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Category: Pandemic

  • MIL-OSI United Kingdom: Scottish Greens look ahead to record results at next Scottish elections

    Source: Scottish Greens

    26 Oct 2024 Finance

    The Scottish Greens have a bold and progressive vision for a fairer, greener and better Scotland.

    More in Finance

    Scottish Green co-leader Lorna Slater rallied party activities at their autumn conference in Greenock, saying their party will stand at the next election on a “boldly progressive platform of real change.”

    Slater celebrated her party’s achievements in government, from free bus travel for young people to record investment in climate and nature, and said her party would continue to be “effective and constructive” from opposition. 

    Addressing her party conference, Ms Slater said, “I’m deeply proud of what we achieved during our time in Government.

    “From free bus travel for all our young people, to the biggest expansion of the living wage and the Scottish Child Payment since devolution; Scotland’s first emergency rent freeze and eviction protections during the cost of living crisis, bans on polluting behaviours like incineration, single use plastics and disposable vapes, increased multi-year funding for nature restoration and active travel  the policies you, our Scottish Green members, decided on at past conferences were being put into action. Making people’s lives better, day in, day out.

    “In or out of government we are committed to delivering the change that Scotland needs.”

    Turning her attention to record general election results for her party earlier in the year, Ms Slater said: “We know that voters appreciate Green values and leadership. They told us so, at this year’s General election, which saw record Scottish Green results up and down the country.

    “Whilst Rishi Sunak couldn’t even muster an umbrella, our activists pulled off our biggest on-the-ground campaign since before the pandemic. A substantial effort at short notice. 

    “In the record 44 seats in which we stood, we nearly doubled our vote share, with over 92,000 people casting their vote for us and demonstrating support for the Scottish Greens all over Scotland, including in the islands. 

    “In our biggest cities, we are now the third party, beating the Tories and the Lib Dems in one of their biggest elections. And how did we do it? Through your hard work, determination, and our positive vision for how Green values and policies can change this country. 

    “In the next few months branches will begin selecting their target wards and candidates and start looking ahead to Holyrood 2026.  

    “I am glad that the Scottish Greens are being recognised as influential, and we can do even more with more of us elected into Holyrood.

    “Whilst the SNP lurch to the right and court the votes and donations of Big Oil, and Labour continue to support nuclear weapons and Tory fiscal rules that let the rich get even richer, while public services crumble, the Scottish Greens will stand on a boldly progressive platform of real change. We have a clear position. We have a big opportunity.”

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: Patrick Harvie Autumn Conference 2024 speech

    Source: Scottish Greens

    26 Oct 2024 Finance

    Patrick Harvie called for the Scottish Government to take serious climate action and deliver a fairer, greener and better budget for Scotland.

    Glasgow

    Scottish Greens Co-leader, Net Zero, Constitution and External Affairs spokesperson

    More in Finance

    Greens always aim to offer an inspiring and positive vision at election times, because we believe that politics is capable of changing our society for the better.

    Labour, by contrast, spent the whole election campaign trying to lower everyone’s expectations. Maybe they thought it was better to under-promise, rather than under-deliver. And yet somehow, they have managed to do both.

    I don’t think there can be a single voter left in the UK who can honestly say they’ve been inspired by what has happened since. 

    Of course there is reason to be happy about seeing the end of 14 years of Tory austerity, corruption, and downright lies; to be rid of Boris Johnson and his pals partying in Downing street; or the shameless profiteering on the back of Brexit and the pandemic; or the Liz Truss blink-and-you-miss-it catastrophe – it’s no wonder the British public jumped at the opportunity for a change of government. 

    But Labour’s offer to the electorate, after they’d dumped every remnant of a radical programme and purged their progressive candidates, was so insipid that I warned that the UK was likely to get a change of government without a change of politics. And that’s exactly what we’ve seen from Keir Starmer’s Labour since then. 

    We’ve just passed the 100 day mark of this new Labour government. And what have they achieved in that time? 

    Keir Starmer has some lovely new suits, and if you can believe it thousands of pounds worth of quite boring glasses. Some of the cabinet have had some nice free holidays and Taylor Swift tickets.

    But have they lifted the cruel two-child benefit cap which has forced families, and especially women and children into poverty? Perish the thought.

    Have they cut the artificial link between gas and electricity prices, instantly making renewable home heating cheap and affordable for millions? Of course not, instead they’ve removed winter fuel payments from nearly 10 million pensioners, forcing vulnerable older people to choose between heating their home and feeding themselves. 

    It is a decision that is up there with the worst of the Tories; it’s one that will kill people. And unlike so many of their bad policies, this one wasn’t even in the Labour manifesto.

    Our message to Keir Starmer is simple: reverse this cut. Do it now or your first year’s legacy will be a cold and deadly winter.

    This is a Labour Government working for the few, not the many. A Labour government that is defending a broken status quo and standing up for the interests of big business and their corporate donors rather than working people.

    Here in Scotland, Anas Sarwar told us to ‘read his lips’, promising that there would be ‘no austerity under Labour’. 

    Anas was probably hoping that a long Labour honeymoon would let him coast for much of the way to the 2026 election. Instead people have been given an instant reminder of just how underwhelming a Labour government can be.

    Two weeks ago, Scottish Labour had the chance to take a different path, and condemn their London colleagues’ decision to means-test the winter fuel payment in a vote in the Scottish Parliament. 

    Instead, they doubled down, standing up for Starmer’s decision and supporting one of the cruellest cuts for years.

    But perhaps Labour’s most shameful failure has been on the international stage.

    The last 12 months have seen daily horrors and atrocities inflicted on the people of Gaza. So many children, so many whole families, have had their lives destroyed in some of the gravest war crimes in living memory. It has been the collective punishment of millions of people.

    The killing has spread to Lebanon, and missile attacks between Israel and Iran, with Netanyahu deliberately increasing the risk of a wider regional war.

    For the international community this has been one of the most profound moral tests for our age, and it is one that Labour has failed badly.

    When hospitals and homes have been bombed into rubble, and when genocide is being inflicted, we all have a moral duty to stand against it, and to stand on the side of humanity.

    Yet, Keir Starmer can’t even bring himself to end political and military support for Israel or take action against even its most extreme far right politicians.

    Every government is under a moral obligation to do everything possible to oppose the atrocities. That is why we have persistently called on the Scottish Government to block all public contracts for companies who are complicit in the illegal settlements in the West Bank, and why we have called for an end to all public grants and support for the companies who are profiting from the killing.

    Even ending the arms sales and the bombing isn’t enough; peace requires justice, and that means an end to the decades of occupation, and it means statehood for Palestine.

    Conference, it is long past time to end this complicity. It is long past time for a watertight arms embargo and it is long past time for an end to all trade with the illegal settlements in the occupied territories.

    It is long past time for Scotland and the UK to join the call for boycott, disinvestment and sanctions against Israel. Because profiting from atrocities must have no place in a civilised society.

    Conference, the months and years ahead will be crucial for peace, and they will also be crucial for the fate of our planet.

    With global temperatures rising, Governments must take bold and urgent action both here in Scotland and around the world.

    With just 18 months left of this session of the Scottish Parliament, the SNP now face some key tests on an issue they still claim is a priority. 

    The first of those is underway already, as Holyrood considers the Scottish Government’s new Climate bill. 

    The first two Climate Change Acts were statements of high ambition. This third one will be an admission that, as Greens have long argued, Scotland is years behind where we should be. That’s an admission that needs to be made; but making it demands an urgent acceleration of action here and now, not just promise of more plans to come.

    When we last met in April, I said that Scotland has been held back by too many politicians ready to celebrate the supposed ‘world-leading’ targets, while blocking the action needed to actually meet them. 

    We have known for decades how to do it – it’s getting people out of cars and onto clean public transport; replacing fossil fuel for home heating with cheap, abundant renewables; changing the way we manage our land and farm our food, so we lock up more carbon than we produce; and ending the extraction of oil and gas in the north sea for good. 

    But what have we seen in the last six months from the now minority Scottish Government? Instead of accepting that missed targets demand accelerated action, they’ve chosen a sharp u-turn on much of the action that the Greens had been advancing. 

    Cutting the funding for climate projects and net-zero investment; returning to exorbitant prices on our railways; rolling back on new clean standards for home heating – these are not the actions of a Government that is serious about climate action.

    And on some key climate policy areas they are simply stalling. A new energy strategy is long overdue; they said it was ready to publish before the UK election, but we’re still waiting.

    Greens had insisted on a climate assessment of their road building plan for the A96, and it’s been sitting on Ministers’ desks too, unpublished. They need to come clean, publish that assessment, and make a decisive shift in their priorities, from unsustainable road building, to the green, low carbon infrastructure we need.

    While this dithering and inaction continues, experts like Jim Skea of the IPCC are now warning not only could 1.5 degrees of warming be moving out of reach, but that we are potentially headed to more than 3°C of global warming in this century if we carry on with the policies we have at the moment.

    Three degrees plus of warming would be catastrophic for life on this planet. We know what we need to do, yet the Scottish Government is refusing to take some of the most basic steps.

    So the Scottish Greens will not waive the Climate Targets bill through Holyrood as a ‘minor technical amendment’ as the Scottish Government claims. 

    When parliament goes back next week, Mark Ruskell and I will be moving amendments to the bill to try and improve it where we can. 

    We’ll try to keep the interim targets alive, as crucial milestones on our path to net zero; we’ll put forward improvements to the timescales in the bill, because as it stands they risk wasting most of the time left till the next Holyrood election without an agreed climate plan. 

    But the thing is, outside of the text of the Bill, what’s really needed now is an immediate programme of accelerated action to deliver emission cuts that are long overdue.

    A climate plan is only worthwhile if it takes the steps that are necessary, like halting new road building projects, investing in public transport and refusing the plan to expand the gas-fuelled power station at Peterhead. 

    These are just some of the actions that we have put forward as part of our Climate Reset package, published in August. Even these plans aren’t the end of the story, not by a long way, but without these kinds of changes right now, the Scottish Greens cannot vote for the new Climate bill. 

    Our demands for climate action must not end with this legislation however – tackling the climate emergency must be a mission across all parts and all levels of Government. 

    Nowhere is this more pressing than the upcoming Budget. 

    We recognise the challenges that come with the limitations of devolution, as well as the impact of 14 years of Tory cuts and now what looks like continued austerity under Labour. We know our full ambition for a fairer, greener economy can best be delivered with the powers of a normal independent country. 

    However, we’ve also been clear in recent months that we still have a duty to use every last lever available to solve the current crisis in Scotland’s public finances.

    On Wednesday, when the UK Government publishes its budget, we’ll have a better idea of the financial situation Scotland faces. Labour could and should choose to end austerity, and restore Scotland’s budget to workable levels. But given their track record, none of us will be holding our breath for that.

    Even the current rumours of an increase in capital spending won’t take us anywhere near the levels of investment that are needed, and UK Ministers have openly lobbied against the public service cuts they are being told to make.

    There are those in Scottish politics who refuse the responsibility to offer solutions. Instead they demand the impossible, pretending that every tax can be cut and every service funded, and they never need to make the sums add up. That’s dishonest politics, and it’s never been the Green approach.

    The Scottish Greens have been honest about needing to raise more money through fair taxes if we want to support public services. We are proud that we have the most progressive tax system anywhere in the UK. That is because of the work of Green activists and members in this hall and across this country, and our work in Parliament.

    That’s why there’s an extra billion and a half pounds going into public services every year. It’s why councils are now able to raise more tax from second homes, and from the tourism industry.

    We’ll continue to ensure the Scottish Government comes good on the commitments we secured to introduce new local taxes such as on cruise ships and carbon emissions from land, and we’ll hold them to account on the long overdue commitment for wider reform of local government finance – one of the biggest missed opportunities of the first 25 years of the Scottish Parliament, and one where the SNP are still dragging their feet. 

    We’ve shown how we could make big savings by stopping tax breaks to wealthy landowners and enterprise grants to arms companies, and by bringing in more money to support our healthcare system through a public health levy on supermarkets. 

    But these steps are only the start. Extra funds raised through tax or coming from the UK Government must go into reversing the broken promises made by the SNP government since they ended the Bute House Agreement. 

    That includes reinstating the plan to roll out free school meals to all children in Scotland’s primary schools before the next election, restoring the Scottish Green’s Nature Restoration Fund, fully funding an ambitious programme to cut energy bills and emissions from our home heating, and reversing the decision to bring back peak rail fares which punish workers and students.

    But crucially, John Swinney must also address the very real issue of the trust that was broken this year. 

    In the last six months we’ve not only seen Bute House Agreement policies facing the axe, but commitments which were agreed before we even entered Government, as well as commitments that were made to local government. 

    Now, for the first time in four years, we’re being asked to back a Scottish Government budget without a role in overseeing how it’s implemented; to vote on the basis of trust. That is a risk we cannot take lightly.

    Later today, our Finance portfolio lead Ross Greer will open a conference debate calling on the Scottish Government to guarantee no future agreements will be subject to in-year cuts.

    But even with that in place, we still face a challenging few months ahead. As Scottish Green MSPs, we have a responsibility to engage with the process in good faith, and with honesty. But as the only party that ever brought down an SNP budget, as John Swinney knows to his cost, we need to be clear that they cannot take our votes for granted. 

    Conference, this budget marks a turning point, not just because of the difficult circumstances and the challenges facing the country, but also because it’s the last full year budget for this parliamentary session.

    In just 18 months, Scotland will go back to the polls. Voters will make a decision that will be crucial to ensuring a sustainable and livable future for our planet, and for the people of Scotland.

    We’ve made important progress for Green politics in recent years – a string of ‘best ever’ election results at every level, from the 2019 European elections onward. Our first opportunity to enter government, and sustained high polling through turbulent times when the political right threw everything they had at us. 

    And despite the end of the Bute House Agreement, we have a clear role and opportunity to ensure delivery of what we got started, and hold the SNP to account for progressive Green policies they choose to drop, demonstrating to voters the reason why Green votes make a difference.

    But if we want the 2026 election to continue that string of election successes, and turn our potential into a reality, we need to keep learning, developing, and becoming the effective and professional political force we are capable of being.

    As a movement, Greens don’t exist for easy times. We’re here to draw attention to the profound challenges our society faces, from environmental destruction to poverty and inequality, from global threats to democracy, to the abuse of power by those who operate today’s failed economic model for their own short term benefit.

    Lots of politicians talk about “tough choices”, but what they really mean is sticking with the consequences of the status quo. They make brutal choices, but easy ones – hurting the most vulnerable is the path of least resistance, far easier then challenging the powerful. 

    Greens exist to take on the really tough choices – the choice to change our society, our economy and our politics, knowing that it’s not an easy path.

    Our party will do that, and will earn the trust of those who know it needs to be done, if we are united, true to our values, politically disciplined, and honest. And if we work hard – knocking on doors, campaigning in our communities and making green change happen at every level. 

    That’s what we are, that’s why we’re here, to be more than just a party, to be a movement. A movement for people, a movement for planet and a movement for peace. And a movement that is needed more than ever.

    MIL OSI United Kingdom –

  • MIL-OSI: RBB Bancorp Reports Third Quarter 2024 Earnings and Declares Quarterly Cash Dividend of $0.16 Per Common Share

    Source: GlobeNewswire (MIL-OSI)

    LOS ANGELES, Oct. 21, 2024 (GLOBE NEWSWIRE) — RBB Bancorp (NASDAQ:RBB) and its subsidiaries, Royal Business Bank (the “Bank”) and RBB Asset Management Company (“RAM”), collectively referred to herein as “the Company,” announced financial results for the quarter ended September 30, 2024.

    Third Quarter 2024 Highlights

    • Net income totaled $7.0 million, or $ 0.39 diluted earnings per share
    • Return on average assets of 0.72%, compared to 0.76% for the quarter ended June 30, 2024
    • Net interest margin of 2.68% compared to 2.67% for the quarter ended June 30, 2024
    • Repurchased 508,275 shares of common stock for $11.0 million during the quarter ended September 30, 2024, and completed the authorized program
    • Book value and tangible book value per share(1) increased to $28.81 and $24.64 at September 30, 2024, up from $28.12 and $24.06 at June 30, 2024

    The Company reported net income of $7.0 million, or $ 0.39 diluted earnings per share, for the quarter ended September 30, 2024, compared to net income of $7.2 million, or $ 0.39 diluted earnings per share, for the quarter ended June 30, 2024. 

    “Loans increased at a 6% annualized rate in the third quarter as our work to expand lending and deposit relationships began to deliver results,” said David Morris, Chief Executive Officer of RBB Bancorp. “Net interest margin increased slightly, and we are optimistic that it will continue to expand from here.  We continue to work through our non-performing loans and believe we will be able to resolve the majority of them by mid-2025.”

    “The team has done an excellent job building on the Bank’s reputation as one of the premier Asian-centric financial institutions,” said Christina Kao, Chair of the Board of Directors. “Returning the Bank to growth has been a priority for the Board of Directors as we believe it will enhance long-term shareholder value.”

    (1) Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures included at the end of this press release.

    Net Interest Income and Net Interest Margin

    Net interest income was $24.5 million for the third quarter of 2024, compared to $24.0 million for the second quarter of 2024. The $580,000 increase was due to an increase in interest income of $1.5 million offset by an increase in interest expense of $959,000. The increase in interest income was due mostly to higher interest income on loans held for investment (“HFI”) of $2.0 million, partially offset by lower interest income on investment securities of $504,000. The increase in loan interest income was mostly due to higher average loans HFI of $54.4 million combined with a 9 basis point increase in the HFI loan yield. The decrease in investment income was attributed to lower average balances and a lower portfolio yield as proceeds from maturing short-term commercial paper were invested into loans and interest-earning cash. The increase in interest expense was due to higher average interest-bearing deposits of $42.3 million in the third quarter of 2024.

    Net interest margin (“NIM”) was 2.68% for the third quarter of 2024, an increase of 1 basis point from 2.67% for the second quarter of 2024. The increase was due to a 5 basis point increase in the yield on average interest-earning assets, partially offset by a 3 basis point increase in the overall cost of funds. The yield on average interest-earning assets increased to 5.94% for the third quarter of 2024 from 5.89% for the second quarter of 2024 due mainly to a 9 basis point increase in the yield on average loans HFI to 6.13% for the third quarter of 2024. The increase in the loan yield was largely attributed to nonaccrual loan activity in the current and prior quarter, including both the recapture of interest income for fully paid off nonaccrual loans and reversals of interest income for loans migrating to nonaccrual status. Such activity increased the third quarter loan yield by 1 basis point and decreased the second quarter loan yield by 7 basis points. Average loans represented 84% of average interest-earning assets in the third quarter of 2024, unchanged from the second quarter of 2024.

    The overall cost of funds increased to 3.57% in the third quarter of 2024 from 3.54% in the second quarter of 2024 due to a higher average cost of interest-bearing deposits in the third quarter of 2024 as compared to the second quarter of 2024. The overall funding mix remained relatively unchanged from the second quarter of 2024 as the ratio of average noninterest-bearing deposits to average total funding sources remained relatively unchanged at 16% for the third and second quarters of 2024. The all-in spot rate for total deposits was 3.53% at September 30, 2024.

    Provision for Credit Losses

    The Company recorded a provision for credit losses of $3.3 million for the third quarter of 2024 compared to $557,000 for the second quarter of 2024. The third quarter provision took into consideration factors including changes in the loan portfolio mix, higher specific reserves, the outlook for economic conditions and market interest rates, and credit quality metrics, including higher nonperforming, special mention and substandard loans at the end of the third quarter of 2024 as compared to the end of the second quarter of 2024.

    Noninterest Income

    Noninterest income for the third quarter of 2024 was $5.7 million, an increase of $2.3 million from $3.5 million for the second quarter of 2024. This increase was mostly due to a $2.8 million recovery of a fully charged off loan, which had been acquired in a bank acquisition (included in other income), partially offset by lower net gain on other real estate owned (“OREO”) of $292,000. 

    Noninterest Expense

    Noninterest expense for the third quarter of 2024 was $17.4 million, an increase of $297,000 from $17.1 million for the second quarter of 2024. This increase was due to higher salaries and employee benefits expense of $475,000 due in part to higher loan production and higher other expenses of $304,000 due to higher loan related expense. These increases were partially offset by lower insurance and regulatory assessments of $323,000 and lower legal and professional expenses of $302,000, the latter being due to reimbursed legal costs from nonaccrual loan payoffs. The annualized noninterest expenses to average assets ratio was 1.78% for the third quarter of 2024, down from 1.79% for the second quarter of 2024. The efficiency ratio was 57.51% for the third quarter of 2024, down from 62.38% for the second quarter of 2024 due mostly to higher noninterest income.

    Income Taxes

    The effective tax rate was 26.9% for the third quarter of 2024 and 25.9% for the second quarter of 2024. The effective tax rate for 2024 is estimated to range between 26.0% and 28.0%.

    Balance Sheet

    At September 30, 2024, total assets were $4.0 billion, a $122.3 million increase compared to June 30, 2024, and a $78.9 million decrease compared to September 30, 2023.

    Loan and Securities Portfolio

    Loans HFI totaled $3.1 billion as of September 30, 2024, an increase of $44.2 million compared to June 30, 2024 and a $29.1 million decrease compared to September 30, 2023. The increase from June 30, 2024 was primarily due to a $62.5 million increase in commercial real estate (“CRE”) loans, a $5.6 million increase in single-family residential (“SFR”) mortgages and a $2.2 million increase in commercial and industrial (“C&I”) loans, partially offset by a $22.3 million decrease in construction and land development (“C&D”) loans and a $2.2 million decrease in Small Business Administration (“SBA”) loans. The loan to deposit ratio was 98.6% at September 30, 2024, compared to 99.4% at June 30, 2024 and 97.6% at September 30, 2023. 

    As of September 30, 2024, available-for-sale securities totaled $305.7 million, a decrease of $19.9 million from June 30, 2024. As of September 30, 2024, net unrealized losses totaled $23.2 million, a $6.9 million decrease due to decreases in market interest rates, when compared to net unrealized losses as of June 30, 2024.

    Deposits

    Total deposits were $3.1 billion as of September 30, 2024, a $68.6 million increase compared to June 30, 2024 and a $61.9 million decrease compared to September 30, 2023. The increase during the third quarter of 2024 was due to an increase in interest-bearing deposits, while noninterest-bearing deposits remained relatively stable at $543.6 million as of September 30, 2024 compared to $543.0 million as of June 30, 2024. The increase in interest-bearing deposits included an increase in time deposits of $49.6 million and an increase in non-maturity deposits of $18.3 million. The increase in time deposits included a $26.6 million increase in wholesale deposits (brokered deposits, collateralized State of California certificates of deposit and deposits acquired through internet listing services). Wholesale deposits totaled $147.3 million at September 30, 2024, and $120.7 million at June 30, 2024. Noninterest-bearing deposits represented 17.6% of total deposits at September 30, 2024 compared to 18.0% at June 30, 2024.

    Credit Quality

    Nonperforming assets totaled $60.7 million, or 1.52% of total assets, at September 30, 2024, compared to $54.6 million, or 1.41% of total assets, at June 30, 2024. The $6.1 million increase in nonperforming assets was mostly due to two loans that migrated to nonaccrual totaling $13.3 million and consisted of a C&D loan and a CRE loan, offset by $6.1 million in payoffs with no losses and $1.2 million in partial charge-offs of nonaccrual loans.

    Special mention loans totaled $77.5 million, or 2.51% of total loans, at September 30, 2024, compared to $19.5 million, or 0.64% of total loans, at June 30, 2024. The $58.0 million increase was primarily due to one $43.6 million C&D loan for a completed hotel construction project, CRE loans totaling $25.2 million and C&I loans totaling $1.2 million. The increase was partially offset by one $11.7 million C&D loan, which migrated from special mention to substandard during the third quarter of 2024. All special mention loans, including the $11.7 million C&D loan which migrated to substandard rating, are all paying current.

    Substandard loans totaled $79.8 million, or 2.58% of total loans, at September 30, 2024, compared to $63.1 million, or 2.07% of total loans, at June 30, 2024. The $16.8 million increase was primarily due to downgrades of two C&D loans totaling $21.7 million and one $3.3 million CRE loan, offset by loan payoffs of $6.7 million and charge-offs of $1.2 million. Of the substandard loans at September 30, 2024, there are  $19.2 million which are paying current.

    30-89 day delinquent loans, excluding nonperforming loans, decreased $645,000 to $10.6 million as of September 30, 2024, compared to $11.3 million as of June 30, 2024. The decrease in past due loans was mostly due to 12 loans totaling $4.7 million that returned to current status and other decreases totaling $784,000, partially offset by new delinquent loans totaling $4.9 million, of which $4.1 million were 30 days past due.

    As of September 30, 2024, the allowance for credit losses totaled $44.5 million and was comprised of an allowance for loan losses of $43.7 million and a reserve for unfunded commitments of $779,000 (included in “Accrued interest and other liabilities”). This compares to the allowance for credit losses of $42.4 million comprised of an allowance for loan losses of $41.7 million and a reserve for unfunded commitments of $624,000 at June 30, 2024. The $2.1 million increase in the allowance for credit losses for the third quarter of 2024 was due to a $3.3 million provision for credit losses, including higher specific reserves of $2.5 million, offset by net charge-offs of $1.2 million. The increase in specific reserves and charge-offs in the third quarter of 2024 was primarily due to a decrease in the estimated fair value of collateral dependent loans, including estimated selling costs. Charge-offs in the third quarter of 2024 were related to one C&D loan and one CRE loan, which were written-down to their estimated fair value. The allowance for loan losses as a percentage of loans HFI was 1.41% at September 30, 2024, compared to 1.37% at June 30, 2024. The allowance for loan losses as a percentage of nonperforming loans was 72% at September 30, 2024, a decrease from 76% at June 30, 2024. The decrease in the allowance for loan losses as a percentage of nonperforming loans was due in part to an increase in individually evaluated loans, which required no allowance for loan losses.

        For the Three Months Ended
    September 30, 2024    		     For the Nine Months Ended
    September 30, 2024    		  
    (dollars in thousands)   Allowance for loan losses     Reserve for unfunded loan commitments     Allowance for credit losses     Allowance for loan losses     Reserve for unfunded loan commitments     Allowance for credit losses  
    Beginning balance   $ 41,741     $ 624     $ 42,365     $ 41,903     $ 640     $ 42,543  
    Provision for credit losses     3,145       155       3,300       3,718       139       3,857  
    Less loans charged-off     (1,210 )     —       (1,210 )     (1,991 )     —       (1,991 )
    Recoveries on loans charged-off     9       —       9       55       —       55  
    Ending balance   $ 43,685     $ 779     $ 44,464     $ 43,685     $ 779     $ 44,464  


    Shareholders’ Equity

    At September 30, 2024, total shareholders’ equity was $509.7 million, a $1.6 million decrease compared to June 30, 2024, and a $7.2 million increase compared to September 30, 2023. The decrease in shareholders’ equity for the third quarter of 2024 was due to common stock repurchases of $11.0 million and common stock cash dividends paid of $2.9 million, offset by net income of $7.0 million, lower net unrealized loss on available-for-sale securities of $4.8 million and equity compensation activity of $528,000. Book value per share and tangible book value per share(1) increased to $28.81 and $24.64 at September 30, 2024, up from $28.12 and $24.06 at June 30, 2024.

    On February 29, 2024, the Board of Directors authorized the repurchase of up to 1,000,000 shares of common stock. The repurchase program permitted shares to be repurchased in open market or private transactions, through block trades, and pursuant to any trading plan that may be adopted in accordance with Securities and Exchange Commission (“SEC”) Rules 10b5-1 and 10b-8. The Company repurchased 508,275 shares at a weighted average share price of $21.53 during the third quarter of 2024 and completed the authorized program.

    Dividend Announcement

    The Board of Directors has declared a common stock cash dividend of $0.16 per common share, payable on November 12, 2024 to shareholders of record on October 31, 2024.

      Contact:
    Lynn Hopkins, Chief Financial Officer
      (213) 716-8066
      lhopkins@rbbusa.com

    (1) Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures included at the end of this press release.


    Corporate Overview

    RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California. As of September 30, 2024, the Company had total assets of $4.0 billion. Its wholly-owned subsidiary, Royal Business Bank, is a full service commercial bank, which provides consumer and business banking services predominately to the Asian-centric communities in Los Angeles County, Orange County, and Ventura County in California, in Las Vegas, Nevada, in Brooklyn, Queens, and Manhattan in New York, in Edison, New Jersey, in the Chicago neighborhoods of Chinatown and Bridgeport, Illinois, and on Oahu, Hawaii. Bank services include remote deposit, E-banking, mobile banking, commercial and investor real estate loans, business loans and lines of credit, commercial and industrial loans, SBA 7A and 504 loans, 1-4 single family residential loans, trade finance, a full range of depository account products and wealth management services. The Bank has nine branches in Los Angeles County, two branches in Ventura County, one branch in Orange County, California, one branch in Las Vegas, Nevada, three branches and one loan operation center in Brooklyn, three branches in Queens, one branch in Manhattan in New York, one branch in Edison, New Jersey, two branches in Chicago, Illinois, and one branch in Honolulu, Hawaii. The Company’s administrative and lending center is located at 1055 Wilshire Blvd., Los Angeles, California 90017, and its operations center is located at 7025 Orangethorpe Ave., Buena Park, California 90621. The Company’s website address is www.royalbusinessbankusa.com.

    Conference Call

    Management will hold a conference call at 11:00 a.m. Pacific time/2:00 p.m. Eastern time on Tuesday, October 22, 2024, to discuss the Company’s third quarter 2024 financial results.

    To listen to the conference call, please dial 1-888-506-0062 or 1-973-528-0011, the Participant ID code is 392446, conference ID RBBQ324. A replay of the call will be made available at 1-877-481-4010 or 1-919-882-2331, the passcode is 51366, approximately one hour after the conclusion of the call and will remain available through November 5, 2024.

    The conference call will also be simultaneously webcast over the Internet; please visit our Royal Business Bank website at http://www.royalbusinessbankusa.com and click on the “Investors” tab to access the call from the site. This webcast will be recorded and available for replay on our website approximately two hours after the conclusion of the conference call.

    Disclosure

    This press release contains certain non-GAAP financial disclosures for tangible common equity and tangible assets and adjusted earnings. The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. Please refer to the tables at the end of this release for a presentation of performance ratios in accordance with GAAP and a reconciliation of the non-GAAP financial measures to the GAAP financial measures.

    Safe Harbor

    Certain matters set forth herein (including the exhibits hereto) constitute forward-looking statements relating to the Company’s current business plans and expectations and our future financial position and operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance and/or achievements to differ materially from those projected. These risks and uncertainties include, but are not limited to, the effectiveness of the Company’s internal control over financial reporting and disclosure controls and procedures; the potential for additional material weaknesses in the Company’s internal controls over financial reporting or other potential control deficiencies of which the Company is not currently aware or which have not been detected; business and economic conditions generally and in the financial services industry, nationally and within our current and future geographic markets, including the tight labor market, ineffective management of the United States (“U.S.”) federal budget or debt or turbulence or uncertainly in domestic or foreign financial markets; the strength of the U.S. economy in general and the strength of the local economies in which we conduct operations; adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments; our ability to attract and retain deposits and access other sources of liquidity; possible additional provisions for credit losses and charge-offs; credit risks of lending activities and deterioration in asset or credit quality; extensive laws and regulations and supervision that we are subject to, including potential supervisory action by bank supervisory authorities; increased costs of compliance and other risks associated with changes in regulation, including any amendments to the Dodd-Frank Wall Street Reform and Consumer Protection Act; compliance with the Bank Secrecy Act and other money laundering statutes and regulations; potential goodwill impairment; liquidity risk; failure to comply with debt covenants;  fluctuations in interest rates; risks associated with acquisitions and the expansion of our business into new markets; inflation and deflation; real estate market conditions and the value of real estate collateral; the effects of having concentrations in our loan portfolio, including commercial real estate and the risks of geographic and industry concentrations; environmental liabilities; our ability to compete with larger competitors; our ability to retain key personnel; successful management of reputational risk; severe weather, natural disasters, earthquakes, fires; or other adverse external events could harm our business; geopolitical conditions, including acts or threats of terrorism, actions taken by the U.S. or other governments in response to acts or threats of terrorism and/or military conflicts, including the conflicts between Russia and Ukraine, in the Middle East, and increasing tensions between China and Taiwan, which could impact business and economic conditions in the U.S. and abroad; public health crises and pandemics, and their effects on the economic and business environments in which we operate, including our credit quality and business operations, as well as the impact on general economic and financial market conditions; general economic or business conditions in Asia, and other regions where the Bank has operations; failures, interruptions, or security breaches of our information systems; climate change, including any enhanced regulatory, compliance, credit and reputational risks and costs; cybersecurity threats and the cost of defending against them; our ability to adapt our systems to the expanding use of technology in banking; risk management processes and strategies; adverse results in legal proceedings; the impact of regulatory enforcement actions, if any; certain provisions in our charter and bylaws that may affect acquisition of the Company; changes in tax laws and regulations; the impact of governmental efforts to restructure the U.S. financial regulatory system; the impact of future or recent changes in the Federal Deposit Insurance Corporation (“FDIC”) insurance assessment rate and the rules and regulations related to the calculation of the FDIC insurance assessments; the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the SEC, the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters, including Accounting Standards Update 2016-13 (Topic 326, “Measurement of Current Losses on Financial Instruments, commonly referenced as the Current Expected Credit Losses Model, which changed how we estimate credit losses and may further increase the required level of our allowance for credit losses in future periods; market disruption and volatility; fluctuations in the Company’s stock price; restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure; issuances of preferred stock; our ability to raise additional capital, if needed, and the potential resulting dilution of interests of holders of our common stock; the soundness of other financial institutions; our ongoing relations with our various federal and state regulators, including the SEC, FDIC, FRB and California Department of Financial Protection and Innovation; our success at managing the risks involved in the foregoing items and all other factors set forth in the Company’s public reports, including its Annual Report as filed under Form 10-K for the year ended December 31, 2023, and particularly the discussion of risk factors within that document. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law. Any statements about future operating results, such as those concerning accretion and dilution to the Company’s earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ.

    RBB BANCORP AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited)
    (Dollars in thousands)

    		  
        September 30,     June 30,     March 31,     December 31,     September 30,  
        2024     2024     2024     2023     2023  
    Assets                                        
    Cash and due from banks   $ 26,388     $ 23,313     $ 21,887     $ 22,671     $ 23,809  
    Interest-earning deposits with financial institutions     323,002       229,456       247,356       408,702       306,982  
    Cash and Cash Equivalents     349,390       252,769       269,243       431,373       330,791  
    Interest-earning time deposits with financial institutions     600       600       600       600       600  
    Investment securities available for sale     305,666       325,582       335,194       318,961       354,378  
    Investment securities held to maturity     5,195       5,200       5,204       5,209       5,214  
    Mortgage loans held for sale     812       3,146       3,903       1,911       62  
    Loans held for investment     3,091,896       3,047,712       3,027,361       3,031,861       3,120,952  
    Allowance for loan losses     (43,685 )     (41,741 )     (41,688 )     (41,903 )     (42,430 )
    Net loans held for investment     3,048,211       3,005,971       2,985,673       2,989,958       3,078,522  
    Premises and equipment, net     24,839       25,049       25,363       25,684       26,134  
    Federal Home Loan Bank (FHLB) stock     15,000       15,000       15,000       15,000       15,000  
    Cash surrender value of bank owned life insurance     59,889       59,486       59,101       58,719       58,346  
    Goodwill     71,498       71,498       71,498       71,498       71,498  
    Servicing assets     7,256       7,545       7,794       8,110       8,439  
    Core deposit intangibles     2,194       2,394       2,594       2,795       3,010  
    Right-of-use assets     29,283       30,530       31,231       29,803       29,949  
    Accrued interest and other assets     70,644       63,416       65,608       66,404       87,411  
    Total assets   $ 3,990,477     $ 3,868,186     $ 3,878,006     $ 4,026,025     $ 4,069,354  
    Liabilities and shareholders’ equity                                        
    Deposits:                                        
    Noninterest-bearing demand   $ 543,623     $ 542,971     $ 539,517     $ 539,621     $ 572,393  
    Savings, NOW and money market accounts     666,089       647,770       642,840       632,729       608,020  
    Time deposits, $250,000 and under     1,052,462       1,014,189       1,083,898       1,190,821       1,237,831  
    Time deposits, greater than $250,000     830,010       818,675       762,074       811,589       735,828  
    Total deposits     3,092,184       3,023,605       3,028,329       3,174,760       3,154,072  
    FHLB advances     200,000       150,000       150,000       150,000       150,000  
    Long-term debt, net of issuance costs     119,433       119,338       119,243       119,147       174,019  
    Subordinated debentures     15,102       15,047       14,993       14,938       14,884  
    Lease liabilities – operating leases     30,880       32,087       32,690       31,191       31,265  
    Accrued interest and other liabilities     23,150       16,818       18,765       24,729       42,603  
    Total liabilities     3,480,749       3,356,895       3,364,020       3,514,765       3,566,843  
    Shareholders’ equity:                                        
    Common Stock     259,280       266,160       271,645       271,925       277,462  
    Additional paid-in capital     3,520       3,456       3,348       3,623       3,579  
    Retained Earnings     262,946       262,518       259,903       255,152       247,159  
    Non-controlling interest     72       72       72       72       72  
    Accumulated other comprehensive loss, net     (16,090 )     (20,915 )     (20,982 )     (19,512 )     (25,761 )
    Total shareholders’ equity     509,728       511,291       513,986       511,260       502,511  
    Total liabilities and shareholders’ equity   $ 3,990,477     $ 3,868,186     $ 3,878,006     $ 4,026,025     $ 4,069,354  
    RBB BANCORP AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited)
    (In thousands, except share and per share data) 

    		  
        For the Three Months Ended     For the Nine Months Ended  
        September 30,
    2024    		     June 30,
    2024    		     September 30,
    2023    		     September 30,
    2024    		     September 30,
    2023    		  
    Interest and dividend income:                                        
    Interest and fees on loans   $ 47,326     $ 45,320     $ 47,617     $ 138,193     $ 148,369  
    Interest on interest-earning deposits     3,388       3,353       3,193       11,781       6,096  
    Interest on investment securities     3,127       3,631       4,211       10,369       10,321  
    Dividend income on FHLB stock     326       327       290       984       814  
    Interest on federal funds sold and other     258       255       252       779       716  
    Total interest and dividend income     54,425       52,886       55,563       162,106       166,316  
    Interest expense:                                        
    Interest on savings deposits, NOW and money market accounts     5,193       4,953       3,106       14,624       8,180  
    Interest on time deposits     22,553       21,850       21,849       67,725       54,424  
    Interest on long-term debt and subordinated debentures     1,681       1,679       2,579       5,039       7,668  
    Interest on other borrowed funds     453       439       440       1,331       2,428  
    Total interest expense     29,880       28,921       27,974       88,719       72,700  
    Net interest income before provision for credit losses     24,545       23,965       27,589       73,387       93,616  
    Provision for credit losses     3,300       557       1,399       3,857       3,793  
    Net interest income after provision for credit losses     21,245       23,408       26,190       69,530       89,823  
    Noninterest income:                                        
    Service charges and fees     1,071       1,064       1,057       3,127       3,200  
    Gain on sale of loans     447       451       212       1,210       258  
    Loan servicing fees, net of amortization     605       579       623       1,773       1,959  
    Increase in cash surrender value of life insurance     402       385       356       1,169       1,036  
    Gain on OREO     —       292       190       1,016       190  
    Other income     3,221       717       332       4,311       982  
    Total noninterest income     5,746       3,488       2,770       12,606       7,625  
    Noninterest expense:                                        
    Salaries and employee benefits     10,008       9,533       9,744       29,468       28,935  
    Occupancy and equipment expenses     2,518       2,439       2,414       7,400       7,242  
    Data processing     1,472       1,466       1,315       4,358       3,969  
    Legal and professional     958       1,260       1,022       3,098       6,907  
    Office expenses     348       352       437       1,056       1,163  
    Marketing and business promotion     252       189       340       613       892  
    Insurance and regulatory assessments     658       981       730       2,621       2,043  
    Core deposit premium     200       201       236       602       708  
    Other expenses     1,007       703       638       2,298       2,445  
    Total noninterest expense     17,421       17,124       16,876       51,514       54,304  
    Income before income taxes     9,570       9,772       12,084       30,622       43,144  
    Income tax expense     2,571       2,527       3,611       8,342       12,752  
    Net income   $ 6,999     $ 7,245     $ 8,473     $ 22,280     $ 30,392  
                                             
    Net income per share                                        
    Basic   $ 0.39     $ 0.39     $ 0.45     $ 1.22     $ 1.60  
    Diluted   $ 0.39     $ 0.39     $ 0.45     $ 1.22     $ 1.60  
    Cash Dividends declared per common share   $ 0.16     $ 0.16     $ 0.16     $ 0.48     $ 0.48  
    Weighted-average common shares outstanding                                        
    Basic     17,812,791       18,375,970       18,995,303       18,261,702       18,991,579  
    Diluted     17,885,359       18,406,897       18,997,304       18,313,086       19,013,838  
    RBB BANCORP AND SUBSIDIARIES
    AVERAGE BALANCE SHEET AND NET INTEREST INCOME
    (Unaudited)    		  
        For the Three Months Ended  
        September 30, 2024     June 30, 2024     September 30, 2023  
    (tax-equivalent basis, dollars in thousands)   Average
    Balance    		     Interest
     & Fees    		     Yield /
    Rate    		     Average
    Balance    		     Interest
    & Fees    		     Yield /
    Rate    		     Average
    Balance    		     Interest
    & Fees    		     Yield /
    Rate    		  
    Interest-earning assets                                                                        
    Cash and cash equivalents(1)   $ 260,205     $ 3,646       5.57 %   $ 255,973     $ 3,608       5.67 %   $ 270,484     $ 3,445       5.05 %
    FHLB Stock     15,000       326       8.65 %     15,000       327       8.77 %     15,000       290       7.67 %
    Securities                                                                        
    Available for sale(2)     298,948       3,105       4.13 %     318,240       3,608       4.56 %     369,459       4,187       4.50 %
    Held to maturity(2)     5,198       46       3.52 %     5,203       46       3.56 %     5,385       48       3.54 %
    Mortgage loans held for sale     1,165       23       7.85 %     3,032       57       7.56 %     739       13       6.98 %
    Loans held for investment:(3)                                                                        
    Real estate     2,888,528       43,495       5.99 %     2,828,339       41,590       5.91 %     2,968,246       43,583       5.83 %
    Commercial     179,885       3,808       8.42 %     185,679       3,673       7.96 %     187,140       4,021       8.52 %
    Total loans held for investment     3,068,413       47,303       6.13 %     3,014,018       45,263       6.04 %     3,155,386       47,604       5.99 %
    Total interest-earning assets     3,648,929     $ 54,449       5.94 %     3,611,466     $ 52,909       5.89 %     3,816,453     $ 55,587       5.78 %
    Total noninterest-earning assets     242,059                       240,016                       250,083                  
    Total average assets   $ 3,890,988                     $ 3,851,482                     $ 4,066,536                  
                                                                             
    Interest-bearing liabilities                                                                        
    NOW     55,757       277       1.98 %   $ 56,081     $ 276       1.98 %   $ 55,325     $ 201       1.44 %
    Money Market     439,936       4,093       3.70 %     431,559       3,877       3.61 %     403,300       2,656       2.61 %
    Saving deposits     164,515       823       1.99 %     164,913       800       1.95 %     123,709       249       0.80 %
    Time deposits, $250,000 and under     1,037,365       12,312       4.72 %     1,049,666       12,360       4.74 %     1,285,320       14,090       4.35 %
    Time deposits, greater than $250,000     819,207       10,241       4.97 %     772,255       9,490       4.94 %     717,026       7,759       4.29 %
    Total interest-bearing deposits     2,516,780       27,746       4.39 %     2,474,474       26,803       4.36 %     2,584,680       24,955       3.83 %
    FHLB advances     150,543       453       1.20 %     150,000       439       1.18 %     150,000       440       1.16 %
    Long-term debt     119,370       1,295       4.32 %     119,275       1,296       4.37 %     173,923       2,194       5.00 %
    Subordinated debentures     15,066       386       10.19 %     15,011       383       10.26 %     14,848       385       10.29 %
    Total interest-bearing liabilities     2,801,759       29,880       4.24 %     2,758,760       28,921       4.22 %     2,923,451       27,974       3.80 %
    Noninterest-bearing liabilities                                                                        
    Noninterest-bearing deposits     528,081                       529,450                       571,371                  
    Other noninterest-bearing liabilities     52,428                       51,087                       67,282                  
    Total noninterest-bearing liabilities     580,509                       580,537                       638,653                  
    Shareholders’ equity     508,720                       512,185                       504,432                  
    Total liabilities and shareholders’ equity   $ 3,890,988                     $ 3,851,482                     $ 4,066,536                  
    Net interest income / interest rate spreads           $ 24,569       1.70 %           $ 23,988       1.67 %           $ 27,613       1.98 %
    Net interest margin                     2.68 %                     2.67 %                     2.87 %
                                                                             
    Total cost of deposits   $ 3,044,861     $ 27,746       3.63 %   $ 3,003,924     $ 26,803       3.59 %   $ 3,156,051     $ 24,955       3.14 %
    Total cost of funds   $ 3,329,840     $ 29,880       3.57 %   $ 3,288,210     $ 28,921       3.54 %   $ 3,494,822     $ 27,974       3.18 %

    _________________
    (1) Includes income and average balances for interest-earning time deposits and other miscellaneous interest-earning assets.
    (2) Interest income and average rates for tax-exempt securities are presented on a tax-equivalent basis.
    (3) Average loan balances include nonaccrual loans. Interest income on loans includes the effects of discount accretion and net deferred loan origination fees and costs accounted for as yield adjustments.

