Category: Politics

  • MIL-OSI United Kingdom: Home Secretary launches new support for Windrush victims

    Source: United Kingdom – Executive Government & Departments

    Home Secretary commits to a ‘fundamental reset’ in the government’s response to the appalling Windrush scandal.

    Victims of the Windrush scandal will be better supported to apply for compensation through a £1.5 million fund as the Home Secretary sets out a ‘fundamental reset’ to the Windrush generation.

    The Home Secretary has today set out the first steps that the new government is taking to ensure justice is finally delivered for victims of the Windrush scandal. She will commit to working more closely with communities affected, and to appointing a new Windrush Commissioner to hold the government to account on the delivery of the recommendations in the Wendy Williams Lessons Learned Review. The Commissioner will act as a trusted voice for victims and Windrush communities and also champion improvements and lasting change.

    In a written statement, Yvette Cooper has published details of £1.5million in government grant funding, which will be used to increase advocacy support for victims applying to the Windrush Compensation Scheme.

    Within weeks of taking office, the Home Secretary re-established the Windrush Unit within the Home Office, to oversee its response to the scandal and embed lasting cultural change across the department. The unit was disbanded under the previous government in July 2023.

    These actions come as the Home Secretary later today chairs a roundtable discussion with key stakeholders and sets out the government’s renewed commitment to work with them to achieve justice for victims. This follows a separate meeting the Home Secretary has had with Wendy Williams, to discuss her vision for a changed Home Office.

    Home Secretary Yvette Cooper said:

    The Windrush scandal caused terrible pain and heartache for so many families in the Windrush generation and in wider Commonwealth communities. It is rightly recognised as a period of national shame.

    The hurt and anguish felt by so many has been compounded further for those who haven’t received the compensation and justice they are owed. The Windrush generation have been let down and we are committed to a fundamental reset of the response to this scandal.

    We are changing the government’s approach – working more closely with victims, stakeholders, and communities, as well as those affected by all the department’s work, to ensure a scandal of this kind can never happen again and dignity can be restored to those so tragically affected.

    The government is determined to hear first hand from the Windrush generation, their families and wider commonwealth communities to ensure that their experiences are listened to and learned from.

    Updates to this page

    Published 24 October 2024

    MIL OSI United Kingdom

  • MIL-OSI Europe: New strategy for Sweden’s global development cooperation on migration, returns and voluntary repatriation

    Source: Government of Sweden

    New strategy for Sweden’s global development cooperation on migration, returns and voluntary repatriation – Government.se

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    Press release from Ministry for Foreign Affairs

    Published

    The Government has adopted a new strategy for Sweden’s global development cooperation on migration, returns and voluntary repatriation. The strategy comprises SEK 3 billion for the period 2024–2028 and is part of governing Sweden’s development assistance to strengthen synergies between migration policy and development assistance policy.

    The new strategy plays an important role in strengthening synergies between development assistance policy and migration policy, and is based on the priorities set out in the reform agenda and the Tidö Agreement.

    “Through development assistance, we will increase support in our neighbourhood, with the long-term aim of reducing irregular migration to Sweden and the EU. The strategy will also benefit Swedish interests and counteract the negative effects of irregular migration and forced displacement,” says Minister for International Development Cooperation and Foreign Trade Benjamin Dousa.

    With the new strategy, Sweden will meet global challenges linked to irregular migration and forced displacement, and promote returns and voluntary repatriation. In practice, this may involve support for reintegration, increased capacity of partner countries to manage migration and asylum, and functioning infrastructure in countries of origin and transit.

    The strategy will complement and reinforce other parts of Sweden’s work on migration and development assistance – globally, regionally and bilaterally.

    Press contact

    MIL OSI Europe News

  • MIL-OSI Europe: True or false? How to defend yourself against disinformation

    Source: European Union 2

    In today’s complex digital and media landscape, citizens must become more resilient against disinformation. This is where media literacy can help, by enhancing critical thinking and helping citizens better navigate information, especially online, and identify and counter disinformation. Between 24 and 31 October, we mark Global Media and Information Literacy week, an occasion to raise awareness about the importance of promoting media and information literacy for all.

    The EU supports EU countries and civil society in taking measures that develop media literacy skills and the Commission facilitates the sharing of best practices. Guidelines and toolkits have also been developed for teachers to help them ensure digital literacy through education.

    In the context of the 2024 European elections, the Commission also released a number of awareness-raising products for wide and continuous use by citizens and professionals, and ran an EU-wide campaign, together with the European Regulators Group for Audiovisual Media Services.

    The European Digital Media Observatory (EDMO) also brings together fact-checkers, academia and other relevant stakeholders. Supported by the Commission, EDMO contributes to identifying best practices in the field of media literacy, promoting knowledge exchange and to carrying out awareness-raising campaigns.

    Disinformation, misinformation and foreign information manipulation and interference are a serious threat to democracy and societies. 86% of Europeans agree with this, noting that the rapid spread of disinformation is a major problem for democracy, according to an EU survey. Building societal resilience against disinformation through media literacy will therefore continue to play a crucial role in helping citizens of all ages to navigate the modern news environment and take informed decisions.

    For more information

    Media literacy

    Building societal resilience against disinformation

    Strategic communication & tackling disinformation

    Protect yourself from disinformation – practical tips and material

    Video tips 

    MIL OSI Europe News

  • MIL-OSI Europe: Encyclical Letter “Dilexit nos” of the Holy Father Francis on the human and divine love of the heart of Jesus Christ

