Mireia Borrás Pabón, Margarita de la Pisa Carrión, Jorge Martín Frías, on the need for cheaper access to housing (B10-0078/2024)

committee responsible: ECON
committee asked for opinion: EMPL

17. EU actions against the Russian shadow fleets and ensuring a full enforcement of sanctions against Russia (debate)

Commission statement: EU actions against the Russian shadow fleets and ensuring a full enforcement of sanctions against Russia (2024/2885(RSP))

Didier Reynders (Member of the Commission) made the statement.

The following spoke: Sandra Kalniete, on behalf of the PPE Group, Thijs Reuten, on behalf of the S&D Group, András László, on behalf of the PfE Group, Reinis Pozņaks, on behalf of the ECR Group, Gerben-Jan Gerbrandy, on behalf of the Renew Group, Isabella Lövin, on behalf of the Verts/ALE Group, Jonas Sjöstedt, on behalf of The Left Group, Zsuzsanna Borvendég, on behalf of the ESN Group, Francisco José Millán Mon, Heléne Fritzon, Veronika Vrecionová, Karin Karlsbro, Ville Niinistö, Li Andersson, Pekka Toveri, Sérgio Gonçalves, Arkadiusz Mularczyk, Ivars Ijabs, Per Clausen, Mika Aaltola, Emma Wiesner, Ondřej Kolář, Lukas Mandl and Tom Berendsen.

The following spoke under the catch-the-eye procedure: Vytenis Povilas Andriukaitis.

The following spoke: Didier Reynders.

Motions for resolutions to be tabled under Rule 136(2) would be announced at a later stage.

The debate closed.

Vote: next part-session.

18. Need to strengthen rail travel and the railway sector in Europe (debate)

Commission statement: Need to strengthen rail travel and the railway sector in Europe (2024/2896(RSP))

Didier Reynders (Member of the Commission) made the statement.

IN THE CHAIR: Javi LÓPEZ
Vice-President

The following spoke: Dariusz Joński, on behalf of the PPE Group, François Kalfon, on behalf of the S&D Group, Margarita de la Pisa Carrión, on behalf of the PfE Group, Marlena Maląg, on behalf of the ECR Group, Cynthia Ní Mhurchú, on behalf of the Renew Group, Kai Tegethoff, on behalf of the Verts/ALE Group, Elena Kountoura, on behalf of The Left Group, Arno Bausemer, on behalf of the ESN Group, Sophia Kircher, Vivien Costanzo, Jana Nagyová, Adrian-George Axinia, Ana Vasconcelos, who also answered a blue-card question from João Oliveira, Tilly Metz, Arash Saeidi, Luis-Vicențiu Lazarus, Nikolina Brnjac, Ondřej Krutílek, Pär Holmgren, Sebastian Everding, Kostas Papadakis and Krzysztof Hetman.

The following spoke under the catch-the-eye procedure: Marta Wcisło, Vytenis Povilas Andriukaitis, Ana Miranda Paz, João Oliveira, Elżbieta Katarzyna Łukacijewska, Per Clausen, Carmen Crespo Díaz and Magdalena Adamowicz.

The following spoke: Didier Reynders.

The debate closed.

19. Explanations of vote

Written explanations of vote

Explanations of vote submitted in writing under Rule 201 appear on the Members’ pages on Parliament’s website.

20. Agenda of the next sitting

The next sitting would be held the following day, 24 October 2024, starting at 09:00. The agenda was available on Parliament’s website.

21. Approval of the minutes of the sitting

In accordance with Rule 208(3), the minutes of the sitting would be put to the House for approval at the beginning of the afternoon of the next sitting.

22. Closure of the sitting

The sitting closed at 21:57.

LIST OF DOCUMENTS SERVING AS A BASIS FOR THE DEBATES AND DECISIONS OF PARLIAMENT

I. Motions for resolutions tabled

Urgent need to revise the Medical Devices Regulation

Motions for resolutions tabled under Rule 136(2) to wind up the debate:

on the urgent need to revise the Medical Devices Regulation (2024/2849(RSP)) (B10-0121/2024)
Catarina Martins
on behalf of The Left Group

on the urgent need to revise the Medical Devices Regulation (2024/2849(RSP)) (B10-0122/2024)
Christine Anderson
on behalf of the ESN Group

on the urgent need to revise the Medical Devices Regulation (2024/2849(RSP)) (B10-0123/2024)
Tiemo Wölken
on behalf of the S&D Group

on the urgent need to revise the Medical Devices Regulation (2024/2849(RSP)) (B10-0124/2024)
Andreas Glück
on behalf of the Renew Group

on the urgent need to revise the Medical Devices Regulation (2024/2849(RSP)) (B10-0125/2024)
Peter Liese
on behalf of the PPE Group

on the urgent need to revise the Medical Devices Regulation (2024/2849(RSP)) (B10-0126/2024)
Ignazio Roberto Marino
on behalf of the Verts/ALE Group

on the urgent need to revise the Medical Devices Regulation (2024/2849(RSP)) (B10-0127/2024)
Ondřej Knotek, Viktória Ferenc
on behalf of the PfE Group

on the urgent need to revise the Medical Devices Regulation (2024/2849(RSP)) (B10-0128/2024)
Ruggero Razza, Pietro Fiocchi, Michele Picaro, Laurence Trochu, Aurelijus Veryga
on behalf of the ECR Group

Joint motion for a resolution tabled under Rule 136(2) and (4):

on the urgent need to revise the Medical Devices Regulation (2024/2849(RSP)) (RC-B10-0123/2024/REV1) (replacing motions for resolutions B10-0123/2024, B10-0124/2024, B10-0125/2024, B10-0126/2024 and B10-0128/2024):

Peter Liese
on behalf of the PPE Group
Tiemo Wölken
on behalf of the S&D Group
Ondřej Knotek
on behalf of the PfE Group
Ruggero Razza
on behalf of the ECR Group
Andreas Glück
on behalf of the Renew Group
Ignazio Roberto Marino
on behalf of the Verts/ALE Group