    RBB BANCORP AND SUBSIDIARIES
    AVERAGE BALANCE SHEET AND NET INTEREST INCOME
    (Unaudited)    		  
        For the Nine Months Ended  
        September 30, 2024     September 30, 2023  
    (tax-equivalent basis, dollars in thousands)   Average
    Balance    		     Interest
    & Fees    		     Yield /
    Rate    		     Average
    Balance    		     Interest
    & Fees    		     Yield /
    Rate    		  
    Interest-earning assets                                                
    Cash and cash equivalents(1)   $ 293,597     $ 12,560       5.71 %   $ 177,393     $ 6,812       5.13 %
    FHLB Stock     15,000       984       8.76 %     15,000       814       7.26 %
    Securities                                                
    Available for sale(2)     312,352       10,302       4.41 %     332,007       10,245       4.13 %
    Held to maturity(2)     5,203       140       3.59 %     5,610       151       3.60 %
    Mortgage loans held for sale     1,802       105       7.78 %     295       16       7.25 %
    Loans held for investment:(3)                                                
    Real estate     2,851,625       126,852       5.94 %     3,041,393       134,791       5.93 %
    Commercial     181,716       11,236       8.26 %     214,618       13,562       8.45 %
    Total loans held for investment     3,033,341       138,088       6.08 %     3,256,011       148,353       6.09 %
    Total interest-earning assets     3,661,295     $ 162,179       5.92 %     3,786,316     $ 166,391       5.88 %
    Total noninterest-earning assets     242,802                       244,822                  
    Total average assets   $ 3,904,097                     $ 4,031,138                  
                                                     
    Interest-bearing liabilities                                                
    NOW   $ 56,924       851       2.00 %   $ 59,476     $ 511       1.15 %
    Money Market     427,884       11,496       3.59 %     431,299       7,315       2.27 %
    Saving deposits     162,207       2,277       1.88 %     118,550       354       0.40 %
    Time deposits, $250,000 and under     1,087,501       38,476       4.73 %     1,141,290       33,905       3.97 %
    Time deposits, greater than $250,000     792,310       29,249       4.93 %     729,699       20,519       3.76 %
    Total interest-bearing deposits     2,526,826       82,349       4.35 %     2,480,314       62,604       3.37 %
    FHLB advances     150,182       1,331       1.18 %     179,707       2,428       1.81 %
    Long-term debt     119,276       3,886       4.35 %     173,780       6,584       5.07 %
    Subordinated debentures     15,012       1,153       10.26 %     14,794       1,084       9.80 %
    Total interest-bearing liabilities     2,811,296       88,719       4.22 %     2,848,595       72,700       3.41 %
    Noninterest-bearing liabilities                                                
    Noninterest-bearing deposits     528,624                       624,781                  
    Other noninterest-bearing liabilities     52,955                       58,786                  
    Total noninterest-bearing liabilities     581,579                       683,567                  
    Shareholders’ equity     511,222                       498,976                  
    Total liabilities and shareholders’ equity   $ 3,904,097                     $ 4,031,138                  
    Net interest income / interest rate spreads           $ 73,460       1.70 %           $ 93,691       2.47 %
    Net interest margin                     2.68 %                     3.31 %
                                                     
    Total cost of deposits   $ 3,055,450     $ 82,349       3.60 %   $ 3,105,095     $ 62,604       2.70 %
    Total cost of funds   $ 3,339,920     $ 88,719       3.55 %   $ 3,473,376     $ 72,700       2.80 %

    _______________
    (1) Includes income and average balances for interest-earning time deposits and other miscellaneous interest-earning assets.
    (2) Interest income and average rates for tax-exempt securities are presented on a tax-equivalent basis.
    (3) Average loan balances include nonaccrual loans. Interest income on loans includes the effects of discount accretion and net deferred loan origination fees and costs accounted for as yield adjustments.

    RBB BANCORP AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
    		  
      At or for the Three Months Ended     At or for the Nine Months
    Ended September 30,    		  
      September 30,   June 30,     September 30,                  
        2024     2024     2023     2024     2023  
    Per share data (common stock)                                  
    Book value $ 28.81     $ 28.12     $ 26.45     $ 28.81     $ 26.45  
    Tangible book value(1) $ 24.64     $ 24.06     $ 22.53     $ 24.64     $ 22.53  
    Performance ratios                                  
    Return on average assets, annualized   0.72 %     0.76 %     0.83 %     0.76 %     1.01 %
    Return on average shareholders’ equity, annualized   5.47 %     5.69 %     6.66 %     5.82 %     8.14 %
    Return on average tangible common equity, annualized(1)   6.40 %     6.65 %     7.82 %     6.81 %     9.58 %
    Noninterest income to average assets, annualized   0.59 %     0.36 %     0.27 %     0.43 %     0.25 %
    Noninterest expense to average assets, annualized   1.78 %     1.79 %     1.65 %     1.76 %     1.80 %
    Yield on average earning assets   5.94 %     5.89 %     5.78 %     5.92 %     5.88 %
    Yield on average loans   6.13 %     6.04 %     5.99 %     6.08 %     6.09 %
    Cost of average total deposits(2)   3.63 %     3.59 %     3.14 %     3.60 %     2.70 %
    Cost of average interest-bearing deposits   4.39 %     4.36 %     3.83 %     4.35 %     3.37 %
    Cost of average interest-bearing liabilities   4.24 %     4.22 %     3.80 %     4.22 %     3.41 %
    Net interest spread   1.70 %     1.67 %     1.98 %     1.70 %     2.47 %
    Net interest margin   2.68 %     2.67 %     2.87 %     2.68 %     3.31 %
    Efficiency ratio(3)   57.51 %     62.38 %     55.59 %     59.90 %     53.64 %
    Common stock dividend payout ratio   41.03 %     41.03 %     35.56 %     39.34 %     30.00 %

    ____________________

    (1) Non-GAAP measure. See Non–GAAP reconciliations set forth at the end of this press release.
    (2) Total deposits include non-interest bearing deposits and interest-bearing deposits.
    (3) Ratio calculated by dividing noninterest expense by the sum of net interest income before provision for credit losses and noninterest income.

    RBB BANCORP AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
    (Dollars in thousands)    		  
        At or for the quarter ended  
        September 30,     June 30,     September 30,  
        2024     2024     2023  
    Credit Quality Data:                        
    Special mention loans   $ 77,501     $ 19,520     $ 31,212  
    Special mention loans to total loans     2.51 %     0.64 %     1.00 %
    Substandard loans   $ 79,831     $ 63,076     $ 71,401  
    Substandard loans to total loans     2.58 %     2.07 %     2.29 %
    Loans 30-89 days past due, excluding nonperforming loans   $ 10,625     $ 11,270     $ 19,662  
    Loans 30-89 days past due, excluding nonperforming loans, to total loans     0.34 %     0.37 %     0.63 %
    Nonperforming loans   $ 60,662     $ 54,589     $ 40,146  
    OREO     —       —       284  
    Nonperforming assets   $ 60,662     $ 54,589     $ 40,430  
    Nonperforming loans to total loans     1.96 %     1.79 %     1.29 %
    Nonperforming assets to total assets     1.52 %     1.41 %     0.99 %
                             
    Allowance for loan losses   $ 43,685     $ 41,741     $ 42,430  
    Allowance for loan losses to total loans     1.41 %     1.37 %     1.36 %
    Allowance for loan losses to nonperforming loans     72.01 %     76.46 %     105.69 %
    Net charge-offs   $ 1,201     $ 551     $ 2,206  
    Net charge-offs to average loans     0.16 %     0.07 %     0.28 %
                             
    Capital ratios(1)                        
    Tangible common equity to tangible assets(2)     11.13 %     11.53 %     10.71 %
    Tier 1 leverage ratio     12.19 %     12.48 %     11.68 %
    Tier 1 common capital to risk-weighted assets     18.16 %     18.89 %     17.65 %
    Tier 1 capital to risk-weighted assets     18.74 %     19.50 %     18.22 %
    Total capital to risk-weighted assets     24.79 %     25.67 %     26.24 %

    ______________
    (1) September 30, 2024 capital ratios are preliminary.
    (2) Non-GAAP measure. See Non-GAAP reconciliations set forth at the end of this press release.

    RBB BANCORP AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)

    		  
    Loan Portfolio Detail   As of September 30, 2024   As of June 30, 2024     As of September 30, 2023  
    (dollars in thousands)   $   %   $       %   $       %
    Loans:                                          
    Commercial and industrial   $ 128,861   4.2 %   $ 126,649       4.2 %   $ 127,655       4.1 %
    SBA     48,089   1.6 %     50,323       1.7 %     50,420       1.6 %
    Construction and land development     180,196   5.8 %     202,459       6.6 %     259,778       8.3 %
    Commercial real estate (1)     1,252,682   40.5 %     1,190,207       39.1 %     1,164,210       37.3 %
    Single-family residential mortgages     1,473,396   47.7 %     1,467,802       48.2 %     1,505,307       48.2 %
    Other loans     8,672   0.2 %     10,272       0.2 %     13,582       0.5 %
    Total loans (2)   $ 3,091,896   100.0 %   $ 3,047,712       100.0 %   $ 3,120,952       100.0 %
    Allowance for loan losses     (43,685 )       (41,741 )             (42,430 )        
    Total loans, net   $ 3,048,211       $ 3,005,971             $ 3,078,522          

    _______________
    (1) Includes non-farm and non-residential loans, multi-family residential loans and non-owner occupied single family residential loans.
    (2) Net of discounts and deferred fees and costs of $467, $645, and $383 as of September 30, 2024, June 30, 2024, and September 30, 2023, respectively.

    Deposits   As of September 30, 2024   As of June 30, 2024     As of September 30, 2023  
    (dollars in thousands)   $   %   $       %   $       %
    Deposits:                                          
    Noninterest-bearing demand   $ 543,623   17.6 %   $ 542,971       18.0 %   $ 572,393       18.1 %
    Savings, NOW and money market accounts     666,089   21.5 %     647,770       21.4 %     608,020       19.3 %
    Time deposits, $250,000 and under     926,877   30.0 %     921,712       30.5 %     848,868       26.9 %
    Time deposits, greater than $250,000     808,304   26.1 %     790,478       26.1 %     687,365       21.8 %
    Wholesale deposits(1)     147,291   4.8 %     120,674       4.0 %     437,426       13.9 %
    Total deposits   $ 3,092,184   100.0 %   $ 3,023,605       100.0 %   $ 3,154,072       100.0 %

    ___________________
    (1) Includes brokered deposits, collateralized deposits from the State of California, and deposits acquired through internet listing services.

    Non-GAAP Reconciliations

    Tangible Book Value Reconciliations

    Tangible book value per share is a non-GAAP disclosure. Management measures tangible book value per share to assess the Company’s capital strength and business performance and believes this is helpful to investors as additional tools for further understanding our performance. The following is a reconciliation of tangible book value to the Company shareholders’ equity computed in accordance with GAAP, as well as a calculation of tangible book value per share as of September 30, 2024, June 30, 2024, and September 30, 2023.

                           
    (dollars in thousands, except share and per share data)   September 30,
    2024    		     June 30,
    2024    		     September 30,
    2023    		  
    Tangible common equity:                        
    Total shareholders’ equity   $ 509,728     $ 511,291     $ 502,511  
    Adjustments                        
    Goodwill     (71,498 )     (71,498 )     (71,498 )
    Core deposit intangible     (2,194 )     (2,394 )     (3,010 )
    Tangible common equity   $ 436,036     $ 437,399     $ 428,003  
    Tangible assets:                        
    Total assets-GAAP   $ 3,990,477     $ 3,868,186     $ 4,069,354  
    Adjustments                        
    Goodwill     (71,498 )     (71,498 )     (71,498 )
    Core deposit intangible     (2,194 )     (2,394 )     (3,010 )
    Tangible assets   $ 3,916,785     $ 3,794,294     $ 3,994,846  
    Common shares outstanding     17,693,416       18,182,154       18,995,303  
    Common equity to assets ratio     12.77 %     13.22 %     12.35 %
    Tangible common equity to tangible assets ratio     11.13 %     11.53 %     10.71 %
    Book value per share   $ 28.81     $ 28.12     $ 26.45  
    Tangible book value per share   $ 24.64     $ 24.06     $ 22.53  


    Return on Average Tangible Common Equity

    Management measures return on average tangible common equity (“ROATCE”) to assess the Company’s capital strength and business performance and believes this is helpful to investors as an additional tool for further understanding our performance. Tangible equity excludes goodwill and other intangible assets (excluding mortgage servicing rights), and is reviewed by banking and financial institution regulators when assessing a financial institution’s capital adequacy. This non-GAAP financial measure should not be considered a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures used by other companies. The following table reconciles ROATCE to its most comparable GAAP measure:

        Three Months Ended     Nine Months Ended September 30,  
    (dollars in thousands)   September 30,
    2024    		     June 30,
    2024    		     September 30,
    2023    		     2024     2023  
    Net income available to common shareholders   $ 6,999     $ 7,245     $ 8,473     $ 22,280     $ 30,392  
    Average shareholders’ equity     508,720       512,185       504,432       511,222       498,976  
    Adjustments:                                        
    Average goodwill     (71,498 )     (71,498 )     (71,498 )     (71,498 )     (71,498 )
    Average core deposit intangible     (2,326 )     (2,525 )     (3,165 )     (2,525 )     (3,398 )
    Adjusted average tangible common equity   $ 434,896     $ 438,162     $ 429,769     $ 437,199     $ 424,080  
    Return on average common equity     5.47 %     5.69 %     6.66 %     5.82 %     8.14 %
    Return on average tangible common equity     6.40 %     6.65 %     7.82 %     6.81 %     9.58 %

    The MIL Network –

  • MIL-OSI: CNB Financial Corporation Reports Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    CLEARFIELD, Pa., Oct. 21, 2024 (GLOBE NEWSWIRE) — CNB Financial Corporation (“Corporation”) (NASDAQ: CCNE), the parent company of CNB Bank, today announced its earnings for the three and nine months ended September 30, 2024.

    Executive Summary

    • Net income available to common shareholders (“earnings”) was $12.9 million, or $0.61 per diluted share, for the three months ended September 30, 2024, compared to earnings of $11.9 million, or $0.56 per diluted share, for the three months ended June 30, 2024. The quarterly increase was a result of increases in both net interest income and non-interest income, partially offset by an increase in non-interest expense, as discussed in more detail below. The increase in third quarter 2024 earnings and diluted earnings per share when compared to the quarter ended September 30, 2023 earnings of $12.7 million, or $0.60 per diluted share, was primarily due to the increase in non-interest income, partially offset by an increase in non-interest expense.
    • Earnings were $36.3 million, or $1.72 per diluted share, for the nine months ended September 30, 2024, compared to earnings of $40.8 million, or $1.94 per diluted share, for the nine months ended September 30, 2023. The decrease in earnings and diluted earnings per share comparing the nine months ended September 30, 2024 to the nine months ended September 30, 2023 was primarily due to the rise in deposit costs year over year.
    • At September 30, 2024, loans totaled $4.5 billion, excluding the balances of syndicated loans. This adjusted total of $4.5 billion in loans represented an increase of $96.7 million, or 2.18% (8.69% annualized), compared to the same adjusted total loans measured as of June 30, 2024, and an increase of $153.4 million, or 3.51%, compared to the same adjusted total loans measured as of September 30, 2023. The increase in loans for the quarter ended September 30, 2024 compared to the quarter ended June 30, 2024 was primarily driven by qualitative commercial and industrial growth in the Erie and Columbus markets and continued growth in new commercial customer relationships in the Corporation’s recent expansion market of Roanoke, coupled with growth in CNB’s Private Banking division with notable activity in the Roanoke market. The year over year growth in loans as of September 30, 2024 compared to loans as of September 30, 2023 resulted primarily from growth in the Corporation’s continued expansion into the newer markets of Cleveland and Roanoke, combined with growth in the Columbus and Erie markets and CNB Bank’s Private Banking division.
      • At September 30, 2024, the Corporation’s balance sheet reflected an increase in syndicated lending balances of $15.5 million compared to June 30, 2024. The increase in syndicated lending balances was the result of the Corporation managing the level of its syndicated portfolio by ensuring its historical discipline of seeking high credit quality loans with favorable yields. Year over year, the Corporation’s balance sheet reported a decrease in syndicated lending balances of $53.6 million compared to September 30, 2023, resulting from scheduled paydowns or early payoffs of certain syndicated loans. The syndicated loan portfolio totaled $69.5 million, or 1.51% of total loans, at September 30, 2024, compared to $53.9 million, or 1.20% of total loans, at June 30, 2024 and $123.1 million, or 2.74% of total loans, at September 30, 2023. As noted above, the Corporation is closely managing the level of its syndicated loan portfolio while it focuses more resources on organic loan growth from its in-market customer relationships.
    • At September 30, 2024, total deposits were $5.2 billion, reflecting an increase of $106.1 million, or 2.08% (8.26% annualized), from the previous quarter ended June 30, 2024, and an increase of $214.2 million, or 4.28%, compared to total deposits measured as of September 30, 2023. The increase in deposit balances compared to June 30, 2024 was primarily attributable to an increase in noninterest-bearing business deposits and retail saving deposits. Additional deposit and liquidity profile details were as follows:
      • During the quarter ended September 30, 2024, the Corporation repositioned $135.0 million of brokered deposits from savings to certificates of deposits. Additionally, $50.0 million of maturing brokered certificates of deposit were replaced with a similar offering. The repositioning and replacement totaling $185.0 million during the quarter and reduced the weighted average annual percentage yield (“APY”) from 5.70% to a locked-in APY of 4.37%, for maturity periods ranging from 12-14 months. This adjustment is expected to result in an estimated annual interest expense savings of $2.5 million for the Corporation. The mix of brokered deposits of 3.55% of total deposits at September 30, 2024, remained stable with the mix of 3.58% of total deposits at June 30, 2024.
      • At September 30, 2024, the total estimated uninsured deposits for CNB Bank were approximately $1.5 billion, or approximately 28.50% of total CNB Bank deposits. However, when excluding $103.1 million of affiliate company deposits and $462.7 million of pledged-investment collateralized deposits, the adjusted amount and percentage of total estimated uninsured deposits was approximately $950.6 million, or approximately 17.87% of total CNB Bank deposits as of September 30, 2024.
        • The level of adjusted uninsured deposits at September 30, 2024 was relatively unchanged with the prior quarter end’s level. At June 30, 2024, the total estimated uninsured deposits for CNB Bank were approximately $1.5 billion, or approximately 29.00% of total CNB Bank deposits; however, when excluding $101.4 million of affiliate company deposits and $460.7 million of pledged-investment collateralized deposits, the adjusted amount and percentage of total estimated uninsured deposits was approximately $949.8 million, or approximately 18.22% of total CNB Bank deposits as of June 30, 2024.
      • At September 30, 2024, the average deposit balance per account for CNB Bank was approximately $33 thousand, which generally remained consistent with the average deposit balance per account from recent quarters. CNB Bank had increases in the volume of business deposits, as well as retail customer household deposits, including those added after the 2023 launches of (i) CNB Bank’s “At Ease” account, a service for U.S. service member and veteran families, and (ii) CNB’s women-focused banking division, Impressia Bank.
      • At September 30, 2024, the Corporation had $282.0 million of cash equivalents held in CNB Bank’s interest-bearing deposit account at the Federal Reserve. These excess funds, when combined with collective contingent liquidity resources of $4.5 billion including (i) available borrowing capacity from the Federal Home Bank of Pittsburgh (“FHLB”) and the Federal Reserve, and (ii) available unused commitments from brokered deposit sources and other third-party funding channels, including previously established lines of credit from correspondent banks, resulted in the total on-hand and contingent liquidity sources for the Corporation as of September 30, 2024 to be approximately 5.0 times the estimated amount of adjusted uninsured deposit balances discussed above.
    • At September 30, 2024, June 30, 2024 and September 30, 2023, the Corporation had no outstanding short-term borrowings from the FHLB or the Federal Reserve’s Discount Window.
    • At September 30, 2024, the Corporation’s pre-tax net unrealized losses on available-for-sale and held-to-maturity securities totaled approximately $62.5 million, or 10.30% of total shareholders’ equity, compared to $84.1 million, or 14.33% of total shareholders’ equity, at June 30, 2024. The change in unrealized losses was primarily due to changes in the yield curve in the third quarter of 2024 compared to the second quarter of 2024, coupled with the Corporation’s scheduled bond maturities, which were all realized at par. Importantly, all regulatory capital ratios for the Corporation would still exceed regulatory “well-capitalized” levels as of both September 30, 2024 and June 30, 2024 if the net unrealized losses at the respective dates were fully recognized. Additionally, the Corporation maintained $102.0 million of liquid funds at its holding company, which more than covers the $62.5 million in unrealized losses on investments held primarily in its wholly-owned banking subsidiary, as an immediately available source of contingent capital to be down-streamed to CNB Bank, if necessary.
    • Total nonperforming assets were approximately $42.0 million, or 0.70% of total assets, as of September 30, 2024, compared to $36.5 million, or 0.62% of total assets, as of June 30, 2024, and $29.3 million, or 0.51% of total assets, as of September 30, 2023. The increase in nonperforming assets for the three months ended September 30, 2024 compared to the three months ended June 30, 2024 was primarily due to one commercial relationship (consisting of various loan types) totaling $7.9 million with a specific reserve balance of $2.2 million. Management does not believe there is risk of significant additional loss exposures beyond the specific reserves related to this loan relationship. The increase in non-performing assets at September 30, 2024 compared to September 30, 2023 was due to the loan relationship discussed above, as well as certain commercial and industrial relationships as previously disclosed in the fourth quarter of 2023 and second quarter of 2024, and a commercial real estate relationship as previously disclosed in the third quarter of 2023. For the three months ended September 30, 2024, net loan charge-offs were $1.2 million, or 0.11% (annualized) of average total loans and loans held for sale, compared to $2.8 million, or 0.25% (annualized) of average total loans and loans held for sale, during the three months ended June 30, 2024, and $732 thousand, or 0.06% (annualized) of average total loans and loans held for sale, during the three months ended September 30, 2023.
    • Pre-provision net revenue (“PPNR”), a non-GAAP measure, was $19.7 million for the three months ended September 30, 2024, compared to $18.6 million and $18.2 million for the three months ended June 30, 2024 and September 30, 2023, respectively.1 The third quarter 2024 PPNR, when compared to the second quarter of 2024, reflected improvements in net interest income and non-interest income, partially offset by higher non-interest expense. The increase in PPNR for the three months ended September 30, 2024, compared to the three months ended September 30, 2023, was primarily attributable to the increase in non-interest income. PPNR was $55.0 million for the nine months ended September 30, 2024 compared to $59.4 million for the nine months ended September 30, 2023.1 The decrease in PPNR for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 was primarily attributable to the significant year-over-year increase in deposit costs, coupled with increases in certain personnel costs (primarily from new offices and personnel added in expansion markets), as well as additional technology expenses for recently completed full implementation of business development and customer relationship management applications.

    1 This release contains references to certain financial measures that are not defined under U.S. Generally Accepted Accounting Principles (“GAAP”). Management believes that these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented. A reconciliation of these non-GAAP financial measures is provided in the “Reconciliation of Non-GAAP Financial Measures” section.

    Michael Peduzzi, President and CEO of both the Corporation and CNB Bank, commented on the Corporation’s positive quarterly results, stating, “CNB’s performance for the third quarter of 2024 was much in alignment with themes in a time of year when so many sports are active. We continue to have a strong defense with our traditionally sound loan and investment underwriting, disciplined loan and deposit pricing, and solid risk management practices. This was complemented by a solid offensive push as we translated pipeline activity and qualified business leads into sound loan growth, and an expansion of the number of relationships and accounts in our deposit base, all leading to notable increases in revenues. Further, thanks to effective “special team” efforts by our Finance team, we closely monitored market conditions and took advantage of an opportunity to realize substantial interest expense savings by repositioning a large portion of wholesale funding sources.

    The Corporation’s team across our entire footprint continues to be focused on controlling staffing levels and overhead cost management, while expanding the use of the Corporation’s previous investments in key sales and customer experience technologies. Our playbook for implementing our overall strategy remains the same – to maintain a team of motivated and engaged employees delivering products and services to achieve mutually beneficial and sustainable success for our clients and investors.”

    Other Balance Sheet Highlights

    • Book value per common share was $26.13 at September 30, 2024, reflecting an increase from $25.19 at June 30, 2024 and $23.52 at September 30, 2023. Tangible book value per common share, a non-GAAP measure, was $24.03 as of September 30, 2024, reflecting an increase of $0.94, or 16.20% (annualized) from $23.09 as of June 30, 2024 and a year-over-year increase of $2.63, or 12.29%, from $21.40 as of September 30, 2023.1 The increases in book value per common share and tangible book value per common share compared to June 30, 2024 were primarily due to a $9.1 million increase in retained earnings and a $10.1 million decrease in accumulated other comprehensive loss primarily from the after-tax impact of temporary unrealized valuation changes in the Corporation’s available-for-sale investment portfolio for the past three months. The increases in book value per common share and tangible book value per common share compared to September 30, 2023 were primarily due to (i) a $34.4 million increase in retained earnings over the twelve months ended September 30, 2024, (ii) the Corporation’s repurchase of 23,988 common shares at a weighted average price of $18.38 in the second quarter of 2024, and (iii) a $21.2 million decrease in accumulated other comprehensive loss primarily from the after-tax impact of temporary unrealized valuation changes in the Corporation’s available-for-sale investment portfolio for the past twelve months.

    Loan Portfolio Profile

    • As part of our lending policy and risk management activities, the Corporation tracks lending exposure by industry classification and type to determine potential risks associated with industry concentrations, and if any concentration risk issues could lead to additional credit loss exposure. In the current post-pandemic and relatively inflationary economic environment, the Corporation has continued to evaluate its exposure to the office, hospitality, and multifamily industries within its commercial real estate portfolio. Even given the Corporation’s historically sound underwriting protocols and high credit quality ratings for borrowers in the commercial real estate industry segments, the Corporation monitors numerous relevant sensitivity elements, including occupancy, loan-to-value, absorption and cap rates, debt service coverage and covenant compliance, and developer/lessor financial strength both in the project and globally. At September 30, 2024, the Corporation had the following key metrics related to its office, hospitality and multifamily portfolios:
    • Commercial office loans:
      • There were 114 outstanding loans, totaling $117.0 million, or 2.55%, of the Corporation loans outstanding;
      • There were no nonaccrual commercial office loans at September 30, 2024;
      • There was one past due commercial office loan that totaled $214 thousand, or 0.18% of total commercial office loans outstanding at September 30, 2024; and
      • The average outstanding balance per commercial office loan was $1.0 million.
    • Commercial hospitality loans:
      • There were 173 outstanding loans, totaling $320.6 million, or 6.98%, of total Corporation loans outstanding;
      • There were no nonaccrual commercial hospitality loans at September 30, 2024;
      • There were no past due commercial hospitality loans at September 30, 2024; and
      • The average outstanding balance per commercial hospitality loan was $1.9 million.
    • Commercial multifamily loans:
      • There were 225 outstanding loans, totaling $349.1 million, or 7.60%, of total Corporation loans outstanding;
      • There was one nonaccrual commercial multifamily loan that totaled $268 thousand, or 0.08% of total multifamily loans outstanding. The one customer relationship did not have a related specific loss reserve at September 30, 2024
      • There were two past due commercial office loans that totaled $760 thousand, or 0.22% of total commercial multifamily loans outstanding at September 30, 2024; and
      • The average outstanding balance per commercial multifamily loan was $1.6 million.

    The Corporation had no commercial office, hospitality or multifamily loan relationships considered by the banking regulators to be a high volatility commercial real estate credit (“HVCRE”).

    Performance Ratios

    • Annualized return on average equity was 9.28% for the three months ended September 30, 2024, compared to 8.94% and 9.80% for the three months ended June 30, 2024 and September 30, 2023, respectively. Annualized return on average equity was 9.01% for the nine months ended September 30, 2024 compared to 10.74% for the nine months ended September 30, 2023.
    • Annualized return on average tangible common equity, a non-GAAP measure, was 10.33% for the three months ended September 30, 2024, compared to 9.93% and 11.07% for the three months ended June 30, 2024 and September 30, 2023, respectively.1 Annualized return on average tangible common equity, a non-GAAP measure, was 10.01% for the nine months ended September 30, 2024 compared to 12.23% for the nine months ended September 30, 2023.1
    • The Corporation’s efficiency ratio was 66.34% for the three months ended September 30, 2024, compared to 65.94% and 67.00% for the three months ended June 30, 2024 and September 30, 2023, respectively. The efficiency ratio on a fully tax-equivalent basis, a non-GAAP measure, was 65.58% for the three months ended September 30, 2024, compared to 65.20% and 66.26% for the three months ended June 30, 2024 and September 30, 2023, respectively.1 The increase for the three months ended September 30, 2024 compared to the three months ended June 30, 2024 was primarily the result of an increase in incentive compensation related accruals which are based on various components of the Corporation’s financial performance for the year.
    • The Corporation’s efficiency ratio was 67.10% for the nine months ended September 30, 2024, compared to 64.26% for the nine months ended September 30, 2023. The efficiency ratio on a fully tax-equivalent basis, a non-GAAP ratio, was 66.34% for the nine months ended September 30, 2024, compared to 63.60% the nine months ended September 30, 2023.1

    Revenue

    • Total revenue (net interest income plus non-interest income) was $58.5 million for the three months ended September 30, 2024, compared to $54.6 million and $55.1 million for the three months ended June 30, 2024 and September 30, 2023, respectively.
      • Net interest income was $47.5 million for the three months ended September 30, 2024, compared to $45.7 million and $47.2 million, for the three months ended June 30, 2024 and September 30, 2023, respectively. When comparing the third quarter of 2024 to the second quarter of 2024, the difference in net interest income of $1.8 million, or 3.87% (15.39% annualized), reflected the increase in total loans outstanding quarter over quarter, partially offset by targeted interest-bearing deposit rate increases to ensure both deposit relationship retention and new deposit growth in the Corporation’s markets.
      • Net interest margin was 3.43%, 3.36% and 3.55% for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively. Net interest margin on a fully tax-equivalent basis, a non-GAAP measure, was 3.42%, 3.34% and 3.53% for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.1 
        • The yield on earning assets of 5.98% for the three months ended September 30, 2024 increased 9 basis points from June 30, 2024 and increased 35 basis points from September 30, 2023. The increases in yield compared to June 30, 2024 and September 30, 2023 were attributable to the net benefit of higher interest rates on both variable-rate loans and new loan production.
        • The cost of interest-bearing liabilities of 3.21% for the three months ended September 30, 2024 increased 4 basis points from June 30, 2024 and 55 basis points from September 30, 2023 primarily as a result of the Corporation’s targeted interest-bearing deposit rate increases for deposit retention and growth initiatives given the competitive environment resulting from the numerous Federal Reserve rate hikes since the first quarter of 2022.
    • Total revenue was $167.2 million for the nine months ended September 30, 2024 compared to $166.3 million for the nine months ended September 30, 2023.
      • Net interest income was $138.4 million for the nine months ended September 30, 2024 compared to $142.1 million for the nine months ended September 30, 2023. When comparing the nine months ended September 30, 2024 to the nine months ended September 30, 2023, the decrease in net interest income of $3.7 million, or 2.61% (3.49% annualized), was due to loan growth and the benefits of the impact of higher interest rates resulting in greater income on variable-rate loans, coupled with a higher average balance of interest-bearing deposits with the Federal Reserve, being more than offset by an increase in the Corporation’s interest expense as a result of targeted interest-bearing deposit rate increases to ensure both deposit growth and retention.
      • Net interest margin was 3.40% and 3.66% for the nine months ended September 30, 2024 and 2023, respectively. Net interest margin on a fully tax-equivalent basis, a non-GAAP measure, was 3.38% and 3.64% for the nine months ended September 30, 2024 and 2023, respectively.1 
        • The yield on earning assets of 5.89% for the nine months ended September 30, 2024 increased 41 basis points from September 30, 2023. The increase in yield compared to September 30, 2023 was attributable to the net benefit of higher interest rates on both variable-rate loans and new loan production.
        • The cost of interest-bearing liabilities of 3.14% for the nine months ended September 30, 2024 increased 80 basis points from September 30, 2023 primarily as a result of the Corporation’s targeted interest-bearing deposit rate increases for deposit retention and growth initiatives given the competitive environment resulting from the numerous Federal Reserve rate hikes since the first quarter of 2022. The Federal Reserve rate decrease announced in mid-September 2024, being only effective for a short period of time in the quarter, had no significant impact on the Corporation’s third quarter results.
    • Total non-interest income was $11.0 million for the three months ended September 30, 2024 compared to $8.9 million and $7.9 million for the three months ended June 30, 2024 and September 30, 2023, respectively. During the three months ended September 30, 2024, notable changes compared to the three months ended June 30, 2024 included increases in net realized and unrealized gains on equity securities and higher pass-through income from small business investment companies (“SBICs”). The increase in third quarter 2024 noninterest income compared to the three months ended September 30, 2023 was primarily due to higher pass-through income from SBICs and net realized and unrealized gains on equity securities.
    • Total non-interest income was $28.8 million for the nine months ended September 30, 2024 compared to $24.2 million for the nine months ended September 30, 2023. This increase was primarily due to higher pass-through income from SBICs coupled with an increase in net realized and unrealized gains on equity securities.

    Non-Interest Expense

    • For the three months ended September 30, 2024 total non-interest expense was $38.8 million, compared to $36.0 million and $36.9 million for the three months ended June 30, 2024 and September 30, 2023, respectively. The increase of $2.8 million, or 7.77%, from the three months ended June 30, 2024 was primarily a result of an increase in salaries and benefits, card processing and interchange expenses, and other non-interest expenses. The increase in salaries and benefits resulted primarily from an increase in incentive compensation accruals, which are based on various components of the Corporation’s financial performance for the year, coupled with the timing of profit-sharing accruals. The increase in card processing and interchange expenses related primarily to corporate cardholder rewards program accrual, while the increase in other non-interest expenses was primarily driven by the timing of expenditures and business generation related expenses. The increase in non-interest expense compared to the three months ended September 30, 2023 was primarily attributable to higher salaries and benefits driven by costs for personnel added for new offices in expansion markets, an increase in personnel costs related to annual merit increases, increases in health insurance costs, and contractual renewal increases in the Corporation’s investments in technology applications.
    • For the nine months ended September 30, 2024 total non-interest expense was $112.2 million, compared to $106.9 million for the nine months ended September 30, 2023. The increase of $5.3 million, or 4.96%, from the nine months ended September 30, 2023 was primarily a result of an increase in salaries and benefits and technology expenses, partially offset by a decrease in card processing and interchange expenses. The increase in salaries and benefits was driven by an increase in personnel costs related to annual merit increases and growth in the Corporation’s staff and new offices in its expansion markets, while the increase in technology was primarily due to year-over-year investments in technology applications aimed at enhancing both customer online banking capabilities, customer call center communications, and in-branch technology delivery channels. The decrease in card processing and interchange expenses related to the changes made by the Corporation to its cardholder rewards program.

    Income Taxes

    • Income tax expense for the three months ended September 30, 2024 was $3.3 million, representing a 19.31% effective tax rate, compared to $3.0 million, representing an 19.03% effective tax rate, for the three months ended June 30, 2024 and $3.4 million, representing a 19.86% effective tax rate, for the three months ended September 30, 2023. Income tax expense for the nine months ended September 30, 2024 was $9.2 million, representing an 18.92% effective tax rate compared to $10.6 million, representing a 19.47% effective tax rate, for the nine months ended September 30, 2023.

    Asset Quality

    • Total nonperforming assets were approximately $42.0 million, or 0.70% of total assets, as of September 30, 2024, compared to $36.5 million, or 0.62% of total assets, as of June 30, 2024, and $29.3 million, or 0.51% of total assets, as of September 30, 2023, as discussed above.
    • The allowance for credit losses measured as a percentage of total loans was 1.02% as of September 30, 2024 compared to 1.02% as of both June 30, 2024 and September 30, 2023. In addition, the allowance for credit losses as a percentage of nonaccrual loans was 117.03% as of September 30, 2024, compared to 130.88% and 169.34% as of June 30, 2024 and September 30, 2023, respectively. The change in the allowance for credit losses as a percentage of nonaccrual loans was primarily attributable to the levels of nonperforming assets, as discussed above.
    • The provision for credit losses was $2.4 million for the three months ended September 30, 2024, compared to $2.6 million and $1.1 million for the three months ended June 30, 2024 and September 30, 2023, respectively. The $1.3 million increase in the provision expense for the third quarter of 2024 compared to the third quarter of 2023 was primarily a result of higher loan portfolio growth and increased net loan charge-offs in the third quarter of 2024 compared to the third quarter of 2023.
    • For the three months ended September 30, 2024, net loan charge-offs were $1.2 million, or 0.11% (annualized) of average total loans and loans held for sale, compared to $2.8 million, or 0.25% (annualized) of average total loans and loans held for sale, during the three months ended June 30, 2024, and $732 thousand, or 0.06% (annualized) of average total loans and loans held for sale, during the three months ended September 30, 2023.
    • For the nine months ended September 30, 2024, net loan charge-offs were $5.4 million, or 0.16% (annualized) of average total loans and loans held for sale, compared to $2.2 million, or 0.07% (annualized) of average total loans and loans held for sale, during the nine months ended September 30, 2023, with most of the larger year-to-date charge-offs being as previously disclosed occurring in the first and second quarter of 2024.

    Capital

    • As of September 30, 2024, the Corporation’s total shareholders’ equity was $606.4 million, representing an increase of $19.7 million, or 3.35% (13.33% annualized), from June 30, 2024 and an increase of $57.2 million, or 10.41%, from September 30, 2023 primarily due to an increase in the Corporation’s retained earnings (net income, partially offset by the common and preferred stock dividends paid) and a decrease in accumulated other comprehensive loss primarily from the after-tax impact of temporary unrealized valuation changes in the Corporation’s available-for-sale investment portfolio for the past twelve months. The additions to shareholders equity from retained earnings were partially offset by the Corporation’s repurchase of its common stock, as discussed above.
    • Regulatory capital ratios for the Corporation continue to exceed regulatory “well-capitalized” levels as of September 30, 2024, consistent with prior periods.
    • As of September 30, 2024, the Corporation’s ratio of common shareholders’ equity to total assets was 9.12% compared to 8.99% at June 30, 2024 and 8.57% at September 30, 2023. As of September 30, 2024, the Corporation’s ratio of tangible common equity to tangible assets, a non-GAAP measure, was 8.45% compared to 8.30% at June 30, 2024 and 7.86% at September 30, 2023. The increases compared to June 30, 2024 and September 30, 2023 were primarily the result of an increase in retained earnings coupled with a decrease in accumulated other comprehensive loss, as discussed above.1

    About CNB Financial Corporation

    CNB Financial Corporation is a financial holding company with consolidated assets of approximately $6.0 billion. CNB Financial Corporation conducts business primarily through its principal subsidiary, CNB Bank. CNB Bank is a full-service bank engaging in a full range of banking activities and services, including trust and wealth management services, for individual, business, governmental, and institutional customers. CNB Bank operations include a private banking division, two loan production offices, one drive-up office, one mobile office, and 54 full-service offices in Pennsylvania, Ohio, New York, and Virginia. CNB Bank, headquartered in Clearfield, Pennsylvania, with offices in Central and North Central Pennsylvania, serves as the multi-brand parent to various divisions. These divisions include ERIEBANK, based in Erie, Pennsylvania, with offices in Northwest Pennsylvania and Northeast Ohio; FCBank, based in Worthington, Ohio, with offices in Central Ohio; BankOnBuffalo, based in Buffalo, New York, with offices in Western New York; Ridge View Bank, based in Roanoke, Virginia, with offices in the Southwest Virginia region; and Impressia Bank, a division focused on banking opportunities for women, which operates in CNB Bank’s primary market areas. Additional information about CNB Financial Corporation may be found at http://www.CNBBank.bank.