    Source: The Holy See

    Encyclical Letter “Dilexit nos” of the Holy Father Francis on the human and divine love of the heart of Jesus Christ, 24.10.2024
    ENCYCLICAL LETTER
    DILEXIT NOS
    OF THE HOLY FATHER
    FRANCIS
    ON THE HUMAN AND DIVINE LOVE
    OF THE HEART OF JESUS CHRIST
    1. HE LOVED US”, Saint Paul says of Christ (cf.Rom8:37), in order to make us realize that nothing can ever “separate us” from that love (Rom8:39).Paul could say this with certainty because Jesus himself had told his disciples, “I have loved you” (Jn15:9, 12).Even now, the Lord says to us, “I have called you friends” (Jn15:15).His open heart has gone before us and waits for us, unconditionally, asking only to offer us his love and friendship.For “he loved us first” (cf.1 Jn4:10).Because of Jesus, “we have come to know and believe in the love that God has for us” (1 Jn4:16).
    CHAPTER ONE
    THE IMPORTANCE OF THE HEART
    2. The symbol of the heart has often been used to express the love of Jesus Christ.Some have questioned whether this symbol is still meaningful today.Yet living as we do in an age of superficiality, rushing frenetically from one thing to another without really knowing why, and ending up as insatiable consumers and slaves to the mechanisms of a market unconcerned about the deeper meaning of our lives, all of us need to rediscover the importance of the heart.[1]
    WHAT DO WE MEAN BY “THE HEART”?
    3. In classical Greek, the wordkardíadenotes the inmost part of human beings, animals and plants.For Homer, it indicates not only the centre of the body, but also the human soul and spirit.In the Iliad, thoughts and feelings proceed from the heart and are closely bound one to another.[2]The heart appears as the locus of desire and the place where important decisions take shape.[3]In Plato, the heart serves, as it were, to unite the rational and instinctive aspects of the person, since the impulses of both the higher faculties and the passions were thought to pass through the veins that converge in the heart.[4]From ancient times, then, there has been an appreciation of the fact that human beings are not simply a sum of different skills, but a unity of body and soul with a coordinating centre that provides a backdrop of meaning and direction to all that a person experiences.
    4. The Bible tells us that, “the Word of God is living and active… it is able to judge the thoughts and intentions of the heart” (Heb4:12).In this way, it speaks to us of the heart as a core that lies hidden bene ath all outward appearances, even beneath the superficial thoughts that can lead us astray.The disciples of Emmaus, on their mysterious journey in the company of the risen Christ, experienced a moment of anguish, confusion, despair and disappointment.Yet, beyond and in spite of this, something was happening deep within them: “Were not our hearts burning within us while he was talking to us on the road?” (Lk 24:32).
    5. The heart is also the locus of sincerity, where deceit and disguise have no place.It usually indicates our true intentions, what we really think, believe and desire, the “secrets” that we tell no one: in a word, the naked truth about ourselves.It is the part of us that is neither appearance or illusion, but is instead authentic, real, entirely “who we are”.That is why Samson, who kept from Delilah the secret of his strength, was asked by her, “How can you say, ‘I love you’, when your heart is not with me?” (Judg16:15).Only when Samson opened his heart to her, did she realize “that he had told her his whole secret” (Judg16:18).
    6. This interior reality of each person is frequently concealed behind a great deal of “foliage”, which makes it difficult for us not only to understand ourselves, but even more to know others: “The heart is devious above all else; it is perverse, who can understand it?” (Jer17:9).We can understand, then, the advice of the Book of Proverbs: “Keep your heart with all vigilance, for from it flow the springs of life; put away from you crooked speech” (4:23-24).Mere appearances, dishonesty and deception harm and pervert the heart.Despite our every attempt to appear as something we are not, our heart is the ultimate judge, not of what we show or hide from others, but of who we truly are.It is the basis for any sound life project; nothing worthwhile can be undertaken apart from the heart.False appearances and untruths ultimately leave us empty-handed.
    7. As an illustration of this, I would repeat a story I have already told on another occasion.“For the carnival, when we were children, my grandmother would make a pastry using a very thin batter.When she dropped the strips of batter into the oil, they would expand, but then, when we bit into them, they were empty inside.In the dialect we spoke, those cookies were called ‘lies’…My grandmother explained why: ‘Like lies, they look big, but are empty inside; they are false, unreal’”.[5]
    8. Instead of running after superficial satisfactions and playing a role for the benefit of others, we would do better to think about the really important questions in life.Who am I, really?What am I looking for?What direction do I want to give to my life, my decisions and my actions?Why and for what purpose am I in this world?How do I want to look back on my life once it ends?What meaning do I want to give to all my experiences?Who do I want to be for others?Who am I for God?All these questions lead us back to the heart.
    RETURNING TO THE HEART
    9. In this “liquid” world of ours, we need to start speaking once more about the heart and thinking about this place where every person, of every class and condition, creates a synthesis, where they encounter the radical source of their strengths, convictions, passions and decisions.Yet, we find ourselves immersed in societies of serial consumers who live from day to day, dominated by the hectic pace and bombarded by technology, lacking in the patience needed to engage in the processes that an interior life by its very nature requires.In contemporary society, people “risk losing their centre, the centre of their very selves”.[6]“Indeed, the men and women of our time often find themselves confused and torn apart, almost bereft of an inner principle that can create unity and harmony in their lives and actions.Models of behaviour that, sadly, are now widespread exaggerate our rational-technological dimension or, on the contrary, that of our instincts”.[7]No room is left for the heart.
    10. The issues raised by today’s liquid society are much discussed, but this depreciation of the deep core of our humanity – the heart – has a much longer history.We find it already present in Hellenic and pre-Christian rationalism, in post-Christian idealism and in materialism in its various guises.The heart has been ignored in anthropology, and the great philosophical tradition finds it a foreign notion, preferring other concepts such as reason, will or freedom.The very meaning of the term is imprecise and hard to situate within our human experience.Perhaps this is due to the difficulty of treating it as a “clear and distinct idea”, or because it entails the question of self-understanding, where the deepest part of us is also that which is least known.Even encountering others does not necessarily prove to be a way of encountering ourselves, inasmuch as our thought patterns are dominated by an unhealthy individualism.Many people feel safer constructing their systems of thought in the more readily controllable domain of intelligence and will.The failure to make room for the heart, as distinct from our human powers and passions viewed in isolation from one another, has resulted in a stunting of the idea of a personal centre, in which love, in the end, is the one reality that can unify all the others.
    11. If we devalue the heart, we also devalue what it means to speak from the heart, to act with the heart, to cultivate and heal the heart.If we fail to appreciate the specificity of the heart, we miss the messages that the mind alone cannot communicate; we miss out on the richness of our encounters with others; we miss out on poetry.We also lose track of history and our own past, since our real personal history is built with the heart.At the end of our lives, that alone will matter.
    12. It must be said, then, that we have a heart, a heart that coexists with other hearts that help to make it a “Thou”.Since we cannot develop this theme at length, we will take a character from one of Dostoevsky’s novels, Nikolai Stavrogin.[8]Romano Guardini argues that Stavrogin is the very embodiment of evil, because his chief trait is his heartlessness: “Stavrogin has no heart, hence his mind is cold and empty and his body sunken in bestial sloth and sensuality.He has no heart, hence he can draw close to no one and no one can ever truly draw close to him.For only the heart creates intimacy, true closeness between two persons.Only the heart is able to welcome and offer hospitality.Intimacy is the proper activity and the domain of the heart.Stavrogin is always infinitely distant, even from himself, because a man can enter into himself only with the heart, not with the mind.It is not in a man’s power to enter into his own interiority with the mind.Hence, if the heart is not alive, man remains a stranger to himself”.[9]
    13. All our actions need to be put under the “political rule” of the heart.In this way, our aggressiveness and obsessive desires will find rest in the greater good that the heart proposes and in the power of the heart to resist evil.The mind and the will are put at the service of the greater good by sensing and savouring truths, rather than seeking to master them as the sciences tend to do.The will desires the greater good that the heart recognizes, while the imagination and emotions are themselves guided by the beating of the heart.
    14. It could be said, then, that I am my heart, for my heart is what sets me apart, shapes my spiritual identity and puts me in communion with other people.The algorithms operating in the digital world show that our thoughts and will are much more “uniform” than we had previously thought.They are easily predictable and thus capable of being manipulated.That is not the case with the heart.
    15. The word “heart” proves its value for philosophy and theology in their efforts to reach an integral synthesis.Nor can its meaning be exhausted by biology, psychology, anthropology or any other science.It is one of those primordial words that “describe realities belonging to man precisely in so far as he is one whole (as a corporeo-spiritual person)”.[10]It follows that biologists are not being more “realistic” when they discuss the heart, since they see only one aspect of it; the whole is not less real, but even more real.Nor can abstract language ever acquire the same concrete and integrative meaning.The word “heart” evokes the inmost core of our person, and thus it enables us to understand ourselves in our integrity and not merely under one isolated aspect.
    16. This unique power of the heart also helps us to understand why, when we grasp a reality with our heart, we know it better and more fully.This inevitably leads us to the love of which the heart is capable, for “the inmost core of reality is love”.[11]For Heidegger, as interpreted by one contemporary thinker, philosophy does not begin with a simple concept or certainty, but with a shock: “Thought must be provoked before it begins to work with concepts or while it works with them.Without deep emotion, thought cannot begin.The first mental image would thus be goose bumps.What first stirs one to think and question is deep emotion.Philosophy always takes place in a basic mood (Stimmung)”.[12]That is where the heart comes in, since it “houses the states of mind and functions as a ‘keeper of the state of mind’.The ‘heart’ listens in a non-metaphoric way to ‘the silent voice’ of being, allowing itself to be tempered and determined by it”.[13]
    THE HEART UNITES THE FRAGMENTS
    17. At the same time, the heart makes all authentic bonding possible, since a relationship not shaped by the heart is incapable of overcoming the fragmentation caused by individualism.Two monads may approach one another, but they will never truly connect.A society dominated by narcissism and self-centredness will increasingly become “heartless”.This will lead in turn to the “loss of desire”, since as other persons disappear from the horizon we find ourselves trapped within walls of our own making, no longer capable of healthy relationships.[14]As a result, we also become incapable of openness to God.As Heidegger puts it, to be open to the divine we need to build a “guest house”.[15]
    18. We see, then, that in the heart of each person there is a mysterious connection between self-knowledge and openness to others, between the encounter with one’s personal uniqueness and the willingness to give oneself to others.We become ourselves only to the extent that we acquire the ability to acknowledge others, while only those who can acknowledge and accept themselves are then able to encounter others.
    19. The heart is also capable of unifying and harmonizing our personal history, which may seem hopelessly fragmented, yet is the place where everything can make sense.The Gospel tells us this in speaking of Our Lady, who saw things with the heart.She was able to dialogue with the things she experienced by pondering them in her heart, treasuring their memory and viewing them in a greater perspective.The best expression of how the heart thinks is found in the two passages in Saint Luke’s Gospel that speak to us of how Mary “treasured (synetérei) all these things and pondered (symbállousa) them in her heart” (cf.Lk2:19 and 51).The Greek verbsymbállein, “ponder”, evokes the image of putting two things together (“symbols”) in one’s mind and reflecting on them, in a dialogue with oneself.In Luke 2:51, the verb used isdietérei, which has the sense of “keep”.What Mary “kept” was not only her memory of what she had seen and heard, but also those aspects of it that she did not yet understand; these nonetheless remained present and alive in her memory, waiting to be “put together” in her heart.
    20. In this age of artificial intelligence, we cannot forget that poetry and love are necessary to save our humanity.No algorithm will ever be able to capture, for example, the nostalgia that all of us feel, whatever our age, and wherever we live, when we recall how we first used a fork to seal the edges of the pies that we helped our mothers or grandmothers to make at home. It was a moment of culinary apprenticeship, somewhere between child-play and adulthood, when we first felt responsible for working and helping one another.Along with the fork, I could also mention thousands of other little things that are a precious part of everyone’s life: a smile we elicited by telling a joke, a picture we sketched in the light of a window, the first game of soccer we played with a rag ball, the worms we collected in a shoebox, a flower we pressed in the pages of a book, our concern for a fledgling bird fallen from its nest, a wish we made in plucking a daisy.All these little things, ordinary in themselves yet extraordinary for us, can never be captured by algorithms.The fork, the joke, the window, the ball, the shoebox, the book, the bird, the flower: all of these live on as precious memories “kept” deep in our heart.
    21. This profound core, present in every man and woman, is not that of the soul, but of the entire person in his or her unique psychosomatic identity.Everything finds its unity in the heart, which can be the dwelling-place of love in all its spiritual, psychic and even physical dimensions.In a word, if love reigns in our heart, we become, in a complete and luminous way, the persons we are meant to be, for every human being is created above all else for love.In the deepest fibre of our being, we were made to love and to be loved.
    22. For this reason, when we witness the outbreak of new wars, with the complicity, tolerance or indifference of other countries, or petty power struggles over partisan interests, we may be tempted to conclude that our world is losing its heart.We need only to see and listen to the elderly women – from both sides – who are at the mercy of these devastating conflicts.It is heart-breaking to see them mourning for their murdered grandchildren, or longing to die themselves after losing the homes where they spent their entire lives.Those women, who were often pillars of strength and resilience amid life’s difficulties and hardships, now, at the end of their days, are experiencing, in place of a well-earned rest, only anguish, fear and outrage.Casting the blame on others does not resolve these shameful and tragic situations.To see these elderly women weep, and not feel that this is something intolerable, is a sign of a world that has grown heartless.
    23. Whenever a person thinks, questions and reflects on his or her true identity, strives to understand the deeper questions of life and to seek God, or experiences the thrill of catching a glimpse of truth, it leads to the realization that our fulfilment as human beings is found in love.In loving, we sense that we come to know the purpose and goal of our existence in this world.Everything comes together in a state of coherence and harmony.It follows that, in contemplating the meaning of our lives, perhaps the most decisive question we can ask is, “Do I have a heart?”
    FIRE
    24. All that we have said has implications for the spiritual life.For example, the theology underlying the Spiritual Exercises of Saint Ignatius Loyola is based on “affection” (affectus).The structure of the Exercises assumes a firm and heartfelt desire to “rearrange” one’s life, a desire that in turn provides the strength and the wherewithal to achieve that goal.The rules and the compositions of place that Ignatius furnishes are in the service of something much more important, namely, the mystery of the human heart.Michel de Certeau shows how the “movements” of which Ignatius speaks are the “inbreaking” of God’s desire and the desire of our own heart amid the orderly progression of the meditations.Something unexpected and hitherto unknown starts to speak in our heart, breaking through our superficial knowledge and calling it into question.This is the start of a new process of “setting our life in order”, beginning with the heart.It is not about intellectual concepts that need to be put into practice in our daily lives, as if affectivity and practice were merely the effects of – and dependent upon – the data of knowledge.[16]
    25. Where the thinking of the philosopher halts, there the heart of the believer presses on in love and adoration, in pleading for forgiveness and in willingness to serve in whatever place the Lord allows us to choose, in order to follow in his footsteps.At that point, we realize that in God’s eyes we are a “Thou”, and for that very reason we can be an “I”.Indeed, only the Lord offers to treat each one of us as a “Thou”, always and forever.Accepting his friendship is a matter of the heart; it is what constitutes us as persons in the fullest sense of that word.
    26. Saint Bonaventure tells us that in the end we should not pray for light, but for “raging fire”.[17]He teaches that, “faith is in the intellect, in such a way as to provoke affection.In this sense, for example, the knowledge that Christ died for us does not remain knowledge, but necessarily becomes affection, love”.[18]Along the same lines, Saint John Henry Newman took as his motto the phraseCor ad cor loquitur, since, beyond all our thoughts and ideas, the Lord saves us by speaking to our hearts from his Sacred Heart.This realization led him, the distinguished intellectual, to recognize that his deepest encounter with himself and with the Lord came not from his reading or reflection, but from his prayerful dialogue, heart to heart, with Christ, alive and present.It was in the Eucharist that Newman encountered the living heart of Jesus, capable of setting us free, giving meaning to each moment of our lives, and bestowing true peace: “O most Sacred, most loving Heart of Jesus, Thou art concealed in the Holy Eucharist, and Thou beatest for us still…I worship Thee then with all my best love and awe, with my fervent affection, with my most subdued, most resolved will.O my God, when Thou dost condescend to suffer me to receive Thee, to eat and drink Thee, and Thou for a while takest up Thy abode within me, O make my heart beat with Thy Heart.Purify it of all that is earthly, all that is proud and sensual, all that is hard and cruel, of all perversity, of all disorder, of all deadness.So fill it with Thee, that neither the events of the day nor the circumstances of the time may have power to ruffle it, but that in Thy love and Thy fear it may have peace”.[19]
    27. Before the heart of Jesus, living and present, our mind, enlightened by the Spirit, grows in the understanding of his words and our will is moved to put them into practice.This could easily remain on the level of a kind of self-reliant moralism.Hearing and tasting the Lord, and paying him due honour, however, is a matter of the heart. Only the heart is capable of setting our other powers and passions, and our entire person, in a stance of reverence and loving obedience before the Lord.
    THE WORLD CAN CHANGE, BEGINNING WITH THE HEART
    28. It is only by starting from the heart that our communities will succeed in uniting and reconciling differing minds and wills, so that the Spirit can guide us in unity as brothers and sisters.Reconciliation and peace are also born of the heart.The heart of Christ is “ecstasy”, openness, gift and encounter.In that heart, we learn to relate to one another in wholesome and happy ways, and to build up in this world God’s kingdom of love and justice.Our hearts, united with the heart of Christ, are capable of working this social miracle.
    29. Taking the heart seriously, then, has consequences for society as a whole.The Second Vatican Council teaches that, “every one of us needs a change of heart; we must set our gaze on the whole world and look to those tasks we can all perform together in order to bring about the betterment of our race”.[20]For “the imbalances affecting the world today are in fact a symptom of a deeper imbalance rooted in the human heart”.[21]In pondering the tragedies afflicting our world, the Council urges us to return to the heart.It explains that human beings “by their interior life, transcend the entire material universe; they experience this deep interiority when they enter into their own heart, where God, who probes the heart, awaits them, and where they decide their own destiny in the sight of God”.[22]
    30. This in no way implies an undue reliance on our own abilities.Let us never forget that our hearts are not self-sufficient, but frail and wounded.They possess an ontological dignity, yet at the same time must seek an ever more dignified life.[23]The Second Vatican Council points out that “the ferment of the Gospel has aroused and continues to arouse in human hearts an unquenchable thirst for human dignity”.[24]Yet to live in accordance with this dignity, it is not enough to know the Gospel or to carry out mechanically its demands.We need the help of God’s love.Let us turn, then, to the heart of Christ, that core of his being, which is a blazing furnace of divine and human love and the most sublime fulfilment to which humanity can aspire.There, in that heart, we truly come at last to know ourselves and we learn how to love.
    31. In the end, that Sacred Heart is the unifying principle of all reality, since “Christ is the heart of the world, and the paschal mystery of his death and resurrection is the centre of history, which, because of him, is a history of salvation”.[25]All creatures “are moving forward with us and through us towards a common point of arrival, which is God, in that transcendent fullness where the risen Christ embraces and illumines all things”.[26]In the presence of the heart of Christ, I once more ask the Lord to have mercy on this suffering world in which he chose to dwell as one of us.May he pour out the treasures of his light and love, so that our world, which presses forward despite wars, socio-economic disparities and uses of technology that threaten our humanity, may regain the most important and necessary thing of all: its heart.
    CHAPTER TWO
    ACTIONS AND WORDS OF LOVE
    32. The heart of Christ, as the symbol of the deepest and most personal source of his love for us, is the very core of the initial preaching of the Gospel.It stands at the origin of our faith, as the wellspring that refreshes and enlivens our Christian beliefs.
    ACTIONS THAT REFLECT THE HEART
    33. Christ showed the depth of his love for us not by lengthy explanations but by concrete actions.By examining his interactions with others, we can come to realize how he treats each one of us, even though at times this may be difficult to see.Let us now turn to the place where our faith can encounter this truth: the word of God.
    34. The Gospel tells us that Jesus “came to his own” (cf.Jn1:11).Those words refer to us, for the Lord does not treat us as strangers but as a possession that he watches over and cherishes.He treats us truly as “his own”.This does not mean that we are his slaves, something that he himself denies: “I do not call you servants” (Jn15:15).Rather, it refers to the sense of mutual belonging typical of friends.Jesus came to meet us, bridging all distances; he became as close to us as the simplest, everyday realities of our lives.Indeed, he has another name, “Emmanuel”, which means “God with us”, God as part of our lives, God as living in our midst.The Son of God became incarnate and “emptied himself, taking the form of a slave” (Phil2:7).
    35. This becomes clear when we see Jesus at work.He seeks people out, approaches them, ever open to an encounter with them.We see it when he stops to converse with the Samaritan woman at the well where she went to draw water (cf.Jn4:5-7).We see it when, in the darkness of night, he meets Nicodemus, who feared to be seen in his presence (cf.Jn3:1-2).We marvel when he allows his feet to be washed by a prostitute (cf.Lk7:36-50), when he says to the woman caught in adultery, “Neither do I condemn you” (Jn8:11), or again when he chides the disciples for their indifference and quietly asks the blind man on the roadside, “What do you want me to do for you?” (Mk10:51).Christ shows that God is closeness, compassion and tender love.
    36. Whenever Jesus healed someone, he preferred to do it, not from a distance but in close proximity: “He stretched out his hand and touched him” (Mt8:3).“He touched her hand” (Mt8:15).“He touched their eyes” (Mt9:29).Once he even stopped to cure a deaf man with his own saliva (cf.Mk7:33), as a mother would do, so that people would not think of him as removed from their lives.“The Lord knows the fine science of the caress.In his compassion, God does not love us with words; he comes forth to meet us and, by his closeness, he shows us the depth of his tender love”.[27]
    37. If we find it hard to trust others because we have been hurt by lies, injuries and disappointments, the Lord whispers in our ear: “Take heart, son!” (Mt9:2), “Take heart, daughter!” (Mt9:22).He encourages us to overcome our fear and to realize that, with him at our side, we have nothing to lose.To Peter, in his fright, “Jesus immediately reached out his hand and caught him”, saying, “You of little faith, why did you doubt?” (Mt14:31).Nor should you be afraid.Let him draw near and sit at your side.There may be many people we distrust, but not him.Do not hesitate because of your sins.Keep in mind that many sinners “came and sat with him” (Mt9:10), yet Jesus was scandalized by none of them.It was the religious élite that complained and treated him as “a glutton and a drunkard, a friend of tax collectors and sinners” (Mt11:19).When the Pharisees criticized him for his closeness to people deemed base or sinful, Jesus replied, “I desire mercy, not sacrifice” (Mt9:13).
    38. That same Jesus is now waiting for you to give him the chance to bring light to your life, to raise you up and to fill you with his strength.Before his death, he assured his disciples, “I will not leave you orphaned; I am coming to you.In a little while the world will no longer see me, but you will see me” (Jn14:18-19).Jesus always finds a way to be present in your life, so that you can encounter him.
    JESUS’ GAZE
    39. The Gospel tells us that a rich man came up to Jesus, full of idealism yet lacking in the strength needed to change his life.Jesus then “looked at him” (Mk10:21).Can you imagine that moment, that encounter between his eyes and those of Jesus?If Jesus calls you and summons you for a mission, he first looks at you, plumbs the depths of your heart and, knowing everything about you, fixes his gaze upon you.So it was when, “as he walked by the Sea of Galilee, he saw two brothers… and as he went from there, he saw two other brothers” (Mt4:18, 21).
    40. Many a page of the Gospel illustrates how attentive Jesus was to individuals and above all to their problems and needs.We are told that, “when he saw the crowds, he had compassion for them, because they were harassed and helpless” (Mt9:36).Whenever we feel that everyone ignores us, that no one cares what becomes of us, that we are of no importance to anyone, he remains concerned for us.To Nathanael, standing apart and busy about his own affairs, he could say, “I saw you under the fig tree before Philip called you” (Jn1:48).
    41. Precisely out of concern for us, Jesus knows every one of our good intentions and small acts of charity.The Gospel tells us that once he “saw a poor widow put in two small copper coins” in the Temple treasury (Lk21:2) and immediately brought it to the attention of his disciples.Jesus thus appreciates the good that he sees in us. When the centurion approached him with complete confidence, “Jesus listened to him and was amazed” (Mt8:10).How reassuring it is to know that, even if others are not aware of our good intentions or actions, Jesus sees them and regards them highly.
    42. In his humanity, Jesus learned this from Mary, his mother.Our Lady carefully pondered the things she had experienced; she “treasured them… in her heart” (Lk2:19, 51) and, with Saint Joseph, she taught Jesus from his earliest years to be attentive in this same way.
    JESUS’ WORDS
    43. Although the Scriptures preserve Jesus’ words, ever alive and timely, there are moments when he speaks to us inwardly, calls us and leads us to a better place.That better place is his heart.There he invites us to find fresh strength and peace: “Come to me, all who are weary and are carrying heavy burdens, and I will give you rest” (Mt11:28).In this sense, he could say to his disciples, “Abide in me” (Jn15:4).
    44. Jesus’ words show that his holiness did not exclude deep emotions.On various occasions, he demonstrated a love that was both passionate and compassionate.He could be deeply moved and grieved, even to the point of shedding tears.It is clear that Jesus was not indifferent to the daily cares and concerns of people, such as their weariness or hunger: “I have compassion for this crowd… they have nothing to eat… they will faint on the way, and some of them have come from a great distance” (Mk8:2-3).
    45. The Gospel makes no secret of Jesus’ love for Jerusalem: “As he came near and saw the city, he wept over it” (Lk19:41).He then voiced the deepest desire of his heart: “If you had only recognized on this day the things that make for peace” (Lk19:42).The evangelists, while at times showing him in his power and glory, also portray his profound emotions in the face of death and the grief felt by his friends.Before recounting how Jesus, standing before the tomb of Lazarus, “began to weep” (Jn11:35), the Gospel observes that, “Jesus loved Martha and her sister and Lazarus” (Jn11:5) and that, seeing Mary and those who were with her weeping, “he was greatly disturbed in spirit and deeply moved” (Jn11:33).The Gospel account leaves no doubt that his tears were genuine, the sign of inner turmoil.Nor do the Gospels attempt to conceal Jesus’ anguish over his impending violent death at the hands of those whom he had loved so greatly: he “began to be distressed and agitated” (Mk14:33), even to the point of crying out, “I am deeply grieved, even to death” (Mk14:34).This inner turmoil finds its most powerful expression in his cry from the cross: “My God, my God, why have you forsaken me?” (Mk15:34).
    46. At first glance, all this may smack of pious sentimentalism.Yet it is supremely serious and of decisive importance, and finds its most sublime expression in Christ crucified.The cross is Jesus’ most eloquent word of love.A word that is not shallow, sentimental or merely edifying.It is love, sheer love.That is why Saint Paul, struggling to find the right words to describe his relationship with Christ, could speak of “the Son of God, who loved me and gave himself for me” (Gal2:20).This was Paul’s deepest conviction: the knowledge that he was loved.Christ’s self-offering on the cross became the driving force in Paul’s life, yet it only made sense to him because he knew that something even greater lay behind it: the fact that “he loved me”.At a time when many were seeking salvation, prosperity or security elsewhere, Paul, moved by the Spirit, was able to see farther and to marvel at the greatest and most essential thing of all: “Christ loved me”.
    47. Now, after considering Christ and seeing how his actions and words grant us insight into his heart, let us turn to the Church’s reflection on the holy mystery of the Lord’s Sacred Heart.
    CHAPTER THREE
    THIS IS THE HEART THAT HAS LOVED SO GREATLY
    48. Devotion to the heart of Christ is not the veneration of a single organ apart from the Person of Jesus.What we contemplate and adore is the whole Jesus Christ, the Son of God made man, represented by an image that accentuates his heart.That heart of flesh is seen as the privileged sign of the inmost being of the incarnate Son and his love, both divine and human.More than any other part of his body, the heart of Jesus is “the natural sign and symbol of his boundless love”.[28]
    WORSHIPING CHRIST
    49. It is essential to realize that our relationship to the Person of Jesus Christ is one of friendship and adoration, drawn by the love represented under the image of his heart.We venerate that image, yet our worship is directed solely to the living Christ, in his divinity and his plenary humanity, so that we may be embraced by his human and divine love.
    50. Whatever the image employed, it is clear that the living heart of Christ – not its representation – is the object of our worship, for it is part of his holy risen body, which is inseparable from the Son of God who assumed that body forever.We worship it because it is “the heart of the Person of the Word, to whom it is inseparably united”.[29]Nor do we worship it for its own sake, but because with this heart the incarnate Son is alive, loves us and receives our love in return.Any act of love or worship of his heart is thus “really and truly given to Christ himself”,[30]since it spontaneously refers back to him and is “a symbol and a tender image of the infinite love of Jesus Christ”.[31]
    51. For this reason, it should never be imagined that this devotion may distract or separate us from Jesus and his love.In a natural and direct way, it points us to him and to him alone, who calls us to a precious friendship marked by dialogue, affection, trust and adoration.The Christ we see depicted with a pierced and burning heart is the same Christ who, for love of us, was born in Bethlehem, passed through Galilee healing the sick, embracing sinners and showing mercy.The same Christ who loved us to the very end, opening wide his arms on the cross, who then rose from the dead and now lives among us in glory.
    VENERATING HIS IMAGE
    52. While the image of Christ and his heart is not in itself an object of worship, neither is it simply one among many other possible images.It was not devised at a desk or designed by an artist; it is “no imaginary symbol, but a real symbol which represents the centre, the source from which salvation flowed for all humanity”.[32]
    53. Universal human experience has made the image of the heart something unique.Indeed, throughout history and in different parts of the world, it has become a symbol of personal intimacy, affection, emotional attachment and capacity for love.Transcending all scientific explanations, a hand placed on the heart of a friend expresses special affection: when two persons fall in love and draw close to one another, their hearts beat faster; when we are abandoned or deceived by someone we love, our hearts sink.So too, when we want to say something deeply personal, we often say that we are speaking “from the heart”.The language of poetry reflects the power of these experiences.In the course of history, the heart has taken on unique symbolic value that is more than merely conventional.
    54. It is understandable, then, that the Church has chosen the image of the heart to represent the human and divine love of Jesus Christ and the inmost core of his Person.Yet, while the depiction of a heart afire may be an eloquent symbol of the burning love of Jesus Christ, it is important that this heart not be represented apart from him.In this way, his summons to a personal relationship of encounter and dialogue will become all the more meaningful.[33]The venerable image portraying Christ holding out his loving heart also shows him looking directly at us, inviting us to encounter, dialogue and trust; it shows his strong hands capable of supporting us and his lips that speak personally to each of us.
    55. The heart, too, has the advantage of being immediately recognizable as the profound unifying centre of the body, an expression of the totality of the person, unlike other individual organs.As a part that stands for the whole, we could easily misinterpret it, were we to contemplate it apart from the Lord himself.The image of the heart should lead us to contemplate Christ in all the beauty and richness of his humanity and divinity.
    56. Whatever particular aesthetic qualities we may ascribe to various portrayals of Christ’s heart when we pray before them, it is not the case that “something is sought from them or that blind trust is put in images as once was done by the Gentiles”.Rather, “through these images that we kiss, and before which we kneel and uncover our heads, we are adoring Christ”.[34]
    57. Certain of these representations may indeed strike us as tasteless and not particularly conducive to affection or prayer.Yet this is of little importance, since they are only invitations to prayer, and, to cite an Eastern proverb, we should not limit our gaze to the finger that points us to the moon.Whereas the Eucharist is a real presence to be worshiped, sacred images, albeit blessed, point beyond themselves, inviting us to lift up our hearts and to unite them to the heart of the living Christ.The image we venerate thus serves as a summons to make room for an encounter with Christ, and to worship him in whatever way we wish to picture him.Standing before the image, we stand before Christ, and in his presence, “love pauses, contemplates mystery, and enjoys it in silence”.[35]
    58. At the same time, we must never forget that the image of the heart speaks to us of the flesh and of earthly realities.In this way, it points us to the God who wished to become one of us, a part of our history, and a companion on our earthly journey.A more abstract or stylized form of devotion would not necessarily be more faithful to the Gospel, for in this eloquent and tangible sign we see how God willed to reveal himself and to draw close to us.
    A LOVE THAT IS TANGIBLE
    59. On the other hand, love and the human heart do not always go together, since hatred, indifference and selfishness can also reign in our hearts.Yet we cannot attain our fulfilment as human beings unless we open our hearts to others; only through love do we become fully ourselves.The deepest part of us, created for love, will fulfil God’s plan only if we learn to love.And the heart is the symbol of that love.
    60. The eternal Son of God, in his utter transcendence, chose to love each of us with a human heart.His human emotions became the sacrament of that infinite and endless love.His heart, then, is not merely a symbol for some disembodied spiritual truth.In gazing upon the Lord’s heart, we contemplate a physical reality, his human flesh, which enables him to possess genuine human emotions and feelings, like ourselves, albeit fully transformed by his divine love.Our devotion must ascend to the infinite love of the Person of the Son of God, yet we need to keep in mind that his divine love is inseparable from his human love.The image of his heart of flesh helps us to do precisely this.
    61. Since the heart continues to be seen in the popular mind as the affective centre of each human being, it remains the best means of signifying the divine love of Christ, united forever and inseparably to his wholly human love.Pius XII observed that the Gospel, in referring to the love of Christ’s heart, speaks “not only of divine charity but also human affection”.Indeed, “the heart of Jesus Christ, hypostatically united to the divine Person of the Word, beyond doubt throbbed with love and every other tender affection”.[36]
    62. The Fathers of the Church, opposing those who denied or downplayed the true humanity of Christ, insisted on the concrete and tangible reality of the Lord’s human affections.Saint Basil emphasized that the Lord’s incarnation was not something fanciful, and that “the Lord possessed our natural affections”.[37]Saint John Chrysostom pointed to an example: “Had he not possessed our nature, he would not have experienced sadness from time to time”.[38]Saint Ambrose stated that “in taking a soul, he took on the passions of the soul”.[39]For Saint Augustine, our human affections, which Christ assumed, are now open to the life of grace: “The Lord Jesus assumed these affections of our human weakness, as he did the flesh of our human weakness, not out of necessity, but consciously and freely…lest any who feel grief and sorrow amid the trials of life should think themselves separated from his grace”.[40]Finally, Saint John Damascene viewed the genuine affections shown by Christ in his humanity as proof that he assumed our nature in its entirety in order to redeem and transform it in its entirety: Christ, then, assumed all that is part of human nature, so that all might be sanctified.[41]
    63. Here, we can benefit from the thoughts of a theologian who maintains that, “due to the influence of Greek thought, theology long relegated the body and feelings to the world of the pre-human or sub-human or potentially inhuman; yet what theology did not resolve in theory, spirituality resolved in practice.This, together with popular piety, preserved the relationship with the corporal, psychological and historical reality of Jesus.The Stations of the Cross, devotion to Christ’s wounds, his Precious Blood and his Sacred Heart, and a variety of Eucharist devotions… all bridged the gaps in theology by nourishing our hearts and imagination, our tender love for Christ, our hope and memory, our desires and feelings.Reason and logic took other directions”.[42]
    A THREEFOLD LOVE
    64. Nor do we remain only on the level of the Lord’s human feelings, beautiful and moving as they are.In contemplating Christ’s heart we also see how, in his fine and noble sentiments, his kindness and gentleness and his signs of genuine human affection, the deeper truth of his infinite divine love is revealed.In the words of Benedict XVI, “from the infinite horizon of his love, God wished to enter into the limits of human history and the human condition.He took on a body and a heart.Thus, we can contemplate and encounter the infinite in the finite, the invisible and ineffable mystery in the human heart of Jesus the Nazarene”.[43]
    65. The image of the Lord’s heart speaks to us in fact of a threefold love.First, we contemplate his infinite divine love.Then our thoughts turn to the spiritual dimension of his humanity, in which the heart is “the symbol of that most ardent love which, infused into his soul, enriches his human will”.Finally, “it is a symbol also of his sensible love”.[44]
    66. These three loves are not separate, parallel or disconnected, but together act and find expression in a constant and vital unity.For “by faith, through which we believe that the human and divine nature were united in the Person of Christ, we can see the closest bonds between the tender love of the physical heart of Jesus and the twofold spiritual love, namely human and divine”.[45]
    67. Entering into the heart of Christ, we feel loved by a human heart filled with affections and emotions like our own.Jesus’ human will freely chooses to love us, and that spiritual love is flooded with grace and charity.When we plunge into the depths of his heart, we find ourselves overwhelmed by the immense glory of his infinite love as the eternal Son, which we can no longer separate from his human love.It is precisely in his human love, and not apart from it, that we encounter his divine love: we discover “the infinite in the finite”.[46]
    68. It is the constant and unequivocal teaching of the Church that our worship of Christ’s person is undivided, inseparably embracing both his divine and his human natures.From ancient times, the Church has taught that we are to “adore one and the same Christ, the Son of God and of man, consisting of and in two inseparable and undivided natures”.[47]And we do so “with one act of adoration… inasmuch as the Word became flesh”.[48]Christ is in no way “worshipped in two natures, whereby two acts of worship are introduced”; instead, we venerate “by one act of worship God the Word made flesh, together with his own flesh”.[49]
    69. Saint John of the Cross sought to explain that in mystical experience the infinite love of the risen Christ is not perceived as alien to our lives.The infinite in some way “condescends” to enable us, through the open heart of Christ, to experience an encounter of truly reciprocal love, for “it is indeed credible that a bird of lowly flight can capture the royal eagle of the heights, if this eagle descends with the desire of being captured”.[50]He also explains that the Bridegroom, “beholding that the bride is wounded with love for him, because of her moan he too is wounded with love for her.Among lovers, the wound of one is the wound of both”.[51]John of the Cross regards the image of Christ’s pierced side as an invitation to full union with the Lord.Christ is the wounded stag, wounded when we fail to let ourselves be touched by his love, who descends to the streams of water to quench his thirst and is comforted whenever we turn to him:
    “Return, dove!
    The wounded stag
    is in sight on the hill,
    cooled by the breeze of your flight”.[52]
    TRINITARIAN PERSPECTIVES
    70. Devotion to the heart of Jesus, as a direct contemplation of the Lord that draws us into union with him, is clearly Christological in nature.We see this in the Letter to the Hebrews, which urges us to “run with perseverance the race that is set before us, looking to Jesus” (12:2).At the same time, we need to realize that Jesus speaks of himself as the way to the Father: “I am the way…No one comes to the Father except through me” (Jn14:6).Jesus wants to bring us to the Father.That is why, from the very beginning, the Church’s preaching does not end with Jesus, but with the Father.As source and fullness, the Father is ultimately the one to be glorified.[53]
    71. If we turn, for example, to the Letter to the Ephesians, we can see clearly how our worship is directed to the Father: “I bow my knees before the Father” (3:14).There is “one God and Father of all, who is above all and through all and in all” (4:6).“Give thanks to God the Father at all times and for everything” (5:20).It is the Father “for whom we exist” (1 Cor8:6).In this sense, Saint John Paul II could say that, “the whole of the Christian life is like a greatpilgrimage to the house of the Father”.[54]This too was the experience of Saint Ignatius of Antioch on his path to martyrdom: “In me there is left no spark of desire for mundane things, but only a murmur of living water that whispers within me, ‘Come to the Father’”.[55]
    72. The Father is, before all else, the Father of Jesus Christ: “Blessed be the God and Father of our Lord Jesus Christ”(Eph1:3).He is “the God of our Lord Jesus Christ, the Father of glory” (Eph1:17).When the Son became man, all the hopes and aspirations of his human heart were directed towards the Father.If we consider the way Christ spoke of the Father, we can grasp the love and affection that his human heart felt for him, this complete and constant orientation towards him.[56]Jesus’ life among us was a journey of response to the constant call of his human heart to come to the Father.[57]
    73. We know that the Aramaic word Jesus used to address the Father was “Abba”, an intimate and familiar term that some found disconcerting (cf.Jn5:18).It is how he addressed the Father in expressing his anguish at his impending death: “Abba,Father, for you all things are possible; remove this cup from me; yet, not what I want, but what you want” (Mk14:36).Jesus knew well that he had always been loved by the Father: “You loved me before the foundation of the world” (Jn17:24).In his human heart, he had rejoiced at hearing the Father say to him: “You are my Son, the Beloved; with you I am well pleased” (Mk1:11).
    74. The Fourth Gospel tells us that the eternal Son was always “close to the Father’s heart” (Jn1:18).[58]Saint Irenaeus thus declares that “the Son of God was with the Father from the beginning”.[59]Origen, for his part, maintains that the Son perseveres “in uninterrupted contemplation of the depths of the Father”.[60]When the Son took flesh, he spent entire nights conversing with his beloved Father on the mountaintop (cf.Lk6:12).He told us, “I must be in my Father’s house” (Lk2:49).We see too how he expressed his praise: “Jesus rejoiced in the Holy Spirit and said, ‘I thank you, Father, Lord of heaven and earth’ (Lk10:21).His last words, full of trust, were, “Father, into your hands I commend my spirit” (Lk23:46).
    75. Let us now turn to the Holy Spirit, whose fire fills the heart of Christ.As Saint John Paul II once said, Christ’s heart is “the Holy Spirit’s masterpiece”.[61]This is more than simply a past event, for even now “the heart of Christ is alive with the action of the Holy Spirit, to whom Jesus attributed the inspiration of his mission (cf.Lk4:18;Is61:1) and whose sending he had promised at the Last Supper.It is the Spirit who enables us to grasp the richness of the sign of Christ’s pierced side, from which the Church has sprung (cf.Sacrosanctum Concilium, 5)”.[62]In a word, “only the Holy Spirit can open up before us the fullness of the ‘inner man’, which is found in the heart of Christ.He alone can cause our human hearts to draw strength from that fullness, step by step”.[63]
    76. If we seek to delve more deeply into the mysterious working of the Spirit, we learn that he groans within us, saying “Abba!”Indeed,“the proof that you are children is that God has sent the Spirit of his Son into our hearts, crying, ‘Abba! Father!’” (Gal4:6).For “the Spirit bears witness with our spirit that we are children of God” (Rom8:16).The Holy Spirit at work in Christ’s human heart draws him unceasingly to the Father.When the Spirit unites us to the sentiments of Christ through grace, he makes us sharers in the Son’s relationship to the Father, whereby we receive “a spirit of adoption through which we cry out, ‘Abba! Father!’” (Rom8:15).
    77.Our relationship with the heart of Christ is thus changed, thanks to the prompting of the Spirit who guides us to the Father, the source of life and the ultimate wellspring of grace.Christ does not expect us simply to remain in him.His love is “the revelation of the Father’s mercy”,[64]and his desire is that, impelled by the Spirit welling up from his heart, we should ascend to the Father “with him and in him”.We give glory to the Father “through” Christ,[65]“with” Christ,[66]and “in” Christ.[67]Saint John Paul II taught that, “the Saviour’s heart invites us to return to the Father’s love, which is the source of every authentic love”.[68]This is precisely what the Holy Spirit, who comes to us through the heart of Christ, seeks to nurture in our hearts.For this reason, the liturgy, through the enlivening work of the Spirit, always addresses the Father from the risen heart of Christ.
    RECENT TEACHINGS OF THE MAGISTERIUM
    78.In numerous ways, Christ’s heart has always been present in the history of Christian spirituality.In the Scriptures and in the early centuries of the Church’s life, it appeared under the image of the Lord’s wounded side, as a fountain of grace and a summons to a deep and loving encounter.In this same guise, it has reappeared in the writings of numerous saints, past and present.In recent centuries, this spirituality has gradually taken on the specific form of devotion to the Sacred Heart of Jesus.
    79. A number of my Predecessors have spoken in various ways about the heart of Christ and exhorted us to unite ourselves to it.At the end of the nineteenth century, Leo XIII encouraged us to consecrate ourselves to the Sacred Heart, thus uniting our call to union with Christ and our wonder before the magnificence of his infinite love.[69]Some thirty years later, Pius XI presented this devotion as a “summa” of the experience of Christian faith.[70]Pius XII went on to declare that adoration of the Sacred Heart expresses in an outstanding way, as a sublime synthesis, the worship we owe to Jesus Christ.[71]
    80. More recently, Saint John Paul II presented the growth of this devotion in recent centuries as a response to the rise of rigorist and disembodied forms of spirituality that neglected the richness of the Lord’s mercy.At the same time, he saw it as a timely summons to resist attempts to create a world that leaves no room for God.“Devotion to the Sacred Heart, as it developed in Europe two centuries ago, under the impulse of the mystical experiences of Saint Margaret Mary Alacoque, was aresponse to Jansenist rigor, which ended up disregarding God’s infinite mercy…The men and women of the third millennium need the heart of Christin order to know God and to know themselves; they need it to build the civilization of love”.[72]
    81. Benedict XVI asked us to recognize in the heart of Christ an intimate and daily presence in our lives: “Every person needs a ‘centre’ for his or her own life, a source of truth and goodness to draw upon in the events, situations and struggles of daily existence.All of us, when we pause in silence, need to feel not only the beating of our own heart, but deeper still, the beating of a trustworthy presence, perceptible with faith’s senses and yet much more real: the presence of Christ, the heart of the world”.[73]
    FURTHER REFLECTIONS AND RELEVANCE FOR OUR TIMES
    82. The expressive and symbolic image of Christ’s heart is not the only means granted us by the Holy Spirit for encountering the love of Christ, yet it is, as we have seen, an especially privileged one.Even so, it constantly needs to be enriched, deepened and renewed through meditation, the reading of the Gospel and growth in spiritual maturity.Pius XII made it clear that the Church does not claim that, “we must contemplate and adore in the heart of Jesus a ‘formal’ image, that is, a perfect and absolute sign of his divine love, for the essence of this love can in no way be adequately expressed by any created image whatsoever”.[74]
    83. Devotion to Christ’s heart is essential for our Christian life to the extent that it expresses our openness in faith and adoration to the mystery of the Lord’s divine and human love.In this sense, we can once more affirm that the Sacred Heart is a synthesis of the Gospel.[75]We need to remember that the visions or mystical showings related by certain saints who passionately encouraged devotion to Christ’s heart are not something that the faithful are obliged to believe as if they were the word of God.[76]Nonetheless, they are rich sources of encouragement and can prove greatly beneficial, even if no one need feel forced to follow them should they not prove helpful on his or her own spiritual journey.At the same time, however, we should be mindful that, as Pius XII pointed out, this devotion cannot be said “to owe its origin to private revelations”.[77]
    84. The promotion of Eucharistic communion on the first Friday of each month, for example, sent a powerful message at a time when many people had stopped receiving communion because they were no longer confident of God’s mercy and forgiveness and regarded communion as a kind of reward for the perfect.In the context of Jansenism, the spread of this practice proved immensely beneficial, since it led to a clearer realization that in the Eucharist the merciful and ever-present love of the heart of Christ invites us to union with him.It can also be said that this practice can prove similarly beneficial in our own time, for a different reason.Amid the frenetic pace of today’s world and our obsession with free time, consumption and diversion, cell phones and social media, we forget to nourish our lives with the strength of the Eucharist.
    85. While no one should feel obliged to spend an hour in adoration each Thursday, the practice ought surely to be recommended.When we carry it out with devotion, in union with many of our brothers and sisters and discover in the Eucharist the immense love of the heart of Christ, we “adore, together with the Church, the sign and manifestation of the divine love that went so far as to love, through the heart of the incarnate Word, the human race”.[78]
    86. Many Jansenists found this difficult to comprehend, for they looked askance on all that was human, affective and corporeal, and so viewed this devotion as distancing us from pure worship of the Most High God.Pius XII described as “false mysticism”[79]the elitist attitude of those groups that saw God as so sublime, separate and distant that they regarded affective expressions of popular piety as dangerous and in need of ecclesiastical oversight.
    87. It could be argued that today, in place of Jansenism, we find ourselves before a powerful wave of secularization that seeks to build a world free of God.In our societies, we are also seeing a proliferation of varied forms of religiosity that have nothing to do with a personal relationship with the God of love, but are new manifestations of a disembodied spirituality.I must warn that within the Church too, a baneful Jansenist dualism has re-emerged in new forms.This has gained renewed strength in recent decades, but it is a recrudescence of that Gnosticism which proved so great a spiritual threat in the early centuries of Christianity because it refused to acknowledge the reality of “the salvation of the flesh”.For this reason, I turn my gaze to the heart of Christ and I invite all of us to renew our devotion to it.I hope this will also appeal to today’s sensitivities and thus help us to confront the dualisms, old and new, to which this devotion offers an effective response.
    88. I would add that the heart of Christ also frees us from another kind of dualism found in communities and pastors excessively caught up in external activities, structural reforms that have little to do with the Gospel, obsessive reorganization plans, worldly projects, secular ways of thinking and mandatory programmes.The result is often a Christianity stripped of the tender consolations of faith, the joy of serving others, the fervour of personal commitment to mission, the beauty of knowing Christ and the profound gratitude born of the friendship he offers and the ultimate meaning he gives to our lives.This too is the expression of an illusory and disembodied otherworldliness.
    89. Once we succumb to these attitudes, so widespread in our day, we tend to lose all desire to be cured of them.This leads me to propose to the whole Church renewed reflection on the love of Christ represented in his Sacred Heart.For there we find the whole Gospel, a synthesis of the truths of our faith, all that we adore and seek in faith, all that responds to our deepest needs.
    90. As we contemplate the heart of Christ, the incarnate synthesis of the Gospel, we can, following the example of Saint Therese of the Child Jesus, “place heartfelt trust not in ourselves but in the infinite mercy of a God who loves us unconditionally and has already given us everything in the cross of Jesus Christ”.[80]Therese was able to do this because she had discovered in the heart of Christ that God is love: “To me he has granted his infinite mercy, and through it I contemplate and adore the other divine perfections”.[81]That is why a popular prayer, directed like an arrow towards the heart of Christ, says simply: “Jesus, I trust in you”.[82]No other words are needed.
    91. In the following chapters, we will emphasize two essential aspects that contemporary devotion to the Sacred Heart needs to combine, so that it can continue to nourish us and bring us closer to the Gospel: personal spiritual experience and communal missionary commitment.
    CHAPTER FOUR
    A LOVE THAT GIVES ITSELF AS DRINK
    92. Let us now return to the Scriptures, the inspired texts where, above all, we encounter God’s revelation.There, and in the Church’s living Tradition, we hear what the Lord has wished to tell us in the course of history.By reading several texts from the Old and the New Testaments, we will gain insight into the word of God that has guided the great spiritual pilgrimage of his people down the ages.
    A GOD WHO THIRSTS FOR LOVE
    93. The Bible shows that the people that journeyed through the desert and yearned for freedom received the promise of an abundance of life-giving water: “With joy you will draw water from the wells of salvation” (Is12:3).The messianic prophecies gradually coalesced around the imagery of purifying water: “I will sprinkle clean water upon you, and you shall be clean… a new spirit I will put within you” (Ezek36:25-26).This water would bestow on God’s people the fullness of life, like a fountain flowing from the Temple and bringing a wealth of life and salvation in its wake.“I saw on the bank of the river a great many trees on the one side and on the other… and wherever that river goes, every living creature will live… and when that river enters the sea, its waters will become fresh; everything will live where the river goes” (Ezek47:7-9).
    94. The Jewish festival of Booths (Sukkot), which recalls the forty-year sojourn of Israel in the desert, gradually adopted the symbolism of water as a central element.It included a rite of offering water each morning, which became most solemn on the final day of the festival, when a great procession took place towards the Temple, the altar was circled seven times and the water was offered to God amid loud cries of joy.[83]
    95. The dawn of the messianic era was described as a fountain springing up for the people: “I will pour out a spirit of compassion and supplication on the house of David and the inhabitants of Jerusalem, and they shall look on him whom they have pierced…On that day, a fountain shall be opened for the house of David and the inhabitants of Jerusalem, to cleanse them from sin and impurity” (Zech12:10; 13:1).
    96. One who is pierced, a flowing fountain, the outpouring of a spirit of compassion and supplication: the first Christians inevitably considered these promises fulfilled in the pierced side of Christ, the wellspring of new life.In the Gospel of John, we contemplate that fulfilment.From Jesus’ wounded side, the water of the Spirit poured forth: “One of the soldiers pierced his side with a spear, and at once blood and water flowed out” (Jn19:34).The evangelist then recalls the prophecy that had spoken of a fountain opened in Jerusalem and the pierced one (Jn19:37; cf.Zech12:10).The open fountain is the wounded side of Christ.
    97. Earlier, John’s Gospel had spoken of this event, when on “the last day of the festival” (Jn7:37), Jesus cried out to the people celebrating the great procession: “Let anyone who is thirsty come to me and drink… out of his heart shall flow rivers of living water” (Jn7:37-38).For this to be accomplished, however, it was necessary for Jesus’ “hour” to come, for he “was not yet glorified” (Jn7:39).That fulfilment was to come on the cross, in the blood and water that flowed from the Lord’s side.
    98. The Book of Revelation takes up the prophecies of the pierced one and the fountain: “every eye will see him, even those who pierced him” (Rev1:7); “Let everyone who is thirsty come; let anyone who wishes take the water of life as a gift” (Rev22:17).
    99. The pierced side of Jesus is the source of the love that God had shown for his people in countless ways.Let us now recall some of his words:
    “Because you are precious in my sight and honoured, I love you” (Is43:4).
    “Can a woman forget her nursing child, or show no compassion for the child of her womb?Even if these may forget, yet I will not forget you.See, I have inscribed you on the palms of my hands” (Is49:15-16).
    “For the mountains may depart, and the hills be removed, but my steadfast love shall not depart from you, and my covenant of peace shall not be removed” (Is54:10).
    “I have loved you with an everlasting love; therefore I have continued my faithfulness to you” (Jer31:3).
    “The Lord, your God, is in your midst, a warrior who gives you victory; he will rejoice over you with gladness, he will renew you in his love; he will exult over you with loud singing” (Zeph3:17).
    100.The prophet Hosea goes so far as to speak of the heart of God, who “led them with cords of human kindness, with bands of love” (Hos11:4).When that love was spurned, the Lord could say, “My heart is stirred within me; my compassion grows warm and tender (Hos11:8).God’s merciful love always triumphs (cf.Hos11:9), and it was to find its most sublime expression in Christ, his definitive Word of love.
    101.The pierced heart of Christ embodies all God’s declarations of love present in the Scriptures.That love is no mere matter of words; rather, the open side of his Son is a source of life for those whom he loves, the fount that quenches the thirst of his people.As Saint John Paul II pointed out, “the essential elements of devotion [to the Sacred Heart] belong in a permanent fashion to the spirituality of the Church throughout her history; for since the beginning, the Church has looked to the heart of Christ pierced on the Cross”.[84]
    ECHOES OF THE WORD IN HISTORY
    102.Let us consider some of the ways that, in the history of the Christian faith, these prophecies were understood to have been fulfilled.Various Fathers of the Church, especially those in Asia Minor, spoke of the wounded side of Jesus as the source of the water of the Holy Spirit: the word, its grace and the sacraments that communicate it.The courage of the martyrs is born of “the heavenly fount of living waters flowing from the side of Christ”[85]or, in the version of Rufinus, “the heavenly and eternal streams that flow from the heart of Christ”.[86]We believers, reborn in the Spirit, emerge from the cleft in the rock; “we have come forth from the heart of Christ”.[87]His wounded side, understood as his heart, filled with the Holy Spirit, comes to us as a flood of living water. “The fount of the Spirit is entirely in Christ”.[88]Yet the Spirit whom we have received does not distance us from the risen Lord, but fills us with his presence, for by drinking of the Spirit we drink of the same Christ.In the words of Saint Ambrose: “Drink of Christ, for he is the rock that pours forth a flood of water.Drink of Christ, for he is the source of life.Drink of Christ, for he is the river whose streams gladden the city of God.Drink of Christ, for he is our peace.Drink of Christ, for from his side flows living water”.[89]
    103.Saint Augustine opened the way to devotion to the Sacred Heart as the locus of our personal encounter with the Lord.For Augustine, Christ’s wounded side is not only the source of grace and the sacraments, but also the symbol of our intimate union with Christ, the setting of an encounter of love.There we find the source of the most precious wisdom of all, which is knowledge of him.In effect, Augustine writes that John, the beloved disciple, reclining on Jesus’ bosom at the Last Supper, drew near to the secret place of wisdom.[90]Here we have no merely intellectual contemplation of an abstract theological truth.As Saint Jerome explains, a person capable of contemplation “does not delight in the beauty of that stream of water, but drinks of the living water flowing from the side of the Lord”.[91]
    104.Saint Bernard takes up the symbolism of the pierced side of the Lord and understands it explicitly as a revelation and outpouring of all of the love of his heart.Through that wound, Christ opens his heart to us and enables us to appropriate the boundless mystery of his love and mercy: “I take from the bowels of the Lord what is lacking to me, for his bowels overflow with mercy through the holes through which they stream.Those who crucified him pierced his hands and feet, they pierced his side with a lance.And through those holes I can taste wild honey and oil from the rocks of flint, that is, I can taste and see that the Lord is good…A lance passed through his soul even to the region of his heart.No longer is he unable to take pity on my weakness.The wounds inflicted on his body have disclosed to us the secrets of his heart; they enable us to contemplate the great mystery of his compassion”.[92]
    105.This theme reappears especially in William of Saint-Thierry, who invites us to enter into the heart of Jesus, who feeds us from his own breast.[93]This is not surprising if we recall that for William, “the art of arts is the art of love…Love is awakened by the Creator of nature, and is a power of the soul that leads it, as if by its natural gravity, to its proper place and end”.[94]That proper place, where love reigns in fullness, is the heart of Christ: “Lord, where do you lead those whom you embrace and clasp to your heart?Your heart, Jesus, is the sweet manna of your divinity that you hold within the golden jar of your soul (cf.Heb9:4), and that surpasses all knowledge.Happy those who, having plunged into those depths, have been hidden by you in the recess of your heart”.[95]
    106.Saint Bonaventure unites these two spiritual currents.He presents the heart of Christ as the source of the sacraments and of grace, and urges that our contemplation of that heart become a relationship between friends, a personal encounter of love.
    107.Bonaventure makes us appreciate first the beauty of the grace and the sacraments flowing from the fountain of life that is the wounded side of the Lord.“In order that from the side of Christ sleeping on the cross, the Church might be formed and the Scripture fulfilled that says: ‘They shall look upon him whom they pierced’, one of the soldiers struck him with a lance and opened his side.This was permitted by divine Providence so that, in the blood and water flowing from that wound, the price of our salvation might flow from the hidden wellspring of his heart, enabling the Church’s sacraments to confer the life of grace and thus to be, for those who live in Christ, like a cup filled from the living fount springing up to life eternal”.[96]
    108.Bonaventure then asks us to take another step, in order that our access to grace not be seen as a kind of magic or neo-platonic emanation, but rather as a direct relationship with Christ, a dwelling in his heart, so that whoever drinks from that source becomes a friend of Christ, a loving heart.“Rise up, then, O soul who are a friend of Christ, and be the dove that nests in the cleft in the rock; be the sparrow that finds a home and constantly watches over it; be the turtledove that hides the offspring of its chaste love in that most holy cleft”.[97]
    THE SPREAD OF DEVOTION TO THE HEART OF CHRIST
    109.Gradually, the wounded side of Christ, as the abode of his love and the wellspring of the life of grace, began to be associated with his heart, especially in monastic life.We know that in the course of history, devotion to the heart of Christ was not always expressed in the same way, and that its modern developments, related to a variety of spiritual experiences, cannot be directly derived from the mediaeval forms, much less the biblical forms in which we glimpse the seeds of that devotion.This notwithstanding, the Church today rejects nothing of the good that the Holy Spirit has bestowed on us down the centuries, for she knows that it will always be possible to discern a clearer and deeper meaning in certain aspects of that devotion, and to gain new insights over the course of time.
    110.A number of holy women, in recounting their experiences of encounter with Christ, have spoken of resting in the heart of the Lord as the source of life and interior peace.This was the case with Saints Lutgarde and Mechtilde of Hackeborn, Saint Angela of Foligno and Dame Julian of Norwich, to mention only a few.Saint Gertrude of Helfta, a Cistercian nun, tells of a time in prayer when she reclined her head on the heart of Christ and heard its beating.In a dialogue with Saint John the Evangelist, she asked him why he had not described in his Gospel what he experienced when he did the same.Gertrude concludes that “the sweet sound of those heartbeats has been reserved for modern times, so that, hearing them, our aging and lukewarm world may be renewed in the love of God”.[98]Might we think that this is indeed a message for our own times, a summons to realize how our world has indeed “grown old”, and needs to perceive anew the message of Christ’s love?Saint Gertrude and Saint Mechtilde have been considered among “the most intimate confidants of the Sacred Heart”.[99]
    111.The Carthusians, encouraged above all by Ludolph of Saxony, found in devotion to the Sacred Heart a means of growth in affection and closeness to Christ.All who enter through the wound of his heart are inflamed with love.Saint Catherine of Siena wrote that the Lord’s sufferings are impossible for us to comprehend, but the open heart of Christ enables us to have a lively personal encounter with his boundless love.“I wished to reveal to you the secret of my heart, allowing you to see it open, so that you can understand that I have loved you so much more than I could have proved to you by the suffering that I once endured”.[100]
    112.Devotion to the heart of Christ slowly passed beyond the walls of the monasteries to enrich the spirituality of saintly teachers, preachers and founders of religious congregations, who then spread it to the farthest reaches of the earth.[101]
    113.Particularly significant was the initiative taken by Saint John Eudes, who, “after preaching with his confrères a fervent mission in Rennes, convinced the bishop of that diocese to approve the celebration of the feast of the Adorable Heart of our Lord Jesus Christ.This was the first time that such a feast was officially authorized in the Church.Following this, between the years 1670 and 1671, the bishops of Coutances, Evreux, Bayeux, Lisieux and Rouen authorized the celebration of the feast for their respective dioceses”.[102]
    SAINT FRANCIS DE SALES
    114.In modern times, mention should be made of the important contribution of Saint Francis de Sales.Francis frequently contemplated Christ’s open heart, which invites us to dwell therein, in a personal relationship of love that sheds light on the mysteries of his life.In his writings, the saintly Doctor of the Church opposes a rigorous morality and a legalistic piety by presenting the heart of Jesus as a summons to complete trust in the mysterious working of his grace.We see this expressed in his letter to Saint Jane Francis de Chantal: “I am certain that we will remain no longer in ourselves… but dwell forever in the Lord’s wounded side, for apart from him not only can we do nothing, but even if we were able, we would lack the desire to do anything”.[103]
    115.For Francis de Sales, true devotion had nothing to do with superstition or perfunctory piety, since it entails a personal relationship in which each of us feels uniquely and individually known and loved by Christ.“This most adorable and lovable heart of our Master, burning with the love which he professes to us, [is] a heart on which all our names are written…Surely it is a source of profound consolation to know that we are loved so deeply by our Lord, who constantly carries us in his heart”.[104]With the image of our names written on the heart of Christ, Saint Francis sought to express the extent to which Christ’s love for each of us is not something abstract and generic, but utterly personal, enabling each believer to feel known and respected for who he or she is.“How lovely is this heaven, in which the Lord is its sun and his breast a fountain of love from which the blessed drink to their heart’s content!Each of us can look therein and see our name carved in letters of love, which true love alone can read and true love has written.Dear God!And what too, beloved daughter, of our loved ones?Surely they will be there too; for even if our hearts have no love, they nonetheless possess a desire for love and the beginnings of love”.[105]
    116.Francis saw this experience of Christ’s love as essential to the spiritual life, indeed one of the great truths of faith: “Yes, my beloved daughter, he thinks of you and not only, but even the smallest hair of your head: this is an article of faith and in no way must it be doubted”.[106]It follows that the believer becomes capable of complete abandonment in the heart of Christ, in which he or she finds repose, comfort and strength: “Oh God!What happiness to be thus embraced and to recline in the bosom of the Saviour.Remain thus, beloved daughter, and like another little one, Saint John, while others are tasting different kinds of food at the table of the Lord, lay your head, your soul and your spirit, in a gesture of utter trust, on the loving bosom of this dear Lord”.[107]“I hope that you are resting in the cleft of the turtledove and in the pierced side of our beloved Saviour…How good is this Lord, my beloved daughter!How loving is his Heart!Let us remain here, in this holy abode”.[108]
    117.At the same time, faithful to his teaching on the sanctification of ordinary life, Francis proposes that this experience take place in the midst of the activities, tasks and obligations of our daily existence.“You asked me how souls that are attracted in prayer to this holy simplicity, to this perfect abandonment in God, should conduct themselves in all their actions?I would reply that, not only in prayer, but also in the conduct of everyday life they should advance always in the spirit of simplicity, abandoning and completely surrendering their soul, their actions and their accomplishments to God’s will.And to do so with a love marked by perfect and absolute trust, abandoning themselves to grace and to the care of the eternal love that divine Providence feels for them”.[109]
    118.For this reason, when looking for a symbol to convey his vision of spiritual life, Francis de Sales concluded: “I have thought, dear Mother, if you agree, that we should take as our emblem a single heart pierced by two arrows, the whole enclosed in a crown of thorns”.[110]
    A NEW DECLARATION OF LOVE
    119.Under the salutary influence of this Salesian spirituality, the events of Paray-le-Monial took place at the end of the seventeenth century.Saint Margaret Mary Alacoque reported a remarkable series of apparitions of Christ between the end of December 1673 and June of 1675.Fundamental to these was a declaration of love that stood out in the first apparition.Jesus said: “My divine Heart is so inflamed with love for men, and for you in particular, that, no longer able to contain in itself the flames of its ardent charity, it must pour them out through you and be manifested to them, in order to enrich them with its precious treasures which I now reveal to you”.[111]
    120.Saint Margaret Mary’s account is powerful and deeply moving: “He revealed to me the wonders of his love and the inexplicable secrets of his Sacred Heart which he had hitherto kept hidden from me, until he opened it to me for the first time, in such a striking and sensible manner that he left me no room for doubt”.[112]In subsequent appearances, that consoling message was reiterated: “He revealed to me the ineffable wonders of his pure love and to what extremes it had led him to love mankind”.[113]
    121.This powerful realization of the love of Jesus Christ bequeathed to us by Saint Margaret Mary can spur us to greater union with him.We need not feel obliged to accept or appropriate every detail of her spiritual experience, in which, as often happens, God’s intervention combines with human elements related to the individual’s own desires, concerns and interior images.[114]Such experiences must always be interpreted in the light of the Gospel and the rich spiritual tradition of the Church, even as we acknowledge the good they accomplish in many of our brothers and sisters.In this way, we can recognize the gifts of the Holy Spirit present in those experiences of faith and love.More important than any individual detail is the core of the message handed on to us, which can be summed up in the words heard by Saint Margaret Mary: “This is the heart that so loved human beings that it has spared nothing, even to emptying and consuming itself in order to show them its love”.[115]
    122.This apparition, then, invites us to grow in our encounter with Christ, putting our trust completely in his love, until we attain full and definitive union with him.“It is necessary that the divine heart of Jesus in some way replace our own; that he alone live and work in us and for us; that his will… work absolutely and without any resistance on our part; and finally that its affections, thoughts and desires take the place of our own, especially his love, so that he is loved in himself and for our sakes.And so, this lovable heart being our all in all, we can say with Saint Paul that we no longer live our own lives, but it is he who lives within us”.[116]
    123.In the first message that Saint Margaret Mary received, this invitation was expressed in vivid, fervent and loving terms.“He asked for my heart, which I asked him to take, which he did and then placed myself in his own adorable heart, from which he made me see mine like a little atom consumed in the fiery furnace of his own”.[117]
    124.At another point, we see that the one who gives himself to us is the risen and glorified Christ, full of life and light.If indeed, at different times, he spoke of the suffering that he endured for our sake and of the ingratitude with which it is met, what we see here are not so much his blood and painful wounds, but rather the light and fire of the Lord of life.The wounds of the passion have not disappeared, but are now transfigured.Here we see the paschal mystery in all its splendour: “Once, when the Blessed Sacrament was exposed, Jesus appeared, resplendent in glory, with his five wounds that appeared as so many suns blazing forth from his sacred humanity, but above all from his adorable breast, which seemed a fiery furnace.Opening his robe, he revealed his most loving and lovable heart, which was the living source of those flames.Then it was that I discovered the ineffable wonders of his pure love, with which he loves men to the utmost, yet receives from them only ingratitude and indifference”.[118]
    SAINT CLAUDE DE LA COLOMBIÈRE
    125.When Saint Claude de La Colombière learned of the experiences of Saint Margaret Mary, he immediately undertook her defence and began to spread word of the apparitions.Saint Claude played a special role in developing the understanding of devotion to the Sacred Heart and its meaning in the light of the Gospel.
    126.Some of the language of Saint Margaret Mary, if poorly understood, might suggest undue trust in our personal sacrifices and offerings.Saint Claude insists that contemplation of the heart of Jesus, when authentic, does not provoke self-complacency or a vain confidence in our own experiences or human efforts, but rather an ineffable abandonment in Christ that fills our life with peace, security and decision.He expressed this absolute confidence most eloquently in a celebrated prayer:
    “My God, I am so convinced that you keep watch over those who hope in you, and that we can want for nothing when we look for all in you, that I am resolved in the future to live free from every care and to turn all my anxieties over to you…I shall never lose my hope.I shall keep it to the last moment of my life; and at that moment all the demons in hell will strive to tear it from me…Others may look for happiness from their wealth or their talents; others may rest on the innocence of their life, or the severity of their penance, or the amount of their alms, or the fervour of their prayers.As for me, Lord, all my confidence is confidence itself.This confidence has never deceived anyone…I am sure, therefore, that I shall be eternally happy, since I firmly hope to be, and because it is from you, O God, that I hope for it”.[119]
    127.In a note of January 1677, after mentioning the assurance he felt regarding his mission, Claude continued: “I have come to know that God wanted me to serve him by obtaining the fulfilment of his desires regarding the devotion that he suggested to a person to whom he communicates in confidence, and for whose sake he has desired to make use of my weakness.I have already used it to help several persons”.[120]
    128.It should be recognized that the spirituality of Blessed Claude de La Colombière resulted in a fine synthesis of the profound and moving spiritual experience of Saint Margaret Mary and the vivid and concrete form of contemplation found in the Spiritual Exercises of Saint Ignatius Loyola.At the beginning of the third week of the Exercises, Claude reflected:“Two things have moved me in a striking way.First, the attitude of Christ towards those who sought to arrest him.His heart is full of bitter sorrow; every violent passion is unleashed against him and all nature is in turmoil, yet amid all this confusion, all these temptations, his heart remains firmly directed to God.He does not hesitate to take the part that virtue and the highest virtue suggested to him.Second, the attitude of that same heart towards Judas who betrayed him, the apostles who cravenly abandoned him, the priests and the others responsible for the persecution he suffered; none of these things was able to arouse in him the slightest sentiment of hatred or indignation.I present myself anew to this heart free of anger, free of bitterness, filled instead with genuine compassion towards its enemies”.[121]
    SAINT CHARLES DE FOUCAULD AND SAINT THERESE OF THE CHILD JESUS
    129.Saint Charles de Foucauld and Saint Therese of the Child Jesus, without intending to, reshaped certain aspects of devotion to the heart of Christ and thus helped us understand it in an even more evangelical spirit.Let us now examine how this devotion found expression in their lives.In the following chapter, we will return to them, in order to illustrate the distinctively missionary dimension that each of them brought to the devotion.
    Iesus Caritas