II. Delegated acts (Rule 114(2))

Draft delegated acts forwarded to Parliament

– Commission Delegated Regulation supplementing Regulation (EU) 2023/1114 of the European Parliament and of the Council with regard to regulatory technical standards on information to be exchanged between competent authorities (C(2024)06766 – 2024/2875(DEA))

Deadline for raising objections: 3 months from the date of receipt of 10 October 2024

referred to committee responsible: ECON

– Commission Delegated Regulation amending Delegated Regulation (EU) 2020/688 as regards certain animal health requirements for movements within the Union of terrestrial animals (C(2024)06985 – 2024/2870(DEA))

Deadline for raising objections: 2 months from the date of receipt of 9 October 2024

referred to committee responsible: AGRI

– Commission Delegated Regulation amending Regulation (EU) No 649/2012 of the European Parliament and of the Council as regards the listing of pesticides and industrial chemicals (C(2024)07071 – 2024/2880(DEA))

Deadline for raising objections: 2 months from the date of receipt of 15 October 2024

referred to committee responsible: ENVI

– Commission Delegated Regulation amending Regulation (EU) 2019/1241 as regards short-necked clam and red seabream (C(2024)07102 – 2024/2876(DEA))

Deadline for raising objections: 2 months from the date of receipt of 11 October 2024

referred to committee responsible: PECH

– Commission Delegated Regulation amending Regulation (EC) No 1013/2006 as regards changes on shipments of electrical and electronic waste agreed under the Basel Convention (C(2024)07198 – 2024/2900(DEA))

Deadline for raising objections: 2 months from the date of receipt of 18 October 2024

referred to committee responsible: ENVI

– Commission Delegated Regulation amending Regulation (EU) 2024/1157 as regards changes on shipments of electrical and electronic waste agreed under the Basel Convention (C(2024)07199 – 2024/2899(DEA))

Deadline for raising objections: 2 months from the date of receipt of 18 October 2024

referred to committee responsible: ENVI

– Commission Delegated Regulation amending Regulation (EU) 2015/757 of the European Parliament and of the Council as regards the rules for the monitoring of greenhouse gas emissions from offshore ships and the zero-rating of sustainable fuels (C(2024)07210 – 2024/2894(DEA))

Deadline for raising objections: 2 months from the date of receipt of 16 October 2024

referred to committee responsible: ENVI

III. Implementing measures (Rule 115)

Draft implementing measures falling under the regulatory procedure with scrutiny forwarded to Parliament

– Commission Regulation amending Annex II to Regulation (EC) No 396/2005 of the European Parliament and of the Council as regards maximum residue levels for fenbuconazole and penconazole in or on certain products (D096823/04 – 2024/2898(RPS) – deadline: 18 December 2024)
referred to committee responsible: ENVI

– Commission Regulation amending Annex I to Regulation (EC) No 1334/2008 of the European Parliament and of the Council as regards the removal of the flavouring substance 4-Methyl-2-phenylpent-2-enal (FL No 05.100) from the Union list (D099950/02 – 2024/2873(RPS) – deadline: 11 January 2025)
referred to committee responsible: ENVI

– Commission Regulation amending Annex I to Regulation (EC) No 1334/2008 of the European Parliament and of the Council as regards the inclusion of (E)‐3‐benzo[1,3]dioxol‐5‐yl‐N,N‐diphenyl‐2‐propenamide in the Union list of flavourings (D099953/02 – 2024/2874(RPS) – deadline: 11 December 2024)
referred to committee responsible: ENVI

– Commission Regulation amending Regulations (EC) No 2150/2002 and (EC) No 1552/2005 of the European Parliament and of the Council, as well as Commission Regulations (EC) No 1726/1999, (EC) No 1916/2000, (EC) No 198/2006, (EC) No 1062/2008 and (EU) No 349/2011, as regards references to the statistical classification of economic activities NACE Revision 2 established by Regulation (EC) No 1893/2006 of the European Parliament and of the Council (D100325/01 – 2024/2901(RPS) – deadline: 21 January 2025)
referred to committees responsible: EMPL, ENVI

IV. Documents received

The following documents had been received:

– Proposal for transfer of appropriations DEC 12/2024 – Section III – Commission (N10-0019/2024 – C10-0122/2024 – 2024/2059(GBD))
referred to committee responsible: BUDG

– Proposal for transfer of appropriations DEC 13/2024 – Section III – Commission (N10-0021/2024 – C10-0135/2024 – 2024/2060(GBD))
referred to committee responsible: BUDG

V. Transfers of appropriations and budgetary decisions

In accordance with Article 29 of the Financial Regulation, the Committee on Budgets had decided to approve transfer of appropriations INF 5/2024 – Section VI – European Economic and Social Committee.

In accordance with Article 29 of the Financial Regulation, the Committee on Budgets had decided to approve transfer of appropriations INF 3/2024 – Section VII – Committee of the Regions.

In accordance with Article 29 of the Financial Regulation, the Committee on Budgets had decided to approve transfer of appropriations No 1/2024 – Section VIII – European Ombudsman.

In accordance with Article 31(3) of the Financial Regulation, the Committee on Budgets had decided to approve Commission transfers of appropriations DEC 09/2024 and DEC 10/2024 – Section III – Commission.

In accordance with Article 31(6) of the Financial Regulation, the Council of the European Union had decided to approve Commission transfers of appropriations DEC 09/2024 and DEC 10/2024 – Section III – Commission.