    Forward-Looking Statements

    This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the Corporation’s financial condition, liquidity, results of operations, future performance and business. These forward-looking statements are intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those that are not historical facts. Forward-looking statements include statements with respect to beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors (some of which are beyond the Corporation’s control). Forward-looking statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “forecasts,” “intends,” “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future conditional verbs such as “may,” “will,” “should,” “would” and “could.” The Corporation’s actual results may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Such known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from the statements, include, but are not limited to, (i) adverse changes or conditions in capital and financial markets, including actual or potential stresses in the banking industry; (ii) changes in interest rates; the credit risks of lending activities, including our ability to estimate credit losses and the allowance for credit losses, as well as the effects of changes in the level of, and trends in, loan delinquencies and write-offs; (iv) effectiveness of our data security controls in the face of cyber attacks and any reputational risks following a cybersecurity incident; (v) changes in general business, industry or economic conditions or competition; (vi) changes in any applicable law, rule, regulation, policy, guideline or practice governing or affecting financial holding companies and their subsidiaries or with respect to tax or accounting principles or otherwise; (vii) higher than expected costs or other difficulties related to integration of combined or merged businesses; (viii) the effects of business combinations and other acquisition transactions, including the inability to realize our loan and investment portfolios; (ix) changes in the quality or composition of our loan and investment portfolios; (x) adequacy of loan loss reserves; (xi) increased competition; (xii) loss of certain key officers; (xiii) deposit attrition; (xiv) rapidly changing technology; (xv) unanticipated regulatory or judicial proceedings and liabilities and other costs; (xvi) changes in the cost of funds, demand for loan products or demand for financial services; and (xvii) other economic, competitive, governmental or technological factors affecting our operations, markets, products, services and prices. Such developments could have an adverse impact on the Corporation’s financial position and results of operations. For more information about factors that could cause actual results to differ from those discussed in the forward-looking statements, please refer to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of and the forward-looking statement disclaimers in the Corporation’s annual and quarterly reports filed with the Securities and Exchange Commission.

    The forward-looking statements are based upon management’s beliefs and assumptions and are made as of the date of this press release. Factors or events that could cause the Corporation’s actual results to differ may emerge from time to time, and it is not possible for the Corporation to predict all of them. The Corporation undertakes no obligation to publicly update or revise any forward-looking statements included in this press release or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise, except to the extent required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur and you should not put undue reliance on any forward-looking statements.

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

      Three Months Ended   Nine Months Ended
      September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023    		   September 30,
    2024    		   September 30,
    2023
    Income Statement                  
    Interest and fees on loans $ 75,725     $ 72,142     $ 70,980     $ 219,380     $ 200,206  
    Interest and dividends on securities and cash and cash equivalents   7,510       8,510       4,536       22,412       14,279  
    Interest expense   (35,749 )     (34,935 )     (28,280 )     (103,367 )     (72,353 )
    Net interest income   47,486       45,717       47,236       138,425       142,135  
    Provision for credit losses   2,381       2,591       1,056       6,292       4,751  
    Net interest income after provision for credit losses   45,105       43,126       46,180       132,133       137,384  
    Non-interest income                  
    Wealth and asset management fees   2,060       2,007       1,833       5,869       5,567  
    Service charges on deposit accounts   1,790       1,794       1,861       5,278       5,569  
    Other service charges and fees   796       712       567       2,203       2,283  
    Net realized gains (losses) on available-for-sale securities   (9 )     —       —       (9 )     52  
    Net realized and unrealized gains (losses) on equity securities   656       (80 )     (400 )     767       (930 )
    Mortgage banking   197       187       172       580       516  
    Bank owned life insurance   775       784       754       2,326       2,211  
    Card processing and interchange income   2,241       2,187       2,098       6,444       6,219  
    Other non-interest income   2,467       1,274       978       5,335       2,711  
    Total non-interest income   10,973       8,865       7,863       28,793       24,198  
    Non-interest expenses                  
    Salaries and benefits   19,572       17,676       17,758       56,035       51,862  
    Net occupancy expense of premises   3,701       3,580       3,596       10,921       10,790  
    Technology expense   5,417       5,573       5,232       16,062       14,677  
    Advertising expense   623       553       840       1,861       2,085  
    State and local taxes   1,256       1,237       1,028       3,636       3,108  
    Legal, professional, and examination fees   940       1,119       1,320       3,231       3,167  
    FDIC insurance premiums   846       1,018       1,027       2,854       2,901  
    Card processing and interchange expenses   1,193       878       1,207       3,250       4,269  
    Other non-interest expense   5,236       4,355       4,906       14,347       14,033  
    Total non-interest expenses   38,784       35,989       36,914       112,197       106,892  
    Income before income taxes   17,294       16,002       17,129       48,729       54,690  
    Income tax expense   3,340       3,045       3,402       9,218       10,647  
    Net income   13,954       12,957       13,727       39,511       44,043  
    Preferred stock dividends   1,076       1,075       1,076       3,226       3,226  
    Net income available to common shareholders $ 12,878     $ 11,882     $ 12,651     $ 36,285     $ 40,817  
                       
    Ending shares outstanding   20,994,730       20,998,117       20,895,634       20,994,730       20,895,634  
    Average diluted common shares outstanding   20,911,862       20,893,396       20,899,744       20,895,538       20,979,032  
    Diluted earnings per common share $ 0.61     $ 0.56     $ 0.60     $ 1.72     $ 1.94  
    Cash dividends per common share $ 0.180     $ 0.175     $ 0.175     $ 0.530     $ 0.525  
    Dividend payout ratio   30 %     31 %     29 %     31 %     27 %

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

      Three Months Ended   Nine Months Ended
      September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023    		   September 30,
    2024    		   September 30,
    2023
    Average Balances                  
    Total loans and loans held for sale $ 4,536,702     $ 4,441,633     $ 4,485,017     $ 4,469,321     $ 4,373,648  
    Investment securities   722,577       734,087       749,352       729,273       771,457  
    Total earning assets   5,503,832       5,465,645       5,273,758       5,440,145       5,194,485  
    Total assets   5,907,115       5,854,978       5,647,491       5,831,002       5,561,649  
    Noninterest-bearing deposits   795,771       761,270       792,193       764,770       805,513  
    Interest-bearing deposits   4,319,606       4,321,678       4,109,360       4,290,247       3,976,820  
    Shareholders’ equity   597,984       583,221       555,464       586,017       548,034  
    Tangible common shareholders’ equity (non-GAAP) (1)   496,091       481,309       453,493       484,105       446,048  
                       
    Average Yields (annualized)                  
    Total loans and loans held for sale   6.66 %     6.55 %     6.30 %     6.57 %     6.14 %
    Investment securities   2.19 %     2.14 %     1.96 %     2.11 %     1.96 %
    Total earning assets   5.98 %     5.89 %     5.63 %     5.89 %     5.48 %
    Interest-bearing deposits   3.19 %     3.15 %     2.62 %     3.11 %     2.27 %
    Interest-bearing liabilities   3.21 %     3.17 %     2.66 %     3.14 %     2.34 %
                       
    Performance Ratios (annualized)                  
    Return on average assets   0.94 %     0.89 %     0.96 %     0.91 %     1.06 %
    Return on average equity   9.28 %     8.94 %     9.80 %     9.01 %     10.74 %
    Return on average tangible common equity (non-GAAP) (1)   10.33 %     9.93 %     11.07 %     10.01 %     12.23 %
    Net interest margin, fully tax equivalent basis (non-GAAP) (1)   3.42 %     3.34 %     3.53 %     3.38 %     3.64 %
    Efficiency Ratio, fully tax equivalent basis (non-GAAP) (1)   65.58 %     65.20 %     66.26 %     66.34 %     63.60 %
                       
    Net Loan Charge-Offs                  
    CNB Bank net loan charge-offs $ 837     $ 2,348     $ 381     $ 4,063     $ 955  
    Holiday Financial net loan charge-offs   383       456       351       1,305       1,252  
    Total Corporation net loan charge-offs $ 1,220     $ 2,804     $ 732     $ 5,368     $ 2,207  
    Annualized net loan charge-offs / average total loans and loans held for sale   0.11 %     0.25 %     0.06 %     0.16 %     0.07 %

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

      September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023
    Ending Balance Sheet          
    Cash and due from banks $ 75,214     $ 56,031     $ 61,529  
    Interest-bearing deposits with Federal Reserve   281,972       271,943       117,632  
    Interest-bearing deposits with other financial institutions   3,723       3,171       3,424  
    Total cash and cash equivalents   360,909       331,145       182,585  
    Debt securities available-for-sale, at fair value   378,965       359,900       335,122  
    Debt securities held-to-maturity, at amortized cost   328,152       354,569       391,301  
    Equity securities   10,389       9,654       8,948  
    Loans held for sale   768       642       464  
    Loans receivable          
    Syndicated loans   69,470       53,938       123,090  
    Loans   4,522,438       4,425,754       4,369,084  
    Total loans receivable   4,591,908       4,479,692       4,492,174  
    Less: allowance for credit losses   (46,644 )     (45,532 )     (45,832 )
    Net loans receivable   4,545,264       4,434,160       4,446,342  
    Goodwill and other intangibles   43,874       43,874       43,874  
    Core deposit intangible   223       241       299  
    Other assets   346,300       352,386       322,973  
    Total Assets $ 6,014,844     $ 5,886,571     $ 5,731,908  
               
    Noninterest-bearing demand deposits $ 841,292     $ 762,918     $ 782,996  
    Interest-bearing demand deposits   681,056       693,074       781,309  
    Savings   3,040,769       3,140,505       2,883,736  
    Certificates of deposit   653,832       514,348       554,740  
    Total deposits   5,216,949       5,110,845       5,002,781  
    Subordinated debentures   20,620       20,620       20,620  
    Subordinated notes, net of issuance costs   84,495       84,419       84,191  
    Other liabilities   86,417       83,987       75,104  
    Total liabilities   5,408,481       5,299,871       5,182,696  
    Common stock   —       —       —  
    Preferred stock   57,785       57,785       57,785  
    Additional paid in capital   219,304       218,756       220,100  
    Retained earnings   371,086       361,987       336,690  
    Treasury stock   (4,516 )     (4,438 )     (6,862 )
    Accumulated other comprehensive loss   (37,296 )     (47,390 )     (58,501 )
    Total shareholders’ equity   606,363       586,700       549,212  
    Total liabilities and shareholders’ equity $ 6,014,844     $ 5,886,571     $ 5,731,908  
               
    Book value per common share $ 26.13     $ 25.19     $ 23.52  
    Tangible book value per common share (non-GAAP) (1) $ 24.03     $ 23.09     $ 21.40  

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

      September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023
    Capital Ratios          
    Tangible common equity / tangible assets (non-GAAP) (1)   8.45 %     8.30 %     7.86 %
    Tier 1 leverage ratio (2)   10.59 %     10.56 %     10.50 %
    Common equity tier 1 ratio (2)   11.64 %     11.71 %     11.21 %
    Tier 1 risk-based ratio (2)   13.30 %     13.41 %     12.92 %
    Total risk-based ratio (2)   16.06 %     16.20 %     15.68 %
               
    Asset Quality Detail          
    Nonaccrual loans $ 39,855     $ 34,788     $ 27,065  
    Loans 90+ days past due and accruing   666       112       231  
    Total nonperforming loans   40,521       34,900       27,296  
    Other real estate owned   1,514       1,641       2,039  
    Total nonperforming assets $ 42,035     $ 36,541     $ 29,335  
               
    Asset Quality Ratios          
    Nonperforming assets / Total loans + OREO   0.92 %     0.82 %     0.65 %
    Nonperforming assets / Total assets   0.70 %     0.62 %     0.51 %
    Ratio of allowance for credit losses on loans to nonaccrual loans   117.03 %     130.88 %     169.34 %
    Allowance for credit losses / Total loans   1.02 %     1.02 %     1.02 %
               
               
    Consolidated Financial Data Notes:          
    (1) Management uses non-GAAP financial information in its analysis of the Corporation’s performance. Management believes that these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented. The Corporation’s management believes that investors may use these non-GAAP measures to analyze the Corporation’s financial performance without the impact of unusual items or events that may obscure trends in the Corporation’s underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in these measures and that different companies might calculate these measures differently. A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).
    (2) Capital ratios as of September 30, 2024 are estimated pending final regulatory filings.

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

      Average Balances, Income and Interest Rates on a Taxable Equivalent Basis
      Three Months Ended,
      September 30, 2024   June 30, 2024   September 30, 2023
      Average
    Balance    		   Annual
    Rate    		   Interest
    Inc./Exp.    		   Average
    Balance    		   Annual
    Rate    		   Interest
    Inc./Exp.    		   Average
    Balance    		   Annual
    Rate    		   Interest
    Inc./Exp.
    ASSETS:                                  
    Securities:                                  
    Taxable (1) (4) $ 690,098     2.14 %   $ 3,980   $ 702,036     2.09 %   $ 3,941   $ 711,299     1.89 %   $ 3,674
    Tax-exempt (1) (2) (4)   25,368     2.57       178     25,088     2.59       178     29,455     2.55       204
    Equity securities (1) (2)   7,111     5.71       102     6,963     5.72       99     8,598     5.58       121
    Total securities (4)   722,577     2.19       4,260     734,087     2.14       4,218     749,352     1.96       3,999
    Loans receivable:                                  
    Commercial (2) (3)   1,457,192     7.02       25,708     1,416,476     6.85       24,133     1,516,942     6.72       25,693
    Mortgage and loans held for sale (2) (3)   2,947,787     6.25       46,278     2,897,473     6.15       44,331     2,834,576     5.83       41,618
    Consumer (3)   131,723     11.93       3,950     127,684     12.17       3,863     133,499     11.51       3,874
    Total loans receivable (3)   4,536,702     6.66       75,936     4,441,633     6.55       72,327     4,485,017     6.30       71,185
    Interest-bearing deposits with the Federal Reserve and other financial institutions   244,553     5.33       3,279     289,925     5.99       4,321     39,389     5.78       574
    Total earning assets   5,503,832     5.98     $ 83,475     5,465,645     5.89     $ 80,866     5,273,758     5.63     $ 75,758
    Noninterest-bearing assets:                                  
    Cash and due from banks   58,472               53,710               55,502          
    Premises and equipment   118,404               112,386               109,854          
    Other assets   272,377               268,930               254,106          
    Allowance for credit losses   (45,970 )             (45,693 )             (45,729 )        
    Total non interest-bearing assets   403,283               389,333               373,733          
    TOTAL ASSETS $ 5,907,115             $ 5,854,978             $ 5,647,491          
    LIABILITIES AND SHAREHOLDERS’ EQUITY:                                  
    Demand—interest-bearing $ 682,690     0.86 %   $ 1,477   $ 713,431     0.76 %   $ 1,342   $ 813,264     0.52 %   $ 1,061
    Savings   3,076,351     3.55       27,461     3,097,598     3.57       27,464     2,788,499     3.13       22,004
    Time   560,565     4.03       5,684     510,649     3.93       4,988     507,597     3.16       4,048
    Total interest-bearing deposits   4,319,606     3.19       34,622     4,321,678     3.15       33,794     4,109,360     2.62       27,113
    Short-term borrowings   —     0.00       —     —     0.00       —     6,101     5.66       87
    Finance lease liabilities   236     5.06       3     259     4.66       3     328     4.84       4
    Subordinated notes and debentures   105,077     4.26       1,124     105,001     4.36       1,138     104,773     4.07       1,076
    Total interest-bearing liabilities   4,424,919     3.21     $ 35,749     4,426,938     3.17     $ 34,935     4,220,562     2.66     $ 28,280
    Demand—noninterest-bearing   795,771               761,270               792,193          
    Other liabilities   88,441               83,549               79,272          
    Total Liabilities   5,309,131               5,271,757               5,092,027          
    Shareholders’ equity   597,984               583,221               555,464          
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 5,907,115             $ 5,854,978             $ 5,647,491          
    Interest income/Earning assets     5.98 %   $ 83,475       5.89 %   $ 80,866       5.63 %   $ 75,758
    Interest expense/Interest-bearing liabilities     3.21       35,749       3.17       34,935       2.66       28,280
    Net interest spread     2.77 %   $ 47,726       2.72 %   $ 45,931       2.97 %   $ 47,478
    Interest income/Earning assets     5.98 %     83,475       5.89 %     80,866       5.63 %     75,758
    Interest expense/Earning assets     2.56       35,749       2.55       34,935       2.10       28,280
    Net interest margin (fully tax-equivalent)     3.42 %   $ 47,726       3.34 %   $ 45,931       3.53 %   $ 47,478
     
    _____________________________________________
    (1)     Includes unamortized discounts and premiums.
    (2) Average yields are stated on a fully taxable equivalent basis (calculated using statutory rates of 21%) resulting from tax-free municipal securities in the investment portfolio and tax-free municipal loans in the commercial loan portfolio. The taxable equivalent adjustment to net interest income for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023 was $240 thousand, $214 thousand and $242 thousand, respectively.
    (3) Average loans receivable outstanding includes the average balance outstanding of all nonaccrual loans. Loans receivable consist of the average of total loans receivable less average unearned income. In addition, loans receivable interest income consists of loans receivable fees, including PPP deferred processing fees.
    (4) Average balance is computed using the fair value of AFS securities and amortized cost of HTM securities. Average yield has been computed using amortized cost average balance for AFS and HTM securities. The adjustment to the average balance for securities in the calculation of average yield for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023 was $(51.1) million, $(59.2) million and $(61.1) million, respectively.

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

      Average Balances, Income and Interest Rates on a Taxable Equivalent Basis
      Nine Months Ended,
      September 30, 2024   September 30, 2023
      Average
    Balance    		   Annual
    Rate    		   Interest
    Inc./Exp.    		   Average
    Balance    		   Annual
    Rate    		   Interest
    Inc./Exp.
    ASSETS:                      
    Securities:                      
    Taxable (1) (4) $ 696,259     2.06 %   $ 11,572   $ 729,787     1.89 %   $ 11,140
    Tax-exempt (1) (2) (4)   26,063     2.58       547     31,025     2.60       646
    Equity securities (1) (2)   6,951     5.69       296     10,645     4.97       396
    Total securities (4)   729,273     2.11       12,415     771,457     1.96       12,182
    Loans receivable:                      
    Commercial (2) (3)   1,434,545     6.92       74,360     1,512,575     6.49       73,423
    Mortgage and loans held for sale (2) (3)   2,905,301     6.16       134,012     2,733,423     5.70       116,439
    Consumer (3)   129,475     11.96       11,591     127,650     11.50       10,978
    Total loans receivable (3)   4,469,321     6.57       219,963     4,373,648     6.14       200,840
    Interest-bearing deposits with the Federal Reserve and other financial institutions   241,551     5.58       10,085     49,380     6.01       2,221
    Total earning assets   5,440,145     5.89     $ 242,463     5,194,485     5.48     $ 215,243
    Noninterest-bearing assets:                      
    Cash and due from banks   55,243               54,494          
    Premises and equipment   113,629               107,016          
    Other assets   267,797               250,210          
    Allowance for credit losses   (45,812 )             (44,556 )        
    Total non interest-bearing assets   390,857               367,164          
    TOTAL ASSETS $ 5,831,002             $ 5,561,649          
    LIABILITIES AND SHAREHOLDERS’ EQUITY:                      
    Demand—interest-bearing $ 711,911     0.75 %   $ 4,014   $ 878,955     0.54 %   $ 3,545
    Savings   3,046,518     3.53       80,536     2,581,604     2.75       53,070
    Time   531,818     3.87       15,414     516,261     2.79       10,775
    Total interest-bearing deposits   4,290,247     3.11       99,964     3,976,820     2.27       67,390
    Short-term borrowings   —     0.00       —     47,094     5.07       1,787
    Finance lease liabilities   259     4.64       9     350     4.58       12
    Subordinated notes and debentures   105,001     4.32       3,394     104,698     4.04       3,164
    Total interest-bearing liabilities   4,395,507     3.14     $ 103,367     4,128,962     2.34     $ 72,353
    Demand—noninterest-bearing   764,770               805,513          
    Other liabilities   84,708               79,140          
    Total Liabilities   5,244,985               5,013,615          
    Shareholders’ equity   586,017               548,034          
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 5,831,002             $ 5,561,649          
    Interest income/Earning assets     5.89 %   $ 242,463       5.48 %   $ 215,243
    Interest expense/Interest-bearing liabilities     3.14       103,367       2.34       72,353
    Net interest spread     2.75 %   $ 139,096       3.14 %   $ 142,890
    Interest income/Earning assets     5.89 %     242,463       5.48 %     215,243
    Interest expense/Earning assets     2.51       103,367       1.84       72,353
    Net interest margin (fully tax-equivalent)     3.38 %   $ 139,096       3.64 %   $ 142,890
     
    _____________________________________________
    (1)     Includes unamortized discounts and premiums.
    (2) Average yields are stated on a fully taxable equivalent basis (calculated using statutory rates of 21%) resulting from tax-free municipal securities in the investment portfolio and tax-free municipal loans in the commercial loan portfolio. The taxable equivalent adjustment to net interest income for the nine months ended September 30, 2024 and 2023, was $671 thousand and $755 thousand, respectively.
    (3) Average loans receivable outstanding includes the average balance outstanding of all nonaccrual loans. Loans receivable consist of the average of total loans receivable less average unearned income. In addition, loans receivable interest income consists of loans receivable fees, including PPP deferred processing fees.
    (4) Average balance is computed using the fair value of AFS securities and amortized cost of HTM securities. Average yield has been computed using amortized cost average balance for AFS and HTM securities. The adjustment to the average balance for securities in the calculation of average yield for the nine months ended September 30, 2024 and 2023 was $(55.1) million and $(58.6) million, respectively.

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

    Reconciliation of Non-GAAP Financial Measures

      September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023
    Calculation of tangible book value per common share and tangible common
    equity / tangible assets (non-GAAP):    		          
    Shareholders’ equity $ 606,363     $ 586,700     $ 549,212  
    Less: preferred equity   57,785       57,785       57,785  
    Common shareholders’ equity   548,578       528,915       491,427  
    Less: goodwill and other intangibles   43,874       43,874       43,874  
    Less: core deposit intangible   223       241       299  
    Tangible common equity (non-GAAP) $ 504,481     $ 484,800     $ 447,254  
               
    Total assets $ 6,014,844     $ 5,886,571     $ 5,731,908  
    Less: goodwill and other intangibles   43,874       43,874       43,874  
    Less: core deposit intangible   223       241       299  
    Tangible assets (non-GAAP) $ 5,970,747     $ 5,842,456     $ 5,687,735  
               
    Ending shares outstanding   20,994,730       20,998,117       20,895,634  
               
    Book value per common share (GAAP) $ 26.13     $ 25.19     $ 23.52  
    Tangible book value per common share (non-GAAP) $ 24.03     $ 23.09     $ 21.40  
               
    Common shareholders’ equity / Total assets (GAAP)   9.12 %     8.99 %     8.57 %
    Tangible common equity / Tangible assets (non-GAAP)   8.45 %     8.30 %     7.86 %
               

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

    Reconciliation of Non-GAAP Financial Measures

      Three Months Ended   Nine Months Ended
      September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023    		   September 30,
    2024    		   September 30,
    2023
    Calculation of net interest margin:                  
    Interest income $ 83,235     $ 80,652     $ 75,516     $ 241,792     $ 214,488  
    Interest expense   35,749       34,935       28,280       103,367       72,353  
    Net interest income $ 47,486     $ 45,717     $ 47,236     $ 138,425     $ 142,135  
                       
    Average total earning assets $ 5,503,832     $ 5,465,645     $ 5,273,758     $ 5,440,145     $ 5,194,485  
                       
    Net interest margin (GAAP) (annualized)   3.43 %     3.36 %     3.55 %     3.40 %     3.66 %
                       
    Calculation of net interest margin (fully tax equivalent basis) (non-GAAP):                  
    Interest income $ 83,235     $ 80,652     $ 75,516     $ 241,792     $ 214,488  
    Tax equivalent adjustment (non-GAAP)   240       214       242       671       755  
    Adjusted interest income (fully tax equivalent basis) (non-GAAP)   83,475       80,866       75,758       242,463       215,243  
    Interest expense   35,749       34,935       28,280       103,367       72,353  
    Net interest income (fully tax equivalent basis) (non-GAAP) $ 47,726     $ 45,931     $ 47,478     $ 139,096     $ 142,890  
                       
    Average total earning assets $ 5,503,832     $ 5,465,645     $ 5,273,758     $ 5,440,145     $ 5,194,485  
    Less: average mark to market adjustment on investments (non-GAAP)   (51,075 )     (59,225 )     (61,103 )     (55,134 )     (58,577 )
    Adjusted average total earning assets, net of mark to market (non-GAAP) $ 5,554,907     $ 5,524,870     $ 5,334,861     $ 5,495,279     $ 5,253,062  
                       
    Net interest margin, fully tax equivalent basis (non-GAAP) (annualized)   3.42 %     3.34 %     3.53 %     3.38 %     3.64 %

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

    Reconciliation of Non-GAAP Financial Measures

      Three Months Ended   Nine Months Ended
      September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023    		   September 30,
    2024    		   September 30,
    2023
    Calculation of PPNR (non-GAAP): (1)                  
    Net interest income $ 47,486     $ 45,717     $ 47,236     $ 138,425     $ 142,135  
    Add: Non-interest income   10,973       8,865       7,863       28,793       24,198  
    Less: Non-interest expense   38,784       35,989       36,914       112,197       106,892  
    PPNR (non-GAAP) $ 19,675     $ 18,593     $ 18,185     $ 55,021     $ 59,441  
                       
    (1) Management believes that this is an important metric as it illustrates the underlying performance of the Corporation, it enables investors and others to assess the Corporation’s ability to generate capital to cover credit losses through the credit cycle and provides consistent reporting with a key metric used by bank regulatory agencies.
      Three Months Ended   Nine Months Ended
      September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023    		   September 30,
    2024    		   September 30,
    2023
    Calculation of efficiency ratio:                  
    Non-interest expense $ 38,784     $ 35,989     $ 36,914     $ 112,197     $ 106,892  
                       
    Non-interest income $ 10,973     $ 8,865     $ 7,863     $ 28,793     $ 24,198  
    Net interest income   47,486       45,717       47,236       138,425       142,135  
    Total revenue $ 58,459     $ 54,582     $ 55,099     $ 167,218     $ 166,333  
    Efficiency ratio   66.34 %     65.94 %     67.00 %     67.10 %     64.26 %
                       
    Calculation of efficiency ratio (fully tax equivalent basis) (non-GAAP):                  
    Non-interest expense $ 38,784     $ 35,989     $ 36,914     $ 112,197     $ 106,892  
    Less: core deposit intangible amortization   18       19       20       57       65  
    Adjusted non-interest expense (non-GAAP) $ 38,766     $ 35,970     $ 36,894     $ 112,140     $ 106,827  
                       
    Non-interest income $ 10,973     $ 8,865     $ 7,863     $ 28,793     $ 24,198  
                       
    Net interest income $ 47,486     $ 45,717     $ 47,236     $ 138,425     $ 142,135  
    Less: tax exempt investment and loan income, net of TEFRA (non-GAAP)   1,473       1,318       1,376       4,127       4,043  
    Add: tax exempt investment and loan income (fully tax equivalent basis) (non-GAAP)   2,123       1,902       1,955       5,957       5,668  
    Adjusted net interest income (fully tax equivalent basis) (non-GAAP)   48,136       46,301       47,815       140,255       143,760  
    Adjusted net revenue (fully tax equivalent basis) (non-GAAP) $ 59,109     $ 55,166     $ 55,678     $ 169,048     $ 167,958  
                       
    Efficiency ratio (fully tax equivalent basis) (non-GAAP)   65.58 %     65.20 %     66.26 %     66.34 %     63.60 %

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

    Reconciliation of Non-GAAP Financial Measures

      Three Months Ended   Nine Months Ended
      September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023    		   September 30,
    2024    		   September 30,
    2023
    Calculation of return on average tangible common equity (non-GAAP):                  
    Net income $ 13,954     $ 12,957     $ 13,727     $ 39,511     $ 44,043  
    Less: preferred stock dividends   1,076       1,075       1,076       3,226       3,226  
    Net income available to common shareholders $ 12,878     $ 11,882     $ 12,651     $ 36,285     $ 40,817  
                       
    Average shareholders’ equity $ 597,984     $ 583,221     $ 555,464     $ 586,017     $ 548,034  
    Less: average goodwill & intangibles   44,108       44,127       44,186       44,127       44,201  
    Less: average preferred equity   57,785       57,785       57,785       57,785       57,785  
    Tangible common shareholders’ equity (non-GAAP) $ 496,091     $ 481,309     $ 453,493     $ 484,105     $ 446,048  
                       
    Return on average equity (GAAP) (annualized)   9.28 %     8.94 %     9.80 %     9.01 %     10.74 %
    Return on average common equity (GAAP) (annualized)   9.48 %     9.10 %     10.09 %     9.18 %     11.13 %
    Return on average tangible common equity (non-GAAP) (annualized)   10.33 %     9.93 %     11.07 %     10.01 %     12.23 %

    The MIL Network –

  • MIL-OSI USA: Deputy Administrator Isobel Coleman on Building Nutritional Resilience in Food Security

    Source: USAID

    DEPUTY ADMINISTRATOR ISOBEL COLEMAN: Thank you, Ambassador [Jeff] Prescott for hosting me and this discussion here today. 

    It’s a great opportunity to renew our commitment to prioritizing nutrition ahead of the next Nutrition for Growth Summit in Paris next year. 

    Over just the past five years, we’ve faced a number of disruptions to global food security: A global pandemic, increasing climate-related disasters, and global food crises exacerbated by Russia’s unprovoked war on Ukraine. 

    Currently, there are 56 active conflicts in the world, the highest number since World War II. Because of this, as we all know, even though humanitarian needs are rising, there are still not nearly enough resources available to meet global needs.

    Worldwide, most recent estimates indicate that well over 700 million people are undernourished, lacking adequate food to live healthy, active lives. 

    It is estimated that a staggering 45 million children under the age of five are experiencing acute malnutrition at any given time, and every year, up to two million of these children die as a result. 

    Malnutrition devastates every aspect of a child’s body. Those who survive experience lasting consequences, robbing them of the ability to live, think, create, and thrive because of lack of access to basic, life-sustaining nutrition. 

    The United States remains committed to addressing malnutrition in all its forms. 

    With the scale of child wasting today, we need to make sure that as many children as possible can be reached.

    So, we all know we need to get even smarter and more strategic about the way we do this work. 

    Fortunately, one year ago WHO released new guidelines for child wasting prevention and management which have helped us do just that, providing a helpful framework to update our efforts to combat malnutrition and making us more effective in our work. 

    For example, the guidelines emphasize the importance of strengthening coordination between WFP and UNICEF for more effective prevention and treatment of moderately wasted children and severely wasted children.

    In addition, the guidelines highlight the necessity of prevention programming in addition to treatment – to prevent children from becoming wasted in the first place. 

    This is not only the most humane approach, but the most strategic and the most cost-effective. 

    Without appropriate prevention, we know the billions spent today on treatment will continue in perpetuity.

    And recognizing the critical role that community healthcare workers already play in meeting local needs, the guidelines empower community health workers with proper training to treat wasting and malnutrition at home – resulting in fewer trips to clinics, and fewer expensive, in-patient stays at government facilities. 

    The new guidelines also enable us to be more nimble, allowing severely malnourished children who are quickly improving to gradually consume less Ready-to-Use Therapeutic Food as they recover, which nutritionists agree is beneficial to a child’s long-term health.

    This allows us to channel this powerful resource to the children who need it the most.

    USAID has been focused on implementing the guidelines’ recommendations in order to reach more children – and we’ve been working hand-in-hand with WFP and UNICEF to develop and implement a joint strategy for phasing in these guidelines in priority humanitarian contexts. 

    Just last month, USAID provided $100 million to each partner to support those efforts. 

    The WHO guidelines brought attention to the growing evidence base of nutrition research and helped to identify where we have gaps in evidence still to be filled. 

    Last week, I announced USAID’s first policy paper on Cost-Effectiveness because we have learned from the global body of impact evaluation evidence that there are some programs that deliver extraordinary returns. 

    I committed the agency to infusing rigorous evidence more broadly and deeply across all our programming to maximize our “impact per dollar.” 

    Today, I am pleased to announce that USAID will host an evidence summit on wasting research in December of this year, which will bring together researchers to discuss the latest findings from nutrition experts and to identify gaps in evidence in order to shape future research. 

    Following the evidence sometimes requires shifting some of our investments in activities that are demonstrably “good”, because the evidence shows we could make greater progress toward the same objectives through other approaches.

    It’s hard to stop a program that is doing some good, but that’s exactly what we need to do when we know we could achieve even more by working in a different way. 

    This kind of evidence-driven collaboration is an important step toward determining and implementing the most cost-effective malnutrition programming – which we at USAID view as a paramount priority and a moral obligation as we seek to create the greatest impact possible with each dollar we spend. 

    In closing, I want to thank Special Envoy [Brieuc] Pont for his steadfast leadership in preparing for the next Nutrition for Growth Summit in France next year. The U.S. government is a proud member of the Troika, which brings together hosts of Nutrition for Growth past, present, and future together with the Governments of Japan and France. 

    In 2021, USAID was proud to put forward a commitment focused on prevention and treatment of childhood wasting. 

    Going into 2025, we strongly believe this will be a critical opportunity for the entire global nutrition community to recommit to both evidence and action.

    MIL OSI USA News –

  • MIL-OSI Security: Owner of Tax Preparation Company Sentenced to More Than Four Years in Prison for Bank Fraud and $2.1 Million COVID Relief Fraud

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

    Defendant fled the United States after being indicted and remained a fugitive for 19 months

    BOSTON – A Lawrence woman was sentenced in federal court in Boston for using stolen identities of taxpayers and businesspeople to defraud the Internal Revenue Service (IRS), a bank, and the Small Business Administration (SBA).

    Luz Paulino, 42, was sentenced by U.S. District Court Judge Richard G. Stearns to 54 months in prison, four years of supervised release, and ordered to pay $37,056 in restitution to MetaBank and $456,300 to the Small Business Administration. In June 2024, Paulino pleaded guilty to one count of bank fraud conspiracy, one count of bank fraud, two counts of wire fraud and two counts of aggravated identity theft.

    Paulino was arrested in December 2020 and indicted by a federal grand jury in January 2021. While on pretrial release, Paulino fled the United States and remained a fugitive for 19 months.  Panamanian authorities ultimately returned her to the United States, where she was arrested for a second time.

    Paulino owned and operated Agape Financial Services, a Lowell-based company that provided tax preparation and notary services. In 2019 and early 2020, Paulino filed false and fraudulent federal tax returns using the stolen identities, names and Social Security numbers of individual victims. The fraudulent tax returns reported false information regarding wages, employers and dependents, among other things, to claim tax refunds. To conceal her involvement, Paulino falsely represented to the IRS that the returns had been prepared by two former employees of Agape. Paulino then used the fraudulent returns to obtain Refund Advance Loans from a bank in the names of her victims.  Paulino and others she recruited then cashed the loan checks using false identification documents and forged signatures.  

    Paulino separately used stolen identities of businesspeople living in California, Michigan, Indiana and elsewhere to apply to the SBA for $2.1 million in COVID-19 Emergency Injury Disaster Loans. Between June 2020 and October 2021, Paulino’s false applications listed fictitious companies that purportedly lost revenue during the pandemic. She used the fraudulently obtained loan proceeds to wire more than $395,000 to the Dominican Republic and to buy a 2020 Cadillac for $86,000, among other purchases.
        
    Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge, Federal Bureau of Investigation, Boston Field Division; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations; and Melix Bonilla, Acting Chief of the Lawrence Police Department made the announcement today. Assistant U.S. Attorney Victor A. Wild of the Securities, Financial & Cyber Fraud Unit prosecuted the case.

    On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit Justice.gov/Coronavirus and Justice.gov/Coronavirus/CombatingFraud.

    Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form.

    MIL Security OSI –

  • MIL-OSI Security: Spokane Dermatologist Indicted for Using Approximately $1.5 Million in COVID-19 Relief Funds to Buy Arizona Home, Sports Cars, and Other Properties

    Source: Office of United States Attorneys

    Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced a federal grand jury has an indicted a Spokane dermatologist, and his associated businesses, for fraudulently obtaining and using approximately $1.5 million dollars in COVID-19 relief funds to purchase luxury sports cars, buy real estate, and pay off personal debt.

    On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act.  The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic.  EIDL funds were to be used solely as working capital to alleviate economic injury to a business caused by the COVID-19 disaster, such as paying payroll, health insurance premiums, rent, utilities, and fixed debt payments.  EIDL funds were not to be used for personal purposes or to obtain real property or to pay off debts that were not yet due and owing, such as paying more than a fixed monthly payment on a mortgage or other loan.

    The Indictment announced today charges William Philip Werschler, age 66, of Spokane, Washington, along with his businesses Spokane Dermatology Clinic, Premier Clinical Research L.L.C., and 3rd and Sherman Plaza L.L.C., with 23 counts of fraud in connection with how Werschler and his businesses allegedly spent EIDL loans.

    Beginning no later than April 2020 and continuing until at least July 2022, Werschler applied for EIDL loans for his businesses: Spokane Dermatology Clinic, Premier Clinical Research, and 3rd and Sherman Plaza L.L.C.  In total, Werschler and his businesses received more than $2.9 million in EIDL money.

    The Indictment alleges that Werschler used the EIDL funds for personal purchases including over half of the $575,000 purchase price of a house in Scottsdale, Arizona; the purchase of a 2011 Porsche 911 GT3 for $166,687; the purchase of a 1997 Porsche Carrera for $88,687; and $123,960 to pay off a loan for a storage unit at 6720 N. Pittsburg Street that was used to store automobiles, jet skis, and a boat. According to the indictment, Werschler also allegedly used EIDL money to pay off the balance of a loan for property on Grant Street in Spokane, Washington, for $286,792, and $550,000 to purchase two properties across from his Spokane Dermatology Clinic, both contrary to the proper use of EIDL funds.

    “Many small and local businesses struggled to stay afloat during the COVID-19 pandemic. The Economic Injury Disaster Loan program was designed to provide those business owners an economic lifeline,” stated U.S. Attorney Waldref. “My office has made it a priority to hold fraudsters accountable who used these critical funds to enrich themselves.”

    This case was investigated by the IRS Criminal Investigations, the FBI, and the Small Business Administration Office of Inspector General. It is being prosecuted by Assistant United States Attorney Jeremy J. Kelley.

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

    MIL Security OSI –

  • MIL-OSI USA: $24.5M Goes to WA Airports For Terminal Improvements

    US Senate News:

    Source: United States Senator for Washington Maria Cantwell

    10.21.24

    $24.5M Goes to WA Airports For Terminal Improvements

    Grants will help fund South Concourse rehabilitation at Sea-Tac, build new passenger boarding bridges at Spokane and Tri-Cities, & modernize baggage claim system in Yakima

    EDMONDS, WA – Today, U.S. Senator Maria Cantwell (D-WA), chair of the Senate Committee on Commerce, Science, and Transportation, announced that four State of Washington airports will receive grants from the Federal Aviation Administration’s (FAA) Airport Terminal Program (ATP) to support infrastructure upgrades and modernization projects. Sen. Cantwell secured a big funding boost for the ATP through the Bipartisan Infrastructure Law (BIL).

    “Serving over 50 million travelers a year, Seattle-Tacoma International Airport is a major gateway for travelers and businesses in the State of Washington and its South Concourse connects the Pacific Northwest to the world,” said Sen. Cantwell. “This funding will make major updates to the 1970’s era facility, enhancing the passenger experience for international travelers and investing in the structural and seismic safety of the concourse, ensuring passenger safety for the next half century.”

    Seattle-Tacoma International Airport will receive $17.5 million to fund a portion of Phase 1 construction for the South Concourse Reconstruction Project including structural, seismic, and building system upgrades. The current South Concourse building was originally built in the early 1970’s and expanded in the early 1980’s. The structure does not meet seismic, fire, and many other current code requirements. This project will upgrade the building to current safety codes. These early work projects will accomplish the significant amount of construction that can occur in advance of any impacts to airplane gates. In particular, the early work will increase passenger safety by strengthening columns and foundations throughout the building.

    “The Tri-Cities Airport is critical to Central Washington’s continued economic growth,” said Sen. Cantwell. “This funding will enable the airport to accommodate larger planes by adding three additional passenger boarding bridges. With a record 872,000 travelers in 2023, this grant will help Tri-Cities Airport keep pace with demand and future growth.”

    Tri-Cities Airport will receive $4 million towards the purchase of three additional passenger boarding bridges to be added to existing gates, as well as expanding the outbound baggage area. Tri-Cities Airport, operated by the Port of Pasco, is the fourth-largest air carrier airport in the state and the largest airport in the southeastern Washington and northeastern Oregon region. The airport has ten nonstop destinations and has increased enplanements by nearly 100,000 in the past five years. Sen. Cantwell’s letter to U.S. Department of Transportation Secretary Pete Buttigieg in support of the project is available HERE.

    “Spokane is on the move — last year the airport welcomed a record 4.13 million travelers,” said Sen. Cantwell. “This funding will help Spokane International Airport eliminate ground boarding at the airport and pursue the airport’s first LEED certified concourse, steps that will improve capacity, accessibility, and sustainability.”

    Spokane International Airport will receive $2 million towards the final phase of the facility’s terminal renovation and expansion (TREX) project, which includes renovating three passenger boarding bridges, and making important utilities and accessibility upgrades. When complete, the project will add six additional ticket counters and three additional gates at Concourse C. The additional capacity is much-needed — Spokane International Airport saw enplanements grow 38 percent between 2013 and 2019. Last year, the airport served 4.13 million passengers, exceeding for the first time the pre-pandemic high of 4.03 million passengers in 2019. Sen. Cantwell’s letter to Sec. Buttigieg in support of the project is available HERE.

    In May, Sen. Cantwell visited Spokane to celebrate completion of the first phase of the project. Since the TREX project was announced, Sen. Cantwell has helped to secure $61.3 million in federal funding for the airport’s expansion. Photos of that event are available HERE.

    “Yakima is a key agriculture and manufacturing hub for our economy and increasing air service is helping the area create more jobs and attract new businesses,” said Sen. Cantwell. “This grant will help Yakima Air Terminal replace and modernize its baggage claim system to improve the passenger experience and keep Central Washingtonians moving.

    Yakima Air Terminal will receive $1 million to replace the airport’s legacy slide baggage chute with a new moving baggage carousel. The Yakima Air Terminal, first constructed in 1950, provides $591 million in economic impact and 2,366 jobs to the city and the surrounding rural counties. Last year the airport added a second set of flights to Seattle, making it more attractive for passengers to travel through their local hometown airport rather than driving. Sen. Cantwell’s letter to Sec. Buttigieg in support of the project is available HERE.

    As chair of the Senate Committee on Commerce, Science, and Transportation, Sen. Cantwell has championed a dramatic increase in federal resources for airport infrastructure improvements like this one. In 2021, Sen. Cantwell worked hard to secure funding for air travel infrastructure nationwide as part of the BIL. With her support, the infrastructure package provided a total of $25 billion for airport improvements, including $5 billion for the Airport Terminal Program – the program from which these grants will be made, $5 billion for Federal Aviation Administration air traffic control facilities, and $15 billion in Airport Infrastructure Grants.

    These critical investments in airports across the state are particularly timely as air travel hits all-time highs. According to the Transportation Security Administration (TSA), in July the agency set a record for most passengers screened in a single day, with more than 3 million travelers screened on July 7.  In late June, TSA screened the most travelers in a single week – 19.5 million. Moreover, seven of the 10 busiest air travel days ever occurred over the past summer, according to TSA.