    130.In Louye, Charles de Foucauld was accustomed to visit the Blessed Sacrament with his cousin, Marie de Bondy.One day she showed him an image of the Sacred Heart.[122]His cousin played a fundamental role in Charles’s conversion, as he himself acknowledged: “Since God has made you the first instrument of his mercies towards me, from you everything else began.Had you not converted me, brought me to Jesus and taught me little by little, letter by letter, all that is holy and good, where would I be today?”[123]What Marie awakened in him was an intense awareness of the love of Jesus.That was the essential thing, and centred on devotion to the heart of Jesus, in which he encountered unbounded mercy: “Let us trust in the infinite mercy of the one whose heart you led me to know”.[124]
    131.Later, his spiritual director, Father Henri Huvelin, helped Charles to deepen his understanding of the inestimable mystery of “this blessed heart of which you spoke to me so often”.[125]On 6 June 1889, Charles consecrated himself to the Sacred Heart, in which he found a love without limits.He told Christ, “You have bestowed on me so many benefits, that it would appear ingratitude towards your heart not to believe that it is disposed to bestow on me every good, however great, and that your love and your generosity are boundless”.[126]He was to become a hermit “under the name of the heart of Jesus”.[127]
    132.On 17 May 1906, the same day in which Brother Charles, alone, could no longer celebrate Mass, he wrote of his promise “to let the heart of Jesus live in me, so that it is no longer I who live, but the heart of Jesus that lives in me, as he lived in Nazareth”.[128]His friendship with Jesus, heart to heart, was anything but a privatized piety.It inspired the austere life he led in Nazareth, born of a desire to imitate Christ and to be conformed to him.His loving devotion to the heart of Jesus had a concrete effect on his style of life, and his Nazareth was nourished by his personal relationship with the heart of Christ.
    Saint Therese of the Child Jesus
    133.Like Saint Charles de Foucauld, Saint Therese of the Child Jesus was influenced by the great renewal of devotion that swept nineteenth-century France.Father Almire Pichon, the spiritual director of her family, was seen as a devoted apostle of the Sacred Heart.One of her sisters took as her name in religion “Sister Marie of the Sacred Heart”, and the monastery that Therese entered was dedicated to the Sacred Heart.Her devotion nonetheless took on certain distinctive traits with regard to the customary piety of that age.
    134.When Therese was fifteen, she could speak of Jesus as the one “whose heart beats in unison with my own”.[129]Two years later, speaking of the image of Christ’s heart crowned with thorns, she wrote in a letter: “You know that I myself do not see the Sacred Heart as everyone else.I think that the Heart of my Spouse is mine alone, just as mine is his alone, and I speak to him then in the solitude of this delightful heart to heart, while waiting to contemplate him one day face to face”.[130]
    135.In one of her poems, Therese voiced the meaning of her devotion, which had to do more with friendship and assurance than with trust in her sacrifices:
    “I need a heart burning with tenderness,
    Who will be my support forever,
    Who loves everything in me, even my weakness…
    And who never leaves me day or night…
    I must have a God who takes on my nature,
    And becomes my brother and is able to suffer! …
    Ah! I know well, all our righteousness
    Is worthless in your sight…
    So I, for my purgatory,
    Choose your burning love, O heart of my God!”[131]
    136.Perhaps the most important text for understanding the devotion of Therese to the heart of Christ is a letter that she wrote three months before her death to her friend Maurice Bellière.“When I see Mary Magdalene walking up before the many guests, washing with her tears the feet of her adored Master, whom she is touching for the first time, I feel that her hearthas understood the abysses of love and mercy of the heart of Jesus, and, sinner though she is, this heart of love was disposed not only to pardon her but to lavish on her the blessings of his divine intimacy, to lift her to the highest summits of contemplation.Ah! dear little Brother, ever since I have been given the grace to understand also the love of the heart of Jesus, I admit that it has expelled all fear from my heart.The remembrance of my faults humbles me, draws me never to depend on my strength which is only weakness, but this remembrance speaks to me of mercy and love even more”.[132]
    137.Those moralizers who want to keep a tight rein on God’s mercy and grace might claim that Therese could say this because she was a saint, but a simple person could not say the same.In that way, they excise from the spirituality of Saint Therese its wonderful originality, which reflects the heart of the Gospel.Sadly, in certain Christian circles we often encounter this attempt to fit the Holy Spirit into a certain preconceived pattern in a way that enables them to keep everything under their supervision.Yet this astute Doctor of the Church reduces them to silence and directly contradicts their reductive view in these clear words: “If I had committed all possible crimes, I would always have the same confidence; I feel that this whole multitude of offenses would be like a drop of water thrown into a fiery furnace”.[133]
    138.To Sister Marie, who praised her generous love of God, prepared even to embrace martyrdom, Therese responded at length in a letter that is one of the great milestones in the history of spirituality.This page ought to be read a thousand times over for its depth, clarity and beauty.There, Therese helps her sister, “Marie of the Sacred Heart”, to avoid focusing this devotion on suffering, since some had presented reparation primarily in terms of accumulating sacrifices and good works.Therese, for her part, presents confidence as the greatest and best offering, pleasing to the heart of Christ: “My desires of martyrdom are nothing; they are not what give me the unlimited confidence that I feel in my heart.They are, to tell the truth, the spiritual riches that render one unjust, when one rests in them with complacence and one believes that they are something great…what pleases [Jesus] is that he sees me loving my littleness and my poverty, the blind hope that I have in his mercy…That is my only treasure…If you want to feel joy, to have an attraction for suffering, it is your consolation that you are seeking…Understand that to be his victim of love, the weaker one is, without desires or virtues, the more suited one is for the workings of this consuming and transforming Love…Oh!How I would like to be able to make you understand what I feel! …It is confidence and nothing but confidence that must lead us to Love”.[134]
    139.In many of her writings, Therese speaks of her struggle with forms of spirituality overly focused on human effort, on individual merit, on offering sacrifices and carrying out certain acts in order to “win heaven”.For her, “merit does not consist in doing or in giving much, but rather in receiving”.[135]Let us read once again some of these deeply meaningful texts where she emphasizes this and presents it as a simple and rapid means of taking hold of the Lord “by his heart”.
    140.To her sister Léonie she writes, “I assure you that God is much better than you believe.He is content with a glance, a sigh of love…As for me, I find perfection very easy to practise because I have understood it is a matter of taking hold of Jesus by his heart…Look at a little child who has just annoyed his mother… If he comes to her, holding out his little arms, smiling and saying: ‘Kiss me, I will not do it again’, will his mother be able not to press him to her heart tenderly and forget his childish mischief?However, she knows her dear little one will do it again on the next occasion, but this does not matter; if he takes her again by her heart, he will not be punished”.[136]
    141.So too, in a letter to Father Adolphe Roulland she writes, “[M]y way is all confidence and love.I do not understand souls who fear a friend so tender.At times, when I am reading certain spiritual treatises in which perfection is shown through a thousand obstacles, surrounded by a crowd of illusions, my poor little mind quickly tires; I close the learned book that is breaking my head and drying up my heart, and I take up Holy Scripture.Then all seems luminous to me; a single word uncovers for my soul infinite horizons, perfection seems simple to me.I see that it is sufficient to recognize one’s nothingness and to abandon oneself like a child into God’s arms”.[137]
    142.In yet another letter, she relates this to the love shown by a parent: “I do not believe that the heart of [a] father could resist the filial confidence of his child, whose sincerity and love he knows.He realizes, however, that more than once his son will fall into the same faults, but he is prepared to pardon him always, if his son always takes him by his heart”.[138]
    RESONANCES WITHIN THE SOCIETY OF JESUS
    143.We have seen how Saint Claude de La Colombière combined the spiritual experience of Saint Margaret Mary with the aim of the Spiritual Exercises.I believe that the place of the Sacred Heart in the history of the Society of Jesus merits a few brief words.
    144.The spirituality of the Society of Jesus has always proposed an “interior knowledge of the Lord in order to love and follow him more fully”.[139]Saint Ignatius invites us in his Spiritual Exercises to place ourselves before the Gospel that tells us that, “[Christ’s] side was pierced by the lance and blood and water flowed forth”.[140]When retreatants contemplate the wounded side of the crucified Lord, Ignatius suggests that they enter into the heart of Christ.Thus we have a way to enlarge our own hearts, recommended by one who was a “master of affections”, to use the words of Saint Peter Faber in one of his letters to Saint Ignatius.[141]Father Juan Alfonso de Polanco echoed that same expression in his biography of Saint Ignatius: “He [Cardinal Gasparo Contarini] realized that in Father Ignatius he had encountered a master of affections”.[142]The colloquies that Saint Ignatius proposed are an essential part of this training of the heart, for in them we sense and savour with the heart a Gospel message and converse about it with the Lord.Saint Ignatius tells us that we can share our concerns with the Lord and seek his counsel.Anyone who follows the Exercises can readily see that they involve a dialogue, heart to heart.
    145.Saint Ignatius brings his contemplations to a crescendo at the foot of the cross and invites the retreatant to ask the crucified Lord with great affection, “as one friend to another, as a servant to his master”, what he or she must do for him.[143]The progression of the Exercises culminates in the “Contemplation to Attain Love”, which gives rise to thanksgiving and the offering of one’s “memory, understanding and will” to the heart which is the fount and origin of every good thing.[144]This interior contemplation is not the fruit of our understanding and effort, but is to be implored as a gift.
    146.This same experience inspired the great succession of Jesuit priests who spoke explicitly of the heart of Jesus: Saint Francis Borgia, Saint Peter Faber, Saint Alphonsus Rodriguez, Father Álvarez de Paz, Father Vincent Carafa, Father Kasper Drużbicki and countless others.In 1883, the Jesuits declared that, “the Society of Jesus accepts and receives with an overflowing spirit of joy and gratitude the most agreeable duty entrusted to it by our Lord Jesus Christ to practise, promote and propagate devotion to his divine heart”.[145]In September 1871, Father Pieter Jan Beckx consecrated the Society to the Sacred Heart of Jesus and, as a sign that it remains an outstanding element in the life of the Society, Father Pedro Arrupe renewed that consecration in 1972, with a conviction that he explained in these words: “I therefore wish to say to the Society something about which I feel I cannot remain silent.From my novitiate on, I have always been convinced that what we call devotion to the Sacred Heart contains a symbolic expression of what is most profound in Ignatian spirituality, and of an extraordinary efficacy –ultra quam speraverint– both for its own perfection and for its apostolic fruitfulness.I continue to have this same conviction…In this devotion I encounter one of the deepest sources of my interior life”.[146]
    147.When Saint John Paul II urged “all the members of the Society to be even more zealous in promoting this devotion, which corresponds more than ever to the expectations of our time”, he did so because he recognized the profound connection between devotion to the heart of Christ and Ignatian spirituality.For “the desire to ‘know the Lord intimately’ and to ‘have a conversation’ with him, heart to heart, is characteristic of the Ignatian spiritual and apostolic dynamism, thanks to the Spiritual Exercises, and this dynamism is wholly at the service of the love of the heart of God”.[147]
    A BROAD CURRENT OF THE INTERIOR LIFE
    148.Devotion to the heart of Christ reappears in the spiritual journey of many saints, all quite different from each other; in every one of them, the devotion takes on new hues.Saint Vincent de Paul, for example, used to say that what God desires is the heart: “God asks primarily for our heart – our heart – and that is what counts.How is it that a man who has no wealth will have greater merit than someone who has great possessions that he gives up?Because the one who has nothing does it with greater love; and that is what God especially wants…”[148]This means allowing one’s heart to be united to that of Christ.“What blessing should a Sister not hope for from God if she does her utmost to put her heart in the state of being united with the heart of our Lord!”[149]
    149.At times, we may be tempted to consider this mystery of love as an admirable relic from the past, a fine spirituality suited to other times.Yet we need to remind ourselves constantly that, as a saintly missionary once said, “this divine heart, which let itself be pierced by an enemy’s lance in order to pour forth through that sacred wound the sacraments by which the Church was formed, has never ceased to love”.[150]More recent saints, like Saint Pius of Pietrelcina, Saint Teresa of Calcutta and many others, have spoken with deep devotion of the heart of Christ.Here I would also mention the experiences of Saint Faustina Kowalska, which re-propose devotion to the heart of Christ by greatly emphasizing the glorious life of the risen Lord and his divine mercy.Inspired by her experiences and the spiritual legacy of Saint Józef Sebastian Pelczar (1842-1924),[151]Saint John Paul II intimately linked his reflections on divine mercy with devotion to the heart of Christ: “The Church seems in a singular way to profess the mercy of God and to venerate it when she directs herself to the heart of Christ.In fact, it is precisely this drawing close to Christ in the mystery of his heart which enables us to dwell on this point of the revelation of the merciful love of the Father, a revelation that constituted the central content of the messianic mission of the Son of Man”.[152]Saint John Paul also spoke of the Sacred Heart in very personal terms, acknowledging that, “it has spoken to me ever since my youth”.[153]
    150.The enduring relevance of devotion to the heart of Christ is especially evident in the work of evangelization and education carried out by the numerous male and female religious congregations whose origins were marked by this profoundly Christological devotion.Mentioning all of them by name would be an endless undertaking. Let us simply consider two examples taken at random: “The Founder [Saint Daniel Comboni] discovered in the mystery of the heart of Jesus the source of strength for his missionary commitment”.[154]“Caught up as we are in the desires of the heart of Jesus, we want people to grow in dignity, as human beings and as children of God.Our starting point is the Gospel, with all that it demands from us of love, forgiveness and justice, and of solidarity with those who are poor and rejected by the world”.[155]So too, the many shrines worldwide that are consecrated to the heart of Christ continue to be an impressive source of renewal in prayer and spiritual fervour.To all those who in any way are associated with these spaces of faith and charity I send my paternal blessing.
    THE DEVOTION OF CONSOLATION
    151.The wound in Christ’s side, the wellspring of living water, remains open in the risen body of the Saviour.The deep wound inflicted by the lance and the wounds of the crown of thorns that customarily appear in representations of the Sacred Heart are an inseparable part of this devotion, in which we contemplate the love of Christ who offered himself in sacrifice to the very end.The heart of the risen Lord preserves the signs of that complete self-surrender, which entailed intense sufferings for our sake.It is natural, then, that the faithful should wish to respond not only to this immense outpouring of love, but also to the suffering that the Lord chose to endure for the sake of that love.
    With Jesus on the cross
    152.It is fitting to recover one particular aspect of the spirituality that has accompanied devotion to the heart of Christ, namely, the interior desire to offer consolation to that heart.Here I will not discuss the practice of “reparation”, which I deem better suited to the social dimension of this devotion to be discussed in the next chapter.I would like instead to concentrate on the desire often felt in the hearts of the faithful who lovingly contemplate the mystery of Christ’s passion and experience it as a mystery which is not only recollected but becomes present to us by grace, or better, allows us to be mystically present at the moment of our redemption.If we truly love the Lord, how could we not desire to console him?
    153.Pope Pius XI wished to ground this particular devotion in the realization that the mystery of our redemption by Christ’s passion transcends, by God’s grace, all boundaries of time and space.On the cross, Jesus offered himself for all sins, including those yet to be committed, including our own sins.In the same way, the acts we now offer for his consolation, also transcending time, touch his wounded heart.“If, because of our sins too, as yet in the future but already foreseen, the soul of Jesus became sorrowful unto death, it cannot be doubted that at the same time he derived some solace from our reparation, likewise foreseen, at the moment when ‘there appeared to him an angel from heaven’ (Lk22:43), in order that his heart, oppressed with weariness and anguish, might find consolation.And so even now, in a wondrous yet true manner, we can and ought to console that Most Sacred Heart, which is continually wounded by the sins of thankless men”.[156]
    Reasons of the heart
    154.It might appear to some that this aspect of devotion to the Sacred Heart lacks a firm theological basis, yet the heart has its reasons.Here thesensus fideliumperceives something mysterious, beyond our human logic, and realizes that the passion of Christ is not merely an event of the past, but one in which we can share through faith.Meditation on Christ’s self-offering on the cross involves, for Christian piety, something much more than mere remembrance.This conviction has a solid theological grounding.[157]We can also add the recognition of our own sins, which Jesus took upon his bruised shoulders, and our inadequacy in the face of that timeless love, which is always infinitely greater.
    155.We may also question how we can pray to the Lord of life, risen from the dead and reigning in glory, while at the same time comforting him in the midst of his sufferings.Here we need to realize that his risen heart preserves its wound as a constant memory, and that the working of grace makes possible an experience that is not restricted to a single moment of the past.In pondering this, we find ourselves invited to take a mystical path that transcends our mental limitations yet remains firmly grounded in the word of God.Pope Pius XI makes this clear: “How can these acts of reparation offer solace now, when Christ is already reigning in the beatitude of heaven?To this question, we may answer in the words of Saint Augustine, which are very apposite here – ‘Give me the one who loves, and he will understand what I say’.Anyone possessed of great love for God, and who looks back to the past, can dwell in meditation on Christ, and see him labouring for man, sorrowing, suffering the greatest hardships, ‘for us men and for our salvation’, well-nigh worn out with sadness, with anguish, nay ‘bruised for our sins’ (Is53:5), and bringing us healing by those very bruises.The more the faithful ponder all these things the more clearly they see that the sins of mankind, whenever they were committed, were the reason why Christ was delivered up to death”.[158]
    156.Those words of Pius XI merit serious consideration.When Scripture states that believers who fail to live in accordance with their faith “are crucifying again the Son of God” (Heb6:6), or when Paul, offering his sufferings for the sake of others, says that, “in my flesh I am completing what is lacking in Christ’s afflictions” (Col1:24), or again, when Christ in his passion prays not only for his disciples at that time, but also for “those who will believe in me through their word” (Jn17:20), all these statements challenge our usual way of thinking.They show us that it is not possible to sever the past completely from the present, however difficult our minds find this to grasp.The Gospel, in all its richness, was written not only for our prayerful meditation, but also to enable us to experience its reality in our works of love and in our interior life.This is certainly the case with regard to the mystery of Christ’s death and resurrection.The temporal distinctions that our minds employ appear incapable of embracing the fullness of this experience of faith, which is the basis both of our union with Christ in his suffering and of the strength, consolation and friendship that we enjoy with him in his risen life.
    157.We see, then, the unity of the paschal mystery in these two inseparable and mutually enriching aspects.The one mystery, present by grace in both these dimensions, ensures that whenever we offer some suffering of our own to Christ for his consolation, that suffering is illuminated and transfigured in the paschal light of his love.We share in this mystery in our own life because Christ himself first chose to share in that life.He wished to experience first, as Head, what he would then experience in his Body, the Church: both our wounds and our consolations.When we live in God’s grace, this mutual sharing becomes for us a spiritual experience.In a word, the risen Lord, by the working of his grace, mysteriously unites us to his passion.The hearts of the faithful, who experience the joy of the resurrection, yet at the same time desire to share in the Lord’s passion, understand this.They desire to share in his sufferings by offering him the sufferings, the struggles, the disappointments and the fears that are part of their own lives.Nor do they experience this as isolated individuals, since their sufferings are also a participation in the suffering of the mystical Body of Christ, the holy pilgrim People of God, which shares in the passion of Christ in every time and place.The devotion of consolation, then, is in no way ahistorical or abstract; it becomes flesh and blood in the Church’s pilgrimage through history.
    Compunction
    158.The natural desire to console Christ, which begins with our sorrow in contemplating what he endured for us, grows with the honest acknowledgment of our bad habits, compulsions, attachments, weak faith, vain goals and, together with our actual sins, the failure of our hearts to respond to the Lord’s love and his plan for our lives.This experience proves purifying, for love needs the purification of tears that, in the end, leave us more desirous of God and less obsessed with ourselves.
    159.In this way, we see that the deeper our desire to console the Lord, the deeper will be our sincere sense of “compunction”.Compunction is “not a feeling of guilt that makes us discouraged or obsessed with our unworthiness, but a beneficial ‘piercing’ that purifies and heals the heart.Once we acknowledge our sin, our hearts can be opened to the working of the Holy Spirit, the source of living water that wells up within us and brings tears to our eyes…This does not mean weeping in self-pity, as we are so often tempted to do…To shed tears of compunction means seriously to repent of grieving God by our sins; recognizing that we always remain in God’s debt…Just as drops of water can wear down a stone, so tears can slowly soften hardened hearts.Here we see the miracle of sorrow, that ‘salutary sorrow’ which brings great peace…Compunction, then, is not our work but a grace and, as such, it must be sought in prayer.”[159]It means, “asking for sorrow in company with Christ in his sorrow, for anguish with Christ in his anguish, for tears and a deep sense of pain at the great pains that Christ endured for my sake”.[160]
    160.I ask, then, that no one make light of the fervent devotion of the holy faithful people of God, which in its popular piety seeks to console Christ.I also encourage everyone to consider whether there might be greater reasonableness, truth and wisdom in certain demonstrations of love that seek to console the Lord than in the cold, distant, calculated and nominal acts of love that are at times practised by those who claim to possess a more reflective, sophisticated and mature faith.
    Consoled ourselves in order to console others
    161.In contemplating the heart of Christ and his self-surrender even to death, we ourselves find great consolation.The grief that we feel in our hearts gives way to complete trust and, in the end, what endures is gratitude, tenderness, peace; what endures is Christ’s love reigning in our lives.Compunction, then, “is not a source of anxiety but of healing for the soul, since it acts as a balm on the wounds of sin, preparing us to receive the caress of the Lord”.[161]Our sufferings are joined to the suffering of Christ on the cross.If we believe that grace can bridge every distance, this means that Christ by his sufferings united himself to the sufferings of his disciples in every time and place.In this way, whenever we endure suffering, we can also experience the interior consolation of knowing that Christ suffers with us.In seeking to console him, we will find ourselves consoled.
    162.At some point, however, in our contemplation, we should likewise hear the urgent plea of the Lord: “Comfort, comfort my people!” (Is40:1).As Saint Paul tells us, God offers us consolation “so that we may be able to console those who are in any affliction, with the consolation by which we ourselves are consoled by God” (2 Cor1:4).
    163.This then challenges us to seek a deeper understanding of the communitarian, social and missionary dimension of all authentic devotion to the heart of Christ.For even as Christ’s heart leads us to the Father, it sends us forth to our brothers and sisters.In the fruits of service, fraternity and mission that the heart of Christ inspires in our lives, the will of the Father is fulfilled.In this way, we come full circle: “My Father is glorified by this, that you bear much fruit” (Jn15:8).
    CHAPTER FIVE
    LOVE FOR LOVE
    164.In the spiritual experiences of Saint Margaret Mary Alacoque, we encounter, along with an ardent declaration of love for Jesus Christ, a profoundly personal and challenging invitation to entrust our lives to the Lord.The knowledge that we are loved, and our complete confidence in that love, in no way lessens our desire to respond generously, despite our frailty and our many shortcomings.
    A LAMENT AND A REQUEST
    165.Beginning with his second great apparition to Saint Margaret Mary, Jesus spoke of the sadness he feels because his great love for humanity receives in exchange “nothing but ingratitude and indifference”, “coldness and contempt”.And this, he added, “is more grievous to me than all that I endured in my Passion”.[162]
    166.Jesus spoke of his thirst for love and revealed that his heart is not indifferent to the way we respond to that thirst.In his words, “I thirst, but with a thirst so ardent to be loved by men in the Most Blessed Sacrament, that this thirst consumes me; and I have not encountered anyone who makes an effort, according to my desire, to quench my thirst, giving back a return for my love”.[163]Jesus asks for love.Once the faithful heart realizes this, its spontaneous response is one of love, not a desire to multiply sacrifices or simply discharge a burdensome duty: “I received from my God excessive graces of his love, and I felt moved by the desire to respond to some of them and to respond with love for love”.[164]As my Predecessor Leo XIII pointed out, through the image of his Sacred Heart, the love of Christ “moves us to return love for love”.[165]
    EXTENDING CHRIST’S LOVE TO OUR BROTHERS AND SISTERS
    167.We need once more to take up the word of God and to realize, in doing so, that our best response to the love of Christ’s heart is to love our brothers and sisters.There is no greater way for us to return love for love.The Scriptures make this patently clear:
    “Just as you did it to one of the least of these my brethren, you did it to me” (Mt25:40).
    “For the whole law is summed up in a single commandment: ‘You shall love your neighbour as yourself’” (Gal5:14).
    “We know that we have passed from death to life because we love one another. Whoever does not love abides in death” (1Jn3:14).
    “Those who do not love a brother or sister whom they have seen, cannot love God whom they have not seen” (1 Jn4:20).
    168.Love for our brothers and sisters is not simply the fruit of our own efforts; it demands the transformation of our selfish hearts.This realization gave rise to the oft-repeated prayer: “Jesus, make our hearts more like your own”.Saint Paul, for his part, urged his hearers to pray not for the strength to do good works, but “to have the same mind among you that was in Christ Jesus” (Phil2:5).
    169.We need to remember that in the Roman Empire many of the poor, foreigners and others who lived on the fringes of society met with respect, affection and care from Christians.This explains why the apostate emperor Julian, in one of his letters, acknowledged that one reason why Christians were respected and imitated was the assistance they gave the poor and strangers, who were ordinarily ignored and treated with contempt.For Julian, it was intolerable that the Christians whom he despised, “in addition to feeding their own, also feed our poor and needy, who receive no help from us”.[166]The emperor thus insisted on the need to create charitable institutions to compete with those of the Christians and thus gain the respect of society: “There should be instituted in each city many accommodations so that the immigrants may enjoy our philanthropy… and make the Greeks accustomed to such works of generosity”.[167]Julian did not achieve his objective, no doubt because underlying those works there was nothing comparable to the Christian charity that respected the unique dignity of each person.
    170.By associating with the lowest ranks of society (cf.Mt25:31-46), “Jesusbrought the great novelty of recognizing the dignity of every person, especially those who were considered ‘unworthy’.This new principle in human history – which emphasizes that individuals are even more ‘worthy’ of our respect and love when they are weak, scorned, or suffering, even to the point of losing the human ‘figure’ – has changed the face of the world.It has given life to institutions that take care of those who find themselves in disadvantaged conditions, such as abandoned infants, orphans, the elderly who are left without assistance, the mentally ill, people with incurable diseases or severe deformities, and those living on the streets”.[168]
    171.In contemplating the pierced heart of the Lord, who “took our infirmities and bore our diseases” (Mt8:17), we too are inspired to be more attentive to the sufferings and needs of others, and confirmed in our efforts to share in his work of liberation as instruments for the spread of his love.[169]As we meditate on Christ’s self-offering for the sake of all, we are naturally led to ask why we too should not be ready to give our lives for others: “We know love by this, that he laid down his life for us – and that we ought to lay down our lives for one another” (1 Jn3:16).
    ECHOES IN THE HISTORY OF SPIRITUALITY
    172.This bond between devotion to the heart of Jesus and commitment to our brothers and sisters has been a constant in the history of Christian spirituality.Let us consider a few examples.
    Being a fountain from which others can drink
    173.Starting with Origen, various Fathers of the Church reflected on the words of John 7:38 – “out of his heart shall flow rivers of living water” – which refer to those who, having drunk of Christ, put their faith in him.Our union with Christ is meant not only to satisfy our own thirst, but also to make us springs of living water for others.Origen wrote that Christ fulfils his promise by making fountains of fresh water well up within us: “The human soul, made in the image of God, can itself contain and pour forth wells, fountains and rivers”.[170]
    174.Saint Ambrose recommended drinking deeply of Christ, “in order that the spring of water welling up to eternal life may overflow in you”.[171]Marius Victorinus was convinced that the Holy Spirit has given of himself in such abundance that, “whoever receives him becomes a heart that pours forth rivers of living water”.[172]Saint Augustine saw this stream flowing from the believer as benevolence.[173]Saint Thomas Aquinas thus maintained that whenever someone “hastens to share various gifts of grace received from God, living water flows from his heart”.[174]
    175.Although “the sacrifice offered on the cross in loving obedience renders most abundant and infinite satisfaction for the sins of mankind”,[175]the Church, born of the heart of Christ, prolongs and bestows, in every time and place, the fruits of that one redemptive passion, which lead men and women to direct union with the Lord.
    176.In the heart of the Church, the mediation of Mary, as our intercessor and mother, can only be understood as “a sharing in the one source, which is the mediation of Christ himself”,[176]the sole Redeemer.For this reason, “the Church does not hesitate to profess the subordinate role of Mary”.[177]Devotion to the heart of Mary in no way detracts from the sole worship due the heart of Christ, but rather increases it: “Mary’s function as mother of humanity in no way obscures or diminishes this unique mediation of Christ, but rather shows its power”.[178]Thanks to the abundant graces streaming from the open side of Christ, in different ways the Church, the Virgin Mary and all believers become themselves streams of living water.In this way, Christ displays his glory in and through our littleness.
    Fraternity and mysticism
    177.Saint Bernard, in exhorting us to union with the heart of Christ, draws upon the richness of this devotion to call for a conversion grounded in love.Bernard believed that our affections, enslaved by pleasures, may nonetheless be transformed and set free, not by blind obedience to a commandment but rather in response to the delectable love of Christ.Evil is overcome by good, conquered by the flowering of love: “Love the Lord your God with the full and deep affection of all your heart; love him with your mind wholly alert and intent; love him with all your strength, so much so that you would not even fear to die for love of him…Your affection for the Lord Jesus should be both sweet and intimate, to oppose the sweet enticements of the sensual life.Sweetness conquers sweetness, as one nail drives out another”.[179]
    178.Saint Francis de Sales was particularly taken by Jesus’ words, “Learn from me; for I am gentle and humble in heart” (Mt11:29).Even in the most simple and ordinary things, he said, we can “steal” the Lord’s heart.“Those who would serve him acceptably must give heed not only to lofty and important matters, but to things mean and little, since by both alike we may win his heart and love…I mean the acts of daily forbearance, the headache, the toothache, the heavy cold; the tiresome peculiarities of a husband or wife, the broken glass, the loss of a ring, a handkerchief, a glove; the sneer of a neighbour; the effort of going to bed early in order to rise early for prayer or communion, the little shyness some people feel in openly performing religious duties… Be sure that all these sufferings, small as they are, if accepted lovingly, are most pleasing to God’s goodness”.[180]Ultimately, however, our response to the love of the heart of Christ is manifested in love of our neighbour: “a love that is firm, constant, steady, unconcerned with trivial matters or people’s station in life, not subject to changes or animosity…Our Lord loves us unceasingly, puts up with so many of our defects and our flaws.Precisely because of this, we must do the same with our brothers and sisters, never tiring of putting up with them”.[181]
    179.Saint Charles de Foucauld sought to imitate Jesus by living and acting as he did, in a constant effort to do what Jesus would have done in his place.Only by being conformed to the sentiments of the heart of Christ could he fully achieve this goal.Here too we find the idea of “love for love”.In his words, “I desire sufferings in order to return love for love, to imitate him… to enter into his work, to offer myself with him, the nothingness that I am, as a sacrifice, as a victim, for the sanctification of men”.[182]The desire to bring the love of Jesus to others, his missionary outreach to the poorest and most forgotten of our world, led him to take as his emblem the words, “Iesus-Caritas”, with the symbol of the heart of Christ surmounted by a cross.[183]Nor was this a light decision: “With all my strength I try to show and prove to these poor lost brethren that our religion is all charity, all fraternity, and that its emblem is a heart”.[184]He wanted to settle with other brothers “in Morocco, in the name of the heart of Jesus”.[185]In this way, their evangelizing work could radiate outwards: “Charity has to radiate from our fraternities, as it radiates from the heart of Jesus”.[186]This desire gradually made him a “universal brother”.Allowing himself to be shaped by the heart of Christ, he sought to shelter the whole of suffering humanity in his fraternal heart: “Our heart, like that of Jesus, must embrace all men and women”.[187]“The love of the heart of Jesus for men and women, the love that he demonstrated in his passion, this is what we need to have for all human beings”.[188]
    180.Father Henri Huvelin, the spiritual director of Saint Charles de Foucauld, observed that, “when our Lord dwells in a heart, he gives it such sentiments, and this heart reaches out to the least of our brothers and sisters.Such was the heart of Saint Vincent de Paul…When our Lord lives in the soul of a priest, he makes him reach out to the poor”.[189]It is important to realize that the apostolic zeal of Saint Vincent, as Father Huvelin describes it, was also nurtured by devotion to the heart of Christ.Saint Vincent urged his confreres to “find in the heart of our Lord a word of consolation for the poor sick person”.[190]If that word is to be convincing, our own heart must first have been changed by the love and tenderness of the heart of Christ.Saint Vincent often reiterated this conviction in his homilies and counsels, and it became a notable feature of the Constitutions of his Congregation: “We should make a great effort to learn the following lesson, also taught by Christ: ‘Learn from me, for I am gentle and humble of heart’.We should remember that he himself said that by gentleness we inherit the earth.If we act on this, we will win people over so that they will turn to the Lord.That will not happen if we treat people harshly or sharply”.[191]
    REPARATION: BUILDING ON THE RUINS
    181.All that has been said thus far enables us to understand in the light of God’s word the proper meaning of the “reparation” to the heart of Christ that the Lord expects us, with the help of his grace, to “offer”.The question has been much discussed, but Saint John Paul II has given us a clear response that can guide Christians today towards a spirit of reparation more closely attuned to the Gospels.
    The social significance of reparation to the heart of Christ
    182.Saint John Paul explained that by entrusting ourselves together to the heart of Christ, “over the ruins accumulated by hatred and violence, the greatly desired civilization of love, the Kingdom of the heart of Christ, can be built”.This clearly requires that we “unite filial love for God and love of neighbour”, and indeed this is “the true reparation asked by the heart of the Saviour”.[192]In union with Christ, amid the ruins we have left in this world by our sins, we are called to build a new civilization of love.That is what it means to make reparation as the heart of Christ would have us do.Amid the devastation wrought by evil, the heart of Christ desires that we cooperate with him in restoring goodness and beauty to our world.
    183.All sin harms the Church and society; as a result, “every sin can undoubtedly be considered as a social sin” and this is especially true for those sins that “by their very matter constitute a direct attack on one’s neighbour”.[193]Saint John Paul II explained that the repetition of these sins against others often consolidates a “structure of sin” that has an effect on the development of peoples.[194]Frequently, this is part of a dominant mind-set that considers normal or reasonable what is merely selfishness and indifference.This then gives rise to social alienation: “A society is alienated if its forms of social organization, production and consumption make it more difficult to offer the gift of self and to establish solidarity between people”.[195]It is not only a moral norm that leads us to expose and resist these alienated social structures and to support efforts within society to restore and consolidate the common good.Rather, it is our “conversion of heart” that “imposes the obligation”[196]to repair these structures.It is our response to the love of the heart of Jesus, which teaches us to love in turn.
    184.Precisely because evangelical reparation possesses this vital social dimension, our acts of love, service and reconciliation, in order to be truly reparative, need to be inspired, motivated and empowered by Christ.Saint John Paul II also observed that “to build the civilization of love”,[197]our world today needs the heart of Christ.Christian reparation cannot be understood simply as a congeries of external works, however indispensable and at times admirable they may be.These need a “mystique”, a soul, a meaning that grants them strength, drive and tireless creativity.They need the life, the fire and the light that radiate from the heart of Christ.
    Mending wounded hearts
    185.Nor is a merely outward reparation sufficient, either for our world or for the heart of Christ.If each of us considers his or her own sins and their effect on others, we will realize that repairing the harm done to this world also calls for a desire to mend wounded hearts where the deepest harm was done, and the hurt is most painful.
    186.A spirit of reparation thus “leads us to hope that every wound can be healed, however deep it may be.Complete reparation may at times seem impossible, such as when goods or loved ones are definitively lost, or when certain situations have become irremediable.Yet the intention to make amends, and to do so in a concrete way, is essential for the process of reconciliation and a return to peace of heart”.[198]
    The beauty of asking forgiveness
    187.Good intentions are not enough.There has to be an inward desire that finds expression in our outward actions.“Reparation, if it is to be Christian, to touch the offended person’s heart and not be a simple act of commutative justice, presupposes two demanding things:acknowledging our guiltandasking forgiveness…It is from the honest acknowledgment of the wrong done to our brother or sister, and from the profound and sincere realization that love has been compromised, that the desire to make amends arises”.[199]
    188.We should never think that acknowledging our sins before others is somehow demeaning or offensive to our human dignity.On the contrary, it demands that we stop deceiving ourselves and acknowledge our past for what it is, marred by sin, especially in those cases when we caused hurt to our brothers and sisters.“Self-accusation is part of Christian wisdom…It is pleasing to the Lord, because the Lord accepts a contrite heart”.[200]
    189.Part of this spirit of reparation is the custom of asking forgiveness from our brothers and sisters, which demonstrates great nobility amid our human weakness.Asking forgiveness is a means of healing relationships, for it “re-opens dialogue and manifests the will to re-establish the bond of fraternal charity…It touches the heart of our brother or sister, brings consolation and inspires acceptance of the forgiveness requested. Even if the irreparable cannot be completely repaired, love can always be reborn, making the hurt bearable”.[201]
    190.A heart capable of compunction will grow in fraternity and solidarity.Otherwise, “we regress and grow old within”, whereas when “our prayer becomes simpler and deeper, grounded in adoration and wonder in the presence of God, we grow and mature.We become less attached to ourselves and more attached to Christ.Made poor in spirit, we draw closer to the poor, those who are dearest to God”.[202]This leads to a true spirit of reparation, for “those who feel compunction of heart increasingly feel themselves brothers and sisters to all the sinners of the world; renouncing their airs of superiority and harsh judgments, they are filled with a burning desire to show love and make reparation”.[203]The sense of solidarity born of compunction also enables reconciliation to take place.The person who is capable of compunction, “rather than feeling anger and scandal at the failings of our brothers and sisters, weeps for their sins.There occurs a sort of reversal, where the natural tendency to be indulgent with ourselves and inflexible with others is overturned and, by God’s grace, we become strict with ourselves and merciful towards others”.[204]
    REPARATION: AN EXTENSION OF THE HEART OF CHRIST
    191.There is another, complementary, approach to reparation, which allows us to set it in an even more direct relationship with the heart of Christ, without excluding the aspect of concrete commitment to our brothers and sisters.
    192.Elsewhere I have suggested that, “God has in some way sought to limit himself in such a way that many of the things we think of as evils, dangers or sources of suffering, are in reality part of the pains of childbirth which he uses to draw us into the act of cooperation with the Creator”.[205]This cooperation on our part can allow the power and the love of God to expand in our lives and in the world, whereas our refusal or indifference can prevent it.Several passages of the Bible express this metaphorically, as when the Lord cries out, “If only you would return to me, O Israel!” (cf.Jer4:1).Or when, confronted with rejection by his people, he says, “My heart recoils within me; my compassion grows warm and tender” (Hos11:8).
    193.Even though it is not possible to speak of new suffering on the part of the glorified Lord,“the paschal mystery of Christ… and all that Christ is – all that he did and suffered for all men – participates in the divine eternity, and so transcends all times while being made present in them all”.[206]We can say that he has allowed the expansive glory of his resurrection to be limited and the diffusion of his immense and burning love to be contained, in order to leave room for our free cooperation with his heart.Our rejection of his love erects a barrier to that gracious gift, whereas our trusting acceptance of it opens a space, a channel enabling it to pour into our hearts.Our rejection or indifference limits the effects of his power and the fruitfulness of his love in us.If he does not encounter openness and confidence in me, his love is deprived – because he himself has willed it – of its extension, unique and unrepeatable, in my life and in this world, where he calls me to make him present.Again, this does not stem from any weakness on his part but rather from his infinite freedom, his mysterious power and his perfect love for each of us.When God’s power is revealed in the weakness of our human freedom, “only faith can discern it”.[207]
    194.Saint Margaret Mary recounted that, in one of Christ’s appearances, he spoke of his heart’s passionate love for us, telling her that, “unable to contain the flames of his burning charity, he must spread them abroad”.[208]Since the Lord, who can do all things, desired in his divine freedom to require our cooperation, reparation can be understood as our removal of the obstacles we place before the expansion of Christ’s love in the world by our lack of trust, gratitude and self-sacrifice.
    An Oblation to Love
    195.To help us reflect more deeply on this mystery, we can turn once more to the luminous spirituality of Saint Therese of the Child Jesus.Therese was aware that in certain quarters an extreme form of reparation had developed, based on a willingness to offer oneself in sacrifice for others, and to become in some sense a “lightning rod” for the chastisements of divine justice.In her words, “I thought about the souls who offer themselves as victims of God’s justice in order to turn away the punishments reserved to sinners, drawing them upon themselves”.[209]However, as great and generous as such an offering might appear, she did not find it overly appealing: “I was far from feeling attracted to making it”.[210]So great an emphasis on God’s justice might eventually lead to the notion that Christ’s sacrifice was somehow incomplete or only partly efficacious, or that his mercy was not sufficiently powerful.
    196.With her great spiritual insight, Saint Therese discovered that we can offer ourselves in another way, without the need to satisfy divine justice but by allowing the Lord’s infinite love to spread freely: “O my God!Is your disdained love going to remain closed up within your heart?It seems to me that if you were to find souls offering themselves as victims of holocaust to your love, you would consume them rapidly; it seems to me, too, that you would be happy not to hold back the waves of infinite tenderness within you”.[211]
    197.While nothing need be added to the one redemptive sacrifice of Christ, it remains true that our free refusal can prevent the heart of Christ from spreading the “waves of his infinite tenderness” in this world.Again, this is because the Lord wishes to respect our freedom.More than divine justice, it was the fact that Christ’s love might be refused that troubled the heart of Saint Therese, because for her, God’s justice is understood only in the light of his love.As we have seen, she contemplated all God’s perfections through his mercy, and thus saw them transfigured and resplendent with love.In her words, “even his justice (and perhaps this even more so than the others) seems to me clothed in love”.[212]
    198.This was the origin of her Act of Oblation, not to God’s justice but to his merciful love.“I offer myself as a victim of holocaust to your merciful love, asking you to consume me incessantly, allowing the waves of infinite tenderness shut up within you to overflow into my soul, and that thus I may become a martyr of your love”.[213]It is important to realize that, for Therese, this was not only about allowing the heart of Christ to fill her heart, through her complete trust, with the beauty of his love, but also about letting that love, through her life, spread to others and thus transform the world.Again, in her words, “In the heart of the Church, my Mother, I shall be love… and thus my dream will be realized”.[214]The two aspects were inseparably united.
    199.The Lord accepted her oblation.We see that shortly thereafter she stated that she felt an intense love for others and maintained that it came from the heart of Christ, prolonged through her.So she told her sister Léonie: “I love you a thousand times more tenderly than ordinary sisters love each other, for I can love you with the heart of our celestial spouse”.[215]Later, to Maurice Bellière she wrote, “How I would like to make you understand the tenderness of the heart of Jesus, what he expects from you!”[216]
    Integrity and Harmony
    200.Sisters and brothers, I propose that we develop this means of reparation, which is, in a word, to offer the heart of Christ a new possibility of spreading in this world the flames of his ardent and gracious love.While it remains true that reparation entails the desire to “render compensation for the injuries inflicted on uncreated Love, whether by negligence or grave offense”,[217]the most fitting way to do this is for our love to offer the Lord a possibility of spreading, in amends for all those occasions when his love has been rejected or refused.This involves more than simply the “consolation” of Christ of which we spoke in the previous chapter; it finds expression in acts of fraternal love by which we heal the wounds of the Church and of the world.In this way, we offer the healing power of the heart of Christ new ways of expressing itself.
    201.The sacrifices and sufferings required by these acts of love of neighbour unite us to the passion of Christ.In this way, “by that mystic crucifixion of which the Apostle speaks, we shall receive the abundant fruits of its propitiation and expiation, for ourselves and for others”.[218]Christ alone saves us by his offering on the cross; he alone redeems us, for “there is one God; there is also one mediator between God and men, the man Christ Jesus, who gave himself as a ransom for all” (1Tim2:5-6).The reparation that we offer is a freely accepted participation in his redeeming love and his one sacrifice.We thus complete in our flesh “what is lacking in Christ’s afflictions for the sake of his body, that is, the Church” (Col1:24); and Christ himself prolongs through us the effects of his complete and loving self-oblation.
    202.Often, our sufferings have to do with our own wounded ego.The humility of the heart of Christ points us towards the path of abasement.God chose to come to us in condescension and littleness.The Old Testament had already shown us, with a variety of metaphors, a God who enters into the heart of history and allows himself to be rejected by his people.Christ’s love was shown amid the daily life of his people, begging, as it were, for a response, as if asking permission to manifest his glory.Yet “perhaps only once did the Lord Jesus refer to his own heart, in his own words.And he stresses this sole feature: ‘gentleness and lowliness’, as if to say that only in this way does he wish to win us to himself”.[219]When he said, “Learn from me, for I am gentle and humble in heart” (Mt11:29), he showed us that “to make himself known, he needs our littleness, our self-abasement”.[220]
    203.In what we have said, it is important to note several inseparable aspects.Acts of love of neighbour, with the renunciation, self-denial, suffering and effort that they entail, can only be such when they are nourished by Christ’s own love.He enables us to love as he loved, and in this way he loves and serves others through us.He humbles himself to show his love through our actions, yet even in our slightest works of mercy, his heart is glorified and displays all its grandeur.Once our hearts welcome the love of Christ in complete trust, and enable its fire to spread in our lives, we become capable of loving others as Christ did, in humility and closeness to all.In this way, Christ satisfies his thirst and gloriously spreads the flames of his ardent and gracious love in us and through us.How can we fail to see the magnificent harmony present in all this?
    204.Finally, in order to appreciate this devotion in all of its richness, it is necessary to add, in the light of what we have said about its Trinitarian dimension, that the reparation made by Christ in his humanity is offered to the Father through the working of the Holy Spirit in each of us.Consequently, the reparation we offer to the heart of Christ is directed ultimately to the Father, who is pleased to see us united to Christ whenever we offer ourselves through him, with him and in him.
    BRINGING LOVE TO THE WORLD
    205.The Christian message is attractive when experienced and expressed in its totality: not simply as a refuge for pious thoughts or an occasion for impressive ceremonies.What kind of worship would we give to Christ if we were to rest content with an individual relationship with him and show no interest in relieving the sufferings of others or helping them to live a better life?Would it please the heart that so loved us, if we were to bask in a private religious experience while ignoring its implications for the society in which we live?Let us be honest and accept the word of God in its fullness.On the other hand, our work as Christians for the betterment of society should not obscure its religious inspiration, for that, in the end, would be to seek less for our brothers and sisters than what God desires to give them.For this reason, we should conclude this chapter by recalling the missionary dimension of our love for the heart of Christ.
    206.Saint John Paul II spoke of the social dimension of devotion to the heart of Christ, but also about “reparation, which is apostolic cooperation in the salvation of the world”.[221]Consecration to the heart of Christ is thus “to be seen in relation to the Church’s missionary activity, since it responds to the desire of Jesus’ heart to spread throughout the world, through the members of his Body, his complete commitment to the Kingdom”.[222]As a result, “through the witness of Christians, love will be poured into human hearts, to build up the body of Christ which is the Church, and to build a society of justice, peace and fraternity”.[223]
    207.The flames of love of the Sacred Heart of Jesus also expand through the Church’s missionary outreach, which proclaims the message of God’s love revealed in Christ.Saint Vincent de Paul put this nicely when he invited his disciples to pray to the Lord for “this spirit, this heart that causes us to go everywhere, this heart of the Son of God, the heart of our Lord, that disposes us to go as he went…he sends us, like [the apostles], to bring fire everywhere”.[224]
    208.Saint Paul VI, addressing religious Congregations dedicated to the spread of devotion to the Sacred Heart, made the following observation.“There can be no doubt that pastoral commitment and missionary zeal will fan into flame, if priests and laity alike, in their desire to spread the glory of God, contemplate the example of eternal love that Christ has shown us, and direct their efforts to make all men and women sharers in the unfathomable riches of Christ”.[225]As we contemplate the Sacred Heart, mission becomes a matter of love.For the greatest danger in mission is that, amid all the things we say and do, we fail to bring about a joyful encounter with the love of Christ who embraces us and saves us.
    209.Mission, as a radiation of the love of the heart of Christ, requires missionaries who are themselves in love and who, enthralled by Christ, feel bound to share this love that has changed their lives.They are impatient when time is wasted discussing secondary questions or concentrating on truths and rules, because their greatest concern is to share what they have experienced.They want others to perceive the goodness and beauty of the Beloved through their efforts, however inadequate they may be.Is that not the case with any lover?We can take as an example the words with which Dante Alighieri sought to express this logic of love:
    “Io dico che, pensando al suo valore
    amor si dolce si mi si fa sentire,
    che s’io allora non perdessi ardire
    farei parlando innamorar la gente”.[226]
    210.To be able to speak of Christ, by witness or by word, in such a way that others seek to love him, is the greatest desire of every missionary of souls.This dynamism of love has nothing to do with proselytism; the words of a lover do not disturb others, they do not make demands or oblige, they only lead others to marvel at such love.With immense respect for their freedom and dignity, the lover simply waits for them to inquire about the love that has filled his or her life with such great joy.
    211.Christ asks you never to be ashamed to tell others, with all due discretion and respect, about your friendship with him.He asks that you dare to tell others how good and beautiful it is that you found him.“Everyone who acknowledges me before others, I also will acknowledge before my Father in heaven” (Mt10:32).For a heart that loves, this is not a duty but an irrepressible need: “Woe to me if I do not proclaim the Gospel!” (1 Cor9:16).“Within me there is something like a burning fire shut up in my bones; I am weary with holding it in, and I cannot” (Jer20:9).
    In communion of service
    212.We should not think of this mission of sharing Christ as something only between Jesus and me.Mission is experienced in fellowship with our communities and with the whole Church.If we turn aside from the community, we will be turning aside from Jesus.If we turn our back on the community, our friendship with Jesus will grow cold.This is a fact, and we must never forget it.Love for the brothers and sisters of our communities – religious, parochial, diocesan and others – is a kind of fuel that feeds our friendship with Jesus.Our acts of love for our brothers and sisters in community may well be the best and, at times, the only way that we can witness to others our love for Jesus Christ.He himself said, “By this everyone will know that you are my disciples, if you have love for one another” (Jn13:35).
    213.This love then becomes service within the community.I never tire of repeating that Jesus told us this in the clearest terms possible: “Just as you did it to one of the least of these my brethren, you did it to me” (Mt25:40).He now asks you to meet him there, in every one of our brothers and sisters, and especially in the poor, the despised and the abandoned members of society.What a beautiful encounter that can be!
    214.If we are concerned with helping others, this in no way means that we are turning away from Jesus.Rather, we are encountering him in another way.Whenever we try to help and care for another person, Jesus is at our side.We should never forget that, when he sent his disciples on mission, “the Lord worked with them” (Mk16:20).He is always there, always at work, sharing our efforts to do good.In a mysterious way, his love becomes present through our service.He speaks to the world in a language that at times has no need of words.
    215.Jesus is calling you and sending you forth to spread goodness in our world.His call is one of service, a summons to do good, perhaps as a physician, a mother, a teacher or a priest.Wherever you may be, you can hear his call and realize that he is sending you forth to carry out that mission.He himself told us, “I am sending you out” (Lk10:3).It is part of our being friends with him.For this friendship to mature, however, it is up to you to let him send you forth on a mission in this world, and to carry it out confidently, generously, freely and fearlessly.If you stay trapped in your own comfort zone, you will never really find security; doubts and fears, sorrow and anxiety will always loom on the horizon.Those who do not carry out their mission on this earth will find not happiness, but disappointment.Never forget that Jesus is at your side at every step of the way.He will not cast you into the abyss, or leave you to your own devices.He will always be there to encourage and accompany you.He has promised, and he will do it: “For I am with you always, to the end of the age” (Mt28:20).
    216.In your own way, you too must be a missionary, like the apostles and the first disciples of Jesus, who went forth to proclaim the love of God, to tell others that Christ is alive and worth knowing.Saint Therese experienced this as an essential part of her oblation to merciful Love: “I wanted to give my Beloved to drink and I felt myself consumed with a thirst for souls”.[227]That is your mission as well.Each of us must carry it out in his or her own way; you will come to see how you can be a missionary.Jesus deserves no less.If you accept the challenge, he will enlighten you, accompany you and strengthen you, and you will have an enriching experience that will bring you much happiness.It is not important whether you see immediate results; leave that to the Lord who works in the secret of our hearts.Keep experiencing the joy born of our efforts to share the love of Christ with others.
    CONCLUSION
    217.The present document can help us see that the teaching of the social EncyclicalsLaudato Si’andFratelli Tuttiis not unrelated to our encounter with the love of Jesus Christ.For it is by drinking of that same love that we become capable of forging bonds of fraternity, of recognizing the dignity of each human being, and of working together to care for our common home.
    218.In a world where everything is bought and sold, people’s sense of their worth appears increasingly to depend on what they can accumulate with the power of money.We are constantly being pushed to keep buying, consuming and distracting ourselves, held captive to a demeaning system that prevents us from looking beyond our immediate and petty needs.The love of Christ has no place in this perverse mechanism, yet only that love can set us free from a mad pursuit that no longer has room for a gratuitous love.Christ’s love can give a heart to our world and revive love wherever we think that the ability to love has been definitively lost.
    219.The Church also needs that love, lest the love of Christ be replaced with outdated structures and concerns, excessive attachment to our own ideas and opinions, and fanaticism in any number of forms, which end up taking the place of the gratuitous love of God that liberates, enlivens, brings joy to the heart and builds communities.The wounded side of Christ continues to pour forth that stream which is never exhausted, never passes away, but offers itself time and time again to all those who wish to love as he did.For his love alone can bring about a new humanity.
    220.I ask our Lord Jesus Christ to grant that his Sacred Heart may continue to pour forth the streams of living water that can heal the hurt we have caused, strengthen our ability to love and serve others, and inspire us to journey together towards a just, solidary and fraternal world.Until that day when we will rejoice in celebrating together the banquet of the heavenly kingdom in the presence of the risen Lord, who harmonizes all our differences in the light that radiates perpetually from his open heart.May he be blessed forever.
    Given in Rome, at Saint Peter’s, on 24 October of the year 2024, the twelfth of my Pontificate.
    FRANCIS
    ______________________________
    [1]Many of the reflections in this first chapter were inspired by the unpublished writings of the late Father Diego Fares, S.J.May the Lord grant him eternal rest.
    [2]Cf. HOMER,Iliad, XXI, 441.
    [3]Cf.Iliad, X, 244.
    [4]Cf. PLATO,Timaeus, 65 c-d; 70.
    [5]Homily at Morning Mass in Domus Sanctae Marthae, 14 October 2016:L’Osservatore Romano, 15 October 2016, p. 8.
    [6]SAINT JOHN PAUL II,Angelus, 2 July 2000:L’Osservatore Romano, 3-4 July 2000, p. 4.
    [7]ID.,Catechesis, 8 June 1994:L’Osservatore Romano, 9 June 1994, p. 5.
    [8]The Demons(1873).
    [9]ROMANO GUARDINI,Religiöse Gestalten in Dostojewskijs Werk, Mainz/Paderborn, 1989, pp. 236ff.
    [10]KARL RAHNER,“Some Theses for a Theology of Devotion to the Sacred Heart”, inTheological Investigations, vol. III, Baltimore-London, 1967, p. 332.
    [11]Ibid., p. 333.
    [12]BYUNG-CHUL HAN,Heideggers Herz.Zum Begriff der Stimmung bei Martin Heidegger, München, 1996, p. 39.
    [13]Ibid., p. 60; cf. p. 176.
    [14]Cf. ID.,Agonie des Eros, Berlin, 2012.
    [15]Cf. MARTIN HEIDEGGER,Erläuterungen zu Hölderlins Dichtung, Frankfürt a. M., 1981, p. 120.
    [16]Cf. MICHEL DE CERTEAU,L’espace du désir ou le «fondement» des Exercises Spirituels:Christus77 (1973), pp. 118-128.
    [17]Itinerarium Mentis in Deum, VII, 6.
    [18]ID.,Proemium in I Sent.,q. 3.
    [19]SAINT JOHN HENRY NEWMAN,Meditations and Devotions, London, 1912, Part III [XVI], par. 3, pp. 573-574.
    [20]Pastoral ConstitutionGaudium et Spes, 82.
    [21]Ibid., 10.
    [22]Ibid., 14.
    [23]Cf.DICASTERY FOR THE DOCTRINE OF THE FAITH, DeclarationDignitas Infinita(2 April 2024), 8.Cf.L’Osservatore Romano, 8 April 2024.
    [24]Pastoral ConstitutionGaudium et Spes, 26.
    [25]SAINT JOHN PAUL II,Angelus, 28 June 1998:L’Osservatore Romano, 30 June-1 July 1998, p. 7.
    [26]Encyclical LetterLaudato Si’(24 May 2015),83: AAS 107 (2015), 880.
    [27]Homily at Morning Mass in Domus Sanctae Marthae, 7 June 2013:L’Osservatore Romano, 8 June 2013, p. 8.
    [28]PIUS XII, Encyclical LetterHaurietis Aquas(15 May 1956), I: AAS 48 (1956), 316.
    [29]PIUS VI, ConstitutionAuctorem Fidei(28 August 1794), 63: DH 2663.
    [30]LEO XIII,Encyclical LetterAnnum Sacrum(25 May 1899): ASS 31 (1898-1899), 649.
    [31]Ibid:“Inest in Sacro Corde symbolum et expressa imago infinitæ Iesu Christi caritatis”.
    [32]Angelus, 9 June 2013:L’Osservatore Romano, 10-11 June 2013, p. 8.
    [33]We canthus understand why the Church has forbidden placing on the altar representations of the heart of Jesus or Mary alone (cf. Response of the Congregation of Sacred Rites to the Reverend Charles Lecoq, P.S.S., 5 April 1879:Decreta Authentica Congregationis Sacrorum Rituum ex Actis ejusdem Collecta, vol. III, 107-108, n. 3492).Outside the liturgy, “for private devotion” (ibid.), the symbolism of a heart can be used as a teaching aid, an aesthetic figure or an emblem that invites one to meditate on the love of Christ, but this risks taking the heart as an object of adoration or spiritual dialogue apart from the Person of Christ.On 31 March 1887, the Congregation gave another, similar response (ibid., 187, n. 3673).
    [34]ECUMENICAL COUNCIL OF TRENT, Session XXV, DecreeMandat Sancta Synodus(3 December 1563): DH 1823.
    [35]FIFTH GENERAL CONFERENCE OF THE LATIN AMERICAN AND CARIBBEAN BISHOPS,Aparecida Document(29 June 2007), n. 259.
    [36]Encyclical LetterHaurietis Aquas(15 May 1956), I: AAS 48 (1956), 323-324.
    [37]Ep. 261, 3: PG 32, 972.
    [38]In Io. homil.63, 2: PG 59, 350.
    [39]De fide ad Gratianum, II, 7, 56: PL 16, 594 (ed. 1880).
    [40]Enarr. in Ps. 87, 3: PL 37, 1111.
    [41]Cf.De fide orth. 3, 6, 20: PG 94, 1006, 1081.
    [42]OLEGARIO GONZÁLEZ DE CARDEDAL,La entraña del cristianismo, Salamanca, 2010, 70-71.
    [43]Angelus, 1 June 2008:L’Osservatore Romano, 2-3 June 2008, p. 1.
    [44]PIUS XII, Encyclical LetterHaurietis Aquas(15 May 1956), II: AAS 48 (1956), 327-328.
    [45]Ibid.: AAS 48 (1956), 343-344.
    [46]BENEDICT XVI,Angelus, 1 June 2008:L’Osservatore Romano, 2-3 June 2008, p. 1.
    [47]VIGILIUS,ConstitutionInter Innumeras Sollicitudines(14 May 553):DH 420.
    [48]ECUMENICAL COUNCIL OF EPHESUS,Anathemas of Cyril of Alexandria, 8: DH 259.
    [49]SECOND ECUMENICAL COUNCIL OF CONSTANTINOPLE, Session VIII (2 June 553), Canon 9: DH 431.
    [50]SAINT JOHN OF THE CROSS,Spiritual Canticle, red.A, Stanza 22, 4.
    [51]Ibid., Stanza 12, 8.
    [52]Ibid., Stanza 12, 1.
    [53]“There is one God, the Father, from whom are all things and for whom we exist” (1 Cor8:6).“To our God and Father be glory forever and ever. Amen”(Phil4:20).“Blessed be the God and Father of our Lord Jesus Christ, the Father of mercies and the God of all consolation”(2 Cor1:3).
    [54]Apostolic LetterTertio Millennio Adveniente(10 November 1994), 49: AAS 87 (1995), 35.
    [55]Ad Rom., 7: PG 5, 694.
    [56]“That the world may know that I love the Father” (Jn14:31); “The Father and I are one” (Jn10:30); “I am in the Father and the Father is in me” (Jn14:10).
    [57]“Iam going to the Father” (pros ton Patéra:Jn16:28).“I am coming to you” (pros se:Jn17:11).
    [58]“eis ton kolpon tou Patrós”.
    [59]Adv. Haer., III, 18, 1: PG 7, 932.
    [60]In Joh.II, 2: PG 14, 110.
    [61]Angelus, 23 June 2002:L’Osservatore Romano, 24-25 June 2002, p. 1.
    [62]SAINT JOHN PAUL II,Message on the Hundredth Anniversary of the Consecration of the Human Race to the Divine Heart of Jesus, Warsaw, 11 June 1999, Solemnity of the Sacred Heart of Jesus, 3:L’Osservatore Romano, 12 June 1999, p. 5.
    [63]ID.,Angelus, 8 June 1986:L’Osservatore Romano, 9-10 June 1986, p. 5
    [64]Homily, Visit to the Gemelli Hospital and to the Faculty of Medicine of the Catholic University of the Sacred Heart, 27 June 2014:L’Osservatore Romano, 29 June 2014, p. 7.
    [65]Eph1:5, 7; 2:18; 3:12.
    [66]Eph2:5, 6; 4:15.
    [67]Eph1:3, 4, 6, 7, 11, 13, 15; 2:10, 13, 21, 22; 3:6, 11, 21.
    [68]Message on the Hundredth Anniversary of the Consecration of the Human Race to the Divine Heart of Jesus, Warsaw, 11 June 1999, Solemnity of the Sacred Heart of Jesus, 2:L’Osservatore Romano, 12 June 1999, p. 5.
    [69]“Since there is in the Sacred Heart a symbol and the express image of the infinite love of Jesus Christ that moves us to love one another, it is fit and proper that we should consecrate ourselves to his most Sacred Heart – an act that is nothing else than an offering and a binding of oneself to Jesus Christ, for whatever honour, veneration and love is given to this divine Heart is really and truly given to Christ himself…And now, today, behold another blessed and heavenly token is offered to our sight – the most Sacred Heart of Jesus, with a cross rising from it and shining forth with dazzling splendour amidst flames of love.In that Sacred Heart all our hopes should be placed, and from it the salvation of men is to be confidently besought” (Encyclical LetterAnnum Sacrum[25 May 1899]: ASS 31 [1898-1899], 649, 651).
    [70]“For is not the sum of all religion and therefore the pattern of more perfect life, contained in that most auspicious sign and in the form of piety that follows from it inasmuch as it more readily leads the minds of men to an intimate knowledge of Christ our Lord, and more efficaciously moves their hearts to love him more vehemently and to imitate him more closely?”(Encyclical LetterMiserentissimus Redemptor[8 May 1928]: AAS 20 [1928], 167).
    [71]“For it is perfectly clear that this devotion, if we examine its proper nature, is a most excellent act of religion, inasmuch as it demands the full and absolute determination of surrendering and consecrating oneself to the love of the divine Redeemer whose wounded heart is the living sign and symbol of that love…In it, we can contemplate not only the symbol, but also, as it were, the synthesis of the whole mystery of our redemption…Christ expressly and repeatedly pointed to his heart as the symbol by which men are drawn to recognize and acknowledge his love, and at the same time constituted it as the sign and pledge of his mercy and his grace for the needs of the Church in our time” (Encyclical LetterHaurietis Aquas[15 May 1956], Proemium, III, IV: AAS 48 [1956], 311, 336, 340).
    [72]Catechesis, 8 June 1994, 2:L’Osservatore Romano, 9 June 1994, p. 5.
    [73]Angelus, 1 June 2008:L’Osservatore Romano, 2-3 June 2008, p. 1.
    [74]Encyclical LetterHaurietis Aquas(15 May 1956), IV: AAS 48 (1956), 344.
    [75]Cf.ibid.: AAS 48 (1956), 336.
    [76]“The value of private revelations is essentially different from that of the one public revelation: the latter demands faith…A private revelation… is a help which is proffered, but its use is not obligatory” (BENEDICT XVI, Apostolic ExhortationVerbum Domini[30 September 2010], 14: AAS 102 [2010]), 696).
    [77]Encyclical LetterHaurietis Aquas(15 May 1956), IV: AAS 48 (1956), 340.
    [78]Ibid.: AAS 48 (1956), 344.
    [79]Ibid.
    [80]Apostolic ExhortationC’est la Confiance(15 October 2023), 20:L’Osservatore Romano, 16 October 2023.
    [81]SAINT THERESE OF THE CHILD JESUS,Autobiography, Ms A, 83v°.
    [82]SAINT MARIA FAUSTINA KOWALSKA,Diary, 47 (22 February 1931),Marian Press, Stockbridge, 2011, p. 46.
    [83]Mishnah Sukkah, IV, 5, 9.
    [84]Letter to the Superior General of the Society of Jesus, Paray-le-Monial (France), 5 October 1986:L’Osservatore Romano, 7 October 1986, p. IX.
    [85]Acta Martyrum Lugdunensium, in EUSEBIUS OF CAESARIA,Historia Ecclesiastica, V, 1: PG 20, 418.
    [86]RUFINUS, V, 1, 22, in GCS,EusebiusII, 1, p. 411, 13ff.
    [87]SAINT JUSTIN,Dial.135,3: PG 6, 787
    [88]NOVATIAN,De Trinitate, 29: PL 3, 994; cf. SAINT GREGORY OF ELVIRA,Tractatus Origenis de libris Sanctarum Scripturarum, XX, 12: CSSL 69, 144.
    [89]Expl. Ps.1:33: PL 14, 983-984.
    [90]Cf.Tract. in Ioannem61, 6: PL 35, 1801.
    [91]Ep. ad Rufinum, 3, 4.3: PL 22, 334.
    [92]Sermones in Cant.61, 4: PL 183, 1072.
    [93]Expositio altera super Cantica Canticorum, c. 1: PL 180, 487.
    [94]WILLIAM OF SAINT-THIERRY,De natura et dignitate amoris, 1: PL 184, 379.
    [95]ID.,Meditivae Orationes, 8, 6: PL 180, 230.
    [96]SAINT BONAVENTURE,Lignum Vitae.De mysterio passionis, 30.
    [97]Ibid., 47.
    [98]Legatus divinae pietatis, IV, 4, 4: SCh 255, 66.
    [99]LÉON DEHON,Directoire spirituel des prêtres su Sacré Cœur de Jésus, Turnhout, 1936, II, ch. VII, n. 141.
    [100]Dialogue on Divine Providence, LXXV: FIORILLI M.-CARAMELLA S., eds., Bari, 1928, 144.
    [101]Cf., for example, ANGELUS WALZ,De veneratione divini cordis Iesu in Ordine Praedicatorum, Pontificium Institutum Angelicum, Rome, 1937.
    [102]RAFAEL GARCÍA HERREROS, Vida de San Juan Eudes, Bogotá, 1943, 42.
    [103]SAINT FRANCIS DE SALES,Letter to Jane Frances de Chantal, 24 April 1610.
    [104]Sermon forthe Second Sunday of Lent, 20 February 1622.
    [105]Letter to Jane Frances de Chantal, Solemnity of the Ascension, 1612.
    [106]Letter to Marie Aimée de Blonay, 18 February 1618.
    [107]Letter to Jane Frances de Chantal, late November 1609.
    [108]Letter to Jane Frances de Chantal, ca. 25 February 1610.
    [109]Entretien XIV, on religious simplicity and prudence.
    [110]Letter to Jane Frances de Chantal,10 June 1611.
    [111]SAINT MARGARET MARY ALACOQUE,Autobiography, n. 53.
    [112]Ibid.
    [113]Ibid., n. 55.
    [114]Cf. DICASTERY FOR THE DOCTRINE OF THE FAITH,Norms for Proceeding in the Discernment of Alleged Supernatural Phenomena, 17 May 2024, I, A, 12.
    [115]SAINT MARGARET MARY ALACOQUE,Autobiography, n. 92.
    [116]Letter to Sœur de la Barge, 22 October 1689.
    [117]Autobiography, n. 53.
    [118]Ibid., n. 55.
    [119]Sermon on Trust in God, inŒuvres du R.P de La Colombière, t. 5, Perisse, Lyon, 1854, p. 100.
    [120]Spiritual Exercises in London, 1-8 February 1677, inŒuvres du R.P de La Colombière, t. 7, Seguin, Avignon, 1832, p. 93.
    [121]Spiritual Exercises in Lyon, October-November 1674, ibid., p. 45.
    [122]SAINT CHARLES DE FOUCAULD,Letter to Madame de Bondy, 27 April 1897.
    [123]Letter to Madame de Bondy, 28 April 1901.Cf.Letter to Madame de Bondy, 5 April 1909: “Through you I came to know the adoration of the Blessed Sacrament, the benedictions and the Sacred Heart”.
    [124]Letter to Madame de Bondy, 7 April 1890.
    [125]Letter to l’Abbé Huvelin, 27 June 1892.
    [126]SAINT CHARLES DE FOUCAULD,Méditations sur l’Ancien Testament (1896-1897), XXX, 1-21.
    [127]ID.,Letter to l’Abbé Huvelin, 16 May 1900.
    [128]ID.,Diary, 17 May 1906.
    [129]Letter 67 to Mme. Guérin, 18 November 1888.
    [130]Letter 122 to Céline, 14 October 1890.
    [131]Poem 23, “To the Sacred Heart of Jesus”, June or October 1895.
    [132]Letter 247 to l’Abbé Maurice Bellière, 21 June 1897.
    [133]Last Conversations. Yellow Notebook, 11 July 1897, 6.
    [134]Letter 197 to Sister Marie of the Sacred Heart, 17 September 1896.This does not mean that Therese did not offer sacrifices, sorrows and troubles as a way of associating herself with the suffering of Christ, but that, in the end, she was concerned not to give these offerings an importance they did not have.
    [135]Letter 142 to Céline, 6 July 1893.
    [136]Letter 191 to Léonie, 12 July 1896.
    [137]Letter 226 to Father Roulland, 9 May 1897.
    [138]Letter 258 to l’Abbé Maurice Bellière, 18 July 1897.
    [139]Cf. SAINT IGNATIUS LOYOLA,Spiritual Exercises, 104.
    [140]Ibid., 297.
    [141]Cf.Letter to Ignatius Loyola, 23 January 1541.
    [142]De Vita P. Ignatii et Societatis Iesu initiis, ch. 8.96.
    [143]Spiritual Exercises, 54.
    [144]Ibid., 230ff.
    [145]THIRTY-THIRD GENERAL CONGREGATION OF THE SOCIETY OF JESUS, Decree 46, 1:Institutum Societatis Iesu, 2, Florence, 1893, 511.
    [146]In Him Alone is Our Hope. Texts on the Heart of Christ, St. Louis, 1984.
    [147]Letter to the Superior General of the Society of Jesus, Paray-le-Monial, 5 October 1986:L’Osservatore Romano, 6 October 1986, p. 7.
    [148]Conference to Priests, “Poverty”, 13 August 1655.
    [149]Conference to the Daughters of Charity, “Mortification, Correspondence, Meals and Journeys (Common Rules,art. 24-27), 9 December 1657.
    [150]SAINT DANIELE COMBONI,Gli scritti,Bologna, 1991, 998 (n. 3324).
    [151]Homily at the Mass of Canonization, 18 May 2003:L’Osservatore Romano, 19-20 May 2003, p. 6.
    [152]SAINT JOHN PAUL II, Encyclical LetterDives in Misericordia(30 November 1980), 1: AAS 72 (1980), 1219.
    [153]ID.,Catechesis, 20 June 1979:L’Osservatore Romano, 22 June 1979, 1.
    [154]COMBONIAN MISSIONARIES OF THE HEART OF JESUS,Rule of Life, 3.
    [155]SOCIETY OF THE SACRED HEART,Constitutions of 1982, 7.
    [156]Encyclical LetterMiserentissimus Redemptor(8 May 1928): AAS 20 (1928), 174.
    [157]The believer’s act of faith has as its object not simply the doctrine proposed, but also union with Christ himself in the reality of his divine life (cf. SAINT THOMAS AQUINAS,Summa Theologiae, II-II, q. 1, a. 2, ad 2; q. 4, a. 1).
    [158]PIUS XI, Encyclical LetterMiserentissimus Redemptor(8 May 1928): AAS 20 (1928), 174.
    [159]Homily at the Chrism Mass, 28 March 2024:L’Osservatore Romano, 28 March 2024, p. 2.
    [160]SAINT IGNATIUS LOYOLA,Spiritual Exercises, 203.
    [161]Homily at the Chrism Mass, 28 March 2024:L’Osservatore Romano, 28 March 2024, p. 2.
    [162]SAINT MARGARET MARY ALACOQUE,Autobiography, n. 55.
    [163]Letter 133 to Father Croiset.
    [164]Autobiography, n. 92.
    [165]Encyclical LetterAnnum Sacrum(25 May 1899): ASS 31 (1898-1899), 649.
    [166]IULIANUS IMP.,Ep. XLIX ad Arsacium Pontificem Galatiae, Mainz, 1828, 90-91.
    [167]Ibid.
    [168]DICASTERY FOR THE DOCTRINE OF THE FAITH, DeclarationDignitas Infinita(2 April 2024), 19:L’Osservatore Romano, 8 April 2024.
    [169]Cf. BENEDICT XVI,Letter to the Superior General of the Society of Jesus on the Fiftieth Anniversary of the Encyclical“Haurietis Aquas”(15 May 2006): AAS 98 (2006), 461.
    [170]In Num. homil.12, 1: PG 12, 657.
    [171]Epist. 29, 24: PL 16, 1060.
    [172]Adv.Arium1, 8: PL 8, 1044.
    [173]Tract. in Joannem32, 4: PL 35, 1643.
    [174]Expos. in Ev. S. Joannis, cap. VII, lectio 5.
    [175]PIUS XII, Encyclical LetterHaurietis Aquas, 15 May 1956: AAS 48 (1956), 321.
    [176]SAINT JOHN PAUL II, Encyclical LetterRedemptoris Mater(25 March 1987), 38: AAS 79 (1987), 411.
    [177]SECOND VATICAN ECUMENICAL COUNCIL, Dogmatic ConstitutionLumen Gentium, 62.
    [178]Ibid., 60.
    [179]Sermones super Cant.,XX, 4: PL 183, 869.
    [180]Introduction to the Devout Life, Part III, xxxv.
    [181]Sermon for the XVII Sunday after Pentecost.
    [182]Écrits spirituels, Paris 1947, 67.
    [183]After 19 March 1902, all his letters begin with the wordsJesus Caritasseparated by a heart surmounted by the cross.
    [184]Letter to l’Abbé Huvelin, 15 July 1904.
    [185]Letter to Dom Martin, 25 January 1903.
    [186]Cited in RENÉVOILLAUME, Les fraternités du Père de Foucauld, Paris, 1946, 173.
    [187]Méditations des saints Évangiles sur les passages relatifs à quinze vertus, Nazareth, 1897-1898,Charité(Mt13:3), 60.
    [188]Ibid.,Charité(Mt22:1), 90.
    [189]H. HUVELIN,Quelques directeurs d’âmes au XVII siècle, Paris, 1911, 97.
    [190]Conference, “Service of the Sick and Care of One’s own Health”, 11 November 1657.
    [191]Common Rules of the Congregation of the Mission, 17 May 1658, c. 2, 6.
    [192]Letter to the Superior General of the Society of Jesus, Paray-le-Monial, 5 October 1986:L’Osservatore Romano, 6 October 1986, p. 7.
    [193]SAINT JOHN PAUL II, Post-Synodal Apostolic ExhortationReconciliatio et Paenitentia(2 December 1984), 16: AAS 77 (1985), 215.
    [194]Cf. Encyclical LetterSollicitudo Rei Socialis(30 December 1987), 36: AAS 80 (1988), 561-562.
    [195]Encyclical LetterCentesimus Annus(1 May 1991), 41: AAS 83 (1991), 844-845.
    [196]Catechism of the Catholic Church, 1888.
    [197]Catechesis, 8 June 1994, 2:L’Osservatore Romano, 4 May 1994, p. 5.
    [198]Address to the Participants in the International Colloquium “Réparer L’Irréparable”, on the 350thAnniversary of the Apparitions of Jesus in Paray-le-Monial, 4 May 2024:L’Osservatore Romano, 4 May 2024, p. 12.
    [199]Ibid.
    [200]Homily at Morning Mass in Domus Sanctae Marthae, 6 March 2018:L’Osservatore Romano, 5-6 March 2018, p. 8.
    [201]Address to the Participants in the International Colloquium “Réparer L’Irréparable”, on the 350thAnniversary of the Apparitions of Jesus in Paray-le-Monial, 4 May 2024:L’Osservatore Romano, 4 May 2024, p. 12.
    [202]Homily at the Chrism Mass, 28 March 2024:L’Osservatore Romano, 28 March 2024, p. 2.
    [203]Ibid.
    [204]Ibid.
    [205]Encyclical LetterLaudato Si’(24 May 2015), 80: AAS 107 (2015), 879.
    [206]Catechism of the Catholic Church, No. 1085.
    [207]Ibid., No. 268.
    [208]Autobiography, n. 53.
    [209]Ms A, 84r.
    [210]Ibid.
    [211]Ibid.
    [212]Ms A, 83v.; cf.Letter 226 to Father Roulland, 9 May 1897.
    [213]Act of Oblation to Merciful Love, 9 June 1895, 2r-2v.
    [214]Ms B, 3v.
    [215]Letter 186 to Léonie,11 April 1896.
    [216]Letter 258 to l’Abbé Bellière, 18 July 1897.
    [217]Cf. PIUS XI, Encyclical LetterMiserentissimus Redemptor, 8 May 1928: AAS 20 (1928), 169.
    [218]Ibid.: AAS 20 (1928), 172.
    [219]SAINT JOHN PAUL II, Catechesis, 20 June 1979:L’Osservatore Romano, 22 June 1979, p. 1.
    [220]Homily at Mass in Domus Sanctae Marthae, 27 June 2014:L’Osservatore Romano, 28 June 2014, p. 8.
    [221]Message for the Centenary of the Consecration of the Human Race to the Divine Heart of Jesus, Warsaw, 11 June 1999, Solemnity of the Sacred Heart of Jesus.L’Osservatore Romano, 12 June 1999, p. 5.
    [222]Ibid.
    [223]Letter to the Archbishop of Lyon on the occasion of the Pilgrimage of Paray-le-Monial for the Centenary of the Consecration of the Human Race to the Divine Heart of Jesus, 4 June 1999:L’Osservatore Romano, 12 June 1999, p. 4.
    [224]Conference,“Repetition of Prayer”, 22 August 1655.
    [225]LetterDiserti interpretes(25 May 1965), 4:Enchiridion della Vita Consacrata, Bologna-Milano, 2001, n. 3809.
    [226]Vita NuovaXIX, 5-6: “I declare that, in thinking of its worth, love so sweet makes me feel that, if my courage did not fail me, I would speak out and make everyone else fall in love”.
    [227] Ms A, 45v.