ATTENDANCE REGISTER

Present:

Aaltola Mika, Abadía Jover Maravillas, Adamowicz Magdalena, Aftias Georgios, Agirregoitia Martínez Oihane, Agius Peter, Agius Saliba Alex, Alexandraki Galato, Allione Grégory, Al-Sahlani Abir, Anadiotis Nikolaos, Anderson Christine, Andersson Li, Andresen Rasmus, Andrews Barry, Andriukaitis Vytenis Povilas, Androuët Mathilde, Angel Marc, Annemans Gerolf, Antoci Giuseppe, Arimont Pascal, Arłukowicz Bartosz, Arnaoutoglou Sakis, Arndt Anja, Arvanitis Konstantinos, Asens Llodrà Jaume, Assis Francisco, Attard Daniel, Aubry Manon, Auštrevičius Petras, Axinia Adrian-George, Azmani Malik, Bajada Thomas, Baljeu Jeannette, Ballarín Cereza Laura, Bardella Jordan, Barna Dan, Barrena Arza Pernando, Bartulica Stephen Nikola, Bartůšek Nikola, Bausemer Arno, Bay Nicolas, Bay Christophe, Beke Wouter, Beleris Fredis, Bellamy François-Xavier, Benea Adrian-Dragoş, Benifei Brando, Benjumea Benjumea Isabel, Beňová Monika, Bentele Hildegard, Berendsen Tom, Berger Stefan, Berlato Sergio, Bernhuber Alexander, Biedroń Robert, Bielan Adam, Bischoff Gabriele, Blaha Ľuboš, Blinkevičiūtė Vilija, Blom Rachel, Bloss Michael, Bocheński Tobiasz, Boeselager Damian, Bonaccini Stefano, Bonte Barbara, Borchia Paolo, Borrás Pabón Mireia, Borvendég Zsuzsanna, Borzan Biljana, Bosanac Gordan, Boßdorf Irmhild, Bosse Stine, Botenga Marc, Boyer Gilles, Boylan Lynn, Brandstätter Helmut, Brasier-Clain Marie-Luce, Braun Grzegorz, Brejza Krzysztof, Bricmont Saskia, Brnjac Nikolina, Bryłka Anna, Buczek Tomasz, Buda Waldemar, Budka Borys, Bugalho Sebastião, Buła Andrzej, Burkhardt Delara, Buxadé Villalba Jorge, Bžoch Jaroslav, Camara Mélissa, Canfin Pascal, Carberry Nina, Cârciu Gheorghe, Carême Damien, Casa David, Caspary Daniel, Cassart Benoit, Castillo Laurent, del Castillo Vera Pilar, Cavazzini Anna, Cavedagna Stefano, Ceccardi Susanna, Cepeda José, Ceulemans Estelle, Chahim Mohammed, Chaibi Leila, Chastel Olivier, Chinnici Caterina, Christensen Asger, Ciccioli Carlo, Cifrová Ostrihoňová Veronika, Ciriani Alessandro, Cisint Anna Maria, Clausen Per, Clergeau Christophe, Cormand David, Corrado Annalisa, Costanzo Vivien, Cotrim De Figueiredo João, Cowen Barry, Cremer Tobias, Crespo Díaz Carmen, Crosetto Giovanni, Cunha Paulo, Dahl Henrik, Danielsson Johan, Dauchy Marie, Dávid Dóra, David Ivan, Decaro Antonio, de la Hoz Quintano Raúl, Della Valle Danilo, Deloge Valérie, De Masi Fabio, De Meo Salvatore, Demirel Özlem, Deutsch Tamás, Devaux Valérie, Dibrani Adnan, Diepeveen Ton, Dieringer Elisabeth, Di Rupo Elio, Disdier Mélanie, Dobrev Klára, Doherty Regina, Doleschal Christian, Dömötör Csaba, Donazzan Elena, Dorfmann Herbert, Dostalova Klara, Dostál Ondřej, Droese Siegbert Frank, Düpont Lena, Dworczyk Michał, Ecke Matthias, Ehler Christian, Ehlers Marieke, Eriksson Sofie, Erixon Dick, Eroglu Engin, Estaràs Ferragut Rosa, Everding Sebastian, Ezcurra Almansa Alma, Falcă Gheorghe, Falcone Marco, Farantouris Nikolas, Farreng Laurence, Farský Jan, Ferber Markus, Ferenc Viktória, Fidanza Carlo, Fiocchi Pietro, Firea Gabriela, Firmenich Ruth, Fita Claire, Fourlas Loucas, Fourreau Emma, Fragkos Emmanouil, Freund Daniel, Frigout Anne-Sophie, Friis Sigrid, Fritzon Heléne, Froelich Tomasz, Fuglsang Niels, Funchion Kathleen, Furet Angéline, Furore Mario, Gahler Michael, Gál Kinga, Galán Estrella, Gálvez Lina, Gambino Alberico, García Hermida-Van Der Walle Raquel, Garraud Jean-Paul, Gasiuk-Pihowicz Kamila, Geadi Geadis, Gedin Hanna, Geese Alexandra, Geier Jens, Geisel Thomas, Gemma Chiara, Georgiou Giorgos, Gerbrandy Gerben-Jan, Germain Jean-Marc, Gerzsenyi Gabriella, Geuking Niels, Gieseke Jens, Giménez Larraz Borja, Girauta Vidal Juan Carlos, Glavak Sunčana, Glucksmann Raphaël, Goerens Charles, Gomart Christophe, Gomes Isilda, Gonçalves Bruno, Gonçalves Sérgio, González Casares Nicolás, González Pons Esteban, Gori Giorgio, Gosiewska Małgorzata, Gotink Dirk, Gozi Sandro, Grapini Maria, Gražulis Petras, Grims Branko, Griset Catherine, Gronkiewicz-Waltz Hanna, Grossmann Elisabeth, Grudler Christophe, Gualmini Elisabetta, Guetta Bernard, Guzenina Maria, Gyürk András, Hadjipantela Michalis, Hahn Svenja, Haider Roman, Halicki Andrzej, Hansen Christophe, Hansen Niels Flemming, Hassan Rima, Häusling Martin, Hava Mircea-Gheorghe, Hazekamp Anja, Heide Hannes, Heinäluoma Eero, Henriksson Anna-Maja, Herbst Niclas, Herranz García Esther, Hetman Krzysztof, Hohlmeier Monika, Hojsík Martin, Holmgren Pär, Hölvényi György, Humberto Sérgio, Ijabs Ivars, Imart Céline, Incir Evin, Inselvini Paolo, Iovanovici Şoşoacă Diana, Jaki Patryk, Jalloul Muro Hana, Jamet France, Jarubas Adam, Jerković Romana, Jongen Marc, Joński Dariusz, Joron Virginie, Jouvet Pierre, Joveva Irena, Juknevičienė Rasa, Junco García Nora, Jungbluth Alexander, Kabilov Taner, Kalfon François, Kaliňák Erik, Kalniete Sandra, Kamiński Mariusz, Kanev Radan, Kanko Assita, Karlsbro Karin, Kartheiser Fernand, Karvašová Ľubica, Katainen Elsi, Kefalogiannis Emmanouil, Kelleher Billy, Keller Fabienne, Kelly Seán, Kennes Rudi, Khan Mary, Kircher Sophia, Knafo Sarah, Knotek Ondřej, Kobosko Michał, Köhler Stefan, Kohut Łukasz, Kokalari Arba, Kolář Ondřej, Kollár Kinga, Kols Rihards, Konečná Kateřina, Kopacz Ewa, Körner Moritz, Kountoura Elena, Kovatchev Andrey, Krah Maximilian, Krištopans Vilis, Kruis Sebastian, Krutílek Ondřej, Kubilius Andrius, Kubín Tomáš, Kuhnke Alice, Kulja András Tivadar, Kulmuni Katri, Kyllönen Merja, Lagodinsky Sergey, Lakos Eszter, Lange Bernd, Langensiepen Katrin, Laššáková Judita, László András, Latinopoulou Afroditi, Laurent Murielle, Laureti Camilla, Laykova Rada, Lazarov Ilia, Lazarus Luis-Vicențiu, Le Callennec Isabelle, Leggeri Fabrice, Lenaers