    MIL OSI USA News –

  • MIL-OSI New Zealand: Government News – More and more people are turning to the Ombudsman for help

    Source: Office of the Ombudsman

    The Chief Ombudsman Peter Boshier has today published his 2023/2024 Annual Report.
    “In 2023/24 I completed the highest number of complaints and protected disclosures ever,” Mr Boshier says.
    “I completed 6,269 complaints, eight percent more than the number completed last year and 58 percent more than the average number completed in each of the five years prior to the pandemic. I also completed 220 protected disclosures and enquiries, a 159 percent increase from the previous year.
    “Both complaints and protected disclosures have been at historically high levels over the last three years, which shows that this sustained high level may be becoming the new normal.”
    Mr Boshier also received 38 percent more official information complaints (2,222 complaints) related to both the Official Information Act and the Local Government Official Information and Meetings Act than the average number received in each of the five years prior to the pandemic.
    He also received 98 percent more Ombudsmen Act (OA) complaints than the average number received in each of the five years prior to the pandemic.
    The Chief Ombudsman has also made every effort to help improve good practice across government, including in his recommendations to agencies where he has considered it is needed.
    “It has been a busy period in other respects as well. Over the past year I have made comment and submissions on 35 legislative, policy, or administrative proposals, provided advice to public sector agencies on 356 occasions and visited 108 places of detention.
    “I also published Open for business, a report on my investigation into meeting and workshop practices of eight councils. My call for greater openness and accountability has resonated across the country with a number of councils considering and many changing their meeting policies.
    “Another major report was Children in care: complaints to the Ombudsman 2019-2023, which called for the government and Oranga Tamariki to make profound changes to the way the Ministry operates.
    “I also continued my community outreach and engagement work which allows me to meet people face-to-face to talk about my work and how I can help them.
    “My overall goal is that people are treated fairly. I have continued to work to ensure that the public understands its rights and options, has reasonable expectations about what the public sector should provide, and understands what it can expect from me and my office.”

    MIL OSI New Zealand News –

  • MIL-OSI: Sandy Spring Bancorp Reports Third Quarter Earnings of $16.2 Million

    Source: GlobeNewswire (MIL-OSI)

    OLNEY, Md., Oct. 21, 2024 (GLOBE NEWSWIRE) — Sandy Spring Bancorp, Inc. (Nasdaq-SASR), the parent company of Sandy Spring Bank, reported net income of $16.2 million ($0.36 per diluted common share) for the quarter ended September 30, 2024, compared to net income of $22.8 million ($0.51 per diluted common share) for the second quarter of 2024 and $20.7 million ($0.46 per diluted common share) for the third quarter of 2023.

    Current quarter’s core earnings were $17.9 million ($0.40 per diluted common share), compared to $24.4 million ($0.54 per diluted common share) for the quarter ended June 30, 2024 and $27.8 million ($0.62 per diluted common share) for the quarter ended September 30, 2023. Core earnings exclude the after-tax impact of amortization of intangibles, investment securities gains or losses and other non-recurring or extraordinary items. The current quarter’s decline in net income and core earnings as compared to the linked quarter was driven by higher provision for credit losses combined with higher non-interest expense, partially offset by higher net interest income. The total provision for credit losses was $6.3 million for the third quarter of 2024 compared to $1.0 million for the previous quarter and $2.4 million for the third quarter of 2023.

    “We have a solid capital position and are seeing ongoing success with our core deposit strategies and our wealth management lines of business,” said Daniel J. Schrider, Chair, President & CEO of Sandy Spring Bank. “Our wealth teams – Sandy Spring Trust, and our subsidiaries, West Financial and RPJ – have an expanding number of referrals from current clients and work closely with business owners from early growth through maturity. The success of our wealth teams’ approach is reflected in our strong fee income results.”

    Third Quarter Highlights

    • Total assets at September 30, 2024 increased by 3% to $14.4 billion compared to $14.0 billion at June 30, 2024.
    • Total loans remained level at $11.5 billion as of September 30, 2024 compared to June 30, 2024. During the current quarter, AD&C and commercial business loans and lines increased by $71.3 million and $19.4 million, respectively, while the commercial investor real estate segment declined by $64.9 million. Total residential mortgage and consumer loan portfolios remained relatively unchanged during this period.
    • Deposits increased by $397.5 million or 4% to $11.7 billion at September 30, 2024 compared to $11.3 billion at June 30, 2024, as interest-bearing deposits increased $425.8 million, while noninterest-bearing deposits declined $28.3 million. Strong growth in the interest-bearing deposit categories was mainly experienced within money market, time deposits and savings accounts, which grew by $185.2 million, $151.5 million, and $66.1 million, respectively, compared to the linked quarter. The decline in noninterest-bearing deposit categories was driven by lower balances in personal and small business checking accounts. Total deposits, excluding brokered deposits, increased by $351.7 million or 3% quarter-over-quarter and represented 94% of total deposits as of September 30, 2024.
    • The ratio of non-performing loans to total loans was 1.09% at September 30, 2024 compared to 0.81% at June 30, 2024 and 0.46% at September 30, 2023. The current quarter’s increase in non-performing loans was mainly related to a single AD&C loan that was placed on non-accrual status during the current period. Net charge-offs for the current quarter totaled $0.7 million.
    • Net interest income for the third quarter of 2024 grew $1.1 million or 1% compared to the previous quarter and decreased by $3.7 million or 4% compared to the third quarter of 2023. Compared to the previous quarter, interest income increased by $5.0 million, while interest expense increased by $3.9 million.
    • The net interest margin was 2.44% for the third quarter of 2024 compared to 2.46% for the second quarter of 2024 and 2.55% for the third quarter of 2023. During the current quarter, the net interest margin was negatively impacted by a reversal of previously accrued uncollected interest income on a single large AD&C loan placed on a non-accrual status. Compared to the linked quarter, the rate paid on interest-bearing liabilities increased seven basis points, while the yield on interest-earning assets increased three basis points.
    • Provision for credit losses directly attributable to the funded loan portfolio was $6.3 million for the current quarter compared to $3.0 million in the previous quarter and $3.2 million in the prior year quarter. The current quarter’s provision expense is mainly attributable to higher individual reserves on collateral-dependent loans, primarily related to a single AD&C loan due to the borrower-specific circumstances, partially offset by lower qualitative adjustments due to the reduction in commercial investor real estate loans. In addition, during the current quarter, the provision for unfunded commitments was insignificant compared to a credit of $1.9 million from the previous quarter.
    • Non-interest income for the third quarter of 2024 increased by 1% or $0.1 million compared to the linked quarter and grew by 13% or $2.3 million compared to the prior year quarter. The quarter-over-quarter increase was mainly driven by higher wealth management income and other income, generated by higher credit-related fees, which was fully offset by lower income from bank owned life insurance due to a receipt of one-time mortality proceeds during the prior quarter.
    • Non-interest expense for the third quarter of 2024 increased by $4.8 million compared to the second quarter of 2024 and $0.5 million compared to the prior year quarter. The quarterly increase in non-interest expense was primarily due to higher salaries and benefits along with an increase in professional fees and services.
    • Return on average assets (“ROA”) for the quarter ended September 30, 2024 was 0.46% and return on average tangible common equity (“ROTCE”) was 5.88% compared to 0.66% and 8.27%, respectively, for the second quarter of 2024 and 0.58% and 7.42%, respectively, for the third quarter of 2023. On a non-GAAP basis, the current quarter’s core ROA was 0.50% and core ROTCE was 5.88% compared to 0.70% and 8.27%, respectively, for the previous quarter and 0.78% and 9.51%, respectively, for the third quarter of 2023.
    • The GAAP efficiency ratio was 72.12% for the third quarter of 2024, compared to 68.19% for the second quarter of 2024 and 70.72% for the third quarter of 2023. The non-GAAP efficiency ratio was 69.06% for the third quarter of 2024 compared to 65.31% for the second quarter of 2024 and 60.91% for the prior year quarter. The increase in non-GAAP efficiency ratio (reflecting a decrease in efficiency) in the current quarter compared to the previous quarter was the result of higher non-interest expense in the current quarter.

    Balance Sheet and Credit Quality

    Total assets were $14.4 billion at September 30, 2024, as compared to $14.0 billion at June 30, 2024. At September 30, 2024, total loans remained stable at $11.5 billion compared to the previous quarter. During this period, the growth in AD&C and commercial business loans and lines of $71.3 million or 6% and $19.4 million or 1%, respectively, were mostly offset by the decline in commercial investor real estate loans of $64.9 million or 1%. Total residential mortgage and consumer loan portfolios remained relatively unchanged.

    Deposits increased $397.5 million or 4% to $11.7 billion at September 30, 2024 compared to $11.3 billion at June 30, 2024. During this period, noninterest-bearing deposits decreased $28.3 million or 1%, while interest-bearing deposits increased $425.8 million or 5%. The slight decline in noninterest-bearing deposit categories was driven by decreases in personal and small business checking accounts, partially offset by an increase in commercial checking accounts. Growth in interest-bearing deposits was seen across all product categories, but most notably in money market and time deposit accounts which grew $185.2 million or 7% and $151.5 million or 6% during the current quarter, respectively. Total deposits, excluding brokered deposits, increased by $351.7 million or 3% quarter-over-quarter and remained at 94% of the total deposits as of September 30, 2024 compared to June 30, 2024, reflecting continued strength and stability of the core deposit base. Total uninsured deposits at September 30, 2024 were approximately 37% of total deposits.

    Total borrowings decreased $54.1 million or 6% at September 30, 2024 as compared to the previous quarter, primarily driven by a $50.0 million pay down of FHLB advances. At September 30, 2024, available unused sources of liquidity, which consist of available FHLB borrowings, fed funds, funds through the Federal Reserve Bank’s discount window, as well as excess cash and unpledged investment securities, totaled $6.3 billion or 146% of uninsured deposits.

    The tangible common equity to tangible assets ratio declined slightly to 8.83% at September 30, 2024, compared to 8.85% at June 30, 2024.

    At September 30, 2024, the Company had a total risk-based capital ratio of 15.53%, a common equity tier 1 risk-based capital ratio of 11.27%, a tier 1 risk-based capital ratio of 11.27%, and a tier 1 leverage ratio of 9.59%. These risk-based capital ratios compare to a total risk-based capital ratio of 15.49%, a common equity tier 1 risk-based capital ratio of 11.28%, a tier 1 risk-based capital ratio of 11.28%, and a tier 1 leverage ratio of 9.70% at June 30, 2024. All of these ratios remain well in excess of the mandated minimum regulatory requirements.

    Non-performing loans include non-accrual loans and accruing loans 90 days or more past due. At September 30, 2024, non-performing loans totaled $125.3 million, compared to $93.0 million at June 30, 2024 and $51.8 million at September 30, 2023. The non-performing loans to total loans ratio was 1.09% compared to 0.81% on a linked quarter basis. These levels of non-performing loans compare to 0.46% at September 30, 2023. The current quarter’s increase in non-performing loans was mainly related to a single AD&C loan with the total outstanding principal balance of $28.0 million, which was placed on a non-accrual status during the current period. Total net charge-offs for the current quarter amounted to $0.7 million compared to $0.2 million for the second quarter of 2024 and $0.1 million for the third quarter of 2023.

    At September 30, 2024, the allowance for credit losses was $131.4 million or 1.14% of outstanding loans and 105% of non-performing loans, compared to $125.9 million or 1.10% of outstanding loans and 135% of non-performing loans at the end of the previous quarter and $123.4 million or 1.09% of outstanding loans and 238% of non-performing loans at the end of the third quarter of 2023. The increase in the allowance for the current quarter compared to the previous quarter mainly reflects higher individual reserves on collateral-dependent non-accrual loans, primarily driven by the aforementioned AD&C lending relationship, partially offset by lower qualitative adjustments as a result of declines in commercial investor real estate loans.

    Income Statement Review

    Quarterly Results

    Net income was $16.2 million ($0.36 per diluted common share) for the three months ended September 30, 2024 compared to $22.8 million ($0.51 per diluted common share) for the three months ended June 30, 2024 and $20.7 million ($0.46 per diluted common share) for the prior year quarter. The current quarter’s core earnings were $17.9 million ($0.40 per diluted common share), compared to $24.4 million ($0.54 per diluted common share) for the previous quarter and $27.8 million ($0.62 per diluted common share) for the quarter ended September 30, 2023. The decreases in the current quarter’s net income and core earnings compared to the previous quarter were driven primarily by higher provision for credit losses and non-interest expense.

    Net interest income for the third quarter of 2024 increased $1.1 million or 1% compared to the previous quarter and declined $3.7 million or 4% compared to the third quarter of 2023. During the current quarter, interest income increased $5.0 million, while interest expense increased $3.9 million. The rising interest rate environment was primarily responsible for a $7.7 million year-over-year increase in interest income. This growth in interest income was more than offset by the $11.4 million year-over-year growth in interest expense as funding costs have also risen in response to the rising rate environment and significant competition for deposits.

    The net interest margin was 2.44% for the third quarter of 2024 compared to 2.46% for the second quarter of 2024 and 2.55% for the third quarter of 2023. The decrease in the net interest margin during the current quarter was a result of a seven basis point increase in the rate paid on interest-bearing liabilities, while the yield earned on interest-earning assets rose three basis points. The current quarter’s net interest margin was negatively impacted by approximately three basis points due to the reversal of previously accrued uncollected interest income on a single large AD&C loan placed on non-accrual status during the period. As compared to the prior year quarter, the yield on interest-earning assets increased 23 basis points while the rate paid on interest-bearing liabilities rose 39 basis points, resulting in net interest margin compression of 11 basis points. The rate and yield increases year-over-year were driven by the higher interest rate environment, competition for deposits in the market, and customer movement of excess funds out of noninterest-bearing accounts into higher yielding products.

    The total provision for credit losses was $6.3 million for the third quarter of 2024 compared to $1.0 million for the previous quarter and $2.4 million for the third quarter of 2023. The provision for credit losses directly attributable to the funded loan portfolio was $6.3 million for the current quarter compared to $3.0 million for the second quarter of 2024 and $3.2 million for the third quarter of 2023. The current quarter’s provision is mainly a reflection of higher individual reserves on collateral-dependent non-accrual loans, primarily associated with the provision on a single AD&C lending relationship based on the current fair value of the collateral, partially offset by lower qualitative adjustments driven by an overall reduction in commercial investor real estate loan portfolio. In addition, during the current quarter, the reserve for unfunded commitments remained relatively stable at $1.5 million.

    Non-interest income for the third quarter of 2024 increased by 1% or $0.1 million compared to the linked quarter and grew by 13% or $2.3 million compared to the prior year quarter. The current quarter’s increase in non-interest income as compared to the previous quarter was mainly driven by the $0.4 million increase in other income, generated by credit-related fees, and $0.3 million increase in wealth management income, due to the $352.1 million or 6% growth in assets under management quarter-over-quarter and the overall favorable market performance, offset by $0.5 million decrease in BOLI income, due to the receipt of one-time death proceeds in the prior quarter.

    Non-interest expense for the third quarter of 2024 increased $4.8 million or 7% compared to the second quarter of 2024 and $0.5 million or 1% compared to the third quarter of 2023. The quarter-over-quarter increase is predominantly attributable to the $3.2 million increase in salaries and benefits, due to the increase in employee incentive compensation coupled with the $1.6 million increase in professional fees and services, mostly due to a one-time contract negotiation fee. The prior year quarter included $8.2 million of pension settlement expense related to the termination of the Company’s pension plan. Excluding this item, non-interest expense for the third quarter of 2024 increased $8.6 million or 13% compared to the third quarter of 2023.

    For the third quarter of 2024, the GAAP efficiency ratio was 72.12% compared to 68.19% for the second quarter of 2024 and 70.72% for the third quarter of 2023. The GAAP efficiency ratio rose from the prior year quarter primarily as a result of the 1% increase in GAAP non-interest expense coupled with the 1% decline in GAAP revenue. The non-GAAP efficiency ratio was 69.06% for the current quarter as compared to 65.31% for the second quarter of 2024 and 60.91% for the third quarter of 2023. The increase in the non-GAAP efficiency ratio (reflecting a decrease in efficiency) from the third quarter of the prior year to the current year quarter was primarily the result of the 12% increase in adjusted non-interest expense.

    ROA for the quarter ended September 30, 2024 was 0.46% and ROTCE was 5.88% compared to 0.66% and 8.27%, respectively, for the second quarter of 2024 and 0.58% and 7.42%, respectively, for the third quarter of 2023. On a non-GAAP basis, the current quarter’s core ROA was 0.50% and core ROTCE was 5.88% compared to 0.70% and 8.27% for the second quarter of 2024 and 0.78% and 9.51%, respectively, for the third quarter of 2023.

    Year-to-Date Results

    The Company recorded net income of $59.4 million for the nine months ended September 30, 2024 compared to net income of $96.7 million for the same period in the prior year. Core earnings were $64.3 million for the nine months ended September 30, 2024 compared to $107.2 million for the same period in the prior year. Year-to-date net income and core earnings declined as a result of lower net interest income in combination with higher provision for credit losses, which was partially offset by higher non-interest income.

    For the nine months ended September 30, 2024, net interest income decreased $31.8 million compared to the prior year as a result of the $61.1 million increase in interest expense, partially offset by the $29.3 million increase in interest income. The increase in interest expense was driven by the interest expense on deposits, primarily associated with savings and time deposit accounts. The net interest margin declined to 2.44% for the nine months ended September 30, 2024, compared to 2.75% for the prior year, primarily as a result of higher funding costs due to the elevated interest rate environment and market competition for deposits during the period.

    The provision for credit losses for the nine months ended September 30, 2024 was $9.7 million as compared to a credit of $14.1 million for 2023. The provision for the nine months ended September 30, 2024 was primarily due to an increase in individual reserves on collateral-dependent non-accrual loans, as well as adjustments applied to specific industries within the commercial real estate segment during the first quarter of 2024. The prior year’s credit to provision was mainly attributable to the improving regional forecasted unemployment rate observed during the first half of 2023, and the declining probability of economic recession.

    For the nine months ended September 30, 2024, non-interest income increased 14% to $57.7 million compared to $50.5 million for 2023. During the current year, wealth management income increased $3.7 million or 14%, as assets under management increased $1.0 billion or 19% year-over-year. In addition, BOLI mortality-related income and service charges on deposit accounts increased $1.3 million and $1.1 million, respectively.

    Non-interest expense increased to $209.0 million for the nine months ended September 30, 2024, compared to $207.9 million for 2023. The drivers of the increase in non-interest expense were the $4.0 million increase in professional fees and services, $2.7 increase in amortization of intangible assets, $1.8 million increase in FDIC expense, and $1.2 million increase in outside data services. These year-over-year increases were offset by the $9.2 million decrease in compensation and benefits, as the prior year period included $8.2 million pension termination expense and $1.9 million of severance related expenses associated with staffing adjustments.

    For the nine months ended September 30, 2024, the GAAP efficiency ratio was 69.98% compared to 64.29% for the same period in 2023. The non-GAAP efficiency ratio for the current year was 67.04% compared to 59.42% for the prior year. The growth in the current year’s GAAP and non-GAAP efficiency ratios compared to the prior year, indicating a decline in efficiency, was the result of the declines in GAAP and non-GAAP revenues combined with the growth in GAAP and non-GAAP non-interest expenses.

    Explanation of Non-GAAP Financial Measures

    This news release contains financial information and performance measures determined by methods other than in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company’s management believes that the supplemental non-GAAP information provides a better comparison of period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. Non-GAAP measures used in this release consist of the following:

    • Tangible common equity and related measures are non-GAAP measures that exclude the impact of goodwill and other intangible assets.
    • The non-GAAP efficiency ratio excludes amortization of intangible assets, investment securities gains/(losses), severance expense, contingent payment expense, and includes tax-equivalent income.
    • Core earnings and the related measures of core earnings per diluted common share, core return on average assets and core return on average tangible common equity reflect net income exclusive of amortization of intangible assets, investment securities gains/(losses) and other non-recurring or extraordinary items, on a net of tax basis.
    • Pre-tax pre-provision net income excludes income tax expense and the provision (credit) for credit losses.

    These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Please refer to the non-GAAP Reconciliation tables included with this release for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measure.

    Conference Call Cancelled

    As a result of today’s announcement that the Company has entered into a merger agreement with Atlantic Union Bankshares Corporation, the Company has cancelled its conference call scheduled for 2:00 p.m. ET today to discuss the Company’s results for the third quarter of 2024.

    About Sandy Spring Bancorp, Inc.

    Sandy Spring Bancorp, Inc., headquartered in Olney, Maryland, is the holding company for Sandy Spring Bank, a premier community bank in the Greater Washington, D.C. region. With over 50 locations, the bank offers a broad range of commercial and retail banking, mortgage, private banking, and trust services throughout Maryland, Virginia, and Washington, D.C. Through its subsidiaries, Rembert Pendleton Jackson and West Financial Services, Inc., Sandy Spring Bank also offers a comprehensive menu of wealth management services.

    Source: Sandy Spring Bancorp, Inc.
    Code: SASR-E

    Forward-Looking Statements

    Sandy Spring Bancorp’s forward-looking statements are subject to significant risks and uncertainties that may cause actual results to differ materially from those in such statements. These risks and uncertainties include, but are not limited to, the risks identified in our quarterly and annual reports and the following: changes in general business and economic conditions nationally or in the markets that we serve; changes in consumer and business confidence, investor sentiment, or consumer spending or savings behavior; changes in the level of inflation; changes in the demand for loans, deposits and other financial services that we provide; the possibility that future credit losses may be higher than currently expected; the impact of the interest rate environment on our business, financial condition and results of operations; the impact of compliance with changes in laws, regulations and regulatory interpretations, including changes in income taxes; changes in credit ratings assigned to us or our subsidiaries; the ability to realize benefits and cost savings from, and limit any unexpected liabilities associated with, any business combinations; competitive pressures among financial services companies; the ability to attract, develop and retain qualified employees; our ability to maintain the security of our data processing and information technology systems; the impact of changes in accounting policies, including the introduction of new accounting standards; the impact of judicial or regulatory proceedings; the impact of fiscal and governmental policies of the United States federal government; the impact of health emergencies, epidemics or pandemics; the effects of climate change; and the impact of natural disasters, extreme weather events, military conflict, terrorism or other geopolitical events. Sandy Spring Bancorp provides greater detail regarding some of these factors in its Form 10-K for the year ended December 31, 2023, including in the Risk Factors section of that report, and in its other SEC reports. Sandy Spring Bancorp’s forward-looking statements may also be subject to other risks and uncertainties, including those that it may discuss elsewhere in this news release or in its filings with the SEC, accessible on the SEC’s Web site at http://www.sec.gov.

    Sandy Spring Bancorp, Inc. and Subsidiaries
    FINANCIAL HIGHLIGHTS – UNAUDITED

        Three Months Ended
    September 30,    		       Nine Months Ended
    September 30,    		    
    (Dollars in thousands, except per share data)     2024       2023     %
    Change    		     2024       2023     %
    Change
    Results of operations:                        
    Net interest income   $ 81,412     $ 85,081     (4 )%   $ 241,040     $ 272,854     (12 )%
    Provision/ (credit) for credit losses     6,316       2,365     167 %     9,724       (14,116 )   N/M
    Non-interest income     19,715       17,391     13       57,669       50,518     14  
    Non-interest expense     72,937       72,471     1       209,047       207,912     1  
    Income before income tax expense     21,874       27,636     (21 )     79,938       129,576     (38 )
    Net income     16,209       20,746     (22 )     59,388       96,744     (39 )
                             
    Net income attributable to common shareholders   $ 16,205     $ 20,719     (22 )   $ 59,351     $ 96,552     (39 )
    Pre-tax pre-provision net income (1)   $ 28,190     $ 30,001     (6 )   $ 89,662     $ 115,460     (22 )
                             
    Return on average assets     0.46 %     0.58 %         0.56 %     0.92 %    
    Return on average common equity     4.01 %     5.35 %         4.99 %     8.50 %    
    Return on average tangible common equity (1)     5.88 %     7.42 %         7.17 %     11.67 %    
    Net interest margin     2.44 %     2.55 %         2.44 %     2.75 %    
    Efficiency ratio – GAAP basis (2)     72.12 %     70.72 %         69.98 %     64.29 %    
    Efficiency ratio – Non-GAAP basis (2)     69.06 %     60.91 %         67.04 %     59.42 %    
                             
    Per share data:                        
    Basic net income per common share   $ 0.36     $ 0.46     (22 )%   $ 1.32     $ 2.16     (39 )%
    Diluted net income per common share   $ 0.36     $ 0.46     (22 )   $ 1.31     $ 2.15     (39 )
    Weighted average diluted common shares     45,242,920       44,960,455     1       45,156,521       44,912,803     1  
    Dividends declared per share   $ 0.34     $ 0.34     —     $ 1.02     $ 1.02     —  
    Book value per common share   $ 36.10     $ 34.26     5     $ 36.10     $ 34.26     5  
    Tangible book value per common share (1)   $ 27.37     $ 25.80     6     $ 27.37     $ 25.80     6  
    Outstanding common shares     45,125,078       44,895,158     1       45,125,078       44,895,158     1  
                             
    Financial condition at period-end:                        
    Investment securities   $ 1,440,488     $ 1,392,078     3 %   $ 1,440,488     $ 1,392,078     3 %
    Loans     11,491,921       11,300,292     2       11,491,921       11,300,292     2  
    Assets     14,383,073       14,135,085     2       14,383,073       14,135,085     2  
    Deposits     11,737,694       11,151,012     5       11,737,694       11,151,012     5  
    Stockholders’ equity     1,628,837       1,537,914     6       1,628,837       1,537,914     6  
                             
    Capital ratios:                        
    Tier 1 leverage (3)     9.59 %     9.50 %         9.59 %     9.50 %    
    Common equity tier 1 capital to risk-weighted assets (3)     11.27 %     10.83 %         11.27 %     10.83 %    
    Tier 1 capital to risk-weighted assets (3)     11.27 %     10.83 %         11.27 %     10.83 %    
    Total regulatory capital to risk-weighted assets (3)     15.53 %     14.85 %         15.53 %     14.85 %    
    Tangible common equity to tangible assets (4)     8.83 %     8.42 %         8.83 %     8.42 %    
    Average equity to average assets     11.37 %     10.92 %         11.32 %     10.84 %    
                             
    Credit quality ratios:                        
    Allowance for credit losses to loans     1.14 %     1.09 %         1.14 %     1.09 %    
    Non-performing loans to total loans     1.09 %     0.46 %         1.09 %     0.46 %    
    Non-performing assets to total assets     0.89 %     0.37 %         0.89 %     0.37 %    
    Allowance for credit losses to non-performing loans     104.92 %     238.32 %         104.92 %     238.32 %    
    Annualized net charge-offs/ (recoveries) to average loans (5)     0.03 %     — %         0.02 %     0.02 %    
    N/M – not meaningful
    (1) Represents a non-GAAP measure.
    (2) The efficiency ratio – GAAP basis is non-interest expense divided by net interest income plus non-interest income from the Condensed Consolidated Statements of Income. The traditional efficiency ratio – Non-GAAP basis excludes intangible asset amortization, pension settlement expense, severance expense and contingent payment expense from non-interest expense; and investment securities gains/ (losses) from non-interest income; and adds the tax-equivalent adjustment to net interest income. See the Reconciliation Table included with these Financial Highlights.
    (3) Estimated ratio at September 30, 2024.
    (4) The tangible common equity to tangible assets ratio is a non-GAAP ratio that divides assets excluding goodwill and other intangible assets into stockholders’ equity after deducting goodwill and other intangible assets. See the Reconciliation Table included with these Financial Highlights.
    (5) Calculation utilizes average loans, excluding residential mortgage loans held-for-sale.

    Sandy Spring Bancorp, Inc. and Subsidiaries
    RECONCILIATION TABLE – UNAUDITED (CONTINUED)
    OPERATING EARNINGS – METRICS

        Three Months Ended
    September 30,    		   Nine Months Ended
    September 30,
    (Dollars in thousands)     2024       2023       2024       2023  
    Core earnings (non-GAAP):                
    Net income (GAAP)   $ 16,209     $ 20,746     $ 59,388     $ 96,744  
    Plus/ (less) non-GAAP adjustments (net of tax)(1):                
    Amortization of intangible assets     1,727       932       4,864       2,851  
    Severance expense     —       —       —       1,445  
    Pension settlement expense     —       6,088       —       6,088  
    Contingent payment expense     —       —       —       27  
    Core earnings (Non-GAAP)   $ 17,936     $ 27,766     $ 64,252     $ 107,155  
                     
    Core earnings per diluted common share (non-GAAP):                
    Weighted average common shares outstanding – diluted (GAAP)     45,242,920       44,960,455       45,156,521       44,912,803  
                     
    Earnings per diluted common share (GAAP)   $ 0.36     $ 0.46     $ 1.31     $ 2.15  
    Core earnings per diluted common share (non-GAAP)   $ 0.40     $ 0.62     $ 1.42     $ 2.39  
                     
    Core return on average assets (non-GAAP):                
    Average assets (GAAP)   $ 14,136,037     $ 14,086,342     $ 14,051,722     $ 14,043,925  
                     
    Return on average assets (GAAP)     0.46 %     0.58 %     0.56 %     0.92 %
    Core return on average assets (non-GAAP)     0.50 %     0.78 %     0.61 %     1.02 %
                     
    Return/ Core return on average tangible common equity (non-GAAP):                
    Net Income (GAAP)   $ 16,209     $ 20,746     $ 59,388     $ 96,744  
    Plus: Amortization of intangible assets (net of tax)     1,727       932       4,864       2,851  
    Net income before amortization of intangible assets   $ 17,936     $ 21,678     $ 64,252     $ 99,595  
                     
    Average total stockholders’ equity (GAAP)   $ 1,607,377     $ 1,538,553     $ 1,590,682     $ 1,522,153  
    Average goodwill     (363,436 )     (363,436 )     (363,436 )     (363,436 )
    Average other intangible assets, net     (30,679 )     (16,777 )     (29,940 )     (18,068 )
    Average tangible common equity (non-GAAP)   $ 1,213,262     $ 1,158,340     $ 1,197,306     $ 1,140,649  
                     
    Return on average tangible common equity (non-GAAP)     5.88 %     7.42 %     7.17 %     11.67 %
    Core return on average tangible common equity (non-GAAP)     5.88 %     9.51 %     7.17 %     12.56 %
    (1) Tax adjustments have been determined using the combined marginal federal and state rate of 25.48% and 25.37% for 2024 and 2023, respectively.

    Sandy Spring Bancorp, Inc. and Subsidiaries
    RECONCILIATION TABLE – UNAUDITED

        Three Months Ended
    September 30,    		   Nine Months Ended
    September 30,
    (Dollars in thousands)     2024       2023       2024       2023  
    Pre-tax pre-provision net income:                
    Net income (GAAP)   $ 16,209     $ 20,746     $ 59,388     $ 96,744  
    Plus/ (less) non-GAAP adjustments:                
    Income tax expense     5,665       6,890       20,550       32,832  
    Provision/ (credit) for credit losses     6,316       2,365       9,724       (14,116 )
    Pre-tax pre-provision net income (non-GAAP)   $ 28,190     $ 30,001     $ 89,662     $ 115,460  
                     
    Efficiency ratio (GAAP):                
    Non-interest expense   $ 72,937     $ 72,471     $ 209,047     $ 207,912  
                     
    Net interest income plus non-interest income   $ 101,127     $ 102,472     $ 298,709     $ 323,372  
                     
    Efficiency ratio (GAAP)     72.12 %     70.72 %     69.98 %     64.29 %
                     
    Efficiency ratio (Non-GAAP):                
    Non-interest expense   $ 72,937     $ 72,471     $ 209,047     $ 207,912  
    Less non-GAAP adjustments:                
    Amortization of intangible assets     2,323       1,245       6,527       3,820  
    Severance expense     —       —       —       1,939  
    Pension settlement expense     —       8,157       —       8,157  
    Contingent payment expense     —       —       —       36  
    Non-interest expense – as adjusted   $ 70,614     $ 63,069     $ 202,520     $ 193,960  
                     
    Net interest income plus non-interest income   $ 101,127     $ 102,472     $ 298,709     $ 323,372  
    Plus non-GAAP adjustment:                
    Tax-equivalent income     1,121       1,068       3,359       3,044  
    Less/ (plus) non-GAAP adjustment:                
    Investment securities gains/ (losses)     —       —       —       —  
    Net interest income plus non-interest income – as adjusted   $ 102,248     $ 103,540     $ 302,068     $ 326,416  
                     
    Efficiency ratio (Non-GAAP)     69.06 %     60.91 %     67.04 %     59.42 %
                     
    Tangible common equity ratio:                
    Total stockholders’ equity   $ 1,628,837     $ 1,537,914     $ 1,628,837     $ 1,537,914  
    Goodwill     (363,436 )     (363,436 )     (363,436 )     (363,436 )
    Other intangible assets, net     (30,514 )     (16,035 )     (30,514 )     (16,035 )
    Tangible common equity   $ 1,234,887     $ 1,158,443     $ 1,234,887     $ 1,158,443  
                     
    Total assets   $ 14,383,073     $ 14,135,085     $ 14,383,073     $ 14,135,085  
    Goodwill     (363,436 )     (363,436 )     (363,436 )     (363,436 )
    Other intangible assets, net     (30,514 )     (16,035 )     (30,514 )     (16,035 )
    Tangible assets   $ 13,989,123     $ 13,755,614     $ 13,989,123     $ 13,755,614  
                     
    Tangible common equity ratio     8.83 %     8.42 %     8.83 %     8.42 %
                     
    Outstanding common shares     45,125,078       44,895,158       45,125,078       44,895,158  
    Tangible book value per common share   $ 27.37     $ 25.80     $ 27.37     $ 25.80  

    Sandy Spring Bancorp, Inc. and Subsidiaries
    CONDENSED CONSOLIDATED STATEMENTS OF CONDITION – UNAUDITED

    (Dollars in thousands)   September 30,
    2024    		   December 31,
    2023
    Assets        
    Cash and due from banks   $ 109,583     $ 82,257  
    Federal funds sold     —       245  
    Interest-bearing deposits with banks     640,763       463,396  
    Cash and cash equivalents     750,346       545,898  
    Residential mortgage loans held for sale (at fair value)     21,489       10,836  
    SBA loans held for sale     425       —  
    Investments held-to-maturity (fair values of $189,853 and $200,411 at September 30, 2024 and December 31, 2023, respectively)     220,296       236,165  
    Investments available-for-sale (at fair value)     1,149,056       1,102,681  
    Other investments, at cost     71,136       75,607  
    Total loans     11,491,921       11,366,989  
    Less: allowance for credit losses – loans     (131,428 )     (120,865 )
    Net loans     11,360,493       11,246,124  
    Premises and equipment, net     57,249       59,490  
    Other real estate owned     3,265       —  
    Accrued interest receivable     45,162       46,583  
    Goodwill     363,436       363,436  
    Other intangible assets, net     30,514       28,301  
    Other assets     310,206       313,051  
    Total assets   $ 14,383,073     $ 14,028,172  
             
    Liabilities        
    Noninterest-bearing deposits   $ 2,903,063     $ 2,914,161  
    Interest-bearing deposits     8,834,631       8,082,377  
    Total deposits     11,737,694       10,996,538  
    Securities sold under retail repurchase agreements     70,767       75,032  
    Federal Reserve Bank borrowings     —       300,000  
    Advances from FHLB     450,000       550,000  
    Subordinated debt     371,251       370,803  
    Total borrowings     892,018       1,295,835  
    Accrued interest payable and other liabilities     124,524       147,657  
    Total liabilities     12,754,236       12,440,030  
             
    Stockholders’ equity        
    Common stock — par value $1.00; shares authorized 100,000,000; shares issued and outstanding 45,125,078 and 44,913,561 at September 30, 2024 and December 31, 2023, respectively.     45,125       44,914  
    Additional paid in capital     748,202       742,243  
    Retained earnings     911,411       898,316  
    Accumulated other comprehensive loss     (75,901 )     (97,331 )
    Total stockholders’ equity     1,628,837       1,588,142  
    Total liabilities and stockholders’ equity   $ 14,383,073     $ 14,028,172  

    Sandy Spring Bancorp, Inc. and Subsidiaries
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED

        Three Months Ended
    September 30,    		   Nine Months Ended
    September 30,
    (Dollars in thousands, except per share data)     2024     2023     2024     2023  
    Interest income:                
    Interest and fees on loans   $ 154,339   $ 147,304   $ 456,309   $ 431,305  
    Interest on mortgage loans held for sale     364     238     801     697  
    Interest on SBA loans held for sale     2     —     2     —  
    Interest on deposits with banks     6,191     6,371     17,401     13,979  
    Interest and dividend income on investment securities:                
    Taxable     7,440     6,682     21,319     20,538  
    Tax-advantaged     1,762     1,811     5,385     5,376  
    Interest on federal funds sold     —     5     8     13  
    Total interest income     170,098     162,411     501,225     471,908  
    Interest expense:                
    Interest on deposits     79,287     63,102     227,062     155,215  
    Interest on retail repurchase agreements and federal funds purchased     452     4,082     4,890     10,377  
    Interest on advances from FHLB     5,001     6,200     16,394     21,623  
    Interest on subordinated debt     3,946     3,946     11,839     11,839  
    Total interest expense     88,686     77,330     260,185     199,054  
    Net interest income     81,412     85,081     241,040     272,854  
    Provision/ (credit) for credit losses     6,316     2,365     9,724     (14,116 )
    Net interest income after provision/ (credit) for credit losses     75,096     82,716     231,316     286,970  
    Non-interest income:                
    Service charges on deposit accounts     3,009     2,704     8,765     7,698  
    Mortgage banking activities     1,529     1,682     4,524     4,744  
    Wealth management income     10,738     9,391     31,151     27,414  
    Income from bank owned life insurance     1,307     845     4,283     3,003  
    Bank card fees     435     450     1,293     1,315  
    Other income     2,697     2,319     7,653     6,344  
    Total non-interest income     19,715     17,391     57,669     50,518  
    Non-interest expense:                
    Salaries and employee benefits     41,030     44,853     115,549     124,710  
    Occupancy expense of premises     4,657     4,609     14,278     14,220  
    Equipment expenses     3,841     3,811     11,672     11,688  
    Marketing     1,320     729     3,350     3,861  
    Outside data services     3,025     2,819     9,414     8,186  
    FDIC insurance     2,773     2,333     8,635     6,846  
    Amortization of intangible assets     2,323     1,245     6,527     3,820  
    Professional fees and services     6,577     4,509     16,403     12,354  
    Other expenses     7,391     7,563     23,219     22,227  
    Total non-interest expense     72,937     72,471     209,047     207,912  
    Income before income tax expense     21,874     27,636     79,938     129,576  
    Income tax expense     5,665     6,890     20,550     32,832  
    Net income   $ 16,209   $ 20,746   $ 59,388   $ 96,744  
                     
    Net income per share amounts:                
    Basic net income per common share   $ 0.36   $ 0.46   $ 1.32   $ 2.16  
    Diluted net income per common share   $ 0.36   $ 0.46   $ 1.31   $ 2.15  
    Dividends declared per share   $ 0.34   $ 0.34   $ 1.02   $ 1.02  

    Sandy Spring Bancorp, Inc. and Subsidiaries
    HISTORICAL TRENDS – QUARTERLY FINANCIAL DATA – UNAUDITED

          2024       2023  
    (Dollars in thousands, except per share data)   Q3   Q2   Q1   Q4   Q3   Q2   Q1
    Profitability for the quarter:                            
    Tax-equivalent interest income   $ 171,219     $ 166,252     $ 167,113     $ 166,729     $ 163,479     $ 159,156     $ 152,317  
    Interest expense     88,686       84,828       86,671       83,920       77,330       67,679       54,045  
    Tax-equivalent net interest income     82,533       81,424       80,442       82,809       86,149       91,477       98,272  
    Tax-equivalent adjustment     1,121       1,139       1,099       1,113       1,068       1,006       970  
    Provision/ (credit) for credit losses     6,316       1,020       2,388       (3,445 )     2,365       5,055       (21,536 )
    Non-interest income     19,715       19,587       18,367       16,560       17,391       17,176       15,951  
    Non-interest expense     72,937       68,104       68,006       67,142       72,471       69,136       66,305  
    Income before income tax expense     21,874       30,748       27,316       34,559       27,636       33,456       68,484  
    Income tax expense     5,665       7,941       6,944       8,459       6,890       8,711       17,231  
    Net income   $ 16,209     $ 22,807     $ 20,372     $ 26,100     $ 20,746     $ 24,745     $ 51,253  
    GAAP financial performance:                            
    Return on average assets     0.46 %     0.66 %     0.58 %     0.73 %     0.58 %     0.70 %     1.49 %
    Return on average common equity     4.01 %     5.81 %     5.17 %     6.70 %     5.35 %     6.46 %     13.93 %
    Return on average tangible common equity     5.88 %     8.27 %     7.39 %     9.26 %     7.42 %     8.93 %     19.10 %
    Net interest margin     2.44 %     2.46 %     2.41 %     2.45 %     2.55 %     2.73 %     2.99 %
    Efficiency ratio – GAAP basis     72.12 %     68.19 %     69.60 %     68.33 %     70.72 %     64.22 %     58.55 %
    Non-GAAP financial performance:                            
    Pre-tax pre-provision net income   $ 28,190     $ 31,768     $ 29,704     $ 31,114     $ 30,001     $ 38,511     $ 46,948  
    Core after-tax earnings   $ 17,936     $ 24,400     $ 21,916     $ 27,147     $ 27,766     $ 27,136     $ 52,253  
    Core return on average assets     0.50 %     0.70 %     0.63 %     0.76 %     0.78 %     0.77 %     1.52 %
    Core return on average common equity     4.44 %     6.21 %     5.56 %     6.97 %     7.16 %     7.09 %     14.20 %
    Core return on average tangible common equity     5.88 %     8.27 %     7.39 %     9.26 %     9.51 %     9.43 %     19.11 %
    Core earnings per diluted common share   $ 0.40     $ 0.54     $ 0.49     $ 0.60     $ 0.62     $ 0.60     $ 1.16  
    Efficiency ratio – Non-GAAP basis     69.06 %     65.31 %     66.73 %     66.16 %     60.91 %     60.68 %     56.87 %
    Per share data:                      
    Net income attributable to common shareholders   $ 16,205     $ 22,800     $ 20,346     $ 26,066     $ 20,719     $ 24,712     $ 51,084  
    Basic net income per common share   $ 0.36     $ 0.51     $ 0.45     $ 0.58     $ 0.46     $ 0.55     $ 1.14  
    Diluted net income per common share   $ 0.36     $ 0.51     $ 0.45     $ 0.58     $ 0.46     $ 0.55     $ 1.14  
    Weighted average diluted common shares     45,242,920       45,145,214       45,086,471       45,009,574       44,960,455       44,888,759       44,872,582  
    Dividends declared per share   $ 0.34     $ 0.34     $ 0.34     $ 0.34     $ 0.34     $ 0.34     $ 0.34  
    Non-interest income:                            
    Service charges on deposit accounts     3,009       2,939       2,817       2,749       2,704       2,606       2,388  
    Mortgage banking activities     1,529       1,621       1,374       792       1,682       1,817       1,245  
    Wealth management income     10,738       10,455       9,958       9,219       9,391       9,031       8,992  
    Income from bank owned life insurance     1,307       1,816       1,160       1,207       845       1,251       907  
    Bank card fees     435       445       413       454       450       447       418  
    Other income     2,697       2,311       2,645       2,139       2,319       2,024       2,001  
    Total non-interest income   $ 19,715     $ 19,587     $ 18,367     $ 16,560     $ 17,391     $ 17,176     $ 15,951  
    Non-interest expense:                            
    Salaries and employee benefits   $ 41,030     $ 37,821     $ 36,698     $ 35,482     $ 44,853     $ 40,931     $ 38,926  
    Occupancy expense of premises     4,657       4,805       4,816       4,558       4,609       4,764       4,847  
    Equipment expenses     3,841       3,868       3,963       3,987       3,811       3,760       4,117  
    Marketing     1,320       1,288       742       1,242       729       1,589       1,543  
    Outside data services     3,025       3,286       3,103       3,000       2,819       2,853       2,514  
    FDIC insurance     2,773       2,951       2,911       2,615       2,333       2,375       2,138  
    Amortization of intangible assets     2,323       2,135       2,069       1,403       1,245       1,269       1,306  
    Professional fees and services     6,577       4,946       4,880       5,628       4,509       4,161       3,684  
    Other expenses     7,391       7,004       8,824       9,227       7,563       7,434       7,230  
    Total non-interest expense   $ 72,937     $ 68,104     $ 68,006     $ 67,142     $ 72,471     $ 69,136     $ 66,305  