    MIL OSI Europe News

  • MIL-OSI Asia-Pac: Pressure on judges condemned

    Source: Hong Kong Information Services

    The Government today strongly condemned recent attempts by some individuals overseas to exert improper pressure on Court of Final Appeal non-permanent judge Patrick Keane, blatantly interfering with ongoing criminal proceedings in the Hong Kong Special Administrative Region.

    The Government noted that any attempt by any organisation or individual to exert pressure on judges and judicial officers, and interfere with the criminal justice process by means of political power or any other means, is clearly a reprehensible act undermining the rule of law of the Hong Kong SAR and should be vehemently condemned.

    It highlighted that Hong Kong’s rule of law and independent judicial power are guaranteed under the Basic Law, which specifically provides that the judicial power, including that of final adjudication, vested with the Hong Kong SAR, is to be exercised by the Judiciary independently, free from any interference.

    The Government said it fully supports the Judiciary in exercising its judicial power independently, safeguarding the due administration of justice and the rule of law.

    Regarding Lai Chee-ying’s case concerning the National Security Law, the Government pointed out that as the relevant legal proceedings are still ongoing, it is inappropriate for any person to comment on the details of the case or exert improper interference.

    The Government emphasised that all cases are handled strictly on the basis of evidence and in accordance with the law. All defendants will receive a fair trial strictly in accordance with laws applicable to Hong Kong and as protected by the Basic Law and the Hong Kong Bill of Rights.

    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: Report of Strategic Feasibility Study on the Development of Wetland Conservation Parks System released

    Source: Hong Kong Government special administrative region

         The report of the Strategic Feasibility Study on the Development of the Wetland Conservation Parks (WCPs) System was released today (October 24).  

         The development of a WCPs System was promulgated in the Northern Metropolis Development Strategy in 2021, with a view to conserving the Deep Bay wetlands with ecological value, and creating environmental capacity for the Northern Metropolis to achieve co-existence of conservation and development. The Strategic Feasibility Study on the Development of the WCPs System, commissioned by the Agriculture, Fisheries and Conservation Department (AFCD) in August 2022, had reviewed the ecological conditions, land use and planning matters, aquaculture activities, eco-education and recreation facilities, etc, in the proposed areas of the proposed WCPs System. The Feasibility Study also formulated recommendations on the overall implementation strategy for the development of the WCPs System, including the proposed boundaries, positioning and functions, conceptual plans and management options of the proposed Parks under the System. The consultant also collected views from the public and stakeholders on the initiative through two stages of public engagement exercises, and suitably incorporated such views.

         The Feasibility Study considered that the development of the WCPs System was feasible and worthwhile, which could effectively conserve the wetlands in the Deep Bay area and enhance their ecological value, promote the modernisation of the aquaculture industry, and provide eco-education and recreation facilities for public enjoyment. At the same time, the development of the WCPs System could also create environmental capacity for the development of the Northern Metropolis, and achieve co-existence of conservation and development.

         The Feasibility Study recommended developing the WCPs System in phases by developing the Sam Po Shue WCP first. Subsequently, by making reference to the experience of planning and establishing the Sam Po Shue WCP, further studies on the remaining proposed Parks, i.e. Hong Kong Wetland Park Expansion Area, Nam Sang Wai WCP, and Hoo Hok Wai WCP (including Sha Ling/Nam Hang area), would be reviewed in due course.

         Specific positioning and functions for each Park were recommended by the consultant based on their respective conditions, and broad zonings, including Biodiversity Zone, Eco-friendly Aquaculture Zone, Fisheries Enhancement Zone and Visitor Zone, were delineated under the conceptual plan of each Park. It was recommended that the Government oversee the overall management of the whole WCPs System, and manage the different zones within the Parks in co-operation with different parties, including non-governmental organisations, agriculture and fisheries associations, local communities, private landowners and private sector, depending on the relevant functions and operational needs. 

         A spokesman for the AFCD said that the department considered the recommendations of the report of the Feasibility Study generally acceptable, and these recommendations would be taken into consideration in the next stage when carrying out detailed studies on the investigation, design and construction of the Parks.  

         The report of the Feasibility Study is available on the AFCD website (www.afcd.gov.hk/english/conservation/con_wet/wcps_system/wcps_system.html). 

    MIL OSI Asia Pacific News

  • MIL-OSI Video: UK Lord Butler of Brockwell: Lord Speaker’s Corner | House of Lords | Episode 22

    Source: United Kingdom UK House of Lords (video statements)

    ‘I’d heard bombs before, so I knew it was a bomb.’

    Forty years ago this month, Robin Butler – Principle Private Secretary to Margaret Thatcher – was in the room with the prime minister when the Brighton bomb exploded nearby in their hotel.

    ‘This is our opportunity to show that terrorism can’t defeat democracy’

    Now Lord Butler of Brockwell tells the Lord Speaker about his experience, from their initial reaction to the blast, to going back to retrieve the prime minister’s papers, and shares Margaret Thatcher’s response to his suggestion she postpone the start of the Conservative Party Conference the next morning.

    ‘I devoted my life to assisting politicians with government.’

    Lord Butler worked closely with five prime ministers, from Edward Heath to Tony Blair. In this episode he shares his experience of working with each of them either as private secretary or cabinet secretary. He speaks about later work of prime ministers on Northern Ireland, negotiations with Europe, why he joined the civil service and the growing role of special advisers. He also shares his thoughts on reforming the Civil Service, arguing that ‘you’ve got to reform it constantly… But you’ve got to lead the Civil Service in my view, and not drive them’

    See more from the series https://www.parliament.uk/business/lords/house-of-lords-podcast/

    #HouseOfLords #UKParliament #LordSpeakersCorner #LordsMembers

    https://www.youtube.com/watch?v=XIws-4TrWLE

    MIL OSI Video

  • MIL-OSI United Kingdom: Strengthening Defence Through Wargaming

    Source: United Kingdom – Executive Government & Departments

    In recent years, there has been a resurgence in using wargaming to support decision making across the MOD and, to some extent, wider government.

    MOD Crown Copyright

    In response, the Defence Science and Technology Laboratory (Dstl) established the Defence Wargaming Centre (DWC) at Portsdown West (PDW), significantly increasing its analytical wargaming capability and capacity. In concert with this, Strategic Command further enhanced MOD wargaming capability and capacity, a central part was the establishment of the Defence Experimentation and Wargaming Hub (DEWH) at MOD Southwick Park (SWP).

    The two organisations already work closely together and, this October, they formalised their relationship with the signing of a partnership charter. The charter sets out principles to ensure that the two centres operate coherently, consistently and efficiently in pursuit of a common set of goals.

    Against the backdrop of Southwick Park’s historic D-Day Map room, Rear Admiral Andrew Betton, Director Integrated Warfare Centre, Strategic Command completed the signing of the partnership principles already signed by Dr Tim Sheldon, Dstl Chief Delivery Officer (represented in the Map Room by Linda Knutsen, Dstl Head of Exploration).

    Rear Admiral Andrew Betton, Director Integrated Warfare Centre (Dir IWC), Strategic Command said: 

    In the spirit of ‘One Defence’, we are building a sustainable and effective Defence-wide wargaming enterprise that fosters innovation and supports the development of UK wargaming capability.

    Dir IWC, expands with: 

    This partnership between the Defence Wargaming Centre and the Defence Experimentation and Wargaming Hub has laid the critical foundation for a coherent, consistent, and efficient wargaming operation in support of MOD goals.

    This partnership is critical to the MOD’s goal of enhancing its overall wargaming capability and capacity across UK Defence. Together Strategic Command and Dstl are leading innovative ways to integrate wargaming as a key tool for decision support, experimentation, training and education, and strategic foresight.

    This collaboration sets out the shared vision of creating a unified, MOD-wide wargaming enterprise focused on delivering an efficient, effective, and sustainable wargaming structure across the MOD. Establishing a co-leadership model that ensures decisions impacting both the DEWH and DWC are made together, priorities are aligned, and demand for wargaming services are managed effectively.

    MOD Crown Copyright

    Linda Knutsen, Head of Exploration, Dstl said:

    Defence must be agile to respond to the pace of technological change and ever evolving threats.  Through wargaming, we help Defence leaders understand opportunities, threats and priorities – helping the UK and our allies maintain operational advantage.

    Rear Admiral Betton also recognised the efforts the wider team have played in the success of the wargaming partnership, stating that: 

    On behalf of Strategic Command, I would especially like to thank everyone who has been involved in this progressive journey of developing the Defence Experimentation and Wargaming Hub at Southwick Park and fostering the strong partnership with Dstl’s Defence Wargaming Centre.   Especially, the sterling efforts by Mike Larner, Head of the Defence Wargaming Centre for his nurturing leadership in facilitating this partnership.

    Mike Larner, Dstl’s Head of Defence Wargaming Centre said:

    This partnership is an exciting new chapter in the development of MOD’s wargaming capability. Bringing together the energy, expertise, facilities and networks of the DWC and DEWH will significantly enhance the already world-class UK wargaming capability.

    Captain Eugene Morgan (RN), Assistant Head Wargaming, Strategic Command said:

    “Wargaming provides a strong opportunity for collaboration across industries, government, and allies. It drives innovation and helps to build a stronger, more resilient defence capability benefiting both the MOD and the broader security community. This partnership between the Defence Wargaming Hub and Dstl will strengthen MOD’s capability and deepen the capacity to deliver robust evidence-based solutions.”

    MOD Crown Copyright

    The partnership between Strategic Command and Dstl represents a powerful commitment to strengthening the MOD’s wargaming capabilities. By working together, these two organisations ensure that wargaming becomes a core component of UK Defence strategy, helping shape preparedness and strategic foresight, ensuring resilience and readiness in an ever-changing global defence landscape.

    Updates to this page

    Published 24 October 2024

    MIL OSI United Kingdom

  • MIL-OSI United Nations: Secretary-General’s remarks to the 16th BRICS Summit [as delivered]

    Source: United Nations secretary general

    Excellencies, ladies and gentlemen,
     
    I am grateful to participate in the 16th BRICS Summit. 
     
    Collectively, your countries represent nearly half of the world’s population.
     
    And I salute your valuable commitment and support for international problem-solving as clearly reflected in your theme this year.
     
    But no single group and no single country can act alone or in isolation.
     
    It takes a community of nations, working as one global family, to address global challenges.
     
    Challenges like the rising number of conflicts.
     
    The devastation of climate change, pollution and biodiversity loss…
     
    Rising inequalities and lingering poverty and hunger…
     
    A debt crisis that threatens to smother plans for the future of many vulnerable countries… 
     
    The fact that fewer than one-fifth of the Sustainable Development Goals are on-track…
     
    A growing digital divide, and a lack of guardrails for artificial intelligence and other frontier technologies…
     
    And a lack of representation and voice for developing countries at global decision-making tables. From the Security Council to the Bretton-Woods institution and beyond. This must change.
     
    September’s Summit of the Future offered a roadmap for strengthening multilateralism, and advancing peace, sustainable development and human rights.
     
    I see four areas for action.
     
    First — finance.
     
    Today’s international financial system is not offering many vulnerable countries the safety net or level of support they need.
     
    The Pact for the Future calls for accelerating reform of the international financial architecture that is outdated, ineffective and unfair.
     
    And it includes a commitment to move forward with an SDG Stimulus to change the business model to substantially increase the lending capacity of Multilateral Development Banks to developing countries.
     
    To recycle more Special Drawing Rights…
     
    To restructure loans for countries drowning in debt…
     
    And to mobilize more international and domestic resources, public and private, for vital investments in developing countries.
     
    Next year’s Conference on Financing for Development and the Summit on Social Development are two milestones to carry these efforts forward.
     
    We must also recognize the importance of South-South cooperation.
     
    It doesn’t replace the commitments and obligations of developed countries.
     
    But it is providing a growing contribution to supporting developing countries in overcoming obstacles to reaching the SDGs. 
     
    Second — climate.
     
    Every country has committed to limit temperature rise to 1.5 degrees Celsius.
     
    That requires dramatic action to reduce emissions now — with the G20 in the lead.
     
    COP29 is just weeks away. 
     
    That starts the clock for countries to produce new Nationally Determined Contributions plans with 2035 targets that are aligned with the 1.5 degree goal.
     
    COP29 must deliver an ambitious and credible outcome on the new climate finance goal.
     
    Developed countries must also keep promises to double adaptation finance, and ensure meaningful contributions to the Loss and Damage Fund, which was not the case when it was created.
     
    Third — technology.
     
    Every country must be able to access the benefits of technology.
     
    The Global Digital Compact commits to enhanced global cooperation and capacity-building.
     
    It includes the first truly universal agreement on the international governance of Artificial Intelligence to give every country a seat at the AI table.
     
    It calls for an independent international Scientific Panel on AI and initiating a global dialogue on its governance within the United Nations with the participations of all countries.
     
    And it requests options for innovative financing for AI capacity-building in developing countries.
     
    And fourth — peace.
     
    We must strengthen and update the machinery of peace.
     
    This includes reforms to make the United Nations Security Council reflective of today’s world.
     
    The Pact for the Future includes important steps on disarmament — including the first multilateral agreement on nuclear disarmament in more than a decade — and steps that address the weaponization of outer space and the use of lethal autonomous weapons.
     
    Across the board, we need peace.
     
    We need peace in Gaza with an immediate cease-fire, the immediate and unconditional release of all hostages, the effective delivery of humanitarian aid without obstacles, and we need to make irreversible progress to end the occupation and establish the two state solution, as it was recently reaffirmed once again by a UN General Assembly resolution.
     
    We need peace in Lebanon with an immediate cessation of hostilities, moving to the full implementation of Security Council resolution 1701. 

    We need peace in Ukraine. A just peace in line with the UN Charter, international law and General Assembly resolutions.
     
    We need peace in Sudan, with all parties silencing their guns and committing to a path towards sustainable peace.
     
    Those were the messages I have delivered to the High-Level segment of the General Assembly in September in New York. Unfortunately, they remain valid here and now.
     
    Everywhere, we must uphold the values of the UN Charter, the rule of law, and the principles of sovereignty, territorial integrity and political independence of all States. 
     
    Excellencies, ladies and gentlemen,
     
    The Summit of the Future charted a course to strengthen multilateralism for global development and security.
     
    Now we must turn words into deeds and we believe BRICS can play a very important role in this direction.
     
    Thank you.

    MIL OSI United Nations News

  • MIL-OSI: TeraWulf Inc. Announces Upsize and Pricing of $425 Million Convertible Notes Offering

    Source: GlobeNewswire (MIL-OSI)

    EASTON, Md., Oct. 24, 2024 (GLOBE NEWSWIRE) — TeraWulf Inc. (Nasdaq: WULF) (“TeraWulf” or the “Company”), a leading owner and operator of vertically integrated, next-generation digital infrastructure powered by predominantly zero-carbon energy, today announced the upsize and pricing of its offering of $425 million aggregate principal amount of 2.75% Convertible Senior Notes due 2030 (the “Convertible Notes”). The Convertible Notes will be sold in a private offering to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”).

    Key Elements of the Transaction:

    • $425 million 2.75% Convertible Senior Notes offering (32.50% conversion premium)
    • Capped call transactions entered into in connection with the 2.75% Convertible Senior Notes due 2030 with an initial cap price of $12.80 per share of common stock, which represents a 100% premium to the closing sale price of TeraWulf’s common stock on October 23, 2024
    • Concurrent repurchase of approximately $115 million of common stock

    TeraWulf has granted the initial purchasers of the Convertible Notes a 13-day option to purchase up to an additional $75 million aggregate principal amount of the Convertible Notes. The offering is expected to close on October 25, 2024, subject to satisfaction of customary closing conditions. 

    Use of Proceeds:

    The Company anticipates that the aggregate net proceeds from the offering will be approximately $414.9 million (or approximately $488.1 million if the initial purchasers exercise in full their option to purchase additional notes), after deducting the initial purchasers’ discounts and commissions payable by TeraWulf. The Company intends to use approximately $51 million of the net proceeds from the offering to pay the cost of the capped call transactions (as described below), $115 million to repurchase shares of the Company’s common stock (the “common stock”), and the remainder for general corporate purposes, which may include working capital, strategic acquisitions, expansion of data center infrastructure to support HPC activities and expansion of existing assets.

    Additional Details of the Convertible Notes:

    The Convertible Notes will be senior unsecured obligations of the Company and will accrue interest at a rate of 2.75% per annum, payable semi-annually in arrears on May 1 and November 1 of each year, beginning on May 1, 2025. The Convertible Notes will mature on February 1, 2030, unless earlier repurchased, redeemed or converted in accordance with their terms. Prior to November 1, 2029, the Convertible Notes will be convertible only upon satisfaction of certain conditions and during certain periods, and thereafter, the Convertible Notes will be convertible at any time until the close of business on the second scheduled trading day immediately preceding the maturity date.

    The Convertible Notes will be convertible into cash in respect of the aggregate principal amount of the Convertible Notes to be converted and cash, shares of the common stock or a combination of cash and shares of the common stock, at the Company’s election, in respect of the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount of the Convertible Notes being converted. The conversion rate will initially be 117.9245 shares of common stock per $1,000 principal amount of Convertible Notes (equivalent to an initial conversion price of approximately $8.48 per share of the common stock). The initial conversion price of the Convertible Notes represents a premium of approximately 32.50% to the $6.40 closing price per share of the common stock on The Nasdaq Capital Market on October 23, 2024. The conversion rate will be subject to adjustment in certain circumstances. In addition, upon conversion in connection with certain corporate events or a notice of redemption, the Company will increase the conversion rate.

    The Company may not redeem the Convertible Notes prior to November 6, 2027. The Company may redeem for cash all or any portion of the Convertible Notes, at its option, on or after November 6, 2027, if the last reported sale price of the common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption to holders at a redemption price equal to 100% of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.

    Holders of the Convertible Notes will have the right to require the Company to repurchase all or a portion of their Convertible Notes upon the occurrence of a fundamental change (as defined in the indenture governing the Convertible Notes) at a cash repurchase price of 100% of their principal amount plus any accrued and unpaid interest, if any, to, but excluding the applicable repurchase date. 

    Capped Call Transactions:

    In connection with the pricing of the Convertible Notes, the Company entered into privately negotiated capped call transactions with certain financial institutions (the “option counterparties”). The cap price of the capped call transactions will initially be $12.80 per share of common stock, which represents a premium of 100% over the last reported sale price of the common stock of $6.40 per share on The Nasdaq Capital Market on October 23, 2024 and will be subject to customary anti-dilution adjustments. If the initial purchasers of the Convertible Notes exercise their option to purchase additional Convertible Notes, the Company expects to use a portion of the net proceeds from the sale of the additional Convertible Notes to enter into additional capped call transactions with the option counterparties.

    The capped call transactions are expected generally to reduce potential dilution to the common stock upon conversion of any Convertible Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted Convertible Notes, as the case may be, with such reduction and/or offset subject to a cap.

    In connection with establishing their initial hedges of the capped call transactions, the Company expects the option counterparties or their respective affiliates to purchase shares of the common stock and/or enter into various derivative transactions with respect to the common stock concurrently with or shortly after the pricing of the Convertible Notes. This activity could increase (or reduce the size of any decrease in) the market price of the common stock or the Convertible Notes at that time. In addition, the option counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to the common stock and/or purchasing or selling shares of the common stock or other securities of the Company in secondary market transactions following the pricing of the Convertible Notes and prior to the maturity of the Convertible Notes (and are likely to do so on each exercise date for the capped call transactions or following any termination of any portion of the capped call transactions in connection with any repurchase, redemption or early conversion of the Convertible Notes). This activity could also cause or avoid an increase or decrease in the market price of the common stock or the Convertible Notes, which could affect holders of the Convertible Notes’ ability to convert the Convertible Notes and, to the extent the activity occurs following conversion of the Convertible Notes or during any observation period related to a conversion of the Convertible Notes, it could affect the amount and value of the consideration that holders of the Convertible Notes will receive upon conversion of such Convertible Notes.

    Share Repurchases:

    The Company entered into transactions to repurchase approximately 17.97 million shares of the common stock for an aggregate purchase price of approximately $115 million from purchasers of the Convertible Notes in privately negotiated transactions effected concurrently with the pricing of the Convertible Notes, and the purchase price per share of the common stock repurchased in such transactions will equal the $6.40 closing price per share of the common stock on The Nasdaq Capital Market on October 23, 2024.

    The Convertible Notes and any shares of common stock issuable upon conversion of the Convertible Notes, if any, have not been registered under the Securities Act, securities laws of any other jurisdiction, and the Convertibles Notes and such shares of common stock may not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act and any applicable state securities laws. The Convertible Notes will be offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A under the Securities Act.

    This press release shall not constitute an offer to sell, or a solicitation of an offer to buy the Convertible Notes, nor shall there be any sale of the Convertible Notes or common stock in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

    About TeraWulf

    TeraWulf develops, owns, and operates environmentally sustainable, next-generation data center infrastructure in the United States, specifically designed for Bitcoin mining and high-performance computing. Led by a team of seasoned energy entrepreneurs, the Company owns and operates the Lake Mariner facility situated on the expansive site of a now retired coal plant in Western New York. Currently, TeraWulf generates revenue primarily through Bitcoin mining, leveraging predominantly zero-carbon energy sources, including nuclear and hydroelectric power. Committed to environmental, social, and governance (ESG) principles that align with its business objectives, TeraWulf aims to deliver industry-leading economics in mining and data center operations at an industrial scale.

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements include statements concerning anticipated future events and expectations that are not historical facts, such as statements concerning the terms of the notes and the capped call transactions, the completion, timing and size of the offering of the notes and the capped call transactions, and the anticipated use of proceeds from the offering (including the proposed share repurchases). All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements. In addition, forward-looking statements are typically identified by words such as “plan,” “believe,” “goal,” “target,” “aim,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict,” “should,” “would” and other similar words and expressions, although the absence of these words or expressions does not mean that a statement is not forward-looking. Forward-looking statements are based on the current expectations and beliefs of TeraWulf’s management and are inherently subject to a number of factors, risks, uncertainties and assumptions and their potential effects. There can be no assurance that future developments will be those that have been anticipated. Actual results may vary materially from those expressed or implied by forward-looking statements based on a number of factors, risks, uncertainties and assumptions, including, among others: (1) conditions in the cryptocurrency mining industry, including fluctuation in the market pricing of bitcoin and other cryptocurrencies, and the economics of cryptocurrency mining, including as to variables or factors affecting the cost, efficiency and profitability of cryptocurrency mining; (2) competition among the various providers of cryptocurrency mining services; (3) changes in applicable laws, regulations and/or permits affecting TeraWulf’s operations or the industries in which it operates, including regulation regarding power generation, cryptocurrency usage and/or cryptocurrency mining, and/or regulation regarding safety, health, environmental and other matters, which could require significant expenditures; (4) the ability to implement certain business objectives and to timely and cost-effectively execute integrated projects; (5) failure to obtain adequate financing on a timely basis and/or on acceptable terms with regard to growth strategies or operations; (6) loss of public confidence in bitcoin or other cryptocurrencies and the potential for cryptocurrency market manipulation; (7) adverse geopolitical or economic conditions, including a high inflationary environment; (8) the potential of cybercrime, money-laundering, malware infections and phishing and/or loss and interference as a result of equipment malfunction or break-down, physical disaster, data security breach, computer malfunction or sabotage (and the costs associated with any of the foregoing); (9) the availability, delivery schedule and cost of equipment necessary to maintain and grow the business and operations of TeraWulf, including mining equipment and infrastructure equipment meeting the technical or other specifications required to achieve its growth strategy; (10) employment workforce factors, including the loss of key employees; (11) litigation relating to TeraWulf and/or its business; and (12) other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”). Potential investors, stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they were made. TeraWulf does not assume any obligation to publicly update any forward-looking statement after it was made, whether as a result of new information, future events or otherwise, except as required by law or regulation. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements and the discussion of risk factors contained in the Company’s filings with the SEC, which are available at www.sec.gov.

    Investors:
    Investors@terawulf.com

    Media:
    media@terawulf.com

    The MIL Network

  • MIL-OSI: Orezone Provides Hard Rock Expansion Update for Its Bomboré Gold Mine

    Source: GlobeNewswire (MIL-OSI)

    VANCOUVER, British Columbia, Oct. 24, 2024 (GLOBE NEWSWIRE) — Orezone Gold Corporation (TSX: ORE, OTCQX: ORZCF) (“Orezone”) is pleased to provide an update on the hard rock expansion at its Bomboré Gold Mine. The hard rock expansion is forecasted to increase annual gold production to over 170,000 ounces, an approximate 50% increase from current levels, with first gold planned in Q4-2025.

    Site works are well-advanced with the plant-site area cleared and all major earthworks complete. Laydown areas have been prepared and are ready to receive construction equipment, offices, and major plant deliveries. Camp upgrades for construction supervision and teams are also now operational.

    Engineering and Procurement

    Lycopodium Minerals Canada (“Lycopodium”) was awarded the engineering and procurement contract and is ahead of schedule on both activities. Lycopodium was selected due to their successful track record of designing and constructing numerous gold plants in West Africa, including the Company’s Phase I oxide plant that is currently in operation and exceeding nameplate design.

    In terms of procurement, the Company has placed over 50% of all packages including CIL tank platework and 95% of all process equipment. This includes the purchase of a 9MW 26’ diameter SAG mill. The SAG mill is a new, pre-owned mill that was never installed and carries a full warranty by the supplier. Substantial savings in costs and schedule are being realized from the purchase of this manufactured mill. The mill shells, heads and ring gear are now being packaged for shipment later this quarter which is well ahead of schedule.

    Site Construction Activities

    The concrete installation contract was recently awarded with mobilization of the batch plant and equipment scheduled for mid-November, three months ahead of schedule.

    The tank platework supply was awarded in September, and bids for the structural steel and general platework are under evaluation and will be awarded in November.

    The main Structural, Mechanical, and Piping installation contract is expected to be awarded in Q1-2025, which again will be ahead of schedule.

    Mining Fleet and Explosives Magazine

    The first shipment of the hard rock fleet by the mining contractor, which includes new trucks and excavators, has arrived in Burkina Faso and will be transported to site in late October. This early delivery will allow for systematic training of operators well ahead of the start of hard rock mining and will facilitate more cost-effective mining of the lower transition material in the near-term. The remaining hard rock fleet will be delivered to site over the coming six to eight months.

    The explosives magazine is in the final stages of completion. Once in service, the Company will be able to purchase and store bulk explosives for mixing and preparation at site, eliminating the need for the more costly pre-mix batch deliveries. A full-service team from AECI will be on site to mix and supply the downhole explosives for blasting of transition and hard rock material.

    Patrick Downey, President & CEO stated, “I am extremely pleased with the fast progress made to date on the hard rock expansion. The team has focused on critical areas to accelerate site activities and to meet or exceed key milestones. We look forward to sharing regular updates on this important expansion.”

    Figure 1: Hard Rock Plant Area

    About Orezone Gold Corporation

    Orezone Gold Corporation (TSX: ORE OTCQX: ORZCF) is a West African gold producer engaged in mining, developing, and exploring its flagship Bomboré Gold Mine in Burkina Faso. The Bomboré mine achieved commercial production on its oxide operations on December 1, 2022, and is now focused on its staged hard rock expansion that is expected to materially increase annual and life-of-mine gold production from the processing of hard rock mineral reserves. Orezone is led by an experienced team focused on social responsibility and sustainability with a proven track record in project construction and operations, financings, capital markets and M&A.

    The technical report entitled Bomboré Phase II Expansion, Definitive Feasibility Study is available on SEDAR+ and the Company’s website.

    Patrick Downey
    President and Chief Executive Officer

    Vanessa Pickering
    Manager, Investor Relations

    Tel: 1 778 945 8977 / Toll Free: 1 888 673 0663
    info@orezone.com / www.orezone.com

    For further information please contact Orezone at +1 (778) 945 8977 or visit the Company’s website at www.orezone.com.

    The Toronto Stock Exchange neither approves nor disapproves the information contained in this news release.

    QUALIFIED PERSONS

    Dale Tweed, P. Eng., VP Engineering and Rob Henderson, P. Eng. VP Technical Services of Orezone, are Qualified Persons under NI 43-101 and have reviewed and approved the scientific and technical information contained in this news release.

    Cautionary Note Regarding Forward-Looking Statements

    This press release contains certain information that may constitute “forward-looking information” within the meaning of applicable Canadian Securities laws and “forward-looking statements” within the meaning of applicable U.S. securities laws (together, “forward-looking statements”). Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “potential”, “possible” and other similar words, or statements that certain events or conditions “may”, “will”, “could”, or “should” occur. Forward-looking statements in this press release include, but are not limited to, statements with respect to the hard rock expansion including the increase in gold production.

    All such forward-looking statements are based on certain assumptions and analyses made by management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management and the qualified persons believe are appropriate in the circumstances.

    All forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements including, but not limited to, delays caused by pandemics, terrorist or other violent attacks (including cyber security attacks), the failure of parties to contracts to honour contractual commitments, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts to perform as agreed; social or labour unrest; changes in commodity prices; unexpected failure or inadequacy of infrastructure, the possibility of unanticipated costs and expenses, accidents and equipment breakdowns, political risk, unanticipated changes in key management personnel and general economic, market or business conditions, the failure of exploration programs, including drilling programs, to deliver anticipated results and the failure of ongoing and uncertainties relating to the availability and costs of financing needed in the future, and other factors described in the Company’s most recent annual information form and management discussion and analysis filed on SEDAR+. Readers are cautioned not to place undue reliance on forward-looking statements.

    Although the forward-looking statements contained in this press release are based upon what management of the Company believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this press release.

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a33214c6-4db5-42c0-8910-83291abd3045

    The MIL Network

  • MIL-OSI: Columbia Financial, Inc. Announces Financial Results for the Third Quarter Ended September 30, 2024

    Source: GlobeNewswire (MIL-OSI)

    FAIR LAWN, N.J., Oct. 24, 2024 (GLOBE NEWSWIRE) — Columbia Financial, Inc. (the “Company”) (NASDAQ: CLBK), the mid-tier holding company for Columbia Bank (“Columbia”), reported net income of $6.2 million, or $0.06 per basic and diluted share, for the quarter ended September 30, 2024, as compared to $9.1 million, or $0.09 per basic and diluted share, for the quarter ended September 30, 2023. The income for the quarter ended September 30, 2024 reflected lower net interest income, mainly due to an increase in interest expense, and higher provision for credit losses, partially offset by higher non-interest income and lower income tax expense.

    For the nine months ended September 30, 2024, the Company reported net income of $9.6 million, or $0.09 per basic and diluted share, as compared to $29.5 million, or $0.29 per basic and diluted share, for the nine months ended September 30, 2023. Earnings for the nine months ended September 30, 2024 reflected lower net interest income, mainly due to an increase in interest expense, and higher provision for credit losses, partially offset by higher non-interest income and lower income tax expense. Non-interest income for the 2023 period included a $10.8 million loss on securities transactions.

    Mr. Thomas J. Kemly, President and Chief Executive Officer commented: “The third quarter earnings have been challenged by continuing pressure on funding costs. Our net interest margin, which has increased 9 basis points since the first quarter of 2024, and our expense management, we believe, will contribute to improved earnings on a go forward basis. The Company’s balance sheet and capital remain strong. We successfully closed the merger and performed the system conversion of Freehold Bank into Columbia Bank in October 2024. This was the final step of our fourth completed merger over the last five years.”

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

    Net income of $6.2 million was recorded for the quarter ended September 30, 2024, a decrease of $2.9 million, or 32.3%, compared to $9.1 million for the quarter ended September 30, 2023. The decrease in net income was primarily attributable to a $3.2 million decrease in net interest income, and a $1.7 million increase in provision for credit losses, partially offset by a $376,000 increase in non-interest income, and a $1.6 million decrease in income tax expense.

    Net interest income was $45.3 million for the quarter ended September 30, 2024, a decrease of $3.2 million, or 6.7%, from $48.5 million for the quarter ended September 30, 2023. The decrease in net interest income was primarily attributable to a $20.7 million increase in interest expense on deposits and borrowings, partially offset by a $17.5 million increase in interest income. The increase in interest income was primarily due to an increase in the average balance of total interest-earning assets coupled with an increase in average yields due to market interest rate increases that occurred throughout 2023, and adjustable rate securities and loans tied to various indexes that repriced higher in the 2024 period. The 50 basis point decrease in market rates in September 2024 did not significantly impact the 2024 period results. The increase in interest expense on deposits was driven by the 2023 rate increases and an increase in the average balance of interest-bearing deposits, coupled with the continued intense competition for deposits in the market and the repricing of existing deposits into higher cost products. The increase in interest expense on borrowings was also impacted by an increase in the average balance of borrowings and the increase in interest rates for new borrowings. Prepayment penalties, which are included in interest income on loans, totaled $171,000 for the quarter ended September 30, 2024, compared to $83,000 for the quarter ended September 30, 2023.

    The average yield on loans for the quarter ended September 30, 2024 increased 53 basis points to 5.00%, as compared to 4.47% for the quarter ended September 30, 2023, as interest income was influenced by rising interest rates and the average balance of loans. The average yield on securities for the quarter ended September 30, 2024 increased 53 basis points to 2.90%, as compared to 2.37% for the quarter ended September 30, 2023, as new securities purchased during the 2024 period were at higher rates. The average yield on other interest-earning assets for the quarter ended September 30, 2024 increased 81 basis points to 6.72%, as compared to 5.91% for the quarter ended September 30, 2023, due to the rise in average balances and interest rates paid on cash balances and an increase in the dividend rate paid on Federal Home Loan Bank stock.

    Total interest expense was $70.6 million for the quarter ended September 30, 2024, an increase of $20.7 million, or 41.6%, from $49.9 million for the quarter ended September 30, 2023. The increase in interest expense was primarily attributable to a 90 basis point increase in the average cost of interest-bearing deposits, coupled with an increase in the average balance of interest-bearing deposits, along with a 17 basis point increase in the average cost of borrowings, coupled with an increase in the average balance of borrowings. Interest expense on deposits increased $16.3 million, or 45.3%, and interest expense on borrowings increased $4.5 million, or 31.9%.

    The Company’s net interest margin for the quarter ended September 30, 2024 decreased 22 basis points to 1.84%, when compared to 2.06% for the quarter ended September 30, 2023. The weighted average yield on interest-earning assets increased 53 basis points to 4.70% for the quarter ended September 30, 2024, as compared to 4.17% for the quarter ended September 30, 2023. The average cost of interest-bearing liabilities increased 82 basis points to 3.52% for the quarter ended September 30, 2024, as compared to 2.70% for the quarter ended September 30, 2023. The increase in yields for the quarter ended September 30, 2024 was due to the impact of market interest rate increases in 2023. The net interest margin decreased for the quarter ended September 30, 2024, as the increase in the average cost of interest-bearing liabilities outweighed the increase in the average yield on interest-earning assets. The Company’s net interest margin for the quarter ended September 30, 2024 when compared to the quarter ended March 31, 2024 increased 9 basis points from 1.75% to 1.84%.

    The provision for credit losses for the quarter ended September 30, 2024 was $4.1 million, an increase of $1.7 million, from $2.4 million for the quarter ended September 30, 2023. The increase in provision for credit losses during the quarter was primarily attributable to net charge-offs totaling $2.7 million and an increase in the loan performance qualitative factors.

    Non-interest income was $9.0 million for the quarter ended September 30, 2024, an increase of $376,000, from $8.6 million for the quarter ended September 30, 2023. The increase was primarily attributable to an increase of $347,000 in demand deposit account fees, mainly related to commercial account treasury services.

    Non-interest expense was $42.8 million for the quarter ended September 30, 2024, a decrease of $76,000, from $42.9 million for the quarter ended September 30, 2023. The decrease was primarily attributable to a decrease in compensation and employee benefits expense of $1.0 million, partially offset by an increase in data processing fees of $666,000, and federal deposit insurance premiums of $317,000. The decrease in compensation and employee benefits expense was the result of workforce reduction and lower incentive compensation related to employee cost cutting strategies implemented during 2023 and 2024. Data processing and software expenses increased due to costs related to cybersecurity and technology enhancements, and federal deposit insurance premiums increased due to the 2024 quarter including an increase in a one-time special assessment charge.

    Income tax expense was $1.1 million for the quarter ended September 30, 2024, a decrease of $1.6 million, as compared to income tax expense of $2.7 million for the quarter ended September 30, 2023, mainly due to a decrease in pre-tax income. The Company’s effective tax rate was 15.5% and 22.9% for the quarters ended September 30, 2024 and 2023, respectively. The effective tax rate for the 2024 quarter was primarily impacted by permanent income tax differences.

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

    Net income of $9.6 million was recorded for the nine months ended September 30, 2024, a decrease of $19.9 million, or 67.6%, compared to $29.5 million for the nine months ended September 30, 2023. The decrease in net income was primarily attributable to a $29.0 million decrease in net interest income and a $7.9 million increase in provision for credit losses, partially offset by a $9.5 million increase in non-interest income and a $7.8 million decrease in income tax expense.

    Net interest income was $131.6 million for the nine months ended September 30, 2024, a decrease of $29.0 million, or 18.1%, from $160.5 million for the nine months ended September 30, 2023. The decrease in net interest income was primarily attributable to a $79.4 million increase in interest expense on deposits and borrowings, partially offset by a $50.4 million increase in interest income. The increase in interest income was primarily due to an increase in the average balance of total interest-earning assets coupled with an increase in average yields due to market interest rate increases that occurred throughout 2023, and adjustable rate securities and loans tied to various indexes that repriced higher in the 2024 period. The 50 basis point decrease in market rates in September 2024 did not significantly impact the 2024 period results. The increase in interest expense on deposits was driven by the 2023 rate increases and an increase in the average balance of interest-bearing deposits, coupled with the continued intense competition for deposits in the market and the repricing of existing deposits into higher cost products. The increase in interest expense on borrowings was also impacted by an increase in the average balance of borrowings and the increase in interest rates for new borrowings. Prepayment penalties, which are included in interest income on loans, totaled $875,000 for the nine months ended September 30, 2024, compared to $339,000 for the nine months ended September 30, 2023.

    The average yield on loans for the nine months ended September 30, 2024 increased 55 basis points to 4.91%, as compared to 4.36% for the nine months ended September 30, 2023, as interest income was influenced by higher interest rates and loan growth. The average yield on securities for the nine months ended September 30, 2024 increased 40 basis points to 2.82%, as compared to 2.42% for the nine months ended September 30, 2023, as a number of adjustable rate securities tied to various indexes repriced higher during the nine months, and new securities purchased during the 2024 period were at higher yields. The average yield on other interest-earning assets for the nine months ended September 30, 2024 increased 90 basis points to 6.35%, as compared to 5.45% for the nine months ended September 30, 2023, due to the rise in average balances and interest rates paid on cash balances and an increase in the dividend rate paid on Federal Home Loan Bank stock.

    Total interest expense was $206.2 million for the nine months ended September 30, 2024, an increase of $79.4 million, 62.5%, from $126.9 million for the nine months ended September 30, 2023. The increase in interest expense was primarily attributable to a 134 basis point increase in the average cost of interest-bearing deposits, coupled with an increase in the average balance of interest-bearing deposits, along with a 25 basis point increase in the average cost of borrowings, and an increase in the average balance of borrowings. Interest expense on deposits increased $68.7 million, or 84.1%, and interest expense on borrowings increased $10.6 million, or 23.6%.

    The Company’s net interest margin for the nine months ended September 30, 2024 decreased 47 basis points to 1.80%, when compared to 2.27% for the nine months ended September 30, 2023. The weighted average yield on interest-earning assets increased 55 basis points to 4.61% for the nine months ended September 30, 2024, as compared to 4.06% for the nine months ended September 30, 2023. The average cost of interest-bearing liabilities increased 118 basis points to 3.47% for the nine months ended September 30, 2024, as compared to 2.29% for the nine months ended September 30, 2023. The increase in yields for the nine months ended September 30, 2024 was due to the impact of market interest rate increases between periods. The net interest margin decreased for the nine months ended September 30, 2024, as the increase in the average cost of interest-bearing liabilities outweighed the increase in the average yield on interest-earning assets.

    The provision for credit losses for the nine months ended September 30, 2024 was $11.6 million, an increase of $7.9 million, from $3.6 million for the nine months ended September 30, 2023. The increase in provision for credit losses was primarily attributable to net charge-offs totaling $8.2 million and an increase in the loan performance qualitative factors.

    Non-interest income was $25.6 million for the nine months ended September 30, 2024, an increase of $9.5 million, from $16.1 million for the nine months ended September 30, 2023. The increase was primarily attributable to a decrease in the loss on securities transactions of $9.6 million.

    Non-interest expense was $134.7 million for the nine months ended September 30, 2024, an increase of $321,000, from $134.4 million for the nine months ended September 30, 2023. The increase was primarily attributable to an increase in federal deposit insurance premiums of $2.1 million, due to the 2024 period including an increase in a one-time special assessment charge. In addition, there was an increase in professional fees of $4.9 million, an increase in data processing and software expenses of $1.1 million, an increase in merger-related expense of $457,000, and an increase in other non-interest expense of $1.2 million, partially offset by a decrease in compensation and employee benefits expense of $9.5 million. Professional fees included an increase in legal, regulatory and compliance-related costs while data processing and software expenses increased due to costs related to cybersecurity and technology enhancements. The decrease in compensation and employee benefits expense was the result of workforce reduction and lower incentive compensation related to employee cost cutting strategies implemented during 2023 and 2024.

    Income tax expense was $1.3 million for the nine months ended September 30, 2024, a decrease of $7.8 million, as compared to income tax expense of $9.1 million for the nine months ended September 30, 2023, mainly due to a decrease in pre-tax income. The Company’s effective tax rate was 11.8% and 23.6% for the nine months ended September 30, 2024 and 2023, respectively. The effective tax rate for the 2024 period was also impacted by permanent income tax differences.

    Balance Sheet Summary

    Total assets increased $40.9 million, or 0.4%, to $10.7 billion at September 30, 2024 as compared to $10.6 billion at December 31, 2023. The increase in total assets was primarily attributable to an increase in debt securities available for sale of $178.9 million, and an increase in other assets of $21.3 million, partially offset by a decrease in cash and cash equivalents of $139.7 million, and a decrease in loans receivable, net, of $20.7 million.

    Cash and cash equivalents decreased $139.7 million, or 33.0%, to $283.5 million at September 30, 2024 from $423.2 million at December 31, 2023. The decrease was primarily attributable to purchases of securities of $283.5 million and repurchases of common stock under our stock repurchase program of $5.9 million, partially offset by proceeds from principal repayments on securities of $119.3 million, and repayments on loans receivable.

    Debt securities available for sale increased $178.9 million, or 16.4%, to $1.3 billion at September 30, 2024 from $1.1 billion at December 31, 2023. The increase was attributable to the purchases of debt securities available for sale of $266.9 million, consisting primarily of U.S. government obligations and mortgage-backed securities, and a decrease in gross unrealized losses on securities of $34.3 million, partially offset by repayments on securities of $107.8 million, maturities of securities of $10.0 million, and the sale of one corporate debt security with a carrying value of $4.8 million, resulting in a loss of $1.3 million.

    Loans receivable, net, decreased $20.7 million, or 0.3%, with a balance of $7.8 billion at both September 30, 2024 and December 31, 2023. One-to-four family real estate loans, multifamily loans, commercial real estate loans, and home equity loans and advances decreased $55.6 million, $10.2 million, $64.3 million, and $5.6 million, respectively, partially offset by increases in construction loans of $67.3 million and commercial business loans of $53.4 million. The allowance for credit losses for loans increased $3.4 million to $58.5 million at September 30, 2024 from $55.1 million at December 31, 2023.

    Other assets increased $21.3 million or 6.9%, to $329.7 million at September 30, 2024 compared to $308.4 million at December 31, 2023, primarily due to a $10.4 million increase in the Company’s pension plan balance, as the return on plan assets outpaced the growth in the plan’s obligations and a $12.6 million increase in the Company’s collateral posting with certain of its derivative counterparties.

    Total liabilities increased $2.1 million, or 0.02%, totaling $9.6 billion at both September 30, 2024 and December 31, 2023. The increase was primarily attributable to an increase in total deposits of $111.5 million, or 1.4%, partially offset by a decrease in borrowings of $108.1 million, or 7.1%. The increase in total deposits primarily consisted of an increase in certificates of deposit and interest-bearing demand deposits of $195.7 million, and $13.8 million, respectively, partially offset by decreases in non-interest-bearing demand deposits, money market accounts, and savings and club accounts of $31.2 million, $16.3 million, and $50.5 million, respectively. The Bank has priced select certificates of deposit accounts very competitively to the market to attract new customers. The $108.1 million decrease in borrowings was primarily driven by a net decrease in short-term borrowings of $167.8 million and repayments of $175.5 million in maturing long-term borrowings, partially offset by an increase in long-term borrowings of $235.2 million.

    Total stockholders’ equity increased $38.8 million, or 3.7%, to $1.1 billion at September 30, 2024 as compared to $1.0 billion at December 31, 2023. The increase in total stockholders’ equity was primarily attributable to net income of $9.6 million, a $5.5 million increase in stock based compensation and an increase of $27.7 million in other comprehensive income, which includes changes in unrealized losses on debt securities available for sale and unrealized gains on swap contracts, net of taxes, included in other comprehensive income. These increases were partially offset by the repurchase of 365,116 shares of common stock at a cost of approximately $5.9 million, or $16.14 per share, under our stock repurchase program. Repurchases have been paused in order to retain capital.

    Asset Quality

    The Company’s non-performing loans at September 30, 2024 totaled $28.0 million, or 0.36% of total gross loans, as compared to $12.6 million, or 0.16% of total gross loans, at December 31, 2023. The $15.4 million increase in non-performing loans was primarily attributable to an increase in non-performing one-to-four family real estate loans of $4.2 million, an increase in non-performing commercial real estate loans of $6.7 million, and an increase in non-performing commercial business loans of $4.5 million. One borrower with an outstanding $5.7 million commercial real estate loan and a related $3.5 million commercial business loan was placed on non-accrual status, representing approximately 60% of the increase in non-performing loans during the 2024 period. This borrower is a healthcare facility that was acquired by another healthcare provider in 2024. The acquiring entity has strong cash flow, has guaranteed the commercial business loan and has provided cash collateral. The Company has the first lien on the healthcare facility which has a 2024 appraised value of approximately $18.5 million along with additional collateral. One commercial real estate loan for $2.0 million secured by a medical condominium was transferred to other real estate owned in May 2024, and a related commercial business loan to the same borrower for $54,000 was charged-off during the nine months ended September 30, 2024.

    The increase in non-performing one-to-four family real estate loans was due to an increase in the number of loans from 17 non-performing loans at December 31, 2023 to 27 loans at September 30, 2024. Non-performing assets as a percentage of total assets totaled 0.28% and 0.12% at September 30, 2024 and December 31, 2023, respectively.

    For the quarter ended September 30, 2024, net charge-offs totaled $2.7 million, as compared to $1.7 million in net charge-offs recorded for the quarter ended September 30, 2023. For the nine months ended September 30, 2024, net charge-offs totaled $8.2 million, as compared to $2.3 million in net charge-offs recorded for the nine months ended September 30, 2023. Net charge-offs recorded for the nine months ended September 30, 2024 included charge-offs related to 15 commercial business loans totaling $7.7 million. The majority of these loans have continued making monthly payments, and management expects additional recoveries from these borrowers on a go forward basis.

    The Company’s allowance for credit losses on loans was $58.5 million, or 0.75% of total gross loans, at September 30, 2024, compared to $55.1 million, or 0.70% of total gross loans, at December 31, 2023.

    Additional Liquidity, Loan, and Deposit Information

    The Company services a diverse retail and commercial deposit base through its 68 branches. With approximately 215,000 accounts, the average deposit account balance was approximately $37,000 at September 30, 2024.

    Deposit balances are summarized as follows:

      At September 30, 2024   At June 30, 2024
      Balance   Weighted
    Average
    Rate
      Balance   Weighted
    Average
    Rate
      (Dollars in thousands)
                   
    Non-interest-bearing demand $ 1,406,152       %   $ 1,405,441       %
    Interest-bearing demand   1,980,298       2.41       1,904,483       2.37  
    Money market accounts   1,239,204       2.92       1,246,663       3.17  
    Savings and club deposits   649,858       0.79       673,031       0.83  
    Certificates of deposit   2,682,547       4.45       2,551,929       4.34  
    Total deposits $ 7,958,059       2.62 %   $ 7,781,547       2.56 %
                                   

    The Company continues to maintain strong liquidity and capital positions. The Company had no outstanding borrowings from the Federal Reserve Discount Window at September 30, 2024. As of September 30, 2024, the Company had immediate access to approximately $2.6 billion of funding, with additional unpledged loan collateral in excess of $1.8 billion.

    At September 30, 2024, the Company’s non-performing commercial real estate loans totaled $9.4 million, or 0.12%, of the total loans receivable loan portfolio balance.

    The following table presents multifamily real estate, owner occupied commercial real estate, and the components of investor owned commercial real estate loans included in the real estate loan portfolio.

      At September 30, 2024
      (Dollars in thousands)
      Balance   % of Gross Loans   Weighted Average
    Loan to Value Ratio
      Weighted
    Average
    Debt Service
    Coverage

    Multifamily Real Estate $ 1,399,000       17.8 %     61.0 %     1.62 x
                       
    Owner Occupied Commercial Real Estate $ 683,523       8.7 %     53.6 %     2.10 x
                       
    Investor Owned Commercial Real Estate:                  
    Retail / Shopping centers $ 484,121       6.2 %     51.7 %     1.59 x
    Mixed Use   211,853       2.7       58.1       1.61  
    Industrial / Warehouse   389,470       5.0       54.9       1.70  
    Non-Medical Office   197,768       2.5       54.2       1.64  
    Medical Office   126,947       1.6       57.9       1.50  
    Single Purpose   94,497       1.2       54.5       3.23  
    Other   124,580       1.6       52.0       1.67  
    Total $ 1,629,236       20.7 %     54.3 %     1.72 x
                       
    Total Multifamily and Commercial Real Estate Loans $ 3,711,759       47.2 %     56.7 %     1.75 x
                                   

    As of September 30, 2024, the Company had less than $1.0 million in loan exposure to office or rent stabilized multifamily loans in New York City.

    About Columbia Financial, Inc.

    The consolidated financial results include the accounts of Columbia Financial, Inc., its wholly-owned subsidiary Columbia Bank (the “Bank”) and the Bank’s wholly-owned subsidiaries. Columbia Financial, Inc. is a Delaware corporation organized as Columbia Bank’s mid-tier stock holding company. Columbia Financial, Inc. is a majority-owned subsidiary of Columbia Bank, MHC. Columbia Bank is a federally chartered savings bank headquartered in Fair Lawn, New Jersey that operates 68 full-service banking offices and offers traditional financial services to consumers and businesses in its market area.

    Forward Looking Statements

    Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “projects,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in interest rates, higher inflation and their impact on national and local economic conditions; changes in monetary and fiscal policies of the U.S. Treasury, the Board of Governors of the Federal Reserve System and other governmental entities; the impact of legal, judicial and regulatory proceedings or investigations, competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which the Company operates, including changes that adversely affect a borrowers’ ability to service and repay the Company’s loans; the effect of acts of terrorism, war or pandemics,, including on our credit quality and business operations, as well as its impact on general economic and financial market conditions; changes in the value of securities in the Company’s portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and securities; legislative changes and changes in government regulation; changes in accounting standards and practices; the risk that goodwill and intangibles recorded in the Company’s consolidated financial statements will become impaired; cyber-attacks, computer viruses and other technological risks that may breach the security of our systems and allow unauthorized access to confidential information; the inability of third party service providers to perform; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits and effectively manage liquidity; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that the Company may not be successful in the implementation of its business strategy, or its integration of acquired financial institutions and businesses, and changes in assumptions used in making such forward-looking statements which are subject to numerous risks and uncertainties, including but not limited to, those set forth in Item 1A of the Company’s Annual Report on Form 10-K and those set forth in the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, all as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, the Company’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law.

    Non-GAAP Financial Measures

    Reported amounts are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). This press release also contains certain supplemental non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results. Specifically, the Company provides measures based on what it believes are its operating earnings on a consistent basis and excludes material non-routine operating items which affect the GAAP reporting of results of operations. The Company’s management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company’s core financial results for the periods presented. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

    The Company also provides measurements and ratios based on tangible stockholders’ equity. These measures are commonly utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors.

    A reconciliation of GAAP to non-GAAP financial measures are included at the end of this press release. See “Reconciliation of GAAP to Non-GAAP Financial Measures”.