Jeroen, Leonardelli Julien, Lewandowski Janusz, Lexmann Miriam, Liese Peter, Lins Norbert, Løkkegaard Morten, Lopatka Reinhold, López Javi, López Aguilar Juan Fernando, López-Istúriz White Antonio, Lövin Isabella, Lucano Mimmo, Luena César, Łukacijewska Elżbieta Katarzyna, Lupo Giuseppe, McAllister David, Madison Jaak, Maestre Cristina, Magoni Lara, Maij Marit, Maląg Marlena, Mandl Lukas, Maniatis Yannis, Maran Pierfrancesco, Marczułajtis-Walczak Jagna, Maréchal Marion, Mariani Thierry, Marino Ignazio Roberto, Marquardt Erik, Martín Frías Jorge, Martins Catarina, Martusciello Fulvio, Marzà Ibáñez Vicent, Matthieu Sara, Mavrides Costas, Mayer Georg, Mazurek Milan, McNamara Michael, Mebarek Nora, Meimarakis Vangelis, Meleti Eleonora, Mendes Ana Catarina, Mendia Idoia, Mertens Verena, Mesure Marina, Metsola Roberta, Metz Tilly, Mikser Sven, Milazzo Giuseppe, Millán Mon Francisco José, Minchev Nikola, Mînzatu Roxana, Miranda Paz Ana, Molnár Csaba, Montero Irene, Montserrat Dolors, Morace Carolina, Morano Nadine, Moratti Letizia, Moreira de Sá Tiago, Moreno Sánchez Javier, Moretti Alessandra, Mularczyk Arkadiusz, Müller Piotr, Mullooly Ciaran, Mureşan Siegfried, Muşoiu Ştefan, Nagyová Jana, Nardella Dario, Negrescu Victor, Nemec Matjaž, Nerudová Danuše, Nesci Denis, Neumann Hannah, Nevado del Campo Elena, Nica Dan, Niebler Angelika, Niedermayer Luděk, Niinistö Ville, Nikolaou-Alavanos Lefteris, Nikolic Aleksandar, Ní Mhurchú Cynthia, Noichl Maria, Nordqvist Rasmus, Novakov Andrey, Nykiel Mirosława, Obajtek Daniel, Ódor Ľudovít, Oetjen Jan-Christoph, Ohisalo Maria, Oliveira João, Olivier Philippe, Omarjee Younous, Ondruš Branislav, Ó Ríordáin Aodhán, Orlando Leoluca, Ozdoba Jacek, Paet Urmas, Pajín Leire, Palmisano Valentina, Papadakis Kostas, Papandreou Nikos, Pappas Nikos, Pascual De La Parte Nicolás, Paulus Jutta, Pedro Ana Miguel, Pedulla’ Gaetano, Pellerin-Carlin Thomas, Peltier Guillaume, Penkova Tsvetelina, Pennelle Gilles, Pérez Alvise, Peter-Hansen Kira Marie, Petrov Hristo, Picaro Michele, Picierno Pina, Picula Tonino, Piera Pascale, Pimpie Pierre, Piperea Gheorghe, de la Pisa Carrión Margarita, Pokorná Jermanová Jaroslava, Polato Daniele, Polfjärd Jessica, Pozņaks Reinis, Prebilič Vladimir, Princi Giusi, Protas Jacek, Pürner Friedrich, Rackete Carola, Radev Emil, Radtke Dennis, Rafowicz Emma, Ratas Jüri, Razza Ruggero, Rechagneux Julie, Regner Evelyn, Repasi René, Repp Sabrina, Reuten Thijs, Riba i Giner Diana, Ricci Matteo, Ridel Chloé, Riehl Nela, Ripa Manuela, Rodrigues André, Ros Sempere Marcos, Roth Neveďalová Katarína, Rougé André, Ruissen Bert-Jan, Ruotolo Sandro, Rzońca Bogdan, Saeidi Arash, Salini Massimiliano, Salis Ilaria, Salla Aura, Sánchez Amor Nacho, Sanchez Julien, Sancho Murillo Elena, Saramo Jussi, Sardone Silvia, Šarec Marjan, Sargiacomo Eric, Satouri Mounir, Saudargas Paulius, Sbai Majdouline, Sberna Antonella, Schaldemose Christel, Schaller-Baross Ernő, Schenk Oliver, Scheuring-Wielgus Joanna, Schieder Andreas, Schilling Lena, Schneider Christine, Schwab Andreas, Scuderi Benedetta, Seekatz Ralf, Sell Alexander, Serrano Sierra Rosa, Serra Sánchez Isabel, Sidl Günther, Sienkiewicz Bartłomiej, Sieper Lukas, Simon Sven, Singer Christine, Sippel Birgit, Sjöstedt Jonas, Śmiszek Krzysztof, Smith Anthony, Smit Sander, Sokol Tomislav, Solier Diego, Solís Pérez Susana, Sommen Liesbet, Sonneborn Martin, Sorel Malika, Sousa Silva Hélder, Søvndal Villy, Squarta Marco, Staķis Mārtiņš, Stancanelli Raffaele, Steger Petra, Stier Davor Ivo, Storm Kristoffer, Stöteler Sebastiaan, Stoyanov Stanislav, Strack-Zimmermann Marie-Agnes, Strada Cecilia, Streit Joachim, Strik Tineke, Strolenberg Anna, Sturdza Şerban-Dimitrie, Stürgkh Anna, Sypniewski Marcin, Szczerba Michał, Szekeres Pál, Szydło Beata, Tamburrano Dario, Tânger Corrêa António, Tarczyński Dominik, Tarquinio Marco, Tarr Zoltán, Tavares Carla, Tegethoff Kai, Teodorescu Georgiana, Teodorescu Måwe Alice, Ter Laak Ingeborg, Terras Riho, Tertsch Hermann, Thionnet Pierre-Romain, Timgren Beatrice, Tinagli Irene, Tobback Bruno, Tobé Tomas, Tolassy Rody, Tomac Eugen, Tomašič Zala, Tomaszewski Waldemar, Tomc Romana, Tonin Matej, Toom Jana, Topo Raffaele, Torselli Francesco, Tosi Flavio, Toussaint Marie, Tovaglieri Isabella, Toveri Pekka, Tridico Pasquale, Trochu Laurence, Tsiodras Dimitris, Turek Filip, Tynkkynen Sebastian, Uhrík Milan, Ušakovs Nils, Vaidere Inese, Valchev Ivaylo, Vălean Adina, Valet Matthieu, Van Brempt Kathleen, Van Brug Anouk, van den Berg Brigitte, Vandendriessche Tom, Van Dijck Kris, Van Lanschot Reinier, Van Leeuwen Jessika, Vannacci Roberto, Van Sparrentak Kim, Varaut Alexandre, Vasconcelos Ana, Vautmans Hilde, Vedrenne Marie-Pierre, Ventola Francesco, Verheyen Sabine, Verougstraete Yvan, Veryga Aurelijus, Vešligaj Marko, Vicsek Annamária, Vieira Catarina, Vigenin Kristian, Vilimsky Harald, Vincze Loránt, Virkkunen Henna, Vistisen Anders, Vivaldini Mariateresa, Volgin Petar, von der Schulenburg Michael, Vondra Alexandr, Voss Axel, Vozemberg-Vrionidi Elissavet, Vrecionová Veronika, Vázquez Lázara Adrián, Waitz Thomas, Walsh Maria, Walsmann Marion, Warborn Jörgen, Warnke Jan-Peter, Wąsik Maciej, Wcisło Marta, Wechsler Andrea, Weimers Charlie, Werbrouck Séverine, Wiesner Emma, Wiezik Michal, Wilmès Sophie, Winkler Iuliu, Winzig Angelika, Wiseler-Lima Isabel, Wiśniewska Jadwiga, Wölken Tiemo, Wolters Lara, Yar Lucia, Yon-Courtin Stéphanie, Yoncheva Elena, Zacharia Maria, Zajączkowska-Hernik Ewa, Zalewska Anna, Žalimas Dainius, Zan Alessandro, Zarzalejos Javier, Zdechovský Tomáš, Zdrojewski Bogdan Andrzej, Zīle Roberts, Zingaretti Nicola, Złotowski Kosma, Zoido Álvarez Juan Ignacio, Zovko Željana, Zver Milan