    Sandy Spring Bancorp, Inc. and Subsidiaries
    HISTORICAL TRENDS – QUARTERLY FINANCIAL DATA – UNAUDITED

          2024       2023  
    (Dollars in thousands, except per share data)   Q3   Q2   Q1   Q4   Q3   Q2   Q1
    Balance sheets at quarter end:                        
    Commercial investor real estate loans   $ 4,868,467     $ 4,933,329     $ 4,997,879     $ 5,104,425     $ 5,137,694     $ 5,131,210     $ 5,167,456  
    Commercial owner-occupied real estate loans     1,737,327       1,747,708       1,741,113       1,755,235       1,760,384       1,770,135       1,769,928  
    Commercial AD&C loans     1,255,609       1,184,296       1,090,259       988,967       938,673       1,045,742       1,046,665  
    Commercial business loans     1,620,926       1,601,510       1,509,592       1,504,880       1,454,709       1,423,614       1,437,478  
    Residential mortgage loans     1,529,786       1,521,890       1,511,624       1,474,521       1,432,051       1,385,743       1,328,524  
    Residential construction loans     53,639       78,027       97,685       121,419       160,345       190,690       223,456  
    Consumer loans     426,167       417,161       416,132       417,542       416,436       422,505       421,734  
    Total loans     11,491,921       11,483,921       11,364,284       11,366,989       11,300,292       11,369,639       11,395,241  
    Allowance for credit losses – loans     (131,428 )     (125,863 )     (123,096 )     (120,865 )     (123,360 )     (120,287 )     (117,613 )
    Residential mortgage loans held for sale     21,489       18,961       16,627       10,836       19,235       21,476       16,262  
    SBA loans held for sale     425       —       —       —       —       —       —  
    Investment securities     1,440,488       1,401,511       1,405,490       1,414,453       1,392,078       1,463,554       1,528,336  
    Total assets     14,383,073       14,008,343       13,888,133       14,028,172       14,135,085       13,994,545       14,129,007  
    Noninterest-bearing demand deposits     2,903,063       2,931,405       2,817,928       2,914,161       3,013,905       3,079,896       3,228,678  
    Total deposits     11,737,694       11,340,228       11,227,200       10,996,538       11,151,012       10,958,922       11,075,991  
    Customer repurchase agreements     70,767       75,038       71,529       75,032       66,581       74,510       47,627  
    Total stockholders’ equity     1,628,837       1,599,004       1,589,364       1,588,142       1,537,914       1,539,032       1,536,865  
    Quarterly average balance sheets:                        
    Commercial investor real estate loans   $ 4,874,003     $ 4,964,406     $ 5,057,334     $ 5,125,028     $ 5,125,459     $ 5,146,632     $ 5,136,204  
    Commercial owner-occupied real estate loans     1,741,663       1,734,106       1,746,042       1,755,048       1,769,717       1,773,039       1,769,680  
    Commercial AD&C loans     1,253,035       1,133,506       1,030,763       960,646       995,682       1,057,205       1,082,791  
    Commercial business loans     1,579,001       1,551,798       1,508,336       1,433,035       1,442,518       1,441,489       1,444,588  
    Residential mortgage loans     1,526,445       1,518,748       1,491,277       1,451,614       1,406,929       1,353,809       1,307,761  
    Residential construction loans     64,684       86,638       110,456       142,325       174,204       211,590       223,313  
    Consumer loans     421,003       417,206       417,539       419,299       421,189       423,306       424,122  
    Total loans     11,459,834       11,406,408       11,361,747       11,286,995       11,335,698       11,407,070       11,388,459  
    Residential mortgage loans held for sale     19,889       14,497       8,142       10,132       13,714       17,480       8,324  
    SBA loans held for sale     65       —       —       —       —       —       —  
    Investment securities     1,531,378       1,538,624       1,536,127       1,544,173       1,589,342       1,639,324       1,679,593  
    Interest-earning assets     13,474,697       13,292,995       13,411,810       13,462,583       13,444,117       13,423,589       13,316,165  
    Total assets     14,136,037       13,956,261       14,061,935       14,090,423       14,086,342       14,094,653       13,949,276  
    Noninterest-bearing demand deposits     2,783,906       2,790,620       2,730,295       2,958,254       3,041,101       3,137,971       3,480,433  
    Total deposits     11,483,524       11,245,476       11,086,145       11,089,587       11,076,724       10,928,038       11,049,991  
    Customer repurchase agreements     63,436       62,161       72,836       66,622       67,298       58,382       60,626  
    Total interest-bearing liabilities     9,600,905       9,441,015       9,583,074       9,418,666       9,332,617       9,257,652       8,806,720  
    Total stockholders’ equity     1,607,377       1,579,582       1,584,902       1,546,312       1,538,553       1,535,465       1,491,929  
    Financial measures:                            
    Average equity to average assets     11.37 %     11.32 %     11.27 %     10.97 %     10.92 %     10.89 %     10.70 %
    Average investment securities to average earning assets     11.36 %     11.57 %     11.45 %     11.47 %     11.82 %     12.21 %     12.61 %
    Average loans to average earning assets     85.05 %     85.81 %     84.71 %     83.84 %     84.32 %     84.98 %     85.52 %
    Loans to assets     79.90 %     81.98 %     81.83 %     81.03 %     79.94 %     81.24 %     80.65 %
    Loans to deposits     97.91 %     101.27 %     101.22 %     103.37 %     101.34 %     103.75 %     102.88 %
    Assets under management   $ 6,567,752     $ 6,215,697     $ 6,165,509     $ 5,999,520     $ 5,536,499     $ 5,742,888     $ 5,477,560  
    Capital measures:                            
    Tier 1 leverage (1)     9.59 %     9.70 %     9.56 %     9.51 %     9.50 %     9.42 %     9.44 %
    Common equity tier 1 capital to risk-weighted assets (1)     11.27 %     11.28 %     10.96 %     10.90 %     10.83 %     10.65 %     10.53 %
    Tier 1 capital to risk-weighted assets (1)     11.27 %     11.28 %     10.96 %     10.90 %     10.83 %     10.65 %     10.53 %
    Total regulatory capital to risk-weighted assets (1)     15.53 %     15.49 %     15.05 %     14.92 %     14.85 %     14.60 %     14.43 %
    Book value per common share   $ 36.10     $ 35.45     $ 35.37     $ 35.36     $ 34.26     $ 34.31     $ 34.37  
    Outstanding common shares     45,125,078       45,109,671       44,940,147       44,913,561       44,895,158       44,862,369       44,712,497  

    (1) Estimated ratio at September 30, 2024.

    Sandy Spring Bancorp, Inc. and Subsidiaries
    LOAN PORTFOLIO QUALITY DETAIL – UNAUDITED

          2024     2023
    (Dollars in thousands)   September 30,   June 30,   March 31,   December 31,   September 30,   June 30,   March 31,
    Non-performing assets:                            
    Loans 90 days past due:                            
    Commercial real estate:                            
    Commercial investor real estate   $ —   $ —   $ —   $ —   $ —   $ —   $ 215
    Commercial owner-occupied real estate     —     —     —     —     —     —     —
    Commercial AD&C     —     —     —     —     —     —     —
    Commercial business     —     —     20     20     415     29     3,002
    Residential real estate:                            
    Residential mortgage     399     338     340     342     —     692     352
    Residential construction     —     —     —     —     —     —     —
    Consumer     —     —     —     —     —     —     —
    Total loans 90 days past due     399     338     360     362     415     721     3,569
    Non-accrual loans:                            
    Commercial real estate:                            
    Commercial investor real estate     57,578     55,498     55,579     58,658     20,108     20,381     15,451
    Commercial owner-occupied real estate     9,639     9,403     4,394     4,640     4,744     4,846     4,949
    Commercial AD&C     31,816     2,127     556     1,259     1,422     569     —
    Commercial business     9,044     8,455     7,164     10,051     9,671     9,393     9,443
    Residential real estate:                            
    Residential mortgage     11,996     12,228     11,835     12,332     10,766     10,153     8,935
    Residential construction     539     539     542     443     449     —     —
    Consumer     4,258     4,400     4,011     4,102     4,187     3,396     4,900
    Total non-accrual loans     124,870     92,650     84,081     91,485     51,347     48,738     43,678
    Total non-performing loans     125,269     92,988     84,441     91,847     51,762     49,459     47,247
    Other real estate owned (OREO)     3,265     2,700     2,700     —     261     611     645
    Total non-performing assets   $ 128,534   $ 95,688   $ 87,141   $ 91,847   $ 52,023   $ 50,070   $ 47,892
        For the Quarter Ended,
    (Dollars in thousands)   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023    		   June 30,
    2023    		   March 31,
    2023
    Analysis of non-accrual loan activity:                            
    Balance at beginning of period   $ 92,650     $ 84,081     $ 91,485     $ 51,347     $ 48,738     $ 43,678     $ 34,782  
    Non-accrual balances transferred to OREO     (565 )     —       (2,700 )     —       —       —       —  
    Non-accrual balances charged-off     (787 )     —       (1,550 )     —       (183 )     (2,049 )     (126 )
    Net payments or draws     (3,095 )     (1,427 )     (4,017 )     (7,619 )     (1,545 )     (1,654 )     (10,212 )
    Loans placed on non-accrual     36,667       10,038       1,490       47,920       4,967       9,276       19,714  
    Non-accrual loans brought current     —       (42 )     (627 )     (163 )     (630 )     (513 )     (480 )
    Balance at end of period   $ 124,870     $ 92,650     $ 84,081     $ 91,485     $ 51,347     $ 48,738     $ 43,678  
                                 
    Analysis of allowance for credit losses – loans:                            
    Balance at beginning of period   $ 125,863     $ 123,096     $ 120,865     $ 123,360     $ 120,287     $ 117,613     $ 136,242  
    Provision/ (credit) for credit losses – loans     6,310       2,961       3,331       (2,574 )     3,171       4,454       (18,945 )
    Less loans charged-off, net of recoveries:                            
    Commercial real estate:                            
    Commercial investor real estate     397       (3 )     (2 )     (3 )     (3 )     (14 )     (5 )
    Commercial owner-occupied real estate     (27 )     (27 )     (27 )     (27 )     (25 )     (27 )     (26 )
    Commercial AD&C     111       (23 )     (283 )     —       —       —       —  
    Commercial business     250       (28 )     1,550       (105 )     15       363       (127 )
    Residential real estate:                            
    Residential mortgage     (35 )     39       (6 )     (6 )     (4 )     35       21  
    Residential construction     —       —       —       —       —       —       —  
    Consumer     49       236       (132 )     62       115       1,423       (179 )
    Net charge-offs/ (recoveries)     745       194       1,100       (79 )     98       1,780       (316 )
    Balance at the end of period   $ 131,428     $ 125,863     $ 123,096     $ 120,865     $ 123,360     $ 120,287     $ 117,613  
                                 
    Asset quality ratios:                            
    Non-performing loans to total loans     1.09 %     0.81 %     0.74 %     0.81 %     0.46 %     0.44 %     0.41 %
    Non-performing assets to total assets     0.89 %     0.68 %     0.63 %     0.65 %     0.37 %     0.36 %     0.34 %
    Allowance for credit losses to loans     1.14 %     1.10 %     1.08 %     1.06 %     1.09 %     1.06 %     1.03 %
    Allowance for credit losses to non-performing loans     104.92 %     135.35 %     145.78 %     131.59 %     238.32 %     243.21 %     248.93 %
    Annualized net charge-offs/ (recoveries) to average loans     0.03 %     0.01 %     0.04 %     — %     — %     0.06 %   (0.01 )%

    Sandy Spring Bancorp, Inc. and Subsidiaries
    CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES – UNAUDITED

        Three Months Ended September 30,
          2024       2023  
    (Dollars in thousands and tax-equivalent)   Average
    Balances    		   Interest (1)   Annualized
    Average
    Yield/Rate    		   Average
    Balances    		   Interest (1)   Annualized
    Average
    Yield/Rate
    Assets                        
    Commercial investor real estate loans   $ 4,874,003     $ 58,133   4.74 %   $ 5,125,459     $ 60,482   4.68 %
    Commercial owner-occupied real estate loans     1,741,663       21,609   4.94       1,769,717       20,865   4.68  
    Commercial AD&C loans     1,253,035       24,553   7.80       995,682       20,503   8.17  
    Commercial business loans     1,579,001       26,953   6.79       1,442,518       23,343   6.42  
    Total commercial loans     9,447,702       131,248   5.53       9,333,376       125,193   5.32  
    Residential mortgage loans     1,526,445       14,223   3.73       1,406,929       12,550   3.57  
    Residential construction loans     64,684       876   5.39       174,204       1,680   3.83  
    Consumer loans     421,003       8,653   8.18       421,189       8,491   8.00  
    Total residential and consumer loans     2,012,132       23,752   4.71       2,002,322       22,721   4.52  
    Total loans (2)     11,459,834       155,000   5.38       11,335,698       147,914   5.18  
    Residential mortgage loans held for sale     19,889       364   7.32       13,714       238   6.93  
    SBA loans held for sale     65       2   11.28       —       —   —  
    Taxable securities     1,197,301       7,440   2.49       1,239,564       6,682   2.16  
    Tax-advantaged securities     334,077       2,222   2.66       349,778       2,269   2.59  
    Total investment securities (3)     1,531,378       9,662   2.52       1,589,342       8,951   2.25  
    Interest-bearing deposits with banks     463,531       6,191   5.31       505,017       6,371   5.00  
    Federal funds sold     —       —   —       346       5   5.38  
    Total interest-earning assets     13,474,697       171,219   5.06       13,444,117       163,479   4.83  
                             
    Less: allowance for credit losses – loans     (125,962 )             (122,348 )        
    Cash and due from banks     82,172               93,354          
    Premises and equipment, net     58,035               71,956          
    Other assets     647,095               599,263          
    Total assets   $ 14,136,037             $ 14,086,342          
                             
    Liabilities and Stockholders’ Equity                        
    Interest-bearing demand deposits   $ 1,427,739     $ 6,256   1.74 %   $ 1,419,934     $ 4,229   1.18 %
    Regular savings deposits     1,718,475       15,341   3.55       861,634       5,571   2.57  
    Money market savings deposits     3,018,799       28,999   3.82       2,866,744       25,122   3.48  
    Time deposits     2,534,605       28,691   4.50       2,887,311       28,180   3.87  
    Total interest-bearing deposits     8,699,618       79,287   3.63       8,035,623       63,102   3.12  
    Repurchase agreements     63,436       334   2.09       67,298       356   2.10  
    Federal funds purchased and Federal Reserve Bank borrowings     8,543       118   5.53       300,435       3,726   4.92  
    Advances from FHLB     458,152       5,001   4.34       558,696       6,200   4.40  
    Subordinated debt     371,156       3,946   4.25       370,565       3,946   4.26  
    Total borrowings     901,287       9,399   4.15       1,296,994       14,228   4.35  
    Total interest-bearing liabilities     9,600,905       88,686   3.68       9,332,617       77,330   3.29  
                             
    Noninterest-bearing demand deposits     2,783,906               3,041,101          
    Other liabilities     143,849               174,071          
    Stockholders’ equity     1,607,377               1,538,553          
    Total liabilities and stockholders’ equity   $ 14,136,037             $ 14,086,342          
                             
    Tax-equivalent net interest income and spread       $ 82,533   1.38 %       $ 86,149   1.54 %
    Less: tax-equivalent adjustment         1,121             1,068    
    Net interest income       $ 81,412           $ 85,081    
                             
    Interest income/earning assets           5.06 %           4.83 %
    Interest expense/earning assets           2.62             2.28  
    Net interest margin           2.44 %           2.55 %
    (1) Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.48% and 25.37% for 2024 and 2023, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $1.1 million and $1.1 million in 2024 and 2023, respectively.
    (2) Non-accrual loans are included in the average balances.
    (3) Available-for-sale investments are presented at amortized cost.

    Sandy Spring Bancorp, Inc. and Subsidiaries
    CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES – UNAUDITED

        Nine Months Ended September 30,
          2024       2023  
    (Dollars in thousands and tax-equivalent)   Average
    Balances    		   Interest (1)   Annualized
    Average
    Yield/Rate    		   Average
    Balances    		   Interest (1)   Annualized
    Average
    Yield/Rate
    Assets                        
    Commercial investor real estate loans   $ 4,964,914     $ 176,504   4.75 %   $ 5,136,059     $ 177,067   4.61 %
    Commercial owner-occupied real estate loans     1,740,608       63,090   4.84       1,770,812       61,038   4.61  
    Commercial AD&C loans     1,139,517       68,779   8.06       1,044,907       61,005   7.81  
    Commercial business loans     1,546,498       79,026   6.83       1,442,858       68,258   6.33  
    Total commercial loans     9,391,537       387,399   5.51       9,394,636       367,368   5.23  
    Residential mortgage loans     1,512,209       41,968   3.70       1,356,530       35,925   3.53  
    Residential construction loans     87,177       3,208   4.92       202,856       5,302   3.49  
    Consumer loans     418,591       25,693   8.20       422,861       24,403   7.72  
    Total residential and consumer loans     2,017,977       70,869   4.69       1,982,247       65,630   4.42  
    Total loans (2)     11,409,514       458,268   5.36       11,376,883       432,998   5.09  
    Residential mortgage loans held for sale     14,197       801   7.52       13,192       697   7.04  
    SBA loans held for sale     22       2   11.28       —       —   —  
    Taxable securities     1,195,481       21,319   2.38       1,275,407       20,538   2.15  
    Tax-advantaged securities     339,881       6,785   2.66       360,348       6,727   2.49  
    Total investment securities (3)     1,535,362       28,104   2.44       1,635,755       27,265   2.22  
    Interest-bearing deposits with banks     434,083       17,401   5.35       368,829       13,979   5.07  
    Federal funds sold     288       8   3.79       433       13   4.00  
    Total interest-earning assets     13,393,466       504,584   5.03       13,395,092       474,952   4.74  
                             
    Less: allowance for credit losses – loans     (122,971 )             (125,558 )        
    Cash and due from banks     83,265               94,960          
    Premises and equipment, net     59,124               70,130          
    Other assets     638,838               609,301          
    Total assets   $ 14,051,722             $ 14,043,925          
                             
    Liabilities and Stockholders’ Equity                        
    Interest-bearing demand deposits   $ 1,467,517     $ 18,858   1.72 %   $ 1,413,876     $ 10,465   0.99 %
    Regular savings deposits     1,602,997       42,597   3.55       660,211       7,831   1.59  
    Money market savings deposits     2,847,006       79,190   3.72       3,067,810       68,976   3.01  
    Time deposits     2,586,639       86,417   4.46       2,658,225       67,943   3.42  
    Total interest-bearing deposits     8,504,159       227,062   3.57       7,800,122       155,215   2.66  
    Repurchase agreements     66,134       1,043   2.11       62,126       561   1.21  
    Federal funds purchased and Federal Reserve Bank borrowings     99,303       3,847   5.17       264,580       9,816   4.96  
    Advances from FHLB     501,277       16,394   4.37       637,015       21,623   4.54  
    Subordinated debt     371,009       11,839   4.25       370,412       11,839   4.26  
    Total borrowings     1,037,723       33,123   4.26       1,334,133       43,839   4.39  
    Total interest-bearing liabilities     9,541,882       260,185   3.64       9,134,255       199,054   2.91  
                             
    Noninterest-bearing demand deposits     2,768,331               3,218,226          
    Other liabilities     150,827               169,291          
    Stockholders’ equity     1,590,682               1,522,153          
    Total liabilities and stockholders’ equity   $ 14,051,722             $ 14,043,925          
                             
    Tax-equivalent net interest income and spread       $ 244,399   1.39 %       $ 275,898   1.83 %
    Less: tax-equivalent adjustment         3,359             3,044    
    Net interest income       $ 241,040           $ 272,854    
                             
    Interest income/earning assets           5.03 %           4.74 %
    Interest expense/earning assets           2.59             1.99  
    Net interest margin           2.44 %           2.75 %
    (1) Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.48% and 25.37% for 2024 and 2023, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $3.4 million and $3.0 million in 2024 and 2023, respectively.
    (2) Non-accrual loans are included in the average balances.
    (3) Available-for-sale investments are presented at amortized cost.

    The MIL Network –

  • MIL-OSI Asia-Pac: Prime Minister Shri Narendra Modi addresses NDTV World Summit 2024 in New Delhi

    Source: Government of India (2)

    Prime Minister Shri Narendra Modi addresses NDTV World Summit 2024 in New Delhi

    When the world is immersed in worry, India is spreading hope: PM

    Today India is working in every sector, in every area with unprecedented speed : PM

    India today is both a developing country and an emerging power: PM

    India is one of the youngest countries in the world with the potential of achieving great heights: PM

     India is now moving ahead with a forward looking thinking: PM

    140 crore people of India have joined the resolution of Viksit Bharat , they themselves are driving it: PM

    India has the advantage of double AI power, First AI, Artificial Intelligence, Second AI, Aspirational India: PM

    India does not believe in taken for granted relationships, the foundation of our relations is trust and reliability: PM

    India has shown the world a new path to digital public infrastructure by democratizing technology: PM

    India has shown that digital innovation and democratic values ​​can coexist: PM

    Posted On: 21 OCT 2024 12:18PM by PIB Delhi

    The Prime Minister Shri Narendra Modi addressed the NDTV World Summit 2024 in New Delhi today. Addressing the gathering, the Prime Minister welcomed all dignitaries and said that discussions on a multitude of issues would take place at the Summit. He also acknowledged the presence of global leaders from different sectors who would put forth their views.

    Reflecting on the past 4-5 years, the Prime Minister pointed out that discussions on the concerns of the future have been a common theme. He mentioned that the recent challenges of Covid pandemic, post covid economic stress, inflation & unemployment, climate change, ongoing wars, disruption of supply chains, death of innocents, geopolitical tensions and conflicts had become a point of discussions in all global summits. Drawing parallels with the discussions taking place in India at the time, the Prime Minister underlined that India is deliberating its century. “India has become a ray of hope in this era of global turmoil. When the world is worried, India is spreading hope”, the Prime Minister remarked. He underlined that even though India is affected by the global situation and the challenges before it, there is a sense of positivity that can be experienced.

    “Today, India is working in every sector and area with unprecedented speed”, the Prime Minister said. Noting the completion of 125 days of the third term of the government, Shri Modi threw light on the work done in the country. He mentioned the government’s approval for 3 crore new pucca houses for the poor, initiation of infrastructure projects worth Rs 9 lakh crore, flagging off of 15 new Vande Bharat Trains, foundation stone laying of 8 new airports, a 2 lakh crore package for the youth, Rs 21,000 crore transferred into the bank accounts of farmers, free treatment scheme for citizens above 70 years of age, installation of rooftop solar plants in about 5 lakh homes, plantation of 90 crore saplings under Ek Ped Maa ke Naam campaign, approval for 12 new industrial nodes, SENSEX and NIFTY growing about 5-7 percent, and India’s forex rising to USD 700 billion dollars among others. The Prime Minister also touched upon the global events taking place in India in the past 125 days and mentioned International SMU, Global Fintech Festival, discussion on Global Semiconductor Ecosystem, International Conference for Renewable Energy and Civil Aviation. “This is not merely a list of events but a list of hope associated with India that shows the country’s direction and the world’s hopes”, the Prime Minister said, underlining that these are issues which will shape the future of the world and these are being discussed in India.

    The Prime Minister stated that in the third term, India’s growth has accelerated to such an extent that many rating agencies have raised their growth forecasts. He also pointed out the enthusiasm of experts like Mark Mobius, who advised global funds to invest at least 50% of their funds in India’s share market. “When such seasoned experts advocate for major investments in India, it sends a strong message about our potential”, he added.

    “India of today is both a developing nation and an emerging  power”, the Prime Minister emphasized, stressing that India understands the challenges of poverty and knows how to pave the path of progress. He highlighted the government’s fast-paced policy-making and decision-making processes and new reforms. Addressing the issue of complacency, the Prime Minister said that this mindset does not drive a nation forward. He underlined that 25 crore people have come out of poverty over the past 10 years and 12 crore toilets have been built and 16 crore gas connections have been provided, but it is not enough.

    The Prime Minister further informed that in the last 10 years, India has built over 350 medical colleges and more than 15 AIIMS, established over 1.5 lakh startups and handed out Mudra loans to 8 crore young people. “This is not enough”, the Prime Minister stressed, emphasizing the need for continuous progress of India’s youth. He underlined that India’s potential as one of the world’s youngest nations can take us to great heights, and we have much more to achieve quickly and efficiently.

    Highlighting the nation’s shift in mindset, the Prime Minister noted that Governments often compare their achievements with previous administrations, considering surpassing them as success looking back 10-15 years. He emphasized that India is changing this approach and success is no longer measured by achievements but by course of the future’s direction. The Prime Minister further remarked on India’s forward-looking vision and said that India is now moving ahead with a future-focused approach. “Our goal of a Viksit Bharat by 2047 is not just a vision of the government but reflects the aspirations of 140 crore Indians. It’s no longer just a campaign for public participation, but a movement of national confidence”, Shri Modi remarked. He mentioned that lakhs of citizens contributed their suggestions when the government began working on the vision document for Viksit Bharat. He informed that debates and discussions were held in schools, colleges, universities and various organizations and the government set the goals for the next 25 years based on these inputs. “Today, discussions on Viksit Bharat are part of our national consciousness and have become a true example of transforming public power into national strength”, he added.

    Talking about AI, the Prime Minister said this is the era of AI and the present and future of the world is linked to AI. He said  India has the advantage of double AI power, the first AI, Artificial Intelligence and the second AI,Aspirational India. Shri Modi said when the power of Aspirational India and Artificial Intelligence combines then it is natural for the pace of development to be faster. Shri Modi underlined that artificial intelligence is not just a technology for India, but a gateway to new opportunities for India’s youth. He mentioned the launch of India AI Mission this year and laid emphasis on increasing the use of AI across sectors like healthcare, education and startups. “India is committed to delivering world-class AI solutions, and through platforms like Quad, we are taking significant initiatives to drive this forward”, he said. Focusing on Aspirational India, the Prime Minister said that the middle class, general citizens, enhancing the quality of life, empowering small businesses, MSMEs, youth, and women is at the heart of the government’s policy making process. The Prime Minister pointed to India’s remarkable progress in connectivity as a prime example of fulfilling national aspirations and said that the government has focused on fast, inclusive physical connectivity which is essential for a developing society, especially in a vast and diverse country like India. Due to this, the Prime Minister said that air travel was given special emphasis. Recalling his vision of affordable air travel, he said those wearing ‘hawai chappal’ should be able to afford air travel and mentioned the UDAN scheme which has completed 8 years in operation. He informed that new airport networks in Tier-2 and Tier-3 cities have made air travel affordable for the masses. Highlighting the success of UDAN scheme, the Prime Minister mentioned that around 3 lakh flights have operated under UDAN, carrying 1.5 crore common citizens so far. He further added that there are over 600 routes under this initiative most connecting smaller towns. He pointed out that the number of airports in India have grown to more than 150 compared to around 70 airports in 2014.

    The Prime Minister emphasized the government’s commitment to empowering India’s youth to become a driving force for global growth and highlighted the government’s focus on education, skill development, research, and employment. He said that the result of the efforts in the last 10 years are now visible and mentioned India’s highest improvement globally in research quality as reflected in the latest Times Higher Education ranking. He noted that the participation of Indian universities in international rankings has grown from 30 to over 100 in the past 8–9 years. The Prime Minister  underlined that India’s presence in the QS World University Rankings has increased by more than 300% in the last ten years while the number of patents and trademarks filed in India is at an all-time high. He said that India is fast becoming a global hub for research and development where over 2,500 companies worldwide now have research centers in India, and the country’s startup ecosystem is undergoing unprecedented growth.

    Highlighting India’s rising global prominence as a trusted friend,  Shri Modi said India is taking the lead in providing direction to global future in several areas. Reflecting on the Covid-19 pandemic, Shri Modi said that India could have earned millions of dollars from its capacity of essential medicines and vaccines. “India would have benefited from that but humanity would have lost. These are not our values. We supplied medicines and life-saving vaccines to hundreds of countries during these challenging times,’ he said, adding,” I am satisfied that India was able to help the world in difficult moments.” Reinforcing India’s commitment towards building strong international relations, the Prime Minister said that the foundation of India’s relationships is trust and reliability ,it does not believe in taking relationships for granted and the world is also understanding this. Referring to India’s harmonious ties with the rest of the world, Shri Modi said, “India is a country whose progress does not invoke envy or jealousy from others. “The world rejoices from our progress because the entire world benefits from it.” Reflecting on India’s rich contribution to the world, Shri Modi said that in the past Bharat has played a positive role in increasing global growth, adding that its ideas, innovations and products left an indelible mark on the world for centuries. The Prime Minister said that Bharat could not take advantage of the industrial revolution due to colonization. “This is the era of Industry 4.0. India is no longer a slave. It has been 75 years since we gained independence, and therefore, now we are ready with our belts tightened,” Shri Modi added. 

    The Prime Minister emphasized that India is working swiftly on the skill sets and infrastructure required for Industry 4.0. He noted that during the past decade, he has participated in various global platforms, including G-20 and G-7 summits significant discussion about India’s Digital Public Infrastructure have taken place. “Today, the whole world is looking at India’s DPI,” he stated, referencing his discussions with Paul Romer, who praised India’s innovations like Aadhaar and DigiLocker. “India did not have the first-mover advantage in the era of the internet”, Shri Modi pointed out, noting that private platforms led the digital space in countries with the advantage. He said that India has provided a new model to the world by democratizing technology and highlighted the JAM trinity—Jan Dhan, Aadhaar, and Mobile which provides a robust system for faster and leakage-free service delivery. He also touched on UPI facilitating over 500 million daily digital transactions and said that the driving force behind this is not corporations but our small shopkeepers and street vendors. He also mentioned the PM Gati Shakti platform created to eliminate silos in infrastructure project construction which is now helping to transform the logistics ecosystem. Similarly, the ONDC platform is proving to be an innovation that democratizes and enhances transparency in online retail. Shri Modi underlined that India has demonstrated that digital innovation and democratic values can coexist and reinforced the notion that technology is a tool for inclusion, transparency, and empowerment, rather than control and division.

    Shri Modi stated that the 21st century is the most significant period in human history, emphasizing the urgent needs of today’s era: Stability, Sustainability, and Solutions. He noted that these elements are essential for a better future for humanity, with India striving to address them. He noted the unwavering support of the Indian public and said that the people have given a government their mandate for a third consecutive term, sending a strong message of stability for the first time in six decades referring to the recent elections in Haryana where the public reinforced this sentiment.

    The Prime Minister highlighted the global crisis of climate change, stating that this is a crisis faced by all of humanity. Despite India’s minimal contribution to the global climate challenge, the country is taking the lead in addressing it, he said. Shri Modi explained that the government has made green transition a key driver of growth adding that sustainability is at the core of India’s development planning. He gave examples of this commitment and mentioned PM Suryagarh Free Electricity Scheme and solar pump schemes for agriculture, EV revolution, Ethanol Blending Program, large wind energy farms, the LED light movement, solar Powered Airports and Biogas Plants. He further added that every program reflects the strong commitment to a green future and green jobs.

    The Prime Minister highlighted that alongside Stability and Sustainability, India is also focusing on providing Solutions to address global challenges. He said that over the past decade, India has worked on numerous initiatives essential for tackling these challenges, including the International Solar Alliance, the Coalition for Disaster Resilient Infrastructure, the India-Middle East Economic Corridor, the Global Biofuel Alliance, as well as efforts in Yoga, Ayurveda, Mission Life, and Mission Millets. “All these initiatives represent India’s commitment to finding solutions to the world’s pressing issues” he stated.

    Expressing pride in India’s growth, the Prime Minister remarked, “As India progresses, the world will benefit even more.” He envisions a future where India’s century becomes a victory for all of humanity. He said that India’s century thrives on everyone’s talent and is enriched by innovations. Shri Modi stressed the significance of India’s efforts in promoting global stability and peace. “This is a century in which India’s initiatives contribute to a more stable world and enhance global peace”, Shri Modi concluded.

    *****

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  • MIL-OSI Asia-Pac: English rendering of PM’s address at the inauguration of RJ Sankara Eye Hospital in Varanasi

    Source: Government of India

    Posted On: 20 OCT 2024 6:13PM by PIB Delhi

    Har Har Mahadev!

    Shankaracharya of the Sri Kanchi Kamakoti Peetham, venerable Jagatguru Sri Shankar Vijayendra Saraswati; Governor of Uttar Pradesh, Anandiben Patel; Chief Minister, Shri Yogi Adityanath; Deputy Chief Minister, Brajesh Pathak ji; RV Ramani of the Sankara Eye Foundation; Dr. SV Balasubramaniam; Shri Murali Krishnamurthy; Rekha Jhunjhunwala; and all other distinguished members of the organization, ladies and gentlemen!

    Visiting Kashi during this sacred month is, in itself, a profound spiritual experience. Present here are not only the residents of Kashi but also saints and philanthropists, making this occasion a truly blessed convergence! I am fortunate to meet and receive the prasad and blessings of the revered Shankaracharya ji. It is through his blessings that Kashi and the Purvanchal region have been bestowed with another modern hospital today. In this divine city of Lord Shankar, the RJ Sankara Eye Hospital is dedicated to the people from today. I extend my heartfelt congratulations to all the families of Kashi and Purvanchal.

    Friends,
    Our scriptures proclaim: “तमसो मा ज्योतिर्गमय:” – meaning, lead us from darkness to light. This RJ Sankara Eye Hospital will remove the darkness from the lives of countless people in Varanasi and this region, guiding them towards the light. I have just returned from visiting this eye hospital, and in every sense, it represents a fusion of spirituality and modernity. This hospital will serve the elderly and give new sight to children. A significant number of poor people will receive free treatment here. Moreover, this eye hospital has created new employment opportunities for the youth. Medical students will be able to do internships and practise here, and numerous individuals will find work as support staff.

    Friends,

    I have had the privilege of being associated with the noble endeavours of the Sankara Eye Foundation in the past as well. During my tenure as Chief Minister of Gujarat, I was involved in the inauguration of the Sankara Eye Hospital there. I had the honour of undertaking that work under the guidance of your revered Guruji. Today, I once again have the opportunity to contribute under your guidance, and this fills me with immense satisfaction. In fact, Pujya Swami Ji reminded me that I have been blessed in another way. I was fortunate to have received the blessings of Shri Kanchi Kamakoti Peethadheepati Jagatguru Shankaracharya Chandrashekharendra Saraswati Mahaswamigal. I had the privilege of sitting at the feet of Param Acharya Ji on numerous occasions and received immense affection from Param Pujya Jagatguru Shankaracharya Shri Jayendra Saraswati Swamigal Ji. I have completed several important projects under his guidance, and now I am blessed with the company of Jagatguru Shankaracharya Shri Shankar Vijayendra Saraswati Ji. In a way, being connected with three Guru traditions is one of life’s greatest blessings. This is something that gives me deep personal satisfaction. Today, Jagatguru has kindly taken time out to come to my parliamentary constituency for this programme. As the representative of the people here, I extend my heartfelt welcome to you and express my profound gratitude.

    Friends,

    On this occasion, it is only natural to remember my dear friend, Rakesh Jhunjhunwala Ji. The world is well aware of his stature in the business community, and much has been said about him in that regard. However, his dedication to social causes is evident here today. His family is now continuing his legacy, and Rekha Ji is devoting considerable time to this noble work. I am pleased to have had the opportunity to meet Rakesh Ji’s entire family today. I recall requesting both the Sankara Eye Hospital and the Chitrakoot Eye Hospital to establish themselves in Varanasi, and I am deeply grateful to both institutions for honouring the wishes of the people of Kashi. In the past, thousands of individuals from my parliamentary constituency have received treatment at Chitrakoot Eye Hospital. Now, the people of this region will benefit from two new modern institutions right here in Varanasi.

    Friends,

    Kashi has long been recognized as a centre of religion and culture. Now, it is also gaining recognition as a major healthcare hub for Uttar Pradesh and the Purvanchal region. Whether it is the trauma centre at BHU, the super-specialty hospital, the enhanced facilities at Deendayal Upadhyay Hospital and Kabirchaura Hospital, specialised hospitals for the elderly and government employees, or the medical college – many healthcare advancements have been made in Kashi over the past decade. Today, Banaras also boasts a modern cancer treatment facility, enabling patients who once had to travel to Delhi or Mumbai to receive quality care locally. Thousands of people from Bihar, Jharkhand, Chhattisgarh, and other parts of the country now come here for treatment. Our Mokshadayini Kashi is evolving into a centre of new vitality, offering fresh energy and enhanced healthcare resources.

    Friends,

    During the tenure of previous governments, the healthcare infrastructure in Purvanchal, including Varanasi, was grossly neglected. The situation was so dire that, just 10 years ago, there were no block-level treatment centres for brain fever in Purvanchal. Children would tragically lose their lives, and the media would be filled with reports of this distress. Yet, the former governments did nothing to address the issue. I am gratified that over the past decade, we have seen an unprecedented expansion of healthcare facilities, not only in Kashi but across the entire Purvanchal region. Today, more than 100 centres are operational, providing treatment for brain fever throughout Purvanchal. Over the last 10 years, more than 10,000 new hospital beds have been added to primary and community health centres across the region. In the same period, over 5,500 Ayushman Arogya Mandirs have been established in the villages of Purvanchal. A decade ago, there were no dialysis facilities in the district hospitals of Purvanchal. Today, more than 20 dialysis units are functioning, offering patients these services free of charge.

    Friends,

    The new Bharat of the 21st century has transformed the outdated thinking and approach to healthcare. Today, Bharat’s healthcare strategy is built on five key pillars. The first is preventive healthcare – taking steps to prevent illness before it occurs. The second is timely diagnosis of diseases. The third is providing free and affordable treatment, including access to inexpensive medicines. The fourth is ensuring quality medical care in smaller towns, addressing the shortage of doctors. And the fifth pillar is the expansion of technology in healthcare.

    Friends,

    Protecting individuals from disease is a top priority of Bharat’s health policy and forms the first pillar of the health sector. Illness only deepens the poverty of the disadvantaged. As you know, over the past 10 years, 250 million people have been lifted out of poverty. However, a serious illness could easily push them back into the depths of poverty. This is why the government is placing significant emphasis on disease prevention. Our government is focusing particularly on cleanliness, yoga and Ayurveda, nutritious food, and related areas. We have also extended the vaccination campaign to as many households as possible. Just 10 years ago, the country’s vaccination coverage stood at only around 60 percent, leaving crores of children unvaccinated. Furthermore, the rate of increase in vaccination coverage was a mere 1 to 1.5 percent annually. At that pace, it would have taken another 40 to 50 years to achieve universal vaccination coverage for every child and every region. You can imagine the great injustice this was doing to the younger generation of the nation. Therefore, upon forming the government, we prioritised child vaccination and expanding its coverage. We launched Mission Indradhanush, involving multiple ministries in this effort simultaneously. As a result, not only did the vaccination rate rise significantly, but crores of pregnant women and children who were previously excluded from it were vaccinated. The strong emphasis Bharat placed on vaccination proved highly beneficial during the COVID-19 pandemic. Today, the vaccination campaign continues to progress rapidly across the country.

    Friends,

    In addition to disease prevention, timely detection of illnesses is equally important. For this reason, lakhs of Ayushman Arogya Mandirs have been established nationwide, enabling early detection of diseases such as cancer and diabetes. Today, we are also building a network of critical care units and modern laboratories across the country. This second pillar of the health sector is saving the lives of lakhs of people.

    Friends,

    The third pillar of healthcare is affordable treatment and inexpensive medicines. Today, the average medical expenditure for every citizen in the country has reduced by 25 percent. People are now able to purchase medicines at an 80 percent discount through PM Jan Aushadhi Kendras. Whether it be heart stents, knee implants, or cancer medicines, the prices of these essential treatments have been significantly reduced. The Ayushman Yojana, which offers free treatment up to Rs 5 lakh for the poor, has become a lifesaver for many. So far, more than 7.5 crore patients across the country have benefited from free treatment under this scheme. Moreover, this service is now being extended to the elderly in every family throughout the nation.

    Friends,

    The fourth pillar of healthcare aims to reduce the dependency on major cities like Delhi and Mumbai for treatment. Over the past decade, we have established AIIMS, medical colleges, and super-specialty hospitals in smaller cities. To address the shortage of doctors in the country, thousands of new medical seats have been added in the last decade. Looking ahead, we have decided to add 75,000 more seats in the next five years.

    Friends,

    The fifth pillar of healthcare is increasing access to health services through technology. Today, digital health IDs are being created, and patients can receive consultations from the comfort of their homes through platforms like the e-Sanjeevani app. I am pleased to share that over 30 crore people have already taken advantage of consultations via the e-Sanjeevani app. We are also advancing towards integrating drone technology with healthcare services.