           
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Consolidated Statements of Financial Condition
    (In thousands)
           
      September 30,   December 31,
      2024
      2023
    Assets (Unaudited)    
    Cash and due from banks $ 283,391     $ 423,140  
    Short-term investments   110       109  
    Total cash and cash equivalents   283,501       423,249  
           
    Debt securities available for sale, at fair value   1,272,464       1,093,557  
    Debt securities held to maturity, at amortized cost (fair value of $367,559, and $357,177 at September 30, 2024 and December 31, 2023, respectively)   401,331       401,154  
    Equity securities, at fair value   4,504       4,079  
    Federal Home Loan Bank stock   75,847       81,022  
           
    Loans receivable   7,857,190       7,874,537  
    Less: allowance for credit losses   58,495       55,096  
    Loans receivable, net   7,798,695       7,819,441  
           
    Accrued interest receivable   41,659       39,345  
    Office properties and equipment, net   82,248       83,577  
    Bank-owned life insurance   272,970       268,362  
    Goodwill and intangible assets   121,569       123,350  
    Other real estate owned   1,974        
    Other assets   329,741       308,432  
    Total assets $ 10,686,503     $ 10,645,568  
           
    Liabilities and Stockholders’ Equity      
    Liabilities:      
    Deposits $ 7,958,059     $ 7,846,556  
    Borrowings   1,420,640       1,528,695  
    Advance payments by borrowers for taxes and insurance   42,793       43,509  
    Accrued expenses and other liabilities   185,861       186,473  
    Total liabilities   9,607,353       9,605,233  
           
    Stockholders’ equity:      
    Total stockholders’ equity   1,079,150       1,040,335  
    Total liabilities and stockholders’ equity $ 10,686,503     $ 10,645,568  
                   
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Consolidated Statements of Income
    (In thousands, except per share data)
           
      Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
      2024   2023   2024   2023
    Interest income: (Unaudited)   (Unaudited)
    Loans receivable $ 97,863     $ 87,548     $ 286,064     $ 252,026  
    Debt securities available for sale and equity securities   9,592       6,147       26,618       21,043  
    Debt securities held to maturity   2,616       2,434       7,487       7,338  
    Federal funds and interest-earning deposits   3,850       747       11,872       3,360  
    Federal Home Loan Bank stock dividends   1,966       1,529       5,759       3,661  
    Total interest income   115,887       98,405       337,800       287,428  
    Interest expense:              
    Deposits   52,196       35,918       150,440       81,733  
    Borrowings   18,416       13,965       55,805       45,158  
    Total interest expense   70,612       49,883       206,245       126,891  
                   
    Net interest income   45,275       48,522       131,555       160,537  
                   
    Provision for credit losses   4,103       2,379       11,575       3,632  
                   
    Net interest income after provision for credit losses   41,172       46,143       119,980       156,905  
                   
    Non-interest income:              
    Demand deposit account fees   1,695       1,348       4,698       3,815  
    Bank-owned life insurance   1,669       2,014       5,253       5,670  
    Title insurance fees   688       629       1,935       1,840  
    Loan fees and service charges   951       969       3,290       3,366  
    Loss on securities transactions               (1,256 )     (10,847 )
    Change in fair value of equity securities   (27 )     (81 )     425       249  
    Gain on sale of loans   459       397       825       1,060  
    Other non-interest income   3,543       3,326       10,440       10,977  
    Total non-interest income   8,978       8,602       25,610       16,130  
                   
    Non-interest expense:              
    Compensation and employee benefits   27,738       28,765       82,910       92,383  
    Occupancy   5,594       5,845       17,621       17,337  
    Federal deposit insurance premiums   1,518       1,201       5,752       3,624  
    Advertising   766       834       2,053       2,307  
    Professional fees   2,454       2,490       11,597       6,741  
    Data processing and software expenses   4,125       3,459       12,006       10,885  
    Merger-related expenses   23       14       737       280  
    Other non-interest expense, net   616       302       2,063       861  
    Total non-interest expense   42,834       42,910       134,739       134,418  
                   
    Income before income tax expense   7,316       11,835       10,851       38,617  
                   
    Income tax expense   1,131       2,705       1,281       9,100  
                   
    Net income $ 6,185     $ 9,130     $ 9,570     $ 29,517  
                   
    Earnings per share-basic $ 0.06     $ 0.09     $ 0.09     $ 0.29  
    Earnings per share-diluted $ 0.06     $ 0.09     $ 0.09     $ 0.29  
    Weighted average shares outstanding-basic   101,623,160       101,968,294       101,673,619       102,993,215  
    Weighted average shares outstanding-diluted   101,832,048       102,097,491       101,813,253       103,257,616  
                                   
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Average Balances/Yields
       
      For the Three Months Ended September 30,
      2024   2023
      Average
    Balance
      Interest
    and
    Dividends
      Yield / Cost   Average
    Balance
      Interest
    and
    Dividends
      Yield / Cost
      (Dollars in thousands)
    Interest-earnings assets:                      
    Loans $ 7,791,131     $ 97,863       5.00 %   $ 7,763,368     $ 87,548       4.47 %
    Securities   1,676,781       12,208       2.90 %     1,437,944       8,581       2.37 %
    Other interest-earning assets   344,560       5,816       6.72 %     152,900       2,276       5.91 %
    Total interest-earning assets   9,812,472       115,887       4.70 %     9,354,212       98,405       4.17 %
    Non-interest-earning assets   870,155               844,884          
    Total assets $ 10,682,627             $ 10,199,096          
                           
    Interest-bearing liabilities:                      
    Interest-bearing demand $ 1,970,444     $ 14,581       2.94 %   $ 2,054,464     $ 10,274       1.98 %
    Money market accounts   1,250,676       8,256       2.63 %     1,049,277       7,763       2.94 %
    Savings and club deposits   658,628       1,313       0.79 %     758,999       691       0.36 %
    Certificates of deposit   2,589,190       28,046       4.31 %     2,296,573       17,190       2.97 %
    Total interest-bearing deposits   6,468,938       52,196       3.21 %     6,159,313       35,918       2.31 %
    FHLB advances   1,497,580       18,249       4.85 %     1,142,484       13,508       4.69 %
    Notes payable               %     29,925       297       3.94 %
    Junior subordinated debentures   7,028       164       9.28 %     7,315       160       8.68 %
    Other borrowings   217       3       5.50 %                 %
    Total borrowings   1,504,825       18,416       4.87 %     1,179,724       13,965       4.70 %
    Total interest-bearing liabilities   7,973,763     $ 70,612       3.52 %     7,339,037     $ 49,883       2.70 %
                           
    Non-interest-bearing liabilities:                      
    Non-interest-bearing deposits   1,411,622               1,498,726          
    Other non-interest-bearing liabilities   235,990               241,463          
    Total liabilities   9,621,375               9,079,226          
    Total stockholders’ equity   1,061,252               1,119,870          
    Total liabilities and stockholders’ equity $ 10,682,627             $ 10,199,096          
                           
    Net interest income     $ 45,275             $ 48,522      
    Interest rate spread           1.18 %             1.47 %
    Net interest-earning assets $ 1,838,709             $ 2,015,175          
    Net interest margin           1.84 %             2.06 %
    Ratio of interest-earning assets to interest-bearing liabilities   123.06 %             127.46 %        
                                   
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Average Balances/Yields
       
      For the Nine Months Ended September 30,
      2024   2023
      Average
    Balance
      Interest
    and
    Dividends
      Yield / Cost   Average
    Balance
      Interest
    and
    Dividends
      Yield / Cost
      (Dollars in thousands)
    Interest-earnings assets:                      
    Loans $ 7,789,356     $ 286,064       4.91 %   $ 7,725,121     $ 252,026       4.36 %
    Securities   1,618,319       34,105       2.82 %     1,569,999       28,381       2.42 %
    Other interest-earning assets   370,749       17,631       6.35 %     172,151       7,021       5.45 %
    Total interest-earning assets   9,778,424       337,800       4.61 %     9,467,271       287,428       4.06 %
    Non-interest-earning assets   864,036               835,459          
    Total assets $ 10,642,460             $ 10,302,730          
                           
    Interest-bearing liabilities:                      
    Interest-bearing demand $ 1,972,520     $ 41,673       2.82 %   $ 2,244,978     $ 25,465       1.52 %
    Money market accounts   1,235,520       25,349       2.74 %     894,520       15,334       2.29 %
    Savings and club deposits   673,930       3,920       0.78 %     819,804       1,384       0.23 %
    Certificates of deposit   2,550,634       79,498       4.16 %     2,165,778       39,550       2.44 %
    Total interest-bearing deposits   6,432,604       150,440       3.12 %     6,125,080       81,733       1.78 %
    FHLB advances   1,507,045       55,316       4.90 %     1,254,637       43,806       4.67 %
    Notes payable               %     30,148       895       3.97 %
    Junior subordinated debentures   7,023       486       9.24 %     7,377       457       8.28 %
    Other borrowings   73       3       5.49 %                 %
    Total borrowings   1,514,141       55,805       4.92 %     1,292,162       45,158       4.67 %
    Total interest-bearing liabilities   7,946,745     $ 206,245       3.47 %     7,417,242     $ 126,891       2.29 %
                           
    Non-interest-bearing liabilities:                      
    Non-interest-bearing deposits   1,406,666               1,572,497          
    Other non-interest-bearing liabilities   243,848               225,629          
    Total liabilities   9,597,259               9,215,368          
    Total stockholders’ equity   1,045,201               1,087,362          
    Total liabilities and stockholders’ equity $ 10,642,460             $ 10,302,730          
                           
    Net interest income     $ 131,555             $ 160,537      
    Interest rate spread           1.15 %             1.77 %
    Net interest-earning assets $ 1,831,679             $ 2,050,029          
    Net interest margin           1.80 %             2.27 %
    Ratio of interest-earning assets to interest-bearing liabilities   123.05 %             127.64 %        
                                   
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Components of Net Interest Rate Spread and Margin
       
      Average Yields/Costs by Quarter
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Yield on interest-earning assets:                  
    Loans   5.00 %     4.93 %     4.79 %     4.66 %     4.47 %
    Securities   2.90       2.89       2.65       2.58       2.37  
    Other interest-earning assets   6.72       6.30       6.06       5.64       5.91  
    Total interest-earning assets   4.70 %     4.64 %     4.50 %     4.39 %     4.17 %
                       
    Cost of interest-bearing liabilities:                  
    Total interest-bearing deposits   3.21 %     3.14 %     3.02 %     2.76 %     2.31 %
    Total borrowings   4.87       4.92       4.98       4.96       4.70  
    Total interest-bearing liabilities   3.52 %     3.49 %     3.38 %     3.18 %     2.70 %
                       
    Interest rate spread   1.18 %     1.15 %     1.12 %     1.21 %     1.47 %
    Net interest margin   1.84 %     1.81 %     1.75 %     1.85 %     2.06 %
                       
    Ratio of interest-earning assets to interest-bearing liabilities   123.06 %     123.03 %     123.06 %     125.32 %     127.46 %
                                           
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Selected Financial Highlights
       
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    SELECTED FINANCIAL RATIOS (1):                  
    Return on average assets   0.23 %     0.17 %     (0.04 )%     0.25 %     0.36 %
    Core return on average assets   0.23 %     0.20 %     0.02 %     0.38 %     0.36 %
    Return on average equity   2.32 %     1.77 %     (0.45 )%     2.31 %     3.23 %
    Core return on average equity   2.29 %     2.06 %     0.18 %     3.55 %     3.24 %
    Core return on average tangible equity   2.58 %     2.34 %     0.20 %     3.99 %     3.64 %
    Interest rate spread   1.18 %     1.15 %     1.12 %     1.21 %     1.47 %
    Net interest margin   1.84 %     1.81 %     1.75 %     1.85 %     2.06 %
    Non-interest income to average assets   0.33 %     0.35 %     0.28 %     0.42 %     0.33 %
    Non-interest expense to average assets   1.60 %     1.74 %     1.74 %     1.80 %     1.67 %
    Efficiency ratio   78.95 %     86.83 %     91.96 %     84.82 %     75.12 %
    Core efficiency ratio   79.14 %     85.34 %     88.39 %     76.93 %     75.09 %
    Average interest-earning assets to average interest-bearing liabilities   123.06 %     123.03 %     123.06 %     125.32 %     127.46 %
    Net charge-offs to average outstanding loans   0.14 %     0.03 %     0.26 %     0.01 %     0.09 %
                       
    (1) Ratios are annualized when appropriate.
     
    ASSET QUALITY DATA:  
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
      (Dollars in thousands)
                       
    Non-accrual loans $ 28,014     $ 25,281     $ 22,935     $ 12,618     $ 15,150  
    90+ and still accruing                            
    Non-performing loans   28,014       25,281       22,935       12,618       15,150  
    Real estate owned   1,974       1,974                    
    Total non-performing assets $ 29,988     $ 27,255     $ 22,935     $ 12,618     $ 15,150  
                       
    Non-performing loans to total gross loans   0.36 %     0.33 %     0.30 %     0.16 %     0.19 %
    Non-performing assets to total assets   0.28 %     0.25 %     0.22 %     0.12 %     0.15 %
    Allowance for credit losses on loans (“ACL”) $ 58,495     $ 57,062     $ 55,401     $ 55,096     $ 54,113  
    ACL to total non-performing loans   208.81 %     225.71 %     241.56 %     436.65 %     357.18 %
    ACL to gross loans   0.75 %     0.73 %     0.71 %     0.70 %     0.69 %
                                           
    LOAN DATA:  
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
      (In thousands)
    Real estate loans:          
    One-to-four family $ 2,737,190     $ 2,764,177     $ 2,778,932     $ 2,792,833     $ 2,791,939  
    Multifamily   1,399,000       1,409,316       1,429,369       1,409,187       1,417,233  
    Commercial real estate   2,312,759       2,316,252       2,318,178       2,377,077       2,374,488  
    Construction   510,439       462,880       437,566       443,094       390,940  
    Commercial business loans   586,447       554,768       538,260       533,041       546,750  
    Consumer loans:                  
    Home equity loans and advances   261,041       260,427       260,786       266,632       267,016  
    Other consumer loans   2,877       2,689       2,601       2,801       2,586  
    Total gross loans   7,809,753       7,770,509       7,765,692       7,824,665       7,790,952  
    Purchased credit deteriorated loans   11,795       12,150       14,945       15,089       15,228  
    Net deferred loan costs, fees and purchased premiums and discounts   35,642       36,352       34,992       34,783       34,360  
    Allowance for credit losses   (58,495 )     (57,062 )     (55,401 )     (55,096 )     (54,113 )
    Loans receivable, net $ 7,798,695     $ 7,761,949     $ 7,760,228     $ 7,819,441     $ 7,786,427  
                                           
    CAPITAL RATIOS:      
      September 30,   December 31,
      2024 (1)   2023
    Company:      
    Total capital (to risk-weighted assets)   14.37 %     14.08 %
    Tier 1 capital (to risk-weighted assets)   13.59 %     13.32 %
    Common equity tier 1 capital (to risk-weighted assets)   13.50 %     13.23 %
    Tier 1 capital (to adjusted total assets)   10.16 %     10.04 %
           
    Columbia Bank:      
    Total capital (to risk-weighted assets)   14.44 %     14.02 %
    Tier 1 capital (to risk-weighted assets)   13.61 %     13.22 %
    Common equity tier 1 capital (to risk-weighted assets)   13.61 %     13.22 %
    Tier 1 capital (to adjusted total assets)   9.62 %     9.48 %
           
    Freehold Bank:      
    Total capital (to risk-weighted assets)   25.98 %     22.49 %
    Tier 1 capital (to risk-weighted assets)   25.41 %     21.81 %
    Common equity tier 1 capital (to risk-weighted assets)   25.41 %     21.81 %
    Tier 1 capital (to adjusted total assets)   16.63 %     15.27 %
           
    (1) Estimated ratios at September 30, 2024
           
    Reconciliation of GAAP to Non-GAAP Financial Measures
           
    Book and Tangible Book Value per Share
      September 30,   December 31,
      2024   2023
      (Dollars in thousands)
       
    Total stockholders’ equity $ 1,079,150     $ 1,040,335  
    Less: goodwill   (110,715 )     (110,715 )
    Less: core deposit intangible   (9,496 )     (11,155 )
    Total tangible stockholders’ equity $ 958,939     $ 918,465  
           
    Shares outstanding   104,725,436       104,918,905  
           
    Book value per share $ 10.30     $ 9.92  
    Tangible book value per share $ 9.16     $ 8.75  
                   
    Reconciliation of Core Net Income              
      Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
      2024   2023
      2024
      2023
      (In thousands)
                   
    Net income $ 6,185     $ 9,130     $ 9,570     $ 29,517  
    Add: loss on securities transactions, net of tax               1,130       9,249  
    Less/add: FDIC special assessment, net of tax   (107 )           385        
    Add: severance expense from reduction in workforce, net of tax               67       1,390  
    Add: merger-related expenses, net of tax   19       11       691       241  
    Add: litigation expenses, net of tax                     262  
    Core net income $ 6,097     $ 9,141     $ 11,843     $ 40,659  
                                   
    Return on Average Assets              
      Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
      2024   2023   2024   2023
      (Dollars in thousands)
                   
    Net income $ 6,185     $ 9,130     $ 9,570     $ 29,517  
                   
    Average assets $ 10,682,627     $ 10,199,096     $ 10,642,460     $ 10,302,730  
                   
    Return on average assets   0.23 %     0.36 %     0.12 %     0.38 %
                   
    Core net income $ 6,097     $ 9,141     $ 11,843     $ 40,659  
                   
    Core return on average assets   0.23 %     0.36 %     0.15 %     0.53 %
                                   
    Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
                   
    Return on Average Equity              
      Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
      2024   2023   2024   2023
      (Dollars in thousands)
                   
    Total average stockholders’ equity $ 1,061,252     $ 1,119,870     $ 1,045,201     $ 1,087,362  
    Add: loss on securities transactions, net of tax               1,130       9,249  
    Less/add: FDIC special assessment, net of tax   (107 )           385        
    Add: severance expense from reduction in workforce, net of tax               67       1,390  
    Add: merger-related expenses, net of tax   19       11       691       241  
    Add: litigation expenses, net of tax                     262  
    Core average stockholders’ equity $ 1,061,164     $ 1,119,881     $ 1,047,474     $ 1,098,504  
                   
    Return on average equity   2.32 %     3.23 %     1.22 %     3.63 %
                   
    Core return on core average equity   2.29 %     3.24 %     1.51 %     4.95 %
                                   
    Return on Average Tangible Equity        
      Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
      2024   2023   2024   2023
      (Dollars in thousands)
                   
    Total average stockholders’ equity $ 1,061,252     $ 1,119,870     $ 1,045,201     $ 1,087,362  
    Less: average goodwill   (110,715 )     (110,715 )     (110,715 )     (110,715 )
    Less: average core deposit intangible   (9,842 )     (12,109 )     (10,391 )     (12,989 )
    Total average tangible stockholders’ equity $ 940,695     $ 997,046     $ 924,095     $ 963,658  
                   
    Core return on average tangible equity   2.58 %     3.64 %     1.71 %     5.64 %
                                   
    Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
                   
    Efficiency Ratios              
      Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
      2024   2023   2024   2023
      (Dollars in thousands)
                   
    Net interest income $ 45,275     $ 48,522     $ 131,555     $ 160,537  
    Non-interest income   8,978       8,602       25,610       16,130  
    Total income $ 54,253     $ 57,124     $ 157,165     $ 176,667  
                   
    Non-interest expense $ 42,834     $ 42,910     $ 134,739     $ 134,418  
                   
    Efficiency ratio   78.95 %     75.12 %     85.73 %     76.09 %
                   
    Non-interest income $ 8,978     $ 8,602     $ 25,610     $ 16,130  
    Add: loss on securities transactions               1,256       10,847  
    Core non-interest income $ 8,978     $ 8,602     $ 26,866     $ 26,977  
                   
    Non-interest expense $ 42,834     $ 42,910     $ 134,739     $ 134,418  
    Add/less: FDIC special assessment, net   126             (439 )      
    Less: severance expense from reduction in workforce               (74 )     (1,605 )
    Less: merger-related expenses   (23 )     (14 )     (737 )     (280 )
    Less: litigation expenses                     (317 )
    Core non-interest expense $ 42,937     $ 42,896     $ 133,489     $ 132,216  
                   
    Core efficiency ratio   79.14 %     75.09 %     84.26 %     70.51 %
                                   

    Columbia Financial, Inc.
    Investor Relations Department
    (833) 550-0717

    The MIL Network

  • MIL-OSI: Independent Bank Corporation Reports 2024 Third Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    Third Quarter Highlights

    Highlights for the third quarter of 2024 include:

    • Increases in net interest income of $0.5 million (or 4.9% annualized) from June 30, 2024;
    • An increase in tangible book value per share of $3.69 (22.3%) over the third quarter of 2023;
    • Net growth in core deposits of $100.1 million (or 8.9% annualized) from June 30, 2024;
    • Net growth in loans of $90.4 million (or 9.3% annualized) from June 30, 2024; and
    • The payment of a 24 cent per share dividend on common stock on August 15, 2024.

    GRAND RAPIDS, Mich., Oct. 24, 2024 (GLOBE NEWSWIRE) — Independent Bank Corporation (NASDAQ: IBCP) reported third quarter 2024 net income of $13.8 million, or $0.65 per diluted share, versus net income of $17.5 million, or $0.83 per diluted share, in the prior-year period.

    William B. (“Brad”) Kessel, the President and Chief Executive Officer of Independent Bank Corporation, commented: “I am proud of our team and very pleased with our third quarter 2024 results, driving organic growth on both sides of the balance sheet. Overall loans increased 9.3% (annualized), while core deposits are up 8.9% (annualized). We were able to generate net interest income growth on both a linked quarter basis and on a year over year quarterly basis. We believe that our expenses continue to be well managed, and we continue to see improved operational scale from strategic investments we have made in recent years. Our credit metrics continue to be excellent, with watch credits and non-performing assets near historic lows. These fundamentals continue to drive good growth in tangible book value per share (22%) compared to the prior year quarter. Based on a robust commercial loan pipeline, the past record of our core group of professionals and the on-going strategic initiative to add talented bankers to our team, we are optimistic about continuing these growth trends for the remainder of the year and into 2025.”

    Significant items impacting comparable third quarter 2024 and 2023 results include the following:

    • Changes in the fair value due to price of capitalized mortgage loan servicing rights (the “MSR Changes”) of  $(4.2) million ($(0.16) per diluted share, after taxes) for the three-month period ended September 30, 2024, as compared to $1.6 million ($0.06 per diluted share, after taxes) for the three-months ended September 30, 2023.

    Operating Results

    The Company’s net interest income totaled $41.9 million during the third quarter of 2024, an increase of $2.4 million, or 6.2% from the year-ago period, and an increase of $0.5 million, or 1.2%, from the second quarter of 2024. The Company’s tax equivalent net interest income as a percent of average interest-earning assets (the “net interest margin”) was 3.37% during the third quarter of 2024, compared to 3.23% in the year-ago period, and 3.40% in the second quarter of 2024. The year-over-year quarterly increase in net interest income was due to an increase in average interest-earning assets and the net interest margin. The increase in net interest income compared to the linked quarter was due to an increase in average interest earning assets that was partially offset by a decrease in the net interest margin. Average interest-earning assets were $4.99 billion in the third quarter of 2024, compared to $4.89 billion in the year ago quarter and $4.89 billion in the second quarter of 2024.

    Non-interest income totaled $9.5 million for the third quarter of 2024, compared to $15.6 million in the comparable prior year period. This change was primarily due to variances in mortgage banking related revenues.

    Net gains on mortgage loans in the third quarters of 2024 and 2023, were approximately $2.2 million and $2.1 million, respectively. The comparative quarterly increase in net gains on mortgage loans was primarily due to an increase in both gain on sale margin on mortgage loans sold and a increase in the volume of mortgage loans sold.

    Mortgage loan servicing, net, generated income (expense) of $(3.1) million and $2.7 million in the third quarters of 2024 and 2023, respectively. The significant variance in mortgage loan servicing, net is primarily due to changes in the fair value of capitalized mortgage loan servicing rights associated with changes in interest rates and the associated expected future prepayment levels and expected float rates. Mortgage loan servicing, net activity is summarized in the following table:

      Three months ended   Nine months ended
      9/30/2024   9/30/2023   9/30/2024   9/30/2023
      (In thousands)
    Mortgage loan servicing, net:              
    Revenue, net $ 2,248     $ 2,197     $ 6,681     $ 6,612  
    Fair value change due to price   (4,155 )     1,556       (1,979 )     3,364  
    Fair value change due to pay-downs   (1,223 )     (1,085 )     (3,016 )     (2,908 )
    Total $ (3,130 )   $ 2,668     $ 1,686     $ 7,068  
     

    Non-interest expenses totaled $32.6 million in the third quarter of 2024, compared to $32.0 million in the year-ago period.

    The Company recorded income tax expense of $3.5 million in the third quarter of 2024. This compares to an income tax expense of $4.1 million in the third quarter of 2023. The changes in income tax expense principally reflect changes in pre-tax earnings in 2024 relative to 2023.

    Asset Quality

    A breakdown of non-performing loans by loan type is as follows:

      9/30/2024   12/31/2023   9/30/2023
    Loan Type (Dollars in thousands)
    Commercial $ 59     $ 28     $ 31  
    Mortgage   6,525       6,425       6,137  
    Installment   666       970       801  
    Sub total   7,250       7,423       6,969  
    Less – government guaranteed loans   2,102       2,191       2,254  
    Total non-performing loans $ 5,148     $ 5,232     $ 4,715  
    Ratio of non-performing loans to total portfolio loans   0.13 %     0.14 %     0.13 %
    Ratio of non-performing assets to total assets   0.11 %     0.11 %     0.10 %
    Ratio of allowance for credit losses to total non-performing loans   1115.85 %     1044.69 %     1176.99 %
                           

    The provision for credit losses was an expense of $1.49 million and $1.35 million in the third quarters of 2024 and 2023, respectively. We recorded loan net charge offs (recoveries) of $0.31 million and $(0.18) million in the third quarters of 2024 and 2023, respectively. At September 30, 2024, the allowance for credit losses for loans totaled $57.4 million, or 1.46% of total portfolio loans compared to $54.7 million, or 1.44% of total portfolio loans at December 31, 2023.

    Balance Sheet, Capital and Liquidity

    Total assets were $5.26 billion at September 30, 2024, a decrease of $4.5 million from December 31, 2023. Loans, excluding loans held for sale, were $3.94 billion at September 30, 2024, compared to $3.79 billion at December 31, 2023.  Deposits totaled $4.63 billion at September 30, 2024, an increase of $4.0 million from December 31, 2023. This increase is primarily due to increases in savings and interest-bearing checking, reciprocal and time deposits that were partially offset by a decrease in non-interest bearings deposits and brokered time deposits.

    Cash and cash equivalents totaled $121.6 million at September 30, 2024, versus $169.8 million at December 31, 2023. Securities available for sale (“AFS”) totaled $589.0 million at September 30, 2024, versus $679.4 million at December 31, 2023.

    Total shareholders’ equity was $452.4 million at September 30, 2024, or 8.60% of total assets compared to $404.4 million or 7.68% at December 31, 2023. Tangible common equity totaled $422.5 million at September 30, 2024, or $20.22 per share compared to $374.1 million or $17.96 per share at December 31, 2023. The increase in shareholder equity as well as tangible common equity are primarily the result of earnings retention and a decrease in accumulated other comprehensive loss.

    The Company’s wholly owned subsidiary, Independent Bank, remains significantly above “well capitalized” for regulatory purposes with the following ratios:

    Regulatory Capital Ratios 9/30/2024   12/31/2023   Well
    Capitalized
    Minimum
               
    Tier 1 capital to average total assets   9.36 %     8.80 %     5.00 %
    Tier 1 common equity  to risk-weighted assets   11.74 %     11.21 %     6.50 %
    Tier 1 capital to risk-weighted assets   11.74 %     11.21 %     8.00 %
    Total capital to risk-weighted assets   13.00 %     12.46 %     10.00 %
                           

    At September 30, 2024, in addition to liquidity available from our normal operating, funding, and investing activities, we had unused credit lines with the FHLB and FRB of approximately $1.11 billion and $471.7 million, respectively. We also had approximately $771.3 million in fair value of unpledged securities AFS and HTM at September 30, 2024 which could be pledged for an estimated additional borrowing capacity at the FHLB and FRB of approximately $718.0 million.

    Share Repurchase Plan

    On December 19, 2023, the Board of Directors of the Company authorized the 2024 share repurchase plan. Under the terms of the 2024 share repurchase plan, the Company is authorized to purchase up to 1,100,000 shares, or approximately 5% of its then outstanding common stock. The repurchase plan is authorized to last through December 31, 2024. The Company did not repurchase any shares of common stock during the first nine months of 2024.

    Earnings Conference Call

    Brad Kessel, President and CEO, Gavin Mohr, CFO and Joel Rahn, EVP – Commercial Banking will review the quarterly results in a conference call for investors and analysts beginning at 11:00 am ET on Thursday, October 24, 2024.

    To participate in the live conference call, please dial 1-833-470-1428 (Access Code # 957797). Also, the conference call will be accessible through an audio webcast with user-controlled slides via the following site/URL: https://events.q4inc.com/attendee/824908063.

    A playback of the call can be accessed by dialing 1-866-813-9403 (Access Code # 159381). The replay will be available through October 31, 2024.

    About Independent Bank Corporation

    Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with total assets of approximately $5.3 billion. Founded as First National Bank of Ionia in 1864, Independent Bank Corporation operates a branch network across Michigan’s Lower Peninsula through one state-chartered bank subsidiary. This subsidiary (Independent Bank) provides a full range of financial services, including commercial banking, mortgage lending, consumer banking, investments and insurance. Independent Bank Corporation is committed to providing exceptional personal service and value to its customers, stockholders and the communities it serves.

    For more information, please visit our Web site at: IndependentBank.com.

    Forward-Looking Statements
    This presentation contains forward-looking statements, which are any statements or information that are not historical facts. These forward-looking statements include statements about our anticipated future revenue and expenses and our future plans and prospects.

    Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. For example, deterioration in general business and economic conditions or turbulence in domestic or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding to us, lead to a tightening of credit, and increase stock price volatility. Our results could also be adversely affected by changes in interest rates; increases in unemployment rates; deterioration in the credit quality of our loan portfolios or in the value of the collateral securing those loans; deterioration in the value of our investment securities; legal and regulatory developments; changes in customer behavior and preferences; breaches in data security; and management’s ability to effectively manage the multitude of risks facing our business. Key risk factors that could affect our future results are described in more detail in our Annual Report on Form 10-K for the year ended December 31, 2023 and the other reports we file with the SEC, including under the heading “Risk Factors.” Investors should not place undue reliance on forward-looking statements as a prediction of our future results.

    Any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.

    INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
    Consolidated Statements of Financial Condition
     
      September 30, 2024   December 31, 2023
      (Unaudited)
      (In thousands, except share
    amounts)
    Assets      
    Cash and due from banks $ 61,503     $ 68,208  
    Interest bearing deposits   60,057       101,573  
    Cash and Cash Equivalents   121,560       169,781  
    Securities available for sale   588,950       679,350  
    Securities held to maturity (fair value of $314,638 at September 30, 2024 and $318,606 at December 31, 2023)   343,362       353,988  
    Federal Home Loan Bank and Federal Reserve Bank stock, at cost   16,099       16,821  
    Loans held for sale, carried at fair value   14,029       12,063  
    Loans      
    Commercial   1,825,247       1,679,731  
    Mortgage   1,511,400       1,485,872  
    Installment   605,640       625,298  
    Total Loans   3,942,287       3,790,901  
    Allowance for credit losses   (57,444 )     (54,658 )
    Net Loans   3,884,843       3,736,243  
    Other real estate and repossessed assets, net   781       569  
    Property and equipment, net   35,250       35,523  
    Bank-owned life insurance   54,017       54,341  
    Capitalized mortgage loan servicing rights, carried at fair value   40,204       42,243  
    Other intangibles   1,617       2,004  
    Goodwill   28,300       28,300  
    Accrued income and other assets   130,256       132,500  
    Total Assets $ 5,259,268     $ 5,263,726  
    Liabilities and Shareholders’ Equity      
    Deposits      
    Non-interest bearing $ 1,023,739     $ 1,076,093  
    Savings and interest-bearing checking   1,947,571       1,905,701  
    Reciprocal   995,469       832,020  
    Time   620,446       524,325  
    Brokered time   39,650       284,740  
    Total Deposits   4,626,875       4,622,879  
    Other borrowings         50,026  
    Subordinated debt   39,567       39,510  
    Subordinated debentures   39,779       39,728  
    Accrued expenses and other liabilities   100,678       107,134  
    Total Liabilities   4,806,899       4,859,277  
           
    Shareholders’ Equity      
    Preferred stock, no par value, 200,000 shares authorized; none issued or outstanding          
    Common stock, no par value, 500,000,000 shares authorized; issued and outstanding: 20,893,800 shares at September 30, 2024 and 20,835,633 shares at December 31, 2023   318,216       317,483  
    Retained earnings   192,405       159,108  
    Accumulated other comprehensive loss   (58,252 )     (72,142 )
    Total Shareholders’ Equity   452,369       404,449  
    Total Liabilities and Shareholders’ Equity $ 5,259,268     $ 5,263,726  
    INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
    Consolidated Statements of Operations
     
      Three Months Ended   Nine Months Ended
      September 30,   June 30,   September 30,   September 30,
      2024   2024   2023   2024   2023
      (Unaudited)
      (In thousands, except per share amounts)
    Interest Income                                      
    Interest and fees on loans $ 58,410     $ 56,786     $ 51,419     $ 170,239     $ 143,392  
    Interest on securities                  
    Taxable   4,502       4,713       5,865       14,466       17,668  
    Tax-exempt   3,404       3,400       3,409       10,195       9,775  
    Other investments   2,018       1,439       1,739       4,898       3,481  
    Total Interest Income   68,334       66,338       62,432       199,798       174,316  
    Interest Expense                  
    Deposits   24,462       22,876       20,743       70,148       51,964  
    Other borrowings and subordinated debt and debentures   2,018       2,116       2,262       6,253       6,134  
    Total Interest Expense   26,480       24,992       23,005       76,401       58,098  
    Net Interest Income   41,854       41,346       39,427       123,397       116,218  
    Provision for credit losses   1,488       19       1,350       2,251       6,827  
    Net Interest Income After Provision for Credit Losses   40,366       41,327       38,077       121,146       109,391  
    Non-interest Income                  
    Interchange income   4,146       3,401       4,100       10,698       10,660  
    Service charges on deposit accounts   3,085       2,937       3,309       8,894       9,300  
    Net gains (losses) on assets                  
    Mortgage loans   2,177       1,333       2,099       4,874       5,475  
    Equity securities at fair value   (8 )     2,693             2,685        
    Securities available for sale   (145 )                 (414 )     (222 )
    Mortgage loan servicing, net   (3,130 )     2,091       2,668       1,686       7,068  
    Other   3,383       2,717       3,435       8,818       9,298  
    Total Non-interest Income   9,508       15,172       15,611       37,241       41,579  
    Non-interest Expense                  
    Compensation and employee benefits   20,048       21,251       19,975       62,069       59,916  
    Data processing   3,379       3,257       3,071       9,891       8,953  
    Occupancy, net   1,893       1,886       1,971       5,853       5,975  
    Interchange expense   1,149       1,127       1,119       3,373       3,222  
    Furniture, fixtures and equipment   932       948       927       2,834       2,782  
    FDIC deposit insurance   664       695       677       2,141       2,209  
    Loan and collection   657       699       520       1,868       1,718  
    Advertising   581       788       360       1,860       1,286  
    Legal and professional   687       544       543       1,717       1,623  
    Communications   519       499       568       1,633       1,871  
    Costs (recoveries) related to unfunded lending commitments   113       (137 )     451       (676 )     76  
    Other   1,961       1,776       1,854       5,546       5,610  
    Total Non-interest Expense   32,583       33,333       32,036       98,109       95,241  
    Income Before Income Tax   17,291       23,166       21,652       60,278       55,729  
    Income tax expense   3,481       4,638       4,109       11,949       10,405  
    Net Income $ 13,810     $ 18,528     $ 17,543     $ 48,329     $ 45,324  
    Net Income Per Common Share                  
    Basic $ 0.66     $ 0.89     $ 0.84     $ 2.31     $ 2.16  
    Diluted $ 0.65     $ 0.88     $ 0.83     $ 2.29     $ 2.14  
    INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
    Selected Financial Data
     
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
      (unaudited)
      (Dollars in thousands except per share data)
    Three Months Ended                  
    Net interest income $ 41,854     $ 41,346     $ 40,197     $ 40,111     $ 39,427  
    Provision for credit losses   1,488       19       744       (617 )     1,350  
    Non-interest income   9,508       15,172       12,561       9,097       15,611  
    Non-interest expense   32,583       33,333       32,193       31,878       32,036  
    Income before income tax   17,291       23,166       19,821       17,947       21,652  
    Income tax expense   3,481       4,638       3,830       4,204       4,109  
    Net income $ 13,810     $ 18,528     $ 15,991     $ 13,743     $ 17,543  
                       
    Basic earnings per share $ 0.66     $ 0.89     $ 0.77     $ 0.66     $ 0.84  
    Diluted earnings per share   0.65       0.88       0.76       0.65       0.83  
    Cash dividend per share   0.24       0.24       0.24       0.23       0.23  
                       
    Average shares outstanding   20,896,019       20,901,741       20,877,067       20,840,680       20,922,431  
    Average diluted shares outstanding   21,115,273       21,105,387       21,079,607       21,049,030       21,114,445  
                       
    Performance Ratios                  
    Return on average assets   1.04 %     1.44 %     1.24 %     1.04 %     1.34 %
    Return on average equity   12.54       17.98       15.95       14.36       18.68  
    Efficiency ratio (1)   62.82       61.49       60.26       64.27       57.52  
                       
    As a Percent of Average Interest-Earning Assets (1)                
    Interest income   5.48 %     5.45 %     5.34 %     5.29 %     5.10 %
    Interest expense   2.11       2.05       2.04       2.03       1.87  
    Net interest income   3.37       3.40       3.30       3.26       3.23  
                       
    Average Balances                  
    Loans $ 3,909,954     $ 3,849,199     $ 3,810,526     $ 3,764,752     $ 3,694,534  
    Securities   933,750       944,435       999,140       1,027,240       1,071,211  
    Total earning assets   4,985,842       4,893,367       4,910,669       4,928,697       4,892,208  
    Total assets   5,275,623       5,181,317       5,201,452       5,233,666       5,192,114  
    Deposits   4,616,119       4,531,917       4,561,645       4,612,797       4,577,796  
    Interest bearing liabilities   3,689,684       3,611,972       3,627,446       3,635,771       3,554,179  
    Shareholders’ equity   438,077       414,549       403,225       379,614       372,667  

    (1) Presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.

    INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
    Selected Financial Data (continued)
     
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
      (unaudited)
      (Dollars in thousands except per share data)
    End of Period                  
    Capital                  
    Tangible common equity ratio   8.08 %     7.63 %     7.41 %     7.15 %     6.67 %
    Tangible common equity ratio excluding accumulated other comprehensive loss   8.99       8.76       8.57       8.31       8.20  
    Average equity to average assets   8.30       8.00       7.75       7.25       7.18  
    Total capital to risk-weighted assets (2)   14.25       14.21       13.85       13.71       13.58  
    Tier 1 capital to risk-weighted assets (2)   12.06       12.01       11.65       11.50       11.37  
    Common equity tier 1 capital to risk-weighted assets (2)   11.16       11.09       10.73       10.58       10.44  
    Tier 1 capital to average assets (2)   9.63       9.59       9.29       9.03       8.94  
    Common shareholders’ equity per share of common stock $ 21.65     $ 20.60     $ 19.88     $ 19.41     $ 17.99  
    Tangible common equity per share of common stock   20.22       19.16       18.44       17.96       16.53  
    Total shares outstanding   20,893,800       20,899,358       20,903,677       20,835,633       20,850,455  
                       
    Selected Balances                  
    Loans $ 3,942,287     $ 3,851,889     $ 3,839,965     $ 3,790,901     $ 3,741,486  
    Securities   932,312       936,194       963,577       1,033,338       1,043,540  
    Total earning assets   4,964,784       4,979,555       4,949,496       4,954,696       4,884,720  
    Total assets   5,259,268       5,277,500       5,231,255       5,263,726       5,200,018  
    Deposits   4,626,875       4,614,328       4,582,414       4,622,879       4,585,612  
    Interest bearing liabilities   3,682,482       3,694,025       3,677,060       3,676,050       3,573,187  
    Shareholders’ equity   452,369       430,459       415,570       404,449       374,998  

    (2) September 30, 2024 are Preliminary.

     
    Reconciliation of Non-GAAP Financial Measures
    Independent Bank Corporation

    Independent Bank Corporation believes non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts to evaluate the adequacy of common equity and performance trends.  Tangible common equity is used by the Company to measure the quality of capital.

    Reconciliation of Non-GAAP Financial Measures

      Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
        2024       2023       2024       2023  
      (Dollars in thousands)
    Net Interest Margin, Fully Taxable Equivalent (“FTE”)              
                   
    Net interest income $ 41,854     $ 39,427     $ 123,397     $ 116,218  
    Add:  taxable equivalent adjustment   158       202       513       722  
    Net interest income – taxable equivalent $ 42,012     $ 39,629     $ 123,910     $ 116,940  
    Net interest margin (GAAP) (1)   3.35 %     3.21 %     3.34 %     3.25 %
    Net interest margin (FTE) (1)   3.37 %     3.23 %     3.35 %     3.26 %

    (1) Annualized.

    Tangible Common Equity Ratio

      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
      (Dollars in thousands)
    Common shareholders’ equity $ 452,369     $ 430,459     $ 415,570     $ 404,449     $ 374,998  
    Less:                  
    Goodwill   28,300       28,300       28,300       28,300       28,300  
    Other intangibles   1,617       1,746       1,875       2,004       2,141  
    Tangible common equity   422,452       400,413       385,395       374,145       344,557  
    Addition:                  
    Accumulated other comprehensive loss for regulatory purposes   52,454       65,030       65,831       66,344       86,507  
    Tangible common equity excluding other comprehensive loss adjustments $ 474,906     $ 465,443     $ 451,226     $ 440,489     $ 431,064  
                       
    Total assets $ 5,259,268     $ 5,277,500     $ 5,231,255     $ 5,263,726     $ 5,200,018  
    Less:                  
    Goodwill   28,300       28,300       28,300       28,300       28,300  
    Other intangibles   1,617       1,746       1,875       2,004       2,141  
    Tangible assets   5,229,351       5,247,454       5,201,080       5,233,422       5,169,577  
    Addition:                  
    Net unrealized losses on available for sale securities and derivatives, net of tax   52,454       65,030       65,831       66,344       86,507  
    Tangible assets excluding other comprehensive loss adjustments $ 5,281,805     $ 5,312,484     $ 5,266,911     $ 5,299,766     $ 5,256,084  
                       
    Common equity ratio   8.60 %     8.16 %     7.94 %     7.68 %     7.21 %
    Tangible common equity ratio   8.08 %     7.63 %     7.41 %     7.15 %     6.67 %
    Tangible common equity ratio excluding other comprehensive loss   8.99 %     8.76 %     8.57 %     8.31 %     8.20 %
                       
    Tangible Common Equity per Share of Common Stock:
                       
    Common shareholders’ equity $ 452,369     $ 430,459     $ 415,570     $ 404,449     $ 374,998  
    Tangible common equity $ 422,452     $ 400,413     $ 385,395     $ 374,145     $ 344,557  
    Shares of common stock outstanding (in thousands)   20,894       20,899       20,904       20,836       20,850  
                       
    Common shareholders’ equity per share of common stock $ 21.65     $ 20.60     $ 19.88     $ 19.41     $ 17.99  
    Tangible common equity per share of common stock $ 20.22     $ 19.16     $ 18.44     $ 17.96     $ 16.53  
     

    The tangible common equity ratio removes the effect of goodwill and other intangible assets from capital and total assets.  Tangible common equity per share of common stock removes the effect of goodwill and other intangible assets from common shareholders’ equity per share of common stock.

    Contact: William B. Kessel, President and CEO, 616.447.3933
      Gavin A. Mohr, Chief Financial Officer, 616.447.3929  

    The MIL Network

  • MIL-OSI: Hanmi Financial Declares Cash Dividend of $0.25 per share

    Source: GlobeNewswire (MIL-OSI)

    LOS ANGELES, Oct. 24, 2024 (GLOBE NEWSWIRE) — Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today announced that its Board of Directors declared a cash dividend on its common stock for the 2024 fourth quarter of $0.25 per share. The dividend will be paid on November 20, 2024, to stockholders of record as of the close of business on November 4, 2024.

    About Hanmi Financial Corporation
    Headquartered in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multi-ethnic communities through its network of 32 full-service branches and eight loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington and Georgia. Hanmi Bank specializes in real estate, commercial, SBA and trade finance lending to small and middle market businesses. Additional information is available at www.hanmi.com.

    Forward-Looking Statements

    This press release contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are “forward–looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about our anticipated future operating and financial performance, financial position and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our capital and strategic plans, and other similar forecasts and statements of expectation and statements of assumption underlying any of the foregoing. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that our forward-looking statements to be reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

    Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statements. These factors include the following:

    • a failure to maintain adequate levels of capital and liquidity to support our operations;
    • general economic and business conditions internationally, nationally and in those areas in which we operate, including any potential recessionary conditions;
    • volatility and deterioration in the credit and equity markets;
    • changes in consumer spending, borrowing and savings habits;
    • availability of capital from private and government sources;
    • demographic changes;
    • competition for loans and deposits and failure to attract or retain loans and deposits;
    • inflation and fluctuations in interest rates that reduce our margins and yields, the fair value of financial instruments, the level of loan originations or prepayments on loans we have made and make, the level of loan sales and the cost we pay to retain and attract deposits and secure other types of funding;
    • our ability to enter new markets successfully and capitalize on growth opportunities;
    • the current or anticipated impact of military conflict, terrorism or other geopolitical events;
    • the effect of potential future supervisory action against us or Hanmi Bank and our ability to address any issues raised in our regulatory exams;
    • risks of natural disasters;
    • legal proceedings and litigation brought against us;
    • a failure in or breach of our operational or security systems or infrastructure, including cyberattacks;
    • the failure to maintain current technologies;
    • risks associated with Small Business Administration loans;
    • failure to attract or retain key employees;
    • our ability to access cost-effective funding;
    • changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio;
    • fluctuations in real estate values;
    • changes in accounting policies and practices;
    • changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums and changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;
    • the ability of Hanmi Bank to make distributions to Hanmi Financial Corporation, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial tests;
    • strategic transactions we may enter into;
    • the adequacy of and changes in the methodology for computing our allowance for credit losses;
    • our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses;
    • changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements;
    • our ability to control expenses; and
    • cyber security and fraud risks against our information technology and those of our third-party providers and vendors.

    In addition, we set forth certain risks in our reports filed with the U.S. Securities and Exchange Commission, including, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K that we will file hereafter, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law.

    Investor Contacts:
    Romolo (Ron) Santarosa
    Senior Executive Vice President & Chief Financial Officer
    213-427-5636

    Lisa Fortuna
    Investor Relations
    Financial Profiles, Inc.
    lfortuna@finprofiles.com
    310-622-8251

    Source: Hanmi Bank

    The MIL Network

  • MIL-OSI: NANO Nuclear Energy Announces Pricing of Upsized $36 Million Underwritten Offering

    Source: GlobeNewswire (MIL-OSI)

    New York, N.Y., Oct. 24, 2024 (GLOBE NEWSWIRE) — NANO Nuclear Energy Inc. (NASDAQ: NNE) (“NANO Nuclear”), a vertically integrated advanced nuclear energy and technology company developing portable clean nuclear energy solutions, today announced that it has priced an upsized firm commitment, registered underwritten public offering of 2,117,646 shares of common stock and common stock purchase warrants to purchase 1,058,823 shares of common stock.

    Each share and associated warrant is being sold at a public offering price of $17.00, for gross proceeds of approximately $36 million, before deducting underwriting discounts and offering expenses. In addition, NANO Nuclear has granted the underwriter a 30-day overallotment option to purchase up to an additional 317,646 shares common stock and/or common stock purchase warrants to purchase 158,823 shares of common stock at the public offering price for gross proceeds of up to $5.4 million, less underwriting discounts and expenses.

    While the shares and associated warrants were marketed as a unit, such units have no stand-alone rights and will not be certificated or issued as stand-alone securities.

    The warrants are exercisable immediately, have a term of five years, and have an exercise price of $17.00 per share. The warrants will not trade on any market.

    The Benchmark Company, LLC is acting as sole book-running manager for the offering.

    NANO Nuclear intends to use the net proceeds from this offering for (i) research and development of its products and technologies, including its ‘ZEUS’ and ‘ODIN’ microreactors and nuclear fuel transportation design optimization, fuel facility investigations and development, test work and scoping studies, and other technology research and development; (ii) marketing, promotion and business development activities; and (iii) regulatory compliance, intellectual property protection, hiring additional employees, retaining additional contractors and building out NANO Nuclear’s new Nuclear Technology Headquarters in Oak Ridge, Tennessee. NANO Nuclear may also use a portion of the net proceeds to acquire, license and invest in complementary products, technologies, or additional businesses, although NANO Nuclear currently has no agreements or commitments with respect to any such transaction.

    The offering is expected to close on or about October 25, 2024, subject to the satisfaction of customary closing conditions.

    Registration statements relating to these securities were previously filed with the U.S. Securities and Exchange Commission (“SEC”) and have become effective. The offering is being made only by means of a prospectus. Copies of the final prospectus, when available, may be obtained from The Benchmark Company, LLC, 150 East 58th St., 17th Floor, New York, NY 10155, by telephone: (212) 312-6700, or by email at Prospectus@benchmarkcompany.com.

    This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

    About NANO Nuclear Energy Inc.

    NANO Nuclear Energy Inc. (NASDAQ: NNE) is an advanced technology-driven nuclear energy company seeking to become a commercially focused, diversified, and vertically integrated company across four business lines: (i) cutting edge portable microreactor technology, (ii) nuclear fuel fabrication, (iii) nuclear fuel transportation and (iv) nuclear industry consulting services. NANO Nuclear believes it is the first portable nuclear microreactor company to be listed publicly in the U.S.

    Led by a world-class nuclear engineering team, NANO Nuclear’s products in technical development are “ZEUS”, a solid core battery reactor, and “ODIN”, a low-pressure coolant reactor, each representing advanced developments in clean energy solutions that are portable, on-demand capable, advanced nuclear microreactors.

    Advanced Fuel Transportation Inc. (AFT), a NANO Nuclear subsidiary, is led by former executives from the largest transportation company in the world aiming to build a North American transportation company that will provide commercial quantities of HALEU fuel to small modular reactors, microreactor companies, national laboratories, military, and DOE programs. Through NANO Nuclear, AFT is the exclusive licensee of a patented high-capacity HALEU fuel transportation basket developed by three major U.S. national nuclear laboratories and funded by the Department of Energy. Assuming development and commercialization, AFT is expected to form part of the only vertically integrated nuclear fuel business of its kind in North America.

    HALEU Energy Fuel Inc. (HEF), a NANO Nuclear subsidiary, is focusing on the future development of a domestic source for a High-Assay, Low-Enriched Uranium (HALEU) fuel fabrication pipeline for NANO Nuclear’s own microreactors as well as the broader advanced nuclear reactor industry.

    NANO Nuclear Space Inc. (NNS), a NANO Nuclear subsidiary, is exploring the potential commercial applications of NANO Nuclear’s developing micronuclear reactor technology in space. NNS is focusing on applications such as power systems for extraterrestrial projects and human sustaining environments, and potentially propulsion technology for long haul space missions. NNS’ initial focus will be on cis-lunar applications, referring to uses in the space region extending from Earth to the area surrounding the Moon’s surface.

    For further information, please contact:

    Email: IR@NANONuclearEnergy.com
    Business Tel: (212) 634-9206

    Cautionary Note Regarding Forward Looking Statements

    This news release and statements of NANO Nuclear’s management in connection with this news release or related events contain or may contain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements mean statements (including statements related to the public offering, including the proposed use of proceeds from such offering, as described herein) related to future events, which may impact our expected future business and financial performance, and often contain words such as “seek,” “expects”, “anticipates”, “intends”, “plans”, “believes”, “potential”, “will”, “should”, “could”, “would” or “may” and other words of similar meaning. These forward-looking statements are based on information available to us as of the date of this news release and represent management’s current views and assumptions. Forward-looking statements are not guarantees of future performance, events or results and involve significant known and unknown risks, uncertainties and other factors, some of which may be beyond our control. Readers are cautioned that actual results may differ materially and adversely from the results implied in forward-looking statements. For NANO Nuclear, particular risks and uncertainties that could cause our actual future results to differ materially from those expressed in our forward-looking statements include but are not limited to the following: (i) risks related to our U.S. Department of Energy (“DOE”) or related state nuclear fuel licensing submissions, (ii) risks related the development of new or advanced technology, including difficulties with design and testing, cost overruns, regulatory delays and the development of competitive technology, (iii) our ability to obtain contracts and funding to be able to continue operations, (iv) risks related to uncertainty regarding our ability to technologically develop and commercially deploy a competitive advanced nuclear reactor or other technology in the timelines we anticipate, if ever, (v) risks related to the impact of government regulation and policies including by the DOE and the U.S. Nuclear Regulatory Commission, including those associated with the recently enacted ADVANCE Act, and (vi) similar risks and uncertainties associated with the business of a start-up business operating a highly regulated industry. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. These factors may not constitute all of the factors that could cause actual results to differ from those discussed in any forward-looking statement, and the Company therefore encourages investors to review other factors that may affect future results in the Company’s filings with the SEC, which are available for review at www.sec.gov and at https://ir.nanonuclearenergy.com/financial-information/sec-filings. Readers are cautioned not to place undue reliance on forward-looking statements, which apply only as of the date of this news release, and forward-looking statements should not be relied upon as a predictor of actual results. We do not undertake to update our forward-looking statements to reflect events or circumstances that may arise after the date of this news release, except as required by law.