Excused:

Gómez López Sandra, Homs Ginel Alicia, Lalucq Aurore

MIL OSI Europe News –

January 25, 2025

MIL-OSI Russia: Rosneft increases efficiency of oil production and transportation

Translation. Region: Russian Federation –

Source: Rosneft – Rosneft – An important disclaimer is at the bottom of this article.

Rosneft Research Institute in Ufa held the annual scientific and technical conference “Oil and Gas Production and Transportation. New Technologies and Solutions”. The event brought together more than 200 industry experts from all over Russia. The Company’s scientists presented innovative technologies and digital solutions to improve the efficiency of field pipelines and wells.

Specialists from the Ufa Institute announced the development of a “virtual flow meter” algorithm for online monitoring of field production. The machine learning-based algorithm will compare well production rates with their potential in real time and create a list of wells whose production can be increased. The technology is planned to be implemented as part of the Digital Field project at Bashneft fields (part of Rosneft). The “virtual flow meter” algorithm is implemented in the RN-VEGA corporate software package and is already used by oil workers when interpreting field data.

The conference participants were presented with a new software product “RN-STIM” for modeling and designing the bottomhole formation zone. The simulator takes into account the characteristics of the rock, chemicals and the features of their interaction. This gives oil workers the opportunity to choose the most effective parameters of the well operation and increase production at the well. The functionality of the software was clearly demonstrated on real production projects during the organized master class.

Another unique development of the institute is the technology of welding bimetallic pipes*. Specialists have found a way to solve the problem of increased hardness and brittleness of the transition layer during one-sided welding of this type of pipes. Instead of the generally accepted technology of making the entire weld with stainless materials, Rosneft scientists proposed using a certain combination of stainless and low-alloy welding materials in combination with the redistribution of the force of the welding arc on the weld. Mechanical tests have shown that this technology increases the strength characteristics of welded joints, while the cost of welding materials is reduced by 3-7 times.

The conference participants showed particular interest in the application of successful practices at production enterprises. With the participation of specialists from the Ufa corporate institute, a technology for treating the bottomhole zone of a well using an acid-hydrocarbon emulsion was introduced. The composition provides an effective impact on the bottomhole zone of wells, due to the dissolution of asphaltene-resin-paraffin deposits and carbonate minerals of the rock. The technology was tested at Rosneft fields – the result was an increase in the growth of well flow rates by 15-20%.