    Friends, 

    A healthy and capable young generation is essential for achieving the vision of a developed Bharat. I am immensely pleased that in this mission, we are blessed with the support of the revered Pujya Shankaracharya Ji. I pray to Baba Vishwanath that this mission for a healthy and capable Bharat continues to grow stronger. Today, as I sit at the feet of Pujya Shankaracharya Ji, I am reminded of memories from my childhood. When I was young, a doctor from my village would travel to Bihar for a month each year with a group of volunteers. There, he would conduct a large-scale cataract surgery campaign, which he referred to as “Netra Yagna.” He dedicated one month every year to this cause, and many people from my village would accompany him as volunteers. Even as a child, I was aware of the immense need for such services in Bihar. Therefore, today, I make a heartfelt request to Pujya Shankaracharya Ji to consider opening a similar Sankara Eye Hospital in Bihar. Those memories from my childhood remind me of how impactful such a service would be for the people of Bihar. Maharaj Ji has a vision of reaching every corner of the country, and I am confident that Bihar will be given priority and receive your blessings. It would be a tremendous honour to serve the diligent and hardworking people of Bihar, and contributing to their well-being would bring us great fulfilment in life. Once again, I extend my best wishes to all of you, especially our dedicated doctors, paramedical staff, and all the brothers and sisters working in this noble mission. With deep reverence, I bow before Pujya Jagatguru Ji, offering my heartfelt prayers for his continued blessings and guidance. With gratitude in my heart, I conclude my speech.

    Har-Har Mahadev!

     

    ***

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    Read this release in: Hindi

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  • MIL-OSI Asia-Pac: Dr Jitendra Singh releases first of its kind, largest ICMR-India Diabetes ‘INDIAB’ Study, all-India survey’s Jammu related data on prevalence of Diabetes in Jammu region

    Source: Government of India (2)

     Union Minister Dr. Jitendra Singh, who is also a nationally renowned Diabetologist, today released the Jammu related data of the ‘first of its kind’ world’s largest survey ‘ICMR-India Diabetes ‘INDIAB’ Study to assess the prevalence of Diabetes in India, including Jammu & Kashmir in Jammu today.

    According to the survey, the overall burden of the disease in Jammu region covering its 10 districts is 18.9 percent, with 26.5 percent in urban areas and 14.5 per cent in rural areas which is higher than the national average.

    Expressing concern over the rising cases of Diabetes in the region, Dr Jitendra Singh called upon everyone, including medical institutions, NGOs and the media to create awareness in the society about the disease in order to prevent and control it before it assumes an alarming proportion. He said the study offers an opportunity for prevention and control of Non-Communicable Diseases (NCDs). He called for adopting a multi-sectoral approach involving the government, non-governmental agencies, the community at large as well as the individual to slow down or stop the rising tide Diabetes and other NCDs.

    Describing the ICMR- India Diabetes (INDIAB) nationwide study as landmark, he said its findings will help to estimate the health burden due to Diabetes, prediabetes and metabolic NCD. He added that the study will also help in shifting focus to the prevention and control of Diabetes and other NCDs in the Union Territory of Jammu and Kashmir.

    Dr Jitendra Singh further said that the findings of the study are expected to help policymakers, health professionals and stakeholders to develop targeted interventions for prevention and management of Diabetes and other NCDs in Jammu and across India as it was a national responsibility. He also mentioned the need for early detection of the disease as well as the need to break the chain of passing from one generation to another by focussing diabetic pregnant women.

    The Union Minister said that all-out efforts must be made to prevent the youth from falling prey to this preventable disease. Calling the youth architects of a Vikisit Bharat, the Minister said that proper care of their health and well-being must be taken by all the stakeholders. He said that the energy and potential of youngsters cannot be consigned to this silent killer, but must be nurtured and preserved to realise the goal of a developed India by the year 2047.

    Dr Jitendra Singh informed that the Government is setting up nearly 1,50,000 Health and Wellness Centres all over the country with a focus on prevention and control of NCDs like Diabetes, hypertension and some forms of cancer. The Union Minister credited Prime Minister Narendra Modi with bringing in a preventable healthcare ecosystem in the country, saying prior to COVID pandemic, this concept was alien to India. “Credit goes to Prime Minister Narendra for awakening the nation to the virtues of preventable healthcare, using traditional medicines like Ayurveda and Unani, and practising yoga for health”, the Minister noted.

    “It is at the initiative of PM Modi that 1.5 lakh Wellness Centres are to be opened across the country” , the Minister said.

    Dr Jitendra Singh called for tapping the vast expanse of unexplored Himalayan resources of J&K. He said these resources have a huge potential for making value addition to India’s economy. He expressed happiness at the recent impressive economic growth of India and said that India has now joined the league of top five economies of the world while mentioning that the journey from fragile five to top five economies of the world has been momentous.

    Further elaborating Dr Jitendra Singh said if the vast bio resources of J&K are tapped, they will contribute to India’s growth story in the times to come.

    According to the ICMR-INDIAB study, 10.8 per cent of the population in Jammu region is affected by prediabetes, emphasizing the urgent need for action against the growing burden of NCDs in the region.

    The Jammu phase surveyed 1,520 participants across urban and rural areas, providing critical insights into the region’s health landscape. As per the survey, the overall prevalence of hypertension, generalised obesity and abdominal obesity in Jammu is 27.1 %, 41.7 % and 62.7 % respectively. The study was conducted by the Madras Diabetes Research Foundation with the collaboration of ICMR and the Department of Health Research.

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  • MIL-OSI Asia-Pac: Prime Minister Shri Narendra Modi inaugurates RJ Sankara Eye Hospital in Varanasi, Uttar Pradesh

    Source: Government of India

    Prime Minister Shri Narendra Modi inaugurates RJ Sankara Eye Hospital in Varanasi, Uttar Pradesh

    The Hospital will remove darkness from the lives of many people in Varanasi and the region, leading them towards light: PM

    Kashi is also now becoming famous as a big health center and healthcare hub of Purvanchal in UP: PM

    Today, India’s health strategy has five pillars – Preventive healthcare, Timely diagnosis of disease, Free and low-cost treatment, Good treatment in small towns and Expansion of technology in healthcare: PM

    Posted On: 20 OCT 2024 5:24PM by PIB Delhi

    The Prime Minister, Shri Narendra Modi inaugurated RJ Sankara Eye Hospital in Varanasi, Uttar Pradesh today. The hospital offers comprehensive consultations and treatments for various eye conditions. Shri Modi also took a walkthrough of the exhibition showcased on the occasion.

    Addressing the occasion, the Prime Minister said that visiting Kashi during this auspicious period is an opportunity to experience virtue. He noted the gracious presence of the people of Kashi, saints and philanthropists and mentioned performing darshan and receiving prasadam and blessings with Param Pujya Shankaracharya ji. The Prime Minister emphasized that Kashi and Uttaranchal have been blessed with another modern hospital today and mentioned the dedication of RJ Sankara Eye Hospital in the land of Lord Shankar. Shri Modi congratulated the people of Kashi and Uttaranchal on the occasion.

    Giving an analogy of a quote mentioned in the ancient scriptures of India, the Prime Minister remarked that RJ Sankara Eye hospital would wipe out the darkness and lead many people towards light. Shri Modi said that having just visited the eye hospital, he felt it was an amalgamation of spirituality and modernity and the hospital would serve both the old and young in giving eyesight. He added that the poor would be getting free treatment in the hospital in large numbers. Shri Modi noted that the eye hospital would also create new job avenues for many youths as well as job and internship opportunities for medical students along with jobs for the support staff as well.

    The Prime Minister recalled his association with Sankara Eye Foundation during his time as the Chief Minister of Gujarat and mentioned inaugurating Sankara Eye Hospital in the presence of Sri Shankara Vijayendra Saraswathi’s guru. He said that it is a matter of great contentment to receive the blessings of Sri Kanchi Kamakoti Peethadipathi, Jagadguru Shankaracharya Chandrashekharendra Saraswati Swamigal and mentioned accomplishing several tasks under the guidance of Param Pujya Jagadguru Sri Jayendra Saraswati  Referring to today’s occasion, the Prime Minister said that it is a matter of personal satisfaction being associated with three different traditions of Gurus. The Prime Minister thanked Sri Shankara Vijayendra Saraswathi for blessing the occasion and welcomed him as the people’s representative of Varanasi. 

    Shri Modi also reminisced about the service and work of noted entrepreneur, Late Shri, Rakesh Jhunjhunwala. He also lauded the latter’s wife Smt Rekha Jhunjhunwala for continuing the heritage and legacy of Shri Jhunjhunwala. The Prime Minister recalled that he had requested both Sankara Eye Hospital and Chitrakoot Eye Hospital to set up their establishments in Varanasi and was thankful to both organizations that both had respected the request of people of Kashi. He noted that in the past, thousands of people from his parliamentary constituency had been treated at Chitrakoot Eye Hospital and now there were two new state-of-the-art eye hospitals within their reach in Varanasi.

    Noting that from time immemorial, Varanasi was identified as the religious and cultural capital, the Prime Minister remarked that now Varanasi was becoming famous as UP and Purvanchal’s healthcare hub as well. Be it the BHU Trauma Center or superspeciality hospital or Deen Dayal Upadhyay Hospital or strengthening the facilities at Kabir Chaura Hospital or a speciality hospital for the senior citizens and government servants or medical colleges, Shri Modi said there was a lot of work done in the healthcare sector in the last decade. He added that there was a modern health facility even for the treatment of cancer patients in Varanasi. Shri Modi highlighted that the patients were getting good medical treatment in Varanasi itself today as against the visit to Delhi or Mumbai previously. He added that thousands of people from Bihar, Jharkhand and other places were coming to Varanasi for treatment. The Prime Minister remarked that the erstwhile “Mokshadayini” (Salvation giver) Varanasi was transitioning to a  “NavJeevandayini” (New Life giver) Varanasi as well with new energy and resources. 

    Talking about previous governments, the Prime Minister remarked that healthcare facilities in Purvanchal including Varanasi were neglected. He added that the situation was such that 10 years ago, there were no block-level treatment centers for brain fever in Purvanchal leading to the death of Children causing hue and cry in the media. Shri Modi expressed satisfaction that in the last decade, there had been an unprecedented expansion of health facilities not only in Kashi but in the entire region of Purvanchal. He noted that today there were more than 100 such centers working to treat brain fever in Purvanchal and more than 10 thousand new beds have been added in the primary and community centers of Purvanchal in the last decade. He further noted that in 10 years, more than 5 and a half thousand Ayushman Arogya Mandirs were built in the villages of Purvanchal. The Prime Minister also said that there were more than 20 dialysis units working today which were providing free treatment to patients as compared to 10 years ago when there were no dialysis facilities in the district hospitals of Purvanchal.

    The Prime Minister emphasized that India of the 21st century has shed the old mentality and approach pertaining to healthcare. He underlined the five pillars of India’s healthcare strategy namely preventive healthcare, timely diagnosis, free medicines and treatment, better healthcare facilities and adequate doctors in small towns and lastly expansive use of technology in healthcare services.

    Underlining that preventing people from ailments is the highest priority and a first pillar of India’s healthcare policy, the Prime Minister pointed out that diseases tend to make people poorer. Noting that 25 crore people have risen out of poverty in the last 10 years, Shri Modi said that one serious ailment can push them back towards poverty. Therefore, said the Prime Minister, the Government is paying special attention to cleanliness, Yoga, ayurveda and nutrition. Highlighting the expansive reach of the vaccination drive, the Prime Minister pointed out that vaccination coverage remained only around 60 percent ten years ago when crores of children were left out. He lamented the scope of vaccination increasing at a rate of only one to one and a half percent every year and said that it would have taken another 40-50 years to bring every area and every child under the vaccination coverage. He said that the present government prioritized increasing the coverage of vaccination among children and mentioned Mission Indradhanush which involved many ministries working together resulting in an increase in vaccination coverage rate and taking the services to crores of pregnant women and children. He said that the benefits of the Government’s emphasis on vaccination were visible during the covid pandemic while today, this vaccination campaign is going on rapidly across the country.

    The Prime Minister underlined the importance of early detection of disease and mentioned the establishment of lakhs of Ayushman Arogya Mandirs across the country to detect many diseases like cancer and diabetes at the very beginning. He said that a network of critical care blocks and modern labs are also being built in the country today. “This second pillar of the health sector is saving the lives of lakhs of people”, he added. 

    Explaining the third pillar of health being low-cost treatment and cheap medicines, the Prime Minister underlined that the average expenditure on the treatment of diseases has been reduced by 25 percent and also mentioned PM Jan Aushadhi Kendras where medicines are available at 80 percent discount. He informed that the price of heart stents, knee implants and cancer medicines have been significantly reduced while Ayushman Yojana provides free treatment for the poor up to Rs 5 lakh proving to be a lifesaver. He informed that more than 7.5 crore patients have so far availed the benefit of free treatment under Ayushman Yojana.  

    Elaborating the fourth pillar of the health sector. Shri Modi noted that it was going to reduce the dependence on big cities like Delhi-Mumbai for treatment. He added that the Government had established hospitals like AIIMS, medical colleges and super speciality hospitals in small cities in the last decade. The Prime Minister also noted that thousands of new medical seats were added in the last decade to overcome the shortage of doctors in the country. He added that the Government had decided to add 75 thousand more seats in the next 5 years.

    The Prime Minister explained the fifth pillar of the health sector was to make health facilities more accessible through technology. He added that today digital health IDs were being created and patients were provided the facility of consultation at home through means like e-Sanjeevani app. Expressing happiness, Shri Modi noted that till now more than 30 crore people had been consulted with the help of e-Sanjeevani app. He added that India was also moving towards connecting health services with drone technology.

    Concluding the address, the Prime Minister expressed confidence that a healthy and capable young generation will fulfill the resolve of a Viksit Bharat. Shri Modi conveyed his best wishes, especially to India’s doctors, paramedics and other staff.

    Governor of Uttar Pradesh, Smt Anandiben Patel and Chief Minister of Uttar Pradesh, Shri Yogi Adityanath and Jagadguru Peethadipathi of Kanchi Kamakoti Peetham, Kanchipuram, Sri Shankara Vijayendra Saraswathi were present on the occasion among others. 

     

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    MJPS/SR/TS

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    MIL OSI Asia Pacific News –

  • MIL-OSI Asia-Pac: Union Minister for Health & Family Welfare and Chemicals & Fertilizers, Shri J.P. Nadda inaugurates the “Medicine Update BJMFCON 2024”, organized by the Bihar & Jharkhand Medical Forum (BJMF)

    Source: Government of India (2)

    Union Minister for Health & Family Welfare and Chemicals & Fertilizers, Shri J.P. Nadda inaugurates the “Medicine Update BJMFCON 2024”, organized by the Bihar & Jharkhand Medical Forum (BJMF)

    Out of total 1.73 lakh high-quality Ayushman Arogya Mandirs in India, 10,716 are in Bihar with a footfall of 8.35 crore and 4.36 crore non-communicable disease (NCD) screenings, 3,825 Ayushman Arogya Mandirs in Jharkhand with a footfall of 2.33 crore and 2.12 crore NCD screenings: Shri Nadda

    “Infant Mortality Rate in Bihar came down from 42 to 27 in 2020, and in Jharkhand, from 34 to 25 in 2020”

    “157 District hospitals converted to medical colleges in India, out of which 8 were in Bihar (in Purnia, Saran, Samastipur, Jhajharpur, Siwan, Buxar, and Jamui) and 5 in Jharkhand (in Dumka, Hazaribagh, Palamu, Chaibasa, and Kodarma)”

    “The Patna Medical College and Hospital (PMCH) is being redeveloped into Asia’s second-largest hospital”

    Posted On: 20 OCT 2024 4:49PM by PIB Delhi

    Union Minister for Health & Family Welfare and Chemicals & Fertilizers, Shri J.P. Nadda inaugurated the “Medicine Update BJMFCON 2024”, organized by the Bihar & Jharkhand Medical Forum (BJMF), here today. As the chief guest at the event, Shri Nadda also released the ‘Souvenir and BJMF Directory’.

    Bihar & Jharkhand Medical Forum (BJMF) is a socio-scientific organization of doctors from the states of Bihar & Jharkhand practicing in the Delhi NCR Region for long and serving the people of the region. The first Medicine Update was held in 2023. The 2ndMedicine Update BJMFCON was held today.

     

     

    Addressing the BJMFCON 2024, Shri Nadda stated that “I am delighted to know that BJMF takes its socio, academic and scientific program ahead. You all have not just become doctors for yourself but also have given back to society. United efforts have been made by you to ensure outreach to society while also enlightening yourself through such conferences, continued medical education, seminars, group discussions, and panel discussions conducted by the BJMF.”

     

     

    Highlighting the government’s efforts in transforming the health landscape of the country, Shri Nadda stated that “under the visionary leadership of Prime Minister Shri Narendra Modi, the government is taking steps to ensure high quality and affordable healthcare facilities to all” and “is committed to implementing a comprehensive health policy that provides holistic, inclusive, preventive, promotive, curative, palliative and rehabilitative care to all.”

     

    Underlining the government’s efforts on preventive aspects of healthcare and early detection of diseases in the country, he stated that, “there are 1.73 lakh high-quality Ayushman Arogya Mandirs in India that go through a digital high-quality assessment. Out of the total Ayushman Arogya Mandirs in India, 10,716 are in Bihar with a footfall of 8.35 crore and 4.36 crore non-communicable disease (NCD) screenings, while there are 3,825 Ayushman Arogya Mandirs in Jharkhand with a footfall of 2.33 crore and 2.12 crore NCD screenings.”

     

     

    Highlighting the strides made in mother and child health, he stated that “institutional deliveries increased from 78.9% to 88.6% in first 5 years of Modi Government”, Shri Nadda stated that “the infant mortality rate (IMR) has declined in the country. IMR in India was 28 per 1000 live births in 2020.  In Bihar, it came down from 42 to 27 in 2020, and in Jharkhand, from 34 to 25 in 2020. The under 5 Mortality Rate was 32 per 1000 live births in India in 2020. In Bihar, it came down from 53 to 30 in 2020 and from 44 to 27 in 2020, in Jharkhand.”

     

    He further added that “from 387 before 2014 to 766, an increase of 98% in the number of medical colleges has been ensured under the Prime Minister’s leadership. 157 District hospitals were converted to medical colleges out of which 8 were in Bihar in Purnia, Saran, Samastipur, Jhajharpur, Siwan, Buxar, and Jamui. 5 of these were in Jharkhand in Dumka, Hazaribagh, Palamu, Chaibasa, and Kodarma.” He emphasized that “the Patna Medical College and Hospital (PMCH) is being redeveloped into Asia’s second-largest hospital.”

     

    He added that “The number of MBBS (Bachelor of Medicine and Bachelor of Surgery) seats has seen an increase of 125% i.e. from 51,348 before 2014 to 1,15, 412. While there has been an increase of 134% in postgraduate (PG) seats from 31,185 before 2014 to 73,111.”

     

    He also highlighted that “under the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) to correct regional imbalances in the availability of affordable/ reliable tertiary healthcare services and also to augment facilities for quality medical education in the country new All India Institutes of Medical Sciences (AIIMS) will be opened up in Patna and Darbhanga in Bihar and at Deoghar in Jharkhand.” He also added that “under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PM-JAY), the world’s largest health insurance scheme, Rs. 86,797 crores worth of treatment has been authorized. As part of its commitment to senior care, the government has extended Ayushman Bharat PM-JAY to all seniors aged 70 and above which facilitates them accessing up to ₹5 lakh of healthcare benefits.”

     

     

    He commended the healthcare providers “for their relentless efforts to ensure the accessibility of healthcare services even in the remotest areas of the country” and highlighted their efforts and service during the COVID-19 pandemic. He concluded his remarks by thanking the doctors for their contribution to providing healthcare to the people and ensuring the achievements of the government in this direction and urged the participants of the programme to come up with concrete recommendations for improving healthcare facilities in the country.

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     MV/AKS

     HFW/HFM inaugurates “Medicine Update BJMFCON 2024”/20th October 2024/1

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    MIL OSI Asia Pacific News –

  • MIL-OSI Asia-Pac: Hon’ble President of India to confer the 5th National Water Awards 2023

    Source: Government of India

    Posted On: 20 OCT 2024 11:19AM by PIB Delhi

    The Hon’ble President of India Smt. Droupadi Murmu will confer the 5th National Water Awards 2023 on October 22nd2024 at Vigyan Bhawan, New Delhi. The Department of Water Resources, River Development, and Ganga Rejuvenation (DoWR, RD &GR), under the Ministry of Jal Shakti announced the 38 winners, including joint winners, for the 5th National Water Awards, 2023, in 09 categories viz Best State, Best District, Best Village Panchayat, Best Urban Local Body, Best School or College, Best Industry, Best Water User Association, Best Institution (other than school or college), and Best Civil Society on 14th October 2024.

    In the category of Best State, the first prize has been conferred upon Odisha, with Uttar Pradesh securing the second position, and Gujarat and Puducherry jointly securing the third position. Each award winner will be conferred with a citation and a trophy as well as cash prizes in certain categories.

    Under the guidance of Hon’ble Prime Minister, the Ministry of Jal Shakti has been undertaking a comprehensive campaign to spread awareness about water management and water conservation on a national level. From this standpoint and to create awareness among the people about the importance of water and to help motivate people to adopt the best water usage practices, the 1st National Water Awards were launched in 2018 by the DoWR, RD & GR. The 2nd, 3rd, and 4th National Water Awards were given for the years 2019, 2020 and 2022. The awards were not given in the year 2021 due to CoVID pandemic.

    The National Water Awards (NWAs) focus on the good work and efforts made by individuals and the organizations across the country in attaining the government’s vision of a ‘Jal Samridh Bharat’. The awards are for creating awareness among the people about the importance of water and motivating them to adopt best water usage practices.

    Details of winners under various categories for 5th National Water Awards

    5TH NATIONAL WATER AWARDS, 2023

     

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    DSK

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    MIL OSI Asia Pacific News –

  • MIL-OSI Asia-Pac: CIC calls on Dr. Jitendra Singh, Minister of State for Personnel, Public Grievances & Pensions

    Source: Government of India

    CIC calls on Dr. Jitendra Singh, Minister of State for Personnel, Public Grievances & Pensions

    100% RTI disposal rate in first 6 months of current financial year

    Posted On: 19 OCT 2024 5:25PM by PIB Delhi

    Chief Information Commissioner of India Shri Heeralal Samariya called on Dr. Jitendra Singh, Minister of State for Personnel, Public Grievances & Pensions today.

    During the meeting, Shri Samariya informed the Minister that Central Information Commission has achieved 100% disposal rate of RTIs during the first six months of the current financial year. Dr Jitendra Singh lauded the Central Information Commission on this achievement.

     

    The Minister applauded the office of Chief Information Commission for consistently using Artificial Intelligence for study, analysis and pattern of RTIs and also checking credentials of RTI applicants.

    Chief Information Commissioner also apprised the Minister of the consistent use of hybrid mode, – physical cum video conferencing, introduced in the office of CIC for hearing and disposal of RTI appeals. The Commissioner informed the Minister that the disposal of RTI applications during the Covid 19 pandemic period was more due to the use of online mode and modern technologies.

    He further informed that now the RTI applications can also be filed with the help of mobile App. “New technologies have been introduced, leading to the speedy disposal of pending applications. Awareness camps are also being organised to spread awareness about the RTI Act” the Commissioner submitted.

    The Union Minister said that it was during the Modi Government that a 24-hour portal service was introduced for e-filing of the RTI applications at any time of the day or night and from any part of the country or abroad. Similarly during Prime Minister Shri Narendra Modi’s tenure, the office of Central Information Commissioner was shifted to its own exclusive office complex, he added.

    Dr Jitendra Singh reiterated that the role of the Central Information Commission is important to live up to PM Modi’s vision of transparency and citizen participation in the functioning of the government.

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    NKK/AG/GS

     

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    MIL OSI Asia Pacific News –

  • MIL-OSI: Marquette National Corporation Declares a Dividend of $0.28 per Share

    Source: GlobeNewswire (MIL-OSI)

    CHICAGO, Oct. 21, 2024 (GLOBE NEWSWIRE) — Marquette National Corporation (OTCQX: MNAT) today announced that its Board of Directors declared a cash dividend of $0.28 per share. The dividend will be payable on January 2, 2025 to shareholders of record on December 20, 2024. As of September 30, 2024, Marquette National Corporation had 4,372,352 shares issued and outstanding.  

    Marquette National Corporation is a diversified bank holding company with total assets of approximately $2.20 billion. The Company’s banking subsidiary, Marquette Bank, is a full-service, community bank that serves the financial needs of communities in Chicagoland, offering an extensive line of financial solutions, including retail banking, real estate lending, trust, insurance, investments, wealth management and business banking to consumers and commercial customers. Marquette Bank has 20 branches located in: Chicago, Bolingbrook, Bridgeview, Evergreen Park, Hickory Hills, Lemont, New Lenox, Oak Forest, Oak Lawn, Orland Park, Summit and Tinley Park, Illinois. For more information visit: https://emarquettebank.com.

    Special Note Concerning Forward-Looking Statements
    This document contains, and future oral and written statements of the Company and its management may contain, forward-looking statements with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, among others, the following: (i) the strength of the local, state, national and international economies(including the effects of inflationary pressures and supply chain constraints); (ii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or other threats thereof (including the ongoing Israeli-Palestinian conflict and the Russian invasion of Ukraine), or other adverse external events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iii) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board or the Public Company Accounting Oversight Board; (iv) changes in local, state and federal laws, regulations and governmental policies concerning the Company’s general business as a result of the upcoming 2024 presidential election or any changes in response to failures of other banks; (v) changes in interest rates and prepayment rates of the Company’s assets (including the impact of the significant rate increases by the Federal Reserve since 2022); (vi) increased competition in the financial services sector (including from non-bank competitors such as credit unions and “fintech” companies) and the inability to attract new customers; (vii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (viii) the loss of key executives or employees; (ix) changes in consumer spending; (x) unexpected outcomes of existing or new litigation involving the Company; (xi) the economic impact of exceptional weather occurrences such as tornadoes, floods and blizzards; (xii) fluctuations in the value of securities held in our securities portfolio; (xiii) concentrations within our loan portfolio, large loans to certain borrowers, and large deposits from certain clients; (xiv) the concentration of large deposits from certain clients who have balances above current Federal Deposit Insurance Corporation insurance limits and may withdraw deposits to diversity their exposure; (xv) the level of non-performing assets on our balance sheets; (xvi) interruptions involving our information technology and communications systems or third-party servicers; (xvii) breaches or failures of our information security controls or cybersecurity-related incidents, and (xviii) the ability of the Company to manage the risks associated with the foregoing as well as anticipated.. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.

    For more information:
    Patrick Hunt
    EVP & CFO
    708-364-9019
    phunt@emarquettebank.com

    The MIL Network –

  • MIL-OSI: HBT Financial, Inc. Announces Third Quarter 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Third Quarter Highlights

    • Net income of $18.2 million, or $0.57 per diluted share; return on average assets (“ROAA”) of 1.44%; return on average stockholders’ equity (“ROAE”) of 13.81%; and return on average tangible common equity (“ROATCE”)(1) of 16.25%
    • Adjusted net income(1) of $19.2 million; or $0.61 per diluted share; adjusted ROAA(1) of 1.53%; adjusted ROAE(1) of 14.62%; and adjusted ROATCE(1) of 17.20%
    • Asset quality remained strong with nonperforming assets to total assets of 0.17% and net charge-offs to average loans of 0.07%, on an annualized basis
    • Net interest margin and net interest margin (tax-equivalent basis)(1) expanded to 3.98% and 4.03%, respectively

    BLOOMINGTON, Ill., Oct. 21, 2024 (GLOBE NEWSWIRE) — HBT Financial, Inc. (NASDAQ: HBT) (the “Company” or “HBT Financial” or “HBT”), the holding company for Heartland Bank and Trust Company, today reported net income of $18.2 million, or $0.57 diluted earnings per share, for the third quarter of 2024. This compares to net income of $18.1 million, or $0.57 diluted earnings per share, for the second quarter of 2024, and net income of $19.7 million, or $0.62 diluted earnings per share, for the third quarter of 2023.

    J. Lance Carter, President and Chief Executive Officer of HBT Financial, said, “In the third quarter, we continued our consistently solid financial performance with net income of $18.2 million, adjusted net income(1) of $19.2 million, adjusted ROAA(1) of 1.53% and adjusted ROATCE(1) of 17.20%. We have also seen tangible equity continue to build, with tangible book value per share increasing 23.3% over the last year. Our net interest margin (tax-equivalent basis)(1) increased 3 basis points to 4.03% while funding costs remained modest, increasing 5 basis points to 1.47%. Our asset quality remains strong with net charge-offs at 0.07% of average loans on an annualized basis during the quarter and nonperforming assets to total assets at 0.17%. We have not seen any significant signs of stress in our loan portfolio, but we continue to monitor the portfolio closely. Noninterest income remained consistent and noninterest expense of $31.3 million was up only 2.1% when compared to the third quarter of 2023, as we remain focused on operational efficiency while continuing to invest in our business. Lastly, all capital ratios had solid increases and can support future organic growth or acquisitions.”
    ____________________________________
    (1)   See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.

    Adjusted Net Income

    In addition to reporting GAAP results, the Company believes non-GAAP measures such as adjusted net income and adjusted earnings per share, which adjust for acquisition expenses, branch closure expenses, gains (losses) on closed branch premises, net earnings (losses) from closed or sold operations, charges related to termination of certain employee benefit plans, realized gains (losses) on sales of securities, and mortgage servicing rights fair value adjustments, provide investors with additional insight into its operational performance. The Company reported adjusted net income of $19.2 million, or $0.61 adjusted diluted earnings per share, for the third quarter of 2024. This compares to adjusted net income of $18.1 million, or $0.57 adjusted diluted earnings per share, for the second quarter of 2024, and adjusted net income of $20.3 million, or $0.63 adjusted diluted earnings per share, for the third quarter of 2023 (see “Reconciliation of Non-GAAP Financial Measures” tables below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures).

    Net Interest Income and Net Interest Margin

    Net interest income for the third quarter of 2024 was $47.7 million, an increase of 1.5% from $47.0 million for the second quarter of 2024. The increase was primarily attributable to improved loan yields which were mostly offset by an increase in funding costs.

    Relative to the third quarter of 2023, net interest income decreased 1.1% from $48.3 million. The decrease was primarily attributable to higher funding costs which were partially offset by higher asset yields and an increase in interest-earning assets.

    Net interest margin for the third quarter of 2024 was 3.98%, compared to 3.95% for the second quarter of 2024, and net interest margin (tax-equivalent basis)(1) for the third quarter of 2024 was 4.03%, compared to 4.00% for the second quarter of 2024. Higher yields on interest-earning assets, which increased by 7 basis points to 5.35%, were mostly offset by an increase in funding costs, with the cost of funds increasing by 5 basis points to 1.47%.

    Relative to the third quarter of 2023, net interest margin decreased 9 basis points from 4.07% and net interest margin (tax-equivalent basis)(1) decreased 10 basis points from 4.13%. These decreases were primarily attributable to increases in funding costs outpacing increases in interest-earning asset yields.
    ____________________________________
    (1)   See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.

    Noninterest Income

    Noninterest income for the third quarter of 2024 was $8.7 million, a decrease from $9.6 million for the second quarter of 2024. The decrease was primarily attributable to changes in the mortgage servicing rights (“MSR”) fair value adjustment, with a $1.5 million negative MSR fair value adjustment included in the third quarter 2024 results compared to a $0.1 million negative MSR fair value adjustment included in the second quarter 2024 results. Partially offsetting the MSR fair value adjustment was a $0.2 million increase in service charge income and a $0.2 million increase in other noninterest income, primarily attributable to swap fee income.

    Relative to the third quarter of 2023, noninterest income decreased 8.3% from $9.5 million. The decrease was primarily attributable to the $1.5 million negative MSR fair value adjustment included in the third quarter 2024 results, partially offset by the absence of $0.8 million in realized losses on the sale of securities included in the third quarter 2023 results.

    Noninterest Expense

    Noninterest expense for the third quarter of 2024 was $31.3 million, a 2.7% increase from $30.5 million for the second quarter of 2024. The increase was primarily attributable to a $0.5 million increase in occupancy expense, driven in part by a seasonal increase in planned building maintenance expenses, and a $0.4 million increase in marketing and customer relations expense.

    Relative to the third quarter of 2023, noninterest expense increased 2.1% from $30.7 million. The increase was primarily attributable to a $0.7 million increase in salaries and a $0.4 million increase in employee benefits. Partially offsetting these increases was a $0.3 million decrease in marketing and customer relations expense.

    On February 1, 2023, HBT Financial completed its acquisition of Town and Country Financial Corporation (“Town and Country”) with the core system conversion successfully completed in April 2023. Acquisition-related expenses recognized during the nine months ended September 30, 2023 are summarized below. No Town and Country acquisition-related expenses were recognized subsequent to the second quarter of 2023.

    (dollars in thousands)     Nine Months Ended
    September 30, 2023    		  
         
    PROVISION FOR CREDIT LOSSES   $ 5,924  
    NONINTEREST EXPENSE    
    Salaries     3,584  
    Furniture and equipment     39  
    Data processing     2,031  
    Marketing and customer relations     24  
    Loan collection and servicing     125  
    Legal fees and other noninterest expense     1,964  
    Total noninterest expense     7,767  
    Total acquisition-related expenses   $ 13,691  
     

    Loan Portfolio

    Total loans outstanding, before allowance for credit losses, were $3.37 billion at September 30, 2024, compared with $3.39 billion at June 30, 2024, and $3.34 billion at September 30, 2023. The $15.7 million decrease from June 30, 2024 was primarily attributable to several larger commercial real estate loan payoffs due to the sale of the property and a couple of larger one-to-four family residential loan payoffs. These decreases were partially offset by increased line usage and term originations in our agricultural and farmland portfolio.

    Deposits

    Total deposits were $4.28 billion at September 30, 2024, compared with $4.32 billion at June 30, 2024, and $4.20 billion at September 30, 2023. The $38.0 million decrease from June 30, 2024 was primarily attributable to lower balances maintained in retail accounts and a $18.3 million decrease in escrow balances related to seasonal tax payments, partially offset by increases in public funds and business accounts. Additionally, we continue to see a shift towards higher cost deposit products, with decreases in noninterest-bearing deposits, interest-bearing demand, and savings balances being partially offset by an increase in money market and time deposit balances.

    Asset Quality

    Nonperforming loans totaled $8.2 million, or 0.24% of total loans, at September 30, 2024, compared with $8.4 million, or 0.25% of total loans, at June 30, 2024, and $6.7 million, or 0.20% of total loans, at September 30, 2023. Additionally, of the $8.2 million of nonperforming loans held as of September 30, 2024, $2.0 million is either wholly or partially guaranteed by the U.S. government. The $0.2 million decrease in nonperforming loans from June 30, 2024 was primarily attributable to the payoff of $0.1 million in nonaccrual agricultural and farmland loans.

    The Company recorded a provision for credit losses of $0.6 million for the third quarter of 2024. The provision for credit losses primarily reflects a $1.2 million increase in required reserves resulting from changes in economic forecasts; a $0.2 million increase in required reserves resulting from qualitative factor changes; a $0.6 million decrease in required reserves driven by decreased loan balances and changes within the loan portfolio; and a $0.2 million decrease in specific reserves.

    The Company had net charge-offs of $0.6 million, or 0.07% of average loans on an annualized basis, for the third quarter of 2024, compared to net charge-offs of $0.7 million, or 0.08% of average loans on an annualized basis, for the second quarter of 2024, and net recoveries of $0.1 million, or 0.01% of average loans on an annualized basis, for the third quarter of 2023. During the third quarter of 2024, net charge-offs were primarily recognized in the commercial and industrial category which had $0.7 million of net charge-offs.

    The Company’s allowance for credit losses was 1.22% of total loans and 499% of nonperforming loans at September 30, 2024, compared with 1.21% of total loans and 484% of nonperforming loans at June 30, 2024. In addition, the allowance for credit losses on unfunded lending-related commitments totaled $4.1 million as of September 30, 2024, compared with $4.3 million as of June 30, 2024.

    Capital

    As of September 30, 2024, the Company exceeded all regulatory capital requirements under Basel III as summarized in the following table:

        September 30, 2024   For Capital
    Adequacy Purposes
    With Capital
    Conservation Buffer
             
    Total capital to risk-weighted assets   16.54 %   10.50 %
    Tier 1 capital to risk-weighted assets   14.48     8.50  
    Common equity tier 1 capital ratio   13.15     7.00  
    Tier 1 leverage ratio   11.16     4.00  
                 

    The ratio of tangible common equity to tangible assets(1) increased to 9.35% as of September 30, 2024, from 8.74% as of June 30, 2024, and tangible book value per share(1) increased by $0.91 to $14.55 as of September 30, 2024, when compared to June 30, 2024.

    During the third quarter of 2024, the Company did not repurchase shares of its common stock under its stock repurchase program. The Company’s Board of Directors has authorized the repurchase of up to $15 million of HBT Financial common stock under its stock repurchase program, which is in effect until January 1, 2025. As of September 30, 2024, the Company had $10.6 million remaining under the stock repurchase program.
    ____________________________________
    (1)   See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.

    About HBT Financial, Inc.

    HBT Financial, Inc., headquartered in Bloomington, Illinois, is the holding company for Heartland Bank and Trust Company, and has banking roots that can be traced back to 1920. HBT Financial provides a comprehensive suite of financial products and services to consumers, businesses, and municipal entities throughout Illinois and eastern Iowa through 66 full-service branches. As of September 30, 2024, HBT Financial had total assets of $5.0 billion, total loans of $3.4 billion, and total deposits of $4.3 billion.

    Non-GAAP Financial Measures

    Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with GAAP. These non-GAAP financial measures include net interest income (tax-equivalent basis), net interest margin (tax-equivalent basis), efficiency ratio (tax-equivalent basis), ratio of tangible common equity to tangible assets, tangible book value per share, ROATCE, adjusted net income, adjusted earnings per share, adjusted ROAA, adjusted ROAE, and adjusted ROATCE. Our management uses these non-GAAP financial measures, together with the related GAAP financial measures, in its analysis of our performance and in making business decisions. Management believes that it is a standard practice in the banking industry to present these non-GAAP financial measures, and accordingly believes that providing these measures may be useful for peer comparison purposes. These disclosures should not be viewed as substitutes for the results determined to be in accordance with GAAP; nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures in the “Reconciliation of Non-GAAP Financial Measures” tables.

    Forward-Looking Statements

    Readers should note that in addition to the historical information contained herein, this press release contains, and future oral and written statements of the Company and its management may contain, “forward-looking statements” within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “will,” “propose,” “may,” “plan,” “seek,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “continue,” or “should,” or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

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

    CONTACT:
    Peter Chapman
    HBTIR@hbtbank.com
    (309) 664-4556

    HBT Financial, Inc.
    Unaudited Consolidated Financial Summary
     
        As of or for the Three Months Ended   Nine Months Ended September 30,
    (dollars in thousands, except per share data)   September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023    		     2024       2023  
    Interest and dividend income   $ 64,117     $ 62,824     $ 59,041     $ 188,902     $ 167,588  
    Interest expense     16,384       15,796       10,762       47,453       23,600  
    Net interest income     47,733       47,028       48,279       141,449       143,988  
    Provision for credit losses     603       1,176       480       2,306       6,460  
    Net interest income after provision for credit losses     47,130       45,852       47,799       139,143       137,528  
    Noninterest income     8,705       9,610       9,490       23,941       26,841  
    Noninterest expense     31,322       30,509       30,671       93,099       100,577  
    Income before income tax expense     24,513       24,953       26,618       69,985       63,792  
    Income tax expense     6,333       6,883       6,903       18,477       16,396  
    Net income   $ 18,180     $ 18,070     $ 19,715     $ 51,508     $ 47,396  
                         
    Earnings per share – Diluted   $ 0.57     $ 0.57     $ 0.62     $ 1.62     $ 1.49  
                         
    Adjusted net income (1)   $ 19,244     $ 18,139     $ 20,279     $ 55,456     $ 58,910  
    Adjusted earnings per share – Diluted (1)     0.61       0.57       0.63       1.75       1.86  
                         
    Book value per share   $ 17.04     $ 16.14     $ 14.36          
    Tangible book value per share (1)     14.55       13.64       11.80          
                         
    Shares of common stock outstanding     31,559,366       31,559,366       31,774,140          
    Weighted average shares of common stock outstanding     31,559,366       31,579,457       31,829,250       31,600,442       31,598,650  
                         
    SUMMARY RATIOS                    
    Net interest margin *     3.98 %     3.95 %     4.07 %     3.96 %     4.14 %
    Net interest margin (tax-equivalent basis) * (1)(2)     4.03       4.00       4.13       4.01       4.20  
                         
    Efficiency ratio     54.24 %     52.61 %     51.85 %     55.00 %     57.73 %
    Efficiency ratio (tax-equivalent basis) (1)(2)     53.71       52.10       51.25       54.45       57.04  
                         
    Loan to deposit ratio     78.72 %     78.39 %     79.63 %        
                         
    Return on average assets *     1.44 %     1.45 %     1.58 %     1.37 %     1.29 %
    Return on average stockholders’ equity *     13.81       14.48       17.02       13.58       14.22  
    Return on average tangible common equity * (1)     16.25       17.21       20.70       16.11       17.17  
                         
    Adjusted return on average assets * (1)     1.53 %     1.45 %     1.62 %     1.48 %     1.61 %
    Adjusted return on average stockholders’ equity * (1)     14.62       14.54       17.51       14.62       17.68  
    Adjusted return on average tangible common equity * (1)     17.20       17.27       21.29       17.34       21.34  
                         
    CAPITAL                    
    Total capital to risk-weighted assets     16.54 %     16.01 %     15.09 %        
    Tier 1 capital to risk-weighted assets     14.48       13.98       13.18          
    Common equity tier 1 capital ratio     13.15       12.66       11.88          
    Tier 1 leverage ratio     11.16       10.83       10.34          
    Total stockholders’ equity to total assets     10.77       10.18       9.14          
    Tangible common equity to tangible assets (1)     9.35       8.74       7.64          
                         
    ASSET QUALITY                    
    Net charge-offs (recoveries) to average loans *     0.07 %     0.08 %     (0.01) %     0.04 %     (0.01) %
    Allowance for credit losses to loans, before allowance for credit losses     1.22       1.21       1.16          
    Nonperforming loans to loans, before allowance for credit losses     0.24       0.25       0.20          
    Nonperforming assets to total assets     0.17       0.17       0.16          
                                             
    *   Annualized measure.
    (1)   See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.
    (2)   On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.
     