    Attachment

    The MIL Network

  • MIL-OSI: Equipment Leasing and Finance Association CapEx Finance Index: September 2024

    Source: GlobeNewswire (MIL-OSI)

    ********************************************************************************************************
    Note to readers: ELFA has updated the name of the Monthly Leasing and Finance Index (MLFI-25) to the CapEx Finance Index (CFI) to better reflect what it measures and how it impacts the broader U.S. economy.
    ********************************************************************************************************

    WASHINGTON, Oct. 24, 2024 (GLOBE NEWSWIRE) —

    Demand for equipment picked up. New business volume grew by $10.0 billion from August to September, a monthly increase of 2.2% before rounding. Growth in business volume has been uneven in 2024 but continues to hover around historic highs. The September release suggests that equipment investment continued to expand at a healthy pace at the end of the third quarter.  

    Bank lending drove new business growth. The sub-index for business volume at banks grew by 10.9% from August to September, which was more than enough to offset the contraction in activity at captives and independents, which declined by 2.3% and 9.8%, respectively. The figure below shows that bank activity has lagged other sources over the last few years, but the latest data suggests that banks may be easing back into the lending and leasing market.

    Lenders continue to add headcount. The 12-month change in employment was just over 1.0%, slightly slowing from the 1.2% pace recorded in August. Employment has been a source of strength this year, following nearly five years of persistent declines in headcount.

    Credit approvals remained steady. The percentage of credit applications approved ticked down 0.7 percentage points to 75.6%. The approval rate has been hovering around 75% for most of 2024.

    Lender balance sheets improved for a second consecutive month. The percentage of credit lines over 30 days past due and charge-offs declined. Both have been trending up over the last two years as borrowing conditions tightened due to the rapid increase in interest rates.

    Industry Confidence
    The Monthly Confidence Index from ELFA’s affiliate, the Equipment Leasing & Finance Foundation, is 61.8 in October, steady with the September index of 61.9, which was the highest level since January 2022.

    Industry Voices

    “Our latest CapEx Finance Survey showed that equipment demand continued to defy high interest rates in September. The uptick in bank lending was particularly encouraging and is something I will be watching closely as we approach the end of the year. I wouldn’t be surprised if the next few surveys show a cooling in lending volumes as election uncertainty peaks and some businesses wait for rates to drop further. That said, balance sheets continued to improve, and the percentage of approved new credit applications remained healthy, signs that lenders and borrowers are in a great position to weather any gusts that might come along in the fourth quarter.”
    ELFA President and CEO, Leigh Lytle

    “A healthy increase in YOY business volume, especially in August and September, validates our 12-month increase in headcount as we continue strengthening our value proposition for all of CEFI’s stakeholders. A decreasing interest rate environment driving increased business volume and net interest margin will enhance bottom-line returns for CEFI and the industry until competitors become more aggressive.” Ricardo E. Rios, CFA, CLFP, President & COO, Commercial Equipment Finance, Inc (CEFI)

    About ELFA’s CFI
    The CFI is the only near-real-time index that reflects capex, or the volume of commercial equipment financed in the U.S. It is released monthly from Washington, D.C., one day before the U.S. Department of Commerce’s durable goods report. This financial indicator complements reports like the Institute for Supply Management Index, providing a comprehensive view of productive assets in the U.S. economy—equipment produced, acquired and financed. The CFI consists of two years of business activity data from 25 participating companies. For more details, including methodology and participants, visit www.elfaonline.org/CFI.

    About ELFA
    The Equipment Leasing and Finance Association (ELFA) represents financial services companies and manufacturers in the $1 trillion U.S. equipment finance sector. ELFA’s 575 member companies provide essential financing that helps businesses acquire the equipment they need to operate and grow. Learn how equipment finance contributes to businesses’ success, U.S. economic growth, manufacturing and jobs at http://www.elfaonline.org.

    Media/Press Contact: Amy Vogt, Vice President, Communications and Marketing, ELFA, avogt@elfaonline.org

    Photos accompanying this announcement are available at:
    https://www.globenewswire.com/NewsRoom/AttachmentNg/cee789e6-c777-4190-9b5d-4361b6712379

    https://www.globenewswire.com/NewsRoom/AttachmentNg/721cf1e0-33c3-4767-882b-bceb720b01b1

    The MIL Network

  • MIL-OSI: Paycor Welcomes Industry Leader Dru Armstrong, CEO of AffiniPay, to Board of Directors

    Source: GlobeNewswire (MIL-OSI)

    CINCINNATI, Oct. 24, 2024 (GLOBE NEWSWIRE) — Paycor HCM, Inc. (Nasdaq: PYCR) (“Paycor”), a leading provider of human capital management (HCM) software, today announced the election of Dru Armstrong to its Board of Directors, effective October 23, 2024.

    Ms. Armstrong brings a wealth of leadership experience to Paycor’s board, currently serving as Chief Executive Officer of AffiniPay, a leading provider of practice management software, integrated payments, and embedded fintech solutions. Her expertise spans software-as-a-service (SaaS), embedded technology, and adjacent payment industries, aligning closely with Paycor’s current and potential growth strategies.

    “Dru’s proven track record in driving technology companies to exponential growth, coupled with her strategic financial leadership, will be invaluable to our board,” said Raul Villar, Jr., CEO of Paycor. “Her deep industry knowledge and experience in scaling SaaS businesses will be crucial as we continue to innovate and expand our HCM offerings. Additionally, Dru’s commitment to fostering diverse, inclusive workplaces aligns perfectly with our company values.”

    With over 20 years of experience in the technology sector, Ms. Armstrong has proven success in building high-performing teams, driving product innovation and accelerating growth. She has been named a Top 25 Women Leader in PE-Backed Software Companies for 2024 by Calibre One and featured in American Banker’s 2024 list of Most Influential Women in Fintech. Additionally, she is widely regarded as a thought leader on innovation, diversity, equity and inclusion, and verticalized software.

    “Paycor is at the forefront of transforming how leaders leverage HCM technology to drive success,” said Armstrong. “I’m thrilled to join the board at this pivotal time and look forward to contributing my experience in scaling SaaS companies and navigating complex financial landscapes. Together, we’ll push the boundaries of innovation in HCM solutions, helping organizations build high-performing teams and achieve their full potential in today’s dynamic business environment.”

    About Paycor
    Paycor’s HR, payroll, and talent platform connects leaders to people, data, and expertise. We help leaders drive engagement and retention by giving them tools to coach, develop, and grow employees. We give them unprecedented insights into their operational data with a unified HCM experience that can seamlessly connect to other mission-critical technology. By providing expert guidance and consultation, we help them achieve business results and become an extension of their teams. Learn more at paycor.com.​

    Investor Relations:
    Rachel White
    513-954-7388
    IR@paycor.com  

    Media Relations:
    Carly Pennekamp
    513-954-7282
    PR@paycor.com

    The MIL Network

  • MIL-OSI United Kingdom: Inspection report published: An inspection of contingency asylum accommodation (November 2023 – June 2024)

    Source: United Kingdom – Executive Government & Departments

    This inspection examined the Home Office’s use of contingency asylum accommodation for asylum seekers.

    This inspection examined the Home Office’s strategies for dealing with an increasing demand for contingency asylum accommodation while needing to reduce the associated costs, in particular the costs of using hotels to accommodate those seeking asylum. In addition, it explored the Home Office’s processes and practices for assuring the performance of the private companies contracted to provide asylum accommodation, and the delivery of support and services to the “service users”.   

    The inspection was initiated by my predecessor, David Neal, and the bulk of the evidence was gathered between November 2023 and January 2024. However, it was not possible to complete the inspection in the usual manner as there was no Independent Chief Inspector in post from 21 February to 3 June 2024.

    In June 2024, I asked the Home Office for some additional information and updated evidence. I also visited the Bibby Stockholm, Wethersfield and Napier Barracks to see the accommodation at first-hand and to talk to those working and accommodated at those sites.

    My report identifies improvements I believe the Home Office can and should make, including in relation to strategies and plans, stakeholder engagement, governance, contract compliance and assurance checks, record-keeping and data quality, the provision of purposeful activities, safeguarding vulnerable people, organisational learning, and communication.

    In most cases, the underlying issues, such as poor or non-existent data, are not unique to contingency asylum accommodation and have featured in many previous inspection reports. In the case of assurance checks, previous recommendations have not been implemented. Aside from not holding the accommodation providers effectively to account, this means that “service users” have widely differing experiences of contingency asylum accommodation.

    However, I would like to draw particular attention to one long-standing, systemic issue that this inspection has again exposed.

    Lack of meaningful engagement with stakeholders and poor communication (“one-way”, telling rather than listening) from the Home Office about policies, practices and plans has been a recurring theme of inspections over many years. It is clear that the Home Office still has a long way to go to build trust and confidence in its willingness to be open and honest about its intentions and performance and any reluctance to share information, whether real or perceived, will be seen as evidence that it is not. Timing is all-important, and while there are risks in engaging early, it must avoid any hint of “too little, too late”.   

    The need for effective engagement and communication also extends to the “service users”. Others have reported on the impact on the mental health and wellbeing of asylum seekers, and in particular those accommodated at Wethersfield and on the Bibby Stockholm, of not knowing what will happen to them. This was all too evident through this inspection.

    In 2021, I wrote to the Home Office recommending that it create the means to keep individuals who had claimed asylum informed about where their claim was in the process. This was what each of them wanted to know more than anything else, and it has become even more of an issue with the removal of the six-month Service Level Agreement (SLA) for asylum decisions, backlogs and lengthening decision times, and legislative changes.

    I accept that with the numbers now in the asylum system this is a difficult time to introduce a new service that provides updates on individual claims, for example through text messages, a ‘hotline’, or an indicator on GOV.UK of current average waiting times. However, it is something that the Home Office should be striving to do as soon as it is practicable. The reintroduction of an SLA would be a start.

    This report makes nine recommendations. I am pleased that these have all been accepted, either in full or in part, and that in the latter cases the department has provided a clear explanation of why it is not accepting the recommendation fully and what it is doing towards addressing the spirit of the recommendation if not the letter. This is a complex area with lots of moving parts, and the ICIBI will no doubt wish to return to it at some point to consider and report on the various initiatives identified in the government’s response.

    Concerns over delays in the publication of ICIBI reports are well-known. I am therefore particularly pleased that this report has been published promptly. It was sent to the Home Secretary on 3 September 2024, so publication today is within the agreed 8-week timeframe. I am hopeful that this will continue.

    David Bolt, Independent Chief Inspector of Borders and Immigration

    24 October 2024

    Updates to this page

    Published 24 October 2024

    MIL OSI United Kingdom

  • MIL-OSI Africa: Secretary-General’s remarks to the 16th BRICS Summit [as delivered]

    Source: United Nations – English

    xcellencies, ladies and gentlemen,
     
    I am grateful to participate in the 16th BRICS Summit. 
     
    Collectively, your countries represent nearly half of the world’s population.
     
    And I salute your valuable commitment and support for international problem-solving as clearly reflected in your theme this year.
     
    But no single group and no single country can act alone or in isolation.
     
    It takes a community of nations, working as one global family, to address global challenges.
     
    Challenges like the rising number of conflicts.
     
    The devastation of climate change, pollution and biodiversity loss…
     
    Rising inequalities and lingering poverty and hunger…
     
    A debt crisis that threatens to smother plans for the future of many vulnerable countries… 
     
    The fact that fewer than one-fifth of the Sustainable Development Goals are on-track…
     
    A growing digital divide, and a lack of guardrails for artificial intelligence and other frontier technologies…
     
    And a lack of representation and voice for developing countries at global decision-making tables. From the Security Council to the Bretton-Woods institution and beyond. This must change.
     
    September’s Summit of the Future offered a roadmap for strengthening multilateralism, and advancing peace, sustainable development and human rights.
     
    I see four areas for action.
     
    First — finance.
     
    Today’s international financial system is not offering many vulnerable countries the safety net or level of support they need.
     
    The Pact for the Future calls for accelerating reform of the international financial architecture that is outdated, ineffective and unfair.
     
    And it includes a commitment to move forward with an SDG Stimulus to change the business model to substantially increase the lending capacity of Multilateral Development Banks to developing countries.
     
    To recycle more Special Drawing Rights…
     
    To restructure loans for countries drowning in debt…
     
    And to mobilize more international and domestic resources, public and private, for vital investments in developing countries.
     
    Next year’s Conference on Financing for Development and the Summit on Social Development are two milestones to carry these efforts forward.
     
    We must also recognize the importance of South-South cooperation.
     
    It doesn’t replace the commitments and obligations of developed countries.
     
    But it is providing a growing contribution to supporting developing countries in overcoming obstacles to reaching the SDGs. 
     
    Second — climate.
     
    Every country has committed to limit temperature rise to 1.5 degrees Celsius.
     
    That requires dramatic action to reduce emissions now — with the G20 in the lead.
     
    COP29 is just weeks away. 
     
    That starts the clock for countries to produce new Nationally Determined Contributions plans with 2035 targets that are aligned with the 1.5 degree goal.
     
    COP29 must deliver an ambitious and credible outcome on the new climate finance goal.
     
    Developed countries must also keep promises to double adaptation finance, and ensure meaningful contributions to the Loss and Damage Fund, which was not the case when it was created.
     
    Third — technology.
     
    Every country must be able to access the benefits of technology.
     
    The Global Digital Compact commits to enhanced global cooperation and capacity-building.
     
    It includes the first truly universal agreement on the international governance of Artificial Intelligence to give every country a seat at the AI table.
     
    It calls for an independent international Scientific Panel on AI and initiating a global dialogue on its governance within the United Nations with the participations of all countries.
     
    And it requests options for innovative financing for AI capacity-building in developing countries.
     
    And fourth — peace.
     
    We must strengthen and update the machinery of peace.
     
    This includes reforms to make the United Nations Security Council reflective of today’s world.
     
    The Pact for the Future includes important steps on disarmament — including the first multilateral agreement on nuclear disarmament in more than a decade — and steps that address the weaponization of outer space and the use of lethal autonomous weapons.
     
    Across the board, we need peace.
     
    We need peace in Gaza with an immediate cease-fire, the immediate and unconditional release of all hostages, the effective delivery of humanitarian aid without obstacles, and we need to make irreversible progress to end the occupation and establish the two state solution, as it was recently reaffirmed once again by a UN General Assembly resolution.
     
    We need peace in Lebanon with an immediate cessation of hostilities, moving to the full implementation of Security Council resolution 1701. 

    We need peace in Ukraine. A just peace in line with the UN Charter, international law and General Assembly resolutions.
     
    We need peace in Sudan, with all parties silencing their guns and committing to a path towards sustainable peace.
     
    Those were the messages I have delivered to the High-Level segment of the General Assembly in September in New York. Unfortunately, they remain valid here and now.
     
    Everywhere, we must uphold the values of the UN Charter, the rule of law, and the principles of sovereignty, territorial integrity and political independence of all States. 
     
    Excellencies, ladies and gentlemen,
     
    The Summit of the Future charted a course to strengthen multilateralism for global development and security.
     
    Now we must turn words into deeds and we believe BRICS can play a very important role in this direction.
     
    Thank you.

    MIL OSI Africa

  • MIL-OSI Canada: Parliamentary Appearance by the Governor and the Senior Deputy Governor of the Bank of Canada

    Source: Bank of Canada


















  • MIL-OSI Russia: The government will allocate more than a third of a billion rubles to provide water supply to residents of Kalmykia and Chuvashia

    Translation. Region: Russian Federation –

    Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

    The decision was made on the instructions of the President.

    The government continues to help regions develop public utility infrastructure. A total of more than 370 million rubles will be allocated for the construction of a water pipeline in Kalmykia and distribution water supply networks in Chuvashia. The orders to this effect were signed by Prime Minister Mikhail Mishustin.

    In Kalmykia, construction of the Verkhniy Yashkul-Elista water pipeline will begin in 2024 using federal funding. This structure will improve the quality of water supply for residents of Elista and suburban settlements.

    Commenting on the decision takenGovernment meeting on October 24, Mikhail Mishustin noted that the territory of Kalmykia is considered the driest in the country. This requires special attention from both regional and federal authorities. According to the Prime Minister, the topic of improving water supply was discussed in detail during his working visit to this region in February 2021.

    The implementation of the project in Chuvashia will provide high-quality drinking water to residents of two villages in the Batyrevsky municipal district. There, by the end of 2024, it is planned to complete the creation of several sections of distribution water supply networks in the settlements of Staroye Akhperdino and Novoye Bakhtiarovo.

    “We will continue to progressively solve the problems of organizing reliable water supply in all areas where people live,” Mikhail Mishustin emphasized.

    Providing the population of Chuvashia with clean drinking water is one of the instructions of the President, which concerned issues of the socio-economic development of the Chuvash Republic. Similar instructions were given by the head of state regarding the development of the communal infrastructure of Kalmykia. Both instructions appeared in April 2024.

    The documents will be published.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News

  • MIL-OSI China: BRICS charts path at milestone summit, Xi offers five suggestions

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

    KAZAN, Russia, Oct. 24 — Heels clicked and shoes shuffled across the media center floors at the BRICS Kazan summit on Wednesday, as journalists from around the world rushed to cover the landmark first in-person summit since the group’s expansion.

    Amid global uncertainties, BRICS embarked on a new chapter, cementing its growing influence on the world stage. Chinese President Xi Jinping, addressing the leaders in an expanded format, put forward five suggestions: building a BRICS committed to peace, innovation, green development, justice, and closer people-to-people exchanges.

    “We must build on this milestone summit to set off anew and forge ahead with one heart and one mind,” Xi said. “China is willing to work with all BRICS countries to open a new horizon in the high-quality development of greater BRICS cooperation.”

    This year’s summit also marked another major progress with the decision to invite a number of nations as partner countries, further advancing the group’s development.

    The growing interest from countries seeking to join BRICS cooperation each year demonstrates that in today’s troubled world, BRICS is important and essential, said Bunn Nagara, director and senior fellow at Belt and Road Initiative Caucus for Asia-Pacific.

    “China, led by President Xi, has contributed significantly to BRICS’ success with a progressive and enlightened approach,” said Nagara.

    During Wednesday’s meetings, leaders exchanged views on BRICS cooperation and key international issues under the theme “Strengthening Multilateralism for Just Global Development and Security,” focusing on global and regional security, sustainable development, climate change, and reforms in global economic governance.

    A major emphasis of the summit was the call for increased funding to support sustainable development in developing countries. Egyptian President Abdel-Fattah al-Sisi said BRICS is set to “strengthen a multipolar international system,” particularly through “innovative and effective” financing for these countries.

    Russian President Vladimir Putin, who chaired the Kazan summit, said that “the trend for the BRICS’ leading role in the global economy will only strengthen.”

    He warned against the ongoing risks from geopolitical tensions and the rise of unilateral sanctions and protectionism, emphasizing “a key task is to promote the use of national currencies to finance trade and investment.”

    Brazilian President Luiz Inacio Lula da Silva, who participated in the summit via video link due to a head injury, echoed this sentiment. “It’s not about replacing our currencies, but we need to work so that the multipolar order we aim for is reflected in the international financial system,” said Lula.

    BRICS has already made strides with the New Development Bank (NDB), headquartered in Shanghai. The BRICS countries agreed on Wednesday to support the NDB in implementing its general strategy for 2022-2026 and in expanding local currency financing.

    In a declaration issued at the 16th BRICS Summit, they also agreed to jointly build the NDB into a new type of multilateral development bank for the 21st century, support its further expansion of membership, and expedite the review of membership applications from BRICS countries in accordance with its general strategy and related policies.

    The BRICS countries are also encouraged to strengthen financial cooperation and promote local currency settlement, according to the declaration.

    During the summit, leaders also emphasized the need for a fairer global order for the Global South. South African President Cyril Ramaphosa said that BRICS is an inclusive formation capable of changing the trajectory of the Global South. “To do this we must realize the full potential of our economic partnership, to ensure sustainable development for all and not just for some,” he said.

    “The period of unilateralism is coming to an end,” added Iranian President Masoud Pezeshkian, calling for a more equitable global system.

    Several speakers also highlighted the need for differentiated responsibilities in addressing climate change, urging that developing nations’ emissions reduction efforts should align with their capacities.

    BRICS, initially known as “BRIC” when it was coined in 2001 by Jim O’Neill, former chief economist at Goldman Sachs, originally represented emerging market economies of Brazil, Russia, India, and China. South Africa joined in 2010, officially forming BRICS.

    In a recent interview with Xinhua, O’Neill acknowledged the need for policymakers to collaborate in creating an optimal system that benefits all. “I think as we pass through time, we will find a new equilibrium where countries will be more at ease with what other countries are doing,” he said.

    Other than the new full members joining on Jan. 1, 2024, over 30 countries, including Thailand, Malaysia, Türkiye and Azerbaijan, have either formally applied for or expressed interest in BRICS membership. Many other developing countries are seeking deeper cooperation with the group.

    Observers view BRICS as a vital platform for developing countries to pursue growth. Ahmed Al-Ali, a political and strategic researcher at the Gulf Research Center in Dubai, noted that BRICS aims to foster a more equitable, effective, and rational international system.

    It will play a crucial role in promoting development and growth opportunities for Global South countries while ensuring the sustainability of economic and social progress, said Al-Ali.

    Echoing that view, Sithembiso Bhengu, a senior research fellow with the Sociology Department, University of Johannesburg, said, “The BRICS mechanism presents real possibilities for making the globe a fairer community of nations, with possibilities for mutual support and cooperation towards our respective goals in modernization and development.”

    MIL OSI China News

  • MIL-OSI USA: ICYMI: NJBPU Announces Adoption of Minimum Filing Requirements for Medium-and-Heavy-Duty Electric Vehicles

    Source: US State of New Jersey

    TRENTON – The New Jersey Board of Public Utilities (NJBPU) announced on Wednesday the adoption of minimum filing requirements (MFRs) that direct the state’s investor-owned electric distribution companies (EDCs) to propose programs to expand charging access for medium-and-heavy-duty (MHD) electric vehicles (EVs) and fleets. The expansion of New Jersey’s EV charging ecosystem will catalyze the ongoing clean transition of the state’s fleet, yielding significant greenhouse gas (GHG) emissions reductions within the state’s transportation sector and improving localized air quality.

    New Jersey’s transportation sector accounts for nearly 40% of the state’s net GHG emissions, with MHD trucks and busses emitting an outsized share of those emissions. Low-income neighborhoods and communities of color are more likely to be exposed to these pollutants due to their disproportionate proximity to freight corridors, ports, and distribution centers. The adopted MFRs allow utilities to provide additional “bonus” incentives for overburdened municipalities and overburdened communities adjacent to Freight EV Corridors, as well as small businesses.

    “Today’s announcement by the BPU is a key part of my Administration’s whole-of-government approach to reducing harmful emissions from the transportation sector that negatively impact the health of our residents,” said Governor Phil Murphy. “Along with New Jersey’s action on Advanced Clean Trucks and the Clean Corridors Coalition, we are building a robust charging infrastructure for a clean transportation future.”

    “Under Governor Murphy’s leadership and in coordination with New Jersey’s EDCs, the NJBPU remains at the forefront of advancing smart, clean transportation initiatives and infrastructure that provide considerable health and environmental benefits,” said NJBPU President Christine Guhl-Sadovy. “These benefits are especially vital to the overburdened communities that have borne the brunt of air pollution and its health effects for far too long.”

    The MFRs will allow EDCs to propose incentives for the “Make Ready” chargers for public-serving fleets and certain private fleets located in or serving overburdened municipalities and overburdened communities adjacent to Freight EV Corridors.

    To ensure that MHD EV charging is built in scalable ways that take capacity into account, the MFRs will connect applicants to utilities and require that utilities create and update capacity maps demonstrating where the grid is capable of supporting MHD charging. In addition, they provide the framework for proactive planning for public charging stations over 500 kW, fleets, and multi-unit dwellings. These planning and technical services will help ensure that these projects are connecting with utilities early and often, allowing for better grid planning and accelerating this critical piece of the 2019 Energy Master Plan.

    The MFRs also require that EDCs create managed charging programs to balance the demand on the grid and encourage users to charge at night.

    The adopted MFRs build upon the Murphy Administration’s ongoing efforts to promote clean transportation and expand EV charging infrastructure across the state. EDCs will be required to file their proposed programs with the Board within 120 days of the Order.

    In July, the U.S. Environmental Protection Agency announced the selection of the Clean Corridor Coalition, led by the New Jersey Department of Environmental Protection, to receive a nearly $250 million Climate Pollution Reduction Grant. The Clean Corridor Coalition – which includes the Connecticut Department of Energy and Environmental Protection, the Delaware Department of Transportation, and the Maryland Departments of the Environment and Transportation – aims to deploy EV charging infrastructure for commercial zero-emission MHD vehicles along the Interstate-95 freight corridor.

    On Wednesday, the U.S. EPA and NJDEP announced the arrival of this historic funding at the Vince Lombardi Service Area in Ridgefield, New Jersey.

    About New Jersey’s Clean Energy Program (NJCEP)
    NJCEP, established on January 22, 2003, in accordance with the Electric Discount and Energy Competition Act (EDECA), provides financial and other incentives to the State’s residential customers, businesses and schools that install high-efficiency or renewable energy technologies, thereby reducing energy usage, lowering customers’ energy bills and reducing environmental impacts. The program is authorized and overseen by the New Jersey Board of Public Utilities (NJBPU), and its website is www.NJCleanEnergy.com.

    About the New Jersey Board of Public Utilities (NJBPU) 

    NJBPU is a state agency and regulatory authority mandated to ensure safe, adequate and proper utility services at reasonable rates for New Jersey customers. Critical services regulated by NJBPU include natural gas, electricity, water, wastewater, telecommunications and cable television. The Board has general oversight and responsibility for monitoring utility service, responding to consumer complaints, and investigating utility accidents. To find out more about NJBPU, visit our website at www.nj.gov/bpu.

    MIL OSI USA News

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

    Source: GlobeNewswire (MIL-OSI)

    GETTYSBURG, Pa., Oct. 24, 2024 (GLOBE NEWSWIRE) — ACNB Corporation (NASDAQ: ACNB) (“ACNB” or the “Corporation”), financial holding company for ACNB Bank and ACNB Insurance Services, Inc., announced net income of $7.2 million, or $0.84 diluted earnings per share, for the three months ended September 30, 2024 compared to net income of $9.0 million, or $1.06 diluted earnings per share, for the three months ended September 30, 2023 and net income of $11.3 million, or $1.32 diluted earnings per share, for the three months ended June 30, 2024. Financial results for the three months ended September 30, 2024 were impacted by $1.1 million in merger-related expense due to the pending acquisition of Traditions Bancorp, Inc. Financial results for the three month period ended June 30, 2024 were impacted by a $3.2 million reversal of the provisions for credit losses and unfunded commitments.

    2024 Third Quarter Highlights

    • Return on average assets was 1.17% and return on average equity was 9.63% for the three months ended September 30, 2024. Core return on average assets1 was 1.32% and core return on average equity1 was 10.81% for the three months ended September 30, 2024.
    • Fully taxable equivalent (“FTE”) net interest margin was 3.77% for the three months ended September 30, 2024 compared to 3.82% for the three months ended June 30, 2024 and 4.01% for the three months ended September 30, 2023.
    • Total non-performing loans to total loans, net of unearned income, was 0.39% at September 30, 2024 compared to 0.19% at June 30, 2024 and 0.22% at September 30, 2023. The increase in non-performing loans to total loans, net of unearned income, for the three months ended September 30, 2024 was the result of one long-standing commercial relationship in the healthcare industry, comprised of both owner-occupied commercial real estate and commercial and industrial loans, that moved into non-performing loan status during the current quarter.
    • Net charge-offs to average loans outstanding (annualized) were 0.01% for the three months ended September 30, 2024 and 0.00% for the three months ended June 30, 2024 compared to 0.03% for the three months ended September 30, 2023.
    • Tangible common equity to tangible assets ratio1 of 10.74% at September 30, 2024 compared to 9.84% at June 30, 2024 and 8.65% at September 30, 2023. The net unrealized loss on the available for sale securities portfolio was $36.8 million at September 30, 2024 compared to a net unrealized loss of $52.7 million at June 30, 2024 and a net unrealized loss of $75.2 million at September 30, 2023.
    • ACNB and ACNB Bank capital levels remain well in excess of ACNB’s internal minimums and those required to be categorized as a well-capitalized institution by our bank regulators.

    “We are once again pleased to share strong operating results for the third quarter of 2024. Our continued focus on profitability and asset quality as evidenced by our return on average assets and return on average equity are a testament to the continued focus on our strategic objectives,” said James P. Helt, ACNB Corporation President and Chief Executive Officer.

    “During the third quarter, we were also pleased to announce the strategic acquisition of Traditions Bancorp, Inc. This acquisition will create the largest community bank in Pennsylvania with assets less than $5 billion and enhances our presence in York County and expands our branch footprint in neighboring Lancaster County. We are excited to welcome Traditions as ACNB continues to expand our market presence. This strategic acquisition will complement our current operations with profitable growth opportunities in adjacent markets while contributing to the Corporation’s established commitment of enhancing long-term shareholder value.”

    Mr. Helt continued, “As we look forward to the remainder of 2024 and the start of a new year in 2025, we are excited that our strong foundation based on community banking principles combined with the growth opportunities now before us through our strategic planning objectives will enable us to continue to deliver on our commitment to our stakeholders.”

    Net Interest Income and Margin

    Net interest income for the three months ended September 30, 2024 totaled $20.9 million, a decrease of $803 thousand, or 3.7%, compared to the three months ended September 30, 2023 driven by a decrease in the FTE net interest margin over the same period. The FTE net interest margin for the three months ended September 30, 2024 was 3.77%, a decrease of 24 basis points from 4.01% for the three months ended September 30, 2023. The decrease in FTE net interest margin was driven primarily by an increase in long-term borrowings and promotional time deposit balances and costs. Total average borrowings increased $132.5 million for the three months ended September 30, 2024 compared to the same period in September 30, 2023. The average rate paid on total borrowings was 4.31% for the three months ended September 30, 2024, an increase of 48 basis points from the three months ended September 30, 2023. Total average interest-bearing deposits decreased $54.4 million, or 3.9%, for the three months ended September 30, 2024 compared to September 30, 2023; however, average time deposit balances increased $45.9 million due to ongoing promotions. The average rate paid on interest-bearing deposits was 0.92% for the three months ended September 30, 2024, an increase of 66 basis points from the three months ended September 30, 2023.

    Net interest income for the three months ended September 30, 2024 totaled $20.9 million, a decrease of $22 thousand, or 0.1%, compared to $21.0 million for the three months ended June 30, 2024 driven by a decrease in the FTE net interest margin over the same period. The FTE net interest margin for the three months ended September 30, 2024 decreased 5 basis points from 3.82% for the three months ended June 30, 2024. The decrease in FTE net interest margin was driven primarily by the recognition of nonaccrual interest income related to a specific large relationship during the three months ended June 30, 2024 and increases in the cost of average interest-bearing deposits during the three months ended September 30, 2024. Excluding nonaccrual interest income related to the payoff of a specific large relationship, the FTE net interest margin was 3.79% for the three months ended June 30, 2024. The average rate paid on interest-bearing deposits was 0.92% for the three months ended September 30, 2024, an increase of 13 basis points from the three months ended June 30, 2024.

    Noninterest Income

    Noninterest income for the three months ended September 30, 2024 was $6.8 million, an increase of $536 thousand, or 8.5%, from the three months ended September 30, 2023. Wealth management income for the three months ended September 30, 2024 was $1.2 million, an increase of $235 thousand from the three months ended September 30, 2023 driven primarily by portfolio market appreciation, estate income and new business generation. Insurance commissions for the three months ended September 30, 2024 were $2.8 million, an increase of $158 thousand from the three months ended September 30, 2023 driven primarily by growth in commissions on policy renewals and new business in the current quarter. Gain from mortgage loans held for sale totaled $112 thousand for the three months ended September 30, 2024 compared to none for the three months ended September 30, 2023.

    Noninterest income for the three months ended September 30, 2024 increased $406 thousand, or 6.3%, from the three months ended June 30, 2024. The increase was driven primarily by increases in wealth management income driven by higher estate income and other income driven by annual check ordering incentives received during the three months ended September 30, 2024. Additionally, there was a higher volume of mortgages sold in the current quarter, which resulted in a higher gain from mortgage loans held for sale for the three months ended September 30, 2024 compared to the three months ended June 30, 2024.

    Noninterest Expense

    Noninterest expense for the three months ended September 30, 2024 was $18.2 million, an increase of $1.9 million, or 11.7%, from the three months ended September 30, 2023. The increase was driven primarily by merger-related and salaries and employee benefits expenses. The increase in merger-related expense was driven primarily by professional service expenses incurred for the Traditions acquisition and totaled $1.1 million for the three months ended September 30, 2024. Salaries and employee benefits expense increased $948 thousand driven primarily by $682 thousand in higher employee health insurance expense and $273 thousand higher base wages. In addition, equipment expense increased $144 thousand driven primarily by higher core processing expenses and incremental purchases of office equipment. Partially offsetting these increases, professional services decreased $208 thousand for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 driven primarily by lower recruiting expenses for talent acquisition and consulting expenses. Marketing and corporate relations declined $60 thousand in the current quarter primarily due to rebranding expenses incurred for the three months ended September 30, 2023.

    Noninterest expense for the three months ended September 30, 2024 increased $1.9 million, or 11.3%, from the three months ended June 30, 2024. The increase was driven primarily by merger-related and salaries and employee benefits expenses. Merger-related expense totaled $1.1 million for the three months ended September 30, 2024 compared to $23 thousand for the three months ended June 30, 2024. Salaries and employee benefits expense increased $591 thousand during the three months ended September 30, 2024 compared to the three months ended June 30, 2024 driven primarily by higher employee health insurance expense of $519 thousand. Additionally, equipment expense increased $128 thousand driven primarily by higher core processing and software maintenance expenses coupled with incremental purchases of office equipment. Professional services expense decreased $120 thousand during the three months ended September 30, 2024 compared to the three months ended June 30, 2024 driven primarily by lower transfer agent and audit expenses.

    Loans and Asset Quality

    Total loans outstanding were $1.68 billion at September 30, 2024, a decrease of $2.5 million, or 0.1%, from June 30, 2024 and an increase of $61.1 million, or 3.8%, from September 30, 2023. The decrease from June 30, 2024 was driven primarily by real estate construction. The increase from September 30, 2023 was driven primarily by growth in the commercial real estate portfolio in our core markets. Growth in the commercial real estate portfolio was spread throughout the Bank’s geographic footprint and across various property types. The commercial real estate portfolio grew $59.2 million, or 6.6%, in 2024. The collateral for these loans is primarily spread across our Pennsylvania and Maryland market areas. Despite the intense competition in the Corporation’s market areas, management continues to focus on asset quality and disciplined underwriting standards in the loan origination process.

    Asset quality metrics continue to be stable. The provision for credit losses was $81 thousand and the provision for unfunded commitments was $40 thousand for the three months ended September 30, 2024 compared to a reversal to the provision for credit losses of $3.0 million and a reversal to the provision for unfunded commitments of $259 thousand for the three months ended June 30, 2024. For the three months ended September 30, 2023, there was a provision for credit losses of $250 thousand and a $171 thousand reversal to the provision for unfunded commitments. The increase in the provision for credit losses and unfunded commitments for the three months ended September 30, 2024 compared to the prior quarter was driven primarily by a $3.2 million reversal of the provision for credit losses and unfunded commitments in the prior quarter and one long-standing commercial relationship in the healthcare industry, comprised of both owner-occupied commercial real estate and commercial and industrial loans, that moved into non-performing loan status during the current quarter.

    Non-performing loans were $6.6 million, or 0.39%, of total loans, net of unearned income, at September 30, 2024 compared to $3.1 million, or 0.19%, of total loans at June 30, 2024 and $3.6 million, or 0.22%, of total loans at September 30, 2023. The increase in non-performing loans at September 30, 2024 compared to the prior quarter was primarily the result of one long-standing commercial relationship in the healthcare industry, comprised of both owner-occupied commercial real estate and commercial and industrial loans, that moved into non-performing loan status during the current quarter. Annualized net charge-offs for the three months ended September 30, 2024 were 0.01% of total average loans compared to 0.00% and 0.03% for the three months ended June 30, 2024 and September 30, 2023, respectively.

    Deposits and Borrowings

    Deposits totaled $1.79 billion at September 30, 2024, a decrease of $47.3 million, or 2.6%, since June 30, 2024 and a decrease of $160.0 million, or 8.2%, from September 30, 2023. Included in total deposits were $1.33 billion interest-bearing deposits at September 30, 2024 which decreased $31.0 million, or 2.3%, from June 30, 2024 and decreased $58.0 million, or 4.2%, from September 30, 2023. Time deposits, included in interest-bearing deposits, increased $1.3 million, or 0.5%, and $43.5 million, or 20.4%, since June 30, 2024 and September 30, 2023, respectively. Total noninterest-bearing deposits were $463.5 million at September 30, 2024 compared to $479.7 million at June 30, 2024 and $565.5 million at September 30, 2023.

    Total borrowings were $293.1 million at September 30, 2024, a decrease of $11.2 million, or 3.7%, compared to June 30, 2024 and an increase of $139.7 million, or 91.1%, compared to September 30, 2023. A $25.0 million short-term borrowing was paid off during the quarter. The average rate on total borrowings was 4.31% for the three months ended September 30, 2024 compared to 4.48% for the three months ended June 30, 2024 and 3.83% for the three months ended September 30, 2023.

    Stockholders’ Equity, Dividends and Share Repurchases

    Total stockholders’ equity was $306.8 million at September 30, 2024 compared to $289.3 million at June 30, 2024 and $255.6 million at September 30, 2023. Tangible book value2 per share was $29.90, $27.82 and $23.80 at September 30, 2024, June 30, 2024 and September 30, 2023, respectively.

    As announced on Form 8-K on October 16, 2024, the Board of Directors approved and declared a regular quarterly cash dividend of $0.32 per share of ACNB Corporation common stock payable on December 13, 2024, to shareholders of record as of November 29, 2024. This per share amount reflects a $0.02, or 6.7%, increase over the same quarter of 2023.

    ACNB repurchased 2,642 shares of ACNB common stock during the three months ended September 30, 2024.

    About ACNB Corporation

    ACNB Corporation, headquartered in Gettysburg, PA, is the $2.42 billion financial holding company for the wholly-owned subsidiaries of ACNB Bank, Gettysburg, PA, and ACNB Insurance Services, Inc., Westminster, MD. Originally founded in 1857, ACNB Bank serves its marketplace with banking and wealth management services, including trust and retail brokerage, via a network of 27 community banking offices and two loan offices located in the Pennsylvania counties of Adams, Cumberland, Franklin, Lancaster and York and the Maryland counties of Baltimore, Carroll and Frederick. ACNB Insurance Services, Inc. is a full-service insurance agency with licenses in 46 states. The agency offers a broad range of property, casualty, health, life and disability insurance serving personal and commercial clients through office locations in Westminster and Jarrettsville, MD, and Gettysburg, PA. For more information regarding ACNB Corporation and its subsidiaries, please visit investor.acnb.com.

    SAFE HARBOR AND FORWARD-LOOKING STATEMENTS – Should there be a material subsequent event prior to the filing of the Quarterly Report on Form 10-Q with the Securities and Exchange Commission, the financial information reported in this press release is subject to change to reflect the subsequent event. In addition to historical information, this press release may contain forward-looking statements. Examples of forward-looking statements include, but are not limited to, (a) projections or statements regarding future earnings, expenses, net interest income, other income, earnings or loss per share, asset mix and quality, growth prospects, capital structure, and other financial terms, (b) statements of plans and objectives of Management or the Board of Directors, and (c) statements of assumptions, such as economic conditions in the Corporation’s market areas. Such forward-looking statements can be identified by the use of forward-looking terminology such as “believes”, “expects”, “may”, “intends”, “will”, “should”, “anticipates”, or the negative of any of the foregoing or other variations thereon or comparable terminology, or by discussion of strategy. Forward-looking statements are subject to certain risks and uncertainties such as national, regional and local economic conditions, competitive factors, and regulatory limitations. Actual results may differ materially from those projected in the forward-looking statements. Such risks, uncertainties, and other factors that could cause actual results and experience to differ from those projected include, but are not limited to, the following: short-term and long-term effects of inflation and rising costs on the Corporation, customers and economy; banking instability caused by bank failures and continuing financial uncertainty of various banks which may adversely impact the Corporation and its securities and loan values, deposit stability, capital adequacy, financial condition, operations, liquidity, and results of operations; effects of governmental and fiscal policies, as well as legislative and regulatory changes; effects of new laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) and their application with which the Corporation and its subsidiaries must comply; impacts of the capital and liquidity requirements of the Basel III standards; effects of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Financial Accounting Standards Board and other accounting standard setters; ineffectiveness of the business strategy due to changes in current or future market conditions; future actions or inactions of the United States government, including the effects of short-term and long-term federal budget and tax negotiations and a failure to increase the government debt limit or a prolonged shutdown of the federal government; effects of economic conditions particularly with regard to the negative impact of any pandemic, epidemic or health-related crisis and the responses thereto on the operations of the Corporation and current customers, specifically the effect of the economy on loan customers’ ability to repay loans; effects of competition, and of changes in laws and regulations on competition, including industry consolidation and development of competing financial products and services; inflation, securities market and monetary fluctuations; risks of changes in interest rates on the level and composition of deposits, loan demand, and the values of loan collateral, securities, and interest rate protection agreements, as well as interest rate risks; difficulties in acquisitions and integrating and operating acquired business operations, including information technology difficulties; challenges in establishing and maintaining operations in new markets; effects of technology changes; effects of general economic conditions and more specifically in the Corporation’s market areas; failure of assumptions underlying the establishment of reserves for credit losses and estimations of values of collateral and various financial assets and liabilities; acts of war or terrorism or geopolitical instability; disruption of credit and equity markets; ability to manage current levels of impaired assets; loss of certain key officers; ability to maintain the value and image of the Corporation’s brand and protect the Corporation’s intellectual property rights; continued relationships with major customers; and, potential impacts to the Corporation from continually evolving cybersecurity and other technological risks and attacks, including additional costs, reputational damage, regulatory penalties, and financial losses. Management considers subsequent events occurring after the balance sheet date for matters which may require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of the Corporation’s consolidated financial statements when filed with the SEC. Accordingly, the financial information in this announcement is subject to change. We caution readers not to place undue reliance on these forward-looking statements. They only reflect Management’s analysis as of this date. The Corporation does not revise or update these forward-looking statements to reflect events or changed circumstances. Please carefully review the risk factors described in other documents the Corporation files from time to time with the SEC, including the Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Please also carefully review any Current Reports on Form 8-K filed by the Corporation with the SEC.

    ACNB #2024-17
    October 24, 2024

     
    ACNB Corporation Financial Highlights
    Selected Financial Data by Respective Quarter End
    (Unaudited)
                       
    (Dollars in thousands, except per share data) September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023   September 30, 2023
    BALANCE SHEET DATA                  
    Assets $ 2,420,914     $ 2,457,753     $ 2,414,288     $ 2,418,847     $ 2,388,522  
    Investment securities   483,604       483,868       490,626       517,221       501,063  
    Total loans, net of unearned income   1,677,112       1,679,600       1,664,980       1,627,988       1,615,966  
    Allowance for credit losses   (17,214 )     (17,162 )     (20,172 )     (19,969 )     (19,264 )
    Deposits   1,791,317       1,838,588       1,835,224       1,861,813       1,951,359  
    Allowance for unfunded commitments   1,349       1,310       1,569       1,719       1,962  
    Borrowings   293,091       304,286       272,605       252,174       153,388  
    Stockholders’ equity   306,755       289,331       279,920       277,461       255,638  
    INCOME STATEMENT DATA                  
    Interest and dividend income $ 27,241     $ 26,869     $ 25,974     $ 25,284     $ 24,234  
    Interest expense   6,299       5,905       5,381       3,791       2,489  
    Net interest income   20,942       20,964       20,593       21,493       21,745  
    Provision for (reversal of ) credit losses   81       (2,990 )     223       786       250  
    Provision for (reversal of) unfunded commitments   40       (259 )     (151 )     (242 )     (171 )
    Net interest income after provisions for credit losses and unfunded commitments   20,821       24,213       20,521       20,949       21,666  
    Noninterest income   6,833       6,427       5,667       970       6,297  
    Noninterest expenses   18,244       16,391       17,662       17,173       16,336  
    Income before income taxes   9,410       14,249       8,526       4,746       11,627  
    Provision for income taxes   2,206       2,970       1,758       649       2,583  
    Net income $ 7,204     $ 11,279     $ 6,768     $ 4,097     $ 9,044  
    PROFITABILITY RATIOS                  
    Total loans, net of unearned income to deposits   93.62 %     91.35 %     90.72 %     87.44 %     82.81 %
    Return on average assets (annualized)   1.17       1.86       1.12       0.68       1.52  
    Return on average equity (annualized)   9.63       16.12       9.76       6.09       13.84  
    Efficiency ratio3   60.56       58.61       66.18       62.48       56.97  
    FTE Net interest margin   3.77       3.82       3.77       3.93       4.01  
    Yield on average earning assets   4.90       4.89       4.74       4.62       4.46  
    Yield on investment securities   2.59       2.65       2.70       2.36       2.24  
    Yield on total loans   5.56       5.53       5.37       5.29       5.16  
    Cost of funds   1.19       1.12       1.02       0.71       0.47  
    PER SHARE DATA                  
    Diluted earnings per share $ 0.84     $ 1.32     $ 0.80     $ 0.48     $ 1.06  
    Cash dividends paid per share   0.32       0.32       0.30       0.30       0.28  
    Tangible book value per share3   29.90       27.82       26.70       26.44       23.80  
    Tangible book value per share(excluding AOCI)4   33.87       33.28       32.21       31.74       31.43  
    CAPITAL RATIOS5                  
    Tier 1 leverage ratio   12.46 %     12.25 %     11.91 %     11.57 %     11.97 %
    Common equity tier 1 ratio   16.07       15.78       15.40       15.16       15.30  
    Tier 1 risk based capital ratio   16.36       16.07       15.69       15.45       15.59  
    Total risk based capital ratio   18.15       17.86       17.68       17.41       17.49  
    CREDIT QUALITY                  
    Net charge-offs to average loans outstanding (annualized)   0.01 %     0.00 %     0.00 %     0.02 %     0.03 %
    Total non-performing loans to total loans, net of unearned income6   0.39       0.19       0.24       0.26       0.22  
    Total non-performing assets to total assets7   0.29       0.14       0.18       0.19       0.17  
    Allowance for credit losses to total loans, net of unearned income   1.03       1.02       1.21       1.23       1.19  
                                           
     
    Consolidated Balance Sheet
    (Unaudited)
                 
    (Dollars in thousands, except per share data)   September 30,
    2024
      June 30,
    2024
      March 31,
    2024
    ASSETS            
    Cash and due from banks   $ 24,636     $ 26,681     $ 17,395  
    Interest-bearing deposits with banks     33,456       59,593       35,740  
    Total Cash and Cash Equivalents     58,092       86,274       53,135  
    Equity securities with readily determinable fair values     947       919       918  
    Investment securities available for sale, at estimated fair value     418,079       418,364       425,114  
    Investment securities held to maturity, at amortized cost (fair value $59,038, $57,026, and $58,084)     64,578       64,585       64,594  
    Loans held for sale     1,080       1,801       88  
    Total loans, net of unearned income     1,677,112       1,679,600       1,664,980  
    Less: Allowance for credit losses     (17,214 )     (17,162 )     (20,172 )
    Loans, net     1,659,898       1,662,438       1,644,808  
    Premises and equipment, net     25,542       25,760       25,916  
    Right of use asset     2,110       2,278       2,447  
    Restricted investment in bank stocks     10,853       11,853       10,877  
    Investment in bank-owned life insurance     81,344       80,841       80,348  
    Investments in low-income housing partnerships     909       940       971  
    Goodwill     44,185       44,185       44,185  
    Intangible assets, net     8,142       8,446       8,761  
    Foreclosed assets held for resale     406       406       467  
    Other assets     44,749       48,663       51,659  
    Total Assets   $ 2,420,914     $ 2,457,753     $ 2,414,288  
                 
    LIABILITIES AND STOCKHOLDERS’ EQUITY            
    Deposits:            
    Noninterest-bearing   $ 463,501     $ 479,726     $ 499,583  
    Interest-bearing     1,327,816       1,358,862       1,335,641  
    Total Deposits     1,791,317       1,838,588       1,835,224  
    Short-term borrowings     37,769       48,974       17,303  
    Long-term borrowings     255,322       255,312       255,302  
    Lease liability     2,110       2,278       2,447  
    Allowance for unfunded commitments     1,349       1,310       1,569  
    Other liabilities     26,292       21,960       22,523  
    Total Liabilities     2,114,159       2,168,422       2,134,368  
                 
    Stockholders’ Equity:            
    Preferred Stock, $2.50 par value; 20,000,000 shares authorized; no shares outstanding at September 30, 2024, June 30, 2024 and March 31, 2024                  
    Common stock, $2.50 par value; 20,000,000 shares authorized; 8,940,133, 8,934,495, and 8,928,441 shares issued; 8,548,625, 8,545,629, and 8,539,575 shares outstanding at September 30, 2024, June 30, 2024 and March 31, 2024, respectively     22,344       22,330       22,315  
    Treasury stock, at cost; 391,508, at September 30, 2024, and 388,866 at both June 30, 2024 and March 31, 2024     (11,203 )     (11,101 )     (11,101 )
    Additional paid-in capital     98,697       98,230       97,818  
    Retained earnings     230,752       226,271       217,712  
    Accumulated other comprehensive loss     (33,835 )     (46,399 )     (46,824 )
    Total Stockholders’ Equity     306,755       289,331       279,920  
    Total Liabilities and Stockholders’ Equity   $ 2,420,914     $ 2,457,753     $ 2,414,288  
                             
     
    Consolidated Income Statements
    (Unaudited)
           
      Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
    (Dollars in thousands, except per share data) 2024
      2023   2024   2023
    INTEREST AND DIVIDEND INCOME              
    Loans, including fees              
    Taxable $ 23,108     $ 20,285     $ 67,253     $ 58,130  
    Tax-exempt   311       361       943       1,069  
    Investment securities:              
    Taxable   2,617       2,477       8,193       8,451  
    Tax-exempt   284       284       852       883  
    Dividends   251       104       739       196  
    Other   670       723       2,104       2,627  
    Total Interest and Dividend Income   27,241       24,234       80,084       71,356  
    INTEREST EXPENSE              
    Deposits   3,112       928       7,915       1,887  
    Short-term borrowings   204       439       847       564  
    Long-term borrowings   2,983       1,122       8,823       2,078  
    Total Interest Expense   6,299       2,489       17,585       4,529  
    Net Interest Income   20,942       21,745       62,499       66,827  
    Provision for (reversal of) credit losses   81       250       (2,686 )     74  
    Provision for (reversal of) unfunded commitments   40       (171 )     (370 )     226  
    Net Interest Income after Provisions for (Reversal of) Credit Losses and Unfunded Commitments   20,821       21,666       65,555       66,527  
    NONINTEREST INCOME              
    Insurance commissions   2,787       2,629       7,649       7,371  
    Service charges on deposits   1,048       1,000       3,060       2,951  
    Wealth management   1,188       953       3,219       2,772  
    ATM debit card charges   828       845       2,488       2,502  
    Earnings on investment in bank-owned life insurance   503       473       1,473       1,399  
    Gain from mortgage loans held for sale   112             194       31  
    Net gains (losses) on sales or calls of investment securities               69       (739 )
    Net gains (losses) on equity securities   28       (27 )     19       (22 )
    Gain on assets held for sale         14             337  
    Other   339       410       756       873  
    Total Noninterest Income   6,833       6,297       18,927       17,475  
    NONINTEREST EXPENSES              
    Salaries and employee benefits   11,017       10,069       32,611       30,335  
    Equipment   1,698       1,554       4,997       4,784  
    Net occupancy   945       942       3,066       2,981  
    Professional services   409       617       1,554       1,600  
    FDIC and regulatory   365       388       1,088       932  
    Other tax   360       323       1,086       965  
    Intangible assets amortization   304       352       940       1,072  
    Supplies and postage   236       229       610       633  
    Marketing and corporate relations   99       159       275       472  
    Merger-related   1,137             1,160        
    Other   1,674       1,703       4,910       5,125  
    Total Noninterest Expenses   18,244       16,336       52,297       48,899  
    Income Before Income Taxes   9,410       11,627       32,185       35,103  
    Provision for income taxes   2,206       2,583       6,934       7,512  
    Net Income $ 7,204     $ 9,044     $ 25,251     $ 27,591  
    PER SHARE DATA              
    Basic earnings $ 0.85     $ 1.06     $ 2.97     $ 3.24  
    Diluted earnings $ 0.84     $ 1.06     $ 2.96     $ 3.23  
    Weighted average shares basic   8,507,140       8,517,917       8,500,860       8,518,006  
    Weighted average shares diluted   8,545,578       8,551,545       8,532,691       8,544,732  
                                   