*Bimetallic pipes are pipes consisting of two firmly connected layers of steel of different types

Department of Information and Advertising of PJSC NK Rosneft October 24, 2024

Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

MIL OSI Russia News –

January 25, 2025

MIL-OSI Asia-Pac: The Union Minister Shri Nitin Gadkari Emphasizes Use of AI and Advanced Technology to Improve Road Safety

Source: Government of India (2)

The Union Minister Shri Nitin Gadkari Emphasizes Use of AI and Advanced Technology to Improve Road Safety

Shri Gadkari Pushes for Innovation in Road Safety Technology and Collaboration with Startups

Posted On: 24 OCT 2024 2:52PM by PIB Delhi

The Union Minister of Road Transport & Highways, Shri Nitin Gadkari, addressed the 12th edition of the Traffic InfraTech Expo, emphasizing the critical need to improve road safety and the adoption of advanced technologies in the transportation sector in New Delhi, today.

In his address, Shri Gadkari underscored the alarming statistics of road accidents in India, noting that the country experiences around 5 lakh accidents each year, resulting in numerous fatalities. He highlighted that more than half of these casualties are in the age group of 18-36 years. The economic loss due to road accidents is estimated at 3% of the country’s GDP, he said. He stressed that improving road safety is a top priority for the government, and measures are already underway to address this issue.

The Minister highlighted the need for improvements in road engineering, emphasizing the use of the latest global technologies. He expressed a keen interest in collaborating with Indian startups and young engineers who are innovating in this area. Shri Gadkari noted that road safety cannot be achieved without integrating advanced engineering solutions, enforcement of laws, and the adoption of cutting-edge technologies like Artificial Intelligence.

Shri Gadkari also spoke about new approaches to law enforcement using technology. He mentioned efforts to identify traffic violations through AI and other innovative methods, allowing authorities to enforce penalties accurately. He also outlined plans for upgrading toll collection methods, including the exploration of satellite toll systems, which would improve efficiency and ensure transparency in toll collection.

Highlighting the Ministry’s approach to enhancing road safety, Shri Gadkari shared that the government has decided to appoint experts from the private sector to collaborate on developing technological solutions. A dedicated expert committee will evaluate proposals from startups and industry leaders, ensuring that the best ideas are implemented. the committee has been directed to finalize its evaluations within three months, aiming for rapid improvements in the sector.

The Minister emphasized the government’s commitment to maintaining high-quality standards, particularly in the use of surveillance technology like cameras. He assured that quality and standards would not be compromised, regardless of whether solutions come from large or small companies. Shri Gadkari encouraged small firms with innovative technologies to participate in government tenders, stressing the importance of cost-effectiveness while maintaining profit margins without exploitation.

While concluding his remarks, Shri Gadkari highlighted the importance of collaboration between the road and transport sectors to create integrated solutions. He expressed confidence that by using the best technologies, India can achieve transparency, reduce costs, and significantly enhance road safety. Shri Gadkari extended his gratitude to the participants for their efforts in research and development, bringing the Indian industry to international standards, and expressed pride in their contributions to the nation.

Union Minister Shri Nitin Gadkari called upon all stakeholders—government, private sector, and startups—to come together in addressing the urgent issue of road safety in India.

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MIL OSI Asia Pacific News –

January 25, 2025

MIL-OSI Asia-Pac: Emerging Technologies Flourish at ITU-WTSA 2024’s Innovation Xchange

Source: Government of India

Emerging Technologies Flourish at ITU-WTSA 2024’s Innovation Xchange

Groundbreaking event unites international tech leaders, academia, startups, researchers & industry to seek solutions in new-age technologies

“We are at a pivotal point where emerging technologies are converging & laying the foundation of a new world”: Dr. Pemmasani Chandra Sekhar, Minister of State for Communications and Rural Development

Posted On: 24 OCT 2024 9:19AM by PIB Delhi

The Innovation Xchange, a cornerstone event of the ITU-WTSA 2024 was held yesterday at Bharat Mandapam, New Delhi, marking a significant milestone in global technological collaboration.

The objective of the program was to foster international collaboration and innovation across key thematic areas in emerging technologies. There was extensive cross-pollination of ideas and global expertise. The program included thematic discussions on NextGen Networks (5G/6G), AI & robotics, Secured Communication Networks, and Quantum Communications.

The rapid technological advancements warrant the fusion of diverse perspectives from around the globe and therefore, each theme involved teams from India as well as some other ITU member countries namely USA, UK, UAE, Singapore. The composition of the teams included a lead faculty, a research student, and a startup working in the same thematic area.

The inaugural session was chaired by Dr. Pemmasani Chandra Sekhar, Minister of State for Communications and Rural Development and was attended by Ms. Madhu Arora, Member Technology, Digital Communications Commission, Department of Telecommunications, India, Dr. Cosmas Luckyson Zavazava, Director of the Telecommunication Development Bureau (BDT), International Telecommunication Union (ITU) and Mr. Sanjeev K Sharma, Deputy Director General, Department of Telecom, Ministry of Communication.

In his inaugural address, Dr. Pemmasani Chandra Sekhar, Minister of State for Communications and Rural Development India spoke about how over the last decade India has been tirelessly working under leadership of the Prime Minister, Shri Narendra Modi to create an ecosystem that is conducive to growth of businesses and in particular startups. Since the launch of “Startup India, Standup India” initiative in 2015, India has emerged as the 3rd largest ecosystem for startups globally with over 1.12 lakh Government recognized startups. The academic research and startups are solving problems in diverse industrial sectors. He also said that the Bharat 6G Alliance, a vital platform uniting industry leaders, academia, startups, and government, is set to drive 6G innovation, guided by the vision of “Innovate in India, for India and the World.”

Inspiring the audience, he quoted from his own experience of being a startup founder and said “To create a successful and impactful business, it’s essential to solve real problems rather than just creating products. Innovate and disrupt by thinking beyond the obvious” He advised youngsters to Start small, but think big, and act now. He quipped “You don’t need all the resources in the world to begin—just conviction. Many waits for perfect conditions or significant funding, but the best time to start is now. Action creates momentum, and momentum fuels success”. On the inevitability of setbacks, he encouraged the audience by saying “Be comfortable with failure—it’s part of the process. Embrace them, learn, and pivot when needed. Persistence is what separates dreamers from achievers”. He further advised to Build a purpose-driven business by focusing on impact – “When your mission aligns with a meaningful purpose, everything falls into place. Customers, partners, and investors are drawn to ventures that aim to make a difference.” He concluded by saying “invest in people—your team is your greatest asset. When your team feels invested in the mission, they will give their best every day.”