    HBT Financial, Inc.
    Unaudited Consolidated Financial Summary
    Consolidated Statements of Income
     
      Three Months Ended   Nine Months Ended September 30,
    (dollars in thousands, except per share data) September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023    		     2024       2023  
    INTEREST AND DIVIDEND INCOME                  
    Loans, including fees:                  
    Taxable $ 53,650     $ 52,177     $ 49, 640     $ 157,753     $ 138,948  
    Federally tax exempt   1,133       1,097       1,072       3,324       3,064  
    Debt Securities:                  
    Taxable   6,453       6,315       6,402       18,972       19,460  
    Federally tax exempt   502       521       978       1,620       3,337  
    Interest-bearing deposits in bank   2,230       2,570       714       6,752       2,234  
    Other interest and dividend income   149       144       235       481       545  
    Total interest and dividend income   64,117       62,824       59,041       188,902       167,588  
    INTEREST EXPENSE                  
    Deposits   14,649       14,133       7,211       42,375       13,908  
    Securities sold under agreements to repurchase   134       129       35       415       107  
    Borrowings   119       121       2,108       365       5,594  
    Subordinated notes   470       469       470       1,409       1,409  
    Junior subordinated debentures issued to capital trusts   1,012       944       938       2,889       2,582  
    Total interest expense   16,384       15,796       10,762       47,453       23,600  
    Net interest income   47,733       47,028       48,279       141,449       143,988  
    PROVISION FOR CREDIT LOSSES   603       1,176       480       2,306       6,460  
    Net interest income after provision for credit losses   47,130       45,852       47,799       139,143       137,528  
    NONINTEREST INCOME                  
    Card income   2,753       2,885       2,763       8,254       8,326  
    Wealth management fees   2,670       2,623       2,381       7,840       6,998  
    Service charges on deposit accounts   2,081       1,902       2,040       5,852       5,830  
    Mortgage servicing   1,113       1,111       1,169       3,279       3,522  
    Mortgage servicing rights fair value adjustment   (1,488 )     (97 )     23       (1,505 )     (460 )
    Gains on sale of mortgage loans   461       443       476       1,202       1,125  
    Realized gains (losses) on sales of securities   —       —       (813 )     (3,382 )     (1,820 )
    Unrealized gains (losses) on equity securities   136       (96 )     (46 )     24       (61 )
    Gains (losses) on foreclosed assets   (44 )     (28 )     550       15       443  
    Gains (losses) on other assets   (2 )     —       52       (637 )     161  
    Income on bank owned life insurance   170       166       153       500       415  
    Other noninterest income   855       701       742       2,499       2,362  
    Total noninterest income   8,705       9,610       9,490       23,941       26,841  
    NONINTEREST EXPENSE                  
    Salaries   16,325       16,364       15,644       49,346       51,715  
    Employee benefits   2,997       2,860       2,616       8,662       7,658  
    Occupancy of bank premises   2,695       2,243       2,573       7,520       7,460  
    Furniture and equipment   446       548       667       1,544       2,135  
    Data processing   2,640       2,606       2,581       8,171       9,787  
    Marketing and customer relations   1,380       996       1,679       3,372       3,874  
    Amortization of intangible assets   710       710       720       2,130       1,950  
    FDIC insurance   572       565       512       1,697       1,705  
    Loan collection and servicing   476       475       345       1,403       971  
    Foreclosed assets   19       10       76       78       234  
    Other noninterest expense   3,062       3,132       3,258       9,176       13,088  
    Total noninterest expense   31,322       30,509       30,671       93,099       100,577  
    INCOME BEFORE INCOME TAX EXPENSE   24,513       24,953       26,618       69,985       63,792  
    INCOME TAX EXPENSE   6,333       6,883       6,903       18,477       16,396  
    NET INCOME $ 18,180     $ 18,070     $ 19,715     $ 51,508     $ 47,396  
                       
    EARNINGS PER SHARE – BASIC $ 0.58     $ 0.57     $ 0.62     $ 1.63     $ 1.50  
    EARNINGS PER SHARE – DILUTED $ 0.57     $ 0.57     $ 0.62     $ 1.62     $ 1.49  
    WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING   31,559,366       31,579,457       31,829,250       31,600,442       31,598,650  
     
    HBT Financial, Inc.
    Unaudited Consolidated Financial Summary
    Consolidated Balance Sheets
     
    (dollars in thousands) September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023
    ASSETS          
    Cash and due from banks $ 26,776     $ 22,604     $ 24,757  
    Interest-bearing deposits with banks   152,895       172,636       87,156  
    Cash and cash equivalents   179,671       195,240       111,913  
               
    Interest-bearing time deposits with banks   —       520       500  
    Debt securities available-for-sale, at fair value   710,303       669,055       753,163  
    Debt securities held-to-maturity   505,075       512,549       527,144  
    Equity securities with readily determinable fair value   3,364       3,228       3,106  
    Equity securities with no readily determinable fair value   2,638       2,613       2,300  
    Restricted stock, at cost   5,086       5,086       11,165  
    Loans held for sale   2,959       858       3,563  
               
    Loans, before allowance for credit losses   3,369,830       3,385,483       3,342,786  
    Allowance for credit losses   (40,966 )     (40,806 )     (38,863 )
    Loans, net of allowance for credit losses   3,328,864       3,344,677       3,303,923  
               
    Bank owned life insurance   24,405       24,235       23,747  
    Bank premises and equipment, net   65,919       65,711       64,713  
    Bank premises held for sale   317       317       35  
    Foreclosed assets   376       320       1,519  
    Goodwill   59,820       59,820       59,820  
    Intangible assets, net   18,552       19,262       21,402  
    Mortgage servicing rights, at fair value   17,496       18,984       20,156  
    Investments in unconsolidated subsidiaries   1,614       1,614       1,614  
    Accrued interest receivable   24,160       22,425       23,447  
    Other assets   40,109       59,685       58,538  
    Total assets $ 4,990,728     $ 5,006,199     $ 4,991,768  
               
    LIABILITIES AND STOCKHOLDERS’ EQUITY          
    Liabilities          
    Deposits:          
    Noninterest-bearing $ 1,008,359     $ 1,045,697     $ 1,086,877  
    Interest-bearing   3,272,341       3,272,996       3,111,191  
    Total deposits   4,280,700       4,318,693       4,198,068  
               
    Securities sold under agreements to repurchase   29,029       29,330       28,900  
    Federal Home Loan Bank advances   13,435       13,734       177,650  
    Subordinated notes   39,533       39,514       39,454  
    Junior subordinated debentures issued to capital trusts   52,834       52,819       52,774  
    Other liabilities   37,535       42,640       38,671  
    Total liabilities   4,453,066       4,496,730       4,535,517  
               
    Stockholders’ Equity          
    Common stock   328       328       327  
    Surplus   296,810       296,430       295,483  
    Retained earnings   302,532       290,386       256,050  
    Accumulated other comprehensive income (loss)   (38,989 )     (54,656 )     (78,432 )
    Treasury stock at cost   (23,019 )     (23,019 )     (17,177 )
    Total stockholders’ equity   537,662       509,469       456,251  
    Total liabilities and stockholders’ equity $ 4,990,728     $ 5,006,199     $ 4,991,768  
    SHARES OF COMMON STOCK OUTSTANDING   31,559,366       31,559,366       31,774,140  
     
    HBT Financial, Inc.
    Unaudited Consolidated Financial Summary
     
    (dollars in thousands) September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023
               
    LOANS          
    Commercial and industrial $ 395,598   $ 400,276   $ 386,933  
    Commercial real estate – owner occupied   288,838     289,992     297,242  
    Commercial real estate – non-owner occupied   889,188     889,193     901,929  
    Construction and land development   359,151     365,371     371,158  
    Multi-family   432,712     429,951     388,742  
    One-to-four family residential   472,040     484,335     488,655  
    Agricultural and farmland   297,102     285,822     275,239  
    Municipal, consumer, and other   235,201     240,543     232,888  
    Total loans $ 3,369,830   $ 3,385,483   $ 3,342,786  
     
    (dollars in thousands) September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023
               
    DEPOSITS          
    Noninterest-bearing deposits $ 1,008,359   $ 1,045,697   $ 1,086,877  
    Interest-bearing deposits:          
    Interest-bearing demand   1,076,445     1,094,797     1,134,721  
    Money market   795,150     769,386     673,780  
    Savings   566,783     582,752     623,083  
    Time   803,964     796,069     564,634  
    Brokered   29,999     29,992     114,973  
    Total interest-bearing deposits   3,272,341     3,272,996     3,111,191  
    Total deposits $ 4,280,700   $ 4,318,693   $ 4,198,068  
     
    HBT Financial, Inc.
    Unaudited Consolidated Financial Summary
     
      Three Months Ended
      September 30, 2024   June 30, 2024   September 30, 2023
    (dollars in thousands) Average Balance   Interest   Yield/Cost *   Average Balance   Interest   Yield/Cost *   Average Balance   Interest   Yield/Cost *
                                       
    ASSETS                                  
    Loans $ 3,379,299     $ 54,783   6.45 %   $ 3,374,058     $ 53,274   6.35 %   $ 3,296,703     $ 50,712   6.10 %
    Debt Securities   1,191,642       6,955   2.32       1,187,795       6,836   2.31       1,317,603       7,380   2.22  
    Deposits with banks   185,870       2,230   4.77       211,117       2,570   4.90       77,595       714   3.65  
    Other   12,660       149   4.68       12,588       144   4.60       16,430       235   5.68  
    Total interest-earning assets   4,769,471     $ 64,117   5.35 %     4,785,558     $ 62,824   5.28 %     4,708,331     $ 59,041   4.97 %
    Allowance for credit losses   (40,780 )             (40,814 )             (38,317 )        
    Noninterest-earning assets   278,030               283,103               294,818          
    Total assets $ 5,006,721             $ 5,027,847             $ 4,964,832          
                                       
    LIABILITIES AND STOCKHOLDERS’ EQUITY                                  
    Liabilities                                  
    Interest-bearing deposits:                                  
    Interest-bearing demand $ 1,085,609     $ 1,408   0.52 %   $ 1,123,592     $ 1,429   0.51 %   $ 1,160,654     $ 761   0.26 %
    Money market   800,651       4,726   2.35       788,744       4,670   2.38       682,772       2,026   1.18  
    Savings   573,077       396   0.27       592,312       393   0.27       639,384       249   0.15  
    Time   804,379       7,702   3.81       763,507       7,117   3.75       519,683       3,275   2.50  
    Brokered   29,996       417   5.54       38,213       524   5.51       66,776       900   5.34  
    Total interest-bearing deposits   3,293,712       14,649   1.77       3,306,368       14,133   1.72       3,069,269       7,211   0.93  
    Securities sold under agreements to repurchase   29,426       134   1.80       30,440       129   1.70       33,807       35   0.41  
    Borrowings   13,691       119   3.47       13,466       121   3.60       157,908       2,108   5.30  
    Subordinated notes   39,524       470   4.73       39,504       469   4.78       39,444       470   4.72  
    Junior subordinated debentures issued to capital trusts   52,827       1,012   7.63       52,812       944   7.18       52,767       938   7.05  
    Total interest-bearing liabilities   3,429,180     $ 16,384   1.90 %     3,442,590     $ 15,796   1.85 %     3,353,195     $ 10,762   1.27 %
    Noninterest-bearing deposits   1,013,893               1,043,614               1,105,472          
    Noninterest-bearing liabilities   39,903               39,806               46,564          
    Total liabilities   4,482,976               4,526,010               4,505,231          
    Stockholders’ Equity   523,745               501,837               459,601          
    Total liabilities and stockholders’ equity $ 5,006,721             $ 5,027,847             $ 4,964,832          
                                       
    Net interest income/Net interest margin (1)     $ 47,733   3.98 %       $ 47,028   3.95 %       $ 48,279   4.07 %
    Tax-equivalent adjustment (2)       552   0.05           553   0.05           675   0.06  
    Net interest income (tax-equivalent basis)/
    Net interest margin (tax-equivalent basis) (2) (3)    		     $ 48,285   4.03 %       $ 47,581   4.00 %       $ 48,954   4.13 %
    Net interest rate spread (4)         3.45 %           3.43 %           3.70 %
    Net interest-earning assets (5) $ 1,340,291             $ 1,342,968             $ 1,355,136          
    Ratio of interest-earning assets to interest-bearing liabilities   1.39               1.39               1.40          
    Cost of total deposits         1.35 %           1.31 %           0.69 %
    Cost of funds         1.47             1.42             0.96  
                                                               
    *   Annualized measure.
    (1)   Net interest margin represents net interest income divided by average total interest-earning assets.
    (2)   On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
    (3)   See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.
    (4)   Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
    (5)   Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.
     
    HBT Financial, Inc.
    Unaudited Consolidated Financial Summary
     
      Nine Months Ended
      September 30, 2024   September 30, 2023
    (dollars in thousands) Average Balance   Interest   Yield/Cost *   Average Balance   Interest   Yield/Cost *
                           
    ASSETS                      
    Loans $ 3,374,875     $ 161,077   6.38 %   $ 3,183,641     $ 142,012   5.96 %
    Debt Securities   1,197,772       20,592   2.30       1,366,298       22,797   2.23  
    Deposits with banks   188,087       6,752   4.80       84,720       2,234   3.53  
    Other   12,744       481   5.04       15,334       545   4.75  
    Total interest-earning assets   4,773,478     $ 188,902   5.29 %     4,649,993     $ 167,588   4.82 %
    Allowance for credit losses   (40,611 )             (37,053 )        
    Noninterest-earning assets   279,789               289,843          
    Total assets $ 5,012,656             $ 4,902,783          
                           
    LIABILITIES AND STOCKHOLDERS’ EQUITY                      
    Liabilities                      
    Interest-bearing deposits:                      
    Interest-bearing demand $ 1,112,198     $ 4,148   0.50 %   $ 1,204,937     $ 1,902   0.21 %
    Money market   800,693       14,193   2.37       664,036       4,467   0.90  
    Savings   592,134       1,232   0.28       678,495       616   0.12  
    Time   744,349       20,744   3.72       441,760       6,011   1.82  
    Brokered   50,046       2,058   5.49       22,987       912   5.30  
    Total interest-bearing deposits   3,299,420       42,375   1.72       3,012,215       13,908   0.62  
    Securities sold under agreements to repurchase   30,769       415   1.80       35,844       107   0.40  
    Borrowings   13,387       365   3.64       148,443       5,594   5.04  
    Subordinated notes   39,504       1,409   4.76       39,424       1,409   4.78  
    Junior subordinated debentures issued to capital trusts   52,812       2,889   7.31       51,054       2,582   6.76  
    Total interest-bearing liabilities   3,435,892     $ 47,453   1.84 %     3,286,980     $ 23,600   0.96 %
    Noninterest-bearing deposits   1,031,239               1,123,917          
    Noninterest-bearing liabilities   38,943               46,310          
    Total liabilities   4,506,074               4,457,207          
    Stockholders’ Equity   506,582               445,576          
    Total liabilities and stockholders’ equity $ 5,012,656               4,902,783          
                           
    Net interest income/Net interest margin (1)     $ 141,449   3.96 %       $ 143,988   4.14 %
    Tax-equivalent adjustment (2)       1,680   0.05           2,092   0.06  
    Net interest income (tax-equivalent basis)/
    Net interest margin (tax-equivalent basis) (2) (3)    		     $ 143,129   4.01 %       $ 146,080   4.20 %
    Net interest rate spread (4)         3.45 %           3.86 %
    Net interest-earning assets (5) $ 1,337,586             $ 1,363,013          
    Ratio of interest-earning assets to interest-bearing liabilities   1.39               1.41          
    Cost of total deposits         1.31 %           0.45 %
    Cost of funds         1.42             0.72  
                               
    *   Annualized measure.
    (1)   Net interest margin represents net interest income divided by average total interest-earning assets.
    (2)   On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
    (3)   See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.
    (4)   Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
    (5)   Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.
     
    HBT Financial, Inc.
    Unaudited Consolidated Financial Summary
     
    (dollars in thousands) September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023
               
    NONPERFORMING ASSETS          
    Nonaccrual $ 8,200     $ 8,425     $ 6,678  
    Past due 90 days or more, still accruing   5       7       —  
    Total nonperforming loans   8,205       8,432       6,678  
    Foreclosed assets   376       320       1,519  
    Total nonperforming assets $ 8,581     $ 8,752     $ 8,197  
               
    Nonperforming loans that are wholly or partially guaranteed by the U.S. Government $ 2,046     $ 2,132     $ 1,968  
               
    Allowance for credit losses $ 40,966     $ 40,806     $ 38,863  
    Loans, before allowance for credit losses   3,369,830       3,385,483       3,342,786  
               
    CREDIT QUALITY RATIOS          
    Allowance for credit losses to loans, before allowance for credit losses   1.22 %     1.21 %     1.16 %
    Allowance for credit losses to nonaccrual loans   499.59       484.34       581.96  
    Allowance for credit losses to nonperforming loans   499.28       483.94       581.96  
    Nonaccrual loans to loans, before allowance for credit losses   0.24       0.25       0.20  
    Nonperforming loans to loans, before allowance for credit losses   0.24       0.25       0.20  
    Nonperforming assets to total assets   0.17       0.17       0.16  
    Nonperforming assets to loans, before allowance for credit losses, and foreclosed assets   0.25       0.26       0.25  
                           
    HBT Financial, Inc.
    Unaudited Consolidated Financial Summary
     
      Three Months Ended   Nine Months Ended
    September 30,
    (dollars in thousands) September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023    		     2024       2023  
                       
    ALLOWANCE FOR CREDIT LOSSES                  
    Beginning balance $ 40,806     $ 40,815     $ 37,814     $ 40,048     $ 25,333  
    Adoption of ASC 326   —       —       —       —       6,983  
    PCD allowance established in acquisition   —       —       —       —       1,247  
    Provision for credit losses   746       677       983       1,983       5,004  
    Charge-offs   (1,101 )     (870 )     (412 )     (2,198 )     (733 )
    Recoveries   515       184       478       1,133       1,029  
    Ending balance $ 40,966     $ 40,806     $ 38,863     $ 40,966     $ 38,863  
                       
    Net charge-offs (recoveries) $ 586     $ 686     $ (66 )   $ 1,065     $ (296 )
    Average loans   3,379,299       3,374,058       3,296,703       3,374,875       3,183,641  
                       
    Net charge-offs (recoveries) to average loans *   0.07 %     0.08 %     (0.01) %     0.04 %     (0.01) %
                                   
    *   Annualized measure.                              
                                   
      Three Months Ended   Nine Months Ended
    September 30,
    (dollars in thousands) September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023    		     2024     2023  
                       
    PROVISION FOR CREDIT LOSSES                  
    Loans (1) $ 746     $ 677   $ 983     $ 1,983   $ 5,004  
    Unfunded lending-related commitments (1)   (143 )     499     297       323     1,456  
    Debt securities   —       —     (800 )     —     —  
    Total provision for credit losses $ 603     $ 1,176   $ 480     $ 2,306   $ 6,460  
                                       
    (1)   Includes recognition of an allowance for credit losses on non-PCD loans of $5.2 million and an allowance for credit losses on unfunded commitments of $0.7 million in connection with the Town and Country merger during the first quarter of 2023.
                                       
    Reconciliation of Non-GAAP Financial Measures –
    Adjusted Net Income and Adjusted Return on Average Assets
        Three Months Ended   Nine Months Ended
    September 30,
    (dollars in thousands)   September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023    		     2024       2023  
                         
    Net income   $ 18,180     $ 18,070     $ 19,715     $ 51,508     $ 47,396  
    Adjustments:                    
    Acquisition expenses (1)     —       —       —       —       (13,691 )
    Gains (losses) on closed branch premises     —       —       —       (635 )     75  
    Realized gains (losses) on sales of securities     —       —       (813 )     (3,382 )     (1,820 )
    Mortgage servicing rights fair value adjustment     (1,488 )     (97 )     23       (1,505 )     (460 )
    Total adjustments     (1,488 )     (97 )     (790 )     (5,522 )     (15,896 )
    Tax effect of adjustments (2)     424       28       226       1,574       4,382  
    Total adjustments after tax effect     (1,064 )     (69 )     (564 )     (3,948 )     (11,514 )
    Adjusted net income   $ 19,244     $ 18,139     $ 20,279     $ 55,456     $ 58,910  
                         
    Average assets   $ 5,006,721     $ 5,027,847     $ 4,964,832     $ 5,012,656     $ 4,902,783  
                         
    Return on average assets *     1.44 %     1.45 %     1.58 %     1.37 %     1.29 %
    Adjusted return on average assets *     1.53       1.45       1.62       1.48       1.61  
                                             
    *   Annualized measure.
    (1)   Includes recognition of an allowance for credit losses on non-PCD loans of $5.2 million and an allowance for credit losses on unfunded commitments of $0.7 million in connection with the Town and Country merger during the first quarter of 2023.
    (2)   Assumes a federal income tax rate of 21% and a state tax rate of 9.5%.
     
    Reconciliation of Non-GAAP Financial Measures –
    Adjusted Earnings Per Share — Basic and Diluted
        Three Months Ended   Nine Months Ended
    September 30,
    (dollars in thousands, except per share amounts)   September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023    		     2024     2023  
                         
    Numerator:                    
    Net income   $ 18,180   $ 18,070   $ 19,715     $ 51,508   $ 47,396  
    Earnings allocated to participating securities (1)     —     —     (10 )     —     (26 )
    Numerator for earnings per share – basic and diluted   $ 18,180   $ 18,070   $ 19,705     $ 51,508   $ 47,370  
                         
    Adjusted net income   $ 19,244   $ 18,139   $ 20,279     $ 55,456   $ 58,910  
    Earnings allocated to participating securities (1)     —     —     (10 )     —     (33 )
    Numerator for adjusted earnings per share – basic and diluted   $ 19,244   $ 18,139   $ 20,269     $ 55,456   $ 58,877  
                         
    Denominator:                    
    Weighted average common shares outstanding     31,559,366     31,579,457     31,829,250       31,600,442     31,598,650  
    Dilutive effect of outstanding restricted stock units     118,180     87,354     137,187       115,266     102,574  
    Weighted average common shares outstanding, including all dilutive potential shares     31,677,546     31,666,811     31,966,437       31,715,708     31,701,224  
                         
    Earnings per share – Basic   $ 0.58   $ 0.57   $ 0.62     $ 1.63   $ 1.50  
    Earnings per share – Diluted   $ 0.57   $ 0.57   $ 0.62     $ 1.62   $ 1.49  
                         
    Adjusted earnings per share – Basic   $ 0.61   $ 0.57   $ 0.64     $ 1.75   $ 1.86  
    Adjusted earnings per share – Diluted   $ 0.61   $ 0.57   $ 0.63     $ 1.75   $ 1.86  
                                       
    (1)    The Company previously granted restricted stock units that contain non-forfeitable rights to dividend equivalents, which were considered participating securities. Prior to 2024, these restricted stock units were included in the calculation of basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings.
     
    Reconciliation of Non-GAAP Financial Measures –
    Net Interest Income (Tax-equivalent Basis) and Net Interest Margin (Tax-equivalent Basis)
        Three Months Ended   Nine Months Ended
    September 30,
    (dollars in thousands)   September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023    		     2024       2023  
                         
    Net interest income (tax-equivalent basis)                    
    Net interest income   $ 47,733     $ 47,028     $ 48,279     $ 141,449     $ 143,988  
    Tax-equivalent adjustment (1)     552       553       675       1,680       2,092  
    Net interest income (tax-equivalent basis) (1)   $ 48,285     $ 47,581     $ 48,954     $ 143,129     $ 146,080  
                         
    Net interest margin (tax-equivalent basis)                    
    Net interest margin *     3.98 %     3.95 %     4.07 %     3.96 %     4.14 %
    Tax-equivalent adjustment * (1)     0.05       0.05       0.06       0.05       0.06  
    Net interest margin (tax-equivalent basis) * (1)     4.03 %     4.00 %     4.13 %     4.01 %     4.20 %
                         
    Average interest-earning assets   $ 4,769,471     $ 4,785,558     $ 4,708,331     $ 4,773,478     $ 4,649,993  
                                             
    *   Annualized measure.
    (1)   On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.
     
    Reconciliation of Non-GAAP Financial Measures –
    Efficiency Ratio (Tax-equivalent Basis)
        Three Months Ended   Nine Months Ended
    September 30,
    (dollars in thousands)   September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023    		     2024       2023  
                         
    Efficiency ratio (tax-equivalent basis)                    
    Total noninterest expense   $ 31,322     $ 30,509     $ 30,671     $ 93,099     $ 100,577  
    Less: amortization of intangible assets     710       710       720       2,130       1,950  
    Noninterest expense excluding amortization of intangible assets   $ 30,612     $ 29,799     $ 29,951     $ 90,969     $ 98,627  
                         
    Net interest income   $ 47,733     $ 47,028     $ 48,279     $ 141,449     $ 143,988  
    Total noninterest income     8,705       9,610       9,490       23,941       26,841  
    Operating revenue     56,438       56,638       57,769       165,390       170,829  
    Tax-equivalent adjustment (1)     552       553       675       1,680       2,092  
    Operating revenue (tax-equivalent basis) (1)   $ 56,990     $ 57,191     $ 58,444     $ 167,070     $ 172,921  
                         
    Efficiency ratio     54.24 %     52.61 %     51.85 %     55.00 %     57.73 %
    Efficiency ratio (tax-equivalent basis) (1)     53.71       52.10       51.25       54.45       57.04  
                                             
    (1)    On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.
     
    Reconciliation of Non-GAAP Financial Measures –
    Ratio of Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share
    (dollars in thousands, except per share data)   September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023
                 
    Tangible Common Equity            
    Total stockholders’ equity   $ 537,662     $ 509,469     $ 456,251  
    Less: Goodwill     59,820       59,820       59,820  
    Less: Intangible assets, net     18,552       19,262       21,402  
    Tangible common equity   $ 459,290     $ 430,387     $ 375,029  
                 
    Tangible Assets            
    Total assets   $ 4,990,728     $ 5,006,199     $ 4,991,768  
    Less: Goodwill     59,820       59,820       59,820  
    Less: Intangible assets, net     18,552       19,262       21,402  
    Tangible assets   $ 4,912,356     $ 4,927,117     $ 4,910,546  
                 
    Total stockholders’ equity to total assets     10.77 %     10.18 %     9.14 %
    Tangible common equity to tangible assets     9.35       8.74       7.64  
                 
    Shares of common stock outstanding     31,559,366       31,559,366       31,774,140  
                 
    Book value per share   $ 17.04     $ 16.14     $ 14.36  
    Tangible book value per share     14.55       13.64       11.80  
                             
    Reconciliation of Non-GAAP Financial Measures –
    Return on Average Tangible Common Equity,
    Adjusted Return on Average Stockholders’ Equity and Adjusted Return on Average Tangible Common Equity
             
        Three Months Ended   Nine Months Ended
    September 30,
    (dollars in thousands)   September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023    		     2024       2023  
                         
    Average Tangible Common Equity                    
    Total stockholders’ equity   $ 523,745     $ 501,837     $ 459,601     $ 506,582     $ 445,576  
    Less: Goodwill     59,820       59,820       59,875       59,820       56,406  
    Less: Intangible assets, net     18,892       19,605       21,793       19,607       20,005  
    Average tangible common equity   $ 445,033     $ 422,412     $ 377,933     $ 427,155     $ 369,165  
                         
    Net income   $ 18,180     $ 18,070     $ 19,715     $ 51,508     $ 47,396  
    Adjusted net income     19,244       18,139       20,279       55,456       58,910  
                         
    Return on average stockholders’ equity *     13.81 %     14.48 %     17.02 %     13.58 %     14.22 %
    Return on average tangible common equity *     16.25       17.21       20.70       16.11       17.17  
                         
    Adjusted return on average stockholders’ equity *     14.62 %     14.54 %     17.51 %     14.62 %     17.68 %
    Adjusted return on average tangible common equity *     17.20       17.27       21.29       17.34       21.34  
                                             
    *   Annualized measure.
     

    The MIL Network –

  • MIL-OSI USA: Agriculture Contributes $4 Billion to CT Economy, Report Shows

    Source: US State of Connecticut

    A new report highlights the economic contributions of Connecticut’s agricultural sector, including $4 billion to the state economy and providing 31,000 jobs.

    “The numbers are significant and it’s important to recognize [agriculture’s] proper placement in the state economy,” says Rigoberto Lopez, professor of agricultural and resource economics.

    The report was a collaborative effort between the College of Agriculture, Health and Natural Resources (CAHNR), the Connecticut Department of Agriculture, Farm Credit East, and the Connecticut Center for Economic Analysis (CCEA). Authors include Lopez; Tessa Getchis, aquaculture extension specialist for Connecticut Sea Grant and UConn Extension; Danielle Duquette ‘24 (CAHNR); Christopher Laughton, director of knowledge exchange at Farm Credit East; Peter Gunter, senior research fellow at CCEA; and Fred Carstensen, director of CCEA and UConn professor of finance.

    “Even in a relatively small, fairly urban state, agriculture contributes approximately $4 billion to the economy, and supports 31,000 jobs, on and off the farm,” Laughton says. “In addition, agriculture provides significant ecosystem services and preserves the state’s working landscape – contributions that can’t be readily quantified. No matter how you measure it – agriculture matters to Connecticut.”

    The report demonstrates that, despite challenges posed by climate change and the COVID-19 pandemic, the agriculture sector continues to grow.

    “This economic impact report serves as a vital benchmark, revealing the profound significance of agriculture – not just as a source of sustenance, but as a cornerstone of economic vitality, community resilience, and sustainable growth,” says Agriculture Commissioner Bryan P. Hurlburt. “Building upon strong partnerships and collaboration, this data serve as a compass, guiding our programs and services at the agency to create a runway for future success through innovative solutions and the diversification of agriculture.”

    The fastest-growing industries in Connecticut are its greenhouse operations and value-added products, like dairy and meat processing.

    Connecticut does not compete with large agricultural states, like those in the Midwest, in terms of big crops like wheat or corn. Instead, most of the state’s agriculture focuses on what are considered “specialty crops” by the FDA like vegetables, fruit, and melons, as well as ornamental crops.

    The state also has a robust aquatic farming industry which contributed $33.5 million and 500 jobs in 2022 according to the report.

    “The industry produces a wide spectrum of products including oysters, clams, fish, kelp, aquatic plants, and corals, among others,” Getchis says. “Connecticut has a long history of shellfish production dating back centuries and is in fact today one of the leading producers on the U.S. East Coast.”

    While the report highlights the economic benefits of the agricultural sector for the state, Lopez emphasizes it does not capture all the benefits the industry provides to the state including social factors. For example, farms in the state provide residents with access to local foods and events like farmer’s markets provide spaces for communities to gather.

    “Residents can play an important role in preserving and supporting agriculture in Connecticut,” Lopez says.

    At a recent press event to unveil the report, UConn officials underscored the value of the impact report and UConn’s role in helping Connecticut’s agricultural sectors to grow.

    “Agriculture is part of the past, present, and future of Connecticut and its flagship university, UConn,” says CAHNR Dean Indrajeet Chaubey. “We’re committed to fueling the state’s economic engine, supporting agricultural industries, and preparing future leaders through specialized academic programs.”

    This work relates to CAHNR’s Strategic Vision area focused on Ensuring a Vibrant and Sustainable Agricultural Industry and Food Supply.

    Follow UConn CAHNR on social media

    MIL OSI USA News –

  • MIL-OSI: Sophos to Acquire Secureworks to Accelerate Cybersecurity Services and Technology for Organizations Worldwide

    Source: GlobeNewswire (MIL-OSI)

    News Summary

    • Secureworks shareholders to receive $8.50 per share in cash
    • Sophos intends to integrate solutions from both companies into a broader and stronger security portfolio for all small, mid- and enterprise customers
    • By combining complementary AI-driven security platforms powered by automated prevention, detection and response, the two organizations can deliver advanced solutions for defeating modern, persistent adversaries even faster
    • The deal is expected to strengthen the security community by bringing together two industry leaders with shared mission-driven cultures

    OXFORD, United Kingdom and ATLANTA, Oct. 21, 2024 (GLOBE NEWSWIRE) — Sophos and Secureworks® (NASDAQ:SCWX), two global leaders of innovative security solutions for defeating cyberattacks, today announced a definitive agreement for Sophos to acquire Secureworks. The all-cash transaction is valued at approximately $859 million. Sophos is backed by Thoma Bravo, a leading software investment firm.

    Sophos’ experience and reputation as a leading provider of managed security services and end-to-end security products, combined with Secureworks’ security operations expertise transformed into the Taegis™ platform, is expected to further deliver complementary advanced MDR and XDR solutions for the benefit of their global customer bases. Together, they will help strengthen the resilience and security posture of global organizations of any size with a combination of security controls, AI, world-class threat intelligence, and two teams with decades of cybersecurity expertise.

    Sophos expects to integrate solutions from both companies into a broader and stronger security portfolio benefiting small, mid- and enterprise customers. This includes Sophos expanding its current portfolio with other new offerings like identity detection and response (ITDR), next-gen SIEM capabilities, operational technology (OT) security, and enhanced vulnerability risk prioritization. As two partner-centric organizations, the combination of Sophos and Secureworks will enable the combined company to expand its market presence to create greater value within the channel and strengthen the overall security community.

    “Secureworks offers an innovative, market-leading solution with their Taegis XDR platform. Combined with our security solutions and industry leadership in MDR, we will strengthen our collective position in the market and provide better outcomes for organizations of all sizes globally,” said Joe Levy, CEO of Sophos. “Secureworks’ renowned expertise in cybersecurity perfectly aligns with our mission to protect businesses from cybercrime by delivering powerful and intuitive products and services. This acquisition represents a significant step forward in our commitment to building a safer digital future for all.”

    Cyber risk continues to escalate, driven by a rampant cybercriminal ecosystem and global geopolitical pressures. Combined, Sophos and Secureworks share a long history of having exceptional threat intelligence, security operations, incident response, and innovative security product capabilities that help organizations defeat these adversaries.

    “Our mission at Secureworks has always been to secure human progress. Sophos’ portfolio of leading endpoint, cloud, and network security solutions – in combination with our XDR-powered managed detection and response – is exactly what organizations are looking for to strengthen their security posture and collectively turn the tide against the adversary,” said Wendy Thomas, CEO, Secureworks. “As Joe and I both believe, this transaction will strengthen our go-to-market offering with Sophos’ global scale, expertise and reputation.”

    Transaction Details
    Under the terms of the agreement, Sophos intends to acquire Secureworks in an all-cash transaction valued at $859 million. Secureworks shareholders, including Dell Technologies (NYSE:DELL), will receive $8.50 per share in cash. This represents a 28% premium to the unaffected 90-day volume-weighted average price (VWAP). The transaction is expected to close in early 2025, subject to customary closing conditions. Additional information regarding this announcement can be found in the Form 8-K filed by Secureworks with the United States Securities and Exchange Commission (SEC) on Oct. 21, 2024.

    Kirkland & Ellis LLP is acting as legal counsel to Sophos and Goldman Sachs & Co. LLC., Barclays, BofA Securities, HSBC Securities (USA) Inc. and UBS Investment Bank are acting as financial advisors and providing debt financing for the transaction. Piper Sandler & Company and Morgan Stanley & Co. LLC are acting as financial advisors to Secureworks and Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal counsel.

    About Sophos
    Sophos is a global leader and innovator of advanced security solutions for defeating cyberattacks, including Managed Detection and Response (MDR) and incident response services and a broad portfolio of endpoint, network, email, and cloud security technologies. As one of the largest pure-play cybersecurity providers, Sophos defends more than 600,000 organizations and more than 100 million users worldwide from active adversaries, ransomware, phishing, malware, and more. Sophos’ services and products connect through the Sophos Central management console and are powered by Sophos X-Ops, the company’s cross-domain threat intelligence unit. Sophos X-Ops intelligence optimizes the entire Sophos Adaptive Cybersecurity Ecosystem, which includes a centralized data lake that leverages a rich set of open APIs available to customers, partners, developers, and other cybersecurity and information technology vendors. Sophos provides cybersecurity-as-a-service to organizations needing fully managed security solutions. Customers can also manage their cybersecurity directly with Sophos’ security operations platform or use a hybrid approach by supplementing their in-house teams with Sophos’ services, including threat hunting and remediation. Sophos sells through reseller partners and managed service providers (MSPs) worldwide. Sophos is headquartered in Oxford, U.K. More information is available at http://www.sophos.com.

    About Secureworks
    Secureworks (NASDAQ: SCWX) is a global cybersecurity leader that secures human progress with Secureworks® Taegis™, a SaaS-based, open XDR platform built on 20+ years of real-world detection data, security operations expertise, and threat intelligence and research. Taegis is embedded in the security operations of thousands of organizations around the world who use its advanced, AI-driven capabilities to detect advanced threats, streamline and collaborate on investigations, and automate the right actions.

    Connect with Secureworks via LinkedIn and Facebook or Read the Secureworks Blog

    Cautionary Statement Regarding Forward-Looking Statements

    This communication includes certain disclosures which contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to those statements related to the merger of the wholly-owned subsidiary of Sophos, Inc., a Massachusetts corporation (“Parent”) with and into SecureWorks Corp. (the “Company”), with the Company continuing as the surviving corporation and becoming a wholly-owned subsidiary of Parent (the “Merger”), including financial estimates and statements as to the expected timing, completion and effects of the Merger, including the delisting from NASDAQ and deregistration under the Exchange Act the timing of the foregoing. In most cases, you can identify these statements by forward-looking words such as “anticipate,” “believe,” “confidence,” “could,” “estimate,” “expect,” “guidance,” “intend,” “may,” “plan,” “potential,” “outlook,” “should,” and “would,” or similar words or expressions that refer to future events or outcomes. These forward-looking statements, including statements regarding the Merger, are based largely on information currently available to our management and our management’s current expectations and assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from historical results or those expressed or implied by such forward-looking statements. Although we believe our expectations are based on reasonable estimates and assumptions, they are not guarantees of performance. There is no assurance that our expectations will occur or that our estimates or assumptions will be correct, and we caution investors and all others not to place undue reliance on such forward-looking statements.

    Important factors, risks and uncertainties that could cause actual results to differ materially from such plans, estimates or expectations include but are not limited to: (i) the completion of the Merger on the anticipated terms and timing, including obtaining regulatory approvals, and the satisfaction of other conditions to the completion of the Merger; (ii) potential litigation relating to the Merger that could be instituted against the Company or its directors, managers or officers, including the effects of any outcomes related thereto; (iii) the risk that disruptions from the Merger (including the ability of certain customers to terminate or amend contracts upon a change of control) will harm the Company’s business, including current plans and operations, including during the pendency of the Merger; (iv) the ability of the Company to retain and hire key personnel, including those with extensive information security expertise; (v) the diversion of management’s time and attention from ordinary course business operations to completion of the proposed transaction and integration matters; (vi) potential adverse reactions or changes to business relationships resulting from the announcement or completion of the Merger; (vii) legislative, regulatory and economic developments; (viii) potential business uncertainty, including changes to existing business relationships, during the pendency of the Merger that could affect the Company’s financial performance; (ix) certain restrictions during the pendency of the Merger that may impact the Company’s ability to pursue certain business opportunities or strategic transactions; (x) unpredictability and severity of catastrophic events, including but not limited to acts of terrorism, outbreaks of war or hostilities or the COVID-19 pandemic and other public health issues, as well as management’s response to any of the aforementioned factors; (xi) the impact of inflation, rising interest rates, and global conflicts, including disruptions in European economies as a result of the Ukrainian/Russian conflict and the ongoing conflicts in the Middle East, the relationship between China and Taiwan and ongoing trade disputes between the United States and China; (xii) the possibility that the Merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (xiii) the ability to obtain the necessary financing arrangements set forth in the commitment letter received in connection with the Merger; (xiv) the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger, including in circumstances requiring the Company to pay a termination fee; (xv) the risk that the Company’s stock price may decline significantly if the Merger is not consummated; (xvi) there may be liabilities that are not known, probable or estimable at this time or unexpected costs, charges or expenses; (xvii) those risks and uncertainties set forth under the headings “Cautionary Note Regarding Forward Looking Statements” and “Risk Factors” in the Company’s most recent Annual Report on Form 10-K, as such risk factors may be amended, supplemented or superseded from time to time by other reports filed by the Company with the Securities and Exchange Commission (the “SEC”) from time to time, which are available via the SEC’s website at http://www.sec.gov; and (xviii) those risks that will be described in the information statement that will be filed with the SEC and available from the sources indicated below.

    These risks, as well as other risks associated with the Merger, will be more fully discussed in the information statement that will be filed with the SEC in connection with the Merger. There can be no assurance that the Merger will be completed, or if it is completed, that it will close within the anticipated time period. These factors should not be construed as exhaustive and should be read in conjunction with the other forward-looking statements. The forward-looking statements relate only to events as of the date on which the statements are made. The Company does not undertake to update, and expressly disclaims any obligation to update, any of its forward-looking statements, whether resulting from circumstances or events that arise after the date the statements are made, new information, or otherwise. If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from what we may have expressed or implied by these forward-looking statements. We caution that you should not place undue reliance on any of our forward-looking statements. You should specifically consider the factors identified in this communication that could cause actual results to differ. Furthermore, new risks and uncertainties arise from time to time, and it is impossible for us to predict those events or how they may affect the Company.

    Important Additional Information and Where to Find It

    This communication is being made in connection with the pending Merger. The Company plans to file an information statement on Schedule 14C for its stockholders with respect to the Merger. The information statement will be mailed to stockholders of the Company. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. STOCKHOLDERS ARE URGED TO READ THE INFORMATION STATEMENT AND ANY OTHER DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGER. Stockholders will be able to obtain, free of charge, copies of such documents filed by the Company when filed with the SEC in connection with the Merger at the SEC’s website (http://www.sec.gov). In addition, the Company’s stockholders will be able to obtain, free of charge, copies of such documents filed by the Company at the Company’s website (investors.secureworks.com) or by e-mailing the Company’s Investor Relations department at investorrelations@secureworks.com. Alternatively, these documents, when available, can be obtained free of charge from the Company upon written request by mail to SecureWorks Corp., Investor Relations, One Concourse Parkway NE, Suite 500, Atlanta, Georgia 30328.

    Press Contacts
    Susie Evershed
    press@secureworks.com

    Kelly Kane
    Kelly.Kane@sophos.com

    The MIL Network –

  • MIL-OSI Global: More kids than ever need special education, but burnout has caused a teacher shortage

    Source: The Conversation – USA – By Kimber Wilkerson, Professor of Special Education, University of Wisconsin-Madison

    Many special education teachers quit after less than five years on the job. 10’000 Hours/Digital Vision via Getty Images

    A growing number of students in public schools – right now, about 15% of them – are eligible for special education services. These services include specially designed instruction for students with autism, learning or physical disabilities, or traumatic brain injuries. But going into the current school year, more than half of U.S. public schools anticipate being short-staffed in special education. Dr. Kimber Wilkerson, a professor of special education and department chair at the University of Wisconsin-Madison, explains why there’s a shortage and what needs to be done to close the gap.

    Dr. Kimber Wilkerson discusses the special education teacher shortage.

    The Conversation has collaborated with SciLine to bring you highlights from the discussion, which have been edited for brevity and clarity.

    Which students receive special education services?

    Kimber Wilkerson: Students with a disability label receive special education services. They need these additional services and sometimes instruction in school so they can access the curriculum and thrive like their peers.

    What is happening with staffing for special education?

    Wilkerson: Since special education became a thing in the ’70s, there have always been challenges in filling all the special education positions.

    In the past 10 years preceding the COVID-19 pandemic, those challenges started to increase. There were more open positions in special education at the beginning of each school year than in previous decades. In the 2023-24 school year, 42 states plus the District of Columbia reported teacher shortages in special education.

    What is causing these shortages?

    Wilkerson: One, there are fewer young people choosing teaching as a major in college and as a profession. And special education is affected by these lower rates more than other forms of education.

    Also, there’s more attrition – people leaving their teaching job sooner than you might expect – not because they’re retiring, but because they are tired of the job.