     
    Average Balances, Income and Expenses, Yields and Rates
                         
        Three months ended   Three months ended   Three months ended   Three months ended   Three months ended
        September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023   September 30, 2023
    (Dollars in thousands)   Average
    Balance
      Interest8   Yield/
    Rate
      Average
    Balance
      Interest8   Yield/
    Rate
      Average
    Balance
      Interest8   Yield/
    Rate
      Average
    Balance
      Interest8   Yield/
    Rate
      Average
    Balance
      Interest8   Yield/
    Rate
    ASSETS                                                            
    Loans:                                                            
    Taxable   $ 1,618,879     $ 23,108     5.68 %   $ 1,612,380     $ 22,675     5.66 %   $ 1,573,109     $ 21,470     5.49 %   $ 1,559,411     $ 21,303     5.42 %   $ 1,520,134     $ 20,285     5.29 %
    Tax-exempt     62,401       394     2.51       64,276       396     2.48       65,825       404     2.47       69,058       425     2.44       73,995       457     2.45  
    Total Loans9     1,681,280       23,502     5.56       1,676,656       23,071     5.53       1,638,934       21,874     5.37       1,628,469       21,728     5.29       1,594,129       20,742     5.16  
    Investment Securities:                                                            
    Taxable     441,135       2,868     2.59       442,390       2,913     2.65       467,466       3,151     2.71       453,713       2,669     2.33       466,402       2,581     2.20  
    Tax-exempt     54,549       359     2.62       54,644       359     2.64       54,740       359     2.64       54,835       361     2.61       55,027       359     2.59  
    Total Investments10     495,684       3,227     2.59       497,034       3,272     2.65       522,206       3,510     2.70       508,548       3,030     2.36       521,429       2,940     2.24  
    Interest-bearing deposits with banks     48,794       670     5.46       50,851       684     5.41       54,156       750     5.57       50,225       691     5.46       53,324       723     5.38  
    Total Earning Assets     2,225,758       27,399     4.90       2,224,541       27,027     4.89       2,215,296       26,134     4.74       2,187,242       25,449     4.62       2,168,882       24,405     4.46  
    Cash and due from banks     21,684               21,041               20,540               21,578               23,783          
    Premises and equipment     25,716               25,903               26,102               25,983               25,980          
    Other assets     184,105               187,937               187,075               191,329               165,821          
    Allowance for credit losses     (17,147 )             (20,124 )             (19,963 )             (19,232 )             (19,101 )        
    Total Assets   $ 2,440,116             $ 2,439,298             $ 2,429,050             $ 2,406,900             $ 2,365,365          
    LIABILITIES                                                            
    Interest-bearing demand deposits   $ 518,368     $ 552     0.42 %   $ 513,163     $ 275     0.22 %   $ 512,701     $ 264     0.21 %   $ 560,510     $ 275     0.19 %   $ 571,314     $ 185     0.13 %
    Money markets     246,653       692     1.12       248,191       613     0.99       248,297       536     0.87       274,226       707     1.02       245,899       312     0.50  
    Savings deposits     318,291       26     0.03       327,274       30     0.04       335,215       29     0.03       348,244       28     0.03       366,398       30     0.03  
    Time deposits     258,053       1,842     2.84       263,045       1,725     2.64       244,481       1,331     2.19       221,778       798     1.43       212,159       401     0.75  
    Total Interest-Bearing Deposits     1,341,365       3,112     0.92       1,351,673       2,643     0.79       1,340,694       2,160     0.65       1,404,758       1,808     0.51       1,395,770       928     0.26  
    Short-term borrowings     38,666       204     2.10       37,256       304     3.28       47,084       339     2.90       56,872       334     2.33       66,942       439     2.60  
    Long-term borrowings     255,316       2,983     4.65       255,305       2,958     4.66       248,701       2,882     4.66       137,026       1,649     4.77       94,554       1,122     4.71  
    Total Borrowings     293,982       3,187     4.31       292,561       3,262     4.48       295,785       3,221     4.38       193,898       1,983     4.06       161,496       1,561     3.83  
    Total Interest-Bearing Liabilities     1,635,347       6,299     1.53       1,644,234       5,905     1.44       1,636,479       5,381     1.32       1,598,656       3,791     0.94       1,557,266       2,489     0.63  
    Noninterest-bearing demand deposits     477,350               485,351               486,648               519,797               541,995          
    Other liabilities     29,946               28,348               26,904               21,648               6,820          
    Stockholders’ Equity     297,473               281,365               279,019               266,799               259,284          
    Total Liabilities and Stockholders’ Equity   $ 2,440,116             $ 2,439,298             $ 2,429,050             $ 2,406,900             $ 2,365,365          
    Taxable Equivalent Net Interest Income         21,100               21,122               20,753               21,658               21,916      
    Taxable Equivalent Adjustment         (158 )             (158 )             (160 )             (165 )             (171 )    
    Net Interest Income       $ 20,942             $ 20,964             $ 20,593             $ 21,493             $ 21,745      
    Cost of Funds           1.19 %           1.12 %           1.02 %           0.71 %           0.47 %
    FTE Net Interest Margin           3.77 %           3.82 %           3.77 %           3.93 %           4.01 %
                                                                           
     
    Average Balances, Income and Expenses, Yields and Rates
           
      Nine Months Ended September 30, 2024   Nine Months Ended September 30, 2023
    (Dollars in thousands) Average
    Balance
      Interest11   Yield/
    Rate
      Average
    Balance
      Interest11   Yield/
    Rate
    ASSETS                      
    Loans:                      
    Taxable $ 1,601,520     $ 67,253     5.61 %   $ 1,479,690     $ 58,130     5.25 %
    Tax-exempt   64,161       1,194     2.49       75,657       1,353     2.39  
    Total Loans12   1,665,681       68,447     5.49       1,555,347       59,483     5.11  
    Investment Securities:                      
    Taxable   450,297       8,932     2.65       507,061       8,647     2.28  
    Tax-exempt   54,644       1,078     2.64       55,307       1,118     2.70  
    Total Investments13   504,941       10,010     2.65       562,368       9,765     2.32  
    Interest-bearing deposits with banks   51,258       2,104     5.48       71,645       2,627     4.90  
    Total Earning Assets   2,221,880       80,561     4.84       2,189,360       71,875     4.39  
    Cash and due from banks   21,091               30,891          
    Premises and equipment   25,939               26,415          
    Other assets   186,330               159,544          
    Allowance for credit losses   (19,071 )             (18,807 )        
    Total Assets $ 2,436,169             $ 2,387,403          
    LIABILITIES                      
    Interest-bearing demand deposits $ 514,757     $ 1,092     0.28 %   $ 580,180     $ 690     0.16 %
    Money markets   247,710       1,841     0.99       276,154       277     0.13  
    Savings deposits   326,895       84     0.03       385,753       94     0.03  
    Time deposits   255,203       4,898     2.56       234,951       826     0.47  
    Total Interest-Bearing Deposits   1,344,565       7,915     0.79       1,477,038       1,887     0.17  
    Short-term borrowings   40,993       847     2.76       47,852       564     1.58  
    Long-term borrowings   253,116       8,823     4.66       58,333       2,078     4.76  
    Total Borrowings   294,109       9,670     4.39       106,185       2,642     3.33  
    Total Interest-Bearing Liabilities   1,638,674       17,585     1.43       1,583,223       4,529     0.38  
    Noninterest-bearing demand deposits   483,095               550,206          
    Other liabilities   28,406               (2,552 )        
    Stockholders’ Equity   285,994               256,526          
    Total Liabilities and Stockholders’ Equity $ 2,436,169             $ 2,387,403          
    Taxable Equivalent Net Interest Income       62,976               67,346      
    Taxable Equivalent Adjustment       (477 )             (519 )    
    Net Interest Income     $ 62,499             $ 66,827      
    Cost of Funds         1.11 %           0.28 %
    FTE Net Interest Margin         3.79 %           4.11 %
                               

    Non-GAAP Reconciliation
    Note: The Corporation has presented the following non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation’s results of operations and financial condition. These non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation’s industry. Investors should recognize that the Corporation’s presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other corporations. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety.

        Three Months Ended
    (Dollars in thousands, except per share data)   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023   September 30, 2023
    Tangible book value per share                    
    Stockholders’ equity   $ 306,755     $ 289,331     $ 279,920     $ 277,461     $ 255,638  
    Less: Goodwill and intangible assets     (52,327 )     (52,631 )     (52,946 )     (53,267 )     (53,619 )
    Tangible common stockholders’ equity (numerator)   $ 254,428     $ 236,700     $ 226,974     $ 224,194     $ 202,019  
    Shares outstanding, less unvested shares, end of period (denominator)     8,510,187       8,507,191       8,501,137       8,478,460       8,488,446  
    Tangible book value per share   $ 29.90     $ 27.82     $ 26.70     $ 26.44     $ 23.80  
    Tangible book value per share (excluding AOCI)                    
    Tangible common stockholders’ equity   $ 254,428     $ 236,700     $ 226,974     $ 224,194     $ 202,019  
    Less: AOCI     (33,835 )     (46,399 )     (46,824 )     (44,909 )     (64,767 )
    Tangible equity (excluding AOCI)   $ 288,263     $ 283,099     $ 273,798     $ 269,103     $ 266,786  
    Tangible book value per share (excluding AOCI)   $ 33.87     $ 33.28     $ 32.21     $ 31.74     $ 31.43  
    Tangible common equity to tangible assets (TCE/TA Ratio)                    
    Tangible common stockholders’ equity (numerator)   $ 254,428     $ 236,700     $ 226,974     $ 224,194     $ 202,019  
    Total assets   $ 2,420,914     $ 2,457,753     $ 2,414,288     $ 2,418,847     $ 2,388,522  
    Less: Goodwill and intangible assets     (52,327 )     (52,631 )     (52,946 )     (53,267 )     (53,619 )
    Total tangible assets (denominator)   $ 2,368,587     $ 2,405,122     $ 2,361,342     $ 2,365,580     $ 2,334,903  
    Tangible common equity to tangible assets     10.74 %     9.84 %     9.61 %     9.48 %     8.65 %
    Efficiency Ratio                    
    Noninterest expense   $ 18,244     $ 16,391     $ 17,662     $ 17,173     $ 16,336  
    Less: Intangible amortization     304       315       321       352       352  
    Less: Merger-related expense     1,137       23                    
    Noninterest expense (numerator)   $ 16,803     $ 16,053     $ 17,341     $ 16,821     $ 15,984  
    Net interest income   $ 20,942     $ 20,964     $ 20,593     $ 21,493     $ 21,745  
    Plus: Total noninterest income     6,833       6,427       5,667       970       6,297  
    Less: Net gains (losses) on sales or calls of securities                 69       (4,501 )      
    Less: Net gains (losses) on equity securities     28       1       (10 )     40       (27 )
    Less: Gain on assets held for sale                             14  
    Total revenue (denominator)   $ 27,747     $ 27,390     $ 26,201     $ 26,924     $ 28,055  
    Efficiency ratio     60.56 %     58.61 %     66.18 %     62.48 %     56.97 %
                                             

    Non-GAAP Reconciliation

    Note: The Corporation has presented the following non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation’s results of operations and financial condition. These non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation’s industry. Investors should recognize that the Corporation’s presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other corporations. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety.

    (Dollars in thousands)   Three Months Ended
    September 30, 2024
    Core return on average assets    
    Net income   $ 7,204  
    Merger-related expense, net of taxes     879  
    Core net income (numerator)   $ 8,083  
    Average assets (denominator)   $ 2,440,116  
    Core return on average assets     1.32 %
         
    Core return on average equity    
    Core net income (numerator)   $ 8,083  
    Average equity (denominator)   $ 297,473  
    Core return on average equity     10.81 %
             

    1 Non-GAAP financial measure. Please refer to the calculation on the pages titled “Non-GAAP Reconciliation” at the end of this document.
    2 Non-GAAP financial measure. Please refer to the calculation on the pages titled “Non-GAAP Reconciliation” at the end of this document.
    3 Non-GAAP financial measure. Please refer to the calculation on the pages titled “Non-GAAP Reconciliation” at the end of this document.
    4 Accumulated Other Comprehensive Loss.
    5 Regulatory capital ratios as of September 30, 2024 are preliminary.
    6 Non-performing Loans consists of loans on nonaccrual status and loans greater than 90 days past due and still accruing interest.
    7 Non-performing Assets consists of Non-performing Loans and Foreclosed assets held for resale.
    8 Income on interest-earning assets has been computed on a fully taxable equivalent (FTE) basis using the 21% federal income tax statutory rate.
    9 Average balances include non-accrual loans and are net of unearned income.
    10 Average balances of investment securities is computed at fair value.
    11 Income on interest-earning assets has been computed on a fully taxable equivalent basis (FTE) using the 21% federal income tax statutory rate.
    12 Average balances include non-accrual loans and are net of unearned income.
    13 Average balances of investment securities is computed at fair value.

       
    Contact: Jason H. Weber
      EVP/Treasurer &
      Chief Financial Officer
      717.339.5090
      jweber@acnb.com
       

    The MIL Network

  • MIL-OSI: Ozop Energy Solutions, Inc. Selected as National Field Service Partner for Leviton through Ozop Engineering and Design

    Source: GlobeNewswire (MIL-OSI)

    Warwick, NY, Oct. 24, 2024 (GLOBE NEWSWIRE) — Ozop Energy Solutions, Inc. (OZSC) is proud to announce that its subsidiary, Ozop Engineering and Design (OED), has been selected by Leviton Manufacturing Co., Inc. to serve as field service technicians for their advanced lighting control systems. This significantly enhances OED’s profile within the lighting industry, positioning it as a go-to service provider for sophisticated control systems across the United States.

    Elevating OED’s National Presence

    The agreement marks a major expansion of OED’s role in the lighting controls market. As a field service representative, OED is responsible for installation verification, system commissioning, troubleshooting, and ongoing maintenance across a broad range of Leviton projects nationwide. This role extends OED’s footprint, providing access to new territories and reinforcing its presence on a national level.

    This partnership not only elevates OED’s reach but also demonstrates its capability to support high-demand, large-scale operations. By being entrusted with this critical role, OED is solidifying its reputation as a trusted partner capable of meeting rigorous standards in the lighting control industry.

    Specialized Training for GreenMAX and DRC Systems

    In preparation for this role, OED’s technicians have received specialized training and have been certified on Leviton’s GreenMAX and GreenMAX DRC systems. This training included in-depth technical education on system installation, programming, and troubleshooting, enabling OED to deliver best-in-class service quality. Such training underlines OED’s commitment to continuous improvement and its focus on staying ahead in a rapidly evolving industry. With these certifications, OED is well-equipped to manage Leviton’s sophisticated systems, ensuring reliable performance for clients nationwide.

    A Strategic Growth Opportunity for OED

    This collaboration with Leviton represents a strategic growth opportunity for OED, allowing the company to diversify and enhance its revenue streams by taking on a role of national significance. It supports OED’s vision to grow as a premier provider of lighting controls commissioning and field services, building upon its established expertise in handling complex systems. This partnership highlights OED’s technical expertise and underscores its capacity to collaborate with major industry players.

    Brian Conway, CEO of Ozop Energy Solutions, commented:

    “We are extremely proud to have been selected by Leviton as a national field service representative. This is a significant step forward for Ozop Engineering and Design, expanding our capabilities and our footprint across the country. Our technicians are trained and ready to handle the most sophisticated lighting control systems. This marks a major milestone in OED’s growth trajectory. We see this as an opportunity to demonstrate our expertise and dedication to high-quality field service across the industry.”

    Tom Leonard, Vice President and General Manager of Leviton Lighting & Controls, noted:

    “Leviton is pleased to have OZOP Engineering and Design join our team of Field Service Centers. Their proven experience and technical expertise make them ideal partners to support Leviton’s commitment to delivering exceptional customer experiences. We are certain this partnership will enhance our service capabilities nationwide and contribute to the success of our projects.”

    Supporting OED’s Broader Vision

    This partnership aligns with Ozop Engineering and Design’s broader vision of becoming a dominant player in the lighting control industry, known for reliability and technical excellence. By partnering with one of the leading manufacturers in the sector, OED gains the opportunity to showcase its capabilities on a larger stage, reinforcing its standing as an expert provider of comprehensive field services.

    About Ozop Energy Solutions.

    Ozop Energy Solutions (Ozop Energy Solutions (http://ozopenergy.com/) is the flagship company that oversees a wide variety of products in various stages of development in the renewable energy sector. Our strategy focuses on capturing a significant share of the rapidly growing renewable energy market as a provider of assets and infrastructure needed to store energy.

    About Automated Room Controls, Inc.

    Also known as ARC, Inc. its mission is to deliver cutting-edge technology that simplifies complex control needs, ensuring seamless integration and exceptional performance. We aim to lead the industry by continuously innovating and providing solutions that meet the evolving demands of our customers. Our vision is to make control systems smarter, more efficient, and more accessible to everyone.

    www.ARControl.com

    About Ozop Energy Systems, Inc.

    Ozop Energy Systems is a manufacturer and distributor of Renewable Energy products in the Energy Storage, Solar, Microgrids, and EV charging Station space. We offer a broad portfolio of Renewable Energy products at competitive prices with a commitment to customer satisfaction from selection, to ordering, shipping, and delivery.

    About Ozop Engineering and Design

    Ozop Engineering and Design engineers’ energy efficient, easy to install and use, digital lighting controls solutions for commercial buildings, campuses, and sports complexes throughout North America. Products include relays panels, controllers, occupancy/vacancy sensors, daylight sensors and wall switch stations. Ozop has a dedicated design team that produces system drawings and a technical support group for product questions and onsite system commissioning. Our mission is to be recognized for our deep understanding of power management systems and ability to provide the right solution for each facility.

    www.ozopengineering.com

    About Ozop Capital Partners

    Ozop Capital Partners, Inc. is a wholly owned subsidiary of the Company, and wholly owns EV Insurance Company, Inc. (“EVIC”). EVIC, DBA Ozop Plus is licensed as a captive insurer that reinsures. www.OzopPlus.com

    https://twitter.com/OzopEnergy

    https://www.facebook.com/OzopEnergy/

    About Leviton Lighting + Controls

    Leviton Lighting & Controls brings innovative lighting solutions to life in commercial, healthcare, industrial, and residential buildings with an extensive lighting and controls designed towards enhancing people’s lives. With a collection of five of the most well-respected lighting brands on the market bolstered by a commitment to continuously improving the controls and technology that power them, Leviton Lighting & Controls exceeds customers’ expectations every day. Leviton is a single-source partner of highly innovative and energy-efficient products, backed by unsurpassed customer service and support. For more information, visit https://www.leviton.com/en/solutions/commercial-lighting-and-controls.

    About Leviton

    Every day, Leviton is engineering possibilities that make the future happen, meeting the needs of today’s residential, commercial, and industrial customers globally. From electrical, to lighting, to data networks, and energy management, Leviton develops thoughtful solutions that help make its customers’ lives easier, safer, more efficient and more productive. Driven by its commitment to its customers, the ingenuity of its employees and the safety and quality of its products and solutions, with Leviton, the FUTURE IS ON. For more information, visit www.leviton.com, www.facebook.com/leviton, www.twitter.com/leviton, or www.youtube.com/Levitonmfg.

    Safe Harbor Statement

    “This press release contains or may contain, among other things, certain forward-looking statements. Such forward-looking statements involve significant risks and uncertainties. Such statements may include, without limitation, statements with respect to the company’s plans, objectives, projections, expectations and intentions and other statements identified by words such as “projects,” “may,” “will,” “could,” “would,” “should,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “potential” or similar expressions. These statements are based upon the current beliefs and expectations of the company’s management and are subject to significant risks and uncertainties, including those detailed in the company’s filings with the Securities and Exchange Commission. Actual results may differ significantly from those set forth in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond the company’s control). The company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.”

    Investor Relations Contact – Ozop
    The Waypoint Refinery, LLC
    845-397-2956
    Visit our Discord:
    https://discord.gg/waypoint

    The MIL Network

  • MIL-OSI: West Bancorporation, Inc. Announces Third Quarter 2024 Financial Results and Declares Quarterly Dividend

    Source: GlobeNewswire (MIL-OSI)

    WEST DES MOINES, Iowa, Oct. 24, 2024 (GLOBE NEWSWIRE) — West Bancorporation, Inc. (Nasdaq: WTBA; the “Company”), parent company of West Bank, today reported third quarter 2024 net income of $6.0 million, or $0.35 per diluted common share, compared to second quarter 2024 net income of $5.2 million, or $0.31 per diluted common share, and third quarter 2023 net income of $5.9 million, or $0.35 per diluted common share. On October 23, 2024, the Company’s Board of Directors declared a regular quarterly dividend of $0.25 per common share. The dividend is payable on November 20, 2024, to stockholders of record on November 6, 2024.

    David Nelson, President and Chief Executive Officer of the Company, commented, “Our third quarter results include moderate growth in loans and core deposits along with an increase in quarterly net interest income and net interest margin. Our credit quality remains pristine as a result of our disciplined loan growth and credit risk management practices. The ratio of nonperforming assets to total assets remains negligible at 0.01%.”

    David Nelson added, “West Bank is focused on initiatives that will drive sustained core profitability. Those initiatives are centered around our culture of building strong relationships and providing exceptional personal service to drive growth in both commercial and consumer banking services.”

    Third Quarter 2024 Financial Highlights

        Quarter Ended
    September 30, 2024
      Nine Months Ended
    September 30, 2024
      Net income (in thousands) $5,952     $16,953  
      Return on average equity   10.41%       10.18%  
      Return on average assets   0.60%       0.59%  
      Efficiency ratio (a non-GAAP measure)   63.28%       64.16%  
      Nonperforming assets to total assets   0.01%       0.01%  
                     

    Third Quarter 2024 Compared to Second Quarter 2024 Overview

    • Loans increased $22.4 million in the third quarter of 2024, or 3.0 percent annualized. The increase is primarily due to the funding of previously committed construction loans.
    • A provision for credit losses on loans of $1.0 million was recorded in the third quarter of 2024, compared to no provision in the second quarter of 2024. A negative provision for credit losses on unfunded commitments of $1.0 million was recorded in the third quarter of 2024, compared to no provision in the second quarter of 2024. The provision for loans in the third quarter of 2024 was primarily due to changes in the forecasted loss rates due to increases in forecasted unemployment rates. The negative provision for unfunded commitments was primarily due to the decline in unfunded commitments resulting primarily from the funding of construction loans.
    • The allowance for credit losses to total loans was 0.97 percent and 0.95 percent at September 30, 2024 and June 30, 2024, respectively. Nonaccrual loans at September 30, 2024 consisted of two loans with a total balance of $233 thousand, compared to three loans with a balance of $521 thousand at June 30, 2024.
    • Deposits increased $97.6 million, or 3.1 percent, in the third quarter of 2024. Brokered deposits totaled $425.9 million at September 30, 2024, compared to $370.3 million at June 30, 2024, an increase of $55.6 million. Excluding brokered deposits, deposits increased $42.0 million during the third quarter of 2024. As of September 30, 2024, estimated uninsured deposits, which exclude deposits in the IntraFi® reciprocal network, brokered deposits and public funds protected by state programs, accounted for approximately 27.8 percent of total deposits.
    • Borrowed funds decreased to $438.8 million at September 30, 2024, compared to $525.5 million at June 30, 2024. The decrease was primarily due to the balance of federal funds purchased and other short-term borrowings decreasing to $0 as of September 30, 2024, from $85.5 million as of June 30, 2024 as a result of growth in deposits.
    • The efficiency ratio (a non-GAAP measure) was 63.28 percent for the third quarter of 2024, compared to 67.14 percent for the second quarter of 2024. The improvement in the efficiency ratio was primarily due to the increase in net interest income. In the third quarter of 2024, the increase in interest income on loans outpaced the increase in interest expense on deposits and borrowed funds.
    • Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 1.91 percent for the third quarter of 2024, compared to 1.86 percent for the second quarter of 2024. Net interest income for the third quarter of 2024 was $18.0 million, compared to $17.2 million for the second quarter of 2024.
    • The tangible common equity ratio was 5.90 percent as of September 30, 2024, compared to 5.65 percent as of June 30, 2024. The increase in the tangible common equity ratio was driven by retained net income and the decrease in accumulated other comprehensive loss, which was primarily the result of the increase in the market value of our available for sale investment portfolio.

    Third Quarter 2024 Compared to Third Quarter 2023 Overview

    • Loans increased $171.4 million at September 30, 2024, or 6.0 percent, compared to September 30, 2023. The increase is primarily due to increases in commercial real estate loans and the funding of previously committed construction loans.
    • Deposits increased to $3.3 billion at September 30, 2024, compared to $2.8 billion at September 30, 2023. Included in deposits were brokered deposits totaling $425.9 million at September 30, 2024, compared to $237.0 million at September 30, 2023. Brokered deposits were used to reduce short-term borrowed funds and to fund loan growth. Excluding brokered deposits, deposits increased $334.2 million, or 13.3 percent, as of September 30, 2024, compared to September 30, 2023. Deposit growth included a mix of public funds and commercial and consumer deposits.
    • Borrowed funds decreased to $438.8 million at September 30, 2024, compared to $705.1 million at September 30, 2023. The decrease was primarily attributable to a decrease of $261.5 million in federal funds purchased and other short-term borrowings as a result of growth in deposits.
    • The efficiency ratio (a non-GAAP measure) was 63.28 percent for the third quarter of 2024, compared to 60.83 percent for the third quarter of 2023. The increase in the efficiency ratio in the third quarter of 2024 compared to the third quarter of 2023 was primarily due to the increase in noninterest expense, partially offset by an increase in net interest income. Occupancy and equipment expense increased primarily due to the occupancy costs associated with the Company’s newly constructed headquarters.
    • Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 1.91 percent for both the third quarter of 2024 and the third quarter of 2023. Net interest income for the third quarter of 2024 was $18.0 million, compared to $16.6 million for the third quarter of 2023.

    The Company filed its report on Form 10-Q with the Securities and Exchange Commission today. Please refer to that document for a more in-depth discussion of the Company’s financial results. The Form 10-Q is available on the Investor Relations section of West Bank’s website at www.westbankstrong.com.

    The Company will discuss its results in a conference call scheduled for 2:00 p.m. Central Time on Thursday, October 24, 2024. The telephone number for the conference call is 800-715-9871. The conference ID for the conference call is 7846129. A recording of the call will be available until November 7, 2024, by dialing 800-770-2030. The conference ID for the replay call is 7846129, followed by the # key.

    About West Bancorporation, Inc. (Nasdaq: WTBA)

    West Bancorporation, Inc. is headquartered in West Des Moines, Iowa. Serving customers since 1893, West Bank, a wholly-owned subsidiary of West Bancorporation, Inc., is a community bank that focuses on lending, deposit services, and trust services for small- to medium-sized businesses and consumers. West Bank has six offices in the Des Moines, Iowa metropolitan area, one office in Coralville, Iowa, and four offices in Minnesota in the cities of Rochester, Owatonna, Mankato and St. Cloud.

    Certain statements in this report, other than purely historical information, including estimates, projections, statements relating to the Company’s business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are “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 may appear throughout this report. These forward-looking statements are generally identified by the words “believes,” “expects,” “intends,” “anticipates,” “projects,” “future,” “confident,” “may,” “should,” “will,” “strategy,” “plan,” “opportunity,” “will be,” “will likely result,” “will continue” or similar references, or references to estimates, predictions or future events. Such forward-looking statements are based upon certain underlying assumptions, risks and uncertainties. Because of the possibility that the underlying assumptions are incorrect or do not materialize as expected in the future, actual results could differ materially from these forward-looking statements. Risks and uncertainties that may affect future results include: interest rate risk, including the effects of changes in interest rates; fluctuations in the values of the securities held in our investment portfolio, including as a result of changes in interest rates; competitive pressures, including from non-bank competitors such as credit unions, “fintech” companies and digital asset service providers; pricing pressures on loans and deposits; our ability to successfully manage liquidity risk; changes in credit and other risks posed by the Company’s loan portfolio, including declines in commercial or residential real estate values or changes in the allowance for credit losses dictated by new market conditions, accounting standards or regulatory requirements; the concentration of large deposits from certain clients, including those who have balances above current FDIC insurance limits; changes in local, national and international economic conditions, including the level and impact of inflation and possible recession; the effects of recent developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time that resulted in recent bank failures; changes in legal and regulatory requirements, limitations and costs including in response to the recent bank failures; changes in customers’ acceptance of the Company’s products and services; the occurrence of fraudulent activity, breaches or failures of our or our third-party partners’ information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools; unexpected outcomes of existing or new litigation involving the Company; the monetary, trade and other regulatory policies of the U.S. government; acts of war or terrorism, including the ongoing Israeli-Palestinian conflict and the Russian invasion of Ukraine, widespread disease or pandemics, or other adverse external events; risks related to climate change and the negative impact it may have on our customers and their businesses; changes to U.S. tax laws, regulations and guidance; potential changes in federal policy and at regulatory agencies as a result of the upcoming 2024 presidential election; talent and labor shortages; and any other risks described in the “Risk Factors” sections of reports filed by the Company with the Securities and Exchange Commission. The Company undertakes no obligation to revise or update such forward-looking statements to reflect current or future events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

    For more information contact:
    Jane Funk, Executive Vice President, Treasurer and Chief Financial Officer (515) 222-5766

                 
    WEST BANCORPORATION, INC. AND SUBSIDIARY            
    Financial Information (unaudited)                    
    (in thousands)                    
        As of
    CONDENSED BALANCE SHEETS   September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Assets                    
    Cash and due from banks   $ 34,157     $ 27,994     $ 27,071     $ 33,245     $ 18,819  
    Interest-bearing deposits     123,646       121,825       120,946       32,112       1,802  
    Securities available for sale, at fair value     597,745       588,452       605,735       623,919       609,365  
    Federal Home Loan Bank stock, at cost     17,195       21,065       26,181       22,957       26,691  
    Loans     3,021,221       2,998,774       2,980,133       2,927,535       2,849,777  
    Allowance for credit losses     (29,419 )     (28,422 )     (28,373 )     (28,342 )     (28,147 )
    Loans, net     2,991,802       2,970,352       2,951,760       2,899,193       2,821,630  
    Premises and equipment, net     106,771       101,965       95,880       86,399       75,675  
    Bank-owned life insurance     44,703       44,416       44,138       43,864       43,589  
    Other assets     72,547       89,046       90,981       84,069       104,329  
    Total assets   $ 3,988,566     $ 3,965,115     $ 3,962,692     $ 3,825,758     $ 3,701,900  
                         
    Liabilities and Stockholders’ Equity                    
    Deposits   $ 3,278,553     $ 3,180,922     $ 3,065,030     $ 2,973,779     $ 2,755,529  
    Federal funds purchased and other short-term borrowings           85,500       198,500       150,270       261,510  
    Other borrowings     438,814       439,998       441,183       442,367       443,552  
    Other liabilities     35,846       34,812       34,223       34,299       37,376  
    Stockholders’ equity     235,353       223,883       223,756       225,043       203,933  
    Total liabilities and stockholders’ equity   $ 3,988,566     $ 3,965,115     $ 3,962,692     $ 3,825,758     $ 3,701,900  
                         
        For the Quarter Ended
    AVERAGE BALANCES   September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Assets   $ 3,973,824     $ 3,964,109     $ 3,812,199     $ 3,706,497     $ 3,679,541  
    Loans     2,991,272       2,994,492       2,949,672       2,857,594       2,813,213  
    Deposits     3,258,669       3,123,282       2,956,635       2,878,676       2,764,184  
    Stockholders’ equity     227,513       219,771       219,835       201,920       215,230  
                                             
                 
    WEST BANCORPORATION, INC. AND SUBSIDIARY            
    Financial Information (unaudited)                    
    (in thousands)                    
        As of
    LOANS   September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Commercial   $ 512,884     $ 526,589     $ 544,293     $ 531,594     $ 529,293  
    Real estate:                    
    Construction, land and land development     520,516       496,864       465,247       413,477       399,253  
    1-4 family residential first mortgages     89,749       92,230       108,065       106,688       89,713  
    Home equity     17,140       15,264       14,020       14,618       12,429  
    Commercial     1,870,132       1,856,301       1,839,580       1,854,510       1,812,816  
    Consumer and other     14,261       15,234       12,844       10,930       10,123  
          3,024,682       3,002,482       2,984,049       2,931,817       2,853,627  
    Net unamortized fees and costs     (3,461 )     (3,708 )     (3,916 )     (4,282 )     (3,850 )
    Total loans   $ 3,021,221     $ 2,998,774     $ 2,980,133     $ 2,927,535     $ 2,849,777  
    Less: allowance for credit losses     (29,419 )     (28,422 )     (28,373 )     (28,342 )     (28,147 )
    Net loans   $ 2,991,802     $ 2,970,352     $ 2,951,760     $ 2,899,193     $ 2,821,630  
                         
    CREDIT QUALITY                    
    Pass   $ 3,016,493     $ 2,994,310     $ 2,983,618     $ 2,931,377     $ 2,853,100  
    Watch     7,956       7,651       142       144       184  
    Substandard     233       521       289       296       343  
    Doubtful                              
    Total loans   $ 3,024,682     $ 3,002,482     $ 2,984,049     $ 2,931,817     $ 2,853,627  
                         
    DEPOSITS                    
    Noninterest-bearing demand   $ 525,332     $ 530,441     $ 521,377     $ 548,726     $ 551,688  
    Interest-bearing demand     438,402       443,658       449,946       481,207       417,802  
    Savings and money market – non-brokered     1,481,840       1,483,264       1,315,698       1,315,741       1,249,309  
    Money market – brokered     123,780       97,259       119,840       124,335       99,282  
    Total nonmaturity deposits     2,569,354       2,554,622       2,406,861       2,470,009       2,318,081  
    Time – non-brokered     407,109       353,269       381,646       322,694       299,683  
    Time – brokered     302,090       273,031       276,523       181,076       137,765  
    Total time deposits     709,199       626,300       658,169       503,770       437,448  
    Total deposits   $ 3,278,553     $ 3,180,922     $ 3,065,030     $ 2,973,779     $ 2,755,529  
                         
    BORROWINGS                    
    Federal funds purchased and other short-term borrowings   $     $ 85,500     $ 198,500     $ 150,270     $ 261,510  
    Subordinated notes, net     79,828       79,762       79,697       79,631       79,566  
    Federal Home Loan Bank advances     315,000       315,000       315,000       315,000       315,000  
    Long-term debt     43,986       45,236       46,486       47,736       48,986  
    Total borrowings   $ 438,814     $ 525,498     $ 639,683     $ 592,637     $ 705,062  
                         
    STOCKHOLDERS’ EQUITY                    
    Preferred stock   $     $     $     $     $  
    Common stock     3,000       3,000       3,000       3,000       3,000  
    Additional paid-in capital     34,960       34,322       33,685       34,197       33,487  
    Retained earnings     275,724       273,981       272,997       271,369       271,025  
    Accumulated other comprehensive loss     (78,331 )     (87,420 )     (85,926 )     (83,523 )     (103,579 )
    Total stockholders’ equity   $ 235,353     $ 223,883     $ 223,756     $ 225,043     $ 203,933  
                                             
                     
    WEST BANCORPORATION, INC. AND SUBSIDIARY                
    Financial Information (unaudited)                    
    (in thousands)                    
        For the Quarter Ended
    CONSOLIDATED STATEMENTS OF INCOME   September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Interest income:                    
    Loans, including fees   $ 42,504     $ 41,700     $ 40,196     $ 38,208     $ 36,756  
    Securities:                    
    Taxable     3,261       3,394       3,416       3,521       3,427  
    Tax-exempt     806       808       810       869       880  
    Interest-bearing deposits     2,041       1,666       148       85       29  
    Total interest income     48,612       47,568       44,570       42,683       41,092  
    Interest expense:                    
    Deposits     26,076       23,943       21,559       20,024       17,156  
    Federal funds purchased and other short-term borrowings     115       1,950       2,183       2,024       3,165  
    Subordinated notes     1,112       1,105       1,108       1,114       1,113  
    Federal Home Loan Bank advances     2,748       2,718       2,325       2,482       2,329  
    Long-term debt     601       622       645       678       695  
    Total interest expense     30,652       30,338       27,820       26,322       24,458  
    Net interest income     17,960       17,230       16,750       16,361       16,634  
    Credit loss expense                       500       200  
    Net interest income after credit loss expense     17,960       17,230       16,750       15,861       16,434  
    Noninterest income:                    
    Service charges on deposit accounts     459       462       460       476       463  
    Debit card usage fees     500       490       458       488       495  
    Trust services     828       794       776       782       831  
    Increase in cash value of bank-owned life insurance     287       278       274       275       262  
    Loan swap fees                             431  
    Realized securities losses, net                       (431 )      
    Other income     285       322       331       308       340  
    Total noninterest income     2,359       2,346       2,299       1,898       2,822  
    Noninterest expense:                    
    Salaries and employee benefits     6,823       7,169       6,489       6,468       6,696  
    Occupancy and equipment     1,926       1,852       1,447       1,499       1,359  
    Data processing     771       754       714       723       703  
    Technology and software     722       731       700       676       573  
    FDIC insurance     711       631       519       475       439  
    Professional fees     239       244       257       235       254  
    Director fees     223       236       199       240       196  
    Other expenses     1,477       1,577       1,543       1,845       1,685  
    Total noninterest expense     12,892       13,194       11,868       12,161       11,905  
    Income before income taxes     7,427       6,382       7,181       5,598       7,351  
    Income taxes     1,475       1,190       1,372       1,073       1,445  
    Net income   $ 5,952     $ 5,192     $ 5,809     $ 4,525     $ 5,906  
                         
    Basic earnings per common share   $ 0.35     $ 0.31     $ 0.35     $ 0.27     $ 0.35  
    Diluted earnings per common share   $ 0.35     $ 0.31     $ 0.35     $ 0.27     $ 0.35  
                                             
         
    WEST BANCORPORATION, INC. AND SUBSIDIARY    
    Financial Information (unaudited)        
    (in thousands)        
        For the Nine Months Ended
    CONSOLIDATED STATEMENTS OF INCOME   September 30, 2024   September 30, 2023
    Interest income:        
    Loans, including fees   $ 124,400     $ 104,715  
    Securities:        
    Taxable     10,071       10,175  
    Tax-exempt     2,424       2,648  
    Interest-bearing deposits     3,855       84  
    Total interest income     140,750       117,622  
    Interest expense:        
    Deposits     71,578       46,772  
    Federal funds purchased and other short-term borrowings     4,248       7,508  
    Subordinated notes     3,325       3,328  
    Federal Home Loan Bank advances     7,791       5,212  
    Long-term debt     1,868       2,132  
    Total interest expense     88,810       64,952  
    Net interest income     51,940       52,670  
    Credit loss expense           200  
    Net interest income after credit loss expense     51,940       52,470  
    Noninterest income:        
    Service charges on deposit accounts     1,381       1,383  
    Debit card usage fees     1,448       1,492  
    Trust services     2,398       2,286  
    Increase in cash value of bank-owned life insurance     839       769  
    Loan swap fees           431  
    Gain from bank-owned life insurance           691  
    Other income     938       1,116  
    Total noninterest income     7,004       8,168  
    Noninterest expense:        
    Salaries and employee benefits     20,481       20,592  
    Occupancy and equipment     5,225       4,008  
    Data processing     2,239       2,067  
    Technology and software     2,153       1,665  
    FDIC insurance     1,861       1,275  
    Professional fees     740       791  
    Director fees     658       652  
    Other expenses     4,597       5,400  
    Total noninterest expense     37,954       36,450  
    Income before income taxes     20,990       24,188  
    Income taxes     4,037       4,576  
    Net income   $ 16,953     $ 19,612  
             
    Basic earnings per common share   $ 1.01     $ 1.17  
    Diluted earnings per common share   $ 1.00     $ 1.17  
                     
                 
    WEST BANCORPORATION, INC. AND SUBSIDIARY            
    Financial Information (unaudited)                            
                                 
        As of and for the Quarter Ended   For the Nine Months Ended
    COMMON SHARE DATA   September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
      September 30,
    2024
      September 30,
    2023
    Earnings per common share (basic)   $ 0.35     $ 0.31     $ 0.35     $ 0.27     $ 0.35     $ 1.01     $ 1.17  
    Earnings per common share (diluted)     0.35       0.31       0.35       0.27       0.35       1.00       1.17  
    Dividends per common share     0.25       0.25       0.25       0.25       0.25       0.75       0.75  
    Book value per common share(1)     13.98       13.30       13.31       13.46       12.19          
    Closing stock price     19.01       17.90       17.83       21.20       16.31          
    Market price/book value(2)     135.98 %     134.59 %     133.96 %     157.50 %     133.80 %        
    Price earnings ratio(3)     13.65       14.36       12.77       19.79       11.75          
    Annualized dividend yield(4)     5.26 %     5.59 %     5.61 %     4.72 %     6.13 %        
                                 
    REGULATORY CAPITAL RATIOS                            
    Consolidated:                            
    Total risk-based capital ratio     11.95 %     11.85 %     11.78 %     11.88 %     11.96 %        
    Tier 1 risk-based capital ratio     9.39       9.30       9.23       9.30       9.37          
    Tier 1 leverage capital ratio     8.15       8.08       8.36       8.50       8.58          
    Common equity tier 1 ratio     8.83       8.74       8.67       8.74       8.80          
    West Bank:                            
    Total risk-based capital ratio     12.73 %     12.66 %     12.63 %     12.76 %     12.89 %        
    Tier 1 risk-based capital ratio     11.86       11.79       11.76       11.89       12.01          
    Tier 1 leverage capital ratio     10.29       10.25       10.65       10.86       11.00          
    Common equity tier 1 ratio     11.86       11.79       11.76       11.89       12.01          
                                 
    KEY PERFORMANCE RATIOS AND OTHER METRICS                            
    Return on average assets(5)     0.60 %     0.53 %     0.61 %     0.48 %     0.64 %     0.59 %     0.72 %
    Return on average equity(6)     10.41       9.50       10.63       8.89       10.89       10.18       12.22  
    Net interest margin(7)(13)     1.91       1.86       1.88       1.87       1.91       1.88       2.05  
    Yield on interest-earning assets(8)(13)     5.16       5.13       4.99       4.87       4.70       5.10       4.56  
    Cost of interest-bearing liabilities     3.84       3.83       3.70       3.60       3.38       3.79       3.09  
    Efficiency ratio(9)(13)     63.28       67.14       62.04       64.66       60.83       64.16       59.52  
    Nonperforming assets to total assets(10)     0.01       0.01       0.01       0.01       0.01          
    ACL ratio(11)     0.97       0.95       0.95       0.97       0.99          
    Loans/total assets     75.75       75.63       75.20       76.52       76.98          
    Loans/total deposits     92.15       94.27       97.23       98.44       103.42          
    Tangible common equity ratio(12)     5.90       5.65       5.65       5.88       5.51          
                                                     
    (1) Includes accumulated other comprehensive loss.
    (2) Closing stock price divided by book value per common share.
    (3) Closing stock price divided by annualized earnings per common share (basic).
    (4) Annualized dividend divided by period end closing stock price.
    (5) Annualized net income divided by average assets.
    (6) Annualized net income divided by average stockholders’ equity.
    (7) Annualized tax-equivalent net interest income divided by average interest-earning assets.
    (8) Annualized tax-equivalent interest income on interest-earning assets divided by average interest-earning assets.
    (9) Noninterest expense (excluding other real estate owned expense and write-down of premises) divided by noninterest income (excluding net securities gains/losses and gains/losses on disposition of premises and equipment) plus tax-equivalent net interest income.
    (10) Total nonperforming assets divided by total assets.
    (11) Allowance for credit losses on loans divided by total loans.
    (12) Common equity less intangible assets (none held) divided by tangible assets.
    (13) A non-GAAP measure.
       

    NON-GAAP FINANCIAL MEASURES

    This report contains references to financial measures that are not defined in GAAP. Such non-GAAP financial measures include the Company’s presentation of net interest income and net interest margin on a fully taxable equivalent (FTE) basis and the presentation of the efficiency ratio on an adjusted and FTE basis, excluding certain income and expenses. Management believes these non-GAAP financial measures provide useful information to both management and investors to analyze and evaluate the Company’s financial performance. These measures are considered standard measures of comparison within the banking industry. Additionally, management believes providing measures on a FTE basis enhances the comparability of income arising from taxable and nontaxable sources. 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. These non-GAAP disclosures should not be considered an alternative to the Company’s GAAP results. The following table reconciles the non-GAAP financial measures of net interest income and net interest margin on a fully taxable equivalent basis and efficiency ratio on an adjusted and FTE basis.

             
    (in thousands)   For the Quarter Ended   For the Nine Months Ended
        September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
      September 30,
    2024
      September 30,
    2023
    Reconciliation of net interest income and net interest margin on a FTE basis to GAAP:                            
    Net interest income (GAAP)   $ 17,960     $ 17,230     $ 16,750     $ 16,361     $ 16,634     $ 51,940     $ 52,670  
    Tax-equivalent adjustment (1)     29       55       82       95       113       166       396  
    Net interest income on a FTE basis (non-GAAP)     17,989       17,285       16,832       16,456       16,747       52,106       53,066  
    Average interest-earning assets     3,749,688       3,731,674       3,595,954       3,487,799       3,478,053       3,692,647       3,458,606  
    Net interest margin on a FTE basis (non-GAAP)     1.91 %     1.86 %     1.88 %     1.87 %     1.91 %     1.88 %     2.05 %
                                 
    Reconciliation of efficiency ratio on an adjusted and FTE basis to GAAP:                            
    Net interest income on a FTE basis (non-GAAP)   $ 17,989     $ 17,285     $ 16,832     $ 16,456     $ 16,747     $ 52,106     $ 53,066  
    Noninterest income     2,359       2,346       2,299       1,898       2,822       7,004       8,168  
    Adjustment for realized securities losses, net                       431                    
    Adjustment for losses on disposal of premises and equipment, net     26       21             24       3       47       5  
    Adjusted income     20,374       19,652       19,131       18,809       19,572       59,157       61,239  
    Noninterest expense     12,892       13,194       11,868       12,161       11,905       37,954       36,450  
    Efficiency ratio on an adjusted and FTE basis (non-GAAP) (2)     63.28 %     67.14 %     62.04 %     64.66 %     60.83 %     64.16 %     59.52 %
                                                             
    (1) Computed on a tax-equivalent basis using a federal income tax rate of 21 percent, adjusted to reflect the effect of the nondeductible interest expense associated with owning tax-exempt securities and loans. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the financial results, as it enhances the comparability of income arising from taxable and nontaxable sources.
    (2) The efficiency ratio expresses noninterest expense as a percent of fully taxable equivalent net interest income and noninterest income, excluding specific noninterest income and expenses. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the Company’s financial performance. It is a standard measure of comparison within the banking industry. A lower ratio is more desirable.

    The MIL Network

  • MIL-OSI: Kearny Financial Corp. Announces First Quarter Fiscal 2025 Results and Declaration of Cash Dividend

    Source: GlobeNewswire (MIL-OSI)

    FAIRFIELD, N.J., Oct. 24, 2024 (GLOBE NEWSWIRE) — Kearny Financial Corp. (NASDAQ GS: KRNY) (the “Company”), the holding company of Kearny Bank (the “Bank”), reported net income for the quarter ended September 30, 2024 of $6.1 million, or $0.10 per diluted share, compared to a GAAP net loss of $90.1 million, or $1.45 per diluted share, for the quarter ended June 30, 2024. The net loss for the quarter ended June 30, 2024 included a goodwill impairment of $95.3 million, as previously disclosed. Excluding this item, net income for the quarter ended September 30, 2024 increased $496,000 from adjusted net income of $5.6 million for the quarter ended June 30, 2024.

    The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.11 per share, payable on November 20, 2024, to stockholders of record as of November 6, 2024.

    Craig L. Montanaro, President and Chief Executive Officer, commented, “I’m pleased to report that this quarter saw our net interest margin reach its inflection point and begin to ascend. Despite four basis points of quarterly compression, each successive month of the quarter reflected an increase in our net interest margin. The recent fed funds rate reduction of 50 basis points has already begun translating into a cost of funds benefit in October. Additional fed funds rate cuts, which the market is anticipating, will be a positive catalyst for our liability-sensitive balance sheet.”

    Mr. Montanaro continued, “Regarding asset quality, our loan portfolio remains strong. Minimal exposure to New York City rent-regulated multifamily and office real estate, coupled with our robust commercial real estate ACL coverage ratios and peer-leading charge-off ratios, leaves us well-positioned in the current environment.”

    Balance Sheet

    • Total assets were $7.77 billion at September 30, 2024, an increase of $88.9 million, or 1.2%, from June 30, 2024.
    • Investment securities totaled $1.20 billion at September 30, 2024, a decrease of $5.5 million, or 0.5%, from June 30, 2024.
    • Loans receivable totaled $5.78 billion at September 30, 2024, an increase of $51.5 million, or 0.9%, from June 30, 2024, primarily reflecting growth in one- to four-family residential mortgage loans and construction loans.
    • Deposits were $5.47 billion at September 30, 2024, an increase of $312.4 million, or 6.1%, from June 30, 2024. This increase was largely the result of a reallocation from Federal Home Loan Bank (“FHLB”) advances into brokered certificates of deposits, due to the relatively more favorable economics of brokered deposits compared to advances.
    • Borrowings were $1.48 billion at September 30, 2024, a decrease of $229.9 million, or 13.4%, from June 30, 2024, primarily reflecting a decrease in FHLB borrowings offset by an increase in brokered certificates of deposits, as noted above.
    • At September 30, 2024, the Company maintained available secured borrowing capacity with the FHLB and the Federal Reserve Discount Window of $2.06 billion, an increase of $240.0 million from June 30, 2024, and represents 26.5% of total assets.

    Earnings

    Net Interest Income and Net Interest Margin

    • Net interest margin contracted four basis points to 1.80% for the quarter ended September 30, 2024. The decrease for the quarter was driven by increases in the cost and average balances of interest-bearing deposits and a decrease in the average balance of interest-earning assets, partially offset by decreases in the average balances of interest-bearing borrowings and higher yields on interest-earning assets.
    • For the quarter ended September 30, 2024, net interest income decreased $830,000 to $32.4 million from $33.3 million for the quarter ended June 30, 2024. Included in net interest income for the quarters ended September 30, 2024 and June 30, 2024, respectively, was purchase accounting accretion of $649,000 and $612,000, and loan prepayment penalty income of $52,000 and $366,000.

    Non-Interest Income

    • Non-interest income decreased $1.2 million to income of $4.6 million for the quarter ended September 30, 2024, from $5.8 million for the quarter ended June 30, 2024. Included in non-interest income for the quarter ended June 30, 2024 was a non-recurring contract renewal bonus of $750,000 and $1.1 million in non-recurring payments on two life insurance policies, partially offset by a $392,000 non-recurring exchange charge related to the December 2023 Bank Owned Life Insurance (“BOLI”) restructure. No such non-recurring items were recorded during the quarter ended September 30, 2024.
    • Income from BOLI decreased $642,000 to $2.6 million for the quarter ended September 30, 2024 from $3.2 million for the quarter ended June 30, 2024, primarily driven by the non-recurring items recorded for the quarter ended June 30, 2024, as disclosed above.