In her address, Ms Madhu Arora, highlighted some of the initiatives of the Indian Government that go a long way in promoting innovation and start-up ecosystems in next-generation technologies. She urged ITU to collaborate with India in these areas. These initiatives included ‘setting up of hundred ‘5G Use Case Labs’, 5G Intelligent Villages, AI led Digital Twins.

Dr. Cosmas Luckyson Zavazava, Director of the Telecommunication Development Bureau (BDT), International Telecommunication Union (ITU) mentioned “It’s important to remember that people decided to innovate because they wanted to improve the quality of life and open new doors of opportunities and choice. Technology is just a means to an end I call upon everyone in the development sector to work towards unmasking technology and showing its human impact. This includes coordinating food supply, medication, and shelter to save humanity.” He then spoke about the 17 Sustainable Development Goals (SDGs) and mentioned that “they can only be achieved if we put digital at the centre of everything we do”.

The Innovation Xchange event received an overwhelming response as it could connect the dots between research and productization. By integrating startup representatives into the teams, discussions were grounded in real-world applications and to the needs of productizing the research. By providing a platform for startups to engage with researchers and industry leaders, it facilitated a fertile ground for taking new research and ideas to market.

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MIL OSI Asia Pacific News –

January 25, 2025

MIL-OSI Asia-Pac: ITU Kaleidoscope-2024 Concludes with Focus on Connectivity and Inclusivity

Source: Government of India (2)

ITU Kaleidoscope-2024 Concludes with Focus on Connectivity and Inclusivity

Collaboration with international community will further future-proof our communications systems: Mr. Rohit Sharma, Member (Services), Digital Communications Commission, DoT

Youth participation in the standardization process not only drives innovation but also opens the door to significant opportunities, including the creation of standard essential patents: Mr. Bilel Jamoussi, Deputy to the Director and Chief of Telecommunication Standardization Policy Department

Posted On: 24 OCT 2024 8:49AM by PIB Delhi

The three-day ITU Kaleidoscope-2024 being held at the ITU-WTSA 2024 centered on bridging the digital divide, and exploring how emerging technologies can connect underserved population concluded yesterday. The day additionally featured engaging discussions on the role of youth in standardization, with students and young professionals sharing their perspectives on how to engage the next generation in global standardization efforts.

Mr. Rohit Sharma, Member (Services), Digital Communications Commission, Department of Telecommunications, Government of India, chaired the session on “How to respond quantum computing threats and its standardization trend: Quantum Key Distribution and Post Quantum Cryptography.” The keynote session by Prof. Heung Youl Youm, Chairman of ITU-T Study Group 17, highlighted the challenges in cybersecurity posed by quantum computing, emphasizing the need for standardization in post-quantum cryptography.

Mr. Rohit Sharma, Member (Services), Department of Telecommunications in his opening remarks, stated, “ As we navigate the challenges of the digital age, the emergence of quantum computing presents both immense opportunities and significant risks. While this technology holds the potential to revolutionize fields like cryptography and secure communications, it also poses new challenges that must be addressed at a global scale. The standardization of Quantum Key Distribution (QKD) and the development of post-quantum cryptography are essential steps in preparing for this technological shift. Moreover, collaboration with international community will further future-proof our communications systems.”

The first panel of Day 3 titled, “Connecting the Remaining 3 Billion,’ focused on the critical issue of closing the global digital divide. Moderated by Prof. Mohamed-Slim Alouini from King Abdullah University of Science and Technology (KAUST), Saudi Arabia, This session included Ellie Joo, Marketing and Policy Lead – Taara at X and Satya N. Gupta, Secretary General of the ITU-APT Foundation of India. Satya N. Gupta presented PM-Wani (Prime Minister Wi-Fi Access Network Interface), a successful initiative in India that leverages public Wi-Fi to provide affordable internet access to rural communities. His talk highlighted how such scalable models can be adapted globally to foster digital inclusion and bridge the digital divide.

The second panel titled, “Youth and Standardisation,” brought attention to the growing role of youth in telecommunications standards development. Mr. Sharad Arora, international expert in e-learning, security, telecommunications, and IoT gave a presentation on The Role of Standards and Standardization Activities, whereas, Mr. Thomas Basikolo Programme Officer in the Telecommunication Standardization Policy Department of the ITU Telecommunication Standardization Bureau gave a presentation on ITU Standardisation work and its international standards. Additionally, a panel session was scheduled which was moderated by Ms. Kumud Jindal, ADG-Digital Intelligence, Department of Telecommunications. The panelists included Sonali Garg, Manager-Standards & Research Group, HFCL; Vinit Ranjan, ADG-Wireless Finance; Diksha Dhiman, ADET- NTIPRIT; and Akshat Shrivastava, Student B.Tech Final Year, IIT-Delhi. The session emphasized on the need to enhance youth participation in shaping the future of global standards for emerging technologies such as 5G, AI, and quantum communication. The session concluded with a call to action for increased youth representation in international organizations to ensure that the next generation actively contributes to building an inclusive and secure digital future

Bilel Jamoussi, Deputy to the Director and Chief of Telecommunication Standardization Policy Department in his opening remarks for the session, stated, “Youth participation in the standardization process not only drives innovation but also opens the door to significant opportunities, including the creation of standard essential patents. This can lead to both recognition and financial benefits. By engaging in the standardization process, you not only contribute to global solutions but also position yourselves to lead successful ventures in the future.”

The conference concluded with a closing ceremony led by Mario Maniewicz, Director of Radiocommunication Bureau (BR), ITU, and Deb Kumar Chakrabarti, Director General, National Communication Academy, Department of Telecommunications & General Chairman of Kaleidoscope 2024. Awards of CHF 6000 were presented for the best three research papers. Young authors certificates were given to 18 young authors of the selected papers. Among the exceptional submissions, three projects were awarded top honours for their outstanding contributions.