    They want to do something different. They want to go back to school. Sometimes it’s life circumstances, but the number of people leaving the job before retirement age has increased. And in our state, Wisconsin, about 35% of all educators leave the field before they hit their fifth year.

    That number is even higher for special educators. About half of special educators are out of the profession within five years.

    Why do special education teachers leave the profession?

    Wilkerson: There’s not a national study that speaks to that reason. There are some localized studies, and people report things like too much paperwork or too many administrative tasks associated with the job. Sometimes they report the students’ behavioral challenges. Sometimes it’s a feeling of isolation, or a lack of support from the school.

    How are students with disabilities affected when their school does not have enough special educators?

    Wilkerson: In a school that’s one special educator short, the other special educators have to take over that caseload. Instead of having 12 students on their caseload, maybe now they have 20. So, the amount of individual attention given to each student with a disability decreases.

    Also, when teachers with experience leave the profession, they leave behind a less experienced group of teachers. This means the students are losing out on the benefit of those years of wisdom and experience.

    What are some strategies to recruit and retain more special education teachers?

    Wilkerson: There’s a range of strategies that different universities, states and school districts have taken, like residency programs.

    In these programs, the person who is learning to be a teacher, and who is referred to as a teaching resident, works alongside a mentor teacher for an entire year in a school, and they get paid to do so. They’re not the teacher of record, but they’re learning and getting paid, and they’re in that school community.

    Can you tell us about your recent study on supporting new special education teachers?

    Wilkerson: One thing that made a big difference is when the teachers in our study, which is now under review, had access to a mentor and a group of their peers. We called this facilitated peer-to-peer group of teachers a “community of practice.” Every other week, on Zoom, we’d get these new special education teachers from different school districts together, along with experienced teachers. And they would do some sort of work on problems, bringing in the things that were challenging, and work on possible solutions as a group.

    We also used Zoom to do one-on-one mentoring. And what people liked about it was that they could talk to someone who wasn’t right in their building and right in their district who they could be open and vulnerable with.

    Sometimes, special educators can be isolated because they’re not necessarily a part of a grade-level team. They work with kids across a lot of classrooms. This gave them an opportunity to have their own kind of community, and that made a difference.

    We also surveyed their level of burnout and how good they felt about the job they did. And then we surveyed special education teachers who weren’t participating in our community of practice.

    At the end of the year, those people who had that mentoring and the community of practice felt less burnt out, and they also felt more effective in the area of classroom management. And that’s critical, because burnout is one of the primary reasons people leave the profession.

    So if we can make people feel like they’re better equipped to handle this challenging position, then that’s one strategy to increase the number of people wanting to stay in their job year after year.

    Watch the full interview to hear more.

    SciLine is a free service based at the American Association for the Advancement of Science, a nonprofit that helps journalists include scientific evidence and experts in their news stories.

    Kimber Wilkerson receives funding from the U.S. Department of Education’s Institute of Education Sciences and the Office of Elementary and Secondary Education.

    – ref. More kids than ever need special education, but burnout has caused a teacher shortage – https://theconversation.com/more-kids-than-ever-need-special-education-but-burnout-has-caused-a-teacher-shortage-239559

    MIL OSI – Global Reports –

  • MIL-OSI USA: Spotlight on Services: UConn Health’s Respiratory Therapists

    Source: US State of Connecticut

    This week UConn Health celebrates its 33 respiratory therapists for their vital contribution to patient care.

    In the spirit of Respiratory Care Week, Oct. 20-26, here’s a first-hand account of a second-year medical student’s experience shadowing lead respiratory therapist Sherael Stephenson.

    Shadowing an RT today was a really informative experience. One of the first things I noticed was how involved RTs are across the whole hospital. We went to the ED, to med surg, to ICU floors, and there were always a handful of patients who required respiratory therapy.

    I also noticed how skilled a respiratory therapist must be to do different procedures like suctioning, tracheal interventions, ventilation equipment, oxygen machines, etc. Not only do they have to know how to operate all these machines and devices, but they also have to have a really deep understanding of respiratory physiology.

    I was really impressed by the RT today talking about arterial blood gas levels, vital signs and their specific meanings, breathing patterns etc. She was very interactive with different members of the health care team including the CNAs, nurses and physicians/providers. I watched the RTs communicate their interventions and findings with the patient-assigned nurses as well as making recommendations to physicians.

    The RT today also shared her story about how COVID heavily impacted the field, and how emotionally draining it was to work during the pandemic. I felt so much appreciation for her and the amount of lives she saved during such a tragic time.

    I did not get a chance to witness any suctioning on the floor today but I can imagine it can be really helpful for a patient who has increased secretions. While the procedure itself may be uncomfortable, the outcome of increased oxygen saturations and easier breathing is probably much appreciated by the patient.

    MIL OSI USA News –

  • MIL-OSI USA: Congressman Dan Goldman Works to Strengthen Food Supply Chains and Protect Essential Workers

    Source: United States House of Representatives – Congressman Dan Goldman (NY-10)

    The ‘Grocery, Farm, and Food Worker Stabilization Act’ Would Provide Funds to Cover Disaster-Related Costs for Farm, Grocery, and Meatpacking Workers

    Read the Bill Here

    Washington, DC – Congressman Dan Goldman (NY-10) joined Congresswoman Nikki Budzinski (IL-13) and Senators Sherrod Brown (D-OH) and Kirsten Gillibrand (D-NY) in introducing the ‘Grocery, Farm, and Food Worker Stabilization Act’, which would help cover disaster-related costs for essential farm, grocery, and meatpacking workers.

    “The COVID-19 Pandemic highlighted and exacerbated many ugly undercurrents in our society, including the extreme fragility of food supply chains,” Congressman Dan Goldman said. “It is imperative that we learn from those experiences and bolster food supply chain resiliency efforts. As climate change increases the strength and frequency of natural disasters across the country, we must ensure our food workers have the support they need to keep our communities fed even in the face of emergencies.”

    In 2021, the U.S. Department of Agriculture (USDA) established the Farm and Food Workers Relief (FFWR) Grant Program to help farm, grocery, and meatpacking workers with pandemic-related health and safety costs. The FFWR Grant Program distributed nearly $680 million in grant funding to meat processing, grocery store, and farm workers for expenses incurred during the COVID-19 pandemic. However, FFWR was a one-time grant program. The ‘Grocery, Farm, and Food Worker Stabilization Act’ would make a similar grant program permanently available so that Congress can provide support to frontline workers during emergencies.

    Congressman Goldman is committed to expanding access to food assistance and supporting America’s frontline workers.

    In May 2023, the Congressman cosponsored the ‘Enhance Access to SNAP (EATS) Act’ to address the growing crisis of food insecurity among college students. The legislation would specifically remove barriers to accessing the Supplemental Nutrition Assistance Program (SNAP) for college students.

    In July, Goldman convened a town hall to discuss strategies for combatting food insecurity and share information about New York State’s Summer EBT program, which provides funding for eligible families to buy food at grocery stores, farmers markets, and other SNAP-authorized retailers.

    Last month, Goldman cosponsored the ‘Food Nutrition Delivery Safety Act’, which would require authorized SNAP retailers to pay delivery workers good wages, ensure SNAP groceries are delivered safely, and protect SNAP users’ online data.

    ###

    MIL OSI USA News –

  • MIL-Evening Report: New Prada-designed spacesuit is a small step for astronaut style, but could be a giant leap for sustainable fashion

    Source: The Conversation (Au and NZ) – By Alyssa Choat, Lecturer in Fashion and Textiles Design, University of Technology Sydney

    For its recent Spring/Summer 2025 show, fashion brand Diesel filled a runway with mounds of denim offcuts, making a spectacle of its efforts to reduce waste.

    Haunting yet poetic, the “forgotten” byproducts of fashion production were reclaimed and repurposed into something artful. But the irony isn’t lost, given fashion shows like this one demand significant resources.

    Diesel’s event is an example of a growing trend towards the “spectacle of sustainability”, wherein performative displays are prioritised over the deeper, structural changes needed to address environmental issues.

    Can the fashion industry reconcile its tendency towards spectacle with its environmental responsibilities? The recent spacesuit collaboration between Prada and Axiom Space is one refreshing example of how it can, by leaning into innovation that seeks to advance fashion technology and rewrite fashion norms.

    Performance art instead of substantive change

    The fashion industry has always relied on some form of spectacle to continue the fashion cycle. Fashion shows mix art, performance and design to create powerful experiences that will grab people’s attention and set the tone for what’s “in”. Promotional material from these shows is shared widely, helping cement new trends.

    However, the spectacle of fashion isn’t helpful for communicating the complexity of sustainability. Fashion events tend to focus on surface-level ideas, while ignoring deeper systemic problems such as the popularity of fast fashion, people’s buying habits, and working conditions in garment factories. These problems are connected, so addressing one requires addressing the others.

    It’s much easier to host a flashy event that inevitably feeds the problem it purports to fix. International fashion events have a large carbon footprint. This is partly due to how many people they move around the world, as well as their promotion of consumption (whereas sustainability requires buying less).

    The pandemic helped deliver some solutions to this problem by forcing fashion shows to go digital. Brands such as Balenciaga, the Congolese brand Hanifa and many more took part in virtual fashion shows with animated avatars – and many pointed to this as a possible solution to the industry’s sustainability issue.

    But the industry has now largely returned to live fashion shows. Virtual presentations have been relegated to their own sectors within fashion communication, while live events take centre stage.

    Many brands, including Prada, held fashion shows without guests during lockdowns in 2021.

    Towards a sustainable fashion future

    Technology and innovation clearly have a role to play in helping make fashion more sustainable. The recent Prada-Axiom spacesuit collaboration brings this into focus in a new way.

    The AxEMU (Axiom Extravehicular Mobility Unit) suits will be worn by Artemis III crew members during NASA’s planned 2026 mission to the Moon. The suits have been made using long-lasting and high-performance materials that are designed to withstand the extreme conditions of space.

    By joining this collaboration, Prada, known for its high fashion, is shifting into a highly symbolic arena of technological advancement. This will likely help position it at the forefront of sustainability and technology discussions – at least in the minds of consumers.

    Prada itself has varying levels of compliance when it comes to meeting sustainability goals. The Standard Ethics Ratings has listed it as “sustainable”, while sustainability scoring site Good on You rated it as “not good enough” – citing a need for improved transparency and better hazardous chemical use.

    Recently, the brand has been working on making recycled textiles such as nylon fabrics (nylon is a part of the brand DNA) from fishing nets and plastic bottles. It also launched a high-fashion jewellery line made of recycled gold.

    Innovating for a changing world

    Prada’s partnership with Axiom signifies a milestone in fashion’s ability to impact on high-tech industries. Beyond boosting Prada’s image, such innovations can also lead to more sustainable fashions.

    For instance, advanced materials created for spacesuits could eventually be adapted into everyday heat-resistant clothing. This will become increasingly important in the context of climate change, especially in regions already struggling with drought and heatwaves. The IPCC warns that if global temperatures rise by 1.5°C above pre-industrial levels, twice as many mega-cities are likely to become heat-stressed.

    New innovations are trying to help consumers stay cool despite rising temperatures. Nike’s Aerogami is a performance apparel technology that supposedly increases breathability. Researchers from MIT have also designed garment vents that open and close when they sense sweat to create airflow.

    Similarly, researchers from Zhengzhou University and the University of South Australia have created a fabric that reflects sunlight and releases heat to help reduce body temperatures. These kinds of cooling textiles (which could also be used in architecture) could help reduce the need for air conditioning.

    One future challenge lies in driving demand for these innovations by making them seem fashionable and “cool”. Collaborations like the one between Prada and Axiom are helpful on this front. A space suit – an item typically seen as a functional, long-lasting piece of engineering – becomes something more with Prada’s name on it.

    The collaboration also points to a broader potential for brands to use large attention-grabbing projects to convey their sustainability credentials. In this way they can combine spectacle with sustainability. The key will be in making sure one doesn’t come at the expense of the other.

    Alyssa Choat 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. New Prada-designed spacesuit is a small step for astronaut style, but could be a giant leap for sustainable fashion – https://theconversation.com/new-prada-designed-spacesuit-is-a-small-step-for-astronaut-style-but-could-be-a-giant-leap-for-sustainable-fashion-240551

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI Asia-Pac: LCQ2: Developing cruise tourism

    Source: Hong Kong Government special administrative region

    LCQ2: Developing cruise tourism
    LCQ2: Developing cruise tourism
    *******************************

         Following is a question by the Hon Chan Yuet-ming and a reply by the Secretary for Culture, Sports and Tourism, Mr Kevin Yeung, in the Legislative Council today (October 23): Question:      It has been reported that the number of cruise ships arriving in Hong Kong this year is far lower than that in Singapore, and a related association has also withdrawn from Hong Kong. On the other hand, the Government mentioned in the Policy Address delivered last year that it would review the development of cruise tourism economy and announce an action plan in the first half of 2024. In this connection, will the Government inform this Council: (1) of the number of ship calls in Hong Kong in each of the past five years, as well as the numbers of inbound and outbound cruise passenger trips, and the age distribution and per capita spending of passengers; (2) whether further plans in the short, medium and long terms are in place to attract cruise ships to visit Hong Kong and consider Hong Kong as homeport; and (3) of the positioning of and division of functions between the Kai Tak Cruise Terminal (KTCT) and the Ocean Terminal, and how the occupancy rates of the commercial floor space of the two terminals compare with each other; as there are views that when compared with the Ocean Terminal, there is much room for improvement in respect of transport connectivity between the KTCT and the shopping malls nearby as well as the luxury goods and commercial contents of such shopping malls, how the Government will enhance the transport connectivity between the KTCT and the surrounding scenic spots and key shopping malls in the short term? Reply: President,      After the pandemic, the Government has been making all-out efforts in promoting the recovery of the tourism industry, amongst which Hong Kong’s cruise tourism is actually one of the work priorities. With the concerted efforts of the industry and the Government, a total of 30 cruise lines are scheduled to visit Hong Kong in 2024, representing an increase of 12 over 2023 and comparable to pre-pandemic levels. It is estimated that the non-local cruise passenger throughput this year will increase to about 330 000, representing an increase of 50 per cent compared with 220 000 the year before. Moreover, attributable to the efforts we have made, several new cruise lines will have their first ship calls in Hong Kong in the coming year, and new itineraries will also be launched by cruise lines to attract a more diverse sources of customers.           We sought views extensively from relevant local and international stakeholders of the cruise industry earlier on the development of cruise tourism in Hong Kong, and formulated an action plan for further promoting cruise visits to Hong Kong. It will be published together with the Development Blueprint for Hong Kong’s Tourism Industry 2.0 by the end of this year.           Having consulted the Development Bureau and the Transport and Logistics Bureau, below is the reply to the question raised by the Hon Chan Yuet-ming: (1) The total numbers of ship calls and cruise passenger throughputs in Hong Kong in the past five years are at Annex. Separately, according to a survey conducted by the Hong Kong Tourism Board (HKTB) in 2023, the onshore per capita spending of inbound cruise passengers embarking or disembarking in Hong Kong was about $3,000. Nevertheless, the contribution of cruise tourism to Hong Kong’s economy is not restricted to the spending by passengers, but also includes the expenses incurred in Hong Kong by the cruises (such as the expenses of arranging shore excursions or transport for passengers, reprovisioning for the cruises, berthing at terminals and hiring of ground crew members), as well as the onshore spending of crew members on leave.  We do not maintain statistics on the age distribution of cruise passengers. (2) The Tourism Commission (TC) and HKTB will continue to promote the development of Hong Kong’s cruise tourism through various measures, attracting cruises to visit Hong Kong, and leveraging Hong Kong as the homeport for passengers to start or complete their cruise voyages. Those measures include: (a) developing new cruise itineraries and visitor source markets. For instance, introducing cruise itineraries departing from the Mainland, Japan, Korea, Malaysia, the Philippines, Taiwan and Thailand to Hong Kong in the coming months; and stepping up the promotion and publicity of fly-cruise and rail-cruise packages; (b) facilitating cruise lines in making proper planning for cruises visiting Hong Kong, and providing them with various support and concessions, with a view to encouraging cruise lines to increase the number of ship calls, make overnight calls and leverage Hong Kong as the homeport; (c) supporting the tourism trade in fully leveraging Hong Kong’s unique tourism elements to design different featured shore excursions. Cruise passengers visiting Hong Kong this week will be arranged to join the Hong Kong Wine & Dine Festival, thereby creating synergy between cruise tourism and mega events. In addition, a night time itinerary of Hong Kong classic tram tour has recently been selected by a cruise line as one of its top 10 shore excursions in the world; (d) providing facilitation for inbound passengers who start their cruise voyage in Hong Kong, such as baggage delivery services for debarking cruise passengers to enable them to explore the city hassle-free. TC also co-ordinates ship calls with a large number of Mainland visitors, streamlining the boundary crossing arrangements, and arranging coaches for them to travel direct to the Kai Tak Cruise Terminal (KTCT) in just 40 minutes; (e) seizing the new opportunities brought about by cruise-related policies in the Mainland, such as the policy of allowing visa-free entry of foreign tourist groups aboard cruise ships at provinces along the country’s coastline, and the measures allowing Mainland visitors to travel to Hong Kong in transit to join international cruise itineraries involving port-of-call in Mainland cruise ports, thereby attracting international cruise lines to develop more cruise itineraries covering Hong Kong and Mainland ports; and (f) proactively participating in major industry events in the Mainland and overseas, and collaborating with ports in the Mainland and the Asian region to jointly promote Asia’s cruise tourism in these events. (3) Though complementing each other, the development and functions of the KTCT and the Ocean Terminal (OT) in Tsim Sha Tsui are not entirely the same and a direct comparison cannot be made between them. The OT was completed in 1966. Due to limitations in respect of water depth and clearance facilities etc, it can only accommodate small to medium-sized cruise ships with a gross tonnage of fewer than 90 000 tons and a smaller passenger capacity. Its floor area is primarily used for commercial purposes. As Tsim Sha Tsui has developed into one of Hong Kong’s premier shopping and sightseeing hot spots, passengers joining cruise voyages there can also be benefited. As for the KTCT, it is an infrastructure specifically built for the berthing of mega-size cruise ships and is able to accommodate simultaneously two mega-size cruise ships with a gross tonnage of up to 220 000. The terminal provides sufficient space and facilities for handling a large number of inbound and outbound passengers as well as their embarkation and disembarkation within a short period of time, but only has a small ancillary commercial area. The KTCT commenced operation in phases from mid-2013, and since 2015 and 2017 respectively, it has already surpassed the OT in terms of annual passenger throughput and the number of ship calls.      Upon getting onshore, cruise passengers may either join shore excursions with connecting transport arrangements provided by cruise lines or local travel agents, or travel to destinations by public transport. The KTCT is being part of the Kai Tak Development (KTD). With the gradual completion of the traffic network and commercial facilities within the KTD, cruise passengers will be provided with greater convenience and more options for shopping and sightseeing. Those options include the major retail facility adjacent to Kai Tak MTR Station opened in September last year and another commercial project comprising a large department store scheduled for opening in November this year. In addition, the Kai Tak Sports Park, to be opened in the first quarter of next year, will not only provide over 700 thousand square feet of retail and catering facilities, but also venues for hosting various types of mega sports, cultural and recreational events, thereby creating synergy effects with the KTCT.           There are currently four regular franchised bus routes serving the KTCT, with three of them connecting Kai Tak Station. Subject to demand, an additional special bus route directly connecting the station will also be provided by public transport operator during the berthing of cruise ships. The Transport Department has also planned to provide two additional franchised bus routes, one of them providing connecting services to Kai Tak Station via Sung Wong Toi Station, while another providing express services to Hung Hom and Tsim Sha Tsui direct.      Thank you, President.

     
    Ends/Wednesday, October 23, 2024Issued at HKT 12:55

    NNNN

    MIL OSI Asia Pacific News –

  • MIL-OSI Asia-Pac: LCQ7: Combating vaping of “space oil”

    Source: Hong Kong Government special administrative region

         Following is a question by the Hon Lam So-wai and a written reply by the Secretary for Security, Mr Tang Ping-keung, in the Legislative Council today (October 23):

    Question:

         “Space oil” is a kind of liquid to which harmful substances have been illegally added. Usually, its main ingredient is etomidate, an anaesthetic that can only be prescribed by a doctor according to the law. Anyone who illegally possesses and uses the substance commits an offence. It has been reported that space oil, often vaped through e-cigarettes, can produce transient euphoria and cause addiction, and has gained popularity amongst youth communities since last year, with some sellers even blatantly putting space oil up for sale on social media platforms. In this connection, will the Government inform this Council:

    (1) of the respective numbers of persons arrested for illegal sale and possession of space oil in the past three years, together with a tabulated breakdown by age;

    (2) whether it will bring etomidate under the control of the Dangerous Drugs Ordinance (Cap. 134); if so, of the details; if not, the reasons for that; and

    (3) whether the authorities have put in place measures to prevent members of the public (especially young people) from vaping space oil by, for example, stepping up education and proactively taking law enforcement actions such as decoy operations; if so, of the details; if not, the reasons for that?

    Reply:

    President,

         “Space oil” is a kind of liquid to which harmful substances have been illegally added and is often inhaled through electronic cigarettes (e-cigarettes). There is no standard formula for “space oil”, but its main ingredient is usually etomidate, an anaesthetic which can only be prescribed by a doctor according to the law. Etomidate is regulated as Part 1 poison under the Pharmacy and Poisons Regulations (Cap. 138A). Illegal supply or use of etomidate is liable to imprisonment upon conviction. Abuse of “space oil” will cause harm to one’s health and lead to addiction. It will also lure abusers to try other kinds of drugs. Taking “space oil” is equivalent to taking drugs.

         â€‹My reply to the various parts of the question raised by the Hon Lam So-wai is as follows:

    (1) Frontline anti-drug workers noticed an emergence of “space oil” in Hong Kong in 2023 after the COVID-19 pandemic, and it had begun to gain traction among local young people and some of them even started taking it. Records of law enforcement agencies (LEAs) have reflected the same trend. In 2023, we started to observe persons arrested for offences involving “space oil” containing etomidate by the Hong Kong Police Force and the Customs and Excise Department. The number of persons arrested in the past three years by age groups are set out at Annex.
         
    (2) To ensure that the LEAs can effectively respond to the drug abuse situation and enhance deterrence, it is indicated in the Supplement to “The Chief Executive’s 2024 Policy Address” published last week that the Government will step up control on etomidate. Specifically, we propose bringing etomidate under control of the Dangerous Drugs Ordinance (DDO) (Cap. 134). We have already consulted the Action Committee Against Narcotics (ACAN) and relevant stakeholders, with a view to listing etomidate as a dangerous drug in the first half of 2025. By then, illegal possession or smoking, inhaling, ingesting and injecting “space oil” containing etomidate is liable to a maximum penalty of seven years’ imprisonment and a fine of $1 million. Trafficking or illegal import of such a substance is liable to a maximum penalty of life imprisonment and a fine of $5 million.
       
    (3) The Government has all along been closely monitoring the trend of emerging drugs. Apart from strengthening the control on etomidate by way of legislation, the Government has taken prompt actions to combat “space oil” through reducing demand and intercepting supply.

         Preventive publicity and education is the backbone of demand reduction and forms the first line of defense for our anti-drug work. Targeting the emergence of “space oil” among the youth, we have started with the school sector. First, earlier this year, the Commissioner for Narcotics from the Security Bureau (SB) wrote to all primary and secondary schools in Hong Kong alerting them to the problem of “space oil” inhaling through e‑cigarettes. In addition, the Narcotics Division (ND) of the SB is in the course of including information on the harmful effects of “space oil” in its anti-drug educational talks and interactive drama for schools. 

         To further enhance the vigilance against and responsiveness to “space oil” among the school sector and anti-drug community, the ND in collaboration with the Hong Kong Poison Control Centre of the Hospital Authority and a frontline social service organisation organised two seminars on the issue of “space oil” abuse in August and October with a total attendance of nearly 500 people. At the seminars, different professionals, anti-drug workers, social workers, and teaching staff from over 100 primary and secondary schools shared their observations of the abuse situation of “space oil” among young people and the related harms. There were also exchanges of views on how to prevent “space oil” abuse and handle abusers. After the seminars, the Narcotics Bureau of the Hong Kong Police Force distributed an infographic to all schools in Hong Kong. As young people often inhale “space oil” through e-cigarettes, the Chairman of the Hong Kong Council on Smoking and Health also gave a presentation on the harmful effects of e-cigarettes in one of the aforementioned seminars. 

         As regards publicity, to raise public awareness of the harmful effects of “space oil”, a new zone dedicated to “space oil” was set up at the Hong Kong Jockey Club Drug InfoCentre in mid-September with promotional videos, publications and exhibition panels showing the harms of “space oil” on display. Since the middle of this year, the ND has been starting to publish social media posts and has launched an animated video on the harmful effects of “space oil”. They serve to alert the public, in particular young people, to the harms of “space oil”. The animated video has been uploaded onto the ND’s website and social media platforms, and schools and anti-drug organisations have been encouraged to show it often. We will continue to work with ACAN, other departments and various sectors of the community to step up preventive education and publicity efforts in view of the “space oil” abuse situation.

         To intercept the supply of “space oil”, the LEAs have stepped up various inspections including cyber patrol and carried out intelligence-based law enforcement actions. For example, the Police seized 2.17 kilograms of a substance claimed to be “space oil” during the past summer. More recently in mid-October, the Police raided a residential unit in Tai Kok Tsui, which was used as a drug storage and distribution centre, resulting in the seizure of “space oil” and other drugs. Upon the commencement of control of etomidate under the DDO (Cap. 134), the LEAs will definitely step up their enforcement against all etomidate-related offences.

    MIL OSI Asia Pacific News –

  • MIL-OSI Submissions: WHO – Ten additional countries in the Western Pacific Regionpledge to invest in WHO

    Source: World Health Organization (WHO)

    MANILA, 23 October 2024 – In a historic show of support, 10 more countries in the Western Pacific Region pledged to provide an additional US$ 12.1 million to the World Health Organization (WHO) through its first-ever Investment Round. This comes in addition to US$ 18 million announced by Singapore in May. The WHO Investment Round aims to secure predictable, flexible, and resilient resources for WHO’s core work over the next four years.

    The seventy-fifth session of the WHO Regional Committee for the Western Pacific began on Monday with Member States formally endorsing the new regional vision Weaving Health for Families, Communities and Societies in the Western Pacific Region (2025-2029): Working together to improve health, well-being and save lives.

    The financial commitments were made during a Special Event on the Investment Round at the Regional Committee today. Governments and partners from across Asia and the Pacific in attendance emphasized the importance of ensuring WHO has robust financing to implement its global strategy for the 2025-2028 period, the 14th General Programme of Work, which was approved by Member States at the World Health Assembly in May 2024.

    The Government of the Philippines co-hosted the Special Event and made a historic pledge of US$ 10 million to the WHO Investment Round. During his remarks, Secretary of Health Dr Teodoro J. Herbosa of the Philippines said “A robust, reliable, and sustainably funded WHO is crucial for the Western Pacific Region and the world to address inequities and inequalities in health which were amplified by the COVID-19 pandemic. Today, we have taken a significant first step towards a future where health and well-being are accessible to everyone.”

    Malaysia also demonstrated its support of WHO’s work through a US$ 2 million pledge towards the Investment Round.

    In a powerful symbol of Pacific leaders’ commitment to health and WHO’s pivotal role in supporting them, eight Pacific Island countries pledged to double their funding contributions to WHO for 2025.  First-ever voluntary contributions to WHO were announced today by Papua New Guinea, and Cook Islands, Palau, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu.

    Speaking to the Regional Committee through a live video connection on Tuesday morning, WHO Director-General Dr Tedros Adhanom Ghebreyesus noted that to support the implementation of the Organization’s new global strategy, “we have launched the first WHO Investment Round, which aims to mobilize the sustainable and predictable resources we need to do our work. Thank you all for your commitment to promoting, providing and protecting health, for all people of the Western Pacific.”

    During the Investment Round Special Event, WHO Regional Director for the Western Pacific, Dr Saia Ma’u Piukala, thanked Member States and partners for their pledges, which will enable the Organization to support countries more effectively.

    “The commitments made today are truly historic,” Dr Piukala said. “They include a doubling of financial contributions from several of our small island developing states, and significant sums from the Philippines and Malaysia.

    “It’s a sign of governments’ confidence in WHO as their partner in health, and a recognition of the need for sustainable financing in order to deliver on the vision of weaving health for families, communities and societies in the Western Pacific,” he said.

    Prior to the meeting, WHO launched the document All for Health, Health for All: WHO Investment Case 2025-28 Western Pacific to capture the impact of a fully-funded Western Pacific Region over the next four years.

    Partners joined Members States in statements of support for WHO. Organizations including the Asian Development Bank, the Institute of Philanthropy and Temasek Trust committed to working closely with WHO during the next four years. Earlier this month, the Institute of Philanthropy made a US$10 million pledge to the Investment Round during the World Health Summit in Berlin, following a $1.2 million pledge in May at the World Health Assembly. The Temasek Foundation also pledged $10 million on the sidelines of the United Nations General Assembly in September.

    “We are off to a great start for the Investment Round in the Western Pacific based on today’s event,” said Dr Piukala. “Today we also heard that we should expect to see more countries and partners stepping up to provide additional resources in the coming weeks.”

    With a fully and sustainably funded operating budget for 2025–2028, WHO will be better able to tackle emergencies and outbreaks that jeopardize health security and threaten lives, reduce the burden of both infectious diseases and noncommunicable diseases (NCDs), and continue working to improve the health and well-being of everyone, especially the most vulnerable.

    Launched at the World Health Assembly in May 2024, the Investment Round aims to mobilize contributions that are flexible and thereby aligned with WHO’s strategy as approved by its Member States, predictably provided at the start of the four-year programme cycle to enable strategic decision-making, and resilient in that they will derive from a larger, more diverse set of donors.

    WHO’s Investment Round will culminate at the G20 leaders’ summit chaired by Brazilian President Lula da Silva next month.

    Notes:

    The seventy-fifth session of the Western Pacific Regional Committee began on 21 October and runs through 25 October at WHO’s Regional Office for the Western Pacific in Manila, Philippines. The agenda (https://cdn.who.int/media/docs/default-source/wpro—documents/regional-committee/session-75/wpr-rc75-01-provisional-agenda.pdf ) and timetable (https://cdn.who.int/media/docs/default-source/wpro—documents/regional-committee/session-75/tentative-timetable_rc75.pdf ) are available online. A livestream of proceedings, all other official documents, as well as fact sheets and videos on the issues to be addressed can be accessed here. https://www.who.int/westernpacific/about/governance/regional-committee/session-75

    Working with 194 Member States across six regions, WHO is the United Nations specialized agency responsible for public health. Each WHO region has a regional committee – a governing body composed of ministers of health and senior officials from Member States. Each regional committee meets annually to agree on health actions and to chart priorities for WHO’s work.

    The WHO Western Pacific Region is home to more than 1.9 billion people across 37 countries and areas: American Samoa (United States of America), Australia, Brunei Darussalam, Cambodia, China, Cook Islands, Fiji, French Polynesia (France), Guam (United States of America), Hong Kong SAR (China), Japan, Kiribati, the Lao People’s Democratic Republic, Macao SAR (China), Malaysia, the Marshall Islands, the Federated States of Micronesia, Mongolia, Nauru, New Caledonia (France), New Zealand, Niue, the Commonwealth of the Northern Mariana Islands (United States of America), Palau, Papua New Guinea, the Philippines, Pitcairn Islands (United Kingdom of Great Britain and Northern Ireland), the Republic of Korea, Samoa, Singapore, Solomon Islands, Tokelau, Tonga, Tuvalu, Vanuatu and Viet Nam, Wallis and Futuna (France).

    MIL OSI – Submitted News –

  • MIL-OSI Europe: JOINT MOTION FOR A RESOLUTION on the urgent need to revise the Medical Devices Regulation – RC-B10-0123/2024/REV1

    Source: European Parliament

    Peter Liese
    on behalf of the PPE Group
    Tiemo Wölken
    on behalf of the S&D 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

    European Parliament resolution on the urgent need to revise the Medical Devices Regulation

    (2024/2849(RSP))

    The European Parliament,

    – having regard to the Treaty on the Functioning of the European Union, and in particular Article 168 thereof,

    – having regard to Regulation (EU) 2017/745 of the European Parliament and of the Council of 5 April 2017 on medical devices, amending Directive 2001/83/EC, Regulation (EC) No 178/2002 and Regulation (EC) No 1223/2009 and repealing Council Directives 90/385/EEC and 93/42/EEC[1] (MDR),

    – having regard to Regulation (EU) 2017/746 of the European Parliament and of the Council of 5 April 2017 on in vitro diagnostic medical devices and repealing Directive 98/79/EC and Commission Decision 2010/227/EU[2] (IVDR),

    – having regard to Regulation (EU) 2023/607 of the European Parliament and of the Council of 15 March 2023 amending Regulations (EU) 2017/745 and (EU) 2017/746 as regards the transitional provisions for certain medical devices and in vitro diagnostic medical devices[3],

    – having regard to Regulation (EU) 2020/561[4], Regulation (EU) 2022/112[5], Regulation (EU) 2023/607 and Regulation (EU) 2024/1860[6] extending the implementation periods of Regulation (EU) 2017/745 and Regulation (EU) 2017/746,

    – having regard to the Commission’s proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) 2017/745 and (EU) 2017/746 as regards the transitional provisions for certain medical devices and in vitro diagnostic medical devices (COM(2023)0010),

    – having regard to the European Medicines Agency’s 2023 Annual Report and its review on market access and safety concerns for medical devices,

    – having regard to Rule 136(2) and (4) of its Rules of Procedure,

    A. whereas medical devices and in vitro diagnostic medical devices play a crucial role in high-quality healthcare, directly affecting the health, safety and well-being of millions of patients across the EU;

    B. whereas approximately 500 000 different medical devices are available on the EU market, covering a broad range of technologies, from contact lenses to pacemakers, and serving different purposes, including diagnosis, prevention, treatment, rehabilitation and improving the quality of life of patients and the work of healthcare professionals and carers;

    C. whereas disparities in access to medical devices persist across Member States, affecting patient care and leading to health inequalities; whereas such disparities underscore the need for improved availability and affordability of crucial devices;

    D. whereas the MDR and IVDR were adopted to strengthen the regulatory framework for medical devices and in vitro diagnostic medical devices, as a response to several high-profile scandals with unsafe medical equipment, with the purpose of ensuring higher standards of safety, transparency and clinical performance while also fostering innovation in the sector;

    E. whereas the MDR and IVDR introduced more robust requirements for clinical evaluations, post-market surveillance and vigilance reporting, promoting transparency in the approval and monitoring processes;

    F. whereas despite these aims, significant challenges have been encountered in implementing the MDR and the IVDR, not only leading to delays but also resulting in failures to achieve certification and approval of medical devices and in vitro diagnostic medical devices, particularly impacting small and medium-sized enterprises (SMEs), as well as resulting in shortages of medical devices and in vitro diagnostic medical devices, thus restricting patient access to innovative and life-saving therapeutic and diagnostic technologies;

    G. whereas many stakeholders, in particular small and medium-sized manufacturers, notified bodies and healthcare providers, have reported difficulties in navigating the complex regulatory procedures under the current MDR and IVDR framework, with potential risks posed to the continuous availability of life-saving medical devices and critical in vitro diagnostic tests in the EU;

    H. whereas the transitional periods for the implementation of the MDR and IVDR have been extended on numerous occasions to address issues including the capacity of notified bodies and to allow industry more time to adapt to new rules in order to prevent devices being withdrawn from the EU market;

    I. whereas due to a lack of harmonised procedures across notified bodies in the EU, among other things, manufacturers can in some instances face unpredictable timelines for certification and market access, which creates unpredictability, alongside inconsistency in decisions and a lack of transparency in relation to the work of the notified bodies;

    J. whereas there is a need for the regulatory frameworks to better accommodate innovative devices that address unmet medical needs and provide better prioritisation and fast-track pathways;

    K. whereas the Commission initiated non-legislative actions to support the transition to the MDR and IVDR, focusing in particular on the availability of medical devices on the market, the preparedness of notified bodies, the development of orphan and paediatric devices, SME support and the waiving of fees for scientific advice in critical areas where, despite these measures, financial and administrative challenges persist, particularly in the orphan and paediatric sectors;

    L. whereas the deadlines for implementing the MDR and IVDR have been extended multiple times to help the industry adapt to new regulations, to prevent market withdrawals and to ensure the continuous supply of devices; whereas these extensions were critical in maintaining public health protection during the COVID-19 pandemic;

    M. whereas since the adoption of the MDR and IVDR, the Commission has also introduced new provisions regarding the European Database on Medical Devices (EUDAMED) and a notification system for market interruptions or supply discontinuation;

    N. whereas it is important to ensure that patients and healthcare professionals have access to all relevant documents and decisions taken by the notified bodies;

    1. Calls on the Commission to propose, by the end of Q1 2025, delegated and implementing acts to the MDR and the IVDR to address the most pressing challenges and bottlenecks in the implementation of the legislative frameworks and to propose the systematic revision of all relevant articles of these regulations, accompanied by an impact assessment, to be conducted as soon as possible;

    2. Calls on the Commission to make full use of legislative and non-legislative tools to resolve issues of divergent interpretation and of practical application to streamline the regulatory process, improve transparency, and eliminate unnecessary administrative work for notified bodies and manufacturers, particularly SMEs, without compromising patient safety;

    3. Deplores the risk of shortages of medical devices and the lack of access to certain medical devices and in vitro diagnostics in parts of the EU; stresses that access to and quality of healthcare, including medical devices and in vitro diagnostics, should not depend on where in the EU a patient is located;

    4. Encourages the notified bodies to ensure that there are sufficient resources to meet the market demand in a timely manner; in this regard, calls on the Commission and the Member States to enhance support and cooperation to ensure that the notified bodies have the optimal capacities and capabilities to fully implement the regulatory framework;

    5. Advocates the creation of transparent and binding timelines, including clock stops for procedural steps in conformity assessment by notified bodies, thus creating predictability and certainty for manufacturers regarding the market access procedure and its duration within the EU;

    6. Calls for transparency in notified bodies’ fees and fee structures, to allow economic operators to compare notified bodies and make informed choices, ensuring that fees remain a fair compensation for the public service provided;

    7. Stresses the need to eliminate the unnecessary re-certification of products, and underlines that certain product updates or adjustments should not necessarily lead to an entire re-certification of the product; stresses the need to harmonise such provisions and ensure consistency across the EU; calls for cooperation between the competent authorities and advisory bodies responsible for other regulatory frameworks, and stresses the need for products to be classified correctly and consistently;

    8. Strongly calls on the Commission to consider fast-track and prioritisation pathways for the approval of innovative technologies in areas of unmet medical need and for devices linked to health emergencies;

    9. Highlights the need to establish a clear working definition of ‘orphan device’, as determined by the Medical Device Coordination Group in the MDR and IVDR, to facilitate the adoption of harmonised measures across the EU; additionally calls for a robust system to prevent misuse through artificial ‘orphanisation’;

    10.  Calls for the introduction of adapted rules for orphan and paediatric medical devices, without compromising patient safety, and emphasises the need for more efficient conformity assessment procedures tailored to medical devices and in vitro diagnostics serving relatively small markets, such as products for the treatment of children or rare diseases;

    11. Calls on the Commission to facilitate the collection of clinical data from existing national registries for small patient groups treated or diagnosed with orphan and paediatric devices, in compliance with the protection of personal data; recognises the challenges faced by various SMEs in adapting to the legal frameworks; invites the Member States and the Commission to develop specific measures to support SMEs, including the provision of model application documents and forms, regulatory guidance and other assistance to reduce the costs and complexity of the regulatory frameworks;

    12. Calls on the Commission to continuously monitor the availability of devices, particularly the last remaining devices of particular types, and to take appropriate action to keep them available in the EU market; in this regard, calls for an urgent full implementation of EUDAMED, which will enable information about medical devices and manufacturers to be processed to enhance transparency, provide better access to information for the public and healthcare professionals, and enhance coordination between Member States;

    13. Emphasises that any new rules or changes to existing rules must come with an appropriate transition period to allow all stakeholders sufficient time to adjust to the changes;

    14. Instructs its President to forward this resolution to the Council, the Commission and the governments and parliaments of the Member States.

     

    MIL OSI Europe News –

  • MIL-OSI Banking: Committee on Market Access holds third thematic session on supply chain resilience

    Source: WTO

    Headline: Committee on Market Access holds third thematic session on supply chain resilience

    The moderator of the session, Mr Iain Fifer of the United Kingdom, emphasized the critical role of trade data in analyzing and enhancing the resilience of supply chains. He noted the challenges in gathering reliable, timely and relevant data, and underlined how such information can inform decision-making.
    Thailand highlighted logistical challenges related to train freight routes from Thailand to Europe. While rail transport is faster than ocean freight and cheaper than air freight, it faces significant obstacles such as customs clearance issues at multiple borders, a lack of harmonized standards, and higher costs compared to sea freight. Additionally, it stressed how limitations in rail infrastructure add complexity.
    China emphasized the importance of multilateral and bilateral trade frameworks, such as those supported by the WTO, in ensuring smooth supply chain operations. It underscored technological advances, particularly in big data and green energy, as key influencers of the development of global supply chains. China also announced the upcoming release of its Global Supply Chain Connectivity Index at the second China International Supply Chain Expo in November 2024. The document will provide a quantitative assessment of the resilience and stability of global supply chains.
    India focused on the three fundamental pillars of supply chains — production, logistics and markets. It also underlined the importance of digital infrastructure in bolstering supply chain resilience. Additionally, India discussed initiatives such as the Unified Logistics Interface Platform and the PM Gati Shakti National Master Plan, which utilize geospatial data to enhance infrastructure connectivity and logistics efficiency.
    The United States introduced its newly established Supply Chain Center within the Department of Commerce, designed to enhance supply chain resilience. The unit’s “Scale” tool assesses risks across sectors of the US economy by evaluating more than 40 indicators of criticality, vulnerability and resiliency in supply chains. The tool provides an in-depth view of current risks to better inform policy decisions, the United States underlined.
    Switzerland presented an initiative led by the Organisation for Economic Cooperation and Development (OECD) aimed at improving the transparency and resilience of medical supply chains. The initiative was prompted by the supply shortages experienced during the COVID-19 pandemic. Switzerland’s project involves a monitoring mechanism designed to increase visibility in global medical supply chains and address future disruptions through international cooperation and the use of advanced technologies such as artificial intelligence.
    In his conclusion, the moderator emphasized the importance of data design and collection in creating a comprehensive understanding of various supply chains. He stressed that data sharing and collaboration were central themes of the discussion, noting that swift and accurate exchange of information between stakeholders and governments is essential. Additionally, he acknowledged the significant analytical work required after data collection and pointed out that once data analysis is completed, it must be effectively utilized to guide policymaking. The session also featured examples of ongoing policy initiatives shaped by data-driven projects.
    The interim Chair of the Market Access Committee, Ms Nicola Waterfield of Canada, expressed appreciation for the presentations and highlighted the importance of the discussions. She also announced that the Committee’s next formal meeting is scheduled for 19-20 November 2024.

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