    Non-Interest Expense

    • For the quarter ended September 30, 2024, non-interest expense decreased $96.8 million, or 76.5%, to $29.8 million from $126.6 million for the quarter ended June 30, 2024, driven by a non-cash goodwill impairment recognized in the prior comparative period. Excluding the goodwill impairment, adjusted non-interest expense increased $605,000 from $29.2 million, primarily driven by increases in salary and benefits expense and other expense.
    • Salary and benefits expense increased $232,000 primarily driven by annual merit increases and higher payroll taxes, partially offset by a non-recurring decrease in stock-based compensation.
    • Other expense increased $344,000 primarily driven by an increase of $243,000 in the provision for credit losses on off balance sheet commitments.

    Income Taxes

    • Income tax expense totaled $1.1 million for the quarter ended September 30, 2024, compared to an income tax benefit of $917,000 for the quarter ended June 30, 2024. The increase in income tax expense was primarily due to higher pre-tax income in the current quarter, coupled with a partial reversal of the deferred tax liability associated with the previously recorded goodwill impairment in the prior quarter.

    Asset Quality

    • The balance of non-performing assets remained steady at $39.9 million, or 0.51% of total assets, at September 30, 2024, and $39.9 million, or 0.52% of total assets, at June 30, 2024, respectively.
    • Net charge-offs totaled $124,000, or 0.01% of average loans, on an annualized basis, for the quarter ended September 30, 2024, compared to $3.5 million, or 0.25% of average loans, on an annualized basis, for the quarter ended June 30, 2024.
    • For the quarter ended September 30, 2024, the Company recorded a provision for credit losses of $108,000, compared to $3.5 million for the quarter ended June 30, 2024. The provision for credit loss expense for the quarter ended September 30, 2024 was primarily driven by loan growth.
    • The allowance for credit losses (“ACL”) was $44.9 million, or 0.78% of total loans, at September 30, 2024 and remained unchanged from June 30, 2024.

    Capital

    • For the quarter ended September 30, 2024, book value per share decreased $0.06, or 0.5%, to $11.64 while tangible book value per share decreased $0.05, or 0.5%, to $9.85.
    • At September 30, 2024, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of $76.0 million, partially offset by after-tax unrealized gains on derivatives of $11.0 million. After-tax net unrecognized losses on securities held to maturity of $8.2 million were not reflected in total stockholders’ equity.
    • At September 30, 2024, the Company’s tangible equity to tangible assets ratio equaled 8.31% and the regulatory capital ratios of both the Company and the Bank were in excess of the levels required by federal banking regulators to be classified as “well-capitalized” under regulatory guidelines.

    This earnings release should be read in conjunction with Kearny Financial Corp.’s Q1 2025 Investor Presentation, a copy of which is available through the Investor Relations link located at the bottom of the page of our website at www.kearnybank.com and via a Current Report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov.

    Statements contained in this news release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time. The Company does not undertake and specifically disclaims any obligation to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company.

    Category: Earnings

    For further information contact:
    Keith Suchodolski, Senior Executive Vice President and Chief Operating Officer, or
    Sean Byrnes, Executive Vice President and Chief Financial Officer
    Kearny Financial Corp.
    (973) 244-4500

     
    Linked-Quarter Comparative Financial Analysis
     
    Kearny Financial Corp.
    Consolidated Balance Sheets
    (Unaudited)
     
    (Dollars and Shares in Thousands,
    Except Per Share Data)
    September 30,
    2024
    June 30,
    2024
    Variance
    or Change
    Variance
    or Change Pct.
    Assets        
    Cash and cash equivalents $ 155,574   $ 63,864   $ 91,710   143.6 %
    Securities available for sale   1,070,811     1,072,833     (2,022 ) -0.2 %
    Securities held to maturity   132,256     135,742     (3,486 ) -2.6 %
    Loans held-for-sale   8,866     6,036     2,830   46.9 %
    Loans receivable   5,784,246     5,732,787     51,459   0.9 %
    Less: allowance for credit losses on loans   (44,923 )   (44,939 )   (16 ) —%
    Net loans receivable   5,739,323     5,687,848     51,475   0.9 %
    Premises and equipment   45,189     44,940     249   0.6 %
    Federal Home Loan Bank stock   57,706     80,300     (22,594 ) -28.1 %
    Accrued interest receivable   29,467     29,521     (54 ) -0.2 %
    Goodwill   113,525     113,525       %
    Core deposit intangible   1,805     1,931     (126 ) -6.5 %
    Bank owned life insurance   300,186     297,874     2,312   0.8 %
    Deferred income taxes, net   50,131     50,339     (208 ) -0.4 %
    Other assets   67,540     98,708     (31,168 ) -31.6 %
    Total assets $ 7,772,379   $ 7,683,461   $ 88,918   1.2 %
             
    Liabilities        
    Deposits:        
    Non-interest-bearing $ 592,099   $ 598,366   $ (6,267 ) -1.0 %
    Interest-bearing   4,878,413     4,559,757     318,656   7.0 %
    Total deposits   5,470,512     5,158,123     312,389   6.1 %
    Borrowings   1,479,888     1,709,789     (229,901 ) -13.4 %
    Advance payments by borrowers for taxes   17,824     17,409     415   2.4 %
    Other liabilities   52,618     44,569     8,049   18.1 %
    Total liabilities   7,020,842     6,929,890     90,952   1.3 %
             
    Stockholders’ Equity        
    Common stock   646     644     2   0.3 %
    Paid-in capital   493,523     493,680     (157 ) %
    Retained earnings   342,522     343,326     (804 ) -0.2 %
    Unearned ESOP shares   (20,430 )   (20,916 )   486   2.3 %
    Accumulated other comprehensive loss   (64,724 )   (63,163 )   (1,561 ) -2.5 %
    Total stockholders’ equity   751,537     753,571     (2,034 ) -0.3 %
    Total liabilities and stockholders’ equity $ 7,772,379   $ 7,683,461   $ 88,918   1.2 %
             
    Consolidated capital ratios        
    Equity to assets   9.67 %   9.81 %   -0.14 %  
    Tangible equity to tangible assets (1)   8.31 %   8.43 %   -0.12 %  
             
    Share data        
    Outstanding shares   64,580     64,434     146   0.2 %
    Book value per share $ 11.64   $ 11.70   $ (0.06 ) -0.5 %
    Tangible book value per share (2) $ 9.85   $ 9.90   $ (0.05 ) -0.5 %
                         
    _________________________
    (1) Tangible equity equals total stockholders’ equity reduced by goodwill and core deposit intangible assets. Tangible assets equals total assets reduced by goodwill and core deposit intangible assets.
    (2) Tangible book value equals total stockholders’ equity reduced by goodwill and core deposit intangible assets.
     
     
    Kearny Financial Corp.
    Consolidated Statements of Income (Loss)
    (Unaudited)
     
    (Dollars and Shares in Thousands,
    Except Per Share Data)
    Three Months Ended Variance
    or Change
    Variance
    or Change Pct.
    September 30,
    2024
    June 30,
    2024
    Interest income        
    Loans $ 66,331   $ 65,819   $ 512   0.8 %
    Taxable investment securities   14,384     14,802     (418 ) -2.8 %
    Tax-exempt investment securities   71     80     (9 ) -11.3%
    Other interest-earning assets   2,466     2,289     177   7.7 %
    Total interest income   83,252     82,990     262   0.3 %
             
    Interest expense        
    Deposits   35,018     32,187     2,831   8.8 %
    Borrowings   15,788     17,527     (1,739 ) -9.9 %
    Total interest expense   50,806     49,714     1,092   2.2 %
    Net interest income   32,446     33,276     (830 ) -2.5 %
    Provision for credit losses   108     3,527     (3,419 ) -96.9 %
    Net interest income after provision for credit losses   32,338     29,749     2,589   8.7 %
             
    Non-interest income        
    Fees and service charges   635     580     55   9.5 %
    Gain on sale of loans   200     111     89   80.2 %
    Income from bank owned life insurance   2,567     3,209     (642 ) -20.0 %
    Electronic banking fees and charges   391     1,130     (739 ) -65.4 %
    Other income   833     776     57   7.3 %
    Total non-interest income   4,626     5,806     (1,180 ) -20.3 %
             
    Non-interest expense        
    Salaries and employee benefits   17,498     17,266     232   1.3 %
    Net occupancy expense of premises   2,798     2,738     60   2.2 %
    Equipment and systems   3,860     3,785     75   2.0 %
    Advertising and marketing   342     480     (138 ) -28.8 %
    Federal deposit insurance premium   1,563     1,532     31   2.0 %
    Directors’ compensation   361     360     1   0.3 %
    Goodwill impairment       97,370     (97,370 ) -100.0 %
    Other expense   3,364     3,020     344   11.4 %
    Total non-interest expense   29,786     126,551     (96,765 ) -76.5 %
    Income (loss) before income taxes   7,178     (90,996 )   98,174   107.9 %
    Income taxes   1,086     (917 )   2,003   -218.4 %
    Net income (loss) $ 6,092   $ (90,079 ) $ 96,171   106.8 %
             
    Net income (loss) per common share (EPS)        
    Basic $ 0.10   $ (1.45 ) $ 1.55    
    Diluted $ 0.10   $ (1.45 ) $ 1.55    
             
    Dividends declared        
    Cash dividends declared per common share $ 0.11   $ 0.11   $    
    Cash dividends declared $ 6,896   $ 6,903   $ (7 )  
    Dividend payout ratio   113.2 %   -7.7 %   120.9 %  
             
    Weighted average number of common shares outstanding        
    Basic   62,389     62,254     135    
    Diluted   62,420     62,254     166    
                         
     
    Kearny Financial Corp.
    Average Balance Sheet Data
    (Unaudited)
     
    (Dollars in Thousands) Three Months Ended Variance
    or Change
    Variance
    or Change Pct.
    September 30,
    2024
    June 30,
    2024
    Assets        
    Interest-earning assets:        
    Loans receivable, including loans held for sale $ 5,761,593   $ 5,743,008   $ 18,585   0.3 %
    Taxable investment securities   1,314,945     1,343,541     (28,596 ) -2.1 %
    Tax-exempt investment securities   12,244     13,737     (1,493 ) -10.9 %
    Other interest-earning assets   131,981     128,257     3,724   2.9 %
    Total interest-earning assets   7,220,763     7,228,543     (7,780 ) -0.1 %
    Non-interest-earning assets   467,670     466,537     1,133   0.2 %
    Total assets $ 7,688,433   $ 7,695,080   $ (6,647 ) -0.1 %
             
    Liabilities and Stockholders’ Equity        
    Interest-bearing liabilities:        
    Deposits:        
    Interest-bearing demand $ 2,282,608   $ 2,310,521   $ (27,913 ) -1.2 %
    Savings   668,240     631,622     36,618   5.8 %
    Certificates of deposit   1,755,589     1,613,798     141,791   8.8 %
    Total interest-bearing deposits   4,706,437     4,555,941     150,496   3.3 %
    Borrowings:        
    Federal Home Loan Bank advances   1,325,583     1,507,192     (181,609 ) -12.0 %
    Other borrowings   237,011     228,461     8,550   3.7 %
    Total borrowings   1,562,594     1,735,653     (173,059 ) -10.0 %
    Total interest-bearing liabilities   6,269,031     6,291,594     (22,563 ) -0.4 %
    Non-interest-bearing liabilities:        
    Non-interest-bearing deposits   599,095     589,438     9,657   1.6 %
    Other non-interest-bearing liabilities   69,629     62,978     6,651   10.6 %
    Total non-interest-bearing liabilities   668,724     652,416     16,308   2.5 %
    Total liabilities   6,937,755     6,944,010     (6,255 ) -0.1 %
    Stockholders’ equity   750,678     751,070     (392 ) -0.1 %
    Total liabilities and stockholders’ equity $ 7,688,433   $ 7,695,080   $ (6,647 ) -0.1 %
             
    Average interest-earning assets to average interest-bearing liabilities   115.18 %   114.89 %   0.29 % 0.3 %
     
     
    Kearny Financial Corp.
    Performance Ratio Highlights
    (Unaudited)
      Three Months Ended Variance
    or Change
      September 30,
    2024
    June 30,
    2024
    Average yield on interest-earning assets:      
    Loans receivable, including loans held for sale 4.61 % 4.58 % 0.03 %
    Taxable investment securities 4.38 % 4.41 % -0.03 %
    Tax-exempt investment securities (1) 2.32 % 2.32 % %
    Other interest-earning assets 7.47 % 7.14 % 0.33 %
    Total interest-earning assets 4.61 % 4.59 % 0.02 %
           
    Average cost of interest-bearing liabilities:      
    Deposits:      
    Interest-bearing demand 3.13 % 3.06 % 0.07 %
    Savings 1.05 % 0.63 % 0.42 %
    Certificates of deposit 3.51 % 3.35 % 0.16 %
    Total interest-bearing deposits 2.98 % 2.83 % 0.15 %
    Borrowings:      
    Federal Home Loan Bank advances 3.82 % 3.86 % -0.04 %
    Other borrowings 5.28 % 5.24 % 0.04 %
    Total borrowings 4.04 % 4.04 % %
    Total interest-bearing liabilities 3.24 % 3.16 % 0.08 %
           
    Interest rate spread (2) 1.37 % 1.43 % -0.06 %
    Net interest margin (3) 1.80 % 1.84 % -0.04 %
           
    Non-interest income to average assets (annualized) 0.24 % 0.30 % -0.06 %
    Non-interest expense to average assets (annualized) 1.55 % 6.58 % -5.03 %
           
    Efficiency ratio (4) 80.35 % 323.81 % -243.46 %
           
    Return on average assets (annualized) 0.32 % -4.68 % 5.00 %
    Return on average equity (annualized) 3.25 % -47.97 % 51.22 %
    Return on average tangible equity (annualized) (5) 3.89 % 3.33 % 0.56 %
     
    _________________________
    (1) The yield on tax-exempt investment securities has not been adjusted to reflect their tax-effective yield.
    (2) Interest income divided by average interest-earning assets less interest expense divided by average interest-bearing liabilities.
    (3) Net interest income divided by average interest-earning assets.
    (4) Non-interest expense divided by the sum of net interest income and non-interest income.
    (5) Average tangible equity equals total average stockholders’ equity reduced by average goodwill and average core deposit intangible assets.
     
     
    Five-Quarter Financial Trend Analysis
     
    Kearny Financial Corp.
    Consolidated Balance Sheets
     
    (Dollars and Shares in Thousands,
    Except Per Share Data)
    September 30,
    2024
    June 30,
    2024
    March 31,
    2024
    December 31,
    2023
    September 30,
    2023
      (Unaudited) (Audited) (Unaudited) (Unaudited) (Unaudited)
    Assets          
    Cash and cash equivalents $ 155,574   $ 63,864   $ 71,027   $ 73,860   $ 57,219  
    Securities available for sale   1,070,811     1,072,833     1,098,655     1,144,175     1,215,633  
    Securities held to maturity   132,256     135,742     139,643     141,959     143,730  
    Loans held-for-sale   8,866     6,036     4,117     14,030     3,934  
    Loans receivable   5,784,246     5,732,787     5,758,336     5,745,629     5,736,049  
    Less: allowance for credit losses on loans   (44,923 )   (44,939 )   (44,930 )   (44,867 )   (46,872 )
    Net loans receivable   5,739,323     5,687,848     5,713,406     5,700,762     5,689,177  
    Premises and equipment   45,189     44,940     45,053     45,928     46,868  
    Federal Home Loan Bank stock   57,706     80,300     81,347     83,372     81,509  
    Accrued interest receivable   29,467     29,521     31,065     30,258     29,766  
    Goodwill   113,525     113,525     210,895     210,895     210,895  
    Core deposit intangible   1,805     1,931     2,057     2,189     2,323  
    Bank owned life insurance   300,186     297,874     296,493     256,064     294,491  
    Deferred income taxes, net   50,131     50,339     47,225     46,116     56,500  
    Other real estate owned               11,982     12,956  
    Other assets   67,540     98,708     100,989     136,242     129,865  
    Total assets $ 7,772,379   $ 7,683,461   $ 7,841,972   $ 7,897,832   $ 7,974,866  
               
    Liabilities          
    Deposits:          
    Non-interest-bearing $ 592,099   $ 598,366   $ 586,089   $ 584,130   $ 595,141  
    Interest-bearing   4,878,413     4,559,757     4,622,961     4,735,500     4,839,027  
    Total deposits   5,470,512     5,158,123     5,209,050     5,319,630     5,434,168  
    Borrowings   1,479,888     1,709,789     1,722,178     1,667,055     1,626,933  
    Advance payments by borrowers for taxes   17,824     17,409     17,387     16,742     16,907  
    Other liabilities   52,618     44,569     44,279     46,427     47,324  
    Total liabilities   7,020,842     6,929,890     6,992,894     7,049,854     7,125,332  
               
    Stockholders’ Equity          
    Common stock   646     644     644     645     652  
    Paid-in capital   493,523     493,680     493,187     493,297     497,269  
    Retained earnings   342,522     343,326     440,308     439,755     460,464  
    Unearned ESOP shares   (20,430 )   (20,916 )   (21,402 )   (21,889 )   (22,375 )
    Accumulated other comprehensive loss   (64,724 )   (63,163 )   (63,659 )   (63,830 )   (86,476 )
    Total stockholders’ equity   751,537     753,571     849,078     847,978     849,534  
    Total liabilities and stockholders’ equity $ 7,772,379   $ 7,683,461   $ 7,841,972   $ 7,897,832   $ 7,974,866  
               
    Consolidated capital ratios          
    Equity to assets   9.67 %   9.81 %   10.83 %   10.74 %   10.65 %
    Tangible equity to tangible assets (1)   8.31 %   8.43 %   8.34 %   8.26 %   8.20 %
               
    Share data          
    Outstanding shares   64,580     64,434     64,437     64,445     65,132  
    Book value per share $ 11.64   $ 11.70   $ 13.18   $ 13.16   $ 13.04  
    Tangible book value per share (2) $ 9.85   $ 9.90   $ 9.87   $ 9.85   $ 9.77  
     
    _________________________
    (1) Tangible equity equals total stockholders’ equity reduced by goodwill and core deposit intangible assets. Tangible assets equals total assets reduced by goodwill and core deposit intangible assets.
    (2) Tangible book value equals total stockholders’ equity reduced by goodwill and core deposit intangible assets.
     
     
    Kearny Financial Corp.
    Supplemental Balance Sheet Highlights
    (Unaudited)
     
    (Dollars in Thousands) September 30,
    2024
    June 30,
    2024
    March 31,
    2024
    December 31,
    2023
    September 30,
    2023
    Loan portfolio composition:          
    Commercial loans:          
    Multi-family mortgage $ 2,646,187   $ 2,645,851   $ 2,645,195   $ 2,651,274   $ 2,699,151  
    Nonresidential mortgage   950,771     948,075     965,539     947,287     946,801  
    Commercial business   145,984     142,747     147,326     144,134     149,229  
    Construction   227,327     209,237     229,457     221,933     230,703  
    Total commercial loans   3,970,269     3,945,910     3,987,517     3,964,628     4,025,884  
    One- to four-family residential mortgage   1,768,230     1,756,051     1,741,644     1,746,065     1,689,051  
    Consumer loans:          
    Home equity loans   44,741     44,104     42,731     43,517     42,896  
    Other consumer   2,965     2,685     3,198     2,728     2,644  
    Total consumer loans   47,706     46,789     45,929     46,245     45,540  
    Total loans, excluding yield adjustments   5,786,205     5,748,750     5,775,090     5,756,938     5,760,475  
    Unaccreted yield adjustments   (1,959 )   (15,963 )   (16,754 )   (11,309 )   (24,426 )
    Loans receivable, net of yield adjustments   5,784,246     5,732,787     5,758,336     5,745,629     5,736,049  
    Less: allowance for credit losses on loans   (44,923 )   (44,939 )   (44,930 )   (44,867 )   (46,872 )
    Net loans receivable $ 5,739,323   $ 5,687,848   $ 5,713,406   $ 5,700,762   $ 5,689,177  
               
    Asset quality:          
    Nonperforming assets:          
    Accruing loans – 90 days and over past due $   $   $   $   $  
    Nonaccrual loans   39,854     39,882     39,546     28,089     37,912  
    Total nonperforming loans   39,854     39,882     39,546     28,089     37,912  
    Nonaccrual loans held-for-sale               9,700      
    Other real estate owned               11,982     12,956  
    Total nonperforming assets $ 39,854   $ 39,882   $ 39,546   $ 49,771   $ 50,868  
               
    Nonperforming loans (% total loans)   0.69 %   0.70 %   0.69 %   0.49 %   0.66 %
    Nonperforming assets (% total assets)   0.51 %   0.52 %   0.50 %   0.63 %   0.64 %
               
    Classified loans $ 119,534   $ 118,700   $ 115,772   $ 94,676   $ 98,616  
               
    Allowance for credit losses on loans (ACL):          
    ACL to total loans   0.78 %   0.78 %   0.78 %   0.78 %   0.81 %
    ACL to nonperforming loans   112.72 %   112.68 %   113.61 %   159.73 %   123.63 %
    Net charge-offs $ 124   $ 3,518   $ 286   $ 4,110   $ 2,107  
    Average net charge-off rate (annualized)   0.01 %   0.25 %   0.02 %   0.29 %   0.15 %
     
     
    Kearny Financial Corp.
    Supplemental Balance Sheet Highlights
    (Unaudited)
     
    (Dollars in Thousands) September 30,
    2024
    June 30,
    2024
    March 31,
    2024
    December 31,
    2023
    September 30,
    2023
    Funding composition:          
    Deposits:          
    Non-interest-bearing deposits $ 592,099   $ 598,367   $ 586,089   $ 584,130   $ 595,141  
    Interest-bearing demand   2,247,685     2,308,915     2,349,032     2,347,262     2,236,573  
    Savings   681,709     643,481     630,456     646,182     689,163  
    Certificates of deposit (retail)   1,215,746     1,199,127     1,235,261     1,283,676     1,300,382  
    Certificates of deposit (brokered and listing service)   733,273     408,234     408,212     458,380     612,909  
    Interest-bearing deposits   4,878,413     4,559,757     4,622,961     4,735,500     4,839,027  
    Total deposits   5,470,512     5,158,124     5,209,050     5,319,630     5,434,168  
               
    Borrowings:          
    Federal Home Loan Bank advances   1,209,888     1,534,789     1,457,178     1,432,055     1,456,933  
    Overnight borrowings   270,000     175,000     265,000     235,000     170,000  
    Total borrowings   1,479,888     1,709,789     1,722,178     1,667,055     1,626,933  
               
    Total funding $ 6,950,400   $ 6,867,913   $ 6,931,228   $ 6,986,685   $ 7,061,101  
               
    Loans as a % of deposits   105.1 %   110.4 %   109.8 %   107.4 %   104.8 %
    Deposits as a % of total funding   78.7 %   75.1 %   75.2 %   76.1 %   77.0 %
    Borrowings as a % of total funding   21.3 %   24.9 %   24.8 %   23.9 %   23.0 %
               
    Uninsured deposits:          
    Uninsured deposits (reported) (1) $ 1,799,726   $ 1,772,623   $ 1,760,740   $ 1,813,122   $ 1,734,288  
    Uninsured deposits (adjusted) (2) $ 773,375   $ 764,447   $ 718,026   $ 694,510   $ 683,265  
     
    _________________________
    (1) Uninsured deposits of Kearny Bank.
    (2) Uninsured deposits of Kearny Bank adjusted to exclude deposits of its wholly-owned subsidiary and holding company and collateralized deposits of state and local governments.
     
     
    Kearny Financial Corp.
    Consolidated Statements of Income (Loss)
    (Unaudited)
     
      Three Months Ended
    (Dollars and Shares in Thousands,
    Except Per Share Data)
    September 30,
    2024
    June 30,
    2024
    March 31,
    2024
    December 31,
    2023
    September 30,
    2023
    Interest income          
    Loans $ 66,331   $ 65,819   $ 64,035   $ 63,384   $ 62,769  
    Taxable investment securities   14,384     14,802     15,490     16,756     16,265  
    Tax-exempt investment securities   71     80     85     84     87  
    Other interest-earning assets   2,466     2,289     2,475     2,401     2,047  
    Total interest income   83,252     82,990     82,085     82,625     81,168  
               
    Interest expense          
    Deposits   35,018     32,187     32,320     30,340     27,567  
    Borrowings   15,788     17,527     15,446     16,446     14,441  
    Total interest expense   50,806     49,714     47,766     46,786     42,008  
    Net interest income   32,446     33,276     34,319     35,839     39,160  
    Provision for credit losses   108     3,527     349     2,105     245  
    Net interest income after provision for credit losses   32,338     29,749     33,970     33,734     38,915  
               
    Non-interest income          
    Fees and service charges   635     580     657     624     748  
    Loss on sale and call of securities               (18,135 )    
    Gain (loss) on sale of loans   200     111     (712 )   104     215  
    Loss on sale of other real estate owned               (974 )    
    Income from bank owned life insurance   2,567     3,209     3,039     1,162     1,666  
    Electronic banking fees and charges   391     1,130     464     396     367  
    Other income   833     776     755     811     1,014  
    Total non-interest income   4,626     5,806     4,203     (16,012 )   4,010  
               
    Non-interest expense          
    Salaries and employee benefits   17,498     17,266     16,911     17,282     17,761  
    Net occupancy expense of premises   2,798     2,738     2,863     2,674     2,758  
    Equipment and systems   3,860     3,785     3,823     3,814     3,801  
    Advertising and marketing   342     480     387     301     228  
    Federal deposit insurance premium   1,563     1,532     1,429     1,495     1,524  
    Directors’ compensation   361     360     360     393     393  
    Goodwill impairment       97,370              
    Other expense   3,364     3,020     3,286     3,808     3,309  
    Total non-interest expense   29,786     126,551     29,059     29,767     29,774  
    Income (loss) before income taxes   7,178     (90,996 )   9,114     (12,045 )   13,151  
    Income taxes   1,086     (917 )   1,717     1,782     3,309  
    Net income (loss) $ 6,092   $ (90,079 ) $ 7,397   $ (13,827 ) $ 9,842  
               
    Net income (loss) per common share (EPS)          
    Basic $ 0.10   $ (1.45 ) $ 0.12   $ (0.22 ) $ 0.16  
    Diluted $ 0.10   $ (1.45 ) $ 0.12   $ (0.22 ) $ 0.16  
               
    Dividends declared          
    Cash dividends declared per common share $ 0.11   $ 0.11   $ 0.11   $ 0.11   $ 0.11  
    Cash dividends declared $ 6,896   $ 6,903   $ 6,844   $ 6,882   $ 6,989  
    Dividend payout ratio   113.2 %   -7.7 %   92.5 %   -49.8 %   71.0 %
               
    Weighted average number of common shares outstanding          
    Basic   62,389     62,254     62,205     62,299     63,014  
    Diluted   62,420     62,254     62,211     62,299     63,061  
                                   
     
    Kearny Financial Corp.
    Average Balance Sheet Data
    (Unaudited)
     
      Three Months Ended
    (Dollars in Thousands) September 30,
    2024
    June 30,
    2024
    March 31,
    2024
    December 31,
    2023
    September 30,
    2023
    Assets          
    Interest-earning assets:          
    Loans receivable, including loans held-for-sale $ 5,761,593   $ 5,743,008   $ 5,752,477   $ 5,726,321   $ 5,788,074  
    Taxable investment securities   1,314,945     1,343,541     1,382,064     1,509,165     1,516,393  
    Tax-exempt investment securities   12,244     13,737     14,614     15,025     15,483  
    Other interest-earning assets   131,981     128,257     125,155     139,740     130,829  
    Total interest-earning assets   7,220,763     7,228,543     7,274,310     7,390,251     7,450,779  
    Non-interest-earning assets   467,670     466,537     577,411     554,335     568,723  
    Total assets $ 7,688,433   $ 7,695,080   $ 7,851,721   $ 7,944,586   $ 8,019,502  
               
    Liabilities and Stockholders’ Equity          
    Interest-bearing liabilities:          
    Deposits:          
    Interest-bearing demand $ 2,282,608   $ 2,310,521   $ 2,378,831   $ 2,301,169   $ 2,245,831  
    Savings   668,240     631,622     635,226     664,926     719,508  
    Certificates of deposit   1,755,589     1,613,798     1,705,513     1,824,316     1,968,512  
    Total interest-bearing deposits   4,706,437     4,555,941     4,719,570     4,790,411     4,933,851  
    Borrowings:          
    Federal Home Loan Bank advances   1,325,583     1,507,192     1,428,801     1,513,497     1,386,473  
    Other borrowings   237,011     228,461     210,989     142,283     158,098  
    Total borrowings   1,562,594     1,735,653     1,639,790     1,655,780     1,544,571  
    Total interest-bearing liabilities   6,269,031     6,291,594     6,359,360     6,446,191     6,478,422  
    Non-interest-bearing liabilities:          
    Non-interest-bearing deposits   599,095     589,438     581,870     597,294     612,251  
    Other non-interest-bearing liabilities   69,629     62,978     65,709     62,387     66,701  
    Total non-interest-bearing liabilities   668,724     652,416     647,579     659,681     678,952  
    Total liabilities   6,937,755     6,944,010     7,006,939     7,105,872     7,157,374  
    Stockholders’ equity   750,678     751,070     844,782     838,714     862,128  
    Total liabilities and stockholders’ equity $ 7,688,433   $ 7,695,080   $ 7,851,721   $ 7,944,586   $ 8,019,502  
               
    Average interest-earning assets to average
    interest-bearing liabilities
      115.18 %   114.89 %   114.39 %   114.65 %   115.01 %
                                   
     
    Kearny Financial Corp.
    Performance Ratio Highlights
      Three Months Ended
      September 30,
    2024
    June 30,
    2024
    March 31,
    2024
    December 31,
    2023
    September 30,
    2023
    Average yield on interest-earning assets:          
    Loans receivable, including loans held-for-sale 4.61 % 4.58 % 4.45 % 4.43 % 4.34 %
    Taxable investment securities 4.38 % 4.41 % 4.48 % 4.44 % 4.29 %
    Tax-exempt investment securities (1) 2.32 % 2.32 % 2.32 % 2.25 % 2.25 %
    Other interest-earning assets 7.47 % 7.14 % 7.91 % 6.87 % 6.26 %
    Total interest-earning assets 4.61 % 4.59 % 4.51 % 4.47 % 4.36 %
               
    Average cost of interest-bearing liabilities:          
    Deposits:          
    Interest-bearing demand 3.13 % 3.06 % 3.08 % 2.91 % 2.58 %
    Savings 1.05 % 0.63 % 0.46 % 0.44 % 0.47 %
    Certificates of deposit 3.51 % 3.35 % 3.11 % 2.82 % 2.49 %
    Total interest-bearing deposits 2.98 % 2.83 % 2.74 % 2.53 % 2.23 %
    Borrowings:          
    Federal Home Loan Bank advances 3.82 % 3.86 % 3.55 % 3.82 % 3.54 %
    Other borrowings 5.28 % 5.24 % 5.22 % 5.65 % 5.46 %
    Total borrowings 4.04 % 4.04 % 3.77 % 3.97 % 3.74 %
    Total interest-bearing liabilities 3.24 % 3.16 % 3.00 % 2.90 % 2.59 %
               
    Interest rate spread (2) 1.37 % 1.43 % 1.51 % 1.57 % 1.77 %
    Net interest margin (3) 1.80 % 1.84 % 1.89 % 1.94 % 2.10 %
               
    Non-interest income to average assets (annualized) 0.24 % 0.30 % 0.21 % -0.81 % 0.20 %
    Non-interest expense to average assets (annualized) 1.55 % 6.58 % 1.48 % 1.50 % 1.49 %
               
    Efficiency ratio (4) 80.35 % 323.81 % 75.43 % 150.13 % 68.97 %
               
    Return on average assets (annualized) 0.32 % -4.68 % 0.38 % -0.70 % 0.49 %
    Return on average equity (annualized) 3.25 % -47.97 % 3.50 % -6.59 % 4.57 %
    Return on average tangible equity (annualized) (5) 3.89 % 3.33 % 4.68 % -8.84 % 6.07 %
                         
    _________________________
    (1) The yield on tax-exempt investment securities has not been adjusted to reflect their tax-effective yield.
    (2) Interest income divided by average interest-earning assets less interest expense divided by average interest-bearing liabilities.
    (3) Net interest income divided by average interest-earning assets.
    (4) Non-interest expense divided by the sum of net interest income and non-interest income.
    (5) Average tangible equity equals total average stockholders’ equity reduced by average goodwill and average core deposit intangible assets.
     

    The following tables provide a reconciliation of certain financial measures calculated in accordance with Generally Accepted Accounting Principles (“GAAP”) (as reported) and non-GAAP measures. These non-GAAP measures provide additional information which allow readers to evaluate the ongoing performance of the Company. They are not a substitute for GAAP measures; they should be read and used in conjunction with the Company’s GAAP financial information. In all cases, it should be understood that non-GAAP per share measures do not depict amounts that accrue directly to the benefit of shareholders.

     
    Kearny Financial Corp.
    Reconciliation of GAAP to Non-GAAP
    (Unaudited)
     
      Three Months Ended
    (Dollars and Shares in Thousands,
    Except Per Share Data)
    September 30,
    2024
    June 30,
    2024
    March 31,
    2024
    December 31,
    2023
    September 30,
    2023
    Adjusted net income:          
    Net income (loss) (GAAP) $ 6,092   $ (90,079 ) $ 7,397   $ (13,827 ) $ 9,842  
    Non-recurring transactions – net of tax:          
    Net effect of sale and call of securities               12,876      
    Net effect of bank-owned life insurance restructure       392         6,286      
    Goodwill impairment       95,283              
    Adjusted net income $ 6,092   $ 5,596   $ 7,397   $ 5,335   $ 9,842  
               
    Calculation of pre-tax, pre-provision net revenue:          
    Net income (loss) (GAAP) $ 6,092   $ (90,079 ) $ 7,397   $ (13,827 ) $ 9,842  
    Adjustments to net income (GAAP):          
    Provision for income taxes   1,086     (917 )   1,717     1,782     3,309  
    Provision for credit losses   108     3,527     349     2,105     245  
    Pre-tax, pre-provision net revenue (non-GAAP) $ 7,286   $ (87,469 ) $ 9,463   $ (9,940 ) $ 13,396  
               
    Adjusted earnings per share:          
    Weighted average common shares – basic   62,389     62,254     62,205     62,299     63,014  
    Weighted average common shares – diluted   62,420     62,330     62,211     62,367     63,061  
               
    Earnings per share – basic (GAAP) $ 0.10   $ (1.45 ) $ 0.12   $ (0.22 ) $ 0.16  
    Earnings per share – diluted (GAAP) $ 0.10   $ (1.45 ) $ 0.12   $ (0.22 ) $ 0.16  
               
    Adjusted earnings per share – basic (non-GAAP) $ 0.10   $ 0.09   $ 0.12   $ 0.09   $ 0.16  
    Adjusted earnings per share – diluted (non-GAAP) $ 0.10   $ 0.09   $ 0.12   $ 0.09   $ 0.16  
               
    Pre-tax, pre-provision net revenue per share:          
    Pre-tax, pre-provision net revenue per share – basic
      (non-GAAP)
    $ 0.12   $ (1.41 ) $ 0.15   $ (0.16 ) $ 0.21  
    Pre-tax, pre-provision net revenue per share – diluted
      (non-GAAP)
    $ 0.12   $ (1.40 ) $ 0.15   $ (0.16 ) $ 0.21  
               
    Adjusted return on average assets:          
    Total average assets $ 7,688,433   $ 7,695,080   $ 7,851,721   $ 7,944,586   $ 8,019,502  
               
    Return on average assets (GAAP)   0.32 %   -4.68 %   0.38 %   -0.70 %   0.49 %
    Adjusted return on average assets (non-GAAP)   0.32 %   0.29 %   0.38 %   0.27 %   0.49 %
               
    Adjusted return on average equity:          
    Total average equity $ 750,678   $ 751,070   $ 844,782   $ 838,714   $ 862,128  
               
    Return on average equity (GAAP)   3.25 %   -47.97 %   3.50 %   -6.59 %   4.57 %
    Adjusted return on average equity (non-GAAP)   3.25 %   2.98 %   3.50 %   2.54 %   4.57 %
                                   
     
    Kearny Financial Corp.
    Reconciliation of GAAP to Non-GAAP
    (Unaudited)
     
      Three Months Ended
    (Dollars and Shares in Thousands,
    Except Per Share Data)
    September 30,
    2024
    June 30,
    2024
    March 31,
    2024
    December 31,
    2023
    September 30,
    2023
    Adjusted return on average tangible equity:          
    Total average equity $ 750,678   $ 751,070   $ 844,782   $ 838,714   $ 862,128  
    Less: average goodwill   (113,525 )   (113,525 )   (210,895 )   (210,895 )   (210,895 )
    Less: average other intangible assets   (1,886 )   (2,006 )   (2,138 )   (2,277 )   (2,411 )
    Total average tangible equity $ 635,267   $ 635,539   $ 631,749   $ 625,542   $ 648,822  
               
    Return on average tangible equity (non-GAAP)   3.89 %   3.33 %   4.68 %   -8.84 %   6.07 %
    Adjusted return on average tangible equity (non-GAAP)   3.89 %   3.58 %   4.68 %   3.41 %   6.07 %
               
    Adjusted non-interest expense ratio:          
    Non-interest expense (GAAP) $ 29,786   $ 126,551   $ 29,059   $ 29,767   $ 29,774  
    Non-recurring transactions:          
    Goodwill impairment       (97,370 )            
    Non-interest expense (non-GAAP) $ 29,786   $ 29,181   $ 29,059   $ 29,767   $ 29,774  
               
    Non-interest expense ratio (GAAP)   1.55 %   6.58 %   1.48 %   1.50 %   1.49 %
    Adjusted non-interest expense ratio (non-GAAP)   1.55 %   1.52 %   1.48 %   1.50 %   1.49 %
               
    Adjusted efficiency ratio:          
    Non-interest expense (non-GAAP) $ 29,786   $ 29,181   $ 29,059   $ 29,767   $ 29,774  
               
    Net interest income (GAAP) $ 32,446   $ 33,276   $ 34,319   $ 35,839   $ 39,160  
    Total non-interest income (GAAP)   4,626     5,806     4,203     (16,012 )   4,010  
    Non-recurring transactions:          
    Net effect of sale and call of securities               18,135      
    Net effect of bank-owned life insurance restructure       392         573      
    Total revenue (non-GAAP) $ 37,072   $ 39,474   $ 38,522   $ 38,535   $ 43,170  
               
    Efficiency ratio (GAAP)   80.35 %   323.81 %   75.43 %   150.13 %   68.97 %
    Adjusted efficiency ratio (non-GAAP)   80.35 %   73.92 %   75.43 %   77.25 %   68.97 %

    The MIL Network

  • MIL-OSI: LNG Energy Group Announces Release of Its Sustainability Report

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Oct. 24, 2024 (GLOBE NEWSWIRE) — LNG Energy Group Corp. (TSXV: LNGE) (TSXV: LNGE.WT) (OTCQB: LNGNF) (FRA: E26) (the “Company” or “LNG Energy Group”) today released its 2023 Sustainability Report (the “Sustainability Report”).

    “I am pleased to report that LNG Energy Group has released its Sustainability Report and has taken a leading role in ESG and sustainability initiatives in Colombia,” comments Pablo Navarro, Chairman and Chief Executive Officer of the Company. “Our Sustainability Report highlights all of our important activities in Colombia and our approach to minimizing our environmental impact while improving the living standards of our local communities.”

    The Sustainability Report presents the Company’s sustainability initiatives in 2023 and into 2024. The Sustainability Report can be accessed on the Company’s website at: https://www.lngenergygroup.com/sustainability.

    Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

    About LNG Energy Group

    The Company is focused on the acquisition and development of oil and gas exploration and production assets in Latin America.

    For more information, please see below:

    Website:
    www.lngenergygroup.com

    Investor Relations:
    James Morris, Vice-President, Business Development and Investor Relations
    Email: investor.relations@lngenergygroup.com
    Telephone: 205-835-0676

    Find us on social media:
    LinkedIn: https://www.linkedin.com/company/lng-energy-group-inc/  
    Instagram: @lngenergygroup
    X: @LNGEnergyCorp

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION:

    This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities laws. All statements other than statements of historical fact are forward-looking statements, and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often using phrases such as “expects”, “anticipates”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends”, or variations of such words and phrases, or stating that certain actions, events or results “may” or “could”, “would”, “should”, “might” or “will” be taken to occur or be achieved, are not statements of historical fact and may be forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include: general business, economic, competitive, political and social uncertainties; delay or failure to receive any necessary board, shareholder or regulatory approvals, factors may occur which impede or prevent LNG Energy Group’s future business plans; and other factors beyond the control of LNG Energy Group. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, LNG Energy Group assumes no obligation to update the forward-looking statements, whether they change as a result of new information, future events or otherwise, except as required by law.

    The MIL Network

  • MIL-OSI: Billion Dollar Commercial Drone Market Poised for Continued Growth, Driven by A.I. Technological Advances

    Source: GlobeNewswire (MIL-OSI)

    PALM BEACH, Fla., Oct. 24, 2024 (GLOBE NEWSWIRE) — FN Media Group News Commentary – The commercial drone market is experiencing significant growth due to increasing demand from various industries such as construction, agriculture, security, military applications and so much more. Drones offer benefits like cost savings, improved efficiency, and enhanced safety for businesses. Market size is projected to reach USD12.3 billion by 2025, driven by technological advancements and regulatory approvals. AI is driving market transformation… The global commercial drones market size is estimated to grow by USD $126.87 billion from 2024-2028, according to a report from Technavio. The market is estimated to grow at a CAGR of 57.74% during the forecast period. Rising applications of drones is driving market growth, with a trend towards new developments and launches of commercial drones. The report continued: “The commercial drones market is experiencing significant growth due to the continuous introduction of new drones, components, and software solutions by vendors. Companies across various industries are integrating drones into their operations for managing assets, monitoring sites, inspecting facilities, and capturing real-time data… featuring advanced autonomous flight technology and Artificial Intelligence, ensuring safe and stable flight in challenging environments. Such innovations increase the availability of advanced drone products and software solutions, fueling the adoption of commercial drones in the forecast period.” Active Tech Companies in the markets today include ZenaTech, Inc. (NASDAQ: ZENA), C3 AI (NYSE: AI), NVIDIA Corporation (NASDAQ: NVDA), SoundHound AI, Inc. (NASDAQ: SOUN), AeroVironment (NASDAQ: AVAV).

    “The Commercial Drone Market is experiencing significant growth, particularly in sectors like… Agriculture. Drones equipped with high-quality Cameras are trending, with VAPOR Helicopter leading the way. Artificial Intelligence and Machine Learning are revolutionizing Decision making in industries, from Inspection activities to Farm management. Hybrid drones, combining features of Quadcopters, Octocopters, and Hexacopters, are gaining popularity. In Agriculture, drones help reduce costs, increase Yield, and monitor crops using services like Raptor Maps. Filmmakers and Ecommerce sectors also benefit from aerial photography and warehouse management. The Commercial Drone Market is experiencing significant growth as Quadcopters, Octocopters, and Hexacopters find increasing applications in various sectors. Challenges in flight control, firmware, middleware, computer vision, and environmental awareness are being addressed through technological advances in electronics, computing, microcontrollers, and processors.”

    ZenaTech Inc. (NASDAQ:ZENA) Issues Big Development News Today on Adding Patent Assets to the Company – Get the full details by visiting: https://www.financialnewsmedia.com/news-zena/

    Additional Groundbreaking ZenaTech Inc. Developments this week include:

    ZenaTech Announced a Software Company Acquisition Adding Significant Capabilities to Building AI Drones – ZenaTech also announced that it has entered into an agreement to acquire ZooOffice Inc., the holding company for software companies Jadian and DeskFlex, from ZenaTech’s former parent company. The acquisition of these two software companies will provide important compliance and inspection software as well as scheduling and mapping software that will be incorporated into ZenaTech’s ZenaDrone AI drone solutions. This transaction further expands ZenaTech’s portfolio of SaaS software solutions and customer base and is expected to add to recurring revenue in the government sector among others. The acquisition is subject to shareholder and regulatory approvals that may be required.

    “Adding Jadian and DeskFlex software capabilities to the ZenaTech portfolio is part of our strategy to offer full stack, integrated AI drone solutions targeted to multiple sectors such as Agriculture. Jadian’s compliance software will be integrated with ZenaDrone drone hardware and sensors to help farmers track and manage regulatory and environmental requirements such as crop traceability, fertilizer and pesticide use, water conservation, and greenhouse gas emissions. Deskflex scheduling and mapping software will add value integrated into our property management sector solutions,” said CEO Shaun Passley, Ph.D. Read this full release at: https://finance.yahoo.com/news/zenatech-announces-software-company-acquisition-113000656.html

    Other recent developments in the technology industry include:

    C3 AI (NYSE: AI) recently announced the newly re-branded C3 AI Asset Performance Suite, a collection of powerful, purpose-built AI applications that work together to help enterprises maximize value and improve sustainability performance. The C3 AI Asset Performance Suite includes C3 AI Reliability, C3 AI Process Optimization, and C3 AI Energy Management. These applications offer enterprises optimized asset performance through improvements in operational efficiency across business units.

    “C3 AI is the leader in AI-powered predictive maintenance, and our customers are some of the most satisfied in the industry because our technology makes a positive impact on their bottom line and continually maximizes their investments,” said Thomas M. Siebel, CEO, C3 AI. “This re-brand of the C3 AI Asset Performance Suite is in recognition that customers realize the most value by deploying applications that work in concert together and address entire value chains; in this case, with predictive maintenance, process optimization, and energy management.”

    SoundHound AI, Inc. (NASDAQ: SOUN), a global leader in voice artificial intelligence, recently announced its SoundHound Chat AI voice assistant has launched new customization tools to help transform how automotive brands interact with their customers within the vehicle. The new features are currently being piloted with some of SoundHound’s OEM partners.

    In addition to the core features offered from SoundHound Chat AI’s best-in-class voice assistant – which integrates generative AI capabilities with car controls and real-time domains like flight times, navigation, and weather – OEMs will be able to take control with customizations that work for their loyal consumers and align closely with their identity as an automaker. This new layer of customization will provide drivers with a more engaging and informative experience, allowing them to explore vehicle features and functionalities with greater ease and effectiveness.

    AeroVironment (NASDAQ: AVAV) recently announced that the U.S. Army has awarded a $54.9 million delivery order for the production of Switchblade® loitering munition systems. The recently announced award includes an additional contract ceiling of $743 million with $54.9 million in new funding. This contract is issued as part of a broader, previously executed, indefinite delivery, indefinite quantity contract, and ensures continued support for both the U.S. Army and several allied partners, including Lithuania, Romania, and Sweden.

    Work on this contract will be performed in Simi Valley, California, with an estimated completion date of June 30, 2026. The award, which leverages fiscal 2023 and 2024 Army funds along with Foreign Military Sales, highlights AV’s ongoing commitment to delivering proven, battlefield-ready technology that meets the evolving needs of modern armed forces.

    NVIDIA Corporation (NASDAQ: NVDA) recently announced that it has contributed foundational elements of its NVIDIA Blackwell accelerated computing platform design to the Open Compute Project (OCP) and broadened NVIDIA Spectrum-X™ support for OCP standards.

    At this year’s OCP Global Summit, NVIDIA will be sharing key portions of the NVIDIA GB200 NVL72 system electro-mechanical design with the OCP community — including the rack architecture, compute and switch tray mechanicals, liquid-cooling and thermal environment specifications, and NVIDIA NVLink™ cable cartridge volumetrics — to support higher compute density and networking bandwidth.

    NVIDIA has already made several official contributions to OCP across multiple hardware generations, including its NVIDIA HGX™ H100 baseboard design specification, to help provide the ecosystem with a wider choice of offerings from the world’s computer makers and expand the adoption of AI.

    About FN Media Group:

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    DISCLAIMER: FN Media Group LLC (FNM), which owns and operates FinancialNewsMedia.com and MarketNewsUpdates.com, is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with any company mentioned herein. FNM and its affiliated companies are a news dissemination solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM’s market updates, news alerts and corporate profiles are NOT a solicitation or recommendation to buy, sell or hold securities. The material in this release is intended to be strictly informational and is NEVER to be construed or interpreted as research material. All readers are strongly urged to perform research and due diligence on their own and consult a licensed financial professional before considering any level of investing in stocks. All material included herein is republished content and details which were previously disseminated by the companies mentioned in this release. FNM is not liable for any investment decisions by its readers or subscribers. Investors are cautioned that they may lose all or a portion of their investment when investing in stocks. For current services performed FNM has been compensated forty nine hundred dollars for news coverage of the current press releases issued by ZenaTech, Inc. by the Company. FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

    This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.

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    SOURCE: FN Media Group

    The MIL Network

  • MIL-OSI Global: Your politics can affect whether you click on sponsored search results, new research shows

    Source: The Conversation – USA – By Alexander Davidson, Associate Professor of Marketing, Wayne State University

    Good news for digital marketers. Boy Wirat/Getty Images

    American businesses spend close to US$100 billion each year to secure top advertising spots in search engine results – even though it’s not exactly a secret that most online shoppers scroll right past them.

    In fact, organic links – results that aren’t sponsored advertisements – can receive up to 10 times as many clicks as search ads, industry data shows.

    I refer to this phenomenon as “search ad avoidance,” and it’s a big problem for the multibillion-dollar industry. But it turns out that not all groups are equally averse to clicking on sponsored search results.

    According to my newly published peer-reviewed research, people with conservative political views are more likely to click on sponsored search results.

    Republican-leaning brands such as Black Rifle Coffee Company might want to take note.

    Conservatives are more likely to click search ads

    To explore the relationship between politics and search engine behavior, I conducted several studies.

    First, I examined data from more than 500,000 visitors to a nationwide retailer’s website. I analyzed the percentage of visitors from each U.S. state who arrived at the website by clicking a search ad versus an organic link. Then I looked at the share of each state’s residents who describe themselves as conservative.

    I found that more conservative states were associated with more clicks for search ads over organic links. Specifically, a 10% increase in a state’s conservative identity was associated with a 6.4% increase in search ad clicks.

    Given that, on average, conservatives are older and have higher incomes than liberals, I also looked at each state’s median age and per-capita personal income. Again, the data confirmed the relationship between conservatism and search ad clicks. Neither age nor income had any significant impact.

    To better understand what was going on, I conducted additional studies where I could monitor people’s searches in a more controlled setting using online surveys.

    I asked online participants to search for a product the same way they would using Google. Then, I brought them to a search results page and asked them to indicate how likely they would be to click on a search ad versus an organic link.

    I also measured their political orientation in two different ways: through self-identification and attitudes toward political issues. Once again, I found that regardless of age or income, more conservative people were more likely to click on search ads.

    Why the promotional is political

    The decision to click on an ad – or not – might seem quite minor. But I believe ad avoidance is strongly rooted in people’s core beliefs and values.

    While conservatives tend to trust and justify the role of marketplace systems, liberals are more skeptical. Within the marketplace of online information search, I argue that conservatives are likely to be more trusting of sponsored communications than liberals, who lean toward organic content.

    The importance of values becomes clear in a final analysis I conducted. In this real-world experiment, I created search ads for a website built specifically for this research and found that conservatives were more likely to click ads in response to broad searches, such as “Buy headphones.” But for more specific, detailed searches – for example, “Buy headphones with microphone that reduces background noise” – there was no relationship between politics and clicks.

    I suspect this is because broad searches are less cognitively demanding – in other words, they require less brainpower. This allows our core beliefs to influence our decisions. In fact, this is consistent with research on information processing that shows broad thinking leads to stronger political attitudes.

    On the other hand, I argue that specific searches require us to pay close attention to the information we are processing, which disables our core beliefs from being the primary influence on our decisions.

    Why advertisers should take note

    These findings have obvious benefits for advertisers who want to better understand who’s most likely to click on search ads. This can help them generate campaign strategies that account for consumers’ political orientations, which I have shown to be a better predictor of click behavior than typical segmentation variables such as age or income.

    Given that liberals are less likely to click search ads, it also suggests advertisers should be thinking about alternative ways to reach them. It’s possible that liberals could be persuaded to click search ads through a greater inclusion of trust symbols in advertising communications, such as star ratings or endorsements from credible influencers.

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

    ref. Your politics can affect whether you click on sponsored search results, new research shows – https://theconversation.com/your-politics-can-affect-whether-you-click-on-sponsored-search-results-new-research-shows-239800

    MIL OSI – Global Reports