Deb Kumar Chakrabarti, Director General, National Communication Academy, Ghaziabad, Department of Telecommunications & General Chairman of Kaleidoscope 2024, in his closing remarks, stated, “This event provided a unique platform for thought leaders to share ideas on the future of telecom, and I extend my congratulations to the Kaleidoscope award winners and all participants. The diverse presentations showcased the critical role of technologies like 6G, IoT, AI, and quantum computing in shaping the global digital landscape and addressing key challenges. The insights gained here will guide future strategies, enhance telecom networks, and empower millions, contributing to a more inclusive and sustainable world.”

The 1st prize went to the Artificial Intelligence Driven Tilt Sensor-Based Smart Drinking Device for Stroke Survivors, developed by Preeta Sharan and Anup M Upadhyaya from The Oxford College of Engineering, India, along with R Vasanthan from The Oxford College of Physiotherapy, India. The 2nd prize was awarded to the Elderly Wellness Companion With Voice and Video-Based Health Anomaly Detection, created by Dhananjay Kumar, Mehal Sakthi M S, and Sowbarnigaa K S from Anna University, India, alongside Ved P. Kafle from the National Institute of Information and Communications Technology, Japan. The 3rd prize was given to Alpha-Bit: An Android App for Enhancing Pattern Recognition Using CNN and Sequential Deep Learning, developed by Gobi Ramasamy, Arokia Paul Rajan, and Priyadharshini Rengasamy from Christ University, India, along with Antoine Bagula from the University of the Western Cape, South Africa.

The event emphasized the importance of continued collaboration to achieve global digital transformation, particularly through inclusivity and access.

About ITU Kaleidoscope

ITU Kaleidoscope is an annual event that has been instrumental in bridging the gap between academia and industry, promoting the exchange of ideas that contribute to the global standardization of telecommunications technologies. Since its inception in 2008, Kaleidoscope has become one of the most influential platforms for discussing the future of digital communications, providing a space where researchers and innovators can present their most promising work.

Visit the official ITU Kaleidoscope 2024 website at https://www.itu.int/en/ITU-T/academia/kaleidoscope/2024/Pages/default.aspx or simply type ITU Kaleidoscope 2024 in google and select the first displayed website for detailed information on the event program, speakers, and sessions.

About WTSA 2024:

WTSA 2024, organized by the International Telecommunication Union (ITU), serves as a platform for the development and implementation of global telecommunications standards, uniting regulators, industry leaders, and policymakers to shape the future of communications worldwide.

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MIL OSI Asia Pacific News –

January 25, 2025

MIL-OSI: Bread Financial Declares Dividend on Common Stock

Source: GlobeNewswire (MIL-OSI)

COLUMBUS, Ohio, Oct. 24, 2024 (GLOBE NEWSWIRE) — Bread Financial Holdings, Inc.^® (NYSE: BFH), a tech-forward financial services company that provides simple, flexible payment, lending and saving solutions, today announced that its Board of Directors declared a quarterly cash dividend of $0.21 per share on the Company’s common stock, payable on December 13, 2024 to stockholders of record at the close of business on November 8, 2024.

About Bread Financial^®
Bread Financial ^® (NYSE: BFH) is a tech-forward financial services company providing simple, personalized payment, lending and saving solutions. The company creates opportunities for its customers and partners through digitally enabled choices that offer ease, empowerment, financial flexibility and exceptional customer experiences. Driven by a digital-first approach, data insights and white-label technology, Bread Financial delivers growth for its partners through a comprehensive suite of payment solutions that includes private label and co-brand credit cards and Bread Pay ^® buy now, pay later products. Bread Financial also offers direct-to-consumer products that give customers more access, choice and freedom through its branded Bread Cashback ^® American Express ^® Credit Card, Bread Rewards™ American Express ^® Credit Card and Bread Savings ^® products. 

Headquartered in Columbus, Ohio, Bread Financial is powered by its approximately 7,000 global associates and is committed to sustainable business practices. To learn more about Bread Financial, visit breadfinancial.com or follow us on Facebook, LinkedIn, X and Instagram.

Contacts
Brian Vereb – Investor Relations
Brian.Vereb@BreadFinancial.com

Susan Haugen – Investor Relations
Susan.Haugen@BreadFinancial.com

Rachel Stultz – Media
Rachel.Stultz@BreadFinancial.com

The MIL Network –

January 25, 2025

Category: Machine Learning

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Cantwell Celebrates 67 New Affordable Homes At Airway Heights Ribbon-Cutting Ceremony

In addition to 51 new rental units, Highland Village Phase II will include 16 for-sale affordable homes; A Cantwell-championed federal program covered $13.2 million, or 62% of total project cost

Diluting a powerful message

A big fish isn’t always a good fish

Not camp enough, yet not careful enough

Controversial research

New criteria

Alignment with the law

Ethical concerns

Implications on future research

The Union Minister Shri Nitin Gadkari Emphasizes Use of AI and Advanced Technology to Improve Road SafetyShri Gadkari Pushes for Innovation in Road Safety Technology and Collaboration with Startups

Emerging Technologies Flourish at ITU-WTSA 2024’s Innovation XchangeGroundbreaking event unites international tech leaders, academia, startups, researchers & industry to seek solutions in new-age technologies

ITU Kaleidoscope-2024 Concludes with Focus on Connectivity and InclusivityCollaboration with international community will further future-proof our communications systems: Mr. Rohit Sharma, Member (Services), Digital Communications Commission, DoT

The Union Minister Shri Nitin Gadkari Emphasizes Use of AI and Advanced Technology to Improve Road Safety

Shri Gadkari Pushes for Innovation in Road Safety Technology and Collaboration with Startups

Emerging Technologies Flourish at ITU-WTSA 2024’s Innovation Xchange

Groundbreaking event unites international tech leaders, academia, startups, researchers & industry to seek solutions in new-age technologies

ITU Kaleidoscope-2024 Concludes with Focus on Connectivity and Inclusivity

Collaboration with international community will further future-proof our communications systems: Mr. Rohit Sharma, Member (Services), Digital Communications Commission, DoT